HF 172

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; local government aid to cities; 
  1.3             reducing the city aid base as aid appropriations 
  1.4             increase; amending Minnesota Statutes 2002, sections 
  1.5             477A.011, subdivision 37; 477A.013, subdivision 9. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 477A.011, 
  1.8   subdivision 37, is amended to read: 
  1.9      Subd. 37.  [BASE REDUCTION PERCENTAGE RATIO.] "Base 
  1.10  reduction percentage ratio" is (1) the difference between the 
  1.11  amount available for city aid under section 477A.03 for the year 
  1.12  for which aid is being calculated and the amount available for 
  1.13  city aid under section 477A.03 for calendar year 1994 2003, (2) 
  1.14  divided by the sum of the city aid base for all cities and (3) 
  1.15  multiplied by 100.  The reduction percentage ratio for any year 
  1.16  may not be less than the reduction percentage ratio from the 
  1.17  previous year.  For aid paid in calendar year 1994, the 
  1.18  reduction percentage is zero.  The reduction percentage ratio 
  1.19  may not be more than 100 percent one. 
  1.20     [EFFECTIVE DATE.] This section is effective for aids 
  1.21  payable in 2004 and thereafter. 
  1.22     Sec. 2.  Minnesota Statutes 2002, section 477A.013, 
  1.23  subdivision 9, is amended to read: 
  1.24     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
  1.25  2002 2004 and thereafter, each city shall receive an aid 
  2.1   distribution equal to the sum of (1) the city formula aid under 
  2.2   subdivision 8, and (2) its city aid base multiplied by the 
  2.3   difference between one and the base reduction ratio.  
  2.4      (b) The percentage increase for a first class city in 
  2.5   calendar year 1995 and thereafter, except for 2002, shall not 
  2.6   exceed the percentage increase in the sum of the aid to all 
  2.7   cities under this section in the current calendar year compared 
  2.8   to the sum of the aid to all cities in the previous year.  For 
  2.9   aids payable in 2002 only, the amount of the aid paid to a first 
  2.10  class city shall not exceed the sum of its aid amount for 
  2.11  calendar year 2001 under this section and its aid payment in 
  2.12  calendar year 2001 under section 273.1398, subdivision 2, by 
  2.13  more than 2.5 percent. 
  2.14     (c) For aids payable in all years except 2002, the total 
  2.15  aid for any city, except a first class city, shall not exceed 
  2.16  the sum of (1) ten percent of the city's net levy for the year 
  2.17  prior to the aid distribution plus (2) its total aid in the 
  2.18  previous year.  For aids payable in 2002 only, the total aid for 
  2.19  any city, except a first class city, shall not exceed the sum of 
  2.20  (1) 40 percent of the city's net levy for taxes payable in the 
  2.21  year prior to the aid distribution plus (2) 40 percent of its 
  2.22  total aid in the previous year under section 273.1398, 
  2.23  subdivision 2, plus (3) its total aid in the previous year under 
  2.24  this section. 
  2.25     [EFFECTIVE DATE.] This section is effective for aids 
  2.26  payable in 2004 and thereafter.