Minnesota Legislature
HF 938
as introduced - 89th Legislature (2015 - 2016) Posted on 02/16/2015 01:32pm
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A bill for an act
relating to taxation; local government aid; allowing unorganized territories to be
eligible for township aid; amending Minnesota Statutes 2014, sections 477A.013,
subdivision 1; 477A.014, subdivision 1; 477A.03, subdivision 2c.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 477A.013, subdivision 1, is amended to
read:
Subdivision 1.
Townsnew text begin and unorganized territoriesnew text end .
In deleted text begin 2014deleted text end new text begin 2016new text end and thereafter,
each townnew text begin and the total area of any unorganized territory within a countynew text end is eligible for
a distribution under this subdivision equal to the product of (i) its agricultural property
factor, (ii) its deleted text begin towndeleted text end area factor, (iii) its population factor, and (iv) 0.0045. As used in this
subdivision, the following terms have the meanings given them:
(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
agricultural property located in a towndeleted text begin ,deleted text end new text begin or unorganized territorynew text end divided by the adjusted
net tax capacity of all other property located in the townnew text begin or unorganized territorynew text end . The
agricultural property factor cannot exceed eight;
(2) "agricultural property" means property classified under section 273.13, as
homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
seasonal recreational property;
(3) "deleted text begin towndeleted text end area factor" means the most recent estimate of total acreage, not to exceed
50,000 acresdeleted text begin , locateddeleted text end in the new text begin case of a new text end townshipnew text begin , or 75,000 acres in the case of unorganized
territory,new text end available as of July 1 in the aid calculation year, estimated or established by:
(i) the United States Bureau of the Census;
(ii) the deleted text begin State Land Management Information Centerdeleted text end new text begin Minnesota Geospatial
Information Officenew text end ; or
(iii) the secretary of state; and
(4) "population factor" means the square root of the deleted text begin towns'deleted text end new text begin town's or unorganized
territory'snew text end population.
If the sum of the aids payable to all townsnew text begin and unorganized territoriesnew text end under this
subdivision exceeds the limit under section 477A.03, subdivision 2c, the distribution to
each townnew text begin and unorganized territorynew text end must be reduced proportionately so that the total
amount of aids distributed under this section does not exceed the limit in section 477A.03,
subdivision 2c.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2016 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2014, section 477A.014, subdivision 1, is amended to read:
Subdivision 1.
Calculations and payments.
(a) The commissioner of revenue shall
make all necessary calculations and make payments pursuant to sections 477A.013 and
477A.03 directly to the affected taxing authorities annually. In addition, the commissioner
shall notify the authorities of their aid amounts, as well as the computational factors used
in making the calculations for their authority, and those statewide total figures that are
pertinent, before August 1 of the year preceding the aid distribution year.new text begin In the case of
unorganized territory, the commissioner shall notify the affected county government of
the aid amount for any unorganized territory within the county and make payments of aid
payable based on unorganized territory to the county government.
new text end
(b) For the purposes of this subdivision, aid is determined for a city deleted text begin ordeleted text end new text begin ,new text end townnew text begin ,
or unorganized territorynew text end based on its city deleted text begin ordeleted text end new text begin ,new text end townnew text begin , or unorganized territorynew text end status as
of June 30 of the year preceding the aid distribution year. If the effective date for a
municipal incorporation, consolidation, annexation, detachment, dissolution, or township
organization is on or before June 30 of the year preceding the aid distribution year, such
change in boundaries or form of government shall be recognized for aid determinations for
the aid distribution year. If the effective date for a municipal incorporation, consolidation,
annexation, detachment, dissolution, or township organization is after June 30 of the year
preceding the aid distribution year, such change in boundaries or form of government shall
not be recognized for aid determinations until the following year.
(c) Changes in boundaries or form of government will only be recognized for the
purposes of this subdivision, to the extent that: (1) changes in market values are included
in market values reported by assessors to the commissioner, and changes in population
and household size are included in their respective certifications to the commissioner as
referenced in section 477A.011, or (2) an annexation information report as provided in
paragraph (d) is received by the commissioner on or before July 15 of the aid calculation
year. Revisions to estimates or data for use in recognizing changes in boundaries or form
of government are not effective for purposes of this subdivision unless received by the
commissioner on or before July 15 of the aid calculation year. Clerical errors in the
certification or use of estimates and data established as of July 15 in the aid calculation
year are subject to correction within the time periods allowed under subdivision 3.
(d) In the case of an annexation, an annexation information report may be completed
by the annexing jurisdiction and submitted to the commissioner for purposes of this
subdivision if the net tax capacity of annexed area for the assessment year preceding the
effective date of the annexation exceeds five percent of the city's net tax capacity for the
same year. The form and contents of the annexation information report shall be prescribed
by the commissioner. The commissioner shall change the net tax capacity, the population,
the population decline, the commercial industrial percentage, and the transformed
population for the annexing jurisdiction only if the annexation information report provides
data the commissioner determines to be reliable for all of these factors used to compute city
revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
housing percentage and household size only if the entire area of an existing city deleted text begin ordeleted text end new text begin ,new text end townnew text begin ,
or unorganized territorynew text end is annexed or consolidated and only if reliable data is available
for all of these factors used to compute city revenue need for the annexing jurisdiction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2016 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2014, section 477A.03, subdivision 2c, is amended to read:
Subd. 2c.
Townsnew text begin and unorganized territoriesnew text end .
For aids payable in deleted text begin 2014deleted text end new text begin 2016
and thereafternew text end , the total aids paid under section 477A.013, subdivision 1, is limited to
deleted text begin $10,000,000deleted text end new text begin $10,260,000new text end . deleted text begin For aids payable in 2015 and thereafter, the total aids paid
under section 477A.013, subdivision 1, is limited to the amount certified to be paid in
the previous year.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2016 and thereafter.
new text end