Requirements modification for return of excess tax increments

This bill modifies Minnesota's rules for handling excess tax increments in tax increment financing districts. It requires local authorities to return any excess funds to the county auditor within nine months after December 31 each year, rather than spending them as previously allowed. If returned, the county auditor must distribute these funds to the city, county, and school district in proportion to their local tax rates. The changes apply to all districts starting with 2026 excess increment determinations.