1.1                          A bill for an act 
  1.2             relating to taxation; imposing limits on levies and 
  1.3             market values for property taxes payable in 1996; 
  1.4             requiring a study of local government finance and a 
  1.5             study of education reform; terminating certain 
  1.6             payments to local units of government; repealing 
  1.7             Minnesota Statutes 1994, sections 124A.02, 
  1.8             subdivisions 16 and 24; 124A.03, subdivisions 1b, 1c, 
  1.9             1d, 1e, 1f, 1g, 1h, 1i, and 3b; 124A.034; 124A.035; 
  1.10            124A.036; 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 
  1.11            4b, 8, and 9; 124A.225; 124A.23; 124A.24; 124A.26; 
  1.12            124A.28; 124A.29, subdivision 1; 273.138; 273.1398; 
  1.13            273.1399; 273.166; 477A.011; 477A.012; 477A.0121; 
  1.14            477A.0122; 477A.013; 477A.0132; 477A.014; 477A.015; 
  1.15            and 477A.03. 
  1.16     Section 1.  [GENERAL PROPERTY TAX LIMITATIONS FOR TAXES 
  1.17  PAYABLE IN 1996.] 
  1.18     Subdivision 1.  [SCOPE; DEFINITION.] This section 
  1.19  supersedes all special and general laws and charter provisions 
  1.20  establishing any limitation on ad valorem tax levies of 
  1.21  governmental subdivisions to the extent that they authorize 
  1.22  property taxation in excess of the limitation established in 
  1.23  this section.  As used in this section, "governmental 
  1.24  subdivision" means a county, home rule charter city, statutory 
  1.25  city, town, school district, and all special taxing districts.  
  1.26     Subd. 2.  [PAYABLE 1996 MARKET VALUE.] For taxes payable in 
  1.27  1996, the market value of any parcel of property shall be the 
  1.28  lesser of:  (1) its market value established in the assessment 
  1.29  for taxes payable in 1995, plus the market value established in 
  1.30  the assessment for taxes payable in 1996 of new construction in 
  2.1   the assessment for taxes payable in 1996; or (2) its market 
  2.2   value established in the assessment for taxes payable in 1996.  
  2.3   For property that was exempt from tax for taxes payable in 1995, 
  2.4   but has become taxable for taxes payable in 1996, "market value" 
  2.5   means the market value of the property established in the 
  2.6   assessment for taxes payable in 1996.  
  2.7      Subd. 3.  [PAYABLE 1996 TAX RATE LIMITATION.] The local tax 
  2.8   rate of a governmental subdivision for taxes payable in 1996, 
  2.9   after the adjustments required by Minnesota Statutes, section 
  2.10  275.08, subdivisions 1c, and 1d if applicable, shall not exceed 
  2.11  the comparable rate for the governmental subdivision for taxes 
  2.12  payable in 1995.  If a governmental subdivision certifies a levy 
  2.13  for taxes payable in 1996 to the county auditor that would 
  2.14  produce a local tax rate in excess of the limitation established 
  2.15  in this section, the county auditor shall extend only the amount 
  2.16  of taxes that the limitation of this section will permit.  
  2.17     Subd. 4.  [TORT JUDGMENTS AND NATURAL DISASTERS.] A 
  2.18  governmental subdivision may appeal to the commissioner of 
  2.19  revenue for authorization to levy an amount in excess of the 
  2.20  limitation established in this section for the reasons and under 
  2.21  the procedures provided in Minnesota Statutes, section 275.065, 
  2.22  subdivision 6a.  
  2.23     Sec. 2.  [TASK FORCE TO STUDY LOCAL GOVERNMENT SERVICES AND 
  2.24  FINANCES.] 
  2.25     Subdivision 1.  [ESTABLISHMENT; CHARGE.] A task force is 
  2.26  established to study the following issues relating to local 
  2.27  government services and financing: 
  2.28     (1) a proposed definition of core services to be provided 
  2.29  by local governments; 
  2.30     (2) estimates of the costs of providing those services, 
  2.31  including cost variables due to characteristics of the local 
  2.32  government units; and 
  2.33     (3) creation of a mechanism for imposition of an excess 
  2.34  levy by an aid distribution council for the purpose of funding 
  2.35  noncore services within the area covered by the council and for 
  2.36  distribution of the proceeds of the levy. 
  3.1      As used in this section, an "aid distribution council" is 
  3.2   an entity composed of representatives of local governments 
  3.3   within a single county that is formed for the purpose of 
  3.4   determining the distribution of state aids and imposition of 
  3.5   certain property tax levies within the county. 
  3.6      Subd. 2.  [MEMBERSHIP.] The task force will have 12 members.
  3.7   Six of the members will be appointed by the subcommittee on 
  3.8   committees of the senate committee on rules and administration, 
  3.9   with four of those appointees being members of the majority 
  3.10  caucus and two of those appointees being members of the minority 
  3.11  caucus of the senate.  Six of the members will be appointed by 
  3.12  the speaker of the house of representatives, with four of those 
  3.13  appointees being members of the majority caucus and two of those 
  3.14  appointees being members of the minority caucus of the house of 
  3.15  representatives.  The members of the task force will elect the 
  3.16  chair of the task force. 
  3.17     Subd. 3.  [REPORT TO LEGISLATURE.] The task force must 
  3.18  report to the legislature by January 31, 1997, on a detailed 
  3.19  plan for implementation of a reformed system of financing local 
  3.20  governments.  The plan must incorporate the conclusions of the 
  3.21  task force concerning the issues studied under subdivision 1. 
  3.22     Sec. 3.  [TASK FORCE TO STUDY EDUCATION REFORMS.] 
  3.23     Subdivision 1.  [ESTABLISHMENT; CHARGE.] A task force is 
  3.24  established to study the recommendations made by the coalition 
  3.25  for education reform and accountability under Laws 1993, chapter 
  3.26  224, article 1, section 35. 
  3.27     Subd. 2.  [MEMBERSHIP.] The task force will have 12 members.
  3.28  Six of the members will be appointed by the subcommittee on 
  3.29  committees of the senate committee on rules and administration, 
  3.30  with four of those appointees being members of the majority 
  3.31  caucus and two of those appointees being members of the minority 
  3.32  caucus of the senate.  Six of the members will be appointed by 
  3.33  the speaker of the house of representatives, with four of those 
  3.34  appointees being members of the majority caucus and two of those 
  3.35  appointees being members of the minority caucus of the house of 
  3.36  representatives.  The members of the task force will elect the 
  4.1   chair of the task force. 
  4.2      Subd. 3.  [REPORT TO LEGISLATURE.] The task force must 
  4.3   report to the legislature by January 31, 1997, on a detailed 
  4.4   plan for implementation of a reformed system of providing and 
  4.5   financing education.  The plan must reflect consideration of the 
  4.6   conclusions of the coalition for education reform and 
  4.7   accountability, together with modifications found to be 
  4.8   advisable by the task force. 
  4.9      Sec. 4.  [REPEALER.] 
  4.10     Minnesota Statutes 1994, sections 124A.02, subdivisions 16 
  4.11  and 24; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, 1i, 
  4.12  and 3b; 124A.034; 124A.035; 124A.036; 124A.04; 124A.22, 
  4.13  subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 124A.225; 124A.23; 
  4.14  124A.24; 124A.26; 124A.28; 124A.29, subdivision 1; 273.138; 
  4.15  273.1398; 273.1399; 273.166; 477A.011; 477A.012; 477A.0121; 
  4.16  477A.0122; 477A.013; 477A.0132; 477A.014; 477A.015; and 477A.03, 
  4.17  are repealed. 
  4.18     Sec. 5.  [EFFECTIVE DATE.] 
  4.19     Section 1 is effective for property taxes levied in 1995, 
  4.20  payable in 1996 only.  Section 2 is effective the day following 
  4.21  final enactment.  Section 4 is effective June 30, 1997.