as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
A bill for an act
relating to property taxation; providing that cities make annual payments to
towns following annexations under certain conditions; proposing coding for new
law in Minnesota Statutes, chapter 275.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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Cities that annex property under the conditions
described in subdivision 2 must make annual payments to the town from which the
property was annexed beginning in the year following the year in which the annexation
becomes effective. Each payment is equal to:
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(1) the amount by which (i) the tax capacity of the commercial-industrial portion of
the annexed area for the current taxes payable year exceeds (ii) the tax capacity of the
commercial-industrial portion of the annexed area for the taxes payable year in which the
annexation became effective, multiplied by
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(2) the city's tax rate for the current taxes payable year.
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The payments must be made prior to November 15 of each year. The "tax capacity of the
commercial-industrial portion of the annexed area for the taxes payable year in which the
annexation became effective" must be adjusted as necessary for class rate changes enacted
after the effective date of the annexation.
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A city acquiring land through annexation
under section 414.031 or 414.033 is liable to make payments under subdivision 1 to the
town from which the land was annexed, provided that the following conditions were in
existence on the effective date of the annexation:
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(1) the town is an urban town located in the metropolitan area defined in section
473.121; and
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(2) at the time the petition was filed (i) the town was providing urban services,
including sewer and water, whether directly or through contract or joint powers agreement
with another municipality or town, to the area being annexed, or (ii) the town's adopted
comprehensive plan included a plan to provide urban services, including sewer and water,
whether directly or through contract or joint powers agreement with another municipality
or town, to the area to be annexed.
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This section is effective for annexations ordered or approved
after June 1, 2006.
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