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Minnesota Legislature

Office of the Revisor of Statutes

HF 324

as introduced - 91st Legislature (2019 - 2020) Posted on 01/24/2019 02:17pm

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

Current Version - as introduced

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A bill for an act
relating to taxes; production tax on taconite; modifying the guaranteed distribution
formula for the taconite municipal aid account; indexing the municipal aid account
allocation to inflation; amending Minnesota Statutes 2018, sections 298.225,
subdivision 1; 298.28, subdivision 3.

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

Section 1.

Minnesota Statutes 2018, section 298.225, subdivision 1, is amended to read:


Subdivision 1.

Guaranteed distribution.

(a) new text beginExcept as provided under paragraph (c),
new text end the distribution of the taconite production tax as provided in section 298.28, subdivisions
3 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:

(1) the amount distributed pursuant to this section and section 298.28, with respect to
1983 production if the production for the year prior to the distribution year is no less than
42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
of the distributions shall be reduced proportionately at the rate of two percent for each
1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
tons; or

(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
(b)
and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
section and section 298.28, with respect to 1983 production;

(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
with respect to 1983 production provided that the aid guarantee for distributions under
section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
for production years 2014 and thereafter.

(b) The distribution of the taconite production tax as provided in section 298.28,
subdivision 2
, shall equal the following amount:

(1) if the production for the year prior to the distribution year is at least 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production; or

(2) if the production for the year prior to the distribution year is less than 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.

new text begin (c) The distribution of the taconite production tax under section 298.28, subdivision 3,
paragraph (a), must equal the amount distributed under 298.28, with respect to 1983
production.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2020 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2018, section 298.28, subdivision 3, is amended to read:


Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton, less any amount distributed under
subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account
to be distributed as provided in section 298.282.new text begin The amount allocated to the taconite
municipal aid account must be annually increased in the same proportion as the increase in
the implicit price deflator as provided in section 298.24, subdivision 1.
new text end

(b) An amount must be allocated to towns or cities that is annually certified by the county
auditor of a county containing a taconite tax relief area as defined in section 273.134,
paragraph (b)
, within which there is (1) an organized township if, as of January 2, 1982,
more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or city's
certified levy equal to the proportion of (1) the difference between 50 percent of January
2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
assessed value in the case of a city and its current assessed value to (2) the sum of its current
assessed value plus the difference determined in (1), provided that the amount distributed
shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
city. For purposes of this limitation, population will be determined according to the 1980
decennial census conducted by the United States Bureau of the Census. If the current assessed
value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
value," when used in reference to years other than 1980 or 1982, means the appropriate net
tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, three cents per taxable ton
for distributions in 2009 must be allocated for distribution to towns that are entirely located
within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution
in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
amount must be annually increased in the same proportion as the increase in the implicit
price deflator as provided in section 298.24, subdivision 1. The amount available under this
paragraph will be distributed to eligible towns on a per capita basis, provided that no town
may receive more than $50,000 in any year under this paragraph. Any amount of the
distribution that exceeds the $50,000 limitation for a town under this paragraph must be
redistributed on a per capita basis among the other eligible towns, to whose distributions
do not exceed $50,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2020 and thereafter.
new text end