Subdivision 1. Applicability.
, the terms defined in this
section have the meanings given them unless the context indicates otherwise.
Subd. 2. Area.
"Area" means the territory included within all taconite assistance areas
defined in section
Subd. 3. Commercial-industrial property.
"Commercial-industrial property" means the
following categories of property, as defined in section
, excluding that portion of the
property (i) that may, by law, constitute the tax base for a tax increment pledged pursuant to
, certification of which was requested
prior to May 1, 1996, to the extent and while the tax increment is so pledged; or (ii) that is exempt
from taxation under section
(1) that portion of class 5 property consisting of unmined iron ore and low-grade iron-bearing
formations as defined in section
, tools, implements, and machinery, except the portion
of high voltage transmission lines, the value of which is deducted from net tax capacity under
(2) that portion of class 3 and class 5 property which is either used or zoned for use for any
commercial or industrial purpose, except for such property which is, or, in the case of property
under construction, will when completed be used exclusively for residential occupancy and
the provision of services to residential occupants thereof. Property must be considered as used
exclusively for residential occupancy only if each of not less than 80 percent of its occupied
residential units is, or, in the case of property under construction, will when completed be
occupied under an oral or written agreement for occupancy over a continuous period of not
less than 30 days.
If the classification of property prescribed by section
is modified by legislative
amendment, the references in this subdivision are to the successor class or classes of property, or
portions thereof, that include the kinds of property designated in this subdivision.
Subd. 4. Residential property.
"Residential property" means the following categories of
property, as defined in section
, excluding that portion of the property that is exempt from
taxation pursuant to section
(1) class 1a, 1b, and 2a property, limited to the homestead dwelling, a garage, and the one
acre of land on which the dwelling is located;
(2) that portion of class 3 property used exclusively for residential occupancy; and
(3) property valued and assessed under section
273.13, subdivision 25
, except for hospitals
and property valued and assessed under section
273.13, subdivision 25
, paragraph (c), clauses
(5) and (6).
Subd. 5. Governmental unit.
"Governmental unit" means a county, city, town, school
district, or other taxing unit or body which levies ad valorem taxes in whole or in part within the
Subd. 6. Administrative auditor.
"Administrative auditor" means the person selected under
Subd. 7. Population.
"Population" means the most recent estimate of the population of a
municipality made by the state demographer and filed with the commissioner of revenue as of
July 15 of the year in which a municipality's distribution net tax capacity is calculated. The state
demographer shall annually estimate the population of each municipality and, in the case of a
municipality which is located partly within and partly without the area, the proportion of the total
which resides within the area, and shall file the estimates with the commissioner of revenue.
Subd. 8. Municipality.
"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area, the
references in sections
to property or any portion thereof subject to taxation or
taxing jurisdiction within the municipality are to the property or portion thereof that is located in
that portion of the municipality within the area, except that the fiscal capacity of the municipality
must be computed upon the basis of the valuation and population of the entire municipality. A
municipality shall be excluded from the area if its municipal comprehensive zoning and planning
policies conscientiously exclude most commercial-industrial development, for reasons other than
preserving an agricultural use. The Iron Range Resources and Rehabilitation Board and the
commissioner of revenue shall jointly make this determination annually and shall notify those
municipalities that are ineligible to participate in the tax base sharing program provided in this
chapter for the following year.
Subd. 9. County.
"County" means each county in which a governmental unit is located
in whole or in part.
Subd. 10. Market value.
"Market value" of real and personal property within a municipality
means the assessor's estimated market value of all real and personal property, including the value
of manufactured housing, within the municipality. For purposes of sections
the commissioner of revenue shall annually make determinations and reports with respect to each
municipality which are comparable to those it makes for school districts under section
subdivisions 1 to 6
, in the same manner and at the same times prescribed by the subdivision. The
commissioner of revenue shall annually determine, for each municipality, information comparable
to that required by section
475.53, subdivision 4
, for school districts, as soon as practicable after
it becomes available. The commissioner of revenue shall then compute the equalized market
value of property within each municipality.
Subd. 11. Valuation.
"Valuation" means the market value of real and personal property
within a municipality as defined in subdivision 10.
Subd. 12. Fiscal capacity.
"Fiscal capacity" of a municipality means its valuation, determined
as of January 2 of any year, divided by its population, determined as of a date in the same year.
Subd. 13. Average fiscal capacity.
"Average fiscal capacity" of municipalities means the
sum of the valuations of all municipalities, determined as of January 2 of any year, divided by the
sum of their populations, determined as of a date in the same year.
Subd. 14. Levy.
"Levy" means the amount certified to the county auditor pursuant to chapter
275, less all reductions made by the auditor pursuant to any provision of law in determining the
amount to be spread against taxable property.
Subd. 15. Net tax capacity.
"Net tax capacity" means the market value of real and personal
property multiplied by its net tax capacity rates in section
Subd. 16. Local tax rate.
"Local tax rate" means a governmental unit's levy, including
any portion levied against market value under section
126C.17, subdivision 10
, divided by its
net tax capacity.
History: 1996 c 471 art 11 s 3; 1997 c 31 art 3 s 11; 1998 c 397 art 11 s 3; 1Sp2001 c 5 art 6
s 10; art 15 s 1; 1Sp2003 c 21 art 11 s 11; 2005 c 151 art 4 s 3