SF 2176

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

A bill for an act
relating to education finance; including seasonal
recreational property in the definition of referendum
tax base; adjusting operating referendum equalization
factors; excluding seasonal recreational property from
the state general levy tax base; amending Minnesota
Statutes 2004, sections 126C.01, subdivision 3;
126C.17, subdivision 6, by adding a subdivision;
275.025, subdivisions 1, 4; repealing Minnesota
Statutes 2004, section 275.025, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 126C.01,
subdivision 3, is amended to read:

Subd. 3.

Referendum market value.

"Referendum market
value" means the market value of all taxable property, excluding
property classified as class 2 deleted text begin , noncommercial 4c(1), or 4c(4)
deleted text end under section 273.13. The portion of class 2a property
consisting of the house, garage, and surrounding one acre of
land of an agricultural homestead is included in referendum
market value. Any class of property, or any portion of a class
of property, that is included in the definition of referendum
market value and that has a class rate of less than one percent
under section 273.13 shall have a referendum market value equal
to its net tax capacity multiplied by 100.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, section 126C.17,
subdivision 6, is amended to read:

Subd. 6.

Referendum equalization levy.

(a) For fiscal
year 2003 and later, a district's referendum equalization levy
equals the sum of the first tier referendum equalization levy
and the second tier referendum equalization levy.

(b) new text begin For fiscal years 2005 and 2006, new text end a district's first tier
referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the
ratio of the district's referendum market value per resident
marginal cost pupil unit to $476,000. new text begin For fiscal year 2007 and
later, a district's first tier referendum equalization levy
equals the district's first tier referendum equalization revenue
times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to
$483,530.
new text end

(c) new text begin For fiscal years 2005 and 2006, new text end a district's second
tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or
the ratio of the district's referendum market value per resident
marginal cost pupil unit to $270,000. new text begin For fiscal year 2007 and
later, a district's second tier referendum equalization levy
equals the district's second tier referendum equalization
revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to
$279,770.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2004, section 126C.17, is
amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Referendum seasonal property aid
adjustment. new text end

new text begin (a) A district's seasonal aid allowance equals the
difference between referendum equalization levy in taxes payable
in 2006 that the district would have levied based on the
referendum market value that the district would have used
according to section 126C.01, subdivision 3, and the
equalization factors according to section 126C.17, subdivision
6, subtracted from the district's referendum equalization levy
in taxes payable in 2006 divided by its resident marginal cost
pupil units for fiscal year 2007. A district's seasonal aid
allowance shall not be less than zero.
new text end

new text begin (b) For fiscal year 2007 and later, a district's referendum
seasonal property aid adjustment equals the district's seasonal
aid allowance times its resident marginal cost pupil units.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2004, section 275.025,
subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is
levied against commercial-industrial property deleted text begin and seasonal
residential recreational property, deleted text end as defined in this section.
The state general levy base amount is $592,000,000 for taxes
payable in 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 payable. 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 deleted text begin or seasonal residential recreational
deleted text end 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 270.11, subdivision 2, 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 for taxes
payable in 2006 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2004, section 275.025,
subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

The state general tax must be distributed among the counties by
applying a uniform rate to each county's commercial-industrial
tax capacity deleted text begin and its seasonal residential recreational tax
capacity deleted text end . Within each county, the tax must be levied by
applying a uniform rate against commercial-industrial tax
capacity deleted text begin and seasonal residential recreational tax capacity deleted text end . On
or before October 1 each year, the commissioner of revenue shall
certify a preliminary state general levy rate to each county
auditor that must be used to prepare the notices of proposed
property taxes for taxes payable in the following year. By
January 1 of each year, the commissioner shall certify the final
state general levy rate to each county auditor that shall be
used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 275.025, subdivision 3, is
repealed effective for taxes payable in 2006 and thereafter.
new text end