HF 1167

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to tax increment financing; authorizing 
  1.3             pooling to make up deficits caused by property tax 
  1.4             changes enacted in 1997 and 1998; amending Minnesota 
  1.5             Statutes 1998, section 469.1763, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 469.1763, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 6.  [POOLING PERMITTED FOR DEFICITS.] (a) This 
  1.11  subdivision applies only to districts for which the request for 
  1.12  certification was made before June 2, 1997. 
  1.13     (b) The municipality for the district may transfer 
  1.14  available increments from another tax increment financing 
  1.15  district located in the municipality, if the transfer is 
  1.16  necessary to eliminate a deficit in the district to which the 
  1.17  increments are transferred.  A deficit in the district for 
  1.18  purposes of this subdivision means the lesser of the following 
  1.19  two amounts: 
  1.20     (1)(i) the total increments to be collected from properties 
  1.21  located within the district that are available for the calendar 
  1.22  year, plus 
  1.23     (ii) total increments from properties located in other 
  1.24  districts in the municipality that are available to be used to 
  1.25  meet the district's obligations under this section, excluding 
  1.26  this subdivision, or other provisions of law (but excluding a 
  2.1   special tax under section 469.1791 and the grant program under 
  2.2   Laws 1997, chapter 231, article 1, section 19), less 
  2.3      (iii) the amount due during the calendar year to pay 
  2.4   pre-existing obligations of the district; or 
  2.5      (2) the reduction in increments collected from properties 
  2.6   located in the district for the calendar year as a result of the 
  2.7   changes in class rates in Laws 1997, chapter 231, article 1, and 
  2.8   Laws 1998, chapter 389, article 2. 
  2.9      (c) A pre-existing obligation means bonds issued and sold 
  2.10  before June 2, 1997, to the extent that the bonds are secured by 
  2.11  a pledge of increments from the tax increment financing district.
  2.12  For purposes of this subdivision, bonds exclude an obligation to 
  2.13  reimburse or pay a developer or owner of property located in the 
  2.14  district for amounts incurred or paid by the developer or owner. 
  2.15     (d) The municipality may require a development authority to 
  2.16  transfer available increments for any of its tax increment 
  2.17  financing districts in the municipality to make up an 
  2.18  insufficiency in another district in the city, regardless of 
  2.19  whether the district was established by the development 
  2.20  authority or another development authority.  This authority 
  2.21  applies notwithstanding any law to the contrary, but applies 
  2.22  only to a development authority that: 
  2.23     (1) was established by the municipality; or 
  2.24     (2) the governing body of which is appointed, in whole or 
  2.25  part, by the municipality or an officer of the municipality or 
  2.26  which consists, in whole or part, of members of the governing 
  2.27  body of the municipality. 
  2.28     (e) The authority under this subdivision to spend tax 
  2.29  increments outside of the area of the district from which the 
  2.30  tax increments were collected: 
  2.31     (1) may only be exercised after obtaining approval of the 
  2.32  use of the increments, in writing, by the commissioner of 
  2.33  revenue; 
  2.34     (2) is an exception to the restrictions under the other 
  2.35  provisions of this section and the percentage restrictions under 
  2.36  subdivision 2 must be calculated after deducting increments 
  3.1   spent under this subdivision from the total increments for the 
  3.2   district; and 
  3.3      (3) applies notwithstanding the provisions of the tax 
  3.4   increment financing act in effect for districts for which the 
  3.5   request for certification was made before June 30, 1982, or any 
  3.6   other law to the contrary. 
  3.7      Sec. 2.  [EFFECTIVE DATE.] 
  3.8      Section 1 is effective the day following final enactment.