HF 2064

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; exempting certain 
  1.3             superfund sites from fiscal disparities; amending 
  1.4             Minnesota Statutes 1998, section 469.177, subdivision 
  1.5             3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 469.177, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [TAX INCREMENT, RELATIONSHIP TO CHAPTERS 276A AND 
  1.10  473F.] (a) Unless the governing body elects pursuant to clause 
  1.11  (b) the following method of computation shall apply to a 
  1.12  district other than an economic development district for which 
  1.13  the request for certification was made after June 30, 1997: 
  1.14     (1) The original net tax capacity and the current net tax 
  1.15  capacity shall be determined before the application of the 
  1.16  fiscal disparity provisions of chapter 276A or 473F.  Where the 
  1.17  original net tax capacity is equal to or greater than the 
  1.18  current net tax capacity, there is no captured net tax capacity 
  1.19  and no tax increment determination.  Where the original net tax 
  1.20  capacity is less than the current net tax capacity, the 
  1.21  difference between the original net tax capacity and the current 
  1.22  net tax capacity is the captured net tax capacity.  This amount 
  1.23  less any portion thereof which the authority has designated, in 
  1.24  its tax increment financing plan, to share with the local taxing 
  1.25  districts is the retained captured net tax capacity of the 
  2.1   authority.  
  2.2      (2) The county auditor shall exclude the retained captured 
  2.3   net tax capacity of the authority from the net tax capacity of 
  2.4   the local taxing districts in determining local taxing district 
  2.5   tax rates.  The local tax rates so determined are to be extended 
  2.6   against the retained captured net tax capacity of the authority 
  2.7   as well as the net tax capacity of the local taxing districts.  
  2.8   The tax generated by the extension of the lesser of (A) the 
  2.9   local taxing district tax rates or (B) the original local tax 
  2.10  rate to the retained captured net tax capacity of the authority 
  2.11  is the tax increment of the authority.  
  2.12     (b) The following method of computation applies to any 
  2.13  economic development district for which the request for 
  2.14  certification was made after June 30, 1997, and to any other 
  2.15  district for which the governing body, by resolution approving 
  2.16  the tax increment financing plan pursuant to section 469.175, 
  2.17  subdivision 3, elects: 
  2.18     (1) The original net tax capacity shall be determined 
  2.19  before the application of the fiscal disparity provisions of 
  2.20  chapter 276A or 473F.  The current net tax capacity shall 
  2.21  exclude any fiscal disparity commercial-industrial net tax 
  2.22  capacity increase between the original year and the current year 
  2.23  multiplied by the fiscal disparity ratio determined pursuant to 
  2.24  section 276A.06, subdivision 7, or 473F.08, subdivision 6.  
  2.25  Where the original net tax capacity is equal to or greater than 
  2.26  the current net tax capacity, there is no captured net tax 
  2.27  capacity and no tax increment determination.  Where the original 
  2.28  net tax capacity is less than the current net tax capacity, the 
  2.29  difference between the original net tax capacity and the current 
  2.30  net tax capacity is the captured net tax capacity.  This amount 
  2.31  less any portion thereof which the authority has designated, in 
  2.32  its tax increment financing plan, to share with the local taxing 
  2.33  districts is the retained captured net tax capacity of the 
  2.34  authority.  
  2.35     (2) The county auditor shall exclude the retained captured 
  2.36  net tax capacity of the authority from the net tax capacity of 
  3.1   the local taxing districts in determining local taxing district 
  3.2   tax rates.  The local tax rates so determined are to be extended 
  3.3   against the retained captured net tax capacity of the authority 
  3.4   as well as the net tax capacity of the local taxing districts.  
  3.5   The tax generated by the extension of the lesser of (A) the 
  3.6   local taxing district tax rates or (B) the original local tax 
  3.7   rate to the retained captured net tax capacity of the authority 
  3.8   is the tax increment of the authority.  
  3.9      (3) An election by the governing body pursuant to paragraph 
  3.10  (b) shall be submitted to the county auditor by the authority at 
  3.11  the time of the request for certification pursuant to 
  3.12  subdivision 1. 
  3.13     (c) The method of computation of tax increment applied to a 
  3.14  district pursuant to paragraph (a) or (b) shall remain the same 
  3.15  for the duration of the district, except that the governing body 
  3.16  may elect to change its election from the method of computation 
  3.17  in paragraph (a) to the method in paragraph (b). 
  3.18     A district containing a parcel designated a superfund site 
  3.19  pursuant to the Federal Superfund Act or state law is exempt 
  3.20  from the provisions of this subdivision provided the designated 
  3.21  parcel will be developed in accordance with a development action 
  3.22  response plan. 
  3.23     Sec. 2.  [EFFECTIVE DATE.] 
  3.24     This section is effective for districts or modifications to 
  3.25  districts for which certification is requested after February 1, 
  3.26  1999.