HF 2453

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:22pm

A bill for an act
relating to taxation; minerals; modifying the distribution of the proceeds of
production taxes on taconite and iron sulphides and merchantable iron ore
concentrate produced therefrom; amending Minnesota Statutes 2014, section
298.28, subdivision 3.

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

Section 1.

Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:

Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton, less any amount distributed
under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
account to be distributed as provided in section 298.282.

(b) An amount must be allocated to towns or cities that is annually certified by
the county auditor of a county containing a taconite tax relief area as defined in section
273.134, paragraph (b), within which there is (1) an organized township if, as of January
2, 1982, more than 75 percent of the assessed valuation of the township consists of iron
ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
of the city consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or
city's certified levy equal to the proportion of (1) the difference between 50 percent of
January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
1980, assessed value in the case of a city and its current assessed value to (2) the sum of
its current assessed value plus the difference determined in (1), provided that the amount
distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
the case of a city. For purposes of this limitation, population will be determined according
to the 1980 decennial census conducted by the United States Bureau of the Census. If the
current assessed value of the township exceeds 50 percent of the township's January 2,
1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
means the appropriate net tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, deleted text begin three deleted text end new text begin 3.25 new text end cents per
taxable ton for distributions in deleted text begin 2009 deleted text end new text begin 2017 and subsequent years new text end must be allocated for
distribution to new text begin (1) new text end towns that are entirely located within the taconite tax relief area
defined in section 273.134, paragraph (b) new text begin ; and (2) the following unorganized territories
in St. Louis County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19 new text end . For deleted text begin distribution in
2010 through 2014 and for distribution deleted text end new text begin distributions new text end in 2018 and subsequent years, the
deleted text begin three-cent deleted text end new text begin 3.25-cent new text end amount must be annually increased in the same proportion as the
increase in the implicit price deflator as provided in section 298.24, subdivision 1. The
amount available under this paragraph deleted text begin will deleted text end new text begin must new text end be distributed to eligible towns new text begin and
eligible unorganized territories new text end on a per capita basis, provided that no town new text begin or unorganized
territory new text end may receive more than $50,000 in any year under this paragraph. Any amount of
the distribution that exceeds the $50,000 limitation for a town new text begin or unorganized territory
new text end under this paragraph must be redistributed on a per capita basis among the other eligible
towns new text begin and eligible unorganized territories new text end , to whose distributions do not exceed $50,000.
new text begin The amount available to unorganized territories in St. Louis County may be held by the
county and combined for public infrastructure projects.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning in 2017.
new text end