SF 3408

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

  1.1                          A bill for an act 
  1.2             relating to taxation; tax increment financing; 
  1.3             allowing pooling of increment for certain housing 
  1.4             developments; amending Minnesota Statutes 1998, 
  1.5             section 469.1763, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 469.1763, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 6.  [HOUSING DEVELOPMENTS.] (a) The restrictions in 
  1.10  subdivisions 2 through 4 do not apply to increments spent 
  1.11  exclusively to assist a housing development. 
  1.12     (b) For purposes of this subdivision, the following terms 
  1.13  have the meanings given. 
  1.14     (1) "Housing development" or "development" means housing 
  1.15  that meets the requirements for a qualified low-income building 
  1.16  as that term is used in section 42 of the Internal Revenue Code. 
  1.17     (2) "To assist" means amounts spent to: 
  1.18     (i) acquire and prepare the site; 
  1.19     (ii) acquire, construct, or rehabilitate buildings or other 
  1.20  improvements; and 
  1.21     (iii) make public improvements directly related to the 
  1.22  development. 
  1.23     (c) For a development, the amount of the tax increments 
  1.24  that qualifies under this subdivision are limited to the 
  1.25  qualified basis for the development, as defined under section 
  2.1   42(c) of the Internal Revenue Code, less the amount of any tax 
  2.2   credit the development is allowed under section 42 of the 
  2.3   Internal Revenue Code. 
  2.4      Sec. 2.  [EFFECTIVE DATE.] 
  2.5      Section 1 applies to increments spent after July 1, 2000.