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HF 342

as introduced - 90th Legislature (2017 - 2018) Posted on 01/19/2017 01:23pm

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

Bill Text Versions

Engrossments
Introduction Posted on 01/19/2017

Current Version - as introduced

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A bill for an act
relating to taxation; minerals; adding six unorganized territories to certain
distributions of the production tax on taconite; amending Minnesota Statutes 2016,
section 298.28, subdivision 3.

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

Section 1.

Minnesota Statutes 2016, 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.

(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 subdivisiondeleted text begin ,deleted text end new text begin :
new text end

new text begin (1)new text end deleted text begin threedeleted text end new text begin 3.25new text end cents per taxable ton for distributions in deleted text begin 2009deleted text end new text begin 2017new text end must be allocated for
distribution to towns that are entirely located within the taconite tax relief area defined in
section 273.134, paragraph (b). deleted text begin 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
.
deleted text end new text begin ; and
new text end

new text begin (2) for distributions in 2018 and subsequent years, the 3.25-cent amount in clause (1)
must be annually increased in the same proportion as the increase in the implicit price
deflator as provided in section 298.24, subdivision 1, and must be allocated for distribution
to:
new text end

new text begin (i) towns that are entirely located within the taconite tax relief area defined in section
273.134, paragraph (b); and
new text end

new text begin (ii) the following unorganized territories in St. Louis County and Itasca County: 56-17;
58-22; 59-16; 59-21; 60-18; and 60-19.
new text end

The amount available under this paragraph deleted text begin willdeleted text end new text begin mustnew text end be distributed to eligible townsnew text begin
and unorganized territories
new text end on a per capita basis, provided that no town new text begin or unorganized
territory
new text end 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 new text begin or unorganized territory new text end under
this paragraph must be redistributed on a per capita basis among the other eligible townsnew text begin
and unorganized territories
new text end , to whose distributions do not exceed $50,000.new text begin The amount
available to unorganized territories in St. Louis County and Itasca County may be held by
the county and combined for public infrastructure projects for the specified unorganized
territories.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning in 2017 and
thereafter.
new text end