Bill Text: MN HF2992 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Retail property excluded from the areawide pool, and the 1971 base value subtraction eliminated.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-04 - Introduction and first reading, referred to Taxes [HF2992 Detail]
Download: Minnesota-2011-HF2992-Introduced.html
1.2relating to property taxation; the metropolitan area fiscal disparities program;
1.3excluding retail property from the areawide pool; eliminating the 1971 base value
1.4subtraction;amending Minnesota Statutes 2010, sections 473F.02, subdivision 3;
1.5473F.06.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 473F.02, subdivision 3, is amended to read:
1.8 Subd. 3. Commercial-industrial property. "Commercial-industrial property"
1.9meansthe following categories of property, as defined in section
273.13, excluding that
1.10portion of such property (1) which may, by law, constitute the tax base for a tax increment
1.11pledged under section
469.042 or
469.162, certification of which was requested prior to
1.12August 1, 1979, to the extent and while such tax increment is so pledged; or (2) which is
1.13exempt from taxation under section
272.02: all property classified as class 3 under section
1.14273.13, subdivision 24, excluding property used for retail sales. The retail exclusion
1.15shall not apply to the captured tax capacity of any property in a tax increment financing
1.16district under sections 469.174 to 469.177.
1.17(a) That portion of class 3 property defined in Minnesota Statutes 1971, section
1.18273.13, consisting of stocks of merchandise and furniture and fixtures used therewith;
1.19manufacturers' materials and manufactured articles; and tools, implements and machinery,
1.20whether fixtures or otherwise.
1.21(b) That portion of class 4 property defined in Minnesota Statutes 1971, section
1.22273.13, which is either used or zoned for use for any commercial or industrial purpose,
1.23except for such property which is, or, in the case of property under construction, will when
1.24completed be used exclusively for residential occupancy and the provision of services
1.25to residential occupants thereof. Property shall be considered as used exclusively for
2.1residential occupancy only if each of not less than 80 percent of its occupied residential
2.2units is, or, in the case of property under construction, will when completed be occupied
2.3under an oral or written agreement for occupancy over a continuous period of not less
2.4than 30 days.
2.5If the classification of property prescribed by section273.13, subdivision 24, is
2.6modified by legislative amendment, the references in this subdivision shall be to such
2.7successor class or classes of property, or portions thereof, as embrace the kinds of property
2.8designated in this subdivision.
2.9EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.10distribution tax capacities for taxes payable in 2015 and thereafter.
2.11 Sec. 2. Minnesota Statutes 2010, section 473F.06, is amended to read:
2.12473F.06INCREASE IN ADJUSTMENTS TO NET TAX CAPACITY.
2.13On or before July 15 of each year, the auditor of each county in the area shall
2.14determine theamount, if any, by which the net tax capacity determined in the preceding
2.15year under section473F.05 , of commercial-industrial property subject to taxation
2.16within each municipality in the auditor's countyexceeds the net tax capacity in 1971
2.17of commercial-industrial property subject to taxation within that municipality. If a
2.18municipality is located in two or more counties within the area, the auditors of those
2.19counties shall certify the data required by section473F.05 to the county auditor who is
2.20responsible under other provisions of law for allocating the levies of that municipality
2.21between or among the affected counties. That county auditor shall determine the amount
2.22of the net excess, if any, for the municipality under this section, and certify that amount
2.23under section473F.07 . Notwithstanding any other provision of sections
473F.01 to
2.24473F.13 to the contrary, in the case of a municipality which is designated on July 24,
2.251971, as a redevelopment area under section 401(a)(4) of the Public Works and Economic
2.26Development Act of 1965, Public Law 89-136, the increase in its net tax capacity of
2.27commercial-industrial property for purposes of this section shall be determined in each
2.28year by using as a base the net tax capacity of commercial-industrial property in that
2.29municipality in the 1989 assessment year, rather than the net tax capacity of such property
2.30in 1971. The increase in total net tax capacity determined by this section shall be reduced
2.31by the amount of any decreases in net tax capacity of commercial-industrial property
2.32resulting from any court decisions, court related stipulation agreements, or abatements
2.33for a prior year, and only in the amount of such decreases made during the 12-month
2.34period ending on May 1 of the current assessment year, where such decreases, if originally
3.1reflected in the determination of a prior year's net tax capacity under section473F.05 ,
3.2would have resulted in a smaller contribution from the municipality in that year. An
3.3adjustment for such decreases shall be made only if the municipality made a contribution
3.4in a prior year based on the higher net tax capacity of the commercial-industrial property.
3.5EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
3.6distribution tax capacities for taxes payable in 2015 and thereafter.
3.7 Sec. 3. DEFINITION OF RETAIL PROPERTY.
3.8By October 1, 2012, the commissioner of revenue shall develop guidelines for
3.9assessors to use in determining which properties are considered to be used for retail sales,
3.10and distribute those guidelines to assessors within the metropolitan area.
3.11EFFECTIVE DATE.This section is effective the day following final enactment.
1.3excluding retail property from the areawide pool; eliminating the 1971 base value
1.4subtraction;amending Minnesota Statutes 2010, sections 473F.02, subdivision 3;
1.5473F.06.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 473F.02, subdivision 3, is amended to read:
1.8 Subd. 3. Commercial-industrial property. "Commercial-industrial property"
1.9means
1.10
1.11
1.12
1.13
1.14273.13, subdivision 24, excluding property used for retail sales. The retail exclusion
1.15shall not apply to the captured tax capacity of any property in a tax increment financing
1.16district under sections 469.174 to 469.177.
1.17
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
2.1
2.2
2.3
2.4
2.5If the classification of property prescribed by section
2.6modified by legislative amendment, the references in this subdivision shall be to such
2.7successor class or classes of property, or portions thereof, as embrace the kinds of property
2.8designated in this subdivision.
2.9EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.10distribution tax capacities for taxes payable in 2015 and thereafter.
2.11 Sec. 2. Minnesota Statutes 2010, section 473F.06, is amended to read:
2.12473F.06
2.13On or before July 15 of each year, the auditor of each county in the area shall
2.14determine the
2.15year under section
2.16within each municipality in the auditor's county
2.17
2.18municipality is located in two or more counties within the area, the auditors of those
2.19counties shall certify the data required by section
2.20responsible under other provisions of law for allocating the levies of that municipality
2.21between or among the affected counties. That county auditor shall determine the amount
2.22
2.23under section
2.24
2.25
2.26
2.27
2.28
2.29
2.30
2.31by the amount of any decreases in net tax capacity of commercial-industrial property
2.32resulting from any court decisions, court related stipulation agreements, or abatements
2.33for a prior year, and only in the amount of such decreases made during the 12-month
2.34period ending on May 1 of the current assessment year, where such decreases, if originally
3.1reflected in the determination of a prior year's net tax capacity under section
3.2would have resulted in a smaller contribution from the municipality in that year. An
3.3adjustment for such decreases shall be made only if the municipality made a contribution
3.4in a prior year based on the higher net tax capacity of the commercial-industrial property.
3.5EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
3.6distribution tax capacities for taxes payable in 2015 and thereafter.
3.7 Sec. 3. DEFINITION OF RETAIL PROPERTY.
3.8By October 1, 2012, the commissioner of revenue shall develop guidelines for
3.9assessors to use in determining which properties are considered to be used for retail sales,
3.10and distribute those guidelines to assessors within the metropolitan area.
3.11EFFECTIVE DATE.This section is effective the day following final enactment.
