Bill Text: MN HF3040 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Inflation growth eliminated from the areawide pool, contribution percentage phased down, 1971 base value subtraction eliminated, distributions limited from the pool for certain municipalities, fiscal capacity definition modified, and areawide pool portion provided to be used for economic development by funding costs related to light rail transit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-04-30 - Introduction and first reading, referred to Taxes [HF3040 Detail]
Download: Minnesota-2011-HF3040-Introduced.html
1.2relating to the metropolitan area fiscal disparities program; eliminating
1.3inflationary growth from the areawide pool; phasing down the contribution
1.4percentage; eliminating the 1971 base value subtraction; limiting distributions
1.5from the pool for certain municipalities; modifying the definition of fiscal
1.6capacity; providing for a portion of the areawide pool to be used for economic
1.7development by funding certain costs related to light rail transit; amending
1.8Minnesota Statutes 2010, sections 473.4051, subdivision 2; 473F.02, subdivision
1.914, by adding a subdivision; 473F.06; 473F.07, subdivisions 1, 4; 473F.08,
1.10subdivisions 2, 5, 6, 7a.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2010, section 473.4051, subdivision 2, is amended to
1.13read:
1.14 Subd. 2. Operating costs. After operating revenue and federal money have been
1.15used to pay for light rail transit operations, 50 percent of the remaining operating costs
1.16must be paidby the state from the areawide pool under chapter 473F. By July 1 of
1.17each year, the council shall certify the amount necessary to fulfill this obligation in the
1.18following calendar year to the administrative auditor determined under section 473F.03.
1.19EFFECTIVE DATE.This section is effective July 1, 2013, for property taxes
1.20payable in 2014 and thereafter.
1.21 Sec. 2. Minnesota Statutes 2010, section 473F.02, is amended by adding a subdivision
1.22to read:
1.23 Subd. 13a. Aid-equivalent market value. For any municipality receiving aid
1.24under sections 477A.011 to 477A.03, its "aid-equivalent market value" is its aid received
1.25divided by the average class rate for the area, further divided by the average municipal
2.1tax rate within the area. For the purposes of this subdivision, the "average class rate for
2.2the area" means the total tax capacity for the area divided by the total estimated market
2.3value of the area. For the purposes of this subdivision, the "average municipal tax rate
2.4within the area" means the total levy of all municipalities in the area divided by the total
2.5tax capacity of the area.
2.6EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.7distribution tax capacities for taxes payable in 2014 and thereafter.
2.8 Sec. 3. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
2.9 Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation,
2.10determined as of January 2 of any year, plus its aid-equivalent market value, divided by
2.11its population, determined as of a date in the same year.
2.12EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.13distribution tax capacities for taxes payable in 2014 and thereafter.
2.14 Sec. 4. Minnesota Statutes 2010, section 473F.06, is amended to read:
2.15473F.06INCREASE IN CONTRIBUTION NET TAX CAPACITY.
2.16(a) For fiscal disparities contribution tax capacities for taxes payable in 2014, on or
2.17before July 15of each year, 2013, the auditor of each county in the area shall determine the
2.18amount, if any, by which an amount equal to 37 percent of the net tax capacity determined
2.19in the preceding year under section473F.05 , of commercial-industrial property subject to
2.20taxation within each municipality in the auditor's countyexceeds the net tax capacity in
2.211971 of commercial-industrial property subject to taxation within that municipality. If
2.22a municipality is located in two or more counties within the area, the auditors of those
2.23counties shall certify the data required by section473F.05 to the county auditor who is
2.24responsible under other provisions of law for allocating the levies of that municipality
2.25between or among the affected counties. That county auditor shall determine the amount
2.26of the net excess, if any, for the municipality under this section, and certify that amount
2.27under section473F.07 . Notwithstanding any other provision of sections
473F.01 to
2.28473F.13 to the contrary, in the case of a municipality which is designated on July 24,
2.291971, as a redevelopment area under section 401(a)(4) of the Public Works and Economic
2.30Development Act of 1965, Public Law 89-136, the increase in its net tax capacity of
2.31commercial-industrial property for purposes of this section shall be determined in each
2.32year by using as a base the net tax capacity of commercial-industrial property in that
2.33municipality in the 1989 assessment year, rather than the net tax capacity of such property
3.1in 1971. The increase in total net tax capacity determined by this section shall be reduced
3.2by the amount of any decreases in net tax capacity of commercial-industrial property
3.3resulting from any court decisions, court related stipulation agreements, or abatements
3.4for a prior year, and only in the amount of such decreases made during the 12-month
3.5period ending on May 1 of the current assessment year, where such decreases, if originally
3.6reflected in the determination of a prior year's net tax capacity under section473F.05 ,
3.7would have resulted in a smaller contribution from the municipality in that year. An
3.8adjustment for such decreases shall be made only if the municipality made a contribution
3.9in a prior year based on the higher net tax capacity of the commercial-industrial property.
3.10(b) For fiscal disparities contribution tax capacities for taxes payable in 2015, the
3.11auditor of each county in the area shall determine an amount equal to 35/37 of the amount
3.12certified under this subdivision for the previous year, plus 35 percent of the net tax
3.13capacity due to new construction of commercial-industrial property or reclassification of
3.14property to commercial-industrial within the municipality for the current year.
3.15(c) For fiscal disparities contribution tax capacities for taxes payable in 2016, the
3.16auditor of each county in the area shall determine an amount equal to 33/35 of the amount
3.17certified under this subdivision for the previous year, plus 33 percent of the net tax
3.18capacity due to new construction of commercial-industrial property or reclassification of
3.19property to commercial-industrial within the municipality for the current year.
3.20(d) For fiscal disparities contribution tax capacities for taxes payable in 2017, the
3.21auditor of each county in the area shall determine an amount equal to 31/33 of the amount
3.22certified under this subdivision for the previous year, plus 31 percent of the net tax
3.23capacity due to new construction of commercial-industrial property or reclassification of
3.24property to commercial-industrial within the municipality for the current year.
3.25(e) For fiscal disparities contribution tax capacities for taxes payable in 2018, the
3.26auditor of each county in the area shall determine an amount equal to 29/31 of the amount
3.27certified under this subdivision for the previous year, plus 29 percent of the net tax
3.28capacity due to new construction of commercial-industrial property or reclassification of
3.29property to commercial-industrial within the municipality for the current year.
3.30(f) For fiscal disparities contribution tax capacities for taxes payable in 2019, the
3.31auditor of each county in the area shall determine an amount equal to 27/29 of the amount
3.32certified under this subdivision for the previous year, plus 27 percent of the net tax
3.33capacity due to new construction of commercial-industrial property or reclassification of
3.34property to commercial-industrial within the municipality for the current year.
3.35(g) For fiscal disparities contribution tax capacities for taxes payable in 2020, the
3.36auditor of each county in the area shall determine an amount equal to 25/27 of the amount
4.1certified under this subdivision for the previous year, plus 25 percent of the net tax
4.2capacity due to new construction of commercial-industrial property or reclassification of
4.3property to commercial-industrial within the municipality for the current year.
4.4(h) For fiscal disparities contribution tax capacities for taxes payable in 2021, the
4.5auditor of each county in the area shall determine an amount equal to 23/25 of the amount
4.6certified under this subdivision for the previous year, plus 23 percent of the net tax
4.7capacity due to new construction of commercial-industrial property or reclassification of
4.8property to commercial-industrial within the municipality for the current year.
4.9(i) For fiscal disparities contribution tax capacities for taxes payable in 2022, the
4.10auditor of each county in the area shall determine an amount equal to 21/23 of the amount
4.11certified under this subdivision for the previous year, plus 21 percent of the net tax
4.12capacity due to new construction of commercial-industrial property or reclassification of
4.13property to commercial-industrial within the municipality for the current year.
4.14(j) For fiscal disparities contribution tax capacities for taxes payable in 2023, the
4.15auditor of each county in the area shall determine an amount equal to 20/21 of the amount
4.16certified under this subdivision for the previous year, plus 20 percent of the net tax
4.17capacity due to new construction of commercial-industrial property or reclassification of
4.18property to commercial-industrial within the municipality for the current year.
4.19(k) For fiscal disparities contribution tax capacities for taxes payable in 2024 and
4.20thereafter, the auditor of each county in the area shall determine an amount equal to the
4.21amount certified under this subdivision for the previous year, plus 20 percent of the net tax
4.22capacity due to new construction of commercial-industrial property or reclassification of
4.23property to commercial-industrial within the municipality for the current year.
4.24EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
4.25distribution tax capacities for taxes payable in 2014 and thereafter.
4.26 Sec. 5. Minnesota Statutes 2010, section 473F.07, subdivision 1, is amended to read:
4.27 Subdivision 1. Areawide net tax capacity. (a) Each county auditor shall certify
4.28the determinations under sections473F.05 and
473F.06 to the administrative auditor on
4.29or before August 1 of each year.
4.30The administrative auditor shall determine an amount equal to40 percent of the sum
4.31of the amounts certified under section
473F.06 . The resulting amount shall be known as
4.32the "areawide net tax capacity for ........(year)."
4.33(b) Each year, the administrative auditor must divide the amount certified by the
4.34Metropolitan Council for light rail transit operations under section 473.4051, subdivision
4.352, by the areawide tax rate for the previous year to determine a tax capacity set-aside for
5.1light rail transit operating costs. The auditor must subtract that amount from the amount
5.2determined in paragraph (a) to determine the areawide net tax capacity available for
5.3distribution for the year.
5.4EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
5.5distribution tax capacities for taxes payable in 2014 and thereafter.
5.6 Sec. 6. Minnesota Statutes 2010, section 473F.07, subdivision 4, is amended to read:
5.7 Subd. 4. Distribution net tax capacity. (a) The administrative auditor shall
5.8determine the preliminary distribution net tax capacity as the proportion which the index
5.9of each municipality bears to the sum of the indices of all municipalities and shall then
5.10multiply this proportion in the case of each municipality, by the areawide net tax capacity
5.11available for distribution.
5.12(b) For each municipality whose fiscal capacity exceeds the average fiscal capacity,
5.13the final distribution net tax capacity is equal to the lesser of (1) its contribution net tax
5.14capacity, or (2) its preliminary distribution net tax capacity multiplied by the adjustment
5.15factor determined in paragraph (d).
5.16(c) For each municipality whose fiscal capacity is less than or equal to the average
5.17fiscal capacity, the final distribution net tax capacity is equal to its preliminary distribution
5.18net tax capacity multiplied by the adjustment factor determined in paragraph (d).
5.19(d) The administrative auditor must determine an adjustment factor such that the
5.20total final distribution net tax capacity of all municipalities is equal to the areawide tax
5.21capacity available for distribution.
5.22EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
5.23distribution tax capacities for taxes payable in 2014 and thereafter.
5.24 Sec. 7. Minnesota Statutes 2010, section 473F.08, subdivision 2, is amended to read:
5.25 Subd. 2. Computation of net tax capacity. The net tax capacity of a governmental
5.26unit is its net tax capacity, as determined in accordance with other provisions of law
5.27including section469.177, subdivision 3 , subject to the following adjustments:
5.28(a) There shall be subtracted from its net tax capacity, in each municipality in which
5.29the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
5.30the same proportion to40 percent of the amount certified in that year under sections
5.31473F.06
and
473F.07 for the municipality as the total preceding year's net tax capacity
5.32of commercial-industrial property which is subject to the taxing jurisdiction of the
5.33governmental unit within the municipality, determined without regard to section469.177,
6.1subdivision 3 , bears to the total preceding year's net tax capacity of commercial-industrial
6.2property within the municipality, determined without regard to section469.177,
6.3subdivision 3 ;
6.4(b) There shall be added to its net tax capacity, in each municipality in which the
6.5governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
6.6the same proportion to the areawide net tax capacity for the year attributable to that
6.7municipality as the total preceding year's net tax capacity of residential property which is
6.8subject to the taxing jurisdiction of the governmental unit within the municipality bears to
6.9the total preceding year's net tax capacity of residential property of the municipality.
6.10EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
6.11distribution tax capacities for taxes payable in 2014 and thereafter.
6.12 Sec. 8. Minnesota Statutes 2010, section 473F.08, subdivision 5, is amended to read:
6.13 Subd. 5. Areawide tax rate. On or before August 25 of each year, the county auditor
6.14shall certify to the administrative auditor that portion of the levy of each governmental unit
6.15determined under subdivisions 3, clause (a), 3a, and 3b, plus the amount certified under
6.16section 473.4051, subdivision 2, which shall be treated as a supplemental distribution levy
6.17to the Metropolitan Council by the Ramsey County auditor. The administrative auditor
6.18shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
6.19such levies from the areawide net tax capacity. On or before September 1 of each year, the
6.20administrative auditor shall certify the areawide tax rate to each of the county auditors.
6.21EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
6.22thereafter.
6.23 Sec. 9. Minnesota Statutes 2010, section 473F.08, subdivision 6, is amended to read:
6.24 Subd. 6. Application to commercial-industrial property. The areawide tax rate
6.25determined in accordance with subdivision 5 shall apply to each commercial-industrial
6.26property subject to taxation within a municipality, including property located within any
6.27tax increment financing district, as defined in section469.174, subdivision 9 , to that
6.28portion of the net tax capacity of the item which bears the same proportion to its total
6.29net tax capacity as40 percent of the amount determined under sections
473F.06 and
6.30473F.07
is to the amount determined under section
473F.05 . The tax rate determined in
6.31accordance with subdivision 4 shall apply in the taxation of the remainder of the net
6.32tax capacity of the item.
7.1EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
7.2distribution tax capacities for taxes payable in 2014 and thereafter.
7.3 Sec. 10. Minnesota Statutes 2010, section 473F.08, subdivision 7a, is amended to read:
7.4 Subd. 7a. Certification of values; payment. The administrative auditor shall
7.5determine for each county the difference between the total levy on distribution value
7.6pursuant to subdivisions 3, clause (a), 3a, and 3b, including the amount certified under
7.7section 473.4051, subdivision 2, within the county and the total tax on contribution value
7.8pursuant to subdivision 6, within the county. On or before May 16 of each year, the
7.9administrative auditor shall certify the differences so determined to each county auditor.
7.10In addition, the administrative auditor shall certify to those county auditors for whose
7.11county the total tax on contribution value exceeds the total levy on distribution value the
7.12settlement the county is to make to the other counties of the excess of the total tax on
7.13contribution value over the total levy on distribution value in the county. On or before June
7.1415 and November 15 of each year, each county treasurer in a county having a total tax on
7.15contribution value in excess of the total levy on distribution value shall pay one-half of the
7.16excess to the other counties in accordance with the administrative auditors certification.
7.17EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.18thereafter.
1.3inflationary growth from the areawide pool; phasing down the contribution
1.4percentage; eliminating the 1971 base value subtraction; limiting distributions
1.5from the pool for certain municipalities; modifying the definition of fiscal
1.6capacity; providing for a portion of the areawide pool to be used for economic
1.7development by funding certain costs related to light rail transit; amending
1.8Minnesota Statutes 2010, sections 473.4051, subdivision 2; 473F.02, subdivision
1.914, by adding a subdivision; 473F.06; 473F.07, subdivisions 1, 4; 473F.08,
1.10subdivisions 2, 5, 6, 7a.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2010, section 473.4051, subdivision 2, is amended to
1.13read:
1.14 Subd. 2. Operating costs. After operating revenue and federal money have been
1.15used to pay for light rail transit operations, 50 percent of the remaining operating costs
1.16must be paid
1.17each year, the council shall certify the amount necessary to fulfill this obligation in the
1.18following calendar year to the administrative auditor determined under section 473F.03.
1.19EFFECTIVE DATE.This section is effective July 1, 2013, for property taxes
1.20payable in 2014 and thereafter.
1.21 Sec. 2. Minnesota Statutes 2010, section 473F.02, is amended by adding a subdivision
1.22to read:
1.23 Subd. 13a. Aid-equivalent market value. For any municipality receiving aid
1.24under sections 477A.011 to 477A.03, its "aid-equivalent market value" is its aid received
1.25divided by the average class rate for the area, further divided by the average municipal
2.1tax rate within the area. For the purposes of this subdivision, the "average class rate for
2.2the area" means the total tax capacity for the area divided by the total estimated market
2.3value of the area. For the purposes of this subdivision, the "average municipal tax rate
2.4within the area" means the total levy of all municipalities in the area divided by the total
2.5tax capacity of the area.
2.6EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.7distribution tax capacities for taxes payable in 2014 and thereafter.
2.8 Sec. 3. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
2.9 Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation,
2.10determined as of January 2 of any year, plus its aid-equivalent market value, divided by
2.11its population, determined as of a date in the same year.
2.12EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
2.13distribution tax capacities for taxes payable in 2014 and thereafter.
2.14 Sec. 4. Minnesota Statutes 2010, section 473F.06, is amended to read:
2.15473F.06
2.16(a) For fiscal disparities contribution tax capacities for taxes payable in 2014, on or
2.17before July 15
2.18
2.19in the preceding year under section
2.20taxation within each municipality in the auditor's county
2.21
2.22a municipality is located in two or more counties within the area, the auditors of those
2.23counties shall certify the data required by section
2.24responsible under other provisions of law for allocating the levies of that municipality
2.25between or among the affected counties. That county auditor shall determine the amount
2.26
2.27under section
2.28
2.29
2.30
2.31
2.32
2.33
3.1
3.2by the amount of any decreases in net tax capacity of commercial-industrial property
3.3resulting from any court decisions, court related stipulation agreements, or abatements
3.4for a prior year, and only in the amount of such decreases made during the 12-month
3.5period ending on May 1 of the current assessment year, where such decreases, if originally
3.6reflected in the determination of a prior year's net tax capacity under section
3.7would have resulted in a smaller contribution from the municipality in that year. An
3.8adjustment for such decreases shall be made only if the municipality made a contribution
3.9in a prior year based on the higher net tax capacity of the commercial-industrial property.
3.10(b) For fiscal disparities contribution tax capacities for taxes payable in 2015, the
3.11auditor of each county in the area shall determine an amount equal to 35/37 of the amount
3.12certified under this subdivision for the previous year, plus 35 percent of the net tax
3.13capacity due to new construction of commercial-industrial property or reclassification of
3.14property to commercial-industrial within the municipality for the current year.
3.15(c) For fiscal disparities contribution tax capacities for taxes payable in 2016, the
3.16auditor of each county in the area shall determine an amount equal to 33/35 of the amount
3.17certified under this subdivision for the previous year, plus 33 percent of the net tax
3.18capacity due to new construction of commercial-industrial property or reclassification of
3.19property to commercial-industrial within the municipality for the current year.
3.20(d) For fiscal disparities contribution tax capacities for taxes payable in 2017, the
3.21auditor of each county in the area shall determine an amount equal to 31/33 of the amount
3.22certified under this subdivision for the previous year, plus 31 percent of the net tax
3.23capacity due to new construction of commercial-industrial property or reclassification of
3.24property to commercial-industrial within the municipality for the current year.
3.25(e) For fiscal disparities contribution tax capacities for taxes payable in 2018, the
3.26auditor of each county in the area shall determine an amount equal to 29/31 of the amount
3.27certified under this subdivision for the previous year, plus 29 percent of the net tax
3.28capacity due to new construction of commercial-industrial property or reclassification of
3.29property to commercial-industrial within the municipality for the current year.
3.30(f) For fiscal disparities contribution tax capacities for taxes payable in 2019, the
3.31auditor of each county in the area shall determine an amount equal to 27/29 of the amount
3.32certified under this subdivision for the previous year, plus 27 percent of the net tax
3.33capacity due to new construction of commercial-industrial property or reclassification of
3.34property to commercial-industrial within the municipality for the current year.
3.35(g) For fiscal disparities contribution tax capacities for taxes payable in 2020, the
3.36auditor of each county in the area shall determine an amount equal to 25/27 of the amount
4.1certified under this subdivision for the previous year, plus 25 percent of the net tax
4.2capacity due to new construction of commercial-industrial property or reclassification of
4.3property to commercial-industrial within the municipality for the current year.
4.4(h) For fiscal disparities contribution tax capacities for taxes payable in 2021, the
4.5auditor of each county in the area shall determine an amount equal to 23/25 of the amount
4.6certified under this subdivision for the previous year, plus 23 percent of the net tax
4.7capacity due to new construction of commercial-industrial property or reclassification of
4.8property to commercial-industrial within the municipality for the current year.
4.9(i) For fiscal disparities contribution tax capacities for taxes payable in 2022, the
4.10auditor of each county in the area shall determine an amount equal to 21/23 of the amount
4.11certified under this subdivision for the previous year, plus 21 percent of the net tax
4.12capacity due to new construction of commercial-industrial property or reclassification of
4.13property to commercial-industrial within the municipality for the current year.
4.14(j) For fiscal disparities contribution tax capacities for taxes payable in 2023, the
4.15auditor of each county in the area shall determine an amount equal to 20/21 of the amount
4.16certified under this subdivision for the previous year, plus 20 percent of the net tax
4.17capacity due to new construction of commercial-industrial property or reclassification of
4.18property to commercial-industrial within the municipality for the current year.
4.19(k) For fiscal disparities contribution tax capacities for taxes payable in 2024 and
4.20thereafter, the auditor of each county in the area shall determine an amount equal to the
4.21amount certified under this subdivision for the previous year, plus 20 percent of the net tax
4.22capacity due to new construction of commercial-industrial property or reclassification of
4.23property to commercial-industrial within the municipality for the current year.
4.24EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
4.25distribution tax capacities for taxes payable in 2014 and thereafter.
4.26 Sec. 5. Minnesota Statutes 2010, section 473F.07, subdivision 1, is amended to read:
4.27 Subdivision 1. Areawide net tax capacity. (a) Each county auditor shall certify
4.28the determinations under sections
4.29or before August 1 of each year.
4.30The administrative auditor shall determine an amount equal to
4.31
4.32the "areawide net tax capacity for ........(year)."
4.33(b) Each year, the administrative auditor must divide the amount certified by the
4.34Metropolitan Council for light rail transit operations under section 473.4051, subdivision
4.352, by the areawide tax rate for the previous year to determine a tax capacity set-aside for
5.1light rail transit operating costs. The auditor must subtract that amount from the amount
5.2determined in paragraph (a) to determine the areawide net tax capacity available for
5.3distribution for the year.
5.4EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
5.5distribution tax capacities for taxes payable in 2014 and thereafter.
5.6 Sec. 6. Minnesota Statutes 2010, section 473F.07, subdivision 4, is amended to read:
5.7 Subd. 4. Distribution net tax capacity. (a) The administrative auditor shall
5.8determine the preliminary distribution net tax capacity as the proportion which the index
5.9of each municipality bears to the sum of the indices of all municipalities and shall then
5.10multiply this proportion in the case of each municipality, by the areawide net tax capacity
5.11available for distribution.
5.12(b) For each municipality whose fiscal capacity exceeds the average fiscal capacity,
5.13the final distribution net tax capacity is equal to the lesser of (1) its contribution net tax
5.14capacity, or (2) its preliminary distribution net tax capacity multiplied by the adjustment
5.15factor determined in paragraph (d).
5.16(c) For each municipality whose fiscal capacity is less than or equal to the average
5.17fiscal capacity, the final distribution net tax capacity is equal to its preliminary distribution
5.18net tax capacity multiplied by the adjustment factor determined in paragraph (d).
5.19(d) The administrative auditor must determine an adjustment factor such that the
5.20total final distribution net tax capacity of all municipalities is equal to the areawide tax
5.21capacity available for distribution.
5.22EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
5.23distribution tax capacities for taxes payable in 2014 and thereafter.
5.24 Sec. 7. Minnesota Statutes 2010, section 473F.08, subdivision 2, is amended to read:
5.25 Subd. 2. Computation of net tax capacity. The net tax capacity of a governmental
5.26unit is its net tax capacity, as determined in accordance with other provisions of law
5.27including section
5.28(a) There shall be subtracted from its net tax capacity, in each municipality in which
5.29the governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
5.30the same proportion to
5.32of commercial-industrial property which is subject to the taxing jurisdiction of the
5.33governmental unit within the municipality, determined without regard to section
6.1subdivision 3
6.2property within the municipality, determined without regard to section
6.3subdivision 3
6.4(b) There shall be added to its net tax capacity, in each municipality in which the
6.5governmental unit exercises ad valorem taxing jurisdiction, an amount which bears
6.6the same proportion to the areawide net tax capacity for the year attributable to that
6.7municipality as the total preceding year's net tax capacity of residential property which is
6.8subject to the taxing jurisdiction of the governmental unit within the municipality bears to
6.9the total preceding year's net tax capacity of residential property of the municipality.
6.10EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
6.11distribution tax capacities for taxes payable in 2014 and thereafter.
6.12 Sec. 8. Minnesota Statutes 2010, section 473F.08, subdivision 5, is amended to read:
6.13 Subd. 5. Areawide tax rate. On or before August 25 of each year, the county auditor
6.14shall certify to the administrative auditor that portion of the levy of each governmental unit
6.15determined under subdivisions 3, clause (a), 3a, and 3b, plus the amount certified under
6.16section 473.4051, subdivision 2, which shall be treated as a supplemental distribution levy
6.17to the Metropolitan Council by the Ramsey County auditor. The administrative auditor
6.18shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
6.19such levies from the areawide net tax capacity. On or before September 1 of each year, the
6.20administrative auditor shall certify the areawide tax rate to each of the county auditors.
6.21EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
6.22thereafter.
6.23 Sec. 9. Minnesota Statutes 2010, section 473F.08, subdivision 6, is amended to read:
6.24 Subd. 6. Application to commercial-industrial property. The areawide tax rate
6.25determined in accordance with subdivision 5 shall apply to each commercial-industrial
6.26property subject to taxation within a municipality, including property located within any
6.27tax increment financing district, as defined in section
6.28portion of the net tax capacity of the item which bears the same proportion to its total
6.29net tax capacity as
6.31accordance with subdivision 4 shall apply in the taxation of the remainder of the net
6.32tax capacity of the item.
7.1EFFECTIVE DATE.This section is effective for fiscal disparities contribution and
7.2distribution tax capacities for taxes payable in 2014 and thereafter.
7.3 Sec. 10. Minnesota Statutes 2010, section 473F.08, subdivision 7a, is amended to read:
7.4 Subd. 7a. Certification of values; payment. The administrative auditor shall
7.5determine for each county the difference between the total levy on distribution value
7.6pursuant to subdivisions 3, clause (a), 3a, and 3b, including the amount certified under
7.7section 473.4051, subdivision 2, within the county and the total tax on contribution value
7.8pursuant to subdivision 6, within the county. On or before May 16 of each year, the
7.9administrative auditor shall certify the differences so determined to each county auditor.
7.10In addition, the administrative auditor shall certify to those county auditors for whose
7.11county the total tax on contribution value exceeds the total levy on distribution value the
7.12settlement the county is to make to the other counties of the excess of the total tax on
7.13contribution value over the total levy on distribution value in the county. On or before June
7.1415 and November 15 of each year, each county treasurer in a county having a total tax on
7.15contribution value in excess of the total levy on distribution value shall pay one-half of the
7.16excess to the other counties in accordance with the administrative auditors certification.
7.17EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.18thereafter.
