HF 984

as introduced - 89th Legislature (2015 - 2016) Posted on 02/23/2015 04:29pm

A bill for an act
relating to property taxation; phasing out the state general levy over six years;
repealing the student achievement levy; amending Minnesota Statutes 2014,
sections 126C.13, subdivision 4; 275.025, subdivision 1; repealing Minnesota
Statutes 2014, section 126C.13, subdivisions 3a, 3b, 3c.

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

Section 1.

Minnesota Statutes 2014, section 126C.13, subdivision 4, is amended to read:

Subd. 4.

General education aid.

deleted text begin (a) For fiscal years 2013 and 2014 only, a district's
general education aid is the sum of the following amounts:
deleted text end

deleted text begin (1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;
deleted text end

deleted text begin (2) operating capital aid under section 126C.10, subdivision 13b;
deleted text end

deleted text begin (3) equity aid under section 126C.10, subdivision 30;
deleted text end

deleted text begin (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
deleted text end

deleted text begin (5) transition aid under section 126C.10, subdivision 33;
deleted text end

deleted text begin (6) shared time aid under section 126C.01, subdivision 7;
deleted text end

deleted text begin (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
deleted text end

deleted text begin (8) online learning aid according to section 124D.096.
deleted text end

deleted text begin (b) For fiscal year 2015 and later, deleted text end A district's general education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue,
local optional revenue, and transition revenue deleted text begin , minus the student achievement levy,
multiplied times the ratio of the actual amount of student achievement levy levied to the
permitted student achievement levy deleted text end ; plus

(2) equity aid under section 126C.10, subdivision 30; plus

(3) transition aid under section 126C.10, subdivision 33; plus

(4) shared time aid under section 126C.10, subdivision 7; plus

(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus

(6) online learning aid under section 124D.096; plus

(7) local optional aid according to section 126C.10, subdivision 2d, paragraph (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid for fiscal year 2017
and later.
new text end

Sec. 2.

Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy deleted text begin base amount deleted text end is deleted text begin $592,000,000 deleted text end new text begin $768,900,000 new text end for
taxes payable in deleted text begin 2002. For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysts of the United States Department of Commerce for
the 12-month period ending March 31 of the year prior to the year the taxes are payable deleted text end new text begin
2016, $683,500,000 for taxes payable in 2017, $512,600,000 for taxes payable in 2018,
$341,700,000 for taxes payable in 2019, $170,900,000 for taxes payable in 2020, and
$0 for taxes payable in 2021 and thereafter new text end . The tax under this section is not treated as
a local tax rate under section 469.177 and is not the levy of a governmental unit under
chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 126C.13, subdivisions 3a, 3b, and 3c, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2016 and
thereafter.
new text end