Minnesota Legislature
SF 3971
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/29/2022 10:21am
Current Version - as introduced
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A bill for an act
relating to taxation; property; modifying the calculation of local government aid;
increasing aid under the Mahnomen property tax reimbursement program; amending
Minnesota Statutes 2020, sections 477A.011, subdivision 34, by adding
subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 8, 9; 477A.03,
subdivision 2a; Laws 2006, chapter 259, article 11, section 3, as amended;
proposing coding for new law in Minnesota Statutes, chapter 477A; repealing
Minnesota Statutes 2020, sections 477A.011, subdivisions 30a, 38, 42, 45;
477A.013, subdivision 13.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 3b. new text end
new text begin Population age 65 and over. new text end
new text begin
"Population age 65 and over" means the
population age 65 and over established as of July 15 in an aid calculation year by the most
recent federal census, by a special census conducted under contract with the United States
Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a
population estimate of the state demographer made pursuant to section 4A.02, whichever
is the most recent as to the stated date of the count or estimate for the preceding calendar
year and which has been certified to the commissioner of revenue on or before July 15 of
the aid calculation year. A revision to an estimate or count is effective for these purposes
only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical
errors in the certification or use of estimates and counts established as of July 15 in the aid
calculation year are subject to correction within the time periods allowed under section
477A.014.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2020, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 3c. new text end
new text begin Transformed population. new text end
new text begin
"Transformed population" means the logarithm to
the base 10 of the population.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2020, section 477A.011, subdivision 34, is amended to read:
Subd. 34.
City revenue need.
(a) For a city with a population equal to or greater than
10,000, "city revenue need" is 1.15 times the sum of (1) deleted text begin 4.59deleted text end new text begin 8.559new text end times the pre-1940
housing percentage; plus (2) deleted text begin 0.622 times the percent of housing built between 1940 and
1970deleted text end new text begin 7.629 times the city age indexnew text end ; plus (3) deleted text begin 169.415 times the jobs per capitadeleted text end new text begin 5.461 times
the commercial industrial utility percentagenew text end ; plus (4) deleted text begin the sparsity adjustmentdeleted text end new text begin 8.481 times
peak population declinenew text end ; plus (5) deleted text begin 307.664deleted text end new text begin 297.789new text end .
(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) deleted text begin 572.62deleted text end new text begin 502.094new text end ; plus (2) deleted text begin 5.026deleted text end new text begin 4.285new text end times the
pre-1940 housing percentage; deleted text begin minusdeleted text end new text begin plusnew text end (3) deleted text begin 53.768 times household sizedeleted text end new text begin 6.699 times the
commercial industrial utility percentagenew text end ; plus (4) deleted text begin 14.022deleted text end new text begin 17.645new text end times peak population
declinedeleted text begin ; plus (5) the sparsity adjustmentdeleted text end .
(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 410deleted text end new text begin 79.351new text end ; plus (2) deleted text begin 0.367deleted text end new text begin 246.428new text end times the city's new text begin transformed new text end population deleted text begin over 100; plus
(3) the sparsity adjustment. The city revenue need for a city under this paragraph shall not
exceed 630 plus the city's sparsity adjustmentdeleted text end .
(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) deleted text begin 630deleted text end new text begin the city's revenue need calculated under the formula in paragraph (c)new text end times
the difference between one and the transition factor. For a city with a population of at least
10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times
the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated
under the formula in paragraph (b) times the difference between one and the transition
factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent
times the amount that the city's population exceeds the minimum threshold. For purposes
of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount
that the city's population exceeds the minimum threshold.
(e) The city revenue need cannot be less than zero.
(f) For calendar year deleted text begin 2015deleted text end new text begin 2023new text end and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
deflator for government consumption expenditures and gross investment for state and local
governments as prepared by the United States Department of Commerce, for the most
recently available year to the deleted text begin 2013deleted text end new text begin 2020new text end implicit price deflator for state and local government
purchases.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2020, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 46. new text end
new text begin City age index. new text end
new text begin
"City age index" means 100 times the ratio of (1) the population
age 65 and over within the city, to (2) the population of the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2020, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 47. new text end
new text begin Commercial industrial utility percentage. new text end
new text begin
The "commercial industrial utility
percentage" for a city is 100 times the ratio of (1) the sum of the estimated market values
of all real and personal property in the city classified as class 3 under section 273.13,
subdivision 24, to (2) the total market value of all taxable real and personal property in the
city. The market values are the amounts computed before any adjustments for fiscal
disparities under section 276A.06 or 473F.08. The market values used for this subdivision
are not equalized.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2020, section 477A.0124, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For the purposes of this section, the following terms have the
meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county age
index.
(d) "County age index" means the percentage of the population age 65 and over within
the county divided by the percentage of the population age 65 and over within the state,
except that the age index for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population age 65 and over" deleted text begin means the population age 65 and over established as
of July 15 in an aid calculation year by the most recent federal census, by a special census
conducted under contract with the United States Bureau of the Census, by a population
estimate made by the Metropolitan Council, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
date of the count or estimate for the preceding calendar year and which has been certified
to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
to an estimate or count is effective for these purposes only if certified to the commissioner
on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
estimates and counts established as of July 15 in the aid calculation year are subject to
correction within the time periods allowed under section 477A.014deleted text end new text begin has the meaning given
in section 477A.011, subdivision 3bnew text end .
(f) "Part I crimes" means the three-year average annual number of Part I crimes reported
for each county by the Department of Public Safety for the most recent years available. By
July 1 of each year, the commissioner of public safety shall certify to the commissioner of
revenue the number of Part I crimes reported for each county for the three most recent
calendar years available.
(g) "Households receiving Supplemental Nutrition Assistance Program (SNAP) benefits"
means the average monthly number of households receiving SNAP benefits for the three
most recent years for which data is available. By July 1 of each year, the commissioner of
human services must certify to the commissioner of revenue the average monthly number
of households in the state and in each county that receive SNAP benefits, for the three most
recent calendar years available.
(h) "County net tax capacity" means the county's adjusted net tax capacity under section
273.1325.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2020, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid.
(a) For aids payable in deleted text begin 2018deleted text end new text begin 2023new text end and thereafter, the formula
aid for a city is equal to the product of (1) the difference between its unmet need and its
certified aid in the previous year deleted text begin and before any aid adjustment under subdivision 13deleted text end , and
(2) the aid gap percentage.
(b) The applicable aid gap percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision 9 equals the total amount available for aid under
section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph
(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be
the most recently available data as of January 1 in the year in which the aid is calculated.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2020, section 477A.013, subdivision 9, is amended to read:
Subd. 9.
City aid distribution.
(a) In calendar year deleted text begin 2018deleted text end new text begin 2023new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13deleted text end for the previous year is less
than its current unmet need, the city shall receive an aid distribution equal to the sum of (1)
its certified aid in the previous year deleted text begin before any aid adjustment under subdivision 13deleted text end , new text begin and
new text end (2) the city formula aid under subdivision 8deleted text begin , and (3) its aid adjustment under subdivision
13deleted text end .
(b) deleted text begin For aids payable in 2020 only, no city's aid amount before any adjustment under
subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment
under subdivision 13 for that year.deleted text end For aids payable in deleted text begin 2020deleted text end new text begin 2023new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13deleted text end for the previous year is equal
to or greater than its current unmet need, the total aid for a city is equal to the greater of (1)
its unmet need deleted text begin plus any aid adjustment under subdivision 13deleted text end , or (2) the amount it was
certified to receive in the previous year minus the deleted text begin sum of (i) any adjustment under subdivision
13 that was paid in the previous year but has expired, and (ii) thedeleted text end lesser of new text begin (i) new text end $10 multiplied
by its population, or new text begin (ii) new text end five percent of its net levy in the year prior to the aid distribution.
No city may have a total aid amount less than $0.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2020, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
Cities.
deleted text begin For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid
paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the
total aid paid under section 477A.013, subdivision 9, is $560,398,012.deleted text end For aids payable in
2021 and deleted text begin thereafterdeleted text end new text begin 2022new text end , the total aid payable under section 477A.013, subdivision 9, is
$564,398,012.new text begin For aids payable in 2023 and thereafter, the total aid payable under section
477A.013, subdivision 9, is $592,617,913.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 10.
new text begin
[477A.31] MAHNOMEN PROPERTY TAX REIMBURSEMENT AID.
new text end
new text begin Subdivision 1. new text end
new text begin Aid appropriation. new text end
new text begin
(a) The commissioner of revenue shall make
reimbursement aid payments to compensate for the loss of property tax revenue related to
the trust conversion application of the Shooting Star Casino. The commissioner shall pay
the county of Mahnomen, $900,000; the city of Mahnomen, $320,000; and Independent
School District No. 432, Mahnomen, $140,000.
new text end
new text begin
(b) The payments shall be made annually on July 20.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay reimbursement aid under this
section is annually appropriated from the general fund to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 11.
Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to
read:
Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
PROPERTY TAX REIMBURSEMENT.
Subdivision 1.
Aid appropriation.
new text begin (a) new text end $1,200,000 is appropriated annually from the
general fund to the commissioner of revenue to be used to make payments to compensate
for the loss of property tax revenue related to the trust conversion application of the Shooting
Star Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of
Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000.
The payments shall be made on July 20, of 2013 and each subsequent year.
new text begin
(b) This section expires after aids payable year 2022.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
Sec. 12. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2020, sections 477A.011, subdivisions 30a, 38, 42, and 45; and
477A.013, subdivision 13,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2023
and thereafter.
new text end
APPENDIX
Repealed Minnesota Statutes: 22-06681
477A.011 DEFINITIONS.
Subd. 30a.
Percent of housing built between 1940 and 1970.
"Percent of housing built between 1940 and 1970" is equal to 100 times the most recent count by the United States Bureau of the Census of all housing units in the city built after 1939 but before 1970, divided by the total number of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census.
Subd. 38.
Household size.
"Household size" means the average number of persons per household in the jurisdiction as most recently estimated and reported by the state demographer and Metropolitan Council as of July 15 of the aid calculation year. A revision to an estimate or enumeration is effective for these purposes only if it is certified to the commissioner on or before July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid calculation year are subject to correction within the time periods allowed under section 477A.014.
Subd. 42.
Jobs per capita in the city.
"Jobs per capita in the city" means (1) the average annual number of employees in the city based on the data from the Quarterly Census of Employment and Wages, as reported by the Department of Employment and Economic Development, for the most recent calendar year available November 1 of every odd-numbered year, divided by (2) the city's population for the same calendar year as the employment data. The commissioner of the Department of Employment and Economic Development shall certify to the city the average annual number of employees for each city by January 1 of every even-numbered year beginning with January 1, 2014. A city may challenge an estimate under this paragraph by filing its specific objection, including the names of employers that it feels may have misreported data, in writing with the commissioner by December 1 of every odd-numbered year. The commissioner shall make every reasonable effort to address the specific objection and adjust the data as necessary. The commissioner shall certify the estimates of the annual employment to the commissioner of revenue by January 1 of all even-numbered years, including any estimates still under objection.
Subd. 45.
Sparsity adjustment.
For a city with a population of 10,000 or more, the sparsity adjustment is 100 for any city with an average population density less than 150 per square mile, according to the most recent federal census. For a city with a population less than 10,000, the sparsity adjustment is 200 for any city with an average population density less than 30 per square mile, according to the most recent federal census. The sparsity adjustment is zero for all other cities.
477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.
Subd. 13.
Certified aid adjustments.
(a) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 2014 through 2018.
(b) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to $160,000 for aids payable in 2014 and thereafter.
(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased by an amount equal to $1,000,000 for aids payable in 2014 only.