as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
|Introduction||Posted on 01/28/2003|
1.1 A bill for an act 1.2 relating to education finance; lowering the actual 1.3 maximum effort capital loan tax rate for existing 1.4 loans; making technical corrections to adjust the 1.5 stated maximum effort capital loan tax rates to match 1.6 the actual rates; amending Minnesota Statutes 2002, 1.7 sections 126C.63, subdivision 8, by adding a 1.8 subdivision; 126C.69, subdivisions 2 and 9. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 2002, section 126C.63, 1.11 subdivision 8, is amended to read: 1.12 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 1.13 effort debt service levy" means the lesser of: 1.14 (1) a levy in whichever of the following amounts is 1.15 applicable: 1.16 (a) in any district receiving a debt service loan for a 1.17 debt service levy payable in 2002 and thereafter, or granted a 1.18 capital loan after January 1,
20012002, a levy in total dollar 1.19 amount computed at a rate of 3040 percent of adjusted net tax 1.20 capacity for taxes payable in 2002 and thereafter; 1.21 (b) in any district receiving a debt service loan for a 1.22 debt service levy payable in 1991 and thereafter2001 or 1.23 earlier, or granted a capital loan afterbefore January 11.24 2, 19902002, a levy in a total dollar amount computed at a rate 1.25 of 2428 percent of adjusted net tax capacity for taxes payable 1.26 in 19912002 and thereafter; or 1.27 (c) in any district granted a debt service loan after July2.1 31, 1981, or granted a capital loan which is approved after July2.2 31, 1981, a levy in a total dollar amount computed as a tax rate2.3 of 21.92 percent on the adjusted net tax capacity for taxes2.4 payable in 1991 and thereafter; or2.5 (2) a levy in any district for which a capital loan was 2.6 approved prior to August 1, 1981, a levy in a total dollar 2.7 amount equal to the sum of the amount of the required debt 2.8 service levy and an amount which when levied annually will in 2.9 the opinion of the commissioner be sufficient to retire the 2.10 remaining interest and principal on any outstanding loans from 2.11 the state within 30 years of the original date when the capital 2.12 loan was granted. 2.13 The board in any district affected by the provisions of 2.14 clause (2) may elect instead to determine the amount of its levy 2.15 according to the provisions of clause (1). If a district's 2.16 capital loan is not paid within 30 years because it elects to 2.17 determine the amount of its levy according to the provisions of 2.18 clause (2), the liability of the district for the amount of the 2.19 difference between the amount it levied under clause (2) and the 2.20 amount it would have levied under clause (1), and for interest 2.21 on the amount of that difference, must not be satisfied and 2.22 discharged pursuant to Minnesota Statutes 1988, or an earlier 2.23 edition of Minnesota Statutes if applicable, section 124.43, 2.24 subdivision 4. 2.25 [EFFECTIVE DATE.] This section is effective for taxes 2.26 payable in 2004. 2.27 Sec. 2. Minnesota Statutes 2002, section 126C.63, is 2.28 amended by adding a subdivision to read: 2.29 Subd. 8a. [MAXIMUM LEVY INCREASE.] For any district that 2.30 has not issued new debt since January 1, 2003, the maximum 2.31 effort debt service levy calculated under subdivision 8 is 2.32 limited to not more than 106 percent of the district's maximum 2.33 effort debt service levy for the previous year. 2.34 [EFFECTIVE DATE.] This section is effective for taxes 2.35 payable in 2004. 2.36 Sec. 3. Minnesota Statutes 2002, section 126C.69, 3.1 subdivision 2, is amended to read: 3.2 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 3.3 1999, a district is not eligible for a capital loan unless the 3.4 district's estimated net debt tax rate as computed by the 3.5 commissioner after debt service equalization aid would be more 3.6 than 3040 percent of adjusted net tax capacity. The estimate 3.7 must assume a 20-year maturity schedule for new debt. 3.8 [EFFECTIVE DATE.] This section is effective for taxes 3.9 payable in 2004. 3.10 Sec. 4. Minnesota Statutes 2002, section 126C.69, 3.11 subdivision 9, is amended to read: 3.12 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 3.13 recommended for approval for a district exceeding an amount 3.14 computed as follows: 3.15 (1) the amount requested by the district under subdivision 3.16 6; 3.17 (2) plus the aggregate principal amount of general 3.18 obligation bonds of the district outstanding on June 30 of the 3.19 year following the year the application was received, not 3.20 exceeding the limitation on net debt of the district in section 3.21 475.53, subdivision 4, or 450607 percent of its adjusted net 3.22 tax capacity as most recently determined, whichever is less; 3.23 (3) less the maximum net debt permissible for the district 3.24 on December 1 of the year the application is received, under the 3.25 limitation in section 475.53, subdivision 4, or 450607 percent 3.26 of its adjusted net tax capacity as most recently determined, 3.27 whichever is less; 3.28 (4) less any amount by which the amount voted exceeds the 3.29 total cost of the facilities for which the loan is granted. 3.30 (b) The loan may be approved in an amount computed as 3.31 provided in paragraph (a), clauses (1) to (3), subject to later 3.32 reduction according to paragraph (a), clause (4).