1.1                          A bill for an act
  1.2             relating to taxation; authorizing the city of 
  1.3             Minneapolis to impose a property tax on certain 
  1.4             transit zone property. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF MINNEAPOLIS; TRANSIT ZONE TAX.] 
  1.7      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.8   section, the following terms have the meanings given. 
  1.9      (b) "City" means the city of Minneapolis. 
  1.10     (c) "Transit zone tax capacity" means the reduction in net 
  1.11  tax capacity of transit zone property in the city that result 
  1.12  from the reduced class rate under the provisions of Minnesota 
  1.13  Statutes, section 273.13, subdivision 23, paragraph (c), or a 
  1.14  successor provision.  Transit zone tax capacity is determined 
  1.15  without regard to captured or original net tax capacity under 
  1.16  Minnesota Statutes, section 469.177, or to the distribution or 
  1.17  contribution value under Minnesota Statutes, section 473F.08. 
  1.18     (d) "Transit zone property" excludes property for which a 
  1.19  building permit was issued before the enactment date of this 
  1.20  section. 
  1.21     Subd. 2.  [AUTHORITY TO IMPOSE.] (a) The city may, by 
  1.22  ordinance, impose a tax on transit zone tax capacity within the 
  1.23  city.  The city may provide by ordinance that the tax will be 
  1.24  imposed in a limited geographic area of the city that benefits 
  1.25  from the transit services funded by the tax. 
  2.1      (b) The rate of the tax equals the sum of the regular ad 
  2.2   valorem property tax rates imposed by the county, city, school 
  2.3   district, and special taxing districts in the city that apply 
  2.4   for the taxable year. 
  2.5      (c) The tax equals the rate multiplied by the transit zone 
  2.6   tax capacity in the geographic area in which the tax applies. 
  2.7      Subd. 3.  [COLLECTION AND ADMINISTRATION.] Any tax imposed 
  2.8   under this section is payable at the same time and in the same 
  2.9   manner and must be collected and imposed as provided by general 
  2.10  law for ad valorem taxes.  Any tax not paid by the due date is 
  2.11  subject to the same penalty and interest as ad valorem taxes not 
  2.12  paid by the due date. 
  2.13     Subd. 4.  [USE OF REVENUES.] The revenues from the tax 
  2.14  imposed under this section must be deposited in a separate 
  2.15  account on the city's books and records.  Money in the account 
  2.16  may only be used to provide transit services in the city or for 
  2.17  economic development projects that, in the opinion of the city, 
  2.18  increase the feasibility of existing or proposed transit system 
  2.19  services or improvements. 
  2.20     Sec. 2.  [EFFECTIVE DATE.] 
  2.21     Section 1 is effective the day following final enactment 
  2.22  and applies to the city of Minneapolis under the provisions of 
  2.23  Minnesota Statutes, section 645.023.