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HF 2905

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/22/2023 10:58am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; property; modifying provisions for the supplemental
information required in the truth in taxation notice; amending Minnesota Statutes
2022, section 275.065, subdivisions 3, 3b, 4.

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

Section 1.

Minnesota Statutes 2022, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, metropolitan taxing
districts as defined in paragraph (i), and fire protection and emergency medical services
special taxing districts established under section 144F.01, the time and place of a meeting
for each taxing authority in which the budget and levy will be discussed and public input
allowed, prior to the final budget and levy determination. The taxing authorities must provide
the county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide anew text begin website address and anew text end telephone number for the taxing authority that taxpayers
may call if they have questions related to the notice and an address where comments will
be received by mail, except that no notice required under this section shall be interpreted
as requiring the printing of a personal telephone number or address as the contact information
for a taxing authority. If a taxing authority does not maintainnew text begin a website ornew text end public offices
where telephone calls can be received by the authority, the authority may inform the county
of the lack of a publicnew text begin website ornew text end telephone number and the county shall not list anew text begin website
or
new text end telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387, voter approved school levy, other local school levy, and the
sum of the special taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 275.065, subdivision 3b, is amended to read:


Subd. 3b.

Notice of proposed property taxes required supplemental information.

deleted text begin (a)deleted text end
The county auditor must prepare deleted text begin a separate statementdeleted text end new text begin supplemental informationnew text end to be
delivered with the notice of proposed taxes described in subdivision 3. The deleted text begin statementdeleted text end new text begin
information
new text end must fit on one sheet of paper and contain deleted text begin for each parceldeleted text end :

deleted text begin (1)deleted text end for the county, deleted text begin city or township,deleted text end new text begin all home rule charter or statutory citiesnew text end and school
deleted text begin district in which the parcel liesdeleted text end new text begin districts within the countynew text end , the certified levy for the current
taxes payable year, the proposed levy for taxes payable in the following year, and the increase
or decrease between these two amounts, expressed as a percentagedeleted text begin ;deleted text end andnew text begin each listed separately.
new text end

deleted text begin (2) summary budget information listed in paragraph (b).
deleted text end

deleted text begin (b) Summary budget information must contain budget data from the county, city, and
school district that proposes a property tax levy on the parcel for taxes payable the following
year. For the school district, the summary budget data must include the information provided
to the public under section 123B.10, subdivision 1, paragraph (b), for the current year and
prior year. For the county and city, the reported summary budget data must contain the same
information, in the same categories, and in the same format as provided to the Office of the
State Auditor as required by section 6.745. The statement must provide the governmental
revenues and current expenditures information in clauses (1) and (2) for the taxing authority's
budget for taxes payable the following year and the taxing authority's budget from taxes
payable in the current year, as well as the percent change between the two years. The city
must provide the county auditor with the summary budget data at the same time as the
information required under subdivision 3. Only cities with a population of at least 500 are
required to report the data described in this paragraph. If a city with a population over 500
fails to report the required information to the county auditor, the county auditor must list
the city as "budget information not reported" on the portion of the statement dedicated to
the city's budget information. The statement may take the same format as the annual summary
budget report for cities and counties issued by the Office of the State Auditor. The summary
budget data must include:
deleted text end

deleted text begin (1) a governmental revenues category, including and separately stating:
deleted text end

deleted text begin (i) "property taxes" defined as property taxes levied on an assessed valuation of real
property and personal property, if applicable, by the city and county, including fiscal
disparities;
deleted text end

deleted text begin (ii) "special assessments" defined as levies made against certain properties to defray all
or part of the costs of a specific improvement, such as new sewer and water mains, deemed
to benefit primarily those properties;
deleted text end

deleted text begin (iii) "state general purpose aid" defined as aid received from the state that has no
restrictions on its use, including local government aid, county program aid, and market
value credits; and
deleted text end

deleted text begin (iv) "state categorical aid" defined as revenues received for a specific purpose, such as
streets and highways, fire relief, and flood control, including but not limited to police and
fire state aid and out-of-home placement aid; and
deleted text end

deleted text begin (2) a current expenditures category, including and separately stating:
deleted text end

deleted text begin (i) "general government" defined as administration costs of city or county governments,
including salaries of officials and maintenance of buildings;
deleted text end

deleted text begin (ii) "public safety" defined as costs related to the protection of persons and property,
such as police, fire, ambulance services, building inspections, animal control, and flood
control;
deleted text end

deleted text begin (iii) "streets and highways" defined as costs associated with the maintenance and repair
of local highways, streets, bridges, and street equipment, such as patching, seal coating,
street lighting, street cleaning, and snow removal;
deleted text end

deleted text begin (iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed
and pest control;
deleted text end

deleted text begin (v) "human services" defined as activities designed to provide public assistance and
institutional care for individuals economically unable to provide for themselves;
deleted text end

deleted text begin (vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection,
communicable disease control, and various health services and clinics;
deleted text end

deleted text begin (vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing,
planting, removal of trees, festivals, bands, museums, community centers, cable television,
baseball fields, and organized recreation activities;
deleted text end

deleted text begin (viii) "conservation of natural resources" defined as the conservation and development
of natural resources, including agricultural and forestry programs and services, weed
inspection services, and soil and water conservation services;
deleted text end

deleted text begin (ix) "economic development and housing" defined as costs for development and
redevelopment activities in blighted or otherwise economically disadvantaged areas, including
low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and
other physical facilities, and other assistance to those wanting to provide housing and
economic opportunity within a disadvantaged area; and
deleted text end

deleted text begin (x) "all other current expenditures" defined as costs not classified elsewhere, such as
airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs,
and public transportation costs.
deleted text end

deleted text begin (c) If a taxing authority reporting this data does not have revenues or expenditures in a
category listed in paragraph (b), then the taxing authority must designate the amount as "0"
for that specific category.
deleted text end

deleted text begin (d)deleted text end The supplemental deleted text begin statementdeleted text end new text begin informationnew text end provided under this subdivision must be
sent in electronic form or by email if the taxpayer requests an electronic version of the notice
of proposed property taxes under subdivision 3, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 275.065, subdivision 4, is amended to read:


Subd. 4.

Costs.

If the reasonable cost of the county auditor's services and the cost of
preparing and mailing the notice required in this section exceed the amount distributed to
the county by the commissioner of revenue to administer this section,new text begin the county may requirenew text end
the taxing authority deleted text begin mustdeleted text end new text begin tonew text end reimburse the county for the excess cost. The excess cost must
be apportioned between taxing jurisdictions as follows:

(1) one-third is allocated to the county;

(2) one-third is allocated to cities and towns within the county; and

(3) one-third is allocated to school districts within the county.

The amounts in clause (2) must be further apportioned among the cities and towns in
the proportion that the number of parcels in the city and town bears to the number of parcels
in all the cities and towns within the county. The amount in clause (3) must be further
apportioned among the school districts in the proportion that the number of parcels in the
school district bears to the number of parcels in all school districts within the county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2024.
new text end