Bill Text: MN HF680 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property tax and other property tax authority funding power eliminated.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-09 - Committee report, without further recommendation re-refer to Transportation Policy and Finance [HF680 Detail]
Download: Minnesota-2011-HF680-Introduced.html
1.2relating to regional rail authorities; eliminating the power to impose property
1.3taxes and other property tax funding of authorities; amending Minnesota Statutes
1.42010, sections 398A.04, subdivision 8; 398A.06, subdivision 2; 398A.07,
1.5subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to
1.8read:
1.9 Subd. 8. Property taxation prohibited.Before deciding to exercise the power
1.10to tax, the authority shall give six weeks' published notice in all municipalities in the
1.11region. If a number of voters in the region equal to five percent of those who voted for
1.12candidates for governor at the last gubernatorial election present a petition within nine
1.13weeks of the first published notice to the secretary of state requesting that the matter be
1.14submitted to popular vote, it shall be submitted at the next general election. The question
1.15prepared shall be:
1.16"Shall the regional rail authority have the power to impose a property tax?
1.19If a majority of those voting on the question approve or if no petition is presented
1.20within the prescribed time the authority may levy a tax at any annual rate not exceeding
1.210.04835 percent of market value of all taxable property situated within the municipality
1.22or municipalities named in its organization resolution. Its recording officer shall file,
1.23on or before September 15, in the office of the county auditor of each county in which
1.24territory under the jurisdiction of the authority is located a certified copy of the board
1.25of commissioners' resolution levying the tax, and each county auditor shall assess and
2.1extend upon the tax rolls of each municipality named in the organization resolution the
2.2portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
2.3taxable property in that municipality bears to the net tax capacity of taxable property in
2.4all municipalities named in the organization resolution. Collections of the tax shall be
2.5remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
2.6the amount levied for light rail transit purposes under this subdivision shall not exceed 75
2.7percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
2.8(a) An authority must not levy property taxes, except to the extent allowed by
2.9paragraph (b).
2.10(b) The authority may levy property taxes only to the extent the following conditions
2.11are satisfied:
2.12(1) the levy is required under the terms of general obligations bonds, issued by the
2.13authority prior to April 1, 2011, to pay the bonds; and
2.14(2) the levy is reduced by any money available to the authority from other sources to
2.15pay the bonds, in whole or part.
2.16EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.17thereafter.
2.18 Sec. 2. Minnesota Statutes 2010, section 398A.06, subdivision 2, is amended to read:
2.19 Subd. 2. Loans and donations. (a) The municipality may lend or donate money to
2.20the authority and may levy taxes, appropriate money, and issue bonds for that purpose
2.21in the manner and within the limitations prescribed by law, including but not limited
2.22to chapter 475.
2.23(b) Notwithstanding paragraph (a), a municipality may not levy property taxes to
2.24make loans or donations under this section and may only make loans and donations that
2.25the municipality can document derive from sources other than property taxes.
2.26EFFECTIVE DATE.This section is effective for loans and donations made after
2.27the day following final enactment.
2.28 Sec. 3. Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:
2.29 Subd. 2. Security. (a) Bonds may be made payable exclusively from the revenues
2.30from one or more projects, or from one or more revenue producing contracts, or from
2.31the authority's revenues generally, including but not limited to specified taxes which
2.32the authority may levy or which a particular municipality may agree to levy for a
2.33specified purpose, and may be additionally secured by a pledge of any grant, subsidy,
3.1or contribution from any public agency, including but not limited to a participating
3.2municipality, or any income or revenues from any source. They may be secured by a
3.3mortgage or deed of trust of the whole or any part of the property of the authority. They
3.4shall be payable solely from the revenues, funds, and property pledged or mortgaged for
3.5their payment. No commissioner, officer, employee, agent, or trustee of the authority shall
3.6be liable personally on its bonds or be subject to any personal liability or accountability
3.7by reason of their issuance. Neither the state nor a county or other municipality except
3.8the authority may pledge its faith and credit or taxing power or shall be obligated in any
3.9manner for the payment of the bonds or interest on them, except as specifically provided
3.10by agreement under section398A.06 ; but nothing herein shall affect the obligation of the
3.11state or municipality to perform any contract made by it with the authority, and when the
3.12authority's rights under a contract with the state or a municipality are pledged by the
3.13authority for the security of its bonds, the holders or a bond trustee may enforce the rights
3.14as a third-party beneficiary. All bonds shall be negotiable within the meaning and for the
3.15purposes of the Uniform Commercial Code, subject only to any registration requirement.
3.16(b) The provisions of section 398A.04, subdivision 8, as amended by this act, apply
3.17to bonds issued under this section after April 1, 2011.
3.18EFFECTIVE DATE.This section is effective April 1, 2011.
1.3taxes and other property tax funding of authorities; amending Minnesota Statutes
1.42010, sections 398A.04, subdivision 8; 398A.06, subdivision 2; 398A.07,
1.5subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to
1.8read:
1.9 Subd. 8. Property taxation prohibited.
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2.8(a) An authority must not levy property taxes, except to the extent allowed by
2.9paragraph (b).
2.10(b) The authority may levy property taxes only to the extent the following conditions
2.11are satisfied:
2.12(1) the levy is required under the terms of general obligations bonds, issued by the
2.13authority prior to April 1, 2011, to pay the bonds; and
2.14(2) the levy is reduced by any money available to the authority from other sources to
2.15pay the bonds, in whole or part.
2.16EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
2.17thereafter.
2.18 Sec. 2. Minnesota Statutes 2010, section 398A.06, subdivision 2, is amended to read:
2.19 Subd. 2. Loans and donations. (a) The municipality may lend or donate money to
2.20the authority and may levy taxes, appropriate money, and issue bonds for that purpose
2.21in the manner and within the limitations prescribed by law, including but not limited
2.22to chapter 475.
2.23(b) Notwithstanding paragraph (a), a municipality may not levy property taxes to
2.24make loans or donations under this section and may only make loans and donations that
2.25the municipality can document derive from sources other than property taxes.
2.26EFFECTIVE DATE.This section is effective for loans and donations made after
2.27the day following final enactment.
2.28 Sec. 3. Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:
2.29 Subd. 2. Security. (a) Bonds may be made payable exclusively from the revenues
2.30from one or more projects, or from one or more revenue producing contracts, or from
2.31the authority's revenues generally, including but not limited to specified taxes which
2.32the authority may levy or which a particular municipality may agree to levy for a
2.33specified purpose, and may be additionally secured by a pledge of any grant, subsidy,
3.1or contribution from any public agency, including but not limited to a participating
3.2municipality, or any income or revenues from any source. They may be secured by a
3.3mortgage or deed of trust of the whole or any part of the property of the authority. They
3.4shall be payable solely from the revenues, funds, and property pledged or mortgaged for
3.5their payment. No commissioner, officer, employee, agent, or trustee of the authority shall
3.6be liable personally on its bonds or be subject to any personal liability or accountability
3.7by reason of their issuance. Neither the state nor a county or other municipality except
3.8the authority may pledge its faith and credit or taxing power or shall be obligated in any
3.9manner for the payment of the bonds or interest on them, except as specifically provided
3.10by agreement under section
3.11state or municipality to perform any contract made by it with the authority, and when the
3.12authority's rights under a contract with the state or a municipality are pledged by the
3.13authority for the security of its bonds, the holders or a bond trustee may enforce the rights
3.14as a third-party beneficiary. All bonds shall be negotiable within the meaning and for the
3.15purposes of the Uniform Commercial Code, subject only to any registration requirement.
3.16(b) The provisions of section 398A.04, subdivision 8, as amended by this act, apply
3.17to bonds issued under this section after April 1, 2011.
3.18EFFECTIVE DATE.This section is effective April 1, 2011.
