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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL. PROGRAMS <br />value equal to the greater of: 1) the current net tax capacity of the parcel or 2) the value of the <br />parcel for the year that the building was removed (using the current class rates). <br />8. Qualified Disaster Areas (M.S. 469.177, subd. 1(g)) <br />For qualified disaster areas in redevelopment districts, the base value for any parcel with a building <br />with substantial damage as a result of the disaster is the existing base value for land only. <br />9. Presidential Disaster Area (M.S, 469.177, subd. lc) <br />If the parcel is located in a federal disaster area and the TIF authority requests the change, the base <br />value is reduced by the value of the damage to the property (but not less than zero) as determined <br />by the assessor. <br />In each of the subsequent years following the certification of the original net tax capacity, the County <br />Auditor must certify the amount by which the original net tax capacity has increased or decreased as a <br />result of: <br />1. a change in tax exempt status of property within the district and any subdistrict <br />1 a reduction or enlargement of the district; or <br />3. changes in prior planned improvements <br />Creation of a Hazardous Substance Subdistrict (HSS) <br />A TIF Authority can establish within a TIF District a Hazardous Substance Subdistrict. The geographic <br />area of the subdistrict is made up any parcels the municipality has designated for inclusion in the district <br />that are hazardous substance sites and any additional sites that are contiguous to the hazardous sites. <br />The creation of the subdistrict is contingent on two supporting facts: <br />1) The development or re -development of the site would not occur through private and tax <br />increment funding, therefore the hazardous substance subdistrict is deemed necessary <br />2) The subdistrict is not larger than, and the period of time that tax increments are expected to be <br />collected is not longer than, that which is necessary to provide for the additional costs due to the <br />existence of a hazardous substance <br />Local Tax Rate Certification <br />When a TIF district is created, the county auditor certifies an "original local tax rate." The original tax <br />rate is total property tax rate that applies in the district, i.e,, the tax rates imposed by all of the local <br />governments that levy taxes (the city/town, county, school district, and special taxing districts) by UTA. <br />A TIF District can overlap between UTA's, so the County Auditor may need to certify more than one set <br />of rates. If a TIF district is expanded, the local tax rates that are associated with the expansion at the <br />time of the County receives the request for certification of the expansion or modification also need to be <br />certified and applied toward those parcels in the expansion area. <br />Differences between Increment and the Full Taxes <br />(Excess Taxes and Fiscal Disparities) <br />The increment does not always equal the full taxes paid by the captured value. The original tax rate <br />limits increment to the taxes generated by the tax rates in effect when the district was created. Thus, if <br />the local governments increase their tax rates (e.g., to increase revenues or because of changes in the tax <br />TAX INCREMENT FINANCING 13.01 •19 <br />REVISION DATE; NOVEMBER, 2010 <br />