SF 3029

as introduced - 89th Legislature (2015 - 2016) Posted on 03/22/2016 09:24am

A bill for an act
relating to taxation; providing a property tax exemption for certain properties;
providing aid adjustments; providing a sales tax exemption for certain
construction projects; amending Minnesota Statutes 2014, sections 272.02, by
adding a subdivision; 297A.71, by adding a subdivision; 477A.013, subdivision
13; Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a.

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

Section 1.

Minnesota Statutes 2014, section 272.02, is amended by adding a
subdivision to read:

new text begin Subd. 100. new text end

new text begin Certain property damaged by fire. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) is located in a city: (i) with a population less than 2,500 in 2013; (ii) with a net
tax capacity used in calculating its 2016 aid under section 477A.013 of less than $320 per
capita; and (iii) with an initial revenue need prior to limitation used in calculating aids
payable in 2016 of greater than $1,220 per capita; and
new text end

new text begin (2) was damaged or destroyed in a fire on February 3, 2016.
new text end

new text begin (b) The exemption created by this subdivision expires with taxes payable in 2031.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 through
taxes payable in 2031.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 49. new text end

new text begin Properties destroyed by fire. new text end

new text begin (a) Building materials, equipment, and
supplies for constructing or replacing real property that is located in Madelia affected by
the fire on February 3, 2016, are exempt.
new text end

new text begin (b) The tax on purchases exempt under this section must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied and then refunded in the
manner provided in section 297A.75. The applicant must be the governmental entity that
owns or contracts for the project or facility. Items exempt under this subdivision are
exempt regardless of whether purchased by the owner or a contractor, subcontractor, or
builder. If the tax was paid by a contractor, subcontractor, or builder, the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the
cost of the exempt items and the taxes paid on the items.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
new text end

Sec. 3.

Minnesota Statutes 2014, section 477A.013, subdivision 13, is amended to read:

Subd. 13.

Certified aid adjustments.

(a) A city that received an aid base increase
under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall
have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids
payable in 2014 through 2018.

(b) A city that received an aid base increase under new text begin Minnesota Statutes 2012, new text end section
477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9
increased by an amount equal to $160,000 for aids payable in 2014 and thereafter.

(c) A city that received a temporary aid increase under Minnesota Statutes 2012,
section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision
9 increased by an amount equal to $1,000,000 for aids payable in 2014 only.

new text begin (d) A city shall have its total aid under subdivision 9 increased by an amount equal
to $....... for aids payable in 2017 through 2031, provided that: (1) its net tax capacity used
in calculating 2016 aid under this section is less than $320 per capita; (2) its initial revenue
need prior to limitation used in calculating aids payable in 2016 was greater than $1,220
per capita; and (3) its population in 2013 was less than 2,500.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 through
aids payable in 2031.
new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, is
amended to read:

Subd. 2a.

Cities.

deleted text begin The total aid paid under section 477A.013, subdivision 9, is
$516,898,012 for aids payable in 2015. deleted text end For aids payable in 2016 and thereafter, the total
aid paid under section 477A.013, subdivision 9, is $519,398,012. new text begin For aids payable in 2017
through aids payable in 2031, the total aid paid under section 477A.013, subdivision 9, is
$........ For aids payable in 2032 and thereafter, the total aid paid under section 477A.013,
subdivision 9, is $........
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017.
new text end