HF 1967

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for increased local 
  1.3             government aid distributions for cities in which 
  1.4             commercial and industrial property market value is 
  1.5             reduced; amending Minnesota Statutes 1998, section 
  1.6             477A.011, subdivision 36. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 477A.011, 
  1.9   subdivision 36, is amended to read: 
  1.10     Subd. 36.  [CITY AID BASE.] (a) Except as provided in 
  1.11  paragraphs (b), (c), and (d), "city aid base" means, for each 
  1.12  city, the sum of the local government aid and equalization aid 
  1.13  it was originally certified to receive in calendar year 1993 
  1.14  under Minnesota Statutes 1992, section 477A.013, subdivisions 3 
  1.15  and 5, and the amount of disparity reduction aid it received in 
  1.16  calendar year 1993 under Minnesota Statutes 1992, section 
  1.17  273.1398, subdivision 3. 
  1.18     (b) For aids payable in 1996 and thereafter, a city that in 
  1.19  1992 or 1993 transferred an amount from governmental funds to 
  1.20  its sewer and water fund, which amount exceeded its net levy for 
  1.21  taxes payable in the year in which the transfer occurred, has a 
  1.22  "city aid base" equal to the sum of (i) its city aid base, as 
  1.23  calculated under paragraph (a), and (ii) one-half of the 
  1.24  difference between its city aid distribution under section 
  1.25  477A.013, subdivision 9, for aids payable in 1995 and its city 
  1.26  aid base for aids payable in 1995. 
  2.1      (c) The city aid base for any city with a population less 
  2.2   than 500 is increased by $40,000 for aids payable in calendar 
  2.3   year 1995 and thereafter, and the maximum amount of total aid it 
  2.4   may receive under section 477A.013, subdivision 9, paragraph 
  2.5   (c), is also increased by $40,000 for aids payable in calendar 
  2.6   year 1995 only, provided that: 
  2.7      (i) the average total tax capacity rate for taxes payable 
  2.8   in 1995 exceeds 200 percent; 
  2.9      (ii) the city portion of the tax capacity rate exceeds 100 
  2.10  percent; and 
  2.11     (iii) its city aid base is less than $60 per capita. 
  2.12     (d) The city aid base for a city is increased by $20,000 in 
  2.13  1998 and thereafter and the maximum amount of total aid it may 
  2.14  receive under section 477A.013, subdivision 9, paragraph (c), is 
  2.15  also increased by $20,000 in calendar year 1998 only, provided 
  2.16  that: 
  2.17     (i) the city has a population in 1994 of 2,500 or more; 
  2.18     (ii) the city is located in a county, outside of the 
  2.19  metropolitan area, which contains a city of the first class; 
  2.20     (iii) the city's net tax capacity used in calculating its 
  2.21  1996 aid under section 477A.013 is less than $400 per capita; 
  2.22  and 
  2.23     (iv) at least four percent of the total net tax capacity, 
  2.24  for taxes payable in 1996, of property located in the city is 
  2.25  classified as railroad property. 
  2.26     (e) The city aid base for a city is increased by $200,000 
  2.27  in 1999 and thereafter and the maximum amount of total aid it 
  2.28  may receive under section 477A.013, subdivision 9, paragraph 
  2.29  (c), is also increased by $200,000 in calendar year 1999 only, 
  2.30  provided that: 
  2.31     (i) the city was incorporated as a statutory city after 
  2.32  December 1, 1993; 
  2.33     (ii) its city aid base does not exceed $5,600; and 
  2.34     (iii) the city had a population in 1996 of 5,000 or more. 
  2.35     (f) The city aid base for a city is increased by $450,000 
  2.36  in 1999 to 2008 and the maximum amount of total aid it may 
  3.1   receive under section 477A.013, subdivision 9, paragraph (c), is 
  3.2   also increased by $450,000 in calendar year 1999 only, provided 
  3.3   that: 
  3.4      (i) the city had a population in 1996 of at least 50,000; 
  3.5      (ii) its population had increased by at least 40 percent in 
  3.6   the ten-year period ending in 1996; and 
  3.7      (iii) its city's net tax capacity for aids payable in 1998 
  3.8   is less than $700 per capita. 
  3.9      (g) Beginning in 2002, the city aid base for a city is 
  3.10  equal to the sum of its city aid base in 2001 and the amount of 
  3.11  additional aid it was certified to receive under section 477A.06 
  3.12  in 2001.  For 2002 only, the maximum amount of total aid a city 
  3.13  may receive under section 477A.013, subdivision 9, paragraph 
  3.14  (c), is also increased by the amount it was certified to receive 
  3.15  under section 477A.06 in 2001. 
  3.16     (h) The city aid base for a city that has a population of 
  3.17  2,500 or less is permanently increased by $150,000 beginning 
  3.18  with aid distributions in any year following a year in which the 
  3.19  total market value of all commercial and industrial property in 
  3.20  the city as of the January 2 assessment date is ... percent or 
  3.21  more lower than the total market value of all commercial and 
  3.22  industrial property in the city as of the previous January 2 
  3.23  assessment date.  For any city that receives an aid increase 
  3.24  under this paragraph, the maximum amount of total aid it may 
  3.25  receive under section 477A.013, subdivision 9, paragraph (c), is 
  3.26  also increased by $150,000 in the first calendar year in which 
  3.27  the increased aid is paid. 
  3.28     Sec. 2.  [EFFECTIVE DATE.] 
  3.29     Section 1 is effective for aids paid in 2000 and subsequent 
  3.30  years.