HF2053

Purpose of the Bill

The bill aims to modify tax increment financing rules specifically for the city of Moorhead, Minnesota.

Main Provisions

• Extension of the Five-Year Rule: Typically, the use of tax increment financing (TIF) funds in Minnesota must comply with certain timelines. For Moorhead's Tax Increment Financing District No. 31, this bill extends the usual five-year period to ten years.
• Extension of Increment Use Period: After the initial period, TIF funds can traditionally be used for a set number of additional years. This bill extends that subsequent period to 11 years.

Significant Changes

• The bill changes existing tax increment financing statutes by allowing longer periods for the utilization of TIF funds in the specified district within Moorhead. Normally, these timeframes are shorter, thus providing more flexibility and time for the city to use these financial resources for development purposes.

Relevant Terms

• Tax increment financing (TIF)
• City of Moorhead
• Five-year rule
• Extension