1.1                          A bill for an act 
  1.2             relating to taxation; providing that levies to pay 
  1.3             health care insurance premiums are not subject to levy 
  1.4             limits; amending Minnesota Statutes 2001 Supplement, 
  1.5             section 275.70, subdivision 5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   275.70, subdivision 5, is amended to read: 
  1.9      Subd. 5.  [SPECIAL LEVIES.] "Special levies" means those 
  1.10  portions of ad valorem taxes levied by a local governmental unit 
  1.11  for the following purposes or in the following manner: 
  1.12     (1) to pay the costs of the principal and interest on 
  1.13  bonded indebtedness or to reimburse for the amount of liquor 
  1.14  store revenues used to pay the principal and interest due on 
  1.15  municipal liquor store bonds in the year preceding the year for 
  1.16  which the levy limit is calculated; 
  1.17     (2) to pay the costs of principal and interest on 
  1.18  certificates of indebtedness issued for any corporate purpose 
  1.19  except for the following: 
  1.20     (i) tax anticipation or aid anticipation certificates of 
  1.21  indebtedness; 
  1.22     (ii) certificates of indebtedness issued under sections 
  1.23  298.28 and 298.282; 
  1.24     (iii) certificates of indebtedness used to fund current 
  1.25  expenses or to pay the costs of extraordinary expenditures that 
  2.1   result from a public emergency; or 
  2.2      (iv) certificates of indebtedness used to fund an 
  2.3   insufficiency in tax receipts or an insufficiency in other 
  2.4   revenue sources; 
  2.5      (3) to provide for the bonded indebtedness portion of 
  2.6   payments made to another political subdivision of the state of 
  2.7   Minnesota; 
  2.8      (4) to fund payments made to the Minnesota state armory 
  2.9   building commission under section 193.145, subdivision 2, to 
  2.10  retire the principal and interest on armory construction bonds; 
  2.11     (5) property taxes approved by voters which are levied 
  2.12  against the referendum market value as provided under section 
  2.13  275.61; 
  2.14     (6) to fund matching requirements needed to qualify for 
  2.15  federal or state grants or programs to the extent that either 
  2.16  (i) the matching requirement exceeds the matching requirement in 
  2.17  calendar year 2001, or (ii) it is a new matching requirement 
  2.18  that didn't exist prior to 2002; 
  2.19     (7) to pay the expenses reasonably and necessarily incurred 
  2.20  in preparing for or repairing the effects of natural disaster 
  2.21  including the occurrence or threat of widespread or severe 
  2.22  damage, injury, or loss of life or property resulting from 
  2.23  natural causes, in accordance with standards formulated by the 
  2.24  emergency services division of the state department of public 
  2.25  safety, as allowed by the commissioner of revenue under section 
  2.26  275.74, paragraph (b); 
  2.27     (8) pay amounts required to correct an error in the levy 
  2.28  certified to the county auditor by a city or county in a levy 
  2.29  year, but only to the extent that when added to the preceding 
  2.30  year's levy it is not in excess of an applicable statutory, 
  2.31  special law or charter limitation, or the limitation imposed on 
  2.32  the governmental subdivision by sections 275.70 to 275.74 in the 
  2.33  preceding levy year; 
  2.34     (9) to pay an abatement under section 469.1815; 
  2.35     (10) to pay any costs attributable to increases in the 
  2.36  employer contribution rates under chapter 353 that are effective 
  3.1   after June 30, 2001; 
  3.2      (11) to pay the operating or maintenance costs of a county 
  3.3   jail as authorized in section 641.01 or 641.262, or of a 
  3.4   correctional facility as defined in section 241.021, subdivision 
  3.5   1, paragraph (5), to the extent that the county can demonstrate 
  3.6   to the commissioner of revenue that the amount has been included 
  3.7   in the county budget as a direct result of a rule, minimum 
  3.8   requirement, minimum standard, or directive of the department of 
  3.9   corrections, or to pay the operating or maintenance costs of a 
  3.10  regional jail as authorized in section 641.262.  For purposes of 
  3.11  this clause, a district court order is not a rule, minimum 
  3.12  requirement, minimum standard, or directive of the department of 
  3.13  corrections.  If the county utilizes this special levy, any 
  3.14  amount levied by the county in the previous levy year for the 
  3.15  purposes specified under this clause and included in the 
  3.16  county's previous year's levy limitation computed under section 
  3.17  275.71, shall be deducted from the levy limit base under section 
  3.18  275.71, subdivision 2, when determining the county's current 
  3.19  year levy limitation.  The county shall provide the necessary 
  3.20  information to the commissioner of revenue for making this 
  3.21  determination; 
  3.22     (12) to pay for operation of a lake improvement district, 
  3.23  as authorized under section 103B.555.  If the county utilizes 
  3.24  this special levy, any amount levied by the county in the 
  3.25  previous levy year for the purposes specified under this clause 
  3.26  and included in the county's previous year's levy limitation 
  3.27  computed under section 275.71 shall be deducted from the levy 
  3.28  limit base under section 275.71, subdivision 2, when determining 
  3.29  the county's current year levy limitation.  The county shall 
  3.30  provide the necessary information to the commissioner of revenue 
  3.31  for making this determination; 
  3.32     (13) to repay a state or federal loan used to fund the 
  3.33  direct or indirect required spending by the local government due 
  3.34  to a state or federal transportation project or other state or 
  3.35  federal capital project.  This authority may only be used if the 
  3.36  project is not a local government initiative; 
  4.1      (14) for counties only, to pay the costs reasonably 
  4.2   expected to be incurred in 2002 related to the redistricting of 
  4.3   election districts and establishment of election precincts under 
  4.4   sections 204B.135 and 204B.14, the notice required by section 
  4.5   204B.14, subdivision 4, and the reassignment of voters in the 
  4.6   statewide registration system, not to exceed $1 per capita, 
  4.7   provided that the county shall distribute a portion of the 
  4.8   amount levied under this clause equal to 25 cents times the 
  4.9   population of the city to all cities in the county with a 
  4.10  population of 30,000 or more; and 
  4.11     (15) to pay for court administration costs as required 
  4.12  under section 273.1398, subdivision 4b; however, for taxes 
  4.13  levied to pay for these costs in the year in which the court 
  4.14  financing is transferred to the state, the amount under this 
  4.15  section is limited to one-third of the aid reduction under 
  4.16  section 273.1398, subdivision 4a; and 
  4.17     (16) to pay amounts attributable to increases in the cost 
  4.18  of health insurance coverage purchased by the local government 
  4.19  unit for its employees, to the extent the amount reasonably 
  4.20  anticipated to be payable for that purpose in the year in which 
  4.21  the taxes are payable exceeds the amount paid for that purpose 
  4.22  in calendar year 2001. 
  4.23     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  4.24  payable in 2003 only.