Minnesota Legislature
HF 3040
as introduced - 87th Legislature (2011 - 2012) Posted on 04/30/2012 11:05am
Current Version - as introduced
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A bill for an act
relating to the metropolitan area fiscal disparities program; eliminating
inflationary growth from the areawide pool; phasing down the contribution
percentage; eliminating the 1971 base value subtraction; limiting distributions
from the pool for certain municipalities; modifying the definition of fiscal
capacity; providing for a portion of the areawide pool to be used for economic
development by funding certain costs related to light rail transit; amending
Minnesota Statutes 2010, sections 473.4051, subdivision 2; 473F.02, subdivision
14, by adding a subdivision; 473F.06; 473F.07, subdivisions 1, 4; 473F.08,
subdivisions 2, 5, 6, 7a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 473.4051, subdivision 2, is amended to
read:
Subd. 2.
Operating costs.
After operating revenue and federal money have been
used to pay for light rail transit operations, 50 percent of the remaining operating costs
must be paid deleted text begin by the statedeleted text end new text begin from the areawide pool under chapter 473F. By July 1 of
each year, the council shall certify the amount necessary to fulfill this obligation in the
following calendar year to the administrative auditor determined under section 473F.03new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013, for property taxes
payable in 2014 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2010, section 473F.02, is amended by adding a subdivision
to read:
new text begin Subd. 13a. new text end
new text begin Aid-equivalent market value. new text end
new text begin
For any municipality receiving aid
under sections 477A.011 to 477A.03, its "aid-equivalent market value" is its aid received
divided by the average class rate for the area, further divided by the average municipal
tax rate within the area. For the purposes of this subdivision, the "average class rate for
the area" means the total tax capacity for the area divided by the total estimated market
value of the area. For the purposes of this subdivision, the "average municipal tax rate
within the area" means the total levy of all municipalities in the area divided by the total
tax capacity of the area.
new text end
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 2014 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
Subd. 14.
Fiscal capacity.
"Fiscal capacity" of a municipality means its valuation,
determined as of January 2 of any year, new text begin plus its aid-equivalent market value, new text end divided by
its population, determined as of a date in the same year.
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 2014 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2010, section 473F.06, is amended to read:
473F.06 deleted text begin INCREASE INdeleted text end new text begin CONTRIBUTIONnew text end NET TAX CAPACITY.
new text begin (a) For fiscal disparities contribution tax capacities for taxes payable in 2014, new text end on or
before July 15 deleted text begin of each yeardeleted text end new text begin , 2013new text end , the auditor of each county in the area shall determine deleted text begin the
amount, if any, by whichdeleted text end new text begin an amount equal to 37 percent ofnew text end the net tax capacity determined
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 municipalitydeleted 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 indeleted 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
(b) For fiscal disparities contribution tax capacities for taxes payable in 2015, the
auditor of each county in the area shall determine an amount equal to 35/37 of the amount
certified under this subdivision for the previous year, plus 35 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(c) For fiscal disparities contribution tax capacities for taxes payable in 2016, the
auditor of each county in the area shall determine an amount equal to 33/35 of the amount
certified under this subdivision for the previous year, plus 33 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(d) For fiscal disparities contribution tax capacities for taxes payable in 2017, the
auditor of each county in the area shall determine an amount equal to 31/33 of the amount
certified under this subdivision for the previous year, plus 31 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(e) For fiscal disparities contribution tax capacities for taxes payable in 2018, the
auditor of each county in the area shall determine an amount equal to 29/31 of the amount
certified under this subdivision for the previous year, plus 29 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(f) For fiscal disparities contribution tax capacities for taxes payable in 2019, the
auditor of each county in the area shall determine an amount equal to 27/29 of the amount
certified under this subdivision for the previous year, plus 27 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(g) For fiscal disparities contribution tax capacities for taxes payable in 2020, the
auditor of each county in the area shall determine an amount equal to 25/27 of the amount
certified under this subdivision for the previous year, plus 25 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(h) For fiscal disparities contribution tax capacities for taxes payable in 2021, the
auditor of each county in the area shall determine an amount equal to 23/25 of the amount
certified under this subdivision for the previous year, plus 23 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(i) For fiscal disparities contribution tax capacities for taxes payable in 2022, the
auditor of each county in the area shall determine an amount equal to 21/23 of the amount
certified under this subdivision for the previous year, plus 21 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(j) For fiscal disparities contribution tax capacities for taxes payable in 2023, the
auditor of each county in the area shall determine an amount equal to 20/21 of the amount
certified under this subdivision for the previous year, plus 20 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
new text begin
(k) For fiscal disparities contribution tax capacities for taxes payable in 2024 and
thereafter, the auditor of each county in the area shall determine an amount equal to the
amount certified under this subdivision for the previous year, plus 20 percent of the net tax
capacity due to new construction of commercial-industrial property or reclassification of
property to commercial-industrial within the municipality for the current year.
new text end
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 2014 and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2010, section 473F.07, subdivision 1, is amended to read:
Subdivision 1.
Areawide net tax capacity.
new text begin (a) new text end Each county auditor shall certify
the determinations under sections 473F.05 and 473F.06 to the administrative auditor on
or before August 1 of each year.
The administrative auditor shall determine an amount equal to deleted text begin 40 percent of the sum
ofdeleted text end the amounts certified under section 473F.06. The resulting amount shall be known as
the "areawide net tax capacity for ........(year)."
new text begin
(b) Each year, the administrative auditor must divide the amount certified by the
Metropolitan Council for light rail transit operations under section 473.4051, subdivision
2, by the areawide tax rate for the previous year to determine a tax capacity set-aside for
light rail transit operating costs. The auditor must subtract that amount from the amount
determined in paragraph (a) to determine the areawide net tax capacity available for
distribution for the year.
new text end
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 2014 and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2010, section 473F.07, subdivision 4, is amended to read:
Subd. 4.
Distribution net tax capacity.
new text begin (a) new text end The administrative auditor shall
determine the new text begin preliminary distribution net tax capacity as the new text end proportion which the index
of each municipality bears to the sum of the indices of all municipalities and shall then
multiply this proportion in the case of each municipality, by the areawide net tax capacitynew text begin
available for distributionnew text end .
new text begin
(b) For each municipality whose fiscal capacity exceeds the average fiscal capacity,
the final distribution net tax capacity is equal to the lesser of (1) its contribution net tax
capacity, or (2) its preliminary distribution net tax capacity multiplied by the adjustment
factor determined in paragraph (d).
new text end
new text begin
(c) For each municipality whose fiscal capacity is less than or equal to the average
fiscal capacity, the final distribution net tax capacity is equal to its preliminary distribution
net tax capacity multiplied by the adjustment factor determined in paragraph (d).
new text end
new text begin
(d) The administrative auditor must determine an adjustment factor such that the
total final distribution net tax capacity of all municipalities is equal to the areawide tax
capacity available for distribution.
new text end
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 2014 and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2010, section 473F.08, subdivision 2, is amended to read:
Subd. 2.
Computation of net tax capacity.
The net tax capacity of a governmental
unit is its net tax capacity, as determined in accordance with other provisions of law
including section 469.177, subdivision 3, subject to the following adjustments:
(a) There shall be subtracted from its net tax capacity, in each municipality in which
the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to deleted text begin 40 percent ofdeleted text end the amount certified in that year under sections
473F.06 and 473F.07 for the municipality as the total preceding year's net tax capacity
of commercial-industrial property which is subject to the taxing jurisdiction of the
governmental unit within the municipality, determined without regard to section 469.177,
subdivision 3, bears to the total preceding year's net tax capacity of commercial-industrial
property within the municipality, determined without regard to section 469.177,
subdivision 3;
(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to the areawide net tax capacity for the year attributable to that
municipality as the total preceding year's net tax capacity of residential property which is
subject to the taxing jurisdiction of the governmental unit within the municipality bears to
the total preceding year's net tax capacity of residential property of the municipality.
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 2014 and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2010, section 473F.08, subdivision 5, is amended to read:
Subd. 5.
Areawide tax rate.
On or before August 25 of each year, the county auditor
shall certify to the administrative auditor that portion of the levy of each governmental unit
determined under subdivisions 3, clause (a), 3a, and 3bnew text begin , plus the amount certified under
section 473.4051, subdivision 2, which shall be treated as a supplemental distribution levy
to the Metropolitan Council by the Ramsey County auditornew text end . The administrative auditor
shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
such levies from the areawide net tax capacity. On or before September 1 of each year, the
administrative auditor shall certify the areawide tax rate to each of the county auditors.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end
Sec. 9.
Minnesota Statutes 2010, section 473F.08, subdivision 6, is amended to read:
Subd. 6.
Application to commercial-industrial property.
The areawide tax rate
determined in accordance with subdivision 5 shall apply to each commercial-industrial
property subject to taxation within a municipality, including property located within any
tax increment financing district, as defined in section 469.174, subdivision 9, to that
portion of the net tax capacity of the item which bears the same proportion to its total
net tax capacity as deleted text begin 40 percent ofdeleted text end the amount determined under sections 473F.06 and
473F.07 is to the amount determined under section 473F.05. The tax rate determined in
accordance with subdivision 4 shall apply in the taxation of the remainder of the net
tax capacity of the item.
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 2014 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2010, section 473F.08, subdivision 7a, is amended to read:
Subd. 7a.
Certification of values; payment.
The administrative auditor shall
determine for each county the difference between the total levy on distribution value
pursuant to subdivisions 3, clause (a), 3a, and 3b, new text begin including the amount certified under
section 473.4051, subdivision 2, new text end within the county and the total tax on contribution value
pursuant to subdivision 6, within the county. On or before May 16 of each year, the
administrative auditor shall certify the differences so determined to each county auditor.
In addition, the administrative auditor shall certify to those county auditors for whose
county the total tax on contribution value exceeds the total levy on distribution value the
settlement the county is to make to the other counties of the excess of the total tax on
contribution value over the total levy on distribution value in the county. On or before June
15 and November 15 of each year, each county treasurer in a county having a total tax on
contribution value in excess of the total levy on distribution value shall pay one-half of the
excess to the other counties in accordance with the administrative auditors certification.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2014 and
thereafter.
new text end