HF 1943

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to property taxation; exempting agricultural 
  1.3             land from the general education levy; amending 
  1.4             Minnesota Statutes 1996, sections 124.2131, 
  1.5             subdivision 1; and 275.08, subdivision 1b. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 124.2131, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
  1.10  [COMPUTATION.] The department of revenue shall annually conduct 
  1.11  an assessment/sales ratio study of the taxable property in each 
  1.12  school district in accordance with the procedures in paragraphs 
  1.13  (b) and (c).  Based upon the results of this assessment/sales 
  1.14  ratio study, the department of revenue shall determine an 
  1.15  aggregate equalized net tax capacity for the various classes of 
  1.16  taxable property in each school district, which tax capacity 
  1.17  shall be designated as the adjusted net tax capacity.  The 
  1.18  adjusted net tax capacities shall be determined using the net 
  1.19  tax capacity percentages in effect for the assessment year 
  1.20  following the assessment year of the study.  The department of 
  1.21  revenue shall make whatever estimates are necessary to account 
  1.22  for changes in the classification system.  The department of 
  1.23  revenue may incur the expense necessary to make the 
  1.24  determinations.  The commissioner of revenue may reimburse any 
  1.25  county or governmental official for requested services performed 
  2.1   in ascertaining the adjusted net tax capacity.  On or before 
  2.2   March 15 annually, the department of revenue shall file with the 
  2.3   chair of the tax committee of the house of representatives and 
  2.4   the chair of the committee on taxes and tax laws of the senate a 
  2.5   report of adjusted net tax capacities.  On or before June 15 
  2.6   annually, the department of revenue shall file its final report 
  2.7   on the adjusted net tax capacities established by the previous 
  2.8   year's assessments and the current year's net tax capacity 
  2.9   percentages with the commissioner of children, families, and 
  2.10  learning and each county auditor for those school districts for 
  2.11  which the auditor has the responsibility for determination of 
  2.12  local tax rates.  A copy of the report so filed shall be mailed 
  2.13  to the clerk of each district involved and to the county 
  2.14  assessor or supervisor of assessments of the county or counties 
  2.15  in which each district is located. 
  2.16     (b)  [METHODOLOGY.] In making its annual assessment/sales 
  2.17  ratio studies, the department of revenue shall use a methodology 
  2.18  consistent with the most recent Standard on Assessment Ratio 
  2.19  Studies published by the assessment standards committee of the 
  2.20  International Association of Assessing Officers.  The 
  2.21  commissioner of revenue shall supplement this general 
  2.22  methodology with specific procedures necessary for execution of 
  2.23  the study in accordance with other Minnesota laws impacting the 
  2.24  assessment/sales ratio study.  The commissioner shall document 
  2.25  these specific procedures in writing and shall publish the 
  2.26  procedures in the State Register, but these procedures will not 
  2.27  be considered "rules" pursuant to the Minnesota administrative 
  2.28  procedure act.  For purposes of this section, sections 270.12, 
  2.29  subdivision 2, clause (8), and 278.05, subdivision 4, the 
  2.30  commissioner of revenue shall exclude from the assessment/sales 
  2.31  ratio study the sale of any nonagricultural property which does 
  2.32  not contain an improvement, if (1) the statutory basis on which 
  2.33  the property's taxable value as most recently assessed is less 
  2.34  than market value as defined in section 273.11, or (2) the 
  2.35  property has undergone significant physical change or a change 
  2.36  of use since the most recent assessment.  
  3.1      (c)  [VALUATION OF AGRICULTURAL LANDS.] For purposes of 
  3.2   determining the adjusted net tax capacity of agricultural lands 
  3.3   for the calculation of adjusted net tax capacities, the market 
  3.4   value of agricultural lands shall be the price for which the 
  3.5   property would sell in an arms length transaction. 
  3.6      (d)  [FORCED SALES.] The commissioner may include forced 
  3.7   sales in the assessment/sales ratio studies if it is determined 
  3.8   by the commissioner that these forced sales indicate true market 
  3.9   value. 
  3.10     (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
  3.11  market value to be used in calculating sales ratios shall be the 
  3.12  value established by the assessor before any stipulations 
  3.13  resulting from appeals by property owners and before any 
  3.14  abatement unless the abatement was granted for the purpose of 
  3.15  correcting mere clerical errors. 
  3.16     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
  3.17  shall be calculated for commercial property and for industrial 
  3.18  property.  These two classes shall be combined only in 
  3.19  jurisdictions in which there is not an adequate sample of sales 
  3.20  in each class. 
  3.21     (g)  [AGRICULTURAL LAND EXEMPTION.] The value of 
  3.22  agricultural property classified as class 2a or 2b under section 
  3.23  273.13, subdivision 23, except for the value of the house, 
  3.24  garage, and one acre of land in the case of an agricultural 
  3.25  homestead, shall be excluded from a school district's adjusted 
  3.26  net tax capacity for the purpose of determining its general 
  3.27  education levy under section 124A.23, subdivision 2. 
  3.28     Sec. 2.  Minnesota Statutes 1996, section 275.08, 
  3.29  subdivision 1b, is amended to read: 
  3.30     Subd. 1b.  [COMPUTATION OF TAX RATES.] (a) The amounts 
  3.31  certified to be levied against net tax capacity under section 
  3.32  275.07 by an individual local government unit shall be divided 
  3.33  by the total net tax capacity of all taxable properties within 
  3.34  the local government unit's taxing jurisdiction.  The resulting 
  3.35  ratio, the local government's local tax rate, multiplied by each 
  3.36  property's net tax capacity shall be each property's net tax 
  4.1   capacity tax for that local government unit before reduction by 
  4.2   any credits.  
  4.3      (b) The portion of the school district tax rate for the 
  4.4   general education levy under section 124A.23, subdivision 2, 
  4.5   shall not be levied on property classified as class 2a or 2b 
  4.6   under section 273.13, subdivision 23, except that the tax shall 
  4.7   be levied on the house, garage, and one acre of land of an 
  4.8   agricultural homestead.  The county auditor shall deduct the net 
  4.9   tax capacity of property qualifying for this exemption before 
  4.10  determining a school district's general education levy tax rate. 
  4.11     (c) Any amount certified to the county auditor to be levied 
  4.12  against market value shall be divided by the total referendum 
  4.13  market value of all taxable properties within the taxing 
  4.14  district.  The resulting ratio, the taxing district's new 
  4.15  referendum tax rate, multiplied by each property's referendum 
  4.16  market value shall be each property's new referendum tax before 
  4.17  reduction by any credits.  For the purposes of this subdivision, 
  4.18  "referendum market value" means the market value as defined in 
  4.19  section 124A.02, subdivision 3b. 
  4.20     Sec. 3.  [GENERAL EDUCATION LEVY REDUCTION.] 
  4.21     For fiscal year 1999, general education aid under Minnesota 
  4.22  Statutes, section 124A.23, subdivision 4, is increased by 
  4.23  $95,000,000 over the general education aid expenditure for 
  4.24  fiscal year 1998.  The general education aid increase under this 
  4.25  provision must be used to decrease the general education levy 
  4.26  under Minnesota Statutes, section 124A.23, subdivision 1, by 
  4.27  $95,000,000 for taxes payable in 1998. 
  4.28     Sec. 4.  [EFFECTIVE DATE.] 
  4.29     This act is effective for taxes levied in 1997, payable in 
  4.30  1998, and subsequent years.