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Report examines tax increment financing in Minnesota

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News Alexandria,Minnesota 56308 http://www.echopress.com/sites/all/themes/echopress_theme/images/social_default_image.png
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Report examines tax increment financing in Minnesota
Alexandria Minnesota 225 7th Ave E
P.O. Box 549
56308

State Auditor Rebecca Otto has released the Tax

Increment Financing Legislative Report.

This 17th annual legislative report was compiled from information received from the 426 development authorities currently authorized to exercise tax

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increment financing (TIF) powers in Minnesota. The Report summarizes

the data received from the 1,810 unaudited TIF reports for the calendar

year ended December 31, 2011, and provides a summary of the violations

cited in the limited-scope reviews concluded by the Office of the State

Auditor (OSA) in 2012. Tax increment financing (TIF) is a financing tool

established by the Legislature to support local economic development,

redevelopment, and housing development.

Highlights from the report include:

Current Trends:

-- In 2011, development authorities returned $5,070,233 in tax

increment revenue to county auditors for redistribution to the city,

county, and school district as property taxes.

-- The total number of TIF districts certified in 2011 increased by 72

percent compared to 2010. The number of economic development districts

certified increased from 12 to 33.

-- In 2011, 35 percent of TIF districts were located in the Metro Area;

65 percent were located in Greater Minnesota.

-- Although most districts are located in Greater Minnesota,

approximately $210 million of the $252 million of tax increment, or 83

percent, was generated in the Metro Area.

Long-Term Trends:

-- In 2011, certifications decreased by 27 percent as compared to 2007.

-- Tax increment revenues for 2011 stabilized after two years of

decline.

-- Between 1996 and 2004 the number of districts increased. From 2004

through 2011 there has been a decline. One cause of this decline is

that older districts are decertifying.

To view the complete report, which includes an Executive Summary,

tables, and graphs, go to:

http://www.auditor.state.mn.us/default.aspx?page=20130205.000.

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