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HF 2702

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/08/2023 09:35am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property taxes; providing for refunds of the calendar year 2022
fiscal disparities contribution tax for certain commercial-industrial properties;
appropriating money.

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

Section 1. new text begin COOK AND LAKE COUNTY PROPERTY TAX REFUNDS; CALENDAR
YEAR 2022.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) Unless otherwise indicated, the definitions under
Minnesota Statutes, section 276A.01, apply to this section.
new text end

new text begin (b) "Areawide tax rate" means the areawide tax rate determined under Minnesota Statutes,
section 276A.06, subdivision 5.
new text end

new text begin (c) "Contribution percentage" means the proportion of the net tax capacity of a property
that is subject to the areawide tax rate.
new text end

new text begin (d) "Eligible county" means Cook County or Lake County.
new text end

new text begin (e) "Eligible property" means a commercial-industrial property located in an eligible
county.
new text end

new text begin Subd. 2. new text end

new text begin Refund amount. new text end

new text begin (a) The refund amount for each eligible property equals the
greater of zero or the result of the following calculation:
new text end

new text begin (1) the total property tax payable for the property in calendar year 2022; minus
new text end

new text begin (2) the total property tax payable for the property in calendar year 2022 computed as if
the contribution percentage applicable to the property for taxes payable in 2022 were equal
to the contribution percentage applicable to commercial-industrial property in that
municipality for taxes payable in 2020; minus
new text end

new text begin (3) ten percent of the total property tax payable for the property in calendar year 2022.
new text end

new text begin (b) For the purposes of this subdivision, "total property tax" does not include amounts
attributable to special assessments. For a property that is split-classified, total property tax
means the tax attributable to the portion of the property classified as commercial-industrial.
Only the portion of a property classified as commercial-industrial is eligible for a refund
under this section.
new text end

new text begin Subd. 3. new text end

new text begin Administration of refunds. new text end

new text begin (a) No later than September 1, 2023, the auditor
of each eligible county must calculate the refund amount under subdivision 2 for each
eligible property in that county. The auditor must certify the refund amounts for each taxpayer
with eligible property in the county to the county treasurer and to the commissioner of
revenue, in the form and manner determined by the commissioner.
new text end

new text begin (b) No later than October 1, 2023, the commissioner of revenue must pay each eligible
county an amount equal to the total amount of refunds certified for that county under
paragraph (a).
new text end

new text begin (c) No later than November 1, 2023, the treasurer of each eligible county must issue a
refund of the amounts certified under paragraph (a) to each taxpayer with eligible property
in that county.
new text end

new text begin (d) Notwithstanding paragraphs (b) and (c), if the appropriation is insufficient to pay
the full amount of the refunds calculated and certified under paragraph (a), the commissioner
of revenue must recalculate prorated refund amounts for each eligible property and the
refund issued to taxpayers in each county must be the prorated amount.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required of the
commissioner of revenue under this section, not to exceed $2,000,000, is appropriated in
fiscal year 2024 from the general fund to the commissioner of revenue. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end