HF 3632

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

A bill for an act
proposing an amendment to the Minnesota Constitution, article X, section 1,
by adding a section; article XI, sections 4, 6, 7; prohibiting the imposition of
ad valorem taxes.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENTS PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, article X, section 1, will read:
new text end

Section 1.

The power of taxation shall never be surrendered, suspended or contracted
away. Taxes shall be uniform upon the same class of subjects and shall be levied and
collected for public purposes, but public burying grounds, public school houses, public
hospitals, academies, colleges, universities, all seminaries of learning, all churches, church
property, houses of worship, institutions of purely public charity, and public property used
exclusively for any public purpose, shall be exempt from taxation except as provided in
this section. deleted text begin There may be exempted from taxation personal property not exceeding in
value $200 for each household, individual or head of a family, and household goods and
farm machinery as the legislature determines. deleted text end The legislature may authorize municipal
corporations to levy and collect assessments for local improvements upon property
benefited thereby without regard to cash valuation. The legislature by law may define or
limit the property exempt under this section other than churches, houses of worship,
and property solely used for educational purposes by academies, colleges, universities
and seminaries of learning.

new text begin a section shall be added to article X to read:
new text end

new text begin Sec. 9. new text end

new text begin The legislature may not impose an ad valorem tax on real or personal property
nor may it authorize any political subdivision of the state to impose such a tax. This
section does not apply to an ad valorem tax on real or personal property imposed by the
state or a political subdivision of the state to pay certificates of indebtedness, principal,
and interest on bonds or other obligations issued before November 4, 2008, for which ad
valorem property taxes have been pledged for payment.
new text end

new text begin article XI, section 4, will read:
new text end

Sec. 4.

The state may contract public debts for which its full faith, credit and taxing
powers may be pledged at the times and in the manner authorized by law, but only for
the purposes and subject to the conditions stated in section 5. Public debt includes any
obligation payable directly in whole or in part from a tax of state wide application on deleted text begin any
class of property, deleted text end income, transaction or privilege, but does not include any obligation
which is payable from revenues other than taxes.

new text begin article XI, section 6, will read:
new text end

Sec. 6.

As authorized by law certificates of indebtedness may be issued during a
biennium, commencing on July 1 in each odd-numbered year and ending on and including
June 30 in the next odd-numbered year, in anticipation of the collection of taxes levied
for and other revenues appropriated to any fund of the state for expenditure during that
biennium.

No certificates shall be issued in an amount which with interest thereon to maturity,
added to the then outstanding certificates against a fund and interest thereon to maturity,
will exceed the then unexpended balance of all money which will be credited to that
fund during the biennium under existing laws. The maturities of certificates may be
extended by refunding to a date not later than December l of the first full calendar year
following the biennium in which the certificates were issued. If money on hand in any
fund is not sufficient to pay all non-refunding certificates of indebtedness issued on a fund
during any biennium and all certificates refunding the same, plus interest thereon, which
are outstanding on December 1 immediately following the close of the biennium, the
state auditor shall deleted text begin levy upon all taxable property in the state a tax collectible deleted text end new text begin impose an
additional rate on taxable sales and uses made new text end in the ensuing year sufficient to pay the same
on or before December 1 of the ensuing year with interest to the date or dates of payment.

new text begin article XI, section 7, will read:
new text end

Sec. 7.

Public debt other than certificates of indebtedness authorized in section 6 shall
be evidenced by the issuance of bonds of the state. All bonds issued under the provisions
of this section shall mature not more than 20 years from their respective dates of issue and
each law authorizing the issuance of bonds shall distinctly specify the purposes thereof
and the maximum amount of the proceeds authorized to be expended for each purpose. A
separate and special state bond fund shall be maintained on the official books and records.
When the full faith and credit of the state has been pledged for the payment of bonds, the
state auditor shall deleted text begin levy deleted text end new text begin impose new text end each year deleted text begin on all taxable property within the state deleted text end a new text begin state
sales and use new text end tax sufficient with the balance then on hand in the fund to pay all principal
and interest on bonds issued under this section due and to become due within the ensuing
year and to and including July 1 in the second ensuing year. The legislature by law may
appropriate funds from any source to the state bond fund. The amount of money actually
received and on hand pursuant to appropriations prior to the levy of the tax in any year
shall be used to reduce the amount of tax otherwise required to be levied.

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment must be submitted to the people at the 2008 general
election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to prohibit the state or a political
subdivision of the state from imposing an ad valorem tax on real or personal property,
except for a tax imposed to pay bonds or obligations issued before November 4, 2008?
new text end

new text begin Yes ....... new text end

new text begin No ......." new text end