2004 Minnesota Statutes

     414.067 Apportioned assets and obligations.

    Subdivision 1.    Township or municipality divided.  
 Whenever the director divides an existing governmental unit, the 
 director may apportion the property and obligations between the 
 governmental unit adding territory and the governmental unit 
 from which the territory was obtained.  The apportionment shall 
 be made in a just and equitable manner having in view the value 
 of the existing township or municipal property located in the 
 area to be added, the assets, value, and location of all the 
 taxable property in the existing township or municipality, the 
 indebtedness, the taxes due and delinquent, other revenue 
 accrued but not paid to the existing township or municipality 
 and the ability of any remainder of the township or municipality 
 to function as an effective governmental unit.  The order shall 
 not relieve any property from any tax liability for payment for 
 any bonded obligation, but the taxable property in the new 
 municipality may be made primarily liable thereon. 

    Subd. 2.    Entire town or consolidated cities.  
 When an entire township is annexed by an existing municipality, 
 or an entire township is incorporated into a new municipality, 
 or a municipality is consolidated into a new municipality, all 
 money, claims, or properties, including real estate owned, held, 
 or possessed by the annexed, incorporated township or 
 municipality, and any proceeds or taxes levied by such town or 
 municipality, collected or uncollected, shall become and be the 
 property of the new or annexing municipality with full power and 
 authority to use and dispose of the same for public purposes as 
 the council or new annexing municipality may deem best, subject 
 to the rights of creditors.  Any taxes levied to pay bonded 
 indebtedness of a town or former municipality annexed to an 
 existing municipality or incorporated or consolidated into a new 
 municipality shall be borne only by that taxable property within 
 the boundaries of the former town or municipality, provided, 
 however, the units of government concerned may by resolution of 
 their governing bodies agree that taxes levied to pay the 
 indebtedness must be levied upon all taxable property within the 
 boundaries of the new municipality.  Notwithstanding that the 
 bonded indebtedness may be payable from taxes levied on only a 
 portion of the taxable property in the new or surviving 
 municipality, the full faith and credit of the new or surviving 
 municipality must secure any outstanding bonded indebtedness to 
 which the full faith and credit of the annexed or consolidated 
 township or municipality was pledged.  If any general funds of 
 the new or surviving municipality are used to pay debt service 
 on the bonded indebtedness, the general funds must be 
 reimbursed, with or without interest, from taxes levied on 
 taxable property in the former township or municipality. 

    Subd. 3.    Revision of tax records; redistribution of 
 levies.  In an apportionment made under this section, the 
 director may order the county auditor to revise tax records and 
 respread levies at any time prior to December 15 or order the 
 county treasurer to redistribute taxes levied and receivable. 

    HIST: 1969 c 1146 s 17; 1971 c 62 s 1; 1973 c 621 s 7; 1975 c 
 271 s 6; 1978 c 705 s 30; 1997 c 219 s 4; 2002 c 223 s 21,22