HF 1257

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

A bill for an act
relating to taxation; property tax; advancing various
dates for the notices of proposed property taxes and
public hearings in the truth in taxation process;
amending Minnesota Statutes 2004, section 275.065,
subdivisions 1, 1a, 1c, 3, 6, 8.

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

Section 1.

Minnesota Statutes 2004, section 275.065,
subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any
law or charter to the contrary, on or before September deleted text begin 15 deleted text end new text begin 1 new text end ,
each taxing authority, other than a school district, shall adopt
a proposed budget and shall certify to the county auditor the
proposed or, in the case of a town, the final property tax levy
for taxes payable in the following year.

(b) On or before September deleted text begin 30 deleted text end new text begin 1 new text end , each school district shall
certify to the county auditor the proposed property tax levy for
taxes payable in the following year. The school district shall
certify the proposed levy as:

(1) a specific dollar amount by school district fund,
broken down between voter-approved and non-voter-approved levies
and between referendum market value and tax capacity levies; or

(2) the maximum levy limitation certified by the
commissioner of education according to section 126C.48,
subdivision 1.

(c) If the board of estimate and taxation or any similar
board that establishes maximum tax levies for taxing
jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter
to the county auditor by September deleted text begin 15 deleted text end new text begin 1 new text end , the city shall be
deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority"
includes all home rule and statutory cities, towns, counties,
school districts, and special taxing districts as defined in
section 275.066. Intermediate school districts that levy a tax
under chapter 124 or 136D, joint powers boards established under
sections 123A.44 to 123A.446, and Common School Districts No.
323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.065,
subdivision 1a, is amended to read:

Subd. 1a.

Overlapping jurisdictions.

In the case of a
taxing authority lying in two or more counties, the home county
auditor shall certify the proposed levy and the proposed local
tax rate to the other county auditor by September deleted text begin 20 deleted text end new text begin 1 new text end . The
home county auditor must estimate the levy or rate in preparing
the notices required in subdivision 3, if the other county has
not certified the appropriate information. If requested by the
home county auditor, the other county auditor must furnish an
estimate to the home county auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 275.065,
subdivision 1c, is amended to read:

Subd. 1c.

Levy; shared, merged, consolidated services.

If two or more taxing authorities are in the process of
negotiating an agreement for sharing, merging, or consolidating
services between those taxing authorities at the time the
proposed levy is to be certified under subdivision 1, each
taxing authority involved in the negotiation shall certify its
total proposed levy as provided in that subdivision, including a
notification to the county auditor of the specific service
involved in the agreement which is not yet finalized. The
affected taxing authorities may amend their proposed levies
under subdivision 1 until deleted text begin October deleted text end new text begin September new text end 10 for levy amounts
relating only to the specific service involved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2004, section 275.065,
subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The
county auditor shall prepare and the county treasurer shall
deliver after deleted text begin November 10 deleted text end new text begin October 15 new text end and on or before deleted text begin November
deleted text end new text begin October new text end 24 each year, by first class mail to each taxpayer at
the address listed on the county's current year's assessment
roll, a notice of proposed property taxes.

(b) The commissioner of revenue shall prescribe the form of
the notice.

(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to
collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax
amount will be its proposed tax. In the case of taxing
authorities required to hold a public meeting under subdivision
6, the notice must clearly state that each taxing authority,
including regional library districts established under section
134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing
districts and towns, will hold a public meeting to receive
public testimony on the proposed budget and proposed or final
property tax levy, or, in case of a school district, on the
current budget and proposed property tax levy. It must clearly
state the time and place of each taxing authority's meeting, a
telephone number for the taxing authority that taxpayers may
call if they have questions related to the notice, and an
address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under
section 273.11, and used for computing property taxes payable in
the following year and for taxes payable in the current year as
each appears in the records of the county assessor on deleted text begin November
deleted text end new text begin October new text end 1 of the current year; and, in the case of residential
property, whether the property is classified as homestead or
nonhomestead. The notice must clearly inform taxpayers of the
years to which the market values apply and that the values are
final values;

(2) the items listed below, shown separately by county,
city or town, and state general tax, net of the residential and
agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of
the special taxing districts, and as a total of all taxing
authorities:

(i) the actual tax for taxes payable in the current year;
and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for
a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final
tax shall also be its proposed tax unless the town changes its
levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision
9, that a referendum will be held in the school district at the
November general election, the county auditor must note next to
the school district's proposed amount that a referendum is
pending and that, if approved by the voters, the tax amount may
be higher than shown on the notice. In the case of the city of
Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed
separately from the remaining amount of the city's levy. In the
case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of
the city's levy. In the case of a parcel where tax increment or
the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide
tax must each be stated separately and not included in the sum
of the special taxing districts; and

(3) the increase or decrease between the total taxes
payable in the current year and the total proposed taxes,
expressed as a percentage.

For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax
amount.

(e) The notice must clearly state that the proposed or
final taxes do not include the following:

(1) special assessments;

(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda and
school district levy referenda;

(3) a levy limit increase approved by the voters by the
first Tuesday after the first Monday in November of the levy
year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;

(5) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and

(6) the contamination tax imposed on properties which
received market value reductions for contamination.

(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.

(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory
documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the
homestead classification in that assessment year, the assessor
shall reclassify the property to homestead for taxes payable in
the following year.

(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:

(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the
premises of the property.

The notice must be mailed or posted by the taxpayer by
deleted text begin November deleted text end new text begin October new text end 27 or within three days of receipt of the
notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or
manager of the premises to which the notice must be mailed in
order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and
6, "metropolitan special taxing districts" means the following
taxing districts in the seven-county metropolitan area that levy
a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667,
473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section
473.711.

For purposes of this section, any levies made by the
regional rail authorities in the county of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and
shall be discussed at that county's public hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2004, section 275.065,
subdivision 6, is amended to read:

Subd. 6.

Public hearing; adoption of budget and levy.

(a) For purposes of this section, the following terms shall have
the meanings given:

(1) "Initial hearing" means the first and primary hearing
held to discuss the taxing authority's proposed budget and
proposed property tax levy for taxes payable in the following
year, or, for school districts, the current budget and the
proposed property tax levy for taxes payable in the following
year.

(2) "Continuation hearing" means a hearing held to complete
the initial hearing, if the initial hearing is not completed on
its scheduled date.

(3) "Subsequent hearing" means the hearing held to adopt
the taxing authority's final property tax levy, and, in the case
of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.

(b) Between November deleted text begin 29 deleted text end new text begin 9 new text end and December deleted text begin 20 deleted text end new text begin 1 new text end , the governing
bodies of a city that has a population over 500, county,
metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold
an initial public hearing to discuss and seek public comment on
its final budget and property tax levy for taxes payable in the
following year, and the governing body of the school district
shall hold an initial public hearing to review its current
budget and proposed property tax levy for taxes payable in the
following year. The metropolitan special taxing districts shall
be required to hold only a single joint initial public hearing,
the location of which will be determined by the affected
metropolitan agencies. A city, county, metropolitan special
taxing district as defined in subdivision 3, paragraph (i),
regional library district established under section 134.201, or
school district is not required to hold a public hearing under
this subdivision unless its proposed property tax levy for taxes
payable in the following year, as certified under subdivision 1,
has increased over its final property tax levy for taxes payable
in the current year by a percentage that is greater than the
percentage increase in the implicit price deflator for
government consumption expenditures and gross investment for
state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the
12-month period ending March 31 of the current year.

(c) The initial hearing must be held after 5:00 p.m. if
scheduled on a day other than Saturday. No initial hearing may
be held on a Sunday.

(d) At the initial hearing under this subdivision, the
percentage increase in property taxes proposed by the taxing
authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the
discussion, the governing body shall hear comments regarding a
proposed increase and explain the reasons for the proposed
increase. The public shall be allowed to speak and to ask
questions. At the public hearing, the school district must also
provide and discuss information on the distribution of its
revenues by revenue source, and the distribution of its spending
by program area.

(e) If the initial hearing is not completed on its
scheduled date, the taxing authority must announce, prior to
adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be
held at least five business days but no more than 14 business
days after the initial hearing. A continuation hearing may not
be held later than December 20 except as provided in paragraphs
(f) and (g). A continuation hearing must be held after 5:00
p.m. if scheduled on a day other than Saturday. No continuation
hearing may be held on a Sunday.

(f) The governing body of a county shall hold its initial
hearing on the deleted text begin first deleted text end new text begin second new text end Thursday in deleted text begin December deleted text end new text begin November new text end each
year, and may hold additional initial hearings on other dates
before December deleted text begin 20 deleted text end new text begin 1 new text end if necessary for the convenience of county
residents. If the county needs a continuation of its hearing,
the continuation hearing shall be held on the third Tuesday
in deleted text begin December. If the third Tuesday in December falls on December
21, the county's continuation hearing shall be held on Monday,
December 20 deleted text end new text begin November new text end .

(g) The metropolitan special taxing districts shall hold a
joint initial public hearing on the first Wednesday of
December. A continuation hearing, if necessary, shall be held
on the second Wednesday of December even if that second
Wednesday is after December 10.

(h) The county auditor shall provide for the coordination
of initial and continuation hearing dates for all school
districts and cities within the county to prevent conflicts
under clauses (i) and (j).

(i) By August 10, each school board and the board of the
regional library district shall certify to the county auditors
of the counties in which the school district or regional library
district is located the dates on which it elects to hold its
initial hearing and any continuation hearing. If a school board
or regional library district does not certify these dates by
August 10, the auditor will assign the initial and continuation
hearing dates. The dates elected or assigned must not conflict
with the initial and continuation hearing dates of the county or
the metropolitan special taxing districts.

(j) By August 20, the county auditor shall notify the
clerks of the cities within the county of the dates on which
school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a
city certifies its proposed levy under subdivision 1 it shall
certify the dates on which it elects to hold its initial hearing
and any continuation hearing. Until September 15, the deleted text begin first and
deleted text end second deleted text begin Mondays deleted text end new text begin Monday new text end of December deleted text begin are deleted text end new text begin is new text end reserved for the use of
the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and
continuation hearing dates. The dates elected or assigned for
the initial hearing must not conflict with the initial hearing
dates of the county, metropolitan special taxing districts,
regional library districts, or school districts within which the
city is located. To the extent possible, the dates of the
city's continuation hearing should not conflict with the
continuation hearing dates of the county, metropolitan special
taxing districts, regional library districts, or school
districts within which the city is located. This paragraph does
not apply to cities of 500 population or less.

(k) The county initial hearing date and the city,
metropolitan special taxing district, regional library district,
and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation
hearing dates need not be stated on the notices.

(l) At a subsequent hearing, each county, school district,
city over 500 population, and metropolitan special taxing
district may amend its proposed property tax levy and must adopt
a final property tax levy. Each county, city over 500
population, and metropolitan special taxing district may also
amend its proposed budget and must adopt a final budget at the
subsequent hearing. The final property tax levy must be adopted
prior to adopting the final budget. A school district is not
required to adopt its final budget at the subsequent hearing.
The subsequent hearing of a taxing authority must be held on a
date subsequent to the date of the taxing authority's initial
public hearing. If a continuation hearing is held, the
subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation
hearing. The subsequent hearing may be held at a regularly
scheduled board or council meeting or at a special meeting
scheduled for the purposes of the subsequent hearing. The
subsequent hearing of a taxing authority does not have to be
coordinated by the county auditor to prevent a conflict with an
initial hearing, a continuation hearing, or a subsequent hearing
of any other taxing authority. All subsequent hearings must be
held prior to five working days after December 20 of the levy
year. The date, time, and place of the subsequent hearing must
be announced at the initial public hearing or at the
continuation hearing.

(m) The property tax levy certified under section 275.07 by
a city of any population, county, metropolitan special taxing
district, regional library district, or school district must not
exceed the proposed levy determined under subdivision 1, except
by an amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters
approved a referendum to increase taxes under section 123B.63,
subdivision 3, or 126C.17, subdivision 9, after the proposed
levy was certified;

(2) the amount of a city or county levy approved by the
voters after the proposed levy was certified;

(3) the amount of a levy to pay principal and interest on
bonds approved by the voters under section 475.58 after the
proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural
disaster occurring after the proposed levy was certified, if
that amount is approved by the commissioner of revenue under
subdivision 6a;

(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of education or the
commissioner of revenue after the proposed levy was certified;
and

(7) the amount required under section 126C.55.

(n) This subdivision does not apply to towns and special
taxing districts other than regional library districts and
metropolitan special taxing districts.

(o) Notwithstanding the requirements of this section, the
employer is required to meet and negotiate over employee
compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2004, section 275.065,
subdivision 8, is amended to read:

Subd. 8.

Hearing.

Notwithstanding any other provision of
law, Ramsey County, the city of St. Paul, and Independent School
District No. 625 are authorized to and shall hold their initial
public hearing jointly. The hearing must be held on the second
Tuesday of deleted text begin December deleted text end new text begin November new text end each year. The advertisement
required in subdivision 5a may be a joint advertisement. The
hearing is otherwise subject to the requirements of this section.

Ramsey County is authorized to hold an additional initial
hearing or hearings as provided under this section, provided
that any additional hearings must not conflict with the initial
or continuation hearing dates of the other taxing districts.
However, if Ramsey County elects not to hold such additional
initial hearing or hearings, the joint initial hearing required
by this subdivision must be held in a St. Paul location
convenient to residents of Ramsey County.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed
notices and hearings held in 2005 and thereafter, for property
taxes payable in 2006 and thereafter.
new text end