Minnesota Legislature
SF 2520
as introduced - 88th Legislature (2013 - 2014) Posted on 03/11/2014 09:58am
Current Version - as introduced
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A bill for an act
relating to education finance; revising debt service equalization, health and
safety levy equalization, alternative facilities revenue equalization, and deferred
maintenance revenue equalization; amending Minnesota Statutes 2012, sections
123B.53, subdivision 4; 123B.59, subdivision 6, by adding subdivisions;
Minnesota Statutes 2013 Supplement, sections 123B.53, subdivisions 1, 5;
123B.57, subdivision 4; 123B.591, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:
(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, paragraph (a), minus
(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.
(b) The obligations in this paragraph are excluded from eligible debt service revenue:
(1) obligations under section 123B.61;
(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust;
(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24; and
(4) obligations under section 123B.62.; and
(5) obligations under section 123B.59 (alternative facilities).
(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.
(d) For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 2.
Minnesota Statutes 2012, section 123B.53, subdivision 4, is amended to read:
Subd. 4.
Debt service equalization revenue.
(a) The debt service equalization
revenue of a district equals the sum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.
(b) The first tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue minus the amount raised by a levy of 15.74
ten percent times the adjusted net tax capacity of the district minus the second tier debt
service equalization revenue of the district.
(c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section 123B.59, subdivision 5, minus the amount raised by a levy of 26.24 30 percent
times the adjusted net tax capacity of the district.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 3.
Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
amended to read:
Subd. 5.
Equalized debt service levy.
(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.
(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:
(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the third prior year adjusted pupil units in
the district for the school year ending in the year prior to the year the levy is certified; to
(2) $3,550 125 percent of the state average adjusted net tax capacity per third prior
year adjusted pupil unit.
(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:
(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the third prior year adjusted pupil units in
the district for the school year ending in the year prior to the year the levy is certified; to
(2) $7,900 300 percent of the state average adjusted net tax capacity per third prior
year adjusted pupil unit.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 4.
Minnesota Statutes 2013 Supplement, section 123B.57, subdivision 4, is
amended to read:
Subd. 4.
Health and safety levy.
To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the third prior year adjusted pupil units in the district for the school
year to which the levy is attributable, to $3,165 125 percent of the state average adjusted
net tax capacity per third prior year adjusted pupil unit.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 5.
Minnesota Statutes 2012, section 123B.59, is amended by adding a subdivision
to read:
Subd. 5a.
Alternative facilities equalization revenue.
A district's alternative
facilities equalization revenue equals the sum of the district's debt service levy for bonds
issued under subdivision 3 and the district's levy under subdivision 3a.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 6.
Minnesota Statutes 2012, section 123B.59, is amended by adding a subdivision
to read:
Subd. 5b.
Alternative facilities equalization levy.
A district's alternative facilities
equalization levy equals the product of the district's alternative facilities equalization
revenue for the fiscal year times the lesser of one or the ratio of the district's adjusted net
tax capacity per third prior year adjusted pupil unit to 125 percent of the state average
adjusted net tax capacity per third prior year adjusted pupil unit.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 7.
Minnesota Statutes 2012, section 123B.59, subdivision 6, is amended to read:
Subd. 6.
Alternative facilities equalization aid.
A district's alternative facilities
equalization aid is the greater of:
(a) the district's alternative facilities equalization revenue minus the district's
alternative facilities equalization levy times the ratio of the actual amount levied to the
permitted levy; or
(b) the amount equal to the district's annual debt service costs, provided that the
amount does not exceed the amount certified to be levied for those purposes for taxes
payable in 1997, or for a district that made a levy under subdivision 5, paragraph (b),
the lesser of the district's annual levy amount, or one-sixth of the amount of levy that it
certified for that purpose for taxes payable in 1998.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.
Sec. 8.
Minnesota Statutes 2013 Supplement, section 123B.591, subdivision 3, is
amended to read:
Subd. 3.
Deferred maintenance levy.
To obtain deferred maintenance revenue, a
district may levy an amount not more than the product of its deferred maintenance revenue
for the fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per
third prior year adjusted pupil unit to $5,965 125 percent of the state average adjusted
net tax capacity per third prior year adjusted pupil unit.
EFFECTIVE DATE.
This section is effective for taxes payable in 2016 and later.