HF 1140

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

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:

Section 1.

new text begin [273.1387] TRANSITION PAYMENTS FOR PROPERTY
TAX BASE LOSS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this
section, the following terms have the meanings given them.
new text end

new text begin (b) "State" means a state agency, board, commission, or
authority.
new text end

new text begin (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.
new text end

new text begin (c) "Acquire" includes acquisition by purchase, gift, or
eminent domain.
new text end

new text begin Subd. 2. new text end

new text begin Payment required. new text end

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (2) in the first full year after acquisition, 80 percent of
the total amount that was due and payable in the year of
acquisition;
new text end

new text begin (3) in the second year after acquisition, 60 percent of the
total amount that was due and payable in the year of
acquisition;
new text end

new text begin (4) in the fourth year after acquisition, 40 percent of the
total amount that was due and payable in the year of
acquisition; and
new text end

new text begin (5) in the fifth year after acquisition, 20 percent of the
total amount that was due and payable in the year of acquisition.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 3. new text end

new text begin Waiver. new text end

new text begin 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.
new text end

new text begin Subd. 4. new text end

new text begin Exclusion. new text end

new text begin 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.
new text end

new text begin Subd. 5. new text end

new text begin Payments received are outside levy limits. new text end

new text begin 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.
new text end

new text begin Subd. 6. new text end

new text begin Cost of acquisition. new text end

new text begin Payments made under this
section are a cost of acquisition of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property
acquired after January 1, 2006.
new text end