Minnesota Legislature
HF 1746
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:09pm
Current Version - as introduced
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A bill for an act
relating to local government; special service districts; allowing multiunit residential
property to pay service charges; amending Minnesota Statutes 2020, sections
428A.01, by adding subdivisions; 428A.02, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 428A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Multiunit residential petitioners. new text end
new text begin
"Multiunit residential petitioners" means a
group of owners, individuals, or business organizations that may be subject to service charges
on multiunit residential property due to the election made by nonresidential petitioners under
section 428A.021.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end
Sec. 2.
Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:
new text begin Subd. 8. new text end
new text begin Multiunit residential property. new text end
new text begin
"Multiunit residential property" means:
new text end
new text begin
(1) property classified as 4a under section 273.13, subdivision 25, paragraph (a);
new text end
new text begin
(2) condominiums, as defined under section 515A.1-103, clause (7), that are classified
as 1a under section 273.13, subdivision 22, paragraph (a), or 4b under section 273.13,
subdivision 25, paragraph (b), clause (1);
new text end
new text begin
(3) condominium storage units classified as 4bb under section 273.13, subdivision 25,
paragraph (c), clause (3); and
new text end
new text begin
(4) a duplex or triplex classified as 1a under section 273.13, subdivision 22, paragraph
(a), or classified as 4b under section 273.13, subdivision 25, paragraph (b), clause (1).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end
Sec. 3.
Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:
new text begin Subd. 9. new text end
new text begin Nonresidential property. new text end
new text begin
"Nonresidential property" means property that is
classified under section 273.13 and used for commercial, industrial, or public utility purposes,
or is vacant land zoned or designated on a land use plan for commercial or industrial use.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end
Sec. 4.
Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:
new text begin Subd. 10. new text end
new text begin Nonresidential petitioners. new text end
new text begin
"Nonresidential petitioners" means a group of
owners, individuals, or business organizations meeting the percentage requirements under
section 428A.08 that may be subject to service charges on nonresidential property.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end
Sec. 5.
Minnesota Statutes 2020, section 428A.02, subdivision 1, is amended to read:
Subdivision 1.
Ordinance.
The governing body of a city may adopt an ordinance
establishing a special service district. new text begin Except as otherwise provided in section 428A.021,
new text end only new text begin nonresidential new text end property deleted text begin that is classified under section 273.13 and used for commercial,
industrial, or public utility purposes, or is vacant land zoned or designated on a land use
plan for commercial or industrial use anddeleted text end located in the special service districtdeleted text begin ,deleted text end may be
subject to the charges imposed by the city on the special service district. Other types of
property may be included within the boundaries of the special service district but are not
subject to the levies or charges imposed by the city on the special service districtnew text begin , unless an
election under section 428A.021 is madenew text end . If 50 percent or more of the estimated market
value of a parcel of property is classified under section 273.13 as commercial, industrial,
or vacant land zoned or designated on a land use plan for commercial or industrial use, or
public utility for the current assessment year, then the entire taxable market value of the
property is subject to a service charge based on net tax capacity for purposes of sections
428A.01 to 428A.10. The ordinance shall describe with particularity the area within the city
to be included in the district and the special services to be furnished in the district. The
ordinance may not be adopted until after a public hearing has been held on the question.
Notice of the hearing shall include the time and place of hearing, a map showing the
boundaries of the proposed district, and a statement that all persons owning property in the
proposed district that would be subject to a service charge will be given opportunity to be
heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision,
the governing body shall send a copy of the ordinance to the commissioner of revenue.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end
Sec. 6.
new text begin
[428A.021] ELECTION TO INCLUDE MULTIUNIT RESIDENTIAL
PROPERTY.
new text end
new text begin Subdivision 1. new text end
new text begin Multiunit residential property; election. new text end
new text begin
Prior to filing a petition with
the city clerk under section 428A.08, a majority of the nonresidential petitioners may elect
to subject multiunit residential property to the charges imposed by the city on a special
service district. The election must be filed with the city clerk. If an election is made, for
purposes of section 428A.08, "property" as used in that section includes multiunit residential
property.
new text end
new text begin Subd. 2. new text end
new text begin Multiunit residential property; expansion. new text end
new text begin
Property subject to a service
charge in an existing special service district may be expanded to multiunit residential property
only after the governing body of the city provides for a hearing and notice as required in
sections 428A.02 and 428A.03. Notice must be served in the original district and must
include the property proposed to be added to the district. Multiunit residential property
added to the district is subject to all service charges imposed within the district after the
property becomes a part of the district. On the question of whether to expand a district to
include multiunit residential property, the petition requirement in section 428A.08 and the
veto power in section 428A.09 apply only to multiunit residential petitioners.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end