SF 867

as introduced - 90th Legislature (2017 - 2018) Posted on 02/15/2017 10:21am

A bill for an act
relating to property taxation; phasing out the state general levy over six years;
amending Minnesota Statutes 2016, section 275.025, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, 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 deleted text begin base amount deleted text end is deleted text begin $592,000,000 for taxes payable in
2002. For taxes payable in subsequent years, the levy base amount is 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. deleted text end new text begin :
new text end

new text begin (1) $718,800,000 for taxes payable in 2018;
new text end

new text begin (2) $575,000,000 for taxes payable in 2019;
new text end

new text begin (3) $431,300,000 for taxes payable in 2020;
new text end

new text begin (4) $287,500,000 for taxes payable in 2021;
new text end

new text begin (5) $143,800,000 for taxes payable in 2022; and
new text end

new text begin (6) $0 for taxes payable in 2023 and thereafter.
new text end

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 rate 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 2018.
new text end