Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2006 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; tax increment financing; clarifying use of unobligated
3	3	1.3 increment; extending expiration; amending Minnesota Statutes 2024, section
4	4	1.4 469.176, subdivision 4n.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 469.176, subdivision 4n, is amended to read:
7	7	1.7 Subd. 4n.Temporary use of increment authorized.(a) Notwithstanding any other
8	8	1.8provision of this section or any other law to the contrary, except the requirements to pay
9	9	1.9bonds to which increments are pledged, the authority may elect, by resolution, to transfer
10	10	1.10unobligated increment for one or more of the following purposes:
11	11	1.11 (1) to provide improvements, loans, interest rate subsidies, or assistance in any form to
12	12	1.12private development consisting of the construction or substantial rehabilitation of buildings
13	13	1.13and ancillary facilities, if doing so will create or retain jobs in the state, including construction
14	14	1.14jobs, and the construction commences before December 31, 2025, and would not have
15	15	1.15commenced before that date without the assistance; or
16	16	1.16 (2) to make an equity or similar investment in a corporation, partnership, or limited
17	17	1.17liability company that the authority determines is necessary to make construction of a
18	18	1.18development that meets the requirement of clause (1) financially feasible.
19	19	1.19 (b) For each calendar year for which transfers are permitted under this subdivision, the
20	20	1.20maximum transfer equals the excess of the district's unobligated increment which includes
21	21	1.21any increment not required for payments of obligations due during six months following
22	22	1.22the transfer on outstanding bonds, binding contracts, and other outstanding financial
23	23	1.23obligations of the district to which the district's increment is pledged.
24	24	1Section 1.
25	25	REVISOR MS/KR 25-0407602/19/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 2006
31	31	NINETY-FOURTH SESSION
32	32	Authored by Joy, Davids, Elkins, Norris and Huot03/06/2025
33	33	The bill was read for the first time and referred to the Committee on Taxes 2.1 (c) The authority may transfer increments permitted under this subdivision after creating
34	34	2.2a written spending plan that authorizes the authority to take the action described in paragraph
35	35	2.3(a) and details the use of transferred increment, including the use of interest earned on
36	36	2.4transferred increment. Additionally, the municipality must approve the authority's spending
37	37	2.5plan after holding a public hearing. The municipality must publish notice of the hearing in
38	38	2.6a newspaper of general circulation in the municipality and on the municipality's public
39	39	2.7website at least ten days, but not more than 30 days, prior to the date of the hearing. Prior
40	40	2.8to December 31, 2025, the municipality may amend a written spending plan to extend the
41	41	2.9date by which transferred increment may be used, and to authorize use of interest earned
42	42	2.10on transferred increment, after holding a public hearing as required in this section. A signed
43	43	2.11and approved copy of the amended plan must be filed with the state auditor. Interest earned
44	44	2.12on transferred increment may be treated the same as transferred increment regardless of
45	45	2.13whether a municipality amends a spending plan.
46	46	2.14 (d) Increment that is improperly retained, received, spent, or transferred is not eligible
47	47	2.15for transfer under this subdivision.
48	48	2.16 (e) An authority making a transfer under this subdivision must provide to the Office of
49	49	2.17the State Auditor a copy of the spending plan approved and signed by the municipality.
50	50	2.18 (f) The authority to transfer increments under this subdivision expires on December 31,
51	51	2.192022. All transferred increments must be spent, loaned, invested, or otherwise irrevocably
52	52	2.20committed by December 31, 2025 2027. Increment not spent, loaned, invested, or otherwise
53	53	2.21irrevocably committed by December 31, 2025 2027, must be returned to the district. If the
54	54	2.22district has already been decertified, the increment shall be treated as excess increment and
55	55	2.23distributed as provided in subdivision 2, paragraph (c), clause (4).
56	56	2.24 EFFECTIVE DATE.This section is effective the day following final enactment.
57	57	2Section 1.
58	58	REVISOR MS/KR 25-0407602/19/25