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Minnesota Legislature

Office of the Revisor of Statutes

HF 1610

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:53am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2009

Current Version - as introduced

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A bill for an act
relating to taxation; abolishing levy limits; amending Minnesota Statutes 2008,
sections 275.065, subdivision 3; 275.16; 275.62, subdivision 1; 473.167,
subdivision 3; 473.249, subdivision 1; 473.253, subdivision 1; repealing
Minnesota Statutes 2008, sections 275.70; 275.71; 275.72; 275.73; 275.74;
275.75.

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

Section 1.

Minnesota Statutes 2008, 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 November 10 and on or before November 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. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(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 November 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 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 Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county'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) deleted text begina 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;
deleted text end

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

deleted text begin (5)deleted text endnew text begin (4)new text end amounts necessary to pay tort judgments against the taxing authority that
become final after the date the proposed taxes are certified; and

deleted text begin (6)deleted text endnew text begin (5)new text end 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 November 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.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 275.16, is amended to read:


275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.

If any such municipality shall return to the county auditor a levy greater than
permitted by chapters 123A, 123B, 124D, 126C, and 136C, new text beginand new text endsections 275.124 to
275.16, deleted text beginand 275.70 to 275.74,deleted text end such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit; provided, if such levy shall include
any levy for the payment of bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the remainder of the levies shall
be reduced so that the total thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will permit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 275.62, subdivision 1, is amended to read:


Subdivision 1.

Report on taxes levied.

The commissioner of revenue shall establish
procedures for the annual reporting of local government levies. Each local governmental
unit shall submit a report to the commissioner by December 30 of the year in which the
tax is levied. The report shall include, but is not limited to, information on the amount of
the tax levied by the governmental unit for deleted text beginthe following purposes:deleted text endnew text begin all purposes.
new text end

deleted text begin (1) social services and related programs, which include taxes levied for the purposes
defined in Minnesota Statutes 1991 Supplement, section 275.50, subdivision 5, clauses
(a), (j), and (v);
deleted text end

deleted text begin (2) the amounts levied for each of the purposes listed in section 275.70, subdivision
5
; and
deleted text end

deleted text begin (3) other levies, which include the taxes levied for all purposes not included in
clause (1), (2), or (3).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2008, section 473.167, subdivision 3, is amended to read:


Subd. 3.

Tax.

The council may levy a tax on all taxable property in the metropolitan
area, as defined in section 473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
by the council, levied, and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and any other law and shall not
affect the amount or rate of taxes which may be levied by the council or any metropolitan
agency or local governmental unit. The amount of the levy shall be as determined and
certified by the council, provided that the tax levied by the Metropolitan Council for the
right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004
and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's
property tax levy limitation under this subdivision for the previous year, multiplied by
(2) one plus a percentage equal to the growth in the implicit price deflator as defined
in section deleted text begin275.70deleted text endnew text begin 275.025new text end, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 473.249, subdivision 1, is amended to read:


Subdivision 1.

Indexed limit.

(a) The Metropolitan Council may levy a tax on all
taxable property in the metropolitan area defined in section 473.121 to provide funds for
the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other
responsibilities of the council as provided by law. This tax for general purposes shall be
levied and collected in the manner provided by section 473.13.

(b) The property tax levied by the Metropolitan Council for general purposes shall
not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable
in 2005.

(c) The property tax levy limitation for general purposes for taxes payable in 2006
and subsequent years shall not exceed the product of: (1) the Metropolitan Council's
property tax levy limitation for general purposes for the previous year determined under
this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit
price deflator as defined in section deleted text begin275.70deleted text endnew text begin 275.025new text end, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2008, section 473.253, subdivision 1, is amended to read:


Subdivision 1.

Sources of funds.

The council shall credit to the livable communities
demonstration account the revenues provided in this subdivision. This tax shall be levied
and collected in the manner provided by section 473.13. The levy shall not exceed the
following amount for the years specified:

(1) for taxes payable in 2004 and 2005, $8,259,070; and

(2) for taxes payable in 2006 and subsequent years, the product of (i) the property
tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a
percentage equal to the growth in the implicit price deflator as defined in section deleted text begin275.70deleted text endnew text begin
275.025
new text end, subdivision 2
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 275.70; 275.71; 275.72; 275.73; 275.74; and
275.75,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009 and thereafter.
new text end