SF 141

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; requiring disclosure of and a 
  1.3             vote by local governing bodies on increases in 
  1.4             property taxes due to reduced market value; amending 
  1.5             Minnesota Statutes 1996, section 275.065, subdivision 
  1.6             6. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 275.065, 
  1.9   subdivision 6, is amended to read: 
  1.10     Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
  1.11  Between November 29 and December 20, the governing bodies of a 
  1.12  city that has a population over 500, county, metropolitan 
  1.13  special taxing districts as defined in subdivision 3, paragraph 
  1.14  (i), and regional library districts shall each hold a public 
  1.15  hearing to discuss and seek public comment on its final budget 
  1.16  and property tax levy for taxes payable in the following year, 
  1.17  and the governing body of the school district shall hold a 
  1.18  public hearing to review its current budget and proposed 
  1.19  property tax levy for taxes payable in the following year.  The 
  1.20  metropolitan special taxing districts shall be required to hold 
  1.21  only a single joint public hearing, the location of which will 
  1.22  be determined by the affected metropolitan agencies. 
  1.23     At a subsequent hearing, each county, school district, 
  1.24  city, and metropolitan special taxing district may amend its 
  1.25  proposed property tax levy and must adopt a final property tax 
  1.26  levy.  Each county, city, and metropolitan special taxing 
  2.1   district may also amend its proposed budget and must adopt a 
  2.2   final budget at the subsequent hearing.  A school district is 
  2.3   not required to adopt its final budget at the subsequent 
  2.4   hearing.  The subsequent hearing of a taxing authority must be 
  2.5   held on a date subsequent to the date of the taxing authority's 
  2.6   initial public hearing, or subsequent to the date of its 
  2.7   continuation hearing if a continuation hearing is held.  The 
  2.8   subsequent hearing may be held at a regularly scheduled board or 
  2.9   council meeting or at a special meeting scheduled for the 
  2.10  purposes of the subsequent hearing.  The subsequent hearing of a 
  2.11  taxing authority does not have to be coordinated by the county 
  2.12  auditor to prevent a conflict with an initial hearing, a 
  2.13  continuation hearing, or a subsequent hearing of any other 
  2.14  taxing authority.  All subsequent hearings must be held prior to 
  2.15  five working days after December 20 of the levy year. 
  2.16     The time and place of the subsequent hearing must be 
  2.17  announced at the initial public hearing or at the continuation 
  2.18  hearing. 
  2.19     The property tax levy certified under section 275.07 by a 
  2.20  city, county, metropolitan special taxing district, regional 
  2.21  library district, or school district must not exceed the 
  2.22  proposed levy determined under subdivision 1, except by an 
  2.23  amount up to the sum of the following amounts: 
  2.24     (1) the amount of a school district levy whose voters 
  2.25  approved a referendum to increase taxes under section 124.82, 
  2.26  subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 
  2.27  2, after the proposed levy was certified; 
  2.28     (2) the amount of a city or county levy approved by the 
  2.29  voters after the proposed levy was certified; 
  2.30     (3) the amount of a levy to pay principal and interest on 
  2.31  bonds approved by the voters under section 475.58 after the 
  2.32  proposed levy was certified; 
  2.33     (4) the amount of a levy to pay costs due to a natural 
  2.34  disaster occurring after the proposed levy was certified, if 
  2.35  that amount is approved by the commissioner of revenue under 
  2.36  subdivision 6a; 
  3.1      (5) the amount of a levy to pay tort judgments against a 
  3.2   taxing authority that become final after the proposed levy was 
  3.3   certified, if the amount is approved by the commissioner of 
  3.4   revenue under subdivision 6a; 
  3.5      (6) the amount of an increase in levy limits certified to 
  3.6   the taxing authority by the commissioner of children, families, 
  3.7   and learning or the commissioner of revenue after the proposed 
  3.8   levy was certified; and 
  3.9      (7) the amount required under section 124.755. 
  3.10     At the hearing under this subdivision, the percentage 
  3.11  increase in property taxes proposed by the taxing authority, if 
  3.12  any, and the specific purposes for which property tax revenues 
  3.13  are being increased must be discussed. 
  3.14     At a hearing conducted by the governing body of any taxing 
  3.15  authority in which the total market value of property in any 
  3.16  class of property has declined since the previous levy year, the 
  3.17  estimated aggregate amount and percentage by which the property 
  3.18  tax levy will be shifted onto each other class of property 
  3.19  within that taxing authority must be disclosed and explained. 
  3.20     During the discussion, the governing body shall hear 
  3.21  comments regarding a proposed increase and explain the reasons 
  3.22  for the proposed increase.  The public shall be allowed to speak 
  3.23  and to ask questions.  At the subsequent hearing held as 
  3.24  provided in this subdivision, the governing body, other than the 
  3.25  governing body of a school district, shall adopt its final 
  3.26  property tax levy prior to adopting its final budget.  Prior to 
  3.27  adopting its final levy, the governing body of a taxing 
  3.28  authority in which the total market value of the property 
  3.29  included in any class of property has declined since the 
  3.30  previous levy year, must, in a separate vote, indicate its 
  3.31  intent to shift a portion of the property tax levy onto the 
  3.32  classes of property that have not declined in market value, 
  3.33  rather than to reduce its final budget to compensate for the 
  3.34  lost tax base.  At the option of the governing body, one vote 
  3.35  may be taken on all shifts among classes within the taxing 
  3.36  authority or separate votes may be taken on the anticipated 
  4.1   shift for each class. 
  4.2      If the hearing is not completed on its scheduled date, the 
  4.3   taxing authority must announce, prior to adjournment of the 
  4.4   hearing, the date, time, and place for the continuation of the 
  4.5   hearing.  The continued hearing must be held at least five 
  4.6   business days but no more than 14 business days after the 
  4.7   original hearing. 
  4.8      The hearing must be held after 5:00 p.m. if scheduled on a 
  4.9   day other than Saturday.  No hearing may be held on a Sunday.  
  4.10  The governing body of a county shall hold a hearing on the 
  4.11  second Tuesday in December each year, and may hold additional 
  4.12  hearings on other dates before December 20 if necessary for the 
  4.13  convenience of county residents.  If the county needs a 
  4.14  continuation of its hearing, the continued hearing shall be held 
  4.15  on the third Tuesday in December.  If the third Tuesday in 
  4.16  December falls on December 21, the county's continuation hearing 
  4.17  shall be held on Monday, December 20.  The county auditor shall 
  4.18  provide for the coordination of hearing dates for all cities and 
  4.19  school districts within the county. 
  4.20     The metropolitan special taxing districts shall hold a 
  4.21  joint public hearing on the first Monday of December.  A 
  4.22  continuation hearing, if necessary, shall be held on the second 
  4.23  Monday of December. 
  4.24     By August 10, each school board and the board of the 
  4.25  regional library district shall certify to the county auditors 
  4.26  of the counties in which the school district or regional library 
  4.27  district is located the dates on which it elects to hold its 
  4.28  hearings and any continuations.  If a school board or regional 
  4.29  library district does not certify the dates by August 10, the 
  4.30  auditor will assign the hearing date.  The dates elected or 
  4.31  assigned must not conflict with the hearing dates of the county 
  4.32  or the metropolitan special taxing districts.  By August 20, the 
  4.33  county auditor shall notify the clerks of the cities within the 
  4.34  county of the dates on which school districts and regional 
  4.35  library districts have elected to hold their hearings.  At the 
  4.36  time a city certifies its proposed levy under subdivision 1 it 
  5.1   shall certify the dates on which it elects to hold its hearings 
  5.2   and any continuations.  For its initial hearing and for the 
  5.3   subsequent hearing at which the final property tax levy will be 
  5.4   adopted, the city must not select dates that conflict with the 
  5.5   county hearing dates, metropolitan special taxing district 
  5.6   dates, or with those elected by or assigned to the school 
  5.7   districts or regional library district in which the city is 
  5.8   located.  For continuation hearings, the city may select dates 
  5.9   that conflict with other taxing authorities' dates if the city 
  5.10  deems it necessary. 
  5.11     The county hearing dates and the city, metropolitan special 
  5.12  taxing district, regional library district, and school district 
  5.13  hearing dates must be designated on the notices required under 
  5.14  subdivision 3.  The continuation dates need not be stated on the 
  5.15  notices.  
  5.16     This subdivision does not apply to towns and special taxing 
  5.17  districts other than regional library districts and metropolitan 
  5.18  special taxing districts. 
  5.19     Notwithstanding the requirements of this section, the 
  5.20  employer is required to meet and negotiate over employee 
  5.21  compensation as provided for in chapter 179A. 
  5.22     Sec. 2.  [EFFECTIVE DATE.] 
  5.23     Section 1 is effective for property taxes levied in 1997, 
  5.24  payable in 1998, and thereafter.