Bill Text: MN HF2779 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Nonferrous minerals taxation rates modified, and production tax revenue distribution modified.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Introduced - Dead) 2012-03-20 - Referred by Chair to Property and Local Tax Division [HF2779 Detail]
Download: Minnesota-2011-HF2779-Introduced.html
1.2relating to taxation; minerals; modifying the rates of taxation of nonferrous
1.3minerals; modifying the distribution of production tax revenues; amending
1.4Minnesota Statutes 2010, sections 298.018, subdivision 1; 298.28, subdivision 4;
1.5Minnesota Statutes 2011 Supplement, sections 298.01, subdivision 3; 298.015,
1.6subdivision 1; 298.28, subdivision 2.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2011 Supplement, section 298.01, subdivision 3, is
1.9amended to read:
1.10 Subd. 3. Occupation tax; other ores. Every person engaged in the business of
1.11mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
1.12taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
1.13in this subdivision. For purposes of this subdivision, mining includes the application
1.14of hydrometallurgical processes. The tax is determined in the same manner as the tax
1.15imposed by section290.02 , except that sections
290.05, subdivision 1 , clause (a),
290.17,
1.16subdivision 4 , and
290.191, subdivision 2 , do not apply, and the occupation tax must be
1.17computed by applying to taxable income the rate of2.45 1.45 percent. A person subject
1.18to occupation tax under this section shall apportion its net income on the basis of the
1.19percentage obtained by taking the sum of:
1.20(1) 75 percent of the percentage which the sales made within this state in connection
1.21with the trade or business during the tax period are of the total sales wherever made in
1.22connection with the trade or business during the tax period;
1.23(2) 12.5 percent of the percentage which the total tangible property used by the
1.24taxpayer in this state in connection with the trade or business during the tax period is of
2.1the total tangible property, wherever located, used by the taxpayer in connection with the
2.2trade or business during the tax period; and
2.3(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
2.4in this state or paid in respect to labor performed in this state in connection with the trade
2.5or business during the tax period are of the taxpayer's total payrolls paid or incurred in
2.6connection with the trade or business during the tax period.
2.7The tax is in addition to all other taxes.
2.8EFFECTIVE DATE.This section is effective for taxable years beginning after
2.9December 31, 2011.
2.10 Sec. 2. Minnesota Statutes 2011 Supplement, section 298.015, subdivision 1, is
2.11amended to read:
2.12 Subdivision 1. Tax imposed. A person engaged in the business of mining shall pay
2.13to the state of Minnesota for distribution as provided in section298.018 a net proceeds tax
2.14equal totwo three percent of the net proceeds from mining in Minnesota. The tax applies
2.15to all ores, metals, and minerals mined, extracted, produced, or refined within the state of
2.16Minnesota except for sand, silica sand, gravel, building stone, crushed rock, limestone,
2.17granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron ore, and
2.18taconite concentrates. The tax is in addition to all other taxes provided for by law.
2.19EFFECTIVE DATE.This section is effective for taxable years beginning after
2.20December 31, 2011.
2.21 Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 1, is amended to read:
2.22 Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under
2.23sections298.015 to
298.017 on minerals and energy resources mined or extracted within
2.24the taconite assistance area defined in section273.1341 , shall be allocated as follows:
2.25(1) five percent to the city or town within which the minerals or energy resources
2.26are mined or extracted or within which the concentrate was produced. If the mining and
2.27concentration, or different steps in either process, are carried on in more than one taxing
2.28district, the commissioner shall apportion equitably the proceeds among the cities and
2.29towns upon the basis of attributing 50 percent of the proceeds of the tax to the operation of
2.30mining or extraction, and the remainder to the concentrating plant and to the processes of
2.31concentration, and with respect to each thereof giving due consideration to the relative
2.32extent of the respective operations performed in each taxing district;
3.1(2) ten percent to the taconite municipal aid account to be distributed as provided
3.2in section298.282 ;
3.3(3) ten percent to the school district within which the minerals or energy resources
3.4are mined or extracted or within which the concentrate was produced. If the mining
3.5and concentration, or different steps in either process, are carried on in more than one
3.6school district, distribution among the school districts must be based on the apportionment
3.7formula prescribed in clause (1);
3.8(4) 20 percent to a group of school districts comprised of those school districts
3.9wherein the mineral or energy resource was mined or extracted or in which there is a
3.10qualifying municipality as defined by section273.134, paragraph (b) , in direct proportion
3.11to school district indexes as follows: for each school district, its pupil units determined
3.12under section126C.05 for the prior school year shall be multiplied by the ratio of the
3.13average adjusted net tax capacity per pupil unit for school districts receiving aid under
3.14this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
3.15ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
3.16Each district shall receive that portion of the distribution which its index bears to the sum
3.17of the indices for all school districts that receive the distributions;
3.18(5) 20 percent to the county within which the minerals or energy resources are
3.19mined or extracted or within which the concentrate was produced. If the mining and
3.20concentration, or different steps in either process, are carried on in more than one
3.21county, the commissioner shall apportion equitably the proceeds among the counties
3.22upon the basis of attributing 50 percent of the proceeds of the tax to the operation of
3.23mining or extraction, and the remainder to the concentrating plant and to the processes of
3.24concentration, and with respect to each thereof giving due consideration to the relative
3.25extent of the respective operations performed in each county, provided that any county
3.26receiving distributions under this clause shall pay one percent of its proceeds to the Range
3.27Association of Municipalities and Schools;
3.28(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
3.29distributed as provided in sections273.134 to
273.136 ;
3.30(7) five percent to the Iron Range Resources and Rehabilitation Board for the
3.31purposes of section298.22 ;
3.32(8)five three percent to the Douglas J. Johnson economic protection trust fund; and
3.33(9)five seven percent to the taconite environmental protection fund.
3.34The proceeds of the tax shall be distributed on July 15 each year.
4.1 Sec. 4. Minnesota Statutes 2011 Supplement, section 298.28, subdivision 2, is
4.2amended to read:
4.3 Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
4.4merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
4.5provided in paragraph (c), must be allocated to the city or town in the county in which
4.6the lands from which taconite was mined or quarried were located or within which the
4.7concentrate was produced. If the mining, quarrying, and concentration, or different steps
4.8in either thereof are carried on in more than one taxing district, the commissioner shall
4.9apportion equitably the proceeds of the part of the tax going to cities and towns among
4.10such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
4.11the operation of mining or quarrying the taconite, and the remainder to the concentrating
4.12plant and to the processes of concentration, and with respect to each thereof giving due
4.13consideration to the relative extent of such operations performed in each such taxing
4.14district. The commissioner's order making such apportionment shall be subject to review
4.15by the Tax Court at the instance of any of the interested taxing districts, in the same
4.16manner as other orders of the commissioner.
4.17(b)Four Nine cents per taxable ton shall be allocated to cities and organized
4.18townships affected by mining because their boundaries are within three miles of a taconite
4.19mine pit that has been actively mined in at least one of the prior three years. If a city or
4.20town is located near more than one mine meeting these criteria, the city or town is eligible
4.21to receive aid calculated from only the mine producing the largest taxable tonnage. When
4.22more than one municipality qualifies for aid based on one company's production, the aid
4.23must be apportioned among the municipalities in proportion to their populations.Of the
4.24amounts distributed under this paragraph to each municipality, one-half must be used for
4.25infrastructure improvement projects, and one-half must be used for projects in which two
4.26or more municipalities cooperate. Each municipality that receives a distribution under this
4.27paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
4.28the commissioner of Iron Range resources and rehabilitation on the projects involving
4.29cooperation with other municipalities.
4.30(c) The amount that would have been computed for the current year under Minnesota
4.31Statutes 2008, section126C.21, subdivision 4 , for a school district shall be distributed to
4.32the cities and townships within the school district in the proportion that their taxable net
4.33tax capacity within the school district bears to the taxable net tax capacity of the school
4.34district for property taxes payable in the year prior to distribution.
4.35EFFECTIVE DATE.This section is effective beginning with the 2013 distribution.
5.1 Sec. 5. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
5.2 Subd. 4. School districts. (a)23.15
5.3provided in paragraph (d), less the amount that would have been computed under
5.4Minnesota Statutes 2008, section126C.21, subdivision 4 , for the current year for that
5.5district, must be allocated to qualifying school districts to be distributed, based upon the
5.6certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
5.7 (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
5.8the lands from which taconite was mined or quarried were located or within which the
5.9concentrate was produced. The distribution must be based on the apportionment formula
5.10prescribed in subdivision 2.
5.11 (ii)Four Seven cents per taxable ton from each taconite facility must be distributed
5.12to each affected school district for deposit in a fund dedicated to building maintenance
5.13and repairs, as follows:
5.14 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
5.15School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
5.16districts;
5.17 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
5.18Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
5.19districts;
5.20 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
5.21distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
5.222711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
5.23 (4) proceeds from the Northshore Mining Company or its successor are distributed:
5.24(i) three-sevenths each to Independent School Districts Nos. 2142, St. Louis County,
5.25and 381, Lake Superior, or their successor districts; and
5.26(ii) one-seventh to Independent School District No. 696, Ely; and
5.27 (5) proceeds from United Taconite or its successor are distributed to Independent
5.28School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
5.29successor districts.
5.30 Revenues that are required to be distributed to more than one district shall be
5.31apportioned according to the number of pupil units identified in section126C.05,
5.32subdivision 1 , enrolled in the second previous year.
5.33 (c)(i)15.72 cents per taxable ton, less any amount distributed under paragraph (e),
5.34shall be distributed to a group of school districts comprised of those school districts which
5.35qualify as a tax relief area under section273.134, paragraph (b) , or in which there is a
5.36qualifying municipality as defined by section273.134, paragraph (a) , in direct proportion
6.1to school district indexes as follows: for each school district, its pupil units determined
6.2under section126C.05 for the prior school year shall be multiplied by the ratio of the
6.3average adjusted net tax capacity per pupil unit for school districts receiving aid under
6.4this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
6.5ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
6.6Each district shall receive that portion of the distribution which its index bears to the sum
6.7of the indices for all school districts that receive the distributions.
6.8 (ii) Notwithstanding clause (i), each school district that receives a distribution
6.9under sections298.018 ;
298.23 to
298.28 , exclusive of any amount received under this
6.10clause;298.34 to
298.39 ;
298.391 to
298.396 ;
298.405 ; or any law imposing a tax on
6.11severed mineral values after reduction for any portion distributed to cities and towns
6.12under section126C.48, subdivision 8 , paragraph (5), that is less than the amount of its
6.13levy reduction under section126C.48, subdivision 8 , for the second year prior to the
6.14year of the distribution shall receive a distribution equal to the difference; the amount
6.15necessary to make this payment shall be derived from proportionate reductions in the
6.16initial distribution to other school districts under clause (i). If there are insufficient tax
6.17proceeds to make the distribution provided under this paragraph in any year, money must
6.18be transferred from the taconite property tax relief account in subdivision 6, to the extent
6.19of the shortfall in the distribution.
6.20 (d) Any school district described in paragraph (c) where a levy increase pursuant to
6.21section126C.17, subdivision 9 , was authorized by referendum for taxes payable in 2001,
6.22shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
6.23pupil units identified in section126C.05, subdivision 1 , enrolled in the second previous
6.24year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
6.25times the district's taxable net tax capacity in the second previous year.
6.26 If the total amount provided by paragraph (d) is insufficient to make the payments
6.27herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
6.28so as not to exceed the funds available. Any amounts received by a qualifying school
6.29district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
6.30education aid which the district receives pursuant to section126C.13 or the permissible
6.31levies of the district. Any amount remaining after the payments provided in this paragraph
6.32shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
6.33deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
6.34economic protection trust fund as provided in subdivision 11.
6.35 Each district receiving money according to this paragraph shall reserve the lesser of
6.36the amount received under this paragraph or $25 times the number of pupil units served
7.1in the district. It may use the money for early childhood programs or for outcome-based
7.2learning programs that enhance the academic quality of the district's curriculum. The
7.3outcome-based learning programs must be approved by the commissioner of education.
7.4 (e) There shall be distributed to any school district the amount which the school
7.5district was entitled to receive under section298.32 in 1975.
7.6 (f) Four cents per taxable ton must be distributed to qualifying school districts
7.7according to the distribution specified in paragraph (b), clause (ii), and two cents per
7.8taxable ton must be distributed according to the distribution specified in paragraph
7.9(c). These amounts are not subject to sections126C.21, subdivision 4 , and
126C.48,
7.10subdivision 8 .
7.11EFFECTIVE DATE.This section is effective beginning with the 2013 distribution.
1.3minerals; modifying the distribution of production tax revenues; amending
1.4Minnesota Statutes 2010, sections 298.018, subdivision 1; 298.28, subdivision 4;
1.5Minnesota Statutes 2011 Supplement, sections 298.01, subdivision 3; 298.015,
1.6subdivision 1; 298.28, subdivision 2.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2011 Supplement, section 298.01, subdivision 3, is
1.9amended to read:
1.10 Subd. 3. Occupation tax; other ores. Every person engaged in the business of
1.11mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
1.12taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
1.13in this subdivision. For purposes of this subdivision, mining includes the application
1.14of hydrometallurgical processes. The tax is determined in the same manner as the tax
1.15imposed by section
1.16subdivision 4
1.17computed by applying to taxable income the rate of
1.18to occupation tax under this section shall apportion its net income on the basis of the
1.19percentage obtained by taking the sum of:
1.20(1) 75 percent of the percentage which the sales made within this state in connection
1.21with the trade or business during the tax period are of the total sales wherever made in
1.22connection with the trade or business during the tax period;
1.23(2) 12.5 percent of the percentage which the total tangible property used by the
1.24taxpayer in this state in connection with the trade or business during the tax period is of
2.1the total tangible property, wherever located, used by the taxpayer in connection with the
2.2trade or business during the tax period; and
2.3(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
2.4in this state or paid in respect to labor performed in this state in connection with the trade
2.5or business during the tax period are of the taxpayer's total payrolls paid or incurred in
2.6connection with the trade or business during the tax period.
2.7The tax is in addition to all other taxes.
2.8EFFECTIVE DATE.This section is effective for taxable years beginning after
2.9December 31, 2011.
2.10 Sec. 2. Minnesota Statutes 2011 Supplement, section 298.015, subdivision 1, is
2.11amended to read:
2.12 Subdivision 1. Tax imposed. A person engaged in the business of mining shall pay
2.13to the state of Minnesota for distribution as provided in section
2.14equal to
2.15to all ores, metals, and minerals mined, extracted, produced, or refined within the state of
2.16Minnesota except for sand, silica sand, gravel, building stone, crushed rock, limestone,
2.17granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron ore, and
2.18taconite concentrates. The tax is in addition to all other taxes provided for by law.
2.19EFFECTIVE DATE.This section is effective for taxable years beginning after
2.20December 31, 2011.
2.21 Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 1, is amended to read:
2.22 Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under
2.23sections
2.24the taconite assistance area defined in section
2.25(1) five percent to the city or town within which the minerals or energy resources
2.26are mined or extracted or within which the concentrate was produced. If the mining and
2.27concentration, or different steps in either process, are carried on in more than one taxing
2.28district, the commissioner shall apportion equitably the proceeds among the cities and
2.29towns upon the basis of attributing 50 percent of the proceeds of the tax to the operation of
2.30mining or extraction, and the remainder to the concentrating plant and to the processes of
2.31concentration, and with respect to each thereof giving due consideration to the relative
2.32extent of the respective operations performed in each taxing district;
3.1(2) ten percent to the taconite municipal aid account to be distributed as provided
3.2in section
3.3(3) ten percent to the school district within which the minerals or energy resources
3.4are mined or extracted or within which the concentrate was produced. If the mining
3.5and concentration, or different steps in either process, are carried on in more than one
3.6school district, distribution among the school districts must be based on the apportionment
3.7formula prescribed in clause (1);
3.8(4) 20 percent to a group of school districts comprised of those school districts
3.9wherein the mineral or energy resource was mined or extracted or in which there is a
3.10qualifying municipality as defined by section
3.11to school district indexes as follows: for each school district, its pupil units determined
3.12under section
3.13average adjusted net tax capacity per pupil unit for school districts receiving aid under
3.14this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
3.15ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
3.16Each district shall receive that portion of the distribution which its index bears to the sum
3.17of the indices for all school districts that receive the distributions;
3.18(5) 20 percent to the county within which the minerals or energy resources are
3.19mined or extracted or within which the concentrate was produced. If the mining and
3.20concentration, or different steps in either process, are carried on in more than one
3.21county, the commissioner shall apportion equitably the proceeds among the counties
3.22upon the basis of attributing 50 percent of the proceeds of the tax to the operation of
3.23mining or extraction, and the remainder to the concentrating plant and to the processes of
3.24concentration, and with respect to each thereof giving due consideration to the relative
3.25extent of the respective operations performed in each county, provided that any county
3.26receiving distributions under this clause shall pay one percent of its proceeds to the Range
3.27Association of Municipalities and Schools;
3.28(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
3.29distributed as provided in sections
3.30(7) five percent to the Iron Range Resources and Rehabilitation Board for the
3.31purposes of section
3.32(8)
3.33(9)
3.34The proceeds of the tax shall be distributed on July 15 each year.
4.1 Sec. 4. Minnesota Statutes 2011 Supplement, section 298.28, subdivision 2, is
4.2amended to read:
4.3 Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
4.4merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
4.5provided in paragraph (c), must be allocated to the city or town in the county in which
4.6the lands from which taconite was mined or quarried were located or within which the
4.7concentrate was produced. If the mining, quarrying, and concentration, or different steps
4.8in either thereof are carried on in more than one taxing district, the commissioner shall
4.9apportion equitably the proceeds of the part of the tax going to cities and towns among
4.10such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
4.11the operation of mining or quarrying the taconite, and the remainder to the concentrating
4.12plant and to the processes of concentration, and with respect to each thereof giving due
4.13consideration to the relative extent of such operations performed in each such taxing
4.14district. The commissioner's order making such apportionment shall be subject to review
4.15by the Tax Court at the instance of any of the interested taxing districts, in the same
4.16manner as other orders of the commissioner.
4.17(b)
4.18townships affected by mining because their boundaries are within three miles of a taconite
4.19mine pit that has been actively mined in at least one of the prior three years. If a city or
4.20town is located near more than one mine meeting these criteria, the city or town is eligible
4.21to receive aid calculated from only the mine producing the largest taxable tonnage. When
4.22more than one municipality qualifies for aid based on one company's production, the aid
4.23must be apportioned among the municipalities in proportion to their populations.
4.24
4.25
4.26
4.27
4.28
4.29
4.30(c) The amount that would have been computed for the current year under Minnesota
4.31Statutes 2008, section
4.32the cities and townships within the school district in the proportion that their taxable net
4.33tax capacity within the school district bears to the taxable net tax capacity of the school
4.34district for property taxes payable in the year prior to distribution.
4.35EFFECTIVE DATE.This section is effective beginning with the 2013 distribution.
5.1 Sec. 5. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
5.2 Subd. 4. School districts. (a)
5.3provided in paragraph (d), less the amount that would have been computed under
5.4Minnesota Statutes 2008, section
5.5district, must be allocated to qualifying school districts to be distributed, based upon the
5.6certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
5.7 (b)
5.8the lands from which taconite was mined or quarried were located or within which the
5.9concentrate was produced. The distribution must be based on the apportionment formula
5.10prescribed in subdivision 2.
5.11 (ii)
5.12to each affected school district for deposit in a fund dedicated to building maintenance
5.13and repairs, as follows:
5.14 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
5.15School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
5.16districts;
5.17 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
5.18Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
5.19districts;
5.20 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
5.21distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
5.222711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
5.23 (4) proceeds from the Northshore Mining Company or its successor are distributed:
5.24(i) three-sevenths each to Independent School Districts Nos. 2142, St. Louis County,
5.25and 381, Lake Superior, or their successor districts; and
5.26(ii) one-seventh to Independent School District No. 696, Ely; and
5.27 (5) proceeds from United Taconite or its successor are distributed to Independent
5.28School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
5.29successor districts.
5.30 Revenues that are required to be distributed to more than one district shall be
5.31apportioned according to the number of pupil units identified in section
5.32subdivision 1
5.33 (c)(i)
5.34shall be distributed to a group of school districts comprised of those school districts which
5.35qualify as a tax relief area under section
5.36qualifying municipality as defined by section
6.1to school district indexes as follows: for each school district, its pupil units determined
6.2under section
6.3average adjusted net tax capacity per pupil unit for school districts receiving aid under
6.4this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
6.5ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
6.6Each district shall receive that portion of the distribution which its index bears to the sum
6.7of the indices for all school districts that receive the distributions.
6.8 (ii) Notwithstanding clause (i), each school district that receives a distribution
6.9under sections
6.10clause;
6.11severed mineral values after reduction for any portion distributed to cities and towns
6.12under section
6.13levy reduction under section
6.14year of the distribution shall receive a distribution equal to the difference; the amount
6.15necessary to make this payment shall be derived from proportionate reductions in the
6.16initial distribution to other school districts under clause (i). If there are insufficient tax
6.17proceeds to make the distribution provided under this paragraph in any year, money must
6.18be transferred from the taconite property tax relief account in subdivision 6, to the extent
6.19of the shortfall in the distribution.
6.20 (d) Any school district described in paragraph (c) where a levy increase pursuant to
6.21section
6.22shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
6.23pupil units identified in section
6.24year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
6.25times the district's taxable net tax capacity in the second previous year.
6.26 If the total amount provided by paragraph (d) is insufficient to make the payments
6.27herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
6.28so as not to exceed the funds available. Any amounts received by a qualifying school
6.29district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
6.30education aid which the district receives pursuant to section
6.31levies of the district. Any amount remaining after the payments provided in this paragraph
6.32shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
6.33deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
6.34economic protection trust fund as provided in subdivision 11.
6.35 Each district receiving money according to this paragraph shall reserve the lesser of
6.36the amount received under this paragraph or $25 times the number of pupil units served
7.1in the district. It may use the money for early childhood programs or for outcome-based
7.2learning programs that enhance the academic quality of the district's curriculum. The
7.3outcome-based learning programs must be approved by the commissioner of education.
7.4 (e) There shall be distributed to any school district the amount which the school
7.5district was entitled to receive under section
7.6 (f) Four cents per taxable ton must be distributed to qualifying school districts
7.7according to the distribution specified in paragraph (b), clause (ii), and two cents per
7.8taxable ton must be distributed according to the distribution specified in paragraph
7.9(c). These amounts are not subject to sections
7.10subdivision 8
7.11EFFECTIVE DATE.This section is effective beginning with the 2013 distribution.
