Bill Text: MN SF1927 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Small Business Regulatory Relief Act; business property tax reduction; small business regulatory review board establishment
Sponsorship: Partisan Bill (Republican 5)
Status: (Introduced - Dead) 2012-02-16 - Referred to Jobs and Economic Growth [SF1927 Detail]
Download: Minnesota-2011-SF1927-Introduced.html
1.2relating to job creation; reducing business property taxes; creating a small
1.3business regulatory review board; imposing a moratorium on rulemaking by state
1.4agencies except in certain specified instances; amending Minnesota Statutes
1.52010, section 275.025, subdivisions 1, 4; proposing coding for new law in
1.6Minnesota Statutes, chapter 14.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
1.11 Subdivision 1. Levy amount. The state general levy is levied against
1.12commercial-industrial property and seasonal residential recreational property, as defined
1.13in this section. The state general levy base amount for commercial-industrial property
1.14is$592,000,000 $739,000,000 for taxes payable in 2002 2013. The state general
1.15levy base amount for seasonal recreational property is $40,600,000 for taxes payable
1.16in 2013. For taxes payable insubsequent years 2014, the each levy base amount
1.17is increasedeach year by multiplying the levy base amount for the prior year taxes
1.18payable in 2013 by the sum of one plus the rate of increase, if any, in the implicit
1.19price deflator for government consumption expenditures and gross investment for
1.20state and local governments prepared by the Bureau of Economic Analysts of the
1.21United States Department of Commerce for the 12-month period ending March 31
1.22of the year prior to the year the taxes are payable, 2013. For taxes payable in 2015
1.23and 2016, the state general levy is $743,000,000 for commercial-industrial property
1.24and $40,500,000 for seasonal residential recreational property. For taxes payable in
2.12017, the state general levy is $668,700,000 for commercial-industrial property and
2.2$36,450,000 for seasonal residential recreational property. For taxes payable in 2018, the
2.3state general levy is $594,400,000 for commercial-industrial property and $32,400,000
2.4for seasonal residential recreational property. For taxes payable in 2019, the state
2.5general levy is $520,100,000 for commercial-industrial property and $28,350,000
2.6for seasonal residential recreational property. For taxes payable in 2020, the state
2.7general levy is $445,800,000 for commercial-industrial property and $24,300,000
2.8for seasonal residential recreational property. For taxes payable in 2021, the state
2.9general levy is $371,500,000 for commercial-industrial property and $20,250,000
2.10for seasonal residential recreational property. For taxes payable in 2022, the state
2.11general levy is $297,200,000 for commercial-industrial property and $16,200,000 for
2.12seasonal residential recreational property. For taxes payable in 2023, the state general
2.13levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal
2.14residential recreational property. For taxes payable in 2024, the state general levy is
2.15$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential
2.16recreational property. For taxes payable in 2025, the state general levy is $74,300,000
2.17for commercial-industrial property and $4,050,000 for seasonal residential recreational
2.18property. The tax under this section is not treated as a local tax rate under section469.177
2.19and is not the levy of a governmental unit under chapters 276A and 473F.
2.20The commissioner shall increase or decrease the preliminary or final rate for a year
2.21as necessary to account for errors and tax base changes that affected a preliminary or final
2.22rate for either of the two preceding years. Adjustments are allowed to the extent that the
2.23necessary information is available to the commissioner at the time the rates for a year must
2.24be certified, and for the following reasons:
2.25(1) an erroneous report of taxable value by a local official;
2.26(2) an erroneous calculation by the commissioner; and
2.27(3) an increase or decrease in taxable value for commercial-industrial or seasonal
2.28residential recreational property reported on the abstracts of tax lists submitted under
2.29section275.29 that was not reported on the abstracts of assessment submitted under
2.30section270C.89 for the same year.
2.31The commissioner may, but need not, make adjustments if the total difference in the tax
2.32levied for the year would be less than $100,000.
2.33 Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
2.34 Subd. 4. Apportionment and levy of state general tax.Ninety-five percent of The
2.35state general tax must be levied by applying a uniform rate to all commercial-industrial tax
3.1capacity andfive percent of the state general tax must be levied by applying a uniform
3.2rate to all seasonal residential recreational tax capacity. On or before October 1 each
3.3year, the commissioner of revenue shall certify the preliminary state general levy rates to
3.4each county auditor that must be used to prepare the notices of proposed property taxes
3.5for taxes payable in the following year. By January 1 of each year, the commissioner
3.6shall certify the final state general levyrate rates to each county auditor that shall be
3.7used in spreading taxes.
3.8 Sec. 3. EFFECTIVE DATE.
3.9Sections 1 and 2 are effective for taxes payable in 2013 and thereafter.
3.12 Section 1. [14.129] CITATION.
3.13Sections 14.1291 to 14.1295 shall be cited as the "Small Business Regulatory Relief
3.14Act."
3.15 Sec. 2. [14.1291] CREATION AND PURPOSE.
3.16The Small Business Regulatory Review Board is created in the legislative branch to:
3.17(1) review proposed rules or revisions to existing rules to determine the impact of
3.18the proposal or revision on small businesses; and
3.19(2) examine existing rules that impact small businesses and recommend any changes
3.20that would make existing rules more efficient and cost-effective for small businesses.
3.21 Sec. 3. [14.1292] SMALL BUSINESS REGULATORY REVIEW BOARD.
3.22 Subdivision 1. Definitions. For purposes of this act, "small business" has the
3.23meaning given in section 645.445.
3.24 Subd. 2. Membership. (a) The Small Business Regulatory Review Board, known
3.25as the board, consists of 16 members including:
3.26(1) the commissioner of the Department of Employment and Economic
3.27Development, or the commissioner's designee;
3.28(2) the commissioner of the Department of Commerce, or the commissioner's
3.29designee;
3.30(3) the commissioner of the Department of Revenue, or the commissioner's designee;
3.31(4) the commissioner of the Department of Health, or the commissioner's designee;
4.1(5) the commissioner of the Department of Natural Resources, or the commissioner's
4.2designee;
4.3(6) the commissioner of the Pollution Control Agency, or the commissioner's
4.4designee;
4.5(7) three public members appointed by the speaker of the house of representatives;
4.6(8) three public members appointed by the senate Subcommittee on Committees of
4.7the Committee on Rules and Administration;
4.8(9) two members of the senate appointed by the senate Subcommittee on Committees
4.9of the Committee on Rules and Administration; and
4.10(10) two members of the house of representatives appointed by the speaker of the
4.11house of representatives.
4.12(b) Legislative members appointed to the board shall include the chairs of the
4.13legislative committees with jurisdiction over jobs and economic development or their
4.14designee, one member from the minority party of the senate, and one member from the
4.15minority party of the house of representatives.
4.16(c) Public members shall be representatives of small businesses, as either an owner
4.17of a small business or as a member of a small business trade organization.
4.18(d) The first meeting of the board shall be convened by the chair of the Legislative
4.19Coordinating Commission no later than December 1, 2012. Members shall elect a chair.
4.20The chair may convene meetings as necessary to conduct the duties prescribed by sections
4.2114.1291 to 14.1295.
4.22 Subd. 3. Terms, compensation, removal, and vacancies. The membership terms,
4.23compensation, and removal of board members, and filling of vacancies on the board
4.24are governed by section 15.0575.
4.25 Sec. 4. [14.1293] BOARD REVIEW; REPORT AND RECOMMENDATIONS.
4.26 Subdivision 1. Board review. (a) The board shall review all rules submitted to the
4.27board as required under sections 14.1294 and 14.1295, to determine whether a proposed
4.28or existing rule creates an unnecessary burden on small businesses.
4.29(b) When the board determines that a proposed or existing rule places an unnecessary
4.30burden on small businesses, it shall issue a report and recommendations regarding the
4.31rule to:
4.32(1) the agency with jurisdictional authority of the proposed or existing rule;
4.33(2) the chairs of the house of representatives and senate committees having
4.34jurisdiction over the agency; and
5.1(3) the Legislative Coordinating Commission, as necessary, to carry out the
5.2provisions of section 3.842.
5.3 Subd. 2. Rule adoption. The standing committees of the house of representatives
5.4and senate with jurisdiction over the subject matter of a proposed rule may follow
5.5the procedures set forth under section 14.126 when, upon review of the report and
5.6recommendations from the board, the committees vote that a proposed rule should not
5.7be adopted as proposed.
5.8 Sec. 5. [14.1294] IMPACT ON SMALL BUSINESSES.
5.9(a) An agency proposing a new rule, or an amendment to an existing rule, affecting
5.10small businesses shall:
5.11(1) consider methods for reducing the impact of the rule on small businesses
5.12including, but not limited to, less stringent reporting requirements, reduced fees,
5.13simplification of compliance, or exemption for small businesses from any or all
5.14requirements of the rule; and
5.15(2) submit a proposed rule having an economic impact on small businesses to the
5.16board on the same day the proposed rule is submitted for publication in the State Register.
5.17(b) An agency submitting a rule to the board shall include, along with the rule, a
5.18statement detailing the considerations made for lessening the impact of the rule on small
5.19businesses.
5.20 Sec. 6. [14.1295] REVIEW OF RULES.
5.21Beginning in 2012, each agency shall annually review the current rules of the agency
5.22and shall consider methods of reducing their impact on small businesses as provided under
5.23section 14.1294. If a method appears feasible, the agency shall propose an amendment to
5.24the rule, and submit the proposal to the board for consideration.
5.25 Sec. 7. RULEMAKING MORATORIUM.
5.26(a) For purposes of this section, "agency" has the meaning given in Minnesota
5.27Statutes, section 14.02, subdivision 2.
5.28(b) No agency shall conduct rulemaking or adopt rules for the two-year period
5.29beginning July 1, 2012, and ending June 30, 2014, except under the following
5.30circumstances:
5.31(1) to implement a federal law;
5.32(2) in relation to a declared state of emergency;
5.33(3) to respond to an emergency relating to public health or safety;
6.1(4) as enacted by the legislature; or
6.2(5) to facilitate commerce.
6.3(c) This section does not prohibit an agency from repealing rules.
6.4 Sec. 8. EFFECTIVE DATE.
6.5Sections 1 to 7 are effective the day following final enactment.
1.3business regulatory review board; imposing a moratorium on rulemaking by state
1.4agencies except in certain specified instances; amending Minnesota Statutes
1.52010, section 275.025, subdivisions 1, 4; proposing coding for new law in
1.6Minnesota Statutes, chapter 14.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
1.11 Subdivision 1. Levy amount. The state general levy is levied against
1.12commercial-industrial property and seasonal residential recreational property, as defined
1.13in this section. The state general levy base amount for commercial-industrial property
1.14is
1.15levy base amount for seasonal recreational property is $40,600,000 for taxes payable
1.16in 2013. For taxes payable in
1.17is increased
1.18payable in 2013 by the sum of one plus the rate of increase, if any, in the implicit
1.19price deflator for government consumption expenditures and gross investment for
1.20state and local governments prepared by the Bureau of Economic Analysts of the
1.21United States Department of Commerce for the 12-month period ending March 31
1.22
1.23and 2016, the state general levy is $743,000,000 for commercial-industrial property
1.24and $40,500,000 for seasonal residential recreational property. For taxes payable in
2.12017, the state general levy is $668,700,000 for commercial-industrial property and
2.2$36,450,000 for seasonal residential recreational property. For taxes payable in 2018, the
2.3state general levy is $594,400,000 for commercial-industrial property and $32,400,000
2.4for seasonal residential recreational property. For taxes payable in 2019, the state
2.5general levy is $520,100,000 for commercial-industrial property and $28,350,000
2.6for seasonal residential recreational property. For taxes payable in 2020, the state
2.7general levy is $445,800,000 for commercial-industrial property and $24,300,000
2.8for seasonal residential recreational property. For taxes payable in 2021, the state
2.9general levy is $371,500,000 for commercial-industrial property and $20,250,000
2.10for seasonal residential recreational property. For taxes payable in 2022, the state
2.11general levy is $297,200,000 for commercial-industrial property and $16,200,000 for
2.12seasonal residential recreational property. For taxes payable in 2023, the state general
2.13levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal
2.14residential recreational property. For taxes payable in 2024, the state general levy is
2.15$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential
2.16recreational property. For taxes payable in 2025, the state general levy is $74,300,000
2.17for commercial-industrial property and $4,050,000 for seasonal residential recreational
2.18property. The tax under this section is not treated as a local tax rate under section
2.19and is not the levy of a governmental unit under chapters 276A and 473F.
2.20The commissioner shall increase or decrease the preliminary or final rate for a year
2.21as necessary to account for errors and tax base changes that affected a preliminary or final
2.22rate for either of the two preceding years. Adjustments are allowed to the extent that the
2.23necessary information is available to the commissioner at the time the rates for a year must
2.24be certified, and for the following reasons:
2.25(1) an erroneous report of taxable value by a local official;
2.26(2) an erroneous calculation by the commissioner; and
2.27(3) an increase or decrease in taxable value for commercial-industrial or seasonal
2.28residential recreational property reported on the abstracts of tax lists submitted under
2.29section
2.30section
2.31The commissioner may, but need not, make adjustments if the total difference in the tax
2.32levied for the year would be less than $100,000.
2.33 Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
2.34 Subd. 4. Apportionment and levy of state general tax.
2.35state general tax must be levied by applying a uniform rate to all commercial-industrial tax
3.1capacity and
3.2rate to all seasonal residential recreational tax capacity. On or before October 1 each
3.3year, the commissioner of revenue shall certify the preliminary state general levy rates to
3.4each county auditor that must be used to prepare the notices of proposed property taxes
3.5for taxes payable in the following year. By January 1 of each year, the commissioner
3.6shall certify the final state general levy
3.7used in spreading taxes.
3.8 Sec. 3. EFFECTIVE DATE.
3.9Sections 1 and 2 are effective for taxes payable in 2013 and thereafter.
3.12 Section 1. [14.129] CITATION.
3.13Sections 14.1291 to 14.1295 shall be cited as the "Small Business Regulatory Relief
3.14Act."
3.15 Sec. 2. [14.1291] CREATION AND PURPOSE.
3.16The Small Business Regulatory Review Board is created in the legislative branch to:
3.17(1) review proposed rules or revisions to existing rules to determine the impact of
3.18the proposal or revision on small businesses; and
3.19(2) examine existing rules that impact small businesses and recommend any changes
3.20that would make existing rules more efficient and cost-effective for small businesses.
3.21 Sec. 3. [14.1292] SMALL BUSINESS REGULATORY REVIEW BOARD.
3.22 Subdivision 1. Definitions. For purposes of this act, "small business" has the
3.23meaning given in section 645.445.
3.24 Subd. 2. Membership. (a) The Small Business Regulatory Review Board, known
3.25as the board, consists of 16 members including:
3.26(1) the commissioner of the Department of Employment and Economic
3.27Development, or the commissioner's designee;
3.28(2) the commissioner of the Department of Commerce, or the commissioner's
3.29designee;
3.30(3) the commissioner of the Department of Revenue, or the commissioner's designee;
3.31(4) the commissioner of the Department of Health, or the commissioner's designee;
4.1(5) the commissioner of the Department of Natural Resources, or the commissioner's
4.2designee;
4.3(6) the commissioner of the Pollution Control Agency, or the commissioner's
4.4designee;
4.5(7) three public members appointed by the speaker of the house of representatives;
4.6(8) three public members appointed by the senate Subcommittee on Committees of
4.7the Committee on Rules and Administration;
4.8(9) two members of the senate appointed by the senate Subcommittee on Committees
4.9of the Committee on Rules and Administration; and
4.10(10) two members of the house of representatives appointed by the speaker of the
4.11house of representatives.
4.12(b) Legislative members appointed to the board shall include the chairs of the
4.13legislative committees with jurisdiction over jobs and economic development or their
4.14designee, one member from the minority party of the senate, and one member from the
4.15minority party of the house of representatives.
4.16(c) Public members shall be representatives of small businesses, as either an owner
4.17of a small business or as a member of a small business trade organization.
4.18(d) The first meeting of the board shall be convened by the chair of the Legislative
4.19Coordinating Commission no later than December 1, 2012. Members shall elect a chair.
4.20The chair may convene meetings as necessary to conduct the duties prescribed by sections
4.2114.1291 to 14.1295.
4.22 Subd. 3. Terms, compensation, removal, and vacancies. The membership terms,
4.23compensation, and removal of board members, and filling of vacancies on the board
4.24are governed by section 15.0575.
4.25 Sec. 4. [14.1293] BOARD REVIEW; REPORT AND RECOMMENDATIONS.
4.26 Subdivision 1. Board review. (a) The board shall review all rules submitted to the
4.27board as required under sections 14.1294 and 14.1295, to determine whether a proposed
4.28or existing rule creates an unnecessary burden on small businesses.
4.29(b) When the board determines that a proposed or existing rule places an unnecessary
4.30burden on small businesses, it shall issue a report and recommendations regarding the
4.31rule to:
4.32(1) the agency with jurisdictional authority of the proposed or existing rule;
4.33(2) the chairs of the house of representatives and senate committees having
4.34jurisdiction over the agency; and
5.1(3) the Legislative Coordinating Commission, as necessary, to carry out the
5.2provisions of section 3.842.
5.3 Subd. 2. Rule adoption. The standing committees of the house of representatives
5.4and senate with jurisdiction over the subject matter of a proposed rule may follow
5.5the procedures set forth under section 14.126 when, upon review of the report and
5.6recommendations from the board, the committees vote that a proposed rule should not
5.7be adopted as proposed.
5.8 Sec. 5. [14.1294] IMPACT ON SMALL BUSINESSES.
5.9(a) An agency proposing a new rule, or an amendment to an existing rule, affecting
5.10small businesses shall:
5.11(1) consider methods for reducing the impact of the rule on small businesses
5.12including, but not limited to, less stringent reporting requirements, reduced fees,
5.13simplification of compliance, or exemption for small businesses from any or all
5.14requirements of the rule; and
5.15(2) submit a proposed rule having an economic impact on small businesses to the
5.16board on the same day the proposed rule is submitted for publication in the State Register.
5.17(b) An agency submitting a rule to the board shall include, along with the rule, a
5.18statement detailing the considerations made for lessening the impact of the rule on small
5.19businesses.
5.20 Sec. 6. [14.1295] REVIEW OF RULES.
5.21Beginning in 2012, each agency shall annually review the current rules of the agency
5.22and shall consider methods of reducing their impact on small businesses as provided under
5.23section 14.1294. If a method appears feasible, the agency shall propose an amendment to
5.24the rule, and submit the proposal to the board for consideration.
5.25 Sec. 7. RULEMAKING MORATORIUM.
5.26(a) For purposes of this section, "agency" has the meaning given in Minnesota
5.27Statutes, section 14.02, subdivision 2.
5.28(b) No agency shall conduct rulemaking or adopt rules for the two-year period
5.29beginning July 1, 2012, and ending June 30, 2014, except under the following
5.30circumstances:
5.31(1) to implement a federal law;
5.32(2) in relation to a declared state of emergency;
5.33(3) to respond to an emergency relating to public health or safety;
6.1(4) as enacted by the legislature; or
6.2(5) to facilitate commerce.
6.3(c) This section does not prohibit an agency from repealing rules.
6.4 Sec. 8. EFFECTIVE DATE.
6.5Sections 1 to 7 are effective the day following final enactment.
