High-Value Tax Exemptions
Minnesota tax exemptions include:

• Property tax on commercial and industrial improvements
• Sales tax on goods and services
• Corporate franchise tax
• Income tax for operators or investors
• Capital gains tax
• Employment tax credit for high-paying jobs
• Wind energy production tax

Property tax exemptions do not apply to:

• Local general obligation bond debt
• School operating levy referendum
• Land (only improvements to land are exempt)
• Vacant buildings (while vacant)

JOBZ Qualified Businesses
Four types of business scenarios qualify for JOBZ benefits:

• Businesses in the zone at the time of its JOBZ designation
• Business expansion in the zone
• Business relocations from other states
• Business relocations from other parts of Minnesota if they increase employment by 20% the first year or make a capital investment equal to 10% of the previous year’s gross revenues

Example of Tax Savings:Metal Fabricating Company

• Metal fabrication company with all operations in JOBZone
• Construction a 50,000 sq. ft. building valued at $1,750,000 in 2007
• Annual taxable income of $300,000
• A total of 56 employees
• Average wage of $29,120
• Purchase of taxable goods and services totaling $350,000 annually

Average Annual Tax Savings

The Total Property Tax Savings equals approximately 23% of the building costs, if construction is completed in 2007. Act now to maximize savings – zones expire in December 31, 2015.

Contact the Economic Development Authority of Windom for more details by using our form on the right.