MN
Minnesota House Bill HF1284

Minnesota 2023-2024 Regular Session

Minnesota House Bill HF1284

Introduced
2/6/23  

Caption

Five-year and six-year rules extended for tax increment financing districts located in nonmetropolitan counties.

Impact

The main impact of HF1284 is the potential increase in funding accessibility for redevelopment projects in nonmetropolitan areas. By extending the deadlines for the use of tax increment revenues, the bill is designed to alleviate pressures on local governments and developers who often encounter delays due to various economic factors. This change is expected to promote more robust economic activities and greater investment in the infrastructure and housing sectors within these regions, ultimately aiming to stimulate local economies.

Summary

House File 1284 proposes an amendment to Minnesota Statutes concerning tax increment financing by extending the timelines for financial activities associated with tax increment districts located in nonmetropolitan counties. Specifically, the five-year and six-year rules related to revenues and expenditures in these districts will be expanded, allowing for a longer duration before the revenues are required to be utilized. This adjustment aims to meet the challenges that nonmetropolitan districts face regarding funding and project development, particularly given the unique economic circumstances these areas frequently endure.

Contention

However, there are points of contention surrounding this bill. Critics may argue that such extensions could lead to inefficiencies or misuse of funds if there is no stringent oversight regarding how the extended timelines are utilized. There are concerns that longer deadlines might reduce the incentive for prompt development and revitalization efforts, potentially allowing for ongoing stagnation in areas that need immediate attention. Thus, while the bill aims to support nonmetropolitan development, it also raises essential questions about accountability and the wise use of public funds.

Companion Bills

MN SF1952

Similar To Nonmetropolitan counties tax increment financing districts five and six year rules extension

Previously Filed As

MN SF1952

Nonmetropolitan counties tax increment financing districts five and six year rules extension

MN HF338

Tax increment financing; five- and six-year rules for certain districts extended, and income restrictions removed for certain housing districts.

MN SF4595

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

MN SF585

Five- and six-year rules extension for certain districts

MN HF335

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

MN HF4973

St. Paul; tax increment financing district five-year rule extension provided.

MN SF5155

Extension provision of the five-year rule for a St. Paul tax increment financing district

MN HF4942

Edina; tax increment financing districts five-year rule extensions and duration extensions provided.

MN SF1953

Tax increment financing housing districts in nonmetropolitan counties income restrictions removal

MN HF1285

Income restrictions removed for tax increment financing housing districts in nonmetropolitan counties.

Similar Bills

MN HF880

Tax increment financing provisions modified, various pooling provisions clarified, administrative expense limitations clarified, and application of violations and remedies expanded.

MN SF261

Various pooling provisions clarification

MN SF585

Five- and six-year rules extension for certain districts

MN HF338

Tax increment financing; five- and six-year rules for certain districts extended, and income restrictions removed for certain housing districts.

MN SF4595

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

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 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.