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HF 984

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/08/2015 07:58am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 02/16/2015
1st Engrossment Posted on 04/07/2015

Current Version - 1st Engrossment

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A bill for an act
relating to property taxation; phasing out the state general levy over six years;
amending Minnesota Statutes 2014, section 275.025, subdivision 1.


Section 1.

Minnesota Statutes 2014, 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 deleted text beginbase amountdeleted text end is deleted text begin$592,000,000deleted text endnew text begin $768,900,000new text end for
taxes payable in deleted text begin2002. For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base 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
deleted text endnew text begin2016, $683,500,000 for taxes payable in 2017, $512,600,000 for taxes payable in 2018,
$341,700,000 for taxes payable in 2019, $170,900,000 for taxes payable in 2020, and
$0 for taxes payable in 2021 and thereafter
new text end. 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 on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 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 2016.
new text end