HF 1315

as introduced - 90th Legislature (2017 - 2018) Posted on 03/01/2017 02:40pm

A bill for an act
relating to transit; providing for the creation of special taxing districts to capture
incremental property taxes to finance operating costs of light rail and bus rapid
transit lines; proposing coding for new law in Minnesota Statutes, chapter 473.

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

Section 1.

new text begin [473.452] SPECIAL TAXING DISTRICTS FOR FIXED GUIDEWAY
LINE TRANSIT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin (a) As authorized by this section, the council shall establish a
special taxing district to pay for the cost of operating and capital maintenance for each of
its existing fixed guideway lines to the extent fare revenues are insufficient to cover those
costs.
new text end

new text begin (b) In addition, the council shall establish a special taxing district for each new fixed
guideway line that it intends to operate. At least one year before July 1 of the year preceding
the first year a new fixed guideway line is expected to begin operating, the council shall
request certification of a special taxing district under subdivision 4, paragraph (b), for that
line.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "fixed guideway line" means a transit
line, operated by the council, that requires substantial investment in fixed infrastructure,
such as acquisition and improvement of right-of-way, track, stations, and similar, and consists
of either:
new text end

new text begin (1) light rail transit; or
new text end

new text begin (2) regular route bus service that operates primarily or substantially within separate
rights-of-way dedicated for or primarily used by the service, which may include but is not
limited to arterial or highway bus rapid transit, limited stop bus service, and express bus
service.
new text end

new text begin Subd. 3. new text end

new text begin Area of district. new text end

new text begin (a) Each special taxing district must consist of the area
comprised of any parcel of property located, in whole or part, within 1,000 feet of the
right-of-way for the fixed guideway line and classified as class 3 property or class 4 property.
new text end

new text begin (b) The area of the district excludes any parcel located within a tax increment financing
district that was certified before February 15, 2017, and remained in effect for the first taxes
payable year to which the special taxing applies under this section. Upon decertification of
any tax increment financing district that resulted in exclusion of a parcel from the special
taxing district under this paragraph, the county auditor shall certify the parcel for inclusion
in the special taxing district effective for the first taxes payable year for which the tax
increment financing district was decertified. The auditor shall add the parcels to the special
taxing district with an original tax capacity equal to each parcel's tax capacity for the taxes
payable year in which the tax increment financing district was last in effect.
new text end

new text begin Subd. 4. new text end

new text begin Revenues. new text end

new text begin (a) The revenues of the district are the property tax increments
attributable to the increase in the net tax capacity of the district that occurs after its
certification. The tax increments must be computed in the manner provided in this
subdivision.
new text end

new text begin (b) Upon the request of the council, the county auditor shall certify the net tax capacity
of all taxable property within the area of the special taxing district. Certification of original
net tax capacity, captured net tax capacity, and computation of tax increment must be done
following the procedures and methods provided under section 469.177 with the following
exceptions:
new text end

new text begin (1) the current tax rate must be used, rather than the original tax rate under section
469.177, subdivision 1a;
new text end

new text begin (2) computations of increment must be made using the option under section 469.177,
subdivision 3, paragraph (b);
new text end

new text begin (3) the county auditor shall annually adjust the original tax capacity of the district by
the average percentage change in the tax capacity of class 3 property in the county over the
previous assessment year. Increases attributable to new improvements that became taxable
in that assessment year must be excluded in calculating the average.
new text end

new text begin (c) The county auditor shall pay the tax increment to the council. Revenues may only
be used for the operating and capital costs of the fixed guideway line.
new text end

new text begin (d) The restrictions on or requirements for tax increment financing districts under sections
469.174 to 469.178 do not apply to a special taxing district under this section, except as
provided in paragraph (b) and as follows:
new text end

new text begin (1) the county may deduct its cost of administration as permitted under section 469.176,
subdivision 4h, paragraph (a); and
new text end

new text begin (2) to the extent that revenues under this section exceed the projected cost of operations
and capital maintenance for the fixed guideway line that exceed fare revenues, the excess
must be distributed as provided under section 469.176, subdivision 2, paragraph (c), clause
(4).
new text end

new text begin Subd. 5. new text end

new text begin Relationship to TIF and abatement. new text end

new text begin No tax increment financing district may
be created under sections 469.174 to 469.178 within the area of the special taxing district
as defined under subdivision 3 for fixed guideway lines that are in operation or for which
a locally preferred alternative has been designated. No abatement of the incremental tax for
the special taxing district under subdivision 4 may be made under sections 469.1812 to
469.1815.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable in
2019. Subdivision 5 applies to requests for certification of tax increment financing districts
made after the day following final enactment.
new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington.
new text end