MN
Minnesota House Bill HF948

Minnesota 2025-2026 Regular Session

Minnesota House Bill HF948

Introduced
2/17/25  

Caption

Tax increment financing; redevelopment districts eligibility modified, renewal and renovation districts repealed, and duration limits shortened.

Impact

The proposed changes may significantly alter local financing capabilities for redevelopment projects. By modifying the criteria for establishing TIF districts, municipalities may find it easier to address urban decay and promote housing projects. However, the repeal of previous renewal and renovation district classifications could limit tools previously available to local governments, potentially hindering their ability to finance certain types of revitalization projects. Additionally, the shorter duration for receiving TIF revenues may necessitate a more rapid return on investment for municipalities.

Summary

HF948 seeks to amend Minnesota's tax increment financing (TIF) laws, focusing on redevelopment districts. The bill changes eligibility requirements for these districts, repeals renewal and renovation districts, and shortens the duration limits for TIF funding. Specifically, it aims to establish clearer conditions under which redevelopment districts can be designated, to ensure tax increment financing is directed toward projects that can address significant local needs such as substandard housing and vacant properties.

Contention

The bill has generated some debate amongst stakeholders, particularly concerning the balance of state oversight versus local control. Supporters argue that streamlining TIF processes will promote faster economic revitalization and more effective use of tax dollars, particularly in areas with pressing redevelopment needs. Critics, however, express concern that too much state control could undermine local decision-making and community-driven projects, leading to outcomes that may not align with the unique needs of individual municipalities.

Companion Bills

MN SF7

Similar To Eligibility modification for redevelopment districts

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 HF263

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

MN SF260

Savage tax increment financing district special rule amendments

MN HF3585

Maple Grove tax increment financing district special rules authorized.

MN HF978

Tax increment financing provisions modified, and economic development district limitation modified.

MN HF880

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

MN SF3513

Maple Grove tax increment financing special rules authorization

MN HF5194

Brooklyn Park; special authority and provisions related to property taxes, tax increment financing, and sales and use taxes for projects provided; special tax increment financing authority provided; special property tax abatement authority provided; value capture district establishment authorized; and money appropriated.

Similar Bills

MN SF7

Eligibility modification for redevelopment districts

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 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.

MN SF2824

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

MN HF2437

Tax policy and finance bill.

MN SF261

Various pooling provisions clarification

MN HF880

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