A bill for an act
relating to taxation; minerals; modifying minerals taxes, property taxes, and related
provisions; providing for transfers and distributions of proceeds; providing for
issuance of revenue bonds; amending Minnesota Statutes 2022, sections 273.135,
subdivision 2; 275.065, by adding a subdivision; 276.04, by adding a subdivision;
298.28, subdivision 8; 298.282, subdivision 1; 298.292, subdivision 2; Minnesota
Statutes 2023 Supplement, sections 298.018, subdivision 1; 298.28, subdivision
16.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:
The amount of the reduction authorized by subdivision 1
shall be:
(a) In the case of property located within a municipality as defined under section 273.134,
paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).
(b) In the case of property located within the boundaries of a school district which
qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
boundaries of a municipality which meets the qualifications prescribed in section 273.134,
paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).
(c) The maximum reduction of the tax is deleted text begin $315.10deleted text end new text begin $515new text end on property described in paragraph
(a) and deleted text begin $289.80 on property described indeleted text end paragraph (b).
new text begin
This section is effective beginning with property taxes payable
in 2025.
new text end
Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to
read:
new text begin
In the case of
property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to
the tax amounts shown for each jurisdiction, the statement must include a line showing the
"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax
amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may
be a negative number. If the fiscal disparities adjustment for either the current year taxes
or the proposed tax amount is a negative number, the percentage change must not be shown.
In all other respects the statement must fulfill the requirements of subdivision 3.
new text end
new text begin
This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end
Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to
read:
new text begin
In the case
of property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the previous year tax amounts, the net tax capacity portion of the tax
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown
for each jurisdiction, the statement must include a line showing the "fiscal disparities
adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown
for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may
be a negative number. In all other respects the statement must fulfill the requirements of
subdivision 2.
new text end
new text begin
This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end
Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended
to read:
(a) The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) except as provided under paragraph (b), five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;
(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;
(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);
(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;
(5) ten percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;
(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;
(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;
(8) three percent to the Douglas J. Johnson economic protection trust fund;
(9) seven percent to the taconite environmental protection fund; and
(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.
(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.
(c) For the first five years that tax paid under section 298.015,