HF2839 (Legislative Session 94 (2025-2026))
Minneapolis; special tax increment financing rules authorized.
Related bill: SF2803
AI Generated Summary
Purpose of the Bill
This bill is designed to provide special tax increment financing (TIF) rules for the city of Minneapolis, specifically targeting parts of the downtown area that require redevelopment.
Main Provisions
Creation of TIF Districts: The Housing and Redevelopment Authority of Minneapolis is allowed to establish up to three redevelopment TIF districts within the defined downtown area.
Special Rules for Tax Increment Financing:
- The districts can bypass certain state requirements if at least 50% of the buildings need major renovation or clearance due to issues like poor street layouts, overcrowding, or significant building vacancy.
- Buildings cleared may be used for open spaces or public parks.
- Specific exemptions are made from Minnesota statutes limiting how the tax increment can be used, particularly those that would otherwise restrict expenditure for infrastructure or bonds related to urban development.
Certification and Expiry:
- The value of the land for tax purposes is to be set by the county auditor when these districts are established.
- The authority to request the certification of these districts ends on June 30, 2030, unless at least one district is certified by that date, and all authority expires by June 30, 2034.
Significant Changes to Existing Law
- This bill allows Minneapolis to establish noncontiguous TIF districts, which is a departure from the usual requirement that districts be contiguous.
- It provides exemptions from several Minnesota statutes that govern TIF, offering the city more flexibility in using TIF for urban redevelopment projects.
Relevant Terms
- Tax Increment Financing (TIF)
- Redevelopment
- Downtown Minneapolis
- Building renovation and clearance
- Tax increment usage, bonds, and exemptions
- Certification expiration
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The districts are deemed to meet all the requirements of Minnesota Statutes section 469.174, subdivision 10, related to tax increment financing.",
"modified": []
},
"citation": "469.174",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Parcels in the district may be noncontiguous, notwithstanding Minnesota Statutes section 469.176, subdivision 4l.",
"modified": []
},
"citation": "469.176",
"subdivision": "subdivision 4l"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The requirements, limitations, or restrictions under Minnesota Statutes section 469.1763, subdivisions 2 and 3, do not apply to any expenditure for or payment of bonds issued to finance activities.",
"modified": []
},
"citation": "469.1763",
"subdivision": "subdivisions 2 and 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Certain requirements under Minnesota Statutes section 469.175, subdivision 3, are not applicable.",
"modified": []
},
"citation": "469.175",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Rules under Minnesota Statutes section 469.176, subdivision 6, are not applicable.",
"modified": []
},
"citation": "469.176",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Certain limitations under Minnesota Statutes section 469.1763, subdivision 4, are not enforced.",
"modified": []
},
"citation": "469.1763",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Procedures for certifying the original tax capacity under Minnesota Statutes section 469.177, subdivision 1, are outlined.",
"modified": []
},
"citation": "469.177",
"subdivision": "subdivision 1"
}
]