Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

103B.245 SPECIAL TAX DISTRICT; LOCAL GOVERNMENT UNIT.
    Subdivision 1. Watershed management tax district. (a) Any local government unit
planning for water management under sections 103B.231 and 103B.235 may establish a watershed
management tax district in the territory within the watershed, for the purpose of paying the costs
of the planning required under sections 103B.231 and 103B.235.
(b) Any local government unit which has part of its territory within a watershed for which
a plan has been adopted in accordance with section 103B.231 and which has a local water
management plan adopted in accordance with section 103B.235 may establish a watershed
management tax district in the territory within the watershed or a subwatershed unit in the
watershed, for the purpose of paying capital costs of the water management facilities described
in the capital improvement program of the plans and for the purpose of paying for normal and
routine maintenance of the facilities.
(c) A county or counties required by section 103B.231, subdivision 3, to prepare, adopt,
and implement a watershed plan shall apportion the costs of planning, capital improvements,
and maintenance proportionate to benefits. The county may apportion the costs among the
subwatershed units in the watershed, or among the statutory and home rule charter cities and
towns having territory in the watershed, and for this purpose may establish more than one
watershed management tax district in the watershed.
(d) Notification of new watershed management tax districts established under this
subdivision must be made to the county auditor by July 1 in order to be effective for taxes payable
in the following year.
    Subd. 2. Procedure. The district shall be established by ordinance adopted after a hearing.
Notice of the time, place, and purpose of the hearing shall be published for two successive weeks
in the official newspaper of the local government unit, ending at least seven days before the
day of the hearing. The ordinance shall describe with particularity the territory or area to be
included in the district. After adoption, the ordinance shall be filed with the county auditor and
county recorder. The district may be dissolved by following the procedures prescribed for the
establishment of the district.
    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local government unit
may annually levy a tax on all taxable property in the district for the purposes for which the
tax district is established. The tax may not exceed 0.02418 percent of market value on taxable
property located in rural towns other than urban towns, unless allowed by resolution of the town
electors. The proceeds of the tax shall be paid into a fund reserved for these purposes. Any
proceeds remaining in the reserve fund at the time the tax is terminated or the district is dissolved
shall be transferred and irrevocably pledged to the debt service fund of the local unit to be used
solely to reduce tax levies for bonded indebtedness of taxable property in the district.
    Subd. 4. Bonds. After adoption of the ordinance under subdivision 2, and after a contract
for the construction of all or part of an improvement has been entered into or the work has been
ordered done by day labor, the local government unit may issue obligations in the amount it
deems necessary to pay in whole or in part the capital cost incurred and estimated to be incurred
in making the project. The obligations shall be payable out of the proceeds of the tax levied
pursuant to subdivision 3. The local unit may by resolution of its governing body adopted prior to
the sale of obligations pledge the full faith, credit and taxing power of the local unit to assure
payment of the principal and interest in the event the proceeds of the tax levy in the district are
insufficient to pay principal and interest. The amount of any taxes which are required to be levied
outside of the territory of the tax district or taken from the general funds of the local unit to pay
principal and interest on the obligations shall be reimbursed to the local unit from taxes levied
within the territory of the tax district. Obligations shall be issued in accordance with chapter 475,
except that an election is not required and the amount of any obligations shall not be included
in determining the net indebtedness of the local unit under the provisions of any law or charter
limiting indebtedness.
History: 1990 c 391 art 2 s 14; 1990 c 601 s 23; 1994 c 416 art 1 s 1; 1995 c 184 s 13,14