HF 3093

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property taxation; extending the 
  1.3             Metropolitan Revenue Distribution Act to the counties 
  1.4             of Chisago, Isanti, Sherburne, and Wright; amending 
  1.5             Minnesota Statutes 1998, sections 415.16, subdivision 
  1.6             2; 469.177, subdivision 3; 473F.02, subdivisions 2, 3, 
  1.7             and 7; and 473F.06. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 415.16, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [REASONABLE AREA OR RESPONSE TIME REQUIREMENT.] A 
  1.12  statutory or home rule charter city or county, except if it is 
  1.13  located in the area defined in section 473F.02 473.121, 
  1.14  subdivision 2, may impose a reasonable area or response time 
  1.15  residency requirement if there is a demonstrated, job-related 
  1.16  necessity.  
  1.17     Sec. 2.  Minnesota Statutes 1998, section 469.177, 
  1.18  subdivision 3, is amended to read: 
  1.19     Subd. 3.  [TAX INCREMENT, RELATIONSHIP TO CHAPTERS 276A AND 
  1.20  473F.] (a) Unless the governing body elects pursuant to clause 
  1.21  (b) the following method of computation shall apply to a 
  1.22  district other than an economic development district for which 
  1.23  the request for certification was made after June 30, 2000, in 
  1.24  the case of a district located in the counties of Chisago, 
  1.25  Isanti, Sherburne, or Wright, or after June 30, 1997, in the 
  1.26  case of a district located in any other county: 
  2.1      (1) The original net tax capacity and the current net tax 
  2.2   capacity shall be determined before the application of the 
  2.3   fiscal disparity provisions of chapter 276A or 473F.  Where the 
  2.4   original net tax capacity is equal to or greater than the 
  2.5   current net tax capacity, there is no captured net tax capacity 
  2.6   and no tax increment determination.  Where the original net tax 
  2.7   capacity is less than the current net tax capacity, the 
  2.8   difference between the original net tax capacity and the current 
  2.9   net tax capacity is the captured net tax capacity.  This amount 
  2.10  less any portion thereof which the authority has designated, in 
  2.11  its tax increment financing plan, to share with the local taxing 
  2.12  districts is the retained captured net tax capacity of the 
  2.13  authority.  
  2.14     (2) The county auditor shall exclude the retained captured 
  2.15  net tax capacity of the authority from the net tax capacity of 
  2.16  the local taxing districts in determining local taxing district 
  2.17  tax rates.  The local tax rates so determined are to be extended 
  2.18  against the retained captured net tax capacity of the authority 
  2.19  as well as the net tax capacity of the local taxing districts.  
  2.20  The tax generated by the extension of the lesser of (A) the 
  2.21  local taxing district tax rates or (B) the original local tax 
  2.22  rate to the retained captured net tax capacity of the authority 
  2.23  is the tax increment of the authority.  
  2.24     (b) The following method of computation applies to any 
  2.25  economic development district for which the request for 
  2.26  certification was made after June 30, 2000, in the case of a 
  2.27  district located in the counties of Chisago, Isanti, Sherburne, 
  2.28  or Wright, or after June 30, 1997, in the case of a district 
  2.29  located in any other county, and to any other district for which 
  2.30  the governing body, by resolution approving the tax increment 
  2.31  financing plan pursuant to section 469.175, subdivision 3, 
  2.32  elects: 
  2.33     (1) The original net tax capacity shall be determined 
  2.34  before the application of the fiscal disparity provisions of 
  2.35  chapter 276A or 473F.  The current net tax capacity shall 
  2.36  exclude any fiscal disparity commercial-industrial net tax 
  3.1   capacity increase between the original year and the current year 
  3.2   multiplied by the fiscal disparity ratio determined pursuant to 
  3.3   section 276A.06, subdivision 7, or 473F.08, subdivision 6.  
  3.4   Where the original net tax capacity is equal to or greater than 
  3.5   the current net tax capacity, there is no captured net tax 
  3.6   capacity and no tax increment determination.  Where the original 
  3.7   net tax capacity is less than the current net tax capacity, the 
  3.8   difference between the original net tax capacity and the current 
  3.9   net tax capacity is the captured net tax capacity.  This amount 
  3.10  less any portion thereof which the authority has designated, in 
  3.11  its tax increment financing plan, to share with the local taxing 
  3.12  districts is the retained captured net tax capacity of the 
  3.13  authority.  
  3.14     (2) The county auditor shall exclude the retained captured 
  3.15  net tax capacity of the authority from the net tax capacity of 
  3.16  the local taxing districts in determining local taxing district 
  3.17  tax rates.  The local tax rates so determined are to be extended 
  3.18  against the retained captured net tax capacity of the authority 
  3.19  as well as the net tax capacity of the local taxing districts.  
  3.20  The tax generated by the extension of the lesser of (A) the 
  3.21  local taxing district tax rates or (B) the original local tax 
  3.22  rate to the retained captured net tax capacity of the authority 
  3.23  is the tax increment of the authority.  
  3.24     (3) An election by the governing body pursuant to paragraph 
  3.25  (b) shall be submitted to the county auditor by the authority at 
  3.26  the time of the request for certification pursuant to 
  3.27  subdivision 1. 
  3.28     (c) The method of computation of tax increment applied to a 
  3.29  district pursuant to paragraph (a) or (b) shall remain the same 
  3.30  for the duration of the district, except that the governing body 
  3.31  may elect to change its election from the method of computation 
  3.32  in paragraph (a) to the method in paragraph (b). 
  3.33     Sec. 3.  Minnesota Statutes 1998, section 473F.02, 
  3.34  subdivision 2, is amended to read: 
  3.35     Subd. 2.  [AREA.] "Area" means the territory included 
  3.36  within the boundaries of Anoka, Carver, Chisago, Dakota 
  4.1   excluding the city of Northfield, Hennepin, Isanti, Ramsey, 
  4.2   Scott excluding the city of New Prague, and Sherburne, 
  4.3   Washington, and Wright counties. 
  4.4      Sec. 4.  Minnesota Statutes 1998, section 473F.02, 
  4.5   subdivision 3, is amended to read: 
  4.6      Subd. 3.  [COMMERCIAL-INDUSTRIAL PROPERTY.] 
  4.7   "Commercial-industrial property" means the following categories 
  4.8   of property, as defined in section 273.13, excluding that 
  4.9   portion of such property (1) which may, by law, constitute the 
  4.10  tax base for a tax increment pledged under section 469.042 or 
  4.11  469.162, certification of which was requested prior to (i) 
  4.12  August 1, 1979, in the case of a tax increment financing 
  4.13  district located in the counties of Anoka, Carver, Dakota, 
  4.14  Hennepin, Ramsey, Scott, or Washington, or (ii) July 1, 2000, in 
  4.15  the case of a tax increment financing district located in the 
  4.16  counties of Chisago, Isanti, Sherburne, or Wright, to the extent 
  4.17  and while such tax increment is so pledged; or (2) which is 
  4.18  exempt from taxation under section 272.02:  
  4.19     (a) That portion of class 3 property defined in Minnesota 
  4.20  Statutes 1971, section 273.13, consisting of stocks of 
  4.21  merchandise and furniture and fixtures used therewith; 
  4.22  manufacturers' materials and manufactured articles; and tools, 
  4.23  implements and machinery, whether fixtures or otherwise.  
  4.24     (b) That portion of class 4 property defined in Minnesota 
  4.25  Statutes 1971, section 273.13, which is either used or zoned for 
  4.26  use for any commercial or industrial purpose, except for such 
  4.27  property which is, or, in the case of property under 
  4.28  construction, will when completed be used exclusively for 
  4.29  residential occupancy and the provision of services to 
  4.30  residential occupants thereof.  Property shall be considered as 
  4.31  used exclusively for residential occupancy only if each of not 
  4.32  less than 80 percent of its occupied residential units is, or, 
  4.33  in the case of property under construction, will when completed 
  4.34  be occupied under an oral or written agreement for occupancy 
  4.35  over a continuous period of not less than 30 days.  
  4.36     If the classification of property prescribed by section 
  5.1   273.13 is modified by legislative amendment, the references in 
  5.2   this subdivision shall be to such successor class or classes of 
  5.3   property, or portions thereof, as embrace the kinds of property 
  5.4   designated in this subdivision.  
  5.5      Sec. 5.  Minnesota Statutes 1998, section 473F.02, 
  5.6   subdivision 7, is amended to read: 
  5.7      Subd. 7.  [POPULATION.] "Population" means the most recent 
  5.8   estimate of the population of a municipality made by the 
  5.9   metropolitan council or the state demographer and filed with the 
  5.10  commissioner of revenue as of July 1 of the year in which a 
  5.11  municipality's distribution net tax capacity is calculated.  The 
  5.12  council shall annually estimate the population of each 
  5.13  municipality as of a date which it determines and, in the case 
  5.14  of a municipality which is located partly within and partly 
  5.15  without the area, the proportion of the total which resides 
  5.16  within the area, and shall promptly thereafter file its 
  5.17  estimates with the commissioner of revenue. 
  5.18     Sec. 6.  Minnesota Statutes 1998, section 473F.06, is 
  5.19  amended to read: 
  5.20     473F.06 [INCREASE IN NET TAX CAPACITY.] 
  5.21     Subdivision 1.  [GENERAL RULE.] On or before July 15 of 
  5.22  each year, the auditor of each county in the area shall 
  5.23  determine the amount, if any, by which the net tax capacity 
  5.24  determined in the preceding year under section 473F.05, of 
  5.25  commercial-industrial property subject to taxation within each 
  5.26  municipality in the auditor's county exceeds the net tax 
  5.27  capacity in 1971 of commercial-industrial property subject to 
  5.28  taxation within that municipality.  If a municipality is located 
  5.29  in two or more counties within the area, the auditors of those 
  5.30  counties shall certify the data required by section 473F.05 to 
  5.31  the county auditor who is responsible under other provisions of 
  5.32  law for allocating the levies of that municipality between or 
  5.33  among the affected counties.  That county auditor shall 
  5.34  determine the amount of the net excess, if any, for the 
  5.35  municipality under this section, and certify that amount under 
  5.36  section 473F.07.  Notwithstanding any other provision of 
  6.1   sections 473F.01 to 473F.13 to the contrary, in the case of a 
  6.2   municipality which is designated on July 24, 1971, as a 
  6.3   redevelopment area under section 401(a)(4) of the Public Works 
  6.4   and Economic Development Act of 1965, Public Law Number 89-136, 
  6.5   the increase in its net tax capacity of commercial-industrial 
  6.6   property for purposes of this section shall be determined in 
  6.7   each year by using as a base the net tax capacity of 
  6.8   commercial-industrial property in that municipality in the 1989 
  6.9   assessment year, rather than the net tax capacity of such 
  6.10  property in 1971.  The increase in total net tax capacity 
  6.11  determined by this section shall be reduced by the amount of any 
  6.12  decreases in net tax capacity of commercial-industrial property 
  6.13  resulting from any court decisions, court related stipulation 
  6.14  agreements, or abatements for a prior year, and only in the 
  6.15  amount of such decreases made during the 12-month period ending 
  6.16  on May 1 of the current assessment year, where such decreases, 
  6.17  if originally reflected in the determination of a prior year's 
  6.18  net tax capacity under section 473F.05, would have resulted in a 
  6.19  smaller contribution from the municipality in that year.  An 
  6.20  adjustment for such decreases shall be made only if the 
  6.21  municipality made a contribution in a prior year based on the 
  6.22  higher net tax capacity of the commercial-industrial property. 
  6.23     Subd. 2.  [EXCEPTIONS TO GENERAL RULE.] Notwithstanding any 
  6.24  other provision of sections 473F.01 to 473F.13 to the contrary, 
  6.25  in the case of:  (1) a municipality which is designated on July 
  6.26  24, 1971, as a redevelopment area under section 401(a)(4) of the 
  6.27  Public Works and Economic Development Act of 1965, Public Law 
  6.28  Number 89-136, the increase in its net tax capacity of 
  6.29  commercial-industrial property for purposes of this section 
  6.30  shall be determined in each year by using as a base the net tax 
  6.31  capacity of commercial-industrial property in the municipality 
  6.32  in the 1989 assessment year, or (2) a municipality or a portion 
  6.33  of a municipality which is located in the counties of Chisago, 
  6.34  Isanti, Sherburne, or Wright, the increase in its net tax 
  6.35  capacity of commercial-industrial property for purposes of this 
  6.36  section shall be determined in each year by using as a base tax 
  7.1   the net tax capacity of commercial-industrial property in that 
  7.2   municipality in the 1999 assessment year, rather than the net 
  7.3   tax capacity of such property in 1971. 
  7.4      Sec. 7.  [APPLICATION.] 
  7.5      Sections 3 to 6 apply in the counties of Anoka, Carver, 
  7.6   Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
  7.7   Washington, and Wright. 
  7.8      Sec. 8.  [EFFECTIVE DATE.] 
  7.9      Sections 1 and 2 are effective the day following final 
  7.10  enactment.  Sections 3 to 6 are effective for taxes payable in 
  7.11  2001 and subsequent years.