2001 Minnesota Statutes

     469.1799 TIF grants; appropriations. 

    Subdivision 1.    TIF grants.  (a) In calendar year 2003 
 and thereafter, the commissioner of revenue shall pay grants to 
 municipalities for deficits in tax increment financing districts 
 caused by the changes in class rates and the elimination of the 
 state-determined general education property tax levy under Laws 
 2001, First Special Session chapter 5.  Municipalities must 
 submit applications for the grants in a form prescribed by the 
 commissioner no later than August 1 for grants payable during 
 the calendar year.  The maximum grant equals the lesser of: 

    (1) for taxes payable in the year before the grant is paid, 
 the reduction in the tax increment financing district's revenues 
 derived from increment resulting from the class rate changes and 
 the elimination of the state-determined general education 
 property tax levy under Laws 2001, First Special Session chapter 
 5; or 

    (2) the amount due during the calendar year to pay: 

    (i) a preexisting obligation as defined in section 
 469.1763, subdivision 6, but excluding the additional amount of 
 a preexisting obligation that the municipality elects to include 
 under paragraph (f) of that subdivision with respect to a 
 preexisting obligation to a developer or property owner in the 
 district or an assignee or successor in interest; less 

    (ii) the municipality's total tax increments, including 
 unspent increments from previous years; 

    (iii) the amount of any state aid reductions that would 
 have applied to any district in the municipality for the 
 calendar year, if Minnesota Statutes 2000, section 273.1399, had 
 not been repealed; and 

    (iv) the amount of any unpaid local contributions that the 
 municipality would have been required to make for the calendar 
 year under an election under Minnesota Statutes 2000, section 
 273.1399, subdivision 6, if that subdivision had not been 
 repealed. 

    (b) The commissioner of revenue may require applicants for 
 grants under this section to provide any information the 
 commissioner deems appropriate.  The commissioner shall 
 calculate the amount under paragraph (a), clause (2), based on 
 the reports for the tax increment financing district or 
 districts filed with the state auditor on or before August 1 of 
 the year in which the grant is to be paid. 

    (c) This subdivision applies only to deficits in tax 
 increment districts for which: 

    (1) the request for certification of the district, or a 
 district transferred under special law, was made before August 
 1, 2001; 

    (2) all timely reports have been filed with the state 
 auditor, as required by section 469.175; and 

    (3) the authority and municipality have exercised any 
 permitted action under section 469.1792, subdivision 3, to 
 increase increments to pay preexisting obligations as defined 
 under this section. 

    (d) The commissioner shall pay the grants under this 
 section by December 26 of the year. 

    (e) For the purposes of this section, "tax increments" and 
 "revenues derived from tax increments" have the meanings given 
 in section 469.174, subdivision 25, except that the definition 
 applies to all tax increment districts, regardless of when the 
 request for certification was made and regardless of when the 
 revenues were received, notwithstanding the effective date of 
 section 469.174, subdivision 25.  For purposes of this section, 
 "bonds" and "binding contracts" do not include interfund loans. 

    (f) If the district was authorized or certified pursuant to 
 a special law and the special law permitted original tax 
 capacity to be reduced to zero, the required dates under 
 paragraph (a), clause (2), and paragraph (c), clause (1), are 
 extended to December 31, 2001. 

    Subd. 2.    School district abatement levy authority.  A 
 school district that adopted an abatement resolution under 
 sections 469.1812 to 469.1815, prior to August 1, 2001, pursuant 
 to which all or a portion of its general education levy on a 
 parcel was to be abated for taxes payable in 2002 or later years 
 and pledged to the payment of bonds issued, or binding contracts 
 entered into, prior to August 1, 2001, may annually levy an 
 amount equal to the lesser of:  (1) the amount specified for 
 these purposes in the resolution for the taxes payable year; or 
 (2) the amount of the general education tax levied on the 
 property for which the abatements were granted for taxes payable 
 in 2001.  The levy authority in this subdivision is in addition 
 to any other levy of the district, but this authority expires 
 and may not be used for taxes payable in the year following the 
 termination or expiration of the abatements under the 
 resolution, without giving any effect to an extension or 
 modification of the resolution made after August 1, 2001. 

    Subd. 3.    Appropriation.  $91,000,000 in fiscal year 
 2002, and $38,000,000 in each fiscal year thereafter is 
 appropriated to the commissioner of revenue from the general 
 fund to make grants under this section.  The appropriated 
 amounts do not lapse at the end of a fiscal year.  Each amount 
 is available until the later of when expended or when this 
 section is repealed.  If the amount of grant entitlements under 
 subdivision 1 for a year exceeds the amount available for 
 grants, the commissioner of revenue shall reduce each grant 
 proportionately so the total does not exceed the amount 
 available. 

    HIST: 1Sp2001 c 5 art 15 s 24