HF 4371

as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2020 11:38am

A bill for an act
relating to taxes; property and local; requiring additional information to be sent
with the notice of proposed property taxes; amending Minnesota Statutes 2018,
section 275.065, subdivision 3, by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. The taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1. The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions related to the
notice and an address where comments will be received by mail, except that no notice
required under this section shall be interpreted as requiring the printing of a personal
telephone number or address as the contact information for a taxing authority. If a taxing
authority does not maintain public offices where telephone calls can be received by the
authority, the authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year new text begin ; the increase or decrease between the market value used for computing property taxes
payable in the current year and the market value used for the following year, expressed as
a percentage; the total amount of increase, if any, attributable to new construction new text end ; and, in
the case of residential property, whether the property is classified as homestead or
nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387, voter approved school levy, other local school levy, and the
sum of the special taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, for proposed levy
certifications for property taxes payable in 2021.
new text end

Sec. 2.

Minnesota Statutes 2018, section 275.065, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Notice of proposed property taxes required supplemental information. new text end

new text begin (a)
The county auditor must prepare a separate statement to be delivered with the notice of
proposed taxes described in subdivision 3, that contains summary budget data from the city
and the county that proposes a property tax levy for taxes payable the following year. The
reported summary budget data must contain the same information, in the same categories,
and in the same format as provided to the Office of the State Auditor as required by section
6.745. The statement must provide the information in clauses (1) and (2) for the taxing
authority's budget for taxes payable the following year and the taxing authority's budget
from taxes payable in the current year, as well as the percent change between the two years.
The city must provide the county auditor with the summary budget data at the same time
as the information required under subdivision 3. Only cities with a population over 500 are
required to report the data described in this subdivision. The statement must dedicate one
half of the page to the city's budget information and the other half of the page to the county's
budget information. If a city with a population over 500 fails to report the required
information to the county auditor, the county auditor must list the city as "budget information
not reported" on the half of the page dedicated to the city's budget information. The statement
may take the same format as the annual summary budget report for cities and counties issued
by the Office of the State Auditor. The summary budget data must include:
new text end

new text begin (1) a "governmental revenues" category, including and separately stating:
new text end

new text begin (i) "property taxes" defined as property taxes levied on an assessed valuation of real
property and personal property, if applicable, by the city and county, including fiscal
disparities;
new text end

new text begin (ii) "special assessments" defined as levies made against certain properties to defray all
or part of the costs of a specific improvement, such as new sewer and water mains, deemed
to benefit primarily those properties;
new text end

new text begin (iii) "state general purpose aid" defined as aid received from the state that has no
restrictions on its use, including local government aid, county program aid, and market
value credits; and
new text end

new text begin (iv) "state categorical aid" defined as revenues received for a specific purpose, such as
streets and highways, fire relief, and flood control, including, but not limited to, police and
fire state aid, and out-of-home placement aid; and
new text end

new text begin (2) a "current expenditures" category, including and separately stating:
new text end

new text begin (i) "general government" defined as administration costs of city or county governments,
including salaries of officials and maintenance of buildings;
new text end

new text begin (ii) "public safety" defined as costs related to the protection of persons and property,
such as police, fire, ambulance services, building inspections, animal control, and flood
control;
new text end

new text begin (iii) "streets and highways" defined as costs associated with the maintenance and repair
of local highways, streets, bridges, and street equipment, such as patching, seal coating,
street lighting, street cleaning, and snow removal;
new text end

new text begin (iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed
and pest control;
new text end

new text begin (v) "human services" defined as activities designed to provide public assistance and
institutional care for individuals economically unable to provide for themselves;
new text end

new text begin (vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection,
communicable disease control, and various health services and clinics;
new text end

new text begin (vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing,
planting, removal of trees, festivals, bands, museums, community centers, cable television,
baseball fields, and organized recreation activities;
new text end

new text begin (viii) "conservation of natural resources" defined as the conservation and development
of natural resources, including agricultural and forestry programs and services, weed
inspection services, and soil and water conservation services;
new text end

new text begin (ix) "economic development and housing" defined as costs for development and
redevelopment activities in blighted or otherwise economically disadvantaged areas, including
low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and
other physical facilities, and other assistance to those wanting to provide housing and
economic opportunity within a disadvantaged area; and
new text end

new text begin (x) "all other current expenditures" defined as costs not classified elsewhere, such as
airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs,
and public transportation costs.
new text end

new text begin (b) If either taxing authority reporting this data does not have revenues or expenditures
in a category listed in paragraph (a), then the taxing authority must designate the amount
as "0" for that specific category.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 3.

Minnesota Statutes 2018, section 275.065, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Joint public hearing; nonmetropolitan cities and school districts. new text end

new text begin (a)
Notwithstanding any other provision of law, the governing body of a school district must
hold a joint hearing with the governing bodies of all cities located wholly or partially within
the district with a population over 500. The primary purpose of the joint hearing is for
taxpayer efficiency by allowing taxpayers to come to a single public hearing to discuss the
budgets and proposed property tax levies of two taxing authorities that impact the taxes on
their property. The public must be allowed to speak at the meeting that must be held after
November 24 and must not be held before 6:00 p.m.
new text end

new text begin (b) This subdivision applies only to cities and school districts located outside the
metropolitan area as defined under section 473.121, subdivision 2. If a school district is
located partially within the metropolitan area, the district may hold a joint hearing, if it so
chooses. If a city is located partially within the metropolitan area and is located within a
district holding a joint hearing under this subdivision, the city may participate in the joint
hearing, if it so chooses.
new text end

new text begin (c) The school district must notify each city within the district with a population over
500 of the date and time of the joint public hearing. If a participating city is located in more
than one school district, the hearing under this subdivision is in lieu of the requirement to
hold a separate public hearing if 75 percent or more of that city's previous year's net tax
capacity is in the district holding the hearing.
new text end

new text begin (d) To the extent possible, the school district must obtain a meeting space to hold the
joint hearing at a public building such as the court house, school, or community center. The
location must be as centrally located within the district as possible.
new text end

new text begin (e) The meeting must generally be structured in the following general manner:
new text end

new text begin (1) the first 30 to 60 minutes must be devoted to discussion of the school district's budget
and levy;
new text end

new text begin (2) the next 30 to 60 minutes must be devoted to discussion of the city's budget and levy,
with each city's discussion held in a separate room, preferably in the same building; and
new text end

new text begin (3) during the last 30 minutes the governing bodies must reassemble in a joint meeting
to entertain any follow-up questions that have arisen from the separate discussions.
new text end

new text begin The school district must attempt to keep the total public hearing to within three hours.
new text end

new text begin (f) In lieu of the public advertisement requirement in this section, the school district may
provide a single advertisement listing each city with a population of over 500 participating
in the joint public hearing. Any taxing authority participating under this subdivision is
exempt from the separate public advertisement requirement under this section. The cost of
the joint hearing advertisement must be apportioned so that each participating jurisdiction
pays an equal amount. The school district must publish notice of the public hearing not less
than two business days nor more than six business days before the hearing. The school
district must select a newspaper of general interest and readership in the community, and
not one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week. The advertisement must be in the following form:
new text end

new text begin "NOTICE OF JOINT PUBLIC HEARING
new text end

new text begin PROPOSED TOTAL PROPERTY TAXES
new text end

new text begin FOR PARTICIPATING TAXING AUTHORITIES
new text end

new text begin The property tax amounts below compare that portion of the current budget levied in property
taxes in the cities and school district for (year) with the property taxes the cities and school
district propose to collect in (year) for those taxing authorities participating in the joint
public hearing.
new text end

new text begin Taxing Authority new text end	new text begin (Year) Property Taxes new text end	new text begin Proposed (Year) Property Taxes new text end	new text begin Change (Year) - (Year) new text end
new text begin $....... new text end	new text begin $....... new text end	new text begin $....... new text end	new text begin ...% new text end
new text begin $....... new text end	new text begin $....... new text end	new text begin $....... new text end	new text begin ...% new text end
new text begin $....... new text end	new text begin $....... new text end	new text begin $....... new text end	new text begin ...% new text end

new text begin ATTEND THE JOINT PUBLIC HEARING
new text end

new text begin All residents are invited to attend the joint public hearing of the cities and school district to
express your opinions on the proposed amount of (year) property taxes. The hearing will
be held on:
new text end

new text begin (Month/Day/Year/Time)
new text end

new text begin (Location/Address)
new text end

new text begin If the discussion cannot be completed, and another hearing is scheduled, a time and place
for that hearing will be announced at this hearing. You are also invited to send your written
comments to the school district. Please identify which jurisdiction your comments relate to
so that they can be directed to the right jurisdiction."
new text end

new text begin The formal adoption of the taxing authority's levy must not be made at the joint public
hearing held under this subdivision. The formal adoption must be made at one of the regularly
scheduled meetings of the taxing authority's governing body. However, the property tax
levy amount that is subsequently adopted cannot exceed the amount shown to taxpayers at
the joint public hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end