Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2824

Introduced
3/20/25  

Caption

Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification

Impact

The proposed changes are likely to have significant implications on state laws regarding property usage and urban planning. By enhancing the flexibility and applicability of TIF for residential conversions, SF2824 encourages municipalities to breathe new life into vacant properties and tackle housing crises more effectively. This could lead to an increase in affordable housing options in urban centers, directly impacting local economies and community dynamics.

Summary

Senate File 2824 focuses on tax increment financing (TIF) to facilitate the conversion of vacant or underused commercial or industrial properties into residential purposes. The bill modifies the existing calculations and findings required for a TIF district converting such properties, making it easier for municipalities to utilize tax increment financing as a tool for redevelopment. This aligns with broader goals of addressing housing shortages by repurposing existing structures rather than expanding into undeveloped areas.

Contention

There are concerns regarding the potential for misuse of TIF, as critics worry that the bill could lead to gentrification and displacement if not managed properly. The bill’s emphasis on redevelopment in areas like Minneapolis and St. Paul raises questions about environmental impact, community need, and the prioritization of residential development over retained commercial viability. Adequate oversight mechanisms will be crucial to prevent adverse effects on local populations who may already be vulnerable to housing instability.

Companion Bills

MN HF2574

Similar To Tax increment financing; use of increment to convert vacant or underused commercial or industrial buildings to residential purposes authorized, and calculation of increment and findings required for a district converting vacant or underused property modified.

Previously Filed As

MN SF4981

Use of tax increment from redevelopment districts to convert vacant or underused commercial or industrial buildings to residential purposes authorization and tax increment provisions modifications

MN HF4747

Property taxation; redevelopment district tax increment use authorized to convert vacant or underused commercial or industrial buildings to residential purposes, rules provided for calculating original net tax capacity of property to be converted from commercial or industrial to residential purposes, and district exemptions established to convert vacant or underused commercial or industrial purposes from the market value finding requirement.

MN HF335

Savage; tax increment financing provisions modified, and tax increment financing district special rules amended.

MN SF4595

Five-and six-year tax increment financing rules for certain districts authorization; certain housing districts income restrictions removal

MN HF4404

Eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and requirements on use of transferred increment imposed.

MN SF260

Savage tax increment financing district special rule amendments

MN SF135

City of Shakopee authorization to establish a tax increment financing district subject to special rules

MN SF3513

Maple Grove tax increment financing special rules authorization

MN HF263

Shakopee; tax increment financing provisions modified, and tax increment financing district established subject to special rules.

MN SF4947

Eligible uses of increment from tax increment financing districts to include transfers to local housing trust funds expansion provision

Similar Bills

MN HF4747

Property taxation; redevelopment district tax increment use authorized to convert vacant or underused commercial or industrial buildings to residential purposes, rules provided for calculating original net tax capacity of property to be converted from commercial or industrial to residential purposes, and district exemptions established to convert vacant or underused commercial or industrial purposes from the market value finding requirement.

MN SF4981

Use of tax increment from redevelopment districts to convert vacant or underused commercial or industrial buildings to residential purposes authorization and tax increment provisions modifications

MN HF948

Tax increment financing; redevelopment districts eligibility modified, renewal and renovation districts repealed, and duration limits shortened.

MN SF7

Eligibility modification for redevelopment districts

MN HF2574

Tax increment financing; use of increment to convert vacant or underused commercial or industrial buildings to residential purposes authorized, and calculation of increment and findings required for a district converting vacant or underused property modified.

AL HB481

Tax increment districts, redevelopment projects authorizes to continue through a subsequent tax increment district, Secs. 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8, 11-99-10 am'd.

AL SB260

Tax increment districts, redevelopment projects authorizes to continue through a subsequent tax increment district, Secs. 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8, 11-99-10 am'd.

WV HB2984

To revise the West Virginia Tax Increment Financing Act to authorize a county commission or municipal levying body to modify the termination times of certain districts