HF 815

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to tax increment financing; requiring fiscal 
  1.3             disparities contributions to be made from the 
  1.4             increment district; amending Minnesota Statutes 1996, 
  1.5             sections 469.175, subdivision 5; and 469.177, 
  1.6             subdivision 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 469.175, 
  1.9   subdivision 5, is amended to read: 
  1.10     Subd. 5.  [ANNUAL DISCLOSURE.] (a) For all tax increment 
  1.11  financing districts, whether created prior or subsequent to 
  1.12  August 1, 1979, on or before July 1 of each year, the authority 
  1.13  shall submit to the county board, the county auditor, the school 
  1.14  board, state auditor and, if the authority is other than the 
  1.15  municipality, the governing body of the municipality, a report 
  1.16  of the status of the district.  The report shall include the 
  1.17  following information:  the amount and the source of revenue in 
  1.18  the account, the amount and purpose of expenditures from the 
  1.19  account, the amount of any pledge of revenues, including 
  1.20  principal and interest on any outstanding bonded indebtedness, 
  1.21  the original net tax capacity of the district and any 
  1.22  subdistrict, the captured net tax capacity retained by the 
  1.23  authority, the captured net tax capacity shared with other 
  1.24  taxing districts, the tax increment received, and any additional 
  1.25  information necessary to demonstrate compliance with any 
  1.26  applicable tax increment financing plan. 
  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, and any additional information the authority 
  2.9   deems necessary shall be published in a newspaper of general 
  2.10  circulation in the municipality.  If the fiscal disparities 
  2.11  contribution under chapter 276A or 473F for the district is 
  2.12  computed under Minnesota Statutes 1996, section 469.177, 
  2.13  subdivision 3, paragraph (a), the annual statement must disclose 
  2.14  that fact and indicate the amount of increased property tax 
  2.15  imposed on other properties in the municipality as a result of 
  2.16  the fiscal disparities contribution.  The commissioner of 
  2.17  revenue shall prescribe the form of this statement and the 
  2.18  method for calculating the increased property taxes.  The 
  2.19  authority must publish the annual statement for a year no later 
  2.20  than July 1 of the next year.  The authority must provide a copy 
  2.21  of the annual statement to the state auditor by the time it 
  2.22  submits it for publication.  
  2.23     Sec. 2.  Minnesota Statutes 1996, section 469.177, 
  2.24  subdivision 3, is amended to read: 
  2.25     Subd. 3.  [TAX INCREMENT, RELATIONSHIP TO CHAPTERS 276A AND 
  2.26  473F.] (a) Unless the governing body elects pursuant to clause 
  2.27  (b) the following method of computation shall apply: 
  2.28     (1) The original net tax capacity and the current net tax 
  2.29  capacity shall be determined before the application of the 
  2.30  fiscal disparity provisions of chapter 276A or 473F.  Where the 
  2.31  original net tax capacity is equal to or greater than the 
  2.32  current net tax capacity, there is no captured net tax capacity 
  2.33  and no tax increment determination.  Where the original net tax 
  2.34  capacity is less than the current net tax capacity, the 
  2.35  difference between the original net tax capacity and the current 
  2.36  net tax capacity is the captured net tax capacity.  This amount 
  3.1   less any portion thereof which the authority has designated, in 
  3.2   its tax increment financing plan, to share with the local taxing 
  3.3   districts is the retained captured net tax capacity of the 
  3.4   authority.  
  3.5      (2) The county auditor shall exclude the retained captured 
  3.6   net tax capacity of the authority from the net tax capacity of 
  3.7   the local taxing districts in determining local taxing district 
  3.8   tax rates.  The local tax rates so determined are to be extended 
  3.9   against the retained captured net tax capacity of the authority 
  3.10  as well as the net tax capacity of the local taxing districts.  
  3.11  The tax generated by the extension of the lesser of (A) the 
  3.12  local taxing district tax rates or (B) the original local tax 
  3.13  rate to the retained captured net tax capacity of the authority 
  3.14  is the tax increment of the authority.  
  3.15     (b) The governing body may, by resolution approving the tax 
  3.16  increment financing plan pursuant to section 469.175, 
  3.17  subdivision 3, elect The following method of computation applies 
  3.18  to determine the amount of tax increment: 
  3.19     (1) The original net tax capacity shall be determined 
  3.20  before the application of the fiscal disparity provisions of 
  3.21  chapter 276A or 473F.  The current net tax capacity shall 
  3.22  exclude any fiscal disparity commercial-industrial net tax 
  3.23  capacity increase between the original year and the current year 
  3.24  multiplied by the fiscal disparity ratio determined pursuant to 
  3.25  section 276A.06, subdivision 7, or 473F.08, subdivision 6.  
  3.26  Where the original net tax capacity is equal to or greater than 
  3.27  the current net tax capacity, there is no captured net tax 
  3.28  capacity and no tax increment determination.  Where the original 
  3.29  net tax capacity is less than the current net tax capacity, the 
  3.30  difference between the original net tax capacity and the current 
  3.31  net tax capacity is the captured net tax capacity.  This amount 
  3.32  less any portion thereof which the authority has designated, in 
  3.33  its tax increment financing plan, to share with the local taxing 
  3.34  districts is the retained captured net tax capacity of the 
  3.35  authority.  
  3.36     (2) The county auditor shall exclude the retained captured 
  4.1   net tax capacity of the authority from the net tax capacity of 
  4.2   the local taxing districts in determining local taxing district 
  4.3   tax rates.  The local tax rates so determined are to be extended 
  4.4   against the retained captured net tax capacity of the authority 
  4.5   as well as the net tax capacity of the local taxing districts.  
  4.6   The tax generated by the extension of the lesser of (A) the 
  4.7   local taxing district tax rates or (B) the original local tax 
  4.8   rate to the retained captured net tax capacity of the authority 
  4.9   is the tax increment of the authority.  
  4.10     (3) An election by the governing body pursuant to paragraph 
  4.11  (b) shall be submitted to the county auditor by the authority at 
  4.12  the time of the request for certification pursuant to 
  4.13  subdivision 1. 
  4.14     (c) The method of computation of tax increment applied to a 
  4.15  district pursuant to paragraph (a) or (b) shall remain the same 
  4.16  for the duration of the district, except that the governing body 
  4.17  may elect to change its election from the method of computation 
  4.18  in paragraph (a) to the method in paragraph (b). 
  4.19     Sec. 3.  [EFFECTIVE DATE.] 
  4.20     Sections 1 and 2 are effective for tax increment financing 
  4.21  districts for which the request for certification is made after 
  4.22  June 30, 1996.