1997 Minnesota Statutes

    298.28 Subdivision 1.  MS 1984 Renumbered 298.28 
 subds 1-12 

    Subd. 1a.  MS 1976 Repealed, 1977 c 423 art 10 s 
 30 

    Subd. 2.  MS 1984 Renumbered 298.28 subd 13 

    Subd. 3.  MS 1984 Renumbered 298.23 subd 14 

     298.28 Division and distribution of proceeds. 

    Subdivision 1.    Distribution.  The proceeds of the 
 taxes collected under section 298.24, except the tax collected 
 under section 298.24, subdivision 2, shall, upon certification 
 of the commissioner of revenue, be allocated under subdivisions 
 2 to 12. 

    Subd. 2.    City or town where quarried or produced.  
 4.5 cents per gross ton of merchantable iron ore concentrate, 
 hereinafter referred to as "taxable ton," must be allocated to 
 the city or town in the county in which the lands from which 
 taconite was mined or quarried were located or within which the 
 concentrate was produced.  If the mining, quarrying, and 
 concentration, or different steps in either thereof are carried 
 on in more than one taxing district, the commissioner shall 
 apportion equitably the proceeds of the part of the tax going to 
 cities and towns among such subdivisions upon the basis of 
 attributing 40 percent of the proceeds of the tax to the 
 operation of mining or quarrying the taconite, and the remainder 
 to the concentrating plant and to the processes of 
 concentration, and with respect to each thereof giving due 
 consideration to the relative extent of such operations 
 performed in each such taxing district.  The commissioner's 
 order making such apportionment shall be subject to review by 
 the tax court at the instance of any of the interested taxing 
 districts, in the same manner as other orders of the 
 commissioner. 

    Subd. 3.    Cities; towns.  (a) 12.5 cents per taxable 
 ton, less any amount distributed under subdivision 8, and 
 paragraph (b), must be allocated to the taconite municipal aid 
 account to be distributed as provided in section 298.282. 

    (b) An amount must be allocated to towns or cities that is 
 annually certified by the county auditor of a county containing 
 a taconite tax relief area within which there is (1) an 
 organized township if, as of January 2, 1982, more than 75 
 percent of the assessed valuation of the township consists of 
 iron ore or (2) a city if, as of January 2, 1980, more than 75 
 percent of the assessed valuation of the city consists of iron 
 ore.  

    (c) The amount allocated under paragraph (b) will be the 
 portion of a township's or city's certified levy equal to the 
 proportion of (1) the difference between 50 percent of January 
 2, 1982, assessed value in the case of a township and 50 percent 
 of the January 2, 1980, assessed value in the case of a city and 
 its current assessed value to (2) the sum of its current 
 assessed value plus the difference determined in (1), provided 
 that the amount distributed shall not exceed $55 per capita in 
 the case of a township or $75 per capita in the case of a city.  
 For purposes of this limitation, population will be determined 
 according to the 1980 decennial census conducted by the United 
 States Bureau of the Census.  If the current assessed value of 
 the township exceeds 50 percent of the township's January 2, 
 1982, assessed value, or if the current assessed value of the 
 city exceeds 50 percent of the city's January 2, 1980, assessed 
 value, this paragraph shall not apply.  For purposes of this 
 paragraph, "assessed value," when used in reference to years 
 other than 1980 or 1982, means, for distributions for production 
 year 1989, production taxes payable in 1990, the appropriate net 
 tax capacities multiplied by 8.2 and for distributions for 
 production year 1990 and thereafter, production taxes payable in 
 1991 and thereafter, the appropriate net tax capacities 
 multiplied by 10.2. 

    Subd. 4.    School districts.  (a) 27.5 cents per 
 taxable ton plus the increase provided in paragraph (d) must be 
 allocated to qualifying school districts to be distributed, 
 based upon the certification of the commissioner of revenue, 
 under paragraphs (b) and (c). 

    (b) 5.5 cents per taxable ton must be distributed to the 
 school districts in which the lands from which taconite was 
 mined or quarried were located or within which the concentrate 
 was produced.  The distribution must be based on the 
 apportionment formula prescribed in subdivision 2. 

    (c)(i) 22 cents per taxable ton, less any amount 
 distributed under paragraph (e), shall be distributed to a group 
 of school districts comprised of those school districts in which 
 the taconite was mined or quarried or the concentrate produced 
 or in which there is a qualifying municipality as defined by 
 section 273.134 in direct proportion to school district indexes 
 as follows:  for each school district, its pupil units 
 determined under section 124.17 for the prior school year shall 
 be multiplied by the ratio of the average adjusted net tax 
 capacity per pupil unit for school districts receiving aid under 
 this clause as calculated pursuant to chapter 124A for the 
 school year ending prior to distribution to the adjusted net tax 
 capacity per pupil unit of the district.  Each district shall 
 receive that portion of the distribution which its index bears 
 to the sum of the indices for all school districts that receive 
 the distributions.  

    (ii) Notwithstanding clause (i), each school district that 
 receives a distribution under sections 298.018; 298.23 to 
 298.28, exclusive of any amount received under this clause; 
 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
 imposing a tax on severed mineral values that is less than the 
 amount of its levy reduction under section 124.918, subdivision 
 8, for the second year prior to the year of the distribution 
 shall receive a distribution equal to the difference; the amount 
 necessary to make this payment shall be derived from 
 proportionate reductions in the initial distribution to other 
 school districts under clause (i).  

    (d) Any school district described in paragraph (c) where a 
 levy increase pursuant to section 124A.03, subdivision 2, is 
 authorized by referendum, shall receive a distribution according 
 to the following formula.  In 1994, the amount distributed per 
 ton shall be equal to the amount per ton distributed in 1991 
 under this paragraph increased in the same proportion as the 
 increase between the fourth quarter of 1989 and the fourth 
 quarter of 1992 in the implicit price deflator as defined in 
 section 298.24, subdivision 1.  On July 15, 1995, and subsequent 
 years, the increase over the amount established for the prior 
 year shall be determined according to the increase in the 
 implicit price deflator as provided in section 298.24, 
 subdivision 1.  Each district shall receive the product of: 

    (i) $175 times the pupil units identified in section 
 124.17, subdivision 1, enrolled in the second previous year or 
 the 1983-1984 school year, whichever is greater, less the 
 product of 1.8 percent times the district's taxable net tax 
 capacity in the second previous year; times 

    (ii) the lesser of: 

    (A) one, or 

    (B) the ratio of the sum of the amount certified pursuant 
 to section 124A.03, subdivision 1g, in the previous year, plus 
 the amount certified pursuant to section 124A.03, subdivision 
 1i, in the previous year, plus the referendum aid according to 
 section 124A.03, subdivision 1h, for the current year, plus an 
 amount equal to the reduction under section 124A.03, subdivision 
 3b, to the product of 1.8 percent times the district's taxable 
 net tax capacity in the second previous year. 

    If the total amount provided by paragraph (d) is 
 insufficient to make the payments herein required then the 
 entitlement of $175 per pupil unit shall be reduced uniformly so 
 as not to exceed the funds available.  Any amounts received by a 
 qualifying school district in any fiscal year pursuant to 
 paragraph (d) shall not be applied to reduce general education 
 aid which the district receives pursuant to section 124A.23 or 
 the permissible levies of the district.  Any amount remaining 
 after the payments provided in this paragraph shall be paid to 
 the commissioner of iron range resources and rehabilitation who 
 shall deposit the same in the taconite environmental protection 
 fund and the northeast Minnesota economic protection trust fund 
 as provided in subdivision 11. 

    Each district receiving money according to this paragraph 
 shall reserve $25 times the number of pupil units in the 
 district.  It may use the money for early childhood programs or 
 for outcome-based learning programs that enhance the academic 
 quality of the district's curriculum.  The outcome-based 
 learning programs must be approved by the commissioner of 
 children, families, and learning. 

    (e) There shall be distributed to any school district the 
 amount which the school district was entitled to receive under 
 section 298.32 in 1975. 

    Subd. 5.    Counties.  (a) 16.5 cents per taxable ton is 
 allocated to counties to be distributed, based upon 
 certification by the commissioner of revenue, under paragraphs 
 (b) to (d). 

    (b) 13 cents per taxable ton shall be distributed to the 
 county in which the taconite is mined or quarried or in which 
 the concentrate is produced, less any amount which is to be 
 distributed pursuant to paragraph (c).  The apportionment 
 formula prescribed in subdivision 2 is the basis for the 
 distribution. 

    (c) If an electric power plant owned by and providing the 
 primary source of power for a taxpayer mining and concentrating 
 taconite is located in a county other than the county in which 
 the mining and the concentrating processes are conducted, one 
 cent per taxable ton of the tax distributed to the counties 
 pursuant to paragraph (b) and imposed on and collected from such 
 taxpayer shall be paid to the county in which the power plant is 
 located. 

    (d) 3.5 cents per taxable ton shall be paid to the county 
 from which the taconite was mined, quarried or concentrated to 
 be deposited in the county road and bridge fund.  If the mining, 
 quarrying and concentrating, or separate steps in any of those 
 processes are carried on in more than one county, the 
 commissioner shall follow the apportionment formula prescribed 
 in subdivision 2. 

    Subd. 6.    Property tax relief.  (a) Fifteen cents per 
 taxable ton, less any amount required to be distributed under 
 paragraphs (b) and (c), and less any amount required to be 
 deducted under paragraph (d), must be allocated to St. Louis 
 county acting as the counties' fiscal agent, to be distributed 
 as provided in sections 273.134 to 273.136. 

    (b) If an electric power plant owned by and providing the 
 primary source of power for a taxpayer mining and concentrating 
 taconite is located in a county other than the county in which 
 the mining and the concentrating processes are conducted, .1875 
 cent per taxable ton of the tax imposed and collected from such 
 taxpayer shall be paid to the county. 

    (c) If an electric power plant owned by and providing the 
 primary source of power for a taxpayer mining and concentrating 
 taconite is located in a school district other than a school 
 district in which the mining and concentrating processes are 
 conducted, .5625 cent per taxable ton of the tax imposed and 
 collected from the taxpayer shall be paid to the school district.

    (d) Two cents per taxable ton must be deducted from the 
 amount allocated to the St. Louis county auditor under paragraph 
 (a). 

    Subd. 7.    Iron range resources and rehabilitation board. 
  Three cents per taxable ton shall be paid to the iron range 
 resources and rehabilitation board for the purposes of section 
 298.22.  The amount determined in this subdivision shall be 
 increased in 1981 and subsequent years prior to 1988 in the same 
 proportion as the increase in the steel mill products index as 
 provided in section 298.24, subdivision 1, and shall be 
 increased in 1989, 1990, and 1991 according to the increase in 
 the implicit price deflator as provided in section 298.24, 
 subdivision 1.  In 1992 and 1993, the amount distributed per ton 
 shall be the same as the amount distributed per ton in 1991.  In 
 1994, the amount distributed shall be the distribution per ton 
 for 1991 increased in the same proportion as the increase 
 between the fourth quarter of 1989 and the fourth quarter of 
 1992 in the implicit price deflator as defined in section 
 298.24, subdivision 1.  That amount shall be increased in 1995 
 and subsequent years in the same proportion as the increase in 
 the implicit price deflator as provided in section 298.24, 
 subdivision 1.  The amount distributed in 1988 shall be 
 increased according to the increase that would have occurred in 
 the rate of tax under section 298.24 if the rate had been 
 adjusted according to the implicit price deflator for 1987 
 production.  The amount distributed pursuant to this subdivision 
 shall be expended within or for the benefit of a tax relief area 
 defined in section 273.134.  No part of the fund provided in 
 this subdivision may be used to provide loans for the operation 
 of private business unless the loan is approved by the governor. 

    Subd. 8.    Range association of municipalities and 
 schools.  .20 cent per taxable ton shall be paid to the range 
 association of municipalities and schools, for the purpose of 
 providing an areawide approach to problems which demand 
 coordinated and cooperative actions and which are common to 
 those areas of northeast Minnesota affected by operations 
 involved in mining iron ore and taconite and producing 
 concentrate therefrom, and for the purpose of promoting the 
 general welfare and economic development of the cities, towns 
 and school districts within the iron range area of northeast 
 Minnesota. 

    Subd. 9.    Minnesota economic protection trust fund.  
 1.5 cents per taxable ton shall be paid to the northeast 
 Minnesota economic protection trust fund.  

    Subd. 9a.    Taconite economic development fund.  (a) 
 15.4 cents per ton for distributions in 1996, 1998, and 1999 and 
 20.4 cents per ton for distributions in 1997 shall be paid to 
 the taconite economic development fund.  No distribution shall 
 be made under this paragraph in any year in which total industry 
 production falls below 30 million tons. 

    (b) An amount equal to 50 percent of the tax under section 
 298.24 for concentrate sold in the form of pellet chips and 
 fines not exceeding 5/16 inch in size and not including crushed 
 pellets shall be paid to the taconite economic development 
 fund.  The amount paid shall not exceed $700,000 annually for 
 all companies.  If the initial amount to be paid to the fund 
 exceeds this amount, each company's payment shall be prorated so 
 the total does not exceed $700,000. 

    Subd. 9b.    Taconite environmental fund.  Five cents 
 per ton for distributions in 1998 and 1999 shall be paid to the 
 taconite environmental fund for use under section 298.2961.  No 
 distribution may be made under this paragraph in any year in 
 which total industry production falls below 30,000,000 tons. 

    Subd. 10.    Increase.  The amounts determined under 
 subdivisions 6, paragraph (a), and 9 shall be increased in 1979 
 and subsequent years prior to 1988 in the same proportion as the 
 increase in the steel mill products index as provided in section 
 298.24, subdivision 1.  The amount distributed in 1988 shall be 
 increased according to the increase that would have occurred in 
 the rate of tax under section 298.24 if the rate had been 
 adjusted according to the implicit price deflator for 1987 
 production.  Those amounts shall be increased in 1989, 1990, and 
 1991 in the same proportion as the increase in the implicit 
 price deflator as provided in section 298.24, subdivision 1.  In 
 1992 and 1993, the amounts determined under subdivisions 6, 
 paragraph (a), and 9, shall be the distribution per ton 
 determined for distribution in 1991.  In 1994, the amounts 
 determined under subdivisions 6, paragraph (a), and 9, shall be 
 the distribution per ton determined for distribution in 1991 
 increased in the same proportion as the increase between the 
 fourth quarter of 1989 and the fourth quarter of 1992 in the 
 implicit price deflator as defined in section 298.24, 
 subdivision 1.  Those amounts shall be increased in 1995 and 
 subsequent years in the same proportion as the increase in the 
 implicit price deflator as provided in section 298.24, 
 subdivision 1.  

    The distributions per ton determined under subdivisions 5, 
 paragraphs (b) and (d), and 6, paragraphs (b) and (c) for 
 distribution in 1988 and subsequent years shall be the 
 distribution per ton determined for distribution in 1987. 

    Subd. 11.    Remainder.  (a) The proceeds of the tax 
 imposed by section 298.24 which remain after the distributions 
 and payments in subdivisions 2 to 10a, as certified by the 
 commissioner of revenue, and paragraphs (b) and (c) have been 
 made, together with interest earned on all money distributed 
 under this section prior to distribution, shall be divided 
 between the taconite environmental protection fund created in 
 section 298.223 and the northeast Minnesota economic protection 
 trust fund created in section 298.292 as follows:  Two-thirds to 
 the taconite environmental protection fund and one-third to the 
 northeast Minnesota economic protection trust fund.  The 
 proceeds shall be placed in the respective special accounts. 

    (b) There shall be distributed to each city, town, school 
 district, and county the amount that it received under section 
 294.26 in calendar year 1977; provided, however, that the amount 
 distributed in 1981 to the unorganized territory number 2 of 
 Lake county and the town of Beaver Bay based on the 
 between-terminal trackage of Erie Mining Company will be 
 distributed in 1982 and subsequent years to the unorganized 
 territory number 2 of Lake county and the towns of Beaver Bay 
 and Stony River based on the miles of track of Erie Mining 
 Company in each taxing district. 

    (c) There shall be distributed to the iron range resources 
 and rehabilitation board the amounts it received in 1977 under 
 section 298.22.  The amount distributed under this paragraph 
 shall be expended within or for the benefit of the tax relief 
 area defined in section 273.134. 

    Subd. 11a.    Prorated distributions.  For production 
 years 1994 through 1999, distributions under this section that 
 are based on a number of cents per ton explicitly provided in 
 this section shall be reduced on a pro rata basis to reflect the 
 reduction in tax proceeds as a result of the tax rate reduction 
 applied to direct reduced ore under section 298.24, subdivision 
 1, paragraph (f). 

    Subd. 12.    Estimates.  On or before October 10 of each 
 calendar year each producer of taconite or iron sulphides 
 subject to taxation under section 298.24 (hereinafter called 
 "taxpayer") shall file with the commissioner of revenue an 
 estimate of the amount of tax which would be payable by such 
 taxpayer under said law for such calendar year; provided such 
 estimate shall be in an amount not less than the amount due on 
 the mining and production of concentrates up to September 30 of 
 said year plus the amount becoming due because of probable 
 production between September 30 and December 31 of said year, 
 less any credit allowable as provided in subdivision 13.  The 
 commissioner of revenue shall annually on or before October 10 
 report an estimated distribution amount to each taxing district 
 and the officers with whom such report is so filed shall use the 
 amount so indicated as being distributable to each taxing 
 district in computing the permissible tax levy of such county or 
 city in the year in which such estimate is made, and payable in 
 the next ensuing calendar year, except that one cent per taxable 
 ton of the amount distributed under subdivision 5, paragraph 
 (d), shall not be deducted in calculating the permissible levy.  
 In any calendar year in which a general property tax levy has 
 been made, if the taxes distributable to any such county or city 
 are greater than the amount estimated by the commissioner to be 
 paid to any such county or city in such year, the excess of such 
 distribution shall be held in a special fund by the county or 
 city and shall not be expended until the succeeding calendar 
 year, and shall be included in computing the permissible levies 
 of such county or city payable in such year.  If the amounts 
 distributable to any such county or city after final 
 determination by the commissioner of revenue under this section 
 are less than the amounts by which a taxing district's levies 
 were reduced pursuant to this section, such county or city may 
 issue certificates of indebtedness in the amount of the 
 shortage, and may include in its next tax levy an amount 
 sufficient to pay such certificates of indebtedness and interest 
 thereon, or, if no certificates were issued, an amount equal to 
 such shortage. 

    Subd. 13.    Deduction for credits; payment.  In 
 determining the distributions and payments of the proceeds of 
 the tax collected under section 298.24, the commissioner of 
 revenue shall deduct the amount of any credits authorized under 
 section 298.24, subdivision 3, against the tax imposed under 
 subdivision 1 of said section, from the amount which would 
 otherwise have been paid to the iron range resources and 
 rehabilitation board for credit to the northeast Minnesota 
 economic protection trust fund.  

    Subd. 14. Repealed, 1987 c 268 art 9 s 43 

    Subd. 15.    Distribution of delayed payments.  
 Notwithstanding any other provision of this section or any other 
 law, if payment of taxes collected under section 298.24 is 
 delayed past the due date because the taxpayer is a debtor in a 
 pending bankruptcy proceeding, the amount paid shall be 
 distributed as follows when received:  

    (1) 50 percent to St. Louis county acting as the counties' 
 fiscal agent, to be distributed as provided in sections 273.134 
 to 273.136; 

    (2) 25 percent to the northeast Minnesota economic 
 protection trust fund; and 

    (3) 25 percent to the taconite environmental protection 
 fund.  

    HIST: 1941 c 375 s 6; 1947 c 193 s 2; 1955 c 728 s 1; 1959 c 
 158 s 26; 1959 c 677 s 1; 1965 c 698 s 1; 1969 c 399 s 49; 1969 
 c 1156 s 2; 1971 c 736 s 1,2; Ex1971 c 31 art 35 s 2; 1973 c 123 
 art 5 s 7; 1973 c 582 s 3; 1973 c 631 s 6; 1975 c 46 s 8; 1976 c 
 134 s 78; 1977 c 307 s 29; 1977 c 423 art 10 s 16; 1978 c 721 
 art 9 s 3; 1978 c 764 s 113; 1978 c 793 s 70; 1980 c 607 art 7 s 
 5; 1981 c 358 art 1 s 43; 1Sp1981 c 1 art 10 s 15,16; 1982 c 523 
 art 41 s 1; 1982 c 548 art 1 s 15; 2Sp1982 c 2 s 2,3; 1983 c 216 
 art 1 s 50; 1983 c 314 art 1 s 22; 1984 c 463 art 1 s 12; 1984 c 
 502 art 7 s 16; 1984 c 522 s 15; 1985 c 300 s 23; 1Sp1985 c 12 
 art 1 s 33; 1Sp1985 c 14 art 10 s 17,18; 1986 c 441 s 12; 1986 c 
 444; 1Sp1986 c 1 art 4 s 44; 1Sp1986 c 3 art 2 s 38; 1987 c 268 
 art 9 s 39-42; 1988 c 486 s 91; 1988 c 719 art 5 s 45,84; art 19 
 s 19; 1989 c 277 art 2 s 47; art 4 s 27; 1989 c 329 art 13 s 20; 
 1Sp1989 c 1 art 3 s 27; art 5 s 20; 1990 c 480 art 7 s 25; 1990 
 c 562 art 7 s 11; 1991 c 130 s 37; 1991 c 265 art 1 s 27; 1991 c 
 356 art 4 s 2-4,6; 1992 c 499 art 8 s 23; art 12 s 29; 1992 c 
 511 art 9 s 10; 1993 c 224 art 1 s 31; 1993 c 369 s 111; 1993 c 
 375 art 16 s 2-5; 1Sp1993 c 6 s 31; 1994 c 416 art 1 s 41; 1994 
 c 587 art 6 s 4,5; 1995 c 264 art 7 s 5; 1Sp1995 c 3 art 16 s 
 13; 1996 c 471 art 12 s 3-5; 1997 c 231 art 8 s 8,9