HF 1702

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for allocation among 
  1.3             governmental units of increases in the assessed 
  1.4             valuation of commercial-industrial property within the 
  1.5             taconite tax relief area; providing a formula for the 
  1.6             distribution of additional revenues to municipalities 
  1.7             within the taconite tax relief area; proposing coding 
  1.8             for new law as Minnesota Statutes, chapter 276A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [276A.01] [DEFINITIONS.] 
  1.11     Subdivision 1.  [APPLICABILITY.] In sections 1 to 9, the 
  1.12  terms defined in this section have the meanings given them 
  1.13  unless the context indicates otherwise. 
  1.14     Subd. 2.  [AREA.] "Area" means the territory included 
  1.15  within all tax relief areas defined in section 273.134. 
  1.16     Subd. 3.  [COMMERCIAL-INDUSTRIAL PROPERTY.] 
  1.17  "Commercial-industrial property" means the following categories 
  1.18  of property, as defined in section 273.13, excluding that 
  1.19  portion of the property (1) that may, by law, constitute the tax 
  1.20  base for a tax increment pledged pursuant to section 469.042 or 
  1.21  469.162, certification of which was requested prior to August 1, 
  1.22  1979, to the extent and while the tax increment is so pledged; 
  1.23  or (2) that is exempt from taxation under section 272.02:  
  1.24     (1) that portion of class 5b property consisting of tools, 
  1.25  implements, and machinery, except high voltage transmission 
  1.26  lines, construction of which began after July 1, 1974; and 
  1.27     (2) that portion of class 3 property which is either used 
  2.1   or zoned for use for any commercial or industrial purpose, and 
  2.2   hospitals treated as class 4a property, except for such property 
  2.3   which is, or, in the case of property under construction, will 
  2.4   when completed be used exclusively for residential occupancy and 
  2.5   the provision of services to residential occupants thereof.  
  2.6   Property must be considered as used exclusively for residential 
  2.7   occupancy only if each of not less than 80 percent of its 
  2.8   occupied residential units is, or, in the case of property under 
  2.9   construction, will when completed be occupied under an oral or 
  2.10  written agreement for occupancy over a continuous period of not 
  2.11  less than 30 days. 
  2.12     If the classification of property prescribed by section 
  2.13  273.13 is modified by legislative amendment, the references in 
  2.14  this subdivision are to the successor class or classes of 
  2.15  property, or portions thereof, that include the kinds of 
  2.16  property designated in this subdivision.  
  2.17     Subd. 4.  [RESIDENTIAL PROPERTY.] "Residential property" 
  2.18  means the following categories of property, as defined in 
  2.19  section 273.13, excluding that portion of the property that is 
  2.20  exempt from taxation pursuant to section 272.02: 
  2.21     (1) class 1a, 1b, and 2a property, limited to the homestead 
  2.22  dwelling, a garage, and the one acre of land on which the 
  2.23  dwelling is located; 
  2.24     (2) that portion of class 3 property used exclusively for 
  2.25  residential occupancy; and 
  2.26     (3) property valued and assessed under section 273.13, 
  2.27  subdivision 25, except for hospitals.  
  2.28     Subd. 5.  [GOVERNMENTAL UNIT.] "Governmental unit" means a 
  2.29  county, city, town, school district, or other taxing unit or 
  2.30  body which levies ad valorem taxes in whole or in part within 
  2.31  the area. 
  2.32     Subd. 6.  [ADMINISTRATIVE AUDITOR.] "Administrative auditor"
  2.33  means the person selected under section 2. 
  2.34     Subd. 7.  [POPULATION.] "Population" means the most recent 
  2.35  estimate of the population of a municipality made by the state 
  2.36  demographer and filed with the commissioner of revenue.  The 
  3.1   state demographer shall annually estimate the population of each 
  3.2   municipality and, in the case of a municipality which is located 
  3.3   partly within and partly without the area, the proportion of the 
  3.4   total which resides within the area, and shall file the 
  3.5   estimates with the commissioner of revenue. 
  3.6      Subd. 8.  [MUNICIPALITY.] "Municipality" means a city, 
  3.7   town, or township located in whole or part within the area.  If 
  3.8   a municipality is located partly within and partly without the 
  3.9   area, the references in sections 1 to 9 to property or any 
  3.10  portion thereof subject to taxation or taxing jurisdiction 
  3.11  within the municipality are to the property or portion thereof 
  3.12  that is located in that portion of the municipality within the 
  3.13  area, except that the fiscal capacity of the municipality must 
  3.14  be computed upon the basis of the valuation and population of 
  3.15  the entire municipality.  A municipality shall be excluded from 
  3.16  the area if its municipal comprehensive zoning and planning 
  3.17  policies conscientiously exclude most commercial-industrial 
  3.18  development, for reasons other than preserving an agricultural 
  3.19  use.  The metropolitan council and the commissioner of revenue 
  3.20  shall jointly make this determination annually and shall notify 
  3.21  those municipalities that are ineligible to participate in the 
  3.22  tax base sharing program provided in this chapter for the 
  3.23  following year. 
  3.24     Subd. 9.  [COUNTY.] "County" means each county in which a 
  3.25  governmental unit is located in whole or in part. 
  3.26     Subd. 10.  [MARKET VALUE.] "Market value" of real property 
  3.27  within a municipality means the assessor's estimated market 
  3.28  value of all real and personal property, including the value of 
  3.29  manufactured housing, within the municipality.  For purposes of 
  3.30  sections 1 to 9, the commissioner of revenue shall annually make 
  3.31  determinations and reports with respect to each municipality 
  3.32  which are comparable to those it makes for school districts 
  3.33  under section 124.2131, subdivision 1, in the same manner and at 
  3.34  the same times prescribed by the subdivision.  The commissioner 
  3.35  of revenue shall annually determine, for each municipality, 
  3.36  information comparable to that required by section 475.53, 
  4.1   subdivision 4, for school districts, as soon as practicable 
  4.2   after it becomes available.  The commissioner of revenue shall 
  4.3   then compute the equalized market value of property within each 
  4.4   municipality. 
  4.5      Subd. 11.  [VALUATION.] "Valuation" means the market value 
  4.6   of real and personal property within a municipality as defined 
  4.7   in subdivision 10. 
  4.8      Subd. 12.  [FISCAL CAPACITY.] "Fiscal capacity" of a 
  4.9   municipality means its valuation, determined as of January 2 of 
  4.10  any year, divided by its population, determined as of a date in 
  4.11  the same year. 
  4.12     Subd. 13.  [AVERAGE FISCAL CAPACITY.] "Average fiscal 
  4.13  capacity" of municipalities means the sum of the valuations of 
  4.14  all municipalities, determined as of January 2 of any year, 
  4.15  divided by the sum of their populations, determined as of a date 
  4.16  in the same year. 
  4.17     Subd. 14.  [LEVY.] "Levy" means the amount certified to the 
  4.18  county auditor pursuant to chapter 275, less all reductions made 
  4.19  by the auditor pursuant to any provision of law in determining 
  4.20  the amount to be spread against taxable property. 
  4.21     Subd. 15.  [NET TAX CAPACITY.] "Net tax capacity" means the 
  4.22  market value of real and personal property multiplied by its net 
  4.23  tax capacity rates in section 273.13. 
  4.24     Subd. 16.  [LOCAL TAX RATE.] "Local tax rate" means a 
  4.25  governmental unit's levy, including any portion levied against 
  4.26  market value under section 124A.03, subdivision 2a, divided by 
  4.27  its net tax capacity. 
  4.28     Sec. 2.  [276A.02] [ADMINISTRATIVE AUDITOR.] 
  4.29     Subdivision 1.  [ELECTION.] On or before July 1, 1997, and 
  4.30  each subsequent odd-numbered year, the auditors of the counties 
  4.31  within the area shall meet at the call of the auditor of St. 
  4.32  Louis county and elect from among themselves one auditor to 
  4.33  serve as administrative auditor for a period of two years and 
  4.34  until a successor is elected.  If a majority is unable to agree 
  4.35  upon a person to serve as administrative auditor, the 
  4.36  commissioner of finance shall appoint one from among the 
  5.1   auditors of the counties in the area.  If the administrative 
  5.2   auditor ceases to serve as a county auditor within the area 
  5.3   during the term for which he was elected or appointed, a 
  5.4   successor must be chosen in the manner provided for the original 
  5.5   selection to serve for the unexpired term.  
  5.6      Subd. 2.  [STAFF; EXPENSES.] The administrative auditor 
  5.7   shall utilize the staff and facilities of the auditor's office 
  5.8   of the county the administrative auditor serves to perform the 
  5.9   functions imposed upon the administrative auditor by sections 1 
  5.10  to 9.  That county shall be reimbursed for the marginal expenses 
  5.11  incurred by its county auditor and staff under this section by 
  5.12  contributions from each other county in the area in an amount 
  5.13  which bears the same proportion to the total expenses that the 
  5.14  population of the other county bears to the total population of 
  5.15  the area.  By February 1 each year, the administrative auditor 
  5.16  shall certify the amounts of total expense for the preceding 
  5.17  calendar year, and the share of each county, to the treasurer of 
  5.18  each other county.  Payment must be made by the treasurer of 
  5.19  each other county to the treasurer of the county incurring 
  5.20  expense by the succeeding March 1. 
  5.21     Sec. 3.  [276A.03] [NET TAX CAPACITY.] 
  5.22     By August 5 of 1995 and each subsequent year, the assessors 
  5.23  within each county in the area shall determine and certify to 
  5.24  the county auditor the net tax capacity in that year of 
  5.25  commercial-industrial property subject to taxation within each 
  5.26  municipality in the county, determined without regard to section 
  5.27  469.177, subdivision 3. 
  5.28     Sec. 4.  [276A.04] [INCREASE IN NET TAX CAPACITY.] 
  5.29     By July 15 of 1997 and each subsequent year, the auditor of 
  5.30  each county in the area shall determine the amount, if any, by 
  5.31  which the net tax capacity determined in the preceding year 
  5.32  pursuant to section 3, of commercial-industrial property subject 
  5.33  to taxation within each municipality in the county exceeds the 
  5.34  assessed valuation in 1971 of commercial-industrial property 
  5.35  subject to taxation within that municipality.  If a municipality 
  5.36  is located in two or more counties within the area, the auditors 
  6.1   of those counties shall certify the data required by section 3 
  6.2   to the county auditor responsible for allocating the levies of 
  6.3   that municipality between or among the affected counties.  That 
  6.4   county auditor shall determine the amount of the net excess, if 
  6.5   any, for the municipality under this section, and certify that 
  6.6   amount under section 5.  The increase in total net tax capacity 
  6.7   determined by this section must be reduced by the amount of any 
  6.8   decreases in the net tax capacity of commercial-industrial 
  6.9   property resulting from any court decisions, court-related 
  6.10  stipulation agreements, or abatements for a prior year, and only 
  6.11  in the amount of such decreases made during the 12-month period 
  6.12  ending on May 1 of the current assessment year, where the 
  6.13  decreases, if originally reflected in the determination of a 
  6.14  prior year's net tax capacity under section 3, would have 
  6.15  resulted in a smaller contribution from the municipality in that 
  6.16  year.  An adjustment for the decreases shall be made only if the 
  6.17  municipality made a contribution in a prior year based on the 
  6.18  higher net tax capacity of the commercial-industrial property. 
  6.19     Sec. 5.  [276A.05] [COMPUTATION OF AREAWIDE TAX BASE.] 
  6.20     Subdivision 1.  [AREAWIDE NET TAX CAPACITY.] Each county 
  6.21  auditor shall certify the determinations under sections 3 and 4 
  6.22  to the administrative auditor on or before August 1 of each 
  6.23  year.  The administrative auditor shall determine an amount 
  6.24  equal to 40 percent of the sum of the amounts certified pursuant 
  6.25  to section 4.  The resulting amount shall be known as the 
  6.26  "areawide net tax capacity for ........(year)."  
  6.27     Subd. 2.  [POPULATION AND FISCAL CAPACITY 
  6.28  CERTIFICATIONS.] The commissioner of revenue shall certify to 
  6.29  the administrative auditor, on or before August 10 of each year, 
  6.30  the population of each municipality for the preceding year, the 
  6.31  proportion of that population which resides within the area, the 
  6.32  average fiscal capacity of municipalities for the preceding 
  6.33  year, and the fiscal capacity of each municipality for the 
  6.34  preceding year. 
  6.35     Subd. 3.  [AREAWIDE TAX BASE DISTRIBUTION INDEX.] The 
  6.36  administrative auditor shall determine, for each municipality, 
  7.1   the product of (1) its population, (2) the proportion which the 
  7.2   average fiscal capacity of municipalities for the preceding year 
  7.3   bears to the fiscal capacity of that municipality for the 
  7.4   preceding year.  The product shall be the areawide tax base 
  7.5   distribution index for that municipality.  If a municipality is 
  7.6   located partly within and partly without the area, its index is 
  7.7   that which is otherwise determined hereunder, multiplied by the 
  7.8   proportion which its population residing within the area bears 
  7.9   to its total population as of the preceding year. 
  7.10     Subd. 4.  [DISTRIBUTION NET TAX CAPACITY.] The 
  7.11  administrative auditor shall determine the proportion which the 
  7.12  index of each municipality bears to the sum of the indices of 
  7.13  all municipalities and shall then multiply this proportion in 
  7.14  the case of each municipality, by the areawide net tax capacity, 
  7.15  provided that if the distribution net tax capacity for a 
  7.16  municipality is less than 95 percent of the municipality's 
  7.17  previous year distribution net tax capacity, and more than ten 
  7.18  percent of the municipality's fiscal capacity consists of 
  7.19  manufactured home property, the municipality's distribution net 
  7.20  tax capacity will be increased to 95 percent of the previous 
  7.21  year net tax capacity and the distribution net tax capacity of 
  7.22  other municipalities in the area will be proportionately reduced.
  7.23     Subd. 5.  [CERTIFICATION.] The product of the procedure 
  7.24  prescribed by subdivision 4 shall be known as the "areawide net 
  7.25  tax capacity for ......(year) attributable to 
  7.26  ..........(municipality)."  The administrative auditor shall 
  7.27  certify the product to the auditor of the county in which the 
  7.28  municipality is located on or before August 15. 
  7.29     Sec. 6.  [276A.06] [NET TAX CAPACITY.] 
  7.30     Subdivision 1.  [GENERALLY.] The county auditor shall 
  7.31  determine the net tax capacity of each governmental unit within 
  7.32  the county in the manner prescribed by this section. 
  7.33     Subd. 2.  [DEFINITION.] The net tax capacity of a 
  7.34  governmental unit is its net tax capacity as determined in 
  7.35  accordance with other provisions of law including section 
  7.36  469.177, subdivision 3, subject to the following adjustments:  
  8.1      (a) There must be subtracted from its net tax capacity, in 
  8.2   each municipality in which the governmental unit exercises ad 
  8.3   valorem taxing jurisdiction, an amount that bears the same 
  8.4   proportion to 40 percent of the amount certified in that year 
  8.5   pursuant to sections 4 and 5 for the municipality as the total 
  8.6   preceding year's net tax capacity of commercial-industrial 
  8.7   property which is subject to the taxing jurisdiction of the 
  8.8   governmental unit within the municipality, determined without 
  8.9   regard to section 469.177, subdivision 3, bears to the total 
  8.10  preceding year's net tax capacity of commercial-industrial 
  8.11  property within the municipality, determined without regard to 
  8.12  section 469.177, subdivision 3.  
  8.13     (b) There must be added to its net tax capacity, in each 
  8.14  municipality in which the governmental unit exercises ad valorem 
  8.15  taxing jurisdiction, an amount which bears the same proportion 
  8.16  to the areawide net tax capacity for the year attributable to 
  8.17  that municipality as the total preceding year's net tax capacity 
  8.18  of residential property which is subject to the taxing 
  8.19  jurisdiction of the governmental unit within the municipality 
  8.20  bears to the total preceding year's net tax capacity of 
  8.21  residential property of the municipality.  
  8.22     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
  8.23  apportion the levy of each governmental unit in the county in 
  8.24  the manner prescribed by this subdivision.  The auditor shall: 
  8.25     (a) by August 20 of 1997 and each subsequent year, 
  8.26  determine the areawide portion of the levy for each governmental 
  8.27  unit by multiplying the local tax rate of the governmental unit 
  8.28  for the preceding levy year times the distribution value set 
  8.29  forth in subdivision 2, clause (b); and 
  8.30     (b) by September 20 of 1997 and each subsequent year, 
  8.31  determine the local portion of the current year's levy by 
  8.32  subtracting the resulting amount from clause (a) from the 
  8.33  governmental unit's current year's levy. 
  8.34     Subd. 4.  [TAX RATE NONCOMMERCIAL PROPERTY.] In 1997 and 
  8.35  subsequent years, the county auditor shall divide that portion 
  8.36  of the levy determined pursuant to subdivision 3, clause (b), by 
  9.1   the net tax capacity of the governmental unit, taking section 
  9.2   469.177, subdivision 3, into account, less that portion 
  9.3   subtracted from net tax capacity pursuant to subdivision 2, 
  9.4   clause (a).  The resulting rate applies to all taxable property 
  9.5   except commercial-industrial property, which must be taxed in 
  9.6   accordance with subdivision 7. 
  9.7      Subd. 5.  [AREAWIDE TAX RATE.] On or before August 25 of 
  9.8   1997 and each subsequent year, the county auditor shall certify 
  9.9   to the administrative auditor that portion of the levy of each 
  9.10  governmental unit determined pursuant to subdivision 3, clause 
  9.11  (a).  The administrative auditor shall then determine the 
  9.12  areawide tax rate sufficient to yield an amount equal to the sum 
  9.13  of the levies from the areawide net tax capacity.  On or before 
  9.14  September 1, the administrative auditor shall certify the 
  9.15  areawide tax rate to each of the county auditors. 
  9.16     Subd. 6.  [GOVERNMENTAL UNIT IN TWO OR MORE COUNTIES.] If a 
  9.17  governmental unit is located in two or more counties, the 
  9.18  computations and certifications required by subdivisions 3 to 5 
  9.19  with respect to it must be made by the county auditor who is 
  9.20  responsible for allocating its levies between or among the 
  9.21  affected counties. 
  9.22     Subd. 7.  [APPLICATION TO COMMERCIAL-INDUSTRIAL 
  9.23  PROPERTY.] The areawide tax rate determined in accordance with 
  9.24  subdivision 5 applies to each commercial-industrial property 
  9.25  subject to taxation within a municipality, including property 
  9.26  located within any tax increment financing district, as defined 
  9.27  in section 469.174, subdivision 9, to that portion of the net 
  9.28  tax capacity of the item which bears the same proportion to its 
  9.29  total net tax capacity as 40 percent of the amount determined 
  9.30  pursuant to sections 4 and 5 is to the amount determined 
  9.31  pursuant to section 3.  The rate of taxation determined in 
  9.32  accordance with subdivision 4 applies in the taxation of the 
  9.33  remainder of the net tax capacity of the item. 
  9.34     Subd. 8.  [CERTIFICATION OF VALUES; PAYMENT.] The 
  9.35  administrative auditor shall determine for each county the 
  9.36  difference between the total levy on distribution value pursuant 
 10.1   to subdivision 3, clause (a), within the county and the total 
 10.2   tax on contribution value pursuant to subdivision 7, within the 
 10.3   county.  On or before May 16 of each year, the administrative 
 10.4   auditor shall certify the differences so determined to each 
 10.5   county auditor.  In addition, the administrative auditor shall 
 10.6   certify to those county auditors for whose county the total tax 
 10.7   on contribution value exceeds the total levy on distribution 
 10.8   value the settlement the county is to make to the other counties 
 10.9   of the excess of the total tax on contribution value over the 
 10.10  total levy on distribution value in the county.  On or before 
 10.11  June 15 and November 15 of each year, each county treasurer in a 
 10.12  county having a total tax on contribution value in excess of the 
 10.13  total levy on distribution value shall pay one-half of the 
 10.14  excess to the other counties in accordance with the 
 10.15  administrative auditor's certification. 
 10.16     Subd. 9.  [FISCAL DISPARITIES ADJUSTMENT.] In any year in 
 10.17  which the highest class rate for class 3a property changes from 
 10.18  the rate in the previous year, the following adjustments shall 
 10.19  be made to the procedures described in sections 4 to 6: 
 10.20     (1) An initial contribution tax capacity shall be 
 10.21  determined for each municipality based on the previous year's 
 10.22  class rates. 
 10.23     (2) Each jurisdiction's distribution tax capacity shall be 
 10.24  determined based upon the areawide tax base determined by 
 10.25  summing the tax capacities computed under clause (1) for all 
 10.26  municipalities and apportioning the resulting sum pursuant to 
 10.27  section 5, subdivision 5. 
 10.28     (3) Each jurisdiction's distribution levy shall be 
 10.29  determined by applying the procedures described in subdivision 
 10.30  3, clause (a), to the distribution tax capacity determined 
 10.31  pursuant to clause (2). 
 10.32     (4) Each municipality's final contribution tax capacity 
 10.33  shall be determined equal to its initial contribution tax 
 10.34  capacity multiplied by the ratio of the new highest class rate 
 10.35  for class 3a property to the previous year's highest class rate 
 10.36  for class 3a property. 
 11.1      (5) For the purposes of computing education aids and any 
 11.2   other state aids requiring the addition of the fiscal 
 11.3   disparities distribution tax capacity to the local tax capacity, 
 11.4   each municipality's final distribution tax capacity shall be 
 11.5   determined equal to its initial distribution tax capacity 
 11.6   multiplied by the ratio of the new highest class rate for class 
 11.7   3a property to the previous year's highest class rate for class 
 11.8   3a property. 
 11.9      (6) The areawide tax rate shall be determined by dividing 
 11.10  the sum of the amounts determined in clause (3) by the sum of 
 11.11  the values determined in clause (4). 
 11.12     (7) The final contribution tax capacity determined in 
 11.13  clause (4) shall also be used to determined the portion of each 
 11.14  commercial-industrial property's tax capacity subject to the 
 11.15  areawide tax rate pursuant to subdivision 7. 
 11.16     Subd. 10.  [ADJUSTMENT OF VALUES FOR OTHER COMPUTATIONS.] 
 11.17  For the purpose of computing the amount or rate of any salary, 
 11.18  aid, tax, or debt authorized, required, or limited by any 
 11.19  provision of any law or charter, where the authorization, 
 11.20  requirement, or limitation is related to any value or valuation 
 11.21  of taxable property within any governmental unit, the value or 
 11.22  net tax capacity must be adjusted to reflect the adjustments to 
 11.23  net tax capacity effected by subdivision 2, provided that:  (1) 
 11.24  in determining the market value of commercial-industrial 
 11.25  property or any class thereof within a governmental unit for any 
 11.26  purpose other than section 5, (a) the reduction required by this 
 11.27  subdivision is that amount which bears the same proportion to 
 11.28  the amount subtracted from the governmental unit's net tax 
 11.29  capacity pursuant to subdivision 2, clause (a), as the market 
 11.30  value of commercial-industrial property, or such class thereof, 
 11.31  located within the governmental unit bears to the assessed 
 11.32  valuation of commercial-industrial property, or such class 
 11.33  thereof, located within the governmental unit, and (b) the 
 11.34  increase required by this subdivision is that amount which bears 
 11.35  the same proportion to the amount added to the governmental 
 11.36  unit's net tax capacity pursuant to subdivision 2, clause (b), 
 12.1   as the market value of commercial-industrial property, or such 
 12.2   class thereof, located within the governmental unit bears to the 
 12.3   net tax capacity of commercial-industrial property, or such 
 12.4   class thereof, located within the governmental unit; and (2) in 
 12.5   determining the market value of real property within a 
 12.6   municipality for purposes of section 5, the adjustment 
 12.7   prescribed by clause (1)(a) must be made and that prescribed by 
 12.8   clause (1)(b) must not be made. 
 12.9      Sec. 7.  [276A.07] [ADJUSTMENTS IN DATES.] 
 12.10     If, because of the enactment of any other law, the date by 
 12.11  which the commissioner of revenue is required to certify to the 
 12.12  county auditors the records of proceedings affecting the 
 12.13  assessed valuation of property is advanced to a date earlier 
 12.14  than June 30, the dates specified in sections 3 to 5 and 8 may 
 12.15  be modified in the years to which the other law applies in the 
 12.16  manner and to the extent prescribed by the administrative 
 12.17  auditor.  
 12.18     Sec. 8.  [276A.08] [REASSESSMENTS AND OMITTED PROPERTY.] 
 12.19     Subdivision 1.  [REASSESSMENT ORDERS.] If the commissioner 
 12.20  of revenue orders a reassessment of all or any portion of the 
 12.21  property in a municipality other than in the form of a 
 12.22  mathematically prescribed adjustment of valuation, or if omitted 
 12.23  property is placed upon the tax rolls, and the reassessment has 
 12.24  not been completed or the property placed upon the rolls by 
 12.25  November 15, the net tax capacity of the affected property must, 
 12.26  for purposes of sections 2 to 6, be determined from the 
 12.27  abstracts filed by the county auditor with the commissioner of 
 12.28  revenue.  
 12.29     Subd. 2.  [ADJUSTMENT OF VALUE.] If the reassessment, when 
 12.30  completed and incorporated in the commissioner's certification 
 12.31  of the net tax capacity of the municipality, or the listing of 
 12.32  omitted property, when placed on the rolls, results in an 
 12.33  increase in the net tax capacity of commercial-industrial 
 12.34  property in the municipality which differs from that used, 
 12.35  pursuant to subdivision 1, for purposes of sections 2 to 6, the 
 12.36  increase in the net tax capacity of commercial-industrial 
 13.1   property in that municipality in the succeeding year, as 
 13.2   otherwise computed under section 4, must be adjusted in a like 
 13.3   amount, by an increase if the reassessment or listing discloses 
 13.4   a larger increase than was used for purposes of sections 2 to 6, 
 13.5   or by a decrease if the reassessment or listing discloses a 
 13.6   smaller increase than was used for those purposes, provided that 
 13.7   no adjustment shall reduce the amount determined under section 4 
 13.8   to an amount less than zero.  
 13.9      Subd. 3.  [EXCEPTIONS.] Subdivisions 1 and 2 do not apply 
 13.10  to the determination of the tax rate under section 6, 
 13.11  subdivision 4, or to the determination of the net tax capacity 
 13.12  of commercial-industrial property and each item thereof for 
 13.13  purposes of section 6, subdivision 7.  
 13.14     Sec. 9.  [276A.09] [CHANGE IN STATUS OF MUNICIPALITY.] 
 13.15     If a municipality is dissolved, is consolidated with all or 
 13.16  part of another municipality, annexes territory, has a portion 
 13.17  of its territory detached from it, or is newly incorporated, the 
 13.18  secretary of state shall immediately certify that fact to the 
 13.19  commissioner of revenue.  The secretary of state shall also 
 13.20  certify to the commissioner of revenue the current population of 
 13.21  the new, enlarged, or successor municipality, if determined by 
 13.22  the Minnesota municipal board incident to consolidation, 
 13.23  annexation, or incorporation proceedings.  The population so 
 13.24  certified shall govern for purposes of sections 1 to 9 until the 
 13.25  state demographer files the first population estimate as of a 
 13.26  later date with the commissioner of revenue.  If an annexation 
 13.27  of unincorporated land occurs without proceedings before the 
 13.28  Minnesota municipal board, the population of the annexing 
 13.29  municipality as previously determined shall continue to govern 
 13.30  for purposes of sections 1 to 9 until the state demographer 
 13.31  files the first population estimate as of a later date with the 
 13.32  commissioner of revenue. 
 13.33     Sec. 10.  [EFFECTIVE DATE.] 
 13.34     Sections 1 to 9 are effective July 1, 1997, except as 
 13.35  provided in section 3.