2004 Minnesota Statutes

     123A.67 Allocation of assets and liabilities; levy. 

    Subdivision 1.    Title to property.  Title to all the 
 property, real and personal, of any district dissolved under the 
 provisions of sections 123A.64 to 123A.72 and all legally valid 
 and enforceable claims and contract obligations, pass to the 
 district to which such dissolved district is attached.  If a 
 district is divided by virtue of the proceedings, the 
 commissioner shall issue a subsequent order providing for the 
 division of the assets and liabilities according to such terms 
 as the commissioner may deem just and equitable. 

    Subd. 2.    Taxable property.  As of the effective date 
 of the attachment, all the taxable property in the newly 
 enlarged district is taxable for the payment of any bonded debt 
 already incurred by any component district in the proportion 
 which the net tax capacity of that part of a preexisting 
 district which is included in the newly enlarged district bears 
 to the net tax capacity of the entire preexisting district as of 
 the time of the attachment.  The county auditor shall make this 
 apportionment and incorporate the apportionment as an annex to 
 the order of the commissioner dividing the assets and 
 liabilities of the component parts.  This subdivision shall not 
 relieve any property from any tax liability for payment of any 
 bonded obligation but taxable property in the newly enlarged 
 district becomes primarily liable for the payment of bonded 
 debts to the extent of the proportion stated.  

    Subd. 3.    Reimbursement; special levy.  (a) 
 Liabilities of a dissolved district existing at the time of the 
 attachment other than bonded debt within the purview of 
 subdivision 2 must be obligations of the consolidated district 
 after attachment (in the amount and kind determined by the 
 commissioner according to subdivision 1, where a dissolved 
 district is divided), for the payment of which the consolidated 
 district has a right to reimbursement by special levy or 
 levies.  The amount of reimbursement will be equal to the 
 liabilities of the dissolved district for which the consolidated 
 district is obligated less the aggregate of the following which 
 has been or will be received by the consolidated district at or 
 after the time of attachment from or as a result of the 
 dissolution and attachment of the dissolved district: 

    (1) all taxes inuring to the consolidating district upon 
 levies made by the dissolved district; 

    (2) all cash, bank accounts, investments, and other current 
 assets; 

    (3) earned state aids of the dissolved districts; 

    (4) returns from the sale of property of the dissolved 
 district. 

    (b) The amount of such special levy so computed shall be 
 certified to the county auditor with the other tax requirements 
 of the consolidated district but separately stated and 
 identified.  The auditor shall add the amount of special levy so 
 certified to the school rate for the territory in the 
 consolidated district which came from the dissolved district and 
 include it in the levy on the taxable property in that 
 territory.  The county auditor shall not spread more of the 
 amount certified for special levy in any year than will amount 
 to 20 percent of the school levy without the special levy, 
 leaving the remaining part of the certified amount for levy in 
 successive years without further certification.  Any amount of 
 reimbursement to which it is entitled omitted by the 
 consolidated district from its initial certification for special 
 levy may be certified in a subsequent year for levy in the same 
 manner as the levy upon initial certification. 

    The levy authorized by this subdivision shall be in 
 addition to those otherwise authorized for a district.  

    HIST: 1967 c 833 s 5; Ex1971 c 31 art 20 s 20; 1975 c 162 s 
 19,41; 1976 c 271 s 36-38; 1983 c 314 art 1 s 22; 1986 c 444; 
 1988 c 486 s 12; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 
 1998 c 397 art 5 s 53,54,104; art 11 s 3