HF3140

Purpose of the Bill

The purpose of this bill is to provide special temporary rules for tax increment financing (TIF) specific to the city of Marshall, Minnesota. The bill allows for specific extensions and uses of tax increments previously collected from designated areas within the city.

Main Provisions

• Special Authorization: The bill permits the city of Marshall to utilize, loan, or invest tax increments collected from TIF Districts No. 11, 17, and 21 until December 31, 2027.
• Spending Plan Requirement: The city is required to follow a written spending plan, as mandated by existing Minnesota statutes, to guide the use of these increments.
• Return of Funds: Any increments not utilized by the end of 2027, along with any related investment returns or loan repayments, must be returned to the respective TIF district.

Significant Changes to Existing Law

• The bill temporarily overrides a limitation in Minnesota Statutes section 469.176, allowing the city of Marshall extended time to use tax increments beyond what is generally permitted.

Relevant Terms

tax increment financing, TIF, city of Marshall, spending plan, investment, loan, tax increment districts, Minnesota statutes