HF 4155

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; modifying the format of the proposed tax notice;
amending Minnesota Statutes 2004, section 275.065, by adding subdivisions;
Minnesota Statutes 2005 Supplement, section 275.065, subdivision 3.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 275.065, subdivision 3,
is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the case
of a town, or in the case of the state general tax, the final tax amount will be its proposed
tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
the notice must clearly state that each taxing authority, including regional library districts
established under section 134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the proposed budget and proposed or
final property tax levy, or, in case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of each taxing authority's
meeting, a telephone number for the taxing authority that taxpayers may call if they have
questions related to the notice, and an address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; deleted text begin and
deleted text end

(ii) the proposed tax amount new text begin ;
new text end

new text begin (iii) the tax change due to spending factors, defined as the proposed tax minus the
constant spending tax; and
new text end

new text begin (iv) the tax change due to the change in market value, defined as the constant
spending tax minus the base year constant spending tax new text end .

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for the Minneapolis Library Board and the levy
for Minneapolis Park and Recreation shall be listed separately from the remaining amount
of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of the city's levy. In the case
of Ramsey County, any amount levied under section 134.07 may be listed separately from
the remaining amount of the county's levy. In the case of a parcel where deleted text begin tax increment
or deleted text end the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed
tax levy deleted text begin on the captured value or the proposed tax levy deleted text end on the tax capacity subject to the
areawide tax must each be stated separately and not included in the sum of the special
taxing districts new text begin . In the case of a parcel subject to tax increment financing, the tax amounts
shown shall be determined as if the entire property were subject to taxation by the relevant
local taxing jurisdictions, rather than by the tax increment financing district new text end ; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
taxing districts" means the following taxing districts in the seven-county metropolitan area
that levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and shall be discussed at that
county's public hearing.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed property tax notices
prepared in 2006 for taxes payable in 2007 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.065, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Constant spending levy. new text end

new text begin (a) For purposes of this section, "constant
spending levy" for a county, city, town, or special taxing district means the property tax
levy that the taxing authority would need to levy so that the sum of its levy, including
its fiscal disparities distribution levy under section 276A.06, subdivision 3, clause (a),
or 473F.08, subdivision 3, clause (a), plus its property tax aid amounts, would remain
constant from the current year to the proposed year, taking into account the property tax aid
amounts that have been certified for the proposed year. For the purposes of this paragraph,
"property tax aids" means local government aid under section 477A.013, and county
program aid under section 477A.0124. For the purposes of this paragraph, "property tax
levy" means the levy net of any reductions in market value credit reimbursements under
section 273.1384.
new text end

new text begin (b) For the voter approved school levy, "constant spending levy" is the result of the
following computation: (i) compute the current year's revenue per pupil in average daily
membership as the ratio of the voter approved referendum and debt service levy plus aid
revenue to the number of pupils in average daily membership, as estimated at the time of
levy certification the previous December; (ii) compute the proposed year's levy ratio as
the ratio of the proposed year's levy limitation for voter approved referendum and debt
service revenue to the maximum referendum and debt service levy plus aid revenue for the
proposed year, at the time of proposed levy certification in September; and (iii) compute
the "constant spending levy" as the product of the current year's revenue per pupil from
clause (i) times the proposed year's levy ratio from clause (ii) times the proposed year's
pupils in average daily membership.
new text end

new text begin (c) For the sum of all other school levies not included in paragraph (b), "constant
spending levy" is the result of the following computation: (i) compute the current year's
revenue per pupil in average daily membership as the ratio of the levy plus associated aid
revenue to the number of pupils in average daily membership, as estimated at the time
of levy certification the previous December; (ii) compute the proposed year's levy ratio
as the ratio of the proposed year's levy limitation to the maximum levy plus associated
aid revenue for the proposed year, estimated at the time of proposed levy certification in
September; and (iii) compute the "constant spending levy" as the product of the current
year's revenue per pupil from clause (i) times the proposed year's levy ratio from clause
(ii) times the proposed year's pupils in average daily membership.
new text end

new text begin (d) Each year, the commissioner of education must compute and report to the county
auditor each school district's constant spending levy by September 30. In no case shall a
constant spending levy be less than $0. For purposes of this subdivision, the school fiscal
disparities distribution levy shall be apportioned proportionately among levy categories.
new text end

new text begin (e) For the fiscal disparities tax, the "constant spending levy" is the same as the
proposed tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed property tax notices
prepared in 2006 for taxes payable in 2007 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 275.065, is amended by adding a subdivision
to read:

new text begin Subd. 3c. new text end

new text begin Constant spending tax. new text end

new text begin For purposes of this section, "constant spending
tax" for a specific property for a specific taxing jurisdiction means the net tax that would
be payable to the jurisdiction based on a hypothetical computation of taxes using: (i) the
property's taxable market value for the proposed year; (ii) each jurisdiction's net tax
capacity, referendum market value, and fiscal disparities distribution levy, if applicable, for
the proposed year; and (iii) each jurisdiction's constant spending levy under subdivision
3b.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed property tax notices
prepared in 2006 for taxes payable in 2007 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2004, section 275.065, is amended by adding a subdivision
to read:

new text begin Subd. 3d. new text end

new text begin Base year constant spending tax. new text end

new text begin For purposes of this section, "base
year constant spending tax" for a specific property for a specific taxing jurisdiction
means the net tax that would be payable to the jurisdiction based on a hypothetical
computation of taxes using: (i) the property's taxable market value for the current year;
(ii) each jurisdiction's net tax capacity, referendum market value, and fiscal disparities
distribution levy, if applicable, for the current year; and (iii) each jurisdiction's constant
spending levy under subdivision 3b.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed property tax notices
prepared in 2006 for taxes payable in 2007 and thereafter.
new text end