HF 1907

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education finance; making the general 
  1.3             education levy a state-determined, state-collected 
  1.4             levy; amending Minnesota Statutes 2000, sections 
  1.5             126C.13, subdivision 4; 273.1382, subdivisions 1, 2; 
  1.6             275.02; 275.065, subdivision 1; repealing Minnesota 
  1.7             Statutes 2000, sections 126C.13, subdivisions 1, 2, 3; 
  1.8             273.1382, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 126C.13, 
  1.11  subdivision 4, is amended to read: 
  1.12     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
  1.13  education aid is the sum of the following amounts:  
  1.14     (1) the product of (i) the difference between the general 
  1.15  education revenue, excluding transition revenue and supplemental 
  1.16  revenue, and the general education levy, times (ii) the ratio of 
  1.17  the actual amount levied to the permitted levy; 
  1.18     (2) transition aid according to section 126C.10, 
  1.19  subdivision 22; 
  1.20     (3) supplemental aid according to section 127A.49; 
  1.21     (4) shared time aid according to section 126C.01, 
  1.22  subdivision 7; and 
  1.23     (5) referendum aid according to section 126C.17. 
  1.24     [EFFECTIVE DATE.] This section is effective for taxes 
  1.25  payable in 2002 and thereafter.  
  1.26     Sec. 2.  Minnesota Statutes 2000, section 273.1382, 
  1.27  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  [EDUCATION CREDIT TAX RATE.] Each year, the 
  2.2   respective county auditors shall determine the initial tax rate 
  2.3   for each school district for the general education levy 
  2.4   certified under section 126C.13, subdivision 2 or 3.  That rate 
  2.5   plus the school district's education homestead credit tax rate 
  2.6   adjustment under section 275.08, subdivision 1e, shall be The 
  2.7   general education credit tax rate for the district is the rate 
  2.8   certified under section 275.02, subdivision 1.  
  2.9      [EFFECTIVE DATE.] This section is effective for taxes 
  2.10  payable in 2002 and subsequent years.  
  2.11     Sec. 3.  Minnesota Statutes 2000, section 273.1382, 
  2.12  subdivision 2, is amended to read: 
  2.13     Subd. 2.  [CREDIT REIMBURSEMENTS VERIFICATION.] (a) The 
  2.14  commissioner of revenue shall determine verify the tax 
  2.15  reductions allowed under this section for each taxes payable 
  2.16  year, and for each school district based upon a review of the 
  2.17  abstracts of tax lists submitted by the county auditors under 
  2.18  section 275.29, and from any other information which the 
  2.19  commissioner deems relevant.  The commissioner of revenue shall 
  2.20  generally compute the tax reductions at the unique taxing 
  2.21  jurisdiction level, however the commissioner may compute the tax 
  2.22  reductions at a higher geographic level if that would have a 
  2.23  negligible impact, or if changes in the composition of unique 
  2.24  taxing jurisdictions do not permit computation at the unique 
  2.25  taxing jurisdiction level.  The commissioner's determinations 
  2.26  under this paragraph are not rules. 
  2.27     (b) The commissioner of revenue shall certify the total of 
  2.28  the tax reductions granted under this section for each taxes 
  2.29  payable year within each school district to the commissioner of 
  2.30  children, families, and learning after July 1 and on or before 
  2.31  August 1 of the taxes payable year.  The commissioner of 
  2.32  children, families, and learning shall reimburse each affected 
  2.33  school district for the amount of the property tax reductions 
  2.34  allowed under this section as provided in section 273.1392.  The 
  2.35  commissioner of children, families, and learning shall treat the 
  2.36  reimbursement payments as entitlements for the same state fiscal 
  3.1   year as certified, including with each district's initial 
  3.2   payment all amounts that would have been paid up to that date, 
  3.3   computed as if 90 percent of the annual reimbursement amount for 
  3.4   the district were being paid one-twelfth in each month of the 
  3.5   fiscal year.  
  3.6      [EFFECTIVE DATE.] This section is effective for taxes 
  3.7   payable in 2002 and subsequent years.  
  3.8      Sec. 4.  Minnesota Statutes 2000, section 275.02, is 
  3.9   amended to read: 
  3.10     275.02 [STATE LEVY, EXCEPTIONS; CERTIFICATION OF TAX RATE.] 
  3.11     Subdivision 1.  [GENERAL EDUCATION LEVY.] The For taxes 
  3.12  payable in 2002 and subsequent years, a state tax shall be 
  3.13  levied on all taxable property in the state as defined in 
  3.14  section 273.13.  The rate of the tax shall be certified by 
  3.15  the state auditor commissioner of revenue to each county auditor 
  3.16  on or before November 15 1 annually.  For taxes payable in 2002 
  3.17  and subsequent years, the commissioner shall compute and certify 
  3.18  a tax rate necessary to raise $1,330,000,000.  
  3.19     Subd. 2.  [LEVY FOR PUBLIC DEBT.] The state levy under 
  3.20  subdivision 1 is in addition to any state levy certified by the 
  3.21  state auditor under article XI of the Minnesota Constitution.  A 
  3.22  levy certified by the state auditor under article XI shall be 
  3.23  certified by the state auditor to each county auditor by 
  3.24  November 1 for taxes payable in the following year and shall be 
  3.25  applied against the assessed value of all taxable property in 
  3.26  the state. 
  3.27     [EFFECTIVE DATE.] This section is effective for taxes 
  3.28  payable in 2002 and thereafter. 
  3.29     Sec. 5.  Minnesota Statutes 2000, section 275.065, 
  3.30  subdivision 1, is amended to read: 
  3.31     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
  3.32  law or charter to the contrary, on or before September 15, each 
  3.33  taxing authority, other than a school district and including the 
  3.34  state for the state determined general education levy, shall 
  3.35  adopt a proposed budget and shall certify to the county auditor 
  3.36  the proposed or, in the case of a town, the final property tax 
  4.1   levy for taxes payable in the following year. 
  4.2      (b) On or before September 30, each school district shall 
  4.3   certify to the county auditor the proposed property tax levy for 
  4.4   taxes payable in the following year.  The school district shall 
  4.5   certify the proposed levy as: 
  4.6      (1) the state determined school levy amount as prescribed 
  4.7   under section 126C.13, subdivision 2; 
  4.8      (2) voter approved referendum and debt levies; and 
  4.9      (3) (2) the sum of the remaining school levies, or the 
  4.10  maximum levy limitation certified by the commissioner of 
  4.11  children, families, and learning according to section 126C.48, 
  4.12  subdivision 1, less the amounts levied under clauses 
  4.13  clause (1) and (2). 
  4.14     (c) If the board of estimate and taxation or any similar 
  4.15  board that establishes maximum tax levies for taxing 
  4.16  jurisdictions within a first class city certifies the maximum 
  4.17  property tax levies for funds under its jurisdiction by charter 
  4.18  to the county auditor by September 15, the city shall be deemed 
  4.19  to have certified its levies for those taxing jurisdictions. 
  4.20     (d) For purposes of this section, "taxing authority" 
  4.21  includes all home rule and statutory cities, towns, counties, 
  4.22  school districts, and special taxing districts as defined in 
  4.23  section 275.066.  Intermediate school districts that levy a tax 
  4.24  under chapter 124 or 136D, joint powers boards established under 
  4.25  sections 123A.44 to 123A.446, and common school districts No. 
  4.26  323, Franconia, and No. 815, Prinsburg, are also special taxing 
  4.27  districts for purposes of this section.  
  4.28     Sec. 6.  [SCHOOL DISTRICT CASH FLOW.] 
  4.29     For fiscal year 2003 and later, the commissioner of 
  4.30  children, families, and learning must adjust the state aid 
  4.31  payment schedule under Minnesota Statutes, section 127A.45, so 
  4.32  that replacement of property tax levies with state aid under 
  4.33  this act has a neutral effect on school districts' cash flow. 
  4.34     Sec. 7.  [REPEALER.] 
  4.35     Minnesota Statutes 2000, sections 126C.13, subdivisions 1, 
  4.36  2, and 3; and 273.1382, subdivision 3, are repealed.  
  5.1      [EFFECTIVE DATE.] This section is effective for taxes 
  5.2   payable in 2002 and subsequent years.