HF 2186

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to taxation; tax increment financing; allowing use of increment to offset
state aid reductions; amending Minnesota Statutes 2008, section 469.176, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 469.176, is amended by adding a
subdivision to read:

new text begin Subd. 4m. new text end

new text begin Use to offset state aid reductions. new text end

new text begin (a) Notwithstanding any other
provision of this section, section 469.1763, or a special law, upon the request of the
municipality, the authority may elect, by resolution, to transfer increments from a district
to the municipality for deposit in its general fund. The permitted transfer for a calendar
year is limited to the amount allowed under paragraph (b). Following the election,
expenditure of increments from the district are limited by the conditions in paragraph (c).
The transferred increments may be expended for any purpose the municipality's general
fund permits.
new text end

new text begin (b) For each calendar year for which transfers are permitted under this section,
the maximum transfer equals the lesser of:
new text end

new text begin (1) the excess of the district's available increment over the sum of:
new text end

new text begin (i) required payments of obligations that will come due during the calendar year or
the first six months of the following calendar year on outstanding bonds and binding
contracts to which the district's increments are pledged; plus
new text end

new text begin (ii) transfers of increments from the district to offset deficits in other districts to be
made during the calendar year under section 469.1763, subdivision 6; or
new text end

new text begin (2) the sum of the following amounts, limited to the relevant amounts that are
effective through the calendar year in which the transfer is to be made:
new text end

new text begin (i) unallotment of aid payments previously certified by the state to be paid to the
municipality during calendar years 2008 to 2012;
new text end

new text begin (ii) reductions in state reimbursement payments for property tax credits to be paid
to the municipality in calendar years 2008 to 2012; and
new text end

new text begin (iii) reductions in local government aids to be paid to the municipality resulting from
reductions in the appropriation or changes in the formula, enacted by the legislature, for
calendar years 2009 to 2012; less
new text end

new text begin (iv) any special levy made by the municipality under section 275.70, subdivision
5, clause (22).
new text end

new text begin (c) Following an election under this subdivision, an authority may expend
increments from the district for only the following purposes:
new text end

new text begin (1) payment of bonds and binding contracts with an entity not under the control of
the municipality or authority to which the district's increments were pledged that were
outstanding when the election was made;
new text end

new text begin (2) transfers to offset deficits in other districts as permitted under section 469.1763,
subdivision 6;
new text end

new text begin (3) administrative expenses of the district; and
new text end

new text begin (4) transfers permitted under this subdivision.
new text end

new text begin (d) The commissioner of revenue shall calculate and certify the amount, if any, of
the reduction under paragraph (b), clause (2), item (iii), for a city, upon request of the city.
new text end

new text begin (e) The authority to transfer increments under this section expires on December
31, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to increments from any district, regardless of when the request for certification
was made.
new text end