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Minnesota Legislature

Office of the Revisor of Statutes

126C.48 LEVY PROCEDURE.
    Subdivision 1. Certify levy limits. (a) By September 8, the commissioner shall notify the
school districts of their levy limits. The commissioner shall certify to the county auditors the levy
limits for all districts headquartered in the respective counties together with adjustments for errors
in levies not penalized pursuant to subdivision 3, as well as adjustments to final pupil unit counts.
A district may require the commissioner to review the certification and to present evidence in
support of modification of the certification.
The county auditor shall reduce levies for any excess of levies over levy limitations pursuant
to section 275.16. Such reduction in excess levies may, at the discretion of the school district,
be spread over two calendar years.
(b) As part of the commissioner's certification under paragraph (a), the commissioner shall
certify the amount by which a district's levy for its general fund was reduced under subdivision 8.
    Subd. 2. Notice to commissioner; forms. By October 7 of each year each district must
notify the commissioner of the proposed levies in compliance with the levy limitations of this
chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and 136D. A school district
that has reached an agreement with its home county auditor to extend the date of certification
of its proposed levy under section 275.065, subdivision 1, must submit its notice of proposed
levies to the commissioner no later than October 10 of each year. By January 7 of each year
each district must notify the commissioner of the final levies certified. The commissioner shall
prescribe the form of these notifications and may request any additional information necessary
to compute certified levy amounts.
    Subd. 3. Adjustments. If any district levy is found to be excessive as a result of a decision
of the Tax Court or a redetermination by the commissioner of revenue under section 127A.48,
subdivisions 7 to 16
, or for any other reason, the amount of the excess shall be deducted from the
levy certified in the next year for the same purpose. If no levy is certified in the next year for the
same purpose or if the amount certified is less than the amount of the excess, the excess must be
deducted from that levy and the general fund levy certified pursuant to chapters 122A, 123A,
123B, 124D, and 126C. If the amount of any aid would have been increased in a prior year as a
result of a decision of the Tax Court or a redetermination by the commissioner of revenue, the
amount of the increase shall be added to the amount of current aid for the same purposes.
    Subd. 4. Applicability. Notwithstanding any other charter provision, general or special laws
to the contrary, every school district in the state shall abide by the terms and provisions of this
section and chapters 120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A.
    Subd. 5. Estimates. The computation of levy limitations pursuant to this chapter and
chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, 136C, and 136D shall be based on
estimates where necessary. If as a result of using estimates for these computations the amount of
any levy is different from the amount which could actually have been levied if actual data had
been available, levy limitations in the first year when the actual data is known shall be adjusted
to reflect for this difference. The amount of any adjustment to levy limitations pursuant to this
subdivision shall be recognized as revenue in the school year when the levy for which the levy
limitation is so adjusted is recognized as revenue.
    Subd. 6. Adjustments for law changes. Whenever a change enacted in law changes the levy
authority for a school district or an intermediate school district for a fiscal year after the levy for
that fiscal year has been certified by the district under section 275.07, the department must adjust
the next levy certified by the district by the amount of the change in levy authority for that fiscal
year resulting from the change. Notwithstanding section 123B.75, the entire amount of the levy
adjustment must be recognized as revenue in the fiscal year the levy is certified, if sufficient levy
resources are available under generally accepted accounting principles in the district fund where
the adjustment is to occur. Districts that do not have sufficient levy resources available in the fund
where the adjustment is to occur must recognize in the fiscal year the levy is certified an amount
equal to the levy resources available. The remaining adjustment amount must be recognized as
revenue in the fiscal year after the levy is certified.
    Subd. 7. Reporting. For each tax settlement, the county auditor shall report to each school
district by fund, the district tax settlement revenue defined in section 123B.75, subdivision 5,
paragraph (a), on the form specified in section 276.10. The county auditor shall send to the district
a copy of the spread levy report specified in section 275.124.
    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies pursuant to
subdivision 1 must be made prior to the reductions in clause (2).
(2) Notwithstanding any other law to the contrary, districts that have revenue pursuant to
sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed under sections 298.26;
298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 298.39; 298.391 to 298.396;
298.405; 477A.15; and any law imposing a tax upon severed mineral values must reduce the
levies authorized by this chapter and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and
127A by 95 percent of the previous year's revenue specified under this clause.
(3) The amount of any voter approved referendum, facilities down payment, and debt levies
shall not be reduced by more than 50 percent under this subdivision. In administering this
paragraph, the commissioner shall first reduce the nonvoter approved levies of a district; then,
if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2)
remains, the commissioner shall reduce any voter approved referendum levies authorized under
section 126C.17; then, if any payments, severed mineral value tax revenue or recognized revenue
under paragraph (2) remains, the commissioner shall reduce any voter approved facilities down
payment levies authorized under section 123B.63 and then, if any payments, severed mineral
value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
reduce any voter approved debt levies.
(4) Before computing the reduction pursuant to this subdivision of the health and safety
levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner shall
ascertain from each affected school district the amount it proposes to levy under each section or
subdivision. The reduction shall be computed on the basis of the amount so ascertained.
(5) To the extent the levy reduction calculated under paragraph (2) exceeds the limitation
in paragraph (3), an amount equal to the excess must be distributed from the school district's
distribution under sections 298.225, 298.28, and 477A.15 in the following year to the cities and
townships within the school district in the proportion that their taxable net tax capacity within the
school district bears to the taxable net tax capacity of the school district for property taxes payable
in the year prior to distribution. No city or township shall receive a distribution greater than its
levy for taxes payable in the year prior to distribution. The commissioner of revenue shall certify
the distributions of cities and towns under this paragraph to the county auditor by September 30
of the year preceding distribution. The county auditor shall reduce the proposed and final levies of
cities and towns receiving distributions by the amount of their distribution. Distributions to the
cities and towns shall be made at the times provided under section 298.27.
History: Ex1971 c 31 art 20 s 8; 1973 c 683 s 19; 1975 c 432 s 75,78,80,81; 1976 c 2 s 97;
1976 c 271 s 87,90; 1977 c 447 art 1 s 20; 1978 c 764 s 106,109,111; 1979 c 334 art 1 s 22,24;
art 2 s 13; 1980 c 509 s 112; 1980 c 607 art 7 s 9; 1980 c 609 art 1 s 13; art 4 s 16; 1981 c 358
art 1 s 39,42; 1986 c 441 s 1; 1986 c 444; 1Sp1986 c 1 art 4 s 27; 1Sp1986 c 3 art 2 s 36; 1987 c
268 art 7 s 41,43; art 9 s 8; 1987 c 398 art 7 s 39; 1Sp1987 c 4 art 1 s 5; 1988 c 486 s 87,89;
1988 c 719 art 5 s 84; 1989 c 222 s 35; 1989 c 329 art 13 s 13,20; 1Sp1989 c 1 art 2 s 11; art 6 s
10,11; 1990 c 604 art 3 s 29; 1991 c 130 s 31,32; 1992 c 499 art 12 s 25,29; 1992 c 511 art 3 s 8;
1995 c 212 art 4 s 64; 1995 c 264 art 3 s 1,2; 1Sp1995 c 3 art 1 s 18,19; art 16 s 13; 1996 c 412
art 1 s 12; 1997 c 7 art 1 s 64; 1997 c 251 s 18; 1Sp1997 c 4 art 1 s 32; 1998 c 389 art 10 s 1;
1998 c 397 art 7 s 117-122,164; art 11 s 3; 1999 c 86 art 1 s 35; 2000 c 254 s 45,46; 1Sp2001 c 5
art 6 s 3; 2002 c 377 art 8 s 2; 1Sp2003 c 9 art 5 s 13; 2004 c 228 art 3 s 1; 1Sp2005 c 5 art
1 s 38,39; 2007 c 146 art 5 s 8; art 11 s 17