HF 445

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; modifying the tax base used to calculate debt
service levies; amending Minnesota Statutes 2006, sections 123B.53, subdivision
5; 126C.01, by adding a subdivision; 127A.48, by adding a subdivision; 273.11,
subdivision 1a.

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

Section 1.

Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the deleted text begin adjusted deleted text end new text begin debt service new text end net tax capacity of the
district for the year before the year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the year the levy is certified; to

(2) $3,200.

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the deleted text begin adjusted deleted text end new text begin debt service new text end net tax capacity of the
district for the year before the year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the year the levy is certified; to

(2) $8,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Debt service net tax capacity. new text end

new text begin A school district's debt service net tax
capacity means the net tax capacity of the taxable property of the district as adjusted by
the commissioner of revenue under section , subdivision 17. The debt service net
tax capacity for any given calendar year must be used to compute the debt service levy
limitations for levies certified in the succeeding calendar year and aid for the school year
beginning in the second succeeding calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Debt service net tax capacity. new text end

new text begin To calculate each district's debt service
net tax capacity, the commissioner of revenue must recompute the amounts in this section
using an alternative sales ratio comparing the sales price to the estimated market value
of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

In the case of all property classified as
agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber,
or noncommercial seasonal residential recreational, the assessor shall compare the value
with the taxable portion of the value determined in the preceding assessment.

For assessment years 2004, 2005, and 2006, the amount of the increase shall not
exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
percent of the difference between the current assessment and the preceding assessment.

For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.

This limitation shall not apply to increases in value due to improvements. For
purposes of this subdivision, the term "assessment" means the value prior to any exclusion
under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year 2008
as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, new text begin excluding
section , new text end 124D, 125A, 126C, 127A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16, shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end