Bill > HF3166

This bill modifies Minnesota's tax increment financing (TIF) law by requiring school district approval for establishing economic development districts, with some exceptions. Specifically, for most economic development districts, the county auditor cannot certify the original net tax capacity until each school district containing part of the proposed district has reviewed the TIF plan materials and approved the plan by resolution. The bill does not apply to economic development districts established for workforce housing projects that meet certain specific criteria. The change aims to give school districts more input into the creation of economic development districts, which are special zones where future property tax increases (increments) can be used to fund development projects. The bill will be effective for districts seeking certification after July 1, 2025, meaning it does not immediately impact existing or pending districts. This modification represents a shift in local governance by providing school districts with a formal approval role in economic development planning, potentially giving them more influence over local economic development strategies and tax increment financing decisions.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3166&ssn=0&y=2025