SF 975

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

A bill for an act
relating to taxation; providing for the creation of
special taxing districts to capture property tax
increments to finance operating costs of light rail
transit; proposing coding for new law in Minnesota
Statutes, chapter 473.

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

Section 1.

new text begin [473.450] SPECIAL TAXING DISTRICTS FOR LRT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The council shall establish a
special taxing district to pay for the cost of operating a light
rail transit line to the extent fare revenues are insufficient
to cover those costs.
new text end

new text begin Subd. 2. new text end

new text begin Area of district. new text end

new text begin The special taxing district
consists of the area comprised of any parcel of property
located, in whole or part, within 1,000 feet of the right-of-way
for the light rail transit line and classified as class 3
property or class 4 property.
new text end

new text begin Subd. 3. new text end

new text begin Revenues. new text end

new text begin (a) The revenues of the district are
the property tax increments attributable to the increase in the
net tax capacity of the district that occurs after its
certification. The tax increments must be computed in the
manner provided in this subdivision.
new text end

new text begin (b) Upon the request of the council, the county auditor
shall certify the net tax capacity of all taxable property
within the area of the special taxing district. Certification
of original net tax capacity, captured net tax capacity, and
computation of tax increment must be done following the
procedures and methods provided under section 469.177 with the
following exceptions:
new text end

new text begin (1) the current tax rate must be used, rather than the
original tax rate under section 469.177, subdivision 1a;
new text end

new text begin (2) computations of increment must be made using the option
under section 469.177, subdivision 3, paragraph (b);
new text end

new text begin (3) the county auditor shall annually adjust the original
tax capacity of the district by the average percentage change in
the tax capacity of class 3 property in the county over the
previous assessment year. Increases attributable to new
improvements that became taxable in that assessment year must be
excluded in calculating the average.
new text end

new text begin (c) The county auditor shall pay the tax increment to the
council. Revenues may only be used for the operating costs of
light rail transit.
new text end

new text begin (d) The restrictions on or requirements for tax increment
financing districts under sections 469.174 to 469.178 do not
apply to a special taxing district, except as provided in
paragraph (b) and as follows:
new text end

new text begin (1) the county may deduct its cost of administration as
permitted under section 469.176, subdivision 4h, paragraph (a);
and
new text end

new text begin (2) to the extent that revenues under this section exceed
the projected cost of light rail transit operations that exceed
fare and other revenues, the excess must be distributed as
provided under section 469.176, subdivision 2, paragraph (c),
clause (4).
new text end

new text begin Subd. 4. new text end

new text begin Tif and abatement. new text end

new text begin No tax increment financing
district may be created under sections 469.174 to 469.178 within
the area of the special taxing district as defined under
subdivision 2. No abatement of the incremental tax under
subdivision 3 may be made under sections 469.1812 to 469.1815.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for
property taxes payable in 2006. Subdivision 4 applies to
requests for certification of tax increment financing districts
made after the day following final enactment.
new text end