HF 1671

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 03:17pm

A bill for an act
relating to taxation; property tax levies; allowing a reverse referendum under
certain circumstances; amending Minnesota Statutes 2014, sections 275.065,
subdivision 3; 275.07, subdivision 1; 276.04, subdivisions 1, 2; proposing coding
for new law in Minnesota Statutes, chapter 275.

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

Section 1.

Minnesota Statutes 2014, 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; 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, 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; deleted text begin and
deleted text end

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) a statement at the top of the notice stating the following: if a county or city's
proposed levy for next year is greater than its actual levy for the current year, the voters
may have the right to petition for a referendum on next year's levy certification, according
to section 275.80, provided that the final levy that the local government certifies in
December of this year is also greater than its levy for the current year.
new text end

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 for taxes payable in 2016 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:

Subdivision 1.

Certification of levy.

(a) Except as provided under paragraph (b),
the taxes voted by cities, counties, school districts, and special districts shall be certified
by the proper authorities to the county auditor on or before five working days after
December 20 in each year. A town must certify the levy adopted by the town board to
the county auditor by September 15 each year. If the town board modifies the levy at a
special town meeting after September 15, the town board must recertify its levy to the
county auditor on or before five working days after December 20. new text begin If a city or county levy
is subject to a referendum under section 275.80 and the referendum was approved by the
voters, the maximum levy certified under this section is the proposed levy certified under
section 275.065. If the referendum was not approved, the maximum amount of levy that a
city or county may approve under this section is the amount allowed in section 275.80,
subdivision 4. The city or county may choose to certify a levy less than the allowed
maximum amount. new text end If a city, town, county, school district, or special district fails to certify
its levy by that date, its levy shall be the amount levied by it for the preceding year.

(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
shall be separately certified by the county to the county auditor on or before five working
days after December 20 in each year. The taxes certified shall not be reduced by the county
auditor by the aid received under section 273.1398, subdivision 3. If a county fails to
certify its levy by that date, its levy shall be the amount levied by it for the preceding year.

(ii) For purposes of the proposed property tax notice under section 275.065 and
the property tax statement under section 276.04, for the first year in which the county
implements the provisions of this paragraph, the county auditor shall reduce the county's
levy for the preceding year to reflect any amount levied for water management purposes
under clause (i) included in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end

Sec. 3.

new text begin [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section shall be known as the "Property Tax Payers'
Empowerment Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "General levy" means the total levy certified under section 275.07 by the local
governmental unit excluding any levy that was approved by the voters at a general or
special election.
new text end

new text begin (c) "Local governmental unit" means a county or a statutory or home rule charter city.
new text end

new text begin (d) "Maximum alternative levy" for taxes levied in a current year by a local
governmental unit means the sum of (i) its nondebt levy certified two years previous to the
current year, and (ii) the amount of its proposed levy for the current year levied for the
purposes listed in section 275.70, subdivision 5, clauses (1) to (5).
new text end

new text begin (e) "Nondebt levy" means the total levy certified under section 275.07 by the local
governmental unit, minus any amount levied for the purposes listed in section 275.70,
subdivision 5, clauses (1) to (5).
new text end

new text begin Subd. 3. new text end

new text begin Levy increase; reverse referendum authority. new text end

new text begin If the certified general
levy exceeds the general levy in the previous year, the voters may petition for a
referendum on the levy to be certified for the following year. The county auditor must
publish information on the right to petition for a referendum as provided in section 276.04,
subdivisions 1 and 2. If by June 30, a petition signed by the voters equal in number to ten
percent of the votes cast in the last general election requesting a vote on the levy is filed
with the county auditor, a question on the levy to be certified for the current year must be
placed on the ballot at either the general election or at a special election held on the first
Tuesday after the first Monday in November of the current calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Prohibition against new debt before the election. new text end

new text begin Notwithstanding any
other provision of law, ordinance, or local charter provision, a county or city must not issue
any new debt or obligation from the time the petition for referendum is filed with the county
auditor under subdivision 3 until the day after the referendum required under this section is
held, except as allowed in this subdivision. Refunding bonds and bonds that have already
received voter approval are exempt from the prohibition in this subdivision. For purposes
of this subdivision, "obligation" has the meaning given in section 475.51, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Ballot question; consequence of the vote. new text end

new text begin (a) The question submitted to
the voters as required under subdivision 3 shall take the following form:
new text end

new text begin "The governing body of ..... has imposed the following property tax levy in the last
two years and is proposing the following maximum levy increase for the coming year:
new text end

new text begin (previous payable year) new text end	new text begin (current payable year) new text end	new text begin (coming payable year) new text end
new text begin Total levy new text end	new text begin Total levy new text end	new text begin Maximum proposed levy new text end
new text begin $....... new text end	new text begin $....... new text end	new text begin $....... new text end

new text begin Shall the governing body of ..... be allowed to impose the maximum proposed
levy listed above?
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

new text begin If the majority of votes cast are "no," its maximum allowed property tax levy for the
coming year will be reduced to its maximum alternative levy of ....... If a city is subject to
this provision, it will provide the county auditor with information on its proposed levy by
September 30 necessary to calculate the maximum alternative levy under subdivision 2."
new text end

new text begin (b) If the majority of votes cast on this question are in the affirmative, the levy
certified by the local governmental unit under section 275.07 must be less than or equal
to its proposed levy under section 275.065. If the question does not receive sufficient
affirmative votes, the levy amount that the local governmental unit certifies under section
275.07 in the current year must be less than or equal to its maximum alternative levy as
defined in subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2014, section 276.04, subdivision 1, is amended to read:

Subdivision 1.

Auditor to publish rates.

On receiving the tax lists from the county
auditor, the county treasurer shall, if directed by the county board, give three weeks'
published notice in a newspaper specifying the rates of taxation for all general purposes
and the amounts raised for each specific purpose. new text begin If a city or county is subject to a petition
of the voters due to a general levy increase as provided in section 275.80, the published
notice must also include the general levy for the current year and the previous year for that
city or county along with the statement in the following form:
new text end

new text begin "Because the governing body of ...... increased its nonvoter approved levy in the
current year, the voters in that jurisdiction have the right to petition for a referendum under
section 275.80 on that jurisdiction's levy amount. To invoke the referendum, a petition
signed by voters equal to ten percent of the votes cast in the last general election on this
issue must be filed with the county auditor by June 30 of the current year."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing
of the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
The amounts due all other special taxing districts, if any, may be aggregated except that
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 listed on a separate
line directly under the appropriate county's levy. If the county levy under this paragraph
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 Ramsey County, if the county levy under this
paragraph includes an amount for public library service under section 134.07, the amount
attributable for that purpose may be separated from the remaining county levy amount.
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. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
amounts, including the dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
be adjusted to the next higher even-numbered dollar. The amount of market value excluded
under section 273.11, subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13,
subdivision 35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for homestead agricultural properties, the credit under section 273.1384;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) new text begin If a city or county is subject to a petition of the voters due to a general levy
increase as provided in section 275.80, the tax statement must also include the general
levy for the current year and the previous year for that city or county along with the
following statement:
new text end

new text begin "Because the governing body of ....... increased its nonvoter approved levy in the
current year, the voters in that jurisdiction have the right to petition for a referendum on
that jurisdiction's levy amount under section 275.80. To invoke the referendum, a petition
signed by voters equal to ten percent of the votes cast in the last general election on this
issue must be filed with the county auditor by June 30 of the current year."
new text end

new text begin (e) new text end If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end