HF 668

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 01:39pm

A bill for an act
relating to tax increment financing; providing an adjustment to original net
capacity for certain districts; amending Minnesota Statutes 2012, section
469.177, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 469.177, is amended by adding a
subdivision to read:

new text begin Subd. 1d. new text end

new text begin Original net tax capacity adjustment; homestead market value
exclusion. new text end

new text begin (a) Upon approval by the municipality, by resolution, the authority may elect
to reduce the net tax capacity of a qualified district by the amount of the market value
exclusion under section 273.13, subdivision 35. The amount of the reduction may not
reduce the original net tax capacity below zero.
new text end

new text begin (b) For purposes of this subdivision, a qualified district means a tax increment
financing district that satisfies both of the following conditions:
new text end

new text begin (1) for taxes payable in 2011, the authority received a homestead market value credit
reimbursement under section 273.1384 for the district of $10,000 or more; and
new text end

new text begin (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
the market value exclusion for the district was equal to or greater than 1.75 percent of the
district's captured tax capacity.
new text end

new text begin The calculation of the amount under clause (2) must reflect any adjustments to original
net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
market value exclusion.
new text end

new text begin (c) The authority must notify the county auditor of its election under this section no
later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
for taxes payable in 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all tax increment financing districts regardless of when the request for
certification was made.
new text end