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HF 3048

as introduced - 90th Legislature (2017 - 2018) Posted on 02/26/2018 02:28pm

KEY: stricken = removed, old language.
underscored = added, new language.
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3.1

A bill for an act
relating to education finance; increasing equalization levels for school district
referendum levies, local optional levies, and debt service levies; amending
Minnesota Statutes 2016, sections 123B.53, subdivision 5; 126C.10, subdivision
2e; 126C.17, subdivision 6.

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

Section 1.

Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a district
equals the sum of the first tier equalized debt service levy and the second tier equalized debt
service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, anddeleted text end the greater of $4,430 or
55.33 percent of the initial equalizing factor in fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2018new text begin and 2019, and …
percent of the initial equalizing factor in fiscal year 2020
new text end and later.

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
year before the year the levy is certified by the adjusted pupil units in the district for the
school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $8,000 in fiscal years 2016 and 2017, anddeleted text end the greater of $8,000 or 100 percent of
the initial equalizing factor in fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2018 and new text begin 2019, and … percent of the initial
equalizing factor in fiscal year 2020 and
new text end later.

(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient
derived by dividing the total adjusted net tax capacity of all school districts in the state for
the year before the year the levy is certified by the total number of adjusted pupil units in
all school districts in the state in the year before the year the levy is certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies payable in 2019 and later.
new text end

Sec. 2.

Minnesota Statutes 2016, section 126C.10, subdivision 2e, is amended to read:


Subd. 2e.

Local optional revenue.

(a) Local optional revenue for a school district equals
$424 times the adjusted pupil units of the district for that school year.

(b) A district's local optional levy equals its local optional revenue times the lesser of
one or the ratio of its referendum market value per resident pupil unit to deleted text begin $510,000deleted text end new text begin $.......new text end .
The local optional revenue levy must be spread on referendum market value. A district may
levy less than the permitted amount.

(c) A district's local optional aid equals its local optional revenue less its local optional
levy, times the ratio of the actual amount levied to the permitted levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies payable in 2019 and later.
new text end

Sec. 3.

Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) A district's referendum equalization levy
equals the sum of the first tier referendum equalization levy, the second tier referendum
equalization levy, and the third tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $880,000deleted text end new text begin $.......new text end .

(c) A district's second tier referendum equalization levy equals the district's second tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $510,000deleted text end new text begin $.......new text end .

(d) A district's third tier referendum equalization levy equals the district's third tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin $290,000deleted text end new text begin $.......new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies payable in 2019 and later.
new text end