as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 02/17/2005 |
A bill for an act
relating to taxes; property tax; requiring payments to
compensate taxing jurisdictions for lost property tax
base when real property is acquired by a governmental
entity and becomes tax exempt; proposing coding for
new law in Minnesota Statutes, chapter 273.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For the purposes of this
section, the following terms have the meanings given them.
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(b) "State" means a state agency, board, commission, or
authority.
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(c) "Political subdivision" means the metropolitan council
or a metropolitan agency, county, statutory or home rule charter
city, township, school district, or any other political
subdivision with the authority to acquire real property.
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(c) "Acquire" includes acquisition by purchase, gift, or
eminent domain.
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(a) When the state or a
political subdivision acquires taxable real property and that
property becomes tax exempt upon acquisition, the state or
political subdivision must pay to all other taxing jurisdictions
levying property taxes on the property in the year in which it
is acquired an amount as follows:
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(1) in the year in which the property is acquired, 100
percent of the taxes payable for that year on the acquired
property, less any amount of property taxes already collected
for that year on the property before the acquisition;
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(2) in the first full year after acquisition, 80 percent of
the total amount that was due and payable in the year of
acquisition;
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(3) in the second year after acquisition, 60 percent of the
total amount that was due and payable in the year of
acquisition;
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(4) in the fourth year after acquisition, 40 percent of the
total amount that was due and payable in the year of
acquisition; and
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(5) in the fifth year after acquisition, 20 percent of the
total amount that was due and payable in the year of acquisition.
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(b) As an alternative to the payments required as provided
in paragraph (a), clauses (2) to (5), the state or political
subdivision may pay to any taxing jurisdiction a single payment
equal to 150 percent of the total taxes payable on the acquired
property in the year of acquisition.
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(c) Payment under paragraph (a), clause (1), or under
paragraph (b) must be made at the time of acquisition and paid
directly to each taxing jurisdiction. Payments under paragraph
(a), clauses (2) to (5), must be made annually on or before May
15 of each year immediately following the year of acquisition.
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A statutory or home rule charter city,
county, town, or school district may waive payments required
under this section by resolution of the governing body. A
resolution to waive part or all of a payment must not be adopted
unless the waiver is identified as an item of business in a
meeting notice for the meeting at which the waiver will be
discussed and voted on. The notice must be provided at least
ten days before the meeting.
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The payment requirement under
subdivision 2 does not apply if the state or political
subdivision acquiring the property has a written plan under
which the property will become taxable real property within five
years from the date of acquisition. The written plan must be
approved by the governing body of a political subdivision
acquiring the property or, if the state is acquiring the
property, by the commissioner of administration.
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Any
payments received by a political subdivision under this section
are not included in the calculation of its overall levy limit
imposed under chapter 275.
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section are a cost of acquisition of the property.
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This section is effective for property
acquired after January 1, 2006.
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