HF 3037

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2014 02:45pm

A bill for an act
relating to taxation; property; reducing the class rate for the disparity reduction
credit; amending Minnesota Statutes 2013 Supplement, section 273.1398,
subdivision 4.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4,
is amended to read:

Subd. 4.

Disparity reduction credit.

(a) deleted text begin Beginning with taxes payable in 1989,
deleted text end Class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
is located in a border city that has an enterprise zone, as defined in section 469.166; (2)
the property is located in a city with a population greater than 2,500 and less than 35,000
according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
in the other state has a population of greater than 5,000 and less than 75,000 according to
the 1980 decennial census.

(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
property to deleted text begin 1.9 deleted text end new text begin 1.5 new text end percent of the property's taxable market value and (ii) the tax on class
3a property to deleted text begin 1.9 deleted text end new text begin 1.5 new text end percent of taxable market value.

(c) The county auditor shall annually certify the costs of the credits to the
Department of Revenue. The department shall reimburse local governments for the
property taxes forgone as the result of the credits in proportion to their total levies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2015.
new text end