HF 1784

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

  1.1                          A bill for an act
  1.2             relating to taxes; property tax; requiring payments to 
  1.3             compensate taxing jurisdictions for lost property tax 
  1.4             base when real property is acquired by a governmental 
  1.5             entity and becomes tax exempt; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 273. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [273.1387] [TRANSITION PAYMENTS FOR PROPERTY 
  1.9   TAX BASE LOSS.] 
  1.10     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  1.11  section, the following terms have the meanings given them. 
  1.12     (b) "State" means a state agency, board, commission, or 
  1.13  authority. 
  1.14     (c) "Political subdivision" means the metropolitan council 
  1.15  or a metropolitan agency, county, statutory or home rule charter 
  1.16  city, township, school district, or any other political 
  1.17  subdivision with the authority to acquire real property. 
  1.18     (c) "Acquire" includes acquisition by purchase, gift, or 
  1.19  eminent domain. 
  1.20     Subd. 2.  [PAYMENT REQUIRED.] (a) When the state or a 
  1.21  political subdivision acquires taxable real property and that 
  1.22  property becomes tax exempt upon acquisition, the state or 
  1.23  political subdivision must pay to all other taxing jurisdictions 
  1.24  levying property taxes on the property in the year in which it 
  1.25  is acquired an amount as follows: 
  1.26     (1) in the year in which the property is acquired, 100 
  2.1   percent of the taxes payable for that year on the acquired 
  2.2   property, less any amount of property taxes already collected 
  2.3   for that year on the property before the acquisition; 
  2.4      (2) in the first full year after acquisition, 80 percent of 
  2.5   the total amount that was due and payable in the year of 
  2.6   acquisition; 
  2.7      (3) in the second year after acquisition, 60 percent of the 
  2.8   total amount that was due and payable in the year of 
  2.9   acquisition; 
  2.10     (4) in the fourth year after acquisition, 40 percent of the 
  2.11  total amount that was due and payable in the year of 
  2.12  acquisition; and 
  2.13     (5) in the fifth year after acquisition, 20 percent of the 
  2.14  total amount that was due and payable in the year of acquisition.
  2.15     (b) As an alternative to the payments required as provided 
  2.16  in paragraph (a), clauses (2) to (5), the state or political 
  2.17  subdivision may pay to any taxing jurisdiction a single payment 
  2.18  equal to 150 percent of the total taxes payable on the acquired 
  2.19  property in the year of acquisition. 
  2.20     (c) Payment under paragraph (a), clause (1), or under 
  2.21  paragraph (b) must be made at the time of acquisition and paid 
  2.22  directly to each taxing jurisdiction.  Payments under paragraph 
  2.23  (a), clauses (2) to (5), must be made annually on or before May 
  2.24  15 of each year immediately following the year of acquisition.  
  2.25     Subd. 3.  [WAIVER.] A statutory or home rule charter city, 
  2.26  county, town, or school district may waive payments required 
  2.27  under this section by resolution of the governing body.  A 
  2.28  resolution to waive part or all of a payment must not be adopted 
  2.29  unless the waiver is identified as an item of business in a 
  2.30  meeting notice for the meeting at which the waiver will be 
  2.31  discussed and voted on.  The notice must be provided at least 
  2.32  ten days before the meeting. 
  2.33     Subd. 4.  [EXCLUSION.] The payment requirement under 
  2.34  subdivision 2 does not apply if the state or political 
  2.35  subdivision acquiring the property has a written plan under 
  2.36  which the property will become taxable real property within five 
  3.1   years from the date of acquisition.  The written plan must be 
  3.2   approved by the governing body of a political subdivision 
  3.3   acquiring the property or, if the state is acquiring the 
  3.4   property, by the commissioner of administration. 
  3.5      Subd. 5.  [PAYMENTS RECEIVED ARE OUTSIDE LEVY LIMITS.] Any 
  3.6   payments received by a political subdivision under this section 
  3.7   are not included in the calculation of its overall levy limit 
  3.8   imposed under chapter 275. 
  3.9      Subd. 6.  [COST OF ACQUISITION.] Payments made under this 
  3.10  section are a cost of acquisition of the property. 
  3.11     [EFFECTIVE DATE.] This section is effective for property 
  3.12  acquired after January 1, 2005.