HF 2318

as introduced - 87th Legislature (2011 - 2012) Posted on 02/15/2012 02:02pm

A bill for an act
relating to taxation; property; reducing business property taxes; amending
Minnesota Statutes 2010, section 275.025, subdivisions 1, 4.

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

Section 1.

Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount new text begin for commercial-industrial property
new text end is deleted text begin $592,000,000 deleted text end new text begin $739,000,000 new text end for taxes payable in deleted text begin 2002 deleted text end new text begin 2013. The state general
levy base amount for seasonal recreational property is $40,600,000 for taxes payable
in 2013 new text end . For taxes payable in deleted text begin subsequent years deleted text end new text begin 2014 new text end , deleted text begin the deleted text end new text begin each new text end levy base amount
is increased deleted text begin each year deleted text end by multiplying the levy base amount for deleted text begin the prior year deleted text end new text begin taxes
payable in 2013 new text end by the sum of one plus the rate of increase, if any, in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United
States Department of Commerce for the 12-month period ending March 31 deleted text begin of the year
prior to the year the taxes are payable. deleted text end new text begin , 2013. new text end new text begin For taxes payable in 2015 and 2016, the
state general levy is $743,000,000 for commercial-industrial property and $40,500,000
for seasonal residential recreational property. For taxes payable in 2017, the state
general levy is $668,700,000 for commercial-industrial property and $36,450,000
for seasonal residential recreational property. For taxes payable in 2018, the state
general levy is $594,400,000 for commercial-industrial property and $32,400,000
for seasonal residential recreational property. For taxes payable in 2019, the state
general levy is $520,100,000 for commercial-industrial property and $28,350,000
for seasonal residential recreational property. For taxes payable in 2020, the state
general levy is $445,800,000 for commercial-industrial property and $24,300,000
for seasonal residential recreational property. For taxes payable in 2021, the state
general levy is $371,500,000 for commercial-industrial property and $20,250,000
for seasonal residential recreational property. For taxes payable in 2022, the state
general levy is $297,200,000 for commercial-industrial property and $16,200,000 for
seasonal residential recreational property. For taxes payable in 2023, the state general
levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal
residential recreational property. For taxes payable in 2024, the state general levy is
$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential
recreational property. For taxes payable in 2025, the state general levy is $74,300,000
for commercial-industrial property and $4,050,000 for seasonal residential recreational
property. new text end The tax under this section is not treated as a local tax rate under section 469.177
and is not the levy of a governmental unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

Sec. 2.

Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

deleted text begin Ninety-five percent of deleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applying deleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each
year, the commissioner of revenue shall certify the preliminary state general levy rates to
each county auditor that must be used to prepare the notices of proposed property taxes
for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy deleted text begin rate deleted text end new text begin rates new text end to each county auditor that shall be
used in spreading taxes.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective for taxes payable in 2013 and thereafter.
new text end