HF 1537

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/09/2023 11:36am

A bill for an act
relating to taxation; property; state general tax; excluding utility property from the
state general tax; reducing the state general levy amount; amending Minnesota
Statutes 2022, section 275.025, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2022, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is $716,990,000
for taxes payable in 2023 deleted text begin and thereafter deleted text end . new text begin The state general levy for commercial-industrial
property is $620,530,000 for taxes payable in 2024 and thereafter. new text end The state general levy
for seasonal-recreational property is $41,690,000 for taxes payable in 2020 and thereafter.
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 to the commissioner under section 270C.85,
subdivision 2, clause (4), 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 property taxes payable in 2024 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, 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 3 or class 5(1) under section 273.13, excluding:

(1) the tax capacity attributable to the first $150,000 of market value of each parcel of
commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
and (2);

(2) electric generation attached machinery under class 3; deleted text begin and
deleted text end

(3) property described in section 473.625 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) utility real and personal property.
new text end

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. For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within the
first $150,000 of market value.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2023 and thereafter.
new text end