HF 3545

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

  1.1                          A bill for an act 
  1.2             relating to taxes; levy limits; adding a special levy 
  1.3             and providing for levy limit adjustments; amending 
  1.4             Minnesota Statutes 1998, section 275.72, subdivision 
  1.5             3; and Minnesota Statutes 1999 Supplement, section 
  1.6             275.70, subdivision 5. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   275.70, subdivision 5, is amended to read: 
  1.10     Subd. 5.  [SPECIAL LEVIES.] "Special levies" means those 
  1.11  portions of ad valorem taxes levied by a local governmental unit 
  1.12  for the following purposes or in the following manner: 
  1.13     (1) to pay the costs of the principal and interest on 
  1.14  bonded indebtedness or to reimburse for the amount of liquor 
  1.15  store revenues used to pay the principal and interest due on 
  1.16  municipal liquor store bonds in the year preceding the year for 
  1.17  which the levy limit is calculated; 
  1.18     (2) to pay the costs of principal and interest on 
  1.19  certificates of indebtedness issued for any corporate purpose 
  1.20  except for the following: 
  1.21     (i) tax anticipation or aid anticipation certificates of 
  1.22  indebtedness; 
  1.23     (ii) certificates of indebtedness issued under sections 
  1.24  298.28 and 298.282; 
  1.25     (iii) certificates of indebtedness used to fund current 
  1.26  expenses or to pay the costs of extraordinary expenditures that 
  2.1   result from a public emergency; or 
  2.2      (iv) certificates of indebtedness used to fund an 
  2.3   insufficiency in tax receipts or an insufficiency in other 
  2.4   revenue sources; 
  2.5      (3) to provide for the bonded indebtedness portion of 
  2.6   payments made to another political subdivision of the state of 
  2.7   Minnesota; 
  2.8      (4) to fund payments made to the Minnesota state armory 
  2.9   building commission under section 193.145, subdivision 2, to 
  2.10  retire the principal and interest on armory construction bonds; 
  2.11     (5) for unreimbursed expenses related to flooding that 
  2.12  occurred during the first half of calendar year 1997, as allowed 
  2.13  by the commissioner of revenue under section 275.74, paragraph 
  2.14  (b); 
  2.15     (6) for local units of government located in an area 
  2.16  designated by the Federal Emergency Management Agency pursuant 
  2.17  to a major disaster declaration issued for Minnesota by 
  2.18  President Clinton after April 1, 1997, and before June 11, 1997, 
  2.19  for the amount of tax dollars lost due to abatements authorized 
  2.20  under section 273.123, subdivision 7, and Laws 1997, chapter 
  2.21  231, article 2, section 64, to the extent that they are related 
  2.22  to the major disaster and to the extent that neither the state 
  2.23  or federal government reimburses the local government for the 
  2.24  amount lost; 
  2.25     (7) property taxes approved by voters which are levied 
  2.26  against the referendum market value as provided under section 
  2.27  275.61; 
  2.28     (8) to fund matching requirements needed to qualify for 
  2.29  federal or state grants or programs to the extent that either 
  2.30  (i) the matching requirement exceeds the matching requirement in 
  2.31  calendar year 1997, or (ii) it is a new matching requirement 
  2.32  that didn't exist prior to 1998; 
  2.33     (9) to pay the expenses reasonably and necessarily incurred 
  2.34  in preparing for or repairing the effects of natural disaster 
  2.35  including the occurrence or threat of widespread or severe 
  2.36  damage, injury, or loss of life or property resulting from 
  3.1   natural causes, in accordance with standards formulated by the 
  3.2   emergency services division of the state department of public 
  3.3   safety, as allowed by the commissioner of revenue under section 
  3.4   275.74, paragraph (b); 
  3.5      (10) for the amount of tax revenue lost due to abatements 
  3.6   authorized under section 273.123, subdivision 7, for damage 
  3.7   related to the tornadoes of March 29, 1998, to the extent that 
  3.8   neither the state or federal government provides reimbursement 
  3.9   for the amount lost; 
  3.10     (11) pay amounts required to correct an error in the levy 
  3.11  certified to the county auditor by a city or county in a levy 
  3.12  year, but only to the extent that when added to the preceding 
  3.13  year's levy it is not in excess of an applicable statutory, 
  3.14  special law or charter limitation, or the limitation imposed on 
  3.15  the governmental subdivision by sections 275.70 to 275.74 in the 
  3.16  preceding levy year; 
  3.17     (12) to pay an abatement under section 469.1815; 
  3.18     (13) to pay the employer contribution to the local 
  3.19  government correctional service retirement plan under section 
  3.20  353E.03, subdivision 2, to the extent that the employer 
  3.21  contribution exceeds 5.49 percent of total salary; and 
  3.22     (14) to pay the operating or maintenance costs of a county 
  3.23  jail as authorized in section 641.01 or 641.262, or of a 
  3.24  correctional facility as defined in section 241.021, subdivision 
  3.25  1, paragraph (5), to the extent that the county can demonstrate 
  3.26  to the commissioner of revenue that the amount has been included 
  3.27  in the county budget as a direct result of a rule, minimum 
  3.28  requirement, minimum standard, or directive of the department of 
  3.29  corrections.  If the county utilizes this special levy, any 
  3.30  amount levied by the county in the previous levy year for the 
  3.31  purposes specified under this clause and included in the 
  3.32  county's previous year's levy limitation computed under section 
  3.33  275.71, shall be deducted from the levy limit base under section 
  3.34  275.71, subdivision 2, when determining the county's current 
  3.35  year levy limitation.  The county shall provide the necessary 
  3.36  information to the commissioner of revenue for making this 
  4.1   determination; and 
  4.2      (15) for counties, to pay any increase in expenses due to 
  4.3   the county electing to provide assessment of all taxable 
  4.4   property in the county by the county assessor as provided in 
  4.5   sections 273.052 and 273.053.  To use this special levy, the 
  4.6   county shall have first elected to use its power under sections 
  4.7   273.052 and 273.053 after December 31, 1999.  The county shall 
  4.8   provide any information to the commissioner of revenue that the 
  4.9   commissioner considers necessary to determine the appropriate 
  4.10  amount to be levied under this clause. 
  4.11     Sec. 2.  Minnesota Statutes 1998, section 275.72, 
  4.12  subdivision 3, is amended to read: 
  4.13     Subd. 3.  [TRANSFER OF GOVERNMENTAL FUNCTIONS.] (a) If a 
  4.14  function or service of one local governmental unit is 
  4.15  transferred to another local governmental unit, the levy limits 
  4.16  established under section 275.71 shall be adjusted by the 
  4.17  commissioner of revenue in such manner so as to fairly and 
  4.18  equitably reflect the reduced or increased property tax burden 
  4.19  resulting from the transfer.  The aggregate of the adjusted 
  4.20  limitations shall not exceed the aggregate of the limitations 
  4.21  prior to adjustment except as provided in paragraph (b). 
  4.22     (b) If a county elects to provide assessment of all taxable 
  4.23  property in the county by the county assessor as provided in 
  4.24  sections 273.052 and 273.053 the county may special levy for the 
  4.25  associated costs under section 275.70, subdivision 5, clause 
  4.26  (15).  Any municipality subject to levy limits that is located 
  4.27  in that county shall have its levy limit established under 
  4.28  section 275.71 adjusted by the commissioner of revenue in such 
  4.29  manner so as to fairly and equitably reflect the reduced or 
  4.30  increased property tax burden resulting from the transfer.  The 
  4.31  amounts by which the levy limits of the municipalities are 
  4.32  reduced do not have to equal the amount that the county levies 
  4.33  for this purpose. 
  4.34     Sec. 3.  [EFFECTIVE DATE.] 
  4.35     Sections 1 and 2 are effective beginning with taxes levied 
  4.36  in 2001, payable in 2002, provided that the provisions of 
  5.1   sections 275.70 to 275.74 are also extended to taxes levied in 
  5.2   2001 or beyond.