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SF 1640

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 09:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; local government aid; modifying county program aid;
appropriating money; amending Minnesota Statutes 2014, sections 477A.0124,
subdivision 4; 477A.03, subdivision 2b.

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

Section 1.

Minnesota Statutes 2014, section 477A.0124, subdivision 4, is amended to
read:


Subd. 4.

County tax-base equalization aid.

(a) For 2006 and subsequent years,
the money appropriated to county tax-base equalization aid each calendar year, after the
payment under paragraph (f), shall be apportioned among the counties according to each
county's tax-base equalization aid factor.

(b) A county's tax-base equalization aid factor is equal to the amount by which (i)
deleted text begin $185deleted text end new text begin $330new text end times the county's population, exceeds (ii) deleted text begin 9.45deleted text end new text begin 12new text end percent of the county's
net tax capacity.

(c) In the case of a county with a population less than 10,000, the factor determined
in paragraph (b) shall be multiplied by a factor of three.

(d) In the case of a county with a population greater than or equal to 10,000, but less
than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.

new text begin (e) In the case of a county with a population greater than or equal to 12,500 but less
than 16,500, the factor determined in paragraph (b) shall be multiplied by a factor of 1.25.
new text end

deleted text begin (e)deleted text end new text begin (f)new text end In the case of a county with a population greater than 500,000, the factor
determined in paragraph (b) shall be multiplied by a factor of 0.25.

new text begin (g) For distributions in 2016, the allocation to a county under paragraphs (a) to (f)
shall not be less than 95 percent of the sum of the tax base equalization aid in 2014 plus
any supplemental program aid that was distributed to the county under Laws 2014, chapter
308, article 1, section 13. For distributions in 2017 and subsequent years, the allocation
to a county under paragraphs (a) to (f) shall not be less than 95 percent of the tax base
equalization aid of the county in the prior year.
new text end

deleted text begin (f)deleted text end new text begin (h)new text end Before the money appropriated to county base equalization aid is apportioned
among the counties as provided in paragraph (a), an amount up to $73,259 is allocated
annually to Anoka County and up to $59,664 is annually allocated to Washington County
for the county to pay postretirement costs of health insurance premiums for court
employees. The allocation under this paragraph is in addition to the allocations under
paragraphs (a) to deleted text begin (e)deleted text end new text begin (g)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2016 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:


Subd. 2b.

Counties.

(a) For aids payable in 2014 deleted text begin and thereafterdeleted text end new text begin through 2016new text end , the
total aid payable under section 477A.0124, subdivision 3, is $100,795,000.new text begin For aids
payable in 2017 and thereafter, the total aid under section 477A.0124, subdivision 3, shall
be increased by multiplying the appropriation 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 aid is payable.
new text end Each calendar
year, $500,000 of this appropriation shall be retained by the commissioner of revenue to
make reimbursements to the commissioner of management and budget for payments
made under section 611.27. The reimbursements shall be to defray the additional costs
associated with court-ordered counsel under section 611.27. Any retained amounts not
used for reimbursement in a year shall be included in the next distribution of county
need aid that is certified to the county auditors for the purpose of property tax reduction
for the next taxes payable year.

(b) For aids payable in deleted text begin 2014deleted text end new text begin 2016new text end and thereafter, the total aid under section
477A.0124, subdivision 4, is deleted text begin $104,909,575deleted text end new text begin $129,909,575new text end .new text begin For aids payable in 2017
and thereafter, the total aid under section 477A.0124, subdivision 4, shall be increased
by multiplying the appropriation 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 aid is payable.
new text end The commissioner of revenue
shall transfer to the commissioner of management and budget $207,000 annually for the
cost of preparation of local impact notes as required by section 3.987, and other local
government activities. The commissioner of revenue shall transfer to the commissioner
of education $7,000 annually for the cost of preparation of local impact notes for school
districts as required by section 3.987. The commissioner of revenue shall deduct the
amounts transferred under this paragraph from the appropriation under this paragraph.
The amounts transferred are appropriated to the commissioner of management and budget
and the commissioner of education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2016 and thereafter.
new text end