HF 2457

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, sections 275.70, subdivision 5; 275.71,
subdivisions 2, 4, 5; repealing Minnesota Statutes
2004, section 275.71, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 275.70,
subdivision 5, is amended to read:

Subd. 5.

Special levies.

"Special levies" means those
portions of ad valorem taxes levied by a local governmental unit
for the following purposes or in the following manner:

(1) to pay the costs of the principal and interest on
bonded indebtedness deleted text begin or to reimburse for the amount of liquor
store revenues used to pay the principal and interest due on
municipal liquor store bonds in the year preceding the year for
which the levy limit is calculated deleted text end ;

(2) to pay the costs of principal and interest on
certificates of indebtedness issued for any corporate purpose
except for the following:

(i) tax anticipation or aid anticipation certificates of
indebtedness;

(ii) certificates of indebtedness issued under sections
298.28 and 298.282;

(iii) certificates of indebtedness used to fund current
expenses or to pay the costs of extraordinary expenditures that
result from a public emergency; or

(iv) certificates of indebtedness used to fund an
insufficiency in tax receipts or an insufficiency in other
revenue sources;

(3) to provide for the bonded indebtedness portion of
payments made to another political subdivision of the state of
Minnesota;

(4) to fund payments made to the Minnesota State Armory
Building Commission under section 193.145, subdivision 2, to
retire the principal and interest on armory construction
bonds; new text begin and
new text end

(5) property taxes approved by voters which are levied
against the referendum market value as provided under section
275.61 deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (6) to fund matching requirements needed to qualify for
federal or state grants or programs to the extent that either
(i) the matching requirement exceeds the matching requirement in
calendar year 2001, or (ii) it is a new matching requirement
that did not exist prior to 2002;
deleted text end

deleted text begin (7) to pay the expenses reasonably and necessarily incurred
in preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes, in accordance with standards formulated by the
Emergency Services Division of the state Department of Public
Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;
deleted text end

deleted text begin (8) pay amounts required to correct an error in the levy
certified to the county auditor by a city or county in a levy
year, but only to the extent that when added to the preceding
year's levy it is not in excess of an applicable statutory,
special law or charter limitation, or the limitation imposed on
the governmental subdivision by sections 275.70 to 275.74 in the
preceding levy year;
deleted text end

deleted text begin (9) to pay an abatement under section 469.1815;
deleted text end

deleted text begin (10) to pay any costs attributable to increases in the
employer contribution rates under chapter 353 that are effective
after June 30, 2001;
deleted text end

deleted text begin (11) to pay the operating or maintenance costs of a county
jail as authorized in section 641.01 or 641.262, or of a
correctional facility as defined in section 241.021, subdivision
1, paragraph (f), to the extent that the county can demonstrate
to the commissioner of revenue that the amount has been included
in the county budget as a direct result of a rule, minimum
requirement, minimum standard, or directive of the Department of
Corrections, or to pay the operating or maintenance costs of a
regional jail as authorized in section 641.262. For purposes of
this clause, a district court order is not a rule, minimum
requirement, minimum standard, or directive of the Department of
Corrections. If the county utilizes this special levy, except
to pay operating or maintenance costs of a new regional jail
facility under sections 641.262 to 641.264 which will not
replace an existing jail facility, any amount levied by the
county in the previous levy year for the purposes specified
under this clause and included in the county's previous year's
levy limitation computed under section 275.71, shall be deducted
from the levy limit base under section 275.71, subdivision 2,
when determining the county's current year levy limitation. The
county shall provide the necessary information to the
commissioner of revenue for making this determination;
deleted text end

deleted text begin (12) to pay for operation of a lake improvement district,
as authorized under section 103B.555. If the county utilizes
this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause
and included in the county's previous year's levy limitation
computed under section 275.71 shall be deducted from the levy
limit base under section 275.71, subdivision 2, when determining
the county's current year levy limitation. The county shall
provide the necessary information to the commissioner of revenue
for making this determination;
deleted text end

deleted text begin (13) to repay a state or federal loan used to fund the
direct or indirect required spending by the local government due
to a state or federal transportation project or other state or
federal capital project. This authority may only be used if the
project is not a local government initiative;
deleted text end

deleted text begin (14) to pay for court administration costs as required
under section 273.1398, subdivision 4b, less the (i) county's
share of transferred fines and fees collected by the district
courts in the county for calendar year 2001 and (ii) the aid
amount certified to be paid to the county in 2004 under section
273.1398, subdivision 4c; however, for taxes levied to pay for
these costs in the year in which the court financing is
transferred to the state, the amount under this clause is
limited to the amount of aid the county is certified to receive
under section 273.1398, subdivision 4a; and
deleted text end

deleted text begin (15) to fund a police or firefighters relief association as
required under section 69.77 to the extent that the required
amount exceeds the amount levied for this purpose in 2001.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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 levied 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 for taxes
levied in 2005, payable in 2006 and thereafter.
new text end

Sec. 3.

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

Subd. 4.

Adjusted levy limit base.

(a) 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 increased by 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 multiplied by one plus the percent change in the number of
households in the political subdivision for the most recent
12-month period for which data is available new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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 for taxes
levied in 2005, payable in 2006 and thereafter.
new text end

Sec. 5. 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 for taxes
levied in 2005, payable in 2006.
new text end