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SF 1743

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

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

Current Version - as introduced

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A bill for an act
relating to education finance; modifying the tax base
used to calculate debt service levies; amending
Minnesota Statutes 2004, sections 123B.53, subdivision
5; 126C.01, by adding a subdivision; 127A.48, by
adding a subdivision; 273.11, subdivision 1a.

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

Section 1.

Minnesota Statutes 2004, section 123B.53,
subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized
debt service levy of a district equals the sum of the first tier
equalized debt service levy and the second tier equalized debt
service levy.

(b) A district's first tier equalized debt service levy
equals the district's first tier debt service equalization
revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the deleted text begin adjusted deleted text end new text begin debt
service
new text end net tax capacity of the district for the year before the
year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the
year the levy is certified; to

(2) $3,200.

(c) A district's second tier equalized debt service levy
equals the district's second tier debt service equalization
revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the deleted text begin adjusted deleted text end new text begin debt
service
new text end net tax capacity of the district for the year before the
year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the
year the levy is certified; to

(2) $8,000.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, section 126C.01, is
amended by adding a subdivision to read:


new text begin Subd. 2a.new text end

new text begin Debt service net tax capacity.new text end

new text begin A school
district's debt service net tax capacity means the net tax
capacity of the taxable property of the district as adjusted by
the commissioner of revenue under section 127A.48, subdivision
17. The debt service net tax capacity for any given calendar
year must be used to compute the debt service levy limitations
for levies certified in the succeeding calendar year and aid for
the school year beginning in the second succeeding calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment for computing taxes payable in 2006.
new text end

Sec. 3.

Minnesota Statutes 2004, section 127A.48, is
amended by adding a subdivision to read:


new text begin Subd. 17.new text end

new text begin Debt service net tax capacity.new text end

new text begin To calculate
each district's debt service net tax capacity, the commissioner
of revenue must recompute the amounts in this section using an
alternative sales ratio comparing the sales price to the
estimated market value of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment for computing taxes payable in 2006.
new text end

Sec. 4.

Minnesota Statutes 2004, section 273.11,
subdivision 1a, is amended to read:


Subd. 1a.

Limited market value.

In the case of all
property classified as agricultural homestead or nonhomestead,
residential homestead or nonhomestead, timber, or noncommercial
seasonal residential recreational, the assessor shall compare
the value with the taxable portion of the value determined in
the preceding assessment.

For assessment year 2002, the amount of the increase shall
not exceed the greater of (1) ten percent of the value in the
preceding assessment, or (2) 15 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2003, the amount of the increase shall
not exceed the greater of (1) 12 percent of the value in the
preceding assessment, or (2) 20 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2004, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 25 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2005, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2006, the amount of the increase shall
not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.

This limitation shall not apply to increases in value due
to improvements. For purposes of this subdivision, the term
"assessment" means the value prior to any exclusion under
subdivision 16.

The provisions of this subdivision shall be in effect
through assessment year 2006 as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted
under section 127A.48, and the computation of state aids paid
under chapters 122A, 123A, 123B, new text begin excluding section 123B.53,
new text end 124D, 125A, 126C, 127A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16,
shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment for computing taxes payable in 2006.
new text end