1998 Minnesota Statutes

     298.282 Distribution of taconite municipal aid account; 
  taconite municipal aid; payment. 

    Subdivision 1.  The amount deposited with the county as 
 provided in section 298.28, subdivision 3, shall be distributed 
 as provided by this section, among the municipalities comprising 
 a tax relief area under section 273.134, as amended hereby, each 
 being herein referred to as a qualifying municipality. 

    Subd. 2.  (a) Each year following the final determination 
 of the amount of taxes payable under section 298.24, the 
 commissioner of revenue shall determine the amount in the 
 taconite municipal aid account as of July 1 of that year and the 
 amount to be distributed to each qualifying municipality during 
 the year.  The amount to be distributed to each qualifying 
 municipality shall be determined by determining an index for 
 each qualifying municipality by subtracting its local effort tax 
 rate, multiplied by its equalized gross tax capacity, from its 
 fiscal need factor.  For the purposes of this subdivision, the 
 following terms have the meanings given them herein.  A 
 municipality's "local effort tax rate" means its fiscal need 
 factor per capita divided by $21 per capita for each one percent 
 of the gross local tax rate or $17 per capita for each one 
 percent of the net local tax rate for the first $350 of its 
 fiscal need factor per capita; plus its fiscal need factor per 
 capita divided by $18 per capita for each one percent of the 
 gross local tax rate or $15 per capita for each one percent of 
 the net local tax rate on that part of its fiscal need factor 
 per capita, if any, in excess of $350.  In no case shall a 
 municipality's local effort tax rate be less than a gross local 
 tax rate of 6.56 percent or a net local tax rate of 8.16 
 percent.  A municipality's "equalized gross tax capacity" means 
 its previous year tax capacity, less the tax capacity in any tax 
 increment district, divided by the municipality's aggregate 
 sales ratio covering the period ending two years prior to the 
 year of aid distribution.  A municipality's "fiscal need factor" 
 means the three-year average of the sum of its municipal levy, 
 taconite aids received under section 298.28, subdivisions 2, 11, 
 paragraph (b), and this section and its local government aid 
 distribution amount, for taxes payable and distribution amounts 
 receivable in the three years immediately preceding the aid 
 distribution year.  

    The ratio of the resulting index for each qualifying 
 municipality to the sum of all qualifying municipalities' 
 indexes shall be multiplied by the total amount in the taconite 
 municipal aid account less the amount distributed pursuant to 
 subdivision 5.  

    (b) If the distribution under this section, sections 
 273.138, 298.26 and 298.28, and chapter 477A, to any 
 municipality would exceed that municipality's levy for that 
 year, the amount in excess of the levy for that year shall 
 reduce the amount distributed to the municipality under this 
 section and this excess amount shall be distributed to the other 
 qualifying municipalities in the same manner as the distribution 
 made pursuant to subdivision 2, except that the qualifying 
 municipality receiving an initial distribution when added to 
 that received pursuant to sections 273.138, 298.26, 298.28, and 
 chapter 477A in excess of the qualifying municipality's levy, 
 shall not receive a distribution nor shall its index be used in 
 computing the distribution pursuant to this clause.  The 
 distributions to be received in the year in which the taxes are 
 payable shall be compared to the levy for that same year.  Upon 
 completion of the determination, the commissioner of revenue 
 shall certify to the chief clerical officer of each qualifying 
 municipality the amount which will be distributed to the 
 municipality from the taconite municipal aid account that year. 

    Subd. 3.  If the amount certified by the commissioner of 
 revenue as distributable to any qualifying municipality is 
 greater than the amount previously estimated to have been 
 distributable to such qualifying municipality in such year, the 
 excess distributed to such municipality shall be held in a 
 separate fund by the qualifying municipality and shall not be 
 expended until the succeeding calendar year.  If the amount 
 distributable to any qualifying municipality, after final 
 determination by the commissioner of revenue is less than the 
 amount estimated to have been distributable to such qualifying 
 municipality, such municipality may issue certificates of 
 indebtedness in the amount of the shortage and may include in 
 its next tax levy an amount sufficient to pay such certificates 
 of indebtedness and interest thereon or, if no certificates were 
 issued, an amount equal to such shortage. 

    Subd. 4.  On or before September 15 of each year, the 
 county auditor shall issue a warrant in favor of the treasurer 
 of each qualifying municipality in the amount determined by the 
 commissioner of revenue to be due and payable to such qualifying 
 municipality in such year.  

    Subd. 5.  The county auditor shall annually on September 15 
 make a payment from the taconite municipal aid fund to cities 
 and towns for the purpose of replacing the revenue loss to them 
 resulting from Laws 1975, chapter 437, article XI, section 7.  
 The amount of aid to be paid annually to each city and town is 
 the amount they were entitled to receive for 1975 under the 
 provisions of Minnesota Statutes 1974, section 298.32. 

    HIST: Ex1971 c 31 art 30 s 6; 1973 c 492 s 14; 1973 c 582 s 3; 
 1973 c 631 s 7-9; 1975 c 46 s 10; 1976 c 328 s 1,2; 1977 c 423 
 art 10 s 17,18; 1978 c 767 s 35; 1984 c 522 s 16; 1Sp1985 c 14 
 art 10 s 19-21; 1986 c 441 s 13; 1986 c 444; 1987 c 384 art 2 s 
 1; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 28; 1989 c 329 art 
 13 s 20; 1Sp1989 c 1 art 2 s 11; art 5 s 21,22