HF 1241

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:46am

A bill for an act
relating to taxation; providing utility transition aid to counties; amending
Minnesota Statutes 2008, section 477A.16, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2008, section 477A.16, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

(a) When used in this section, the following terms have
the meanings indicated in this subdivision.

(b) "Local unit" means a home rule charter or statutory city, deleted text begin or deleted text end a town new text begin , or a county new text end .

(c) "Old rule utility net tax capacity" means the net tax capacity of all public utility
property within the local unit's taxing jurisdiction for assessment year 2007, calculated as
if the property were valued under valuation rules in effect prior to assessment year 2007.

(d) "New rule utility net tax capacity" means the net tax capacity of all public utility
property within the local unit's taxing jurisdiction for assessment year 2007, calculated as
if the property were valued under valuation rules in effect for assessment year 2007, but
without the phase-in provisions of Minnesota Rules, part 8100.0800.

(e) "Modified net tax capacity" means the local unit's net tax capacity for taxes
payable in 2008, modified by substituting the old rule utility net tax capacity for the actual
net tax capacity of utility property. Modified net tax capacity must be determined by the
commissioner of revenue based on information and data available to the commissioner
as of July 1, 2008.

(f) "Net tax capacity differential" means the positive difference, if any, by which the
local unit's old rule utility net tax capacity exceeds its new rule utility net tax capacity.

(g) "Current year net tax capacity differential" means the positive difference, if any,
by which the local unit's old rule utility net tax capacity exceeds its total tax capacity of
utility property for taxes payable in the current year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 477A.16, subdivision 2, is amended to read:

Subd. 2.

Aid eligibility; payment.

(a) If the net tax capacity differential of deleted text begin the deleted text end new text begin a new text end
local unit new text begin that is a home rule charter or statutory city new text end exceeds four percent of its modified
net tax capacity, new text begin or, for a local unit that is a county, exceeds 1.9 percent of its modified
net tax capacity, new text end the local unit is eligible for transition aid computed under paragraphs
(b) and (c).

(b) For aids payable in 2009, transition aid under this section for an eligible local
unit equals 50 percent of (1) the net tax capacity differential, times (2) the jurisdiction's
tax rate for taxes payable in 2008.

(c) For aids payable in 2010 and thereafter, transition aid under this section for
an eligible local unit equals (1) the current year net tax capacity differential for taxes
payable in the year preceding the aid distribution year, times (2) the jurisdiction's tax rate
for taxes payable in 2008.

(d) The commissioner of revenue shall compute the amount of transition aid payable
to each local unit under this section. On or before August 1 of each year, the commissioner
shall certify the amount of transition aid computed for aids payable in the following year
for each recipient local unit. The commissioner shall pay transition aid to local units
annually at the times provided in section 477A.015.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2010 and
thereafter.
new text end