SF 479

as introduced - 90th Legislature (2017 - 2018) Posted on 01/31/2017 09:24am

A bill for an act
relating to taxation; property; modifying county program aid; appropriating money;
amending Minnesota Statutes 2016, sections 477A.0124, subdivision 4; 477A.03,
subdivision 2b; repealing Minnesota Statutes 2016, section 477A.0124, subdivision
5.

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

Section 1.

Minnesota Statutes 2016, section 477A.0124, subdivision 4, is amended to
read:

Subd. 4.

County tax-base equalization aid.

(a) For 2006 and subsequent years, the
money appropriated to county tax-base equalization aid each calendar year, after the payment
under paragraph (f), shall be apportioned among the counties according to each county's
tax-base equalization aid factor.

(b) A county's tax-base equalization aid factor is equal to the amount by which (i) deleted text begin $185 deleted text end new text begin
$190 new text end times the county's population, exceeds (ii) deleted text begin 9.45 deleted text end new text begin nine new text end percent of the county's net tax
capacity.

(c) In the case of a county with a population less than 10,000, the factor determined in
paragraph (b) shall be multiplied by a factor of three.

(d) In the case of a county with a population greater than or equal to 10,000, but less
than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.

(e) In the case of a county with a population greater than 500,000, the factor determined
in paragraph (b) shall be multiplied by a factor of 0.25.

(f) deleted text begin Before the money appropriated to county base equalization aid is apportioned among
the counties as provided in paragraph (a), an amount up to $73,259 is allocated annually to
Anoka County and up to $59,664 is annually allocated to Washington County for the county
to pay postretirement costs of health insurance premiums for court employees. The allocation
under this paragraph is in addition to the allocations under paragraphs (a) to (e). deleted text end new text begin Beginning
with aid payable in 2019, the amount under paragraph (b), item (i), shall be increased by
the ratio of the statewide net tax capacity per capita to the statewide net tax capacity per
capita in the 2017 assessment year, provided that in no case shall the ratio be less than one
or the ratio in the prior year, whichever is greater. The amount shall be rounded to the nearest
$10. The statewide taxable market value per capita shall be calculated using the most recent
population available for the relevant assessment year at the time of the calculation of the
aid by the commissioner under section 477A.014.
new text end

new text begin (g) For distributions in 2018 and subsequent years, the allocation to a county under
paragraphs (a) to (e) shall not be less than: (1) an amount equal to 0.27 percent of the total
appropriation available for that year under section 477A.03, subdivision 2b, paragraph (b);
or (2) 95 percent of the tax base equalization aid for the county in the prior year, whichever
is greater. If the sum of aids payable to counties under this subdivision exceeds the limit
under section 477A.03, subdivision 2b, paragraph (b), the distribution for those counties
whose aid amounts exceed their minimum aid must be proportionately reduced so that the
amount of aid distributed under this subdivision does not exceed the limit in section 477A.03,
subdivision 2b, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:

Subd. 2b.

Counties.

(a) For aids payable in deleted text begin 2014 and thereafter deleted text end new text begin 2018 through 2024 new text end , the
total aid payable under section 477A.0124, subdivision 3, is deleted text begin $100,795,000 deleted text end new text begin $111,526,935,
of which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article
4, section 6. For aids payable in 2025 and thereafter, the total aid payable under section
477A.0124, subdivision 3, is $108,526,935 new text end . Each calendar year, $500,000 of this
appropriation shall be retained by the commissioner of revenue to make reimbursements to
the commissioner of management and budget for payments made under section 611.27. The
reimbursements shall be to defray the additional costs associated with court-ordered counsel
under section 611.27. Any retained amounts not used for reimbursement in a year shall be
included in the next distribution of county need aid that is certified to the county auditors
for the purpose of property tax reduction for the next taxes payable year.

(b) For aids payable in deleted text begin 2014 deleted text end new text begin 2018 new text end and thereafter, the total aid under section 477A.0124,
subdivision 4, is deleted text begin $104,909,575 deleted text end new text begin $137,641,510 new text end . The commissioner of revenue shall transfer
to the commissioner of management and budget $207,000 annually for the cost of preparation
of local impact notes as required by section 3.987, and other local government activities.
The commissioner of revenue shall transfer to the commissioner of education $7,000 annually
for the cost of preparation of local impact notes for school districts as required by section
3.987. The commissioner of revenue shall deduct the amounts transferred under this
paragraph from the appropriation under this paragraph. The amounts transferred are
appropriated to the commissioner of management and budget and the commissioner of
education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 477A.0124, subdivision 5, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-1466

477A.0124 COUNTY PROGRAM AID.

Subd. 5.

County transition aid.

A county is eligible to receive the transition aid it received in 2007.