SF 2803

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing creation of a 
  1.3             housing replacement district in areas subject to 
  1.4             airport noise impacts; providing for delayed valuation 
  1.5             of improvements to homesteads in those areas; 
  1.6             providing income tax benefits to certain residents of 
  1.7             those areas; amending Laws 1995, chapter 255, article 
  1.8             3, section 2, subdivisions 1 and 4. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Laws 1995, chapter 255, article 3, section 2, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [URBAN REVITALIZATION AND STABILIZATION 
  1.13  ZONES.] (a) By September 1, 1995, the metropolitan council shall 
  1.14  designate one or more urban revitalization and stabilization 
  1.15  zones in the metropolitan area, as defined in section 473.121, 
  1.16  subdivision 2.  The designated zones must contain no more than 
  1.17  1,000 single family homes in total.  In designating urban 
  1.18  revitalization and stabilization zones, the council shall choose 
  1.19  areas that are in transition toward blight and poverty.  The 
  1.20  council shall use indicators that evidence increasing 
  1.21  neighborhood distress such as declining residential property 
  1.22  values, declining resident incomes, declining rates of 
  1.23  owner-occupancy, and other indicators of blight and poverty in 
  1.24  determining which areas are to be urban revitalization and 
  1.25  stabilization zones. 
  1.26     (b) An urban revitalization and stabilization zone is 
  1.27  created in the geographic area composed entirely of parcels that 
  2.1   are in whole or in part located within the 1996 65Ldn contour 
  2.2   surrounding the Minneapolis-St. Paul International Airport, or 
  2.3   within one mile of the boundaries of the 1996 65Ldn contour.  
  2.4   For residents of the zone created under this paragraph, 
  2.5   eligibility for the program as provided in subdivision 2 is 
  2.6   limited to persons buying and occupying a residence in the zone 
  2.7   after June 1, 1996. 
  2.8      Sec. 2.  Laws 1995, chapter 255, article 3, section 2, 
  2.9   subdivision 4, is amended to read: 
  2.10     Subd. 4.  [EXPIRATION.] Initial applications for the urban 
  2.11  homesteading program in the zones designated under subdivision 
  2.12  1, paragraph (a), shall not be accepted after July 1, 1997. 
  2.13     Sec. 3.  [AIRPORT NOISE IMPACT AREAS; HOUSING REPLACEMENT 
  2.14  DISTRICTS; DEFINITIONS.] 
  2.15     Subdivision 1.  [AIRPORT NOISE IMPACT AREA.] "Airport noise 
  2.16  impact area" means a geographic area composed entirely of 
  2.17  parcels that are in whole or in part located within the 1996 
  2.18  60Ldn contour surrounding the Minneapolis-St. Paul International 
  2.19  Airport, or within one mile of the boundaries of the 1996 60Ldn 
  2.20  contour. 
  2.21     Subd. 2.  [AUTHORITY.] For each city that contains an 
  2.22  airport noise impact area, "authority" is the authority as 
  2.23  defined in Minnesota Statutes, section 469.174, subdivision 2, 
  2.24  that is designated by the governing body of the city to be the 
  2.25  authority for purposes of sections 3 to 6. 
  2.26     Subd. 3.  [CAPTURED NET TAX CAPACITY.] "Captured net tax 
  2.27  capacity" means the amount by which the current net tax capacity 
  2.28  in a housing replacement district exceeds the original net tax 
  2.29  capacity, including the value of property normally taxable as 
  2.30  personal property by reason of its location on or over property 
  2.31  owned by a tax-exempt entity.  
  2.32     Subd. 4.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
  2.33  capacity" means the net tax capacity of all taxable real 
  2.34  property within a housing replacement district as certified by 
  2.35  the commissioner of revenue for the previous assessment year 
  2.36  less the net tax capacity attributable to existing improvements, 
  3.1   provided that the request by the authority for certification of 
  3.2   a new housing replacement district has been made to the county 
  3.3   auditor by June 30.  The original net tax capacity of housing 
  3.4   replacement districts for which requests are filed after June 30 
  3.5   has an original net tax capacity based on the current assessment 
  3.6   year.  In any case, the original net tax capacity must be 
  3.7   determined together with subsequent adjustments as set forth in 
  3.8   Minnesota Statutes, section 469.177, subdivision 1, paragraph 
  3.9   (c).  In determining the original net tax capacity, the net tax 
  3.10  capacity of real property exempt from taxation at the time of 
  3.11  the request shall be zero, except for real property which is tax 
  3.12  exempt by reason of public ownership by the requesting authority 
  3.13  and which has been publicly owned for less than one year prior 
  3.14  to the date of the request for certification, in which event the 
  3.15  net tax capacity of the property shall be the net tax capacity 
  3.16  as most recently determined by the commissioner of revenue. 
  3.17     Subd. 5.  [PARCEL.] "Parcel" means a tract or plat of land 
  3.18  established prior to the certification of the housing 
  3.19  replacement district as a single unit for purposes of assessment.
  3.20     Sec. 4.  [ESTABLISHMENT OF HOUSING REPLACEMENT DISTRICTS.] 
  3.21     Subdivision 1.  [CREATION OF PROJECTS.] (a) An authority 
  3.22  may create a housing replacement project under sections 3 to 6, 
  3.23  as provided in this section. 
  3.24     (b) Parcels included in a district must be located in an 
  3.25  airport noise impact area, and must be either (1) vacant sites, 
  3.26  (2) parcels containing vacant houses, or (3) parcels containing 
  3.27  buildings that are structurally substandard, as defined in 
  3.28  Minnesota Statutes, section 469.174, subdivision 10.  
  3.29     (c) The city in which the authority is located must pay at 
  3.30  least 25 percent of the project costs from its general fund, a 
  3.31  property tax levy, or other unrestricted money, not including 
  3.32  tax increments. 
  3.33     (d) The housing replacement district plan must have as its 
  3.34  sole object the acquisition of parcels for the purpose of 
  3.35  preparing the site to be sold for market rate housing or for 
  3.36  commercial purposes consistent with the cities' plan for that 
  4.1   area.  As used in this section, "market rate housing" means 
  4.2   housing that has a market value that does not exceed 150 percent 
  4.3   of the average market value of single-family housing in that 
  4.4   municipality. 
  4.5      Subd. 2.  [HOUSING REPLACEMENT DISTRICT PLAN.] To establish 
  4.6   a housing replacement district under sections 3 to 6, an 
  4.7   authority shall adopt a housing replacement district plan which 
  4.8   contains: 
  4.9      (1) a statement of the objectives and a description of the 
  4.10  housing replacement projects proposed by the authority for the 
  4.11  housing replacement district; 
  4.12     (2) a statement of the housing replacement district plan, 
  4.13  demonstrating the coordination of that plan with the city's 
  4.14  comprehensive plan; 
  4.15     (3) estimates of the following: 
  4.16     (i) cost of the program, including administrative expenses; 
  4.17     (ii) sources of revenue to finance or otherwise pay public 
  4.18  costs; 
  4.19     (iii) the most recent net tax capacity of taxable real 
  4.20  property within the housing replacement district; and 
  4.21     (iv) the estimated captured net tax capacity of the housing 
  4.22  replacement district at completion; 
  4.23     (4) statements of the authority's alternate estimates of 
  4.24  the impact of the housing replacement district on the net tax 
  4.25  capacities of all taxing jurisdictions in which the housing 
  4.26  replacement district is located in whole or in part.  For 
  4.27  purposes of one statement, the authority shall assume that the 
  4.28  estimated captured net tax capacity would be available to the 
  4.29  taxing jurisdictions without creation of the housing replacement 
  4.30  district, and for purposes of the second statement, the 
  4.31  authority shall assume that none of the estimated captured net 
  4.32  tax capacity would be available to the taxing jurisdictions 
  4.33  without creation of the housing replacement district; and 
  4.34     (5) identification of all parcels to be included in the 
  4.35  district. 
  4.36     Subd. 3.  [PROCEDURE.] The provisions of Minnesota 
  5.1   Statutes, section 469.175, subdivisions 3, 4, 5, and 6, apply to 
  5.2   the establishment and operation of the housing replacement 
  5.3   districts created under sections 3 to 6, except as follows: 
  5.4      (1) creation of a district within a municipality is subject 
  5.5   to the approval of the metropolitan council in addition to other 
  5.6   approvals required by law; and 
  5.7      (2) the determination specified in Minnesota Statutes, 
  5.8   section 469.175, subdivision 3, clause (1), is not required. 
  5.9      Sec. 5.  [LIMITATIONS.] 
  5.10     Subdivision 1.  [DURATION LIMITS.] No tax increment may be 
  5.11  paid to the authority on each parcel in a housing replacement 
  5.12  district after 15 years from date of receipt by the county of 
  5.13  the first tax increment from that parcel. 
  5.14     Subd. 2.  [LIMITATION ON USE OF TAX INCREMENTS.] All 
  5.15  revenues derived from tax increments must be used in accordance 
  5.16  with the housing replacement district plan.  The revenues must 
  5.17  be used solely to pay the costs of site acquisition, relocation, 
  5.18  demolition of existing structures, site preparation, and 
  5.19  pollution abatement on parcels identified in the housing 
  5.20  replacement district plan, as well as public improvements and 
  5.21  administrative costs directly related to those parcels. 
  5.22     Sec. 6.  [APPLICATION OF OTHER LAWS.] 
  5.23     Subdivision 1.  [COMPUTATION OF TAX INCREMENT.] The 
  5.24  provisions of Minnesota Statutes, section 469.177, subdivisions 
  5.25  1a, and 5 to 10, apply to the computation of tax increment for 
  5.26  the housing replacement districts created under sections 3 to 6. 
  5.27     Subd. 2.  [OTHER PROVISIONS.] References in Minnesota 
  5.28  Statutes to tax increment financing districts created and tax 
  5.29  increments generated under Minnesota Statutes, sections 469.174 
  5.30  to 469.179, other than references in Minnesota Statutes, section 
  5.31  273.1399, include housing replacement districts and tax 
  5.32  increments subject to sections 3 to 6, provided that Minnesota 
  5.33  Statutes, sections 469.174 to 469.179, apply only to the extent 
  5.34  specified in sections 1 to 4. 
  5.35     Subd. 3.  [MINNEAPOLIS SPECIAL LAW.] Laws 1980, chapter 
  5.36  595, section 2, subdivision 2, does not apply to a district 
  6.1   created under sections 3 to 6. 
  6.2      Sec. 7.  [VALUATION EXCLUSION IN AIRPORT NOISE IMPACT 
  6.3   AREAS.] 
  6.4      As it applies to homestead property located within or no 
  6.5   more than one mile distant from the boundary of the 1996 65Ldn 
  6.6   noise contour, the provisions of Minnesota Statutes, section 
  6.7   273.11, subdivision 16, shall be modified so that the 35-year 
  6.8   requirement for qualifying for the partial valuation exclusion 
  6.9   in that provision is reduced to 15 years, and the 50-year 
  6.10  requirement for the full valuation exclusion is reduced to 35 
  6.11  years. 
  6.12     Sec. 8.  [EFFECTIVE DATE.] 
  6.13     Sections 1 and 2 are effective for taxable years beginning 
  6.14  after December 31, 1995.  Sections 3 to 6 are effective the day 
  6.15  following final enactment.  Section 7 is effective for 
  6.16  improvements made after January 2, 1996.