.................... moves to amend H.F. No. 481 as follows:
Delete everything after the enacting clause and insert:
"Section 1. DEFINITION; LOCAL TAXING AUTHORITY.
1.4For purposes of this act, "local taxing authority" means a county, home rule charter
1.5or statutory city, or special taxing district under Minnesota Statutes, section 275.066, but
1.6excludes school districts and townships.
1.7EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 2. LEVY LIMITATION FOR TAXES PAYABLE IN 2012 and 2013.
1.9 Subdivision 1. Proposed levy. Notwithstanding any other law to the contrary, for
1.10purposes of the certification required by Minnesota Statutes, section 275.065, subdivision
1.111, in 2011 and 2012, no local taxing authority shall certify to the county auditor a proposed
1.12property tax levy greater than the levy certified in the prior year except as provided
1.13in this section.
1.14 Subd. 2. Final levy. Notwithstanding any other law to the contrary, for purposes of
1.15the certification required by Minnesota Statutes, section 275.07, subdivision 1, in 2011
1.16and 2012, no local taxing authority shall certify to the county auditor a property tax levy
1.17greater than the amount certified to the county auditor pursuant to Minnesota Statutes,
1.18section 275.07, subdivision 1, in the prior year, except as provided in this section.
1.19 Subd. 3. Debt service exception. Notwithstanding the limitations in subdivisions 1
1.20and 2, a local taxing authority may propose and levy for taxes payable in 2012 and 2013
1.21an amount in excess of the levy certified pursuant to Minnesota Statutes, section 275.07,
1.22subdivision 1, in 2010, payable in 2011, for debt service on obligations, certificates of
1.23indebtedness, capital notes, or other debt instruments sold prior to June 1, 2011, or to
1.24make payments on installment purchase contracts or lease purchase agreements entered
2.1into before June 1, 2011. The amount that may be levied in excess of the limits set in
2.2subdivisions 1 and 2 may not exceed the difference between what the taxing authority
2.3needs to levy for taxes payable in 2012 or 2013 for that purpose and the amount it levied
2.4for that purpose for taxes payable in 2011.
2.5 Subd. 4. Annexation exception. The city tax rate for taxes payable in 2012 or 2013
2.6on any property annexed under Minnesota Statutes, chapter 414, may not be increased
2.7over the city or township tax rate in effect on the property for taxes payable in 2011,
2.8notwithstanding any law, municipal board order, or ordinance to the contrary. The limit on
2.9the annexing city's levy under subdivisions 1 and 2 is increased by an amount equal to
2.10the net tax capacity of the property annexed multiplied by the city or township tax rate in
2.11effect for that property for taxes payable in 2011. The levy limit under subdivisions 1 and
2.122 for the city from which the property is annexed is reduced by the same amount.
2.13 Subd. 5. Election exception. Notwithstanding the limitations in subdivisions 1 and
2.142, a local taxing authority may levy an additional levy in any amount if approved by a
2.15majority of the voters as provided in Minnesota Statutes, section 275.73.
2.16EFFECTIVE DATE.This section is effective for taxes levied in 2011 and 2012,
2.17payable in 2012 and 2013.
Sec. 3. PROHIBITION AGAINST INCURRING NEW DEBT.
2.19 Subdivision 1. Actions prohibited. (a) After May 31, 2011, no local taxing
2.20authority may sell obligations, certificates of indebtedness, capital notes, or other debt
2.21instruments under Minnesota Statutes, section 412.301, chapter 475, or any other law;
2.22nor may it enter into installment purchase contracts or lease purchase agreements under
2.23Minnesota Statutes, section 465.71, or any other law if issuing those debt instruments or
2.24entering into those contracts would require a levy first becoming payable in 2012 or 2013.
2.25(b) For purposes of this section, "obligations" includes certificates of indebtedness,
2.26capital notes, other debt instruments, installment purchase contracts, and lease purchase
2.28 Subd. 2. Exceptions. This prohibition does not apply to:
2.29(1) refunding bonds sold to refund bonds originally sold before June 1, 2011;
2.30(2) obligations for which the amount of the levy payable in 2012 or 2013 would not
2.31exceed the difference between (i) the local taxing authority's total debt service levy for
2.32taxes payable in 2011 and (ii) its total debt service levy for taxes payable in 2012 or 2013
2.33prior to issuance of these obligations; and
3.1(3) obligations with respect to which the local taxing authority makes a finding at the
3.2time of the issuance of the obligation that no levy is required to meet the obligation for
3.3taxes payable in 2012 or 2013, or that sufficient funds are available from a nonproperty
3.4tax source to fund the obligation.
3.5 Subd. 3. Date when bonds are deemed sold. For purposes of this section, bonds
3.6are deemed to have been sold before June 1, 2011, if:
3.7(1) an agreement has been entered into between the local taxing authority and a
3.8purchaser or underwriter for the sale of the bonds by that date;
3.9(2) the issuing local taxing authority is a party to a contract or letter of understanding
3.10entered into before June 1, 2011, with the federal government or the state government that
3.11requires the local taxing authority to pay for a project and the project is funded with the
3.12proceeds of the bonds; or
3.13(3) the proceeds of the bonds are used to fund a project or acquisition with respect
3.14to which the local taxing authority has entered into a contract with a builder or supplier
3.15before June 1, 2011.
3.16EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 4. BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.
3.18Notwithstanding Minnesota Statutes, section 272.67, subdivision 6, the benefit ratio
3.19used for apportioning levies to a rural service district for taxes payable in 2012 and 2013
3.20must not be greater than that in effect for taxes payable in 2011.
3.21EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 5. FREEZE ON LOCAL MATCH REQUIREMENTS.
3.23Notwithstanding any other law to the contrary, the local funding or local match
3.24required from any local taxing authority for any state grant or program shall not be
3.25increased for calendar year 2012 or 2013 above the dollar amount for the local funding or
3.26local match for the same grant or program in 2011, regardless of the level of state funding
3.27provided. Any local match or local funding requirement that first becomes effective after
3.28December 31, 2011, for new or changed state grants or programs is not effective for a
3.29local taxing authority until after December 31, 2013. Nothing in this section affects the
3.30eligibility of, or reduces the funding level to, a local taxing authority subject to the levy
3.31limits in section 1 if the local match requirements of the program were met in 2011.
3.32EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 6. SUSPENSION OF SALARY AND BUDGET APPEAL
4.3After May 31, 2011, no county sheriff may exercise the authority granted under
4.4Minnesota Statutes, section 387.20, subdivision 7, and no county attorney may exercise
4.5the authority granted under Minnesota Statutes, section 388.18, subdivision 6, to the
4.6extent that the salary or budget increase sought in the appeal would result in an increase
4.7in county expenditures in calendar year 2012 or 2013 above the level in calendar year
4.82011 for the same purpose.
4.9EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 7. PENSION LIABILITIES.
4.11Notwithstanding any other law or charter provision to the contrary, no levy for taxes
4.12payable in 2012 and 2013 for a local police or fire relief association for the purpose of
4.13amortizing the unfunded pension liability may exceed the levy for that purpose for taxes
4.14payable in 2011.
4.15EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Sec. 8. SAVINGS CLAUSE.
4.17Notwithstanding any provision in this act, the provisions of this act neither constitute
4.18an impairment of any obligation, certificate of indebtedness, capital note, or other debt
4.19instrument sold prior to June 1, 2011, nor does it constitute an impairment on the ability
4.20of a local taxing authority to make payments on installment purchase contracts or lease
4.21purchase agreements entered into by a local taxing authority before June 1, 2011.
4.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.
Delete the title and insert:
relating to property taxes; freezing property taxes for certain local governments
at 2010, payable 2011, levels; prohibiting certain local government actions that
would increase property tax levies; providing exceptions."