HF 680

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2011 10:23am

A bill for an act
relating to regional rail authorities; eliminating the power to impose property
taxes and other property tax funding of authorities; amending Minnesota Statutes
2010, sections 398A.04, subdivision 8; 398A.06, subdivision 2; 398A.07,
subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to
read:

Subd. 8.

new text begin Property new text end taxation new text begin prohibited new text end .

deleted text begin Before deciding to exercise the power
to tax, the authority shall give six weeks' published notice in all municipalities in the
region. If a number of voters in the region equal to five percent of those who voted for
candidates for governor at the last gubernatorial election present a petition within nine
weeks of the first published notice to the secretary of state requesting that the matter be
submitted to popular vote, it shall be submitted at the next general election. The question
prepared shall be:
deleted text end

deleted text begin "Shall the regional rail authority have the power to impose a property tax?
deleted text end

	deleted text begin Yes . deleted text end
	deleted text begin No . " deleted text end

deleted text begin If a majority of those voting on the question approve or if no petition is presented
within the prescribed time the authority may levy a tax at any annual rate not exceeding
0.04835 percent of market value of all taxable property situated within the municipality
or municipalities named in its organization resolution. Its recording officer shall file,
on or before September 15, in the office of the county auditor of each county in which
territory under the jurisdiction of the authority is located a certified copy of the board
of commissioners' resolution levying the tax, and each county auditor shall assess and
extend upon the tax rolls of each municipality named in the organization resolution the
portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
taxable property in that municipality bears to the net tax capacity of taxable property in
all municipalities named in the organization resolution. Collections of the tax shall be
remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
the amount levied for light rail transit purposes under this subdivision shall not exceed 75
percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
deleted text end

new text begin (a) An authority must not levy property taxes, except to the extent allowed by
paragraph (b).
new text end

new text begin (b) The authority may levy property taxes only to the extent the following conditions
are satisfied:
new text end

new text begin (1) the levy is required under the terms of general obligations bonds, issued by the
authority prior to April 1, 2011, to pay the bonds; and
new text end

new text begin (2) the levy is reduced by any money available to the authority from other sources to
pay the bonds, in whole or part.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 398A.06, subdivision 2, is amended to read:

Subd. 2.

Loans and donations.

new text begin (a) new text end The municipality may lend or donate money to
the authority and may levy taxes, appropriate money, and issue bonds for that purpose
in the manner and within the limitations prescribed by law, including but not limited
to chapter 475.

new text begin (b) Notwithstanding paragraph (a), a municipality may not levy property taxes to
make loans or donations under this section and may only make loans and donations that
the municipality can document derive from sources other than property taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for loans and donations made after
the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:

Subd. 2.

Security.

new text begin (a) new text end Bonds may be made payable exclusively from the revenues
from one or more projects, or from one or more revenue producing contracts, or from
the authority's revenues generally, including but not limited to specified taxes which
the authority may levy or which a particular municipality may agree to levy for a
specified purpose, and may be additionally secured by a pledge of any grant, subsidy,
or contribution from any public agency, including but not limited to a participating
municipality, or any income or revenues from any source. They may be secured by a
mortgage or deed of trust of the whole or any part of the property of the authority. They
shall be payable solely from the revenues, funds, and property pledged or mortgaged for
their payment. No commissioner, officer, employee, agent, or trustee of the authority shall
be liable personally on its bonds or be subject to any personal liability or accountability
by reason of their issuance. Neither the state nor a county or other municipality except
the authority may pledge its faith and credit or taxing power or shall be obligated in any
manner for the payment of the bonds or interest on them, except as specifically provided
by agreement under section 398A.06; but nothing herein shall affect the obligation of the
state or municipality to perform any contract made by it with the authority, and when the
authority's rights under a contract with the state or a municipality are pledged by the
authority for the security of its bonds, the holders or a bond trustee may enforce the rights
as a third-party beneficiary. All bonds shall be negotiable within the meaning and for the
purposes of the Uniform Commercial Code, subject only to any registration requirement.

new text begin (b) The provisions of section 398A.04, subdivision 8, as amended by this act, apply
to bonds issued under this section after April 1, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2011.
new text end