HF 1590

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; prohibiting increases in 
  1.3             property tax rates for taxes payable in 2004 and 2005 
  1.4             unless approved by referendum; amending Minnesota 
  1.5             Statutes 2002, section 275.025, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 275.025, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [LEVY AMOUNT.] The state general levy is 
  1.10  levied against commercial-industrial property and seasonal 
  1.11  recreational property, as defined in this section.  The state 
  1.12  general levy is $592,000,000 for taxes payable in 2002.  For 
  1.13  taxes payable in 2004 and 2005, the rate of the tax must be the 
  1.14  rate applied for taxes levied in 2002, payable in 2003.  For 
  1.15  taxes payable in 2006 and subsequent years, the levy for the 
  1.16  previous year is increased each year by multiplying the amount 
  1.17  for the prior year by the sum of one plus the rate of increase, 
  1.18  if any, in the implicit price deflator for government 
  1.19  consumption expenditures and gross investment for state and 
  1.20  local governments prepared by the Bureau of Economic Analysts of 
  1.21  the United States Department of Commerce for the 12-month period 
  1.22  ending March 31 of the year prior to the year the taxes are 
  1.23  payable.  The tax under this section is not treated as a local 
  1.24  tax rate under section 469.177 and is not the levy of a 
  1.25  governmental unit under chapters 276A and 473F.  Beginning in 
  2.1   fiscal year 2004, and in each year thereafter, the commissioner 
  2.2   of finance shall deposit in an education reserve account, which 
  2.3   account is hereby established, the increased amount of the state 
  2.4   general levy received for deposit in the general fund for that 
  2.5   year over the amount of the state general levy received for 
  2.6   deposit in the general fund in fiscal year 2003.  The amounts in 
  2.7   the education reserve account do not lapse or cancel each year, 
  2.8   but remain until appropriated by law for education aid or higher 
  2.9   education funding. 
  2.10     Sec. 2.  [STAFF DEVELOPMENT LEVY.] 
  2.11     Notwithstanding Minnesota Statutes, section 122A.62, 
  2.12  subdivision 3, a school district's per pupil levy allowance 
  2.13  under that subdivision for staff development for the 2003-2004 
  2.14  and 2004-2005 school years shall be no greater than it was for 
  2.15  the 2002-2003 school year, except as provided in section 37, 
  2.16  subdivision 5, paragraph (b). 
  2.17     Sec. 3.  [RETIREMENT AND SEVERANCE LEVY.] 
  2.18     Notwithstanding Minnesota Statutes, section 123A.39, 
  2.19  subdivision 3, a school district's levy for the 2003-2004 and 
  2.20  2004-2005 school years for severance pay or early retirement 
  2.21  incentives for licensed and nonlicensed staff who retire early 
  2.22  as the result of combination or cooperation shall be no greater 
  2.23  than it was for the 2002-2003 school year, except as provided in 
  2.24  section 37, subdivision 5, paragraph (b). 
  2.25     Sec. 4.  [TRANSITIONAL LEVIES.] 
  2.26     Notwithstanding Minnesota Statutes, sections 123A.41, 
  2.27  subdivision 4; and 123A.76, a school district's levy under those 
  2.28  sections for taxes payable in 2004 and 2005 shall be no greater 
  2.29  than it was for taxes payable in 2003, except as provided in 
  2.30  section 37, subdivision 5, paragraph (b). 
  2.31     Sec. 5.  [JOINT POWERS BOARD; EARLY RETIREMENT AND 
  2.32  SEVERANCE LEVY.] 
  2.33     Notwithstanding Minnesota Statutes, section 123A.444, a 
  2.34  school district's levy for the 2003-2004 and 2004-2005 school 
  2.35  years for severance pay and early retirement incentives to a 
  2.36  teacher as defined in Minnesota Statutes, section 122A.40, 
  3.1   subdivision 1, who is placed on unrequested leave as the result 
  3.2   of a cooperative secondary facility agreement, shall be no 
  3.3   greater than it was for the 2002-2003 school year, except as 
  3.4   provided in section 37, subdivision 5, paragraph (b). 
  3.5      Sec. 6.  [CONSOLIDATION; RETIREMENT LEVY.] 
  3.6      Notwithstanding Minnesota Statutes, section 123A.485, 
  3.7   subdivision 3, a school district's levy for retirement 
  3.8   incentives under Minnesota Statutes, section 123A.48, 
  3.9   subdivision 23, for the 2003-2004 and 2004-2005 school years 
  3.10  shall be no greater than it was for the 2002-2003 school year, 
  3.11  except as provided in section 37, subdivision 5, paragraph (b). 
  3.12     Sec. 7.  [OPERATING DEBT LEVIES.] 
  3.13     Notwithstanding Minnesota Statutes, section 123A.73, 
  3.14  subdivision 9; 126C.41, subdivision 2; 126C.42; or Laws 1992, 
  3.15  chapter 499, article 7, section 14, a school district's levy as 
  3.16  otherwise authorized under those sections for the 2003-2004 and 
  3.17  2004-2005 school years shall be no greater than it was for the 
  3.18  2002-2003 school year, except as provided in section 37, 
  3.19  subdivision 5, paragraph (b).  To the extent this prevents a 
  3.20  district from amortizing its reorganization operating debt as 
  3.21  defined in Minnesota Statutes, section 123B.82, clause (1), in 
  3.22  five years the district shall be permitted to levy the remainder 
  3.23  in a subsequent year. 
  3.24     Sec. 8.  [HEALTH AND SAFETY LEVY.] 
  3.25     Notwithstanding Minnesota Statutes, section 123B.57, 
  3.26  subdivisions 4 and 7, a school district's levy for a health and 
  3.27  safety program under Minnesota Statutes, section 123B.57, for 
  3.28  the 2003-2004 and 2004-2005 school years shall be no greater 
  3.29  than it was for the 2002-2003 school year, except as provided in 
  3.30  section 37, subdivision 5, paragraph (b). 
  3.31     Sec. 9.  [HANDICAPPED ACCESS AND FIRE SAFETY LEVY.] 
  3.32     Notwithstanding Minnesota Statutes, section 123B.58, 
  3.33  subdivisions 3 and 4, a school district's levy for purposes of 
  3.34  Minnesota Statutes, section 123B.58, subdivisions 1 and 2, for 
  3.35  the 2003-2004 and 2004-2005 school years shall be no greater 
  3.36  than it was for the 2002-2003 school year.  If the resulting 
  4.1   levy is less than the school district would have levied under 
  4.2   Minnesota Statutes, section 123B.58, subdivision 3, the district 
  4.3   may levy the difference in the 2005-2006 school year 
  4.4   notwithstanding the eight-year limitation in Minnesota Statutes, 
  4.5   section 123B.58, subdivision 3. 
  4.6      Sec. 10.  [ALTERNATIVE FACILITIES LEVY.] 
  4.7      (a) Notwithstanding Minnesota Statutes, section 123B.59, 
  4.8   subdivision 1, a school district that does not meet the 
  4.9   qualifications in the 2002-2003 school year for the alternative 
  4.10  facilities bonding and levy program under that subdivision is 
  4.11  not eligible to meet the qualifications for the program during 
  4.12  the 2003-2004 and 2004-2005 school years. 
  4.13     (b) Notwithstanding Minnesota Statutes, section 123B.59, 
  4.14  subdivisions 1, 2, and 5, the commissioner of the department of 
  4.15  children, families, and learning shall not approve a ten-year 
  4.16  facility plan for a school district under Minnesota Statutes, 
  4.17  section 123B.59, subdivision 2, that includes levies under the 
  4.18  alternative facilities levy program under Minnesota Statutes, 
  4.19  section 123B.59, subdivision 5, for the 2003-2004 and 2004-2005 
  4.20  school years that are in excess of the levies for the program 
  4.21  for the 2002-2003 school year, except as provided in section 37, 
  4.22  subdivision 5, paragraph (b). 
  4.23     (c) Notwithstanding Minnesota Statutes, section 123B.59, 
  4.24  after March 31, 2003, no school district may sell bonds under 
  4.25  that section, the debt service payments of which would require a 
  4.26  levy first becoming payable in 2004 or 2005.  This restriction 
  4.27  shall not apply to: 
  4.28     (1) refunding bonds sold to refund bonds originally sold 
  4.29  before April 1, 2003; or 
  4.30     (2) bonds for which the amount of the levy first becoming 
  4.31  due in 2004 or 2005 would not exceed the amount by which the 
  4.32  school district's total levy for debt service on bonds for taxes 
  4.33  payable in 2004 or 2005 prior to issuance of those bonds is less 
  4.34  than the municipality's total levy for debt service for bonds 
  4.35  for taxes payable in 2003. 
  4.36     (d) For the purposes of this section, bonds will be deemed 
  5.1   to have been sold before April 1, 2003, if: 
  5.2      (1) an agreement has been entered into between the school 
  5.3   district and a purchaser or underwriter for the sale of the 
  5.4   bonds by that date; 
  5.5      (2) the issuing school district is a party to a contract or 
  5.6   letter of understanding entered into before April 1, 2003, with 
  5.7   the federal government that requires the school district to pay 
  5.8   for a project and the project will be funded with proceeds of 
  5.9   the bonds; or 
  5.10     (3) the proceeds of the bonds will be used to fund a 
  5.11  project or acquisition with respect to which the school district 
  5.12  has entered into a contract with a builder or supplier before 
  5.13  April 1, 2003. 
  5.14     Sec. 11.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] 
  5.15     Notwithstanding Minnesota Statutes, section 124D.135, 
  5.16  subdivision 3, a school district's levy under that section for 
  5.17  school years 2003-2004 and 2004-2005 shall be no greater than it 
  5.18  was for the 2002-2003 school year, except as provided in section 
  5.19  37, subdivision 5, paragraph (b). 
  5.20     Sec. 12.  [HOME VISITATION LEVY.] 
  5.21     Notwithstanding Minnesota Statutes, section 124D.135, 
  5.22  subdivision 6, a school district's per pupil levy allowance 
  5.23  under that subdivision for education services and social 
  5.24  services for families with young children for the 2003-2004 and 
  5.25  2004-2005 school years shall be no greater than it was for the 
  5.26  2002-2003 school year. 
  5.27     Sec. 13.  [COMMUNITY EDUCATION LEVY.] 
  5.28     Notwithstanding Minnesota Statutes, section 124D.20, 
  5.29  subdivisions 5 and 6, the community education levy tax rate of a 
  5.30  school district for the 2003-2004 and 2004-2005 school years 
  5.31  shall be no greater than it was for the 2002-2003 school year. 
  5.32     Sec. 14.  [ADDITIONAL COMMUNITY EDUCATION LEVY.] 
  5.33     Notwithstanding Minnesota Statutes, section 124D.21, a 
  5.34  school district's levy for early childhood family education 
  5.35  under that section for school years 2003-2004 and 2004-2005 
  5.36  shall be no greater than it was for the 2002-2003 school year, 
  6.1   except as provided in section 37, subdivision 5, paragraph (b). 
  6.2      Sec. 15.  [SCHOOL-AGE CARE LEVY.] 
  6.3      Notwithstanding Minnesota Statutes, section 124D.22, 
  6.4   subdivision 3, a school district's levy under that subdivision 
  6.5   for school years 2003-2004 and 2004-2005 shall be no greater 
  6.6   than it was for the 2002-2003 school year, except as provided in 
  6.7   section 37, subdivision 5, paragraph (b). 
  6.8      Sec. 16.  [PROGRAMS FOR ADULTS WITH DISABILITIES; LEVY.] 
  6.9      Notwithstanding Minnesota Statutes, section 124D.56, 
  6.10  subdivision 3, a school district's levy for community education 
  6.11  programs for adults with disabilities for the 2003-2004 and 
  6.12  2004-2005 school years shall be no greater than it was for the 
  6.13  2002-2003 school year. 
  6.14     Sec. 17.  [INTEGRATION REVENUE.] 
  6.15     Notwithstanding Minnesota Statutes, section 124D.86, 
  6.16  subdivision 3, a school district that is not eligible for 
  6.17  integration revenue under that subdivision in the 2002-2003 
  6.18  school year should not be eligible under that subdivision in the 
  6.19  2003-2004 and 2004-2005 school years. 
  6.20     Sec. 18.  [LEVY TO RENT OR LEASE A BUILDING OR LAND.] 
  6.21     (a) For the purposes of this section, the "capital 
  6.22  expenditure levy allowance" for each school district is defined 
  6.23  as the total levy authorized under Minnesota Statutes, section 
  6.24  126C.40, subdivision 1, in taxes payable in 2003 divided by the 
  6.25  resident pupil units for school year 2002-2003. 
  6.26     (b) Notwithstanding Minnesota Statutes, section 126C.40, 
  6.27  subdivision 1, after April 1, 2003, the commissioner of 
  6.28  children, families, and learning shall not authorize any school 
  6.29  district to increase its capital expenditure levy allowance for 
  6.30  taxes payable in 2004 and 2005. 
  6.31     Sec. 19.  [LEVY FOR LEASE PURCHASE OR INSTALLMENT BUYS.] 
  6.32     (a) Except as provided in paragraph (b), notwithstanding 
  6.33  Minnesota Statutes, section 126C.40, subdivision 2, after March 
  6.34  31, 2003, no school district may enter into an installment 
  6.35  contract or a lease purchase agreement, the levy for which would 
  6.36  first become payable in 2004 or 2005, unless the district's 
  7.1   total levy for installment contracts and lease purchase 
  7.2   agreements for taxes payable in 2004 and 2005, including the 
  7.3   levy for the new obligation, would not exceed its levy for that 
  7.4   purpose for taxes payable in 2003. 
  7.5      (b) For the purposes of this section, an installment 
  7.6   contract or a lease purchase agreement is deemed to have been 
  7.7   entered into before April 1, 2003, if: 
  7.8      (1) an agreement has been entered into between the school 
  7.9   district and a lessor or seller by that date; 
  7.10     (2) the school district is a party to a contract or letter 
  7.11  of understanding entered into before April 1, 2003, with the 
  7.12  federal government that requires the school district to pay for 
  7.13  a project and the project will be funded with the proceeds of an 
  7.14  installment contract or a lease purchase agreement; or 
  7.15     (3) an installment contract or a lease purchase agreement 
  7.16  will be used to fund a project or acquisition with respect to 
  7.17  which the school district has entered into a contract with a 
  7.18  builder or supplier before April 1, 2003. 
  7.19     Sec. 20.  [COOPERATING DISTRICTS; CAPITAL LEVY.] 
  7.20     Notwithstanding Minnesota Statutes, section 126C.40, 
  7.21  subdivision 3, a school district's levy under that subdivision 
  7.22  for the 2003-2004 and 2004-2005 school years shall be no greater 
  7.23  than it was for the 2002-2003 school year. 
  7.24     Sec. 21.  [ENERGY CONSERVATION LEVY.] 
  7.25     Notwithstanding Minnesota Statutes, section 126C.40, 
  7.26  subdivision 5, a school district may not enter into a loan under 
  7.27  Minnesota Statutes, section 216C.37, or sections 298.292 to 
  7.28  298.298 after March 31, 2003, if the levy repayment of the loan 
  7.29  would first become payable in 2004 or 2005. 
  7.30     Sec. 22.  [HEALTH INSURANCE LEVY.] 
  7.31     Notwithstanding Minnesota Statutes, section 126C.41, 
  7.32  subdivision 1, or Laws 1993, chapter 224, article 8, section 18, 
  7.33  a school district's levy for insurance for retired employees as 
  7.34  otherwise authorized under those provisions of law for taxes 
  7.35  payable in 2004 and 2005 shall be no greater than it was for 
  7.36  taxes payable in 2003. 
  8.1      Sec. 23.  [RETIRED EMPLOYEE HEALTH BENEFITS LEVY.] 
  8.2      Notwithstanding Minnesota Statutes, section 126C.41, 
  8.3   subdivision 2, a school district's retired employee health 
  8.4   benefits levy as otherwise authorized under that subdivision for 
  8.5   taxes payable in 2004 and 2005 shall be no greater than it was 
  8.6   for taxes payable in 2003. 
  8.7      Sec. 24.  [RETIREMENT LEVY.] 
  8.8      Notwithstanding Minnesota Statutes, section 126C.41, 
  8.9   subdivision 3, a school district's levy as otherwise authorized 
  8.10  under that subdivision for taxes payable in 2004 and 2005 shall 
  8.11  be no greater than it was for taxes payable in 2003. 
  8.12     Sec. 25.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] 
  8.13     Notwithstanding Minnesota Statutes, section 126C.41, 
  8.14  subdivision 4, the tax rate for special school district No. 1, 
  8.15  Minneapolis, as otherwise authorized under that subdivision for 
  8.16  the 2003-2004 and 2004-2005 school year shall be no greater than 
  8.17  it was during the 2002-2003 school year. 
  8.18     Sec. 26.  [STATUTORY OPERATING DEBT LEVY.] 
  8.19     Notwithstanding Minnesota Statutes, section 126C.42, a 
  8.20  school district's levy as otherwise authorized under that 
  8.21  section for the 2003-2004 and 2004-2005 school years shall be no 
  8.22  greater than it was during the 2002-2003 school year, except as 
  8.23  provided in section 37, subdivision 5, paragraph (b). 
  8.24     Sec. 27.  [LEVY FOR STATUTORY OBLIGATIONS.] 
  8.25     Notwithstanding Minnesota Statutes, section 126C.43, a 
  8.26  school district's levies as otherwise authorized under that 
  8.27  section for the 2003-2004 and 2004-2005 school years shall be no 
  8.28  greater than they were for the 2002-2003 school year. 
  8.29     Sec. 28.  [SAFE SCHOOLS LEVY.] 
  8.30     Notwithstanding Minnesota Statutes, section 126C.44, a 
  8.31  school district's per pupil levy allowance as otherwise 
  8.32  authorized under that section for the 2003-2004 and 2004-2005 
  8.33  school years shall be no greater than it was for the 2002-2003 
  8.34  school year. 
  8.35     Sec. 29.  [TREE GROWTH REPLACEMENT REVENUE LEVY.] 
  8.36     Notwithstanding Minnesota Statutes, section 126C.445, a 
  9.1   school district's levy as otherwise authorized under that 
  9.2   section for the 2003-2004 and 2004-2005 school years shall be no 
  9.3   greater than it was for the 2002-2003 school year. 
  9.4      Sec. 30.  [ICE ARENA LEVY.] 
  9.5      Notwithstanding Minnesota Statutes, section 126C.45, a 
  9.6   school district's levy as otherwise authorized under that 
  9.7   section for the 2003-2004 and 2004-2005 school years shall be no 
  9.8   greater than it was for the 2002-2003 school year. 
  9.9      Sec. 31.  [SWIMMING POOL LEVY.] 
  9.10     Notwithstanding Minnesota Statutes, section 126C.455, a 
  9.11  school district's levy as otherwise authorized under that 
  9.12  section for the 2003-2004 and 2004-2005 school years shall be no 
  9.13  greater than it was for the 2002-2003 school year. 
  9.14     Sec. 32.  [ABATEMENT LEVY.] 
  9.15     Notwithstanding Minnesota Statutes, section 126C.46, a 
  9.16  school district's levy as otherwise authorized under that 
  9.17  section for the 2003-2004 and 2004-2005 school years shall be no 
  9.18  greater than it was for the 2002-2003 school year. 
  9.19     Sec. 33.  [LEVY FOR TACONITE PAYMENT.] 
  9.20     Notwithstanding Minnesota Statutes, section 126C.48, 
  9.21  subdivision 8, a school district's levy reduction as otherwise 
  9.22  authorized under that subdivision for the 2003-2004 and 
  9.23  2004-2005 school years shall be no less than it was for the 
  9.24  2002-2003 school year.  General education aid reduction for the 
  9.25  2003-2004 and 2004-2005 school years shall be governed by 
  9.26  Minnesota Statutes, section 126C.21, subdivision 4, and the levy 
  9.27  reduction as dictated by this section. 
  9.28     Sec. 34.  [LOST INTEREST EARNINGS LEVY.] 
  9.29     Notwithstanding Laws 2002, chapter 377, article 5, section 
  9.30  5, a school district's levy authorized under this section for 
  9.31  taxes payable in 2004 and 2005 shall not exceed the school 
  9.32  district's levy for taxes payable in 2003. 
  9.33     Sec. 35.  [BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.] 
  9.34     Notwithstanding Minnesota Statutes, section 272.67, 
  9.35  subdivision 6, the benefit ratio used for apportioning levies to 
  9.36  a rural service district for taxes payable in 2004 and 2005 
 10.1   shall not be greater than that in effect for taxes payable in 
 10.2   2003. 
 10.3      Sec. 36.  [PROHIBITION AGAINST INCURRING NEW DEBT.] 
 10.4      Subdivision 1.  [GENERALLY.] (a) After May 31, 2003, no 
 10.5   municipality as defined in Minnesota Statutes, section 475.51, 
 10.6   or any special taxing district as defined under Minnesota 
 10.7   Statutes, section 275.066, may sell obligations, certificates of 
 10.8   indebtedness, or capital notes under Minnesota Statutes, chapter 
 10.9   475, section 412.301, or any other law authorizing obligations, 
 10.10  certificates of indebtedness, capital notes, or other debt 
 10.11  instruments or enter into installment purchase contracts or 
 10.12  lease purchase agreements under Minnesota Statutes, section 
 10.13  465.71, or any other law authorizing installment purchase 
 10.14  contracts or lease purchase agreements if issuing those debt 
 10.15  instruments or entering into those contracts would require a 
 10.16  levy first becoming payable in 2004 or 2005.  This restriction 
 10.17  does not apply to (1) bonds authorized by a referendum election, 
 10.18  (2) refunding bonds sold to refund bonds originally sold before 
 10.19  June 1, 2003, or (3) obligations for which the amount of the 
 10.20  levy first becoming due in 2004 would not exceed the amount by 
 10.21  which the municipality's total debt service levy for taxes 
 10.22  payable in 2004 prior to issuance of those obligations is less 
 10.23  than the municipality's total debt service levy for taxes 
 10.24  payable in 2003.  As used in clause (3), "obligations" includes 
 10.25  certificates of indebtedness, capital notes, or other debt 
 10.26  instruments or installment purchase contracts or lease purchase 
 10.27  agreements. 
 10.28     (b) For purposes of this section, bonds will be deemed to 
 10.29  have been sold before June 1, 2003, if: 
 10.30     (1) an agreement has been entered into between the 
 10.31  municipality and a purchaser or underwriter for the sale of the 
 10.32  bonds by that date; 
 10.33     (2) the issuing municipality is a party to a contract or 
 10.34  letter of understanding entered into before June 1, 2003, with 
 10.35  the federal government or the state government that requires the 
 10.36  municipality to pay for a project, and the project will be 
 11.1   funded with the proceeds of the bonds; or 
 11.2      (3) the proceeds of the bonds will be used to fund a 
 11.3   project or acquisition with respect to which the municipality 
 11.4   has entered into a contract with a builder or supplier before 
 11.5   June 1, 2003.  Debt service payments due on bonds described in 
 11.6   this paragraph during calendar years 2004 and 2005 will be paid 
 11.7   by the state.  The amount of those payments must be repaid by 
 11.8   the municipality to the state in three equal annual installments 
 11.9   beginning in 2006.  No interest will be due on those payments if 
 11.10  timely paid by June 15 of the year due. 
 11.11     Subd. 2.  [EXCEPTION.] Notwithstanding subdivision 1, 
 11.12  certificates of indebtedness, capital notes, installment 
 11.13  purchase contracts, lease purchase agreements or any other debt 
 11.14  instruments, and the debt service levies for the obligations 
 11.15  shall, for purposes of this act, be treated as if sold prior to 
 11.16  June 1, 2003, if: 
 11.17     (1) the municipality or other governmental authority has 
 11.18  satisfied any one of the following conditions prior to June 1, 
 11.19  2003: 
 11.20     (i) it has adopted a resolution or ordinance authorizing 
 11.21  the issuance of the obligations; 
 11.22     (ii) it has declared official intent to issue the 
 11.23  obligations under federal tax laws and regulations; or 
 11.24     (iii) it has entered into a binding agreement to design or 
 11.25  construct a project or acquire property to be financed with the 
 11.26  obligations; and 
 11.27     (2) the municipality makes a finding at the time of the 
 11.28  sale of the bonds that no levy will be required for taxes 
 11.29  payable in 2004 or 2005 to pay the debt service on the 
 11.30  obligations because sufficient funds are available from 
 11.31  nonproperty tax sources to pay the debt service. 
 11.32     Sec. 37.  [LEVY LIMITATION FOR TAXES PAYABLE IN 2004 AND 
 11.33  2005.] 
 11.34     Subdivision 1.  [2004 AND 2005 PROPOSED LEVY.] 
 11.35  Notwithstanding any other law to the contrary, for purposes of 
 11.36  the certification required by Minnesota Statutes, section 
 12.1   275.065, subdivision 1, in 2003 and 2004, no taxing authority 
 12.2   other than a school district shall certify to the county auditor 
 12.3   a proposed property tax levy or, in the case of a township, a 
 12.4   final property tax levy, greater than the levy certified to the 
 12.5   county auditor pursuant to Minnesota Statutes, section 275.07, 
 12.6   subdivision 1, in the prior year, except as provided in 
 12.7   subdivisions 3 to 5.  Levies authorized by a referendum election 
 12.8   are not subject to limitation under this subdivision. 
 12.9      Subd. 2.  [2004 AND 2005 FINAL LEVY.] Notwithstanding any 
 12.10  other law to the contrary, for purposes of the certification 
 12.11  required by Minnesota Statutes, section 275.07, subdivision 1, 
 12.12  in 2003 and 2004, no taxing authority other than a school 
 12.13  district shall certify to the county auditor a property tax levy 
 12.14  greater than the amount certified to the county auditor pursuant 
 12.15  to Minnesota Statutes, section 275.07, subdivision 1, in the 
 12.16  prior year, except as provided in subdivisions 3 to 5.  Levies 
 12.17  authorized by a referendum election are not subject to 
 12.18  limitation under this subdivision. 
 12.19     Subd. 3.  [DEBT SERVICE EXCEPTION.] If a payable 2004 or 
 12.20  2005 levy for debt service on obligations, certificates of 
 12.21  indebtedness, capital notes, or other debt instruments sold 
 12.22  prior to June 1, 2003, or to make payments on installment 
 12.23  purchase contracts or lease purchase agreements entered into 
 12.24  prior to June 1, 2003, exceeds the levy a taxing authority 
 12.25  certified pursuant to Minnesota Statutes, section 275.07, 
 12.26  subdivision 1, for taxes payable in 2003 for the same purpose, 
 12.27  the excess may be levied notwithstanding the limitations of 
 12.28  subdivisions 1 and 2. 
 12.29     Subd. 4.  [ANNEXATION EXCEPTION.] The city tax rate for 
 12.30  taxes payable in 2004 or 2005 on any property annexed under 
 12.31  Minnesota Statutes, chapter 414, may not be increased over the 
 12.32  city or township tax rate in effect on the property in 2003, 
 12.33  notwithstanding any law, municipal board order, or ordinance to 
 12.34  the contrary.  The limit on the annexing city's levy under 
 12.35  subdivisions 1 and 2 may be increased in excess of that limit by 
 12.36  an amount equal to the net tax capacity of the property annexed 
 13.1   times the city or township tax rate in effect on that property 
 13.2   for taxes payable in 2003.  The levy limit of the city or 
 13.3   township from which the property was annexed shall be reduced by 
 13.4   the same amount. 
 13.5      Subd. 5.  [INCREASE AUTHORIZED.] (a) A taxing authority 
 13.6   other than a school district may increase its levy for taxes 
 13.7   payable in 2004 or 2005 over that certified to the county 
 13.8   pursuant to Minnesota Statutes, section 275.07, subdivision 1, 
 13.9   in the prior year by an amount equal to the taxing authority's 
 13.10  net tax capacity for the current levy year, multiplied by its 
 13.11  tax rate for taxes payable in 2003, less the taxing authority's 
 13.12  levy under subdivision 1. 
 13.13     (b) A school district may increase its levy for the 
 13.14  purposes of sections 2 to 6, 8, 11, 14, 15, and 26 for taxes 
 13.15  payable in 2004 or 2005 over that certified to the county 
 13.16  pursuant to Minnesota Statutes, section 275.07, subdivision 1, 
 13.17  for those purposes in the prior year by an amount equal to the 
 13.18  school district's net tax capacity for the current levy year, 
 13.19  multiplied by its tax rate for taxes payable in 2003, less the 
 13.20  taxing authority's levy under sections 2 to 6, 8, 11, 14, 15, 
 13.21  and 26. 
 13.22     Sec. 38.  [FREEZE ON LOCAL MATCH REQUIREMENTS.] 
 13.23     Notwithstanding any other law to the contrary, the local 
 13.24  funding or local match required from any city, town, or county 
 13.25  for any state grant or program shall not be increased for 
 13.26  calendar year 2004 or 2005 above the dollar amount of the local 
 13.27  funding or local match required for the same grant or program in 
 13.28  2003, regardless of the level of state funding provided.  Any 
 13.29  local match or local funding requirement that first becomes 
 13.30  effective after December 31, 2003, for new or changed state 
 13.31  grants or programs shall not be effective until calendar year 
 13.32  2006.  Nothing in this section shall affect the eligibility of a 
 13.33  city, town, or county for the receipt of state grants or program 
 13.34  funds in 2004 or 2005 or reduce the amount of state funding a 
 13.35  city, town, or county would otherwise receive in 2004 or 2005 if 
 13.36  the local match requirements of the state grant or program were 
 14.1   met in 2003. 
 14.2      Sec. 39.  [SUSPENSION OF SALARY AND BUDGET APPEAL 
 14.3   AUTHORIZATION.] 
 14.4      After February 28, 2003, no county sheriff may exercise the 
 14.5   authority granted under Minnesota Statutes, section 387.20, 
 14.6   subdivision 7, and no county attorney may exercise the authority 
 14.7   granted under Minnesota Statutes, section 388.18, subdivision 6, 
 14.8   to the extent that the salary or budget increase sought in the 
 14.9   appeal would result in an increase in county expenditures in 
 14.10  calendar year 2004 or 2005. 
 14.11     Sec. 40.  [SUSPENSION OF PUBLICATION AND HEARING 
 14.12  REQUIREMENTS.] 
 14.13     A local taxing authority is not required to comply with the 
 14.14  public advertisement notice of Minnesota Statutes, section 
 14.15  275.065, subdivision 5a, or the public hearing requirement of 
 14.16  Minnesota Statutes, section 275.065, subdivision 6, with respect 
 14.17  to taxes levied in 2003 and 2004, payable in 2004 and 2005, only.
 14.18     Sec. 41.  [FISCAL DISPARITIES FREEZE.] 
 14.19     Notwithstanding Minnesota Statutes, section 276A.06, 
 14.20  subdivision 2, paragraph (a), or 473F.08, subdivision 2, 
 14.21  paragraph (a), the amount to be deducted from a governmental 
 14.22  unit's net tax capacity for taxes payable in 2004 and 2005 under 
 14.23  that clause must equal the amount deducted for taxes payable in 
 14.24  2003.  Notwithstanding Minnesota Statutes, section 276A.06, 
 14.25  subdivision 2, paragraph (b), or 473F.08, subdivision 2, 
 14.26  paragraph (b), the amount to be added to a governmental unit's 
 14.27  net tax capacity for taxes payable in 2004 and 2005 under that 
 14.28  clause must equal the same amount added for taxes payable in 
 14.29  2003.  Notwithstanding Minnesota Statutes, section 276A.06, 
 14.30  subdivision 3, or 473F.08, subdivision 3, the areawide portion 
 14.31  of the levy for each governmental unit must be determined using 
 14.32  the local tax rate for the 2001 levy year.  
 14.33     Sec. 42.  [TAX RATE FREEZE; REDUCTION OF LEVY.] 
 14.34     If in the course of determining local tax rates for taxes 
 14.35  payable in 2004 or 2005 after reductions for disparity reduction 
 14.36  aid under Minnesota Statutes, section 275.08, subdivisions 1c 
 15.1   and 1d, the county auditor finds the local tax rate exceeds that 
 15.2   in effect for taxes payable in 2003, the county auditor shall 
 15.3   reduce the local government's levy so that the local tax rate 
 15.4   does not exceed that in effect for taxes payable in 2003, 
 15.5   adjusted as provided in section 37, subdivisions 3 to 5. 
 15.6      Sec. 43.  [PENSION LIABILITIES.] 
 15.7      Notwithstanding any other law or charter provision to the 
 15.8   contrary, no levy for taxes payable in 2004 or 2005 for a local 
 15.9   police and fire relief association for the purpose of amortizing 
 15.10  an unfunded pension liability may exceed the levy for that 
 15.11  purpose for taxes payable in 2003. 
 15.12     Sec. 44.  [DUTIES OF TOWNSHIP BOARD OF SUPERVISORS.] 
 15.13     Notwithstanding Minnesota Statutes, section 365.10, in 2003 
 15.14  the township board of supervisors shall adjust the levy and in 
 15.15  2004 the township board of supervisors may adjust the 
 15.16  expenditures of a township below the level authorized by the 
 15.17  electors to adjust for any reduction in the previously 
 15.18  authorized levy of the township pursuant to section 37. 
 15.19     Sec. 45.  [SAVINGS CLAUSE.] 
 15.20     Notwithstanding any provision in this act, nothing in this 
 15.21  act constitutes an impairment of any obligations, certificates 
 15.22  of indebtedness, capital notes, or other debt instruments, 
 15.23  including installment purchase contracts or lease purchase 
 15.24  agreements, issued before the date of final enactment of this 
 15.25  act, by a municipality as defined in Minnesota Statutes, section 
 15.26  469.174, subdivision 6, or a special taxing district as defined 
 15.27  in Minnesota Statutes, section 275.066. 
 15.28     Sec. 46.  [EFFECTIVE DATE.] 
 15.29     Sections 1 to 45 are effective for taxes payable in 2004 
 15.30  and 2005 only.