SF 51

as introduced - 90th Legislature (2017 - 2018) Posted on 01/10/2017 08:55am

A bill for an act
relating to taxation; property; modifying the state general levy base; providing
market value exclusions; amending Minnesota Statutes 2016, section 275.025,
subdivisions 1, 4.

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

Section 1.

Minnesota Statutes 2016, 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 base amount deleted text begin is $592,000,000 for taxes payable in
2002. 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 end new text begin for taxes payable in 2018 and
thereafter is $856,842,000. 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 for taxes payable in 2018 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:

Subd. 4.

Apportionment and levy of state general tax.

Ninety-five percent of the state
general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and five percent of the state general tax must be levied by applying a uniform rate
to all seasonal residential recreational tax capacity. deleted text begin On or before October 1 each year, the
commissioner of revenue shall certify the preliminary state general levy rates to each county
auditor that must be used to prepare the notices of proposed property taxes for taxes payable
in the following year. By January 1 of each year, the commissioner shall certify the final
state general levy rate to each county auditor that shall be used in spreading taxes.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin STATE GENERAL TAX; MARKET VALUE EXCLUSION FOR
COMMERCIAL-INDUSTRIAL PROPERTY.
new text end

new text begin For taxes payable in 2018 only, commercial-industrial tax capacity under Minnesota
Statutes, section 275.025, subdivision 2, excludes the first $500,000 of commercial-industrial
property value.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin STATE GENERAL TAX; MARKET VALUE EXCLUSION FOR SEASONAL
RESIDENTIAL RECREATIONAL PROPERTY.
new text end

new text begin For taxes payable in 2018 only, seasonal residential recreational tax capacity under
Minnesota Statutes, section 275.025, subdivision 3, excludes the first $50,000 of seasonal
residential recreational property value.
new text end

new text begin EFFECTIVE DATE. new text end

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