Tax Increment financing (TIF) is a financing tool meant to support local economic development, redevelopment, and housing development that would not otherwise occur without assistance. As its name suggests, TIF uses the incremental property taxes, or “tax increments,” generated by the increased taxable value of a new development to help finance qualifying costs. TIF is not a tax reduction; taxes are paid on the full taxable value. The original taxable value continues to be part of the tax base that supports the tax levies of the city, county, school district, and other taxing jurisdictions. The new, additional value from development activity is “captured” from the tax base for the duration of the TIF district. After the TIF district is terminated, or “decertified,” the captured value becomes part of the tax base.
For more information, see our annual TIF Legislative Reports and our Training Opportunities page.
TIF authorities must start filing annual TIF reports for the year in which the district was certified by the county auditor. Reporting for a year becomes available in May of the following year and is due by August 1st of that year. The authority must continue to report until a report demonstrates that the district is both decertified AND all tax increment revenue has been expended or returned to the county auditor.
For more information, see our TIF Topic entitled When Does an Authority Need to File Annual TIF Reports?
At this time, district-level reporting is not available online. Reporting is summarized annually in our TIF Legislative Reports. Copies of TIF plans and/or specific annual reports for individual districts can be requested from the TIF authorities or from the OSA’s TIF Division at TIF@osa.state.mn.us.
Yes. A TIF authority must publish notice and hold a public hearing before approving a proposed TIF Plan. After approval, there is less formal opportunity to affect authorities’ decisions regarding TIF districts, but certain modifications to the TIF plan still require public notice and hearing.
For more information, see Minnesota Statutes, section 469.175, subdivisions 3 and 4.
TIF authorities (referred to in the TIF Act as “authorities”) are municipalities or other governmental entities authorized by various development acts in Minnesota statutes to create TIF districts. TIF authorities may include cities, housing and redevelopment authorities (HRAs), port authorities, economic development authorities (EDAs), and rural development financing authorities. While most TIF authorities are cities or their HRAs, port authorities, or EDAs, a number of county HRAs (or similar entities) and one large metropolitan town are also active TIF authorities.
For more information, see Minnesota Statutes, section 469.174, subdivision 2, our annual TIF Legislative Reports and our Training Opportunities page.