1.1                          A bill for an act 
  1.2             relating to education finance; lowering the maximum 
  1.3             effort capital loan tax rate; amending Minnesota 
  1.4             Statutes 2003 Supplement, section 126C.63, subdivision 
  1.5             8.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   126C.63, subdivision 8, is amended to read: 
  1.9      Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 
  1.10  effort debt service levy" means the lesser of: 
  1.11     (1) a levy in whichever of the following amounts is 
  1.12  applicable: 
  1.13     (i) in any district receiving a debt service loan for a 
  1.14  debt service levy payable in 2002 and thereafter, or granted a 
  1.15  capital loan after January 1, 2002, a levy in total dollar 
  1.16  amount computed at a rate of 40 percent of adjusted net tax 
  1.17  capacity for taxes payable in 2002 and thereafter; 
  1.18     (ii) in any district receiving a debt service loan for a 
  1.19  debt service levy payable in 2001 or earlier, or granted a 
  1.20  capital loan before January 2, 2001, a levy in a total dollar 
  1.21  amount computed at a rate of ~~32~~ 28 percent of adjusted net tax 
  1.22  capacity for taxes payable in 2002 and thereafter; or 
  1.23     (2) a levy in any district for which a capital loan was 
  1.24  approved prior to August 1, 1981, a levy in a total dollar 
  1.25  amount equal to the sum of the amount of the required debt 
  2.1   service levy and an amount which when levied annually will in 
  2.2   the opinion of the commissioner be sufficient to retire the 
  2.3   remaining interest and principal on any outstanding loans from 
  2.4   the state within 30 years of the original date when the capital 
  2.5   loan was granted.  
  2.6      (b) The board in any district affected by the provisions of 
  2.7   paragraph (a), clause (2), may elect instead to determine the 
  2.8   amount of its levy according to the provisions of paragraph (a), 
  2.9   clause (1).  If a district's capital loan is not paid within 30 
  2.10  years because it elects to determine the amount of its levy 
  2.11  according to the provisions of paragraph (a), clause (2), the 
  2.12  liability of the district for the amount of the difference 
  2.13  between the amount it levied under paragraph (a), clause (2), 
  2.14  and the amount it would have levied under paragraph (a), clause 
  2.15  (1), and for interest on the amount of that difference, must not 
  2.16  be satisfied and discharged pursuant to Minnesota Statutes 1988, 
  2.17  or an earlier edition of Minnesota Statutes if applicable, 
  2.18  section 124.43, subdivision 4. 
  2.19     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.20  payable in 2005.