as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxes; local government aid to cities; 1.3 reducing the city aid base as aid appropriations 1.4 increase; amending Minnesota Statutes 1998, sections 1.5 477A.011, subdivision 37; and 477A.013, subdivision 9. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 1998, section 477A.011, 1.8 subdivision 37, is amended to read: 1.9 Subd. 37. [BASE REDUCTIONPERCENTAGERATIO.] "Base 1.10 reductionpercentageratio" is (1) the difference between the 1.11 amount available for city aid under section 477A.03 for the year 1.12 for which aid is being calculated and the amount available for 1.13 city aid under section 477A.03 for calendar year19941999, (2) 1.14 divided by the sum of the city aid base for all citiesand (3)1.15multiplied by 100. The reductionpercentageratio for any year 1.16 may not be less than the reductionpercentageratio from the 1.17 previous year.For aid paid in calendar year 1994, the1.18reduction percentage is zero.The reductionpercentageratio 1.19 may not be more than100 percentone. 1.20 Sec. 2. Minnesota Statutes 1998, section 477A.013, 1.21 subdivision 9, is amended to read: 1.22 Subd. 9. [CITY AID DISTRIBUTION.] (a) In calendar year 1.2319942000 and thereafter, each city shall receive an aid 1.24 distribution equal to the sum of (1) the city formula aid under 1.25 subdivision 8, and (2) its city aid base multiplied by the 2.1 difference between one and the base reduction ratio. 2.2 (b) The percentage increase for a first class city in 2.3 calendar year 1995 and thereafter shall not exceed the 2.4 percentage increase in the sum of the aid to all cities under 2.5 this section in the current calendar year compared to the sum of 2.6 the aid to all cities in the previous year. 2.7 (c) The total aid for any city, except a first class city, 2.8 shall not exceed the sum of (1) ten percent of the city's net 2.9 levy for the year prior to the aid distribution plus (2) its 2.10 total aid in the previous year before any increases or decreases 2.11 under sections 16A.711, subdivision 5, and 477A.0132. 2.12(d) Notwithstanding paragraph (c), in 1995 only, for cities2.13which in 1992 or 1993 transferred an amount from governmental2.14funds to their sewer and water fund in an amount greater than2.15their net levy for taxes payable in the year in which the2.16transfer occurred, the total aid shall not exceed the sum of (1)2.1720 percent of the city's net levy for the year prior to the aid2.18distribution plus (2) its total aid in the previous year before2.19any increases or decreases under sections 16A.711, subdivision2.205, and 477A.0132.2.21 Sec. 3. [EFFECTIVE DATE.] 2.22 Sections 1 and 2 are effective for aid payable in calendar 2.23 year 2000 and thereafter.