The Tax-free Zone bill, officially named the Job Opportunity Building Zones bill, has passed the House Jobs and Economic Development Finance Committee.

Committee Vice Chair Dan Dorman, R-Albert Lea, said members supported the legislation overwhelmingly. The next place the bill will have to pass will be the House Tax Committee.

Non-commercial businesses, either starting up, expanding or relocating their operation in the zone, would be exempted from taxes on their property, income, and sales taxes for up to 12 years, according to the bill. Ten areas, which can be up to 5,000 acres in size, will be dispersed throughout rural Minnesota as designated by the state.

Officials of the City of Albert Lea, Freeborn County, School District 241 and the Chamber of Commerce have started discussing a strategy for securing the designation.

Friday, this coalition met and decided to send inquiries to Faribault and Martin Counties asking their interest in applying jointly for one of the tax free zone designations.

The participants agreed that spreading the zone across the three-county area enhances eligibility, which is based upon evidences of population decline, poverty rate and job loss.

Mayor Jean Eaton said, “The I-90 corridor is facing a loss of jobs to Iowa and population decline. That’s a strong case.”

The City of Austin has also been showing an interest, but its relatively strong economy might offset Albert Lea’s strengths for application, according to Eaton.

The zones do not need to be contiguous. In Freeborn County, there is at least 680 acres land that are ready to be developed, City Planner Bob Graham said. He also pointed out that businesses in Albert Lea have more connections to the west than east, and the partnership with Faribault and Martin Counties makes more sense than with other counties.