HF 2676

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to metropolitan government; authorizing 
  1.3             municipalities providing replacement transit service 
  1.4             to individually assess a levy for transit and collect 
  1.5             the proceeds; amending Minnesota Statutes 1994, 
  1.6             section 473.388, subdivision 5, and by adding a 
  1.7             subdivision; and 473.466, by adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 473.388, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [OTHER ASSISTANCE.] A city or town receiving 
  1.12  assistance or levying a transit tax under this section may also 
  1.13  receive assistance from the council under section 473.384.  In 
  1.14  applying for assistance under that section an applicant must 
  1.15  describe the portion of the its available local transit funds 
  1.16  which are not obligated to subsidize its replacement transit 
  1.17  service and which the applicant proposes to use to subsidize 
  1.18  additional service.  An applicant which has exhausted its 
  1.19  available local transit funds may use any other local subsidy 
  1.20  funds to complete the required local share.  
  1.21     Sec. 2.  Minnesota Statutes 1994, section 473.388, is 
  1.22  amended by adding a subdivision to read: 
  1.23     Subd. 7.  [LOCAL LEVY OPTION.] (a) A statutory or home rule 
  1.24  charter city or town that is eligible for assistance under this 
  1.25  section, in lieu of receiving the assistance, may levy each year 
  1.26  upon all taxable property within the municipality a transit tax 
  2.1   consisting of an amount that must be used for payment of the 
  2.2   operating and capital expenditures for transit and paratransit 
  2.3   services and to provide for payment of obligations issued by the 
  2.4   municipality for transit purposes. 
  2.5      (b) A maximum of 88 percent of the tax revenues may be 
  2.6   levied by the town or statutory or home rule charter city 
  2.7   providing replacement transit services under this subdivision 
  2.8   with the remainder being levied by the council under section 
  2.9   473.446.  
  2.10     (c) The transit tax revenues derived by the municipality 
  2.11  from the transit tax levied within the municipality may not 
  2.12  exceed: 
  2.13     (1) for taxes levied in 1996, the maximum available local 
  2.14  transit funds for the municipality in 1996 under section 
  2.15  473.446, (i) based on taxes levied in 1995, (ii) calculated as 
  2.16  if the percentage of transit tax revenues for the municipality 
  2.17  were 88 percent instead of 90 percent, and (iii) multiplied by 
  2.18  the market value adjustment ratio as applied to the municipality 
  2.19  only for taxes levied in 1996; and 
  2.20     (2) for taxes levied in 1997 and later years, the maximum 
  2.21  transit taxes that the municipality may have levied in the last 
  2.22  year under this subdivision, multiplied by the market value 
  2.23  adjustment ratio for taxes levied in the current year. 
  2.24  The commissioner of revenue shall certify the municipality's 
  2.25  levy limitation under this subdivision to the municipality by 
  2.26  August 1 of the levy year.  The tax must be extended, spread, 
  2.27  and included as a part of the general taxes for state, county, 
  2.28  and municipal purposes by the county auditor, to be collected 
  2.29  and enforced with them, together with the penalty, interest, and 
  2.30  costs.  As the tax, including any penalties, interest, and 
  2.31  costs, is collected by the county treasurer it must be 
  2.32  accumulated and kept in a separate fund to be known as the 
  2.33  "replacement transit fund."  
  2.34     (d) To enable the municipality to receive revenues 
  2.35  described in clauses (2) and (3) of the definition of "tax 
  2.36  revenues" in section 473.388, subdivision 4, that would 
  3.1   otherwise be lost to it if the municipality's transit tax levy 
  3.2   was not treated as a successor levy to that made by the council 
  3.3   under section 473.446 and that was paid over to the municipality 
  3.4   as financial assistance under 473.385, subdivision 4: 
  3.5      (1) for the council and the municipality's transit taxes 
  3.6   levied in 1996, 88 percent of the council's nondebt spread levy 
  3.7   levied in 1995 and described in clauses (2) and (3) of the 
  3.8   definition of "tax revenues" in section 473.388, subdivision 4, 
  3.9   shall be treated as levied by the municipality, and not the 
  3.10  council, for purposes of section 473F.08, subdivision 3, as its 
  3.11  local tax rate for the preceding levy year; and 
  3.12     (2) for the municipality's transit tax levied in 1996 and 
  3.13  thereafter, treating the municipality's transit tax as levied by 
  3.14  the council for nondebt purposes only under clause (1) of the 
  3.15  definition of "tax revenues" in section 473.388, subdivision 4, 
  3.16  there shall be paid to the municipality instead of the council 
  3.17  88 percent of the revenues described in clause (3) of the 
  3.18  definition of "tax revenues" in section 473.388, subdivision 4. 
  3.19     (e) Any transit taxes levied under this subdivision are not 
  3.20  subject to, or counted towards, any limit hereafter imposed by 
  3.21  law on the levy of taxes upon taxable property within any 
  3.22  municipality unless the law specifically includes the transit 
  3.23  tax. 
  3.24     (f) This subdivision is consistent with the transit 
  3.25  redesign plan.  Eligible municipalities opting to levy the 
  3.26  transit tax under this subdivision shall continue to meet the 
  3.27  regional performance standards established by the council. 
  3.28     (g) Within the designated Americans with Disabilities Act 
  3.29  area, metro mobility remains the obligation of the state. 
  3.30     Sec. 3.  Minnesota Statutes 1994, section 473.466, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 1b.  [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLE 
  3.33  MUNICIPALITIES.] (a) The maximum amount of taxes the council may 
  3.34  levy for general purposes under subdivision 1, paragraph (a), 
  3.35  upon taxable property within a municipality providing 
  3.36  replacement transit service is: 
  4.1      (1) for taxes levied in 1996, an amount which equals the 
  4.2   sum of (1) 12 percent of the tax revenues derived from the taxes 
  4.3   levied upon the taxable property in 1995, and (2) the portion of 
  4.4   any state feathering reimbursement under subdivision 1, 
  4.5   attributable to taxes levied upon the taxable property in 1995 
  4.6   for nondebt purposes, multiplied by the market value adjustment 
  4.7   ratio as applied to only the municipality for taxes levied in 
  4.8   1996; and 
  4.9      (2) for taxes levied in 1997 and later years, the amount of 
  4.10  taxes that the council levied in the last year under this 
  4.11  subdivision, multiplied by the market value adjustment ratio for 
  4.12  taxes levied in the current year. 
  4.13     (b) For purposes of (1) extending on taxable property 
  4.14  located within any municipality providing replacement transit 
  4.15  service its share of the levy made by the council for general 
  4.16  purposes under subdivision 1, clause (a), and (2) calculating 
  4.17  the amount of the levy to be allocated to each county, the 
  4.18  council and the county auditor shall, after 1995, deduct from 
  4.19  the part of the levy that would otherwise be allocated to the 
  4.20  municipality the amount by which that part exceeds the maximum 
  4.21  amount of taxes the council may levy within the municipality 
  4.22  under this subdivision.  After making the deduction, the council 
  4.23  and the county auditor shall reallocate to the taxable property 
  4.24  located within the metropolitan transit taxing district, other 
  4.25  than a municipality providing replacement transit service, the 
  4.26  amount by which the council's tax levy within the municipality 
  4.27  was reduced.  The council shall notify the county auditor no 
  4.28  later than October 1 of each year of the amount of the deduction 
  4.29  for each municipality providing replacement transit service 
  4.30  located in the county.  
  4.31     (c) For purposes of this subdivision: 
  4.32     (1) "municipality" means a municipality providing 
  4.33  replacement transit service under section 473.388; 
  4.34     (2) "market value adjustment ratio" means the index for 
  4.35  market valuation changes described in section 473.446, as 
  4.36  applied to the municipalities; and 
  5.1      (3) "tax revenues" has the meaning given the term in 
  5.2   section 473.388, subdivision 4.