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HF 496

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2021 04:26pm

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

Bill Text Versions

Engrossments
Introduction Posted on 01/28/2021

Current Version - as introduced

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A bill for an act
relating to taxation; property; establishing a citizens' property tax advisory
committee; requiring additional information to be sent with the notice of proposed
property taxes; establishing Minnesota Property Taxpayer's Day; amending
Minnesota Statutes 2020, section 275.065, subdivisions 1, 3, by adding
subdivisions; proposing coding for new law in Minnesota Statutes, chapter 275.

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

Section 1.

new text begin [275.055] CITIZENS' PROPERTY TAX ADVISORY COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment and duties. new text end

new text begin Each county board and council of a city with
a population of at least 500 must establish a citizens' property tax advisory committee to
ensure active community participation in budget and property tax levy planning. The
committee must provide input and make recommendations to the county board or city
council on the budget for the following year, at least seven days prior to the certification of
the proposed levy under section 275.065, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Structure. new text end

new text begin To the extent possible, the committee must reflect the diversity of
the jurisdiction and include members from a variety of geographical areas within the
jurisdiction. For a committee established by a county board, at least nine members must
make up the committee. For a committee established by a city council, the minimum number
of members on the committee must be nine or the number of wards within the city, whichever
is greater.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2022 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the contrary,
on or before September 30, each county, home rule charter or statutory city, town, and
special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito
Control Commission, shall certify to the county auditor the proposed property tax levy for
taxes payable in the following year. For towns, the final certified levy shall also be considered
the proposed levy.new text begin Each county and city with a population of at least 500 must annually
notify the public of its revenue, expenditures, fund balances, and other relevant budget
information that is used to establish the proposed property tax levy. These taxing jurisdictions
must solicit feedback on the budget and proposed levy from the public prior to certifying
the proposed levy under this subdivision.
new text end

(b) Notwithstanding any law or charter to the contrary, on or before September 15, the
Metropolitan Council and the Metropolitan Mosquito Control Commission shall adopt and
certify to the county auditor a proposed property tax levy for taxes payable in the following
year.

(c) On or before September 30, each school district that has not mutually agreed with
its home county to extend this date shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. Each school district that has agreed with
its home county to delay the certification of its proposed property tax levy must certify its
proposed property tax levy for the following year no later than October 7. The school district
shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between voter-approved
and non-voter-approved levies and between referendum market value and tax capacity
levies; or

(2) the maximum levy limitation certified by the commissioner of education according
to section 126C.48, subdivision 1.

(d) If the board of estimate and taxation or any similar board that establishes maximum
tax levies for taxing jurisdictions within a first class city certifies the maximum property
tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
in paragraph (a), the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(e) For purposes of this section, "special taxing district" means a special taxing district
as defined in section 275.066. Intermediate school districts that levy a tax under chapter
124 or 136D, joint powers boards established under sections 123A.44 to 123A.445, and
Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
taxing districts for purposes of this section.

(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place of
any subsequent regularly scheduled meetings at which the budget and levy will be discussed
and at which the public will be allowed to speak. The time and place of those meetings must
be included in the proceedings or summary of proceedings published in the official newspaper
of the taxing authority under section 123B.09, 375.12, or 412.191.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2022 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2020, 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. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by deleted text beginelectronic maildeleted text endnew text begin e-mailnew text end instead of
on paper or by ordinary mail.

(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.
The notice must clearly state for each deleted text begincity that has a population over 500, county, school
district,
deleted text end regional library authority established under section 134.201deleted text begin,deleted text end and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. deleted text beginThe taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1.
deleted text end The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m.new text begin The notice must state for
each city that has a population over 500, county, and school district, the time and place of
the meeting to be held pursuant to subdivision 11. The taxing authorities must provide the
county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1.
new text end It must provide 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, except that no notice required under this
section shall be interpreted as requiring the printing of a personal telephone number or
address as the contact information for a taxing authority. If a taxing authority does not
maintain public offices where telephone calls can be received by the authority, the authority
may inform the county of the lack of a public telephone number and the county shall not
list a telephone number for that taxing authority.

(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, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387, 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; and

(ii) the proposed tax amount.

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 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 tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy 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; 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 and subdivision 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.

(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 property taxes payable in 2022 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision to
read:


new text begin Subd. 3b. new text end

new text begin Notice of proposed property taxes required supplemental information. new text end

new text begin (a)
The county auditor must prepare a separate statement to be delivered with the notice of
proposed taxes described in subdivision 3. The statement must fit on one sheet of paper and
contain for each parcel:
new text end

new text begin (1) for the county, city or township, and school district in which the parcel lies, the
certified levy for the current taxes payable year, the proposed levy for taxes payable in the
following year, and the increase or decrease between these two amounts, expressed as a
percentage;
new text end

new text begin (2) summary budget information listed in paragraph (b); and
new text end

new text begin (3) information on how to access each taxing authority's website where the taxpayer can
find the proposed budget and information on how to participate in person and remotely in
the Minnesota Property Taxpayer's Day meetings, held pursuant to subdivision 11.
new text end

new text begin (b) Summary budget information must contain budget data from the county, city, and
school district that proposes a property tax levy on the parcel for taxes payable the following
year. For the school district, the summary budget data must include the information provided
to the public under section 123B.10, subdivision 1, paragraph (b), for the current year and
following year. For the county and city, the reported summary budget data must contain
the same information, in the same categories, and in the same format as provided to the
Office of the State Auditor as required by section 6.745. The statement must provide the
governmental revenues and current expenditures information in clauses (1) and (2) for the
taxing authority's budget for taxes payable the following year and the taxing authority's
budget from taxes payable in the current year, as well as the percent change between the
two years. The city must provide the county auditor with the summary budget data at the
same time as the information required under subdivision 3. Only cities with a population
at least 500 are required to report the data described in this paragraph. If a city with a
population over 500 fails to report the required information to the county auditor, the county
auditor must list the city as "budget information not reported" on the portion of the statement
dedicated to the city's budget information. The statement may take the same format as the
annual summary budget report for cities and counties issued by the Office of the State
Auditor. The summary budget data must include:
new text end

new text begin (1) a governmental revenues category, including and separately stating:
new text end

new text begin (i) "property taxes" defined as property taxes levied on an assessed valuation of real
property and personal property, if applicable, by the city and county, including fiscal
disparities;
new text end

new text begin (ii) "special assessments" defined as levies made against certain properties to defray all
or part of the costs of a specific improvement, such as new sewer and water mains, deemed
to benefit primarily those properties;
new text end

new text begin (iii) "state general purpose aid" defined as aid received from the state that has no
restrictions on its use, including local government aid, county program aid, and market
value credits; and
new text end

new text begin (iv) "state categorical aid" defined as revenues received for a specific purpose, such as
streets and highways, fire relief, and flood control, including but not limited to police and
fire state aid and out-of-home placement aid; and
new text end

new text begin (2) a current expenditures category, including and separately stating:
new text end

new text begin (i) "general government" defined as administration costs of city or county governments,
including salaries of officials and maintenance of buildings;
new text end

new text begin (ii) "public safety" defined as costs related to the protection of persons and property,
such as police, fire, ambulance services, building inspections, animal control, and flood
control;
new text end

new text begin (iii) "streets and highways" defined as costs associated with the maintenance and repair
of local highways, streets, bridges, and street equipment, such as patching, seal coating,
street lighting, street cleaning, and snow removal;
new text end

new text begin (iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed
and pest control;
new text end

new text begin (v) "human services" defined as activities designed to provide public assistance and
institutional care for individuals economically unable to provide for themselves;
new text end

new text begin (vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection,
communicable disease control, and various health services and clinics;
new text end

new text begin (vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing,
planting, removal of trees, festivals, bands, museums, community centers, cable television,
baseball fields, and organized recreation activities;
new text end

new text begin (viii) "conservation of natural resources" defined as the conservation and development
of natural resources, including agricultural and forestry programs and services, weed
inspection services, and soil and water conservation services;
new text end

new text begin (ix) "economic development and housing" defined as costs for development and
redevelopment activities in blighted or otherwise economically disadvantaged areas, including
low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and
other physical facilities, and other assistance to those wanting to provide housing and
economic opportunity within a disadvantaged area; and
new text end

new text begin (x) "all other current expenditures" defined as costs not classified elsewhere, such as
airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs,
and public transportation costs.
new text end

new text begin (c) If a taxing authority reporting this data does not have revenues or expenditures in a
category listed in paragraph (b), then the taxing authority must designate the amount as "0"
for that specific category.
new text end

new text begin (d) The supplemental statement provided under this subdivision must be sent in electronic
form or by e-mail if the taxpayer requests an electronic version the notice of proposed
property taxes under subdivision 3, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2022 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision to
read:


new text begin Subd. 11. new text end

new text begin Minnesota Property Taxpayer's Day. new text end

new text begin (a) Notwithstanding any other provision
of law, on the first Wednesday following the first Monday in December, each county, city
with a population of at least 500, and each school district must annually hold a meeting to
discuss each taxing authority's proposed budget and levy for the upcoming taxes payable
year, prior to the final budget and levy determination. This meeting shall be known as
"Minnesota Property Taxpayer's Day."
new text end

new text begin (b) Counties must begin a meeting at 6:00 p.m. and discuss the county's budget and levy.
The public must be allowed to speak no later than 20 minutes after the start of the meeting.
Cities must begin a meeting to discuss their budget and levy at 7:00 p.m. and must allow
the public to speak no later than 20 minutes after the start of the meeting. School districts
must begin a meeting to discuss their budget and levy at 8:00 p.m. and must allow the public
to speak no later than 20 minutes after the start of the meeting.
new text end

new text begin (c) Each taxing jurisdiction must broadcast the meeting virtually and provide a method
for the public to participate in person and remotely. Information about the meeting, including
instructions on how to participate remotely, must be posted on the website of each taxing
jurisdiction required to hold a meeting under this subdivision by November 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end