SF 1536

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

  1.1                          A bill for an act
  1.2             relating to taxation; property; modifying the proposed 
  1.3             property tax notices; amending Minnesota Statutes 
  1.4             1996, sections 275.065, subdivisions 1, 3, and 6; and 
  1.5             276.04, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 275.065, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
  1.10  law or charter to the contrary, on or before September 15, each 
  1.11  taxing authority, other than a school district, shall adopt a 
  1.12  proposed budget and shall certify to the county auditor the 
  1.13  proposed or, in the case of a town, the final property tax levy 
  1.14  for taxes payable in the following year. 
  1.15     (b) On or before September 30, each school district shall 
  1.16  certify to the county auditor the proposed property tax levy for 
  1.17  taxes payable in the following year.  The school district may 
  1.18  shall certify the proposed levy as: 
  1.19     (1) a specific dollar amount; or the state general 
  1.20  education levy amount as prescribed under section 124A.23, 
  1.21  subdivision 2; and 
  1.22     (2) an amount equal to the sum of all other school levies, 
  1.23  or the maximum levy limitation certified by the commissioner of 
  1.24  children, families, and learning to the county auditor according 
  1.25  to section 124.918, subdivision 1, less the state general 
  2.1   education levy amount under clause (1). 
  2.2      (c) If the board of estimate and taxation or any similar 
  2.3   board that establishes maximum tax levies for taxing 
  2.4   jurisdictions within a first class city certifies the maximum 
  2.5   property tax levies for funds under its jurisdiction by charter 
  2.6   to the county auditor by September 15, the city shall be deemed 
  2.7   to have certified its levies for those taxing jurisdictions. 
  2.8      (d) For purposes of this section, "taxing authority" 
  2.9   includes all home rule and statutory cities, towns, counties, 
  2.10  school districts, and special taxing districts as defined in 
  2.11  section 275.066.  Intermediate school districts that levy a tax 
  2.12  under chapter 124 or 136D, joint powers boards established under 
  2.13  sections 124.491 to 124.495, and common school districts No. 
  2.14  323, Franconia, and No. 815, Prinsburg, are also special taxing 
  2.15  districts for purposes of this section.  
  2.16     Sec. 2.  Minnesota Statutes 1996, section 275.065, 
  2.17  subdivision 3, is amended to read: 
  2.18     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  2.19  county auditor shall prepare and the county treasurer shall 
  2.20  deliver after November 10 and on or before November 24 each 
  2.21  year, by first class mail to each taxpayer at the address listed 
  2.22  on the county's current year's assessment roll, a notice of 
  2.23  proposed property taxes and, in the case of a town, final 
  2.24  property taxes.  
  2.25     (b) The commissioner of revenue shall prescribe the form of 
  2.26  the notice. 
  2.27     (c) The notice must inform taxpayers that it contains the 
  2.28  amount of property taxes each taxing authority other than a town 
  2.29  proposes to collect for taxes payable the following year and, 
  2.30  for a town, the amount of its final levy.  It must clearly state 
  2.31  that each taxing authority, including regional library districts 
  2.32  established under section 134.201, and including the 
  2.33  metropolitan taxing districts as defined in paragraph (i), but 
  2.34  excluding all other special taxing districts and towns, will 
  2.35  hold a public meeting to receive public testimony on the 
  2.36  proposed budget and proposed or final property tax levy, or, in 
  3.1   case of a school district, on the current budget and proposed 
  3.2   property tax levy.  It must clearly state the time and place of 
  3.3   each taxing authority's meeting and an address where comments 
  3.4   will be received by mail.  
  3.5      (d) The notice must state for each parcel: 
  3.6      (1) the market value of the property as determined under 
  3.7   section 273.11, and used for computing property taxes payable in 
  3.8   the following year and for taxes payable in the current year; 
  3.9   and, in the case of residential property, whether the property 
  3.10  is classified as homestead or nonhomestead.  The notice must 
  3.11  clearly inform taxpayers of the years to which the market values 
  3.12  apply and that the values are final values; 
  3.13     (2) by county, city or town, school district excess 
  3.14  referenda levy, remaining school district levy amount excluding 
  3.15  the state general education tax, the state education tax, 
  3.16  regional library district, if in existence, the total of the 
  3.17  metropolitan special taxing districts as defined in paragraph 
  3.18  (i) and the sum of the remaining special taxing districts, and 
  3.19  as a total of the taxing authorities, including all special 
  3.20  taxing districts, the proposed or, for a town, final net tax on 
  3.21  the property for taxes payable the following year and the actual 
  3.22  tax for taxes payable the current year.  If a school district 
  3.23  has certified under section 124A.03, subdivision 2, that a 
  3.24  referendum will be held in the school district at the November 
  3.25  general election, the county auditor must note next to the 
  3.26  school district's proposed amount excluding the state general 
  3.27  education tax, that a referendum is pending and that, if 
  3.28  approved by the voters, the tax amount may be higher than shown 
  3.29  on the notice.  For the purposes of this subdivision, "school 
  3.30  district excess referenda levy" means school district taxes for 
  3.31  operating purposes approved at referendums, including those 
  3.32  taxes based on net tax capacity as well as those based on market 
  3.33  value.  "School district excess referenda levy" does not include 
  3.34  school district taxes for capital expenditures approved at 
  3.35  referendums or school district taxes to pay for the debt service 
  3.36  on bonds approved at referenda.  In the case of the city of 
  4.1   Minneapolis, the levy for the Minneapolis library board and the 
  4.2   levy for Minneapolis park and recreation shall be listed 
  4.3   separately from the remaining amount of the city's levy.  In the 
  4.4   case of a parcel where tax increment or the fiscal disparities 
  4.5   areawide tax under chapter 276A or 473F applies, the proposed 
  4.6   tax levy on the captured value or the proposed tax levy on the 
  4.7   tax capacity subject to the areawide tax must each be stated 
  4.8   separately and not included in the sum of the special taxing 
  4.9   districts; and 
  4.10     (3) the increase or decrease in the amounts in clause (2) 
  4.11  from taxes payable in the current year to proposed or, for a 
  4.12  town, final taxes payable the following year, expressed as a 
  4.13  dollar amount and as a percentage. 
  4.14     (e) The notice must clearly state that the proposed or 
  4.15  final taxes do not include the following: 
  4.16     (1) special assessments; 
  4.17     (2) levies approved by the voters after the date the 
  4.18  proposed taxes are certified, including bond referenda, school 
  4.19  district levy referenda, and levy limit increase referenda; 
  4.20     (3) amounts necessary to pay cleanup or other costs due to 
  4.21  a natural disaster occurring after the date the proposed taxes 
  4.22  are certified; 
  4.23     (4) amounts necessary to pay tort judgments against the 
  4.24  taxing authority that become final after the date the proposed 
  4.25  taxes are certified; and 
  4.26     (5) the contamination tax imposed on properties which 
  4.27  received market value reductions for contamination. 
  4.28     (f) Except as provided in subdivision 7, failure of the 
  4.29  county auditor to prepare or the county treasurer to deliver the 
  4.30  notice as required in this section does not invalidate the 
  4.31  proposed or final tax levy or the taxes payable pursuant to the 
  4.32  tax levy. 
  4.33     (g) If the notice the taxpayer receives under this section 
  4.34  lists the property as nonhomestead and the homeowner provides 
  4.35  satisfactory documentation to the county assessor that the 
  4.36  property is owned and used as the owner's homestead, the 
  5.1   assessor shall reclassify the property to homestead for taxes 
  5.2   payable in the following year. 
  5.3      (h) In the case of class 4 residential property used as a 
  5.4   residence for lease or rental periods of 30 days or more, the 
  5.5   taxpayer must either: 
  5.6      (1) mail or deliver a copy of the notice of proposed 
  5.7   property taxes to each tenant, renter, or lessee; or 
  5.8      (2) post a copy of the notice in a conspicuous place on the 
  5.9   premises of the property.  
  5.10     The notice must be mailed or posted by the taxpayer by 
  5.11  November 27 or within three days of receipt of the notice, 
  5.12  whichever is later.  A taxpayer may notify the county treasurer 
  5.13  of the address of the taxpayer, agent, caretaker, or manager of 
  5.14  the premises to which the notice must be mailed in order to 
  5.15  fulfill the requirements of this paragraph. 
  5.16     (i) For purposes of this subdivision, subdivisions 5a and 
  5.17  6, "metropolitan special taxing districts" means the following 
  5.18  taxing districts in the seven-county metropolitan area that levy 
  5.19  a property tax for any of the specified purposes listed below: 
  5.20     (1) metropolitan council under section 473.132, 473.167, 
  5.21  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  5.22     (2) metropolitan airports commission under section 473.667, 
  5.23  473.671, or 473.672; and 
  5.24     (3) metropolitan mosquito control commission under section 
  5.25  473.711. 
  5.26     For purposes of this section, any levies made by the 
  5.27  regional rail authorities in the county of Anoka, Carver, 
  5.28  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  5.29  398A shall be included with the appropriate county's levy and 
  5.30  shall be discussed at that county's public hearing. 
  5.31     (j) For taxes levied in 1996, payable in 1997 only, in the 
  5.32  case of a statutory or home rule charter city or town that 
  5.33  exercises the local levy option provided in section 473.388, 
  5.34  subdivision 7, the notice of its proposed taxes may include a 
  5.35  statement of the amount by which its proposed tax increase for 
  5.36  taxes payable in 1997 is attributable to its exercise of that 
  6.1   option, together with a statement that the levy of the 
  6.2   metropolitan council was decreased by a similar amount because 
  6.3   of the exercise of that option.  
  6.4      Sec. 3.  Minnesota Statutes 1996, section 275.065, 
  6.5   subdivision 6, is amended to read: 
  6.6      Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
  6.7   Between November 29 and December 20, the governing bodies of a 
  6.8   city that has a population over 500, county, metropolitan 
  6.9   special taxing districts as defined in subdivision 3, paragraph 
  6.10  (i), and regional library districts shall each hold a public 
  6.11  hearing to discuss and seek public comment on its final budget 
  6.12  and property tax levy for taxes payable in the following year, 
  6.13  and the governing body of the school district shall hold a 
  6.14  public hearing to review its current budget and proposed 
  6.15  property tax levy for taxes payable in the following year.  At 
  6.16  the public hearing, the school district must also provide and 
  6.17  discuss information on the distribution of its revenues by 
  6.18  revenue source, and the distribution of its spending by program 
  6.19  area.  The metropolitan special taxing districts shall be 
  6.20  required to hold only a single joint public hearing, the 
  6.21  location of which will be determined by the affected 
  6.22  metropolitan agencies. 
  6.23     At a subsequent hearing, each county, school district, 
  6.24  city, and metropolitan special taxing district may amend its 
  6.25  proposed property tax levy and must adopt a final property tax 
  6.26  levy.  Each county, city, and metropolitan special taxing 
  6.27  district may also amend its proposed budget and must adopt a 
  6.28  final budget at the subsequent hearing.  A school district is 
  6.29  not required to adopt its final budget at the subsequent 
  6.30  hearing.  The subsequent hearing of a taxing authority must be 
  6.31  held on a date subsequent to the date of the taxing authority's 
  6.32  initial public hearing, or subsequent to the date of its 
  6.33  continuation hearing if a continuation hearing is held.  The 
  6.34  subsequent hearing may be held at a regularly scheduled board or 
  6.35  council meeting or at a special meeting scheduled for the 
  6.36  purposes of the subsequent hearing.  The subsequent hearing of a 
  7.1   taxing authority does not have to be coordinated by the county 
  7.2   auditor to prevent a conflict with an initial hearing, a 
  7.3   continuation hearing, or a subsequent hearing of any other 
  7.4   taxing authority.  All subsequent hearings must be held prior to 
  7.5   five working days after December 20 of the levy year. 
  7.6      The time and place of the subsequent hearing must be 
  7.7   announced at the initial public hearing or at the continuation 
  7.8   hearing. 
  7.9      The property tax levy certified under section 275.07 by a 
  7.10  city, county, metropolitan special taxing district, regional 
  7.11  library district, or school district must not exceed the 
  7.12  proposed levy determined under subdivision 1, except by an 
  7.13  amount up to the sum of the following amounts: 
  7.14     (1) the amount of a school district levy whose voters 
  7.15  approved a referendum to increase taxes under section 124.82, 
  7.16  subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 
  7.17  2, after the proposed levy was certified; 
  7.18     (2) the amount of a city or county levy approved by the 
  7.19  voters after the proposed levy was certified; 
  7.20     (3) the amount of a levy to pay principal and interest on 
  7.21  bonds approved by the voters under section 475.58 after the 
  7.22  proposed levy was certified; 
  7.23     (4) the amount of a levy to pay costs due to a natural 
  7.24  disaster occurring after the proposed levy was certified, if 
  7.25  that amount is approved by the commissioner of revenue under 
  7.26  subdivision 6a; 
  7.27     (5) the amount of a levy to pay tort judgments against a 
  7.28  taxing authority that become final after the proposed levy was 
  7.29  certified, if the amount is approved by the commissioner of 
  7.30  revenue under subdivision 6a; 
  7.31     (6) the amount of an increase in levy limits certified to 
  7.32  the taxing authority by the commissioner of children, families, 
  7.33  and learning or the commissioner of revenue after the proposed 
  7.34  levy was certified; and 
  7.35     (7) the amount required under section 124.755. 
  7.36     At the hearing under this subdivision, the percentage 
  8.1   increase in property taxes proposed by the taxing authority, if 
  8.2   any, and the specific purposes for which property tax revenues 
  8.3   are being increased must be discussed.  
  8.4      During the discussion, the governing body shall hear 
  8.5   comments regarding a proposed increase and explain the reasons 
  8.6   for the proposed increase.  The public shall be allowed to speak 
  8.7   and to ask questions.  At the subsequent hearing held as 
  8.8   provided in this subdivision, the governing body, other than the 
  8.9   governing body of a school district, shall adopt its final 
  8.10  property tax levy prior to adopting its final budget. 
  8.11     If the hearing is not completed on its scheduled date, the 
  8.12  taxing authority must announce, prior to adjournment of the 
  8.13  hearing, the date, time, and place for the continuation of the 
  8.14  hearing.  The continued hearing must be held at least five 
  8.15  business days but no more than 14 business days after the 
  8.16  original hearing. 
  8.17     The hearing must be held after 5:00 p.m. if scheduled on a 
  8.18  day other than Saturday.  No hearing may be held on a Sunday.  
  8.19  The governing body of a county shall hold a hearing on the 
  8.20  second Tuesday in December each year, and may hold additional 
  8.21  hearings on other dates before December 20 if necessary for the 
  8.22  convenience of county residents.  If the county needs a 
  8.23  continuation of its hearing, the continued hearing shall be held 
  8.24  on the third Tuesday in December.  If the third Tuesday in 
  8.25  December falls on December 21, the county's continuation hearing 
  8.26  shall be held on Monday, December 20.  The county auditor shall 
  8.27  provide for the coordination of hearing dates for all cities and 
  8.28  school districts within the county. 
  8.29     The metropolitan special taxing districts shall hold a 
  8.30  joint public hearing on the first Monday of December.  A 
  8.31  continuation hearing, if necessary, shall be held on the second 
  8.32  Monday of December. 
  8.33     By August 10, each school board and the board of the 
  8.34  regional library district shall certify to the county auditors 
  8.35  of the counties in which the school district or regional library 
  8.36  district is located the dates on which it elects to hold its 
  9.1   hearings and any continuations.  If a school board or regional 
  9.2   library district does not certify the dates by August 10, the 
  9.3   auditor will assign the hearing date.  The dates elected or 
  9.4   assigned must not conflict with the hearing dates of the county 
  9.5   or the metropolitan special taxing districts.  By August 20, the 
  9.6   county auditor shall notify the clerks of the cities within the 
  9.7   county of the dates on which school districts and regional 
  9.8   library districts have elected to hold their hearings.  At the 
  9.9   time a city certifies its proposed levy under subdivision 1 it 
  9.10  shall certify the dates on which it elects to hold its hearings 
  9.11  and any continuations.  For its initial hearing and for the 
  9.12  subsequent hearing at which the final property tax levy will be 
  9.13  adopted, the city must not select dates that conflict with the 
  9.14  county hearing dates, metropolitan special taxing district 
  9.15  dates, or with those elected by or assigned to the school 
  9.16  districts or regional library district in which the city is 
  9.17  located.  For continuation hearings, the city may select dates 
  9.18  that conflict with other taxing authorities' dates if the city 
  9.19  deems it necessary. 
  9.20     The county hearing dates and the city, metropolitan special 
  9.21  taxing district, regional library district, and school district 
  9.22  hearing dates must be designated on the notices required under 
  9.23  subdivision 3.  The continuation dates need not be stated on the 
  9.24  notices.  
  9.25     This subdivision does not apply to towns and special taxing 
  9.26  districts other than regional library districts and metropolitan 
  9.27  special taxing districts. 
  9.28     Notwithstanding the requirements of this section, the 
  9.29  employer is required to meet and negotiate over employee 
  9.30  compensation as provided for in chapter 179A.  
  9.31     Sec. 4.  Minnesota Statutes 1996, section 276.04, 
  9.32  subdivision 2, is amended to read: 
  9.33     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
  9.34  shall provide for the printing of the tax statements.  The 
  9.35  commissioner of revenue shall prescribe the form of the property 
  9.36  tax statement and its contents.  The statement must contain a 
 10.1   tabulated statement of the dollar amount due to each taxing 
 10.2   authority and the state from the parcel of real property for 
 10.3   which a particular tax statement is prepared.  The dollar 
 10.4   amounts due the county, state general education tax, the 
 10.5   remaining school district amount, township or municipality, the 
 10.6   total of the metropolitan special taxing districts as defined in 
 10.7   section 275.065, subdivision 3, paragraph (i), school district 
 10.8   excess referenda levy, remaining school district levy, and the 
 10.9   total of other voter approved referenda levies based on market 
 10.10  value under section 275.61 must be separately stated.  The 
 10.11  amounts due all other special taxing districts, if any, may be 
 10.12  aggregated.  For the purposes of this subdivision, "school 
 10.13  district excess referenda levy" means school district taxes for 
 10.14  operating purposes approved at referenda, including those taxes 
 10.15  based on net tax capacity as well as those based on market value.
 10.16  "School district excess referenda levy" does not include school 
 10.17  district taxes for capital expenditures approved at referendums 
 10.18  or school district taxes to pay for the debt service on bonds 
 10.19  approved at referenda.  The amount of the tax on contamination 
 10.20  value imposed under sections 270.91 to 270.98, if any, must also 
 10.21  be separately stated.  The dollar amounts, including the dollar 
 10.22  amount of any special assessments, may be rounded to the nearest 
 10.23  even whole dollar.  For purposes of this section whole 
 10.24  odd-numbered dollars may be adjusted to the next higher 
 10.25  even-numbered dollar.  The amount of market value excluded under 
 10.26  section 273.11, subdivision 16, if any, must also be listed on 
 10.27  the tax statement.  The statement shall include the following 
 10.28  sentence, printed in upper case letters in boldface print:  "THE 
 10.29  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 10.30  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 10.31  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 10.32     (b) The property tax statements for manufactured homes and 
 10.33  sectional structures taxed as personal property shall contain 
 10.34  the same information that is required on the tax statements for 
 10.35  real property.  
 10.36     (c) Real and personal property tax statements must contain 
 11.1   the following information in the order given in this paragraph.  
 11.2   The information must contain the current year tax information in 
 11.3   the right column with the corresponding information for the 
 11.4   previous year in a column on the left: 
 11.5      (1) the property's estimated market value under section 
 11.6   273.11, subdivision 1; 
 11.7      (2) the property's taxable market value after reductions 
 11.8   under section 273.11, subdivisions 1a and 16; 
 11.9      (3) the property's gross tax, calculated by multiplying the 
 11.10  property's gross tax capacity times the total local tax rate and 
 11.11  adding the property's total property tax to the result the sum 
 11.12  of the aids enumerated in clause (4); 
 11.13     (4) a total of the following aids: 
 11.14     (i) education aids payable under chapters 124 and 124A; 
 11.15     (ii) local government aids for cities, towns, and counties 
 11.16  under chapter 477A; and 
 11.17     (iii) disparity reduction aid under section 273.1398; and 
 11.18     (iv) homestead and agricultural credit aid under section 
 11.19  273.1398; 
 11.20     (5) for homestead residential and agricultural properties, 
 11.21  the homestead and agricultural credit aid apportioned to the 
 11.22  property.  This amount is obtained by multiplying the total 
 11.23  local tax rate by the difference between the property's gross 
 11.24  and net tax capacities under section 273.13.  This amount must 
 11.25  be separately stated and identified as "homestead and 
 11.26  agricultural credit."  For purposes of comparison with the 
 11.27  previous year's amount for the statement for taxes payable in 
 11.28  1990, the statement must show the homestead credit for taxes 
 11.29  payable in 1989 under section 273.13, and the agricultural 
 11.30  credit under section 273.132 for taxes payable in 1989; 
 11.31     (6) any credits received under sections 273.119; 273.123; 
 11.32  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 11.33  473H.10, except that the amount of credit received under section 
 11.34  273.135 must be separately stated and identified as "taconite 
 11.35  tax relief"; and 
 11.36     (7) (6) the net tax payable in the manner required in 
 12.1   paragraph (a). 
 12.2      (d) If the county uses envelopes for mailing property tax 
 12.3   statements and if the county agrees, a taxing district may 
 12.4   include a notice with the property tax statement notifying 
 12.5   taxpayers when the taxing district will begin its budget 
 12.6   deliberations for the current year, and encouraging taxpayers to 
 12.7   attend the hearings.  If the county allows notices to be 
 12.8   included in the envelope containing the property tax statement, 
 12.9   and if more than one taxing district relative to a given 
 12.10  property decides to include a notice with the tax statement, the 
 12.11  county treasurer or auditor must coordinate the process and may 
 12.12  combine the information on a single announcement.  
 12.13     The commissioner of revenue shall certify to the county 
 12.14  auditor the actual or estimated aids enumerated in clauses (3) 
 12.15  and clause (4) that local governments will receive in the 
 12.16  following year.  In the case of a county containing a city of 
 12.17  the first class, for taxes levied in 1991, and for all counties 
 12.18  for taxes levied in 1992 and thereafter, The commissioner must 
 12.19  certify this amount by September 1 of each year.  
 12.20     Sec. 5.  [EFFECTIVE DATE.] 
 12.21     Sections 1 and 2 are effective for notices prepared in 1997 
 12.22  and thereafter.  Section 3 is effective for public hearings in 
 12.23  1997 and thereafter.  Section 4 is effective for tax statements 
 12.24  prepared in 1998 and thereafter.