Bill Text: MN HF668 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Original net tax capacity adjustment provided for districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-18 - Introduction and first reading, referred to Taxes [HF668 Detail]
Download: Minnesota-2013-HF668-Introduced.html
1.2relating to tax increment financing; providing an adjustment to original net
1.3capacity for certain districts; amending Minnesota Statutes 2012, section
1.4469.177, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 469.177, is amended by adding a
1.7subdivision to read:
1.8 Subd. 1d. Original net tax capacity adjustment; homestead market value
1.9exclusion. (a) Upon approval by the municipality, by resolution, the authority may elect
1.10to reduce the net tax capacity of a qualified district by the amount of the market value
1.11exclusion under section 273.13, subdivision 35. The amount of the reduction may not
1.12reduce the original net tax capacity below zero.
1.13(b) For purposes of this subdivision, a qualified district means a tax increment
1.14financing district that satisfies both of the following conditions:
1.15(1) for taxes payable in 2011, the authority received a homestead market value credit
1.16reimbursement under section 273.1384 for the district of $10,000 or more; and
1.17(2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
1.18the market value exclusion for the district was equal to or greater than 1.75 percent of the
1.19district's captured tax capacity.
1.20The calculation of the amount under clause (2) must reflect any adjustments to original
1.21net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
1.22market value exclusion.
1.23(c) The authority must notify the county auditor of its election under this section no
1.24later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
2.1taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
2.2for taxes payable in 2015.
2.3EFFECTIVE DATE.This section is effective the day following final enactment
2.4and applies to all tax increment financing districts regardless of when the request for
2.5certification was made.
1.3capacity for certain districts; amending Minnesota Statutes 2012, section
1.4469.177, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 469.177, is amended by adding a
1.7subdivision to read:
1.8 Subd. 1d. Original net tax capacity adjustment; homestead market value
1.9exclusion. (a) Upon approval by the municipality, by resolution, the authority may elect
1.10to reduce the net tax capacity of a qualified district by the amount of the market value
1.11exclusion under section 273.13, subdivision 35. The amount of the reduction may not
1.12reduce the original net tax capacity below zero.
1.13(b) For purposes of this subdivision, a qualified district means a tax increment
1.14financing district that satisfies both of the following conditions:
1.15(1) for taxes payable in 2011, the authority received a homestead market value credit
1.16reimbursement under section 273.1384 for the district of $10,000 or more; and
1.17(2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
1.18the market value exclusion for the district was equal to or greater than 1.75 percent of the
1.19district's captured tax capacity.
1.20The calculation of the amount under clause (2) must reflect any adjustments to original
1.21net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
1.22market value exclusion.
1.23(c) The authority must notify the county auditor of its election under this section no
1.24later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
2.1taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
2.2for taxes payable in 2015.
2.3EFFECTIVE DATE.This section is effective the day following final enactment
2.4and applies to all tax increment financing districts regardless of when the request for
2.5certification was made.
