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HF 166

as introduced - 90th Legislature (2017 - 2018) Posted on 01/13/2017 10:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/11/2017

Current Version - as introduced

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A bill for an act
relating to taxation; property; limiting fiscal disparities contributions for certain
municipalities; amending Minnesota Statutes 2016, sections 473F.07, subdivision
1; 473F.08, subdivisions 2, 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 473F.07, subdivision 1, is amended to read:


Subdivision 1.

Areawide net tax capacity.

new text begin (a) new text end Each county auditor shall certify the
determinations under sections 473F.05 and 473F.06 to the administrative auditor on or
before August 1 of each year.

new text begin (b) new text end The administrative auditor shall determine an amount equal to 40 percent of the sum
of the amounts certified under section 473F.06new text begin ; except that in the case of a municipality
that is not served by regional wastewater services under chapter 473, the administrative
auditor shall determine an amount equal to the lesser of:
new text end

new text begin (1) 40 percent of the sum of the amounts certified under section 473F.06; or
new text end

new text begin (2) ten percent of the municipality's net tax capacity for the same year as the certification
under section 473F.06
new text end .

The resulting amount shall be known as the "areawide net tax capacity for ........(year)."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning with taxes
payable in 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 473F.08, subdivision 2, is amended to read:


Subd. 2.

Computation of net tax capacity.

The net tax capacity of a governmental unit
is its net tax capacity, as determined in accordance with other provisions of law including
section 469.177, subdivision 3, subject to the following adjustments:

(a) There shall be subtracted from its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears the same
proportion to deleted text begin 40 percent ofdeleted text end the amount certified in that year under deleted text begin sections 473F.06 anddeleted text end
new text begin section new text end 473F.07new text begin , subdivision 1, paragraph (b),new text end for the municipality as the total preceding
year's net tax capacity of commercial-industrial property which is subject to the taxing
jurisdiction of the governmental unit within the municipality, determined without regard to
section 469.177, subdivision 3, bears to the total preceding year's net tax capacity of
commercial-industrial property within the municipality, determined without regard to section
469.177, subdivision 3;

(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears the same
proportion to the areawide net tax capacity for the year attributable to that municipality as
the total preceding year's net tax capacity of residential property which is subject to the
taxing jurisdiction of the governmental unit within the municipality bears to the total
preceding year's net tax capacity of residential property of the municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning with taxes
payable in 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 473F.08, subdivision 6, is amended to read:


Subd. 6.

Application to commercial-industrial property.

The areawide tax rate
determined in accordance with subdivision 5 shall apply to each commercial-industrial
property subject to taxation within a municipality, including property located within any
tax increment financing district, as defined in section 469.174, subdivision 9, to that portion
of the net tax capacity of the item which bears the same proportion to its total net tax capacity
as deleted text begin 40 percent ofdeleted text end the amount determined under deleted text begin sections 473F.06 anddeleted text end new text begin section new text end 473F.07new text begin ,
subdivision 1, paragraph (b),
new text end
is to the amount determined under section 473F.05. The tax
rate determined in accordance with subdivision 4 shall apply in the taxation of the remainder
of the net tax capacity of the item.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning with taxes
payable in 2018.
new text end