SF 2645

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; allowing tax 
  1.3             increments to be used in housing interest rate 
  1.4             reduction programs for a period of 15 years; amending 
  1.5             Minnesota Statutes 1994, sections 469.176, subdivision 
  1.6             4f; and 469.1761, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 469.176, 
  1.9   subdivision 4f, is amended to read: 
  1.10     Subd. 4f.  [INTEREST REDUCTION.] Revenues derived from tax 
  1.11  increment may be used to finance the costs of an interest 
  1.12  reduction program operated pursuant to section 469.012, 
  1.13  subdivisions 7 to 10, or pursuant to other law granting interest 
  1.14  reduction authority and power by reference to those subdivisions 
  1.15  only under the following conditions:  (1) tax increments may not 
  1.16  be collected for a program for a period in excess of 12 15 years 
  1.17  after the date of the first interest rate reduction payment for 
  1.18  the program, (2) tax increments may not be used for an interest 
  1.19  reduction program, if the proceeds of bonds issued pursuant to 
  1.20  section 469.178 after December 31, 1985, have been or will be 
  1.21  used to provide financial assistance to the specific project 
  1.22  which would receive the benefit of the interest reduction 
  1.23  program, and (3) tax increments may not be used to finance an 
  1.24  interest reduction program for owner-occupied single-family 
  1.25  dwellings.  
  1.26     Sec. 2.  Minnesota Statutes 1994, section 469.1761, 
  2.1   subdivision 1, is amended to read: 
  2.2      Subdivision 1.  [REQUIREMENT IMPOSED.] In order for a tax 
  2.3   increment financing district to qualify as a housing district, 
  2.4   the income limitations provided in this section must be 
  2.5   satisfied.  The requirements imposed by this section apply to 
  2.6   residential property receiving assistance financed with tax 
  2.7   increments, including interest reduction, land transfers at less 
  2.8   than the authority's cost of acquisition, utility service or 
  2.9   connections, roads, or other subsidies.  The provisions of this 
  2.10  section do not apply (1) to interest reduction programs, 
  2.11  provided that the duration of the district is limited to 12 15 
  2.12  years from the collection of the first increment or (2) to 
  2.13  districts located in a targeted area as defined in section 
  2.14  462C.02, subdivision 9, clause (e). 
  2.15     Sec. 3.  [EFFECTIVE DATE.] 
  2.16     Section 1 is effective the day following final enactment 
  2.17  and applies to interest reduction programs established after 
  2.18  December 31, 1985, and to tax increment financing districts for 
  2.19  which the request for certification was filed after December 31, 
  2.20  1985.  Section 2 is effective the day following final enactment 
  2.21  and applies to tax increment financing districts for which the 
  2.22  request for certification was filed on or after October 4, 1989.