SF 225

as introduced - 89th Legislature (2015 - 2016) Posted on 01/21/2015 09:25am

A bill for an act
relating to taxation; property; limiting fiscal disparities contributions for certain
municipalities; amending Minnesota Statutes 2014, sections 473F.07, subdivision
1; 473F.08, subdivisions 2, 6.

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

Section 1.

Minnesota Statutes 2014, section 473F.07, subdivision 1, is amended to read:

Subdivision 1.

Areawide net tax capacity.

(a) Each county auditor shall certify
the determinations under sections 473F.05 and 473F.06 to the administrative auditor on
or before August 1 of each year.

(b) The administrative auditor shall determine an amount equal to 40 percent of
the sum of the amounts certified under section 473F.06; except that in the case of a
municipality that is not served by regional wastewater services under chapter 473, the
administrative auditor shall determine an amount equal to the lesser of:

(1) 40 percent of the sum of the amounts certified under section 473F.06; or

(2) ten percent of the municipality's net tax capacity for the same year as the
certification under section 473F.06.

The resulting amount shall be known as the "areawide net tax capacity for
........(year)."

EFFECTIVE DATE.

This section is effective for distributions beginning with
taxes payable in 2016.

Sec. 2.

Minnesota Statutes 2014, section 473F.08, subdivision 2, is amended to read:

Subd. 2.

Computation of net tax capacity.

The net tax capacity of a governmental
unit is its net tax capacity, as determined in accordance with other provisions of law
including section 469.177, subdivision 3, subject to the following adjustments:

(a) There shall be subtracted from its net tax capacity, in each municipality in which
the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to 40 percent of the amount certified in that year under sections
473F.06 and section 473F.07, subdivision 1, paragraph (b), for the municipality as the
total preceding year's net tax capacity of commercial-industrial property which is subject
to the taxing jurisdiction of the governmental unit within the municipality, determined
without regard to section 469.177, subdivision 3, bears to the total preceding year's net tax
capacity of commercial-industrial property within the municipality, determined without
regard to section 469.177, subdivision 3;

(b) There shall be added to its net tax capacity, in each municipality in which the
governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
the same proportion to the areawide net tax capacity for the year attributable to that
municipality as the total preceding year's net tax capacity of residential property which is
subject to the taxing jurisdiction of the governmental unit within the municipality bears to
the total preceding year's net tax capacity of residential property of the municipality.

EFFECTIVE DATE.

This section is effective for distributions beginning with
taxes payable in 2016.

Sec. 3.

Minnesota Statutes 2014, section 473F.08, subdivision 6, is amended to read:

Subd. 6.

Application to commercial-industrial property.

The areawide tax rate
determined in accordance with subdivision 5 shall apply to each commercial-industrial
property subject to taxation within a municipality, including property located within any
tax increment financing district, as defined in section 469.174, subdivision 9, to that
portion of the net tax capacity of the item which bears the same proportion to its total net
tax capacity as 40 percent of the amount determined under sections 473F.06 and section
473F.07, subdivision 1, paragraph (b), is to the amount determined under section 473F.05.
The tax rate determined in accordance with subdivision 4 shall apply in the taxation of the
remainder of the net tax capacity of the item.

EFFECTIVE DATE.

This section is effective for distributions beginning with
taxes payable in 2016.