COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 4654-02

Bill No.: SB 1304

Subject: Tax Increment Financing:

Type: Original

Date: March 9, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Economic Development assume no fiscal impact.



Officials of Jasper County and Greene County assume no fiscal impact.



Oversight assumes this proposal amends the provisions of Section 99.847, Subdivision 3 to extend the date from July 1, 2003 to July 1, 2005.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This act provides that any district providing emergency services will be entitled to reimbursement from the special allocation fund in an amount of at least fifty percent of the district's tax increment.

Under this act, no new tax increment financing project shall be authorized in any area which is within an area designated as flood plain and located within St. Charles county.

This act shall not apply to tax increment financing projects or districts approved prior to July 1, 2005.

The act shall allow the tax increment financing projects to modify, amend, or expand such projects. The act allows the tax increment financing district to modify, amend, or expand such districts by not more than five percent.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Department of Economic Development

Jasper County Commission

Greene County Commission



NOT RESPONDING



Numerous Cities and Counties



Mickey Wilson, CPA

Director

March 9, 2004