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HF 3116

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/10/2000

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; modifying reporting requirements 
  1.3             related to tax increment financing districts; amending 
  1.4             Minnesota Statutes 1998, section 469.175, subdivisions 
  1.5             5 and 6; repealing Minnesota Statutes 1998, section 
  1.6             469.175, subdivision 6a. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 469.175, 
  1.9   subdivision 5, is amended to read: 
  1.10     Subd. 5.  [ANNUAL DISCLOSURE.] (a) The authority shall 
  1.11  annually submit to the county board, the county auditor, the 
  1.12  school board, state auditor and, if the authority is other than 
  1.13  the municipality, the governing body of the municipality, a 
  1.14  report of the status of the district.  The report shall include 
  1.15  the following information:  the amount and the source of revenue 
  1.16  in the account, the amount and purpose of expenditures from the 
  1.17  account, the amount of any pledge of revenues, including 
  1.18  principal and interest on any outstanding bonded indebtedness, 
  1.19  the original net tax capacity of the district and any 
  1.20  subdistrict, the captured net tax capacity retained by the 
  1.21  authority, the captured net tax capacity shared with other 
  1.22  taxing districts, the tax increment received, and any additional 
  1.23  information necessary to demonstrate compliance with any 
  1.24  applicable tax increment financing plan.  The authority must 
  1.25  submit the annual report for a year on or before August 1 of the 
  1.26  next year. 
  2.1      (b) An annual statement showing the tax increment received 
  2.2   and expended in that year, the original net tax capacity, 
  2.3   captured net tax capacity, amount of outstanding bonded 
  2.4   indebtedness, the amount of the district's and any subdistrict's 
  2.5   increments paid to other governmental bodies, the amount paid 
  2.6   for administrative costs, the sum of increments paid, directly 
  2.7   or indirectly, for activities and improvements located outside 
  2.8   of the district, for each district the information required to 
  2.9   be reported under subdivision 6, paragraph (c), clauses (1), 
  2.10  (2), (3), (11), (12), (21), and (22); the amounts of tax 
  2.11  increment received and expended in the reporting period; and any 
  2.12  additional information the authority deems necessary shall must 
  2.13  be published in a newspaper of general circulation in the 
  2.14  municipality that approved the tax increment financing plan.  If 
  2.15  the fiscal disparities contribution under chapter 276A or 473F 
  2.16  for the district is computed under section 469.177, subdivision 
  2.17  3, paragraph (a), the annual statement must disclose that fact 
  2.18  and indicate the amount of increased property tax imposed on 
  2.19  other properties in the municipality as a result of the fiscal 
  2.20  disparities contribution.  The commissioner of revenue shall 
  2.21  prescribe the form of this statement and the method for 
  2.22  calculating the increased property taxes.  The annual statement 
  2.23  must inform readers that additional information regarding each 
  2.24  district may be obtained from the authority, and must explain 
  2.25  how the additional information may be requested.  The authority 
  2.26  must publish the annual statement for a year no later than 
  2.27  August 15 of the next year.  The authority must identify the 
  2.28  newspaper of general circulation in the municipality to which 
  2.29  the annual statement has been or will be submitted for 
  2.30  publication and provide a copy of the annual statement to 
  2.31  the county board, the county auditor, the school board, the 
  2.32  state auditor, and, if the authority is other than the 
  2.33  municipality, the governing body of the municipality on or 
  2.34  before August 1 of the year in which the statement must be 
  2.35  published.  
  2.36     (c) The disclosure and reporting requirements imposed by 
  3.1   this subdivision apply to districts certified before, on, or 
  3.2   after August 1, 1979. 
  3.3      Sec. 2.  Minnesota Statutes 1998, section 469.175, 
  3.4   subdivision 6, is amended to read: 
  3.5      Subd. 6.  [ANNUAL FINANCIAL REPORTING.] (a) The state 
  3.6   auditor shall develop a uniform system of accounting and 
  3.7   financial reporting for tax increment financing districts.  The 
  3.8   system of accounting and financial reporting shall, as nearly as 
  3.9   possible: 
  3.10     (1) provide for full disclosure of the sources and uses of 
  3.11  public funds in the district; 
  3.12     (2) permit comparison and reconciliation with the affected 
  3.13  local government's accounts and financial reports; 
  3.14     (3) permit auditing of the funds expended on behalf of a 
  3.15  district, including a single district that is part of a 
  3.16  multidistrict project or that is funded in part or whole through 
  3.17  the use of a development account funded with tax increments from 
  3.18  other districts or with other public money; 
  3.19     (4) be consistent with generally accepted accounting 
  3.20  principles. 
  3.21     (b) The authority must annually submit to the state auditor 
  3.22  a financial report in compliance with paragraph (a).  Copies of 
  3.23  the report must also be provided to the county and school 
  3.24  district boards auditor and to the governing body of the 
  3.25  municipality, if the authority is not the municipality.  To the 
  3.26  extent necessary to permit compliance with the requirement of 
  3.27  financial reporting, the county and any other appropriate local 
  3.28  government unit or private entity must provide the necessary 
  3.29  records or information to the authority or the state auditor as 
  3.30  provided by the system of accounting and financial reporting 
  3.31  developed pursuant to paragraph (a).  The authority must submit 
  3.32  the annual report for a year on or before August 1 of the next 
  3.33  year. 
  3.34     (c) The annual financial report must also include the 
  3.35  following items: 
  3.36     (1) the original net tax capacity of the district and any 
  4.1   subdistrict under section 469.177, subdivision 1; 
  4.2      (2) the net tax capacity for the reporting period of the 
  4.3   district and any subdistrict; 
  4.4      (3) the captured net tax capacity of the district, 
  4.5   including the amount of any captured net tax capacity shared 
  4.6   with other taxing districts; 
  4.7      (3) (4) any fiscal disparity deduction from the captured 
  4.8   net tax capacity under section 469.177, subdivision 3; 
  4.9      (5) the captured net tax capacity retained for tax 
  4.10  increment financing under section 469.177, subdivision 2, 
  4.11  paragraph (a), clause (1); 
  4.12     (6) any captured net tax capacity distributed among 
  4.13  affected taxing districts under section 469.177, subdivision 2, 
  4.14  paragraph (a), clause (2); 
  4.15     (7) the type of district; 
  4.16     (8) the date the municipality approved the tax increment 
  4.17  financing plan and the date of approval of any modification of 
  4.18  the tax increment financing plan, the approval of which requires 
  4.19  notice, discussion, a public hearing, and findings under 
  4.20  subdivision 4, paragraph (a); 
  4.21     (9) the date the authority first requested certification of 
  4.22  the original net tax capacity of the district and the date of 
  4.23  the request for certification regarding any parcel added to the 
  4.24  district; 
  4.25     (10) the date the county auditor first certified the 
  4.26  original net tax capacity of the district and the date of 
  4.27  certification of the original net tax capacity of any parcel 
  4.28  added to the district; 
  4.29     (11) the month and year in which the authority has received 
  4.30  or anticipates it will receive the first increment from the 
  4.31  district; 
  4.32     (12) the date the district must be decertified; 
  4.33     (13) for the reporting period and prior years of the 
  4.34  district, the actual amount received from, at least, the 
  4.35  following categories: 
  4.36     (i) tax increments paid by the captured net tax capacity 
  5.1   retained for tax increment financing under section 469.177, 
  5.2   subdivision 2, paragraph (a), clause (1), but excluding any 
  5.3   excess taxes; 
  5.4      (ii) tax increments that are interest or other investment 
  5.5   earnings on or from tax increments; 
  5.6      (iii) tax increments that are proceeds from the sale or 
  5.7   lease of property, tangible or intangible, purchased by the 
  5.8   authority with tax increments; 
  5.9      (iv) other proceeds from the sale or lease of property, 
  5.10  tangible or intangible, purchased by the authority; 
  5.11     (v) tax increments that are repayments of loans or other 
  5.12  advances made by the authority with tax increments; 
  5.13     (vi) bond or loan proceeds; 
  5.14     (vii) special assessments; 
  5.15     (viii) grants; and 
  5.16     (ix) transfers from funds not exclusively associated with 
  5.17  the district; 
  5.18     (14) for the reporting period and for the duration prior 
  5.19  years of the district, the amount budgeted under the tax 
  5.20  increment financing plan, and the actual amount expended for, at 
  5.21  least, the following categories: 
  5.22     (i) acquisition of land and buildings through condemnation 
  5.23  or purchase; 
  5.24     (ii)  site improvements or preparation costs; 
  5.25     (iii) installation of public utilities, parking facilities, 
  5.26  streets, roads, sidewalks, or other similar public improvements; 
  5.27     (iv) administrative costs, including the allocated cost of 
  5.28  the authority; 
  5.29     (v) public park facilities, facilities for social, 
  5.30  recreational, or conference purposes, or other similar public 
  5.31  improvements; and 
  5.32     (vi) transfers to funds not exclusively associated with the 
  5.33  district; 
  5.34     (4) (15) for properties sold to developers, the total cost 
  5.35  of the property to the authority and the price paid by the 
  5.36  developer; and 
  6.1      (5) (16) the amount of any tax increments rebated or paid 
  6.2   to developers or property owners for privately financed 
  6.3   improvements or other qualifying costs.; 
  6.4      (17) the amount of any payments and the value of any 
  6.5   in-kind benefits, such as physical improvements and the use of 
  6.6   building space, that are paid or financed with tax increments 
  6.7   and are provided to another governmental unit other than the 
  6.8   municipality during the reporting period; 
  6.9      (18) the amount of any payments for activities and 
  6.10  improvements located outside of the district that are paid for 
  6.11  or financed with tax increments; 
  6.12     (19) the amount of payments of principal and interest that 
  6.13  are made during the reporting period on any nondefeased: 
  6.14     (i) general obligation tax increment financing bonds; 
  6.15     (ii) other tax increment financing bonds; and 
  6.16     (iii) notes and pay-as-you-go contracts; 
  6.17     (20) the principal amount, at the end of the reporting 
  6.18  period, of any nondefeased: 
  6.19     (i) general obligation tax increment financing bonds; 
  6.20     (ii) other tax increment financing bonds; and 
  6.21     (iii) notes and pay-as-you-go contracts; 
  6.22     (21) the amount of principal and interest payments that are 
  6.23  due for the current calendar year on any nondefeased: 
  6.24     (i) general obligation tax increment financing bonds; 
  6.25     (ii) other tax increment financing bonds; and 
  6.26     (iii) notes and pay-as-you-go contracts; 
  6.27     (22) if the fiscal disparities contribution under chapter 
  6.28  276A or 473F for the district is computed under section 469.177, 
  6.29  subdivision 3, paragraph (a), the amount of increased property 
  6.30  taxes imposed on other properties in the municipality that 
  6.31  approved the tax increment financing plan as a result of the 
  6.32  fiscal disparities contribution; and 
  6.33     (23) any additional information the state auditor may 
  6.34  require. 
  6.35     (d) The commissioner of revenue shall prescribe the method 
  6.36  of calculating the increased property taxes under paragraph (c), 
  7.1   clause (22), and the form of the statement disclosing this 
  7.2   information on the annual statement under subdivision 5. 
  7.3      (e) The reporting requirements imposed by this subdivision 
  7.4   apply to districts certified before, on, and after August 1, 
  7.5   1979. 
  7.6      Sec. 3.  [REPEALER.] 
  7.7      Minnesota Statutes 1998, section 469.175, subdivision 6a, 
  7.8   is repealed. 
  7.9      Sec. 4.  [EFFECTIVE DATE.] 
  7.10     Sections 1 to 3 are effective for reports due in 2001 and 
  7.11  subsequent years.