SF4756

Purpose

This bill changes how local governments in Minnesota calculate their property tax levy limits. It defines the “levy limit base” and sets rules for how that base is determined for specific years, tying it to previously certified levy amounts and certain adjustments.

Main Provisions

• The bill amends Minnesota Statutes 2024, section 275.71, subdivision 2, to define the levy limit base.
• Levy limit base for taxes levied in 2008:
  • It is the levy aid base from the previous year, with possible adjustments under section 275.72.
• Levy limit base for taxes levied in 2009 and 2010:
  • It is the adjusted levy limit base from the previous year, with possible adjustments under section 275.72.
• The levy limit base is also described as the final levy certified by the local governmental unit in the preceding year under section 275.07, subject to adjustments for consolidation and annexation under section 275.72.1.
• The provisions reference existing sections governing adjustments (275.72), certification (275.07), and changes due to consolidation or annexation (275.72.1).

How it Changes Current Law

• Establishes a uniform definition of “levy limit base” for specific historical years (2008, 2009, 2010) rather than leaving the base undefined or variable.
• Directly ties the levy limit base to:
  • the levy aid base (2008) or the adjusted levy limit base (2009–2010),
  • the final levy certified in the prior year,
  • and adjustments for consolidation and annexation.
• Requires consideration of existing adjustment rules (section 275.72) and certification rules (section 275.07) when determining the levy base.

Potential Effects

• Local governments will determine their levy limits based on the revised definitions, which may change how much they can levy in certain years.
• The calculation emphasizes previously certified levies and specific adjustments, potentially limiting or boosting allowable levies depending on consolidation/annexation and adjustment provisions.

Relevant Terms

• levy limit base
• levy aid base
• adjusted levy limit base
• taxes levied in 2008
• taxes levied in 2009
• taxes levied in 2010
• local governmental unit
• final levy certified
• preceding year
• section 275.72
• section 275.07
• consolidation
• annexation
• section 275.72.1

Relevant Terms (inferred concepts): - levy limits - property taxation - local government finance - tax levy adjustments - statutory amendments