1998 Minnesota Statutes

     275.71 Levy limits. 

    Subdivision 1.    Limit on levies.  Notwithstanding any 
 other provision of law or municipal charter to the contrary 
 which authorize ad valorem taxes in excess of the limits 
 established by sections 275.70 to 275.74, the provision of this 
 section shall apply to local governmental units for all purposes 
 other than those for which special levies and special 
 assessments are made. 

    Subd. 2.    Levy limit base.  (a) The levy limit base 
 for a local governmental unit for taxes levied in 1997 shall be 
 equal to the sum of: 

    (1) the amount the local governmental unit levied in 1996, 
 less any amount levied for debt, as reported to the department 
 of revenue under section 275.62, subdivision 1, clause (1), and 
 less any tax levied in 1996 against market value as provided for 
 in section 275.61; 

    (2) the amount of aids the local governmental unit was 
 certified to receive in calendar year 1997 under sections 
 477A.011 to 477A.03 before any reductions for state tax 
 increment financing aid under section 273.1399, subdivision 5; 

    (3) the amount of homestead and agricultural credit aid the 
 local governmental unit was certified to receive under section 
 273.1398 in calendar year 1997 before any reductions for tax 
 increment financing aid under section 273.1399, subdivision 5; 

    (4) the amount of local performance aid the local 
 governmental unit was certified to receive in calendar year 1997 
 under section 477A.05; and 

    (5) the amount of any payments certified to the local 
 government unit in 1997 under sections 298.28 and 298.282. 

    If a governmental unit was not required to report under 
 section 275.62 for taxes levied in 1997, the commissioner shall 
 request information on levies used for debt from the local 
 governmental unit and adjust its levy limit base accordingly. 

    (b) The levy limit base for a local governmental unit for 
 taxes levied in 1998 is equal to its adjusted levy limit base in 
 the previous year, subject to any adjustments under section 
 275.72 and multiplied by the increase that would have occurred 
 under subdivision 3, clause (3), if that clause had been in 
 effect for taxes levied in 1997. 

    Subd. 3.    Adjusted levy limit base.  For taxes levied 
 in 1998, the adjusted levy limit is equal to the levy limit base 
 computed under subdivision 2 or section 275.72, multiplied by: 

    (1) one plus a percentage equal to the percentage growth in 
 the implicit price deflator; and 

    (2) for all cities and for counties outside of the 
 seven-county metropolitan area, one plus a percentage equal to 
 the percentage increase in number of households, if any, for the 
 most recent 12-month period for which data is available; and for 
 counties located in the seven-county metropolitan area, one plus 
 a percentage equal to the greater of the percentage increase in 
 the number of households in the county or the percentage 
 increase in the number of households in the entire seven-county 
 metropolitan area for the most recent 12-month period for which 
 data is available; and 

    (3) one plus a percentage equal to the percentage increase 
 in the taxable market value of the jurisdiction due to new 
 construction of class 3 and class 5 property, as defined in 
 section 273.13, subdivisions 24 and 31, for the most recent year 
 for which data are available. 

    Subd. 4.    Property tax levy limit.  For taxes levied 
 in 1998, the property tax levy limit for a local governmental 
 unit is equal to its adjusted levy limit base determined under 
 subdivision 3 plus any additional levy authorized under section 
 275.73, which is levied against net tax capacity, reduced by the 
 sum of (1) the total amount of aids that the local governmental 
 unit is certified to receive under sections 477A.011 to 
 477A.014, (2) homestead and agricultural aids it is certified to 
 receive under section 273.1398, (3) local performance aid it is 
 certified to receive under section 477A.05, (4) taconite aids 
 under sections 298.28 and 298.282 including any aid which was 
 required to be placed in a special fund for expenditure in the 
 next succeeding year, (5) flood loss aid under section 273.1383, 
 and (6) low-income housing aid under sections 477A.06 and 
 477A.065. 

    Subd. 5.    Levies in excess of levy limits.  If the 
 levy made by a city or county exceeds the levy limit provided in 
 sections 275.70 to 275.74, except when the excess levy is due to 
 the rounding of the rate in accordance with section 275.28, the 
 county auditor shall only extend the amount of taxes permitted 
 under sections 275.70 to 275.74, as provided for in section 
 275.16. 

    HIST: 1997 c 231 art 3 s 4; 1Sp1997 c 5 s 25,26; 1998 c 389 
 art 4 s 3-5 

*   NOTE:  This section, as added by Laws 1997, chapter 231, 
*article 3, section 4, is effective for taxes levied in 1997 and 
*1998, payable in 1998 and 1999.  Laws 1997, chapter 231, article 
*3, section 9.