Minnesota Legislature
SF 3403
as introduced - 89th Legislature (2015 - 2016) Posted on 04/01/2016 09:26am
Current Version - as introduced
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A bill for an act
relating to taxation; minerals; modifying distribution of the taconite production
tax; amending Minnesota Statutes 2014, sections 298.225, subdivision 1; 298.28,
subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 298.225, subdivision 1, is amended to read:
Subdivision 1.
Guaranteed distribution.
(a) The distribution of the taconite
production tax as provided in section 298.28, subdivisions 3 to 5, 6, paragraph (b), 7, and
8, shall equal the lesser of the following amounts:
(1) the amount distributed pursuant to this section and section 298.28, with respect
to 1983 production if the production for the year prior to the distribution year is no less
than 42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the
amount of the distributions shall be reduced proportionately at the rate of two percent
for each 1,000,000 tons, or part of 1,000,000 tons by which the production is less than
42,000,000 tons; or
(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4,
paragraphs (b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed
pursuant to this section and section 298.28, with respect to 1983 production;
(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs
(b) and (d), 75 percent of the amount distributed pursuant to this section and section
298.28, with respect to 1983 production deleted text begin provided that the aid guarantee for distributions
under section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per
taxable ton for production years 2014 and thereafterdeleted text end .
(b) The distribution of the taconite production tax as provided in section 298.28,
subdivision 2, shall equal the following amount:
(1) if the production for the year prior to the distribution year is at least 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with
respect to 1999 production; or
(2) if the production for the year prior to the distribution year is less than 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with distributions in 2016
and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:
Subd. 5.
Counties.
(a) deleted text begin 21.05 cents per taxable ton for distributions in 2015 through
2023, anddeleted text end 26.05 cents per taxable ton deleted text begin for distributions beginning in 2024,deleted text end is allocated
to counties to be distributed, based upon certification by the commissioner of revenue,
under paragraphs (b) to (d).
(b) deleted text begin 10.525deleted text end new text begin 15.525new text end cents per taxable ton shall be distributed to the county in which
the taconite is mined or quarried or in which the concentrate is produced, less any
amount which is to be distributed pursuant to paragraph (c). The apportionment formula
prescribed in subdivision 2 is the basis for the distribution.
(c) If an electric power plant owned by and providing the primary source of power for
a taxpayer mining and concentrating taconite is located in a county other than the county
in which the mining and the concentrating processes are conducted, one cent per taxable
ton of the tax distributed to the counties pursuant to paragraph (b) and imposed on and
collected from such taxpayer shall be paid to the county in which the power plant is located.
(d) 10.525 cents per taxable ton deleted text begin for distributions in 2015 through 2023, and 15.525
cents per taxable ton for distributions beginning in 2024,deleted text end shall be paid to the county from
which the taconite was mined, quarried or concentrated to be deposited in the county road
and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of
those processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with distributions in 2016
and thereafter.
new text end