HF 2197

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to levy limits; imposing levy limits on
counties and certain cities; amending Minnesota
Statutes 2004, section 275.71, subdivisions 2, 4, 5;
repealing section 275.71, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 275.71,
subdivision 2, is amended to read:

Subd. 2.

Levy limit base.

new text begin (a) new text end The levy limit base for a
local governmental unit for taxes levied in deleted text begin 2003 deleted text end new text begin 2005 new text end is equal
to new text begin the sum of (1) its levy in 2004, minus any amounts levied for
the purposes listed in section 275.70, subdivision 5, plus (2)
the local government aid and county program aid that it is
certified to receive in calendar year 2005 under sections
477A.011 to 477A.014, (3) the taconite aids it receives in
calendar year 2005 under sections 298.28 and 298.282 including
any aid which was required to be placed in a special fund for
expenditure in the next succeeding year, and (4) any wind energy
production tax for calendar year 2005 under section 272.029,
adjusted for any error in estimation in the preceding year.
This amount is subject to any adjustments under section 275.72.
new text end

new text begin (b) The levy limit base for a local governmental unit for
taxes payable in 2006 and thereafter is equal to new text end its adjusted
levy limit base in the previous year, subject to any adjustments
under section 275.72 deleted text begin , plus any aid amounts received in 2003
under section 273.138 or 273.166, minus the difference between
its levy limit under subdivision 5 for taxes levied in 2002 and
the amount it actually levied under that subdivision in that
year, and certified property tax replacement aid payable in 2003
under section 174.242 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
taxes levied in 2005, payable in 2006 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.71,
subdivision 4, is amended to read:

Subd. 4.

Adjusted levy limit base.

deleted text begin (a) deleted text end For taxes levied
in deleted text begin 2003 deleted text end new text begin 2005 and thereafter new text end , the adjusted levy limit base is
equal to the levy limit base computed under
deleted text begin subdivisions deleted text end new text begin subdivision new text end 2 deleted text begin and 3 deleted text end or section 275.72, deleted text begin reduced by
40 percent of the difference between (1) the sum of 2003
certified aid payments, under sections 273.138, 273.1398 except
for amounts certified under subdivision 4a, paragraph (b),
273.166, 477A.011 to 477A.03, 477A.06, and 477A.07, before any
reduction under Laws 2003, First Special Session chapter 21,
articles 5 and 6, and (2) the sum of the aids paid in 2004 under
those same sections, after any reductions in 2004 under Laws
2003, First Special Session chapter 21, articles 5 and 6.
deleted text end

deleted text begin (b) For taxes levied in 2003 only, the adjusted levy limit
base is deleted text end increased by deleted text begin 60 percent of the difference between a
jurisdiction's market value credit in 2003 before any reductions
under Laws 2003, First Special Session chapter 21, articles 5
and 6, and its market value credit in 2004 after reductions in
Laws 2003, First Special Session chapter 21, articles 5 and 6. deleted text end new text begin :
new text end

new text begin (1) 1.02;
new text end

new text begin (2) one plus a percentage equal to 80 percent of the
percentage increase in the number of households, if any, for the
most recent 12-month period for which data is available; and
new text end

new text begin (3) one plus a percentage equal to 50 percent of the
percentage increase in the taxable market value of the
jurisdiction due to new construction of class 3 property as
defined in section 273.13, subdivision 24, except for
state-assessed utility and railroad operating property, for the
most recent year for which data is available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
taxes levied in 2005, payable in 2006 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 275.71,
subdivision 5, is amended to read:

Subd. 5.

Property tax levy limit.

For taxes levied in
deleted text begin 2003 deleted text end new text begin 2005 and thereafter new text end , the property tax levy limit for a
local governmental unit is equal to its adjusted levy limit base
determined under subdivision 4 plus any additional levy
authorized under section 275.73, which is levied against net tax
capacity, reduced by the sum of (i) the total amount of aids and
reimbursements that the local governmental unit is certified to
receive under sections 477A.011 to 477A.014, deleted text begin except for the
increases in city aid bases in calendar year 2002 under section
477A.011, subdivision 36, paragraphs (l), (n), and
(o), deleted text end (ii) deleted text begin homestead and agricultural aids it is certified to
receive under section 273.1398, (iii) deleted text end taconite aids under
sections 298.28 and 298.282 including any aid which was required
to be placed in a special fund for expenditure in the next
succeeding year, deleted text begin (iv) temporary court aid under section
273.1398, subdivision 4a, deleted text end and deleted text begin (v) deleted text end new text begin (iii) new text end estimated payments to
the local governmental unit under section 272.029, adjusted for
any error in estimation in the preceding year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
taxes levied in 2005, payable in 2006 and thereafter.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 275.71, subdivision 3, is
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
taxes levied in 2005, payable in 2006.
new text end