HF 3638

as introduced - 86th Legislature (2009 - 2010) Posted on 03/11/2010 09:34am

A bill for an act
relating to property taxation; requiring the commissioner of revenue to conduct a
study of the metropolitan fiscal disparities program; transferring money from the
fiscal disparities levy to pay for the study.

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

Section 1. new text begin FISCAL DISPARITIES STUDY.
new text end

new text begin The commissioner of revenue must conduct a study of the metropolitan revenue
distribution program contained in Minnesota Statutes, chapter 473F, commonly known
as the fiscal disparities program. On or before February 1, 2012, the commissioner shall
submit a report to the chairs of the house of representatives and senate tax committees
consisting of the findings of the study and any recommendations resulting from the study.
new text end

new text begin The study must consider the extent to which the program is meeting the following
goals, and recommend changes that could be made to the program in the furtherance
of meeting those goals:
new text end

new text begin (1) reducing the extent to which the property tax encourages development patterns
that do not make cost-effective use of public infrastructure or impose other high public
costs;
new text end

new text begin (2) ensuring that the benefits of economic growth of the region are shared throughout
the region, especially for growth that results from state or regional decisions;
new text end

new text begin (3) improving the ability of each jurisdiction within the region to deliver services at
a level commensurate with its tax effort;
new text end

new text begin (4) compensating jurisdictions containing properties that provide regional benefits
for the costs those properties impose on their host jurisdictions in excess of their tax
payments;
new text end

new text begin (5) promoting a fair distribution of property tax burdens across jurisdictions of
the region; and
new text end

new text begin (6) reducing the economic losses that result from competition among communities
for commercial-industrial tax base.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011.
new text end

Sec. 2. new text begin FUND TRANSFER FROM FISCAL DISPARITIES LEVY.
new text end

new text begin For taxes payable in 2011 only, the Metropolitan Council must certify to the Ramsey
County auditor the amount of $100,000, to be certified by the Ramsey County auditor to
the administrative auditor as an addition to the Metropolitan Council's areawide levy
under Minnesota Statutes, section 473F.08, subdivision 5. Upon receipt of the proceeds
of this levy, the Metropolitan Council must transfer this money to the commissioner of
revenue to be used to pay for the study required under section 1.
new text end