SF 1855

Introduction - 81st Legislature (1999 - 2000)

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

  1.1                          A bill for an act
  1.2             relating to housing; allocating a portion of mortgage 
  1.3             and deed tax payments to housing purposes; exempting 
  1.4             certain housing construction material purchases from 
  1.5             the sales tax; establishing a local government housing 
  1.6             fund; allocating money from the fund; providing for 
  1.7             the use of the money; requiring cooperation between 
  1.8             certain commissioners; appropriating money; amending 
  1.9             Minnesota Statutes 1998, sections 287.12; 287.21, 
  1.10            subdivision 2; and 297A.25, by adding a subdivision; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapter 116J. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [116J.5671] [DEFINITIONS.] 
  1.15     Subdivision 1.  [COMMISSIONER.] "Commissioner" means the 
  1.16  commissioner of the department of trade and economic development.
  1.17     Subd. 2.  [ENTITLEMENT CITIES.] "Entitlement cities" means 
  1.18  cities with a population of at least 50,000 that have a 
  1.19  development authority as defined in section 116J.562, 
  1.20  subdivision 3. 
  1.21     Subd. 3.  [ENTITLEMENT COUNTIES.] "Entitlement counties" 
  1.22  means counties with a population of 200,000 or more that have a 
  1.23  development authority as defined in section 116J.562, 
  1.24  subdivision 3. 
  1.25     Subd. 4.  [LOCAL GOVERNMENT HOUSING FUND.] "Local 
  1.26  government housing fund" means the fund hereby established in 
  1.27  the state treasury and designated in sections 287.12, paragraph 
  1.28  (b), and 287.21, subdivision 2, paragraph (b). 
  1.29     Sec. 2.  [116J.5672] [ALLOCATION OF MONEY.] 
  2.1      Subdivision 1.  [SET-ASIDE.] (a) A percentage set-aside of 
  2.2   not to exceed 15 percent, as determined by the commissioner, for 
  2.3   projects involving a qualified nonprofit organization must be 
  2.4   deducted from the annual grant money.  Of the remainder, amounts 
  2.5   available in the local government housing fund shall be 
  2.6   allocated by the commissioner as follows: 
  2.7      (1) 50 percent to entitlement cities and counties; and 
  2.8      (2) 50 percent to cities or counties that have a 
  2.9   development authority as defined in section 116J.562, 
  2.10  subdivision 2, that are not entitlement cities or counties in 
  2.11  amounts as determined by the commissioner based on the criteria 
  2.12  of section 116J.5673. 
  2.13     (b) A city or county may designate its development 
  2.14  authority as the agency to receive a local government housing 
  2.15  fund grant on behalf of the city or county. 
  2.16     Subd. 2.  [PROPORTIONATE.] Amounts available under 
  2.17  subdivision 1, paragraph (a), clause (1), shall be made 
  2.18  available in the proportion that the population of the 
  2.19  entitlement city and county bears to the combined population of 
  2.20  the cities and counties. 
  2.21     Subd. 3.  [ALLOCATION.] The commissioner shall allocate 
  2.22  funds to cities and counties under subdivision 1, paragraph (b), 
  2.23  clause (2), subject to section 116J.5673. 
  2.24     Sec. 3.  [116J.5673] [USE OF FUNDS.] 
  2.25     Funds shall be used to give priority to activities that 
  2.26  will benefit low- and moderate-income families or aid in the 
  2.27  prevention or elimination of slums or blight, and also on behalf 
  2.28  of activities that the grantee certifies are designed to meet 
  2.29  other community development needs as outlined in the community's 
  2.30  housing plan. 
  2.31     The commissioner shall allocate funds among eligible cities 
  2.32  and counties based on the allocation of funds established in 
  2.33  section 116J.5672.  For purposes of this subdivision, the state 
  2.34  demographer shall provide the latest available population 
  2.35  estimates to the commissioner. 
  2.36     Sec. 4.  [116J.5674] [COOPERATION REQUIRED FOR LOCAL 
  3.1   GOVERNMENT HOUSING GRANTS.] 
  3.2      The commissioner must cooperate with the commissioner of 
  3.3   the Minnesota housing finance agency to ensure that local 
  3.4   government housing grant applications are consistent with the 
  3.5   state comprehensive housing assessment strategy and the local 
  3.6   unit of government housing plan. 
  3.7      Sec. 5.  Minnesota Statutes 1998, section 287.12, is 
  3.8   amended to read: 
  3.9      287.12 [TAXES, HOW APPORTIONED.] 
  3.10     (a) Except as provided in paragraph (b), all taxes paid to 
  3.11  the county treasurer under the provisions of sections 287.01 to 
  3.12  287.12 shall be apportioned, 97 percent to the general fund of 
  3.13  the state, and three percent to the county revenue fund. 
  3.14     On or before the tenth day of each month the county 
  3.15  treasurer shall determine and pay to the commissioner of revenue 
  3.16  for deposit in the state treasury and credit to the general fund 
  3.17  the state's portion of the receipts from the mortgage 
  3.18  registration tax during the preceding month.  The county 
  3.19  treasurer shall provide any related reports requested by the 
  3.20  commissioner of revenue. 
  3.21     (b) Beginning with fiscal year 2000 and each fiscal year 
  3.22  thereafter, if the amount credited to the general fund under 
  3.23  paragraph (a) exceeds the amount credited to the general fund 
  3.24  under paragraph (a) for fiscal year 1997, the excess over the 
  3.25  fiscal year 1997 amount must be credited to the local government 
  3.26  housing fund. 
  3.27     Sec. 6.  Minnesota Statutes 1998, section 287.21, 
  3.28  subdivision 2, is amended to read: 
  3.29     Subd. 2.  [APPORTIONMENT OF PROCEEDS.] (a) Except as 
  3.30  provided in paragraph (b), the proceeds of the taxes levied and 
  3.31  collected under sections 287.21 to 287.36 shall be apportioned, 
  3.32  97 percent to the general fund of the state, and three percent 
  3.33  to the county revenue fund.  
  3.34     (b) Beginning with fiscal year 2000 and each fiscal year 
  3.35  thereafter, if the amount credited to the general fund under 
  3.36  paragraph (a) exceeds the amount credited to the general fund 
  4.1   under paragraph (a) for fiscal year 1997, the excess over the 
  4.2   fiscal year 1997 amount must be credited to the local government 
  4.3   housing fund. 
  4.4      Sec. 7.  Minnesota Statutes 1998, section 297A.25, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 79.  [CONSTRUCTION MATERIALS; HOUSING PROJECTS AND 
  4.7   HOUSING DEVELOPMENT PROJECTS.] Purchases of materials and 
  4.8   supplies used or consumed in, and fixtures, furnishings, and 
  4.9   equipment incorporated into, the construction or improvement of 
  4.10  housing projects or housing development projects are exempt from 
  4.11  the tax imposed under this section, regardless of whether 
  4.12  purchased by the owner or a contractor, subcontractor, or 
  4.13  builder.  The tax shall be calculated and paid as if the rate in 
  4.14  section 297A.02, subdivision 1, was in effect and a refund 
  4.15  applied for in the manner prescribed in section 297A.15, 
  4.16  subdivision 7.  For purposes of this subdivision, "housing 
  4.17  project" is defined pursuant to section 469.002, subdivision 15, 
  4.18  and means the following: 
  4.19     (1) is owned by a housing and redevelopment authority 
  4.20  established under sections 469.001 to 469.047 or special law or 
  4.21  an economic development authority enabled with the powers of 
  4.22  sections 469.001 to 469.047; 
  4.23     (2) has or will receive federal low-income housing tax 
  4.24  credits and will have rents for the initial 15 years of 
  4.25  occupancy that are no more than the maximum monthly rent allowed 
  4.26  to be charged under the program; or 
  4.27     (3) has received financial assistance in the form of a loan 
  4.28  or grant from the Minnesota housing finance agency or local 
  4.29  government and a condition of the assistance is an agreement 
  4.30  regarding the maximum amount of monthly rent paid. 
  4.31     Sec. 8.  [APPROPRIATIONS.] 
  4.32     The amounts necessary to accomplish the purposes of 
  4.33  sections 1 to 7 are appropriated annually from the designated 
  4.34  funds to the commissioner of trade and economic development.