2004 Minnesota Statutes

     477A.011 Definitions. 

    Subdivision 1.    Application.  For the purposes of 
 sections 477A.011 to 477A.014 the following terms shall have 
 these meanings, unless otherwise provided to the contrary.  

    Subd. 1a.    City.  "City" means a statutory or home 
 rule charter city.  

    Subd. 1b.    Town.  "Town" means a township. 

    Subd. 2. Repealed, 1996 c 310 s 1 

    Subd. 2a.    Special taxing district.  "Special taxing 
 district" means a political subdivision with the authority to 
 levy property taxes, other than a city, county, town, or school 
 district. 

    Subd. 3.    Population.  "Population" means the 
 population established as of July 1 in an aid calculation year 
 by the most recent federal census, by a special census conducted 
 under contract with the United States Bureau of the Census, by a 
 population estimate made by the Metropolitan Council, or by a 
 population estimate of the state demographer made pursuant to 
 section 4A.02, whichever is the most recent as to the stated 
 date of the count or estimate for the preceding calendar year.  
 The term "per capita" refers to population as defined by this 
 subdivision. 

    Subd. 3a. Repealed, 1993 c 375 art 4 s 21 

    Subd. 4. Repealed, 1988 c 719 art 5 s 81 

    Subd. 5. Repealed, 1988 c 719 art 5 s 81 

    Subd. 6. Repealed, 1988 c 719 art 5 s 81 

    Subd. 7. Repealed, 1988 c 719 art 5 s 81 

    Subd. 7a. Repealed, 1988 c 719 art 5 s 81 

    Subd. 8. Repealed, 1983 c 342 art 5 s 16 

    Subd. 9. Repealed, 1983 c 342 art 5 s 16 

    Subd. 10. Repealed, 1988 c 719 art 5 s 81 

    Subd. 11. Repealed, 1988 c 719 art 5 s 81 

    Subd. 12. Repealed, 1988 c 719 art 5 s 81 

    Subd. 13. Repealed, 1988 c 719 art 5 s 81 

    Subd. 14. Repealed, 1988 c 719 art 5 s 81 

    Subd. 15. Repealed, 1993 c 375 art 4 s 21 

    Subd. 16. Repealed, 1993 c 375 art 4 s 21 

    Subd. 17. Repealed, 1993 c 375 art 4 s 21 

    Subd. 18. Repealed, 1993 c 375 art 4 s 21 

    Subd. 19.    Metropolitan area.  "Metropolitan area" is 
 the metropolitan area as defined in section 473.121, subdivision 
 2.  

    Subd. 20.    City net tax capacity.  "City net tax 
 capacity" means (1) the net tax capacity computed using the net 
 tax capacity rates in section 273.13 for taxes payable in the 
 year of the aid distribution, and the market values for taxes 
 payable in the year prior to the aid distribution plus (2) a 
 city's fiscal disparities distribution tax capacity under 
 section 276A.06, subdivision 2, paragraph (b), or 473F.08, 
 subdivision 2, paragraph (b), for taxes payable in the year 
 prior to that for which aids are being calculated.  The market 
 value utilized in computing city net tax capacity shall be 
 reduced by the sum of (1) a city's market value of commercial 
 industrial property as defined in section 276A.01, subdivision 
 3, or 473F.02, subdivision 3, multiplied by the ratio determined 
 pursuant to section 276A.06, subdivision 2, paragraph (a), or 
 473F.08, subdivision 2, paragraph (a), (2) the market value of 
 the captured value of tax increment financing districts as 
 defined in section 469.177, subdivision 2, and (3) the market 
 value of transmission lines deducted from a city's total net tax 
 capacity under section 273.425.  The city net tax capacity will 
 be computed using equalized market values.  

    Subd. 21.    Equalized market values.  "Equalized market 
 values" means market values that have been equalized by dividing 
 the assessor's estimated market value for the second year prior 
 to that in which the aid is payable by the assessment sales 
 ratios determined by class in the assessment sales ratio study 
 conducted by the Department of Revenue pursuant to section 
 127A.48 in the second year prior to that in which the aid is 
 payable.  The equalized market values equal the unequalized 
 market values divided by the assessment sales ratio. 

    Subd. 22. Repealed, 1993 c 375 art 4 s 21 

    Subd. 23. Repealed, 1993 c 375 art 4 s 21 

    Subd. 24. Repealed, 1Sp1989 c 1 art 4 s 15 

    Subd. 25. Repealed, 1993 c 375 art 4 s 21 

    Subd. 26. Repealed, 1993 c 375 art 4 s 21 

    Subd. 27.    Revenue base.  "Revenue base" means the 
 amount levied for taxes payable in the previous year, including 
 the levy on the fiscal disparity distribution under section 
 276A.06, subdivision 3, paragraph (a), or 473F.08, subdivision 
 3, paragraph (a); plus the originally certified local government 
 aid in the previous year under sections 477A.011 and 477A.013; 
 and the taconite aids received in the previous year under 
 sections 298.28 and 298.282. 

    Subd. 28.    Reduction percentage.  "Reduction 
 percentage" means the equal percentage reduction in each 
 affected local government's reduction base that is estimated to 
 be necessary to reduce the aid payments to those local 
 governments by the amounts specified under section 477A.0132. 

    Subd. 29.    Adjusted revenue base.  "Adjusted revenue 
 base" means revenue base as defined in subdivision 27 less the 
 levy reported under section 275.62, subdivision 1, clause (2). 

    Subd. 30.    Pre-1940 housing percentage.  "Pre-1940 
 housing percentage" for a city is 100 times the most recent 
 federal census count of all housing units in the city built 
 before 1940, divided by the total number of all housing units in 
 the city.  Housing units includes both occupied and vacant 
 housing units as defined by the federal census. 

    Subd. 31.    Population decline percentage.  "Population 
 decline percentage" for a city is the percent decline in a 
 city's population for the last ten years, based on the most 
 recently available population estimate from the state 
 demographer or a federal census.  A city's population decline 
 percentage cannot be less than zero. 

    Subd. 32.    Commercial industrial percentage.  
 "Commercial industrial percentage" for a city is 100 times the 
 sum of the estimated market values of all real property in the 
 city classified as class 3 under section 273.13, subdivision 24, 
 excluding public utility property, to the total market value of 
 all taxable real and personal property in the city.  The market 
 values are the amounts computed before any adjustments for 
 fiscal disparities under section 276A.06 or 473F.08.  The market 
 values used for this subdivision are not equalized. 

    Subd. 33.    Transformed population.  "Transformed 
 population" for a city is the city population raised to the 
 .3308 power, times 30.5485. 

    Subd. 34.    City revenue need.  (a) For a city with a 
 population equal to or greater than 2,500, "city revenue need" 
 is the sum of (1) 5.0734098 times the pre-1940 housing 
 percentage; plus (2) 19.141678 times the population decline 
 percentage; plus (3) 2504.06334 times the road accidents factor; 
 plus (4) 355.0547; minus (5) the metropolitan area factor; minus 
 (6) 49.10638 times the household size. 

    (b) For a city with a population less than 2,500, "city 
 revenue need" is the sum of (1) 2.387 times the pre-1940 housing 
 percentage; plus (2) 2.67591 times the commercial industrial 
 percentage; plus (3) 3.16042 times the population decline 
 percentage; plus (4) 1.206 times the transformed population; 
 minus (5) 62.772. 

    (c) The city revenue need cannot be less than zero. 

    (d) For calendar year 2005 and subsequent years, the city 
 revenue need for a city, as determined in paragraphs (a) to (c), 
 is multiplied by the ratio of the annual implicit price deflator 
 for government consumption expenditures and gross investment for 
 state and local governments as prepared by the United States 
 Department of Commerce, for the most recently available year to 
 the 2003 implicit price deflator for state and local government 
 purchases. 

    Subd. 35.    Tax effort rate.  "Tax effort rate" means 
 the net levy for all cities divided by the sum of the city net 
 tax capacity for all cities.  For purposes of this section, "net 
 levy" means the city levy, after all adjustments, used for 
 calculating the local tax rate under section 275.08 for taxes 
 payable in the year prior to the aid distribution.  The fiscal 
 disparity distribution levy under chapter 276A or 473F is 
 included in net levy. 

    Subd. 36.    City aid base.  (a) Except as otherwise 
 provided in this subdivision, "city aid base" is zero. 

    (b) The city aid base for any city with a population less 
 than 500 is increased by $40,000 for aids payable in calendar 
 year 1995 and thereafter, and the maximum amount of total aid it 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by $40,000 for aids payable in calendar 
 year 1995 only, provided that: 

    (i) the average total tax capacity rate for taxes payable 
 in 1995 exceeds 200 percent; 

    (ii) the city portion of the tax capacity rate exceeds 100 
 percent; and 

    (iii) its city aid base is less than $60 per capita. 

    (c) The city aid base for a city is increased by $20,000 in 
 1998 and thereafter and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $20,000 in calendar year 1998 only, provided 
 that: 

    (i) the city has a population in 1994 of 2,500 or more; 

    (ii) the city is located in a county, outside of the 
 metropolitan area, which contains a city of the first class; 

    (iii) the city's net tax capacity used in calculating its 
 1996 aid under section 477A.013 is less than $400 per capita; 
 and 

    (iv) at least four percent of the total net tax capacity, 
 for taxes payable in 1996, of property located in the city is 
 classified as railroad property. 

    (d) The city aid base for a city is increased by $200,000 
 in 1999 and thereafter and the maximum amount of total aid it 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by $200,000 in calendar year 1999 only, 
 provided that: 

    (i) the city was incorporated as a statutory city after 
 December 1, 1993; 

    (ii) its city aid base does not exceed $5,600; and 

    (iii) the city had a population in 1996 of 5,000 or more. 

    (e) The city aid base for a city is increased by $450,000 
 in 1999 to 2008 and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $450,000 in calendar year 1999 only, provided 
 that: 

    (i) the city had a population in 1996 of at least 50,000; 

    (ii) its population had increased by at least 40 percent in 
 the ten-year period ending in 1996; and 

    (iii) its city's net tax capacity for aids payable in 1998 
 is less than $700 per capita. 

    (f) Beginning in 2004, the city aid base for a city is 
 equal to the sum of its city aid base in 2003 and the amount of 
 additional aid it was certified to receive under section 477A.06 
 in 2003.  For 2004 only, the maximum amount of total aid a city 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by the amount it was certified to receive 
 under section 477A.06 in 2003. 

    (g) The city aid base for a city is increased by $150,000 
 for aids payable in 2000 and thereafter, and the maximum amount 
 of total aid it may receive under section 477A.013, subdivision 
 9, paragraph (c), is also increased by $150,000 in calendar year 
 2000 only, provided that: 

    (1) the city has a population that is greater than 1,000 
 and less than 2,500; 

    (2) its commercial and industrial percentage for aids 
 payable in 1999 is greater than 45 percent; and 

    (3) the total market value of all commercial and industrial 
 property in the city for assessment year 1999 is at least 15 
 percent less than the total market value of all commercial and 
 industrial property in the city for assessment year 1998. 

    (h) The city aid base for a city is increased by $200,000 
 in 2000 and thereafter, and the maximum amount of total aid it 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by $200,000 in calendar year 2000 only, 
 provided that: 

    (1) the city had a population in 1997 of 2,500 or more; 

    (2) the net tax capacity of the city used in calculating 
 its 1999 aid under section 477A.013 is less than $650 per 
 capita; 

    (3) the pre-1940 housing percentage of the city used in 
 calculating 1999 aid under section 477A.013 is greater than 12 
 percent; 

    (4) the 1999 local government aid of the city under section 
 477A.013 is less than 20 percent of the amount that the formula 
 aid of the city would have been if the need increase percentage 
 was 100 percent; and 

    (5) the city aid base of the city used in calculating aid 
 under section 477A.013 is less than $7 per capita. 

    (i) The city aid base for a city is increased by $102,000 
 in 2000 and thereafter, and the maximum amount of total aid it 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by $102,000 in calendar year 2000 only, 
 provided that: 

    (1) the city has a population in 1997 of 2,000 or more; 

    (2) the net tax capacity of the city used in calculating 
 its 1999 aid under section 477A.013 is less than $455 per 
 capita; 

    (3) the net levy of the city used in calculating 1999 aid 
 under section 477A.013 is greater than $195 per capita; and 

    (4) the 1999 local government aid of the city under section 
 477A.013 is less than 38 percent of the amount that the formula 
 aid of the city would have been if the need increase percentage 
 was 100 percent. 

    (j) The city aid base for a city is increased by $32,000 in 
 2001 and thereafter, and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $32,000 in calendar year 2001 only, provided 
 that: 

    (1) the city has a population in 1998 that is greater than 
 200 but less than 500; 

    (2) the city's revenue need used in calculating aids 
 payable in 2000 was greater than $200 per capita; 

    (3) the city net tax capacity for the city used in 
 calculating aids available in 2000 was equal to or less than 
 $200 per capita; 

    (4) the city aid base of the city used in calculating aid 
 under section 477A.013 is less than $65 per capita; and 

    (5) the city's formula aid for aids payable in 2000 was 
 greater than zero. 

    (k) The city aid base for a city is increased by $7,200 in 
 2001 and thereafter, and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $7,200 in calendar year 2001 only, provided 
 that: 

    (1) the city had a population in 1998 that is greater than 
 200 but less than 500; 

    (2) the city's commercial industrial percentage used in 
 calculating aids payable in 2000 was less than ten percent; 

    (3) more than 25 percent of the city's population was 60 
 years old or older according to the 1990 census; 

    (4) the city aid base of the city used in calculating aid 
 under section 477A.013 is less than $15 per capita; and 

    (5) the city's formula aid for aids payable in 2000 was 
 greater than zero. 

    (l) The city aid base for a city is increased by $45,000 in 
 2001 and thereafter and by an additional $50,000 in calendar 
 years 2002 to 2011, and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $45,000 in calendar year 2001 only, and by 
 $50,000 in calendar year 2002 only, provided that: 

    (1) the net tax capacity of the city used in calculating 
 its 2000 aid under section 477A.013 is less than $810 per 
 capita; 

    (2) the population of the city declined more than two 
 percent between 1988 and 1998; 

    (3) the net levy of the city used in calculating 2000 aid 
 under section 477A.013 is greater than $240 per capita; and 

    (4) the city received less than $36 per capita in aid under 
 section 477A.013, subdivision 9, for aids payable in 2000. 

    (m) The city aid base for a city with a population of 
 10,000 or more which is located outside of the seven-county 
 metropolitan area is increased in 2002 and thereafter, and the 
 maximum amount of total aid it may receive under section 
 477A.013, subdivision 9, paragraph (b) or (c), is also increased 
 in calendar year 2002 only, by an amount equal to the lesser of: 

    (1)(i) the total population of the city, as determined by 
 the United States Bureau of the Census, in the 2000 census, (ii) 
 minus 5,000, (iii) times 60; or 

    (2) $2,500,000. 

    (n) The city aid base is increased by $50,000 in 2002 and 
 thereafter, and the maximum amount of total aid it may receive 
 under section 477A.013, subdivision 9, paragraph (c), is also 
 increased by $50,000 in calendar year 2002 only, provided that: 

    (1) the city is located in the seven-county metropolitan 
 area; 

    (2) its population in 2000 is between 10,000 and 20,000; 
 and 

    (3) its commercial industrial percentage, as calculated for 
 city aid payable in 2001, was greater than 25 percent. 

    (o) The city aid base for a city is increased by $150,000 
 in calendar years 2002 to 2011 and the maximum amount of total 
 aid it may receive under section 477A.013, subdivision 9, 
 paragraph (c), is also increased by $150,000 in calendar year 
 2002 only, provided that: 

    (1) the city had a population of at least 3,000 but no more 
 than 4,000 in 1999; 

    (2) its home county is located within the seven-county 
 metropolitan area; 

    (3) its pre-1940 housing percentage is less than 15 
 percent; and 

    (4) its city net tax capacity per capita for taxes payable 
 in 2000 is less than $900 per capita. 

    (p) The city aid base for a city is increased by $200,000 
 beginning in calendar year 2003 and the maximum amount of total 
 aid it may receive under section 477A.013, subdivision 9, 
 paragraph (c), is also increased by $200,000 in calendar year 
 2003 only, provided that the city qualified for an increase in 
 homestead and agricultural credit aid under Laws 1995, chapter 
 264, article 8, section 18. 

    (q) The city aid base for a city is increased by $200,000 
 in 2004 only and the maximum amount of total aid it may receive 
 under section 477A.013, subdivision 9, is also increased by 
 $200,000 in calendar year 2004 only, if the city is the site of 
 a nuclear dry cask storage facility. 

    (r) The city aid base for a city is increased by $10,000 in 
 2004 and thereafter and the maximum total aid it may receive 
 under section 477A.013, subdivision 9, is also increased by 
 $10,000 in calendar year 2004 only, if the city was included in 
 a federal major disaster designation issued on April 1, 1998, 
 and its pre-1940 housing stock was decreased by more than 40 
 percent between 1990 and 2000. 

    Subd. 37. Repealed, 1Sp2003 c 21 art 5 s 14 

    Subd. 38.    Household size.  "Household size" means the 
 average number of persons per household in the jurisdiction as 
 most recently estimated and reported by the state demographer as 
 of July 1 of the aid calculation year. 

    Subd. 39.    Road accidents factor.  "Road accidents 
 factor" means the average annual number of vehicular accidents 
 occurring on public roads, streets, and alleys in the 
 jurisdiction as reported to the commissioner of revenue by the 
 commissioner of public safety by July 1 of the aid calculation 
 year using the most recent three-year period for which the 
 commissioner of public safety has complete information, divided 
 by the jurisdiction's population. 

    Subd. 40.    Metropolitan area factor.  "Metropolitan 
 area factor" means 35.20915 for cities located in the 
 metropolitan area. 

    HIST: 1981 c 356 s 248; 1981 c 358 art 1 s 48; 1Sp1981 c 1 art 
 6 s 1; 1983 c 289 s 114 subd 2; 1983 c 342 art 5 s 5-9; 1984 c 
 558 art 4 s 10; 1Sp1985 c 14 art 6 s 1-6; 1Sp1986 c 1 art 6 s 
 1,2; 1987 c 291 s 240; 1988 c 719 art 5 s 66-75; 1989 c 277 art 
 2 s 66; 1Sp1989 c 1 art 4 s 3-6; art 9 s 79,80; 1990 c 480 art 7 
 s 28,29; 1990 c 604 art 4 s 6-9; 1991 c 2 art 8 s 1-3; 1991 c 
 291 art 3 s 5-7; 1991 c 345 art 2 s 64,65; 1992 c 511 art 5 s 
 16,17; 1993 c 375 art 4 s 8-17; 1994 c 416 art 1 s 57; 1995 c 
 264 art 8 s 13; 1996 c 471 art 3 s 44; art 11 s 16-19; 1997 c 
 231 art 2 s 49,69; 1998 c 254 art 1 s 94,95; 1998 c 389 art 4 s 
 7; 1999 c 243 art 5 s 42; 2000 c 490 art 6 s 6; 1Sp2001 c 5 art 
 3 s 74,75; 2002 c 377 art 6 s 9; art 10 s 26; 1Sp2003 c 21 art 5 
 s 2-6; 2004 c 228 art 3 s 14-16