1.1 	A bill for an act
1.2 	relating to taxation; tax increment financing;
1.3 	allowing a tax increment financing district in the
1.4 	city of Preston to capture the state general tax.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. TAX INCREMENT FINANCING; CITY OF PRESTON.
 1.7 	Increments for tax increment financing district 1 in the
1.8 	city of Preston include the tax paid by parcels located in the
1.9 	district under the state general tax, Minnesota Statutes,
1.10 	section 275.025, if the following conditions are satisfied:
1.11 	(1) the city agrees to extend the payment obligations under
1.12 	the note for the district through the maximum duration for the
1.13 	district under Minnesota Statutes, section 469.176, subdivision
1.14 	1b; and 
1.15 	(2) all of the holders of the note agree to extend the
1.16 	note's maturity and payment obligation at the same interest rate
1.17 	that applies under the existing note in return for receiving
1.18 	reimbursement from increments from the state general tax.

1.19 	EFFECTIVE DATE. This section is effective for the first
1.20 	taxes payable year that begins after compliance by the governing
1.21 	body of the city of Preston with the requirements of Minnesota
1.22 	Statutes, section 645.021.