SF 1995

as introduced - 89th Legislature (2015 - 2016) Posted on 03/27/2015 09:12am

A bill for an act
relating to education finance; creating the Ag2School debt service property
tax credit; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 123B.

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

Section 1.

new text begin [123B.555] AG2SCHOOL DEBT SERVICE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the definitions have
the meanings given.
new text end

new text begin (b) "Agricultural land" means property classified as class 2a, 2b, or 2d under section
273.13 excluding the house, garage, and surrounding one acre of land of an agricultural
homestead.
new text end

new text begin Subd. 2. new text end

new text begin Ag2School rate. new text end

new text begin The commissioner, in consultation with the commissioner
of revenue, must establish the Ag2School rate by July 1 of each year for taxes payable in
the following year. For taxes payable in 2016 and later, the Ag2School rate must be a rate,
rounded up to the nearest hundredth of a percent, that, when applied to the net tax capacity
of all agricultural land for all districts, raises the amount equal to the difference between
(1) 40 percent of the total debt service levy under section 123B.55 for taxes payable in the
previous year on all agricultural land in the state, and (2) the target amount in subdivision
6 for the fiscal year corresponding to the taxes payable year. The Ag2School rate may not
be changed due to changes or corrections made to a district's net tax capacity after the
rate has been established.
new text end

new text begin Subd. 3. new text end

new text begin Ag2School levy and reserve account. new text end

new text begin The county auditor shall levy
the rate determined in subdivision 2 against all agricultural land in the county and
reserve the amount in an account for the next payment under subdivision 5. If the taxes
collected under the levy are estimated by the county auditor to exceed the payments
under subdivision 5, the auditor shall remit the excess to the commissioner by July 15
for property taxes collected in May and June and by December 15 for taxes collected in
October and November. If the taxes collected under the levy are estimated by the county
auditor to fall short of the amount needed for the next payment under subdivision 5, the
auditor shall certify the shortfall amount to the commissioner by July 15 for property
taxes collected in May and June and by December 15 for taxes collected in October and
November. The commissioner shall pay that amount first from money remitted from other
counties, then from the appropriated money in subdivision 6 to the county auditor to be
reserved in an account for payments under subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Credit. new text end

new text begin Beginning with taxes payable in 2016, the county auditor shall
credit an owner of agricultural land that owes property taxes under the debt service levy
under section 123B.55 an amount equal to 40 percent of that amount. The amount of
the credit must be applied evenly between taxes due in May and June and those due in
October and November.
new text end

new text begin Subd. 5. new text end

new text begin Payment. new text end

new text begin By July 30 for the credits applied in May and June and by
December 30 for the credits applied in October and November, the county auditor shall
make a payment to a school district equal to the sum of the credits given under subdivision
4 for agricultural property within the district.
new text end

new text begin Subd. 6. new text end

new text begin Target and appropriation. new text end

new text begin (a) The target under subdivision 2 is
$30,000,000 in fiscal year 2017 and later. The amount necessary for the payment of
the Ag2School debt service credit under this section is annually appropriated from the
general fund to the commissioner of education.
new text end

new text begin (b) The appropriation in paragraph (a) must be reduced by the amount of any money
specifically appropriated for the same purpose in any year from any state fund.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Ag2School property tax credit. new text end

new text begin For the Ag2School debt service property
tax credit under Minnesota Statutes, section 123B.555, subdivision 6:
new text end

new text begin $ new text end

new text begin 30,000,000 new text end

new text begin ..... new text end

new text begin 2017 new text end