Minnesota HF 1537: Property tax provisions modified, state general tax provisions modified, utility property excluded from state general tax, and state general levy amount reduced.

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; property; state general tax; excluding utility property from the​
1.3 state general tax; reducing the state general levy amount; amending Minnesota​
1.4 Statutes 2022, section 275.025, subdivisions 1, 2.​
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. Minnesota Statutes 2022, section 275.025, subdivision 1, is amended to read:​
1.7 Subdivision 1.Levy amount.The state general levy is levied against​
1.8 commercial-industrial property and seasonal residential recreational property, as defined​
1.9 in this section. The state general levy for commercial-industrial property is $716,990,000​
1.10 for taxes payable in 2023 and thereafter. The state general levy for commercial-industrial​
1.11 property is $620,530,000 for taxes payable in 2024 and thereafter. The state general levy​
1.12 for seasonal-recreational property is $41,690,000 for taxes payable in 2020 and thereafter.​
1.13 The tax under this section is not treated as a local tax rate under section 469.177 and is not​
1.14 the levy of a governmental unit under chapters 276A and 473F.​
1.15 The commissioner shall increase or decrease the preliminary or final rate for a year as​
1.16 necessary to account for errors and tax base changes that affected a preliminary or final rate​
1.17 for either of the two preceding years. Adjustments are allowed to the extent that the necessary​
1.18 information is available to the commissioner at the time the rates for a year must be certified,​
1.19 and for the following reasons:​
1.20 (1) an erroneous report of taxable value by a local official;​
1.21 (2) an erroneous calculation by the commissioner; and​
1​Section 1.​
REVISOR MS/AK 23-02915​01/27/23 ​
State of Minnesota​
This Document can be made available​
in alternative formats upon request​
HOUSE OF REPRESENTATIVES​
H. F. No. 1537​
NINETY-THIRD SESSION​
Authored by Swedzinski​02/09/2023​
The bill was read for the first time and referred to the Committee on Taxes​

2.1 (3) an increase or decrease in taxable value for commercial-industrial or seasonal​
2.2 residential recreational property reported to the commissioner under section 270C.85,​
2.3 subdivision 2, clause (4), for the same year.​
2.4 The commissioner may, but need not, make adjustments if the total difference in the tax​
2.5 levied for the year would be less than $100,000.​
2.6 EFFECTIVE DATE.This section is effective for property taxes payable in 2024 and​
2.7 thereafter.​
2.8 Sec. 2. Minnesota Statutes 2022, section 275.025, subdivision 2, is amended to read:​
2.9 Subd. 2.Commercial-industrial tax capacity.For the purposes of this section,​
2.10 "commercial-industrial tax capacity" means the tax capacity of all taxable property classified​
2.11 as class 3 or class 5(1) under section 273.13, excluding:​
2.12 (1) the tax capacity attributable to the first $150,000 of market value of each parcel of​
2.13 commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)​
2.14 and (2);​
2.15 (2) electric generation attached machinery under class 3; and​
2.16 (3) property described in section 473.625.; and​
2.17 (4) utility real and personal property.​
2.18 County commercial-industrial tax capacity amounts are not adjusted for the captured​
2.19 net tax capacity of a tax increment financing district under section 469.177, subdivision 2,​
2.20 the net tax capacity of transmission lines deducted from a local government's total net tax​
2.21 capacity under section 273.425, or fiscal disparities contribution and distribution net tax​
2.22 capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures​
2.23 for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and​
2.24 (2), shall apply in determining the portion of a property eligible to be considered within the​
2.25 first $150,000 of market value.​
2.26 EFFECTIVE DATE.This section is effective for assessment year 2023 and thereafter.​
2​Sec. 2.​
REVISOR MS/AK 23-02915​01/27/23 ​