Bill Text: MN HF308 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Taconite distribution general education aid reduction restored.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-31 - Introduction and first reading, referred to Education Finance [HF308 Detail]
Download: Minnesota-2011-HF308-Introduced.html
1.2relating to taconite; restoring the general education aid reduction for certain
1.3taconite distributions;amending Minnesota Statutes 2010, section 298.28,
1.4subdivisions 2, 4; repealing Laws 2009, chapter 88, article 12, section 23,
1.5paragraph (c).
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:
1.8 Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
1.9merchantable iron ore concentrate, hereinafter referred to as "taxable ton,"plus the amount
1.10provided in paragraph (c), must be allocated to the city or town in the county in which
1.11the lands from which taconite was mined or quarried were located or within which the
1.12concentrate was produced. If the mining, quarrying, and concentration, or different steps
1.13in either thereof are carried on in more than one taxing district, the commissioner shall
1.14apportion equitably the proceeds of the part of the tax going to cities and towns among
1.15such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
1.16the operation of mining or quarrying the taconite, and the remainder to the concentrating
1.17plant and to the processes of concentration, and with respect to each thereof giving due
1.18consideration to the relative extent of such operations performed in each such taxing
1.19district. The commissioner's order making such apportionment shall be subject to review
1.20by the Tax Court at the instance of any of the interested taxing districts, in the same
1.21manner as other orders of the commissioner.
1.22(b) Four cents per taxable ton shall be allocated to cities and organized townships
1.23affected by mining because their boundaries are within three miles of a taconite mine pit
1.24that has been actively mined in at least one of the prior three years. If a city or town is
1.25located near more than one mine meeting these criteria, the city or town is eligible to
2.1receive aid calculated from only the mine producing the largest taxable tonnage. When
2.2more than one municipality qualifies for aid based on one company's production, the aid
2.3must be apportioned among the municipalities in proportion to their populations. Of the
2.4amounts distributed under this paragraph to each municipality, one-half must be used for
2.5infrastructure improvement projects, and one-half must be used for projects in which two
2.6or more municipalities cooperate. Each municipality that receives a distribution under this
2.7paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
2.8the commissioner of Iron Range resources and rehabilitation on the projects involving
2.9cooperation with other municipalities.
2.10(c) The amount that would have been computed for the current year under Minnesota
2.11Statutes 2008, section
126C.21, subdivision 4, for a school district within which the
2.12taconite was mined or quarried or within which the concentrate is produced is added to
2.13the amount to be distributed to the cities and towns located within that school district as
2.14provided in paragraph (a).
2.15EFFECTIVE DATE.This section is effective for distributions in 2012 and
2.16thereafter.
2.17 Sec. 2. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
2.18 Subd. 4. School districts. (a)23.15 cents per taxable ton, plus the increase provided
2.19in paragraph (d),less the amount that would have been computed under Minnesota
2.20Statutes 2008, section
126C.21, subdivision 4, for the current year for that district, must be
2.21allocated to qualifying school districts to be distributed, based upon the certification of the
2.22commissioner of revenue, under paragraphs (b), (c), and (f).
2.23 (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
2.24the lands from which taconite was mined or quarried were located or within which the
2.25concentrate was produced. The distribution must be based on the apportionment formula
2.26prescribed in subdivision 2.
2.27 (ii) Four cents per taxable ton from each taconite facility must be distributed to
2.28each affected school district for deposit in a fund dedicated to building maintenance
2.29and repairs, as follows:
2.30 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
2.31School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
2.32districts;
2.33 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
2.34Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
2.35districts;
3.1 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
3.2distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
3.32711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
3.4 (4) proceeds from the Northshore Mining Company or its successor are distributed
3.5to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
3.6or their successor districts; and
3.7 (5) proceeds from United Taconite or its successor are distributed to Independent
3.8School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
3.9successor districts.
3.10 Revenues that are required to be distributed to more than one district shall be
3.11apportioned according to the number of pupil units identified in section126C.05,
3.12subdivision 1 , enrolled in the second previous year.
3.13 (c)(i)15.72 cents per taxable ton, less any amount distributed under paragraph (e),
3.14shall be distributed to a group of school districts comprised of those school districts which
3.15qualify as a tax relief area under section273.134, paragraph (b) , or in which there is a
3.16qualifying municipality as defined by section273.134, paragraph (a) , in direct proportion
3.17to school district indexes as follows: for each school district, its pupil units determined
3.18under section126C.05 for the prior school year shall be multiplied by the ratio of the
3.19average adjusted net tax capacity per pupil unit for school districts receiving aid under
3.20this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
3.21ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
3.22Each district shall receive that portion of the distribution which its index bears to the sum
3.23of the indices for all school districts that receive the distributions.
3.24 (ii) Notwithstanding clause (i), each school district that receives a distribution
3.25under sections298.018 ;
298.23 to
298.28 , exclusive of any amount received under this
3.26clause;298.34 to
298.39 ;
298.391 to
298.396 ;
298.405 ; or any law imposing a tax on
3.27severed mineral values after reduction for any portion distributed to cities and towns
3.28under section126C.48, subdivision 8 , paragraph (5), that is less than the amount of its
3.29levy reduction under section126C.48, subdivision 8 , for the second year prior to the
3.30year of the distribution shall receive a distribution equal to the difference; the amount
3.31necessary to make this payment shall be derived from proportionate reductions in the
3.32initial distribution to other school districts under clause (i). If there are insufficient tax
3.33proceeds to make the distribution provided under this paragraph in any year, money must
3.34be transferred from the taconite property tax relief account in subdivision 6, to the extent
3.35of the shortfall in the distribution.
4.1 (d) Any school district described in paragraph (c) where a levy increase pursuant to
4.2section126C.17, subdivision 9 , was authorized by referendum for taxes payable in 2001,
4.3shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
4.4pupil units identified in section126C.05, subdivision 1 , enrolled in the second previous
4.5year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
4.6times the district's taxable net tax capacity in the second previous year.
4.7 If the total amount provided by paragraph (d) is insufficient to make the payments
4.8herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
4.9so as not to exceed the funds available. Any amounts received by a qualifying school
4.10district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
4.11education aid which the district receives pursuant to section126C.13 or the permissible
4.12levies of the district. Any amount remaining after the payments provided in this paragraph
4.13shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
4.14deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
4.15economic protection trust fund as provided in subdivision 11.
4.16 Each district receiving money according to this paragraph shall reserve the lesser of
4.17the amount received under this paragraph or $25 times the number of pupil units served
4.18in the district. It may use the money for early childhood programs or for outcome-based
4.19learning programs that enhance the academic quality of the district's curriculum. The
4.20outcome-based learning programs must be approved by the commissioner of education.
4.21 (e) There shall be distributed to any school district the amount which the school
4.22district was entitled to receive under section298.32 in 1975.
4.23 (f) Four cents per taxable ton must be distributed to qualifying school districts
4.24according to the distribution specified in paragraph (b), clause (ii), and two cents per
4.25taxable ton must be distributed according to the distribution specified in paragraph
4.26(c). These amounts are not subject to sections126C.21, subdivision 4 , and
126C.48,
4.27subdivision 8 .
4.28EFFECTIVE DATE.This section is effective for distributions in 2012 and
4.29thereafter.
4.30 Sec. 3. REPEALER AND REENACTMENT.
4.31Laws 2009, chapter 88, article 12, section 23, paragraph (c), is repealed and
4.32Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for
4.33fiscal year 2012 and thereafter.
1.3taconite distributions;amending Minnesota Statutes 2010, section 298.28,
1.4subdivisions 2, 4; repealing Laws 2009, chapter 88, article 12, section 23,
1.5paragraph (c).
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:
1.8 Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
1.9merchantable iron ore concentrate, hereinafter referred to as "taxable ton,"
1.10
1.11the lands from which taconite was mined or quarried were located or within which the
1.12concentrate was produced. If the mining, quarrying, and concentration, or different steps
1.13in either thereof are carried on in more than one taxing district, the commissioner shall
1.14apportion equitably the proceeds of the part of the tax going to cities and towns among
1.15such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
1.16the operation of mining or quarrying the taconite, and the remainder to the concentrating
1.17plant and to the processes of concentration, and with respect to each thereof giving due
1.18consideration to the relative extent of such operations performed in each such taxing
1.19district. The commissioner's order making such apportionment shall be subject to review
1.20by the Tax Court at the instance of any of the interested taxing districts, in the same
1.21manner as other orders of the commissioner.
1.22(b) Four cents per taxable ton shall be allocated to cities and organized townships
1.23affected by mining because their boundaries are within three miles of a taconite mine pit
1.24that has been actively mined in at least one of the prior three years. If a city or town is
1.25located near more than one mine meeting these criteria, the city or town is eligible to
2.1receive aid calculated from only the mine producing the largest taxable tonnage. When
2.2more than one municipality qualifies for aid based on one company's production, the aid
2.3must be apportioned among the municipalities in proportion to their populations. Of the
2.4amounts distributed under this paragraph to each municipality, one-half must be used for
2.5infrastructure improvement projects, and one-half must be used for projects in which two
2.6or more municipalities cooperate. Each municipality that receives a distribution under this
2.7paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
2.8the commissioner of Iron Range resources and rehabilitation on the projects involving
2.9cooperation with other municipalities.
2.10
2.11
2.12
2.13
2.14
2.15EFFECTIVE DATE.This section is effective for distributions in 2012 and
2.16thereafter.
2.17 Sec. 2. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
2.18 Subd. 4. School districts. (a)
2.19in paragraph (d),
2.20
2.21allocated to qualifying school districts to be distributed, based upon the certification of the
2.22commissioner of revenue, under paragraphs (b), (c), and (f).
2.23 (b)
2.24the lands from which taconite was mined or quarried were located or within which the
2.25concentrate was produced. The distribution must be based on the apportionment formula
2.26prescribed in subdivision 2.
2.27 (ii) Four cents per taxable ton from each taconite facility must be distributed to
2.28each affected school district for deposit in a fund dedicated to building maintenance
2.29and repairs, as follows:
2.30 (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
2.31School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
2.32districts;
2.33 (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
2.34Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
2.35districts;
3.1 (3) proceeds from the Mittal Steel Company and Minntac or their successors are
3.2distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
3.32711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
3.4 (4) proceeds from the Northshore Mining Company or its successor are distributed
3.5to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
3.6or their successor districts; and
3.7 (5) proceeds from United Taconite or its successor are distributed to Independent
3.8School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
3.9successor districts.
3.10 Revenues that are required to be distributed to more than one district shall be
3.11apportioned according to the number of pupil units identified in section
3.12subdivision 1
3.13 (c)(i)
3.14shall be distributed to a group of school districts comprised of those school districts which
3.15qualify as a tax relief area under section
3.16qualifying municipality as defined by section
3.17to school district indexes as follows: for each school district, its pupil units determined
3.18under section
3.19average adjusted net tax capacity per pupil unit for school districts receiving aid under
3.20this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
3.21ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
3.22Each district shall receive that portion of the distribution which its index bears to the sum
3.23of the indices for all school districts that receive the distributions.
3.24 (ii) Notwithstanding clause (i), each school district that receives a distribution
3.25under sections
3.26clause;
3.27severed mineral values after reduction for any portion distributed to cities and towns
3.28under section
3.29levy reduction under section
3.30year of the distribution shall receive a distribution equal to the difference; the amount
3.31necessary to make this payment shall be derived from proportionate reductions in the
3.32initial distribution to other school districts under clause (i). If there are insufficient tax
3.33proceeds to make the distribution provided under this paragraph in any year, money must
3.34be transferred from the taconite property tax relief account in subdivision 6, to the extent
3.35of the shortfall in the distribution.
4.1 (d) Any school district described in paragraph (c) where a levy increase pursuant to
4.2section
4.3shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
4.4pupil units identified in section
4.5year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
4.6times the district's taxable net tax capacity in the second previous year.
4.7 If the total amount provided by paragraph (d) is insufficient to make the payments
4.8herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
4.9so as not to exceed the funds available. Any amounts received by a qualifying school
4.10district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
4.11education aid which the district receives pursuant to section
4.12levies of the district. Any amount remaining after the payments provided in this paragraph
4.13shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
4.14deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
4.15economic protection trust fund as provided in subdivision 11.
4.16 Each district receiving money according to this paragraph shall reserve the lesser of
4.17the amount received under this paragraph or $25 times the number of pupil units served
4.18in the district. It may use the money for early childhood programs or for outcome-based
4.19learning programs that enhance the academic quality of the district's curriculum. The
4.20outcome-based learning programs must be approved by the commissioner of education.
4.21 (e) There shall be distributed to any school district the amount which the school
4.22district was entitled to receive under section
4.23 (f) Four cents per taxable ton must be distributed to qualifying school districts
4.24according to the distribution specified in paragraph (b), clause (ii), and two cents per
4.25taxable ton must be distributed according to the distribution specified in paragraph
4.26(c). These amounts are not subject to sections
4.27subdivision 8
4.28EFFECTIVE DATE.This section is effective for distributions in 2012 and
4.29thereafter.
4.30 Sec. 3. REPEALER AND REENACTMENT.
4.31Laws 2009, chapter 88, article 12, section 23, paragraph (c), is repealed and
4.32Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for
4.33fiscal year 2012 and thereafter.
