HF 2477

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; providing for an increase
in the state general levy to fund transit services;
creating a public transit fund; appropriating money;
amending Minnesota Statutes 2004, section 275.025,
subdivisions 1, 4; proposing coding for new law in
Minnesota Statutes, chapter 174.

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

Section 1.

new text begin [174.37] PUBLIC TRANSIT FUND.
new text end

new text begin A public transit fund is created in the state treasury.
The commissioner of finance shall credit to the public transit
fund 11 percent of revenues from the state levy on
commercial-industrial property under section 275.025,
subdivision 1. Money in the fund is appropriated to the
commissioner of transportation. The commissioner may make
expenditures from the fund as follows:
new text end

new text begin (1) 80 percent of money in the fund must be spent by the
commissioner for capital and operating expenses of commuter rail
service and light rail transit facilities, as expenditures of
the department or as grants to the Metropolitan Council; and
new text end

new text begin (2) 20 percent of money in the fund must be spent by the
commissioner as capital and operating assistance to public
transit systems receiving assistance from the commissioner under
section 174.24.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, 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 $682,000 new text end for taxes payable in deleted text begin 2002
deleted text end new text begin 2006 new text end . new text begin The state general levy base amount for seasonal
residential recreational property is $50,000,000 for taxes
payable in 2006. new text end For taxes payable in subsequent years, the
levy base deleted text begin amount is deleted text end new text begin amounts are new text end increased each year by
multiplying the levy base amount for the prior year 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 of the year
prior to the year the taxes are payable. 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 deleted text begin rate deleted text end new text begin levies new text end for a year as necessary to account for
errors and tax base changes that affected a preliminary or final
new text begin levy or new text end 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 270.11, subdivision 2, 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2004, section 275.025,
subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

The new text begin commercial-industrial portion of the new text end state general tax must
be deleted text begin distributed among the counties deleted text end new text begin levied new text end by applying a uniform
rate to deleted text begin each county's deleted text end new text begin all new text end commercial-industrial tax capacity deleted text begin and
its deleted text end new text begin statewide. The seasonal residential recreational portion of
the state general tax must be levied by applying a uniform rate
to all new text end seasonal residential recreational tax
capacity new text begin statewide new text end . deleted text begin Within each county, the tax must be levied
by applying a uniform rate against commercial-industrial tax
capacity and seasonal residential recreational tax capacity. deleted text end On
or before October 1 each year, the commissioner of revenue shall
certify deleted text begin a deleted text end new text begin the new text end preliminary state general levy deleted text begin rate deleted text end new text begin rates on
commercial-industrial property and seasonal residential
recreational property new text end 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.

new text begin EFFECTIVE DATE. new text end

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