1.1 	A bill for an act
1.2 	relating to education finance; increasing the equalization aid levels for school 
1.3 	funding programs;amending Minnesota Statutes 2010, sections 123B.53, 
1.4 	subdivision 5; 123B.57, subdivision 4; 124D.135, subdivision 3; 124D.20, 
1.5 	subdivision 5; 124D.22, subdivision 3; 126C.01, by adding subdivisions; 
1.6 	126C.10, subdivisions 13a, 29, 32, 35; 126C.17, subdivisions 5, 6; proposing 
1.7 	coding for new law in Minnesota Statutes, chapter 123B; repealing Minnesota 
1.8 	Statutes 2010, section 124D.20, subdivision 6.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2010, section 123B.53, subdivision 5, is amended to read:
1.11 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
1.12 	district equals the sum of the first tier equalized debt service levy and the second tier 
1.13 	equalized debt service levy.
1.14 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
1.15 	service equalization revenue times the lesser of one or the ratio of:
1.16 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
1.17 	the year before the year the levy is certified by the adjusted pupil units in the district for 
1.18 	the school year ending in the year prior to the year the levy is certified; to
1.19 	(2) ~~$3,200~~ 150 percent of the statewide adjusted net tax capacity equalizing factor.
1.20 	(c) A district's second tier equalized debt service levy equals the district's second tier 
1.21 	debt service equalization revenue times the lesser of one or the ratio of:
1.22 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
1.23 	the year before the year the levy is certified by the adjusted pupil units in the district for 
1.24 	the school year ending in the year prior to the year the levy is certified; to
1.25 	(2) ~~$8,000~~ 200 percent of the statewide adjusted net tax capacity equalizing factor.

2.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
2.2 	and later.

2.3 	Sec. 2. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
2.4 		Subdivision 1.Eligibility. All class 2a, 2b, and 2c property under section 273.13, 
2.5 	subdivision 23, except for property consisting of the house, garage, and immediately 
2.6 	surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 
2.7 	under this section.
2.8 		Subd. 2.Credit amount. For each qualifying property, the school bond agricultural 
2.9 	credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the 
2.10 	school debt tax rate determined under section 275.08, subdivision 1b.
2.11 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax 
2.12 	reductions allowed under this section within the county for each taxes payable year and 
2.13 	shall certify that amount to the commissioner of revenue as a part of the abstracts of tax 
2.14 	lists submitted under section 275.29. Any prior year adjustments shall also be certified on 
2.15 	the abstracts of tax lists. The commissioner shall review the certifications for accuracy, 
2.16 	and may make changes as are deemed necessary, or return the certification to the county 
2.17 	auditor for correction. The credit under this section must be used to reduce the school 
2.18 	district net tax capacity-based property tax as provided in section 273.1393.
2.19 		Subd. 4.Payment. The commissioner of revenue shall certify the total of the tax 
2.20 	reductions granted under this section for each taxes payable year within each school 
2.21 	district to the commissioner of education, who shall pay the reimbursement amounts to 
2.22 	each school district as provided in section 273.1392.

2.23 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and later.

2.24 	Sec. 3. Minnesota Statutes 2010, section 123B.57, subdivision 4, is amended to read:
2.25 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
2.26 	may levy an amount equal to the district's health and safety revenue as defined in 
2.27 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
2.28 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
2.29 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
2.30 	to which the levy is attributable, to ~~$2,935~~ 150 percent of the statewide adjusted net tax 
2.31 	capacity equalizing factor.

2.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
2.33 	and later.

3.1 	Sec. 4. Minnesota Statutes 2010, section 124D.135, subdivision 3, is amended to read:
3.2 		Subd. 3.Early childhood family education levy. ~~(a) By September 30 of each year,~~ 
3.3 	~~the commissioner shall establish a tax rate for~~ To obtain early childhood family education 
3.4 	revenue ~~that raises $22,135,000 in each fiscal year. If the amount of the~~ , a district may 
3.5 	levy an amount no more than the product of its early childhood family education ~~levy~~ 
3.6 	~~would exceed the early childhood family education~~ revenue~~, the early childhood family~~ 
3.7 	~~education levy must equal the early childhood family education revenue~~ for the fiscal year 
3.8 	times the lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal 
3.9 	cost pupil unit to 200 percent of the statewide adjusted net tax capacity equalizing factor. 
3.10 	A district may not certify an early childhood family education levy unless it has met the 
3.11 	annual program data reporting requirements under section 124D.13, subdivision 13.
3.12 	~~(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall~~ 
3.13 	~~establish a tax rate for early education revenue that raises $13,565,000.~~

3.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
3.15 	and later.

3.16 	Sec. 5. Minnesota Statutes 2010, section 124D.20, subdivision 5, is amended to read:
3.17 		Subd. 5.Total community education levy. To obtain total community education 
3.18 	revenue, a district may levy ~~the~~ an amount ~~raised by a maximum tax rate of .9 percent~~ 
3.19 	~~times the adjusted net tax capacity of the district. If the amount of the~~ no more than 
3.20 	the product of its total community education ~~levy would exceed the total community~~ 
3.21 	~~education~~ revenue~~, the total community education levy shall be determined according to~~ 
3.22 	~~subdivision 6~~ for the fiscal year times the lesser of one or the ratio of its adjusted net tax 
3.23 	capacity per adjusted marginal cost pupil unit to 150 percent of the statewide adjusted 
3.24 	net tax capacity equalizing factor.

3.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
3.26 	and later.

3.27 	Sec. 6. Minnesota Statutes 2010, section 124D.22, subdivision 3, is amended to read:
3.28 		Subd. 3.School-age care levy. To obtain school-age care revenue, a school district 
3.29 	may levy an amount equal to the district's school-age care revenue as defined in subdivision 
3.30 	2 multiplied by the lesser of one, or the ratio of the quotient derived by dividing the 
3.31 	adjusted net tax capacity of the district for the year before the year the levy is certified by 
3.32 	the resident pupil units in the district for the school year to which the levy is attributable, 
3.33 	to ~~$2,433~~ 150 percent of the statewide adjusted net tax capacity equalizing factor.

4.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
4.2 	and later.

4.3 	Sec. 7. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision 
4.4 	to read:
4.5 		Subd. 2a.Adjusted net tax capacity equalizing factor. The adjusted net tax 
4.6 	capacity equalizing factor equals the quotient derived by dividing the total adjusted net 
4.7 	tax capacity of all school districts in the state for the year before the year the levy is 
4.8 	certified by the total number of adjusted marginal cost pupil units in the state for the 
4.9 	current school year.

4.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and later.

4.11 	Sec. 8. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision 
4.12 	to read:
4.13 		Subd. 3a.Referendum market value equalizing factor. The referendum market 
4.14 	value equalizing factor equals the quotient derived by dividing the total referendum market 
4.15 	value of all school districts in the state for the year before the year the levy is certified by 
4.16 	the total number of resident marginal cost pupil units in the state for the current school year.

4.17 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and later.

4.18 	Sec. 9. Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to read:
4.19 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
4.20 	year 2007 and later, a district may levy an amount not more than the product of its 
4.21 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
4.22 	adjusted net tax capacity per adjusted marginal cost pupil unit to ~~the operating capital~~ 
4.23 	~~equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year~~ 
4.24 	~~2006, and $10,700 for fiscal year 2007 and later~~ 200 percent of the statewide adjusted 
4.25 	net tax capacity equalizing factor.

4.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
4.27 	and later.

4.28 	Sec. 10. Minnesota Statutes 2010, section 126C.10, subdivision 29, is amended to read:
4.29 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 and later, 
4.30 	a district may levy an amount not more than the product of its equity revenue for the 
4.31 	fiscal year times the lesser of one or the ratio of its referendum market value per resident 
5.1 	marginal cost pupil unit to ~~$476,000~~ 150 percent of the statewide referendum market 
5.2 	value equalizing factor.

5.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
5.4 	and later.

5.5 	Sec. 11. Minnesota Statutes 2010, section 126C.10, subdivision 32, is amended to read:
5.6 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 and 
5.7 	later, a district may levy an amount not more than the product of its transition revenue 
5.8 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
5.9 	resident marginal cost pupil unit to ~~$476,000~~ 150 percent of the statewide referendum 
5.10 	market value equalizing factor.

5.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
5.12 	and later.

5.13 	Sec. 12. Minnesota Statutes 2010, section 126C.10, subdivision 35, is amended to read:
5.14 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 and 
5.15 	later, the alternative teacher compensation levy for a district receiving basic alternative 
5.16 	teacher compensation aid equals the product of (1) the difference between the district's 
5.17 	alternative teacher compensation revenue and the district's basic alternative teacher 
5.18 	compensation aid times (2) the lesser of one or the ratio of the district's adjusted net tax 
5.19 	capacity per adjusted pupil unit to ~~$5,913~~ 150 percent of the statewide adjusted net tax 
5.20 	capacity equalizing factor.

5.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
5.22 	and later.

5.23 	Sec. 13. Minnesota Statutes 2010, section 126C.17, subdivision 5, is amended to read:
5.24 		Subd. 5.Referendum equalization revenue. (a) ~~For fiscal year 2003 and later,~~
5.25 	A district's referendum equalization revenue equals the ~~sum of the first tier referendum~~ 
5.26 	~~equalization revenue and the second tier referendum equalization revenue.~~
5.27 	~~(b) A district's first tier referendum equalization revenue equals the district's first~~ 
5.28 	~~tier referendum equalization allowance times the~~ district's resident marginal cost pupil 
5.29 	units for that year~~.~~
5.30 	~~(c) For fiscal year 2006, a district's first tier referendum equalization allowance~~ 
5.31 	~~equals the lesser of the district's referendum allowance under subdivision 1 or $500. For~~ 
6.1 	~~fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser~~ 
6.2 	~~of the district's referendum allowance under subdivision 1 or $600.~~
6.3 	~~For fiscal year 2008 and later, a district's first tier referendum equalization allowance~~ 
6.4 	~~equals~~ times the lesser of the district's referendum allowance under subdivision 1 or ~~$700.~~
6.5 	~~(d) A district's second tier referendum equalization revenue equals the district's~~ 
6.6 	~~second tier referendum equalization allowance times the district's resident marginal cost~~ 
6.7 	~~pupil units for that year.~~
6.8 	~~(e) For fiscal year 2006, a district's second tier referendum equalization allowance~~ 
6.9 	~~equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent~~ 
6.10 	~~of the formula allowance, minus the district's first tier referendum equalization allowance.~~ 
6.11 	~~For fiscal year 2007 and later, a district's second tier referendum equalization allowance~~ 
6.12 	~~equals the lesser of the district's referendum allowance under subdivision 1 or~~ 26 percent 
6.13 	of the formula allowance~~, minus the district's first tier referendum equalization allowance~~.
6.14 	~~(f)~~(b) Notwithstanding paragraph ~~(e)~~ (a), the ~~second tier~~ referendum ~~allowance~~
6.15 	equalization revenue for a district qualifying for secondary sparsity revenue under 
6.16 	section 126C.10, subdivision 7, or elementary sparsity revenue under section 126C.10, 
6.17 	subdivision 8, equals the district's resident marginal cost pupil units for that year times 
6.18 	its referendum allowance under subdivision 1 ~~minus the district's first tier referendum~~ 
6.19 	~~equalization allowance~~.

6.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
6.21 	and later.

6.22 	Sec. 14. Minnesota Statutes 2010, section 126C.17, subdivision 6, is amended to read:
6.23 		Subd. 6.Referendum equalization levy. ~~(a) For fiscal year 2003 and later,~~
6.24 	A district's referendum equalization levy equals ~~the sum of the first tier referendum~~ 
6.25 	~~equalization levy and the second tier referendum equalization levy.~~
6.26 	~~(b) A district's first tier referendum equalization levy equals~~ the district's ~~first tier~~
6.27 	referendum equalization revenue times the lesser of one or the ratio of the district's 
6.28 	referendum market value per resident marginal cost pupil unit to ~~$476,000~~ 150 percent of 
6.29 	the statewide referendum market value equalizing factor.
6.30 	~~(c) A district's second tier referendum equalization levy equals the district's second~~ 
6.31 	~~tier referendum equalization revenue times the lesser of one or the ratio of the district's~~ 
6.32 	~~referendum market value per resident marginal cost pupil unit to $270,000.~~

6.33 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
6.34 	and later.

7.1 	Sec. 15.  REPEALER.
 7.2 	Minnesota Statutes 2010, section 124D.20, subdivision 6, is repealed.

7.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
7.4 	and later.