SF 3506

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2022 08:39am

A bill for an act
relating to education finance; modifying the state general tax; depositing state
general tax receipts in an account in the special revenue fund; appropriating money
to reduce the special education cross subsidy; amending Minnesota Statutes 2020,
section 275.025, by adding a subdivision; Minnesota Statutes 2021 Supplement,
section 275.025, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 125A.

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

Section 1.

new text begin [125A.81] STATE GENERAL LEVY PROCEEDS; APPORTIONMENT
FOR CROSS SUBSIDY REDUCTION AID.
new text end

new text begin The commissioner must apportion the amount appropriated from the state general levy
account in the special revenue fund under section 275.025, subdivision 7, paragraph (b),
for additional special education cross subsidy reduction aid. The additional special education
cross subsidy reduction aid for each school district equals the ratio of the school district's
initial special education cross subsidy in the prior fiscal year, as defined in section 125A.76,
subdivision 1, to the total initial special education cross subsidy in the prior fiscal year for
all districts. This appropriation is in addition to any other money appropriated for special
education aid. One hundred percent of the aid under this section must be paid in the current
year on a schedule to be determined by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2024 and later.
new text end

Sec. 2.

Minnesota Statutes 2021 Supplement, section 275.025, subdivision 1, is amended
to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is deleted text begin $716,990,000 deleted text end new text begin
$480,450,000 new text end for taxes payable in 2023 deleted text begin and thereafter deleted text end . new text begin For taxes payable in 2024 and
thereafter, the levy amount is increased each year by multiplying the levy amount for the
prior year by the sum of one plus the rate of increase, if any, in the implicit price deflator
for government consumption expenditures and gross investment for state and local
governments prepared by the Bureau of Economic Analysts of the United States Department
of Commerce for the 12-month period ending March 31 of the year prior to the year the
taxes are payable. new text end The state general levy for seasonal-recreational property is $41,690,000
for taxes payable in 2020 and thereafter. The tax under this section is not treated as a local
tax rate under section 469.177 and is not the levy of a governmental unit under chapters
276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year as
necessary to account for errors and tax base changes that affected a preliminary or final rate
for either of the two preceding years. Adjustments are allowed to the extent that the necessary
information is available to the commissioner at the time the rates for a year must be certified,
and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported to the commissioner under section 270C.85,
subdivision 2, clause (4), for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2023.
new text end

Sec. 3.

Minnesota Statutes 2020, section 275.025, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin State general levy account; appropriation. new text end

new text begin (a) The state general levy account
is established in the special revenue fund. Amounts received by the commissioner from the
levy under this section must be credited to the state general levy account.
new text end

new text begin (b) The amount in the account is annually appropriated to the commissioner of education
for purposes authorized under chapter 125A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2023.
new text end