1997 Minnesota Statutes

CHAPTER 477A. Local government aid

    477A.01 Subdivision 1. Repealed, 1Sp1981 c 1 art 6 
 s 9 

    Subd. 2. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 3. Repealed, 1979 c 303 art 6 s 11; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 4. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 4a. Repealed, 1979 c 303 art 6 s 11; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 4b. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 4c. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 4d. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 4e. Repealed, 1Sp1981 c 1 art 6 s 9 

    Subd. 5. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 
 1 art 6 s 9 

    Subd. 6. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 
 1 art 6 s 9 

    Subd. 7. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 
 1 art 6 s 9 

    Subd. 8. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 
 1 art 6 s 9 

    Subd. 9. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 c 
 1 art 6 s 9 

    Subd. 10. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 11. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 12. Repealed, 1973 c 650 art 17 s 17; 1Sp 
 1981 c 1 art 6 s 9 

    Subd. 13. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 14. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 15. Repealed, 1973 c 650 art 17 s 17; 1Sp 
 1981 c 1 art 6 s 9 

    Subd. 16. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 17. Repealed, 1975 c 437 art 3 s 8; 1Sp1981 
 c 1 art 6 s 9 

    Subd. 18. Repealed, 1Sp1981 c 1 art 6 s 9 

     477A.011 Definitions. 

    Subdivision 1.    Application.  For the purposes of 
 sections 477A.011 to 477A.014 the following terms shall have 
 these meanings, unless otherwise provided to the contrary.  

    Subd. 1a.    City.  "City" means a statutory or home 
 rule charter city.  

    Subd. 1b.    Town.  "Town" means a township. 

    Subd. 2. Repealed, 1996 c 310 s 1 

    Subd. 2a.    Special taxing district.  "Special taxing 
 district" means a political subdivision with the authority to 
 levy property taxes, other than a city, county, town, or school 
 district. 

    Subd. 3.    Population.  "Population" means the 
 population established as of July 1 in an aid calculation year 
 by the most recent federal census, by a special census conducted 
 under contract with the United States Bureau of the Census, by a 
 population estimate made by the metropolitan council, or by a 
 population estimate of the state demographer made pursuant to 
 section 4A.02, whichever is the most recent as to the stated 
 date of the count or estimate for the preceding calendar year.  
 The term "per capita" refers to population as defined by this 
 subdivision. 

    Subd. 3a. Repealed, 1993 c 375 art 4 s 21 

    Subd. 4. Repealed, 1988 c 719 art 5 s 81 

    Subd. 5. Repealed, 1988 c 719 art 5 s 81 

    Subd. 6. Repealed, 1988 c 719 art 5 s 81 

    Subd. 7. Repealed, 1988 c 719 art 5 s 81 

    Subd. 7a. Repealed, 1988 c 719 art 5 s 81 

    Subd. 8. Repealed, 1983 c 342 art 5 s 16 

    Subd. 9. Repealed, 1983 c 342 art 5 s 16 

    Subd. 10. Repealed, 1988 c 719 art 5 s 81 

    Subd. 11. Repealed, 1988 c 719 art 5 s 81 

    Subd. 12. Repealed, 1988 c 719 art 5 s 81 

    Subd. 13. Repealed, 1988 c 719 art 5 s 81 

    Subd. 14. Repealed, 1988 c 719 art 5 s 81 

    Subd. 15. Repealed, 1993 c 375 art 4 s 21 

    Subd. 16. Repealed, 1993 c 375 art 4 s 21 

    Subd. 17. Repealed, 1993 c 375 art 4 s 21 

    Subd. 18. Repealed, 1993 c 375 art 4 s 21 

    Subd. 19.    Metropolitan area.  "Metropolitan area" is 
 the metropolitan area as defined in section 473.121, subdivision 
 2.  

    Subd. 20.    City net tax capacity.  "City net tax 
 capacity" means (1) the net tax capacity computed using the net 
 tax capacity rates in section 273.13, and the market values for 
 taxes payable in the year prior to the aid distribution plus (2) 
 a city's fiscal disparities distribution tax capacity under 
 section 276A.06, subdivision 2, paragraph (b), or 473F.08, 
 subdivision 2, paragraph (b), for taxes payable in the year 
 prior to that for which aids are being calculated.  The market 
 value utilized in computing city net tax capacity shall be 
 reduced by the sum of (1) a city's market value of commercial 
 industrial property as defined in section 276A.01, subdivision 
 3, or 473F.02, subdivision 3, multiplied by the ratio determined 
 pursuant to section 276A.06, subdivision 2, paragraph (a), or 
 473F.08, subdivision 2, paragraph (a), (2) the market value of 
 the captured value of tax increment financing districts as 
 defined in section 469.177, subdivision 2, and (3) the market 
 value of transmission lines deducted from a city's total net tax 
 capacity under section 273.425.  The city net tax capacity will 
 be computed using equalized market values.  

    Subd. 21.    Equalized market values.  "Equalized market 
 values" are equalized market values as defined in section 
 273.1398, subdivision 1. 

    Subd. 22. Repealed, 1993 c 375 art 4 s 21 

    Subd. 23. Repealed, 1993 c 375 art 4 s 21 

    Subd. 24. Repealed, 1Sp1989 c 1 art 4 s 15 

    Subd. 25. Repealed, 1993 c 375 art 4 s 21 

    Subd. 26. Repealed, 1993 c 375 art 4 s 21 

    Subd. 27.    Revenue base.  "Revenue base" means the 
 amount levied for taxes payable in the previous year, including 
 the levy on the fiscal disparity distribution under section 
 276A.06, subdivision 3, paragraph (a), or 473F.08, subdivision 
 3, paragraph (a), and before reduction for the homestead and 
 agricultural credit aid under section 273.1398, subdivision 2, 
 equalization aid under section 477A.013, subdivision 5, and 
 disparity reduction aid under section 273.1398, subdivision 3; 
 plus the originally certified local government aid in the 
 previous year under sections 477A.011, 477A.012, and 477A.013, 
 except for 477A.013, subdivision 5; and the taconite aids 
 received in the previous year under sections 298.28 and 298.282. 

    Subd. 28.    Reduction percentage.  "Reduction 
 percentage" means the equal percentage reduction in each 
 affected local government's reduction base that is estimated to 
 be necessary to reduce the aid payments to those local 
 governments by the amounts specified under section 477A.0132. 

    Subd. 29.    Adjusted revenue base.  "Adjusted revenue 
 base" means revenue base as defined in subdivision 27 less the 
 levy reported under section 275.62, subdivision 1, clause (2). 

    Subd. 30.    Pre-1940 housing percentage.  "Pre-1940 
 housing percentage" for a city is 100 times the most recent 
 federal census count of all housing units in the city built 
 before 1940, divided by the total number of all housing units in 
 the city.  Housing units includes both occupied and vacant 
 housing units as defined by the federal census. 

    Subd. 31.    Population decline percentage.  "Population 
 decline percentage" for a city is the percent decline in a 
 city's population for the last ten years, based on the most 
 recently available population estimate from the state 
 demographer or a federal census.  A city's population decline 
 percentage cannot be less than zero. 

    Subd. 32.    Commercial industrial percentage.  
 "Commercial industrial percentage" for a city is 100 times the 
 sum of the estimated market values of all real property in the 
 city classified as class 3 under section 273.13, subdivision 24, 
 excluding public utility property, to the total market value of 
 all taxable real and personal property in the city.  The market 
 values are the amounts computed before any adjustments for 
 fiscal disparities under section 276A.06 or 473F.08.  The market 
 values used for this subdivision are not equalized. 

    Subd. 33.    Transformed population.  "Transformed 
 population" for a city is the city population raised to the 
 .3308 power, times 30.5485. 

    Subd. 34.    City revenue need.  (a) For a city with a 
 population equal to or greater than 2,500, "city revenue need" 
 is the sum of (1) 3.462312 times the pre-1940 housing 
 percentage; plus (2) 2.093826 times the commercial industrial 
 percentage; plus (3) 6.862552 times the population decline 
 percentage; plus (4) .00026 times the city population; plus (5) 
 152.0141. 

    (b) For a city with a population less than 2,500, "city 
 revenue need" is the sum of (1) 1.795919 times the pre-1940 
 housing percentage; plus (2) 1.562138 times the commercial 
 industrial percentage; plus (3) 4.177568 times the population 
 decline percentage; plus (4) 1.04013 times the transformed 
 population; minus (5) 107.475. 

    (c) The city revenue need cannot be less than zero. 

    (d) For calendar year 1995 and subsequent years, the city 
 revenue need for a city, as determined in paragraphs (a) to (c), 
 is multiplied by the ratio of the annual implicit price deflator 
 for government consumption expenditures and gross investment for 
 state and local governments as prepared by the United States 
 Department of Commerce, for the most recently available year to 
 the 1993 implicit price deflator for state and local government 
 purchases. 

    Subd. 35.    Tax effort rate.  "Tax effort rate" means 
 the sum of the net levy for all cities divided by the sum of the 
 city net tax capacity for all cities.  For purposes of this 
 section, "net levy" means the city levy, after all adjustments, 
 used for calculating the local tax rate under section 275.08 for 
 taxes payable in the year prior to the aid distribution.  The 
 fiscal disparity distribution levy under chapter 276A or 473F is 
 included in net levy. 

    Subd. 36.    City aid base.  (a) Except as provided in 
 paragraphs (b), (c), and (d), "city aid base" means, for each 
 city, the sum of the local government aid and equalization aid 
 it was originally certified to receive in calendar year 1993 
 under Minnesota Statutes 1992, section 477A.013, subdivisions 3 
 and 5, and the amount of disparity reduction aid it received in 
 calendar year 1993 under Minnesota Statutes 1992, section 
 273.1398, subdivision 3. 

    (b) For aids payable in 1996 and thereafter, a city that in 
 1992 or 1993 transferred an amount from governmental funds to 
 its sewer and water fund, which amount exceeded its net levy for 
 taxes payable in the year in which the transfer occurred, has a 
 "city aid base" equal to the sum of (i) its city aid base, as 
 calculated under paragraph (a), and (ii) one-half of the 
 difference between its city aid distribution under section 
 477A.013, subdivision 9, for aids payable in 1995 and its city 
 aid base for aids payable in 1995. 

    (c) The city aid base for any city with a population less 
 than 500 is increased by $40,000 for aids payable in calendar 
 year 1995 and thereafter, and the maximum amount of total aid it 
 may receive under section 477A.013, subdivision 9, paragraph 
 (c), is also increased by $40,000 for aids payable in calendar 
 year 1995 only, provided that: 

    (i) the average total tax capacity rate for taxes payable 
 in 1995 exceeds 200 percent; 

    (ii) the city portion of the tax capacity rate exceeds 100 
 percent; and 

    (iii) its city aid base is less than $60 per capita. 

    (d) The city aid base for a city is increased by $20,000 in 
 1998 and thereafter and the maximum amount of total aid it may 
 receive under section 477A.013, subdivision 9, paragraph (c), is 
 also increased by $20,000 in calendar year 1998 only, provided 
 that: 

    (i) the city has a population in 1994 of 2,500 or more; 

    (ii) the city is located in a county, outside of the 
 metropolitan area, which contains a city of the first class; 

    (iii) the city's net tax capacity used in calculating its 
 1996 aid under section 477A.013 is less than $400 per capita; 
 and 

    (iv) at least four percent of the total net tax capacity, 
 for taxes payable in 1996, of property located in the city is 
 classified as railroad property. 

    Subd. 37.    Base reduction percentage.  "Base reduction 
 percentage" is (1) the difference between the amount available 
 for city aid under section 477A.03 for the year for which aid is 
 being calculated and the amount available for city aid under 
 section 477A.03 for calendar year 1994, (2) divided by the sum 
 of the city aid base for all cities and (3) multiplied by 100.  
 The reduction percentage for any year may not be less than the 
 reduction percentage from the previous year.  For aid paid in 
 calendar year 1994, the reduction percentage is zero.  The 
 reduction percentage may not be more than 100 percent. 

    HIST: 1981 c 356 s 248; 1981 c 358 art 1 s 48; 1Sp1981 c 1 art 
 6 s 1; 1983 c 289 s 114 subd 2; 1983 c 342 art 5 s 5-9; 1984 c 
 558 art 4 s 10; 1Sp1985 c 14 art 6 s 1-6; 1Sp1986 c 1 art 6 s 
 1,2; 1987 c 291 s 240; 1988 c 719 art 5 s 66-75; 1989 c 277 art 
 2 s 66; 1Sp1989 c 1 art 4 s 3-6; art 9 s 79,80; 1990 c 480 art 7 
 s 28,29; 1990 c 604 art 4 s 6-9; 1991 c 2 art 8 s 1-3; 1991 c 
 291 art 3 s 5-7; 1991 c 345 art 2 s 64,65; 1992 c 511 art 5 s 
 16,17; 1993 c 375 art 4 s 8-17; 1994 c 416 art 1 s 57; 1995 c 
 264 art 8 s 13; 1996 c 471 art 3 s 44; art 11 s 16-19; 1997 c 
 231 art 2 s 49,69 

*   NOTE:  The amendments to subdivisions 20, 27, 32, and 35 by 
*Laws 1996, chapter 471, article 11, sections 16, 17, 18, and 19, 
*are effective July 1, 1997, for taxes levied in 1997, payable in 
*1998 and subsequent years, except as provided in section 
*276A.03.  Laws 1996, chapter 471, article 11, section 20.

    477A.012 Subdivision 1. Repealed, 1996 c 310 s 1 

    Subd. 2. MS 1995 Supp Repealed, 1996 c 310 s 1 

    Subd. 3. Repealed, 1996 c 310 s 1 

    Subd. 4. Repealed, 1996 c 310 s 1 

    Subd. 5. Repealed, 1991 c 291 art 3 s 15 

    Subd. 6. Repealed, 1994 c 587 art 3 s 21 

    Subd. 7. Repealed, 1996 c 310 s 1 

    Subd. 8. Repealed, 1996 c 310 s 1 

     477A.0121 County criminal justice aid. 

    Subdivision 1.    Purpose.  County criminal justice aid 
 is intended to reduce the reliance of county criminal justice 
 and corrections programs and associated costs on local property 
 taxes. 

    County criminal justice aids must be used to pay expenses 
 associated with criminal justice activities including law 
 enforcement, criminal adjudication, and corrections. 

    Subd. 2.    Definitions.  For the purposes of this 
 section, the following definitions apply: 

    (1) "population" means the population according to the most 
 recent federal census, or according to the state demographer's 
 most recent estimate if it has been issued subsequent to the 
 most recent federal census; and 

    (2) "Part I crimes" means the total number of Part I crimes 
 reported for each county by the department of public safety for 
 the most recent year available.  By July 1 of each year the 
 commissioner of public safety shall certify to the commissioner 
 of revenue the number of Part I crimes reported for each county. 

    Subd. 3.    Formula.  Each calendar year, the 
 commissioner of revenue shall distribute county criminal justice 
 aid to each county in an amount determined according to the 
 following formula: 

    (1) one-half shall be distributed to each county in the 
 same proportion that the county's population is to the 
 population of all counties in the state; and 

    (2) one-half shall be distributed to each county in the 
 same proportion that the county's Part I crimes are to the total 
 Part I crimes for all counties in the state. 

    Subd. 4.    Public defender costs.  Each calendar year, 
 1.5 percent of the total appropriation for this section shall be 
 retained by the commissioner of revenue to make reimbursements 
 to the commissioner of finance for payments made under section 
 611.27.  The reimbursements shall be to defray the additional 
 costs associated with court-ordered counsel under section 
 611.27.  Any retained amounts not used for reimbursement in a 
 year shall be included in the next distribution of county 
 criminal justice aid that is certified to the county auditors 
 for the purpose of property tax reduction for the next taxes 
 payable year.  

    Subd. 5.    Payment dates.  The aid amounts for each 
 calendar year shall be paid as provided in section 477A.015. 

    Subd. 6.    Report.  By March 15 of each year following 
 the year in which criminal justice aids are received, each 
 county must file a report with the commissioner of revenue 
 describing how criminal justice aids were spent, and 
 demonstrating that they were used for criminal justice purposes. 

    HIST: 1992 c 511 art 1 s 14; 1994 c 416 art 1 s 58; 1995 c 264 
 art 8 s 14; 1996 c 471 art 3 s 45 

     477A.0122 Family preservation aid. 

    Subdivision 1.    Purpose.  The purpose of family 
 preservation aid is to reduce the rate of increase in the costs 
 of out-of-home placement of children and concomitant increases 
 in county property taxes.  Aids paid under this section must be 
 used to fund family preservation programs. 

    Subd. 2.    Definitions.  For purposes of this section, 
 the following definitions apply: 

    (a) "Children in out-of-home placement" means the total 
 unduplicated number of children in out-of-home care as reported 
 according to section 257.0725. 

    (b) "Family preservation programs" means family-based 
 services as defined in section 256F.03, subdivision 5, families 
 first services, parent and child education programs, and day 
 treatment services provided in cooperation with a school 
 district or other programs as defined by the commissioner of 
 human services. 

    (c) "Income maintenance caseload" means average monthly 
 number of AFDC or Minnesota family investment program-statewide 
 cases for the calendar year. 

    By July 1, 1994, the commissioner of human services shall 
 certify to the commissioner of revenue the number of children in 
 out-of-home placement in 1991 and 1992 for each county and the 
 income maintenance caseload for each county for the most recent 
 year available.  By July 1 of each subsequent year, the 
 commissioner of human services shall certify to the commissioner 
 of revenue the income maintenance caseload for each county for 
 the most recent calendar year available. 

    Subd. 3.    Aid distribution; calendar year 1995.  For 
 aid paid in calendar year 1995 only, one-half of the aid amount 
 shall be paid to each county in the same proportion that the 
 county's number of children in out-of-home placement is to the 
 number of children in out-of-home placement for all counties 
 within the state for 1991 and 1992, and one-half of the aid 
 amount shall be paid to each county in the same proportion that 
 the county's income maintenance caseload is to the income 
 maintenance caseload for all counties within the state. 

    Subd. 4.    Aid distribution; calendar year 1996 and 
 thereafter.  For aid paid in calendar year 1996 and 
 thereafter, each county shall receive the same proportion of the 
 total aid it received in the prior year, multiplied by one plus 
 the percentage change in the county's share of the statewide 
 income maintenance caseload.  If the amount appropriated does 
 not equal the aid amounts calculated under this subdivision, the 
 commissioner of revenue shall proportionately reduce or increase 
 the aid amounts so that their sum equals the amount appropriated.

    Subd. 5.    Payment.  The commissioner of revenue shall 
 pay the amounts determined under this section as provided in 
 section 477A.015. 

    Subd. 6.    Report.  On or before March 15 of the year 
 following the year in which the distributions under this section 
 are received, each county shall file with the commissioner of 
 revenue and commissioner of human services a report on prior 
 year expenditures for out-of-home placement and family 
 preservation, including expenditures under this section. 

    HIST: 1994 c 587 art 3 s 13; 1995 c 186 s 119; 1997 c 85 art 4 
 s 36 

     477A.013 Municipal government distributions. 

    Subdivision 1.    Towns.  In 1994 each town that had 
 levied for taxes payable in the prior year a local tax rate of 
 at least .008 shall receive a distribution equal to the amount 
 it received in 1993 under this section before any nonpermanent 
 reductions made under section 477A.0132.  In 1995 each town that 
 had levied for taxes payable in 1993 a local tax rate of at 
 least .008 shall receive a distribution equal to 102 percent of 
 the amount it received in 1994 under this section before any 
 increases or reductions under sections 16A.711, subdivision 5, 
 and 477A.0132.  In 1996 and subsequent years each town that had 
 levied for taxes payable in 1993 a local tax rate of at least 
 .008 shall receive a distribution equal to the amount it 
 received in the previous year under this section, adjusted for 
 inflation as provided under section 477A.03, subdivision 3. 

    Subd. 2. Repealed, 1993 c 375 art 4 s 21 

    Subd. 3. Repealed, 1993 c 375 art 4 s 21 

    Subd. 4.  Repealed, 1Sp1989 c 1 art 4 s 15 

    Subd. 5. Repealed, 1993 c 375 art 4 s 21 

    Subd. 6. Repealed, 1996 c 310 s 1 

    Subd. 7. Repealed, 1991 c 291 art 3 s 15 

    Subd. 8.    City formula aid.  In calendar year 1994 and 
 subsequent years, the formula aid for a city is equal to the 
 need increase percentage multiplied by the difference between 
 (1) the city's revenue need multiplied by its population, and 
 (2) the city's net tax capacity multiplied by the tax effort 
 rate.  No city may have a formula aid amount less than zero.  
 The need increase percentage must be the same for all cities.  

    Notwithstanding the prior sentence, in 1995 only, the need 
 increase percentage for a city shall be twice the need increase 
 percentage applicable to other cities if:  

    (1) the city, in 1992 or 1993, transferred an amount from 
 governmental funds to their sewer and water fund, and 

    (2) the amount transferred exceeded their net levy for 
 taxes payable in the year in which the transfer occurred. 

    The applicable need increase percentage or percentages must 
 be calculated by the department of revenue so that the total of 
 the aid under subdivision 9 equals the total amount available 
 for aid under section 477A.03.  

    Subd. 9.    City aid distribution.  (a) In calendar year 
 1994 and thereafter, each city shall receive an aid distribution 
 equal to the sum of (1) the city formula aid under subdivision 
 8, and (2) its city aid base. 

    (b) The percentage increase for a first class city in 
 calendar year 1995 and thereafter shall not exceed the 
 percentage increase in the sum of the aid to all cities under 
 this section in the current calendar year compared to the sum of 
 the aid to all cities in the previous year. 

    (c) The total aid for any city, except a first class city, 
 shall not exceed the sum of (1) ten percent of the city's net 
 levy for the year prior to the aid distribution plus (2) its 
 total aid in the previous year before any increases or decreases 
 under sections 16A.711, subdivision 5, and 477A.0132. 

    (d) Notwithstanding paragraph (c), in 1995 only, for cities 
 which in 1992 or 1993 transferred an amount from governmental 
 funds to their sewer and water fund in an amount greater than 
 their net levy for taxes payable in the year in which the 
 transfer occurred, the total aid shall not exceed the sum of (1) 
 20 percent of the city's net levy for the year prior to the aid 
 distribution plus (2) its total aid in the previous year before 
 any increases or decreases under sections 16A.711, subdivision 
 5, and 477A.0132. 

    HIST: 1Sp1981 c 1 art 6 s 3; 1983 c 342 art 5 s 11; 1984 c 502 
 art 4 s 3,4; 1Sp1985 c 14 art 6 s 8; 1Sp1986 c 1 art 6 s 4; 1987 
 c 268 art 5 s 11; 1988 c 719 art 5 s 76-79,84; 1989 c 277 art 2 
 s 67; 1Sp1989 c 1 art 2 s 11; art 4 s 9-12; 1990 c 480 art 7 s 
 31; 1990 c 604 art 3 s 43; art 4 s 12-14; 1991 c 2 art 8 s 6,7; 
 1991 c 291 art 3 s 9,10; 1992 c 511 art 1 s 15-17; 1993 c 375 
 art 3 s 45; art 4 s 18,19; 1Sp1993 c 6 s 32; 1994 c 416 art 1 s 
 59; 1994 c 587 art 3 s 14-16 

  477A.0131 Repealed, 1Sp1985 c 14 art 6 s 10 

     477A.0132 Aid reductions to local governments. 

    Subdivision 1.    Affected local governments.  The 
 following reductions shall be made in aids paid to the following 
 local units of government: 

    (a) For aids payable in 1996, there shall be a nonpermanent 
 reduction in aids to counties, cities, towns, and special taxing 
 districts of $16,000,000, provided that Laws 1995, chapter 264, 
 article 8, section 25, subdivision 1, is enacted; otherwise the 
 reduction is $14,000,000. 

    (b) Aid reductions required under section 16A.711, 
 subdivision 5, shall be nonpermanent reductions in aids to 
 counties, cities, towns, and special taxing districts equal to 
 the difference between the aid amounts certified to be paid and 
 the amount of the appropriation to pay the aids.  

    (c) For aids payable in 1996 there shall be a permanent 
 reduction in aids to counties of $10,000,000, provided that Laws 
 1995, chapter 264, article 8, section 16, is enacted. 

    (d) For aids payable in 1997 there shall be a permanent 
 reduction in aids to county regional rail authorities and 
 counties of $6,800,000, provided that Laws 1996, chapter 471, 
 article 3, section 45, is enacted. 

    Subd. 2.    Calculation of aid reduction.  The aid 
 reduction to each local government as provided under subdivision 
 1 will be equal to the product of the reduction percentage and 
 its reduction base.  The reduction base is defined as the 
 following: 

    (a) For subdivision 1, paragraph (a), the reduction base is 
 equal to the adjusted revenue base for 1996. 

    (b) For subdivision 1, paragraph (b), the reduction base is 
 equal to the adjusted revenue base for the year in which the aid 
 payment is to be made. 

    (c) For subdivision 1, paragraph (c), the reduction base is a 
 county's aid in calendar year 1996 under section 477A.0121.  

    (d) For subdivision 1, paragraph (d), the reduction base is a 
 county's aid in calendar year 1997 under section 477A.0121. 

    Reductions under subdivisions 1, paragraph (a), and 2, 
 paragraph (a), to any individual county, city, or town are 
 limited to an amount equal to 0.45 percent of the unit's 1994 
 adjusted net tax capacity.  For this subdivision, "adjusted net 
 tax capacity" means the political subdivision's net tax capacity 
 calculated using the method for calculating city net tax 
 capacity under section 477A.011, subdivision 20. 

    Subd. 3.    Order of aid reductions.  (a) The aid 
 reduction to a local government calculated under subdivisions 1, 
 paragraphs (a) and (c), and 2, paragraphs (a) and (c), is 
 applied to homestead and agricultural credit aid under section 
 273.1398 only. 

    (b) The aid reduction to a local government calculated 
 under subdivisions 1, paragraph (d), and 2, paragraph (d), is 
 applied to homestead and agricultural credit aid paid under 
 section 273.1398 only; the amount is first subtracted from the 
 amount paid to a county's regional rail authority, if there is 
 one, and then from the county's general homestead and 
 agricultural credit aid. 

    (c) The aid reduction to a local government as calculated 
 under other paragraphs of subdivisions 1 and 2, is first applied 
 to its local government aid under sections 477A.012 and 477A.013 
 excluding aid under section 477A.013, subdivision 5; then, if 
 necessary, to its equalization aid under section 477A.013, 
 subdivision 5; then if necessary, to its homestead and 
 agricultural credit aid under section 273.1398, subdivision 2; 
 and then, if necessary, to its disparity reduction aid under 
 section 273.1398, subdivision 3.  No aid payment may be less 
 than $0.  Aid reductions under this section in any given year 
 shall be divided equally between the July and December aid 
 payments unless specified otherwise. 

    HIST: 1991 c 291 art 3 s 11; 1992 c 511 art 1 s 18; 1994 c 416 
 art 1 s 60; 1994 c 587 art 3 s 21; 1995 c 264 art 8 s 15,17; 
 1996 c 471 art 3 s 46 

     477A.014 Commissioner's responsibilities. 

    Subdivision 1.    Calculations and payments.  The 
 commissioner of revenue shall make all necessary calculations 
 and make payments pursuant to sections 477A.012, 477A.013, 
 477A.0132, and 477A.03 directly to the affected taxing 
 authorities annually.  In addition, the commissioner shall 
 notify the authorities of their aid amounts, as well as the 
 computational factors used in making the calculations for their 
 authority, and those statewide total figures that are pertinent, 
 before August 1 of the year preceding the aid distribution 
 year.  For the purposes of this subdivision, aid is determined 
 for a city or town based on its city or town status as of June 
 30 of the year preceding the aid distribution year.  If the 
 effective date for a municipal incorporation, consolidation, 
 annexation, detachment, dissolution, or township organization is 
 on or before June 30 of the year preceding the aid distribution 
 year, such change in boundaries or form of government shall be 
 recognized for aid determinations for the aid distribution 
 year.  If the effective date for a municipal incorporation, 
 consolidation, annexation, detachment, dissolution, or township 
 organization is after June 30 of the year preceding the aid 
 distribution year, such change in boundaries or form of 
 government shall not be recognized for aid determinations until 
 the following year.  

    Subd. 1a. Repealed, 1996 c 310 s 1 

    Subd. 2.    Errors.  A taxing authority may object to 
 the commissioner of revenue with respect to the amount of the 
 distribution it has been certified to receive pursuant to 
 subdivision 1.  No objection shall be raised later than 60 days 
 after the taxing authority has received notice from the 
 commissioner of the amount which it has been certified to 
 receive.  

    Subd. 3.    Aid amount correction.  If, due to an error 
 in the factors used to calculate a taxing authority's aid 
 pursuant to section 477A.012 or 477A.013 the amount indicated in 
 the certification of the commissioner to the taxing authority 
 for a year is less than the amount to which it is entitled 
 pursuant to this section, the commissioner of revenue shall 
 additionally distribute the amount necessary to make the full 
 correct distribution to the taxing authority.  The additional 
 distribution shall be paid from the general fund and shall not 
 diminish the distributions made to other taxing authorities 
 under this section.  

    Subd. 4.    Costs.  The director of the office of 
 strategic and long-range planning shall annually bill the 
 commissioner of revenue for one-half of the costs incurred by 
 the state demographer in the preparation of materials required 
 by section 4A.02.  The state auditor shall bill the commissioner 
 of revenue for the costs of the services provided by the 
 government information division and the parts of the 
 constitutional office that are related to the government 
 information function, not to exceed $217,000 in fiscal year 1992 
 and $217,000 in fiscal year 1993 and thereafter.  The 
 commissioner of administration shall bill the commissioner of 
 revenue for the costs of the local government records program 
 and the intergovernmental information systems activity, not to 
 exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 
 1993 and thereafter.  The commissioner of employee relations 
 shall bill the commissioner of revenue for the costs of 
 administering the local government pay equity function, not to 
 exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year 
 1993 and thereafter.  

    Subd. 5.    Deduction from aid payments.  The 
 commissioner of revenue shall deduct the amounts certified under 
 subdivision 4 from the aid payments to be made to appropriate 
 local units of government in the next aid payment year.  

    HIST: 1Sp1981 c 1 art 6 s 4; 1983 c 342 art 5 s 13; 1Sp1985 c 
 13 s 359; 1987 c 186 s 15; 1Sp1989 c 1 art 4 s 13; 1991 c 2 art 
 8 s 10; 1991 c 291 art 1 s 50,51; art 3 s 12,13; art 12 s 27; 
 1991 c 345 art 2 s 66; 1992 c 511 art 1 s 25; 1994 c 416 art 1 s 
 61; 1994 c 587 art 3 s 17 

     477A.015 Payment dates. 

    The commissioner of revenue shall make the payments of 
 local government aid to affected taxing authorities in two 
 installments on July 20 and December 26 annually.  

    The commissioner may pay all or part of the payment due on 
 December 26 at any time after August 15 upon the request of a 
 city that requests such payment as being necessary for meeting 
 its cash flow needs. 

    HIST: 1Sp1981 c 3 s 11; 1Sp1986 c 1 art 6 s 5; 1988 c 719 art 
 6 s 18; 1992 c 603 s 15 

     477A.016 New taxes prohibited. 

    No county, city, town or other taxing authority shall 
 increase a present tax or impose a new tax on sales or income.  

    HIST: 1Sp1981 c 1 art 6 s 5 

     477A.017 Uniform financial accounting and reporting 
  system. 

    Subdivision 1.    Purpose.  Sections 477A.011 to 477A.03 
 are designed to provide property tax relief to local units of 
 government.  In order for the legislature to determine the 
 amounts of relief necessary each year, the legislature must have 
 uniform and current financial information from the governmental 
 units which receive aid distributions.  This section is intended 
 to provide that information.  

    Subd. 2.    State auditor's duties.  The state auditor 
 shall prescribe uniform financial accounting and reporting 
 standards in conformity with national standards to be applicable 
 to cities and towns of more than 2,500 population and uniform 
 reporting standards to be applicable to cities of less than 
 2,500 population.  

    Subd. 3.    Conformity.  Other law to the contrary 
 notwithstanding, in order to receive distributions under 
 sections 477A.011 to 477A.03, counties and cities must conform 
 to the standards set in subdivision 2 in making all financial 
 reports required to be made to the state auditor after June 30, 
 1984.  

    HIST: 1983 c 342 art 5 s 14; 1992 c 592 s 15 

   477A.018 Repealed, 1989 c 277 art 1 s 35 

*   NOTE:  See section 469.190

   477A.019 Repealed, 1989 c 277 art 1 s 35 

*   NOTE:  See section 469.190

  477A.02 MS 1978 Expired 

     477A.03 Appropriation. 

    Subdivision 1.  Repealed, 1994 c 587 art 3 s 21 

    Subd. 2.  MS 1983 Supp Repealed, 1984 c 502 art 4 s 8 

    Subd. 2.    Annual appropriation.  A sum sufficient to 
 discharge the duties imposed by sections 477A.011 to 477A.014 is 
 annually appropriated from the general fund to the commissioner 
 of revenue.  For aids payable in 1996 and thereafter, the total 
 aids paid under sections 477A.013, subdivision 9, and 477A.0122 
 are the amounts certified to be paid in the previous year, 
 adjusted for inflation as provided under subdivision 3.  Aid 
 payments to counties under section 477A.0121 are limited to 
 $20,265,000 in 1996.  Aid payments to counties under section 
 477A.0121 are limited to $27,571,625 in 1997.  For aid payable 
 in 1998 and thereafter, the total aids paid under section 
 477A.0121 are the amounts certified to be paid in the previous 
 year, adjusted for inflation as provided under subdivision 3. 

    Subd. 3.    Inflation adjustment.  In 1996 and 
 thereafter, the amount paid under each section to be adjusted 
 for inflation shall be increased by an amount equal to: 

    (a) the amount certified to be paid under that section in 
 the previous year multiplied by 

    (b) one plus the percentage increase in the implicit price 
 deflator for government consumption expenditures and gross 
 investment for state and local governments prepared by the 
 Bureau of Economic Analysis of the United States Department of 
 Commerce for the 12-month period ending March 31 of the previous 
 year.  The percentage increase used in this subdivision shall be 
 no less than 2.5 percent and no greater than 5.0 percent. 

    HIST: 1975 c 437 art 3 s 7; 1977 c 423 art 6 s 12; 1979 c 303 
 art 6 s 4; 1Sp1981 c 1 art 6 s 6; 3Sp1981 c 2 art 4 s 12; 1983 c 
 342 art 5 s 15; 1990 c 604 art 4 s 15; 1991 c 291 art 3 s 14; 
 1992 c 511 art 1 s 19; 1993 c 375 art 4 s 20; 1994 c 587 art 3 s 
 18; 1995 c 264 art 8 s 16; 1996 c 471 art 3 s 47; 1997 c 231 art 
 2 s 69 

  477A.04 Repealed, 1985 c 300 s 30 

     477A.05 Local performance aid. 

    Subdivision 1.    Qualification.  By May 25 of each 
 year, the commissioner shall send a local performance aid 
 qualification form to each county and city in the state.  
 Jurisdictions that are eligible to receive the aid must return 
 the completed form by June 30 in order to receive aid in the 
 following calendar year.  For each determinator specified in 
 subdivision 2, the form shall have a space for the jurisdiction 
 to indicate that it has satisfied the conditions of the 
 determinator.  For counties, the form must be signed by the 
 chair of the county board.  For cities, the form must be signed 
 by the mayor, if the city has a mayor, and the chair of the city 
 council.  Applications may be filed jointly by jurisdictions 
 planning to spend the aid jointly. 

    Subd. 2.    Eligibility determinator.  For calendar year 
 1998 and subsequent calendar years, a jurisdiction is eligible 
 to receive local performance aid if the jurisdiction affirms 
 that (1) the aid will result in a reduction in property taxes at 
 least equal to the amount of aid received, and (2) the 
 jurisdiction will spend the aid on programs for which it has 
 developed a system of performance measures and that these 
 measures will allow for the measurement of continuous 
 improvement and will be regularly compiled and presented to the 
 county board or the city council at least once a year.  The 
 jurisdiction must identify the program or programs that are to 
 be funded with the aid.  A jurisdiction is eligible for aid if 
 it affirms that it is in the process of developing and 
 implementing a system of performance measures for the program or 
 programs for which the aid is being sought; however, aid amounts 
 under this section may not be spent on the program or programs 
 until the performance measurement system has been instituted, 
 unless the aid is being used to establish the performance 
 measurement system. 

    Subd. 3.    Determination of aid amount.  The 
 commissioner shall sum the populations of all jurisdictions that 
 have met the conditions specified in subdivision 2.  The 
 commissioner shall determine a per capita aid amount by dividing 
 the aggregate aid available under subdivision 5 by the sum of 
 the populations for all qualifying jurisdictions, separately for 
 counties and cities.  Each jurisdiction shall then be eligible 
 for aid equal to the jurisdictions's population times the per 
 capita aid amount.  For purposes of this subdivision, population 
 means the most recent population established under section 
 477A.011, subdivision 3, in the year in which the aid is 
 determined. 

    Subd. 4.    Notification and payment.  Jurisdictions 
 shall be notified of their aid under this section at the same 
 time as the notification for aid under section 477A.014, 
 subdivision 1.  Payments of aid under this section shall be made 
 on the dates prescribed in section 477A.015. 

    Subd. 5.    Appropriation.  (a) For payments to counties 
 under this section, there is annually appropriated from the 
 general fund to the commissioner of revenue an amount equal to 
 the sum of $558,625 plus the amount by which county aids were 
 reduced under Laws 1996, chapter 471, article 3, section 49, 
 adjusted for inflation as provided under section 477A.03, 
 subdivision 3.  For payments to cities under this section, there 
 is annually appropriated from the general fund to the 
 commissioner of revenue an amount equal to the sum of $441,735 
 plus the amount by which city aids were reduced under Laws 1996, 
 chapter 471, article 3, section 49, adjusted for inflation as 
 provided under section 477A.03, subdivision 3. 

    (b) For aids payable in 1998 under this section, an 
 additional amount of $560,000 for counties and $440,000 for 
 cities is appropriated from the general fund to the commissioner 
 of revenue. 

    HIST: 1996 c 471 art 3 s 48; 1997 c 231 art 11 s 7 

     477A.11 Natural resources lands, payments in lieu; 
  definitions. 

    Subdivision 1.    Terms.  For the purpose of Laws 1979, 
 Chapter 303, Article 8, Sections 1 to 5, the terms defined in 
 this section have the meanings given them. 

    Subd. 2.    Commissioner.  "Commissioner" means the 
 commissioner of natural resources.  

    Subd. 3.    Acquired natural resources land.  "Acquired 
 natural resources land" means any land presently administered by 
 the commissioner in which the state acquired by purchase, 
 condemnation, or gift, a fee title interest in lands which were 
 previously privately owned.  

    Subd. 4.    Other natural resources land.  "Other 
 natural resources land" means:  

    (1) any other land presently owned in fee title by the 
 state and administered by the commissioner, or any tax-forfeited 
 land, other than platted lots within a city, which is owned by 
 the state and administered by the commissioner or by the county 
 in which it is located; and 

    (2) land leased by the state from the United States of 
 America through the United States Secretary of Agriculture 
 pursuant to Title III of the Bankhead Jones Farm Tenant Act, 
 which land is commonly referred to as land utilization project 
 land that is administered by the commissioner. 

    HIST: 1979 c 303 art 8 s 1; 1990 c 604 art 4 s 16 

     477A.12 Annual appropriations; lands eligible; 
  certification of acreage. 

    (a) There is annually appropriated to the commissioner of 
 natural resources from the general fund for payment to counties 
 within the state an amount equal to: 

    (1) for acquired natural resources land, $3 multiplied by 
 the total number of acres of acquired natural resources land or, 
 beginning July 1, 1996, at the county's option three-fourths of 
 one percent of the appraised value of all acquired natural 
 resources land in the county, whichever is greater; 

    (2) 75 cents multiplied by the number of acres of 
 county-administered other natural resources land; and 

    (3) 37.5 cents multiplied by the number of acres of 
 commissioner-administered other natural resources land located 
 in each county as of July 1 of each year. 

    (b) Lands for which payments in lieu are made pursuant to 
 section 97A.061, subdivision 3, and Laws 1973, chapter 567, 
 shall not be eligible for payments under this section.  Each 
 county auditor shall certify to the department of natural 
 resources during July of each year the number of acres of 
 county-administered other natural resources land within the 
 county.  The department of natural resources may, in addition to 
 the certification of acreage, require descriptive lists of land 
 so certified.  The commissioner of natural resources shall 
 determine and certify the number of acres of acquired natural 
 resources land and commissioner-administered natural resources 
 land within each county. 

    (c) For the purposes of this section, the appraised value 
 of acquired natural resources land is the purchase price for the 
 first five years after acquisition.  The appraised value of 
 acquired natural resources land received as a donation is the 
 value determined for the commissioner of natural resources by a 
 licensed appraiser, or the county assessor's estimated market 
 value if no appraisal is done.  The appraised value must be 
 determined by the county assessor every five years after the 
 land is acquired. 

    HIST: 1979 c 303 art 8 s 2; 1986 c 386 art 4 s 29; 1986 c 444; 
 1994 c 632 art 2 s 54; 1995 c 220 s 125 

     477A.13 Time of payment, deductions. 

    Payments to the counties shall be made from the general 
 fund during the month of July of the year next following 
 certification.  There shall be deducted from amounts paid any 
 amounts paid to a county or township during the preceding year 
 pursuant to sections 97A.061, subdivisions 1 and 2, and 272.68, 
 subdivision 3, with respect to the lands certified pursuant to 
 section 477A.12. 

    HIST: 1979 c 303 art 8 s 3; 1Sp1981 c 3 s 12; 1984 c 502 art 3 
 s 26; 1986 c 386 art 4 s 30; 1990 c 604 art 4 s 17; 1993 c 13 
 art 2 s 16 

     477A.14 Use of funds. 

    Forty percent of the total payment to the county shall be 
 deposited in the county general revenue fund to be used to 
 provide property tax levy reduction.  The remainder shall be 
 distributed by the county in the following priority:  

    (a) 37.5 cents for each acre of county-administered other 
 natural resources land shall be deposited in a resource 
 development fund to be created within the county treasury for 
 use in resource development, forest management, game and fish 
 habitat improvement, and recreational development and 
 maintenance of county-administered other natural resources 
 land.  Any county receiving less than $5,000 annually for the 
 resource development fund may elect to deposit that amount in 
 the county general revenue fund; 

    (b) From the funds remaining, within 30 days of receipt of 
 the payment to the county, the county treasurer shall pay each 
 organized township 30 cents per acre of acquired natural 
 resources land and 7.5 cents per acre of other natural resources 
 land located within its boundaries.  Payments for natural 
 resources lands not located in an organized township shall be 
 deposited in the county general revenue fund.  Payments to 
 counties and townships pursuant to this paragraph shall be used 
 to provide property tax levy reduction.  Provided that, if the 
 total payment to the county pursuant to section 477A.12 is not 
 sufficient to fully fund the distribution provided for in this 
 clause, the amount available shall be distributed to each 
 township and the county general revenue fund on a pro rata 
 basis; and 

    (c) Any remaining funds shall be deposited in the county 
 general revenue fund.  Provided that, if the distribution to the 
 county general revenue fund exceeds $35,000, the excess shall be 
 used to provide property tax levy reduction. 

    HIST: 1979 c 303 art 8 s 4; 1993 c 375 art 17 s 20; 1994 c 632 
 art 2 s 55; 1995 c 220 s 126 

     477A.15 Taconite aid reimbursement. 

    Any school district in which is located property which had 
 been entitled to a reduction of tax pursuant to Minnesota 
 Statutes 1978, section 273.135, subdivision 2, clause (c), shall 
 receive in 1981 and subsequent years an amount equal to the 
 amount it received in 1980 pursuant to Minnesota Statutes 1978, 
 section 298.28, subdivision 1, clause (3)(b).  Payments shall be 
 made pursuant to this section by the commissioner of revenue to 
 the taxing jurisdictions on the date in each calendar year when 
 the first installment is paid under section 477A.015.  

    HIST: 1980 c 607 art 7 s 6; 1994 c 416 art 1 s 62