Bill > SF2824

This bill modifies tax increment financing (TIF) laws to make it easier to convert vacant or underused commercial and industrial buildings to residential purposes in Minneapolis and St. Paul. Specifically, the bill adds a new category of "redevelopment district" that allows tax increment financing for properties that are vacant, unused, underused, or infrequently used for commercial or industrial purposes in these two cities. The bill changes how the original tax capacity (a key measure in calculating tax increment financing) is calculated for such properties, essentially allowing the land value to be used as the base value when creating a TIF district. The legislation also adjusts the requirements for municipalities to approve TIF plans, removing some economic development criteria for districts that meet the new vacant/underused commercial property standard. These changes are designed to encourage redevelopment of underutilized urban properties by making it financially more attractive to transform them, particularly into residential uses. The bill will be effective for TIF districts certified after June 30, 2025, giving local governments and developers time to adapt to the new rules.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2824&ssn=0&y=2025