The 2017 Tax Increment Financing (TIF) Legislative Report was released by Minnesota State Auditor Rebecca Otto Wednesday, Jan. 2. The report summarizes information as reported by 1,651 districts for the calendar year ending Dec. 31, 2017. Also included in the report is a summary of any violations which may have been cited in 2018.
TIF is a financing tool established by the Legislature to support local economic development, redevelopment, and house development. There are currently 415 development authorities authorized to exercise TIF powers in Minnesota.
Highlights for 2017 include:
• 88 new TIF districts were certified, a 21 percent increase over 2016
• 76 TIF districts were decertified, a 34 percent decrease from 2016.
• Of the 415 active development authorities, 316 were located in greater Minnesota and 99 were located in the seven-county (Metro) area
• Approximately $203 million of tax increment revenue was generated statewide, approximately $171 million, or 84 percent, was generated in the metro area
• $10,800,926 was returned by development authorities in tax increment revenue to county auditors for redistribution as property taxes to the cities, counties, and school districts
• The City of Ivanhoe used $4,362 more than the allowable percentage of tax increments for administrative expenses ($4,362 was returned to the Lincoln County Auditor August 2018)
• The City of Perham used $21,672 more than allowable on out-district (pooling) expenses (The City agrees with the interpretation, however, believes the calculation to be incomplete. State Auditor ruled that it is correct and as of the end of 2017 the matter was forwarded to the Otter Tail County Attorney)
The complete report, which includes an Executive Summary, tables, and graphs, is viewable at http://www.auditor.state.mn.us/default.aspx?page=20181231.008.