Minnesota Legislature
HF 2191
as introduced - 89th Legislature (2015 - 2016) Posted on 04/09/2015 11:15am
Bill Text Versions
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| Introduction | Posted on 04/09/2015 |
Current Version - as introduced
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A bill for an act
relating to taxation; property; excluding agricultural property from school
capital levies; providing tax base replacement aid; creating a new equalization
aid formula for school bonds approved on or after July 1, 2015; appropriating
money; amending Minnesota Statutes 2014, sections 123B.53, subdivision 1;
123B.54; 123B.55; 126C.01, by adding subdivisions; 275.08, subdivision 1b;
proposing coding for new law in Minnesota Statutes, chapter 123B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 123B.53, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:
(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, paragraph (a), minus
(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.
(b) The obligations in this paragraph are excluded from eligible debt service revenue:
(1) obligations under section 123B.61;
(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
taconite payments from the Iron Range school consolidation and cooperatively operated
school account under section 298.28, subdivision 7a;
(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24;
(4) obligations under section 123B.62; deleted text begin and
deleted text end
(5) obligations equalized under section 123B.535new text begin ; and
new text end
new text begin (6) obligations authorized by voters on or after July 1, 2015new text end .
(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.
(d) For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 2.
new text begin
[123B.531] AGRICULTURAL DEBT SERVICE TAX BASE
REPLACEMENT AID.
new text end
new text begin
For each school district levying for debt service under section 123B.55 for taxes
payable in 2015, for each separate bond issue or each separately authorized levy, the
commissioner of revenue, in consultation with the commissioner of education, must
certify the amount of the levy in taxes payable year 2015 levied against property classified
as class 2a or 2b, under section 273.13, excluding the portion of the levy attributable to
the portion of class 2a property consisting of the house, garage, and surrounding one
acre of land. The resulting amount for each bond issue or each levy authorization must
be paid to the district each year that a levy for those bond payments are made, or until
the levy authority is terminated, and must be used to reduce the district's debt service
levy amount otherwise determined.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 3.
new text begin
[123B.533] FACILITIES DEBT EQUALIZATION; BONDS ISSUED
AFTER JULY 1, 2015.
new text end
new text begin Subdivision 1. new text end
new text begin Eligible facilities debt service revenue. new text end
new text begin
For purposes of this
section, the eligible facilities debt service revenue of a district equals 105 percent of the
amount needed to meet, when due, the principal and interest on bonds approved by the
voters under section 475.58 for bonds issued on or after July 1, 2015.
new text end
new text begin Subd. 2. new text end
new text begin Facilities debt service levy. new text end
new text begin
A district's equalized facilities debt service
levy equal a district's facilities debt service revenue under subdivision 1 times the lesser
of 1 or the ratio of:
new text end
new text begin
(1) the quotient derived by dividing the adjusted school capital net tax capacity of
the district for the year before the year the levy is certified by the adjusted pupil units in
the district for the school year ending in the year prior to the year the levy is certified; to
new text end
new text begin
(2) 250 percent of the statewide adjusted school capital net tax capacity equalizing
factor as defined in section 126C.01, subdivision 2c.
new text end
new text begin Subd. 3. new text end
new text begin Facilities debt service aid. new text end
new text begin
A school district's facilities debt service aid
equals the difference between its facilities debt service revenue and its facilities debt
service levy.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 4.
Minnesota Statutes 2014, section 123B.54, is amended to read:
123B.54 DEBT SERVICE APPROPRIATION.
(a) The amount necessary to make debt service equalization aid payments under
sections 123B.53new text begin , 123B.533, new text end and 123B.535 is annually appropriated from the general fund
to the commissioner of education.
(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 5.
Minnesota Statutes 2014, section 123B.55, is amended to read:
123B.55 DEBT SERVICE LEVY.
A district may levy the amounts necessary to make payments for bonds issued and
for interest on them, including the bonds and interest on them, issued as authorized by
Minnesota Statutes 1974, section 275.125, subdivision 3, clause (7)(C); and the amounts
necessary for repayment of debt service loans and capital loans, minus the amount of
debt service equalization deleted text begin revenuedeleted text end new text begin aidnew text end of the districtnew text begin , the facilities debt service aid of the
district, and the agricultural debt service tax base replacement aid of the district. Debt
service levies must be levied against the school capital net tax capacity of the district, as
defined in section 126C.01, subdivision 2anew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end
Sec. 6.
Minnesota Statutes 2014, section 126C.01, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin School capital net tax capacity. new text end
new text begin
"School capital net tax capacity" means
the net tax capacity as otherwise defined under section 273.13, excluding the tax capacity
attributable to class 2a and 2b agricultural land and buildings. This exclusion does not
apply to the house, garage, and one acre of an agricultural homestead under class 2a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end
Sec. 7.
Minnesota Statutes 2014, section 126C.01, is amended by adding a subdivision
to read:
new text begin Subd. 2b. new text end
new text begin Adjusted school capital net tax capacity. new text end
new text begin
"Adjusted school capital net
tax capacity" means the school capital net tax capacity defined under subdivision 2a as
adjusted by the commissioner of revenue under section 127A.48.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 8.
Minnesota Statutes 2014, section 126C.01, is amended by adding a subdivision
to read:
new text begin Subd. 2c. new text end
new text begin
Statewide adjusted school capital net tax capacity equalizing factor.
new text end
new text begin
The statewide adjusted school capital net tax capacity equalizing factor equals the quotient
derived by dividing the total adjusted school capital net tax capacity of all school districts
in the state for the year before the year the levy is certified by the total number of adjusted
pupil units in the state for the year prior to the year the levy is certified.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with fiscal year 2017.
new text end
Sec. 9.
Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:
Subd. 1b.
Computation of tax rates.
new text begin (a) new text end The amounts certified to be levied against
net tax capacity under section 275.07 by an individual local government unit shall be
divided by the total net tax capacity of all taxable properties within the local government
unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
multiplied by each property's net tax capacity shall be each property's net tax capacity tax
for that local government unit before reduction by any credits.
new text begin
(b) Any amount certified to the county auditor to be levied against school capital
net tax capacity must be divided by the total school capital net tax capacity of all taxable
properties within the school district. The resulting ratio, the school district's school
capital tax rate, multiplied by each property's school capital net tax capacity, shall be
each property's school capital tax before reduction by any credits. For the purposes of
the subdivision, "school capital net tax capacity" means the value as defined in section
126C.01, subdivision 2a.
new text end
new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
each property's referendum market value shall be each property's new referendum tax
before reduction by any credits. For the purposes of this subdivision, "referendum market
value" means the market value as defined in section 126C.01, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2016.
new text end