Minnesota Legislature
SF 1561
as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 08:50am
Current Version - as introduced
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A bill for an act
relating to taxation; property; eliminating the automatic inflation and exempting
the first tier of commercial-industrial property from the state general levy;
repealing apportionment; amending Minnesota Statutes 2014, section 275.025,
subdivisions 1, 2; repealing Minnesota Statutes 2014, section 275.025,
subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
Subdivision 1.
Levy amount.
The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy deleted text begin base amountdeleted text end new text begin amount for commercial-industrial
propertynew text end is deleted text begin $592,000,000deleted text end new text begin $736,170,800 for taxes payable in 2016 and thereafter and
$43,057,500 for seasonal residential recreational propertynew text end for taxes payable in deleted text begin 2002.
For taxes payable in subsequent years, the levy base amount is increased each year by
multiplying the levy base amount for the prior year by the sum of one plus the rate of
increase, if any, in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payabledeleted text end new text begin 2016 and thereafternew text end . The tax
under this section is not treated as a local tax rate under section 469.177 and is not the
levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in
2016 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:
Subd. 2.
Commercial-industrial tax capacity.
For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, deleted text begin except fordeleted text end new text begin excluding: (1) the
first tier of commercial-industrial value as defined under section 273.13, subdivision 24;
and (2)new text end electric generation attached machinery under class 3 and property described in
section 473.625. County commercial-industrial tax capacity amounts are not adjusted
for the captured net tax capacity of a tax increment financing district under section
469.177, subdivision 2, the net tax capacity of transmission lines deducted from a local
government's total net tax capacity under section 273.425, or fiscal disparities contribution
and distribution net tax capacities under chapter 276A or 473F.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in
2016 and thereafter.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, section 275.025, subdivision 4,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in
2016 and thereafter.
new text end