SF 1757

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

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; expanding the 
  1.3             definition of a qualified housing district to include 
  1.4             certain owner-occupied housing for purposes of the 
  1.5             state aid offset; amending Minnesota Statutes 1998, 
  1.6             section 273.1399, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 273.1399, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.11  section, the following terms have the meanings given. 
  1.12     (a) "Qualifying captured net tax capacity" means the 
  1.13  following amounts:  
  1.14     (1) The captured net tax capacity of a new or the expanded 
  1.15  part of an existing economic development tax increment financing 
  1.16  district, for which certification was requested after April 30, 
  1.17  1990. 
  1.18     (2) The captured net tax capacity of a new or the expanded 
  1.19  part of an existing tax increment financing district, other than 
  1.20  an economic development district, for which certification was 
  1.21  requested after April 30, 1990, multiplied by the following 
  1.22  percentage based on the number of years that have elapsed since 
  1.23  the assessment year of the original net tax capacity.  In no 
  1.24  case may the final amounts be less than zero or greater than the 
  1.25  total captured net tax capacity of the district. 
  1.26           Number of     Renewal and     All other 
  2.1            years         Renovation      Districts
  2.2                          Districts
  2.3            0 to 5           0                0 
  2.4               6            12.5              6.25
  2.5               7            25               12.5 
  2.6               8            37.5             18.75 
  2.7               9            50               25 
  2.8              10            62.5             31.25 
  2.9              11            75               37.5 
  2.10             12            87.5             43.75 
  2.11             13           100               50 
  2.12             14           100               56.25 
  2.13             15           100               62.5 
  2.14             16           100               68.75 
  2.15             17           100               75 
  2.16             18           100               81.25 
  2.17             19           100               87.5 
  2.18             20           100               93.75 
  2.19             21 or more   100              100 
  2.20     (3) The following rules apply to a hazardous substance 
  2.21  subdistrict.  The applicable percentage under clause (2) must be 
  2.22  determined under the "all other districts" category.  The number 
  2.23  of years must be measured from the date of certification of the 
  2.24  subdistrict for purposes of the additional captured net tax 
  2.25  capacity resulting from the reduction in the subdistrict's or 
  2.26  site's original net tax capacity.  After termination of the 
  2.27  overlying district, captured net tax capacity includes the full 
  2.28  amount that is captured by the subdistrict. 
  2.29     (4) Qualified captured tax capacity does not include the 
  2.30  captured tax capacity of exempt districts under subdivisions 6 
  2.31  and 7.  
  2.32     (b) The terms defined in section 469.174 have the meanings 
  2.33  given in that section. 
  2.34     (c) "Qualified housing district" means a housing district: 
  2.35     (1) for a residential rental project or projects in which 
  2.36  the only properties receiving assistance from revenues derived 
  3.1   from tax increments from the district meet all of the 
  3.2   requirements for a low-income housing credit under section 42 of 
  3.3   the Internal Revenue Code of 1986, as amended through December 
  3.4   31, 1992, regardless of whether the project actually receives a 
  3.5   low-income housing credit; or 
  3.6      (2) for a project in which at least 50 percent of the 
  3.7   housing receiving assistance from revenues derived from the 
  3.8   district is either (i) rental housing affordable to persons at 
  3.9   or below 50 percent of the area median income as published 
  3.10  annually by the United States Department of Housing and Urban 
  3.11  Development and in accordance with the procedures for 
  3.12  determining rents under the United States Department of Housing 
  3.13  and Urban Development section 8 rental assistance programs for 
  3.14  at least 40 years beginning with the date of commencement of 
  3.15  construction, or (ii) owner occupied housing initially purchased 
  3.16  and occupied by individuals whose family income is at or below 
  3.17  80 percent of the area median income as published annually by 
  3.18  the United States Department of Housing and Urban Development. 
  3.19     Sec. 2.  [EFFECTIVE DATE.] 
  3.20     Section 1 is effective for requests for certification 
  3.21  received on or after September 2, 1998.