HF 408

as introduced - 89th Legislature (2015 - 2016) Posted on 01/29/2015 01:46pm

A bill for an act
relating to taxation; property; levy limits; clarifying that wind generation and
solar production taxes are not subject to levy limits; amending Minnesota
Statutes 2014, sections 275.70, subdivision 6; 275.71, subdivision 5.

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

Section 1.

Minnesota Statutes 2014, section 275.70, subdivision 6, is amended to read:

Subd. 6.

Levy aid base.

"Levy aid base" for a local governmental unit for a levy
year means its total levy spread on net tax capacity, minus any amounts that would
qualify as a special levy under this section, plus the sum of (1) the total amount of aids
and reimbursements that the local governmental unit is certified to receive under sections
477A.011 to 477A.014 in the same year, new text begin and new text end (2) taconite aids under sections 298.28
and 298.282 in the same year, including any aid which was required to be placed in a
special fund for expenditure in the next succeeding year deleted text begin , and (3) payments to the local
governmental unit under section 272.029 in the same year, adjusted for any error in
estimation in the preceding year deleted text end . new text begin Payments of production taxes under sections 272.029
and 272.0295 are not included in the levy aid base.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2016 and thereafter, but only if levy limits under Minnesota Statutes, sections 275.70 to
275.74, are in effect for that calendar year.
new text end

Sec. 2.

Minnesota Statutes 2014, section 275.71, subdivision 5, is amended to read:

Subd. 5.

Property tax levy limit.

(a) deleted text begin For taxes levied in 2008 through 2010, deleted text end The
property tax levy limit for a local governmental unit is equal to its adjusted levy limit base
determined under subdivision 4 plus any additional levy authorized under section 275.73,
which is levied against net tax capacity, reduced by the sum of (i) the total amount of aids
and reimbursements that the local governmental unit is certified to receive under sections
477A.011 to 477A.014, new text begin and new text end (ii) taconite aids under sections 298.28 and 298.282 including
any aid which was required to be placed in a special fund for expenditure in the next
succeeding year deleted text begin , (iii) estimated payments to the local governmental unit under section
272.029, adjusted for any error in estimation in the preceding year, and (iv) aids under
section 477A.16 deleted text end . new text begin Payments of production taxes under sections 272.029 and 272.0295 are
not reductions to the property tax levy limit.
new text end

(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
government unit's levy limit is reduced by an unallotment under section 16A.152, the
amount of the aid, payment, or other amount prior to the unallotment is used in the
computations in paragraph (a). In order for a local government unit to levy outside of its
limit to offset the reduction in revenues attributable to an unallotment, it must do so under,
and to the extent authorized by, a special levy authorization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2016 and thereafter, but only if levy limits under Minnesota Statutes, sections 275.70 to
275.74, are in effect for that calendar year.
new text end