SF 1515

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; eliminating payment of market 
  1.3             value homestead credit reimbursements to cities; 
  1.4             reinstating authorization to levy for transit 
  1.5             purposes; providing for additional means of financing 
  1.6             transit; reducing local government aid payable to 
  1.7             cities; appropriating money; amending Minnesota 
  1.8             Statutes 2002, sections 16A.88, subdivision 3; 
  1.9             273.1384, subdivision 4; 473.388, subdivisions 4, 7; 
  1.10            473.446, subdivision 1, by adding subdivisions; 
  1.11            477A.03, subdivision 2; repealing Minnesota Statutes 
  1.12            2002, sections 174.242; 477A.03, subdivision 4. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 16A.88, 
  1.15  subdivision 3, is amended to read: 
  1.16     Subd. 3.  [METROPOLITAN AREA TRANSIT APPROPRIATION 
  1.17  ACCOUNT.] The metropolitan area transit appropriation account is 
  1.18  established within the general fund.  Money in the account is to 
  1.19  be used annually appropriated to the metropolitan council for 
  1.20  the funding of transit systems in the metropolitan area, subject 
  1.21  to legislative appropriation.  
  1.22     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  1.23     Sec. 2.  Minnesota Statutes 2002, section 273.1384, 
  1.24  subdivision 4, is amended to read: 
  1.25     Subd. 4.  [PAYMENT.] (a) The commissioner of revenue shall 
  1.26  reimburse each local taxing jurisdiction, other than school 
  1.27  districts, and, with respect to the credit provided under 
  1.28  subdivision 1, other than cities, for the tax reductions granted 
  1.29  under this section in two equal installments on October 31 and 
  2.1   December 26 of the taxes payable year for which the reductions 
  2.2   are granted, including in each payment the prior year 
  2.3   adjustments certified on the abstracts for that taxes payable 
  2.4   year.  The reimbursements related to tax increments shall be 
  2.5   issued in one installment each year on December 26. 
  2.6      (b) The commissioner of revenue shall certify the total of 
  2.7   the tax reductions granted under this section for each taxes 
  2.8   payable year within each school district to the commissioner of 
  2.9   the department of children, families, and learning and the 
  2.10  commissioner of children, families, and learning shall pay the 
  2.11  reimbursement amounts to each school district as provided in 
  2.12  section 273.1392. 
  2.13     [EFFECTIVE DATE.] This section is effective for payments 
  2.14  made in 2004 and thereafter. 
  2.15     Sec. 3.  Minnesota Statutes 2002, section 473.388, 
  2.16  subdivision 4, is amended to read: 
  2.17     Subd. 4.  [FINANCIAL ASSISTANCE.] (a) The council must may 
  2.18  grant the requested financial assistance if it determines that 
  2.19  the proposed service is intended to replace the service to the 
  2.20  applying city or town or combination thereof by the council and 
  2.21  that the proposed service will meet the needs of the applicant 
  2.22  at least as efficiently and effectively as the existing service. 
  2.23     (b) The amount of assistance which the council must may 
  2.24  provide to a system under this section may not be less than 
  2.25  exceed the sum of the amounts determined for each municipality 
  2.26  comprising the system as follows:  
  2.27     (1) the transit operating assistance grants received under 
  2.28  this subdivision by the municipality in calendar year 2001 or 
  2.29  the tax revenues for transit services levied by the municipality 
  2.30  for taxes payable in 2001, including that portion of the levy 
  2.31  derived from the areawide pool under section 473F.08, 
  2.32  subdivision 3, clause (a), plus the portion of the 
  2.33  municipality's aid under section 273.1398, subdivision 2, 
  2.34  attributable to the transit levy; times 
  2.35     (2) the ratio of (i) the appropriation from the transit 
  2.36  fund to the council for nondebt transit operations for the 
  3.1   current fiscal year to (ii) the total levy certified by the 
  3.2   council under section 473.446 and the opt-out municipalities 
  3.3   under this section for taxes payable in 2001, including the 
  3.4   portion of homestead and agricultural credit aid under section 
  3.5   273.1398, subdivision 2, attributable to nondebt transit levies, 
  3.6   times 
  3.7      (3) the ratio of (i) the municipality's total taxable 
  3.8   market value for taxes payable in the most recent year for which 
  3.9   data is available divided by the municipality's total taxable 
  3.10  market value for taxes payable in 2001, to (ii) the total 
  3.11  taxable market value of all property in the metropolitan area 
  3.12  for taxes payable in the most recent year for which data is 
  3.13  available divided by the total taxable market value of all 
  3.14  property in the metropolitan area for taxes payable in 2001.  
  3.15     (c) The council shall pay the amount to be provided to the 
  3.16  recipient from the funds the council would otherwise use to fund 
  3.17  its transit operations. 
  3.18     (1) the portion of the available local transit funds which 
  3.19  the applicant proposes to use to subsidize the proposed service; 
  3.20  and 
  3.21     (2) an amount of financial assistance bearing an identical 
  3.22  proportional relationship to the amount under clause (1) as the 
  3.23  total amount of funds used by the council to fund its transit 
  3.24  operations bears to the total amount of taxes collected by the 
  3.25  council under section 473.446.  
  3.26     The council shall pay the amount to be provided to the 
  3.27  recipient from the funds the council would otherwise use to fund 
  3.28  its transit operations. 
  3.29     (c) For purposes of this section, "available local transit 
  3.30  funds" means 90 percent of the tax revenues which would accrue 
  3.31  to the council from the tax it levies under section 473.446 in 
  3.32  the applicant city or town, or a combination thereof.  
  3.33     (d) For purposes of this section, "tax revenues" in the 
  3.34  city or town means the sum of the following: 
  3.35     (1) the nondebt spread levy, which is the total of the 
  3.36  taxes extended by application of the local tax rate for nondebt 
  4.1   purposes on the taxable net tax capacity; 
  4.2      (2) the portion of the fiscal disparity distribution levy 
  4.3   under section 473F.08, subdivision 3, attributable to nondebt 
  4.4   purposes; and 
  4.5      (3) the portion of the homestead credit and agricultural 
  4.6   credit aid and disparity reduction aid amounts under section 
  4.7   273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
  4.8      Tax revenues do not include the state feathering 
  4.9   reimbursement under section 473.446. 
  4.10     Sec. 4.  Minnesota Statutes 2002, section 473.388, 
  4.11  subdivision 7, is amended to read: 
  4.12     Subd. 7.  [LOCAL LEVY OPTION.] (a) A statutory or home rule 
  4.13  charter city or town that is eligible for assistance under this 
  4.14  section may levy a tax for payment of the operating and capital 
  4.15  expenditures for transit and other related activities and to 
  4.16  provide for payment of obligations issued by the municipality 
  4.17  for capital expenditures for transit and other related 
  4.18  activities, provided that property taxes were pledged to satisfy 
  4.19  the obligations, and provided that legislative appropriations 
  4.20  are insufficient to satisfy the obligations such purposes, 
  4.21  provided that the tax must be sufficient to maintain the level 
  4.22  of transit service provided in the municipality in the previous 
  4.23  year. 
  4.24     (b) The transit tax levied by a municipality under this 
  4.25  section for taxes payable in 2004 may not exceed the amount of 
  4.26  the assistance received under subdivision 4 in fiscal year 2003, 
  4.27  multiplied by an index for market valuation changes equal to the 
  4.28  total market valuation of all taxable property located within 
  4.29  the municipality for the current taxes payable year divided by 
  4.30  the total market valuation of all taxable property located 
  4.31  within the municipality for the previous taxes payable year. 
  4.32     For taxes payable in 2005 and subsequent years, the product 
  4.33  of (i) the municipality's property tax levy limitation for the 
  4.34  previous year determined under this subdivision, multiplied by 
  4.35  (ii) an index for market valuation changes equal to the total 
  4.36  market valuation of all taxable property located within the 
  5.1   municipality for the current taxes payable year divided by the 
  5.2   total market valuation of all taxable property located within 
  5.3   the municipality for the previous taxes payable year. 
  5.4      (c) This subdivision is consistent with the transit 
  5.5   redesign plan.  Eligible municipalities opting to operate under 
  5.6   this subdivision shall continue to meet the regional performance 
  5.7   standards established by the council. 
  5.8      (c) (d) Within the designated Americans with Disabilities 
  5.9   Act area, metro mobility remains the obligation of the state. 
  5.10     [EFFECTIVE DATE.] This section is effective for taxes 
  5.11  levied in 2003, payable in 2004, and subsequent years. 
  5.12     Sec. 5.  Minnesota Statutes 2002, section 473.446, 
  5.13  subdivision 1, is amended to read: 
  5.14     Subdivision 1.  [METROPOLITAN AREA TRANSIT TAX.] (a) For 
  5.15  the purposes of sections 473.405 to 473.449 and the metropolitan 
  5.16  transit system, except as otherwise provided in this 
  5.17  subdivision, the council shall levy each year upon all taxable 
  5.18  property within the metropolitan area, defined in section 
  5.19  473.121, subdivision 2, a transit tax consisting of: 
  5.20     (1) an amount which shall be used for payment of the 
  5.21  expenses of operating transit and paratransit services; 
  5.22     (2) an amount necessary to provide full and timely payment 
  5.23  of certificates of indebtedness, bonds, including refunding 
  5.24  bonds or other obligations issued or to be issued under section 
  5.25  473.39 by the council for purposes of acquisition and betterment 
  5.26  of property and other improvements of a capital nature and to 
  5.27  which the council has specifically pledged tax levies under this 
  5.28  clause; and 
  5.29     (2) (3) an additional amount necessary to provide full and 
  5.30  timely payment of certificates of indebtedness issued by the 
  5.31  council, after consultation with the commissioner of finance, if 
  5.32  revenues to the metropolitan area transit fund in the fiscal 
  5.33  year in which the indebtedness is issued increase over those 
  5.34  revenues in the previous fiscal year by a percentage less than 
  5.35  the percentage increase for the same period in the revised 
  5.36  Consumer Price Index for all urban consumers for the St. 
  6.1   Paul-Minneapolis metropolitan area prepared by the United States 
  6.2   Department of Labor. 
  6.3      (b) Indebtedness to which property taxes have been pledged 
  6.4   under paragraph (a), clause (2), that is incurred in any fiscal 
  6.5   year may not exceed the amount necessary to make up the 
  6.6   difference between (1) the amount that the council received or 
  6.7   expects to receive in that fiscal year from the metropolitan 
  6.8   area transit fund and (2) the amount the council received from 
  6.9   that fund in the previous fiscal year multiplied by the 
  6.10  percentage increase for the same period in the revised Consumer 
  6.11  Price Index for all urban consumers for the St. Paul-Minneapolis 
  6.12  metropolitan area prepared by the United States Department of 
  6.13  Labor. 
  6.14     (c) The property tax levied by the council for general 
  6.15  purposes under paragraph (a) must not exceed the following 
  6.16  amount for the years specified: 
  6.17     (1) for taxes payable in 2004, the amount received by the 
  6.18  council for that purpose from the metropolitan area transit fund 
  6.19  under section 16A.88, subdivision 2, in fiscal year 2003, 
  6.20  multiplied by an index for market valuation changes equal to the 
  6.21  total market valuation of all taxable property located within 
  6.22  the metropolitan transit taxing district for the current taxes 
  6.23  payable year divided by the total market valuation of all 
  6.24  taxable property located within the metropolitan transit taxing 
  6.25  district for the previous taxes payable year; and 
  6.26     (2) for taxes payable in 2005 and subsequent years, the 
  6.27  product of (i) the council's property tax levy limitation for 
  6.28  the previous year determined under this subdivision, multiplied 
  6.29  by (ii) an index for market valuation changes equal to the total 
  6.30  market valuation of all taxable property located within the 
  6.31  metropolitan transit taxing district for the current taxes 
  6.32  payable year divided by the total market valuation of all 
  6.33  taxable property located within the metropolitan transit taxing 
  6.34  district for the previous taxes payable year. 
  6.35     Sec. 6.  Minnesota Statutes 2002, section 473.446, is 
  6.36  amended by adding a subdivision to read: 
  7.1      Subd. 1c.  [TAXATION WITHIN TRANSIT AREA.] For the purposes 
  7.2   of sections 473.405 to 473.449, and the metropolitan transit 
  7.3   system, the metropolitan council shall levy upon all taxable 
  7.4   property within the metropolitan transit area but outside of the 
  7.5   metropolitan transit taxing district, defined in subdivision 2, 
  7.6   a transit tax, which shall be equal to ten percent of the sum of 
  7.7   the levies provided in subdivision 1, paragraph (a), clauses (1) 
  7.8   to (3).  The proceeds of this tax shall be used only for 
  7.9   paratransit services or ride sharing programs designed to serve 
  7.10  persons located within the transit area but outside of the 
  7.11  transit taxing district. 
  7.12     [EFFECTIVE DATE.] This section is effective for taxes 
  7.13  levied in 2003, payable in 2004, and subsequent years. 
  7.14     Sec. 7.  Minnesota Statutes 2002, section 473.446, is 
  7.15  amended by adding a subdivision to read: 
  7.16     Subd. 1d.  [DEDUCTION OF LEVY FOR ELIGIBLE 
  7.17  MUNICIPALITIES.] (a) The maximum the council may levy for 
  7.18  general purposes under subdivision 1, paragraph (a), upon 
  7.19  taxable property within a municipality levying taxes under 
  7.20  section 473.388, subdivision 7, is the combined transit tax 
  7.21  levied within the municipality in the previous year under 
  7.22  subdivision 1 and section 473.388, subdivision 7, multiplied by 
  7.23  the municipality's market value adjustment ratio, minus the 
  7.24  amount to be levied by the municipality under section 473.388, 
  7.25  subdivision 7, for the current levy year. 
  7.26     (b) For purposes of this subdivision: 
  7.27     (1) "municipality" means a municipality levying taxes under 
  7.28  section 473.388, subdivision 7, for replacement transit service; 
  7.29     (2) "market value adjustment ratio" means the index for 
  7.30  market valuation changes described in this section, as applied 
  7.31  to individual municipalities; and 
  7.32     (3) "tax revenues" has the meaning given in section 
  7.33  473.388, subdivision 4. 
  7.34     [EFFECTIVE DATE.] This section is effective for taxes 
  7.35  levied in 2003, payable in 2004, and subsequent years. 
  7.36     Sec. 8.  Minnesota Statutes 2002, section 477A.03, 
  8.1   subdivision 2, is amended to read: 
  8.2      Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
  8.3   discharge the duties imposed by sections 477A.011 to 477A.014 is 
  8.4   annually appropriated from the general fund to the commissioner 
  8.5   of revenue.  
  8.6      (b) Aid payments to counties under section 477A.0121 are 
  8.7   limited to $20,265,000 in 1996.  Aid payments to counties under 
  8.8   section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
  8.9   payable in 1998 and thereafter, the total aids paid under 
  8.10  section 477A.0121 are the amounts certified to be paid in the 
  8.11  previous year, adjusted for inflation as provided under 
  8.12  subdivision 3. 
  8.13     (c)(i) For aids payable in 1998 and thereafter, the total 
  8.14  aids paid to counties under section 477A.0122 are the amounts 
  8.15  certified to be paid in the previous year, adjusted for 
  8.16  inflation as provided under subdivision 3. 
  8.17     (ii) Aid payments to counties under section 477A.0122 in 
  8.18  2000 are further increased by an additional $20,000,000 in 2000. 
  8.19     (d) Aid payments to cities in 2002 under section 477A.013, 
  8.20  subdivision 9, are limited to the amounts certified to be paid 
  8.21  in the previous year, adjusted for inflation as provided in 
  8.22  subdivision 3, and increased by $140,000,000.  For aids payable 
  8.23  in 2003, the total aids paid under section 477A.013, subdivision 
  8.24  9, are the amounts certified to be paid in the previous year, 
  8.25  adjusted for inflation as provided under subdivision 3.  For 
  8.26  aids payable in 2004, the total aids paid under section 
  8.27  477A.013, subdivision 9, are the amounts certified to be paid in 
  8.28  the previous year, adjusted for inflation as provided under 
  8.29  subdivision 3, and increased by the amount certified to be paid 
  8.30  in 2003 under section 477A.06.  For aids payable in 2005 and 
  8.31  thereafter, the total aids paid under section 477A.013, 
  8.32  subdivision 9, are the amounts certified to be paid in the 
  8.33  previous year, adjusted for inflation as provided under 
  8.34  subdivision 3.  The additional amount authorized under 
  8.35  subdivision 4 is not included when calculating the appropriation 
  8.36  limits under this paragraph. 
  9.1      (e) Reimbursements made to counties under section 477A.0123 
  9.2   in calendar year 2005 and thereafter are limited to an amount 
  9.3   equal to the maximum allowed appropriation under this section in 
  9.4   the previous year, multiplied by a percent to be established by 
  9.5   law.  If no percent is established by law, the appropriation is 
  9.6   limited to the total amount appropriated for this purpose in the 
  9.7   previous year. 
  9.8      [EFFECTIVE DATE.] This section is effective the day 
  9.9   following final enactment. 
  9.10     Sec. 9.  [2003 CITY AID REDUCTIONS.] 
  9.11     Subdivision 1.  [DEFINITION.] For purposes of this section, 
  9.12  the 2003 "levy plus aid revenue base" for a city is the sum of 
  9.13  that city's property tax levy for taxes payable in 2003, as 
  9.14  reported to the commissioner of revenue under Minnesota 
  9.15  Statutes, section 275.74, plus the sum of the amounts the city 
  9.16  was certified to receive in 2003 as: 
  9.17     (1) local government aid under Minnesota Statutes, section 
  9.18  477A.013; 
  9.19     (2) existing low-income housing aid under Minnesota 
  9.20  Statutes, section 477A.06; 
  9.21     (3) new construction low-income housing aid under Minnesota 
  9.22  Statutes, section 477A.065; and 
  9.23     (4) taconite aids under Minnesota Statutes, sections 298.28 
  9.24  and 298.282, including any aid which was required to be placed 
  9.25  in a special fund for expenditure in the next succeeding year. 
  9.26     Subd. 2.  [COMPUTATION; APPLICATION.] The commissioner of 
  9.27  revenue shall compute an aid reduction amount for each city for 
  9.28  2003 equal to 5.6 percent of the city's levy plus aid revenue 
  9.29  base for 2003. 
  9.30     The reduction is limited to the sum of the city's payable 
  9.31  2003 distribution pursuant to Minnesota Statutes, section 
  9.32  477A.013, and related sections, and the city's payable 2003 
  9.33  reimbursement under Minnesota Statutes, section 273.1384. 
  9.34     The reduction is applied first to the city's reimbursement 
  9.35  pursuant to Minnesota Statutes, section 273.1384, and then if 
  9.36  necessary to the city's distribution pursuant to Minnesota 
 10.1   Statutes, section 477A.013. 
 10.2      [EFFECTIVE DATE.] This section is effective the day 
 10.3   following final enactment. 
 10.4      Sec. 10.  [2004 CITY AID REDUCTIONS.] 
 10.5      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 10.6   the 2004 "levy plus aid revenue base" for a city is the sum of 
 10.7   that city's property tax levy for taxes payable in 2003, as 
 10.8   reported to the commissioner of revenue under Minnesota 
 10.9   Statutes, section 275.74, plus the sum of the amounts the city 
 10.10  was certified to receive in 2003 as: 
 10.11     (1) local government aid under Minnesota Statutes, section 
 10.12  477A.013; 
 10.13     (2) existing low-income housing aid under Minnesota 
 10.14  Statutes, section 477A.06; 
 10.15     (3) new construction low-income housing aid under Minnesota 
 10.16  Statutes, section 477A.065; and 
 10.17     (4) taconite aids under Minnesota Statutes, sections 298.28 
 10.18  and 298.282, including any aid which was required to be placed 
 10.19  in a special fund for expenditure in the next succeeding year. 
 10.20     Subd. 2.  [COMPUTATION; APPLICATION.] The commissioner of 
 10.21  revenue shall compute an aid reduction amount for each city for 
 10.22  2004 equal to the percent of the city's levy plus aid revenue 
 10.23  base for 2004 that is determined by the commissioner of revenue 
 10.24  by dividing $10,500,000 by the total levy plus aid revenue base 
 10.25  of all cities for 2004. 
 10.26     The reduction is limited to the city's payable 2004 
 10.27  distribution pursuant to Minnesota Statutes, section 477A.013, 
 10.28  and related sections. 
 10.29     The reduction is applied to the city's distribution 
 10.30  pursuant to Minnesota Statutes, section 477A.013. 
 10.31     [EFFECTIVE DATE.] This section is effective the day 
 10.32  following final enactment. 
 10.33     Sec. 11.  [BORROWING FOR TRANSIT REVENUE; SPECIAL LEVY.] 
 10.34     Subdivision 1.  [BORROWING TO REPLACE TRANSIT REVENUE.] The 
 10.35  metropolitan council and any municipality that received revenues 
 10.36  to be used for transit services under Minnesota Statutes, 
 11.1   section 174.242 or 473.388, in calendar year 2002 may borrow 
 11.2   money to replace the revenue that the council or municipality 
 11.3   would have received under Minnesota Statutes, section 174.242 or 
 11.4   473.388, in calendar year 2003 if this act had not been enacted. 
 11.5   The money may be used or expended by the council or the 
 11.6   municipality for any purpose for which the money that would have 
 11.7   been paid under Minnesota Statutes, section 174.242 or 473.388, 
 11.8   could have been expended, including, but not limited to, current 
 11.9   expenses, capital expenditures, and the discharge of any 
 11.10  obligation or indebtedness of the council or municipality.  The 
 11.11  indebtedness must be represented by a note or notes which may be 
 11.12  issued from time to time in any denomination and sold at public 
 11.13  or private sale pursuant to a resolution authorizing the 
 11.14  issuance.  The resolution must set forth the form and manner of 
 11.15  execution of the notes and shall contain other terms and 
 11.16  conditions the council or the municipality deems necessary or 
 11.17  desirable to provide security for the holders of the notes.  The 
 11.18  term of the notes may not exceed five years.  The note or notes 
 11.19  are payable from committed or appropriated money from taxes, 
 11.20  grants, or loans of the state or federal government made to the 
 11.21  council, or other revenues, and the money may be pledged to the 
 11.22  payment of the notes.  
 11.23     Subd. 2.  [SPECIAL LEVY FOR REPAYMENT.] Notwithstanding any 
 11.24  other law or charter provision to the contrary, the council or 
 11.25  the municipality may levy taxes outside of any limitation on 
 11.26  levies for the purpose of repayment of the notes issued under 
 11.27  subdivision 1 for taxes levied in 2003 to 2007, payable from 
 11.28  2004 to 2008. 
 11.29     [EFFECTIVE DATE.] This section is effective the day 
 11.30  following final enactment. 
 11.31     Sec. 12.  [REPEALER.] 
 11.32     Minnesota Statutes 2002, sections 174.242; and 477A.03, 
 11.33  subdivision 4, are repealed. 
 11.34     [EFFECTIVE DATE.] This section is effective the day 
 11.35  following final enactment.