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HF 968

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 03:42pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; property; exempting the first tier of commercial-industrial
property from the state general levy; reducing the amount of the state general
levy; amending Minnesota Statutes 2014, section 275.025, subdivisions 1, 2, 4.

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

Section 1.

Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount new text beginfor commercial-industrial property new text endis
deleted text begin$592,000,000deleted text endnew text begin $747,000,000new text end for taxes payable in deleted text begin2002deleted text endnew text begin 2016new text end. new text begin The state general levy base
amount for seasonal recreational property is $43,500,000 for taxes payable in 2016.
new text endFor
taxes payable in subsequent years, the levy base deleted text beginamount isdeleted text endnew text begin amounts are new text end increased each
year by multiplying the levy base amount for the prior year by the sum of one plus the rate
of increase, if any, in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payable. The tax under this section is
not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final deleted text beginratedeleted text endnew text begin ratesnew text end for a
year as necessary to account for errors and tax base changes that affected a preliminary or
final rate for either of the two preceding years. Adjustments are allowed to the extent that
the necessary information is available to the commissioner at the time the rates for a year
must be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016.
new text end

Sec. 2.

Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:


Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, deleted text beginexcept fordeleted text endnew text begin excluding: (i) the first
tier of commercial-industrial net tax capacity as defined under section 273.13, subdivision
24, (ii)
new text end electric generation attached machinery under class 3new text begin, new text end and new text begin(iii) new text endproperty described
in section 473.625. County commercial-industrial tax capacity amounts are not adjusted
for the captured net tax capacity of a tax increment financing district under section
469.177, subdivision 2, the net tax capacity of transmission lines deducted from a local
government's total net tax capacity under section 273.425, or fiscal disparities contribution
and distribution net tax capacities under chapter 276A or 473F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016.
new text end

Sec. 3.

Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

deleted text beginNinety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text beginfive percent of the state general tax must be levied by applyingdeleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each year,
the commissioner of revenue shall certify the preliminary state general levy rates to each
county auditor that must be used to prepare the notices of proposed property taxes for taxes
payable in the following year. By January 1 of each year, the commissioner shall certify the
final state general levy deleted text beginratedeleted text endnew text begin ratesnew text end to each county auditor that shall be used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016.
new text end