Agenda - Council - 10/13/1981 - Laserfiche WebLink

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SubcL ~-. Cnptureda,.~e~'~,.'~l v-_.lue. ,'Fn, e county auditor shall certify the amount of the captured a~e~ed value to the authority e~eh year, tovsether with the proportion that the captured a.~essed value b~rs to the total ~,._~e~ed value of the real property within the tax increment financing distriet for that.year. (a) An ~uthority may ehoose to retain any p~t or all of the captured assessed value for purposes of tax increment fintmcing according to cna of the two following options: (I) ff the plan provides that eX1. the captured a.~e~ect value is necessary to ,qnance ac other;vise make p~missible expenditures under section 273.75, subdivision 4 $,?$ the authoritl~' may retain the full captured a~e~sed va1~e. (2) If the plan provides that only a portian of the c~ptured a_~esaed vMue ~ ne~ez~sary to finance or.otherwise m,~ke p~-mi~iblc expenditures under 5action 273.75, subdivision 4 $,76 only that portion shall be set asidg and the remainder shall be distributed among the affected taxing districts by the county auditor.77 (b) The portion of captured a~e~ed value that an autkvrity intends to use fry purposes of tax increment financing must be cle~ly stat:~<l in the tax i!2cre,,'nenl; fip. an¢ing plmn. St.~.d. 3. 'i'ax ir~.,'e~mcm. Ib ra!a.'.ic~_i:p to chapter 473F,78 (a) Unless the 7$~nis internal reference was ir~corr, ect c~t~ e to a I9~9 last-mir,~te deletion of cna of the Section 2~.75 ~di~c~. 273.75, ~ 4. 76See F~ote 77The opti~ of capt~i~g ~iy a p~ti~ of d~ict ~wt~ was:.~O~ ~ro~ded ~der pH~ law e~cept in the Development Dis~ict Act, Chapte~ 472A. 78F~ the me~opolit~ ~ea, th~ s~di~si~ was ~ a:temp: to m~ke tax increment fin~cing ~d f~cal disp~ities more compatible. ~i~r to the Act, tlRA p~[~ were e~empt f~m fiscal d~p~ities con~ti~s. D~3elopment distich, ~ the other h~d, not oniy were s~ject to of c~pt~d a~e~ed value without raged to th~ overall m~icipd '~con~ibuti~ ra~o," describ~ b~low. This s~di~cn eliminated both the HRA e~emption the 40% ~ea~ent of development d~ic~. It was intended that ~e~ m~ici- poli~ m~e a f~ con~'i~fion of commercial-ink--id a~e~ed 'valuati~ since 1971 to the regi~al p~t, ~cluding cap~ a~e~ Ya[u~ commercidzin~s~al ~owth ~ ta~ increment dis~icts. ~ am~t ~ df~ded ~ ~e total commercial-ink.iai a~e~ed vatuati~ in m~icipdi~, e~c~ing the c~ a~ed value commercial-ink.al ~owth in tax inc~men~ dS~ic~, which res~ in a percentage ~ 'c~n~ti~ ratio." Th~ p~centage ~ then appli~ to each p~cel of commercid-in~s~al a~e~ed ~'aluati~ to determine ~,hat p~ti~ of ~ch valuati~ is to be ~ected to the me~polit~ fiscal disp~ities mill rate. ~is is how fiscal disp~iCes wo~d work in a m~icipdi~:without either the HRA exempti~ ~ the 40% c~i~. The calcuIati~ cantoned in this s~di~ were intended to dad with the ques~on of ~'hether commerCid-in~u~ie! prop~ty within a t~ inc~ment d~ict m~es a con~!baU~ ~ wheth~ the con~i~C~n which 3ilch properD' wo~d n~mally m~e will be ~ad ~ added to commercid.in~ial p~perties in the m~ipali~ ~tside the dis~ict. Af.ter rev/awing th/s langucge, the commissfcaer of revenue, by. memo~c, ndztm dated November 16, I979, determined that a stun'ct interpretation ~hereof "leads to mill rate determinations, tax exter~ions c~d tax distrilT.~tfc~s that ~e inconsistent with established propert7 tax procechres." Accor~ngly, sub.vtitu:e Ic~gucge was pre- p/red fo' the 1980 session. Civen the complex nature of the subject, prior to enactment of the amendment, the following correspondence was exchanged with the Depcrtment of Revenue: