HF 3801

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2018 11:51am

A bill for an act
relating to taxation; authorizing municipalities to enter into a fire district; amending
Minnesota Statutes 2016, section 275.066; proposing coding for new law in
Minnesota Statutes, chapter 471.

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

Section 1.

Minnesota Statutes 2016, section 275.066, is amended to read:

275.066 SPECIAL TAXING DISTRICTS; DEFINITION.

For the purposes of property taxation and property tax state aids, the term "special taxing
districts" includes the following entities:

(1) watershed districts under chapter 103D;

(2) sanitary districts under sections 442A.01 to 442A.29;

(3) regional sanitary sewer districts under sections 115.61 to 115.67;

(4) regional public library districts under section 134.201;

(5) park districts under chapter 398;

(6) regional railroad authorities under chapter 398A;

(7) hospital districts under sections 447.31 to 447.38;

(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;

(9) Duluth Transit Authority under sections 458A.21 to 458A.37;

(10) regional development commissions under sections 462.381 to 462.398;

(11) housing and redevelopment authorities under sections 469.001 to 469.047;

(12) port authorities under sections 469.048 to 469.068;

(13) economic development authorities under sections 469.090 to 469.1081;

(14) Metropolitan Council under sections 473.123 to 473.549;

(15) Metropolitan Airports Commission under sections 473.601 to 473.679;

(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;

(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
437, section 1;

(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;

(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
1 to 6;

(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
section 39;

(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;

(22) emergency medical services special taxing districts under section 144F.01;

(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;

(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;

(25) an airport authority created under section 360.0426; deleted text begin and
deleted text end

new text begin (26) fire districts under section 471.632; and
new text end

deleted text begin (26) deleted text end new text begin (27) new text end any other political subdivision of the state of Minnesota, excluding counties,
school districts, cities, and towns, that has the power to adopt and certify a property tax levy
to the county auditor, as determined by the commissioner of revenue.

Sec. 2.

new text begin [471.632] FIRE DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement. new text end

new text begin Two or more towns or home rule charter or statutory cities
may by resolution of their respective city councils and town boards establish a fire district
for the provision of cooperative fire services. Each city or town may provide that only a
described part of its territory be included in the district. The district shall provide fire
protection services in its territory and may exercise all the powers of the cities or towns that
relate to fire protection anywhere in its territory. Any other contiguous town or home rule
charter or statutory city may join the district with the agreement of the cities and towns that
comprise the district at the time of its application to join. Action to join the district may be
taken by the city council or town board of the city or town.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin The district shall be governed by a board composed of one member
appointed by the city council or town board of each city and town in the district, whether
partially or wholly. A district board member may, but is not required to be, a member of a
city council or town board. Except as provided in this section, members shall serve two-year
terms ending the first Monday in January and until their successors are appointed and
qualified. Of the members first appointed, as far as possible, the terms of one-half shall
expire on the first Monday in January in the first year following their appointment and
one-half the first Monday in January in the second year. The terms of those initially appointed
shall be determined by lot. If an additional member is added because an additional city or
town joins the district, the member's term shall be fixed so that, as far as possible, the terms
of one-half of all the members expire on the same date.
new text end

new text begin Subd. 3. new text end

new text begin Tax. new text end

new text begin (a) The district may impose a property tax on real property in the district
in an amount sufficient to discharge its operating expenses and debt payable in each year.
The tax shall be disregarded in the calculation of any levies or limits on levies provided by
chapter 275 or other law. A city or town that joins the district may not incur expenses or
debt for fire protection services for territory included in the district and may not impose
taxes for that purpose. The applicable county auditor or county auditors shall collect the tax
and pay it to the district. The district may impose other fees or charges as allowed under
statute for the provision of fire services provided.
new text end

new text begin (b) The district may also issue certificates of indebtedness subject to debt limits for the
district to purchase capital equipment having an expected useful life at least as long as the
terms of the certificates. The certificates must be payable in not more than five years and
must be issued on the terms and in the manner determined by the board. Before issuing
certificates in an amount exceeding 0.25 percent of the estimated market value of taxable
property of the district, the board shall publish a resolution indicating its intent to issue the
certificates in a newspaper of general circulation in the district. The certificates may be
issued without an election unless, within ten days of the publication, a petition signed by
the sum of at least ten percent of the voters in the member towns voting in the last regular
town election and ten percent of the voters of the city voting in the last city general election
requesting an election on issuance of the certificates is filed with the board. If a petition is
filed, the certificates may not be issued unless issuance of the certificates is approved by a
majority of the voters at a general or special election in which all the residents of the city
and member towns are eligible to vote. A tax levy shall be made against all property in the
district to pay the principal and interest on the certificates, in accordance with section 475.61,
as in the case of bonds.
new text end

new text begin Subd. 4. new text end

new text begin Indebtedness. new text end

new text begin The district may incur debt in the manner provided for a
municipality by chapter 475 when necessary to accomplish its duties.
new text end

new text begin Subd. 5. new text end

new text begin Withdrawal. new text end

new text begin Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of 12 months' notice of intent
to withdraw. The district and its members may develop and agree upon certain continuing
obligations after withdrawal.
new text end