Bill > HF2574

This bill modifies tax increment financing (TIF) regulations to make it easier for cities, specifically Minneapolis and St. Paul, to convert vacant or underused commercial and industrial buildings into residential properties. The bill expands the definition of a "redevelopment district" to include vacant, unused, or underused commercial or industrial properties located in Minneapolis or St. Paul, which allows local governments to use tax increment financing to support the conversion of these properties. When calculating the original tax capacity for such districts, the bill instructs county auditors to use the land value as the base tax capacity for parcels with vacant or underused commercial or industrial buildings. This change effectively provides financial incentives for developers to repurpose older commercial properties into residential housing, potentially helping to address housing availability and urban revitalization goals. The bill includes an effective date of July 1, 2025, meaning these new provisions will apply to tax increment financing districts certified after that date. The modifications aim to encourage adaptive reuse of existing urban properties and support housing development in major Minnesota cities by making TIF funding more accessible for such projects.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2574&ssn=0&y=2025