HF 4416

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/28/2024 04:35pm

A bill for an act
relating to taxation; payment in lieu of taxes; establishing a new payment for
exempt property; proposing coding for new law in Minnesota Statutes, chapter
477A.

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

Section 1.

new text begin [477A.25] EXEMPT PROPERTY; PAYMENTS IN LIEU.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "city" means a statutory or home rule charter city with a population less than or equal
to 5,000;
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new text begin (2) "exempt market value" means the market value of exempt property as determined
by the most recent valuation under section 273.18;
new text end

new text begin (3) "population" means a city's population determined under section 477A.011,
subdivision 3; and
new text end

new text begin (4) "total market value" means the sum of the exempt market value within a city plus
the total taxable market value within a city for the assessment year which corresponds to
the most recent valuation of exempt property under section 273.18.
new text end

new text begin Subd. 2. new text end

new text begin Payment determination. new text end

new text begin (a) A city is eligible for a payment under this section
if the exempt market value within the city is greater than 45 percent of the total market
value within the city. Eligible cities must annually receive a payment equal to one percent
of the exempt market value within the city.
new text end

new text begin (b) The commissioner of revenue must determine the payments under this section and
certify the amounts by July 1 of the payment year.
new text end

new text begin Subd. 3. new text end

new text begin Time of payment. new text end

new text begin The commissioner of revenue must make payments under
this section at the time provided in section 477A.015 for the first installment of local
government aid.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section is annually appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025.
new text end