Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2336

as introduced - 87th Legislature (2011 - 2012) Posted on 02/16/2012 01:14pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/16/2012

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9
1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32
2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7
3.8 3.9
3.10 3.11
3.12 3.13 3.14
3.15 3.16 3.17 3.18 3.19 3.20
3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24
4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7
5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19
5.20 5.21 5.22 5.23 5.24
5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2 6.3
6.4 6.5

A bill for an act
relating to job creation; reducing business property taxes; creating a small
business regulatory review board; imposing a moratorium on rulemaking by state
agencies except in certain specified instances; amending Minnesota Statutes
2010, section 275.025, subdivisions 1, 4; proposing coding for new law in
Minnesota Statutes, chapter 14.

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

ARTICLE 1

BUSINESS PROPERTY TAXATION

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 $592,000,000deleted text end new text begin $739,000,000new text end for taxes payable in deleted text begin 2002deleted 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 yearsdeleted text end new text begin 2014new text end , deleted text begin thedeleted text end new text begin eachnew text end levy base amount
is increased deleted text begin each yeardeleted text end by multiplying the levy base amount for deleted text begin the prior yeardeleted 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 payabledeleted 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 ofdeleted 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 applyingdeleted 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 ratedeleted text end new text begin ratesnew 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

ARTICLE 2

REGULATORY REFORM

Section 1.

new text begin [14.129] CITATION.
new text end

new text begin Sections 14.1291 to 14.1295 shall be cited as the "Small Business Regulatory Relief
Act."
new text end

Sec. 2.

new text begin [14.1291] CREATION AND PURPOSE.
new text end

new text begin The Small Business Regulatory Review Board is created in the legislative branch to:
new text end

new text begin (1) review proposed rules or revisions to existing rules to determine the impact of
the proposal or revision on small businesses; and
new text end

new text begin (2) examine existing rules that impact small businesses and recommend any changes
that would make existing rules more efficient and cost-effective for small businesses.
new text end

Sec. 3.

new text begin [14.1292] SMALL BUSINESS REGULATORY REVIEW BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this act, "small business" has the
meaning given in section 645.445.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Small Business Regulatory Review Board, known
as the board, consists of 16 members including:
new text end

new text begin (1) the commissioner of the Department of Employment and Economic
Development, or the commissioner's designee;
new text end

new text begin (2) the commissioner of the Department of Commerce, or the commissioner's
designee;
new text end

new text begin (3) the commissioner of the Department of Revenue, or the commissioner's designee;
new text end

new text begin (4) the commissioner of the Department of Health, or the commissioner's designee;
new text end

new text begin (5) the commissioner of the Department of Natural Resources, or the commissioner's
designee;
new text end

new text begin (6) the commissioner of the Pollution Control Agency, or the commissioner's
designee;
new text end

new text begin (7) three public members appointed by the speaker of the house of representatives;
new text end

new text begin (8) three public members appointed by the senate Subcommittee on Committees of
the Committee on Rules and Administration;
new text end

new text begin (9) two members of the senate appointed by the senate Subcommittee on Committees
of the Committee on Rules and Administration; and
new text end

new text begin (10) two members of the house of representatives appointed by the speaker of the
house of representatives.
new text end

new text begin (b) Legislative members appointed to the board shall include the chairs of the
legislative committees with jurisdiction over jobs and economic development or their
designee, one member from the minority party of the senate, and one member from the
minority party of the house of representatives.
new text end

new text begin (c) Public members shall be representatives of small businesses, as either an owner
of a small business or as a member of a small business trade organization.
new text end

new text begin (d) The first meeting of the board shall be convened by the chair of the Legislative
Coordinating Commission no later than December 1, 2012. Members shall elect a chair.
The chair may convene meetings as necessary to conduct the duties prescribed by sections
14.1291 to 14.1295.
new text end

new text begin Subd. 3. new text end

new text begin Terms, compensation, removal, and vacancies. new text end

new text begin The membership terms,
compensation, and removal of board members, and filling of vacancies on the board
are governed by section 15.0575.
new text end

Sec. 4.

new text begin [14.1293] BOARD REVIEW; REPORT AND RECOMMENDATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Board review. new text end

new text begin (a) The board shall review all rules submitted to the
board as required under sections 14.1294 and 14.1295, to determine whether a proposed
or existing rule creates an unnecessary burden on small businesses.
new text end

new text begin (b) When the board determines that a proposed or existing rule places an unnecessary
burden on small businesses, it shall issue a report and recommendations regarding the
rule to:
new text end

new text begin (1) the agency with jurisdictional authority of the proposed or existing rule;
new text end

new text begin (2) the chairs of the house of representatives and senate committees having
jurisdiction over the agency; and
new text end

new text begin (3) the Legislative Coordinating Commission, as necessary, to carry out the
provisions of section 3.842.
new text end

new text begin Subd. 2. new text end

new text begin Rule adoption. new text end

new text begin The standing committees of the house of representatives
and senate with jurisdiction over the subject matter of a proposed rule may follow
the procedures set forth under section 14.126 when, upon review of the report and
recommendations from the board, the committees vote that a proposed rule should not
be adopted as proposed.
new text end

Sec. 5.

new text begin [14.1294] IMPACT ON SMALL BUSINESSES.
new text end

new text begin (a) An agency proposing a new rule, or an amendment to an existing rule, affecting
small businesses shall:
new text end

new text begin (1) consider methods for reducing the impact of the rule on small businesses
including, but not limited to, less stringent reporting requirements, reduced fees,
simplification of compliance, or exemption for small businesses from any or all
requirements of the rule; and
new text end

new text begin (2) submit a proposed rule having an economic impact on small businesses to the
board on the same day the proposed rule is submitted for publication in the State Register.
new text end

new text begin (b) An agency submitting a rule to the board shall include, along with the rule, a
statement detailing the considerations made for lessening the impact of the rule on small
businesses.
new text end

Sec. 6.

new text begin [14.1295] REVIEW OF RULES.
new text end

new text begin Beginning in 2012, each agency shall annually review the current rules of the agency
and shall consider methods of reducing their impact on small businesses as provided under
section 14.1294. If a method appears feasible, the agency shall propose an amendment to
the rule, and submit the proposal to the board for consideration.
new text end

Sec. 7. new text begin RULEMAKING MORATORIUM.
new text end

new text begin (a) For purposes of this section, "agency" has the meaning given in Minnesota
Statutes, section 14.02, subdivision 2.
new text end

new text begin (b) No agency shall conduct rulemaking or adopt rules for the two-year period
beginning July 1, 2012, and ending June 30, 2014, except under the following
circumstances:
new text end

new text begin (1) to implement a federal law;
new text end

new text begin (2) in relation to a declared state of emergency;
new text end

new text begin (3) to respond to an emergency relating to public health or safety;
new text end

new text begin (4) as enacted by the legislature; or
new text end

new text begin (5) to facilitate commerce.
new text end

new text begin (c) This section does not prohibit an agency from repealing rules.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective the day following final enactment.
new text end