HF 4108

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; requiring payments to compensate taxing
jurisdictions for a decrease in tax base when real property is acquired by a
political subdivision and becomes exempt; proposing coding for new law in
Minnesota Statutes, chapter 273.

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

Section 1.

new text begin [273.1387] TRANSITION PAYMENTS FOR PROPERTY TAX BASE
LOSS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "State" means a state agency, board, commission, or authority.
new text end

new text begin (c) "Political subdivision" means the metropolitan council or a metropolitan agency,
county, statutory or home rule charter city, township, school district, or any other political
subdivision with the authority to acquire real property.
new text end

new text begin (d) "Acquire" includes acquisition by purchase, gift, or eminent domain.
new text end

new text begin Subd. 2. new text end

new text begin Payment required. new text end

new text begin (a) When the state or a political subdivision acquires
taxable real property and that property becomes tax exempt upon acquisition, the state or
political subdivision must pay to all other taxing jurisdictions levying property taxes on
the property in the year in which it is acquired an amount as follows:
new text end

new text begin (1) in the year in which the property is acquired, 100 percent of the taxes payable for
that year on the acquired property, less any amount of property taxes already collected for
that year on the property before the acquisition;
new text end

new text begin (2) in the first full year after acquisition, 60 percent of the total amount that was
due and payable in the year of acquisition;
new text end

new text begin (3) in the second year after acquisition, 50 percent of the total amount that was due
and payable in the year of acquisition; and
new text end

new text begin (4) in the third year after acquisition, 40 percent of the total amount that was due and
payable in the year of acquisition.
new text end

new text begin (b) As an alternative to the payments required as provided in paragraph (a), clauses
(2) to (4), the state or political subdivision may pay to any taxing jurisdiction an additional
single payment equal to 100 percent of the total taxes payable on the acquired property
in the year of acquisition.
new text end

new text begin (c) Payment under paragraph (a), clause (1), or under paragraph (b) must be made
at the time of acquisition and paid directly to each taxing jurisdiction. Payments under
paragraph (a), clauses (2) to (4), must be made annually on or before May 15 of each year
immediately following the year of acquisition.
new text end

new text begin Subd. 3. new text end

new text begin Waiver. new text end

new text begin A statutory or home rule charter city, county, town, or school
district may waive payments required under this section by resolution of the governing
body. A resolution to waive part or all of a payment must not be adopted unless the
waiver is identified as an item of business in a meeting notice for the meeting at which
the waiver will be discussed and voted upon. The notice must be provided at least ten
days before the meeting.
new text end

new text begin Subd. 4. new text end

new text begin Exclusions. new text end

new text begin The payment requirement under subdivision 2 does not apply
(1) if the property is acquired for transportation purposes and construction or engineering
begins within 12 months of the date of acquisition; or (2) if the state or political
subdivision acquiring the property has a written plan under which the property will
become taxable real property within three years from the date of acquisition. The written
plan must be approved by the governing body of the political subdivision acquiring the
property or, if the state is acquiring the property, by the commissioner of administration.
new text end

new text begin Subd. 5. new text end

new text begin Payments received are outside levy limits. new text end

new text begin Any payments received by a
political subdivision under this section are not included in the calculation of its overall
levy limit imposed under chapter 275.
new text end

new text begin Subd. 6. new text end

new text begin Cost of acquisition. new text end

new text begin Payments made under this section are a cost of
acquisition of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property acquired after January
1, 2007.
new text end