SF 3052

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; modifying the local government 
  1.3             aid formula; eliminating taconite aids from the 
  1.4             computation of city formula aid in the local 
  1.5             government aid formula; increasing the appropriation 
  1.6             for local government aid; reducing the amount of motor 
  1.7             vehicle sales tax proceeds appropriated for transit; 
  1.8             authorizing a metropolitan area sales tax for transit; 
  1.9             appropriating money; amending Minnesota Statutes 2003 
  1.10            Supplement, sections 297B.09, subdivision 1; 477A.011, 
  1.11            subdivisions 34, 36; 477A.013, subdivisions 8, 9; 
  1.12            477A.03, subdivision 2a; proposing coding for new law 
  1.13            in Minnesota Statutes, chapter 473. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA. 
  1.15     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.16  297B.09, subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
  1.18  and received under this chapter must be deposited as provided in 
  1.19  this subdivision.  
  1.20     (b) From July 1, 2002, to June 30, 2003, 32 percent of the 
  1.21  money collected and received must be deposited in the highway 
  1.22  user tax distribution fund, 20.5 percent must be deposited in 
  1.23  the metropolitan area transit fund under section 16A.88, and 
  1.24  1.25 percent must be deposited in the greater Minnesota transit 
  1.25  fund under section 16A.88.  The remaining money must be 
  1.26  deposited in the general fund. 
  1.27     (c) From July 1, 2003 January 1, 2005, to June 30, 2007, 30 
  1.28  percent of the money collected and received must be deposited in 
  1.29  the highway user tax distribution fund, 21.5 12.5 percent must 
  2.1   be deposited in the metropolitan area transit fund under section 
  2.2   16A.88, 1.43 .83 percent must be deposited in the greater 
  2.3   Minnesota transit fund under section 16A.88, 0.65 percent must 
  2.4   be deposited in the county state-aid highway fund, and 0.17 
  2.5   percent must be deposited in the municipal state-aid street 
  2.6   fund.  The remaining money must be deposited in the general fund.
  2.7      (d) (c) On and after July 1, 2007, 32 percent of the money 
  2.8   collected and received must be deposited in the highway user tax 
  2.9   distribution fund, 20.5 11.5 percent must be deposited in the 
  2.10  metropolitan area transit fund under section 16A.88, and 1.25 
  2.11  .65 percent must be deposited in the greater Minnesota transit 
  2.12  fund under section 16A.88.  The remaining money must be 
  2.13  deposited in the general fund. 
  2.14     [EFFECTIVE DATE.] This section is effective January 1, 2005.
  2.15     Sec. 2.  [473.920] [METROPOLITAN AREA TRANSPORTATION 
  2.16  IMPROVEMENT.] 
  2.17     Subdivision 1.  [SALES AND USE TAX 
  2.18  AUTHORIZED.] Notwithstanding section 477A.016 or any other 
  2.19  provision of law, ordinance, or city charter, the council may 
  2.20  impose by resolution a sales and use tax of up to one-half of 
  2.21  one percent on sales in the metropolitan area for the purposes 
  2.22  specified in subdivision 3.  Except as otherwise provided in 
  2.23  this section, the provisions of section 297A.99 govern the 
  2.24  imposition, administration, collection, and enforcement of the 
  2.25  tax authorized under this subdivision. 
  2.26     Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding section 
  2.27  477A.016 or any other provision of law, ordinance, or city 
  2.28  charter, the council may impose by resolution, for the purposes 
  2.29  specified in subdivision 3, an excise tax of up to $20 per motor 
  2.30  vehicle, as defined by resolution, purchased or acquired from 
  2.31  any person engaged within the metropolitan area in the business 
  2.32  of selling motor vehicles at retail. 
  2.33     Subd. 3.  [USE OF REVENUES.] After deductions allowed by 
  2.34  law, revenues received from taxes authorized by subdivisions 1 
  2.35  and 2 must be deposited in the state treasury and is annually 
  2.36  appropriated to the council to provide operating and capital 
  3.1   assistance to metropolitan area transit to pay for acquisition 
  3.2   of buses, highway shoulder improvements for buses, and other 
  3.3   capital and operating expenses related to metropolitan area 
  3.4   transit systems. 
  3.5      Subd. 4.  [APPLICATION.] This section applies in the 
  3.6   counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
  3.7   Washington. 
  3.8      [EFFECTIVE DATE.] This section is effective for sales made 
  3.9   after December 31, 2004. 
  3.10     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  3.11  477A.011, subdivision 34, is amended to read: 
  3.12     Subd. 34.  [CITY REVENUE NEED.] (a) For a city with a 
  3.13  population equal to or greater than 2,500, "city revenue need" 
  3.14  is the sum of (1) 5.0734098 times the pre-1940 housing 
  3.15  percentage; plus (2) 19.141678 times the population decline 
  3.16  percentage; plus (3) 2504.06334 times the road accidents factor; 
  3.17  plus (4) 355.0547; minus (5) the metropolitan area factor; minus 
  3.18  (6) 49.10638 times the household size. 
  3.19     (b) For a city with a population less than 2,500, "city 
  3.20  revenue need" is the sum of (1) 2.387 times the pre-1940 housing 
  3.21  percentage; plus (2) 2.67591 times the commercial industrial 
  3.22  percentage; plus (3) 3.16042 times the population decline 
  3.23  percentage; plus (4) 1.206 times the transformed population; 
  3.24  minus (5) 62.772. 
  3.25     (c) The city revenue need cannot be less than zero. 
  3.26     (d) For calendar year 2005 and subsequent years, the city 
  3.27  revenue need for a city, as determined in paragraphs (a) to (c), 
  3.28  is multiplied by the ratio of the annual most recently available 
  3.29  first quarter implicit price deflator for government consumption 
  3.30  expenditures and gross investment for state and local 
  3.31  governments as prepared by the United States Department of 
  3.32  Commerce, for the most recently available year to the 2003 first 
  3.33  quarter 2000 implicit price deflator for state and local 
  3.34  government purchases. 
  3.35     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.36  477A.011, subdivision 36, is amended to read: 
  4.1      Subd. 36.  [CITY AID BASE.] (a) Except as otherwise 
  4.2   provided in this subdivision, "city aid base" is zero. 
  4.3      (b) The city aid base for any city with a population less 
  4.4   than 500 is increased by $40,000 for aids payable in calendar 
  4.5   year 1995 and thereafter, and the maximum amount of total aid it 
  4.6   may receive under section 477A.013, subdivision 9, paragraph 
  4.7   (c), is also increased by $40,000 for aids payable in calendar 
  4.8   year 1995 only, provided that: 
  4.9      (i) the average total tax capacity rate for taxes payable 
  4.10  in 1995 exceeds 200 percent; 
  4.11     (ii) the city portion of the tax capacity rate exceeds 100 
  4.12  percent; and 
  4.13     (iii) its city aid base is less than $60 per capita. 
  4.14     (c) The city aid base for a city is increased by $20,000 in 
  4.15  1998 and thereafter and the maximum amount of total aid it may 
  4.16  receive under section 477A.013, subdivision 9, paragraph (c), is 
  4.17  also increased by $20,000 in calendar year 1998 only, provided 
  4.18  that: 
  4.19     (i) the city has a population in 1994 of 2,500 or more; 
  4.20     (ii) the city is located in a county, outside of the 
  4.21  metropolitan area, which contains a city of the first class; 
  4.22     (iii) the city's net tax capacity used in calculating its 
  4.23  1996 aid under section 477A.013 is less than $400 per capita; 
  4.24  and 
  4.25     (iv) at least four percent of the total net tax capacity, 
  4.26  for taxes payable in 1996, of property located in the city is 
  4.27  classified as railroad property. 
  4.28     (d) The city aid base for a city is increased by $200,000 
  4.29  in 1999 and thereafter and the maximum amount of total aid it 
  4.30  may receive under section 477A.013, subdivision 9, paragraph 
  4.31  (c), is also increased by $200,000 in calendar year 1999 only, 
  4.32  provided that: 
  4.33     (i) the city was incorporated as a statutory city after 
  4.34  December 1, 1993; 
  4.35     (ii) its city aid base does not exceed $5,600; and 
  4.36     (iii) the city had a population in 1996 of 5,000 or more. 
  5.1      (e) The city aid base for a city is increased by $450,000 
  5.2   in 1999 to 2008 and the maximum amount of total aid it may 
  5.3   receive under section 477A.013, subdivision 9, paragraph (c), is 
  5.4   also increased by $450,000 in calendar year 1999 only, provided 
  5.5   that: 
  5.6      (i) the city had a population in 1996 of at least 50,000; 
  5.7      (ii) its population had increased by at least 40 percent in 
  5.8   the ten-year period ending in 1996; and 
  5.9      (iii) its city's net tax capacity for aids payable in 1998 
  5.10  is less than $700 per capita. 
  5.11     (f) Beginning in 2004, the city aid base for a city is 
  5.12  equal to the sum of its city aid base in 2003 and the amount of 
  5.13  additional aid it was certified to receive under section 477A.06 
  5.14  in 2003.  For 2004 only, the maximum amount of total aid a city 
  5.15  may receive under section 477A.013, subdivision 9, paragraph 
  5.16  (c), is also increased by the amount it was certified to receive 
  5.17  under section 477A.06 in 2003. 
  5.18     (g) The city aid base for a city is increased by $150,000 
  5.19  for aids payable in 2000 and thereafter, and the maximum amount 
  5.20  of total aid it may receive under section 477A.013, subdivision 
  5.21  9, paragraph (c), is also increased by $150,000 in calendar year 
  5.22  2000 only, provided that: 
  5.23     (1) the city has a population that is greater than 1,000 
  5.24  and less than 2,500; 
  5.25     (2) its commercial and industrial percentage for aids 
  5.26  payable in 1999 is greater than 45 percent; and 
  5.27     (3) the total market value of all commercial and industrial 
  5.28  property in the city for assessment year 1999 is at least 15 
  5.29  percent less than the total market value of all commercial and 
  5.30  industrial property in the city for assessment year 1998. 
  5.31     (h) (g) The city aid base for a city is increased by 
  5.32  $200,000 in 2000 and thereafter, and the maximum amount of total 
  5.33  aid it may receive under section 477A.013, subdivision 9, 
  5.34  paragraph (c), is also increased by $200,000 in calendar year 
  5.35  2000 only, provided that: 
  5.36     (1) the city had a population in 1997 of 2,500 or more; 
  6.1      (2) the net tax capacity of the city used in calculating 
  6.2   its 1999 aid under section 477A.013 is less than $650 per 
  6.3   capita; 
  6.4      (3) the pre-1940 housing percentage of the city used in 
  6.5   calculating 1999 aid under section 477A.013 is greater than 12 
  6.6   percent; 
  6.7      (4) the 1999 local government aid of the city under section 
  6.8   477A.013 is less than 20 percent of the amount that the formula 
  6.9   aid of the city would have been if the need increase percentage 
  6.10  was 100 percent; and 
  6.11     (5) the city aid base of the city used in calculating aid 
  6.12  under section 477A.013 is less than $7 per capita. 
  6.13     (i) (h) The city aid base for a city is increased by 
  6.14  $102,000 in 2000 and thereafter, and the maximum amount of total 
  6.15  aid it may receive under section 477A.013, subdivision 9, 
  6.16  paragraph (c), is also increased by $102,000 in calendar year 
  6.17  2000 only, provided that: 
  6.18     (1) the city has a population in 1997 of 2,000 or more; 
  6.19     (2) the net tax capacity of the city used in calculating 
  6.20  its 1999 aid under section 477A.013 is less than $455 per 
  6.21  capita; 
  6.22     (3) the net levy of the city used in calculating 1999 aid 
  6.23  under section 477A.013 is greater than $195 per capita; and 
  6.24     (4) the 1999 local government aid of the city under section 
  6.25  477A.013 is less than 38 percent of the amount that the formula 
  6.26  aid of the city would have been if the need increase percentage 
  6.27  was 100 percent. 
  6.28     (j) (i) The city aid base for a city is increased by 
  6.29  $32,000 in 2001 and thereafter, and the maximum amount of total 
  6.30  aid it may receive under section 477A.013, subdivision 9, 
  6.31  paragraph (c), is also increased by $32,000 in calendar year 
  6.32  2001 only, provided that: 
  6.33     (1) the city has a population in 1998 that is greater than 
  6.34  200 but less than 500; 
  6.35     (2) the city's revenue need used in calculating aids 
  6.36  payable in 2000 was greater than $200 per capita; 
  7.1      (3) the city net tax capacity for the city used in 
  7.2   calculating aids available in 2000 was equal to or less than 
  7.3   $200 per capita; 
  7.4      (4) the city aid base of the city used in calculating aid 
  7.5   under section 477A.013 is less than $65 per capita; and 
  7.6      (5) the city's formula aid for aids payable in 2000 was 
  7.7   greater than zero. 
  7.8      (k) (j) The city aid base for a city is increased by $7,200 
  7.9   in 2001 and thereafter, and the maximum amount of total aid it 
  7.10  may receive under section 477A.013, subdivision 9, paragraph 
  7.11  (c), is also increased by $7,200 in calendar year 2001 only, 
  7.12  provided that: 
  7.13     (1) the city had a population in 1998 that is greater than 
  7.14  200 but less than 500; 
  7.15     (2) the city's commercial industrial percentage used in 
  7.16  calculating aids payable in 2000 was less than ten percent; 
  7.17     (3) more than 25 percent of the city's population was 60 
  7.18  years old or older according to the 1990 census; 
  7.19     (4) the city aid base of the city used in calculating aid 
  7.20  under section 477A.013 is less than $15 per capita; and 
  7.21     (5) the city's formula aid for aids payable in 2000 was 
  7.22  greater than zero. 
  7.23     (l) (k) The city aid base for a city is increased by 
  7.24  $45,000 in 2001 and thereafter and by an additional $50,000 in 
  7.25  calendar years 2002 to 2011, and the maximum amount of total aid 
  7.26  it may receive under section 477A.013, subdivision 9, paragraph 
  7.27  (c), is also increased by $45,000 in calendar year 2001 only, 
  7.28  and by $50,000 in calendar year 2002 only, provided that: 
  7.29     (1) the net tax capacity of the city used in calculating 
  7.30  its 2000 aid under section 477A.013 is less than $810 per 
  7.31  capita; 
  7.32     (2) the population of the city declined more than two 
  7.33  percent between 1988 and 1998; 
  7.34     (3) the net levy of the city used in calculating 2000 aid 
  7.35  under section 477A.013 is greater than $240 per capita; and 
  7.36     (4) the city received less than $36 per capita in aid under 
  8.1   section 477A.013, subdivision 9, for aids payable in 2000. 
  8.2      (m) (l) The city aid base for a city with a population of 
  8.3   10,000 or more which is located outside of the seven-county 
  8.4   metropolitan area is increased in 2002 and thereafter, and the 
  8.5   maximum amount of total aid it may receive under section 
  8.6   477A.013, subdivision 9, paragraph (b) or (c), is also increased 
  8.7   in calendar year 2002 only, by an amount equal to the lesser of: 
  8.8      (1)(i) the total population of the city, as determined by 
  8.9   the United States Bureau of the Census, in the 2000 census, (ii) 
  8.10  minus 5,000, (iii) times 60; or 
  8.11     (2) $2,500,000. 
  8.12     (n) (m) The city aid base is increased by $50,000 in 2002 
  8.13  and thereafter, and the maximum amount of total aid it may 
  8.14  receive under section 477A.013, subdivision 9, paragraph (c), is 
  8.15  also increased by $50,000 in calendar year 2002 only, provided 
  8.16  that: 
  8.17     (1) the city is located in the seven-county metropolitan 
  8.18  area; 
  8.19     (2) its population in 2000 is between 10,000 and 20,000; 
  8.20  and 
  8.21     (3) its commercial industrial percentage, as calculated for 
  8.22  city aid payable in 2001, was greater than 25 percent. 
  8.23     (o) (n) The city aid base for a city is increased by 
  8.24  $150,000 in calendar years 2002 to 2011 and the maximum amount 
  8.25  of total aid it may receive under section 477A.013, subdivision 
  8.26  9, paragraph (c), is also increased by $150,000 in calendar year 
  8.27  2002 only, provided that: 
  8.28     (1) the city had a population of at least 3,000 but no more 
  8.29  than 4,000 in 1999; 
  8.30     (2) its home county is located within the seven-county 
  8.31  metropolitan area; 
  8.32     (3) its pre-1940 housing percentage is less than 15 
  8.33  percent; and 
  8.34     (4) its city net tax capacity per capita for taxes payable 
  8.35  in 2000 is less than $900 per capita. 
  8.36     (p) (o) The city aid base for a city is increased by 
  9.1   $200,000 beginning in calendar year 2003 and the maximum amount 
  9.2   of total aid it may receive under section 477A.013, subdivision 
  9.3   9, paragraph (c), is also increased by $200,000 in calendar year 
  9.4   2003 only, provided that the city qualified for an increase in 
  9.5   homestead and agricultural credit aid under Laws 1995, chapter 
  9.6   264, article 8, section 18. 
  9.7      (q) (p) The city aid base for a city is increased by 
  9.8   $200,000 in 2004 only and the maximum amount of total aid it may 
  9.9   receive under section 477A.013, subdivision 9, is also increased 
  9.10  by $200,000 in calendar year 2004 only, if the city is the site 
  9.11  of a nuclear dry cask storage facility. 
  9.12     (r) (q) The city aid base for a city is increased by 
  9.13  $10,000 in 2004 and thereafter and the maximum total aid it may 
  9.14  receive under section 477A.013, subdivision 9, is also increased 
  9.15  by $10,000 in calendar year 2004 only, if the city was included 
  9.16  in a federal major disaster designation issued on April 1, 1998, 
  9.17  and its pre-1940 housing stock was decreased by more than 40 
  9.18  percent between 1990 and 2000. 
  9.19     [EFFECTIVE DATE.] This section is effective for aids paid 
  9.20  in 2005 and thereafter. 
  9.21     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  9.22  477A.013, subdivision 8, is amended to read: 
  9.23     Subd. 8.  [CITY FORMULA AID.] In calendar year 2004 and 
  9.24  subsequent years, the formula aid for a city is equal to the 
  9.25  need increase percentage multiplied by the difference between 
  9.26  (1) the city's revenue need multiplied by its population, and 
  9.27  (2) the sum of the city's net tax capacity multiplied by the tax 
  9.28  effort rate, and the taconite aids under sections 298.28 and 
  9.29  298.282, multiplied by the following percentages:  
  9.30     (i) zero percent for aids payable in 2004; 
  9.31     (ii) 25 percent for aids payable in 2005; 
  9.32     (iii) 50 percent for aids payable in 2006; 
  9.33     (iv) 75 percent for aids payable in 2007; and 
  9.34     (v) 100 percent for aids payable in 2008 and thereafter.  
  9.35  No city may have a formula aid amount less than zero.  The need 
  9.36  increase percentage must be the same for all cities.  
 10.1      The applicable need increase percentage must be calculated 
 10.2   by the Department of Revenue so that the total of the aid under 
 10.3   subdivision 9 equals the total amount available for aid under 
 10.4   section 477A.03 after the subtraction under section 477A.014, 
 10.5   subdivisions 4 and 5.  
 10.6      [EFFECTIVE DATE.] This section is effective for aid payable 
 10.7   in 2004 and thereafter. 
 10.8      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 10.9   477A.013, subdivision 9, is amended to read: 
 10.10     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
 10.11  2002 and thereafter, each city shall receive an aid distribution 
 10.12  equal to the sum of (1) the city formula aid under subdivision 
 10.13  8, and (2) its city aid base. 
 10.14     (b) The aid for a city in calendar year 2004 shall not 
 10.15  exceed the amount of its aid in calendar year 2003 after the 
 10.16  reductions under Laws 2003, First Special Session chapter 21, 
 10.17  article 5.  
 10.18     (c) For aids payable in 2005 and thereafter, the total aid 
 10.19  for any city shall not exceed the sum of (1) ten percent of the 
 10.20  city's net levy for the year prior to the aid distribution plus 
 10.21  (2) its total aid in the previous year.  For aids payable in 
 10.22  2005 and thereafter, the total aid for any city with a 
 10.23  population of 2,500 or more may not decrease from its total aid 
 10.24  under this section in the previous year by an amount greater 
 10.25  than ten percent of its net levy in the year prior to the aid 
 10.26  distribution. 
 10.27     (d) For aids payable in 2004 only, the total aid for a city 
 10.28  with a population less than 2,500 may not be less than the 
 10.29  amount it was certified to receive in 2003 minus the greater of 
 10.30  (1) the reduction to this aid payment in 2003 under Laws 2003, 
 10.31  First Special Session chapter 21, article 5, or (2) five percent 
 10.32  of its 2003 aid amount.  For aids payable in 2005 and 
 10.33  thereafter, the total aid for a city with a population less than 
 10.34  2,500 must not be less than the amount it was certified to 
 10.35  receive in the previous year minus five percent of its 2003 
 10.36  certified aid amount. 
 11.1      [EFFECTIVE DATE.] This section is effective for aids 
 11.2   payable in 2005 and thereafter. 
 11.3      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
 11.4   477A.03, subdivision 2a, is amended to read: 
 11.5      Subd. 2a.  [CITIES.] For aids payable in 2004, the total 
 11.6   aids paid under section 477A.013, subdivision 9, are limited to 
 11.7   $429,000,000.  For aids payable in 2005 and thereafter, the 
 11.8   total aids paid under section 477A.013, subdivision 9, are 
 11.9   increased to $437,052,000 $497,052,000.