HF 1033

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

  1.1                          A bill for an act 
  1.2             relating to property taxation; converting the state 
  1.3             general tax on commercial-industry property to a tax 
  1.4             based on land value; amending Minnesota Statutes 2002, 
  1.5             section 275.025, subdivision 4, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 275.025, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 2a.  [COMMERCIAL-INDUSTRIAL LAND TAX CAPACITY.] For 
  1.11  the purposes of this section, "commercial-industrial land tax 
  1.12  capacity" means the estimated market value of the land value of 
  1.13  all taxable property classified as class 3 or class 5 under 
  1.14  section 273.13, excluding property described in section 
  1.15  473.625.  County commercial-industrial land tax capacity amounts 
  1.16  are not adjusted for the captured net tax capacity of a tax 
  1.17  increment financing district under section 469.177, subdivision 
  1.18  2, the net tax capacity of transmission lines deducted from a 
  1.19  local government's total net tax capacity under section 273.425, 
  1.20  or fiscal disparities contribution and distribution net tax 
  1.21  capacities under chapter 276A or 473F. 
  1.22     Sec. 2.  Minnesota Statutes 2002, section 275.025, 
  1.23  subdivision 4, is amended to read: 
  1.24     Subd. 4.  [APPORTIONMENT AND LEVY OF STATE GENERAL TAX.] 
  1.25  (a) For taxes payable in 2002 and 2003, the state general tax 
  1.26  must be distributed among the counties by applying a uniform 
  2.1   rate to each county's commercial-industrial tax capacity and its 
  2.2   seasonal recreational tax capacity.  Within each county, the tax 
  2.3   must be levied by applying a uniform rate against 
  2.4   commercial-industrial tax capacity and seasonal recreational tax 
  2.5   capacity.  By November 1 each year, the commissioner of revenue 
  2.6   shall certify the state general levy rate to each county auditor.
  2.7      (b) For taxes payable in 2004 and later years, the state 
  2.8   general levy must first be divided into a commercial-industrial 
  2.9   share and a seasonal recreational share, in proportion to the 
  2.10  share of the state general tax levied on each of those classes 
  2.11  for taxes payable in 2003.  For taxes payable in 2004, 100 
  2.12  percent of the commercial-industrial share is apportioned to the 
  2.13  regular commercial-industrial tax capacity.  For taxes payable 
  2.14  in 2005, 90 percent is apportioned to regular 
  2.15  commercial-industrial tax capacity and ten percent to 
  2.16  commercial-industrial land tax capacity.  In each succeeding 
  2.17  year, an additional ten percentage points of the 
  2.18  commercial-industrial share is shifted from regular 
  2.19  commercial-industrial tax capacity to commercial-industrial land 
  2.20  tax capacity.  For taxes payable in 2014 and thereafter, the 
  2.21  full amount of the commercial-industrial share must be levied 
  2.22  upon commercial-industrial land tax capacity. 
  2.23     (c) For each of the three component shares of the state 
  2.24  general levy determined in paragraph (b), the tax must be 
  2.25  distributed among the counties by applying a uniform rate to 
  2.26  each county's tax capacity for the relevant class.  Within each 
  2.27  county, each component share of the tax must be levied by 
  2.28  applying a uniform rate against the relevant tax capacity for 
  2.29  that share of the levy. 
  2.30     [EFFECTIVE DATE.] This section is effective for taxes 
  2.31  payable in 2004.