SF 976

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

  1.1                          A bill for an act
  1.2             relating to property taxes; eliminating the one-year 
  1.3             lag in determining fiscal disparities contribution net 
  1.4             tax capacities and distribution levies; amending 
  1.5             Minnesota Statutes 1996, sections 276A.04; 276A.05, 
  1.6             subdivisions 1 and 5; 276A.06, subdivisions 2, 3, and 
  1.7             5; 473F.06; 473F.07, subdivisions 1 and 5; and 
  1.8             473F.08, subdivisions 2, 3, and 5; repealing Minnesota 
  1.9             Statutes 1996, sections 276A.06, subdivision 9; and 
  1.10            473F.08, subdivision 8a. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 276A.04, is 
  1.13  amended to read: 
  1.14     276A.04 [INCREASE IN NET TAX CAPACITY.] 
  1.15     By July August 15 of 1997 and each subsequent year, the 
  1.16  auditor of each county in the area shall determine the amount, 
  1.17  if any, by which the net tax capacity determined in the 
  1.18  preceding year pursuant to section 276A.03, of 
  1.19  commercial-industrial property subject to taxation within each 
  1.20  municipality in the county exceeds the net tax capacity in 1995 
  1.21  of commercial-industrial property subject to taxation within 
  1.22  that municipality.  If a municipality is located in two or more 
  1.23  counties within the area, the auditors of those counties shall 
  1.24  certify the data required by section 276A.03 to the county 
  1.25  auditor responsible for allocating the levies of that 
  1.26  municipality between or among the affected counties.  That 
  1.27  county auditor shall determine the amount of the net excess, if 
  1.28  any, for the municipality under this section, and certify that 
  2.1   amount under section 276A.05.  The increase in total net tax 
  2.2   capacity determined by this section must be reduced by the 
  2.3   amount of any decreases in the net tax capacity of 
  2.4   commercial-industrial property resulting from any court 
  2.5   decisions, court-related stipulation agreements, or abatements 
  2.6   for a prior year, and only in the amount of such decreases made 
  2.7   during the 12-month period ending on May 1 of the current 
  2.8   assessment year, where the decreases, if originally reflected in 
  2.9   the determination of a prior year's net tax capacity under 
  2.10  section 276A.03, would have resulted in a smaller contribution 
  2.11  from the municipality in that year.  An adjustment for the 
  2.12  decreases shall be made only if the municipality made a 
  2.13  contribution in a prior year based on the higher net tax 
  2.14  capacity of the commercial-industrial property. 
  2.15     Sec. 2.  Minnesota Statutes 1996, section 276A.05, 
  2.16  subdivision 1, is amended to read: 
  2.17     Subdivision 1.  [AREAWIDE NET TAX CAPACITY.] Each county 
  2.18  auditor shall certify the determinations under sections 276A.03 
  2.19  and 276A.04 to the administrative auditor on or before August 1 
  2.20  15 of each year.  The administrative auditor shall determine an 
  2.21  amount equal to 40 percent of the sum of the amounts certified 
  2.22  pursuant to section 276A.04.  The resulting amount shall be 
  2.23  known as the "areawide net tax capacity for ........(year)."  
  2.24     Sec. 3.  Minnesota Statutes 1996, section 276A.05, 
  2.25  subdivision 5, is amended to read: 
  2.26     Subd. 5.  [CERTIFICATION.] The product of the procedure 
  2.27  prescribed by subdivision 4 shall be known as the "areawide net 
  2.28  tax capacity for ......(year) attributable to 
  2.29  ..........(municipality)."  The administrative auditor shall 
  2.30  certify the product to the auditor of the county in which the 
  2.31  municipality is located on or before August September 15. 
  2.32     Sec. 4.  Minnesota Statutes 1996, section 276A.06, 
  2.33  subdivision 2, is amended to read: 
  2.34     Subd. 2.  [DEFINITION.] The net tax capacity of a 
  2.35  governmental unit is its net tax capacity as determined in 
  2.36  accordance with other provisions of law including section 
  3.1   469.177, subdivision 3, subject to the following adjustments:  
  3.2      (a) There must be subtracted from its net tax capacity, in 
  3.3   each municipality in which the governmental unit exercises ad 
  3.4   valorem taxing jurisdiction, an amount that bears the same 
  3.5   proportion to 40 percent of the amount certified in that year 
  3.6   pursuant to sections 276A.04 and 276A.05 for the municipality as 
  3.7   the total preceding year's net tax capacity of 
  3.8   commercial-industrial property which is subject to the taxing 
  3.9   jurisdiction of the governmental unit within the municipality, 
  3.10  determined without regard to section 469.177, subdivision 3, 
  3.11  bears to the total preceding year's net tax capacity of 
  3.12  commercial-industrial property within the municipality, 
  3.13  determined without regard to section 469.177, subdivision 3.  
  3.14     (b) There must be added to its net tax capacity, in each 
  3.15  municipality in which the governmental unit exercises ad valorem 
  3.16  taxing jurisdiction, an amount which bears the same proportion 
  3.17  to the areawide net tax capacity for the year attributable to 
  3.18  that municipality as the total preceding year's net tax capacity 
  3.19  of residential property which is subject to the taxing 
  3.20  jurisdiction of the governmental unit within the municipality 
  3.21  bears to the total preceding year's net tax capacity of 
  3.22  residential property of the municipality.  
  3.23     Sec. 5.  Minnesota Statutes 1996, section 276A.06, 
  3.24  subdivision 3, is amended to read: 
  3.25     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
  3.26  apportion the levy of each governmental unit in the county in 
  3.27  the manner prescribed by this subdivision.  The auditor shall: 
  3.28     (a) by August 20 of 1997 and each subsequent year, 
  3.29  determine the areawide portion of the levy for each governmental 
  3.30  unit by multiplying the local tax rate of the governmental unit 
  3.31  for the preceding current levy year times the distribution value 
  3.32  set forth in subdivision 2, clause (b); and 
  3.33     (b) by September 5 of 1997 and each subsequent year, 
  3.34  determine the local portion of the current year's levy by 
  3.35  subtracting the resulting amount from clause (a) from the 
  3.36  governmental unit's current year's levy. 
  4.1      Sec. 6.  Minnesota Statutes 1996, section 276A.06, 
  4.2   subdivision 5, is amended to read: 
  4.3      Subd. 5.  [AREAWIDE TAX RATE.] (a) On or before August 25 
  4.4   February 5 of 1997 and each subsequent year, the county auditor 
  4.5   shall certify to the administrative auditor that portion of the 
  4.6   levy of each governmental unit determined pursuant to 
  4.7   subdivision 3, clause (a).  The administrative auditor shall 
  4.8   then determine the areawide tax rate sufficient to yield an 
  4.9   amount equal to the sum of the levies from the areawide net tax 
  4.10  capacity.  
  4.11     (b) On or before September 1 February 10 of each year, the 
  4.12  administrative auditor shall certify the areawide tax rate to 
  4.13  each of the county auditors. 
  4.14     For the purposes of the notice required under section 
  4.15  275.065, the deadline for the certification under paragraph (a) 
  4.16  is October 10, and the deadline for certification under 
  4.17  paragraph (b) is October 15. 
  4.18     For any governmental unit for which the county auditor has 
  4.19  not yet determined the local tax rate by January 31, the county 
  4.20  auditor shall determine the areawide portion of the levy based 
  4.21  on an estimated tax rate.  In the following year, the 
  4.22  distribution levy of the unit must be adjusted to correct for 
  4.23  the difference between the distribution levy actually received 
  4.24  and the distribution levy that would have been received if the 
  4.25  actual tax rate had been used. 
  4.26     Sec. 7.  Minnesota Statutes 1996, section 473F.06, is 
  4.27  amended to read: 
  4.28     473F.06 [INCREASE IN NET TAX CAPACITY.] 
  4.29     On or before July August 15 of each year, the auditor of 
  4.30  each county in the area shall determine the amount, if any, by 
  4.31  which the net tax capacity determined in the preceding year 
  4.32  under section 473F.05, of commercial-industrial property subject 
  4.33  to taxation within each municipality in the auditor's county 
  4.34  exceeds the net tax capacity in 1971 of commercial-industrial 
  4.35  property subject to taxation within that municipality.  If a 
  4.36  municipality is located in two or more counties within the area, 
  5.1   the auditors of those counties shall certify the data required 
  5.2   by section 473F.05 to the county auditor who is responsible 
  5.3   under other provisions of law for allocating the levies of that 
  5.4   municipality between or among the affected counties.  That 
  5.5   county auditor shall determine the amount of the net excess, if 
  5.6   any, for the municipality under this section, and certify that 
  5.7   amount under section 473F.07.  Notwithstanding any other 
  5.8   provision of sections 473F.01 to 473F.13 to the contrary, in the 
  5.9   case of a municipality which is designated on July 24, 1971, as 
  5.10  a redevelopment area under section 401(a)(4) of the Public Works 
  5.11  and Economic Development Act of 1965, Public Law Number 89-136, 
  5.12  the increase in its net tax capacity of commercial-industrial 
  5.13  property for purposes of this section shall be determined in 
  5.14  each year by using as a base the net tax capacity of 
  5.15  commercial-industrial property in that municipality in the 1989 
  5.16  assessment year, rather than the net tax capacity of such 
  5.17  property in 1971.  The increase in total net tax capacity 
  5.18  determined by this section shall be reduced by the amount of any 
  5.19  decreases in net tax capacity of commercial-industrial property 
  5.20  resulting from any court decisions, court related stipulation 
  5.21  agreements, or abatements for a prior year, and only in the 
  5.22  amount of such decreases made during the 12-month period ending 
  5.23  on May 1 of the current assessment year, where such decreases, 
  5.24  if originally reflected in the determination of a prior year's 
  5.25  net tax capacity under section 473F.05, would have resulted in a 
  5.26  smaller contribution from the municipality in that year.  An 
  5.27  adjustment for such decreases shall be made only if the 
  5.28  municipality made a contribution in a prior year based on the 
  5.29  higher net tax capacity of the commercial-industrial property. 
  5.30     Sec. 8.  Minnesota Statutes 1996, section 473F.07, 
  5.31  subdivision 1, is amended to read: 
  5.32     Subdivision 1.  [AREAWIDE NET TAX CAPACITY.] Each county 
  5.33  auditor shall certify the determinations under sections 473F.05 
  5.34  and 473F.06 to the administrative auditor on or before August 1 
  5.35  15 of each year.  
  5.36     The administrative auditor shall determine an amount equal 
  6.1   to 40 percent of the sum of the amounts certified under section 
  6.2   473F.06.  The resulting amount shall be known as the "areawide 
  6.3   net tax capacity for ........(year)." 
  6.4      Sec. 9.  Minnesota Statutes 1996, section 473F.07, 
  6.5   subdivision 5, is amended to read: 
  6.6      Subd. 5.  [CERTIFICATION TO COUNTY AUDITOR.] The result of 
  6.7   the procedure prescribed by subdivision 4 shall be known as the 
  6.8   "areawide net tax capacity for ........(year) attributable to 
  6.9   ..................(municipality)."  The administrative auditor 
  6.10  shall certify such product to the auditor of the county in which 
  6.11  the municipality is located on or before August September 15. 
  6.12     Sec. 10.  Minnesota Statutes 1996, section 473F.08, 
  6.13  subdivision 2, is amended to read: 
  6.14     Subd. 2.  [COMPUTATION OF NET TAX CAPACITY.] The net tax 
  6.15  capacity of a governmental unit is its net tax capacity, as 
  6.16  determined in accordance with other provisions of law including 
  6.17  section 469.177, subdivision 3, subject to the following 
  6.18  adjustments:  
  6.19     (a) There shall be subtracted from its net tax capacity, in 
  6.20  each municipality in which the governmental unit exercises ad 
  6.21  valorem taxing jurisdiction, an amount which bears the same 
  6.22  proportion to 40 percent of the amount certified in that year 
  6.23  under sections 473F.06 and 473F.07 for the municipality as the 
  6.24  total preceding year's net tax capacity of commercial-industrial 
  6.25  property which is subject to the taxing jurisdiction of the 
  6.26  governmental unit within the municipality, determined without 
  6.27  regard to section 469.177, subdivision 3, bears to the total 
  6.28  preceding year's net tax capacity of commercial-industrial 
  6.29  property within the municipality, determined without regard to 
  6.30  section 469.177, subdivision 3; 
  6.31     (b) There shall be added to its net tax capacity, in each 
  6.32  municipality in which the governmental unit exercises ad valorem 
  6.33  taxing jurisdiction, an amount which bears the same proportion 
  6.34  to the areawide net tax capacity for the year attributable to 
  6.35  that municipality as the total preceding year's net tax capacity 
  6.36  of residential property which is subject to the taxing 
  7.1   jurisdiction of the governmental unit within the municipality 
  7.2   bears to the total preceding year's net tax capacity of 
  7.3   residential property of the municipality.  
  7.4      Sec. 11.  Minnesota Statutes 1996, section 473F.08, 
  7.5   subdivision 3, is amended to read: 
  7.6      Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
  7.7   apportion the levy of each governmental unit in the auditor's 
  7.8   county in the manner prescribed by this subdivision.  The 
  7.9   auditor shall: 
  7.10     (a) by August 20, determine the areawide portion of the 
  7.11  levy for each governmental unit by multiplying the local tax 
  7.12  rate of the governmental unit for the preceding current levy 
  7.13  year times the distribution value set forth in subdivision 2, 
  7.14  clause (b); and 
  7.15     (b) by September 5, determine the local portion of the 
  7.16  current year's levy by subtracting the resulting amount from 
  7.17  clause (a) from the governmental unit's current year's levy. 
  7.18     Sec. 12.  Minnesota Statutes 1996, section 473F.08, 
  7.19  subdivision 5, is amended to read: 
  7.20     Subd. 5.  [AREAWIDE TAX RATE.] (a) On or before August 25 
  7.21  February 5 of each year, the county auditor shall certify to the 
  7.22  administrative auditor that portion of the levy of each 
  7.23  governmental unit determined under subdivisions 3, clause (a), 
  7.24  3a, and 3b.  The administrative auditor shall then determine the 
  7.25  areawide tax rate sufficient to yield an amount equal to the sum 
  7.26  of such levies from the areawide net tax capacity. 
  7.27     (b) On or before September 1 February 10 of each year, the 
  7.28  administrative auditor shall certify the areawide tax rate to 
  7.29  each of the county auditors. 
  7.30     For the purposes of the notice required under section 
  7.31  275.065, the deadline for the certification under paragraph (a) 
  7.32  is October 10, and the deadline for certification under 
  7.33  paragraph (b) is October 15. 
  7.34     For any governmental unit for which the county auditor has 
  7.35  not yet determined the local tax rate by January 31, the county 
  7.36  auditor shall determine the areawide portion of the levy based 
  8.1   on an estimated tax rate.  In the following year, the 
  8.2   distribution levy of the unit must be adjusted to correct for 
  8.3   the difference between the distribution levy actually received 
  8.4   and the distribution levy that would have been received if the 
  8.5   actual tax rate had been used. 
  8.6      Sec. 13.  [REPEALER.] 
  8.7      Minnesota Statutes 1996, sections 276A.06, subdivision 9; 
  8.8   and 473F.08, subdivision 8a, are repealed. 
  8.9      Sec. 14.  [EFFECTIVE DATE.] 
  8.10     Sections 1 to 13 are effective for taxes payable in 1999 
  8.11  and subsequent years.