2002 Minnesota 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 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