Minnesota Legislature
SF 828
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:16am
Current Version - as introduced
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A bill for an act
relating to property taxes; eliminating the one-year lag in determining fiscal
disparities contribution net tax capacities and distribution levies; amending
Minnesota Statutes 2008, sections 276A.04; 276A.05, subdivisions 1, 5;
276A.06, subdivisions 2, 3, 5; 473F.06; 473F.07, subdivisions 1, 5; 473F.08,
subdivisions 2, 3, 5; repealing Minnesota Statutes 2008, sections 276A.06,
subdivision 9; 473F.08, subdivision 8a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 276A.04, is amended to read:
276A.04 INCREASE IN NET TAX CAPACITY.
By deleted text begin Julydeleted text end new text begin Augustnew text end 15 of deleted text begin 1997 anddeleted text end each deleted text begin subsequentdeleted text end year, the auditor of each county
in the area shall determine the amount, if any, by which the net tax capacity determined
deleted text begin in the preceding yeardeleted text end pursuant to section 276A.03, of commercial-industrial property
subject to taxation within each municipality in the county exceeds the net tax capacity
in 1995 of commercial-industrial property subject to taxation within that municipality,
including the total net tax capacity of property that becomes taxable under section 298.25.
If a municipality is located in two or more counties within the area, the auditors of
those counties shall certify the data required by section 276A.03 to the county auditor
responsible for allocating the levies of that municipality between or among the affected
counties. That county auditor shall determine the amount of the net excess, if any, for the
municipality under this section, and certify that amount under section 276A.05. The
increase in total net tax capacity determined by this section must be reduced by the amount
of any decreases in the net tax capacity of commercial-industrial property resulting from
any court decisions, court-related stipulation agreements, or abatements for a prior year,
and only in the amount of such decreases made during the 12-month period ending on
May 1 of the current assessment year, where the decreases, if originally reflected in the
determination of a prior year's net tax capacity under section 276A.03, would have
resulted in a smaller contribution from the municipality in that year. An adjustment for the
decreases shall be made only if the municipality made a contribution in a prior year based
on the higher net tax capacity of the commercial-industrial property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 2.
Minnesota Statutes 2008, section 276A.05, subdivision 1, is amended to read:
Subdivision 1.
Areawide net tax capacity.
Each county auditor shall certify the
determinations under sections 276A.03 and 276A.04 to the administrative auditor on or
before August deleted text begin 1deleted text end new text begin 15new text end of each year. The administrative auditor shall determine an amount
equal to 40 percent of the sum of the amounts certified pursuant to section 276A.04. The
resulting amount shall be known as the "areawide net tax capacity for ........(year)."
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 3.
Minnesota Statutes 2008, section 276A.05, subdivision 5, is amended to read:
Subd. 5.
Certification.
The product of the procedure prescribed by subdivision
4 shall be known as the "areawide net tax capacity for ......(year) attributable to
..........(municipality)." The administrative auditor shall certify the product to the auditor of
the county in which the municipality is located on or before deleted text begin Augustdeleted text end new text begin Septembernew text end 15.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 4.
Minnesota Statutes 2008, section 276A.06, subdivision 2, is amended to read:
Subd. 2.
Definition.
The net tax capacity of a governmental unit is its net tax
capacity as determined in accordance with other provisions of law including section
469.177, subdivision 3, subject to the following adjustments:
(a) There must be subtracted from its net tax capacity, in each municipality in
which the governmental unit exercises ad valorem taxing jurisdiction, an amount that
bears the same proportion to 40 percent of the amount certified in that year pursuant
to sections 276A.04 and 276A.05 for the municipality as the total deleted text begin preceding year'sdeleted text end
net tax capacity of commercial-industrial property which is subject to the taxing
jurisdiction of the governmental unit within the municipality, determined without regard
to section 469.177, subdivision 3, bears to the total deleted text begin preceding year'sdeleted text end net tax capacity of
commercial-industrial property within the municipality, determined without regard to
section 469.177, subdivision 3.
(b) There must be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to the areawide net tax capacity for the year attributable to that
municipality as the total deleted text begin preceding year'sdeleted text end net tax capacity of residential property which is
subject to the taxing jurisdiction of the governmental unit within the municipality bears to
the total deleted text begin preceding year'sdeleted text end net tax capacity of residential property of the municipality.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 5.
Minnesota Statutes 2008, section 276A.06, subdivision 3, is amended to read:
Subd. 3.
Apportionment of levy.
The county auditor shall apportion the levy of
each governmental unit in the county in the manner prescribed by this subdivision. The
auditor shall:
(a) deleted text begin by August 20 of 1997 and each subsequent year,deleted text end determine the areawide
portion of the levy for each governmental unit by multiplying the local tax rate of the
governmental unit for the deleted text begin precedingdeleted text end new text begin currentnew text end levy year times the distribution value set forth
in subdivision 2, clause (b);new text begin and
new text end
(b) deleted text begin by September 5 of 1997 and each subsequent year,deleted text end determine the local portion
of the current year's levy by subtracting the resulting amount from clause (a) from the
governmental unit's current year's levydeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(c) for determinations made under paragraph (a) in the case of school districts,
for taxes payable in 2002, exclude the general education tax rate and the portion of the
referendum tax rate attributable to the first $415 per pupil unit from the local tax rate for
the preceding levy year.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 6.
Minnesota Statutes 2008, section 276A.06, subdivision 5, is amended to read:
Subd. 5.
Areawide tax rate.
new text begin (a) new text end On or before deleted text begin August 25deleted text end new text begin February 5new text end of deleted text begin 1997 anddeleted text end
each deleted text begin subsequentdeleted text end year, the county auditor shall certify to the administrative auditor that
portion of the levy of each governmental unit determined pursuant to subdivision 3, clause
(a). The administrative auditor shall then determine the areawide tax rate sufficient to
yield an amount equal to the sum of the levies from the areawide net tax capacity.
new text begin (b)new text end On or before deleted text begin September 1deleted text end new text begin February 10 of each yearnew text end , the administrative auditor
shall certify the areawide tax rate to each of the county auditors.
new text begin
(c) For the purposes of the notice required under section 275.065, the deadline
for the certification under paragraph (a) is October 10 and the deadline for certification
under paragraph (b) is October 15.
new text end
new text begin
(d) For any governmental unit for which the county auditor has not yet determined
the local tax rate by January 31, the county auditor shall determine the areawide portion
of the levy based on an estimated tax rate. In the following year, the distribution levy
of the unit must be adjusted to correct for the difference between the distribution levy
actually received and the distribution levy that would have been received if the actual tax
rate had been used.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 7.
Minnesota Statutes 2008, section 473F.06, is amended to read:
473F.06 INCREASE IN NET TAX CAPACITY.
On or before deleted text begin Julydeleted text end new text begin Augustnew text end 15 of each year, the auditor of each county in the area
shall determine the amount, if any, by which the net tax capacity determined deleted text begin in the
preceding yeardeleted text end under section 473F.05, of commercial-industrial property subject to
taxation within each municipality in the auditor's county exceeds the net tax capacity in
1971 of commercial-industrial property subject to taxation within that municipality. If
a municipality is located in two or more counties within the area, the auditors of those
counties shall certify the data required by section 473F.05 to the county auditor who is
responsible under other provisions of law for allocating the levies of that municipality
between or among the affected counties. That county auditor shall determine the amount
of the net excess, if any, for the municipality under this section, and certify that amount
under section 473F.07. Notwithstanding any other provision of sections 473F.01 to
473F.13 to the contrary, in the case of a municipality which is designated on July 24,
1971, as a redevelopment area under section 401(a)(4) of the Public Works and Economic
Development Act of 1965, Public Law 89-136, the increase in its net tax capacity of
commercial-industrial property for purposes of this section shall be determined in each
year by using as a base the net tax capacity of commercial-industrial property in that
municipality in the 1989 assessment year, rather than the net tax capacity of such property
in 1971. The increase in total net tax capacity determined by this section shall be reduced
by the amount of any decreases in net tax capacity of commercial-industrial property
resulting from any court decisions, court related stipulation agreements, or abatements
for a prior year, and only in the amount of such decreases made during the 12-month
period ending on May 1 of the current assessment year, where such decreases, if originally
reflected in the determination of a prior year's net tax capacity under section 473F.05,
would have resulted in a smaller contribution from the municipality in that year. An
adjustment for such decreases shall be made only if the municipality made a contribution
in a prior year based on the higher net tax capacity of the commercial-industrial property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 8.
Minnesota Statutes 2008, section 473F.07, subdivision 1, is amended to read:
Subdivision 1.
Areawide net tax capacity.
Each county auditor shall certify the
determinations under sections 473F.05 and 473F.06 to the administrative auditor on or
before August deleted text begin 1deleted text end new text begin 15new text end of each year.
The administrative auditor shall determine an amount equal to 40 percent of the sum
of the amounts certified under section 473F.06. The resulting amount shall be known as
the "areawide net tax capacity for ........(year)."
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 9.
Minnesota Statutes 2008, section 473F.07, subdivision 5, is amended to read:
Subd. 5.
Certification to county auditor.
The result of the procedure prescribed by
subdivision 4 shall be known as the "areawide net tax capacity for ........(year) attributable
to ..................(municipality)." The administrative auditor shall certify such product to the
auditor of the county in which the municipality is located on or before deleted text begin Augustdeleted text end new text begin Septembernew text end
15.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 10.
Minnesota Statutes 2008, section 473F.08, subdivision 2, is amended to read:
Subd. 2.
Computation of net tax capacity.
The net tax capacity of a governmental
unit is its net tax capacity, as determined in accordance with other provisions of law
including section 469.177, subdivision 3, subject to the following adjustments:
(a) There shall be subtracted from its net tax capacity, in each municipality in which
the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to 40 percent of the amount certified in that year under sections
473F.06 and 473F.07 for the municipality as the total deleted text begin preceding year'sdeleted text end net tax capacity
of commercial-industrial property which is subject to the taxing jurisdiction of the
governmental unit within the municipality, determined without regard to section 469.177,
subdivision 3, bears to the total deleted text begin preceding year'sdeleted text end net tax capacity of commercial-industrial
property within the municipality, determined without regard to section 469.177,
subdivision 3;
(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to the areawide net tax capacity for the year attributable to that
municipality as the total deleted text begin preceding year'sdeleted text end net tax capacity of residential property which is
subject to the taxing jurisdiction of the governmental unit within the municipality bears to
the total deleted text begin preceding year'sdeleted text end net tax capacity of residential property of the municipality.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 11.
Minnesota Statutes 2008, section 473F.08, subdivision 3, is amended to read:
Subd. 3.
Apportionment of levy.
The county auditor shall apportion the levy
of each governmental unit in the auditor's county in the manner prescribed by this
subdivision. The auditor shall:
(a) deleted text begin by August 20,deleted text end determine the areawide portion of the levy for each governmental
unit by multiplying the local tax rate of the governmental unit for the deleted text begin precedingdeleted text end new text begin currentnew text end
levy year times the distribution value set forth in subdivision 2, clause (b);
(b) deleted text begin by September 5,deleted text end determine the local portion of the current year's levy by
subtracting the resulting amount from clause (a) from the governmental unit's current
year's levy;
(c) for determinations made under clause (a) in the case of school districts, for
taxes payable in 2002, exclude the general education tax rate and the portion of the
referendum tax rate attributable to the first $415 per pupil unit from the local tax rate for
the preceding levy year;
(d) for determinations made under clause (a) in the case of the Metropolitan Council,
for taxes payable in 2002, exclude the transit operating tax rate from the local tax rate
for the preceding levy year; and
(e) for determinations made under clause (a) in the case of transit opt-out cities,
for taxes payable in 2002, exclude the opt-out transit rate from the local tax rate for the
preceding levy year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 12.
Minnesota Statutes 2008, section 473F.08, subdivision 5, is amended to read:
Subd. 5.
Areawide tax rate.
new text begin (a) new text end On or before deleted text begin August 25deleted text end new text begin February 5new text end of each year,
the county auditor shall certify to the administrative auditor that portion of the levy of
each governmental unit determined under subdivisions 3, clause (a), 3a, and 3b. The
administrative auditor shall then determine the areawide tax rate sufficient to yield an
amount equal to the sum of such levies from the areawide net tax capacity.
new text begin (b)new text end On or before deleted text begin September 1deleted text end new text begin February 10new text end of each year, the administrative auditor
shall certify the areawide tax rate to each of the county auditors.
new text begin
(c) For the purposes of the notice required under section 275.065, the deadline
for the certification under paragraph (a) is October 10 and the deadline for certification
under paragraph (b) is October 15.
new text end
new text begin
(d) For any governmental unit for which the county auditor has not yet determined
the local tax rate by January 31, the county auditor shall determine the areawide portion
of the levy based on an estimated tax rate. In the following year, the distribution levy
of the unit must be adjusted to correct for the difference between the distribution levy
actually received and the distribution levy that would have been received if the actual tax
rate had been used.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2011 and
subsequent years.
new text end
Sec. 13. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2008, sections 276A.06, subdivision 9; and 473F.08, subdivision
8a,
new text end
new text begin
are repealed.
new text end