SF 2581

as introduced - 88th Legislature (2013 - 2014) Posted on 08/29/2014 12:51pm

A bill for an act
relating to local government; broadening the application of city special service
districts to include residential and mixed uses; amending Minnesota Statutes
2012, sections 428A.08; 428A.09, subdivision 2; Minnesota Statutes 2013
Supplement, section 428A.02, subdivision 1; repealing Minnesota Statutes 2012,
section 428A.01, subdivision 6.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 428A.02, subdivision 1,
is amended to read:

Subdivision 1.

Ordinance.

The governing body of a city may adopt an ordinance
establishing a special service district. deleted text begin Only property that is classified under section 273.13
and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
designated on a land use plan for commercial or industrial use and located in the special
service district, may be subject to the charges imposed by the city on the special service
district. Other types of property may be included within the boundaries of the special
service district but are not subject to the levies or charges imposed by the city on the
special service district. If 50 percent or more of the estimated market value of a parcel of
property is classified under section 273.13 as commercial, industrial, or vacant land zoned
or designated on a land use plan for commercial or industrial use, or public utility for the
current assessment year, then the entire taxable market value of the property is subject to a
service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10.
deleted text end The ordinance shall describe with particularity the area within the city to be included in
the district and the special services to be furnished in the district. The ordinance may not
be adopted until after a public hearing has been held on the question. Notice of the hearing
shall include the time and place of hearing, a map showing the boundaries of the proposed
district, and a statement that all persons owning property in the proposed district that
would be subject to a service charge will be given opportunity to be heard at the hearing.
Within 30 days after adoption of the ordinance under this subdivision, the governing body
shall send a copy of the ordinance to the commissioner of revenue.

Sec. 2.

Minnesota Statutes 2012, section 428A.08, is amended to read:

428A.08 PETITION REQUIRED.

No action may be taken under section 428A.02 or 428A.03, unless deleted text begin owners of 25
percent or more of the land area of property that would be subject to service charges in the
proposed special service district and either deleted text end : (1) owners of 25 percent or more of the net
tax capacity of property that would be subject to a proposed service charge, based on net
tax capacity; or (2) owners, individuals, and business organizations subject to 25 percent
or more of a proposed service charge based on other than net tax capacity file a petition
requesting a public hearing on the proposed action with the city clerk. If the boundaries of
a proposed district are changed or the land area or net tax capacity subject to a service
charge or the individuals or business organizations subject to a service charge are changed
after the public hearing, a petition meeting the requirements of this section must be filed
with the city clerk before the ordinance establishing the district or resolution imposing
the service charge may become effective.

Sec. 3.

Minnesota Statutes 2012, section 428A.09, subdivision 2, is amended to read:

Subd. 2.

Requirements for veto.

If owners of 35 percent or more of deleted text begin the land area
deleted text end new text begin value new text end in the district subject to the service charge based on net tax capacity or owners,
individuals, and business organizations subject to 35 percent or more of the service
charges to be imposed in the district, file an objection to the ordinance adopted by the city
under section 428A.02 with the city clerk before the effective date of the ordinance, the
ordinance does not become effective. If owners of 35 percent or more of deleted text begin the land area
deleted text end new text begin value new text end subject to the service charge based on net tax capacity or owners of 35 percent or
more of the net tax capacity subject to the service charge based on net tax capacity file an
objection to the resolution adopted imposing a service charge based on net tax capacity
under section 428A.03 with the city clerk before the effective date of the resolution, the
resolution does not become effective. If owners, individuals, and business organizations
subject to 35 percent or more of the service charges to be imposed in the district file an
objection to the resolution adopted imposing a service charge on a basis other than net
tax capacity under section 428A.03 with the city clerk before the effective date of the
resolution, the resolution does not become effective. In the event of a veto, no district
shall be established during the current calendar year and until a petition meeting the
qualifications set forth in this subdivision for a veto has been filed.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 428A.01, subdivision 6, new text end new text begin is repealed.
new text end