SF 273

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

A bill for an act
relating to education finance; lowering the maximum
effort capital loan tax rate; amending Minnesota
Statutes 2004, section 126C.63, subdivision 8.

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

Section 1.

Minnesota Statutes 2004, section 126C.63,
subdivision 8, is amended to read:

Subd. 8.

Maximum effort debt service levy.

(a) "Maximum
effort debt service levy" means the lesser of:

(1) a levy in whichever of the following amounts is
applicable:

(i) in any district receiving a debt service loan for a
debt service levy payable in 2002 and thereafter, or granted a
capital loan after January 1, 2002, a levy in total dollar
amount computed at a rate of 40 percent of adjusted net tax
capacity for taxes payable in 2002 and thereafter;

(ii) in any district receiving a debt service loan for a
debt service levy payable in 2001 or earlier, or granted a
capital loan before January 2, deleted text begin 2001 deleted text end new text begin 2002 new text end , a levy in a total
dollar amount computed at a rate of deleted text begin 32 deleted text end new text begin 28 new text end percent of adjusted
net tax capacity for taxes payable in 2002 and thereafter; or

(2) a levy in any district for which a capital loan was
approved prior to August 1, 1981, a levy in a total dollar
amount equal to the sum of the amount of the required debt
service levy and an amount which when levied annually will in
the opinion of the commissioner be sufficient to retire the
remaining interest and principal on any outstanding loans from
the state within 30 years of the original date when the capital
loan was granted.

(b) The board in any district affected by the provisions of
paragraph (a), clause (2), may elect instead to determine the
amount of its levy according to the provisions of paragraph (a),
clause (1). If a district's capital loan is not paid within 30
years because it elects to determine the amount of its levy
according to the provisions of paragraph (a), clause (2), the
liability of the district for the amount of the difference
between the amount it levied under paragraph (a), clause (2),
and the amount it would have levied under paragraph (a), clause
(1), and for interest on the amount of that difference, must not
be satisfied and discharged pursuant to Minnesota Statutes 1988,
or an earlier edition of Minnesota Statutes if applicable,
section 124.43, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end