HF 3181

as introduced - 86th Legislature (2009 - 2010) Posted on 02/25/2010 08:42am

A bill for an act
relating to local government; providing for city payments to towns following
annexation; amending Minnesota Statutes 2008, section 414.036.

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

Section 1.

Minnesota Statutes 2008, section 414.036, is amended to read:

414.036 CITY REIMBURSEMENT TO TOWN TO ANNEX TAXABLE
PROPERTY.

new text begin Subdivision 1. new text end

new text begin Orderly annexation. new text end

deleted text begin Unless otherwise agreed to by the annexing
municipality and the affected town, deleted text end When an order or other approval under deleted text begin this chapter deleted text end new text begin
section 414.0325 new text end annexes part of a town to a municipality, the order or other approval
must provide a reimbursement from the municipality to the town for all or part of the
taxable property annexed new text begin at the town tax rate at the time of annexation new text end as part of the
order. The reimbursement shall be completed in substantially equal payments over not
less than two nor more than eight years from the time of annexation new text begin and shall not equal
more than eight years' worth of property taxes new text end . The municipality must reimburse the
township for all special assessments assigned by the township to the annexed property new text begin
that are received by the municipality new text end , and any portion of debt incurred by the town prior
to the annexation and attributable to the property to be annexed but for which no special
assessments are outstanding, new text begin provided the town makes a written request and includes
supporting documentation to the municipality within 60 days of the order. Reimbursement
for debt attributable to the annexed property must either be paid by the municipality new text end in
substantially equal payments over a period of not less than two or no more than eight years new text begin
or upon the same terms as the debt was incurred by the town. Reimbursement for special
assessments must be paid to the town within 30 days of receipt of assessment payments
by the municipality from the county or property owner new text end .

new text begin Subd. 2. new text end

new text begin Annexation by ordinance. new text end

new text begin When a municipality adopts an ordinance
under section 414.033, annexing part of a town to a municipality, the ordinance must
provide a reimbursement from the municipality to the town for the loss of taxes from the
property annexed for the period and in accordance with the following schedule:
new text end

new text begin (1) in the first levy year following the year when the annexing municipality could
first levy on the annexed area, the municipality must make a cash payment to the affected
town in an amount equal to 90 percent of the property taxes distributed to the town
in regard to the annexed area in the last year the property taxes from the annexed area
were payable to the town;
new text end

new text begin (2) in the second year, an amount equal to 80 percent;
new text end

new text begin (3) in the third year, an amount equal to 60 percent;
new text end

new text begin (4) in the fourth year, an amount equal to 40 percent; and
new text end

new text begin (5) in the fifth and final year, an amount equal to 20 percent.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursements exclusive. new text end

new text begin The reimbursements authorized in this
section are the only payments or consideration that can be made by a municipality to a
town under this chapter.
new text end