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HF4490 (Legislative Session 94 (2025-2026))

Mountain Lake tax increment financing special rules authorized.

Related bill: SF4644

AI Generated Summary

Purpose

This bill creates special rules for a specific Tax Increment Financing (TIF) district in Minnesota. It targets Mountain Lake and its financing authority, adjusting how long activities must be started and how long tax increment funds can be used after the district’s initial period.

Main Provisions

  • Applies to: City of Mountain Lake Tax Increment Financing District No. 18 (administered by the city or its economic development authority).
  • Extends activity start deadline: The usual requirement that authorized TIF activities must be undertaken within five years from when the district is certified is extended. The extension pushes the deadline to April 1, 2029 for District No. 18.
  • Extends use of increment after the five-year period: The rule governing how long tax increment funds can be used after the five-year period is also extended for District No. 18. Specifically, the allowed use timeframe is extended to the 11th through the 14th year.

Changes to Existing Law

  • This is a targeted amendment to Laws 2021 First Special Session chapter 14 article 9 section 9, modifying the five-year rule and the post-five-year use of increment for Mountain Lake’s TIF District No. 18.
  • It references the Minnesota Statutes at 469.1763, subdivisions 3 and 4, and provides district-specific extensions.

Geographic/Entity Focus

  • City of Mountain Lake
  • TIF District No. 18
  • Mountain Lake’s economic development authority (if applicable)

Potential Impacts

  • Allows more time to complete projects funded by District No. 18.
  • Provides extended flexibility in using generated tax increment funds beyond the initial five-year period.
  • Creates a district-specific exception to the standard TIF timelines, potentially affecting budgeting and project timelines for the city and stakeholders.

Implementation Notes

  • The changes are framed as amendments to a prior law from 2021 and apply specifically to Mountain Lake’s TIF district, not statewide.

Relevant Terms - Tax Increment Financing (TIF) - TIF District No. 18 - City of Mountain Lake - Economic Development Authority - five-year period (subdivision 3) - certification - April 1, 2029 - increment - use of increment (subdivision 4) - Minnesota Statutes section 469.1763 - subdivision 3 - subdivision 4

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 18, 2026HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Extends the five-year period for activities required under Minnesota Statutes 469.1763, subdivision 3, for Tax Increment Financing District No. 18 in Mountain Lake to April 1, 2029.",
      "modified": [
        "Extends the deadline for commencing activities from the previous five-year period to April 1, 2029 for TIF District No. 18."
      ]
    },
    "citation": "469.1763",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Extends the use of increment after the expiration of the five-year period under Minnesota Statutes 469.1763, subdivision 3 to the 11th and 14th years for Tax Increment Financing District No. 18.",
      "modified": [
        "Extends the period in which tax increment can be used after the five-year requirement."
      ]
    },
    "citation": "469.1763",
    "subdivision": "subdivision 4"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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