Minnesota Legislature
HF 339
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:36am
Current Version - as introduced
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A bill for an act
relating to revenue sharing with local governments; repealing the city local
government aid program; creating the Minnesota fair plan; amending Minnesota
Statutes 2008, sections 477A.014, subdivision 1; 477A.03, subdivision 2a;
proposing coding for new law in Minnesota Statutes, chapter 477A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[477A.0135] MINNESOTA FAIR PLAN.
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new text begin Subdivision 1. new text end
new text begin Minnesota fair plan. new text end
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This section shall be known as the Minnesota
fair plan.
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new text begin Subd. 2. new text end
new text begin Revenue sharing; distribution by county. new text end
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(a) For aids payable in 2010
and thereafter, an amount of aid shall be allocated to each county equal to the total amount
of aid received by all cities located in that county under this section for aids payable
in 2009. If the maximum allowed appropriation under section 477A.03, subdivision
2a, is less than the total amount paid under that subdivision in calendar year 2009, the
distribution to each county shall be reduced proportionately.
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(b) Any appropriation for payments under this section in excess of the amount
allocated under paragraph (a) shall be distributed to each county proportionately based
on the ratio of the total population of all cities in the county to the total population of
all cities in the state.
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(c) For purposes of this section, a city is located in its home county.
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new text begin Subd. 3. new text end
new text begin Distribution of revenue sharing within a county. new text end
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(a) For aids payable in
2010 only, the county shall distribute to each city located in the county an amount equal to
80 percent of the amount of aid the city received under section 477A.013, subdivision
9, in calendar year 2009. For aids payable in 2011 only, the county shall distribute to
each city located in the county an amount equal to 60 percent of the amount of aid the
city received under section 477A.013, subdivision 9, in calendar year 2009. For aids
payable in 2012 and thereafter, the county shall distribute to each city located in the
county an amount equal to 40 percent of the amount of aid the city received under section
477A.013, subdivision 9, in calendar year 2009. If the total aid distributed to the cities in
any calendar year is more than the amount allocated to the county under subdivision 2, the
aid to each city shall be reduced proportionately.
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(b) The county board shall determine the distribution of any remaining aid under
this subdivision and may choose to keep all or a portion to pay for county purposes and
allocate any remainder between any combination of cities or townships located in the
county. The county board shall take into consideration whether the additional aid retained
by the county or allocated to a city or township will be used to reduce property taxes in
determining the distribution of aid under this paragraph.
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(c) The county shall inform each city and township within the county of the amount
of aid it will receive under this section by August 15 of the year preceding the distribution
year. The county shall distribute the aid allocated to each city or town in two equal
payments. The payments shall be made within three days after the county receives
payments under section 477A.015.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2010 and thereafter.
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Sec. 2.
Minnesota Statutes 2008, section 477A.014, subdivision 1, is amended to read:
Subdivision 1.
Calculations and payments.
(a) The commissioner of revenue
shall make all necessary calculations and make payments pursuant to sections deleted text begin 477A.013deleted text end new text begin
477A.0135new text end and 477A.03 directly to the deleted text begin affected taxing authoritiesdeleted text end new text begin countiesnew text end annually. In
addition, the commissioner shall notify the deleted text begin authoritiesdeleted text end new text begin countiesnew text end of their aid amounts,
as well as the computational factors used in making the calculations for their deleted text begin authoritydeleted text end new text begin
countynew text end , and those statewide total figures that are pertinent, before August 1 of the year
preceding the aid distribution year.
(b) For the purposes of this subdivision, aid is determined for a city or town based
on its city or town status as of June 30 of the year preceding the aid distribution year. If
the effective date for a municipal incorporation, consolidation, annexation, detachment,
dissolution, or township organization is on or before June 30 of the year preceding
the aid distribution year, such change in boundaries or form of government shall be
recognized for aid determinations for the aid distribution year. If the effective date for a
municipal incorporation, consolidation, annexation, detachment, dissolution, or township
organization is after June 30 of the year preceding the aid distribution year, such change in
boundaries or form of government shall not be recognized for aid determinations until
the following year.
(c) Changes in boundaries or form of government will only be recognized for the
purposes of this subdivision, to the extent that: (1) changes in market values are included
in market values reported by assessors to the commissioner, and changes in population,
household size, and the road accidents factor are included in their respective certifications
to the commissioner as referenced in section 477A.011, or (2) an annexation information
report as provided in paragraph (d) is received by the commissioner on or before July 15
of the aid calculation year. Revisions to estimates or data for use in recognizing changes
in boundaries or form of government are not effective for purposes of this subdivision
unless received by the commissioner on or before July 15 of the aid calculation year.
Clerical errors in the certification or use of estimates and data established as of July 15 in
the aid calculation year are subject to correction within the time periods allowed under
subdivision 3.
(d) In the case of an annexation, an annexation information report may be completed
by the annexing jurisdiction and submitted to the commissioner for purposes of this
subdivision if the net tax capacity of annexed area for the assessment year preceding the
effective date of the annexation exceeds five percent of the city's net tax capacity for the
same year. The form and contents of the annexation information report shall be prescribed
by the commissioner. The commissioner shall change the net tax capacity, the population,
the population decline, the commercial industrial percentage, and the transformed
population for the annexing jurisdiction only if the annexation information report provides
data the commissioner determines to be reliable for all of these factors used to compute city
revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
housing percentage, the road accidents factor, and household size only if the entire area of
an existing city or town is annexed or consolidated and only if reliable data is available for
all of these factors used to compute city revenue need for the annexing jurisdiction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2010 and thereafter.
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Sec. 3.
Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
deleted text begin Citiesdeleted text end new text begin Revenue sharingnew text end .
For aids payable in deleted text begin 2009deleted text end new text begin 2010new text end and thereafter,
the total aid paid under section deleted text begin 477A.013, subdivision 9,deleted text end new text begin 477A.0135new text end is $526,148,487,
subject to adjustment in subdivision 5.
new text begin EFFECTIVE DATE. new text end
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This section is effective for aids payable in calendar year
2010 and thereafter.
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Sec. 4. new text begin REVISOR'S INSTRUCTION.
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The revisor of statutes shall retitle Minnesota Statutes, chapter 477A, as "Revenues
to Local Governments."
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