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1.1To: Senator Skoe, Chair
1.2Committee on Taxes
1.4Chair of the Tax Reform Division, to which was referred
1.5S.F. No. 119:
A bill for an actrelating to taxation; conforming certain income,
1.6franchise, and property tax refund provisions for tax year 2012 to the provisions of
1.7the Federal Aviation Administration Modernization and Reform Act of 2012 and the
1.8American Taxpayer Relief Act of 2012;amending Minnesota Statutes 2012, sections
1.9290.01, subdivisions 19, 31; 290A.03, subdivision 15.
1.10Reports the same back with the recommendation that the bill be amended as follows:
1.11Page 1, after line 7, insert:
1.12 "Section 1. Minnesota Statutes 2012, section 116J.8737, is amended by adding a
1.13subdivision to read:
1.14 Subd. 5a. Promotion of credit in greater Minnesota. (a) By July 1, 2012, the
1.15commissioner shall develop a plan to increase awareness of and use of the credit for
1.16investments in greater Minnesota businesses with a target goal that a minimum of 30
1.17percent of the credit will be awarded for those investments during the second half
1.18of calendar year 2013 and for each full calendar year thereafter. Beginning with the
1.19legislative report due on March 15, 2013, under subdivision 9, the commissioner shall
1.20report on its plan under this subdivision and the results achieved.
1.21(b) If the target goal of 30 percent under paragraph (a) is not achieved for the
1.22six-month period ending on December 31, 2013, the credit percentage under subdivision
1.235, paragraph (a), is increased to 40 percent for a qualified investment made after December
1.2431, 2013, in a greater Minnesota business. This paragraph does not apply and the credit
1.25percentage for all qualified investments is the rate provided under subdivision 5 for any
1.26calendar year beginning after a calendar year for which the commissioner determines the
1.2730 percent target has been satisfied. The commissioner shall timely post notification of
1.28changes in the credit rate under this paragraph on the department's website.
1.29(c) For purposes of this section, a "greater Minnesota business" means a qualified
1.30small business with its headquarters and 51 percent or more of its employees employed
1.31at Minnesota locations outside of the metropolitan area as defined in section 473.121,
1.33EFFECTIVE DATE.This section is effective the day following final enactment."
1.34Page 3, after line 5 insert:
1.35 "Sec. 4. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
1.36 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.37have the meanings given.
2.1(b) "Account" means the historic credit administration account in the special
2.3(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
2.5(d) "Project" means rehabilitation of a certified historic structure, as defined in
2.6section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
2.7allowed a federal credit
2.8(e) "Society" means the Minnesota Historical Society.
2.9(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
2.11(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue
2.13(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
2.14the Internal Revenue Code.
2.15EFFECTIVE DATE.This section is effective the day following final enactment.
2.16 Sec. 5. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
2.17 Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
2.18section, the developer of a project must apply to the office before the rehabilitation begins.
2.19The application must contain the information and be in the form prescribed by the office.
2.20The office may collect a fee for application of up to $5,000, based on estimated qualified
2.22administrative expenses related to administering the credit and preparing the economic
2.23impact report in subdivision 9. Application fees are deposited in the account. The
2.24application must indicate if the application is for a credit or a grant in lieu of the credit
2.25or a combination of the two and designate the taxpayer qualifying for the credit or the
2.26recipient of the grant.
2.27 (b) Upon approving an application for credit, the office shall issue allocation
2.29 (1) verify eligibility for the credit or grant;
2.30 (2) state the amount of credit or grant anticipated with the project, with the credit
2.31amount equal to 100 percent and the grant amount equal to 90 percent of the federal
2.32credit anticipated in the application;
2.33 (3) state that the credit or grant allowed may increase or decrease if the federal
2.34credit the project receives at the time it is placed in service is different than the amount
2.35anticipated at the time the allocation certificate is issued; and
3.1 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
3.2or grant recipient is entitled to receive the credit or grant at the time the project is placed
3.3in service, provided that date is within three calendar years following the issuance of
3.4the allocation certificate.
3.5 (c) The office, in consultation with the commissioner
3.6if the project is eligible for a credit or a grant under this section and must notify the
3.7developer in writing of its determination. Eligibility for the credit is subject to review
3.8and audit by the commissioner
3.9 (d) The federal credit recapture and repayment requirements under section 50 of the
3.10Internal Revenue Code do not apply to the credit allowed under this section.
3.11(e) Any decision of the office under paragraph (c) of this subdivision may be
3.12challenged as a contested case under chapter 14. The contested case proceeding must be
3.13initiated within 45 days of the date of written notification by the office.
3.14EFFECTIVE DATE.This section is effective the day following final enactment.
3.15 Sec. 6. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
3.16 Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the
3.17office has issued an allocation certificate must notify the office when the project is placed
3.18in service. Upon verifying that the project has been placed in service, and was allowed a
3.19federal credit, the office must issue a credit certificate to the taxpayer designated in the
3.20application or must issue a grant to the recipient designated in the application. The credit
3.21certificate must state the amount of the credit.
3.22 (2) The credit amount equals the federal credit allowed for the project.
3.23 (3) The grant amount equals 90 percent of the federal credit allowed for the project.
3.24 (b) The recipient of a credit certificate may assign the certificate to another taxpayer,
3.25which is then allowed the credit under this section or section 297I.20, subdivision 3. An
3.26assignment is not valid unless the assignee notifies the commissioner within 30 days of the
3.27date that the assignment is made. The commissioner shall prescribe the forms necessary
3.28for notifying the commissioner of the assignment of a credit certificate and for claiming
3.29a credit by assignment.
3.30 (c) Credits passed through pursuant to subdivision 5 of this section are not an
3.31assignment of a credit certificate under this subdivision.
3.32 (d) A grant agreement between the office and the recipient of a grant may allow the
3.33grant to be issued to another individual or entity.
3.34EFFECTIVE DATE.This section is effective the day following final enactment.
4.1 Sec. 7. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
4.2 Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
4.3liability company taxed as a partnership, S corporation, or multiple owners of property
4.4are passed through to the partners, members, shareholders, or owners, respectively, pro
4.5rata to each partner, member, shareholder, or owner based on their share of the entity's
4.6assets or as specially allocated in their organizational documents or any other executed
4.7agreement, as of the last day of the taxable year.
4.8EFFECTIVE DATE.This section is effective the day following final enactment."
4.9Page 3, after line 13, insert:
4.10 "Sec. 9. Minnesota Statutes 2012, section 469.174, subdivision 2, is amended to read:
4.11 Subd. 2. Authority. "Authority" means a rural development financing authority
4.12created pursuant to sections 469.142 to 469.151; a housing and redevelopment authority
4.13created pursuant to sections 469.001 to 469.047; a port authority created pursuant to
4.14sections 469.048 to 469.068; an economic development authority created pursuant to
4.15sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to
4.16469.165 ; a municipality that is administering a development district created pursuant to
4.17sections 469.124 to 469.134 or any special law; a municipality that undertakes a project
4.18pursuant to sections 469.152 to 469.165, except a town located outside the metropolitan
4.19area or with a population of 5,000 persons or less; a municipality that undertakes a project
4.20located in an area designated under subdivision 30; or a municipality that exercises the
4.21powers of a port authority pursuant to any general or special law.
4.22EFFECTIVE DATE.This section is effective the day following final enactment.
4.23 Sec. 10. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision
4.25 Subd. 19a. Soil deficiency district. "Soil deficiency district" means a type of tax
4.26increment financing district consisting of a project, or portions of a project, within which
4.27the authority finds by resolution that the following conditions exist:
4.28(1) parcels consisting of 70 percent of the area of the district contain unusual terrain
4.29or soil deficiencies which require substantial filling, grading, or other physical preparation
4.30for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel
4.31requires substantial filling, grading, or other physical preparation for use; and
4.32(2) the estimated cost of the physical preparation under clause (1), but excluding
4.33costs directly related to roads as defined in section 160.01, and local improvements as
5.1described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01,
5.2exceeds the fair market value of the land before completion of the preparation.
5.3EFFECTIVE DATE.This section is effective for districts for which the request for
5.4certification is made after April 30, 2013.
5.5 Sec. 11. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision
5.7 Subd. 30. Mining reclamation project area. (a) An authority may designate an
5.8area within its jurisdiction as a mining reclamation project area by finding by resolution,
5.9that parcels consisting of at least 70 percent of the acreage, excluding street and railroad
5.10rights-of-way, are characterized by one or more of the following conditions:
5.11(1) peat or other soils with geotechnical deficiencies that impair development of
5.12buildings or infrastructure;
5.13(2) soils or terrain that requires substantial filling in order to permit the development
5.14of buildings or infrastructure;
5.15(3) landfills, dumps, or similar deposits of municipal or private waste;
5.16(4) quarries or similar resource extraction sites;
5.17(5) floodway; and
5.18(6) substandard buildings, within the meaning of section 469.174, subdivision 10.
5.19(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by
5.20the relevant condition if at least 50 percent of the area of the parcel contains the relevant
5.21condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by
5.22substandard buildings if substandard buildings occupy at least 30 percent of the area
5.23of the parcel.
5.24EFFECTIVE DATE.This section is effective for districts for which the request for
5.25certification is made after April 30, 2013.
5.26 Sec. 12. Minnesota Statutes 2012, section 469.175, subdivision 3, is amended to read:
5.27 Subd. 3. Municipality approval. (a) A county auditor shall not certify the original
5.28net tax capacity of a tax increment financing district until the tax increment financing plan
5.29proposed for that district has been approved by the municipality in which the district
5.30is located. If an authority that proposes to establish a tax increment financing district
5.31and the municipality are not the same, the authority shall apply to the municipality in
5.32which the district is proposed to be located and shall obtain the approval of its tax
5.33increment financing plan by the municipality before the authority may use tax increment
6.1financing. The municipality shall approve the tax increment financing plan only after a
6.2public hearing thereon after published notice in a newspaper of general circulation in the
6.3municipality at least once not less than ten days nor more than 30 days prior to the date
6.4of the hearing. The published notice must include a map of the area of the district from
6.5which increments may be collected and, if the project area includes additional area, a map
6.6of the project area in which the increments may be expended. The hearing may be held
6.7before or after the approval or creation of the project or it may be held in conjunction with
6.8a hearing to approve the project.
6.9 (b) Before or at the time of approval of the tax increment financing plan, the
6.10municipality shall make the following findings, and shall set forth in writing the reasons
6.11and supporting facts for each determination:
6.12 (1) that the proposed tax increment financing district is a redevelopment district, a
6.13renewal or renovation district, a housing district, a soils condition district, soil deficiency
6.14district, or an economic development district; if the proposed district is a redevelopment
6.15district or a renewal or renovation district, the reasons and supporting facts for the
6.16determination that the district meets the criteria of section 469.174, subdivision 10,
6.17paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing
6.18and retained and made available to the public by the authority until the district has been
6.20 (2) that, in the opinion of the municipality:
6.21 (i) the proposed development or redevelopment would not reasonably be expected to
6.22occur solely through private investment within the reasonably foreseeable future; and
6.23 (ii) the increased market value of the site that could reasonably be expected to occur
6.24without the use of tax increment financing would be less than the increase in the market
6.25value estimated to result from the proposed development after subtracting the present
6.26value of the projected tax increments for the maximum duration of the district permitted
6.27by the plan. The requirements of this item do not apply if the district is a housing district;
6.28 (3) that the tax increment financing plan conforms to the general plan for the
6.29development or redevelopment of the municipality as a whole;
6.30 (4) that the tax increment financing plan will afford maximum opportunity,
6.31consistent with the sound needs of the municipality as a whole, for the development or
6.32redevelopment of the project by private enterprise;
6.33 (5) that the municipality elects the method of tax increment computation set forth in
6.34section 469.177, subdivision 3, paragraph (b), if applicable; and
6.35(6) that for a redevelopment district, renewal and renovation district, soils condition
6.36district, or soil deficiency district established by the authority in a mining reclamation
7.1project area, the reasons and supporting facts for the determination that the mining
7.2reclamation project area meets the requirements under section 469.174, subdivision 30,
7.3must be documented in writing and retained and made available to the public by the
7.4authority until two years after the district is decertified. These findings must have been
7.5made and documented no more than ten years before approval of the tax increment
7.6financing plan for the district.
7.7 (c) When the municipality and the authority are not the same, the municipality shall
7.8approve or disapprove the tax increment financing plan within 60 days of submission by the
7.9authority. When the municipality and the authority are not the same, the municipality may
7.10not amend or modify a tax increment financing plan except as proposed by the authority
7.11pursuant to subdivision 4. Once approved, the determination of the authority to undertake
7.12the project through the use of tax increment financing and the resolution of the governing
7.13body shall be conclusive of the findings therein and of the public need for the financing.
7.14 (d) For a district that is subject to the requirements of paragraph (b), clause (2),
7.15item (ii), the municipality's statement of reasons and supporting facts must include all of
7.17 (1) an estimate of the amount by which the market value of the site will increase
7.18without the use of tax increment financing;
7.19 (2) an estimate of the increase in the market value that will result from the
7.20development or redevelopment to be assisted with tax increment financing; and
7.21 (3) the present value of the projected tax increments for the maximum duration of
7.22the district permitted by the tax increment financing plan.
7.23 (e) For purposes of this subdivision, "site" means the parcels on which the
7.24development or redevelopment to be assisted with tax increment financing will be located.
7.25EFFECTIVE DATE.This section is effective for districts for which the request for
7.26certification is made after April 30, 2013.
7.27 Sec. 13. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
7.28 Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be
7.29paid to the authority:
7.30(1) after 15 years after receipt by the authority of the first increment for a renewal
7.31and renovation district;
7.32(2) after 20 years after receipt by the authority of the first increment for a soils
7.33condition district or a soil deficiency district;
7.34(3) after eight years after receipt by the authority of the first increment for an
7.35economic development district;
8.1(4) for a housing district, a compact development district, or a redevelopment
8.2district, after 25 years from the date of receipt by the authority of the first increment.
8.3(b) For purposes of determining a duration limit under this subdivision or subdivision
8.41e that is based on the receipt of an increment, any increments from taxes payable in the year
8.5in which the district terminates shall be paid to the authority. This paragraph does not affect
8.6a duration limit calculated from the date of approval of the tax increment financing plan or
8.7based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph
8.8does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
8.9(c) An action by the authority to waive or decline to accept an increment has no
8.10effect for purposes of computing a duration limit based on the receipt of increment under
8.11this subdivision or any other provision of law. The authority is deemed to have received an
8.12increment for any year in which it waived or declined to accept an increment, regardless
8.13of whether the increment was paid to the authority.
8.14(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
8.15reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
8.16(b), does not constitute receipt of increment by the overlying district for the purpose of
8.17calculating the duration limit under this section.
8.18EFFECTIVE DATE.This section is effective for districts for which the request for
8.19certification is made after April 30, 2013.
8.20 Sec. 14. Minnesota Statutes 2012, section 469.176, subdivision 4b, is amended to read:
8.21 Subd. 4b. Soils condition districts. Revenue derived from Tax increment from a
8.22soils condition district may be used only to (1) acquire parcels on which the improvements
8.23described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and
8.24(3) pay for the administrative expenses of the authority allocable to the district, including
8.25the cost of preparation of the development action response plan. For a soils condition
8.26district located in a mining reclamation project area, tax increments may also be expended
8.27on the additional cost of public improvements directly caused by the removal or remedial
8.28action and located within the mining reclamation project area.
8.29EFFECTIVE DATE.This section is effective for districts for which the request for
8.30certification is made after April 30, 2013.
8.31 Sec. 15. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
8.32 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
8.33from an economic development district may not be used to provide improvements, loans,
9.1subsidies, grants, interest rate subsidies, or assistance in any form to developments
9.2consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
9.3facilities (determined on the basis of square footage) are used for a purpose other than:
9.4 (1) the manufacturing or production of tangible personal property, including
9.5processing resulting in the change in condition of the property;
9.6 (2) warehousing, storage, and distribution of tangible personal property, excluding
9.8 (3) research and development related to the activities listed in clause (1) or (2);
9.9 (4) telemarketing if that activity is the exclusive use of the property;
9.10 (5) tourism facilities;
9.11 (6) qualified border retail facilities; or
9.12 (7) space necessary for and related to the activities listed in clauses (1) to (6).
9.13 (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
9.14increment from an economic development district may be used to provide improvements,
9.15loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
9.16square feet of any separately owned commercial facility located within the municipal
9.17jurisdiction of a small city, if the revenues derived from increments are spent only to
9.18assist the facility directly or for administrative expenses, the assistance is necessary to
9.19develop the facility, and all of the increments, except those for administrative expenses,
9.20are spent only for activities within the district.
9.21 (c) A city is a small city for purposes of this subdivision if the city was a small city
9.22in the year in which the request for certification was made and applies for the rest of
9.23the duration of the district, regardless of whether the city qualifies or ceases to qualify
9.24as a small city.
9.25 (d) Notwithstanding the requirements of paragraph (a) and the finding requirements
9.26of section 469.174, subdivision 12, tax increments from an economic development district
9.27may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
9.28assistance in any form to developments consisting of buildings and ancillary facilities, if
9.29all the following conditions are met:
9.30 (1) the municipality finds that the project will create or retain jobs in this state,
9.31including construction jobs, and that construction of the project would not have
9.33assistance under the provisions of this paragraph;
9.34 (2) construction of the project begins no later than
9.35 (3) the request for certification of the district is made no later than
9.36 December 31, 2013; and
10.1 (4) for development of housing under this paragraph, the construction must begin
10.2before January 1, 2012.
10.3 The provisions of this paragraph may not be used to assist housing that is developed
10.4to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law,
10.5if construction of the project begins later than July 1, 2011.
10.6EFFECTIVE DATE.This section is effective the day following final enactment.
10.7 Sec. 16. Minnesota Statutes 2012, section 469.176, subdivision 4m, is amended to read:
10.8 Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
10.9the restrictions in any other subdivision of this section or any other law to the contrary,
10.10except the requirement to pay bonds to which the increments are pledged and the
10.11provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
10.12more of the following purposes:
10.13 (1) to provide improvements, loans, interest rate subsidies, or assistance in any
10.14form to private development consisting of the construction or substantial rehabilitation of
10.15buildings and ancillary facilities, if doing so will create or retain jobs in this state, including
10.16construction jobs, and that the construction commences before
10.172014, and would not have commenced before that date without the assistance; or
10.18 (2) to make an equity or similar investment in a corporation, partnership, or limited
10.19liability company that the authority determines is necessary to make construction of a
10.20development that meets the requirements of clause (1) financially feasible.
10.21 (b) The authority may undertake actions under the authority of this subdivision only
10.22after approval by the municipality of a written spending plan
10.24of each action to be undertaken. The municipality shall approve the spending plan only
10.25after a public hearing after published notice in a newspaper of general circulation in
10.26the municipality at least once, not less than ten days nor more than 30 days prior to the
10.27date of the hearing.
10.28 (c) The authority to spend tax increments under this subdivision expires
10.30 (d) For a development consisting of housing, the authority to spend tax increments
10.31under this subdivision expires December 31, 2011, and construction must commence
10.32before July 1, 2011, except the authority to spend tax increments on market rate housing
10.33developments under this subdivision expires July 31, 2012, and construction must
10.34commence before January 1, 2012.
11.1EFFECTIVE DATE.This section is effective the day following final enactment
11.2and applies to all tax increment financing districts, regardless of when the request for
11.3certification was made. The amendments to paragraph (b) apply to projects approved
11.4after June 30, 2013.
11.5 Sec. 17. Minnesota Statutes 2012, section 469.176, is amended by adding a subdivision
11.7 Subd. 4n. Soil deficiency district. Tax increments from a soil deficiency district
11.8may only be used to pay for the following costs for activities located within the mining
11.9reclamation project area:
11.10(1) acquisition of parcels on which the improvements described in clause (2) will
11.12(2) the cost of correcting the unusual terrain or soil deficiencies and the additional
11.13cost of installing public improvements directly caused by the deficiencies;
11.14(3) administrative expenses of the authority allocable to the district; and
11.15(4) costs described in subdivision 4j for the district, if these payments do not exceed
11.1625 percent of the tax increment from the district.
11.17EFFECTIVE DATE.This section is effective for districts for which the request for
11.18certification is made after April 30, 2013.
11.19 Sec. 18. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:
11.20 Subd. 3. Five-year rule. (a) Revenues derived from tax increments are considered
11.21to have been expended on an activity within the district under subdivision 2 only if one
11.22of the following occurs:
11.23(1) before or within five years after certification of the district, the revenues are
11.24actually paid to a third party with respect to the activity;
11.25(2) bonds, the proceeds of which must be used to finance the activity, are issued and
11.26sold to a third party before or within five years after certification, the revenues are spent
11.27to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
11.28reasonably expected to be spent before the end of the later of (i) the five-year period, or
11.29(ii) a reasonable temporary period within the meaning of the use of that term under section
11.30148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
11.31or replacement fund;
11.32(3) binding contracts with a third party are entered into for performance of the
11.33activity before or within five years after certification of the district and the revenues are
11.34spent under the contractual obligation;
12.1(4) costs with respect to the activity are paid before or within five years after
12.2certification of the district and the revenues are spent to reimburse a party for payment
12.3of the costs, including interest on unreimbursed costs; or
12.4(5) expenditures are made for housing purposes as permitted by subdivision 2,
12.5paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
12.6by subdivision 2, paragraph (e).
12.7(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
12.8the original refunded bonds meet the requirements of paragraph (a), clause (2).
12.9(c) For a redevelopment district or a renewal and renovation district certified after
12.10June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph
12.11(a) are extended to ten years after certification of the district. This extension is provided
12.12primarily to accommodate delays in development activities due to unanticipated economic
12.14(d) If the authority so elects in the tax increment financing plan for a redevelopment
12.15district, renewal and renovation district, soils condition district, or soil deficiency district
12.16located in a mining reclamation project area, the five-year periods described in paragraph
12.17(a) do not apply.
12.18EFFECTIVE DATE.This section is effective for districts for which the request for
12.19certification is made after April 30, 2013.
12.20 Sec. 19. Minnesota Statutes 2012, section 469.1763, subdivision 4, is amended to read:
12.21 Subd. 4. Use of revenues for decertification. (a) In each year beginning with the
12.22sixth year following certification of the district, if the applicable in-district percent of the
12.23revenues derived from tax increments paid by properties in the district exceeds the amount
12.24of expenditures that have been made for costs permitted under subdivision 3, an amount
12.25equal to the difference between the in-district percent of the revenues derived from tax
12.26increments paid by properties in the district and the amount of expenditures that have
12.27been made for costs permitted under subdivision 3 must be used and only used to pay or
12.28defease the following or be set aside to pay the following:
12.29(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
12.30(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
12.31(3) credit enhanced bonds to which the revenues derived from tax increments are
12.32pledged, but only to the extent that revenues of the district for which the credit enhanced
12.33bonds were issued are insufficient to pay the bonds and to the extent that the increments
12.34from the applicable pooling percent share for the district are insufficient; or
13.1(4) the amount provided by the tax increment financing plan to be paid under
13.2subdivision 2, paragraphs (b), (d), and (e).
13.3(b) The district must be decertified and the pledge of tax increment discharged
13.4when the outstanding bonds have been defeased and when sufficient money has been set
13.5aside to pay, based on the increment to be collected through the end of the calendar year,
13.6the following amounts:
13.7(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3)
13.9(2) the amount specified in the tax increment financing plan for activities qualifying
13.10under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
13.11qualifying under paragraph (a), clause (1); and
13.12(3) the additional expenditures permitted by the tax increment financing plan for
13.13housing activities under an election under subdivision 2, paragraph (d), that have not been
13.14funded with the proceeds of bonds qualifying under paragraph (a), clause (1).
13.15(c) If the authority so elects in the tax increment financing plan for a redevelopment
13.16district, renewal and renovation district, soils condition district, or soil deficiency district
13.17located in a mining reclamation project area, the provisions of this section do not apply.
13.18EFFECTIVE DATE.This section is effective for districts for which the request for
13.19certification is made after April 30, 2013.
13.20 Sec. 20. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
13.21chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
13.22section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
13.231988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
13.24chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
13.26 Subd. 2. For each of the years
13.27authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
13.28EFFECTIVE DATE.This section is effective the day following final enactment.
13.29 Sec. 21. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
13.30article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
13.31154, article 2, section 30, is amended to read:
13.32 Sec. 3. TAX; PAYMENT OF EXPENSES.
14.1 (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
14.2must not be levied at a rate that exceeds the amount authorized to be levied under that
14.3section. The proceeds of the tax may be used for all purposes of the hospital district,
14.4except as provided in paragraph (b).
14.5 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
14.8 (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
14.10 (2) attached and portable equipment for use in and for the ambulances; and
14.11 (3) parts and replacement parts for maintenance and repair of the ambulances.
14.12The money may not be used for administrative, operation, or salary expenses.
14.13 (c) The part of the levy referred to in paragraph (b) must be administered by the Cook
14.14Hospital and passed on directly to the Cook area ambulance service board and the city of
14.15Orr to be
14.17 Sec. 22. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
14.18Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First
14.19Special Session chapter 7, article 4, section 5, is amended to read:
14.20 Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
14.21subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
14.22administering the taxes and to pay for the following projects:
14.23 (1) transportation infrastructure improvements including regional highway and
14.25 (2) improvements to the civic center complex;
14.26 (3) a municipal water, sewer, and storm sewer project necessary to improve regional
14.27ground water quality; and
14.28 (4) construction of a regional recreation and sports center and other higher education
14.29facilities available for both community and student use.
14.30 (b) The total amount of capital expenditures or bonds for projects listed in paragraph
14.31(a) that may be paid from the revenues raised from the taxes authorized in this section
14.32may not exceed $111,500,000. The total amount of capital expenditures or bonds for the
14.33project in clause (4) that may be paid from the revenues raised from the taxes authorized
14.34in this section may not exceed $28,000,000.
15.1 (c) In addition to the projects authorized in paragraph (a) and not subject to the
15.2amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
15.3election under subdivision 5, paragraph (c), use the revenues received from the taxes and
15.4bonds authorized in this section to pay the costs of or bonds for the following purposes:
15.5 (1) $17,000,000 for capital expenditures and bonds for the following Olmsted
15.6County transportation infrastructure improvements:
15.7 (i) County State Aid Highway 34 reconstruction;
15.8 (ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
15.9 (iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
15.10 (iv) widening of County State Aid Highway 22 West Circle Drive; and
15.11 (v) 60th Avenue Northwest corridor preservation;
15.12 (2) $30,000,000 for city transportation projects including:
15.13 (i) Trunk Highway 52 and 65th Street interchange;
15.14 (ii) NW transportation corridor acquisition;
15.15 (iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
15.16 (iv) Trunk Highway 14 and Trunk Highway 63 intersection;
15.17 (v) Southeast transportation corridor acquisition;
15.18 (vi) Rochester International Airport expansion; and
15.19 (vii) a transit operations center bus facility;
15.20 (3) $14,000,000 for the University of Minnesota Rochester academic and
15.22 (4) $6,500,000 for the Rochester Community and Technical College/Winona State
15.23University career technical education and science and math facilities;
15.24 (5) $6,000,000 for the Rochester Community and Technical College regional
15.25recreation facilities at University Center Rochester;
15.26 (6) $20,000,000 for the Destination Medical Community Initiative;
15.27 (7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
15.28 (8) $20,000,000 for a regional recreation/senior center;
15.29 (9) $10,000,000 for an economic development fund; and
15.30 (10) $8,000,000 for downtown infrastructure.
15.31 (d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
15.32and 2 may be used to fund transportation improvements related to a railroad bypass that
15.33would divert traffic from the city of Rochester.
15.34 (e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph
15.35(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
15.36Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
16.1Zumbrota, Spring Valley, West Concord,
16.2population of at least 1,000 that has a city boundary within 25 miles of the geographic
16.3center of Rochester and is closer to Rochester than to any other city located wholly
16.4outside of the seven-county metropolitan area with a population of 20,000 or more,
16.5 for economic development projects that these communities would fund through their
16.6economic development authority or housing and redevelopment authority.
16.7EFFECTIVE DATE.This section is effective the day following final enactment.
16.8 Sec. 23. Laws 1999, chapter 243, article 6, section 11, is amended to read:
16.9 Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
16.11Carlton county board of commissioners may annually levy in and for the unorganized
16.12township of Sawyer an amount
16.16EFFECTIVE DATE; LOCAL APPROVAL.This section applies to taxes
16.17payable in 2014 and thereafter, and is effective the day after the Carlton county board
16.18of commissioners and its chief clerical officer timely complete their compliance with
16.19Minnesota Statutes, section 645.021, subdivisions 2 and 3.
16.20 Sec. 24. Laws 2003, chapter 127, article 12, section 28, is amended to read:
16.21 Sec. 28. NURSING HOME BONDS AUTHORIZED.
16.22 (a) Itasca County may issue bonds under Minnesota Statutes, sections 376.55 and
16.23376.56 , to finance the construction of a 35-bed nursing home facility to replace an existing
16.2435-bed private facility located in the county. The bonds issued under this section
16.25 may be payable solely from revenues
16.26 (b) Before issuing general obligation bonds under this section, the county must
16.27publish a notice of its intention to issue the bonds and the date and time of a hearing to
16.28obtain public comment on the matter. The notice must be published on the official Web
16.29site of the county or in a newspaper of general circulation in the county. The notice must
16.30be published at least 14 but not more than 28 days before the date of the hearing. The
16.31county may issue the bonds only upon obtaining the approval of a majority of the voters
16.32voting on the question of issuing the obligations, if a petition requesting a vote on the
17.1issuance is signed by voters equal to five percent of the votes cast in the county in the last
17.2general election and is filed with the county auditor within 30 days after the public hearing.
17.3EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
17.4the governing body of Itasca County and its chief clerical officer timely complete their
17.5compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
17.6 Sec. 25. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
17.72, is amended to read:
17.8 Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
17.9subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
17.10administering the tax and to pay all or part of the capital or administrative costs of the
17.11development, acquisition, construction, improvement, and securing and paying debt
17.12service on bonds or other obligations issued to finance the following regional projects as
17.13approved by the voters and specifically detailed in the referendum authorizing the tax or
17.14extending the tax:
17.15 (1) St. Cloud Regional Airport;
17.16 (2) regional transportation improvements;
17.17 (3) regional community and aquatics centers and facilities;
17.18 (4) regional public libraries; and
17.19 (5) acquisition and improvement of regional park land and open space.
17.20 (b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
17.21Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
17.22collecting and administering the tax and to pay all or part of the capital or administrative
17.23costs of the development, acquisition, construction, improvement, and securing and paying
17.24debt service on bonds or other obligations issued to fund the projects specifically approved
17.25by the voters at the referendum authorizing the tax or extending the tax. The portion of
17.26revenues from the city going to fund the regional airport or regional library located in the
17.27city of St. Cloud will be as required under the applicable joint powers agreement.
17.28 (c) The use of revenues received from the taxes authorized in subdivision 1 for
17.29projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
17.30each project under the enabling referendum.
17.31EFFECTIVE DATE.This section is effective for the city that approves them the
17.32day after compliance by the governing body of each city with Minnesota Statutes, section
17.33645.021, subdivision 3.
18.1 Sec. 26. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
18.24, is amended to read:
18.3 Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud,
18.4St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the
18.5city council determines that sufficient funds have been collected from the tax to retire or
18.6redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no
18.7later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99,
18.8subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under
18.9subdivision 1 through December 31, 2038, if approved under the referendum authorizing
18.10the tax under subdivision 1 or if approved by voters of the city at a general election held
18.11no later than November 6, 2017.
18.12EFFECTIVE DATE.This section is effective for the city that approves them the
18.13day after compliance by the governing body of each city with Minnesota Statutes, section
18.14645.021, subdivision 3.
18.15 Sec. 27. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
18.16chapter 88, article 5, section 11, is amended to read:
18.17 Sec. 34. CITY OF OAKDALE;
18.32 (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056,
18.333102921320057, 3102921320061, and 3102921330004 are deemed to meet the
18.34requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
19.1notwithstanding any contrary provisions of that paragraph, if the following conditions
19.3 (1) a building located on any part of each of the specified parcels was demolished
19.4after the authority adopted a resolution under Minnesota Statutes, section 469.174,
19.5subdivision 10, paragraph (d), clause (3);
19.6 (2) the building was removed either by the authority, by a developer under a
19.7development agreement with the authority, or by the owner of the property without
19.8entering into a development agreement with the authority; and
19.9 (3) the request for certification of the parcel as part of a district is filed with the
19.10county auditor by December 31, 2017.
19.11 (b) The provisions of this section allow an election by the authority for the parcels
19.12deemed occupied under paragraph (a), notwithstanding the provisions of Minnesota
19.13Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, subdivision 1,
19.15EFFECTIVE DATE.This section is effective upon compliance by the governing
19.16body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
19.18 Sec. 28. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
19.20EFFECTIVE DATE.This section is effective for assessment
19.22EFFECTIVE DATE.This section is effective for assessment year 2012 and
19.24 Sec. 29. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX
19.25INCREMENT FINANCING DISTRICT.
19.26 Subdivision 1. Authorization. Notwithstanding the provisions of any other law,
19.27the Dakota County Community Development Agency may establish a redevelopment tax
19.28increment financing district comprised of the properties that (1) were included in the
19.29CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not
19.30decertified before July 1, 2012. The district created under this section terminates no later
19.31than December 31, 2027.
20.1 Subd. 2. Special rules. The requirements for qualifying a redevelopment district
20.2under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
20.3within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c),
20.4clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity
20.5of the district is $93,239.
20.6 Subd. 3. Authorized expenditures. Tax increment from the district may be
20.7expended to pay for any eligible activities authorized by Minnesota Statutes, chapter
20.8469, within the redevelopment area that includes the district. All such expenditures are
20.9deemed to be activities within the district under Minnesota Statutes, section 469.1763,
20.10subdivisions 2, 3, and 4.
20.11 Subd. 4. Adjusted net tax capacity. The captured tax capacity of the district must
20.12be included in the adjusted net tax capacity of the city, county, and school district for the
20.13purposes of determining local government aid, education aid, and county program aid.
20.14The county auditor shall report to the commissioner of revenue the amount of the captured
20.15tax capacity for the district at the time the assessment abstracts are filed.
20.16EFFECTIVE DATE.This section is effective upon compliance by the governing
20.17body of the Dakota County Community Development Agency with the requirements of
20.18Minnesota Statutes, section 645.021, subdivision 3.
20.19 Sec. 30. ST. CLOUD; TAX INCREMENT FINANCING.
20.20 The request for certification of Tax Increment District No. 2, commonly referred to
20.21as the Norwest District, in the city of St. Cloud is deemed to have been made on or after
20.22August 1, 1979, and before July 1, 1982. Revenues derived from tax increment for that
20.23district must be treated for purposes of any law as revenue of a tax increment financing
20.24district for which the request for certification was made during that time period.
20.25EFFECTIVE DATE.This section is effective upon approval by the governing
20.26body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021,
20.28Renumber the sections in sequence
20.29Amend the title accordingly
21.1And when so amended that the bill be recommended to pass and be referred to
21.2the full committee.
21.5January 30, 2013 .....
21.6(Date of Division recommendation)