Minnesota Legislature
HF 665
1st Engrossment - 89th Legislature (2015 - 2016) Posted on 02/25/2015 12:25pm
Current Version - 1st Engrossment
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A bill for an act
relating to taxation; property; phasing out the state general levy on seasonal
recreational property over five years; eliminating the automatic inflation of
the state general levy; amending Minnesota Statutes 2014, section 275.025,
subdivisions 1, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy deleted text begin base amountdeleted text end is deleted text begin $592,000,000deleted text end new text begin $854,360,000new text end for
taxes payable in deleted text begin 2002. For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysts of the United States Department of Commerce for
the 12-month period ending March 31 of the year prior to the year the taxes are payabledeleted text end new text begin
2016 and thereafternew text end . The tax under this section is not treated as a local tax rate under
section 469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
Subd. 4.
Apportionment and levy of state general tax.
deleted text begin Ninety-fivedeleted text end new text begin For taxes
payable in 2016, 96new text end percent of the state general tax must be levied by applying a uniform
rate to all commercial-industrial tax capacity and deleted text begin fivedeleted text end new text begin fournew text end percent of the state general tax
must be levied by applying a uniform rate to all seasonal residential recreational tax
capacity. new text begin In each subsequent year, the portion to be levied on commercial-industrial
tax capacity will be increased by one percentage point each year, and the portion to be
levied on seasonal-recreational tax capacity will be reduced by one percentage point each
year, until the entire amount is levied on commercial-industrial net tax capacity for taxes
payable in 2020 and thereafter. new text end On or before October 1 each year, the commissioner of
revenue shall certify the preliminary state general levy rates to each county auditor that
must be used to prepare the notices of proposed property taxes for taxes payable in the
following year. By January 1 of each year, the commissioner shall certify the final state
general levy rate to each county auditor that shall be used in spreading taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end