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HF 337

as introduced - 87th Legislature (2011 - 2012) Posted on 02/02/2011 09:28am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to tax increment financing; excluding county levies in computing
increment and making conforming changes; amending Minnesota Statutes 2010,
sections 469.175, subdivision 2; 469.176, subdivision 4h; 469.1762; 469.177,
subdivision 1a; repealing Minnesota Statutes 2010, sections 469.175, subdivision
1a; 469.176, subdivision 4i.

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

Section 1.

Minnesota Statutes 2010, section 469.175, subdivision 2, is amended to read:


Subd. 2.

Consultations; comment and filing.

(a) Before formation of a tax
increment financing district, the authority shall provide the deleted text begin county auditor anddeleted text end clerk of
the school board with the proposed tax increment financing plan for the district and the
authority's estimate of the fiscal and economic implications of the proposed tax increment
financing district. The authority must provide the proposed tax increment financing plan
and the information on the fiscal and economic implications of the plan to deleted text begin the county
auditor and
deleted text end the clerk of the school district board at least 30 days before the public hearing
required by subdivision 3. The information on the fiscal and economic implications may
be included in or as part of the tax increment financing plan. The deleted text begin county auditor anddeleted text end clerk
of the school board shall provide copies to the members of the deleted text begin boardsdeleted text end new text begin school boardnew text end , as
directed by deleted text begin their respective boardsdeleted text end new text begin the boardnew text end . The 30-day requirement is waived if the
deleted text begin boards of the county and school district submitdeleted text end new text begin school board submitsnew text end written comments
on the proposal and any modification of the proposal to the authority after receipt of
the information.

(b) For purposes of this subdivision, "fiscal and economic implications of the
proposed tax increment financing district" includes:

(1) an estimate of the total amount of tax increment that will be generated over the
life of the district;

(2) a description of the probable impact of the district on city-provided services
such as police and fire protection, public infrastructure, and the impact of any general
obligation tax increment bonds attributable to the district upon the ability to issue other
debt for general fund purposes;

(3) the estimated amount of tax increments over the life of the district that would be
attributable to school district levies, assuming the school district's share of the total local
tax rate for all taxing jurisdictions remained the same;new text begin and
new text end

deleted text begin (4) the estimated amount of tax increments over the life of the district that would be
attributable to county levies, assuming the county's share of the total local tax rate for all
taxing jurisdictions remained the same; and
deleted text end

deleted text begin (5)deleted text end new text begin (4)new text end additional information regarding the size, timing, or type of development in
the district requested by the deleted text begin county or thedeleted text end school district that would enable it to determine
additional costs that will accrue to it due to the development proposed for the district.
If a deleted text begin county ordeleted text end school district has not adopted standard questions in a written policy on
information requested for fiscal and economic implications, a deleted text begin county ordeleted text end school district
must request additional information no later than 15 days after receipt of the tax increment
financing plan and the request does not require an additional 30 days of notice before
the public hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing districts
and amendments adding area to any existing tax increment financing district for which
the request for certification is made after June 30, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 469.176, subdivision 4h, is amended to read:


Subd. 4h.

County costs.

deleted text begin (a)deleted text end Tax increments may be used to pay for the county's
actual administrative expenses under sections 469.174 to 469.179. The county may
require payment of those expenses by February 15 of the year after the year in which the
expenses are incurred. The amount of these payments is not required to be set forth in the
tax increment financing plan for the project. To obtain payment for actual administrative
costs, the county auditor must submit to the authority a record of costs incurred by the
county auditor related to administration of the authority's tax increment financing districts.

deleted text begin (b) Tax increments may be used to pay county road costs as provided in section
469.175, subdivision 1a.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing districts
for which the request for certification is made after June 30, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 469.1762, is amended to read:


469.1762 ARBITRATION OF DISPUTES OVER COUNTY COSTS.

If the county and the authority or municipality are unable to agree on deleted text begin either (1) the
need for or cost of road improvements under section 469.175, subdivision 1a, or (2)
deleted text end the
amount of county administrative costs under section 469.176, subdivision 4h, and the
county or municipality demands arbitration, the matter must be submitted to binding
arbitration in accordance with sections 572B.01 to 572B.31 and the rules of the American
Arbitration Association. Within 30 days after the demand for arbitration, the parties shall
each select an arbitrator or agree upon a single arbitrator. If the parties each select an
arbitrator, the two arbitrators shall select a third arbitrator within 45 days after the demand
for arbitration. Each party shall pay the fees and expenses of the arbitrator it selected and
the parties shall share equally the expenses of the third arbitrator or an arbitrator agreed
upon mutually by the parties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing districts
for which the request for certification is made after June 30, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 469.177, subdivision 1a, is amended to read:


Subd. 1a.

Original local tax rate.

new text begin (a) new text end At the time of the initial certification of the
original net tax capacity for a tax increment financing district or a subdistrict, the county
auditor shall certify the original local tax rate that applies to the district or subdistrict.
The original local tax rate is the sum of all the local tax rates that apply to a property in
the district or subdistrict. The local tax rate to be certified is the rate in effect for the
same taxes payable year applicable to the tax capacity values certified as the district's or
subdistrict's original tax capacity. The resulting tax capacity rate is the original local tax
rate for the life of the district or subdistrict.

new text begin (b) Effective for districts for which the request for certification is made after June
30, 2011, the original local tax rate and any other tax rate or amount used to calculate the
amount of tax increment does not include any rate or amount attributable to a county levy.
The provisions of this paragraph do not apply to any district for which the county is the
municipality under section 469.175, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing districts
and amendments adding area to any existing tax increment financing district for which
the request for certification is made after June 30, 2011.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 469.175, subdivision 1a; and 469.176, subdivision
4i,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax increment financing districts
for which the request for certification is made after June 30, 2011.
new text end