1.1 	A bill for an act
1.2 	relating to taxation; tax increment financing; allowing tax increment financing 
1.3 	districts in the cities of Chatfield and Preston to capture the state general tax.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. TAX INCREMENT FINANCING; CITY OF CHATFIELD.
 1.6 		Subdivision 1.Authority. Increments for the following tax increment financing 
1.7 	districts include the tax paid by captured tax capacity under the state general tax, 
1.8 	Minnesota Statutes, section 275.025, if the conditions under subdivision 2 are satisfied:
1.9 	(1) tax increment financing district No. 2-4 in the city of Chatfield;
1.10 	(2) tax increment financing district 1 in the city of Preston;
1.11 	(3) tax increment financing district 5 in the city of Preston; and
1.12 	(4) tax increment financing district 6 in the city of Preston.
1.13 		Subd. 2.Conditions. To qualify for the authority under this section, the following 
1.14 	conditions must be satisfied:
1.15 	(1) the city agrees to extend the payment obligations under the note for the district 
1.16 	through the maximum duration for the district under Minnesota Statutes, section 469.176, 
1.17 	subdivision 1b; and
1.18 	(2) all of the holders of the note agree to extend the note??a??a??s maturity and payment 
1.19 	obligation at the same interest rate that applies under the existing note in return for 
1.20 	receiving reimbursement from increments from the state general tax.

1.21 	EFFECTIVE DATE. This section is effective for the first taxes payable year 
1.22 	that begins after compliance by the governing body of the city with the requirements 
1.23 	of Minnesota Statutes, section 645.021.