HF 3037

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to public finance; altering the school district referendum market value
tax base; modifying the taxation of seasonal recreational property; amending
Minnesota Statutes 2006, sections 126C.01, subdivision 3; 275.025, subdivisions
1, 4; repealing Minnesota Statutes 2006, section 275.025, subdivision 3.

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

Section 1.

Minnesota Statutes 2006, section 126C.01, subdivision 3, is amended to read:

Subd. 3.

Referendum market value.

"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2 deleted text begin , noncommercial
4c(1), or 4c(4) deleted text end under section 273.13. The portion of class 2a property consisting of the
house, garage, and surrounding one acre of land of an agricultural homestead is included
in referendum market value. Any class of property, or any portion of a class of property,
that is included in the definition of referendum market value and that has a class rate of
less than one percent under section 273.13 shall have a referendum market value equal
to its net tax capacity multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property deleted text begin and seasonal residential recreational property, deleted text end as defined
in this section. The state general levy base amount is $592,000,000 for taxes payable in
2002. For taxes payable in subsequent years, the levy base amount is 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 rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
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 deleted text begin or seasonal
residential recreational deleted text end 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 270C.89 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 2009.
new text end

Sec. 3.

Minnesota Statutes 2006, section 275.025, subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

deleted text begin Ninety-five percent of deleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity deleted text begin and five percent of the state general tax must be levied by applying a uniform rate
to all seasonal residential recreational tax capacity deleted text end . On or before October 1 each year, the
commissioner of revenue shall certify the preliminary state general levy deleted text begin rates deleted text end new text begin rate 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 rate 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 2009.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 275.025, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2009.
new text end