HF 630

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property tax; advancing various 
  1.3             dates for the notices of proposed property taxes and 
  1.4             public hearings in the truth in taxation process; 
  1.5             amending Minnesota Statutes 2002, section 275.065. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 275.065, is 
  1.8   amended to read: 
  1.9      275.065 [PROPOSED PROPERTY TAXES; NOTICE.] 
  1.10     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
  1.11  law or charter to the contrary, on or before September 15 1, 
  1.12  each taxing authority, other than a school district, shall adopt 
  1.13  a proposed budget and shall certify to the county auditor the 
  1.14  proposed or, in the case of a town, the final property tax levy 
  1.15  for taxes payable in the following year. 
  1.16     (b) On or before September 30 1, each school district shall 
  1.17  certify to the county auditor the proposed property tax levy for 
  1.18  taxes payable in the following year.  The school district shall 
  1.19  certify the proposed levy as: 
  1.20     (1) the state determined school levy amount as prescribed 
  1.21  under section 126C.13, subdivision 2; 
  1.22     (2) voter approved referendum and debt levies; and 
  1.23     (3) the sum of the remaining school levies, or the maximum 
  1.24  levy limitation certified by the commissioner of children, 
  1.25  families, and learning according to section 126C.48, subdivision 
  2.1   1, less the amounts levied under clauses (1) and (2). 
  2.2      (c) If the board of estimate and taxation or any similar 
  2.3   board that establishes maximum tax levies for taxing 
  2.4   jurisdictions within a first class city certifies the maximum 
  2.5   property tax levies for funds under its jurisdiction by charter 
  2.6   to the county auditor by September 15 1, the city shall be 
  2.7   deemed to have certified its levies for those taxing 
  2.8   jurisdictions. 
  2.9      (d) For purposes of this section, "taxing authority" 
  2.10  includes all home rule and statutory cities, towns, counties, 
  2.11  school districts, and special taxing districts as defined in 
  2.12  section 275.066.  Intermediate school districts that levy a tax 
  2.13  under chapter 124 or 136D, joint powers boards established under 
  2.14  sections 123A.44 to 123A.446, and common school districts No. 
  2.15  323, Franconia, and No. 815, Prinsburg, are also special taxing 
  2.16  districts for purposes of this section.  
  2.17     Subd. 1a.  [OVERLAPPING JURISDICTIONS.] In the case of a 
  2.18  taxing authority lying in two or more counties, the home county 
  2.19  auditor shall certify the proposed levy and the proposed local 
  2.20  tax rate to the other county auditor by September 20 5.  The 
  2.21  home county auditor must estimate the levy or rate in preparing 
  2.22  the notices required in subdivision 3, if the other county has 
  2.23  not certified the appropriate information.  If requested by the 
  2.24  home county auditor, the other county auditor must furnish an 
  2.25  estimate to the home county auditor. 
  2.26     Subd. 1c.  [LEVY; SHARED, MERGED, CONSOLIDATED SERVICES.] 
  2.27  If two or more taxing authorities are in the process of 
  2.28  negotiating an agreement for sharing, merging, or consolidating 
  2.29  services between those taxing authorities at the time the 
  2.30  proposed levy is to be certified under subdivision 1, each 
  2.31  taxing authority involved in the negotiation shall certify its 
  2.32  total proposed levy as provided in that subdivision, including a 
  2.33  notification to the county auditor of the specific service 
  2.34  involved in the agreement which is not yet finalized.  The 
  2.35  affected taxing authorities may amend their proposed levies 
  2.36  under subdivision 1 until October September 10 for levy amounts 
  3.1   relating only to the specific service involved. 
  3.2      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  3.3   county auditor shall prepare and the county treasurer shall 
  3.4   deliver after November 10 October 15 and on or before November 
  3.5   October 24 each year, by first class mail to each taxpayer at 
  3.6   the address listed on the county's current year's assessment 
  3.7   roll, a notice of proposed property taxes.  
  3.8      (b) The commissioner of revenue shall prescribe the form of 
  3.9   the notice. 
  3.10     (c) The notice must inform taxpayers that it contains the 
  3.11  amount of property taxes each taxing authority proposes to 
  3.12  collect for taxes payable the following year.  In the case of a 
  3.13  town, or in the case of the state general tax, the final tax 
  3.14  amount will be its proposed tax.  In the case of taxing 
  3.15  authorities required to hold a public meeting under subdivision 
  3.16  6, the notice must clearly state that each taxing authority, 
  3.17  including regional library districts established under section 
  3.18  134.201, and including the metropolitan taxing districts as 
  3.19  defined in paragraph (i), but excluding all other special taxing 
  3.20  districts and towns, will hold a public meeting to receive 
  3.21  public testimony on the proposed budget and proposed or final 
  3.22  property tax levy, or, in case of a school district, on the 
  3.23  current budget and proposed property tax levy.  It must clearly 
  3.24  state the time and place of each taxing authority's meeting, a 
  3.25  telephone number for the taxing authority that taxpayers may 
  3.26  call if they have questions related to the notice, and an 
  3.27  address where comments will be received by mail.  
  3.28     (d) The notice must state for each parcel: 
  3.29     (1) the market value of the property as determined under 
  3.30  section 273.11, and used for computing property taxes payable in 
  3.31  the following year and for taxes payable in the current year as 
  3.32  each appears in the records of the county assessor on November 
  3.33  October 1 of the current year; and, in the case of residential 
  3.34  property, whether the property is classified as homestead or 
  3.35  nonhomestead.  The notice must clearly inform taxpayers of the 
  3.36  years to which the market values apply and that the values are 
  4.1   final values; 
  4.2      (2) the items listed below, shown separately by county, 
  4.3   city or town, and state general tax, net of the residential and 
  4.4   agricultural homestead credit under section 273.1384, voter 
  4.5   approved school levy, other local school levy, and the sum of 
  4.6   the special taxing districts, and as a total of all taxing 
  4.7   authorities:  
  4.8      (i) the actual tax for taxes payable in the current year; 
  4.9      (ii) the tax change due to spending factors, defined as the 
  4.10  proposed tax minus the constant spending tax amount; 
  4.11     (iii) the tax change due to other factors, defined as the 
  4.12  constant spending tax amount minus the actual current year tax; 
  4.13  and 
  4.14     (iv) the proposed tax amount. 
  4.15     If the county levy under clause (2) includes an amount for 
  4.16  a lake improvement district as defined under sections 103B.501 
  4.17  to 103B.581, the amount attributable for that purpose must be 
  4.18  separately stated from the remaining county levy amount.  
  4.19     In the case of a town or the state general tax, the final 
  4.20  tax shall also be its proposed tax unless the town changes its 
  4.21  levy at a special town meeting under section 365.52.  If a 
  4.22  school district has certified under section 126C.17, subdivision 
  4.23  9, that a referendum will be held in the school district at the 
  4.24  November general election, the county auditor must note next to 
  4.25  the school district's proposed amount that a referendum is 
  4.26  pending and that, if approved by the voters, the tax amount may 
  4.27  be higher than shown on the notice.  In the case of the city of 
  4.28  Minneapolis, the levy for the Minneapolis library board and the 
  4.29  levy for Minneapolis park and recreation shall be listed 
  4.30  separately from the remaining amount of the city's levy.  In the 
  4.31  case of the city of St. Paul, the levy for the St. Paul library 
  4.32  agency must be listed separately from the remaining amount of 
  4.33  the city's levy.  In the case of a parcel where tax increment or 
  4.34  the fiscal disparities areawide tax under chapter 276A or 473F 
  4.35  applies, the proposed tax levy on the captured value or the 
  4.36  proposed tax levy on the tax capacity subject to the areawide 
  5.1   tax must each be stated separately and not included in the sum 
  5.2   of the special taxing districts; and 
  5.3      (3) the increase or decrease between the total taxes 
  5.4   payable in the current year and the total proposed taxes, 
  5.5   expressed as a percentage. 
  5.6      For purposes of this section, the amount of the tax on 
  5.7   homesteads qualifying under the senior citizens' property tax 
  5.8   deferral program under chapter 290B is the total amount of 
  5.9   property tax before subtraction of the deferred property tax 
  5.10  amount. 
  5.11     (e) The notice must clearly state that the proposed or 
  5.12  final taxes do not include the following: 
  5.13     (1) special assessments; 
  5.14     (2) levies approved by the voters after the date the 
  5.15  proposed taxes are certified, including bond referenda, school 
  5.16  district levy referenda, and levy limit increase referenda; 
  5.17     (3) amounts necessary to pay cleanup or other costs due to 
  5.18  a natural disaster occurring after the date the proposed taxes 
  5.19  are certified; 
  5.20     (4) amounts necessary to pay tort judgments against the 
  5.21  taxing authority that become final after the date the proposed 
  5.22  taxes are certified; and 
  5.23     (5) the contamination tax imposed on properties which 
  5.24  received market value reductions for contamination. 
  5.25     (f) Except as provided in subdivision 7, failure of the 
  5.26  county auditor to prepare or the county treasurer to deliver the 
  5.27  notice as required in this section does not invalidate the 
  5.28  proposed or final tax levy or the taxes payable pursuant to the 
  5.29  tax levy. 
  5.30     (g) If the notice the taxpayer receives under this section 
  5.31  lists the property as nonhomestead, and satisfactory 
  5.32  documentation is provided to the county assessor by the 
  5.33  applicable deadline, and the property qualifies for the 
  5.34  homestead classification in that assessment year, the assessor 
  5.35  shall reclassify the property to homestead for taxes payable in 
  5.36  the following year. 
  6.1      (h) In the case of class 4 residential property used as a 
  6.2   residence for lease or rental periods of 30 days or more, the 
  6.3   taxpayer must either: 
  6.4      (1) mail or deliver a copy of the notice of proposed 
  6.5   property taxes to each tenant, renter, or lessee; or 
  6.6      (2) post a copy of the notice in a conspicuous place on the 
  6.7   premises of the property.  
  6.8      The notice must be mailed or posted by the taxpayer by 
  6.9   November October 27 or within three days of receipt of the 
  6.10  notice, whichever is later.  A taxpayer may notify the county 
  6.11  treasurer of the address of the taxpayer, agent, caretaker, or 
  6.12  manager of the premises to which the notice must be mailed in 
  6.13  order to fulfill the requirements of this paragraph. 
  6.14     (i) For purposes of this subdivision, subdivisions 5a and 
  6.15  6, "metropolitan special taxing districts" means the following 
  6.16  taxing districts in the seven-county metropolitan area that levy 
  6.17  a property tax for any of the specified purposes listed below: 
  6.18     (1) metropolitan council under section 473.132, 473.167, 
  6.19  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  6.20     (2) metropolitan airports commission under section 473.667, 
  6.21  473.671, or 473.672; and 
  6.22     (3) metropolitan mosquito control commission under section 
  6.23  473.711. 
  6.24     For purposes of this section, any levies made by the 
  6.25  regional rail authorities in the county of Anoka, Carver, 
  6.26  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  6.27  398A shall be included with the appropriate county's levy and 
  6.28  shall be discussed at that county's public hearing. 
  6.29     (j) If a statutory or home rule charter city or a town has 
  6.30  exercised the local levy option provided by section 473.388, 
  6.31  subdivision 7, it may include in the notice of its proposed 
  6.32  taxes the amount of its proposed taxes attributable to its 
  6.33  exercise of the option.  In the first year of the city or town's 
  6.34  exercise of this option, the statement shall include an estimate 
  6.35  of the reduction of the metropolitan council's tax on the parcel 
  6.36  due to exercise of that option.  The metropolitan council's levy 
  7.1   shall be adjusted accordingly. 
  7.2      Subd. 3a.  [CONSTANT SPENDING LEVY AMOUNT.] (a) For 
  7.3   purposes of this section, "constant spending levy amount" for a 
  7.4   county, city, town, or special taxing district means the 
  7.5   property tax levy that the taxing authority would need to levy 
  7.6   so that the sum of (i) its levy, including its fiscal 
  7.7   disparities distribution levy under section 276A.06, subdivision 
  7.8   3, clause (a), or 473F.08, subdivision 3, clause (a), plus (ii) 
  7.9   its property tax aid amounts, would remain constant from the 
  7.10  current year to the proposed year, taking into account the 
  7.11  fiscal disparities distribution levy amounts and the property 
  7.12  tax aid amounts that have been certified for the proposed year.  
  7.13  For the purposes of this paragraph, property tax aids include 
  7.14  homestead and agricultural credit aid under section 273.1398, 
  7.15  subdivision 2, local government aid under section 477A.013, 
  7.16  county criminal justice aid under section 477A.0121, and family 
  7.17  preservation aid under section 477A.0122. 
  7.18     (b) For the state determined school tax, "constant spending 
  7.19  levy amount" is the same as the proposed tax. 
  7.20     (c) For the voter approved school levy, "constant spending 
  7.21  levy amount" is the result of the following computation:  (i) 
  7.22  compute the current year's revenue per pupil in average daily 
  7.23  membership as the ratio of the voter approved referendum and 
  7.24  debt service levy plus aid revenue to the number of pupils in 
  7.25  average daily membership, as estimated at the time of levy 
  7.26  certification the previous December; (ii) compute the proposed 
  7.27  year's levy ratio as ratio of the proposed year's levy 
  7.28  limitation for voter approved referendum and debt service 
  7.29  revenue to the maximum referendum and debt service levy plus aid 
  7.30  revenue for the proposed year, at the time of proposed levy 
  7.31  certification in September; and (iii) compute the "constant 
  7.32  spending levy amount" as the product of the current year's 
  7.33  revenue per pupil from clause (i) times the proposed year's levy 
  7.34  ratio from clause (ii) times the proposed year's pupils in 
  7.35  average daily membership. 
  7.36     (d) For the sum of all other school levies not included in 
  8.1   paragraph (b) or (c), "constant spending levy amount" is the 
  8.2   result of the following computation:  (i) compute the current 
  8.3   year's revenue per pupil in average daily membership as the 
  8.4   ratio of the levy plus associated aid revenue to the number of 
  8.5   pupils in average daily membership, as estimated at the time of 
  8.6   levy certification the previous December; (ii) compute the 
  8.7   proposed year's levy ratio as ratio of the proposed year's levy 
  8.8   limitation to the maximum levy plus associated aid revenue for 
  8.9   the proposed year, estimated at the time of proposed levy 
  8.10  certification in September; and (iii) compute the "constant 
  8.11  spending levy amount" as the product of the current year's 
  8.12  revenue per pupil from clause (i) times the proposed year's levy 
  8.13  ratio from clause (ii) times the proposed year's pupils in 
  8.14  average daily membership. 
  8.15     (e) Each year, the commissioner of children, families, and 
  8.16  learning must compute and report to the county auditor each 
  8.17  school district's constant spending levy amounts by September 30 
  8.18  1.  In no case shall a constant spending levy amount be less 
  8.19  than $0.  For the purposes of this subdivision, school homestead 
  8.20  and agricultural credit aid under section 273.1398, subdivision 
  8.21  2, shall be included in the other school levy category.  For 
  8.22  purposes of this subdivision, the school fiscal disparities 
  8.23  distribution levy shall be apportioned proportionately among 
  8.24  levy categories. 
  8.25     (f) For the tax increment financing tax, and the fiscal 
  8.26  disparities tax, the "constant spending levy amount" is the same 
  8.27  as the proposed tax. 
  8.28     Subd. 4.  [COSTS.] If the reasonable cost of the county 
  8.29  auditor's services and the cost of preparing and mailing the 
  8.30  notice required in this section exceed the amount distributed to 
  8.31  the county by the commissioner of revenue to administer this 
  8.32  section, the taxing authority must reimburse the county for the 
  8.33  excess cost.  The excess cost must be apportioned between taxing 
  8.34  jurisdictions as follows:  
  8.35     (1) one-third is allocated to the county; 
  8.36     (2) one-third is allocated to cities and towns within the 
  9.1   county; and 
  9.2      (3) one-third is allocated to school districts within the 
  9.3   county.  
  9.4      The amounts in clause (2) must be further apportioned among 
  9.5   the cities and towns in the proportion that the number of 
  9.6   parcels in the city and town bears to the number of parcels in 
  9.7   all the cities and towns within the county.  The amount in 
  9.8   clause (3) must be further apportioned among the school 
  9.9   districts in the proportion that the number of parcels in the 
  9.10  school district bears to the number of parcels in all school 
  9.11  districts within the county. 
  9.12     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
  9.13  population of more than 2,500, county, a metropolitan special 
  9.14  taxing district as defined in subdivision 3, paragraph (i), a 
  9.15  regional library district established under section 134.201, or 
  9.16  school district shall advertise in a newspaper a notice of its 
  9.17  intent to adopt a budget and property tax levy or, in the case 
  9.18  of a school district, to review its current budget and proposed 
  9.19  property taxes payable in the following year, at a public 
  9.20  hearing, if a public hearing is required under subdivision 6.  
  9.21  The notice must be published not less than two business days nor 
  9.22  more than six business days before the hearing. 
  9.23     The advertisement must be at least one-eighth page in size 
  9.24  of a standard-size or a tabloid-size newspaper.  The 
  9.25  advertisement must not be placed in the part of the newspaper 
  9.26  where legal notices and classified advertisements appear.  The 
  9.27  advertisement must be published in an official newspaper of 
  9.28  general circulation in the taxing authority.  The newspaper 
  9.29  selected must be one of general interest and readership in the 
  9.30  community, and not one of limited subject matter.  The 
  9.31  advertisement must appear in a newspaper that is published at 
  9.32  least once per week.  
  9.33     For purposes of this section, the metropolitan special 
  9.34  taxing district's advertisement must only be published in the 
  9.35  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
  9.36     In addition to other requirements, a county and a city 
 10.1   having a population of more than 2,500 must show in the public 
 10.2   advertisement required under this subdivision the current local 
 10.3   tax rate, the proposed local tax rate if no property tax levy 
 10.4   increase is adopted, and the proposed rate if the proposed levy 
 10.5   is adopted.  For purposes of this subdivision, "local tax rate" 
 10.6   means the city's or county's net tax capacity levy divided by 
 10.7   the city's or county's taxable net tax capacity.  
 10.8      (b) The advertisement for school districts, metropolitan 
 10.9   special taxing districts, and regional library districts must be 
 10.10  in the following form, except that the notice for a school 
 10.11  district may include references to the current budget in regard 
 10.12  to proposed property taxes.  
 10.13                             "NOTICE OF
 10.14                      PROPOSED PROPERTY TAXES
 10.15                   (School District/Metropolitan
 10.16                  Special Taxing District/Regional
 10.17                   Library District) of .........
 10.18  The governing body of ........ will soon hold budget hearings 
 10.19  and vote on the property taxes for (metropolitan special taxing 
 10.20  district/regional library district services that will be 
 10.21  provided in (year)/school district services that will be 
 10.22  provided in (year) and (year)). 
 10.23                     NOTICE OF PUBLIC HEARING:
 10.24  All concerned citizens are invited to attend a public hearing 
 10.25  and express their opinions on the proposed (school 
 10.26  district/metropolitan special taxing district/regional library 
 10.27  district) budget and property taxes, or in the case of a school 
 10.28  district, its current budget and proposed property taxes, 
 10.29  payable in the following year.  The hearing will be held on 
 10.30  (Month/Day/Year) at (Time) at (Location, Address)." 
 10.31     (c) The advertisement for cities and counties must be in 
 10.32  the following form. 
 10.33                        "NOTICE OF PROPOSED
 10.34                  TOTAL BUDGET AND PROPERTY TAXES
 10.35  The (city/county) governing body or board of commissioners will 
 10.36  hold a public hearing to discuss the budget and to vote on the 
 11.1   amount of property taxes to collect for services the 
 11.2   (city/county) will provide in (year). 
 11.3      
 11.4   SPENDING:  The total budget amounts below compare 
 11.5   (city's/county's) (year) total actual budget with the amount the 
 11.6   (city/county) proposes to spend in (year). 
 11.7      
 11.8   (Year) Total          Proposed (Year)         Change from 
 11.9   Actual Budget         Budget                  (Year)-(Year)
 11.10     
 11.11  $.......              $.......                ...%
 11.12     
 11.13  TAXES:  The property tax amounts below compare that portion of 
 11.14  the current budget levied in property taxes in (city/county) for 
 11.15  (year) with the property taxes the (city/county) proposes to 
 11.16  collect in (year). 
 11.17     
 11.18  (Year) Property       Proposed (Year)          Change from
 11.19  Taxes                 Property Taxes           (Year)-(Year)
 11.20     
 11.21  $.......              $.......                 ...% 
 11.22     
 11.23  LOCAL TAX RATE COMPARISON:  The current local tax rate, the 
 11.24  local tax rate if no tax levy increase is adopted, and the 
 11.25  proposed local tax rate if the proposed levy is adopted. 
 11.26     
 11.27  (Year)                (Year)                       (Year) 
 11.28  Tax Rate              Tax Rate if NO               Proposed 
 11.29                        Levy Increase                Tax Rate 
 11.31  .......               .......                      ....... 
 11.32     
 11.33                     ATTEND THE PUBLIC HEARING
 11.34  All (city/county) residents are invited to attend the public 
 11.35  hearing of the (city/county) to express your opinions on the 
 11.36  budget and the proposed amount of (year) property taxes.  The 
 12.1   hearing will be held on: 
 12.2                        (Month/Day/Year/Time)
 12.3                          (Location/Address)
 12.4   If the discussion of the budget cannot be completed, a time and 
 12.5   place for continuing the discussion will be announced at the 
 12.6   hearing.  You are also invited to send your written comments to: 
 12.7                            (City/County)
 12.8                         (Location/Address)"
 12.9      (d) For purposes of this subdivision, the budget amounts 
 12.10  listed on the advertisement mean: 
 12.11     (1) for cities, the total government fund expenditures, as 
 12.12  defined by the state auditor under section 471.6965, less any 
 12.13  expenditures for improvements or services that are specially 
 12.14  assessed or charged under chapter 429, 430, 435, or the 
 12.15  provisions of any other law or charter; and 
 12.16     (2) for counties, the total government fund expenditures, 
 12.17  as defined by the state auditor under section 375.169, less any 
 12.18  expenditures for direct payments to recipients or providers for 
 12.19  the human service aids listed below: 
 12.20     (i) Minnesota family investment program under chapters 256J 
 12.21  and 256K; 
 12.22     (ii) medical assistance under sections 256B.041, 
 12.23  subdivision 5, and 256B.19, subdivision 1; 
 12.24     (iii) general assistance medical care under section 
 12.25  256D.03, subdivision 6; 
 12.26     (iv) general assistance under section 256D.03, subdivision 
 12.27  2; 
 12.28     (v) emergency assistance under section 256J.48; 
 12.29     (vi) Minnesota supplemental aid under section 256D.36, 
 12.30  subdivision 1; 
 12.31     (vii) preadmission screening under section 256B.0911, and 
 12.32  alternative care grants under section 256B.0913; 
 12.33     (viii) general assistance medical care claims processing, 
 12.34  medical transportation and related costs under section 256D.03, 
 12.35  subdivision 4; 
 12.36     (ix) medical transportation and related costs under section 
 13.1   256B.0625, subdivisions 17 to 18a; 
 13.2      (x) group residential housing under section 256I.05, 
 13.3   subdivision 8, transferred from programs in clauses (iv) and 
 13.4   (vi); or 
 13.5      (xi) any successor programs to those listed in clauses (i) 
 13.6   to (x). 
 13.7      (e) A city with a population of over 500 but not more than 
 13.8   2,500 that is required to hold a public hearing under 
 13.9   subdivision 6 must advertise by posted notice as defined in 
 13.10  section 645.12, subdivision 1.  The advertisement must be posted 
 13.11  at the time provided in paragraph (a).  It must be in the form 
 13.12  required in paragraph (b). 
 13.13     (f) For purposes of this subdivision, the population of a 
 13.14  city is the most recent population as determined by the state 
 13.15  demographer under section 4A.02. 
 13.16     (g) The commissioner of revenue, subject to the approval of 
 13.17  the chairs of the house and senate tax committees, shall 
 13.18  prescribe the form and format of the advertisements required 
 13.19  under this subdivision. 
 13.20     Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 13.21  (a) For purposes of this section, the following terms shall have 
 13.22  the meanings given: 
 13.23     (1) "Initial hearing" means the first and primary hearing 
 13.24  held to discuss the taxing authority's proposed budget and 
 13.25  proposed property tax levy for taxes payable in the following 
 13.26  year, or, for school districts, the current budget and the 
 13.27  proposed property tax levy for taxes payable in the following 
 13.28  year. 
 13.29     (2) "Continuation hearing" means a hearing held to complete 
 13.30  the initial hearing, if the initial hearing is not completed on 
 13.31  its scheduled date. 
 13.32     (3) "Subsequent hearing" means the hearing held to adopt 
 13.33  the taxing authority's final property tax levy, and, in the case 
 13.34  of taxing authorities other than school districts, the final 
 13.35  budget, for taxes payable in the following year. 
 13.36     (b) Between November 29 9 and December 20 1, the governing 
 14.1   bodies of a city that has a population over 500, county, 
 14.2   metropolitan special taxing districts as defined in subdivision 
 14.3   3, paragraph (i), and regional library districts shall each hold 
 14.4   an initial public hearing to discuss and seek public comment on 
 14.5   its final budget and property tax levy for taxes payable in the 
 14.6   following year, and the governing body of the school district 
 14.7   shall hold an initial public hearing to review its current 
 14.8   budget and proposed property tax levy for taxes payable in the 
 14.9   following year.  The metropolitan special taxing districts shall 
 14.10  be required to hold only a single joint initial public hearing, 
 14.11  the location of which will be determined by the affected 
 14.12  metropolitan agencies.  A city, county, metropolitan special 
 14.13  taxing district as defined in subdivision 3, paragraph (i), 
 14.14  regional library district established under section 134.201, or 
 14.15  school district is not required to hold a public hearing under 
 14.16  this subdivision unless its proposed property tax levy for taxes 
 14.17  payable in the following year, as certified under subdivision 1, 
 14.18  has increased over its final property tax levy for taxes payable 
 14.19  in the current year by a percentage that is greater than the 
 14.20  percentage increase in the implicit price deflator for 
 14.21  government consumption expenditures and gross investment for 
 14.22  state and local governments prepared by the Bureau of Economic 
 14.23  Analysts of the United States Department of Commerce for the 
 14.24  12-month period ending March 31 of the current year. 
 14.25     (c) The initial hearing must be held after 5:00 p.m. if 
 14.26  scheduled on a day other than Saturday.  No initial hearing may 
 14.27  be held on a Sunday.  
 14.28     (d) At the initial hearing under this subdivision, the 
 14.29  percentage increase in property taxes proposed by the taxing 
 14.30  authority, if any, and the specific purposes for which property 
 14.31  tax revenues are being increased must be discussed.  During the 
 14.32  discussion, the governing body shall hear comments regarding a 
 14.33  proposed increase and explain the reasons for the proposed 
 14.34  increase.  The public shall be allowed to speak and to ask 
 14.35  questions.  At the public hearing, the school district must also 
 14.36  provide and discuss information on the distribution of its 
 15.1   revenues by revenue source, and the distribution of its spending 
 15.2   by program area.  
 15.3      (e) If the initial hearing is not completed on its 
 15.4   scheduled date, the taxing authority must announce, prior to 
 15.5   adjournment of the hearing, the date, time, and place for the 
 15.6   continuation of the hearing.  The continuation hearing must be 
 15.7   held at least five business days but no more than 14 business 
 15.8   days after the initial hearing.  A continuation hearing may not 
 15.9   be held later than December 20 except as provided in paragraphs 
 15.10  (f) and (g).  A continuation hearing must be held after 5:00 
 15.11  p.m. if scheduled on a day other than Saturday.  No continuation 
 15.12  hearing may be held on a Sunday. 
 15.13     (f) The governing body of a county shall hold its initial 
 15.14  hearing on the first second Thursday in December November each 
 15.15  year, and may hold additional initial hearings on other dates 
 15.16  before December 20 1 if necessary for the convenience of county 
 15.17  residents.  If the county needs a continuation of its hearing, 
 15.18  the continuation hearing shall be held on the third Tuesday 
 15.19  in December.  If the third Tuesday in December falls on December 
 15.20  21, the county's continuation hearing shall be held on Monday, 
 15.21  December 20 November.  
 15.22     (g) The metropolitan special taxing districts shall hold a 
 15.23  joint initial public hearing on the first second Wednesday of 
 15.24  December November.  A continuation hearing, if necessary, shall 
 15.25  be held on the second third Wednesday of December even if that 
 15.26  second Wednesday is after December 10 November. 
 15.27     (h) The county auditor shall provide for the coordination 
 15.28  of initial and continuation hearing dates for all school 
 15.29  districts and cities within the county to prevent conflicts 
 15.30  under clauses (i) and (j). 
 15.31     (i) By August 10, each school board and the board of the 
 15.32  regional library district shall certify to the county auditors 
 15.33  of the counties in which the school district or regional library 
 15.34  district is located the dates on which it elects to hold its 
 15.35  initial hearing and any continuation hearing.  If a school board 
 15.36  or regional library district does not certify these dates by 
 16.1   August 10, the auditor will assign the initial and continuation 
 16.2   hearing dates.  The dates elected or assigned must not conflict 
 16.3   with the initial and continuation hearing dates of the county or 
 16.4   the metropolitan special taxing districts.  
 16.5      (j) By August 20, the county auditor shall notify the 
 16.6   clerks of the cities within the county of the dates on which 
 16.7   school districts and regional library districts have elected to 
 16.8   hold their initial and continuation hearings.  At the time a 
 16.9   city certifies its proposed levy under subdivision 1 it shall 
 16.10  certify the dates on which it elects to hold its initial hearing 
 16.11  and any continuation hearing.  Until September 15, the first and 
 16.12  second Mondays Monday of December are is reserved for the use of 
 16.13  the cities.  If a city does not certify its hearing dates by 
 16.14  September 15, the auditor shall assign the initial and 
 16.15  continuation hearing dates.  The dates elected or assigned for 
 16.16  the initial hearing must not conflict with the initial hearing 
 16.17  dates of the county, metropolitan special taxing districts, 
 16.18  regional library districts, or school districts within which the 
 16.19  city is located.  To the extent possible, the dates of the 
 16.20  city's continuation hearing should not conflict with the 
 16.21  continuation hearing dates of the county, metropolitan special 
 16.22  taxing districts, regional library districts, or school 
 16.23  districts within which the city is located.  This paragraph does 
 16.24  not apply to cities of 500 population or less. 
 16.25     (k) The county initial hearing date and the city, 
 16.26  metropolitan special taxing district, regional library district, 
 16.27  and school district initial hearing dates must be designated on 
 16.28  the notices required under subdivision 3.  The continuation 
 16.29  hearing dates need not be stated on the notices.  
 16.30     (l) At a subsequent hearing, each county, school district, 
 16.31  city over 500 population, and metropolitan special taxing 
 16.32  district may amend its proposed property tax levy and must adopt 
 16.33  a final property tax levy.  Each county, city over 500 
 16.34  population, and metropolitan special taxing district may also 
 16.35  amend its proposed budget and must adopt a final budget at the 
 16.36  subsequent hearing.  The final property tax levy must be adopted 
 17.1   prior to adopting the final budget.  A school district is not 
 17.2   required to adopt its final budget at the subsequent hearing.  
 17.3   The subsequent hearing of a taxing authority must be held on a 
 17.4   date subsequent to the date of the taxing authority's initial 
 17.5   public hearing.  If a continuation hearing is held, the 
 17.6   subsequent hearing must be held either immediately following the 
 17.7   continuation hearing or on a date subsequent to the continuation 
 17.8   hearing.  The subsequent hearing may be held at a regularly 
 17.9   scheduled board or council meeting or at a special meeting 
 17.10  scheduled for the purposes of the subsequent hearing.  The 
 17.11  subsequent hearing of a taxing authority does not have to be 
 17.12  coordinated by the county auditor to prevent a conflict with an 
 17.13  initial hearing, a continuation hearing, or a subsequent hearing 
 17.14  of any other taxing authority.  All subsequent hearings must be 
 17.15  held prior to five working days after December 20 1 of the levy 
 17.16  year.  The date, time, and place of the subsequent hearing must 
 17.17  be announced at the initial public hearing or at the 
 17.18  continuation hearing. 
 17.19     (m) The property tax levy certified under section 275.07 by 
 17.20  a city of any population, county, metropolitan special taxing 
 17.21  district, regional library district, or school district must not 
 17.22  exceed the proposed levy determined under subdivision 1, except 
 17.23  by an amount up to the sum of the following amounts: 
 17.24     (1) the amount of a school district levy whose voters 
 17.25  approved a referendum to increase taxes under section 123B.63, 
 17.26  subdivision 3, or 126C.17, subdivision 9, after the proposed 
 17.27  levy was certified; 
 17.28     (2) the amount of a city or county levy approved by the 
 17.29  voters after the proposed levy was certified; 
 17.30     (3) the amount of a levy to pay principal and interest on 
 17.31  bonds approved by the voters under section 475.58 after the 
 17.32  proposed levy was certified; 
 17.33     (4) the amount of a levy to pay costs due to a natural 
 17.34  disaster occurring after the proposed levy was certified, if 
 17.35  that amount is approved by the commissioner of revenue under 
 17.36  subdivision 6a; 
 18.1      (5) the amount of a levy to pay tort judgments against a 
 18.2   taxing authority that become final after the proposed levy was 
 18.3   certified, if the amount is approved by the commissioner of 
 18.4   revenue under subdivision 6a; 
 18.5      (6) the amount of an increase in levy limits certified to 
 18.6   the taxing authority by the commissioner of children, families, 
 18.7   and learning or the commissioner of revenue after the proposed 
 18.8   levy was certified; and 
 18.9      (7) the amount required under section 126C.55. 
 18.10     (n) This subdivision does not apply to towns and special 
 18.11  taxing districts other than regional library districts and 
 18.12  metropolitan special taxing districts. 
 18.13     (o) Notwithstanding the requirements of this section, the 
 18.14  employer is required to meet and negotiate over employee 
 18.15  compensation as provided for in chapter 179A.  
 18.16     Subd. 6a.  [APPROVAL OF COMMISSIONER.] (a) A taxing 
 18.17  authority may appeal to the commissioner of revenue for 
 18.18  authorization to levy an amount over the amount of the proposed 
 18.19  levy.  The taxing authority must provide evidence satisfactory 
 18.20  to the commissioner that it has incurred costs for the purposes 
 18.21  specified in paragraph (b).  The commissioner may approve an 
 18.22  increase in the taxing authority's levy of up to the amount of 
 18.23  costs incurred or a lesser amount determined by the 
 18.24  commissioner.  The commissioner's decision is final.  
 18.25     (b) A levy addition may be made under paragraph (a) for the 
 18.26  following costs incurred after the proposed levy is certified:  
 18.27  (1) the unreimbursed costs to satisfy judgments rendered against 
 18.28  the taxing authority by a court of competent jurisdiction in a 
 18.29  tort action in excess of $50,000 or ten percent of the current 
 18.30  year's proposed certified levy whichever is less; and (2) the 
 18.31  costs incurred in clean up of a natural disaster.  For purposes 
 18.32  of this subdivision, "natural disaster" includes the occurrence 
 18.33  or threat of widespread or severe damage, injury, or loss of 
 18.34  life or property resulting from causes such as earthquake, fire, 
 18.35  flood, windstorm, wave action, oil spill, water contamination, 
 18.36  air contamination, or drought. 
 19.1      Subd. 6b.  [JOINT PUBLIC HEARINGS.] Notwithstanding any 
 19.2   other provision of law, any city with a population of 10,000 and 
 19.3   over, may conduct a more comprehensive public hearing than is 
 19.4   contained in subdivision 6 by including a board member from the 
 19.5   county, a board member from the school district located within 
 19.6   the city's boundary, and a representative of the metropolitan 
 19.7   council, if the city is in the metropolitan area, as defined in 
 19.8   section 473.121, subdivision 2, at the city's public hearing.  
 19.9   All provisions regarding the public hearings under subdivision 6 
 19.10  are applicable to the joint public hearings under this 
 19.11  subdivision. 
 19.12     Upon the adoption of a resolution by the governing body of 
 19.13  the city to hold a joint hearing, the city shall notify the 
 19.14  county, the school district, and the metropolitan council if the 
 19.15  city is in the metropolitan area, of the decision to hold a 
 19.16  joint public hearing and request a board member from each of 
 19.17  those taxing authorities, and the member or the designee of the 
 19.18  metropolitan council if applicable, to be at the joint hearing.  
 19.19  If the city is located in more than one county, the city may 
 19.20  choose to request a county board member from each county or only 
 19.21  from the county containing the majority of the city's market 
 19.22  value.  If more than one school district is partially or totally 
 19.23  located within the city, the city may choose to request a school 
 19.24  district board member from each school district, or a board 
 19.25  member only from the school district containing the majority of 
 19.26  the city's market value.  If, as a result of requests under this 
 19.27  subdivision, there are not sufficient board members in the 
 19.28  county or the school district to attend the joint hearing, the 
 19.29  county or school district may send a nonelected person working 
 19.30  for its taxing authority to speak on the authority's behalf.  
 19.31  The city may also invite each state senator and representative 
 19.32  who represents the city, or a portion of the city, to come to 
 19.33  the joint hearing. 
 19.34     The primary purpose of the joint hearing is to discuss the 
 19.35  city's budget and property tax levy.  The county and school 
 19.36  district officials, and metropolitan council representative, if 
 20.1   the city is in the metropolitan area, should be prepared to 
 20.2   answer questions relevant to its budget and levy and the effect 
 20.3   that its levy has on the property owners in the city. 
 20.4      If a city conducts a hearing under this subdivision, this 
 20.5   hearing is in lieu of the initial hearing required under 
 20.6   subdivision 6.  However, the city is still required to adopt its 
 20.7   proposed property tax levy at a subsequent hearing as provided 
 20.8   under subdivision 6.  The hearings under this subdivision do not 
 20.9   relieve a county, school district, or the metropolitan council 
 20.10  of the requirement to hold its individual hearing under 
 20.11  subdivision 6. 
 20.12     Subd. 7.  [CERTIFICATION OF COMPLIANCE.] At the time the 
 20.13  taxing authority certifies its tax levy under section 275.07, it 
 20.14  shall certify to the commissioner of revenue its compliance with 
 20.15  this section.  The certification must contain the information 
 20.16  required by the commissioner of revenue to determine compliance 
 20.17  with this section.  If the commissioner determines that the 
 20.18  taxing authority has failed to substantially comply with the 
 20.19  requirements of this section, the commissioner of revenue shall 
 20.20  notify the county auditor.  The decision of the commissioner is 
 20.21  final.  When fixing rates under section 275.08 for a taxing 
 20.22  authority that has not complied with this section, the county 
 20.23  auditor must use the taxing authority's previous year's levy, 
 20.24  plus any additional amounts necessary to pay principal and 
 20.25  interest on general obligation bonds of the taxing authority for 
 20.26  which its taxing powers have been pledged if the bonds were 
 20.27  issued before 1989.  
 20.28     Subd. 8.  [HEARING.] Notwithstanding any other provision of 
 20.29  law, Ramsey county, the city of St. Paul, and independent school 
 20.30  district No. 625 are authorized to and shall hold their initial 
 20.31  public hearing jointly.  The hearing must be held on the second 
 20.32  Tuesday of December November each year.  The advertisement 
 20.33  required in subdivision 5a may be a joint advertisement.  The 
 20.34  hearing is otherwise subject to the requirements of this section.
 20.35     Ramsey county is authorized to hold an additional initial 
 20.36  hearing or hearings as provided under this section, provided 
 21.1   that any additional hearings must not conflict with the initial 
 21.2   or continuation hearing dates of the other taxing districts.  
 21.3   However, if Ramsey county elects not to hold such additional 
 21.4   initial hearing or hearings, the joint initial hearing required 
 21.5   by this subdivision must be held in a St. Paul location 
 21.6   convenient to residents of Ramsey county. 
 21.7      [EFFECTIVE DATE.] This section is effective for proposed 
 21.8   notices and hearings held in 2003 and thereafter, for property 
 21.9   taxes payable in 2004 and thereafter.