Minn. Stat. § 273.1398 – Disparity reduction aid and credit; aids for court costs

Subd. 1. Definitions.
1. (a) In this section, the terms defined in this subdivision have the meanings given them.
2. (b) "Unique taxing jurisdiction" means the geographic area subject to the same set of local tax rates.
3. (c) For purposes of calculating and allocating disparity reduction aid authorized in subdivision 3, "gross taxes levied on all properties," "gross taxes," or "taxes levied" means the total net tax capacity based taxes levied on all properties except that levied on the captured value of tax increment districts as defined in section 469.177, subdivision 2, and that levied on the portion of commercial industrial properties' assessed value or gross tax capacity, as defined in section 473F.02, subdivision 3, subject to the areawide tax as provided in section 473F.08, subdivision 6, in a unique taxing jurisdiction. "Gross taxes" are before any reduction for disparity reduction aid but "taxes levied" are after any reduction for disparity reduction aid. Gross taxes levied or taxes levied cannot be less than zero.
Subd. 1a.
Repealed, 2004 c 228 art 3 s 18
Subd. 2.
Repealed, 1Sp2003 c 21 art 6 s 17
Subd. 2a.
Repealed, 1994 c 416 art 1 s 65
Subd. 2b.
Repealed, 1990 c 604 art 4 s 21
Subd. 2c.
Repealed, 1Sp2003 c 21 art 6 s 17
Subd. 2d. Aids determined as of June 30.
For aid amounts authorized under subdivision 3: (i) if the effective date for a municipal incorporation, consolidation, annexation, detachment, dissolution, or township organization is on or before June 30 of the year preceding the aid distribution year, the change in boundaries or form of government shall be recognized for aid determinations for the aid distribution year; (ii) if the effective date for a municipal incorporation, consolidation, annexation, detachment, dissolution, or township organization is after June 30 of the year preceding the aid distribution year, the change in boundaries or form of government shall not be recognized for aid determinations until the following year.
Subd. 2e.
Repealed, 2004 c 228 art 3 s 18
Subd. 3. Disparity reduction aid.
For taxes payable in 2003 and subsequent years, the amount of disparity aid certified for each taxing district within each unique taxing jurisdiction for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to that for which aid is being computed, both based upon market values for taxes payable in the year prior to that for which aid is being computed. For the purposes of this aid determination, disparity reduction aid certified for taxes payable in the prior year for a taxing entity other than a town or school district is deemed to be county government disparity reduction aid. The amount of disparity aid certified to each taxing jurisdiction shall be reduced by any reductions required in the current year or permanent reductions required in previous years under section 477A.0132.
Subd. 3a. Disparity reduction aid to cities.
Notwithstanding the provisions of subdivision 3 or section 275.08, subdivision 1d, the amount of disparity reduction aid for a city for aid payable in calendar year 1994 and thereafter is zero, and the local tax rate for taxes payable in 1994 and thereafter for a city shall not be adjusted under section 275.08, subdivision 1d. For purposes of this subdivision, city means a statutory or home rule charter city.
Subd. 4. Disparity reduction credit.
1. (a) Beginning with taxes payable in 1989, class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) the property is located in a border city that has an enterprise zone designated pursuant to section 469.168, subdivision 4; (2) the property is located in a city with a population greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city in the other state has a population of greater than 5,000 and less than 75,000.
2. (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.
3. (c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes foregone as the result of the credits in proportion to their total levies.
Subd. 4a. Temporary aid for court costs.
1. (a) In calendar years 2004 and 2005, the commissioner of revenue shall pay the amounts determined in paragraph (d) to the eligible counties on the dates specified in subdivision 6. By July 15, 2003, the Supreme Court shall determine and certify to the commissioner of revenue for each county the county's share of the costs to be assumed in the judicial districts specified under section 480.183, subdivision 1, during each of the succeeding fiscal years.
2. (b) The amount certified in paragraph (a) shall be equal to the following:
  1. (1) 103 percent of the required court administration expenditures as defined under section 480.183, subdivision 3, for calendar year 2003, as determined under subdivision 4b, paragraph (a); plus
  2. (2) an adjustment for any cumulative percentage increase in salary expenditures as defined under section 480.183, subdivision 2, in excess of a maintenance of effort increase of six percent; less
  3. (3) an amount equal to the county's share of transferred fines collected by the district courts in the county during 2002, increased by two percent for counties in Districts One and Three, and by 4.04 percent for counties in Districts Six and Ten.
    The court and the county may, if both parties agree, negotiate and certify an amount higher than the amount calculated under this paragraph.
3. (c) For purposes of this subdivision, the adjustment in paragraph (b), clause (2), shall be equal to:
  1. (1) the sum of the court administration expenditures as defined under section 480.183, subdivision 3, required under subdivision 4b, paragraph (a), plus the temporary aid payment under subdivision 4c; multiplied by
  2. (2) the difference between (i) the cumulative percentage increase in actual and anticipated salary settlements for court employees from July 1, 2001, until the date of the court transfer and (ii) the percentage specified in subdivision 4b, paragraph (a).
4. (d) For calendar year 2004, each county in Judicial Districts One and Three shall receive an amount equal to 25 percent of the amount certified under paragraph (b), and each county in Judicial Districts Six and Ten shall receive an amount equal to the amount certified under paragraph (b). For calendar year 2005, each county in Judicial Districts Six and Ten shall receive an amount equal to 25 percent of the amount certified under paragraph (b), and each county in Judicial Districts One and Three receives zero.
Subd. 4b. Court expenditures; maintenance of effort.
1. (a) Until the costs of court administration as defined under section 480.183, subdivision 3, in a county have been transferred to the state, each county in a judicial district transferring court administration costs to state funding after July 1, 2001, shall budget for the funding of these costs an amount at least equal to the certified budget amount for calendar year 2001, increased by six percent for each year from 2001 to 2003 and by eight percent from 2004 to the year of the transfer. The county shall budget, fund, and authorize expenditures not less than the amount calculated under this paragraph.
2. (b) By July 15, 2001, the court shall certify to each county in the judicial district its cost of court administration as defined under section 480.183, subdivision 3, based on 2001 budgets. In making that determination, the court shall exclude the budget costs of the county for the following categories:
  1. (1) rent;
  2. (2) examiner of titles;
  3. (3) civil court appointed attorneys for civil matters;
  4. (4) hospitalization costs; and
  5. (5) cost of maintaining vital statistics.
    The amount of funding provided by a county for courts that is increased by the maintenance of effort requirement may not be used by a county to pay the costs described in clauses (1) to (5).
Subd. 4c. Temporary aid; court administration costs.
For calendar years 2004 and 2005, each county in a judicial district that has not been transferred to the state by January 1 of that year shall receive temporary court maintenance of effort cost aid. The amount of aid is equal to the difference between (1) the amount budgeted for court administration costs in 2001 as determined under subdivision 4b, paragraph (b), multiplied by the maintenance of effort percent for the calendar year as determined under subdivision 4b, paragraph (a), and (2) the amount calculated under subdivision 4b, paragraph (a), for calendar year 2003, except that the payment under this section is reduced by 50 percent in the calendar year in which the district is transferred to the state. This additional aid must be used only to fund court administration expenditures as defined in section 480.183, subdivision 3. This amount must be added to the state court's base budget in the year when the court in that judicial district in which the county is located is transferred to the state.
Subd. 4d.
Repealed, 1Sp2003 c 21 art 6 s 17
Subd. 5.
Repealed, 1993 c 375 art 4 s 21
Subd. 5a.
Repealed, 1Sp1993 c 1 art 2 s 7
Subd. 5b.
Repealed, 1996 c 471 art 3 s 55
Subd. 5c.
Repealed, 1Sp1993 c 1 art 2 s 7
Subd. 6. Payment.
The commissioner shall certify the aids provided in subdivision 3 before September 1 of the year preceding the distribution year to the county auditor of the affected local government. The aids provided in subdivisions 3, 4a, and 4c must be paid to local governments other than school districts at the times provided in section 477A.015 for payment of local government aid to taxing jurisdictions, except that the first one-half payment of disparity reduction aid provided in subdivision 3 must be paid on or before August 31. The disparity reduction credit provided in subdivision 4 must be paid to taxing jurisdictions other than school districts at the time provided in section 473H.10, subdivision 3. Aids and credit reimbursements to school districts must be certified to the commissioner of education and paid under section 273.1392. Payment shall not be made to any taxing jurisdiction that has ceased to levy a property tax.
Subd. 7.
Repealed, 1994 c 587 art 3 s 21 para (b)
Subd. 8. Appropriation.
An amount sufficient to pay the aids and credits provided under this section for school districts, intermediate school districts, or any group of school districts levying as a single taxing entity, is annually appropriated from the general fund to the commissioner of education. An amount sufficient to pay the aids and credits provided under this section for counties, cities, towns, and special taxing districts is annually appropriated from the general fund to the commissioner of revenue. A jurisdiction's aid amount may be increased or decreased based on any prior year adjustments for homestead credit or other property tax credit or aid programs.
* NOTE: The amendment to subdivision 4a by Laws 2003, First *Special Session chapter 21, article 6, section 1, is effective *for aid payable in 2004 and 2005. Laws 2003, First Special *Session chapter 21, article 6, section 1, the effective date.
* NOTE: The amendment to subdivision 4c by Laws 2003, First *Special Session chapter 21, article 6, section 2, is effective *for aid payable in 2004 and 2005 for counties in Judicial *Districts One, Three, Six, and Ten. Laws 2003, First Special *Session chapter 21, article 6, section 2, the effective date.