SF 998

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to property taxes; providing a reduced class 
  1.3             rate to new or expanded commercial/industrial 
  1.4             properties locating in transit zones; amending 
  1.5             Minnesota Statutes 1994, section 273.13, subdivision 
  1.6             24; proposing coding for new law in Minnesota 
  1.7             Statutes, chapter 473. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 273.13, 
  1.10  subdivision 24, is amended to read: 
  1.11     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  1.12  property and utility real and personal property, except class 5 
  1.13  property as identified in subdivision 31, clause (1), is class 
  1.14  3a.  It has a class rate of three percent of the first $100,000 
  1.15  of market value for taxes payable in 1993 and thereafter, and 
  1.16  5.06 percent of the market value over $100,000.  In the case of 
  1.17  state-assessed commercial, industrial, and utility property 
  1.18  owned by one person or entity, only one parcel has a reduced 
  1.19  class rate on the first $100,000 of market value.  In the case 
  1.20  of other commercial, industrial, and utility property owned by 
  1.21  one person or entity, only one parcel in each county has a 
  1.22  reduced class rate on the first $100,000 of market value, except 
  1.23  that: 
  1.24     (1) if the market value of the parcel is less than 
  1.25  $100,000, and additional parcels are owned by the same person or 
  1.26  entity in the same city or town within that county, the reduced 
  2.1   class rate shall be applied up to a combined total market value 
  2.2   of $100,000 for all parcels owned by the same person or entity 
  2.3   in the same city or town within the county; 
  2.4      (2) in the case of grain, fertilizer, and feed elevator 
  2.5   facilities, as defined in section 18C.305, subdivision 1, or 
  2.6   232.21, subdivision 8, the limitation to one parcel per owner 
  2.7   per county for the reduced class rate shall not apply, but there 
  2.8   shall be a limit of $100,000 of preferential value per site of 
  2.9   contiguous parcels owned by the same person or entity.  Only the 
  2.10  value of the elevator portion of each parcel shall qualify for 
  2.11  treatment under this clause.  For purposes of this subdivision, 
  2.12  contiguous parcels include parcels separated only by a railroad 
  2.13  or public road right-of-way; and 
  2.14     (3) in the case of property owned by a nonprofit charitable 
  2.15  organization that qualifies for tax exemption under section 
  2.16  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  2.17  through December 31, 1993, if the property is used as a business 
  2.18  incubator, the limitation to one parcel per owner per county for 
  2.19  the reduced class rate shall not apply, provided that the 
  2.20  reduced rate applies only to the first $100,000 of value per 
  2.21  parcel owned by the organization.  As used in this clause, a 
  2.22  "business incubator" is a facility used for the development of 
  2.23  nonretail businesses, offering access to equipment, space, 
  2.24  services, and advice to the tenant businesses, for the purpose 
  2.25  of encouraging economic development, diversification, and job 
  2.26  creation in the area served by the organization. 
  2.27     To receive the reduced class rate on additional parcels 
  2.28  under clause (1), (2), or (3), the taxpayer must notify the 
  2.29  county assessor that the taxpayer owns more than one parcel that 
  2.30  qualifies under clause (1), (2), or (3). 
  2.31     (b) Employment property defined in section 469.166, during 
  2.32  the period provided in section 469.170, shall constitute class 
  2.33  3b and has a class rate of 2.3 percent of the first $50,000 of 
  2.34  market value and 3.6 percent of the remainder, except that for 
  2.35  employment property located in a border city enterprise zone 
  2.36  designated pursuant to section 469.168, subdivision 4, paragraph 
  3.1   (c), the class rate of the first $100,000 of market value and 
  3.2   the class rate of the remainder is determined under paragraph 
  3.3   (a), unless the governing body of the city designated as an 
  3.4   enterprise zone determines that a specific parcel shall be 
  3.5   assessed pursuant to the first clause of this sentence.  The 
  3.6   governing body may provide for assessment under the first clause 
  3.7   of the preceding sentence only for property which is located in 
  3.8   an area which has been designated by the governing body for the 
  3.9   receipt of tax reductions authorized by section 469.171, 
  3.10  subdivision 1. 
  3.11     (c) Structures which are (i) located on property classified 
  3.12  as class 3a, (ii) constructed after January 2, 1995, and (iii) 
  3.13  located in a transit zone as defined under section 473.3915, 
  3.14  shall have a class rate of four percent on that portion of the 
  3.15  market value in excess of $100,000.  The four percent rate shall 
  3.16  also apply to that portion of any class 3a structure located in 
  3.17  a transit zone constructed after January 2, 1995, even if the 
  3.18  remainder of the structure was constructed prior to January 2, 
  3.19  1995.  For the purposes of this paragraph, a structure shall be 
  3.20  considered to be located in a transit zone if any portion of the 
  3.21  structure lies within the zone. 
  3.22     Sec. 2.  [473.3915] [TRANSIT ZONES.] 
  3.23     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  3.24  section, the terms defined in subdivisions 2 and 3 have the 
  3.25  meaning given them. 
  3.26     Subd. 2.  [TRANSIT ROUTE.] "Transit route" means a route 
  3.27  along which transportation of passengers is provided by a motor 
  3.28  vehicle or other means of conveyance, including light rail 
  3.29  transit, by any person operating on a regular and continuing 
  3.30  basis as a common carrier on fixed routes and schedules.  
  3.31  "Transit route" does not include (1) a route along which 
  3.32  transportation is provided for children to or from school or for 
  3.33  passengers between a common carrier terminal station and a hotel 
  3.34  or motel, (2) transportation by common carrier railroad or by 
  3.35  taxi, (3) transportation furnished by a person solely for that 
  3.36  person's employees or customers, or (4) paratransit. 
  4.1      Subd. 3.  [TRANSIT ZONE.] "Transit zone" means the area 
  4.2   within one-quarter of a mile of a transit route that is also 
  4.3   within the metropolitan urban service area, as determined by the 
  4.4   council.  "Transit zone" includes any light rail transit route 
  4.5   for which funds for construction have been committed. 
  4.6      Subd. 4.  [TRANSIT ZONES; MAP AND PLAN.] For the purposes 
  4.7   of section 273.13, subdivision 24, the council shall designate 
  4.8   transit zones and identify them on a detailed map and in a 
  4.9   plan.  The council shall review the map and plan once a year and 
  4.10  revise them as necessary to indicate the current transit zones.  
  4.11  The council shall provide each county and city assessor in the 
  4.12  metropolitan area a copy of the current map and plan. 
  4.13     Sec. 3.  [TRANSIT ZONE MAP; DATE FIRST PRODUCED.] 
  4.14     The metropolitan council shall produce an initial version 
  4.15  of the transit zone map required under section 473.3915, 
  4.16  subdivision 4, by January 1, 1996. 
  4.17     Sec. 4.  [APPLICATION.] 
  4.18     Sections 2 and 3 apply in the counties of Anoka, Carver, 
  4.19  Dakota, Hennepin, Ramsey, Scott, and Washington. 
  4.20     Sec. 5.  [EFFECTIVE DATE.] 
  4.21     Section 1 is effective for 1996 assessments for taxes 
  4.22  payable in 1997 and subsequent years.