SF 2439

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/16/2021 11:54am

A bill for an act
relating to taxation; property; requiring the state to pay the costs of property tax
judgments against state-assessed property; requiring reports; appropriating money;
amending Minnesota Statutes 2020, sections 273.372, by adding subdivisions;
278.12; 290.06, by adding a subdivision; 297E.021, subdivision 4.

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

Section 1.

Minnesota Statutes 2020, section 273.372, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Report on large judgments and settlements. new text end

new text begin The commissioner must produce
a report on large judgments and court-stipulated settlements totaling $50,000 or greater,
concerning utility and railroad property for which the commissioner provided or
recommended values for assessment. The commissioner must provide a copy of the report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over property taxation within 90 days of a final judgment or court-stipulated settlement.
The report must comply with the requirements of sections 3.195 and 3.197. The report must
include the following:
new text end

new text begin (1) a listing of the professional qualifications of the Department of Revenue staff that
assess utility and railroad property, including the licensing and certification qualifications
of those that made the initial valuation that resulted in the petition for relief and those
classified as supervisory staff that reviewed and approved the initial valuation;
new text end

new text begin (2) corrective actions taken by the commissioner to accurately assess and value utility
and railroad property including but not limited to additional staff training, adjustments to
the internal review process for reaching final valuation assessment decisions, and where
applicable, a comparison of the initial valuation assessment made by the commissioner and
valuation assessments made by state authorities on similar infrastructure in other states; and
new text end

new text begin (3) a full cost accounting of all staff time involved in defense of the initial assessment,
including but not limited to all department internal and external costs of legal counsel that
accrued during the actions related to reported judgments and court-stipulated settlements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for all judgments and court
stipulated settlements that occurred on or after January 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 273.372, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Annual report. new text end

new text begin The commissioner must produce an annual report on the tax
appeals it is a party to under chapters 271, 273, and 278. The commissioner must provide
a copy of the report to the chairs and ranking minority members of the legislative committees
with jurisdiction over property taxation no later than January 20 each year. The report must
comply with the requirements of sections 3.195 and 3.197. The report must include the
following:
new text end

new text begin (1) a list of cases resulting in judgments or court-stipulated settlements during the prior
calendar year;
new text end

new text begin (2) a list of active cases that remain unresolved;
new text end

new text begin (3) the cause of action for each appeal and the specific amounts in dispute for each case;
and
new text end

new text begin (4) the staff costs associated with each resolved tax court case, whether resolved by
judgment or court-stipulated settlement, including the legal counsel costs from other
departments and outside legal counsel, if applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 278.12, is amended to read:

278.12 REFUNDS OF OVERPAYMENT.

new text begin (a) new text end If upon final determination the petitioner has paid more than the amount so determined
to be due, judgment shall be entered in favor of the petitioner for such excess deleted text begin , and deleted text end new text begin .
new text end

new text begin (b) In the case of a petition under section 273.372 where a petitioner receives a judgment
determining the petitioner has overpaid tax liabilities relative to property value determined
by the commissioner of revenue, the petitioner may file a copy of the judgment with the
commissioner and the commissioner must issue a warrant for the payment of the judgment.
At the time of filing the judgment, the petitioner must elect a method for payment. A
petitioner may elect for the payment to either be:
new text end

new text begin (1) applied to the petitioner's estimated tax liability under section 290.06, subdivision
39, in the following year; or
new text end

new text begin (2) refunded within 30 days of the petitioner's election. An amount necessary to pay
judgments under this clause is appropriated to the commissioner from the account in section
297E.021.
new text end

new text begin (c) In the case of a judgment relative to any other property, new text end upon filing a copy deleted text begin thereof deleted text end new text begin
of the judgment new text end with the county auditor new text begin , new text end the auditor shall forthwith draw a warrant upon
the county treasurer for the payment thereof; provided that, with the consent of the petitioner,
the county auditor may, in lieu of drawing such warrant, issue to the petitioner a certificate
stating the amount of such judgment, which amount may be used to apply upon any taxes
due or to become due for the taxing district or districts whose taxes or assessments are
reduced, or their successors in the event of a reorganization or reincorporation of any such
taxing district. In the event the auditor shall issue a warrant for refund or certificates, the
amount thereof shall be charged to the state and other taxing districts in proportion to the
amount of their respective taxes included in the levy and deduct the same in the subsequent
distribution of any tax proceeds to the state or such taxing districts, and upon receiving any
such certificate in payment of other taxes, the amount thereof shall be distributed to the
state and other taxing districts in proportion to the amount of their respective taxes included
in the levy; provided that if in the judgment the levy of one or more of the districts be found
to be illegal, to the extent that the tax so levied is reduced on account of the illegal levies,
the amount to be charged back shall be charged to the districts and the amount thereof
deducted from any distributions thereafter made to them.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for judgments entered on
or after January 1, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 39. new text end

new text begin State-assessed property judgment credit. new text end

new text begin (a) A taxpayer may take a credit
against the tax due under this chapter, including the tax imposed by sections 290.0921 and
290.0922, equal to the amount of warrant for the payment of the judgment under section
278.12.
new text end

new text begin (b) If the amount of credit which the taxpayer is eligible to receive under this subdivision
exceeds the taxpayer's tax liability under this chapter, the commissioner must refund the
excess to the taxpayer. The amount necessary to pay claims for refunds provided in this
subdivision is appropriated to the commissioner from the account in section 297E.021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end

Sec. 5.

Minnesota Statutes 2020, section 297E.021, subdivision 4, is amended to read:

Subd. 4.

Appropriation; general reserve account.

To the extent the commissioner
determines that revenues are available under subdivision 3 for the fiscal year, those amounts
are appropriated from the general fund for deposit in a general reserve account established
by order of the commissioner of management and budget new text begin , but after refunds of payments in
sections 278.12, paragraph (b), and 290.06, subdivision 39 new text end . Amounts in this reserve are
appropriated as necessary for application against any shortfall in the amounts deposited to
the general fund under section 297A.994 or, after consultation with the Legislative
Commission on Planning and Fiscal Policy, amounts in this reserve are appropriated to the
commissioner of management and budget for other uses related to the stadium authorized
under section 473J.03, subdivision 8, that the commissioner deems financially prudent
including but not limited to reimbursements for capital and operating costs relating to the
stadium, refundings, and prepayment of debt. In no event, shall available revenues be
pledged, nor shall the appropriations of available revenues made by this section constitute
a pledge of available revenues as security for the prepayment of principal and interest on
the appropriation bonds under section 16A.965.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end