Bill > HF949

This bill clarifies and extends the rules for how local tax increment financing (TIF) authorities can use unobligated tax increment funds. Specifically, the bill allows TIF authorities to transfer unobligated increment (the additional property tax revenue generated by increased property values in a designated development district) for specific economic development purposes, such as providing improvements, loans, or assistance to private development projects that will create or retain jobs. The bill extends the previous authorization to transfer funds, which was set to expire on December 31, 2022, and now requires that any transferred increments must be spent, loaned, or invested by December 31, 2025. The bill also adds more detailed requirements for the transfer process, including creating a written spending plan that must be approved by the municipality after a public hearing. Furthermore, if any transferred increment is not spent by the deadline, it must be returned to the district, including any proceeds, principal, interest, or investment earnings. The bill aims to provide more flexibility for local economic development while maintaining accountability for the use of these tax increment funds.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0949&ssn=0&y=2025