The bill amends Minnesota Statutes 2024, section 469.176, subdivision 2, to modify the requirements for the return of excess tax increments by authorities managing tax increment financing districts. The language changes include replacing "shall" with "must" to emphasize the obligation of the authority to determine the existence of excess increments based on the tax increment financing plan in effect on December 31 of the year being reviewed. If excess increments are identified, the authority is required to return these increments to the county auditor within nine months and, if there are no outstanding qualifying pay-as-you-go contracts, to decertify the district.

Additionally, the bill introduces provisions for deferring the decertification requirement if a modification to the tax increment financing plan is approved that increases the total costs authorized to be paid with increments. The deferral lasts until certain conditions are met, including the absence of further approved modifications and outstanding contracts. The effective date of these changes applies to all districts for excess increment determinations starting in calendar year 2026 and thereafter.

Statutes affected:
Introduction: 469.176