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HF 3827

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/07/2022 04:17pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; modifying the reduction amount of the accelerated
June liability for certain tax payments; modifying certain reimbursement and local
aid payment dates ; amending Minnesota Statutes 2020, sections 273.1384,
subdivision 4; 287.12; 287.29; 473H.10, subdivision 3; 477A.015; Minnesota
Statutes 2021 Supplement, sections 16A.152, subdivision 2; 297F.09, subdivision
10; 297G.09, subdivision 9; Laws 2006, chapter 259, article 11, section 3, as
amended.

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

Section 1.

Minnesota Statutes 2021 Supplement, section 16A.152, subdivision 2, is
amended to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$2,377,399,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, by the same amount;

(5) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000; and

(6) for a forecast in November only, the amount remaining after the transfer under clause
(5) must be used to reduce the percentage of accelerated June liability new text beginmortgage registry,
deed,
new text endsalesnew text begin, cigarette and tobacco, and liquornew text end tax payments required under deleted text beginsectiondeleted text endnew text begin sections
287.12, paragraph (c); 287.29, subdivision 1, paragraph (c);
new text end 289A.20, subdivision 4,
paragraph (b)deleted text begin,deleted text endnew text begin; 297F.09, subdivision 10; and 297G.09, subdivision 9,new text end until the percentage
equals zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendorsnew text begin and distributorsnew text end based on the reduction required by this clause.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 273.1384, subdivision 4, is amended to read:


Subd. 4.

Payment.

(a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under subdivision 2
in two equal installments on deleted text beginOctober 31deleted text endnew text begin March 15new text end and December 26 of the taxes payable
year for which the reductions are granted, including in each payment the prior year
adjustments certified on the abstracts for that taxes payable year. The reimbursements related
to tax increments shall be issued in one installment each year on December 26.

(b) The commissioner of revenue shall certify the total of the tax reductions granted
under subdivision 2 for each taxes payable year within each school district to the
commissioner of the Department of Education and the commissioner of education shall pay
the reimbursement amounts to each school district as provided in section 273.1392.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made in calendar year 2023
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2020, section 287.12, is amended to read:


287.12 TAXES, HOW APPORTIONED.

(a) All taxes paid to the county treasurer under the provisions of sections 287.01 to
287.12 must be apportioned, 97 percent to the general fund of the state, and three percent
to the county revenue fund.

(b) On or before the 20th day of each month the county treasurer shall determine and
pay to the commissioner of revenue for deposit in the state treasury and credit to the general
fund the state's portion of the receipts from the mortgage registry tax during the preceding
month subject to the electronic payment requirements of section 270C.42. The county
treasurer shall provide any related reports requested by the commissioner of revenue.

(c) Counties must remitnew text begin 100 percent ofnew text end the state's portion of the June receipts collected
through June 25new text begin, or a reduced percentage of the June receipts as certified by the commissioner
under section 16A.152, subdivision 2, paragraph (a), clause (6),
new text end andnew text begin 100 percent ofnew text end the
estimated state's portion of the receipts to be collected during the remainder of the monthnew text begin
or a reduced percentage of the June receipts as certified by the commissioner under section
16A.152, subdivision 2, paragraph (a), clause (6),
new text end to the commissioner of revenue two
business days before June 30 of each year. The remaining amount of the June receipts is
due on August 20.new text begin This paragraph expires after the percentage of estimated payment is
reduced to zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause
(6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for remittances required after July 1,
2022.
new text end

Sec. 4.

Minnesota Statutes 2020, section 287.29, is amended to read:


287.29 PAYMENT OF RECEIPTS TO STATE GENERAL FUND; REPORTS.

Subdivision 1.

Appointment and payment of tax proceeds.

(a) The proceeds of the
taxes levied and collected under sections 287.21 to 287.385 must be apportioned, 97 percent
to the general fund of the state, and three percent to the county revenue fund.

(b) On or before the 20th day of each month, the county treasurer shall determine and
pay to the commissioner of revenue for deposit in the state treasury and credit to the general
fund the state's portion of the receipts for deed tax from the preceding month subject to the
electronic transfer requirements of section 270C.42. The county treasurer shall provide any
related reports requested by the commissioner of revenue.

(c) Counties must remitnew text begin 100 percent ofnew text end the state's portion of the June receipts collected
through June 25new text begin, or a reduced percentage of the June receipts as certified by the commissioner
under section 16A.152, subdivision 2, paragraph (a), clause (6),
new text end andnew text begin 100 percent ofnew text end the
estimated state's portion of the receipts to be collected during the remainder of the monthnew text begin
or a reduced percentage of the June receipts as certified by the commissioner under section
16A.152, subdivision 2, paragraph (a), clause (6),
new text end to the commissioner of revenue two
business days before June 30 of each year. The remaining amount of the June receipts is
due on August 20.new text begin This paragraph expires after the percentage of estimated payment is
reduced to zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause
(6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for remittances required after July 1,
2022.
new text end

Sec. 5.

Minnesota Statutes 2021 Supplement, section 297F.09, subdivision 10, is amended
to read:


Subd. 10.

Accelerated tax payment.

A cigarette distributor, tobacco products distributor,
retailer, or out-of-state retailer having a liability of $250,000 or more during a fiscal year
ending June 30, shall remit the June liability for the next year in the following manner:

(a) Two business days before June 30 of calendar year 2021, the distributor shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner. Two business
days before June 30 of calendar year 2022 and each calendar year thereafter, the distributor
must remit the actual May liability and 84.5 percentnew text begin, or a reduced percentage as certified
by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6),
new text end of the
estimated June liability to the commissioner and file the return in the form and manner
prescribed by the commissioner.

(b) On or before August 18 of the year, the distributor, retailer, or out-of-state retailer
shall submit a return showing the actual June liability and pay any additional amount of tax
not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability
required to be paid in June, less the amount remitted in June. However, the penalty is not
imposed if the amount remitted in June equals:

(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for that
calendar year or 87.5 percent of the May liability for that calendar year; or

(2) for calendar year 2022 and each calendar year thereafter, the lesser of 84.5 percentnew text begin,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6),
new text end of the actual June liability for that calendar year or 84.5 percentnew text begin,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6),
new text end of the May liability for that calendar year.

new text begin (c) This subdivision expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimate payments required to be
made after July 1, 2022.
new text end

Sec. 6.

Minnesota Statutes 2021 Supplement, section 297G.09, subdivision 9, is amended
to read:


Subd. 9.

Accelerated tax payment; penalty.

A person liable for tax under this chapter
having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the
June liability for the next year in the following manner:

(a) Two business days before June 30 of calendar year 2021, the taxpayer shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner. Two business
days before June 30 of calendar year 2022 and each calendar year thereafter, the distributor
must remit the actual May liability and 84.5 percentnew text begin, or a reduced percentage as certified
by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6),
new text end of the
estimated June liability to the commissioner and file the return in the form and manner
prescribed by the commissioner.

(b) On or before August 18 of the year, the taxpayer shall submit a return showing the
actual June liability and pay any additional amount of tax not remitted in June. A penalty
is imposed equal to ten percent of the amount of June liability required to be paid in June
less the amount remitted in June. However, the penalty is not imposed if the amount remitted
in June equals:

(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for that
calendar year or 87.5 percent of the May liability for that calendar year; or

(2) for calendar year 2022 and each calendar year thereafter, the lesser of 84.5 percentnew text begin,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6),
new text end of the actual June liability for that calendar year or 84.5 percentnew text begin,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6),
new text end of the May liability for that calendar year.

new text begin (c) This subdivision expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimate payments required to be
made after July 1, 2022.
new text end

Sec. 7.

Minnesota Statutes 2020, section 473H.10, subdivision 3, is amended to read:


Subd. 3.

Computation of tax; state reimbursement.

(a) After having determined the
market value of all land valued according to subdivision 2, the assessor shall compute the
net tax capacity of those properties by applying the appropriate classification rates. When
computing the rate of tax pursuant to section 275.08, the county auditor shall include the
net tax capacity of land as provided in this paragraph.

(b) The county auditor shall compute the tax on lands valued according to subdivision
2 and nonresidential buildings by multiplying the net tax capacity times the total local tax
rate for all purposes as provided in paragraph (a).

(c) The county auditor shall then compute the tax on lands valued according to subdivision
2 and nonresidential buildings by multiplying the net tax capacity times the total local tax
rate for all purposes as provided in paragraph (a), subtracting $1.50 per acre of land in the
preserve.

(d) The county auditor shall then compute the maximum ad valorem property tax on
lands valued according to subdivision 2 and nonresidential buildings by multiplying the net
tax capacity times 105 percent of the previous year's statewide average local tax rate levied
on property located within townships for all purposes.

(e) The tax due and payable by the owner of preserve land valued according to subdivision
2 and nonresidential buildings will be the amount determined in paragraph (c) or (d),
whichever is less. The state shall reimburse the taxing jurisdictions for the amount of the
difference between the net tax determined under this paragraph and the gross tax in paragraph
(b). Residential buildings shall continue to be valued and classified according to the
provisions of sections 273.11 and 273.13, as they would be in the absence of this section,
and the tax on those buildings shall not be subject to the limitation contained in this
paragraph.

The county may transfer money from the county conservation account created in section
40A.152 to the county revenue fund to reimburse the fund for the tax lost as a result of this
subdivision or to pay taxing jurisdictions within the county for the tax lost. The county
auditor shall certify to the commissioner of revenue on or before June 1 the total amount
of tax lost to the county and taxing jurisdictions located within the county as a result of this
subdivision and the extent that the tax lost exceeds funds available in the county conservation
account. Payment shall be made by the state on deleted text beginDecember 26deleted text endnew text begin June 30new text end to each of the affected
taxing jurisdictions, other than school districts, in the same proportion that the ad valorem
tax is distributed if the county conservation account is insufficient to make the reimbursement.
There is annually appropriated from the Minnesota conservation fund under section 40A.151
to the commissioner of revenue an amount sufficient to make the reimbursement provided
in this subdivision. If the amount available in the Minnesota conservation fund is insufficient,
the balance that is needed is appropriated from the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made in calendar year 2023
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2020, section 477A.015, is amended to read:


477A.015 PAYMENT DATES.

(a) The commissioner of revenue shall make the payments of local government aid to
affected taxing authorities in two installments on deleted text beginJuly 20deleted text endnew text begin March 15new text end and December 26
annually.

deleted text begin (b) Notwithstanding paragraph (a), for aids payable in 2019 only, the commissioner of
revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in
three installments as follows: (1) 14.6 percent of the aid shall be paid on June 15, 2019; (2)
35.4 percent of the aid shall be paid on July 20, 2019; and (3) 50 percent of the aid shall be
paid on December 26, 2019.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety shall
notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical
after the determination is made but not before July 20.

deleted text begin (d)deleted text endnew text begin (c)new text end The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a
local government requests such payment as being necessary for meeting its cash flow needs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 9.

Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to
read:


Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
PROPERTY TAX REIMBURSEMENT.

Subdivision 1.

Aid appropriation.

$1,200,000 is appropriated annually from the general
fund to the commissioner of revenue to be used to make payments to compensate for the
loss of property tax revenue related to the trust conversion application of the Shooting Star
Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of
Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000.
The payments shall be made on July 20, of 2013 and each subsequent yearnew text begin through calendar
year 2022. In calendar year 2023 and each subsequent year, the payments to the county of
Mahnomen and the city of Mahnomen shall be made on March 15 and the payment to
Independent School District No. 432, Mahnomen shall be made on July 20
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made in calendar year 2023
and thereafter.
new text end