HF 21

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; allowing a reverse referendum 
  1.3             for property tax levy increases in counties and 
  1.4             certain cities; amending Minnesota Statutes 1994, 
  1.5             sections 275.065, subdivisions 3, 5a, 6, 8, and by 
  1.6             adding a subdivision; and 275.07, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 275.065, 
  1.9   subdivision 3, is amended to read: 
  1.10     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  1.11  county auditor shall prepare and the county treasurer shall 
  1.12  deliver after November 10 and on or before November 24 17 each 
  1.13  year, by first class mail to each taxpayer at the address listed 
  1.14  on the county's current year's assessment roll, a notice of 
  1.15  proposed property taxes and, in the case of a town, final 
  1.16  property taxes.  
  1.17     (b) The commissioner of revenue shall prescribe the form of 
  1.18  the notice. 
  1.19     (c) The notice must inform taxpayers that it contains the 
  1.20  amount of property taxes each taxing authority other than a town 
  1.21  proposes to collect for taxes payable the following year and, 
  1.22  for a town, the amount of its final levy.  It must clearly state 
  1.23  that each taxing authority, including regional library districts 
  1.24  established under section 134.201, and including the 
  1.25  metropolitan taxing districts as defined in paragraph (i), but 
  1.26  excluding all other special taxing districts and towns, will 
  2.1   hold a public meeting to receive public testimony on the 
  2.2   proposed budget and proposed or final property tax levy, or, in 
  2.3   case of a school district, on the current budget and proposed 
  2.4   property tax levy.  It must clearly state the time and place of 
  2.5   each taxing authority's meeting and an address where comments 
  2.6   will be received by mail.  The notice must include the estimated 
  2.7   percentage increase in Minnesota personal income, provided by 
  2.8   the commissioner of revenue under section 275.064, in a way to 
  2.9   facilitate comparison of the proposed budget and levy increases 
  2.10  with the increase in personal income.  For 1993, the notice must 
  2.11  clearly state that each taxing authority holding a public 
  2.12  meeting will describe the increases or decreases of the total 
  2.13  budget, including employee and independent contractor 
  2.14  compensation in the prior year, current year, and the proposed 
  2.15  budget year.  
  2.16     (d) The notice must state for each parcel: 
  2.17     (1) the market value of the property as determined under 
  2.18  section 273.11, and used for computing property taxes payable in 
  2.19  the following year and for taxes payable in the current year; 
  2.20  and, in the case of residential property, whether the property 
  2.21  is classified as homestead or nonhomestead.  The notice must 
  2.22  clearly inform taxpayers of the years to which the market values 
  2.23  apply and that the values are final values; 
  2.24     (2) by county, city or town, school district excess 
  2.25  referenda levy, remaining school district levy, regional library 
  2.26  district, if in existence, the total of the metropolitan special 
  2.27  taxing districts as defined in paragraph (i) and the sum of the 
  2.28  remaining special taxing districts, and as a total of the taxing 
  2.29  authorities, including all special taxing districts, the 
  2.30  proposed or, for a town, final net tax on the property for taxes 
  2.31  payable the following year and the actual tax for taxes payable 
  2.32  the current year.  For the purposes of this subdivision, "school 
  2.33  district excess referenda levy" means school district taxes for 
  2.34  operating purposes approved at referendums, including those 
  2.35  taxes based on net tax capacity as well as those based on market 
  2.36  value.  "School district excess referenda levy" does not include 
  3.1   school district taxes for capital expenditures approved at 
  3.2   referendums or school district taxes to pay for the debt service 
  3.3   on bonds approved at referenda.  In the case of the city of 
  3.4   Minneapolis, the levy for the Minneapolis library board and the 
  3.5   levy for Minneapolis park and recreation shall be listed 
  3.6   separately from the remaining amount of the city's levy.  In the 
  3.7   case of a parcel where tax increment or the fiscal disparities 
  3.8   areawide tax applies, the proposed tax levy on the captured 
  3.9   value or the proposed tax levy on the tax capacity subject to 
  3.10  the areawide tax must each be stated separately and not included 
  3.11  in the sum of the special taxing districts; and 
  3.12     (3) the increase or decrease in the amounts in clause (2) 
  3.13  from taxes payable in the current year to proposed or, for a 
  3.14  town, final taxes payable the following year, expressed as a 
  3.15  dollar amount and as a percentage. 
  3.16     (e) The notice must clearly state that the proposed or 
  3.17  final taxes do not include the following: 
  3.18     (1) special assessments; 
  3.19     (2) levies approved by the voters after the date the 
  3.20  proposed taxes are certified, including bond referenda, school 
  3.21  district levy referenda, and levy limit increase referenda; 
  3.22     (3) amounts necessary to pay cleanup or other costs due to 
  3.23  a natural disaster occurring after the date the proposed taxes 
  3.24  are certified; 
  3.25     (4) amounts necessary to pay tort judgments against the 
  3.26  taxing authority that become final after the date the proposed 
  3.27  taxes are certified; and 
  3.28     (5) the contamination tax imposed on properties which 
  3.29  received market value reductions for contamination. 
  3.30     (f) Except as provided in subdivision 7, failure of the 
  3.31  county auditor to prepare or the county treasurer to deliver the 
  3.32  notice as required in this section does not invalidate the 
  3.33  proposed or final tax levy or the taxes payable pursuant to the 
  3.34  tax levy. 
  3.35     (g) If the notice the taxpayer receives under this section 
  3.36  lists the property as nonhomestead and the homeowner provides 
  4.1   satisfactory documentation to the county assessor that the 
  4.2   property is owned and has been used as the owner's homestead 
  4.3   prior to June 1 of that year, the assessor shall reclassify the 
  4.4   property to homestead for taxes payable in the following year. 
  4.5      (h) In the case of class 4 residential property used as a 
  4.6   residence for lease or rental periods of 30 days or more, the 
  4.7   taxpayer must either: 
  4.8      (1) mail or deliver a copy of the notice of proposed 
  4.9   property taxes to each tenant, renter, or lessee; or 
  4.10     (2) post a copy of the notice in a conspicuous place on the 
  4.11  premises of the property.  
  4.12     (i) For purposes of this subdivision, subdivisions 5a and 
  4.13  6, "metropolitan special taxing districts" means the following 
  4.14  taxing districts in the seven-county metropolitan area that levy 
  4.15  a property tax for any of the specified purposes listed below: 
  4.16     (1) metropolitan council under section 473.132, 473.167, 
  4.17  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  4.18     (2) metropolitan airports commission under section 473.667, 
  4.19  473.671, or 473.672; and 
  4.20     (3) metropolitan mosquito control commission under section 
  4.21  473.711. 
  4.22     For purposes of this section, any levies made by the 
  4.23  regional rail authorities in the county of Anoka, Carver, 
  4.24  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  4.25  398A shall be included with the appropriate county's levy and 
  4.26  shall be discussed at that county's public hearing. 
  4.27     The notice must be mailed or posted by the taxpayer by 
  4.28  November 27 20 or within three days of receipt of the notice, 
  4.29  whichever is later.  A taxpayer may notify the county treasurer 
  4.30  of the address of the taxpayer, agent, caretaker, or manager of 
  4.31  the premises to which the notice must be mailed in order to 
  4.32  fulfill the requirements of this paragraph. 
  4.33     Sec. 2.  Minnesota Statutes 1994, section 275.065, 
  4.34  subdivision 5a, is amended to read: 
  4.35     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
  4.36  population of more than 1,000, county, a metropolitan special 
  5.1   taxing district as defined in subdivision 3, paragraph (i), a 
  5.2   regional library district established under section 134.201, or 
  5.3   school district shall advertise in a newspaper a notice of its 
  5.4   intent to adopt a budget and property tax levy or, in the case 
  5.5   of a school district, to review its current budget and proposed 
  5.6   property taxes payable in the following year, at a public 
  5.7   hearing.  The notice must be published not less than two 
  5.8   business days nor more than six business days before the hearing.
  5.9      The advertisement must be at least one-eighth page in size 
  5.10  of a standard-size or a tabloid-size newspaper.  The 
  5.11  advertisement must not be placed in the part of the newspaper 
  5.12  where legal notices and classified advertisements appear.  The 
  5.13  advertisement must be published in an official newspaper of 
  5.14  general circulation in the taxing authority.  The newspaper 
  5.15  selected must be one of general interest and readership in the 
  5.16  community, and not one of limited subject matter.  The 
  5.17  advertisement must appear in a newspaper that is published at 
  5.18  least once per week.  
  5.19     For purposes of this section, the metropolitan special 
  5.20  taxing district's advertisement must only be published in the 
  5.21  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
  5.22     (b) The advertisement must be in the following form, except 
  5.23  that the notice for a school district may include references to 
  5.24  the current budget in regard to proposed property taxes. 
  5.25                             "NOTICE OF
  5.26                      PROPOSED PROPERTY TAXES
  5.27             (City/County/School District/Metropolitan
  5.28                  Special Taxing District/Regional
  5.29                   Library District) of .........
  5.30  The governing body of ........ will soon hold budget hearings 
  5.31  and vote on the property taxes for (city/county/metropolitan 
  5.32  special taxing district/regional library district services that 
  5.33  will be provided in 199_/school district services that will be 
  5.34  provided in 199_ and 199_). 
  5.35  The property tax amounts below compare current property taxes 
  5.36  and the property taxes that would be collected in 199- if the 
  6.1   budget now being considered is approved. 
  6.2   199-            Proposed 199-   199- Increase or Decrease   
  6.3   Property Taxes  Property Taxes     Amount       Percent  
  6.5   $.......        $.......           $.......     ....%   
  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 1,000 or less must 
  6.15  advertise by posted notice as defined in section 645.12, 
  6.16  subdivision 1.  The advertisement must be posted at the time 
  6.17  provided in paragraph (a).  It must be in the form required in 
  6.18  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 1994, 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 19 and December 20 10, the governing bodies 
  7.9   of the city, county, metropolitan special taxing districts as 
  7.10  defined in subdivision 3, paragraph (i), and regional library 
  7.11  districts shall each hold a public hearing to discuss and seek 
  7.12  public comment on its final budget and property tax levy for 
  7.13  taxes payable in the following year, and the governing body of 
  7.14  the school district shall hold a public hearing to review its 
  7.15  current budget and proposed property tax levy for taxes payable 
  7.16  in the following year.  The metropolitan special taxing 
  7.17  districts shall be required to hold only a single joint public 
  7.18  hearing, the location of which will be determined by the 
  7.19  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 10 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, 124B.03, subdivision 2, 
  8.14  or 136C.411, 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 issued or approved by the voters under section 475.58 
  8.19  after the 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 education after the 
  8.30  proposed levy was certified; and 
  8.31     (7) the amount required under section 124.755. 
  8.32     At the hearing under this subdivision, the percentage 
  8.33  increase in property taxes proposed by the taxing authority, if 
  8.34  any, and the specific purposes for which property tax revenues 
  8.35  are being increased must be discussed.  At the hearing held in 
  8.36  1993 only, specific information for previous year, current year, 
  9.1   and proposed budget year must be presented on: 
  9.2      (i) percent of total proposed budget representing total 
  9.3   compensation cost; 
  9.4      (ii) numbers of employees by general classification, and 
  9.5   whether full or part time; 
  9.6      (iii) number and budgeted expenditures for independent 
  9.7   contractors; and 
  9.8      (iv) the effect of budget increases or decreases on the 
  9.9   proposed property tax levy. 
  9.10     During the discussion, the governing body shall hear 
  9.11  comments regarding a proposed increase and explain the reasons 
  9.12  for the proposed increase.  The public shall be allowed to speak 
  9.13  and to ask questions.  At the subsequent hearing held as 
  9.14  provided in this subdivision, the governing body, other than the 
  9.15  governing body of a school district, shall adopt its final 
  9.16  property tax levy prior to adopting its final budget. 
  9.17     If the hearing is not completed on its scheduled date, the 
  9.18  taxing authority must announce, prior to adjournment of the 
  9.19  hearing, the date, time, and place for the continuation of the 
  9.20  hearing.  The continued hearing must be held at least five 
  9.21  business days but no more than 14 ten business days after the 
  9.22  original hearing. 
  9.23     The hearing must be held after 5:00 p.m. if scheduled on a 
  9.24  day other than Saturday.  No hearing may be held on a Sunday.  
  9.25  The governing body of a county shall hold a hearing on the 
  9.26  second first Tuesday in December each year, and may hold 
  9.27  additional hearings on other dates before December 20 10 if 
  9.28  necessary for the convenience of county residents.  If the 
  9.29  county needs a continuation of its hearing, the continued 
  9.30  hearing shall be held on the third second Tuesday in December 
  9.31  even if that second Tuesday is after December 10.  If the third 
  9.32  Tuesday in December falls on December 21, the county's 
  9.33  continuation hearing shall be held on Monday, December 20.  The 
  9.34  county auditor shall provide for the coordination of hearing 
  9.35  dates for all cities and school districts within the county. 
  9.36     By August 10, each school board and the board of the 
 10.1   regional library district shall certify to the county auditors 
 10.2   of the counties in which the school district or regional library 
 10.3   district is located the dates on which it elects to hold its 
 10.4   hearings and any continuations.  If a school board or regional 
 10.5   library district does not certify the dates by August 10, the 
 10.6   auditor will assign the hearing date.  The dates elected or 
 10.7   assigned must not conflict with the county hearing dates.  The 
 10.8   Ramsey county auditor shall coordinate with the metropolitan 
 10.9   special taxing districts as defined in subdivision 3, paragraph 
 10.10  (i), a date on which the metropolitan special taxing districts 
 10.11  will hold their joint public hearing and any continuation.  The 
 10.12  metropolitan special taxing districts shall decide on mutually 
 10.13  agreeable dates for their joint public hearing and for any 
 10.14  continuation of that hearing and certify these dates to the 
 10.15  Ramsey county auditor on or before July 25.  By August 20, the 
 10.16  county auditor shall notify the clerks of the cities within the 
 10.17  county of the dates on which school districts, metropolitan 
 10.18  special taxing districts, and regional library districts have 
 10.19  elected to hold their hearings.  At the time a city certifies 
 10.20  its proposed levy under subdivision 1 it shall certify the dates 
 10.21  on which it elects to hold its hearings and any continuations.  
 10.22  The city must not select dates that conflict with the county 
 10.23  hearing dates, metropolitan special taxing district dates, or 
 10.24  with those elected by or assigned to the school districts or 
 10.25  regional library district in which the city is located. 
 10.26     The county hearing dates and the city, metropolitan special 
 10.27  taxing district, regional library district, and school district 
 10.28  hearing dates must be designated on the notices required under 
 10.29  subdivision 3.  The continuation dates need not be stated on the 
 10.30  notices.  
 10.31     This subdivision does not apply to towns and special taxing 
 10.32  districts other than regional library districts and metropolitan 
 10.33  special taxing districts. 
 10.34     Notwithstanding the requirements of this section, the 
 10.35  employer is required to meet and negotiate over employee 
 10.36  compensation as provided for in chapter 179A.  
 11.1      Sec. 4.  Minnesota Statutes 1994, section 275.065, 
 11.2   subdivision 8, is amended to read: 
 11.3      Subd. 8.  [HEARING.] Notwithstanding any other provision of 
 11.4   law, Ramsey county, the city of St. Paul, and independent school 
 11.5   district No. 625 are authorized to and shall hold their public 
 11.6   hearing jointly.  The hearing must be held on the second first 
 11.7   Tuesday of December each year.  The advertisement required in 
 11.8   subdivision 5a may be a joint advertisement.  The hearing is 
 11.9   otherwise subject to the requirements of this section. 
 11.10     Ramsey county is authorized to hold an additional hearing 
 11.11  or hearings as provided under this section, provided that any 
 11.12  additional hearings must not conflict with the hearing dates of 
 11.13  the other taxing districts.  However, if Ramsey county elects 
 11.14  not to hold such additional hearing or hearings, the joint 
 11.15  hearing required by this subdivision must be held in a St. Paul 
 11.16  location convenient to residents of Ramsey county. 
 11.17     Sec. 5.  Minnesota Statutes 1994, section 275.065, is 
 11.18  amended by adding a subdivision to read: 
 11.19     Subd. 9.  [REVERSE REFERENDUM.] The reverse referendum 
 11.20  procedure in this subdivision applies only in the case of a 
 11.21  county, or a city that has a population of more than 1,000, that 
 11.22  has adopted a property tax levy increase over the levy amount 
 11.23  certified under section 275.07, subdivision 1, for the previous 
 11.24  year.  
 11.25     If within 21 days after the public hearing and adoption of 
 11.26  a levy under subdivision 6, a petition signed by voters equal in 
 11.27  number to five percent of the votes cast in the county or city 
 11.28  in the last general election requesting a referendum on the levy 
 11.29  increase is filed with the county auditor, or the city clerk, 
 11.30  the levy increase shall not be effective until it has been 
 11.31  submitted to the voters at a special election to be held on the 
 11.32  third Tuesday in January, and a majority of votes cast on the 
 11.33  question of approving the levy increase are in the affirmative.  
 11.34  The commissioner of revenue shall prepare the form of the 
 11.35  question to be presented at the referendum, which shall 
 11.36  reference only the amount of the property tax levy increase over 
 12.1   the previous year.  
 12.2      The county or city shall notify the county auditor of the 
 12.3   results of the referendum.  If the majority of the votes cast on 
 12.4   the question are in the affirmative, the levy adopted under 
 12.5   subdivision 6 shall be certified to the county auditor under 
 12.6   section 275.07, subdivision 1.  If the majority of the votes 
 12.7   cast on the question are in the negative, an amount equal to the 
 12.8   preceding year's levy shall be certified to the county auditor 
 12.9   for purposes of section 275.07, subdivision 1. 
 12.10     Sec. 6.  Minnesota Statutes 1994, section 275.07, 
 12.11  subdivision 1, is amended to read: 
 12.12     Subdivision 1.  Except as otherwise provided in this 
 12.13  subdivision, the taxes voted by cities, counties, school 
 12.14  districts, and special districts shall be certified by the 
 12.15  proper authorities to the county auditor on or before five 
 12.16  working days after December 20 in each year.  A county or city 
 12.17  to which the reverse referendum provisions under section 
 12.18  275.065, subdivision 9, apply shall certify the taxes to the 
 12.19  county auditor by January 5, except that any county or city for 
 12.20  which a petition has been filed under section 275.065, 
 12.21  subdivision 9, must certify by the third Wednesday in January.  
 12.22  A town must certify the levy adopted by the town board to the 
 12.23  county auditor by September 15 each year.  If the town board 
 12.24  modifies the levy at a special town meeting after September 15, 
 12.25  the town board must recertify its levy to the county auditor on 
 12.26  or before five working days after December 20.  The taxes 
 12.27  certified shall not be reduced by the aid received under 
 12.28  sections 273.1398, subdivisions 2 and 3.  If a city, town, 
 12.29  county, school district, or special district fails to certify 
 12.30  its levy by that date, its levy shall be the amount levied by it 
 12.31  for the preceding year.  
 12.32     Sec. 7.  [EFFECTIVE DATE.] 
 12.33     Sections 1 to 6 are effective for taxes levied in 1995 and 
 12.34  thereafter, payable in 1996 and thereafter.