HF 1944

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for the creation of 
  1.3             special taxing districts to capture incremental 
  1.4             property to finance operating costs of light rail 
  1.5             transit; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 473. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [473.450] [SPECIAL TAXING DISTRICTS FOR LRT.] 
  1.9      Subdivision 1.  [CREATION.] The council shall establish a 
  1.10  special taxing district to pay for the cost of operating a light 
  1.11  rail transit line to the extent fare revenues are insufficient 
  1.12  to cover those costs. 
  1.13     Subd. 2.  [AREA OF DISTRICT.] The special taxing district 
  1.14  consists of the area comprised of any parcel of property 
  1.15  located, in whole or part, within 1,000 feet of the right-of-way 
  1.16  for the light rail transit line and classified as class 3 
  1.17  property or class 4 property. 
  1.18     Subd. 3.  [REVENUES.] (a) The revenues of the district are 
  1.19  the property tax increments attributable to the increase in the 
  1.20  net tax capacity of the district that occurs after its 
  1.21  certification.  The tax increments must be computed in the 
  1.22  manner provided in this subdivision. 
  1.23     (b) Upon the request of the council, the county auditor 
  1.24  shall certify the net tax capacity of all taxable property 
  1.25  within the area of the special taxing district.  Certification 
  1.26  of original net tax capacity, captured net tax capacity, and 
  2.1   computation of tax increment must be done following the 
  2.2   procedures and methods provided under section 469.177 with the 
  2.3   following exceptions: 
  2.4      (1) the current tax rate must be used, rather than the 
  2.5   original tax rate under section 469.177, subdivision 1a; 
  2.6      (2) computations of increment must be made using the option 
  2.7   under section 469.177, subdivision 3, paragraph (b); 
  2.8      (3) the county auditor shall annually adjust the original 
  2.9   tax capacity of the district by the average percentage change in 
  2.10  the tax capacity of class 3 property in the county over the 
  2.11  previous assessment year.  Increases attributable to new 
  2.12  improvements that became taxable in that assessment year must be 
  2.13  excluded in calculating the average. 
  2.14     (c) The county auditor shall pay the tax increment to the 
  2.15  council.  Revenues may only be used for the operating costs of 
  2.16  light rail transit. 
  2.17     (d) The restrictions on or requirements for tax increment 
  2.18  financing districts under sections 469.174 to 469.178 do not 
  2.19  apply to a special taxing district, except as provided in 
  2.20  paragraph (b) and as follows: 
  2.21     (1) the county may deduct its cost of administration as 
  2.22  permitted under section 469.176, subdivision 4h, paragraph (a); 
  2.23  and 
  2.24     (2) to the extent that revenues under this section exceed 
  2.25  the projected cost of light rail transit operations that exceed 
  2.26  fare and other revenues, the excess must be distributed as 
  2.27  provided under section 469.176, subdivision 2, clause (4). 
  2.28     Subd. 4.  [TIF AND ABATEMENT.] No tax increment financing 
  2.29  district may be created under sections 469.174 to 469.178 within 
  2.30  the area of the special taxing district as defined under 
  2.31  subdivision 2.  No abatement of the incremental tax under 
  2.32  subdivision 3 may be made under sections 469.1812 to 469.1815. 
  2.33     [EFFECTIVE DATE.] This section is effective beginning for 
  2.34  property taxes payable in 2003.  Subdivision 4 applies to 
  2.35  requests for certification of tax increment financing districts 
  2.36  made after the day following final enactment.