SF 998

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to aids to local governments; modifying the 
  1.3             city local government aid formula and adjusting city 
  1.4             homestead and agricultural credit aid; amending 
  1.5             Minnesota Statutes 2000, sections 273.1398, 
  1.6             subdivision 1, and by adding subdivisions; 477A.011, 
  1.7             subdivisions 27, 34, and by adding subdivisions; 
  1.8             477A.013, subdivisions 8 and 9; and 477A.03, 
  1.9             subdivision 2, and by adding a subdivision; repealing 
  1.10            Minnesota Statutes 2000, sections 477A.011, 
  1.11            subdivisions 36 and 37; and 477A.03, subdivision 4. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 273.1398, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  1.16  terms defined in this subdivision have the meanings given them. 
  1.17     (b) "Unique taxing jurisdiction" means the geographic area 
  1.18  subject to the same set of local tax rates. 
  1.19     (c) "Previous net tax capacity" means the product of the 
  1.20  appropriate net class rates for the year previous to the year in 
  1.21  which the aid is payable, and estimated market values for the 
  1.22  assessment two years prior to that in which aid is payable.  
  1.23  "Total previous net tax capacity" means the previous net tax 
  1.24  capacities for all property within the unique taxing 
  1.25  jurisdiction.  The total previous net tax capacity shall be 
  1.26  reduced by the sum of (1) the unique taxing jurisdiction's 
  1.27  previous net tax capacity of commercial-industrial property as 
  1.28  defined in section 473F.02, subdivision 3, or 276A.01, 
  2.1   subdivision 3, multiplied by the ratio determined pursuant to 
  2.2   section 473F.08, subdivision 6, or 276A.06, subdivision 7, for 
  2.3   the municipality, as defined in section 473F.02, subdivision 8, 
  2.4   or 276A.01, subdivision 8, in which the unique taxing 
  2.5   jurisdiction is located, (2) the previous net tax capacity of 
  2.6   the captured value of tax increment financing districts as 
  2.7   defined in section 469.177, subdivision 2, and (3) the previous 
  2.8   net tax capacity of transmission lines deducted from a local 
  2.9   government's total net tax capacity under section 273.425.  
  2.10  Previous net tax capacity cannot be less than zero. 
  2.11     (d) "Equalized market values" are market values that have 
  2.12  been equalized by dividing the assessor's estimated market value 
  2.13  for the second year prior to that in which the aid is payable by 
  2.14  the assessment sales ratios determined by class in the 
  2.15  assessment sales ratio study conducted by the department of 
  2.16  revenue pursuant to section 127A.48 in the second year prior to 
  2.17  that in which the aid is payable.  The equalized market values 
  2.18  shall equal the unequalized market values divided by the 
  2.19  assessment sales ratio. 
  2.20     (e) "Equalized school levies" means the amounts levied for: 
  2.21     (1) general education under section 126C.13, subdivision 2; 
  2.22     (2) supplemental revenue under section 126C.10, subdivision 
  2.23  10; 
  2.24     (3) transition revenue under section 126C.10, subdivision 
  2.25  20; and 
  2.26     (4) referendum revenue under section 126C.17. 
  2.27     (f) "Current local tax rate" means the quotient derived by 
  2.28  dividing the taxes levied within a unique taxing jurisdiction 
  2.29  for taxes payable in the year prior to that for which aids are 
  2.30  being calculated by the total previous net tax capacity of the 
  2.31  unique taxing jurisdiction.  
  2.32     (g) For purposes of calculating and allocating homestead 
  2.33  and agricultural credit aid authorized pursuant to subdivision 2 
  2.34  and the disparity reduction aid authorized in subdivision 3, 
  2.35  "gross taxes levied on all properties," "gross taxes," or "taxes 
  2.36  levied" means the total net tax capacity based taxes levied on 
  3.1   all properties except that levied on the captured value of tax 
  3.2   increment districts as defined in section 469.177, subdivision 
  3.3   2, and that levied on the portion of commercial industrial 
  3.4   properties' assessed value or gross tax capacity, as defined in 
  3.5   section 473F.02, subdivision 3, subject to the areawide tax as 
  3.6   provided in section 473F.08, subdivision 6, in a unique taxing 
  3.7   jurisdiction.  "Gross taxes" are before any reduction for 
  3.8   disparity reduction aid but "taxes levied" are after any 
  3.9   reduction for disparity reduction aid.  Gross taxes levied or 
  3.10  taxes levied cannot be less than zero.  
  3.11     "Taxes levied" excludes equalized school levies. 
  3.12     (h) "Household adjustment factor" means the number of 
  3.13  households, for the year most recently determined as of July 1 
  3.14  in the aid calculation year, divided by the number of households 
  3.15  for the year immediately preceding the year for which the number 
  3.16  of households has most recently been determined as of July 1.  
  3.17  The household adjustment factor cannot be less than one.  
  3.18     (i) "Growth adjustment factor" means the household 
  3.19  adjustment factor in the case of counties.  In the case of 
  3.20  cities, towns, school districts, and special taxing districts, 
  3.21  the growth adjustment factor equals one.  The growth adjustment 
  3.22  factor cannot be less than one.  
  3.23     (j) "Homestead and agricultural credit base" means the 
  3.24  previous year's certified homestead and agricultural credit aid 
  3.25  determined under subdivision 2 less any permanent aid reduction 
  3.26  in the previous year to homestead and agricultural credit 
  3.27  aid and plus any permanent increase in the previous year to 
  3.28  homestead and agricultural credit aid.  
  3.29     (k) "Net tax capacity adjustment" means (1) the tax base 
  3.30  differential defined in subdivision 1a, multiplied by (2) the 
  3.31  unique taxing jurisdiction's current local tax rate.  The net 
  3.32  tax capacity adjustment cannot be less than zero. 
  3.33     (l) "Fiscal disparity adjustment" means a taxing 
  3.34  jurisdiction's fiscal disparity distribution levy under section 
  3.35  473F.08, subdivision 3, clause (a), or 276A.06, subdivision 3, 
  3.36  clause (a), for taxes payable in the year prior to that for 
  4.1   which aids are being calculated, multiplied by the ratio of the 
  4.2   tax base differential percent referenced in subdivision 1a for 
  4.3   the highest class rate for class 3 property for taxes payable in 
  4.4   the year prior to that for which aids are being calculated to 
  4.5   the highest class rate for class 3 property for taxes payable in 
  4.6   the second prior year to that for which aids are being 
  4.7   calculated.  In the case of school districts, the fiscal 
  4.8   disparity distribution levy shall exclude that part of the levy 
  4.9   attributable to equalized school levies. 
  4.10     [EFFECTIVE DATE.] This section is effective for aids 
  4.11  payable in calendar year 2002 and thereafter. 
  4.12     Sec. 2.  Minnesota Statutes 2000, section 273.1398, is 
  4.13  amended by adding a subdivision to read: 
  4.14     Subd. 4b.  [AID ADJUSTMENT FOR 2002 CITY LOCAL GOVERNMENT 
  4.15  AID INCREASES.] Payments to a city under subdivision 2 or 
  4.16  section 273.166 for calendar year 2002 are equal to (1) payments 
  4.17  under those sections in calendar year 2001 minus (2) the 
  4.18  difference between the amount the city is certified to receive 
  4.19  in aid under sections 477A.011 to 477A.014 in calendar year 2002 
  4.20  and what the city would have received in calendar year 2002 
  4.21  under the formula in Minnesota Statutes 2000, sections 477A.011 
  4.22  to 477A.014.  The amount of homestead and agricultural credit 
  4.23  aid remaining after the offset may not be less than zero. 
  4.24     [EFFECTIVE DATE.] This section is effective for aids 
  4.25  payable in calendar year 2002. 
  4.26     Sec. 3.  Minnesota Statutes 2000, section 273.1398, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 4c.  [ADJUSTMENT FOR LOW INCOME HOUSING 
  4.29  AID.] Payments to a city under subdivision 2 or section 273.166 
  4.30  for calendar year 2004 are permanently increased by the amount 
  4.31  certified to be paid to it in 2003 under section 477A.06. 
  4.32     [EFFECTIVE DATE.] This section is effective for aids 
  4.33  payable in calendar year 2004. 
  4.34     Sec. 4.  Minnesota Statutes 2000, section 273.1398, is 
  4.35  amended by adding a subdivision to read: 
  4.36     Subd. 4d.  [ADJUSTMENT FOR SELECTED CITIES.] Payments to a 
  5.1   city under subdivision 2 or section 273.166 shall be decreased 
  5.2   by $450,000 in calendar year 2009 if the city had an increased 
  5.3   city aid base for local government aid purposes in 2001 under 
  5.4   section 477A.01, subdivision 36, paragraph (f). 
  5.5      [EFFECTIVE DATE.] This section is effective for aids 
  5.6   payable in calendar years 2002 to 2008. 
  5.7      Sec. 5.  Minnesota Statutes 2000, section 477A.011, 
  5.8   subdivision 27, is amended to read: 
  5.9      Subd. 27.  [REVENUE BASE.] "Revenue base" means the amount 
  5.10  levied for taxes payable in the previous year, including the 
  5.11  levy on the fiscal disparity distribution under section 276A.06, 
  5.12  subdivision 3, paragraph (a), or 473F.08, subdivision 3, 
  5.13  paragraph (a), and before reduction for the homestead and 
  5.14  agricultural credit aid under section 273.1398, subdivision 2, 
  5.15  equalization aid under section 477A.013, subdivision 5, and 
  5.16  disparity reduction aid under section 273.1398, subdivision 3; 
  5.17  plus the originally certified local government aid in the 
  5.18  previous year under sections 477A.011 and 477A.013; the local 
  5.19  performance aid in the previous year under section 477A.05; the 
  5.20  homestead and agricultural credit aid in the previous year under 
  5.21  section 273.1398, subdivision 2; and the taconite aids received 
  5.22  in the previous year under sections 298.28 and 298.282. 
  5.23     [EFFECTIVE DATE.] This section is effective for aids 
  5.24  payable in calendar year 2002 and thereafter. 
  5.25     Sec. 6.  Minnesota Statutes 2000, section 477A.011, is 
  5.26  amended by adding a subdivision to read: 
  5.27     Subd. 27a.  [REVENUE BASE PER CAPITA.] "Revenue base per 
  5.28  capita" means a city's revenue base divided by the city's 
  5.29  population for two calendar years prior to the payable year of 
  5.30  the aids and levies used in calculating the revenue base. 
  5.31     [EFFECTIVE DATE.] This section is effective for aids 
  5.32  payable in calendar year 2002 and thereafter. 
  5.33     Sec. 7.  Minnesota Statutes 2000, section 477A.011, is 
  5.34  amending by adding a subdivision to read: 
  5.35     Subd. 27b.  [AVERAGE SMALL CITY PER CAPITA REVENUE 
  5.36  BASE.] "Average small city per capita revenue base" means the 
  6.1   sum of the revenue base per capita for all cities with a 
  6.2   population of less than 2,500 divided by the number of cities 
  6.3   with a population less than 2,500. 
  6.4      [EFFECTIVE DATE.] This section is effective for aids 
  6.5   payable in calendar year 2002 and thereafter. 
  6.6      Sec. 8.  Minnesota Statutes 2000, section 477A.011, 
  6.7   subdivision 34, is amended to read: 
  6.8      Subd. 34.  [PER CAPITA CITY REVENUE NEED.] (a) For a city 
  6.9   with a population equal to or greater than 2,500, "per capita 
  6.10  city revenue need" is the sum of (1) 3.462312 5.15088 times the 
  6.11  pre-1940 housing percentage; plus (2) 2.093826 1.94802 times the 
  6.12  commercial industrial percentage; plus (3) 6.862552 15.81637 
  6.13  times the population decline percentage; plus (4) .00026 times 
  6.14  the city population 4.72462 times the single parent percentage; 
  6.15  plus (5) 152.0141 0.02877 times the heating degree days; minus 
  6.16  (6) 59.529. 
  6.17     (b) For a city with a population less than 2,500, "city 
  6.18  revenue need" is the sum of (1) 1.795919 times the pre-1940 
  6.19  housing percentage; plus (2) 1.562138 times the commercial 
  6.20  industrial percentage; plus (3) 4.177568 times the population 
  6.21  decline percentage; plus (4) 1.04013 times the transformed 
  6.22  population; minus (5) 107.475 "per capita city revenue need" is 
  6.23  equal to the lesser of (1) the sum of the city's revenue base 
  6.24  per capita for the four most recently available calendar years 
  6.25  divided by four, or (2) the average small city per capita 
  6.26  revenue base per capita for the last four years which exceeds 
  6.27  the average small city per capita revenue base. 
  6.28     (c) The per capita city revenue need cannot be less than 
  6.29  zero. 
  6.30     (d) For calendar year 1998 and subsequent years, the city 
  6.31  revenue need for a city, as determined in paragraphs (a) to (c), 
  6.32  is multiplied by the ratio of the annual implicit price deflator 
  6.33  for government consumption expenditures and gross investment for 
  6.34  state and local governments as prepared by the United States 
  6.35  Department of Commerce, for the most recently available year to 
  6.36  the 1993 implicit price deflator for state and local government 
  7.1   purchases. 
  7.2      [EFFECTIVE DATE.] This section is effective for aids 
  7.3   payable in calendar year 2002 and thereafter. 
  7.4      Sec. 9.  Minnesota Statutes 2000, section 477A.011, is 
  7.5   amended by adding a subdivision to read: 
  7.6      Subd. 38.  [SINGLE PARENT PERCENTAGE.] "Single parent 
  7.7   percentage" for a city is equal to 100 times the number of 
  7.8   households headed by a single parent in the city divided by the 
  7.9   total number of households for that city, as reported in the 
  7.10  most recently available federal census. 
  7.11     [EFFECTIVE DATE.] This section is effective for aids 
  7.12  payable in calendar year 2002 and thereafter. 
  7.13     Sec. 10.  Minnesota Statutes 2000, section 477A.011, is 
  7.14  amended by adding a subdivision to read: 
  7.15     Subd. 39.  [HEATING DEGREE DAYS.] "Heating degree days" for 
  7.16  a city is equal to the total number of heating degree days at 
  7.17  the closest reporting weather station for the period 1961 
  7.18  through 1990 as prepared by the state climatologist in the 
  7.19  department of natural resources.  For purposes of this 
  7.20  subdivision, "closest reporting weather station" means the 
  7.21  station closest to the city's center as measured by the city's 
  7.22  longitude and latitude as reported in the most recent federal 
  7.23  census. 
  7.24     [EFFECTIVE DATE.] This section is effective for aids 
  7.25  payable in calendar year 2002 and thereafter. 
  7.26     Sec. 11.  Minnesota Statutes 2000, section 477A.013, 
  7.27  subdivision 8, is amended to read: 
  7.28     Subd. 8.  [CITY FORMULA AID.] In calendar year 1994 2002 
  7.29  and subsequent years, the formula aid for a city is equal to the 
  7.30  need increase percentage multiplied by the difference between 
  7.31  (1) the per capita city's revenue need multiplied by its 
  7.32  population, and (2) the city's net tax capacity multiplied by 
  7.33  the tax effort rate.  No city may have a formula aid amount less 
  7.34  than zero.  The need increase percentage must be the same for 
  7.35  all cities.  
  7.36     Notwithstanding the prior sentence, in 1995 only, the need 
  8.1   increase percentage for a city shall be twice the need increase 
  8.2   percentage applicable to other cities if:  
  8.3      (1) the city, in 1992 or 1993, transferred an amount from 
  8.4   governmental funds to their sewer and water fund, and 
  8.5      (2) the amount transferred exceeded their net levy for 
  8.6   taxes payable in the year in which the transfer occurred. 
  8.7      The applicable need increase percentage or percentages must 
  8.8   be calculated by the department of revenue so that the total of 
  8.9   the aid under subdivision 9 equals the total amount available 
  8.10  for aid under section 477A.03.  
  8.11     [EFFECTIVE DATE.] This section is effective for aids 
  8.12  payable in calendar year 2002 and thereafter. 
  8.13     Sec. 12.  Minnesota Statutes 2000, section 477A.013, 
  8.14  subdivision 9, is amended to read: 
  8.15     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
  8.16  1994 and thereafter, each city shall receive an aid distribution 
  8.17  equal to the sum of (1) the city formula aid under subdivision 
  8.18  8, and (2) its city aid base 2002 and thereafter, each city 
  8.19  shall receive an aid distribution equal to its formula aid under 
  8.20  subdivision 8. 
  8.21     (b) The percentage increase for a first class city in 
  8.22  calendar year 1995 and thereafter shall not exceed the 
  8.23  percentage increase in the sum of the aid to all cities under 
  8.24  this section in the current calendar year compared to the sum of 
  8.25  the aid to all cities in the previous year. 
  8.26     (c) The total aid for any city, except a first class city, 
  8.27  shall not exceed the sum of (1) ten percent of the city's net 
  8.28  levy for the year prior to the aid distribution plus (2) its 
  8.29  total aid in the previous year before any increases or decreases 
  8.30  under sections 16A.711, subdivision 5, and 477A.0132. 
  8.31     (d) Notwithstanding paragraph (c), in 1995 only, for cities 
  8.32  which in 1992 or 1993 transferred an amount from governmental 
  8.33  funds to their sewer and water fund in an amount greater than 
  8.34  their net levy for taxes payable in the year in which the 
  8.35  transfer occurred, the total aid shall not exceed the sum of (1) 
  8.36  20 percent of the city's net levy for the year prior to the aid 
  9.1   distribution plus (2) its total aid in the previous year before 
  9.2   any increases or decreases under sections 16A.711, subdivision 
  9.3   5, and 477A.0132 The total aid under this section and under 
  9.4   sections 298.28 and 298.282 for any city must not exceed 90 
  9.5   percent of the city's revenue base in 2002. 
  9.6      [EFFECTIVE DATE.] This section is effective for aids 
  9.7   payable in calendar year 2002 and thereafter. 
  9.8      Sec. 13.  Minnesota Statutes 2000, section 477A.03, 
  9.9   subdivision 2, is amended to read: 
  9.10     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
  9.11  discharge the duties imposed by sections 477A.011 to 477A.014 is 
  9.12  annually appropriated from the general fund to the commissioner 
  9.13  of revenue.  
  9.14     (b) Aid payments to counties under section 477A.0121 are 
  9.15  limited to $20,265,000 in 1996.  Aid payments to counties under 
  9.16  section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
  9.17  payable in 1998 and thereafter, the total aids paid under 
  9.18  section 477A.0121 are the amounts certified to be paid in the 
  9.19  previous year, adjusted for inflation as provided under 
  9.20  subdivision 3. 
  9.21     (c)(i) For aids payable in 1998 and thereafter, the total 
  9.22  aids paid to counties under section 477A.0122 are the amounts 
  9.23  certified to be paid in the previous year, adjusted for 
  9.24  inflation as provided under subdivision 3. 
  9.25     (ii) Aid payments to counties under section 477A.0122 in 
  9.26  2000 are further increased by an additional $20,000,000 in 2000. 
  9.27     (d) Aid payments to cities in 1999 under section 477A.013, 
  9.28  subdivision 9, are limited to $380,565,489.  For aids payable in 
  9.29  2000, the total aids paid under section 477A.013, subdivision 9, 
  9.30  are the amounts certified to be paid in the previous year, 
  9.31  adjusted for inflation as provided in subdivision 3, and 
  9.32  increased by the amount necessary to effectuate Laws 1999, 
  9.33  chapter 243, article 5, section 48, paragraph (b).  For aids 
  9.34  payable in 2001 through 2003, the total aids paid under section 
  9.35  477A.013, subdivision 9, are the amounts certified to be paid in 
  9.36  the previous year, adjusted for inflation as provided under 
 10.1   subdivision 3 5.  For aids payable in 2004, the total aids paid 
 10.2   under section 477A.013, subdivision 9, are the amounts certified 
 10.3   to be paid in the previous year, adjusted for inflation as 
 10.4   provided under subdivision 3, and increased by the amount 
 10.5   certified to be paid in 2003 under section 477A.06.  For aids 
 10.6   payable in 2005 and thereafter, the total aids paid under 
 10.7   section 477A.013, subdivision 9, are the amounts certified to be 
 10.8   paid in the previous year, adjusted for inflation as provided 
 10.9   under subdivision 3.  The additional amount authorized under 
 10.10  subdivision 4 is not included when calculating the appropriation 
 10.11  limits under this paragraph. 
 10.12     [EFFECTIVE DATE.] This section is effective for aids 
 10.13  payable in calendar year 2002 and thereafter. 
 10.14     Sec. 14.  Minnesota Statutes 2000, section 477A.03, is 
 10.15  amended by adding a subdivision to read: 
 10.16     Subd. 5.  [CITY AID ADJUSTMENT.] In 2003 and subsequent 
 10.17  years, the total aids paid under section 477A.013, subdivision 
 10.18  9, shall be increased by an amount equal to 
 10.19     (1) the amount certified to be paid under that section in 
 10.20  the previous year, multiplied by 
 10.21     (2) one plus the percentage increase in the estimated total 
 10.22  revenues collected under sections 290.06, subdivision 2c, and 
 10.23  290.091, and chapter 297A in the fiscal year ended June 30 of 
 10.24  the year in which the aid is to be paid compared to the revenues 
 10.25  collected in the previous fiscal year.  For purposes of this 
 10.26  subdivision, "total revenues collected" are the revenues 
 10.27  collected prior to any rebate of collected revenues to taxpayers.
 10.28     [EFFECTIVE DATE.] This section is effective for aids 
 10.29  payable in 2003 and subsequent years. 
 10.30     Sec. 15.  [REPEALER.] 
 10.31     Minnesota Statutes 2000, sections 477A.011, subdivisions 36 
 10.32  and 37; and 477A.03, subdivision 4, are repealed. 
 10.33     [EFFECTIVE DATE.] This section is effective for aids 
 10.34  payable in calendar year 2002 and thereafter.