HF 2427

as introduced - 89th Legislature (2015 - 2016) Posted on 05/10/2016 08:14am

A bill for an act
relating to taxation; property; reducing the fiscal disparities contribution
percentage for certain cities in the metropolitan area; appropriating money;
amending Minnesota Statutes 2014, sections 473F.07, subdivision 1; 473F.08,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 473F.

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

Section 1.

Minnesota Statutes 2014, section 473F.07, subdivision 1, is amended to read:

Subdivision 1.

new text begin Contribution net tax capacity; new text end areawide net tax capacity.

new text begin (a)
new text end Each county auditor shall new text begin determine each municipality's contribution net tax capacity as
30 percent of the amount determined under section 473F.06 for cities with a population
of less than 15,000, or 40 percent of the amount determined under section 473F.06 for
all other municipalities. The auditor must new text end certify new text begin each municipality's contribution net tax
capacity and new text end the determinations under sections 473F.05 and 473F.06 to the administrative
auditor on or before August 1 of each year.

new text begin (b) new text end The administrative auditor shall determine an amount equal to 40 percent of the
sum of the amounts certified under section 473F.06. The resulting amount shall be known
as the "areawide net tax capacity for ........(year)."

new text begin (c) The administrative auditor must determine the state's contribution net tax capacity
as the difference between the areawide net tax capacity and the sum of the contribution net
tax capacity amounts for all municipalities determined under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, section 473F.08, subdivision 2, is amended to read:

Subd. 2.

Computation of net tax capacity.

The net tax capacity of a governmental
unit is its net tax capacity, as determined in accordance with other provisions of law
including section 469.177, subdivision 3, subject to the following adjustments:

(a) There shall be subtracted from its net tax capacity, in each municipality in which
the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears the
same proportion to deleted text begin 40 percent of the amount certified in that year under sections 473F.06
and 473F.07 for the municipality deleted text end new text begin the municipality's contribution net tax capacity new text end as the
total preceding year's net tax capacity of commercial-industrial property which is subject
to the taxing jurisdiction of the governmental unit within the municipality, determined
without regard to section 469.177, subdivision 3, bears to the total preceding year's net tax
capacity of commercial-industrial property within the municipality, determined without
regard to section 469.177, subdivision 3;

(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to the areawide net tax capacity for the year attributable to that
municipality as the total preceding year's net tax capacity of residential property which is
subject to the taxing jurisdiction of the governmental unit within the municipality bears to
the total preceding year's net tax capacity of residential property of the municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
new text end

Sec. 3.

new text begin [473F.14] STATE OF MINNESOTA PAYMENT.
new text end

new text begin (a) The administrative auditor must determine the state's fiscal disparities payment
by multiplying the state's contribution net tax capacity determined under section 473F.07,
subdivision 1, by the areawide tax rate determined under section 473F.08, subdivision 5.
By November 1 of each year, the administrative auditor must notify the commissioner
of revenue of the state's fiscal disparities payment for taxes payable in the following
calendar year.
new text end

new text begin (b) The commissioner of revenue must submit the payment certified under paragraph
(a) to the administrative auditor in two equal installments, on June 1 and November 1 each
year. A sum sufficient to meet the obligations under this section is annually appropriated
from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
new text end