HF 1549

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing city aid reductions in 
  1.3             2003 and 2004. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [2003 CITY AID REDUCTIONS.] 
  1.6      Subdivision 1.  [DEFINITION.] For purposes of this section, 
  1.7   the 2003 "levy plus aid revenue base" for a city is the sum of 
  1.8   that city's property tax levy for taxes payable in 2003, as 
  1.9   reported to the commissioner of revenue under Minnesota 
  1.10  Statutes, section 275.74, plus the sum of the amounts the city 
  1.11  was certified to receive in 2003 as: 
  1.12     (1) local government aid under Minnesota Statutes, section 
  1.13  477A.013; 
  1.14     (2) existing low-income housing aid under Minnesota 
  1.15  Statutes, section 477A.06; 
  1.16     (3) new construction low-income housing aid under Minnesota 
  1.17  Statutes, section 477A.065; and 
  1.18     (4) taconite aids under Minnesota Statutes, sections 298.28 
  1.19  and 298.282, including any aid which was required to be placed 
  1.20  in a special fund for expenditure in the next succeeding year. 
  1.21     Subd. 2.  [COMPUTATION; APPLICATION.] The commissioner of 
  1.22  revenue shall compute an aid reduction amount for each city for 
  1.23  2003 as follows: 
  1.24     (1) for each city with a population over 1,000, an aid 
  2.1   reduction amount equal to 5.9 percent of the city's levy plus 
  2.2   aid revenue base for 2003; and 
  2.3      (2) for each city with a population of 1,000 or less, an 
  2.4   aid reduction amount equal to 2.5 percent of the city's levy 
  2.5   plus aid revenue base for 2003. 
  2.6      The reduction is limited to the sum of the city's payable 
  2.7   2003 distribution pursuant to Minnesota Statutes, section 
  2.8   477A.013, and related sections, and the city's payable 2003 
  2.9   reimbursement under Minnesota Statutes, section 273.1384. 
  2.10     The reduction is applied first to the city's reimbursement 
  2.11  pursuant to Minnesota Statutes, section 273.1384, and then if 
  2.12  necessary to the city's distribution pursuant to Minnesota 
  2.13  Statutes, section 477A.013. 
  2.14     [EFFECTIVE DATE.] This section is effective the day 
  2.15  following final enactment. 
  2.16     Sec. 2.  [2004 CITY AID REDUCTIONS; CONTINGENT PERMANENT 
  2.17  REDUCTION.] 
  2.18     Subdivision 1.  [DEFINITION.] For purposes of this section, 
  2.19  the 2004 "levy plus aid revenue base" for a city is the sum of 
  2.20  that city's property tax levy for taxes payable in 2003, as 
  2.21  reported to the commissioner of revenue under Minnesota 
  2.22  Statutes, section 275.74, plus the sum of the amounts the city 
  2.23  was certified to receive in 2003 as: 
  2.24     (1) local government aid under Minnesota Statutes, section 
  2.25  477A.013; 
  2.26     (2) existing low-income housing aid under Minnesota 
  2.27  Statutes, section 477A.06; 
  2.28     (3) new construction low-income housing aid under Minnesota 
  2.29  Statutes, section 477A.065; and 
  2.30     (4) taconite aids under Minnesota Statutes, sections 298.28 
  2.31  and 298.282, including any aid which was required to be placed 
  2.32  in a special fund for expenditure in the next succeeding year. 
  2.33     Subd. 2.  [COMPUTATION; APPLICATION.] The commissioner of 
  2.34  revenue shall compute an aid reduction amount for each city for 
  2.35  2004 equal to 5.9 percent of the city's levy plus aid revenue 
  2.36  base for 2004. 
  3.1      The reduction is limited to the city's payable 2004 
  3.2   distribution pursuant to Minnesota Statutes, section 477A.013, 
  3.3   and related sections, and the city's payable 2004 reimbursement 
  3.4   under Minnesota Statutes, section 273.1384. 
  3.5      The reduction is applied first to the city's reimbursement 
  3.6   pursuant to Minnesota Statutes, section 273.1384, and then if 
  3.7   necessary to the city's distribution pursuant to Minnesota 
  3.8   Statutes, section 477A.013. 
  3.9      [EFFECTIVE DATE.] This section is effective the day 
  3.10  following final enactment. 
  3.11     Sec. 3.  [STATEMENT OF PURPOSE.] 
  3.12     The city aid reductions in sections 1 and 2 are 
  3.13  nonpermanent reductions intended as a transition to a new local 
  3.14  government aid formula beginning with aids payable in 2005.