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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS 4. Duration Extension to Offset Deficits An authority may extend the duration limit of a TIF district if the increments from the district are insufficient to pay qualifying obligations, because of changes in the class rates and elimination of the state -determined general education property tax levy of 2001. However, the authority must first exercise its options under Minnesota Statutes, sections 469,1763 and 469.1792 before this provision applies. Delinquent Taxes on Decertified TIF Parcels A County Auditor may distribute property tax revenue from a parcel formerly in a TIF district to the TIF authority as tax increment if the revenue is collected after the TIF district was decertified only when the following three conditions exist: 1) The parcel on which the property taxes were paid must have been part of the TIF district at the time it was decertified. NOTE If the delinquent property taxes collected after a TIF district was decertified do not meet these requirements, the County Auditor should distribute the funds as ordinary property tax revenue, not excess tax increment, 2) The property taxes must have been delinquent, not merely past due, at the time the TIF district was decertified. 3) Third, the failure to pay the delinquent property taxes when they were due must have either caused the TIF authority to be unable to pay obligations or must have forced it to use non -TIF funds to pay the obligations. Decertification of TIF Districts The County Auditor is bound by statute to decertify a TIF District, even if the authority has not sent a notification or resolution formally decertifying the district. This is one of the reasons why it is imperative for County Auditors to closely monitor the dates referenced earlier in this document. When the County Auditor or TIF authority decertifies a TIF District, the district no longer contains any parcels and the distribution of tax increment stops as of the date of the decertification, except that under the certain limited circumstances for delinquent taxes on decertified parcels that have been met. The TIF Authority must return any excess increment after the decertification and the County Auditor must settle the returned increment as excess TIF. The Office of the State Auditor has a form that must be completed upon the decertification of any TIF district, The form, Confirmation of Decertified TIF District, (sample form 13.01-3) requires information and certifications from both the TIF Authority and the County Auditor. It generally accompanies the resolution decertifying the TIF district by the TIF Authority, if they have formally done so, or may be sent to the County Auditor independent of the resolution. After completion, the County Auditor should retain a copy for their files, send a copy to the TIF Authority, and send the original to the State Auditor's Office. A copy of the form is as follows: TAX INCREMENT FINANCING 13.01 -30 REVISION DATE: NOVEMBER, 2010