HF 3758

as introduced - 89th Legislature (2015 - 2016) Posted on 03/31/2016 12:33pm

A bill for an act
relating to tax increment financing; clarifying the permitted use of certain
increments; amending Minnesota Statutes 2014, section 469.1763, subdivision 4.

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

Section 1.

Minnesota Statutes 2014, section 469.1763, subdivision 4, is amended to read:

Subd. 4.

Use of revenues for decertification.

(a) In each year beginning with the
sixth year following certification of the district, if the applicable in-district percent of the
revenues derived from tax increments paid by properties in the district new text begin received in that
year new text end exceeds the amount of expenditures deleted text begin that have been made deleted text end for costs permitted under
subdivision 3 new text begin that were paid in that year new text end , an amount equal to the difference between the
in-district percent of the revenues derived from tax increments paid by properties in the
district new text begin received in that year new text end and the amount of expenditures deleted text begin that have been made deleted text end for costs
permitted under subdivision 3 new text begin that were paid in that year new text end must be used and only used to
pay or defease the following or be set aside to pay the following:

(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);

(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);

(3) credit enhanced bonds to which the revenues derived from tax increments are
pledged, but only to the extent that revenues of the district for which the credit enhanced
bonds were issued are insufficient to pay the bonds and to the extent that the increments
from the applicable pooling percent share for the district are insufficient; or

(4) the amount provided by the tax increment financing plan to be paid under
subdivision 2, paragraphs (b), (d), and (e).

(b) The district must be decertified and the pledge of tax increment discharged
when the outstanding bonds have been defeased and when sufficient money has been set
aside to pay, based on the increment to be collected through the end of the calendar year,
the following amounts:

(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3)
and (4);

(2) the amount specified in the tax increment financing plan for activities qualifying
under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
qualifying under paragraph (a), clause (1); and

(3) the additional expenditures permitted by the tax increment financing plan for
housing activities under an election under subdivision 2, paragraph (d), that have not been
funded with the proceeds of bonds qualifying under paragraph (a), clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request
for certification was made after April 30, 1990, for increments used after December 31,
2015. The changes in this section are a clarification and confirmation of the legislature's
intention in enacting the original provisions of the statute and must not be construed to
imply a contrary meaning of the statute for increments used in prior years.
new text end