2007 Minnesota Statutes

477A.011 DEFINITIONS.
    Subdivision 1. Application. For the purposes of sections 477A.011 to 477A.014 the
following terms shall have these meanings, unless otherwise provided to the contrary.
    Subd. 1a. City. "City" means a statutory or home rule charter city.
    Subd. 1b. Town. "Town" means a township.
    Subd. 2.[Repealed, 1996 c 310 s 1]
    Subd. 2a. Special taxing district. "Special taxing district" means a political subdivision with
the authority to levy property taxes, other than a city, county, town, or school district.
    Subd. 3. Population. "Population" means the population estimated or established as of July
15 in an aid calculation year by the most recent federal census, by a special census conducted
under contract with the United States Bureau of the Census, by a population estimate made by
the Metropolitan Council pursuant to section 473.24, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated date
of the count or estimate for the preceding calendar year, and which has been certified to the
commissioner of revenue on or before July 15 of the aid calculation year. The term "per capita"
refers to population as defined by this subdivision. A revision of an estimate or count is effective
for these purposes only if it is certified to the commissioner on or before July 15 of the aid
calculation year. Clerical errors in the certification or use of the estimates and counts established
as of July 15 in the aid calculation year are subject to correction within the time periods allowed
under section 477A.014.
    Subd. 3a.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 4.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 5.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 6.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 7.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 7a.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 8.[Repealed, 1983 c 342 art 5 s 16]
    Subd. 9.[Repealed, 1983 c 342 art 5 s 16]
    Subd. 10.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 11.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 12.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 13.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 14.[Repealed, 1988 c 719 art 5 s 81]
    Subd. 15.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 16.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 17.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 18.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 19. Metropolitan area. "Metropolitan area" is the metropolitan area as defined in
section 473.121, subdivision 2.
    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax capacity
computed using the net tax capacity rates in section 273.13 for taxes payable in the year of the
aid distribution, and the market values for taxes payable in the year prior to the aid distribution
plus (2) a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2,
paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior to that
for which aids are being calculated. The market value utilized in computing city net tax capacity
shall be reduced by the sum of (1) a city's market value of commercial industrial property as
defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, multiplied by the ratio
determined pursuant to section 276A.06, subdivision 2, paragraph (a), or 473F.08, subdivision
2 , paragraph (a), (2) the market value of the captured value of tax increment financing districts
as defined in section 469.177, subdivision 2, and (3) the market value of transmission lines
deducted from a city's total net tax capacity under section 273.425. The city net tax capacity will
be computed using equalized market values.
    Subd. 21. Equalized market values. "Equalized market values" means market values that
have been equalized by dividing the assessor's estimated market value for the second year
prior to that in which the aid is payable by the assessment sales ratios determined by class in
the assessment sales ratio study conducted by the Department of Revenue pursuant to section
127A.48 in the second year prior to that in which the aid is payable. The equalized market values
equal the unequalized market values divided by the assessment sales ratio.
    Subd. 22.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 23.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 24.[Repealed, 1Sp1989 c 1 art 4 s 15]
    Subd. 25.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 26.[Repealed, 1993 c 375 art 4 s 21]
    Subd. 27. Revenue base. "Revenue base" means the amount levied for taxes payable in the
previous year, including the levy on the fiscal disparity distribution under section 276A.06,
subdivision 3 , paragraph (a), or 473F.08, subdivision 3, paragraph (a); plus the originally certified
local government aid in the previous year under sections 477A.011 and 477A.013; and the
taconite aids received in the previous year under sections 298.28 and 298.282.
    Subd. 28.[Repealed, 2007 c 13 art 2 s 13]
    Subd. 29. Adjusted revenue base. "Adjusted revenue base" means revenue base as defined
in subdivision 27 less the levy reported under section 275.62, subdivision 1, clause (2).
    Subd. 30. Pre-1940 housing percentage. "Pre-1940 housing percentage" for a city is 100
times the most recent federal census count of all housing units in the city built before 1940,
divided by the total number of all housing units in the city. Housing units includes both occupied
and vacant housing units as defined by the federal census.
    Subd. 31. Population decline percentage. "Population decline percentage" for a city is the
percent decline in a city's population for the last ten years, based on the most recently available
population estimate from the state demographer or a federal census. A city's population decline
percentage cannot be less than zero.
    Subd. 32. Commercial industrial percentage. "Commercial industrial percentage" for a
city is 100 times the sum of the estimated market values of all real property in the city classified as
class 3 under section 273.13, subdivision 24, excluding public utility property, to the total market
value of all taxable real and personal property in the city. The market values are the amounts
computed before any adjustments for fiscal disparities under section 276A.06 or 473F.08. The
market values used for this subdivision are not equalized.
    Subd. 33. Transformed population. "Transformed population" for a city is the city
population raised to the .3308 power, times 30.5485.
    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than
2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing percentage;
plus (2) 19.141678 times the population decline percentage; plus (3) 2504.06334 times the road
accidents factor; plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638
times the household size.
(b) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial industrial
percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 1.206 times the
transformed population; minus (5) 62.772.
(c) For a city with a population of 2,500 or more and a population in one of the most recently
available five years that was less than 2,500, "city revenue need" is the sum of (1) its city revenue
need calculated under paragraph (a) multiplied by its transition factor; plus (2) its city revenue
need calculated under the formula in paragraph (b) multiplied by the difference between one and
its transition factor. For purposes of this paragraph, a city's "transition factor" is equal to 0.2
multiplied by the number of years that the city's population estimate has been 2,500 or more. This
provision only applies for aids payable in calendar years 2006 to 2008 to cities with a 2002
population of less than 2,500. It applies to any city for aids payable in 2009 and thereafter.
(d) The city revenue need cannot be less than zero.
(e) For calendar year 2005 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit price deflator
for government consumption expenditures and gross investment for state and local governments
as prepared by the United States Department of Commerce, for the most recently available year to
the 2003 implicit price deflator for state and local government purchases.
    Subd. 35. Tax effort rate. "Tax effort rate" means the net levy for all cities divided by the
sum of the city net tax capacity for all cities. For purposes of this section, "net levy" means the
city levy, after all adjustments, used for calculating the local tax rate under section 275.08 for
taxes payable in the year prior to the aid distribution. The fiscal disparity distribution levy under
chapter 276A or 473F is included in net levy.
    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, "city aid
base" is zero.
(b) The city aid base for any city with a population less than 500 is increased by $40,000 for
aids payable in calendar year 1995 and thereafter, and the maximum amount of total aid it may
receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $40,000 for
aids payable in calendar year 1995 only, provided that:
(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
(ii) the city portion of the tax capacity rate exceeds 100 percent; and
(iii) its city aid base is less than $60 per capita.
(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $20,000 in calendar year 1998 only, provided that:
(i) the city has a population in 1994 of 2,500 or more;
(ii) the city is located in a county, outside of the metropolitan area, which contains a city
of the first class;
(iii) the city's net tax capacity used in calculating its 1996 aid under section 477A.013 is less
than $400 per capita; and
(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of property
located in the city is classified as railroad property.
(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $200,000 in calendar year 1999 only, provided that:
(i) the city was incorporated as a statutory city after December 1, 1993;
(ii) its city aid base does not exceed $5,600; and
(iii) the city had a population in 1996 of 5,000 or more.
(e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $450,000 in calendar year 1999 only, provided that:
(i) the city had a population in 1996 of at least 50,000;
(ii) its population had increased by at least 40 percent in the ten-year period ending in
1996; and
(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.
(f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 2000 only, provided
that:
(1) the city has a population that is greater than 1,000 and less than 2,500;
(2) its commercial and industrial percentage for aids payable in 1999 is greater than 45
percent; and
(3) the total market value of all commercial and industrial property in the city for assessment
year 1999 is at least 15 percent less than the total market value of all commercial and industrial
property in the city for assessment year 1998.
(g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $200,000 in calendar year 2000 only, provided that:
(1) the city had a population in 1997 of 2,500 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is
less than $650 per capita;
(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under section
477A.013 is greater than 12 percent;
(4) the 1999 local government aid of the city under section 477A.013 is less than 20 percent
of the amount that the formula aid of the city would have been if the need increase percentage
was 100 percent; and
(5) the city aid base of the city used in calculating aid under section 477A.013 is less than $7
per capita.
(h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $102,000 in calendar year 2000 only, provided that:
(1) the city has a population in 1997 of 2,000 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid under section 477A.013 is
less than $455 per capita;
(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is greater
than $195 per capita; and
(4) the 1999 local government aid of the city under section 477A.013 is less than 38 percent
of the amount that the formula aid of the city would have been if the need increase percentage
was 100 percent.
(i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $32,000 in calendar year 2001 only, provided that:
(1) the city has a population in 1998 that is greater than 200 but less than 500;
(2) the city's revenue need used in calculating aids payable in 2000 was greater than $200
per capita;
(3) the city net tax capacity for the city used in calculating aids available in 2000 was equal
to or less than $200 per capita;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than
$65 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, paragraph
(c), is also increased by $7,200 in calendar year 2001 only, provided that:
(1) the city had a population in 1998 that is greater than 200 but less than 500;
(2) the city's commercial industrial percentage used in calculating aids payable in 2000
was less than ten percent;
(3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;
(4) the city aid base of the city used in calculating aid under section 477A.013 is less than
$15 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than zero.
(k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and by an
additional $50,000 in calendar years 2002 to 2011, and the maximum amount of total aid it may
receive under section 477A.013, subdivision 9, paragraph (c), is also increased by $45,000 in
calendar year 2001 only, and by $50,000 in calendar year 2002 only, provided that:
(1) the net tax capacity of the city used in calculating its 2000 aid under section 477A.013 is
less than $810 per capita;
(2) the population of the city declined more than two percent between 1988 and 1998;
(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is greater
than $240 per capita; and
(4) the city received less than $36 per capita in aid under section 477A.013, subdivision
9 , for aids payable in 2000.
(l) The city aid base for a city with a population of 10,000 or more which is located outside
of the seven-county metropolitan area is increased in 2002 and thereafter, and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (b) or (c), is
also increased in calendar year 2002 only, by an amount equal to the lesser of:
(1)(i) the total population of the city, as determined by the United States Bureau of the
Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
(2) $2,500,000.
(m) The city aid base is increased by $50,000 in 2002 and thereafter, and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $50,000 in calendar year 2002 only, provided that:
(1) the city is located in the seven-county metropolitan area;
(2) its population in 2000 is between 10,000 and 20,000; and
(3) its commercial industrial percentage, as calculated for city aid payable in 2001, was
greater than 25 percent.
(n) The city aid base for a city is increased by $150,000 in calendar years 2002 to 2011
and the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $150,000 in calendar year 2002 only, provided that:
(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
(2) its home county is located within the seven-county metropolitan area;
(3) its pre-1940 housing percentage is less than 15 percent; and
(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 per capita.
(o) The city aid base for a city is increased by $200,000 beginning in calendar year 2003
and the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2003 only, provided that the city
qualified for an increase in homestead and agricultural credit aid under Laws 1995, chapter
264, article 8, section 18.
(p) The city aid base for a city is increased by $200,000 in 2004 only and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, is also increased by
$200,000 in calendar year 2004 only, if the city is the site of a nuclear dry cask storage facility.
(q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased by
$10,000 in calendar year 2004 only, if the city was included in a federal major disaster designation
issued on April 1, 1998, and its pre-1940 housing stock was decreased by more than 40 percent
between 1990 and 2000.
(r) The city aid base for a city is increased by $25,000 in 2006 only and the maximum total
aid it may receive under section 477A.013, subdivision 9, is also increased by $25,000 in calendar
year 2006 only if the city had a population in 2003 of at least 1,000 and has a state park for which
the city provides rescue services and which comprised at least 14 percent of the total geographic
area included within the city boundaries in 2000.
(s) The city aid base for a city with a population less than 5,000 is increased in 2006 and
thereafter and the minimum and maximum amount of total aid it may receive under this section is
also increased in calendar year 2006 only by an amount equal to $6 multiplied by its population.
(t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum and
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is also
increased by $80,000 in calendar year 2007 only, if:
(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed to be
placed in trust status as tax-exempt Indian land;
(2) the placement of the land is being challenged administratively or in court; and
(3) due to the challenge, the land proposed to be placed in trust is still on the tax rolls as
of May 1, 2006.
(u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and the
minimum and maximum total amount of aid it may receive under this section is also increased in
calendar year 2007 only, provided that:
(1) the city has a 2004 estimated population greater than 200 but less than 2,000;
(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids payable in
2006 was greater than 110 percent; and
(4) it is located in a county where at least 15,000 acres of land are classified as tax-exempt
Indian reservations according to the 2004 abstract of tax-exempt property.
    Subd. 37.[Repealed, 1Sp2003 c 21 art 5 s 14]
    Subd. 38. Household size. "Household size" means the average number of persons per
household in the jurisdiction as most recently estimated and reported by the state demographer
and Metropolitan Council as of July 15 of the aid calculation year. A revision to an estimate or
enumeration is effective for these purposes only if it is certified to the commissioner on or before
July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and
counts established as of July 15 in the aid calculation year are subject to correction within the
time periods allowed under section 477A.014.
    Subd. 39. Road accidents factor. "Road accidents factor" means the average annual number
of vehicular accidents occurring on public roads, streets, and alleys in the jurisdiction as reported
to the commissioner of revenue by the commissioner of public safety by July 1 of the aid
calculation year using the most recent three-year period for which the commissioner of public
safety has complete information, divided by the jurisdiction's population.
    Subd. 40. Metropolitan area factor. "Metropolitan area factor" means 35.20915 for cities
located in the metropolitan area.
History: 1981 c 356 s 248; 1981 c 358 art 1 s 48; 1Sp1981 c 1 art 6 s 1; 1983 c 289 s 114
subd 2; 1983 c 342 art 5 s 5-9; 1984 c 558 art 4 s 10; 1Sp1985 c 14 art 6 s 1-6; 1Sp1986 c 1 art 6
s 1,2; 1987 c 291 s 240; 1988 c 719 art 5 s 66-75; 1989 c 277 art 2 s 66; 1Sp1989 c 1 art 4 s 3-6;
art 9 s 79,80; 1990 c 480 art 7 s 28,29; 1990 c 604 art 4 s 6-9; 1991 c 2 art 8 s 1-3; 1991 c 291
art 3 s 5-7; 1991 c 345 art 2 s 64,65; 1992 c 511 art 5 s 16,17; 1993 c 375 art 4 s 8-17; 1994 c
416 art 1 s 57; 1995 c 264 art 8 s 13; 1996 c 471 art 3 s 44; art 11 s 16-19; 1997 c 231 art 2 s
49,69; 1998 c 254 art 1 s 94,95; 1998 c 389 art 4 s 7; 1999 c 243 art 5 s 42; 2000 c 490 art 6 s 6;
1Sp2001 c 5 art 3 s 74,75; 2002 c 377 art 6 s 9; art 10 s 26; 1Sp2003 c 21 art 5 s 2-6; 2004 c 228
art 3 s 14-16; 2005 c 38 s 1; 2005 c 151 art 4 s 6-9; 1Sp2005 c 3 art 2 s 1; 2006 c 259 art 11 s 1