[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6325908,"mediaKeyId","2330507-4f5f7532194bc3b064beba7568349bc0","parentId",2330507,"title","State Auditor asks committee to clarify treatment of loans and interest for COVID-era unobligated TIF transfers","audioSeconds",217,"startMs",2523989,"endMs",2741270,"viewUrl","/Search/View?dp=1&key=2330507-4f5f7532194bc3b064beba7568349bc0&start=2523&end=2741","thumbnailUrl","https://assets.pipeline.soar.com/2330507-4f5f7532194bc3b064beba7568349bc0/thumbnail_2523989.jpg","articleUrl","/articles/6325908/Minnesota/State-Auditor-asks-committee-to-clarify-treatment-of-loans-and-interest-for-COVID-era-unobligated-TIF-transfers","mediaUrl","https://secure.pipeline.soar.com/6325908-ceedc682c1f4de6a13cac71836302706/orig.mp4?Expires=1771087448&Signature=FjxB7eVjoTuIgskkeGgs7JhvsVeLz-nc32fpGSXVdAlFb3LJgXcLABHF~wX-SJFFS~Gh6OsO9m4rZeoQRHoMbnIUC95wk2yL4yyZXvSjc-BtBMMWVOSPXpca7Ak3du9soCQYyBcyxdRssQCPcxOH1Z5xRpckWg6RRC9GB1ky0-rHCn8xit9ThYDohK6XUznKWycEgXvsxcVf3YdXzOcHwJ4NRNHzHrZmQYpO6qGqs0E2YftZGZA8RcEHNLNvCC1oZzzuM-7kYOeIwpjtvPTSQzzbqkpIg66V9vDVRp2nuSS-~1oxuY9skzZSkXgySQmz9tJaJ0xbYgAvs9kJTHyAJQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-02-18T00:00:00Z","article","Senate File 23, carried by Senator Rest and presented Feb. 18 with Office of the State Auditor staff, would clarify what counts as \"unobligated increment\" transferred under temporary authority during the COVID period and how those funds must be returned by the statutory deadline.

Jason Nord, TIF Division Director at the Office of the State Auditor, told the committee the office found ambiguous language on whether dollars transferred and then loaned or invested must be returned by Dec. 31, 2025, even if repayment of loans is scheduled for later years. \"We just spotted some ambiguity with this deadline coming up,\" Nord said, and explained the proposal would explicitly require repayment of principal and interest on loans and the return of earnings on invested funds to the originating district when the loans or investments are repaid.

Nord told the committee approximately $92,400,000 was transferred statewide under the temporary authority; he said the proposed language is intended as a reasonable default interpretation to avoid unintended forfeitures of increment and to align repayment timing with actual loan repayment schedules. Senate File 23 was laid over for possible inclusion; the Office of the State Auditor said it is open to alternate drafting that provides the same clarity.","mediaType","Video","parentTitle","Committee on Taxes - 02/18/25","oneSentenceSummary","The Office of the State Auditor joined the committee to seek statutory clarification about how \"unobligated increment\" transferred during COVID-flex authority should be treated when used for loans or investments and whether interest or loan principal must be returned by the statutory deadline.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6325913,"Senate committee debates tax-increment financing changes; author proposes shortening redevelopment districts to 20 years",1283,1717770,3001144,"/Search/View?dp=1&key=2330507-4f5f7532194bc3b064beba7568349bc0&start=1717&end=3001","https://assets.pipeline.soar.com/2330507-4f5f7532194bc3b064beba7568349bc0/thumbnail_1717770.jpg","/articles/6325913/Minnesota/Senate-committee-debates-tax-increment-financing-changes-author-proposes-shortening-redevelopment-districts-to-20-years","https://secure.pipeline.soar.com/6325913-576a2764fe90b83ab6c654f81e5012eb/orig.mp4?Expires=1771087448&Signature=PspAEK8mj1ihoPpBTfLFtiXUasTAQ7aUYCEOHNjegp9Jz970abPDhEmNoYP-obd4SvgIxAyFZ9d5jhPPLdgg-WWZtCt9EGo0z1oI3tca8VNumiGK07gnnLN9u83bFd2o7uYWrd2W5XRZkrEQ1VtNrvK3J37~xl5jtrN-f0Hko6Olr-LN3i9P54uFORdcUCfjOfuGSRyLCuyBF9BuHEhkfXNzumwO6k29SEvi6lvLIpgpYFT3vHynyLmEbT11AwAC4VUk4Bmh3sfQsLS0eKlyYkX7j9zR04pb0Bd86mw-m8jyJ98kp7gUuqL~MNrB3MjOSdKwAvCP2D02laaKZ0tbPw__&Key-Pair-Id=KUT5TJCACFTXG","Senate File 7, presented Feb. 18 by Senator Rest, would revise Minnesota's tax-increment financing (TIF) law by adopting a less-restrictive blight test for redevelopment districts, eliminating stand-alone renovation and renewal districts, and reducing the default duration for redevelopment districts from 25 years to 20 years.

Senator Rest said the bill aims to reduce the number of special \"notwithstanding\" bills that cities bring to the Legislature because a 20th-century definition of \"blight\" no longer fits many modern redevelopment projects. \"The goal is not for it to last forever,\" Senator Rest said, describing the intent that improved property return to the tax rolls once projects are completed.

Stacy Quilvang, a municipal advisor who works with cities on TIF creation, told the committee that while many cities decertify districts early, shortening the default duration could harm communities that legitimately need the full 25-year period for complex redevelopment: \"There really isn't a council that wants to have a district that goes on forever and ever. So everyone's goal is to get the goals of the redevelopment done and get that back on the tax rolls as soon as possible,\" Quilvang said. She urged retaining the 25-year option and suggested targeted statutory changes instead of broad duration reductions.

Quilvang and other witnesses provided several data points to the committee: there are roughly 1,600 TIF districts in Minnesota, about 700 of which are redevelopment districts; only 18 are renovation and renewal districts. Since 1988 there have been about 224 special-legislation requests related to TIF; excluding technical or repealed bills, approximately 197 requests (an average of five to six per year). Quilvang also asked the legislature to consider extending the five-year rule (which limits when increment must be obligated) to 10 years, a change proposed elsewhere (Senate File 585) and long-requested by cities.

Committee members pressed concerns about the proposed 20-year limit given current economic uncertainty and potential declines in commercial property values that could extend project timelines. Senator Reisman said he was open to discussing the duration limit with colleagues, and Senator Webb expressed concern that shorter durations could penalize projects during prolonged economic downturns.

Senate File 7 was laid over for possible inclusion; authors and witnesses said they will continue to confer with city leaders and auditors on technical changes.","Senator Rest proposed changes to Minnesota's tax-increment financing (TIF) law that would adopt a softer blight test, eliminate separate renovation/renewal districts, and reduce the standard redevelopment district duration from 25 to 20 years; city advisors urged caution, saying many projects still need 25 years.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6325917,"Committee returns firearm-storage exemption bill with trigger-block definition to taxes panel",74,665055,739410,"/Search/View?dp=1&key=2330507-4f5f7532194bc3b064beba7568349bc0&start=665&end=739","https://assets.pipeline.soar.com/2330507-4f5f7532194bc3b064beba7568349bc0/thumbnail_665055.jpg","/articles/6325917/Minnesota/Committee-returns-firearm-storage-exemption-bill-with-trigger-block-definition-to-taxes-panel","https://secure.pipeline.soar.com/6325917-00f76ac6a79ebd92d5b04e099b11ec29/orig.mp4?Expires=1771087448&Signature=mXYs8ylqU4UeuYMqdv44nqRjJweYVdOBOvfP3koNnR7zETHI3Ia78Yr4Y7kAHnkiTPh0qciBnMy03JexpJ-G6gidlS~cm9Mj~ytTgDKoTn8oQwnZWjin05JVdzlLzk5eNNcQUQ9Y2zOwH5wh5gK0uBrZvOpi050-m5UdIWms39eOQMNMKAVpY5qS5BLyc7BdU~nqpTclqWGwBTA8OvcwWnDI~-7Km8Q19cRz2RuvXWKPlhgDcbSkMfhKCOneGVpmwjpDkrnmzTQeY5Dx9RE6~pllF9K1vehIqi8b~SEQDgjwAEra7Err3sk0BbmEImFH7at6e-ot0RdTQchfx59hQg__&Key-Pair-Id=KUT5TJCACFTXG","Senate File 11 returned to the Taxes Committee on Feb. 18 after a Judiciary Committee review and was laid over for possible inclusion. Senator Rest said the bill adds trigger blocks to an existing statutory sales-tax exemption for firearm storage units and that the language aligns with a streamlined sales tax definition under consideration by national groups.

Senator Rest noted an industry support letter from the National Shooting Sports Foundation (NSSF) was placed in the committee packet. No public testimony was offered on the floor during this hearing segment and the committee did not take a final vote; the bill was laid over for possible inclusion in omnibus legislation.","Senate File 11, returned to the Taxes Committee after review in Judiciary, adds 'trigger blocks' to the sales-tax exemption for firearm storage units; committee laid the bill over for possible inclusion.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6325920,"Senate committee considers expanding sales-tax exemption to broadband providers, debates effect of the word 'primarily'",114,32850,147695,"/Search/View?dp=1&key=2330507-4f5f7532194bc3b064beba7568349bc0&start=32&end=147","https://assets.pipeline.soar.com/2330507-4f5f7532194bc3b064beba7568349bc0/thumbnail_32850.jpg","/articles/6325920/Minnesota/Senate-committee-considers-expanding-sales-tax-exemption-to-broadband-providers-debates-effect-of-the-word-primarily","https://secure.pipeline.soar.com/6325920-2317df02f5d04f17ad874858a867caf3/orig.mp4?Expires=1771087448&Signature=I7N15ECLo8QSLVzafGwI9a3LwKtvHxr2tXEyO3eAYO8A5dExcCqkNUPoWXnE2Vis4BJmO7aF7o-kZ3RlZDz9vUaJmL2tJrFuh-sTX4xgDePc-zKkdaBhvSIxRQOlYQhNWJrrGN4Nb89PWbX-FYcARURfJd2aeYYIoEtJ57QMrLJriXj0HBsARbtMyocxMw-g6NsOTxrmIJp4Aef2CtEBIXTg7kjEHJDUbC0s2s--U67AjYV1L1u3j0NubyTSbSqPFoNbN5GlESUhQY7e4NHTAkinmw8zOUqFAcB-yHmezqjFMR-l0y2ujsp3yTXyLdxfXI-ISPHZTRg7-nRsxlgJ0Q__&Key-Pair-Id=KUT5TJCACFTXG","Senate Taxes Committee members on Feb. 18 heard two related bills that would clarify and expand a sales-tax exemption for communications equipment so that broadband providers qualify for the exemption.

Senator Putnam introduced Senate File 883 and offered an A1 amendment, which the committee adopted by voice vote. \"As of January 2025, 390,000 Minnesota households lack access to broadband speeds of 100 to 20 MBPS,\" Senator Putnam said, adding that \"62,000 households in the state of Minnesota do not have fundamental basic internet access.\" The bill would expand an existing sales-tax exemption for fiber and conduit purchased or leased by telecommunications or pay-TV services to include purchases or leases by broadband or internet service providers.

The bills are aimed at resolving what witnesses described as inconsistent Department of Revenue audits and disputes over statutory language that requires equipment be used \"primarily\" to provide telecommunications or pay-TV services. Brent Christensen, President and CEO of the Minnesota Telecom Alliance, told the committee the same equipment now commonly carries multiple services and that auditors have reached different conclusions about when the exemption applies: \"One auditor told one of my members that as long as they use the fiber for telephone or television, they don't have to pay sales tax. Another auditor told another company that if it's 51% for telephone and television ... you don't have to pay sales tax. But it's 51% Internet, you have to pay sales tax.\"

Sarah Pisick, representing CTIA (the wireless industry association), urged removing the word \"primarily\" from the statute so that identical equipment used for voice, video and internet access is treated consistently: \"It's nearly impossible to determine exactly what service a customer is primarily receiving from the exact same equipment,\" she said, arguing the change would provide certainty and avoid repeated audits and appeals.

Industry representatives also questioned the differing revenue estimates attached to the bills. Senator Rest noted the revenue estimate for one bill was roughly $6 million while the other was estimated at $2–3 million; witnesses said the variance stems from different assumptions about what share of telecommunications expenditures qualify under the exemption.

No final vote was taken on either bill; Senate File 883 was \"laid over\" as amended and the bill to remove \"primarily\" was also laid over for possible inclusion in an omnibus tax bill.

The committee signaled an intent to continue work with Department of Revenue staff to clarify the scope and fiscal effect of the statutory change before taking final action.","The Minnesota Senate Taxes Committee heard multiple bills to clarify or expand a sales-tax exemption for communications equipment so broadband providers pay no sales tax on fiber and conduit; lawmakers and industry witnesses said inconsistent Department of Revenue audits have caused disputes over the statute's word \"primarily.\"","actionData","errors"]

Article not found

State Auditor asks committee to clarify treatment of loans and interest for COVID-era unobligated TIF transfers

Senate committee debates tax-increment financing changes; author proposes shortening redevelopment districts to 20 years

Committee returns firearm-storage exemption bill with trigger-block definition to taxes panel

Senate committee considers expanding sales-tax exemption to broadband providers, debates effect of the word 'primarily'