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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS * Office of State Auditor, TIF report (December 2008). The percentages were calculated including districts not listed in the table, i,e,, pre -1979 districts (58) and those adopted under special laws (4). The information on hazardous substance sub - districts is from the Department of Revenue for taxes payable in 2008. Certification of New District TIF or Modifications to Existing Plan Once the 30 day period to comment and after the TIF Authority has held the statutory public hearing and received approval of the TIF District, the Request for Certification of Value (net tax capacity and market value) and Local Tax Rate is sent to the County Auditor. If the time period is such that the request is after June 30, the County Auditor cannot complete the certification until after such time that the local tax rate is established, which would be sometime after the final rates for the next payable year are established. This will cause a delay in the certification of values and rates, however, the district will not become an active district by which increment will be collected until the payable year following the year from which rates and values are certified. When a district is certified, the TIF Authority will ask the County Auditor to complete two forms — samples of both are included below. One of them is the Certification Request Supplement (form 13.01- 1); the other is the County Auditor's Certification as to Original Net Tax Capacity and Original Local Tax Rate for Properties Located in the TIF District (form 13.01-2). The first form, which is sent to the County along with the final TIF plan, should be completed and sent back to the TIF Authority. The second form is one that is completed in part by the TIF Authority and in part by the County Auditor. A copy of the form is sent back to the TIF Authority; a copy is retained by the County; and the original is sent to the Minnesota Dept of Revenue. Modification to an Existing TIF Pian Modifications to an original TIF plan can be made only after notice and discussion, as required in the original certification of the district, a public hearing and sound findings for the modification. The findings that are required are: 1) Reductions or Enlargements: Reductions are allowed under circumstances where the current net tax capacity of the parcels being eliminated from the district equals or exceeds the net tax capacity of those parcels in the district's original net tax capacity or the original net tax capacity will only be reduced by no more than the current net tax capacity of the parcels eliminated from the district. A district cannot be enlarged after five years following the date of certification of the original net tax capacity by the County Auditor; or 2) There is an increase of bonded indebtedness to be incurred; or 3) The plan is to change in order to capitalize interest on the debt (not included in the original plan) or to increase or decrease the amount of interest on the debt to be capitalized; or 4) There is an increase in the portion of the captured net tax capacity to be retained by the Authority; or 5) There is an increase in the estimated cost of the project, including Administrative expenses, that is to be funded by the increment of the district; or 6) There is additional property that is going to be acquired by the TIF Authority A TIF Authority cannot modify an original TIF plan in the attempt to change the type of the district to another type. In this case, a new plan and district will need to be adopted, TAX INCREMENT FINANCING 13.01 .10 REVISION DATE: NOVEMBER, 2010