Bill Would Extend the Use of Pooled Tax Increment Financing Funds
A bipartisan bill aims to extend cities’ ability to use excess TIF funds to support stalled development projects.
On April 10, the House Taxes Committee heard HF 2006, sponsored by Rep. Jim Joy (R-Hawley). The bipartisan legislation would extend temporary authority, first granted in 2021, allowing cities to use excess tax increment financing (TIF) funds to support development stalled by the economic effects of the pandemic.
Under current law, cities must spend these funds by the end of this calendar year. HF 2006 would extend that deadline by two years and require local governments to adopt a new or updated spending plan before using the authority.
In a letter to the committee, the League of Minnesota Cities expressed support for the bill, stating that many cities continue to face challenges due high construction and financing costs. These barriers have made it difficult to advance development projects, even years after the initial pandemic slowdown.
The bill received strong support from many local government organizations and was laid over for possible inclusion in a future omnibus tax bill.
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