HF 1951

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

  1.1                          A bill for an act 
  1.2             relating to property taxation; dedicating a portion of 
  1.3             the state property tax to an education reserve; 
  1.4             amending Minnesota Statutes 2003 Supplement, section 
  1.5             275.025, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   275.025, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [LEVY AMOUNT.] (a) The state general levy 
  1.10  is levied against commercial-industrial property and seasonal 
  1.11  residential recreational property, as defined in this section.  
  1.12  The state general levy base amount is $592,000,000 for taxes 
  1.13  payable in 2002.  For taxes payable in subsequent years, the 
  1.14  levy base amount is increased each year by multiplying the levy 
  1.15  base amount for the prior year by the sum of one plus the rate 
  1.16  of increase, if any, in the implicit price deflator for 
  1.17  government consumption expenditures and gross investment for 
  1.18  state and local governments prepared by the Bureau of Economic 
  1.19  Analysts of the United States Department of Commerce for the 
  1.20  12-month period ending March 31 of the year prior to the year 
  1.21  the taxes are payable.  The tax under this section is not 
  1.22  treated as a local tax rate under section 469.177 and is not the 
  1.23  levy of a governmental unit under chapters 276A and 473F.  
  1.24     (b) Beginning with taxes payable in 2004, and in each year 
  1.25  thereafter, the commissioner of finance shall deposit in an 
  2.1   education reserve account, which account is hereby established, 
  2.2   the increased amount of the state general levy for that year 
  2.3   over the state general levy base amount for taxes payable in 
  2.4   2002.  The amounts in the education reserve account do not lapse 
  2.5   or cancel each year, but remain until appropriated by law for 
  2.6   education aid or higher education funding.  Each year, one-half 
  2.7   of the annual amount will be deposited to the education reserve 
  2.8   account in the state fiscal year corresponding to the first six 
  2.9   months of the calendar year, and the other half will be 
  2.10  deposited in the state fiscal year corresponding to the last six 
  2.11  months of the calendar year. 
  2.12     (c) The commissioner shall increase or decrease the 
  2.13  preliminary or final rate for a year as necessary to account for 
  2.14  errors and tax base changes that affected a preliminary or final 
  2.15  rate for either of the two preceding years.  Adjustments are 
  2.16  allowed to the extent that the necessary information is 
  2.17  available to the commissioner at the time the rates for a year 
  2.18  must be certified, and for the following reasons: 
  2.19     (1) an erroneous report of taxable value by a local 
  2.20  official; 
  2.21     (2) an erroneous calculation by the commissioner; and 
  2.22     (3) an increase or decrease in taxable value for 
  2.23  commercial-industrial or seasonal residential recreational 
  2.24  property reported on the abstracts of tax lists submitted under 
  2.25  section 275.29 that was not reported on the abstracts of 
  2.26  assessment submitted under section 270.11, subdivision 2, for 
  2.27  the same year. 
  2.28  The commissioner may, but need not, make adjustments if the 
  2.29  total difference in the tax levied for the year would be less 
  2.30  than $100,000. 
  2.31     [EFFECTIVE DATE.] This section is effective for taxes 
  2.32  payable in 2004 and subsequent years.