SF4670

Purpose

• This bill aims to make certain school district lease levy amounts eligible for the school building bond agricultural credit.
• It also updates how school districts certify their taxes and identify debt-related portions of their levies, especially for districts that span more than one county.

Main provisions

• In districts that lie in more than one county, the clerk must certify the district’s tax levy to the county auditor in the county where the district’s administrative offices are located.

• When certifying the levy, the district must identify the portion of the levy that is used for debt service.

• Definition of the debt service portion:

  • The first part covers the portion equal to the levies authorized under sections 123B.53, 123B.535, and 123B.55, adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions under section 475.61, subdivision 4, and excluding debt service amounts necessary for repayment of other postemployment benefits (OPEB) under section 475.52, subdivision 6.
  • The second part covers the portion equal to the levy authorized under section 126C.40 that is assessed and certified by a cooperative unit to the district as the district’s proportionate share of debt issued by the cooperative unit.

Changes to existing law

• Adds a requirement that multi-county districts certify their levy to the county where their administrative offices are located.
• Requires explicit identification of the debt service portion of the levy at the time of certification.
• Redefines what counts as debt service for the purpose of these certifications, including adjustments and exclusions for certain prior levy reductions and for OPEB repayment costs.
• Includes the cooperative unit’s share of district debt as part of the debt service portion.

Implementation considerations

• Districts will need to adjust bookkeeping and annual levy certification processes to separately identify debt service portions.
• Clerks in multi-county districts will route levy certification to the appropriate county auditor.
• The calculation of the debt service portion will affect eligibility for the school building bond agricultural credit.

Relevant Terms - debt service - levy - lease levy - school building bond agricultural credit - district certification - county auditor - multi-county district - cooperative unit - debt excess levy reductions - other postemployment benefits (OPEB) - sections referenced: 123B.53, 123B.535, 123B.55, 126C.46, 126C.48, 475.61(4), 475.52(6), 126C.40