HF 1808

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing that tax increment financing plan modification
procedures do not apply to certain acquisitions of property; amending Minnesota
Statutes 2006, section 469.175, subdivision 4.

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

Section 1.

Minnesota Statutes 2006, section 469.175, subdivision 4, is amended to read:

Subd. 4.

Modification of plan.

(a) A tax increment financing plan may be modified
by an authority.

(b) The authority may make the following modifications only upon the notice and
after the discussion, public hearing, and findings required for approval of the original plan:

(1) any reduction or enlargement of geographic area of the project or tax increment
financing district that does not meet the requirements of paragraph (e);

(2) increase in amount of bonded indebtedness to be incurred;

(3) a determination to capitalize interest on the debt if that determination was not a
part of the original plan;

(4) increase in the portion of the captured net tax capacity to be retained by the
authority;

(5) increase in the estimate of the cost of the project, including administrative
expenses, that will be paid or financed with tax increment from the district; or

(6) designation of additional property to be acquired by the authority new text begin , except when
the property:
new text end

new text begin (i) consists of one or more parcels under common ownership;
new text end

new text begin (ii) is acquired from a willing seller; and
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new text begin (iii) is acquired for purposes of development as a housing project new text end .

(c) If an authority changes the type of district to another type of district, this change
is not a modification but requires the authority to follow the procedure set forth in sections
469.174 to 469.179 for adoption of a new plan, including certification of the net tax
capacity of the district by the county auditor.

(d) If a redevelopment district or a renewal and renovation district is enlarged,
the reasons and supporting facts for the determination that the addition to the district
meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2),
or subdivision 10a, must be documented.

(e) The requirements of paragraph (b) do not apply if (1) the only modification is
elimination of parcels from the project or district and (2)(A) the current net tax capacity
of the parcels eliminated from the district equals or exceeds the net tax capacity of
those parcels in the district's original net tax capacity or (B) the authority agrees that,
notwithstanding section 469.177, subdivision 1, the original net tax capacity will be
reduced by no more than the current net tax capacity of the parcels eliminated from the
district. The authority must notify the county auditor of any modification that reduces or
enlarges the geographic area of a district or a project area.

(f) The geographic area of a tax increment financing district may be reduced, but
shall not be enlarged after five years following the date of certification of the original net
tax capacity by the county auditor or after August 1, 1984, for tax increment financing
districts authorized prior to August 1, 1979.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end