HF 1074

Introduction - 80th Legislature (1997 - 1998)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to taxation; abolishing the truth in taxation 
  1.3             hearings; amending Minnesota Statutes 1996, sections 
  1.4             275.065, subdivisions 3, 5a, and 6; 375.194, 
  1.5             subdivision 5; 383A.75, subdivision 3; and 473.13, 
  1.6             subdivision 1; repealing Minnesota Statutes 1996, 
  1.7             section 275.065, subdivision 8. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 275.065, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  1.12  county auditor shall prepare and the county treasurer shall 
  1.13  deliver after November 10 and on or before November 24 each 
  1.14  year, by first class mail to each taxpayer at the address listed 
  1.15  on the county's current year's assessment roll, a notice of 
  1.16  proposed property taxes and, in the case of a town, final 
  1.17  property taxes.  
  1.18     (b) The commissioner of revenue shall prescribe the form of 
  1.19  the notice. 
  1.20     (c) The notice must inform taxpayers that it contains the 
  1.21  amount of property taxes each taxing authority other than a town 
  1.22  proposes to collect for taxes payable the following year and, 
  1.23  for a town, the amount of its final levy.  It must clearly state 
  1.24  that each taxing authority, including regional library districts 
  1.25  established under section 134.201, and including the 
  1.26  metropolitan taxing districts as defined in paragraph (i), but 
  2.1   excluding all other special taxing districts and towns, will 
  2.2   hold a public meeting to receive public testimony on the 
  2.3   proposed budget and proposed or final property tax levy, or, in 
  2.4   case of a school district, on the current budget and proposed 
  2.5   property tax levy.  It must clearly state the time and place of 
  2.6   each taxing authority's meeting and an address where comments 
  2.7   will be received by mail.  
  2.8      (d) The notice must state for each parcel: 
  2.9      (1) the market value of the property as determined under 
  2.10  section 273.11, and used for computing property taxes payable in 
  2.11  the following year and for taxes payable in the current year; 
  2.12  and, in the case of residential property, whether the property 
  2.13  is classified as homestead or nonhomestead.  The notice must 
  2.14  clearly inform taxpayers of the years to which the market values 
  2.15  apply and that the values are final values; 
  2.16     (2) by county, city or town, school district excess 
  2.17  referenda levy, remaining school district levy, regional library 
  2.18  district, if in existence, the total of the metropolitan special 
  2.19  taxing districts as defined in paragraph (i) and the sum of the 
  2.20  remaining special taxing districts, and as a total of the taxing 
  2.21  authorities, including all special taxing districts, the 
  2.22  proposed or, for a town, final net tax on the property for taxes 
  2.23  payable the following year and the actual tax for taxes payable 
  2.24  the current year.  If a school district has certified under 
  2.25  section 124A.03, subdivision 2, that a referendum will be held 
  2.26  in the school district at the November general election, the 
  2.27  county auditor must note next to the school district's proposed 
  2.28  amount that a referendum is pending and that, if approved by the 
  2.29  voters, the tax amount may be higher than shown on the notice.  
  2.30  For the purposes of this subdivision, "school district excess 
  2.31  referenda levy" means school district taxes for operating 
  2.32  purposes approved at referendums, including those taxes based on 
  2.33  net tax capacity as well as those based on market value.  
  2.34  "School district excess referenda levy" does not include school 
  2.35  district taxes for capital expenditures approved at referendums 
  2.36  or school district taxes to pay for the debt service on bonds 
  3.1   approved at referenda.  In the case of the city of Minneapolis, 
  3.2   the levy for the Minneapolis library board and the levy for 
  3.3   Minneapolis park and recreation shall be listed separately from 
  3.4   the remaining amount of the city's levy.  In the case of a 
  3.5   parcel where tax increment or the fiscal disparities areawide 
  3.6   tax under chapter 276A or 473F applies, the proposed tax levy on 
  3.7   the captured value or the proposed tax levy on the tax capacity 
  3.8   subject to the areawide tax must each be stated separately and 
  3.9   not included in the sum of the special taxing districts; and 
  3.10     (3) the increase or decrease in the amounts in clause (2) 
  3.11  from taxes payable in the current year to proposed or, for a 
  3.12  town, final taxes payable the following year, expressed as a 
  3.13  dollar amount and as a percentage. 
  3.14     (e) The notice must clearly state that the proposed or 
  3.15  final taxes do not include the following: 
  3.16     (1) special assessments; 
  3.17     (2) levies approved by the voters after the date the 
  3.18  proposed taxes are certified, including bond referenda, school 
  3.19  district levy referenda, and levy limit increase referenda; 
  3.20     (3) amounts necessary to pay cleanup or other costs due to 
  3.21  a natural disaster occurring after the date the proposed taxes 
  3.22  are certified; 
  3.23     (4) amounts necessary to pay tort judgments against the 
  3.24  taxing authority that become final after the date the proposed 
  3.25  taxes are certified; and 
  3.26     (5) the contamination tax imposed on properties which 
  3.27  received market value reductions for contamination. 
  3.28     (f) Except as provided in subdivision 7, failure of the 
  3.29  county auditor to prepare or the county treasurer to deliver the 
  3.30  notice as required in this section does not invalidate the 
  3.31  proposed or final tax levy or the taxes payable pursuant to the 
  3.32  tax levy. 
  3.33     (g) If the notice the taxpayer receives under this section 
  3.34  lists the property as nonhomestead and the homeowner provides 
  3.35  satisfactory documentation to the county assessor that the 
  3.36  property is owned and used as the owner's homestead, the 
  4.1   assessor shall reclassify the property to homestead for taxes 
  4.2   payable in the following year. 
  4.3      (h) In the case of class 4 residential property used as a 
  4.4   residence for lease or rental periods of 30 days or more, the 
  4.5   taxpayer must either: 
  4.6      (1) mail or deliver a copy of the notice of proposed 
  4.7   property taxes to each tenant, renter, or lessee; or 
  4.8      (2) post a copy of the notice in a conspicuous place on the 
  4.9   premises of the property.  
  4.10     The notice must be mailed or posted by the taxpayer by 
  4.11  November 27 or within three days of receipt of the notice, 
  4.12  whichever is later.  A taxpayer may notify the county treasurer 
  4.13  of the address of the taxpayer, agent, caretaker, or manager of 
  4.14  the premises to which the notice must be mailed in order to 
  4.15  fulfill the requirements of this paragraph. 
  4.16     (i) For purposes of this subdivision, subdivisions 5a and 
  4.17  6, "metropolitan special taxing districts" means the following 
  4.18  taxing districts in the seven-county metropolitan area that levy 
  4.19  a property tax for any of the specified purposes listed below: 
  4.20     (1) metropolitan council under section 473.132, 473.167, 
  4.21  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  4.22     (2) metropolitan airports commission under section 473.667, 
  4.23  473.671, or 473.672; and 
  4.24     (3) metropolitan mosquito control commission under section 
  4.25  473.711. 
  4.26     For purposes of this section, any levies made by the 
  4.27  regional rail authorities in the county of Anoka, Carver, 
  4.28  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  4.29  398A shall be included with the appropriate county's levy and 
  4.30  shall be discussed at that county's public hearing. 
  4.31     (j) For taxes levied in 1996, payable in 1997 only, in the 
  4.32  case of a statutory or home rule charter city or town that 
  4.33  exercises the local levy option provided in section 473.388, 
  4.34  subdivision 7, the notice of its proposed taxes may include a 
  4.35  statement of the amount by which its proposed tax increase for 
  4.36  taxes payable in 1997 is attributable to its exercise of that 
  5.1   option, together with a statement that the levy of the 
  5.2   metropolitan council was decreased by a similar amount because 
  5.3   of the exercise of that option. 
  5.4      Sec. 2.  Minnesota Statutes 1996, section 275.065, 
  5.5   subdivision 5a, is amended to read: 
  5.6      Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
  5.7   population of more than 2,500, county, a metropolitan special 
  5.8   taxing district as defined in subdivision 3, paragraph (i), a 
  5.9   regional library district established under section 134.201, or 
  5.10  school district shall advertise in a newspaper a notice of its 
  5.11  intent to adopt a budget and property tax levy or, in the case 
  5.12  of a school district, to review its current budget and proposed 
  5.13  property taxes payable in the following year, at a public 
  5.14  hearing.  The notice must be published not less than two 
  5.15  business days nor more than six business days before the hearing.
  5.16     The advertisement must be at least one-eighth page in size 
  5.17  of a standard-size or a tabloid-size newspaper.  The 
  5.18  advertisement must not be placed in the part of the newspaper 
  5.19  where legal notices and classified advertisements appear.  The 
  5.20  advertisement must be published in an official newspaper of 
  5.21  general circulation in the taxing authority.  The newspaper 
  5.22  selected must be one of general interest and readership in the 
  5.23  community, and not one of limited subject matter.  The 
  5.24  advertisement must appear in a newspaper that is published at 
  5.25  least once per week.  
  5.26     For purposes of this section, the metropolitan special 
  5.27  taxing district's advertisement must only be published in the 
  5.28  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
  5.29     (b) The advertisement must be in the following form, except 
  5.30  that the notice for a school district may include references to 
  5.31  the current budget in regard to proposed property taxes. 
  5.32                             "NOTICE OF
  5.33                      PROPOSED PROPERTY TAXES
  5.34             (City/County/School District/Metropolitan
  5.35                  Special Taxing District/Regional
  5.36                   Library District) of .........
  6.1   The governing body of ........ will soon hold budget hearings 
  6.2   and vote on the property taxes for (city/county/metropolitan 
  6.3   special taxing district/regional library district services that 
  6.4   will be provided in 199_/school district services that will be 
  6.5   provided in 199_ and 199_)." 
  6.6                      NOTICE OF PUBLIC HEARING:
  6.7   All concerned citizens are invited to attend a public hearing 
  6.8   and express their opinions on the proposed (city/county/school 
  6.9   district/metropolitan special taxing district/regional library 
  6.10  district) budget and property taxes, or in the case of a school 
  6.11  district, its current budget and proposed property taxes, 
  6.12  payable in the following year.  The hearing will be held on 
  6.13  (Month/Day/Year) at (Time) at (Location, Address)." 
  6.14     (c) A city with a population of over 500 but not more than 
  6.15  2,500 must advertise by posted notice as defined in section 
  6.16  645.12, subdivision 1.  The advertisement must be posted at the 
  6.17  time provided in paragraph (a).  It must be in the form required 
  6.18  in paragraph (b). 
  6.19     (d) For purposes of this subdivision, the population of a 
  6.20  city is the most recent population as determined by the state 
  6.21  demographer under section 4A.02. 
  6.22     (e) The commissioner of revenue, subject to the approval of 
  6.23  the chairs of the house and senate tax committees, shall 
  6.24  prescribe the form and format of the advertisement. 
  6.25     (f) For calendar year 1993, each taxing authority required 
  6.26  to publish an advertisement must include on the advertisement a 
  6.27  statement that information on the increases or decreases of the 
  6.28  total budget, including employee and independent contractor 
  6.29  compensation in the prior year, current year, and proposed 
  6.30  budget year will be discussed at the hearing. 
  6.31     (g) Notwithstanding paragraph (f), for 1993, the 
  6.32  commissioner of revenue shall prescribe the form, format, and 
  6.33  content of an advertisement comparing current and proposed 
  6.34  expense budgets for the metropolitan council, the metropolitan 
  6.35  airports commission, and the metropolitan mosquito control 
  6.36  commission.  The expense budget must include occupancy, 
  7.1   personnel, contractual and capital improvement expenses.  The 
  7.2   form, format, and content of the advertisement must be approved 
  7.3   by the chairs of the house and senate tax committees prior to 
  7.4   publication. 
  7.5      Sec. 3.  Minnesota Statutes 1996, section 275.065, 
  7.6   subdivision 6, is amended to read: 
  7.7      Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
  7.8   Between November 29 and December 20, the governing bodies of a 
  7.9   city that has a population over 500, county, metropolitan 
  7.10  special taxing districts as defined in subdivision 3, paragraph 
  7.11  (i), and regional library districts shall each hold a public 
  7.12  hearing to discuss and seek public comment on its final budget 
  7.13  and property tax levy for taxes payable in the following year, 
  7.14  and the governing body of the school district shall hold a 
  7.15  public hearing to review its current budget and proposed 
  7.16  property tax levy for taxes payable in the following year.  The 
  7.17  metropolitan special taxing districts shall be required to hold 
  7.18  only a single joint public hearing, the location of which will 
  7.19  be determined by the affected metropolitan agencies. 
  7.20     At a subsequent hearing, each county, school district, 
  7.21  city, and metropolitan special taxing district may amend its 
  7.22  proposed property tax levy and must adopt a final property tax 
  7.23  levy.  Each county, city, and metropolitan special taxing 
  7.24  district may also amend its proposed budget and must adopt a 
  7.25  final budget at the subsequent hearing.  A school district is 
  7.26  not required to adopt its final budget at the subsequent 
  7.27  hearing.  The subsequent hearing of a taxing authority must be 
  7.28  held on a date subsequent to the date of the taxing authority's 
  7.29  initial public hearing, or subsequent to the date of its 
  7.30  continuation hearing if a continuation hearing is held.  The 
  7.31  subsequent hearing may be held at a regularly scheduled board or 
  7.32  council meeting or at a special meeting scheduled for the 
  7.33  purposes of the subsequent hearing.  The subsequent hearing of a 
  7.34  taxing authority does not have to be coordinated by the county 
  7.35  auditor to prevent a conflict with an initial hearing, a 
  7.36  continuation hearing, or a subsequent hearing of any other 
  8.1   taxing authority.  All subsequent hearings must be held prior to 
  8.2   five working days after December 20 of the levy year. 
  8.3      The time and place of the subsequent hearing must be 
  8.4   announced at the initial public hearing or at the continuation 
  8.5   hearing. 
  8.6      The property tax levy certified under section 275.07 by a 
  8.7   city, county, metropolitan special taxing district, regional 
  8.8   library district, or school district must not exceed the 
  8.9   proposed levy determined under subdivision 1, except by an 
  8.10  amount up to the sum of the following amounts: 
  8.11     (1) the amount of a school district levy whose voters 
  8.12  approved a referendum to increase taxes under section 124.82, 
  8.13  subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 
  8.14  2, after the proposed levy was certified; 
  8.15     (2) the amount of a city or county levy approved by the 
  8.16  voters after the proposed levy was certified; 
  8.17     (3) the amount of a levy to pay principal and interest on 
  8.18  bonds approved by the voters under section 475.58 after the 
  8.19  proposed levy was certified; 
  8.20     (4) the amount of a levy to pay costs due to a natural 
  8.21  disaster occurring after the proposed levy was certified, if 
  8.22  that amount is approved by the commissioner of revenue under 
  8.23  subdivision 6a; 
  8.24     (5) the amount of a levy to pay tort judgments against a 
  8.25  taxing authority that become final after the proposed levy was 
  8.26  certified, if the amount is approved by the commissioner of 
  8.27  revenue under subdivision 6a; 
  8.28     (6) the amount of an increase in levy limits certified to 
  8.29  the taxing authority by the commissioner of children, families, 
  8.30  and learning or the commissioner of revenue after the proposed 
  8.31  levy was certified; and 
  8.32     (7) the amount required under section 124.755. 
  8.33     At the hearing under this subdivision, the percentage 
  8.34  increase in property taxes proposed by the taxing authority, if 
  8.35  any, and the specific purposes for which property tax revenues 
  8.36  are being increased must be discussed.  
  9.1      During the discussion, the governing body shall hear 
  9.2   comments regarding a proposed increase and explain the reasons 
  9.3   for the proposed increase.  The public shall be allowed to speak 
  9.4   and to ask questions.  At the subsequent hearing held as 
  9.5   provided in this subdivision, the governing body, other than the 
  9.6   governing body of a school district, shall adopt its final 
  9.7   property tax levy prior to adopting its final budget. 
  9.8      If the hearing is not completed on its scheduled date, the 
  9.9   taxing authority must announce, prior to adjournment of the 
  9.10  hearing, the date, time, and place for the continuation of the 
  9.11  hearing.  The continued hearing must be held at least five 
  9.12  business days but no more than 14 business days after the 
  9.13  original hearing. 
  9.14     The hearing must be held after 5:00 p.m. if scheduled on a 
  9.15  day other than Saturday.  No hearing may be held on a Sunday.  
  9.16  The governing body of a county shall hold a hearing on the 
  9.17  second Tuesday in December each year, and may hold additional 
  9.18  hearings on other dates before December 20 if necessary for the 
  9.19  convenience of county residents.  If the county needs a 
  9.20  continuation of its hearing, the continued hearing shall be held 
  9.21  on the third Tuesday in December.  If the third Tuesday in 
  9.22  December falls on December 21, the county's continuation hearing 
  9.23  shall be held on Monday, December 20.  The county auditor shall 
  9.24  provide for the coordination of hearing dates for all cities and 
  9.25  school districts within the county. 
  9.26     The metropolitan special taxing districts shall hold a 
  9.27  joint public hearing on the first Monday of December.  A 
  9.28  continuation hearing, if necessary, shall be held on the second 
  9.29  Monday of December. 
  9.30     By August 10, each school board and the board of the 
  9.31  regional library district shall certify to the county auditors 
  9.32  of the counties in which the school district or regional library 
  9.33  district is located the dates on which it elects to hold its 
  9.34  hearings and any continuations.  If a school board or regional 
  9.35  library district does not certify the dates by August 10, the 
  9.36  auditor will assign the hearing date.  The dates elected or 
 10.1   assigned must not conflict with the hearing dates of the county 
 10.2   or the metropolitan special taxing districts.  By August 20, the 
 10.3   county auditor shall notify the clerks of the cities within the 
 10.4   county of the dates on which school districts and regional 
 10.5   library districts have elected to hold their hearings.  At the 
 10.6   time a city certifies its proposed levy under subdivision 1 it 
 10.7   shall certify the dates on which it elects to hold its hearings 
 10.8   and any continuations.  For its initial hearing and for the 
 10.9   subsequent hearing at which the final property tax levy will be 
 10.10  adopted, the city must not select dates that conflict with the 
 10.11  county hearing dates, metropolitan special taxing district 
 10.12  dates, or with those elected by or assigned to the school 
 10.13  districts or regional library district in which the city is 
 10.14  located.  For continuation hearings, the city may select dates 
 10.15  that conflict with other taxing authorities' dates if the city 
 10.16  deems it necessary. 
 10.17     The county hearing dates and the city, metropolitan special 
 10.18  taxing district, regional library district, and school district 
 10.19  hearing dates must be designated on the notices required under 
 10.20  subdivision 3.  The continuation dates need not be stated on the 
 10.21  notices.  
 10.22     This subdivision does not apply to towns and special taxing 
 10.23  districts other than regional library districts and metropolitan 
 10.24  special taxing districts. 
 10.25     Notwithstanding the requirements of this section, the 
 10.26  employer is required to meet and negotiate over employee 
 10.27  compensation as provided for in chapter 179A.  
 10.28     Sec. 4.  Minnesota Statutes 1996, section 375.194, 
 10.29  subdivision 5, is amended to read: 
 10.30     Subd. 5.  [DETERMINATION OF COUNTY TAX RATE.] The eligible 
 10.31  county's proposed and final tax rates shall be determined by 
 10.32  dividing the certified levy by the total taxable net tax 
 10.33  capacity, without regard to any abatements granted under this 
 10.34  section.  The county board shall make available the estimated 
 10.35  amount of the abatement at the public hearing under section 
 10.36  275.065, subdivision 6 by December 1. 
 11.1      Sec. 5.  Minnesota Statutes 1996, section 383A.75, 
 11.2   subdivision 3, is amended to read: 
 11.3      Subd. 3.  [DUTIES.] The committee is authorized to and 
 11.4   shall meet from time to time to make appropriate recommendations 
 11.5   for the efficient and effective use of property tax dollars 
 11.6   raised by the jurisdictions for programs, buildings, and 
 11.7   operations.  In addition, the committee shall: 
 11.8      (1) identify trends and factors likely to be driving budget 
 11.9   outcomes over the next five years with recommendations for how 
 11.10  the jurisdictions should manage those trends and factors to 
 11.11  increase efficiency and effectiveness; 
 11.12     (2) agree, by September 1 of each year, on the appropriate 
 11.13  level of overall property tax levy for the three jurisdictions 
 11.14  and publicly report such to the governing bodies of each 
 11.15  jurisdiction for ratification or modification by resolution; and 
 11.16     (3) plan for the joint truth-in-taxation hearings under 
 11.17  section 275.065, subdivision 8; and 
 11.18     (4) identify, by December 31 of each year, areas of the 
 11.19  budget to be targeted in the coming year for joint review to 
 11.20  improve services or achieve efficiencies. 
 11.21     In carrying out its duties, the committee shall consult 
 11.22  with public employees of each jurisdiction and with other 
 11.23  stakeholders of the city, county, and school district, as 
 11.24  appropriate. 
 11.25     Sec. 6.  Minnesota Statutes 1996, section 473.13, 
 11.26  subdivision 1, is amended to read: 
 11.27     Subdivision 1.  [BUDGET.] (a) On or before December 20 of 
 11.28  each year the council, after the public hearing required in 
 11.29  section 275.065, shall adopt a final budget covering its 
 11.30  anticipated receipts and disbursements for the ensuing year and 
 11.31  shall decide upon the total amount necessary to be raised from 
 11.32  ad valorem tax levies to meet its budget.  The budget shall 
 11.33  state in detail the expenditures for each program to be 
 11.34  undertaken, including the expenses for salaries, consultant 
 11.35  services, overhead, travel, printing, and other items.  The 
 11.36  budget shall state in detail the capital expenditures of the 
 12.1   council for the budget year, based on a five-year capital 
 12.2   program adopted by the council and transmitted to the 
 12.3   legislature.  After adoption of the budget and no later than 
 12.4   five working days after December 20, the council shall certify 
 12.5   to the auditor of each metropolitan county the share of the tax 
 12.6   to be levied within that county, which must be an amount bearing 
 12.7   the same proportion to the total levy agreed on by the council 
 12.8   as the net tax capacity of the county bears to the net tax 
 12.9   capacity of the metropolitan area.  The maximum amount of any 
 12.10  levy made for the purpose of this chapter may not exceed the 
 12.11  limits set by the statute authorizing the levy. 
 12.12     (b) Each even-numbered year the council shall prepare for 
 12.13  its transit programs a financial plan for the succeeding three 
 12.14  calendar years, in half-year segments.  The financial plan must 
 12.15  contain the elements specified in section 473.1623, subdivision 
 12.16  3.  The financial plan must contain schedules of user charges 
 12.17  and any changes in user charges planned or anticipated by the 
 12.18  council during the period of the plan.  The financial plan must 
 12.19  contain a proposed request for state financial assistance for 
 12.20  the succeeding biennium. 
 12.21     (c) In addition, the budget must show for each year: 
 12.22     (1) the estimated operating revenues from all sources 
 12.23  including funds on hand at the beginning of the year, and 
 12.24  estimated expenditures for costs of operation, administration, 
 12.25  maintenance, and debt service; 
 12.26     (2) capital improvement funds estimated to be on hand at 
 12.27  the beginning of the year and estimated to be received during 
 12.28  the year from all sources and estimated cost of capital 
 12.29  improvements to be paid out or expended during the year, all in 
 12.30  such detail and form as the council may prescribe; and 
 12.31     (3) the estimated source and use of pass-through funds. 
 12.32     Sec. 7.  [REPEALER.] 
 12.33     Minnesota Statutes 1996, section 275.065, subdivision 8, is 
 12.34  repealed. 
 12.35     Sec. 8.  [EFFECTIVE DATE.] 
 12.36     Sections 1 to 7 are effective for taxes levied in 1997, 
 13.1   payable in 1998, and thereafter.