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HF 2117

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

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to property taxes; making adjustments in the 
  1.3             property tax treatment of seasonal recreational 
  1.4             property and other residential property; amending 
  1.5             Minnesota Statutes 2002, sections 126C.01, subdivision 
  1.6             3; 275.025, as amended; Minnesota Statutes 2003 
  1.7             Supplement, section 126C.17, subdivision 7a. 
  1.9      Section 1.  Minnesota Statutes 2002, section 126C.01, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [REFERENDUM MARKET VALUE.] "Referendum market 
  1.12  value" means the market value of all taxable property, excluding 
  1.13  property classified as class 2, noncommercial 4c(1), or 4c(4) 
  1.14  under section 273.13.  The portion of class 2a property 
  1.15  consisting of the house, garage, and surrounding one acre of 
  1.16  land of an agricultural homestead is included in referendum 
  1.17  market value.  Any class of property, or any portion of a class 
  1.18  of property, that is included in the definition of referendum 
  1.19  market value and that has a class rate of less than one percent 
  1.20  under section 273.13 shall have a referendum market value equal 
  1.21  to its net tax capacity multiplied by 100. 
  1.22     [EFFECTIVE DATE.] This section is effective for taxes 
  1.23  payable in 2005 and subsequent years. 
  1.24     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  1.25  126C.17, subdivision 7a, is amended to read: 
  1.26     Subd. 7a.  [REFERENDUM TAX BASE REPLACEMENT AID.] (a) For 
  2.1   each school district that had a referendum allowance for fiscal 
  2.2   year 2002 exceeding $415, for each separately authorized 
  2.3   referendum levy, the commissioner of revenue, in consultation 
  2.4   with the commissioner of education, shall certify the amount of 
  2.5   the referendum levy in taxes payable year 2001 attributable to 
  2.6   the portion of the referendum allowance exceeding $415 levied 
  2.7   against property classified as class 2, noncommercial 4c(1), or 
  2.8   4c(4), under section 273.13, excluding the portion of the tax 
  2.9   paid by the portion of class 2a property consisting of the 
  2.10  house, garage, and surrounding one acre of land.  The resulting 
  2.11  amount must be used to reduce the district's referendum levy 
  2.12  amount otherwise determined, and must be paid to the district 
  2.13  each year that the referendum authority remains in effect, is 
  2.14  renewed, or new referendum authority is approved.  The aid 
  2.15  payable under this subdivision must be subtracted from the 
  2.16  district's referendum equalization aid under subdivision 7.  The 
  2.17  referendum equalization aid after the subtraction must not be 
  2.18  less than zero. 
  2.19     (b) For fiscal year 2006 and subsequent years, the amount 
  2.20  determined under paragraph (a) is reduced by the ratio of (i) 
  2.21  the assessment year 2002 taxable market value of noncommercial 
  2.22  class 4c(1) property to (ii) the assessment year 2002 total 
  2.23  amount of excluded referendum market value under class 2 and 
  2.24  noncommercial class 4c(1) and 4c(4). 
  2.25     [EFFECTIVE DATE.] This section is effective for taxes 
  2.26  payable in 2005 and subsequent years. 
  2.27     Sec. 3.  Minnesota Statutes 2002, section 275.025, as 
  2.28  amended by Laws 2003, chapter 127, article 5, sections 24, 25, 
  2.29  and 26; and Laws 2003, First Special Session chapter 21, article 
  2.30  4, section 5; is amended to read: 
  2.31     275.025 [STATE GENERAL TAX.] 
  2.32     Subdivision 1.  [LEVY AMOUNT.] The state general levy is 
  2.33  levied against commercial-industrial property and seasonal 
  2.34  nonhomestead residential recreational property, as defined in 
  2.35  this section.  The state general levy base amount is 
  2.36  $592,000,000 for taxes payable in 2002.  For taxes payable in 
  3.1   subsequent years, the levy base amount is increased each year by 
  3.2   multiplying the levy base amount for the prior year by the sum 
  3.3   of one plus the rate of increase, if any, in the implicit price 
  3.4   deflator for government consumption expenditures and gross 
  3.5   investment for state and local governments prepared by the 
  3.6   Bureau of Economic Analysts of the United States Department of 
  3.7   Commerce for the 12-month period ending March 31 of the year 
  3.8   prior to the year the taxes are payable.  The tax under this 
  3.9   section is not treated as a local tax rate under section 469.177 
  3.10  and is not the levy of a governmental unit under chapters 276A 
  3.11  and 473F.  
  3.12     The commissioner shall increase or decrease the preliminary 
  3.13  or final rate for a year as necessary to account for errors and 
  3.14  tax base changes that affected a preliminary or final rate for 
  3.15  either of the two preceding years.  Adjustments are allowed to 
  3.16  the extent that the necessary information is available to the 
  3.17  commissioner at the time the rates for a year must be certified, 
  3.18  and for the following reasons: 
  3.19     (1) an erroneous report of taxable value by a local 
  3.20  official; 
  3.21     (2) an erroneous calculation by the commissioner; and 
  3.22     (3) an increase or decrease in taxable value for 
  3.23  commercial-industrial or seasonal nonhomestead residential 
  3.24  recreational property reported on the abstracts of tax lists 
  3.25  submitted under section 275.29 that was not reported on the 
  3.26  abstracts of assessment submitted under section 270.11, 
  3.27  subdivision 2, for the same year. 
  3.28  The commissioner may, but need not, make adjustments if the 
  3.29  total difference in the tax levied for the year would be less 
  3.30  than $100,000. 
  3.31     Subd. 2.  [COMMERCIAL-INDUSTRIAL TAX CAPACITY.] For the 
  3.32  purposes of this section, "commercial-industrial tax capacity" 
  3.33  means the tax capacity of all taxable property classified as 
  3.34  class 3, commercial class 4c(1), or class 5(1) under section 
  3.35  273.13, except for electric generation attached machinery under 
  3.36  class 3 and property described in section 473.625.  County 
  4.1   commercial-industrial tax capacity amounts are not adjusted for 
  4.2   the captured net tax capacity of a tax increment financing 
  4.3   district under section 469.177, subdivision 2, the net tax 
  4.4   capacity of transmission lines deducted from a local 
  4.5   government's total net tax capacity under section 273.425, or 
  4.6   fiscal disparities contribution and distribution net tax 
  4.7   capacities under chapter 276A or 473F. 
  4.9   TAX CAPACITY.] For the purposes of this section, "seasonal 
  4.10  nonhomestead residential recreational tax capacity" means the 
  4.11  tax capacity of all class 4c(1) 4a and 4b property under section 
  4.12  273.13, subdivision 25, except that the first $76,000 of market 
  4.13  value of each noncommercial class 4c(1) property has a tax 
  4.14  capacity for this purpose equal to 40 percent of its tax 
  4.15  capacity under section 273.13. 
  4.17  Ninety-four percent of the state general tax must be distributed 
  4.18  among the counties levied by applying a uniform rate to each 
  4.19  county's all commercial-industrial tax capacity, and its 
  4.20  seasonal six percent of the state general tax must be levied by 
  4.21  applying a uniform rate to all nonhomestead residential 
  4.22  recreational tax capacity.  Within each county, the tax must be 
  4.23  levied by applying a uniform rate against commercial-industrial 
  4.24  tax capacity and seasonal residential recreational tax 
  4.25  capacity.  On or before October 1 each year, the commissioner of 
  4.26  revenue shall certify a the preliminary state general levy rate 
  4.27  rates on commercial-industrial property and nonhomestead 
  4.28  residential property to each county auditor that must be used to 
  4.29  prepare the notices of proposed property taxes for taxes payable 
  4.30  in the following year.  By January 1 of each year, the 
  4.31  commissioner shall certify the final state general levy rate 
  4.32  rates to each county auditor that shall be used in spreading 
  4.33  taxes.  
  4.34     [EFFECTIVE DATE.] This section is effective for taxes 
  4.35  payable in 2005 and subsequent years.