HF 2992

as introduced - 87th Legislature (2011 - 2012) Posted on 04/04/2012 01:50pm

A bill for an act
relating to property taxation; the metropolitan area fiscal disparities program;
excluding retail property from the areawide pool; eliminating the 1971 base value
subtraction; amending Minnesota Statutes 2010, sections 473F.02, subdivision 3;
473F.06.

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

Section 1.

Minnesota Statutes 2010, section 473F.02, subdivision 3, is amended to read:

Subd. 3.

Commercial-industrial property.

"Commercial-industrial property"
means deleted text begin the following categories of property, as defined in section 273.13, excluding that
portion of such property (1) which may, by law, constitute the tax base for a tax increment
pledged under section 469.042 or 469.162, certification of which was requested prior to
August 1, 1979, to the extent and while such tax increment is so pledged; or (2) which is
exempt from taxation under section 272.02: deleted text end new text begin all property classified as class 3 under section
273.13, subdivision 24, excluding property used for retail sales. The retail exclusion
shall not apply to the captured tax capacity of any property in a tax increment financing
district under sections 469.174 to 469.177.
new text end

deleted text begin (a) That portion of class 3 property defined in Minnesota Statutes 1971, section
273.13, consisting of stocks of merchandise and furniture and fixtures used therewith;
manufacturers' materials and manufactured articles; and tools, implements and machinery,
whether fixtures or otherwise.
deleted text end

deleted text begin (b) That portion of class 4 property defined in Minnesota Statutes 1971, section
273.13, which is either used or zoned for use for any commercial or industrial purpose,
except for such property which is, or, in the case of property under construction, will when
completed be used exclusively for residential occupancy and the provision of services
to residential occupants thereof. Property shall be considered as used exclusively for
residential occupancy only if each of not less than 80 percent of its occupied residential
units is, or, in the case of property under construction, will when completed be occupied
under an oral or written agreement for occupancy over a continuous period of not less
than 30 days.
deleted text end

If the classification of property prescribed by section 273.13 new text begin , subdivision 24, new text end is
modified by legislative amendment, the references in this subdivision shall be to such
successor class or classes of property, or portions thereof, as embrace the kinds of property
designated in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contribution and
distribution tax capacities for taxes payable in 2015 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 473F.06, is amended to read:

473F.06 deleted text begin INCREASE IN deleted text end new text begin ADJUSTMENTS TO new text end NET TAX CAPACITY.

On or before July 15 of each year, the auditor of each county in the area shall
determine the deleted text begin amount, if any, by which the deleted text end net tax capacity deleted text begin determined deleted text end in the preceding
year under section 473F.05, of commercial-industrial property subject to taxation
within each municipality in the auditor's county deleted text begin exceeds the net tax capacity in 1971
of commercial-industrial property subject to taxation within that municipality deleted text end . If a
municipality is located in two or more counties within the area, the auditors of those
counties shall certify the data required by section 473F.05 to the county auditor who is
responsible under other provisions of law for allocating the levies of that municipality
between or among the affected counties. That county auditor shall determine the amount
deleted text begin of the net excess, if any, deleted text end for the municipality under this section, and certify that amount
under section 473F.07. deleted text begin Notwithstanding any other provision of sections 473F.01 to
473F.13 to the contrary, in the case of a municipality which is designated on July 24,
1971, as a redevelopment area under section 401(a)(4) of the Public Works and Economic
Development Act of 1965, Public Law 89-136, the increase in its net tax capacity of
commercial-industrial property for purposes of this section shall be determined in each
year by using as a base the net tax capacity of commercial-industrial property in that
municipality in the 1989 assessment year, rather than the net tax capacity of such property
in 1971. deleted text end The deleted text begin increase in deleted text end total net tax capacity determined by this section shall be reduced
by the amount of any decreases in net tax capacity of commercial-industrial property
resulting from any court decisions, court related stipulation agreements, or abatements
for a prior year, and only in the amount of such decreases made during the 12-month
period ending on May 1 of the current assessment year, where such decreases, if originally
reflected in the determination of a prior year's net tax capacity under section 473F.05,
would have resulted in a smaller contribution from the municipality in that year. An
adjustment for such decreases shall be made only if the municipality made a contribution
in a prior year based on the higher net tax capacity of the commercial-industrial property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal disparities contribution and
distribution tax capacities for taxes payable in 2015 and thereafter.
new text end

Sec. 3. new text begin DEFINITION OF RETAIL PROPERTY.
new text end

new text begin By October 1, 2012, the commissioner of revenue shall develop guidelines for
assessors to use in determining which properties are considered to be used for retail sales,
and distribute those guidelines to assessors within the metropolitan area.
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