06-26-1995 Council Packet - Laserfiche WebLink

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Also provides that the Met Council is responsible for maintaining a detailed map of transit zones and providing the map to all assessors in the metro area. The initia l maps will be produced by Jan. 1, 1996. Any class 3 A commcrcial/industrial structure, constructed under an initial building permit issued after Jan. 2, 1996, located in a transit zone and within a school district, and not primarily used for retail or transient lodging purposes, shall have a four percent class rate on its market value in excess of $100,000. (The current class rate on that property is 4.6%.) The four percent rate shall also apply to any new improvements added under an inirial building permit issued after Jan. 2,1996, to an existing qualified commercialAndustrial structure located in a transit zone. These changes are effective for the 1997 assessment, taxes payable in 1998. Property Tax Refund as Deduction on Tax Statement (Article 4) The regular circuit breaker and special targeting property tax refunds for homeowners will be deducted on the taxation notices. Money will be paid by the state directly to county treasurers and be a permanent open appropriation. 1998 is the first year of the new payment method, with 1997 as a transition year. (ni) TAX INCREMENT FINANCING (TIF)______________ (HJ^. 1864, Laws 1995, Chapter 264) The Omnibus Tax bill includes an economic development article (Article 5) that contains several TIF amendments. The amendments include: LGA & HACA Penalty Option A major issue surrounding the legislative TIF discussion has been the issue of local accountability. The imposition of the LGA/HACA penalty has been viewed as a means to illustrate local and state financial impacts of TIF. The Legislature has been reluctant to grant exemptions from LGA/HACA without imposing such measures as a local share, a housing development requirement or county board approval of di' ricL The 1995 Legislature adopted a provision that permits a city to choose to pay a local share for a portion of the district costs. The details of the local share are the following: • The amount of the local contribution must be made out of unrestricted money (general fund, tax levy, or a federal or a state grant of authority or municipality); • The local contribution may not be made, directly or indirectly, with TIF or developer payments; • The local contribution must be used to pay project costs and cannot be used for: (1) general government purposes; (2) Improvements or costs that the municipality planned to incur. 1995 Policy Narrative