HF 1035

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; converting the state
general tax on commercial-industrial property to a tax
based on land value; amending Minnesota Statutes 2004,
section 275.025, subdivision 4, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2004, section 275.025, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Commercial-industrial land tax capacity. new text end

new text begin For
the purposes of this section, "commercial-industrial land tax
capacity" means the estimated market value of the land value of
all taxable property classified as class 3 or class 5 under
section 273.13, excluding property described in section
473.625. County commercial-industrial land tax capacity amounts
are not adjusted for the captured net tax capacity of a tax
increment financing district under section 469.177, subdivision
2, the net tax capacity of transmission lines deducted from a
local government's total net tax capacity under section 273.425,
or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for
taxes payable in 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.025,
subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

new text begin (a) For taxes payable in 2002 through 2005, new text end the state general
tax must be distributed among the counties by applying a uniform
rate to each county's commercial-industrial tax capacity and its
seasonal residential recreational tax capacity. Within each
county, the tax must be levied by applying a uniform rate
against commercial-industrial tax capacity and seasonal
residential recreational tax capacity. On or before October 1
each year, the commissioner of revenue shall certify a
preliminary state general levy rate 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 rate to each county auditor that shall be used in spreading
taxes.

new text begin (b) For taxes payable in 2006 and later years, the state
general levy must first be divided into a commercial-industrial
share and a seasonal recreational share, in proportion to the
share of the state general tax levied on each of those classes
for taxes payable in 2005. For taxes payable in 2006, 100
percent of the commercial-industrial share is apportioned to the
regular commercial-industrial tax capacity. For taxes payable
in 2007, 90 percent is apportioned to regular
commercial-industrial tax capacity and ten percent to
commercial-industrial land tax capacity. In each succeeding
year, an additional ten percentage points of the
commercial-industrial share is shifted from regular
commercial-industrial tax capacity to commercial-industrial land
tax capacity. For taxes payable in 2016 and thereafter, the
full amount of the commercial-industrial share is levied upon
commercial-industrial land tax capacity.
new text end

new text begin (c) For each of the three component shares of the state
general levy determined in paragraph (b), the tax must be
distributed among the counties by applying a uniform rate to
each county's tax capacity for the relevant class. Within each
county, each component share of the tax must be levied by
applying a uniform rate against the relevant tax capacity for
that share of the levy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for
taxes payable in 2006.
new text end