HF 2128

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

  1.1                          A bill for an act 
  1.2             relating to taxation; dedicating a portion of the 
  1.3             sales tax revenue for distributions as aids to cities 
  1.4             and counties; eliminating payment of homestead and 
  1.5             agricultural credit aid to towns, cities, and 
  1.6             counties; amending Minnesota Statutes 1996, sections 
  1.7             273.1398, subdivisions 1, 2, and 6; and 297A.44, 
  1.8             subdivision 1; proposing coding for new law in 
  1.9             Minnesota Statutes, chapter 477A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 273.1398, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  1.14  terms defined in this subdivision have the meanings given them. 
  1.15     (b) "Unique taxing jurisdiction" means the geographic area 
  1.16  subject to the same set of local tax rates. 
  1.17     (c) "Previous net tax capacity" means the product of the 
  1.18  appropriate net class rates for the year previous to the year in 
  1.19  which the aid is payable, and estimated market values for the 
  1.20  assessment two years prior to that in which aid is payable.  
  1.21  "Total previous net tax capacity" means the previous net tax 
  1.22  capacities for all property within the unique taxing 
  1.23  jurisdiction.  The total previous net tax capacity shall be 
  1.24  reduced by the sum of (1) the unique taxing jurisdiction's 
  1.25  previous net tax capacity of commercial-industrial property as 
  1.26  defined in section 473F.02, subdivision 3, or 276A.02, 
  1.27  subdivision 3, multiplied by the ratio determined pursuant to 
  2.1   section 473F.08, subdivision 6, or 276A.06, subdivision 7, for 
  2.2   the municipality, as defined in section 473F.02, subdivision 8, 
  2.3   or 276A.06, subdivision 7, in which the unique taxing 
  2.4   jurisdiction is located, (2) the previous net tax capacity of 
  2.5   the captured value of tax increment financing districts as 
  2.6   defined in section 469.177, subdivision 2, and (3) the previous 
  2.7   net tax capacity of transmission lines deducted from a local 
  2.8   government's total net tax capacity under section 273.425.  
  2.9   Previous net tax capacity cannot be less than zero. 
  2.10     (d) "Equalized market values" are market values that have 
  2.11  been equalized by dividing the assessor's estimated market value 
  2.12  for the second year prior to that in which the aid is payable by 
  2.13  the assessment sales ratios determined by class in the 
  2.14  assessment sales ratio study conducted by the department of 
  2.15  revenue pursuant to section 124.2131 in the second year prior to 
  2.16  that in which the aid is payable.  The equalized market values 
  2.17  shall equal the unequalized market values divided by the 
  2.18  assessment sales ratio. 
  2.19     (e) "Equalized school levies" means the amounts levied for: 
  2.20     (1) general education under section 124A.23, subdivision 2; 
  2.21     (2) supplemental revenue under section 124A.22, subdivision 
  2.22  8a; 
  2.23     (3) transition revenue under section 124A.22, subdivision 
  2.24  13c; 
  2.25     (4) basic transportation under section 124.226, subdivision 
  2.26  1; and 
  2.27     (5) referendum revenue under section 124A.03. 
  2.28     (f) "Current local tax rate" means the quotient derived by 
  2.29  dividing the taxes levied within a unique taxing jurisdiction 
  2.30  for taxes payable in the year prior to that for which aids are 
  2.31  being calculated by the total previous net tax capacity of the 
  2.32  unique taxing jurisdiction.  
  2.33     (g) For purposes of calculating and allocating homestead 
  2.34  and agricultural credit aid for special taxing districts and for 
  2.35  school districts authorized pursuant to subdivision 2 and the 
  2.36  disparity reduction aid authorized in subdivision 3, "gross 
  3.1   taxes levied on all properties," "gross taxes," or "taxes 
  3.2   levied" means the total net tax capacity based taxes levied on 
  3.3   all properties except that levied on the captured value of tax 
  3.4   increment districts as defined in section 469.177, subdivision 
  3.5   2, and that levied on the portion of commercial industrial 
  3.6   properties' assessed value or gross tax capacity, as defined in 
  3.7   section 473F.02, subdivision 3, subject to the areawide tax as 
  3.8   provided in section 473F.08, subdivision 6, in a unique taxing 
  3.9   jurisdiction.  "Gross taxes" are before any reduction for 
  3.10  disparity reduction aid but "taxes levied" are after any 
  3.11  reduction for disparity reduction aid.  Gross taxes levied or 
  3.12  taxes levied cannot be less than zero.  
  3.13     "Taxes levied" excludes equalized school levies. 
  3.14     (h) "Household adjustment factor" means the number of 
  3.15  households for the second most recent year preceding that in 
  3.16  which the aids are payable divided by the number of households 
  3.17  for the third most recent year.  The household adjustment factor 
  3.18  cannot be less than one.  
  3.19     (i) "Growth adjustment factor" means the household 
  3.20  adjustment factor in the case of counties.  In the case of 
  3.21  cities, towns, school districts, and special taxing districts, 
  3.22  the growth adjustment factor equals one.  The growth adjustment 
  3.23  factor cannot be less than one.  
  3.24     (j) "Homestead and agricultural credit base" means the 
  3.25  previous year's certified homestead and agricultural credit aid 
  3.26  determined under subdivision 2 less any permanent aid reduction 
  3.27  in the previous year to homestead and agricultural credit aid.  
  3.28     (k) "Net tax capacity adjustment" means (1) the tax base 
  3.29  differential defined in subdivision 1a, multiplied by (2) the 
  3.30  unique taxing jurisdiction's current local tax rate.  The net 
  3.31  tax capacity adjustment cannot be less than zero. 
  3.32     (l) "Fiscal disparity adjustment" means a taxing 
  3.33  jurisdiction's fiscal disparity distribution levy under section 
  3.34  473F.08, subdivision 3, clause (a), or 276A.06, subdivision 3, 
  3.35  clause (a), for taxes payable in the year prior to that for 
  3.36  which aids are being calculated, multiplied by the ratio of the 
  4.1   tax base differential percent referenced in subdivision 1a for 
  4.2   the highest class rate for class 3 property for taxes payable in 
  4.3   the year prior to that for which aids are being calculated to 
  4.4   the highest class rate for class 3 property for taxes payable in 
  4.5   the second prior year to that for which aids are being 
  4.6   calculated.  In the case of school districts, the fiscal 
  4.7   disparity distribution levy shall exclude that part of the levy 
  4.8   attributable to equalized school levies. 
  4.9      Sec. 2.  Minnesota Statutes 1996, section 273.1398, 
  4.10  subdivision 2, is amended to read: 
  4.11     Subd. 2.  [HOMESTEAD AND AGRICULTURAL CREDIT AID.] 
  4.12  Homestead and agricultural credit aid for each unique taxing 
  4.13  jurisdiction equals the product of (1) the homestead and 
  4.14  agricultural credit aid base, and (2) the growth adjustment 
  4.15  factor, plus the net tax capacity adjustment and the fiscal 
  4.16  disparity adjustment.  Only special taxing districts and school 
  4.17  districts will receive homestead and agricultural credit aid in 
  4.18  1998 and thereafter.  
  4.19     Sec. 3.  Minnesota Statutes 1996, section 273.1398, 
  4.20  subdivision 6, is amended to read: 
  4.21     Subd. 6.  [PAYMENT.] The commissioner shall certify the 
  4.22  aids provided in subdivisions 2, 2b, and 3, and 5 before 
  4.23  September 1 of the year preceding the distribution year to the 
  4.24  county auditor of the affected local government.  The aids 
  4.25  provided in subdivisions 2, 2b, subdivision 3, and 5 must be 
  4.26  paid to local governments other than school districts and the 
  4.27  aids provided in subdivision 2 to special taxing districts must 
  4.28  be paid at the times provided in section 477A.015 for payment of 
  4.29  local government aid to taxing jurisdictions, except that the 
  4.30  first one-half payment of disparity reduction aid provided in 
  4.31  subdivision 3 must be paid on or before August 31.  The 
  4.32  disparity reduction credit provided in subdivision 4 must be 
  4.33  paid to taxing jurisdictions other than school districts at the 
  4.34  time provided in section 473H.10, subdivision 3.  Aids and 
  4.35  credit reimbursements to school districts must be certified to 
  4.36  the commissioner of children, families, and learning and paid 
  5.1   under section 273.1392.  Except for education districts and 
  5.2   secondary cooperatives that receive revenue according to section 
  5.3   124.575, payment shall not be made to any taxing jurisdiction 
  5.4   that has ceased to levy a property tax.  
  5.5      Sec. 4.  Minnesota Statutes 1996, section 297A.44, 
  5.6   subdivision 1, is amended to read: 
  5.7      Subdivision 1.  (a) Except as provided in paragraphs (b), 
  5.8   (c), and (d), and (e), all revenues, including interest and 
  5.9   penalties, derived from the excise and use taxes imposed by 
  5.10  sections 297A.01 to 297A.44 shall be deposited by the 
  5.11  commissioner in the state treasury and credited to the general 
  5.12  fund.  
  5.13     (b) All excise and use taxes derived from sales and use of 
  5.14  property and services purchased for the construction and 
  5.15  operation of an agricultural resource project, from and after 
  5.16  the date on which a conditional commitment for a loan guaranty 
  5.17  for the project is made pursuant to section 41A.04, subdivision 
  5.18  3, shall be deposited in the Minnesota agricultural and economic 
  5.19  account in the special revenue fund.  The commissioner of 
  5.20  finance shall certify to the commissioner the date on which the 
  5.21  project received the conditional commitment.  The amount 
  5.22  deposited in the loan guaranty account shall be reduced by any 
  5.23  refunds and by the costs incurred by the department of revenue 
  5.24  to administer and enforce the assessment and collection of the 
  5.25  taxes.  
  5.26     (c) All revenues, including interest and penalties, derived 
  5.27  from the excise and use taxes imposed on sales and purchases 
  5.28  included in section 297A.01, subdivision 3, paragraphs (d) and 
  5.29  (l), clauses (1) and (2), must be deposited by the commissioner 
  5.30  in the state treasury, and credited as follows: 
  5.31     (1) first to the general obligation special tax bond debt 
  5.32  service account in each fiscal year the amount required by 
  5.33  section 16A.661, subdivision 3, paragraph (b); and 
  5.34     (2) after the requirements of clause (1) have been met, the 
  5.35  balance must be credited to the general fund. 
  5.36     (d) The revenues, including interest and penalties, derived 
  6.1   from the taxes imposed on solid waste collection services as 
  6.2   described in section 297A.45, shall be deposited by the 
  6.3   commissioner in the state treasury and credited to the general 
  6.4   fund to be used for funding solid waste reduction and recycling 
  6.5   programs. 
  6.6      (e) An amount equal to the taxes imposed under this chapter 
  6.7   at a rate of one percent shall be deposited in a local 
  6.8   government revenue account in the state treasury for use as 
  6.9   provided in this section. 
  6.10     Sec. 5.  [477A.0133] [REVENUE BASE DIVERSIFICATION AID.] 
  6.11     Subdivision 1.  [AID TO BE PAID.] Beginning in calendar 
  6.12  year 1998, each city, town, and county will receive a 
  6.13  distribution of revenue base diversification aid as provided in 
  6.14  this section. 
  6.15     Subd. 2.  [AMOUNT TO BE DISTRIBUTED.] For aid payable in 
  6.16  calendar year 1998, the amount to be distributed under this 
  6.17  section is equal to the amount that would have been deposited in 
  6.18  the local government revenue account under section 297A.44, 
  6.19  subdivision 1, paragraph (e), if that provision had been in 
  6.20  effect, for the 12-month period beginning July 1, 1995.  For aid 
  6.21  payable in calendar year 1999, the amount to be distributed 
  6.22  under this section is equal to the amount that would have been 
  6.23  deposited in the local government revenue account under section 
  6.24  297A.44, subdivision 1, paragraph (e), if that provision had 
  6.25  been in effect, for the 12-month period beginning July 1, 1996.  
  6.26  For aid payable in calendar year 2000 and subsequent years, the 
  6.27  amount to be distributed under this section is equal to the 
  6.28  amount deposited in the local government revenue account under 
  6.29  section 297A.44, subdivision 1, paragraph (e), for the period 
  6.30  beginning July 1 of the third year preceding the distribution 
  6.31  year and ending June 30 of the second year preceding the 
  6.32  distribution. 
  6.33     Subd. 3.  [DETERMINATION OF AID AMOUNTS.] (a) For 
  6.34  distribution in 1998, each city, town, and county will receive a 
  6.35  distribution under this section equal to the sum of: 
  6.36     (1) the amount of aid it received under section 273.1398, 
  7.1   subdivision 2, in 1997; plus 
  7.2      (2) its share of the per capita distribution amount. 
  7.3      For each city, town, and county, a per capita distribution 
  7.4   amount is determined as follows:  the total amount of aid 
  7.5   distributed to cities, towns, and counties under section 
  7.6   273.1398, subdivision 2, in 1997 is subtracted from the total 
  7.7   amount available for distribution under subdivision 2 for the 
  7.8   current year.  One-half of that amount will be distributed to 
  7.9   the counties on a per capita basis, and one-half of that amount 
  7.10  will be distributed to cities and towns on a per capita basis. 
  7.11     (b) For distributions in 1999 and subsequent years, each 
  7.12  city, town, and county will receive a distribution under this 
  7.13  section equal to the sum of: 
  7.14     (1) the amount it received under this section in the 
  7.15  previous year; plus 
  7.16     (2) its per capita share of local sales tax revenue growth 
  7.17  determined as follows: 
  7.18     In 1999 and each year thereafter, the commissioner of 
  7.19  revenue shall determine the amount by which the revenue 
  7.20  available for distribution under subdivision 2 exceeds the 
  7.21  amount distributed under this section in the previous year.  
  7.22  That amount shall be distributed to the counties in proportion 
  7.23  to the share of total sales tax revenue growth that was 
  7.24  generated by sales in that county.  One-half of the amount of 
  7.25  each county's distributive share shall be paid to the county, 
  7.26  and the remainder shall be distributed to the cities and towns 
  7.27  within the county on a per capita basis.  The amount of any 
  7.28  sales tax revenue growth that is not allocable to any county 
  7.29  will be distributed to counties on a per capita basis.  For 
  7.30  purposes of this section, "sales tax revenue growth" means the 
  7.31  increase in the amount of sales tax revenue deposited in the 
  7.32  local government revenue account under section 297A.44, 
  7.33  subdivision 1, paragraph (e), between July 1 of the second year 
  7.34  preceding the distribution year and the following June 30 and 
  7.35  the amount deposited during the subsequent 12-month period. 
  7.36     Subd. 4.  [PAYMENT DATES.] The aid amounts for each 
  8.1   calendar year shall be paid as provided in section 477A.015. 
  8.2      Sec. 6.  [EFFECTIVE DATE.] 
  8.3      Sections 1 to 3 are effective July 1, 1998.  Section 4 is 
  8.4   effective for revenues received after June 30, 1997.