HF 1924

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; requiring the commissioner of revenue to conduct a
study of the metropolitan fiscal disparities program; appropriating money.

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

Section 1. new text begin FISCAL DISPARITIES STUDY.
new text end

new text begin Subdivision 1. new text end

new text begin Study required. new text end

new text begin The commissioner of revenue must conduct a study
of the metropolitan revenue distribution program contained in Minnesota Statutes, chapter
473F, commonly known as the fiscal disparities program. On or before February 1, 2008,
the commissioner shall make a report to the chairs of the house and senate tax committees
consisting of the findings of the study and any recommendations resulting from the study.
new text end

new text begin The study shall consider to what extent the program is meeting the following goals,
and what changes could be made to the program in the furtherance of meeting those goals:
new text end

new text begin (1) reducing the extent to which the property tax encourages development patterns
that do not make cost-effective use of public infrastructure or impose other high public
costs;
new text end

new text begin (2) ensuring that the benefits of economic growth of the region are shared throughout
the region, especially for growth that results from state and/or regional decisions;
new text end

new text begin (3) improving the ability of each jurisdiction within the region to deliver services at
a level commensurate with its tax effort;
new text end

new text begin (4) compensating jurisdictions containing properties that provide regional benefits
for the costs those properties impose on their host jurisdictions in excess of their tax
payments;
new text end

new text begin (5) promoting a fair distribution of property tax burdens across jurisdictions of
the region; and
new text end

new text begin (6) reducing the economic losses that result from competition among communities
for commercial-industrial tax base.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin $50,000 is appropriated to the commissioner of revenue
from the general fund in fiscal year 2008 to conduct the study required under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end