2007 Minnesota Statutes

298.282 DISTRIBUTION OF TACONITE MUNICIPAL AID ACCOUNT; TACONITE
MUNICIPAL AID; PAYMENT.
    Subdivision 1. Distribution of taconite municipal aid account. The amount deposited with
the county as provided in section 298.28, subdivision 3, must be distributed as provided by this
section among the municipalities comprising a tax relief area under section 273.134, paragraph
(b) , each being referred to in this section as a qualifying municipality.
    Subd. 2. Commissioner's calculation and certification of municipal distributions. (a)
Each year following the final determination of the amount of taxes payable under section 298.24,
the commissioner of revenue shall determine the amount in the taconite municipal aid account
as of July 1 of that year and the amount to be distributed to each qualifying municipality during
the year. The amount to be distributed to each qualifying municipality shall be determined by
determining an index for each qualifying municipality by subtracting its local effort tax rate,
multiplied by its equalized gross tax capacity, from its fiscal need factor. For the purposes of this
subdivision, the following terms have the meanings given them herein. A municipality's "local
effort tax rate" means its fiscal need factor per capita divided by $21 per capita for each one
percent of the gross local tax rate or $17 per capita for each one percent of the net local tax rate
for the first $350 of its fiscal need factor per capita; plus its fiscal need factor per capita divided
by $18 per capita for each one percent of the gross local tax rate or $15 per capita for each one
percent of the net local tax rate on that part of its fiscal need factor per capita, if any, in excess of
$350. In no case shall a municipality's local effort tax rate be less than a gross local tax rate of
6.56 percent or a net local tax rate of 8.16 percent. A municipality's "equalized gross tax capacity"
means its previous year tax capacity, less the tax capacity in any tax increment district, divided by
the municipality's aggregate sales ratio covering the period ending two years prior to the year of
aid distribution. A municipality's "fiscal need factor" means the three-year average of the sum
of its municipal levy, taconite aids received under section 298.28, subdivisions 2, 11, paragraph
(b) , and this section and its local government aid distribution amount, for taxes payable and
distribution amounts receivable in the three years immediately preceding the aid distribution year.
The ratio of the resulting index for each qualifying municipality to the sum of all qualifying
municipalities' indexes shall be multiplied by the total amount in the taconite municipal aid
account less the amount distributed pursuant to subdivision 5.
(b) If the distribution under this section, sections 273.138, 298.26 and 298.28, and chapter
477A, to any municipality would exceed that municipality's levy for that year, the amount in
excess of the levy for that year shall reduce the amount distributed to the municipality under
this section and this excess amount shall be distributed to the other qualifying municipalities in
the same manner as the distribution made pursuant to subdivision 2, except that the qualifying
municipality receiving an initial distribution when added to that received pursuant to sections
273.138, 298.26, 298.28, and chapter 477A in excess of the qualifying municipality's levy, shall
not receive a distribution nor shall its index be used in computing the distribution pursuant to
this clause. The distributions to be received in the year in which the taxes are payable shall be
compared to the levy for that same year. Upon completion of the determination, the commissioner
of revenue shall certify to the chief clerical officer of each qualifying municipality the amount
which will be distributed to the municipality from the taconite municipal aid account that year.
    Subd. 3. Amounts in excess or less than certified amount. If the amount certified by
the commissioner of revenue as distributable to any qualifying municipality is greater than
the amount previously estimated to have been distributable to such qualifying municipality
in such year, the excess distributed to such municipality shall be held in a separate fund by
the qualifying municipality and shall not be expended until the succeeding calendar year.
If the amount distributable to any qualifying municipality, after final determination by the
commissioner of revenue is less than the amount estimated to have been distributable to such
qualifying municipality, such municipality may issue certificates of indebtedness in the amount of
the shortage and may include in its next tax levy an amount sufficient to pay such certificates
of indebtedness and interest thereon or, if no certificates were issued, an amount equal to such
shortage.
    Subd. 4. County auditor; payments to municipalities. On or before September 15 of
each year, the county auditor shall issue a warrant in favor of the treasurer of each qualifying
municipality in the amount determined by the commissioner of revenue to be due and payable
to such qualifying municipality in such year.
    Subd. 5. County auditor; payments to replace revenue loss. The county auditor shall
annually on September 15 make a payment from the taconite municipal aid fund to cities and
towns for the purpose of replacing the revenue loss to them resulting from Laws 1975, chapter
437, article XI, section 7. The amount of aid to be paid annually to each city and town is the
amount they were entitled to receive for 1975 under the provisions of Minnesota Statutes 1974,
section 298.32.
History: Ex1971 c 31 art 30 s 6; 1973 c 492 s 14; 1973 c 582 s 3; 1973 c 631 s 7-9; 1975 c
46 s 10; 1976 c 328 s 1,2; 1977 c 423 art 10 s 17,18; 1978 c 767 s 35; 1984 c 522 s 16; 1Sp1985 c
14 art 10 s 19-21; 1986 c 441 s 13; 1986 c 444; 1987 c 384 art 2 s 1; 1988 c 719 art 5 s 84; 1989 c
277 art 4 s 28; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; art 5 s 21,22; 1Sp2001 c 5 art 6 s 29