HF 1045

as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 10:11am

A bill for an act
relating to property taxation; reducing disparity reduction aid payments;
amending Minnesota Statutes 2010, section 273.1398, subdivision 3.

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

Section 1.

Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to
read:

Subd. 3.

Disparity reduction aid.

The amount of disparity aid certified new text begin each year
new text end for each taxing district within each unique taxing jurisdiction deleted text begin for taxes payable in the prior
year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class
rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity
using the class rates for taxes payable in the year prior to that for which aid is being
computed, both based upon market values for taxes payable in the year prior to that for
which aid is being computed. If the commissioner determines that insufficient information
is available to reasonably and timely calculate the numerator in this ratio for the first taxes
payable year that a class rate change or new class rate is effective, the commissioner
shall omit the effects of that class rate change or new class rate when calculating this
ratio for aid payable in that taxes payable year. For aid payable in the year following a
year for which such omission was made, the commissioner shall use in the denominator
for the class that was changed or created, the tax capacity for taxes payable two years
prior to that in which the aid is payable, based on market values for taxes payable in the
year prior to that for which aid is being computed deleted text end new text begin is 50 percent of the amount certified
for taxes payable in 2011 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end