HF 2683

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; providing that cities make annual payments to
towns following annexations under certain conditions; proposing coding for new
law in Minnesota Statutes, chapter 275.

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

Section 1.

new text begin [275.072] CITY ANNEXATION PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Payments to towns. new text end

new text begin Cities that annex property under the conditions
described in subdivision 2 must make annual payments to the town from which the
property was annexed beginning in the year following the year in which the annexation
becomes effective. Each payment is equal to:
new text end

new text begin (1) the amount by which (i) the tax capacity of the commercial-industrial portion of
the annexed area for the current taxes payable year exceeds (ii) the tax capacity of the
commercial-industrial portion of the annexed area for the taxes payable year in which the
annexation became effective, multiplied by
new text end

new text begin (2) the city's tax rate for the current taxes payable year.
new text end

new text begin The payments must be made prior to November 15 of each year. The "tax capacity of the
commercial-industrial portion of the annexed area for the taxes payable year in which the
annexation became effective" must be adjusted as necessary for class rate changes enacted
after the effective date of the annexation.
new text end

new text begin Subd. 2. new text end

new text begin Annexation conditions. new text end

new text begin A city acquiring land through annexation
under section 414.031 or 414.033 is liable to make payments under subdivision 1 to the
town from which the land was annexed, provided that the following conditions were in
existence on the effective date of the annexation:
new text end

new text begin (1) the town is an urban town located in the metropolitan area defined in section
473.121; and
new text end

new text begin (2) at the time the petition was filed (i) the town was providing urban services,
including sewer and water, whether directly or through contract or joint powers agreement
with another municipality or town, to the area being annexed, or (ii) the town's adopted
comprehensive plan included a plan to provide urban services, including sewer and water,
whether directly or through contract or joint powers agreement with another municipality
or town, to the area to be annexed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for annexations ordered or approved
after June 1, 2006.
new text end