Minnesota Legislature
HF 606
as introduced - 90th Legislature (2017 - 2018) Posted on 02/13/2017 01:21pm
Bill Text Versions
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| Introduction | Posted on 01/30/2017 |
Current Version - as introduced
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A bill for an act
relating to taxation; property; phasing out the state general levy on
commercial-industrial property over five years; amending Minnesota Statutes
2016, section 275.025, subdivisions 1, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
new text begin (a) new text end The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section.
new text begin (b) new text end The state general levy base amount new text begin for seasonal residential recreational property is
new text end is deleted text begin $592,000,000deleted text end new text begin $44,213,000new text end for taxes payable in deleted text begin 2002deleted text end new text begin 2018new text end . For taxes payable in subsequent
years, the levy base amount is increased each year by multiplying the levy base amount for
the prior year by the sum of one plus the rate of increase, if any, in the implicit price deflator
for government consumption expenditures and gross investment for state and local
governments prepared by the Bureau of Economic Analysts of the United States Department
of Commerce for the 12-month period ending March 31 of the year prior to the year the
taxes are payable.
new text begin
(c) The state general levy base amount for commercial-industrial property is
$655,539,000. For taxes payable in 2018, the state general levy for commercial-industrial
property is equal to the base amount. For taxes payable in 2019 to taxes payable in 2021,
the levy is reduced each year from the previous year's amount by 25 percent of the base
amount. For taxes payable in 2022 and thereafter, the state general levy for
commercial-industrial property is $0.
new text end
new text begin (d) new text end The tax under this section is not treated as a local tax rate under section 469.177 and
is not the levy of a governmental unit under chapters 276A and 473F.
new text begin (e) new text end The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under section
275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
for the same year.
new text begin (f) new text end The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2018 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
Subd. 4.
Apportionment and levy of state general tax.
deleted text begin Ninety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applyingdeleted text end a uniform rate
to all seasonal residential recreational tax capacity. On or before October 1 each year, the
commissioner of revenue shall certify the preliminary state general levy rates to each county
auditor that must be used to prepare the notices of proposed property taxes for taxes payable
in the following year. By January 1 of each year, the commissioner shall certify the final
state general levy deleted text begin ratedeleted text end new text begin ratesnew text end to each county auditor that shall be used in spreading taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2018.
new text end