HF 4646

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/28/2022 02:39pm

A bill for an act
relating to taxation; property; imposing levy limits for certain cities.

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

Section 1. new text begin LEVY LIMITS FOR CITIES WITH RENT CONTROL.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "City" means a statutory or home rule charter city.
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new text begin (c) "Commissioner" means the commissioner of revenue.
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new text begin (d) "Generating operating levy" means a city's levy for all purposes other than special
levies.
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new text begin (e) "Rent control" means an ordinance, charter amendment, or any other law that places
controls or limitations on rents imposed on private residential property.
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new text begin (f) "Special levies" has the meaning given in Minnesota Statutes, section 275.70,
subdivision 5.
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new text begin Subd. 2. new text end

new text begin Property tax levy limit. new text end

new text begin (a) Notwithstanding any other provisions of law or
municipal charter to the contrary which authorizes ad valorem taxes in excess of the limits
established in this section, the provisions of this section apply to a city for all purposes other
than those for which special levies are made.
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new text begin (b) Beginning with taxes levied in 2022, a city that has adopted rent control is prohibited
from increasing its general operating levy from the prior year by an amount that exceeds
the percentage limitation placed on rent increases under the city's rent control measure.
Special levies authorized under Minnesota Statutes, section 275.70, subdivision 5, shall not
be included in the calculation of the levy limit imposed under this section.
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new text begin Subd. 3. new text end

new text begin Calculation and notification. new text end

new text begin (a) By August 1, 2022, and each August 1
thereafter, each city that has adopted rent control must provide to the Department of Revenue
a copy of the city's rent control measure.
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new text begin (b) The commissioner of revenue shall make all necessary calculations for determining
levy limits for cities and shall notify each city of its levy limit by September 1. Each city
must, upon request by the commissioner, provide the commissioner with any information
needed to make the calculations. Each city shall report by September 30, in a manner
prescribed by the commissioner, the maximum amount of taxes the city plans to levy for
each of the purposes listed under special levies along with any necessary documentation.
The final allowed special levy amounts and any levy limit adjustments must be certified
back to each city by December 10. In addition, the commissioner of revenue shall notify
all county auditors on or before five working days after December 20 of the sum of the levy
limit plus the total of allowed special levies for each city located within their boundaries so
that the auditor may fix the levies as required in Minnesota Statutes, section 275.16.
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new text begin (c) If a city fails to provide the commissioner with information necessary to make the
calculation under this section, or if the information is deemed insufficient to make the
calculation, the commissioner has the discretion to set the city's levy limit for all purposes
including those purposes for which special levies may be made, equal to the amount of the
city's certified levy for the prior year.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes levied in 2022.
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