8.4. SR 07-31-1995 - Laserfiche WebLink

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Law summaries continued Equalization board meetings Two Saturday informational meetings to discuss cabin property valuations will be required to be held by a county where at least 25 percent of the net tax capacity of a city or town within that county is classified at noncommercial seasonal residential recreational property (cabins). These Saturday meeting dates must be listed on the notice of property valuation. Delinquent taxes penalty and interest distributions The penalty and interest collected on delinquent taxes is required to be distributed to all school districts in the county rather than only to the school district in which the property is located. This is the current practice and thus merely a clarification in the law. Delegation of power relating to abatements The county board has the power to delegate the responsibility relating to abatements to the county auditor unless the county auditor holds elective office in which case the county auditor must concur to the delegation. Apartment property tax study A study on possible methods of providing incentives to improve the state's stock of rental housing will be conducted by the Department of Revenue and the Minnesota Housing Finance agency. Specifically, the study will consider a scenario where two percent class rate is in place for five assessment years. The study will identify the estimated impact on the market value of improvements made to apartment property which is at least 25 years old and where the value of the improvements are equal to 20 percent of the total market value of the prop- erty proposal as if it were in effect for taxes payable in 1998. Other policy alternatives will also be considered and results will be reported to the House and Senate Tax. Committee Chairs by February 15, 1996. 1995 Law Summaries City aid base An increase in the portion of city LGA that is grandfathered is provided for cities that received additional LGA in 1995 because of transfers to sewer and water funds (25 cities qualify). The qualifying cities will receive a penma- nent increase in their city aid base in an amount equal to the additional LGA they received in 1995. Additionally, the city aid base for the city of Pillager will be permanently increased in the amount of $40,000. Miscellaneous: Premium tax increase Insurance premium tax rates will be increased effective January 1, 1995. Town and farmers' mutuals and mutuals with $5 million or less in assets increases from .5 percent to one percent. The rates for mutual insurance companies with assets between $5 million and $1.6 billion on December 31, 1989 will increase from .5 percent to 1.26 percent. All lines of property- easualty insurance are included in this rate increase. The proceeds will be used primarily to fund fire and police pensions. Police and fire aid calculations Fire state aid equals 107 percent of reported fire premiums taxes and state police aid equals 104 percent of reported automobile premiums taxes. Fire aid recipients will receive two percent of fire premiums (minus audit and exam costs) and one percent of the premiums of town and farmers' mutuals and mutuals with $5 million or less in assets. Police state aid recipi- ents will receive two percent of automobile premiums. This provision is effective for aid paid in 1996. Tax anticipation certificates Home rule charter cities aze authorized to issue tax anticipation certificates in the same manner currently available to statutory cities. Certificates may also be issued in anticipation of federal and state aids. Revenue policy initiatives -property tax and property tax refunds Certified levy The clarification is made that the county auditor does not deduct HACA from a local'govemment's certified levy amount, but does deduct the amount of disparity reduction aid from the certified levy. (Cities no longer receive DRA under a 19931aw change.) Technical initiatives -property tax Certifying costs of local assessments The dates for certifying the costs of local assessments are changed in order to conform to the truth-in- taxation deadlines. "This Old House" The clazification is made that "homes" means owner-occupied units. Cutoff date for computing HACA and DRA A cut-off date of June 30 is established for computing HACA and DRA for local governments. Munici- pal boundaries and status as of June 30 of the year preceding the aid year will be the basis for the determination of aids. This provision is effective for aids payable in 1995 and thereafter. Metro special taxing districts -truth in taxation hearings Hearings are required to be held on the first Monday in December. General government Prompt payment to subcontractors provision required in municipal contracts and modification of certain laws relating to liens and perfor- mance bonds Chapter 31 requires that city contracts contain a provision requiring LS 7