Minnesota Legislature
HF 1638
as introduced - 88th Legislature (2013 - 2014) Posted on 03/20/2013 10:41am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/20/2013 |
Current Version - as introduced
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A bill for an act
relating to taxation; property; providing for an annual adjustment in the rate
of the disparity reduction credit; amending Minnesota Statutes 2012, section
273.1398, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
Subd. 4.
Disparity reduction credit.
(a) deleted text begin Beginning with taxes payable in 1989,
deleted text end Class 4anew text begin , 4d,new text end and class 3a property qualifies for a disparity reduction credit if: (1) the
property is located in a border city that has an enterprise zone, as defined in section
469.166; (2) the property is located in a city with a population greater than 2,500 and less
than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in
another state or immediately adjacent to a city adjacent to a city in another state; and (4)
the adjacent city in the other state has a population of greater than 5,000 and less than
75,000 according to the 1980 decennial census.
new text begin
(b) By January 2 of each year, the commissioner of revenue must determine the
effective tax rate for the taxing district with the lowest effective tax rate in each city
described in paragraph (a), clause (4), for properties equivalent to class 3a, 4a, and 4d
property, for taxes payable in the current year. For the purposes of this subdivision,
"effective tax rate" for a class of property means the net tax on a property of that type,
including any discount for early payment, divided by the property's estimated market
value. For the purposes of this paragraph, the lowest effective tax rate for a city includes
the tax rates of any contiguous cities in the same state with a population greater than 5,000
and less than 75,000 according to the 1980 decennial census.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The credit is an amount sufficient to reduce deleted text begin (i)deleted text end the taxes levied on class 4anew text begin ,
4d, andnew text end deleted text begin property to 2.3 percent of the property's market value and (ii) the tax on classdeleted text end 3a
property to new text begin the lesser of (1) new text end 2.3 percent of market valuenew text begin , or (2) the most recent effective
tax rate determined by the commissioner under paragraph (b) for that type of property in
the corresponding adjacent citynew text end .
deleted text begin (c)deleted text end new text begin (d)new text end The county auditor shall annually certify the costs of the credits to the
Department of Revenue. The department shall reimburse local governments for the
property taxes forgone as the result of the credits in proportion to their total levies.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2014.
new text end