HF 2776

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing that special service 
  1.3             districts may be managed by nonprofit corporations; 
  1.4             amending Minnesota Statutes 2002, sections 428A.02, 
  1.5             subdivision 1; 428A.03, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 428A.02, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [ORDINANCE.] The governing body of a city 
  1.10  may adopt an ordinance establishing a special service district.  
  1.11  Only property that is classified under section 273.13 and used 
  1.12  for commercial, industrial, or public utility purposes, or is 
  1.13  vacant land zoned or designated on a land use plan for 
  1.14  commercial or industrial use and located in the special service 
  1.15  district, may be subject to the charges imposed by the city on 
  1.16  the special service district.  Other types of property may be 
  1.17  included within the boundaries of the special service district 
  1.18  but are not subject to the levies or charges imposed by the city 
  1.19  on the special service district.  If 50 percent or more of the 
  1.20  market value of a parcel of property is classified under section 
  1.21  273.13 as commercial, industrial, or vacant land zoned or 
  1.22  designated on a land use plan for commercial or industrial use, 
  1.23  or public utility for the current assessment year, then the 
  1.24  entire market value of the property is subject to a service 
  1.25  charge based on net tax capacity for purposes of sections 
  2.1   428A.01 to 428A.10.  The ordinance shall describe with 
  2.2   particularity the area within the city to be included in the 
  2.3   district and the special services to be furnished in the 
  2.4   district.  The ordinance may also provide that the activities of 
  2.5   the special service district may be managed by a nonprofit 
  2.6   corporation created to assist and act on behalf of the city in 
  2.7   implementing and providing services as authorized by this 
  2.8   section.  The ordinance may not be adopted until after a public 
  2.9   hearing has been held on the question.  Notice of the hearing 
  2.10  shall include the time and place of hearing, a map showing the 
  2.11  boundaries of the proposed district, and a statement that all 
  2.12  persons owning property in the proposed district that would be 
  2.13  subject to a service charge will be given opportunity to be 
  2.14  heard at the hearing.  Within 30 days after adoption of the 
  2.15  ordinance under this subdivision, the governing body shall send 
  2.16  a copy of the ordinance to the commissioner of revenue. 
  2.17     [EFFECTIVE DATE.] This section is effective for ordinances 
  2.18  on which public hearings are conducted after June 30, 2004. 
  2.19     Sec. 2.  Minnesota Statutes 2002, section 428A.03, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  [HEARING.] Service charges may be imposed 
  2.22  by the city within the special service district at a rate or 
  2.23  amount sufficient to produce the revenues required to provide 
  2.24  special services in the district.  To determine the appropriate 
  2.25  rate for a service charge based on net tax capacity, taxable 
  2.26  property or net tax capacity must be determined without regard 
  2.27  to captured or original net tax capacity under section 469.177 
  2.28  or to the distribution or contribution value under section 
  2.29  473F.08.  Service charges may not be imposed to finance a 
  2.30  special service if the service is ordinarily provided by the 
  2.31  city from its general fund revenues unless the service is 
  2.32  provided in the district at an increased level.  In that case, a 
  2.33  service charge may be imposed only in the amount needed to pay 
  2.34  for the increased level of service.  A service charge may not be 
  2.35  imposed on the receipts from the sale of intoxicating liquor, 
  2.36  food, or lodging.  Before the imposition of service charges in a 
  3.1   district, for each calendar year, a hearing must be held under 
  3.2   section 428A.02 and notice must be given and must be mailed to 
  3.3   any individual or business organization subject to a service 
  3.4   charge.  For purposes of this section, the notice shall also 
  3.5   include: 
  3.6      (1) a statement that all interested persons will be given 
  3.7   an opportunity to be heard at the hearing regarding a proposed 
  3.8   service charge; 
  3.9      (2) the estimated cost of improvements to be paid for in 
  3.10  whole or in part by service charges imposed under this section, 
  3.11  the estimated cost of operating and maintaining the improvements 
  3.12  during the first year and upon completion of the improvements, 
  3.13  the proposed method and source of financing the improvements, 
  3.14  and the annual cost of operating and maintaining the 
  3.15  improvements; 
  3.16     (3) the proposed rate or amount of the proposed service 
  3.17  charge to be imposed in the district during the calendar year 
  3.18  and the nature and character of special services to be rendered 
  3.19  in the district during the calendar year in which the service 
  3.20  charge is to be collected; and 
  3.21     (4) a statement that the petition requirements of section 
  3.22  428A.08 have either been met or do not apply to the proposed 
  3.23  service charge; and 
  3.24     (5) if the city intends to contract with a nonprofit 
  3.25  corporation created to assist and act on behalf of the city in 
  3.26  implementing and providing services as authorized by ordinance 
  3.27  and resolution, a statement of that intent. 
  3.28     Within six months of the public hearing, the city may adopt 
  3.29  a resolution imposing a service charge within the district not 
  3.30  exceeding the amount or rate expressed in the notice issued 
  3.31  under this section. 
  3.32     [EFFECTIVE DATE.] This section is effective for notices of 
  3.33  public hearings conducted after June 30, 2004.