2006 Minnesota Statutes

414.067 APPORTIONED ASSETS AND OBLIGATIONS.
    Subdivision 1. Township or municipality divided. Whenever the director divides an
existing governmental unit, the director may apportion the property and obligations between
the governmental unit adding territory and the governmental unit from which the territory was
obtained. The apportionment shall be made in a just and equitable manner having in view the
value of the existing township or municipal property located in the area to be added, the assets,
value, and location of all the taxable property in the existing township or municipality, the
indebtedness, the taxes due and delinquent, other revenue accrued but not paid to the existing
township or municipality and the ability of any remainder of the township or municipality to
function as an effective governmental unit. The order shall not relieve any property from any tax
liability for payment for any bonded obligation, but the taxable property in the new municipality
may be made primarily liable thereon.
    Subd. 2. Entire town or consolidated cities. When an entire township is annexed by
an existing municipality, or an entire township is incorporated into a new municipality, or a
municipality is consolidated into a new municipality, all money, claims, or properties, including
real estate owned, held, or possessed by the annexed, incorporated township or municipality, and
any proceeds or taxes levied by such town or municipality, collected or uncollected, shall become
and be the property of the new or annexing municipality with full power and authority to use and
dispose of the same for public purposes as the council or new annexing municipality may deem
best, subject to the rights of creditors. Any taxes levied to pay bonded indebtedness of a town or
former municipality annexed to an existing municipality or incorporated or consolidated into a
new municipality shall be borne only by that taxable property within the boundaries of the former
town or municipality, provided, however, the units of government concerned may by resolution of
their governing bodies agree that taxes levied to pay the indebtedness must be levied upon all
taxable property within the boundaries of the new municipality. Notwithstanding that the bonded
indebtedness may be payable from taxes levied on only a portion of the taxable property in the
new or surviving municipality, the full faith and credit of the new or surviving municipality must
secure any outstanding bonded indebtedness to which the full faith and credit of the annexed or
consolidated township or municipality was pledged. If any general funds of the new or surviving
municipality are used to pay debt service on the bonded indebtedness, the general funds must
be reimbursed, with or without interest, from taxes levied on taxable property in the former
township or municipality.
    Subd. 3. Revision of tax records; redistribution of levies. In an apportionment made
under this section, the director may order the county auditor to revise tax records and respread
levies at any time prior to December 15 or order the county treasurer to redistribute taxes levied
and receivable.
History: 1969 c 1146 s 17; 1971 c 62 s 1; 1973 c 621 s 7; 1975 c 271 s 6; 1978 c 705 s 30;
1997 c 219 s 4; 2002 c 223 s 21,22