Bill Text: MN SF2230 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Cities local government aid (LGA) payment in lieu of taxes distribution modifications; calculation of aid losses modifications

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-03-03 - Referred to Taxes [SF2230 Detail]

Download: Minnesota-2013-SF2230-Introduced.html

1.1A bill for an act
1.2relating to taxation; property; local government; modifying payment in lieu of
1.3taxes distribution; modifying the calculation on aid losses;amending Minnesota
1.4Statutes 2013 Supplement, sections 477A.013, subdivision 8; 477A.14,
1.5subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8,
1.8is amended to read:
1.9    Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a
1.10city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference
1.11between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
1.12    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the
1.13sum of (1) its formula aid in the previous year and (2) the product of (i) the difference
1.14between its unmet need and its certified formula aid in the previous year under subdivision
1.159, and (ii) the aid gap percentage.
1.16    (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
1.17year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
1.18its formula aid is adjusted to equal its unmet need.
1.19    (d) No city may have a formula aid amount less than zero. The aid gap percentage
1.20must be the same for all cities subject to paragraph (b).
1.21    (e) The applicable aid gap percentage must be calculated by the Department of
1.22Revenue so that the total of the aid under subdivision 9 equals the total amount available
1.23for aid under section 477A.03. Data used in calculating aids to cities under sections
1.24477A.011 to 477A.013 shall be the most recently available data as of January 1 in the
1.25year in which the aid is calculated.
2.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
2.22015 and thereafter.

2.3    Sec. 2. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is
2.4amended to read:
2.5    Subdivision 1. General distribution. Except as provided in subdivisions 2 and 3,
2.640 percent of the total payment to the county shall be deposited in the county general
2.7revenue fund to be used to provide property tax levy reduction. The remainder shall be
2.8distributed by the county in the following priority:
2.9(a) (1) 64.2 cents, for each acre of county-administered other natural resources land
2.10shall be deposited in a resource development fund to be created within the county treasury
2.11for use in resource development, forest management, game and fish habitat improvement,
2.12and recreational development and maintenance of county-administered other natural
2.13resources land. Any county receiving less than $5,000 annually for the resource
2.14development fund may elect to deposit that amount in the county general revenue fund;
2.15(b) from the funds remaining, (2) within 30 days of receipt of the payment to
2.16the county, the county treasurer shall pay each organized township ten percent of the
2.17amount received a township with land that qualifies for payment under section 477A.12,
2.18subdivision 1
, clauses (1), (2), and (5) to (7), ten percent of the payment the county
2.19received for such land within that township. Payments for natural resources lands not
2.20located in an organized township shall be deposited in the county general revenue fund.
2.21Payments to counties and townships pursuant to this paragraph shall be used to provide
2.22property tax levy reduction, except that of the payments for natural resources lands not
2.23located in an organized township, the county may allocate the amount determined to be
2.24necessary for maintenance of roads in unorganized townships. Provided that, if the total
2.25payment to the county pursuant to section 477A.12 is not sufficient to fully fund the
2.26distribution provided for in this clause, the amount available shall be distributed to each
2.27township and the county general revenue fund on a pro rata basis; and
2.28(c) (3) any remaining funds shall be deposited in the county general revenue fund.
2.29Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
2.30excess shall be used to provide property tax levy reduction.
2.31EFFECTIVE DATE.This section is effective July 1, 2014.
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