HF 1285

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 11:00am

A bill for an act
relating to taxation; removing income restrictions for tax increment financing
housing districts in nonmetropolitan counties; amending Minnesota Statutes 2022,
section 469.1761, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 469.1761, subdivision 1, is amended to read:

Subdivision 1.

Requirement imposed.

(a) In order for a tax increment financing district
to qualify as a housing district:

(1) the income limitations provided in this section must be satisfied new text begin if the district is
located in a metropolitan county as defined by section 473.121, subdivision 4 new text end ; and

(2) no more than 20 percent of the square footage of buildings that receive assistance
from tax increments may consist of commercial, retail, or other nonresidential uses.

(b) The requirements imposed by this section apply to property receiving assistance
financed with tax increments, including interest reduction, land transfers at less than the
authority's cost of acquisition, utility service or connections, roads, parking facilities, or
other subsidies. The provisions of this section do not apply to districts located in a targeted
area as defined in section 462C.02, subdivision 9, clause (e).

(c) For purposes of the requirements of paragraph (a), the authority may elect to treat
an addition to an existing structure as a separate building if:

(1) construction of the addition begins more than three years after construction of the
existing structure was completed; and

(2) for an addition that does not meet the requirements of paragraph (a), clause (2), if it
is treated as a separate building, the addition was not contemplated by the tax increment
financing plan which includes the existing structure.