HF 2638

as introduced - 90th Legislature (2017 - 2018) Posted on 05/04/2017 10:13am

A bill for an act
relating to taxation; property; authorizing local governments to maintain roads
owned by common interest ownership associations provided the association pays
the costs of the maintenance; providing a property tax credit for properties in
certain common interest ownership associations; amending Minnesota Statutes
2016, sections 273.1393; 275.08, subdivision 1b; 276.04, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapters 160; 273.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [160.213] MAINTENANCE OF ROADS IN COMMON INTEREST
OWNERSHIP.
new text end

new text begin (a) For the purposes of this section, "common interest ownership association" is an
association established under chapter 515, 515A, or 515B. A road authority may maintain
roads owned by a common interest ownership association. Before any maintenance work
is done on the private road, the common interest ownership association and the road authority
must enter into an agreement that describes the work to be done by the road authority, and
the manner, timing, and amount of the payment for the service provided. All money the
road authority receives for the work done must be paid into the respective funds provided
by law, or set aside, for highway or street purposes. The maintenance must not unduly delay
or interfere with maintenance of public roads under the road authority's jurisdiction.
new text end

new text begin (b) By February 1 of each year, each road authority receiving payments from common
interest ownership associations in the previous year must report the amounts received, by
association, to the county auditor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [273.1371] ROAD MAINTENANCE FEE CREDIT.
new text end

new text begin (a) Each property owner in a common interest ownership association, as defined under
section 160.213, that makes payments as described in section 160.213, shall receive a credit
applied against the tax levied by the city or town. To determine the credit rate, the county
auditor must divide (i) the total amount of payments received from the association under
section 160.213 in the prior year, by (ii) the total taxable tax capacity of the properties
comprising the association. Each property's credit shall be equal to the credit rate multiplied
by the property's taxable net tax capacity. The credit must be applied first to the property's
net tax capacity based tax, and then to the referendum market value tax, if any. The credit
must not exceed the total tax levied on the property by the city or town.
new text end

new text begin (b) Credits under this section must be reported to the commissioner of revenue as a part
of the abstracts of tax lists submitted under section 275.29.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) agricultural credit as provided in section 273.1384;

(8) taconite homestead credit as provided in section 273.135;

(9) supplemental homestead credit as provided in section 273.1391; deleted text begin and
deleted text end

(10) the bovine tuberculosis zone credit, as provided in section 273.113 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) the road maintenance fee credit under section 273.1371.
new text end

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:

Subd. 1b.

Computation of tax rates.

The amounts certified to be levied against net tax
capacity under section 275.07 by an individual local government unit new text begin , plus in the case of a
city or town, any amount certified under section 273.1371, new text end shall be divided by the total net
tax capacity of all taxable properties within the local government unit's taxing jurisdiction.
The resulting ratio, the local government's local tax rate, multiplied by each property's net
tax capacity shall be each property's net tax capacity tax for that local government unit
before reduction by any credits.

Any amount certified to the county auditor to be levied against market value shall be
divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
property's referendum market value shall be each property's new referendum tax before
reduction by any credits. For the purposes of this subdivision, "referendum market value"
means the market value as defined in section 126C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for homestead agricultural properties, the credit under section 273.1384;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
new text begin 273.1371; new text end 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
of credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end