SF 1455

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

A bill for an act
relating to taxation; property tax; modifying the
truth in taxation provisions; adding a taxpayer
satisfaction survey; eliminating certain required
public hearings and newspaper advertisements; amending
Minnesota Statutes 2004, sections 275.065,
subdivisions 1c, 3, 4, 7, by adding subdivisions;
275.07, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 275; repealing Minnesota
Statutes 2004, section 275.065, subdivisions 5a, 6,
6b, 8.

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

Section 1.

new text begin [275.063] PROPOSED PROPERTY TAXES; TAXPAYER
SATISFACTION SURVEY; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this
section and section 275.065, the following definitions apply.
new text end

new text begin Subd. 2. new text end

new text begin Budget; counties. new text end

new text begin For counties, "budget" means
total government fund expenditures, as defined by the state
auditor under section 375.169, less any expenditures for direct
payments to recipients or providers for the human service aids
listed below:
new text end

new text begin (1) Minnesota family investment program under chapters 256J
and 256K;
new text end

new text begin (2) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
new text end

new text begin (3) general assistance medical care under section 256D.03,
subdivision 6;
new text end

new text begin (4) general assistance under section 256D.03, subdivision
2;
new text end

new text begin (5) Minnesota supplemental aid under section 256D.36,
subdivision 1;
new text end

new text begin (6) preadmission screening under section 256B.0911, and
alternative care grants under section 256B.0913;
new text end

new text begin (7) general assistance medical care claims processing,
medical transportation, and related costs under section 256D.03,
subdivision 4;
new text end

new text begin (8) medical transportation and related costs under section
256B.0625, subdivisions 17 to 18a;
new text end

new text begin (9) group residential housing under section 256I.05,
subdivision 8, transferred from programs in clauses (4) and (5);
or
new text end

new text begin (10) any successor programs to those listed in clauses (1)
to (9).
new text end

new text begin Subd. 3. new text end

new text begin Budget; cities. new text end

new text begin For cities, "budget" means
total government fund expenditures, as defined by the state
auditor under section 471.6965, less any expenditures for
improvements or services that are specially assessed or charged
under chapter 429, 430, 435, or the provisions of any other law
or charter.
new text end

new text begin Subd. 4. new text end

new text begin Population. new text end

new text begin "Population" of a city means the
most recent population as determined by the state demographer
under section 4A.02 or by the Metropolitan Council under section
477A.011, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Property tax levy subject to approval; counties
and cities. new text end

new text begin For a county or a city, "property tax levy subject
to approval" means the jurisdiction's levy excluding (1) any
debt levy, and (2) any previously voter-approved levy.
new text end

new text begin Subd. 6. new text end

new text begin Debt levy. new text end

new text begin "Debt levy" means a levy to:
new text end

new text begin (1) pay the costs of principal and interest on bonded
indebtedness;
new text end

new text begin (2) pay the costs of principal and interest on certificates
of indebtedness issued for any corporate purpose except:
new text end

new text begin (i) tax anticipation or aid anticipation certificates of
indebtedness;
new text end

new text begin (ii) certificates of indebtedness issued under sections
298.28 and 298.282;
new text end

new text begin (iii) certificates of indebtedness used to fund current
expenses or to pay the costs of extraordinary expenditures that
result from a public emergency; or
new text end

new text begin (iv) certificates of indebtedness used to fund an
insufficiency in tax receipts or an insufficiency in other
revenue sources.
new text end

new text begin (3) pay another city, town, county, or school district for
principal and interest on general obligation debt; or
new text end

new text begin (4) fund payments made to the Minnesota State Armory
Building Commission under section 193.145, subdivision 2, to
retire the principal and interest on armory construction bonds.
new text end

new text begin Subd. 7. new text end

new text begin State property tax credits. new text end

new text begin "State property tax
credits" means any credits received under sections 273.119;
273.123; 273.135; 273.1384; 273.1391; 273.1398, subdivision 4;
469.171; and 473H.10.
new text end

new text begin Subd. 8. new text end

new text begin Jurisdiction subject to taxpayer satisfaction
survey. new text end

new text begin A "jurisdiction subject to the taxpayer satisfaction
survey" means any county or any city with a population of 500 or
greater.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 275.065,
subdivision 1c, is amended to read:

Subd. 1c.

Levy; shared, merged, consolidated services.

If two or more taxing authorities are in the process of
negotiating an agreement for sharing, merging, or consolidating
services between those taxing authorities at the time the
proposed levy is to be certified under subdivision 1, each
taxing authority involved in the negotiation shall certify its
total proposed levy as provided in that subdivision, including a
notification to the county auditor of the specific service
involved in the agreement which is not yet finalized. The
affected taxing authorities may amend their proposed levies
under subdivision 1 until October deleted text begin 10 deleted text end new text begin 1 new text end for levy amounts relating
only to the specific service involved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 3.

Minnesota Statutes 2004, section 275.065,
subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The
county auditor shall prepare and the county treasurer shall
deliver after November deleted text begin 10 deleted text end new text begin 8 new text end and on or before November deleted text begin 24 deleted text end new text begin 19 new text end each
year, by first class mail to each taxpayer at the address listed
on the county's current year's assessment roll, a notice of
proposed property taxes.

(b) The commissioner of revenue shall prescribe the form of
the notice. new text begin The form must be in the form prescribed by the
commissioner.
new text end

(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to
collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax
amount will be its proposed tax new text begin unless the town changes its levy
at a special town meeting under section 365.52 new text end . deleted text begin In the case of
taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing
authority, including regional library districts established
under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other
special taxing districts and towns, will hold a public meeting
to receive public testimony on the proposed budget and proposed
or final property tax levy, or, in case of a school district, on
the current budget and proposed property tax levy. It must
clearly state the time and place of each taxing authority's
meeting, a telephone number for the taxing authority that
taxpayers may call if they have questions related to the notice,
and an address where comments will be received by mail.
deleted text end

(d) The notice must state for each parcel deleted text begin :
deleted text end

deleted text begin (1) deleted text end the market value of the property as determined under
section 273.11, and used for computing property taxes payable in
the following year and for taxes payable in the current year as
each appears in the records of the county assessor on November 1
of the current year; and, in the case of residential property,
whether the property is classified as homestead or
nonhomestead. The notice must clearly inform taxpayers of the
years to which the market values apply and that the values are
final values deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) deleted text end new text begin (e) new text end The deleted text begin items listed below, shown separately by deleted text end new text begin notice
must state for each parcel, for both taxes payable in the
current year and the proposed taxes payable in the following
year each of the following tax amounts, net of state property
tax credits: new text end county new text begin tax new text end , city or town new text begin tax new text end , deleted text begin and deleted text end state deleted text begin general
deleted text end tax, deleted text begin net of the residential and agricultural homestead credit
under section 273.1384, deleted text end voter approved school deleted text begin levy deleted text end new text begin tax new text end ,
other deleted text begin local deleted text end school deleted text begin levy deleted text end new text begin tax new text end , deleted text begin and deleted text end the sum of the new text begin tax amounts
for new text end special taxing districts, new text begin the tax increment tax on captured
tax capacity, if applicable, plus the fiscal disparities
areawide tax under chapter 276A or 473F, if applicable, new text end and deleted text begin as deleted text end a
total deleted text begin of deleted text end new text begin tax amount for new text end all taxing authorities deleted text begin :
deleted text end

deleted text begin (i) the actual tax for taxes payable in the current year;
and
deleted text end

deleted text begin (ii) the proposed tax amount deleted text end .

deleted text begin If the county levy under clause (2) includes an amount for
a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount.
deleted text end

deleted text begin In the case of a town or the state general tax, the final
tax shall also be its proposed tax unless the town changes its
levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision
9, that a referendum will be held in the school district at the
November general election, the county auditor must note next to
the school district's proposed amount that a referendum is
pending and that, if approved by the voters, the tax amount may
be higher than shown on the notice. In the case of the city of
Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed
separately from the remaining amount of the city's levy. In the
case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of
the city's levy. In the case of a parcel where tax increment or
the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide
tax must each be stated separately and not included in the sum
of the special taxing districts; and
deleted text end

deleted text begin (3) the increase or decrease between the total taxes
payable in the current year and the total proposed taxes,
expressed as a percentage.
deleted text end

new text begin (f) The notice must state for each parcel the increase or
decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.
new text end

new text begin (g) The notice must state for each parcel any additional
tax that would apply to the property under a referendum pending
at the November general election. Any amount shown under this
item should be indicated as pending the results of referendum
elections, and shall not be reflected in the total proposed net
tax amount.
new text end

new text begin (h) new text end For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax
amount.

deleted text begin (e) deleted text end new text begin (i) new text end The notice must clearly state that the proposed or
final taxes do not include the following:

(1) special assessments;

(2) levies approved by the voters after the date new text begin of new text end the
deleted text begin proposed taxes are certified, including bond referenda and
school district levy referenda deleted text end new text begin November general election new text end ;

(3) deleted text begin a levy limit increase approved by the voters by the
first Tuesday after the first Monday in November of the levy
year as provided under section 275.73;
deleted text end

deleted text begin (4) deleted text end amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;

deleted text begin (5) deleted text end new text begin (4) new text end amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and

deleted text begin (6) deleted text end new text begin (5) new text end the contamination tax imposed on properties which
received market value reductions for contamination.

deleted text begin (f) deleted text end new text begin (j) new text end Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.

deleted text begin (g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory
documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the
homestead classification in that assessment year, the assessor
shall reclassify the property to homestead for taxes payable in
the following year.
deleted text end

deleted text begin (h) deleted text end new text begin (k) new text end In the case of class 4 residential property used as
a residence for lease or rental periods of 30 days or more, the
taxpayer must either:

(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the
premises of the property.

The new text begin copy of the new text end notice must be mailed or posted by the
taxpayer by November deleted text begin 27 deleted text end new text begin 22 new text end or within three days of receipt of
the notice, whichever is later. A taxpayer may notify the
county treasurer of the address of the taxpayer, agent,
caretaker, or manager of the premises to which the notice must
be mailed in order to fulfill the requirements of this paragraph.

deleted text begin (i) deleted text end new text begin (l) new text end For purposes of deleted text begin this subdivision, subdivisions 5a
and 6 deleted text end new text begin section 276.04 new text end , "metropolitan special taxing districts"
means the following taxing districts in the seven-county
metropolitan area that levy a property tax for any of the
specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667,
473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section
473.711.

new text begin (m) new text end For purposes of this section, any levies made by the
regional rail authorities in the county of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and
shall be discussed at new text begin one of new text end that county's deleted text begin public
hearing deleted text end new text begin regularly scheduled board meetings new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 4.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Taxpayer satisfaction survey. new text end

new text begin (a) A taxpayer
satisfaction survey form must be attached to or enclosed with
each proposed property tax notice under subdivision 3. The form
must include a property description or a code number that allows
the property to be uniquely identified.
new text end

new text begin (b) The taxpayer satisfaction survey form shall present the
following question for each jurisdiction subject to the taxpayer
satisfaction survey: "Are you satisfied with the proposed
property tax levy for (name of jurisdiction)?" A space will be
provided for the respondent to answer "Yes" or "No" for each
jurisdiction. The form must also inform the taxpayer that if
the number of responses marked "No" exceeds the criteria
specified in subdivision 3e, a referendum will be held on the
question of the increase in the property tax levy subject to
approval unless a recertification is made under subdivision 9
reducing the levy.
new text end

new text begin (c) The mailing shall include a non-postage-paid envelope
preaddressed to the agency designated to process survey
results. A taxpayer may respond to the survey by returning the
completed survey form to the designated agency by December 1.
The responding taxpayer is responsible for the postage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 5.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 3c. new text end

new text begin Taxpayer satisfaction survey additional
information. new text end

new text begin The taxpayer satisfaction survey form must include
the following information for the current year and for the
proposed year, and show the percentage change between the years:
new text end

new text begin (1) the county government's (i) budget and (ii) property
tax levy subject to approval; and
new text end

new text begin (2) if the property is located in a city which is a
jurisdiction subject to the taxpayer satisfaction survey, the
city government's (i) budget and (ii) property tax levy subject
to approval.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 6.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 3d. new text end

new text begin Format of taxpayer satisfaction survey. new text end

new text begin The
commissioner of revenue shall prescribe the format of the survey
form required under subdivisions 3b to 3f and present the form
to the chairs of the house and senate tax committees for
review. The form must be in the format prescribed by the
commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 7.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 3e. new text end

new text begin Results of taxpayer satisfaction survey. new text end

new text begin Each
agency designated to receive taxpayer satisfaction surveys shall
verify the authenticity of each form received, to the extent
possible, and tabulate the results of the survey for each taxing
jurisdiction. If the number of survey respondents that indicate
that they are not satisfied with the jurisdiction's proposed
levy exceeds 20 percent of the total number of proposed tax
notices in the jurisdiction, and the proposed property tax levy
subject to approval exceeds the property tax levy subject to
approval for taxes payable in the current year, a referendum
must be held on the last Tuesday in January. By December 8, the
agency must announce the results of the survey for each taxing
jurisdiction, including both the number of responses indicating
that they are satisfied with the proposed levy and the number
indicating that they are not satisfied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 8.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 3f. new text end

new text begin Designated agency. new text end

new text begin For taxpayer satisfaction
surveys pertaining to taxes payable in 2006, the designated
agency is the county. For taxing jurisdictions located in more
than one county, each county shall tabulate the results of the
survey for the portion of the jurisdiction in the county, and
forward the results to the jurisdiction's home county by
December 7. The home county shall make the final determination
of the survey results for the jurisdiction.
new text end

new text begin By January 1, 2006, and each year thereafter, the
commissioner of revenue shall designate the agency or agencies
to receive and process taxpayer satisfaction surveys for taxes
payable in the following year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 9.

Minnesota Statutes 2004, section 275.065,
subdivision 4, is amended to read:

Subd. 4.

Costs.

deleted text begin If the reasonable cost of deleted text end The county new text begin may
apportion the cost of the county new text end auditor's services and the cost
of preparing and mailing the notice new text begin and survey new text end required in this
section deleted text begin exceed the amount distributed to the county by the
commissioner of revenue to administer this section, the taxing
authority must reimburse the county for the excess cost. The
excess cost must be apportioned deleted text end between taxing jurisdictions as
follows:

(1) one-third is allocated to the county;

(2) one-third is allocated to cities and towns within the
county; and

(3) one-third is allocated to school districts within the
county.

The amounts in clause (2) must be further apportioned among
the cities and towns in the proportion that the number of
parcels in the city and town bears to the number of parcels in
all the cities and towns within the county. The amount in
clause (3) must be further apportioned among the school
districts in the proportion that the number of parcels in the
school district bears to the number of parcels in all school
districts within the county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 10.

Minnesota Statutes 2004, section 275.065,
subdivision 7, is amended to read:

Subd. 7.

Certification of compliance.

At the time the
taxing authority certifies its tax levy under section 275.07, it
shall certify to the commissioner of revenue its compliance with
this section. The certification must contain the information
required by the commissioner of revenue to determine compliance
with this section. If the commissioner determines that the
taxing authority has failed to substantially comply with the
requirements of this section, the commissioner of revenue shall
notify the county auditor. The decision of the commissioner is
final. When fixing rates under section 275.08 for a taxing
authority that has not complied with this section, the county
auditor must use the taxing authority's previous year's levy,
plus any additional amounts necessary to deleted text begin pay principal and
interest on general obligation bonds of the taxing authority for
which its taxing powers have been pledged if the bonds were
issued before 1989 deleted text end new text begin fund an increase in the authority's debt levy
for taxes payable in the following year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 11.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Recertification of proposed levy. new text end

new text begin By December
15, a jurisdiction subject to taxpayer satisfaction survey, that
has been notified under subdivision 3e that the criteria for a
referendum have been met, may elect to recertify its proposed
levy so that the proposed property tax levy subject to approval
is equal to the property tax levy subject to approval for taxes
payable in the current year. If the jurisdiction recertifies
its proposed levy to the county auditor according to the
provisions of this subdivision, the auditor must cancel the
referendum for that jurisdiction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 12.

Minnesota Statutes 2004, section 275.065, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Levy approval; referendum. new text end

new text begin If the designated
agency has determined under subdivision 3e that a referendum is
required, the increase in the property tax levy subject to
approval shall not be effective until it has been submitted to
the voters at a special election to be held on the last Tuesday
in January, and a majority of votes cast on the question of
approving the levy increase are in the affirmative. The
commissioner of revenue shall prepare the form of the question
to be presented at the referendum, which must reference only the
amount of increase in the property tax levy subject to approval.
new text end

new text begin If the majority of the votes cast on the question are in
the affirmative, the proposed levy shall be certified as the
final levy. If the majority of the votes cast on the question
are in the negative, the levy shall be the property tax levy
amount subject to approval for the previous year, plus the
portion of the proposed levy that was not subject to referendum.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 13.

Minnesota Statutes 2004, section 275.07,
subdivision 1, is amended to read:

Subdivision 1.

Certification of levy.

(a) Except as
provided under paragraph (b), the taxes voted by cities,
counties, school districts, and special districts shall be
certified by the proper authorities to the county auditor on or
before deleted text begin five working days after deleted text end December deleted text begin 20 deleted text end new text begin 28 new text end in each year. new text begin A
jurisdiction whose levy is subject to a referendum under section
275.065, subdivision 10, shall at that time certify two levy
amounts, one if the referendum is successful, and another if the
referendum is not successful. A jurisdiction whose levy is
subject to a referendum must recertify its final levy the day
immediately following the election. new text end A town must certify the
levy adopted by the town board to the county auditor by
September 15 each year. If the town board modifies the levy at
a special town meeting after September 15, the town board must
recertify its levy to the county auditor on or before deleted text begin five
working days after deleted text end December deleted text begin 20 deleted text end new text begin 28 new text end . The taxes certified shall be
reduced by the county auditor by the aid received under section
273.1398, subdivision 3. If a city, town, county, school
district, or special district fails to certify its levy by that
date, its levy shall be the amount levied by it for the
preceding year.

(b)(i) The taxes voted by counties under sections 103B.241,
103B.245, and 103B.251 shall be separately certified by the
county to the county auditor on or before deleted text begin five working days
after deleted text end December deleted text begin 20 deleted text end new text begin 28 new text end in each year. The taxes certified shall
not be reduced by the county auditor by the aid received under
section 273.1398, subdivision 3. If a county fails to certify
its levy by that date, its levy shall be the amount levied by it
for the preceding year.

(ii) For purposes of the proposed property tax notice under
section 275.065 and the property tax statement under section
276.04, for the first year in which the county implements the
provisions of this paragraph, the county auditor shall reduce
the county's levy for the preceding year to reflect any amount
levied for water management purposes under clause (i) included
in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 275.065, subdivisions 5a,
6, 6b, and 8, are repealed.
new text end