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; making certain property tax 1.3 public hearings optional; requiring a reverse 1.4 referendum for property tax levy increases in counties 1.5 and certain cities; amending Minnesota Statutes 2000, 1.6 sections 275.065, subdivisions 3, 5a, 6, 8, by adding 1.7 a subdivision; 275.07, subdivision 1. 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. Minnesota Statutes 2000, section 275.065, 1.10 subdivision 3, is amended to read: 1.11 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 1.12 county auditor shall prepare and the county treasurer shall 1.13 deliver after November 10 and on or before November2417 each 1.14 year, by first class mail to each taxpayer at the address listed 1.15 on the county's current year's assessment roll, a notice of 1.16 proposed property taxes. 1.17 (b) The commissioner of revenue shall prescribe the form of 1.18 the notice. 1.19 (c) The notice must inform taxpayers that it contains the 1.20 amount of property taxes each taxing authority proposes to 1.21 collect for taxes payable the following year. In the case of a 1.22 town, or in the case of the state determined portion of the 1.23 school district levy, the final tax amount will be its proposed 1.24 tax. The notice must clearly state that each taxing authority, 1.25 including regional library districts established under section 1.26 134.201, and including the metropolitan taxing districts as 2.1 defined in paragraph (i), but excluding all other special taxing 2.2 districts, cities with a population of 500 or less, and towns, 2.3willmust hold a public meeting to receive public testimony on 2.4 the proposed budget and proposed or final property tax levy, or, 2.5 in case of a school district, on the current budget and proposed 2.6 property tax levy.ItIn the case of a county or a city with a 2.7 population over 500, a public hearing is not required if the 2.8 county's or city's proposed property tax levy has not increased 2.9 over the levy amount certified by the county or city under 2.10 section 275.07, subdivision 1, for the previous year. The 2.11 notice must clearly state the time and place of each taxing 2.12 authority's meetingandif one is to be held. It must also 2.13 state an address where comments will be received by mail, 2.14 whether or not a public hearing is held. 2.15 (d) The notice must state for each parcel: 2.16 (1) the market value of the property as determined under 2.17 section 273.11, and used for computing property taxes payable in 2.18 the following year and for taxes payable in the current year as 2.19 each appears in the records of the county assessor on November 1 2.20 of the current year; and, in the case of residential property, 2.21 whether the property is classified as homestead or 2.22 nonhomestead. The notice must clearly inform taxpayers of the 2.23 years to which the market values apply and that the values are 2.24 final values; 2.25 (2) the items listed below, shown separately by county, 2.26 city or town, state determined school tax net of the education 2.27 homestead credit under section 273.1382, voter approved school 2.28 levy, other local school levy, and the sum of the special taxing 2.29 districts, and as a total of all taxing authorities: 2.30 (i) the actual tax for taxes payable in the current year; 2.31 (ii) the tax change due to spending factors, defined as the 2.32 proposed tax minus the constant spending tax amount; 2.33 (iii) the tax change due to other factors, defined as the 2.34 constant spending tax amount minus the actual current year tax; 2.35 and 2.36 (iv) the proposed tax amount. 3.1 In the case of a town or the state determined school tax, 3.2 the final tax shall also be its proposed tax unless the town 3.3 changes its levy at a special town meeting under section 3.4 365.52. If a school district has certified under section 3.5 126C.17, subdivision 9, that a referendum will be held in the 3.6 school district at the November general election, the county 3.7 auditor must note next to the school district's proposed amount 3.8 that a referendum is pending and that, if approved by the 3.9 voters, the tax amount may be higher than shown on the notice. 3.10 In the case of the city of Minneapolis, the levy for the 3.11 Minneapolis library board and the levy for Minneapolis park and 3.12 recreation shall be listed separately from the remaining amount 3.13 of the city's levy. In the case of a parcel where tax increment 3.14 or the fiscal disparities areawide tax under chapter 276A or 3.15 473F applies, the proposed tax levy on the captured value or the 3.16 proposed tax levy on the tax capacity subject to the areawide 3.17 tax must each be stated separately and not included in the sum 3.18 of the special taxing districts; and 3.19 (3) the increase or decrease between the total taxes 3.20 payable in the current year and the total proposed taxes, 3.21 expressed as a percentage. 3.22 For purposes of this section, the amount of the tax on 3.23 homesteads qualifying under the senior citizens' property tax 3.24 deferral program under chapter 290B is the total amount of 3.25 property tax before subtraction of the deferred property tax 3.26 amount. 3.27 (e) The notice must clearly state that the proposed or 3.28 final taxes do not include the following: 3.29 (1) special assessments; 3.30 (2) levies approved by the voters after the date the 3.31 proposed taxes are certified, including bond referenda, school 3.32 district levy referenda, and levy limit increase referenda; 3.33 (3) amounts necessary to pay cleanup or other costs due to 3.34 a natural disaster occurring after the date the proposed taxes 3.35 are certified; 3.36 (4) amounts necessary to pay tort judgments against the 4.1 taxing authority that become final after the date the proposed 4.2 taxes are certified; and 4.3 (5) the contamination tax imposed on properties which 4.4 received market value reductions for contamination. 4.5 (f) Except as provided in subdivision 7, failure of the 4.6 county auditor to prepare or the county treasurer to deliver the 4.7 notice as required in this section does not invalidate the 4.8 proposed or final tax levy or the taxes payable pursuant to the 4.9 tax levy. 4.10 (g) If the notice the taxpayer receives under this section 4.11 lists the property as nonhomestead, and satisfactory 4.12 documentation is provided to the county assessor by the 4.13 applicable deadline, and the property qualifies for the 4.14 homestead classification in that assessment year, the assessor 4.15 shall reclassify the property to homestead for taxes payable in 4.16 the following year. 4.17 (h) In the case of class 4 residential property used as a 4.18 residence for lease or rental periods of 30 days or more, the 4.19 taxpayer must either: 4.20 (1) mail or deliver a copy of the notice of proposed 4.21 property taxes to each tenant, renter, or lessee; or 4.22 (2) post a copy of the notice in a conspicuous place on the 4.23 premises of the property. 4.24 The notice must be mailed or posted by the taxpayer by 4.25 November2718 or within three days of receipt of the notice, 4.26 whichever is later. A taxpayer may notify the county treasurer 4.27 of the address of the taxpayer, agent, caretaker, or manager of 4.28 the premises to which the notice must be mailed in order to 4.29 fulfill the requirements of this paragraph. 4.30 (i) For purposes of this subdivision, subdivisions 5a and 4.31 6, "metropolitan special taxing districts" means the following 4.32 taxing districts in the seven-county metropolitan area that levy 4.33 a property tax for any of the specified purposes listed below: 4.34 (1) metropolitan council under section 473.132, 473.167, 4.35 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 4.36 (2) metropolitan airports commission under section 473.667, 5.1 473.671, or 473.672; and 5.2 (3) metropolitan mosquito control commission under section 5.3 473.711. 5.4 For purposes of this section, any levies made by the 5.5 regional rail authorities in the county of Anoka, Carver, 5.6 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 5.7 398A shall be included with the appropriate county's levy and 5.8 shall be discussed at that county's public hearing, if held. 5.9 (j) If a statutory or home rule charter city or a town has 5.10 exercised the local levy option provided by section 473.388, 5.11 subdivision 7, it may include in the notice of its proposed 5.12 taxes the amount of its proposed taxes attributable to its 5.13 exercise of the option. In the first year of the city or town's 5.14 exercise of this option, the statement shall include an estimate 5.15 of the reduction of the metropolitan council's tax on the parcel 5.16 due to exercise of that option. The metropolitan council's levy 5.17 shall be adjusted accordingly. 5.18 [EFFECTIVE DATE.] This section is effective for notices 5.19 prepared in 2001 and thereafter. 5.20 Sec. 2. Minnesota Statutes 2000, section 275.065, 5.21 subdivision 5a, is amended to read: 5.22 Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a 5.23 population of more than 2,500, county, a metropolitan special 5.24 taxing district as defined in subdivision 3, paragraph (i), a 5.25 regional library district established under section 134.201, or 5.26 school district shall advertise in a newspaper a notice of its 5.27 intent to adopt a budget and property tax levy or, in the case 5.28 of a school district, to review its current budget and proposed 5.29 property taxes payable in the following year, at a public 5.30 hearing. In the case of a county or city that has a population 5.31 over 2,500, if its proposed property tax levy has not increased 5.32 over its levy amount certified under section 275.07, subdivision 5.33 1, for the previous year, no public hearing is required. The 5.34 notice must be published not less than two business days nor 5.35 more than six business days before the hearing, if required due 5.36 to a levy increase. Even if a hearing is not required, counties 6.1 and cities must continue to place an advertisement in the 6.2 newspaper informing taxpayers of the proposed budget and levy 6.3 amounts. 6.4 The advertisement must be at least one-eighth page in size 6.5 of a standard-size or a tabloid-size newspaper. The 6.6 advertisement must not be placed in the part of the newspaper 6.7 where legal notices and classified advertisements appear. The 6.8 advertisement must be published in an official newspaper of 6.9 general circulation in the taxing authority. The newspaper 6.10 selected must be one of general interest and readership in the 6.11 community, and not one of limited subject matter. The 6.12 advertisement must appear in a newspaper that is published at 6.13 least once per week. 6.14 For purposes of this section, the metropolitan special 6.15 taxing district's advertisement must only be published in the 6.16 Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 6.17 (b) The advertisement for school districts, metropolitan 6.18 special taxing districts, and regional library districts must be 6.19 in the following form, except that the notice for a school 6.20 district may include references to the current budget in regard 6.21 to proposed property taxes. 6.22 "NOTICE OF 6.23 PROPOSED PROPERTY TAXES 6.24 (School District/Metropolitan 6.25 Special Taxing District/Regional 6.26 Library District) of ......... 6.27 The governing body of ........ will soon hold budget hearings 6.28 and vote on the property taxes for (metropolitan special taxing 6.29 district/regional library district services that will be 6.30 provided in (year)/school district services that will be 6.31 provided in (year) and (year)). 6.32 NOTICE OF PUBLIC HEARING: 6.33 All concerned citizens are invited to attend a public hearing 6.34 and express their opinions on the proposed (school 6.35 district/metropolitan special taxing district/regional library 6.36 district) budget and property taxes, or in the case of a school 7.1 district, its current budget and proposed property taxes, 7.2 payable in the following year. The hearing will be held on 7.3 (Month/Day/Year) at (Time) at (Location, Address)." 7.4 (c)(1) If the city's or county's proposed property tax levy 7.5 has increased over its previous year's certified levy, the 7.6 advertisementfor cities and countiesmust be in the following 7.7 form. 7.8 "NOTICE OF PROPOSED 7.9 TOTAL BUDGET AND PROPERTY TAXES 7.10 The (city/county) governing body or board of commissioners will 7.11 hold a public hearing to discuss the budget and to vote on the 7.12 amount of property taxes to collect for services the 7.13 (city/county) will provide in (year). 7.14 7.15 SPENDING: The total budget amounts below compare 7.16 (city's/county's) (year) total actual budget with the amount the 7.17 (city/county) proposes to spend in (year). 7.18 7.19 (Year) Total Proposed (Year) Change from 7.20 Actual Budget Budget (Year)-(Year) 7.21 7.22 $....... $....... ...% 7.23 7.24 TAXES: The property tax amounts below compare that portion of 7.25 the current budget levied in property taxes in (city/county) for 7.26 (year) with the property taxes the (city/county) proposes to 7.27 collect in (year). 7.28 7.29 (Year) Property Proposed (Year) Change from 7.30 Taxes Property Taxes (Year)-(Year) 7.31 7.32 $....... $....... ...% 7.33 7.34 ATTEND THE PUBLIC HEARING 7.35 All (city/county) residents are invited to attend the public 7.36 hearing of the (city/county) to express your opinions on the 8.1 budget and the proposed amount of (year) property taxes. The 8.2 hearing will be held on: 8.3 (Month/Day/Year/Time) 8.4 (Location/Address) 8.5 If the discussion of the budget cannot be completed, a time and 8.6 place for continuing the discussion will be announced at the 8.7 hearing. You are also invited to send your written comments to: 8.8 (City/County) 8.9 (Location/Address)" 8.10 (2) If no hearing is required under this section for the 8.11 city or county, its advertisement must be in the following 8.12 form. The advertisement must clearly state that because the 8.13 proposed property tax levy amount is equal to or less than the 8.14 taxing authority's previous year's actual property tax levy, no 8.15 public hearing is required by law. 8.16 "NOTICE OF PROPOSED 8.17 TOTAL BUDGET AND PROPERTY TAXES 8.18 Although no public hearing will be held, the (city/county) 8.19 governing body or board of commissioners is planning to adopt 8.20 the following budget and property tax levy. 8.21 8.22 SPENDING: The total budget amounts below compare 8.23 (city's/county's) (year) total actual budget with the amount 8.24 (city/county) proposes to spend in (year). 8.25 8.26 (Year) Total Proposed (Year) Change from 8.27 Actual Budget Budget (Year)-(Year) 8.28 8.29 $....... $....... ...% 8.30 8.31 TAXES: The property tax amounts below compare that portion of 8.32 the current budget levied in property taxes in (city/county) for 8.33 (year) with the property taxes (city/county) proposes to collect 8.34 in (year). 8.35 8.36 (Year) Property Proposed (Year) Change from 9.1 Taxes Property Taxes (Year)-(Year) 9.2 9.3 $....... $....... ...% 9.4 Although no public hearing will be held, you are invited to 9.5 send any written comments to: 9.6 (City/County) 9.7 (Location/Address)" 9.8 (3) If the city's governing body or county board of 9.9 commissioners decides to hold a public hearing on the proposed 9.10 budget and levy, even though the proposed levy is equal to or 9.11 less than the previous year's certified levy amount, the 9.12 advertisement format in clause (2) must be used. 9.13 (d) For purposes of this subdivision, the budget amounts 9.14 listed on the advertisement mean: 9.15 (1) for cities, the total government fund expenditures, as 9.16 defined by the state auditor under section 471.6965, less any 9.17 expenditures for improvements or services that are specially 9.18 assessed or charged under chapter 429, 430, 435, or the 9.19 provisions of any other law or charter; and 9.20 (2) for counties, the total government fund expenditures, 9.21 as defined by the state auditor under section 375.169, less any 9.22 expenditures for direct payments to recipients or providers for 9.23 the human service aids listed below: 9.24 (i) Minnesota family investment program under chapters 256J 9.25 and 256K; 9.26 (ii) medical assistance under sections 256B.041, 9.27 subdivision 5, and 256B.19, subdivision 1; 9.28 (iii) general assistance medical care under section 9.29 256D.03, subdivision 6; 9.30 (iv) general assistance under section 256D.03, subdivision 9.31 2; 9.32 (v) emergency assistance under section 256J.48; 9.33 (vi) Minnesota supplemental aid under section 256D.36, 9.34 subdivision 1; 9.35 (vii) preadmission screening under section 256B.0911, and 9.36 alternative care grants under section 256B.0913; 10.1 (viii) general assistance medical care claims processing, 10.2 medical transportation and related costs under section 256D.03, 10.3 subdivision 4; 10.4 (ix) medical transportation and related costs under section 10.5 256B.0625, subdivisions 17 to 18a; 10.6 (x) group residential housing under section 256I.05, 10.7 subdivision 8, transferred from programs in clauses (iv) and 10.8 (vi); or 10.9 (xi) any successor programs to those listed in clauses (i) 10.10 to (x). 10.11 (e) A city with a population of over 500 but not more than 10.12 2,500 must advertise by posted notice as defined in section 10.13 645.12, subdivision 1. The advertisement must be posted at the 10.14 time provided in paragraph (a). It must be in the form required 10.15 in paragraph (b). 10.16 (f) For purposes of this subdivision, the population of a 10.17 city is the most recent population as determined by the state 10.18 demographer under section 4A.02. 10.19 (g) The commissioner of revenue, subject to the approval of 10.20 the chairs of the house and senate tax committees, shall 10.21 prescribe the form and format of the advertisement. 10.22 [EFFECTIVE DATE.] This section is effective for newspaper 10.23 advertisements in 2001 and thereafter. 10.24 Sec. 3. Minnesota Statutes 2000, section 275.065, 10.25 subdivision 6, is amended to read: 10.26 Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 10.27 (a) For purposes of this section, the following terms shall have 10.28 the meanings given: 10.29 (1) "Initial hearing" means the first and primary hearing 10.30 held to discuss the taxing authority's proposed budget and 10.31 proposed property tax levy for taxes payable in the following 10.32 year, or, for school districts, the current budget and the 10.33 proposed property tax levy for taxes payable in the following 10.34 year. 10.35 (2) "Continuation hearing" means a hearing held to complete 10.36 the initial hearing, if the initial hearing is not completed on 11.1 its scheduled date. 11.2 (3) "Subsequent hearing" means the hearing held to adopt 11.3 the taxing authority's final property tax levy, and, in the case 11.4 of taxing authorities other than school districts, the final 11.5 budget, for taxes payable in the following year. 11.6 (b) Between November2919 and December2010, the 11.7 governing bodies of a city that has a population over 500, 11.8 county, metropolitan special taxing districts as defined in 11.9 subdivision 3, paragraph (i), and regional library districts 11.10 shall each hold an initial public hearing to discuss and seek 11.11 public comment on its final budget and property tax levy for 11.12 taxes payable in the following year, and the governing body of 11.13 the school district shall hold an initial public hearing to 11.14 review its current budget and proposed property tax levy for 11.15 taxes payable in the following year. The metropolitan special 11.16 taxing districts shall be required to hold only a single joint 11.17 initial public hearing, the location of which will be determined 11.18 by the affected metropolitan agencies. 11.19 (c) The initial hearing must be held after 5:00 p.m. if 11.20 scheduled on a day other than Saturday. No initial hearing may 11.21 be held on a Sunday. 11.22 (d) At the initial hearing under this subdivision, the 11.23 percentage increase in property taxes proposed by the taxing 11.24 authority, if any, and the specific purposes for which property 11.25 tax revenues are being increased must be discussed. During the 11.26 discussion, the governing body shall hear comments regarding a 11.27 proposed increase and explain the reasons for the proposed 11.28 increase. The public shall be allowed to speak and to ask 11.29 questions. At the public hearing, the school district must also 11.30 provide and discuss information on the distribution of its 11.31 revenues by revenue source, and the distribution of its spending 11.32 by program area. 11.33 (e) If the initial hearing is not completed on its 11.34 scheduled date, the taxing authority must announce, prior to 11.35 adjournment of the hearing, the date, time, and place for the 11.36 continuation of the hearing. The continuation hearing must be 12.1 held at least five business days but no more than14ten 12.2 business days after the initial hearing. A continuation hearing 12.3 may not be held later than December2010 except as provided in 12.4 paragraphs (f) and (g). A continuation hearing must be held 12.5 after 5:00 p.m. if scheduled on a day other than Saturday. No 12.6 continuation hearing may be held on a Sunday. 12.7 (f) The governing body of a county shall hold its initial 12.8 hearing on the firstThursdayTuesday in December each year, and 12.9 may hold additional initial hearings on other dates before 12.10 December2010 if necessary for the convenience of county 12.11 residents. If the county needs a continuation of its hearing, 12.12 the continuation hearing shall be held on thethirdsecond 12.13 Tuesday in December even if that second Tuesday is after 12.14 December 10.If the third Tuesday in December falls on December12.1521, the county's continuation hearing shall be held on Monday,12.16December 20.12.17 (g) The metropolitan special taxing districts shall hold a 12.18 joint initial public hearing on the first Wednesday of 12.19 December. A continuation hearing, if necessary, shall be held 12.20 on the second Wednesday of December even if that second 12.21 Wednesday is after December 10. 12.22 (h) The county auditor shall provide for the coordination 12.23 of initial and continuation hearing dates for all school 12.24 districts and cities within the county to prevent conflicts 12.25 under clauses (i) and (j). 12.26 (i) By August 10, each school board and the board of the 12.27 regional library district shall certify to the county auditors 12.28 of the counties in which the school district or regional library 12.29 district is located the dates on which it elects to hold its 12.30 initial hearing and any continuation hearing. If a school board 12.31 or regional library district does not certify these dates by 12.32 August 10, the auditor will assign the initial and continuation 12.33 hearing dates. The dates elected or assigned must not conflict 12.34 with the initial and continuation hearing dates of the county or 12.35 the metropolitan special taxing districts. 12.36 (j) By August 20, the county auditor shall notify the 13.1 clerks of the cities within the county of the dates on which 13.2 school districts and regional library districts have elected to 13.3 hold their initial and continuation hearings. At the time a 13.4 city certifies its proposed levy under subdivision 1 it shall 13.5 certify the dates on which it elects to hold its initial hearing 13.6 and any continuation hearing. Until September 15, the first and 13.7 second Mondays of December are reserved for the use of the 13.8 cities. If a city does not certify its hearing dates by 13.9 September 15, the auditor shall assign the initial and 13.10 continuation hearing dates. The dates elected or assigned for 13.11 the initial hearing must not conflict with the initial hearing 13.12 dates of the county, metropolitan special taxing districts, 13.13 regional library districts, or school districts within which the 13.14 city is located. To the extent possible, the dates of the 13.15 city's continuation hearing should not conflict with the 13.16 continuation hearing dates of the county, metropolitan special 13.17 taxing districts, regional library districts, or school 13.18 districts within which the city is located. This paragraph does 13.19 not apply to cities of 500 population or less. 13.20 (k) The county initial hearing date and the city, 13.21 metropolitan special taxing district, regional library district, 13.22 and school district initial hearing dates must be designated on 13.23 the notices required under subdivision 3. The continuation 13.24 hearing dates need not be stated on the notices. 13.25 (l) At a subsequent hearing, each county, school district, 13.26 city over 500 population, and metropolitan special taxing 13.27 district may amend its proposed property tax levy and must adopt 13.28 a final property tax levy. Each county, city over 500 13.29 population, and metropolitan special taxing district may also 13.30 amend its proposed budget and must adopt a final budget at the 13.31 subsequent hearing. The final property tax levy must be adopted 13.32 prior to adopting the final budget. A school district is not 13.33 required to adopt its final budget at the subsequent hearing. 13.34 The subsequent hearing of a taxing authority must be held on a 13.35 date subsequent to the date of the taxing authority's initial 13.36 public hearing. If a continuation hearing is held, the 14.1 subsequent hearing must be held either immediately following the 14.2 continuation hearing or on a date subsequent to the continuation 14.3 hearing. The subsequent hearing may be held at a regularly 14.4 scheduled board or council meeting or at a special meeting 14.5 scheduled for the purposes of the subsequent hearing. The 14.6 subsequent hearing of a taxing authority does not have to be 14.7 coordinated by the county auditor to prevent a conflict with an 14.8 initial hearing, a continuation hearing, or a subsequent hearing 14.9 of any other taxing authority. All subsequent hearings must be 14.10 held prior to five working days after December 20 of the levy 14.11 year. The date, time, and place of the subsequent hearing must 14.12 be announced at the initial public hearing or at the 14.13 continuation hearing. 14.14 (m) The property tax levy certified under section 275.07 by 14.15 a city of any population, county, metropolitan special taxing 14.16 district, regional library district, or school district must not 14.17 exceed the proposed levy determined under subdivision 1, except 14.18 by an amount up to the sum of the following amounts: 14.19 (1) the amount of a school district levy whose voters 14.20 approved a referendum to increase taxes under section 123B.63, 14.21 subdivision 3, or 126C.17, subdivision 9, after the proposed 14.22 levy was certified; 14.23 (2) the amount of a city or county levy approved by the 14.24 voters after the proposed levy was certified; 14.25 (3) the amount of a levy to pay principal and interest on 14.26 bonds approved by the voters under section 475.58 after the 14.27 proposed levy was certified; 14.28 (4) the amount of a levy to pay costs due to a natural 14.29 disaster occurring after the proposed levy was certified, if 14.30 that amount is approved by the commissioner of revenue under 14.31 subdivision 6a; 14.32 (5) the amount of a levy to pay tort judgments against a 14.33 taxing authority that become final after the proposed levy was 14.34 certified, if the amount is approved by the commissioner of 14.35 revenue under subdivision 6a; 14.36 (6) the amount of an increase in levy limits certified to 15.1 the taxing authority by the commissioner of children, families, 15.2 and learning or the commissioner of revenue after the proposed 15.3 levy was certified; and 15.4 (7) the amount required under section 126C.55. 15.5 (n) This subdivision does not apply to townsand, special 15.6 taxing districts other than regional library districts and 15.7 metropolitan special taxing districts, cities with a population 15.8 of 500 or less, and counties or cities with a population over 15.9 500 whose proposed property tax levy is less than or equal to 15.10 its levy certified under section 275.07, subdivision 1, for the 15.11 previous year. 15.12 (o) Notwithstanding the requirements of this section, the 15.13 employer is required to meet and negotiate over employee 15.14 compensation as provided for in chapter 179A. 15.15 [EFFECTIVE DATE.] This section is effective for notices 15.16 prepared in 2001 and thereafter. 15.17 Sec. 4. Minnesota Statutes 2000, section 275.065, 15.18 subdivision 8, is amended to read: 15.19 Subd. 8. [HEARING.] Notwithstanding any other provision of 15.20 law, Ramsey county, the city of St. Paul, and independent school 15.21 district No. 625 are authorized to and shall hold their initial 15.22 public hearing jointly. The hearing must be held on thesecond15.23 first Tuesday of December each year. The advertisement required 15.24 in subdivision 5a may be a joint advertisement. The hearing is 15.25 otherwise subject to the requirements of this section. 15.26 Ramsey county is authorized to hold an additional initial 15.27 hearing or hearings as provided under this section, provided 15.28 that any additional hearings must not conflict with the initial 15.29 or continuation hearing dates of the other taxing districts. 15.30 However, if Ramsey county elects not to hold such additional 15.31 initial hearing or hearings, the joint initial hearing required 15.32 by this subdivision must be held in a St. Paul location 15.33 convenient to residents of Ramsey county. 15.34 [EFFECTIVE DATE.] This section is effective for notices 15.35 prepared in 2001 and thereafter. 15.36 Sec. 5. Minnesota Statutes 2000, section 275.065, is 16.1 amended by adding a subdivision to read: 16.2 Subd. 9. [REVERSE REFERENDUM.] The reverse referendum 16.3 procedure in this subdivision applies only in the case of a 16.4 county, or a city that has a population of more than 2,500, that 16.5 has adopted a property tax levy increase over the levy amount 16.6 certified under section 275.07, subdivision 1, for the previous 16.7 year. 16.8 If, within 21 days after the public hearing and adoption of 16.9 a levy under subdivision 6, a petition signed by voters equal in 16.10 number to five percent of the votes cast in the county or city 16.11 in the last general election requesting a referendum on the levy 16.12 increase is filed with the county auditor or the city clerk, the 16.13 levy increase shall not be effective until it has been submitted 16.14 to the voters at a special election to be held on the fourth 16.15 Tuesday in January, and a majority of votes cast on the question 16.16 of approving the levy increase are in the affirmative. The 16.17 commissioner of revenue shall prepare the form of the question 16.18 to be presented at the referendum, which shall reference only 16.19 the amount of the property tax levy increase over the previous 16.20 year. 16.21 The county or city shall notify the county auditor of the 16.22 results of the referendum. If the majority of the votes cast on 16.23 the question are in the affirmative, the levy adopted under 16.24 subdivision 6 shall be certified to the county auditor under 16.25 section 275.07, subdivision 1. If the majority of the votes 16.26 cast on the question are in the negative, an amount equal to the 16.27 preceding year's levy shall be certified to the county auditor 16.28 for purposes of section 275.07, subdivision 1. 16.29 [EFFECTIVE DATE.] This section is effective for taxes 16.30 levied in 2001 and thereafter, for taxes payable in 2002 and 16.31 thereafter. 16.32 Sec. 6. Minnesota Statutes 2000, section 275.07, 16.33 subdivision 1, is amended to read: 16.34 Subdivision 1. [CERTIFICATION OF LEVY.] Except as 16.35 otherwise provided in this subdivision, the taxes voted by 16.36 cities, counties, school districts, and special districts shall 17.1 be certified by the proper authorities to the county auditor on 17.2 or before five working days after December 20 in each year. A 17.3 county or city to which the reverse referendum provisions under 17.4 section 275.065, subdivision 9, apply shall certify the taxes to 17.5 the county auditor by January 5, except that any county or city 17.6 for which a petition has been filed under section 275.065, 17.7 subdivision 9, must certify the day immediately following the 17.8 election under that section. A town must certify the levy 17.9 adopted by the town board to the county auditor by September 15 17.10 each year. If the town board modifies the levy at a special 17.11 town meeting after September 15, the town board must recertify 17.12 its levy to the county auditor on or before five working days 17.13 after December 20. The taxes certified shall not be reduced by 17.14 the county auditor by the aid received under section 273.1398, 17.15 subdivision 2, but shall be reduced by the county auditor by the 17.16 aid received under section 273.1398, subdivision 3. If a city, 17.17 town, county, school district, or special district fails to 17.18 certify its levy by that date, its levy shall be the amount 17.19 levied by it for the preceding year. 17.20 [EFFECTIVE DATE.] This section is effective for taxes 17.21 levied in 2001 and thereafter, for taxes payable in 2002 and 17.22 thereafter.