Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

174.242 Property tax replacement aid.

Subdivision 1. Report of property tax revenues. By July 31, 2001, each system receiving assistance under section 174.24 must report the amount of its local share operating revenues for 2001 that are derived from property taxes to the commissioner of transportation. The reported amounts must include property tax revenues used to fund transit services in excess of the services provided under contract with the department of transportation. The reports shall separately identify the property tax revenues by the taxing jurisdiction from which the revenues were received. All general fund revenues provided by a local government unit in Minnesota shall be considered property tax revenues, except for revenues received from school districts. The portion of the St. Cloud metropolitan area transit commission's homestead and agricultural credit aid attributable to transit operating expenses shall be considered property tax revenues.

Subd. 2. Verification by commissioner. The commissioner shall examine the reports submitted under subdivision 1, and adjust the revenue amounts reported if they are determined to be in error. The commissioner may require a system to provide whatever information is necessary to assist in determining the accuracy of the reported amounts.

Subd. 3. Replacement aid payments. Each system shall receive property tax replacement aid payments in calendar years 2002-2003 equal to (i) the proportion that the system's property tax amount determined under subdivision 2 is of the total amount determined under subdivision 2 for all systems, times (ii) the projected total revenues for the greater Minnesota transit fund for the full fiscal year that begins in the calendar year in which the aid is payable. A system's property tax replacement aid for 2002 under this section may not exceed 106 percent of its 2001 property tax amount determined under subdivision 2. A system's property tax replacement aid for 2003 under this section may not exceed 106 percent of its 2002 property tax replacement aid under this section. The commissioner must certify the replacement aid amounts for calendar years 2002-2003 to the commissioner of revenue by system and by taxing jurisdiction by August 15 of the preceding year. The commissioner of revenue shall deduct the certified amounts from each jurisdiction's levy limit. Replacement aid amounts for the St. Cloud metropolitan area transit commission and the Duluth transit authority shall be deducted from the levy limit for each of these jurisdictions as specified in chapter 458A. The annual payments to each system shall be made in two equal installments on July 20 and November 20.

Subd. 4. Report to the legislature. By January 1, 2003, the commissioner of transportation, in consultation with the commissioner of revenue, shall make a report to the legislature containing recommendations for integrating the grant program under section 174.24 with the property tax replacement aid program under this section. The recommendations shall attempt to restructure the method of financing transit operations in greater Minnesota in such a way as to minimize reliance on property taxes, while allowing the necessary flexibility to accommodate growth in service demands.

HIST: 1Sp2001 c 5 art 3 s 10

Official Publication of the State of Minnesota
Revisor of Statutes