Bill Text: MN SF1268 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Iron Range fiscal disparities program repeal
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-03-11 - Referred to Taxes [SF1268 Detail]
Download: Minnesota-2013-SF1268-Introduced.html
1.2relating to taxation; property; repealing the Iron Range fiscal disparities program;
1.3correcting cross-references; amending Minnesota Statutes 2012, sections
1.4134.34, subdivision 4; 270C.89, subdivision 2; 275.011, subdivision 1; 275.025,
1.5subdivisions 1, 2; 275.065, subdivision 3; 278.14, subdivision 1; 428A.05;
1.6465.82, subdivision 2; 469.175, subdivision 6; 469.177, subdivision 3; 469.1813,
1.7subdivision 2; 477A.011, subdivisions 20, 27, 32, 35; repealing Minnesota
1.8Statutes 2012, sections 276A.01; 276A.02; 276A.03; 276A.04; 276A.05;
1.9276A.06; 276A.07; 276A.08; 276A.09.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 134.34, subdivision 4, is amended to read:
1.12 Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library
1.13basic system support grant shall not be made to a regional public library system for a
1.14participating city or county which decreases the dollar amount provided for support for
1.15operating purposes of public library service below the amount provided by it for the
1.16second, or third preceding year, whichever is less. For purposes of this subdivision and
1.17subdivision 1, any funds provided under section473.757, subdivision 2 , for extending
1.18library hours of operation shall not be considered amounts provided by a city or county for
1.19support for operating purposes of public library service. This subdivision shall not apply
1.20to participating cities or counties where the adjusted net tax capacity of that city or county
1.21has decreased, if the dollar amount of the reduction in support is not greater than the dollar
1.22amount by which support would be decreased if the reduction in support were made in
1.23direct proportion to the decrease in adjusted net tax capacity.
1.24(b) For calendar year 2009 and later, in any calendar year in which a city's or
1.25county's aid under sections477A.011 to
477A.014 or credit reimbursement under section
2.1273.1384
is reduced after the city or county has certified its levy payable in that year, it
2.2may reduce its local support by the lesser of:
2.3(1) ten percent; or
2.4(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the
2.5city's or county's revenue base, based on aids certified for the current calendar year. For
2.6calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and
2.7credit reimbursement reductions under the December 2008 unallotment, as well as any
2.8aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the
2.9commissioner of revenue will calculate the reductions under this paragraph and certify
2.10them to the commissioner of education within 15 days of May 17, 2009.
2.11(c) For taxes payable in 2010 and later, in any payable year in which the total
2.12amounts certified for city or county aids under sections477A.011 to
477A.014 are less
2.13than the total amounts paid under those sections in the previous calendar year, a city or
2.14county may reduce its local support by the lesser of:
2.15(1) ten percent; or
2.16(2) a percent equal to the ratio of:
2.17(i) the difference between (A) the sum of the aid it was paid under sections
2.18477A.011
to
477A.014 and the credit reimbursement it received under section
273.1384
2.19in the previous calendar year and (B) the sum of the aid it is certified to be paid in the
2.20current calendar year under sections477A.011 to
477A.014 and the credit reimbursement
2.21estimated to be paid under section273.1384 ; to
2.22(ii) its revenue base for the previous year, based on aids actually paid in the previous
2.23calendar year. The commissioner of revenue shall calculate the percent aid cut for each
2.24county and city under this paragraph and certify the percentage cuts to the commissioner
2.25of education by August 1 of the year prior to the year in which the reduced aids and
2.26credit reimbursements are to be paid. The percentage of reduction related to reductions
2.27to credit reimbursements under section273.1384 shall be based on the best estimation
2.28available as of July 30.
2.29(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
2.30support for public libraries below the minimum level specified in subdivision 1.
2.31(e) For purposes of this subdivision, "revenue base" means the sum of:
2.32(1) its levy for taxes payable in the current calendar year, including the levy on
2.33the fiscal disparities distribution under section276A.06, subdivision 3, paragraph (a),
2.34or
473F.08, subdivision 3 , paragraph (a);
2.35(2) its aid under sections477A.011 to
477A.014 in the current calendar year; and
2.36(3) its taconite aid in the current calendar year under sections298.28 and
298.282 .
3.1 Sec. 2. Minnesota Statutes 2012, section 270C.89, subdivision 2, is amended to read:
3.2 Subd. 2. Final report. The final abstract of assessments after adjustments by the
3.3State Board of Equalization and inclusion of any omitted property shall be submitted to
3.4the commissioner on or before September 1 of each calendar year. The final abstract
3.5must separately report the captured tax capacity of tax increment financing districts
3.6under section469.177, subdivision 2 , the areawide net tax capacity contribution values
3.7determined undersections
276A.05, subdivision 1, and section
473F.07, subdivision 1 ,
3.8and the value subject to the power line credit under section273.42 .
3.9 Sec. 3. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
3.10 Subdivision 1. Determination of levy limit. The property tax levied for any
3.11purpose under a special law that is not codified in Minnesota Statutes or a city charter
3.12provision and that is subject to a mill rate limitation imposed by the special law or city
3.13charter provision, excluding levies subject to mill rate limitations that use adjusted
3.14assessed values determined by the commissioner of revenue under section124.2131 , must
3.15not exceed the following amount for the years specified:
3.16(a) for taxes payable in 1988, the product of the applicable mill rate limitation
3.17imposed by special law or city charter provision multiplied by the total assessed valuation
3.18of all taxable property subject to the tax as adjusted by the provisions of Minnesota
3.19Statutes 1986, sections272.64 ;
273.13, subdivision 7a ; and
275.49 ;
3.20(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
3.21the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
3.22market valuation changes equal to the assessment year 1988 total market valuation of all
3.23taxable property subject to the tax divided by the assessment year 1987 total market
3.24valuation of all taxable property subject to the tax; and
3.25(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
3.26tax levy limitation for the previous year determined pursuant to this subdivision multiplied
3.27by (2) an index for market valuation changes equal to the total market valuation of all
3.28taxable property subject to the tax for the current assessment year divided by the total
3.29market valuation of all taxable property subject to the tax for the previous assessment year.
3.30For the purpose of determining the property tax levy limitation for the taxes payable
3.31year 1988 and subsequent years under this subdivision, "total market valuation" means
3.32the total market valuation of all taxable property subject to the tax without valuation
3.33adjustments for fiscal disparities (chapters 276A and chapter 473F), tax increment
3.34financing (sections469.174 to 469.179), or powerline credit (section 273.425).
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.2thereafter.
4.3 Sec. 4. Minnesota Statutes 2012, section 275.025, subdivision 1, is amended to read:
4.4 Subdivision 1. Levy amount. The state general levy is levied against
4.5commercial-industrial property and seasonal residential recreational property, as defined
4.6in this section. The state general levy base amount is $592,000,000 for taxes payable in
4.72002. For taxes payable in subsequent years, the levy base amount is increased each year
4.8by multiplying the levy base amount for the prior year by the sum of one plus the rate of
4.9increase, if any, in the implicit price deflator for government consumption expenditures
4.10and gross investment for state and local governments prepared by the Bureau of Economic
4.11Analysts of the United States Department of Commerce for the 12-month period ending
4.12March 31 of the year prior to the year the taxes are payable. The tax under this section is
4.13not treated as a local tax rate under section469.177 and is not the levy of a governmental
4.14unit underchapters 276A and chapter 473F.
4.15The commissioner shall increase or decrease the preliminary or final rate for a year
4.16as necessary to account for errors and tax base changes that affected a preliminary or final
4.17rate for either of the two preceding years. Adjustments are allowed to the extent that the
4.18necessary information is available to the commissioner at the time the rates for a year must
4.19be certified, and for the following reasons:
4.20(1) an erroneous report of taxable value by a local official;
4.21(2) an erroneous calculation by the commissioner; and
4.22(3) an increase or decrease in taxable value for commercial-industrial or seasonal
4.23residential recreational property reported on the abstracts of tax lists submitted under
4.24section275.29 that was not reported on the abstracts of assessment submitted under
4.25section270C.89 for the same year.
4.26The commissioner may, but need not, make adjustments if the total difference in the tax
4.27levied for the year would be less than $100,000.
4.28EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.29thereafter.
4.30 Sec. 5. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
4.31 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
4.32"commercial-industrial tax capacity" means the tax capacity of all taxable property
4.33classified as class 3 or class 5(1) under section273.13 , except for electric generation
5.1attached machinery under class 3 and property described in section473.625 . County
5.2commercial-industrial tax capacity amounts are not adjusted for the captured net tax
5.3capacity of a tax increment financing district under section469.177, subdivision 2 , the
5.4net tax capacity of transmission lines deducted from a local government's total net tax
5.5capacity under section273.425 , or fiscal disparities contribution and distribution net
5.6tax capacities under chapter276A or 473F.
5.7EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
5.8thereafter.
5.9 Sec. 6. Minnesota Statutes 2012, section 275.065, subdivision 3, is amended to read:
5.10 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
5.11and the county treasurer shall deliver after November 10 and on or before November 24
5.12each year, by first class mail to each taxpayer at the address listed on the county's current
5.13year's assessment roll, a notice of proposed property taxes. Upon written request by
5.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
5.15instead of on paper or by ordinary mail.
5.16 (b) The commissioner of revenue shall prescribe the form of the notice.
5.17 (c) The notice must inform taxpayers that it contains the amount of property taxes
5.18each taxing authority proposes to collect for taxes payable the following year. In the case of
5.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
5.20The notice must clearly state for each city that has a population over 500, county, school
5.21district, regional library authority established under section134.201 , and metropolitan
5.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
5.23authority in which the budget and levy will be discussed and public input allowed, prior to
5.24the final budget and levy determination. The taxing authorities must provide the county
5.25auditor with the information to be included in the notice on or before the time it certifies
5.26its proposed levy under subdivision 1. The public must be allowed to speak at that
5.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
5.28must provide a telephone number for the taxing authority that taxpayers may call if they
5.29have questions related to the notice and an address where comments will be received by
5.30mail, except that no notice required under this section shall be interpreted as requiring the
5.31printing of a personal telephone number or address as the contact information for a taxing
5.32authority. If a taxing authority does not maintain public offices where telephone calls can
5.33be received by the authority, the authority may inform the county of the lack of a public
5.34telephone number and the county shall not list a telephone number for that taxing authority.
5.35 (d) The notice must state for each parcel:
6.1 (1) the market value of the property as determined under section273.11 , and used
6.2for computing property taxes payable in the following year and for taxes payable in the
6.3current year as each appears in the records of the county assessor on November 1 of the
6.4current year; and, in the case of residential property, whether the property is classified as
6.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
6.6which the market values apply and that the values are final values;
6.7 (2) the items listed below, shown separately by county, city or town, and state general
6.8tax, net of the residential and agricultural homestead credit under section273.1384 , voter
6.9approved school levy, other local school levy, and the sum of the special taxing districts,
6.10and as a total of all taxing authorities:
6.11 (i) the actual tax for taxes payable in the current year; and
6.12 (ii) the proposed tax amount.
6.13 If the county levy under clause (2) includes an amount for a lake improvement
6.14district as defined under sections103B.501 to
103B.581 , the amount attributable for that
6.15purpose must be separately stated from the remaining county levy amount.
6.16 In the case of a town or the state general tax, the final tax shall also be its proposed
6.17tax unless the town changes its levy at a special town meeting under section365.52 . If a
6.18school district has certified under section126C.17, subdivision 9 , that a referendum will
6.19be held in the school district at the November general election, the county auditor must
6.20note next to the school district's proposed amount that a referendum is pending and that, if
6.21approved by the voters, the tax amount may be higher than shown on the notice. In the
6.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
6.23listed separately from the remaining amount of the city's levy. In the case of the city of
6.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
6.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied
6.26under section134.07 may be listed separately from the remaining amount of the county's
6.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
6.28under chapter276A or 473F applies, the proposed tax levy on the captured value or the
6.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated
6.30separately and not included in the sum of the special taxing districts; and
6.31 (3) the increase or decrease between the total taxes payable in the current year and
6.32the total proposed taxes, expressed as a percentage.
6.33 For purposes of this section, the amount of the tax on homesteads qualifying under
6.34the senior citizens' property tax deferral program under chapter 290B is the total amount
6.35of property tax before subtraction of the deferred property tax amount.
7.1 (e) The notice must clearly state that the proposed or final taxes do not include
7.2the following:
7.3 (1) special assessments;
7.4 (2) levies approved by the voters after the date the proposed taxes are certified,
7.5including bond referenda and school district levy referenda;
7.6 (3) a levy limit increase approved by the voters by the first Tuesday after the first
7.7Monday in November of the levy year as provided under section275.73 ;
7.8 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
7.9occurring after the date the proposed taxes are certified;
7.10 (5) amounts necessary to pay tort judgments against the taxing authority that become
7.11final after the date the proposed taxes are certified; and
7.12 (6) the contamination tax imposed on properties which received market value
7.13reductions for contamination.
7.14 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
7.15the county treasurer to deliver the notice as required in this section does not invalidate the
7.16proposed or final tax levy or the taxes payable pursuant to the tax levy.
7.17 (g) If the notice the taxpayer receives under this section lists the property as
7.18nonhomestead, and satisfactory documentation is provided to the county assessor by the
7.19applicable deadline, and the property qualifies for the homestead classification in that
7.20assessment year, the assessor shall reclassify the property to homestead for taxes payable
7.21in the following year.
7.22 (h) In the case of class 4 residential property used as a residence for lease or rental
7.23periods of 30 days or more, the taxpayer must either:
7.24 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
7.25renter, or lessee; or
7.26 (2) post a copy of the notice in a conspicuous place on the premises of the property.
7.27 The notice must be mailed or posted by the taxpayer by November 27 or within
7.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county
7.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
7.30which the notice must be mailed in order to fulfill the requirements of this paragraph.
7.31 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
7.32districts" means the following taxing districts in the seven-county metropolitan area that
7.33levy a property tax for any of the specified purposes listed below:
7.34 (1) Metropolitan Council under section473.132 ,
473.167 ,
473.249 ,
473.325 ,
7.35473.446
,
473.521 ,
473.547 , or
473.834 ;
8.1 (2) Metropolitan Airports Commission under section473.667 ,
473.671 , or
473.672 ;
8.2and
8.3 (3) Metropolitan Mosquito Control Commission under section473.711 .
8.4 For purposes of this section, any levies made by the regional rail authorities in the
8.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
8.6398A shall be included with the appropriate county's levy.
8.7 (j) The governing body of a county, city, or school district may, with the consent
8.8of the county board, include supplemental information with the statement of proposed
8.9property taxes about the impact of state aid increases or decreases on property tax
8.10increases or decreases and on the level of services provided in the affected jurisdiction.
8.11This supplemental information may include information for the following year, the current
8.12year, and for as many consecutive preceding years as deemed appropriate by the governing
8.13body of the county, city, or school district. It may include only information regarding:
8.14 (1) the impact of inflation as measured by the implicit price deflator for state and
8.15local government purchases;
8.16 (2) population growth and decline;
8.17 (3) state or federal government action; and
8.18 (4) other financial factors that affect the level of property taxation and local services
8.19that the governing body of the county, city, or school district may deem appropriate to
8.20include.
8.21 The information may be presented using tables, written narrative, and graphic
8.22representations and may contain instruction toward further sources of information or
8.23opportunity for comment.
8.24EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
8.25thereafter.
8.26 Sec. 7. Minnesota Statutes 2012, section 278.14, subdivision 1, is amended to read:
8.27 Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed
8.28tax as provided in this section. As used in this section, "mistakenly billed tax" means an
8.29amount of property tax that was billed, to the extent the amount billed exceeds the accurate
8.30tax amount due to a misclassification of the owner's property under section273.13 or a
8.31mathematical error in the calculation of the tax on the owner's property, together with
8.32any penalty or interest paid on that amount. This section applies only to taxes payable
8.33in the current year and the two prior years. As used in this section, "mathematical error"
8.34is limited to an error in:
9.1(1) converting the market value of a property to tax capacity or to a referendum
9.2market value;
9.3(2) application of the tax rate as computed by the auditor under sections275.08,
9.4subdivisions 1b, 1c, and 1d ;
276A.06, subdivisions 4 and 5; and
473F.07 , subdivisions 4
9.5and 5, to the property's tax capacity or referendum market value; or
9.6(3) calculation of or eligibility for a credit.
9.7The remedy provided under this section does not apply to a misclassification under
9.8section273.13 that is due to the failure of the property owner to apply for the correct
9.9classification as required by law.
9.10 Sec. 8. Minnesota Statutes 2012, section 428A.05, is amended to read:
9.11428A.05 COLLECTION OF SERVICE CHARGES.
9.12Service charges may be imposed on the basis of the net tax capacity of the property
9.13on which the service charge is imposed but must be spread only upon the net tax capacity
9.14of the taxable property located in the geographic area described in the ordinance. Service
9.15charges based on net tax capacity may be payable and collected at the same time and in
9.16the same manner as provided for payment and collection of ad valorem taxes. When made
9.17payable in the same manner as ad valorem taxes, service charges not paid on or before the
9.18applicable due date shall be subject to the same penalty and interest as in the case of ad
9.19valorem tax amounts not paid by the respective due date. The due date for a service charge
9.20payable in the same manner as ad valorem taxes is the due date given in law for the real or
9.21personal property tax for the property on which the service charge is imposed. Service
9.22charges imposed on net tax capacity which are to become payable in the following year
9.23must be certified to the county auditor by the date provided in section429.061, subdivision
9.243 , for the annual certification of special assessment installments. Other service charges
9.25imposed must be collected as provided by ordinance. Service charges based on net tax
9.26capacity collected under sections428A.01 to
428A.10 are not included in computations
9.27under section469.177 , chapter 276A or 473F, or any other law that applies to general ad
9.28valorem levies. For the purpose of this section, "net tax capacity" means the net tax capacity
9.29most recently determined at the time that tax rates are determined under section275.08 .
9.30EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
9.31thereafter.
9.32 Sec. 9. Minnesota Statutes 2012, section 465.82, subdivision 2, is amended to read:
9.33 Subd. 2. Contents of plan. The plan must state:
10.1(1) the specific cooperative activities the units will engage in during the first two
10.2years of the venture;
10.3(2) the steps to be taken to effect the merger of the governmental units, with
10.4completion no later than four years after the process begins;
10.5(3) the steps by which a single governing body will be created or, when the entire
10.6territory of a unit will be apportioned between or among two or more units contiguous
10.7to the unit that is to be apportioned, the steps to be taken by the governing bodies of the
10.8remaining units to provide for representation of the residents of the apportioned unit;
10.9(4) changes in services provided, facilities used, and administrative operations and
10.10staffing required to effect the preliminary cooperative activities and the final merger, and
10.11a two-, five-, and ten-year projection of expenditures for each unit if it combined and
10.12if it remained separate;
10.13(5) treatment of employees of the merging governmental units, specifically including
10.14provisions for reassigning employees, dealing with exclusive representatives, and
10.15providing financial incentives to encourage early retirements;
10.16(6) financial arrangements for the merger, specifically including responsibility for
10.17debt service on outstanding obligations of the merging units;
10.18(7) one- and two-year impact analyses, prepared by the granting state agency at the
10.19request of the local government unit, of major state aid revenues received for each unit
10.20if it combined and if it remained separate, including an impact analysis, prepared by the
10.21Department of Revenue, of any property tax revenue implications associated with tax
10.22increment financing districts and fiscal disparities under chapter276A or 473F resulting
10.23from the merger;
10.24(8) procedures for a referendum to be held before the proposed combination to
10.25approve combining the local government units, specifically stating whether a majority of
10.26those voting in each district proposed for combination or a majority of those voting on the
10.27question in the entire area proposed for combination is needed to pass the referendum; and
10.28(9) a time schedule for implementation.
10.29Notwithstanding clause (3) or any other law to the contrary, all current members of
10.30the governing bodies of the local government units that propose to combine under sections
10.31465.81
to
465.86 may serve on the initial governing body of the combined unit until a
10.32gradual reduction in membership is achieved by foregoing election of new members when
10.33terms expire until the number permitted by other law is reached.
10.34EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
10.35thereafter.
11.1 Sec. 10. Minnesota Statutes 2012, section 469.175, subdivision 6, is amended to read:
11.2 Subd. 6. Annual financial reporting. (a) The state auditor shall develop a uniform
11.3system of accounting and financial reporting for tax increment financing districts. The
11.4system of accounting and financial reporting shall, as nearly as possible:
11.5(1) provide for full disclosure of the sources and uses of tax increments of the district;
11.6(2) permit comparison and reconciliation with the affected local government's
11.7accounts and financial reports;
11.8(3) permit auditing of the funds expended on behalf of a district, including a single
11.9district that is part of a multidistrict project or that is funded in part or whole through
11.10the use of a development account funded with tax increments from other districts or
11.11with other public money;
11.12(4) be consistent with generally accepted accounting principles.
11.13(b) The authority must annually submit to the state auditor a financial report
11.14in compliance with paragraph (a). Copies of the report must also be provided to the
11.15county auditor and to the governing body of the municipality, if the authority is not
11.16the municipality. To the extent necessary to permit compliance with the requirement
11.17of financial reporting, the county and any other appropriate local government unit or
11.18private entity must provide the necessary records or information to the authority or the
11.19state auditor as provided by the system of accounting and financial reporting developed
11.20pursuant to paragraph (a). The authority must submit the annual report for a year on or
11.21before August 1 of the next year.
11.22(c) The annual financial report must also include the following items:
11.23(1) the original net tax capacity of the district and any subdistrict under section
11.24469.177, subdivision 1
;
11.25(2) the net tax capacity for the reporting period of the district and any subdistrict;
11.26(3) the captured net tax capacity of the district;
11.27(4) any fiscal disparity deduction from the captured net tax capacity under section
11.28469.177, subdivision 3
;
11.29(5) the captured net tax capacity retained for tax increment financing under section
11.30469.177, subdivision 2
, paragraph (a), clause (1);
11.31(6) any captured net tax capacity distributed among affected taxing districts under
11.32section469.177, subdivision 2 , paragraph (a), clause (2);
11.33(7) the type of district;
11.34(8) the date the municipality approved the tax increment financing plan and the
11.35date of approval of any modification of the tax increment financing plan, the approval of
12.1which requires notice, discussion, a public hearing, and findings under subdivision 4,
12.2paragraph (a);
12.3(9) the date the authority first requested certification of the original net tax capacity
12.4of the district and the date of the request for certification regarding any parcel added
12.5to the district;
12.6(10) the date the county auditor first certified the original net tax capacity of the
12.7district and the date of certification of the original net tax capacity of any parcel added
12.8to the district;
12.9(11) the month and year in which the authority has received or anticipates it will
12.10receive the first increment from the district;
12.11(12) the date the district must be decertified;
12.12(13) for the reporting period and prior years of the district, the actual amount
12.13received from, at least, the following categories:
12.14(i) tax increments paid by the captured net tax capacity retained for tax increment
12.15financing under section469.177, subdivision 2 , paragraph (a), clause (1), but excluding
12.16any excess taxes;
12.17(ii) tax increments that are interest or other investment earnings on or from tax
12.18increments;
12.19(iii) tax increments that are proceeds from the sale or lease of property, tangible or
12.20intangible, purchased by the authority with tax increments;
12.21(iv) tax increments that are repayments of loans or other advances made by the
12.22authority with tax increments;
12.23(v) bond proceeds; and
12.24(vi) the market value homestead credit paid to the authority under section273.1384 ;
12.25(14) for the reporting period and for the prior years of the district, the actual amount
12.26expended for, at least, the following categories:
12.27(i) acquisition of land and buildings through condemnation or purchase;
12.28(ii) site improvements or preparation costs;
12.29(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or
12.30other similar public improvements;
12.31(iv) administrative costs, including the allocated cost of the authority; and
12.32(v) for housing districts, construction of affordable housing;
12.33(15) the amount of any payments for activities and improvements located outside of
12.34the district that are paid for or financed with tax increments;
12.35(16) the amount of payments of principal and interest that are made during the
12.36reporting period on any nondefeased:
13.1(i) general obligation tax increment financing bonds; and
13.2(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.3(17) the principal amount, at the end of the reporting period, of any nondefeased:
13.4(i) general obligation tax increment financing bonds; and
13.5(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.6(18) the amount of principal and interest payments that are due for the current
13.7calendar year on any nondefeased:
13.8(i) general obligation tax increment financing bonds; and
13.9(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.10(19) if the fiscal disparities contribution under chapter276A or 473F for the district
13.11is computed under section469.177, subdivision 3 , paragraph (a), the amount of total
13.12increased property taxes to be paid from outside the tax increment financing district; and
13.13(20) any additional information the state auditor may require.
13.14(d) The reporting requirements imposed by this subdivision apply to districts
13.15certified before, on, and after August 1, 1979.
13.16EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
13.17thereafter.
13.18 Sec. 11. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
13.19 Subd. 3. Tax increment, relationship tochapters 276A and chapter 473F. (a)
13.20Unless the governing body elects pursuant to paragraph (b) the following method of
13.21computation shall apply to a district other than an economic development district for
13.22which the request for certification was made after June 30, 1997:
13.23(1) The original net tax capacity and the current net tax capacity shall be determined
13.24before the application of the fiscal disparity provisions of chapter276A or 473F. Where
13.25the original net tax capacity is equal to or greater than the current net tax capacity, there is
13.26no captured net tax capacity and no tax increment determination. Where the original net
13.27tax capacity is less than the current net tax capacity, the difference between the original
13.28net tax capacity and the current net tax capacity is the captured net tax capacity. This
13.29amount less any portion thereof which the authority has designated, in its tax increment
13.30financing plan, to share with the local taxing districts is the retained captured net tax
13.31capacity of the authority.
13.32(2) The county auditor shall exclude the retained captured net tax capacity of the
13.33authority from the net tax capacity of the local taxing districts in determining local taxing
13.34district tax rates. The local tax rates so determined are to be extended against the retained
13.35captured net tax capacity of the authority as well as the net tax capacity of the local taxing
14.1districts. The tax generated by the extension of the lesser of (A) the local taxing district
14.2tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
14.3authority is the tax increment of the authority.
14.4(b) The following method of computation applies to any economic development
14.5district for which the request for certification was made after June 30, 1997, and to any
14.6other district for which the governing body, by resolution approving the tax increment
14.7financing plan pursuant to section469.175, subdivision 3 , elects:
14.8(1) The original net tax capacity shall be determined before the application of the
14.9fiscal disparity provisions of chapter276A or 473F. The current net tax capacity shall
14.10exclude any fiscal disparity commercial-industrial net tax capacity increase between
14.11the original year and the current year multiplied by the fiscal disparity ratio determined
14.12pursuant to section
276A.06, subdivision 7, or
473F.08, subdivision 6 . Where the original
14.13net tax capacity is equal to or greater than the current net tax capacity, there is no captured
14.14net tax capacity and no tax increment determination. Where the original net tax capacity is
14.15less than the current net tax capacity, the difference between the original net tax capacity
14.16and the current net tax capacity is the captured net tax capacity. This amount less any
14.17portion thereof which the authority has designated, in its tax increment financing plan, to
14.18share with the local taxing districts is the retained captured net tax capacity of the authority.
14.19(2) The county auditor shall exclude the retained captured net tax capacity of the
14.20authority from the net tax capacity of the local taxing districts in determining local taxing
14.21district tax rates. The local tax rates so determined are to be extended against the retained
14.22captured net tax capacity of the authority as well as the net tax capacity of the local taxing
14.23districts. The tax generated by the extension of the lesser of (A) the local taxing district
14.24tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
14.25authority is the tax increment of the authority.
14.26(3) An election by the governing body pursuant to paragraph (b) shall be submitted
14.27to the county auditor by the authority at the time of the request for certification pursuant to
14.28subdivision 1.
14.29(c) The method of computation of tax increment applied to a district pursuant to
14.30paragraph (a) or (b) shall remain the same for the duration of the district, except that
14.31the governing body may elect to change its election from the method of computation in
14.32paragraph (a) to the method in paragraph (b).
14.33EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
14.34thereafter.
14.35 Sec. 12. Minnesota Statutes 2012, section 469.1813, subdivision 2, is amended to read:
15.1 Subd. 2. Abatement resolution. (a) The governing body of a political subdivision
15.2may grant an abatement only by adopting an abatement resolution, specifying the terms
15.3of the abatement. In the case of a town, the board of supervisors may approve the
15.4abatement resolution. The resolution must also include a specific statement as to the
15.5nature and extent of the public benefits which the governing body expects to result from
15.6the agreement. The resolution may provide that the political subdivision will retain or
15.7transfer to another political subdivision the abatement to pay for all or part of the cost of
15.8acquisition or improvement of public infrastructure, whether or not located on or adjacent
15.9to the parcel for which the tax is abated. The abatement may reduce all or part of the
15.10property tax amount for the political subdivision on the parcel. A political subdivision's
15.11maximum annual amount for a parcel equals its total local tax rate multiplied by the
15.12total net tax capacity of the parcel.
15.13(b) The political subdivision may limit the abatement:
15.14(1) to a specific dollar amount per year or in total;
15.15(2) to the increase in property taxes resulting from improvement of the property;
15.16(3) to the increases in property taxes resulting from increases in the market value
15.17or tax capacity of the property;
15.18(4) in any other manner the governing body of the subdivision determines is
15.19appropriate; or
15.20(5) to the interest and penalty that would otherwise be due on taxes that are deferred.
15.21(c) The political subdivision may not abate tax attributable to the areawide tax under
15.22chapter276A or 473F, except as provided in this subdivision.
15.23EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
15.24thereafter.
15.25 Sec. 13. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to read:
15.26 Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
15.27capacity computed using the net tax capacity rates in section273.13 for taxes payable
15.28in the year of the aid distribution, and the market values, after the exclusion in section
15.29273.13, subdivision 35
, for taxes payable in the year prior to the aid distribution plus (2)
15.30a city's fiscal disparities distribution tax capacity under section276A.06, subdivision 2,
15.31paragraph (b), or
473F.08, subdivision 2 , paragraph (b), for taxes payable in the year prior
15.32to that for which aids are being calculated. The market value utilized in computing city
15.33net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
15.34industrial property as defined in section276A.01, subdivision 3, or
473F.02, subdivision 3 ,
15.35multiplied by the ratio determined pursuant to section276A.06, subdivision 2, paragraph
16.1(a), or
473F.08, subdivision 2 , paragraph (a), (2) the market value of the captured value
16.2of tax increment financing districts as defined in section469.177, subdivision 2 , and (3)
16.3the market value of transmission lines deducted from a city's total net tax capacity under
16.4section273.425 . The city net tax capacity will be computed using equalized market values.
16.5 Sec. 14. Minnesota Statutes 2012, section 477A.011, subdivision 27, is amended to read:
16.6 Subd. 27. Revenue base. "Revenue base" means the amount levied for taxes
16.7payable in the previous year, including the levy on the fiscal disparity distribution under
16.8section276A.06, subdivision 3, paragraph (a), or
473F.08, subdivision 3 , paragraph (a);
16.9plus the originally certified local government aid in the previous year under sections
16.10477A.011
and
477A.013 ; and the taconite aids received in the previous year under sections
16.11298.28
and
298.282 .
16.12 Sec. 15. Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to read:
16.13 Subd. 32. Commercial industrial percentage. "Commercial industrial percentage"
16.14for a city is 100 times the sum of the estimated market values of all real property in the city
16.15classified as class 3 under section273.13, subdivision 24 , excluding public utility property,
16.16to the total market value of all taxable real and personal property in the city. The market
16.17values are the amounts computed before any adjustments for fiscal disparities under
16.18section276A.06 or
473F.08 . The market values used for this subdivision are not equalized.
16.19 Sec. 16. Minnesota Statutes 2012, section 477A.011, subdivision 35, is amended to read:
16.20 Subd. 35. Tax effort rate. "Tax effort rate" means the net levy for all cities divided
16.21by the sum of the city net tax capacity for all cities. For purposes of this section, "net
16.22levy" means the city levy, after all adjustments, used for calculating the local tax rate
16.23under section275.08 for taxes payable in the year prior to the aid distribution. The fiscal
16.24disparity distribution levy under chapter276A or 473F is included in net levy.
16.25 Sec. 17. REPEALER.
16.26Minnesota Statutes 2012, sections 276A.01; 276A.02; 276A.03; 276A.04; 276A.05;
16.27276A.06; 276A.07; 276A.08; and 276A.09, are repealed.
1.3correcting cross-references; amending Minnesota Statutes 2012, sections
1.4134.34, subdivision 4; 270C.89, subdivision 2; 275.011, subdivision 1; 275.025,
1.5subdivisions 1, 2; 275.065, subdivision 3; 278.14, subdivision 1; 428A.05;
1.6465.82, subdivision 2; 469.175, subdivision 6; 469.177, subdivision 3; 469.1813,
1.7subdivision 2; 477A.011, subdivisions 20, 27, 32, 35; repealing Minnesota
1.8Statutes 2012, sections 276A.01; 276A.02; 276A.03; 276A.04; 276A.05;
1.9276A.06; 276A.07; 276A.08; 276A.09.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 134.34, subdivision 4, is amended to read:
1.12 Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library
1.13basic system support grant shall not be made to a regional public library system for a
1.14participating city or county which decreases the dollar amount provided for support for
1.15operating purposes of public library service below the amount provided by it for the
1.16second, or third preceding year, whichever is less. For purposes of this subdivision and
1.17subdivision 1, any funds provided under section
1.18library hours of operation shall not be considered amounts provided by a city or county for
1.19support for operating purposes of public library service. This subdivision shall not apply
1.20to participating cities or counties where the adjusted net tax capacity of that city or county
1.21has decreased, if the dollar amount of the reduction in support is not greater than the dollar
1.22amount by which support would be decreased if the reduction in support were made in
1.23direct proportion to the decrease in adjusted net tax capacity.
1.24(b) For calendar year 2009 and later, in any calendar year in which a city's or
1.25county's aid under sections
2.2may reduce its local support by the lesser of:
2.3(1) ten percent; or
2.4(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the
2.5city's or county's revenue base, based on aids certified for the current calendar year. For
2.6calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and
2.7credit reimbursement reductions under the December 2008 unallotment, as well as any
2.8aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the
2.9commissioner of revenue will calculate the reductions under this paragraph and certify
2.10them to the commissioner of education within 15 days of May 17, 2009.
2.11(c) For taxes payable in 2010 and later, in any payable year in which the total
2.12amounts certified for city or county aids under sections
2.13than the total amounts paid under those sections in the previous calendar year, a city or
2.14county may reduce its local support by the lesser of:
2.15(1) ten percent; or
2.16(2) a percent equal to the ratio of:
2.17(i) the difference between (A) the sum of the aid it was paid under sections
2.20current calendar year under sections
2.21estimated to be paid under section
2.22(ii) its revenue base for the previous year, based on aids actually paid in the previous
2.23calendar year. The commissioner of revenue shall calculate the percent aid cut for each
2.24county and city under this paragraph and certify the percentage cuts to the commissioner
2.25of education by August 1 of the year prior to the year in which the reduced aids and
2.26credit reimbursements are to be paid. The percentage of reduction related to reductions
2.27to credit reimbursements under section
2.28available as of July 30.
2.29(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
2.30support for public libraries below the minimum level specified in subdivision 1.
2.31(e) For purposes of this subdivision, "revenue base" means the sum of:
2.32(1) its levy for taxes payable in the current calendar year, including the levy on
2.33the fiscal disparities distribution under section
2.34
2.35(2) its aid under sections
2.36(3) its taconite aid in the current calendar year under sections
3.1 Sec. 2. Minnesota Statutes 2012, section 270C.89, subdivision 2, is amended to read:
3.2 Subd. 2. Final report. The final abstract of assessments after adjustments by the
3.3State Board of Equalization and inclusion of any omitted property shall be submitted to
3.4the commissioner on or before September 1 of each calendar year. The final abstract
3.5must separately report the captured tax capacity of tax increment financing districts
3.6under section
3.7determined under
3.8and the value subject to the power line credit under section
3.9 Sec. 3. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
3.10 Subdivision 1. Determination of levy limit. The property tax levied for any
3.11purpose under a special law that is not codified in Minnesota Statutes or a city charter
3.12provision and that is subject to a mill rate limitation imposed by the special law or city
3.13charter provision, excluding levies subject to mill rate limitations that use adjusted
3.14assessed values determined by the commissioner of revenue under section
3.15not exceed the following amount for the years specified:
3.16(a) for taxes payable in 1988, the product of the applicable mill rate limitation
3.17imposed by special law or city charter provision multiplied by the total assessed valuation
3.18of all taxable property subject to the tax as adjusted by the provisions of Minnesota
3.19Statutes 1986, sections
3.20(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
3.21the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
3.22market valuation changes equal to the assessment year 1988 total market valuation of all
3.23taxable property subject to the tax divided by the assessment year 1987 total market
3.24valuation of all taxable property subject to the tax; and
3.25(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
3.26tax levy limitation for the previous year determined pursuant to this subdivision multiplied
3.27by (2) an index for market valuation changes equal to the total market valuation of all
3.28taxable property subject to the tax for the current assessment year divided by the total
3.29market valuation of all taxable property subject to the tax for the previous assessment year.
3.30For the purpose of determining the property tax levy limitation for the taxes payable
3.31year 1988 and subsequent years under this subdivision, "total market valuation" means
3.32the total market valuation of all taxable property subject to the tax without valuation
3.33adjustments for fiscal disparities (
3.34financing (sections
4.1EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.2thereafter.
4.3 Sec. 4. Minnesota Statutes 2012, section 275.025, subdivision 1, is amended to read:
4.4 Subdivision 1. Levy amount. The state general levy is levied against
4.5commercial-industrial property and seasonal residential recreational property, as defined
4.6in this section. The state general levy base amount is $592,000,000 for taxes payable in
4.72002. For taxes payable in subsequent years, the levy base amount is increased each year
4.8by multiplying the levy base amount for the prior year by the sum of one plus the rate of
4.9increase, if any, in the implicit price deflator for government consumption expenditures
4.10and gross investment for state and local governments prepared by the Bureau of Economic
4.11Analysts of the United States Department of Commerce for the 12-month period ending
4.12March 31 of the year prior to the year the taxes are payable. The tax under this section is
4.13not treated as a local tax rate under section
4.14unit under
4.15The commissioner shall increase or decrease the preliminary or final rate for a year
4.16as necessary to account for errors and tax base changes that affected a preliminary or final
4.17rate for either of the two preceding years. Adjustments are allowed to the extent that the
4.18necessary information is available to the commissioner at the time the rates for a year must
4.19be certified, and for the following reasons:
4.20(1) an erroneous report of taxable value by a local official;
4.21(2) an erroneous calculation by the commissioner; and
4.22(3) an increase or decrease in taxable value for commercial-industrial or seasonal
4.23residential recreational property reported on the abstracts of tax lists submitted under
4.24section
4.25section
4.26The commissioner may, but need not, make adjustments if the total difference in the tax
4.27levied for the year would be less than $100,000.
4.28EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
4.29thereafter.
4.30 Sec. 5. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
4.31 Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
4.32"commercial-industrial tax capacity" means the tax capacity of all taxable property
4.33classified as class 3 or class 5(1) under section
5.1attached machinery under class 3 and property described in section
5.2commercial-industrial tax capacity amounts are not adjusted for the captured net tax
5.3capacity of a tax increment financing district under section
5.4net tax capacity of transmission lines deducted from a local government's total net tax
5.5capacity under section
5.6tax capacities under chapter
5.7EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
5.8thereafter.
5.9 Sec. 6. Minnesota Statutes 2012, section 275.065, subdivision 3, is amended to read:
5.10 Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
5.11and the county treasurer shall deliver after November 10 and on or before November 24
5.12each year, by first class mail to each taxpayer at the address listed on the county's current
5.13year's assessment roll, a notice of proposed property taxes. Upon written request by
5.14the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
5.15instead of on paper or by ordinary mail.
5.16 (b) The commissioner of revenue shall prescribe the form of the notice.
5.17 (c) The notice must inform taxpayers that it contains the amount of property taxes
5.18each taxing authority proposes to collect for taxes payable the following year. In the case of
5.19a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
5.20The notice must clearly state for each city that has a population over 500, county, school
5.21district, regional library authority established under section
5.22taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
5.23authority in which the budget and levy will be discussed and public input allowed, prior to
5.24the final budget and levy determination. The taxing authorities must provide the county
5.25auditor with the information to be included in the notice on or before the time it certifies
5.26its proposed levy under subdivision 1. The public must be allowed to speak at that
5.27meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
5.28must provide a telephone number for the taxing authority that taxpayers may call if they
5.29have questions related to the notice and an address where comments will be received by
5.30mail, except that no notice required under this section shall be interpreted as requiring the
5.31printing of a personal telephone number or address as the contact information for a taxing
5.32authority. If a taxing authority does not maintain public offices where telephone calls can
5.33be received by the authority, the authority may inform the county of the lack of a public
5.34telephone number and the county shall not list a telephone number for that taxing authority.
5.35 (d) The notice must state for each parcel:
6.1 (1) the market value of the property as determined under section
6.2for computing property taxes payable in the following year and for taxes payable in the
6.3current year as each appears in the records of the county assessor on November 1 of the
6.4current year; and, in the case of residential property, whether the property is classified as
6.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
6.6which the market values apply and that the values are final values;
6.7 (2) the items listed below, shown separately by county, city or town, and state general
6.8tax, net of the residential and agricultural homestead credit under section
6.9approved school levy, other local school levy, and the sum of the special taxing districts,
6.10and as a total of all taxing authorities:
6.11 (i) the actual tax for taxes payable in the current year; and
6.12 (ii) the proposed tax amount.
6.13 If the county levy under clause (2) includes an amount for a lake improvement
6.14district as defined under sections
6.15purpose must be separately stated from the remaining county levy amount.
6.16 In the case of a town or the state general tax, the final tax shall also be its proposed
6.17tax unless the town changes its levy at a special town meeting under section
6.18school district has certified under section
6.19be held in the school district at the November general election, the county auditor must
6.20note next to the school district's proposed amount that a referendum is pending and that, if
6.21approved by the voters, the tax amount may be higher than shown on the notice. In the
6.22case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
6.23listed separately from the remaining amount of the city's levy. In the case of the city of
6.24St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
6.25remaining amount of the city's levy. In the case of Ramsey County, any amount levied
6.26under section
6.27levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
6.28under chapter
6.29proposed tax levy on the tax capacity subject to the areawide tax must each be stated
6.30separately and not included in the sum of the special taxing districts; and
6.31 (3) the increase or decrease between the total taxes payable in the current year and
6.32the total proposed taxes, expressed as a percentage.
6.33 For purposes of this section, the amount of the tax on homesteads qualifying under
6.34the senior citizens' property tax deferral program under chapter 290B is the total amount
6.35of property tax before subtraction of the deferred property tax amount.
7.1 (e) The notice must clearly state that the proposed or final taxes do not include
7.2the following:
7.3 (1) special assessments;
7.4 (2) levies approved by the voters after the date the proposed taxes are certified,
7.5including bond referenda and school district levy referenda;
7.6 (3) a levy limit increase approved by the voters by the first Tuesday after the first
7.7Monday in November of the levy year as provided under section
7.8 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
7.9occurring after the date the proposed taxes are certified;
7.10 (5) amounts necessary to pay tort judgments against the taxing authority that become
7.11final after the date the proposed taxes are certified; and
7.12 (6) the contamination tax imposed on properties which received market value
7.13reductions for contamination.
7.14 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
7.15the county treasurer to deliver the notice as required in this section does not invalidate the
7.16proposed or final tax levy or the taxes payable pursuant to the tax levy.
7.17 (g) If the notice the taxpayer receives under this section lists the property as
7.18nonhomestead, and satisfactory documentation is provided to the county assessor by the
7.19applicable deadline, and the property qualifies for the homestead classification in that
7.20assessment year, the assessor shall reclassify the property to homestead for taxes payable
7.21in the following year.
7.22 (h) In the case of class 4 residential property used as a residence for lease or rental
7.23periods of 30 days or more, the taxpayer must either:
7.24 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
7.25renter, or lessee; or
7.26 (2) post a copy of the notice in a conspicuous place on the premises of the property.
7.27 The notice must be mailed or posted by the taxpayer by November 27 or within
7.28three days of receipt of the notice, whichever is later. A taxpayer may notify the county
7.29treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
7.30which the notice must be mailed in order to fulfill the requirements of this paragraph.
7.31 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
7.32districts" means the following taxing districts in the seven-county metropolitan area that
7.33levy a property tax for any of the specified purposes listed below:
7.34 (1) Metropolitan Council under section
8.1 (2) Metropolitan Airports Commission under section
8.2and
8.3 (3) Metropolitan Mosquito Control Commission under section
8.4 For purposes of this section, any levies made by the regional rail authorities in the
8.5county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
8.6398A shall be included with the appropriate county's levy.
8.7 (j) The governing body of a county, city, or school district may, with the consent
8.8of the county board, include supplemental information with the statement of proposed
8.9property taxes about the impact of state aid increases or decreases on property tax
8.10increases or decreases and on the level of services provided in the affected jurisdiction.
8.11This supplemental information may include information for the following year, the current
8.12year, and for as many consecutive preceding years as deemed appropriate by the governing
8.13body of the county, city, or school district. It may include only information regarding:
8.14 (1) the impact of inflation as measured by the implicit price deflator for state and
8.15local government purchases;
8.16 (2) population growth and decline;
8.17 (3) state or federal government action; and
8.18 (4) other financial factors that affect the level of property taxation and local services
8.19that the governing body of the county, city, or school district may deem appropriate to
8.20include.
8.21 The information may be presented using tables, written narrative, and graphic
8.22representations and may contain instruction toward further sources of information or
8.23opportunity for comment.
8.24EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
8.25thereafter.
8.26 Sec. 7. Minnesota Statutes 2012, section 278.14, subdivision 1, is amended to read:
8.27 Subdivision 1. Applicability. A county must pay a refund of a mistakenly billed
8.28tax as provided in this section. As used in this section, "mistakenly billed tax" means an
8.29amount of property tax that was billed, to the extent the amount billed exceeds the accurate
8.30tax amount due to a misclassification of the owner's property under section
8.31mathematical error in the calculation of the tax on the owner's property, together with
8.32any penalty or interest paid on that amount. This section applies only to taxes payable
8.33in the current year and the two prior years. As used in this section, "mathematical error"
8.34is limited to an error in:
9.1(1) converting the market value of a property to tax capacity or to a referendum
9.2market value;
9.3(2) application of the tax rate as computed by the auditor under sections
9.4subdivisions 1b, 1c, and 1d
9.5and 5, to the property's tax capacity or referendum market value; or
9.6(3) calculation of or eligibility for a credit.
9.7The remedy provided under this section does not apply to a misclassification under
9.8section
9.9classification as required by law.
9.10 Sec. 8. Minnesota Statutes 2012, section 428A.05, is amended to read:
9.11428A.05 COLLECTION OF SERVICE CHARGES.
9.12Service charges may be imposed on the basis of the net tax capacity of the property
9.13on which the service charge is imposed but must be spread only upon the net tax capacity
9.14of the taxable property located in the geographic area described in the ordinance. Service
9.15charges based on net tax capacity may be payable and collected at the same time and in
9.16the same manner as provided for payment and collection of ad valorem taxes. When made
9.17payable in the same manner as ad valorem taxes, service charges not paid on or before the
9.18applicable due date shall be subject to the same penalty and interest as in the case of ad
9.19valorem tax amounts not paid by the respective due date. The due date for a service charge
9.20payable in the same manner as ad valorem taxes is the due date given in law for the real or
9.21personal property tax for the property on which the service charge is imposed. Service
9.22charges imposed on net tax capacity which are to become payable in the following year
9.23must be certified to the county auditor by the date provided in section
9.243
9.25imposed must be collected as provided by ordinance. Service charges based on net tax
9.26capacity collected under sections
9.27under section
9.28valorem levies. For the purpose of this section, "net tax capacity" means the net tax capacity
9.29most recently determined at the time that tax rates are determined under section
9.30EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
9.31thereafter.
9.32 Sec. 9. Minnesota Statutes 2012, section 465.82, subdivision 2, is amended to read:
9.33 Subd. 2. Contents of plan. The plan must state:
10.1(1) the specific cooperative activities the units will engage in during the first two
10.2years of the venture;
10.3(2) the steps to be taken to effect the merger of the governmental units, with
10.4completion no later than four years after the process begins;
10.5(3) the steps by which a single governing body will be created or, when the entire
10.6territory of a unit will be apportioned between or among two or more units contiguous
10.7to the unit that is to be apportioned, the steps to be taken by the governing bodies of the
10.8remaining units to provide for representation of the residents of the apportioned unit;
10.9(4) changes in services provided, facilities used, and administrative operations and
10.10staffing required to effect the preliminary cooperative activities and the final merger, and
10.11a two-, five-, and ten-year projection of expenditures for each unit if it combined and
10.12if it remained separate;
10.13(5) treatment of employees of the merging governmental units, specifically including
10.14provisions for reassigning employees, dealing with exclusive representatives, and
10.15providing financial incentives to encourage early retirements;
10.16(6) financial arrangements for the merger, specifically including responsibility for
10.17debt service on outstanding obligations of the merging units;
10.18(7) one- and two-year impact analyses, prepared by the granting state agency at the
10.19request of the local government unit, of major state aid revenues received for each unit
10.20if it combined and if it remained separate, including an impact analysis, prepared by the
10.21Department of Revenue, of any property tax revenue implications associated with tax
10.22increment financing districts and fiscal disparities under chapter
10.23from the merger;
10.24(8) procedures for a referendum to be held before the proposed combination to
10.25approve combining the local government units, specifically stating whether a majority of
10.26those voting in each district proposed for combination or a majority of those voting on the
10.27question in the entire area proposed for combination is needed to pass the referendum; and
10.28(9) a time schedule for implementation.
10.29Notwithstanding clause (3) or any other law to the contrary, all current members of
10.30the governing bodies of the local government units that propose to combine under sections
10.32gradual reduction in membership is achieved by foregoing election of new members when
10.33terms expire until the number permitted by other law is reached.
10.34EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
10.35thereafter.
11.1 Sec. 10. Minnesota Statutes 2012, section 469.175, subdivision 6, is amended to read:
11.2 Subd. 6. Annual financial reporting. (a) The state auditor shall develop a uniform
11.3system of accounting and financial reporting for tax increment financing districts. The
11.4system of accounting and financial reporting shall, as nearly as possible:
11.5(1) provide for full disclosure of the sources and uses of tax increments of the district;
11.6(2) permit comparison and reconciliation with the affected local government's
11.7accounts and financial reports;
11.8(3) permit auditing of the funds expended on behalf of a district, including a single
11.9district that is part of a multidistrict project or that is funded in part or whole through
11.10the use of a development account funded with tax increments from other districts or
11.11with other public money;
11.12(4) be consistent with generally accepted accounting principles.
11.13(b) The authority must annually submit to the state auditor a financial report
11.14in compliance with paragraph (a). Copies of the report must also be provided to the
11.15county auditor and to the governing body of the municipality, if the authority is not
11.16the municipality. To the extent necessary to permit compliance with the requirement
11.17of financial reporting, the county and any other appropriate local government unit or
11.18private entity must provide the necessary records or information to the authority or the
11.19state auditor as provided by the system of accounting and financial reporting developed
11.20pursuant to paragraph (a). The authority must submit the annual report for a year on or
11.21before August 1 of the next year.
11.22(c) The annual financial report must also include the following items:
11.23(1) the original net tax capacity of the district and any subdistrict under section
11.25(2) the net tax capacity for the reporting period of the district and any subdistrict;
11.26(3) the captured net tax capacity of the district;
11.27(4) any fiscal disparity deduction from the captured net tax capacity under section
11.29(5) the captured net tax capacity retained for tax increment financing under section
11.31(6) any captured net tax capacity distributed among affected taxing districts under
11.32section
11.33(7) the type of district;
11.34(8) the date the municipality approved the tax increment financing plan and the
11.35date of approval of any modification of the tax increment financing plan, the approval of
12.1which requires notice, discussion, a public hearing, and findings under subdivision 4,
12.2paragraph (a);
12.3(9) the date the authority first requested certification of the original net tax capacity
12.4of the district and the date of the request for certification regarding any parcel added
12.5to the district;
12.6(10) the date the county auditor first certified the original net tax capacity of the
12.7district and the date of certification of the original net tax capacity of any parcel added
12.8to the district;
12.9(11) the month and year in which the authority has received or anticipates it will
12.10receive the first increment from the district;
12.11(12) the date the district must be decertified;
12.12(13) for the reporting period and prior years of the district, the actual amount
12.13received from, at least, the following categories:
12.14(i) tax increments paid by the captured net tax capacity retained for tax increment
12.15financing under section
12.16any excess taxes;
12.17(ii) tax increments that are interest or other investment earnings on or from tax
12.18increments;
12.19(iii) tax increments that are proceeds from the sale or lease of property, tangible or
12.20intangible, purchased by the authority with tax increments;
12.21(iv) tax increments that are repayments of loans or other advances made by the
12.22authority with tax increments;
12.23(v) bond proceeds; and
12.24(vi) the market value homestead credit paid to the authority under section
12.25(14) for the reporting period and for the prior years of the district, the actual amount
12.26expended for, at least, the following categories:
12.27(i) acquisition of land and buildings through condemnation or purchase;
12.28(ii) site improvements or preparation costs;
12.29(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or
12.30other similar public improvements;
12.31(iv) administrative costs, including the allocated cost of the authority; and
12.32(v) for housing districts, construction of affordable housing;
12.33(15) the amount of any payments for activities and improvements located outside of
12.34the district that are paid for or financed with tax increments;
12.35(16) the amount of payments of principal and interest that are made during the
12.36reporting period on any nondefeased:
13.1(i) general obligation tax increment financing bonds; and
13.2(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.3(17) the principal amount, at the end of the reporting period, of any nondefeased:
13.4(i) general obligation tax increment financing bonds; and
13.5(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.6(18) the amount of principal and interest payments that are due for the current
13.7calendar year on any nondefeased:
13.8(i) general obligation tax increment financing bonds; and
13.9(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
13.10(19) if the fiscal disparities contribution under chapter
13.11is computed under section
13.12increased property taxes to be paid from outside the tax increment financing district; and
13.13(20) any additional information the state auditor may require.
13.14(d) The reporting requirements imposed by this subdivision apply to districts
13.15certified before, on, and after August 1, 1979.
13.16EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
13.17thereafter.
13.18 Sec. 11. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
13.19 Subd. 3. Tax increment, relationship to
13.20Unless the governing body elects pursuant to paragraph (b) the following method of
13.21computation shall apply to a district other than an economic development district for
13.22which the request for certification was made after June 30, 1997:
13.23(1) The original net tax capacity and the current net tax capacity shall be determined
13.24before the application of the fiscal disparity provisions of chapter
13.25the original net tax capacity is equal to or greater than the current net tax capacity, there is
13.26no captured net tax capacity and no tax increment determination. Where the original net
13.27tax capacity is less than the current net tax capacity, the difference between the original
13.28net tax capacity and the current net tax capacity is the captured net tax capacity. This
13.29amount less any portion thereof which the authority has designated, in its tax increment
13.30financing plan, to share with the local taxing districts is the retained captured net tax
13.31capacity of the authority.
13.32(2) The county auditor shall exclude the retained captured net tax capacity of the
13.33authority from the net tax capacity of the local taxing districts in determining local taxing
13.34district tax rates. The local tax rates so determined are to be extended against the retained
13.35captured net tax capacity of the authority as well as the net tax capacity of the local taxing
14.1districts. The tax generated by the extension of the lesser of (A) the local taxing district
14.2tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
14.3authority is the tax increment of the authority.
14.4(b) The following method of computation applies to any economic development
14.5district for which the request for certification was made after June 30, 1997, and to any
14.6other district for which the governing body, by resolution approving the tax increment
14.7financing plan pursuant to section
14.8(1) The original net tax capacity shall be determined before the application of the
14.9fiscal disparity provisions of chapter
14.10exclude any fiscal disparity commercial-industrial net tax capacity increase between
14.11the original year and the current year multiplied by the fiscal disparity ratio determined
14.12pursuant to section
14.13net tax capacity is equal to or greater than the current net tax capacity, there is no captured
14.14net tax capacity and no tax increment determination. Where the original net tax capacity is
14.15less than the current net tax capacity, the difference between the original net tax capacity
14.16and the current net tax capacity is the captured net tax capacity. This amount less any
14.17portion thereof which the authority has designated, in its tax increment financing plan, to
14.18share with the local taxing districts is the retained captured net tax capacity of the authority.
14.19(2) The county auditor shall exclude the retained captured net tax capacity of the
14.20authority from the net tax capacity of the local taxing districts in determining local taxing
14.21district tax rates. The local tax rates so determined are to be extended against the retained
14.22captured net tax capacity of the authority as well as the net tax capacity of the local taxing
14.23districts. The tax generated by the extension of the lesser of (A) the local taxing district
14.24tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
14.25authority is the tax increment of the authority.
14.26(3) An election by the governing body pursuant to paragraph (b) shall be submitted
14.27to the county auditor by the authority at the time of the request for certification pursuant to
14.28subdivision 1.
14.29(c) The method of computation of tax increment applied to a district pursuant to
14.30paragraph (a) or (b) shall remain the same for the duration of the district, except that
14.31the governing body may elect to change its election from the method of computation in
14.32paragraph (a) to the method in paragraph (b).
14.33EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
14.34thereafter.
14.35 Sec. 12. Minnesota Statutes 2012, section 469.1813, subdivision 2, is amended to read:
15.1 Subd. 2. Abatement resolution. (a) The governing body of a political subdivision
15.2may grant an abatement only by adopting an abatement resolution, specifying the terms
15.3of the abatement. In the case of a town, the board of supervisors may approve the
15.4abatement resolution. The resolution must also include a specific statement as to the
15.5nature and extent of the public benefits which the governing body expects to result from
15.6the agreement. The resolution may provide that the political subdivision will retain or
15.7transfer to another political subdivision the abatement to pay for all or part of the cost of
15.8acquisition or improvement of public infrastructure, whether or not located on or adjacent
15.9to the parcel for which the tax is abated. The abatement may reduce all or part of the
15.10property tax amount for the political subdivision on the parcel. A political subdivision's
15.11maximum annual amount for a parcel equals its total local tax rate multiplied by the
15.12total net tax capacity of the parcel.
15.13(b) The political subdivision may limit the abatement:
15.14(1) to a specific dollar amount per year or in total;
15.15(2) to the increase in property taxes resulting from improvement of the property;
15.16(3) to the increases in property taxes resulting from increases in the market value
15.17or tax capacity of the property;
15.18(4) in any other manner the governing body of the subdivision determines is
15.19appropriate; or
15.20(5) to the interest and penalty that would otherwise be due on taxes that are deferred.
15.21(c) The political subdivision may not abate tax attributable to the areawide tax under
15.22chapter
15.23EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
15.24thereafter.
15.25 Sec. 13. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to read:
15.26 Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
15.27capacity computed using the net tax capacity rates in section
15.28in the year of the aid distribution, and the market values, after the exclusion in section
15.30a city's fiscal disparities distribution tax capacity under section
15.31
15.32to that for which aids are being calculated. The market value utilized in computing city
15.33net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
15.34industrial property as defined in section
15.35multiplied by the ratio determined pursuant to section
16.1
16.2of tax increment financing districts as defined in section
16.3the market value of transmission lines deducted from a city's total net tax capacity under
16.4section
16.5 Sec. 14. Minnesota Statutes 2012, section 477A.011, subdivision 27, is amended to read:
16.6 Subd. 27. Revenue base. "Revenue base" means the amount levied for taxes
16.7payable in the previous year, including the levy on the fiscal disparity distribution under
16.8section
16.9plus the originally certified local government aid in the previous year under sections
16.12 Sec. 15. Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to read:
16.13 Subd. 32. Commercial industrial percentage. "Commercial industrial percentage"
16.14for a city is 100 times the sum of the estimated market values of all real property in the city
16.15classified as class 3 under section
16.16to the total market value of all taxable real and personal property in the city. The market
16.17values are the amounts computed before any adjustments for fiscal disparities under
16.18section
16.19 Sec. 16. Minnesota Statutes 2012, section 477A.011, subdivision 35, is amended to read:
16.20 Subd. 35. Tax effort rate. "Tax effort rate" means the net levy for all cities divided
16.21by the sum of the city net tax capacity for all cities. For purposes of this section, "net
16.22levy" means the city levy, after all adjustments, used for calculating the local tax rate
16.23under section
16.24disparity distribution levy under chapter
16.25 Sec. 17. REPEALER.
16.26Minnesota Statutes 2012, sections 276A.01; 276A.02; 276A.03; 276A.04; 276A.05;
16.27276A.06; 276A.07; 276A.08; and 276A.09, are repealed.
