Minnesota: The Sunset of JOBZ

Sep 29, 2015 | Gail Cole

JOBZ tax exemptions sunset at end of year.

The Minnesota Job Opportunity Building Zones (JOBZ) program uses tax exemptions and tax credits to promote development in certain areas of the state. Qualifying businesses located within JOBZ are eligible for exemptions from sales, income and property taxes.

Eligible businesses are those that “startup or expand in a zone or relocate from other states or from elsewhere in Minnesota,” provided they meet certain job and wage goals. JOBZ was not created top promote retailers located in the zone. Additional information.

The end of JOBZ

Under M.S. 469.312, the maximum duration of a zone is 12 years. As a result, the JOBZ program concludes for most qualifying businesses effective December 31, 2015: “Most businesses will no longer be eligible to receive benefits through the JOBZ program after the 2015 tax season.” Businesses wishing to purchase qualifying items exempt from sales tax should make those purchases prior to the end of the year.

For more information, see the JOBZ Fact Sheet.

Document exemptions

Even when the result of the JOBZ program, sales tax exemptions must be properly documented or they risk being invalid. Learn how to manage exemption certificates in the cloud.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.