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HF 1498

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to property taxes; exempting noncommercial
seasonal recreational property from the state property
tax; amending Minnesota Statutes 2004, section
275.025, subdivisions 1, 2, 4; repealing Minnesota
Statutes 2004, section 275.025, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 275.025,
subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is
levied against commercial-industrial property deleted text begin and seasonal
residential recreational property
deleted text end , as defined in this section.
The state general levy base amount is $592,000,000 for taxes
payable in 2002. For taxes payable in subsequent years, the
levy base amount is increased each year by multiplying the levy
base amount for the prior year by the sum of one plus the rate
of increase, if any, in the implicit price deflator for
government consumption expenditures and gross investment for
state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the
12-month period ending March 31 of the year prior to the year
the taxes are payable. The tax under this section is not
treated as a local tax rate under section 469.177 and is not the
levy of a governmental unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary
or final rate for a year as necessary to account for errors and
tax base changes that affected a preliminary or final rate for
either of the two preceding years. Adjustments are allowed to
the extent that the necessary information is available to the
commissioner at the time the rates for a year must be certified,
and for the following reasons:

(1) an erroneous report of taxable value by a local
official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for
commercial-industrial or seasonal residential recreational
property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of
assessment submitted under section 270.11, subdivision 2, for
the same year.

The commissioner may, but need not, make adjustments if the
total difference in the tax levied for the year would be less
than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.025,
subdivision 2, is amended to read:


Subd. 2.

Commercial-industrial tax capacity.

For the
purposes of this section, "commercial-industrial tax capacity"
means the tax capacity of all taxable property classified as
class 3new text begin , commercial class 4c (1),new text end or class 5(1) under section
273.13, except for electric generation attached machinery under
class 3 and property described in section 473.625. County
commercial-industrial tax capacity amounts are not adjusted for
the captured net tax capacity of a tax increment financing
district under section 469.177, subdivision 2, the net tax
capacity of transmission lines deducted from a local
government's total net tax capacity under section 273.425, or
fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 3.

Minnesota Statutes 2004, section 275.025,
subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

The state general tax must be distributed among the counties by
applying a uniform rate to each county's commercial-industrial
tax capacity deleted text begin and its seasonal residential recreational tax
capacity
deleted text end . Within each county, the tax must be levied by
applying a uniform rate against commercial-industrial tax
capacity deleted text begin and seasonal residential recreational tax capacitydeleted text end . On
or before October 1 each year, the commissioner of revenue shall
certify a preliminary state general levy rate to each county
auditor that must be used to prepare the notices of proposed
property taxes for taxes payable in the following year. By
January 1 of each year, the commissioner shall certify the final
state general levy rate to each county auditor that shall be
used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 275.025, subdivision 3, is
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end