SF 2588

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to metropolitan government; authorizing 
  1.3             municipalities providing replacement transit service 
  1.4             to individually assess a levy for transit and collect 
  1.5             the proceeds; amending Minnesota Statutes 1994, 
  1.6             sections 473.388, subdivision 5, and by adding a 
  1.7             subdivision; and 473.446, by adding a subdivision; 
  1.8             Minnesota Statutes 1995 Supplement, sections 275.065, 
  1.9             subdivision 3; and 473.446, subdivisions 1 and 8. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.12  275.065, subdivision 3, is amended to read: 
  1.13     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  1.14  county auditor shall prepare and the county treasurer shall 
  1.15  deliver after November 10 and on or before November 24 each 
  1.16  year, by first class mail to each taxpayer at the address listed 
  1.17  on the county's current year's assessment roll, a notice of 
  1.18  proposed property taxes and, in the case of a town, final 
  1.19  property taxes.  
  1.20     (b) The commissioner of revenue shall prescribe the form of 
  1.21  the notice. 
  1.22     (c) The notice must inform taxpayers that it contains the 
  1.23  amount of property taxes each taxing authority other than a town 
  1.24  proposes to collect for taxes payable the following year and, 
  1.25  for a town, the amount of its final levy.  It must clearly state 
  1.26  that each taxing authority, including regional library districts 
  1.27  established under section 134.201, and including the 
  2.1   metropolitan taxing districts as defined in paragraph (i), but 
  2.2   excluding all other special taxing districts and towns, will 
  2.3   hold a public meeting to receive public testimony on the 
  2.4   proposed budget and proposed or final property tax levy, or, in 
  2.5   case of a school district, on the current budget and proposed 
  2.6   property tax levy.  It must clearly state the time and place of 
  2.7   each taxing authority's meeting and an address where comments 
  2.8   will be received by mail.  
  2.9      (d) The notice must state for each parcel: 
  2.10     (1) the market value of the property as determined under 
  2.11  section 273.11, and used for computing property taxes payable in 
  2.12  the following year and for taxes payable in the current year; 
  2.13  and, in the case of residential property, whether the property 
  2.14  is classified as homestead or nonhomestead.  The notice must 
  2.15  clearly inform taxpayers of the years to which the market values 
  2.16  apply and that the values are final values; 
  2.17     (2) by county, city or town, school district excess 
  2.18  referenda levy, remaining school district levy, regional library 
  2.19  district, if in existence, the total of the metropolitan special 
  2.20  taxing districts as defined in paragraph (i) and the sum of the 
  2.21  remaining special taxing districts, and as a total of the taxing 
  2.22  authorities, including all special taxing districts, the 
  2.23  proposed or, for a town, final net tax on the property for taxes 
  2.24  payable the following year and the actual tax for taxes payable 
  2.25  the current year.  For the purposes of this subdivision, "school 
  2.26  district excess referenda levy" means school district taxes for 
  2.27  operating purposes approved at referendums, including those 
  2.28  taxes based on net tax capacity as well as those based on market 
  2.29  value.  "School district excess referenda levy" does not include 
  2.30  school district taxes for capital expenditures approved at 
  2.31  referendums or school district taxes to pay for the debt service 
  2.32  on bonds approved at referenda.  In the case of the city of 
  2.33  Minneapolis, the levy for the Minneapolis library board and the 
  2.34  levy for Minneapolis park and recreation shall be listed 
  2.35  separately from the remaining amount of the city's levy.  In the 
  2.36  case of a parcel where tax increment or the fiscal disparities 
  3.1   areawide tax applies, the proposed tax levy on the captured 
  3.2   value or the proposed tax levy on the tax capacity subject to 
  3.3   the areawide tax must each be stated separately and not included 
  3.4   in the sum of the special taxing districts; and 
  3.5      (3) the increase or decrease in the amounts in clause (2) 
  3.6   from taxes payable in the current year to proposed or, for a 
  3.7   town, final taxes payable the following year, expressed as a 
  3.8   dollar amount and as a percentage. 
  3.9      (e) The notice must clearly state that the proposed or 
  3.10  final taxes do not include the following: 
  3.11     (1) special assessments; 
  3.12     (2) levies approved by the voters after the date the 
  3.13  proposed taxes are certified, including bond referenda, school 
  3.14  district levy referenda, and levy limit increase referenda; 
  3.15     (3) amounts necessary to pay cleanup or other costs due to 
  3.16  a natural disaster occurring after the date the proposed taxes 
  3.17  are certified; 
  3.18     (4) amounts necessary to pay tort judgments against the 
  3.19  taxing authority that become final after the date the proposed 
  3.20  taxes are certified; and 
  3.21     (5) the contamination tax imposed on properties which 
  3.22  received market value reductions for contamination. 
  3.23     (f) Except as provided in subdivision 7, failure of the 
  3.24  county auditor to prepare or the county treasurer to deliver the 
  3.25  notice as required in this section does not invalidate the 
  3.26  proposed or final tax levy or the taxes payable pursuant to the 
  3.27  tax levy. 
  3.28     (g) If the notice the taxpayer receives under this section 
  3.29  lists the property as nonhomestead and the homeowner provides 
  3.30  satisfactory documentation to the county assessor that the 
  3.31  property is owned and has been used as the owner's homestead 
  3.32  prior to June 1 of that year, the assessor shall reclassify the 
  3.33  property to homestead for taxes payable in the following year. 
  3.34     (h) In the case of class 4 residential property used as a 
  3.35  residence for lease or rental periods of 30 days or more, the 
  3.36  taxpayer must either: 
  4.1      (1) mail or deliver a copy of the notice of proposed 
  4.2   property taxes to each tenant, renter, or lessee; or 
  4.3      (2) post a copy of the notice in a conspicuous place on the 
  4.4   premises of the property.  
  4.5      The notice must be mailed or posted by the taxpayer by 
  4.6   November 27 or within three days of receipt of the notice, 
  4.7   whichever is later.  A taxpayer may notify the county treasurer 
  4.8   of the address of the taxpayer, agent, caretaker, or manager of 
  4.9   the premises to which the notice must be mailed in order to 
  4.10  fulfill the requirements of this paragraph. 
  4.11     (i) For purposes of this subdivision, subdivisions 5a and 
  4.12  6, "metropolitan special taxing districts" means the following 
  4.13  taxing districts in the seven-county metropolitan area that levy 
  4.14  a property tax for any of the specified purposes listed below: 
  4.15     (1) metropolitan council under section 473.132, 473.167, 
  4.16  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  4.17     (2) metropolitan airports commission under section 473.667, 
  4.18  473.671, or 473.672; and 
  4.19     (3) metropolitan mosquito control commission under section 
  4.20  473.711. 
  4.21     (j) For taxes levied in 1996, payable in 1997 only, in the 
  4.22  case of a statutory or home rule charter city or town that 
  4.23  exercises the local levy option provided in section 473.388, 
  4.24  subdivision 7, the notice of its proposed taxes may include a 
  4.25  statement of the amount by which its proposed tax increase for 
  4.26  taxes payable in 1997 is attributable to its exercise of that 
  4.27  option, together with a statement that the levy of the 
  4.28  metropolitan council was decreased by a similar amount because 
  4.29  of the exercise of that option. 
  4.30     For purposes of this section, any levies made by the 
  4.31  regional rail authorities in the county of Anoka, Carver, 
  4.32  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  4.33  398A shall be included with the appropriate county's levy and 
  4.34  shall be discussed at that county's public hearing. 
  4.35     Sec. 2.  Minnesota Statutes 1994, section 473.388, 
  4.36  subdivision 5, is amended to read: 
  5.1      Subd. 5.  [OTHER ASSISTANCE.] A city or town receiving 
  5.2   assistance or levying a transit tax under this section may also 
  5.3   receive assistance from the council under section 473.384.  In 
  5.4   applying for assistance under that section an applicant must 
  5.5   describe the portion of the its available local transit funds 
  5.6   which are not obligated to subsidize its replacement transit 
  5.7   service and which the applicant proposes to use to subsidize 
  5.8   additional service.  An applicant which has exhausted its 
  5.9   available local transit funds may use any other local subsidy 
  5.10  funds to complete the required local share.  
  5.11     Sec. 3.  Minnesota Statutes 1994, section 473.388, is 
  5.12  amended by adding a subdivision to read: 
  5.13     Subd. 7.  [LOCAL LEVY OPTION.] (a) A statutory or home rule 
  5.14  charter city or town that is eligible for assistance under this 
  5.15  section, in lieu of receiving the assistance, may levy a tax for 
  5.16  payment of the operating and capital expenditures for transit 
  5.17  and other related activities and to provide for payment of 
  5.18  obligations issued by the municipality for such purposes, 
  5.19  provided that the tax must be sufficient to maintain the level 
  5.20  of transit service provided in the municipality in the previous 
  5.21  year. 
  5.22     (b) The transit tax revenues derived by the municipality 
  5.23  may not exceed: 
  5.24     (1) for taxes levied in 1996, the maximum available local 
  5.25  transit funds for the municipality in 1996 under section 
  5.26  473.446, calculated as if the percentage of transit tax revenues 
  5.27  for the municipality were 88 percent instead of 90 percent, and 
  5.28  multiplied by the municipality's market value adjustment ratio; 
  5.29  and 
  5.30     (2) for taxes levied in 1997 and later years, the maximum 
  5.31  transit tax that the municipality may have levied in the 
  5.32  previous year under this subdivision, multiplied by the 
  5.33  municipality's market value adjustment ratio. 
  5.34     The commissioner of revenue shall certify the 
  5.35  municipality's levy limitation under this subdivision to the 
  5.36  municipality by August 1 of the levy year.  The tax, including 
  6.1   any penalties, interest, and costs, must be accumulated and kept 
  6.2   in a separate fund to be known as the "replacement transit fund."
  6.3      (c) To enable the municipality to receive revenues 
  6.4   described in clauses (2) and (3) of the definition of "tax 
  6.5   revenues" in section 473.388, subdivision 4, that would 
  6.6   otherwise be lost if the municipality's transit tax levy was not 
  6.7   treated as a successor levy to that made by the council under 
  6.8   section 473.446: 
  6.9      (1) 88 percent of the council's 1995 nondebt spread levy 
  6.10  shall be treated as levied by the municipality, and not the 
  6.11  council, for purposes of section 473F.08, subdivision 3, for the 
  6.12  purpose of determining its local tax rate for the preceding 
  6.13  year; and 
  6.14     (2) there shall be paid to the municipality instead of the 
  6.15  council 88 percent of the revenues described in clause (3) of 
  6.16  the definition of "tax revenues" in section 473.388, subdivision 
  6.17  4. 
  6.18     (d) Any transit taxes levied under this subdivision are not 
  6.19  subject to, or counted towards, any limit hereafter imposed by 
  6.20  law on the levy of taxes upon taxable property within any 
  6.21  municipality unless the law specifically includes the transit 
  6.22  tax. 
  6.23     (e) This subdivision is consistent with the transit 
  6.24  redesign plan.  Eligible municipalities opting to levy the 
  6.25  transit tax under this subdivision shall continue to meet the 
  6.26  regional performance standards established by the council. 
  6.27     (f) Within the designated Americans with Disabilities Act 
  6.28  area, metro mobility remains the obligation of the state. 
  6.29     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  6.30  473.446, subdivision 1, is amended to read: 
  6.31     Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
  6.32  For the purposes of sections 473.405 to 473.449 and the 
  6.33  metropolitan transit system, except as otherwise provided in 
  6.34  this subdivision and section 5, the council shall levy each year 
  6.35  upon all taxable property within the metropolitan transit taxing 
  6.36  district, defined in subdivision 2, a transit tax consisting of: 
  7.1      (a) an amount which shall be used for payment of the 
  7.2   expenses of operating transit and paratransit service and to 
  7.3   provide for payment of obligations issued by the council under 
  7.4   section 473.436, subdivision 6; 
  7.5      (b) an additional amount, if any, the council determines to 
  7.6   be necessary to provide for the full and timely payment of its 
  7.7   certificates of indebtedness and other obligations outstanding 
  7.8   on July 1, 1985, to which property taxes under this section have 
  7.9   been pledged; and 
  7.10     (c) an additional amount necessary to provide full and 
  7.11  timely payment of certificates of indebtedness, bonds, including 
  7.12  refunding bonds or other obligations issued or to be issued 
  7.13  under section 473.39 by the council for purposes of acquisition 
  7.14  and betterment of property and other improvements of a capital 
  7.15  nature and to which the council has specifically pledged tax 
  7.16  levies under this clause. 
  7.17     The property tax levied by the council for general purposes 
  7.18  under clause paragraph (a) must not exceed the following amount 
  7.19  for the years specified: 
  7.20     (1) for taxes payable in 1995, the council's property tax 
  7.21  levy limitation for general transit purposes is equal to the 
  7.22  former regional transit board's property tax levy limitation for 
  7.23  general transit purposes under this subdivision, for taxes 
  7.24  payable in 1994, multiplied by an index for market valuation 
  7.25  changes equal to the total market valuation of all taxable 
  7.26  property located within the metropolitan transit taxing district 
  7.27  for the current taxes payable year divided by the total market 
  7.28  valuation of all taxable property located within the 
  7.29  metropolitan transit taxing district for the previous taxes 
  7.30  payable year; and 
  7.31     (2) for taxes payable in 1996 and subsequent years, the 
  7.32  product of (i) the council's property tax levy limitation for 
  7.33  general transit purposes for the previous year determined under 
  7.34  this subdivision multiplied, before any reductions under clause 
  7.35  (iii), by (ii) an index for market valuation changes equal to 
  7.36  the total market valuation of all taxable property located 
  8.1   within the metropolitan transit taxing district for the current 
  8.2   taxes payable year divided by the total market valuation of all 
  8.3   taxable property located within the metropolitan transit taxing 
  8.4   district for the previous taxes payable year, reduced by (iii) 
  8.5   any amount levied by a municipality under section 3. 
  8.6      For the taxes payable year 1995, the index for market 
  8.7   valuation changes shall be multiplied by an amount equal to the 
  8.8   sum of the regional transit board's property tax levy limitation 
  8.9   for the taxes payable year 1994 and $160,665.  The $160,665 
  8.10  increase shall be a permanent adjustment to the levy limit base 
  8.11  used in determining the regional transit board's property tax 
  8.12  levy limitation for general purposes for subsequent taxes 
  8.13  payable years. 
  8.14     For the purpose of determining the council's property tax 
  8.15  levy limitation for general transit purposes under this 
  8.16  subdivision, "total market valuation" means the total market 
  8.17  valuation of all taxable property within the metropolitan 
  8.18  transit taxing district without valuation adjustments for fiscal 
  8.19  disparities (chapter 473F), tax increment financing (sections 
  8.20  469.174 to 469.179), and high voltage transmission lines 
  8.21  (section 273.425). 
  8.22     The county auditor shall reduce the tax levied pursuant to 
  8.23  this subdivision section and section 473.388 on all property 
  8.24  within statutory and home rule charter cities and towns that 
  8.25  receive full-peak service and limited off-peak service by an 
  8.26  amount equal to the tax levy that would be produced by applying 
  8.27  a rate of 0.510 percent of net tax capacity on the property.  
  8.28  The county auditor shall reduce the tax levied pursuant to 
  8.29  this subdivision section and section 473.388 on all property 
  8.30  within statutory and home rule charter cities and towns that 
  8.31  receive limited peak service by an amount equal to the tax levy 
  8.32  that would be produced by applying a rate of 0.765 percent of 
  8.33  net tax capacity on the property.  The amounts so computed by 
  8.34  the county auditor shall be submitted to the commissioner of 
  8.35  revenue as part of the abstracts of tax lists required to be 
  8.36  filed with the commissioner under section 275.29.  Any prior 
  9.1   year adjustments shall also be certified in the abstracts of tax 
  9.2   lists.  The commissioner shall review the certifications to 
  9.3   determine their accuracy and may make changes in the 
  9.4   certification as necessary or return a certification to the 
  9.5   county auditor for corrections.  The commissioner shall pay to 
  9.6   the council and to the municipalities levying under section 3 
  9.7   the amounts certified by the county auditors on the dates 
  9.8   provided in section 273.1398, apportioned between the council 
  9.9   and the municipality in the same proportion as the total transit 
  9.10  levy is apportioned within the municipality.  There is annually 
  9.11  appropriated from the general fund in the state treasury to the 
  9.12  department of revenue the amounts necessary to make these 
  9.13  payments.  
  9.14     For the purposes of this subdivision, "full-peak and 
  9.15  limited off-peak service" means peak period regular route 
  9.16  service, plus weekday midday regular route service at intervals 
  9.17  longer than 60 minutes on the route with the greatest frequency; 
  9.18  and "limited peak period service" means peak period regular 
  9.19  route service only.  
  9.20     For the purposes of property taxes payable in the following 
  9.21  year, the council shall annually determine which cities and 
  9.22  towns qualify for the 0.510 percent or 0.765 percent tax 
  9.23  capacity rate reduction and shall certify this list to the 
  9.24  county auditor of the county wherein such cities and towns are 
  9.25  located on or before September 15.  No changes may be made to 
  9.26  the annual list after September 15. 
  9.27     Sec. 5.  Minnesota Statutes 1994, section 473.446, is 
  9.28  amended by adding a subdivision to read: 
  9.29     Subd. 1b.  [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLE 
  9.30  MUNICIPALITIES.] (a) The maximum the council may levy for 
  9.31  general purposes under subdivision 1, paragraph (a), upon 
  9.32  taxable property within a municipality levying taxes under 
  9.33  section 3 for replacement transit service is the transit tax 
  9.34  levied within the municipality in the previous year, multiplied 
  9.35  by the municipality's market value adjustment ratio, minus the 
  9.36  amount to be levied by the municipality under section 3 for the 
 10.1   current levy year. 
 10.2      (b) For purposes of (1) determining the amount the council 
 10.3   may levy for general purposes under subdivision 1, paragraph 
 10.4   (a), within any municipality levying taxes under section 3 for 
 10.5   replacement transit service, and (2) calculating the amount of 
 10.6   the levy to be allocated to each county, the council and the 
 10.7   county auditor shall, after 1995, deduct from the part of the 
 10.8   levy that would otherwise be allocated to the municipality the 
 10.9   amount by which that part exceeds the maximum amount of taxes 
 10.10  the council may levy within the municipality under this 
 10.11  subdivision.  After making the deduction, the council and the 
 10.12  county auditor shall reallocate to the taxable property located 
 10.13  within the metropolitan transit taxing district, other than a 
 10.14  municipality providing replacement transit service, the amount 
 10.15  by which the council's tax levy within the municipality was 
 10.16  reduced.  The council shall notify the county auditor no later 
 10.17  than October 1 of each year of the amount of the deduction for 
 10.18  each municipality providing replacement transit service located 
 10.19  in the county.  
 10.20     (c) For purposes of this subdivision and section 3: 
 10.21     (1) "municipality" means a municipality levying taxes under 
 10.22  section 3 for replacement transit service; 
 10.23     (2) "market value adjustment ratio" means the index for 
 10.24  market valuation changes described in section 473.446, as 
 10.25  applied to individual municipalities; and 
 10.26     (3) "tax revenues" has the meaning given the term in 
 10.27  section 473.388, subdivision 4. 
 10.28     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 10.29  473.446, subdivision 8, is amended to read: 
 10.30     Subd. 8.  [STATE REVIEW.] The commissioner of revenue shall 
 10.31  certify the council's levy limitation under this section to the 
 10.32  council by August 1 of the levy year.  The council must certify 
 10.33  its proposed property tax levy under this section to the 
 10.34  commissioner of revenue by September 1 of the levy year.  The 
 10.35  commissioner of revenue shall annually determine whether the 
 10.36  property tax for transit purposes certified by the council for 
 11.1   levy following the adoption of its proposed budget is within the 
 11.2   levy limitation imposed by subdivision 1 and section 5.  The 
 11.3   commissioner shall also annually determine whether the transit 
 11.4   tax imposed on all taxable property within the metropolitan 
 11.5   transit area but outside of the metropolitan transit taxing 
 11.6   district is within the levy limitation imposed by subdivision 
 11.7   1a.  The determination must be completed prior to September 10 
 11.8   of each year.  If current information regarding market valuation 
 11.9   in any county is not transmitted to the commissioner in a timely 
 11.10  manner, the commissioner may estimate the current market 
 11.11  valuation within that county for purposes of making the 
 11.12  calculations. 
 11.13     Sec. 7.  [EFFECTIVE DATE.] 
 11.14     This act is effective the day following final enactment.