Bill Text: MN HF683 | 2011-2012 | 87th Legislature | Introduced
Bill Title: School funding program equalization aid levels increased.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-24 - Introduction and first reading, referred to Education Finance [HF683 Detail]
Download: Minnesota-2011-HF683-Introduced.html
1.2relating to education finance; increasing the equalization aid levels for school
1.3funding programs;amending Minnesota Statutes 2010, sections 123B.53,
1.4subdivision 5; 123B.57, subdivision 4; 124D.135, subdivision 3; 124D.20,
1.5subdivision 5; 124D.22, subdivision 3; 126C.01, by adding subdivisions;
1.6126C.10, subdivisions 13a, 29, 32, 35; 126C.17, subdivisions 5, 6; proposing
1.7coding for new law in Minnesota Statutes, chapter 123B; repealing Minnesota
1.8Statutes 2010, section 124D.20, subdivision 6.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 123B.53, subdivision 5, is amended to read:
1.11 Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
1.12district equals the sum of the first tier equalized debt service levy and the second tier
1.13equalized debt service levy.
1.14(b) A district's first tier equalized debt service levy equals the district's first tier debt
1.15service equalization revenue times the lesser of one or the ratio of:
1.16(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.17the year before the year the levy is certified by the adjusted pupil units in the district for
1.18the school year ending in the year prior to the year the levy is certified; to
1.19(2)$3,200 150 percent of the statewide adjusted net tax capacity equalizing factor.
1.20(c) A district's second tier equalized debt service levy equals the district's second tier
1.21debt service equalization revenue times the lesser of one or the ratio of:
1.22(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.23the year before the year the levy is certified by the adjusted pupil units in the district for
1.24the school year ending in the year prior to the year the levy is certified; to
1.25(2)$8,000 200 percent of the statewide adjusted net tax capacity equalizing factor.
2.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.2and later.
2.3 Sec. 2. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
2.4 Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
2.5subdivision 23, except for property consisting of the house, garage, and immediately
2.6surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
2.7under this section.
2.8 Subd. 2. Credit amount. For each qualifying property, the school bond agricultural
2.9credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the
2.10school debt tax rate determined under section 275.08, subdivision 1b.
2.11 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
2.12reductions allowed under this section within the county for each taxes payable year and
2.13shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
2.14lists submitted under section 275.29. Any prior year adjustments shall also be certified on
2.15the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
2.16and may make changes as are deemed necessary, or return the certification to the county
2.17auditor for correction. The credit under this section must be used to reduce the school
2.18district net tax capacity-based property tax as provided in section 273.1393.
2.19 Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
2.20reductions granted under this section for each taxes payable year within each school
2.21district to the commissioner of education, who shall pay the reimbursement amounts to
2.22each school district as provided in section 273.1392.
2.23EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
2.24 Sec. 3. Minnesota Statutes 2010, section 123B.57, subdivision 4, is amended to read:
2.25 Subd. 4. Health and safety levy. To receive health and safety revenue, a district
2.26may levy an amount equal to the district's health and safety revenue as defined in
2.27subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
2.28dividing the adjusted net tax capacity of the district for the year preceding the year the
2.29levy is certified by the adjusted marginal cost pupil units in the district for the school year
2.30to which the levy is attributable, to$2,935 150 percent of the statewide adjusted net tax
2.31capacity equalizing factor.
2.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.33and later.
3.1 Sec. 4. Minnesota Statutes 2010, section 124D.135, subdivision 3, is amended to read:
3.2 Subd. 3. Early childhood family education levy.(a) By September 30 of each year,
3.3the commissioner shall establish a tax rate for To obtain early childhood family education
3.4revenuethat raises $22,135,000 in each fiscal year. If the amount of the , a district may
3.5levy an amount no more than the product of its early childhood family educationlevy
3.6would exceed the early childhood family education revenue, the early childhood family
3.7education levy must equal the early childhood family education revenue for the fiscal year
3.8times the lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal
3.9cost pupil unit to 200 percent of the statewide adjusted net tax capacity equalizing factor.
3.10A district may not certify an early childhood family education levy unless it has met the
3.11annual program data reporting requirements under section124D.13, subdivision 13 .
3.12(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
3.13establish a tax rate for early education revenue that raises $13,565,000.
3.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
3.15and later.
3.16 Sec. 5. Minnesota Statutes 2010, section 124D.20, subdivision 5, is amended to read:
3.17 Subd. 5. Total community education levy. To obtain total community education
3.18revenue, a district may levythe an amount raised by a maximum tax rate of .9 percent
3.19times the adjusted net tax capacity of the district. If the amount of the no more than
3.20the product of its total community educationlevy would exceed the total community
3.21education revenue, the total community education levy shall be determined according to
3.22subdivision 6 for the fiscal year times the lesser of one or the ratio of its adjusted net tax
3.23capacity per adjusted marginal cost pupil unit to 150 percent of the statewide adjusted
3.24net tax capacity equalizing factor.
3.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
3.26and later.
3.27 Sec. 6. Minnesota Statutes 2010, section 124D.22, subdivision 3, is amended to read:
3.28 Subd. 3. School-age care levy. To obtain school-age care revenue, a school district
3.29may levy an amount equal to the district's school-age care revenue as defined in subdivision
3.302 multiplied by the lesser of one, or the ratio of the quotient derived by dividing the
3.31adjusted net tax capacity of the district for the year before the year the levy is certified by
3.32the resident pupil units in the district for the school year to which the levy is attributable,
3.33to$2,433 150 percent of the statewide adjusted net tax capacity equalizing factor.
4.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
4.2and later.
4.3 Sec. 7. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision
4.4to read:
4.5 Subd. 2a. Adjusted net tax capacity equalizing factor. The adjusted net tax
4.6capacity equalizing factor equals the quotient derived by dividing the total adjusted net
4.7tax capacity of all school districts in the state for the year before the year the levy is
4.8certified by the total number of adjusted marginal cost pupil units in the state for the
4.9current school year.
4.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
4.11 Sec. 8. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision
4.12to read:
4.13 Subd. 3a. Referendum market value equalizing factor. The referendum market
4.14value equalizing factor equals the quotient derived by dividing the total referendum market
4.15value of all school districts in the state for the year before the year the levy is certified by
4.16the total number of resident marginal cost pupil units in the state for the current school year.
4.17EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
4.18 Sec. 9. Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to read:
4.19 Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
4.20year 2007 and later, a district may levy an amount not more than the product of its
4.21operating capital revenue for the fiscal year times the lesser of one or the ratio of its
4.22adjusted net tax capacity per adjusted marginal cost pupil unit tothe operating capital
4.23equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year
4.242006, and $10,700 for fiscal year 2007 and later 200 percent of the statewide adjusted
4.25net tax capacity equalizing factor.
4.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
4.27and later.
4.28 Sec. 10. Minnesota Statutes 2010, section 126C.10, subdivision 29, is amended to read:
4.29 Subd. 29. Equity levy. To obtain equity revenue for fiscal year 2005 and later,
4.30a district may levy an amount not more than the product of its equity revenue for the
4.31fiscal year times the lesser of one or the ratio of its referendum market value per resident
5.1marginal cost pupil unit to$476,000 150 percent of the statewide referendum market
5.2value equalizing factor.
5.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.4and later.
5.5 Sec. 11. Minnesota Statutes 2010, section 126C.10, subdivision 32, is amended to read:
5.6 Subd. 32. Transition levy. To obtain transition revenue for fiscal year 2005 and
5.7later, a district may levy an amount not more than the product of its transition revenue
5.8for the fiscal year times the lesser of one or the ratio of its referendum market value per
5.9resident marginal cost pupil unit to$476,000 150 percent of the statewide referendum
5.10market value equalizing factor.
5.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.12and later.
5.13 Sec. 12. Minnesota Statutes 2010, section 126C.10, subdivision 35, is amended to read:
5.14 Subd. 35. Alternative teacher compensation levy. For fiscal year 2007 and
5.15later, the alternative teacher compensation levy for a district receiving basic alternative
5.16teacher compensation aid equals the product of (1) the difference between the district's
5.17alternative teacher compensation revenue and the district's basic alternative teacher
5.18compensation aid times (2) the lesser of one or the ratio of the district's adjusted net tax
5.19capacity per adjusted pupil unit to$5,913 150 percent of the statewide adjusted net tax
5.20capacity equalizing factor.
5.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.22and later.
5.23 Sec. 13. Minnesota Statutes 2010, section 126C.17, subdivision 5, is amended to read:
5.24 Subd. 5. Referendum equalization revenue. (a)For fiscal year 2003 and later,
5.25A district's referendum equalization revenue equals thesum of the first tier referendum
5.26equalization revenue and the second tier referendum equalization revenue.
5.27(b) A district's first tier referendum equalization revenue equals the district's first
5.28tier referendum equalization allowance times the district's resident marginal cost pupil
5.29units for that year.
5.30(c) For fiscal year 2006, a district's first tier referendum equalization allowance
5.31equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
6.1fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
6.2of the district's referendum allowance under subdivision 1 or $600.
6.3For fiscal year 2008 and later, a district's first tier referendum equalization allowance
6.4equals times the lesser of the district's referendum allowance under subdivision 1 or $700.
6.5(d) A district's second tier referendum equalization revenue equals the district's
6.6second tier referendum equalization allowance times the district's resident marginal cost
6.7pupil units for that year.
6.8(e) For fiscal year 2006, a district's second tier referendum equalization allowance
6.9equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
6.10of the formula allowance, minus the district's first tier referendum equalization allowance.
6.11For fiscal year 2007 and later, a district's second tier referendum equalization allowance
6.12equals the lesser of the district's referendum allowance under subdivision 1 or 26 percent
6.13of the formula allowance, minus the district's first tier referendum equalization allowance.
6.14(f) (b) Notwithstanding paragraph (e) (a), the second tier referendum allowance
6.15equalization revenue for a district qualifying for secondary sparsity revenue under
6.16section126C.10, subdivision 7 , or elementary sparsity revenue under section
126C.10,
6.17subdivision 8 , equals the district's resident marginal cost pupil units for that year times
6.18its referendum allowance under subdivision 1minus the district's first tier referendum
6.19equalization allowance.
6.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
6.21and later.
6.22 Sec. 14. Minnesota Statutes 2010, section 126C.17, subdivision 6, is amended to read:
6.23 Subd. 6. Referendum equalization levy.(a) For fiscal year 2003 and later,
6.24A district's referendum equalization levy equalsthe sum of the first tier referendum
6.25equalization levy and the second tier referendum equalization levy.
6.26(b) A district's first tier referendum equalization levy equals the district's first tier
6.27referendum equalization revenue times the lesser of one or the ratio of the district's
6.28referendum market value per resident marginal cost pupil unit to$476,000 150 percent of
6.29the statewide referendum market value equalizing factor.
6.30(c) A district's second tier referendum equalization levy equals the district's second
6.31tier referendum equalization revenue times the lesser of one or the ratio of the district's
6.32referendum market value per resident marginal cost pupil unit to $270,000.
6.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
6.34and later.
7.1 Sec. 15. REPEALER.
7.2Minnesota Statutes 2010, section 124D.20, subdivision 6, is repealed.
7.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
7.4and later.
1.3funding programs;amending Minnesota Statutes 2010, sections 123B.53,
1.4subdivision 5; 123B.57, subdivision 4; 124D.135, subdivision 3; 124D.20,
1.5subdivision 5; 124D.22, subdivision 3; 126C.01, by adding subdivisions;
1.6126C.10, subdivisions 13a, 29, 32, 35; 126C.17, subdivisions 5, 6; proposing
1.7coding for new law in Minnesota Statutes, chapter 123B; repealing Minnesota
1.8Statutes 2010, section 124D.20, subdivision 6.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 123B.53, subdivision 5, is amended to read:
1.11 Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
1.12district equals the sum of the first tier equalized debt service levy and the second tier
1.13equalized debt service levy.
1.14(b) A district's first tier equalized debt service levy equals the district's first tier debt
1.15service equalization revenue times the lesser of one or the ratio of:
1.16(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.17the year before the year the levy is certified by the adjusted pupil units in the district for
1.18the school year ending in the year prior to the year the levy is certified; to
1.19(2)
1.20(c) A district's second tier equalized debt service levy equals the district's second tier
1.21debt service equalization revenue times the lesser of one or the ratio of:
1.22(1) the quotient derived by dividing the adjusted net tax capacity of the district for
1.23the year before the year the levy is certified by the adjusted pupil units in the district for
1.24the school year ending in the year prior to the year the levy is certified; to
1.25(2)
2.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.2and later.
2.3 Sec. 2. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
2.4 Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
2.5subdivision 23, except for property consisting of the house, garage, and immediately
2.6surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
2.7under this section.
2.8 Subd. 2. Credit amount. For each qualifying property, the school bond agricultural
2.9credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the
2.10school debt tax rate determined under section 275.08, subdivision 1b.
2.11 Subd. 3. Credit reimbursements. The county auditor shall determine the tax
2.12reductions allowed under this section within the county for each taxes payable year and
2.13shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
2.14lists submitted under section 275.29. Any prior year adjustments shall also be certified on
2.15the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
2.16and may make changes as are deemed necessary, or return the certification to the county
2.17auditor for correction. The credit under this section must be used to reduce the school
2.18district net tax capacity-based property tax as provided in section 273.1393.
2.19 Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
2.20reductions granted under this section for each taxes payable year within each school
2.21district to the commissioner of education, who shall pay the reimbursement amounts to
2.22each school district as provided in section 273.1392.
2.23EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
2.24 Sec. 3. Minnesota Statutes 2010, section 123B.57, subdivision 4, is amended to read:
2.25 Subd. 4. Health and safety levy. To receive health and safety revenue, a district
2.26may levy an amount equal to the district's health and safety revenue as defined in
2.27subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
2.28dividing the adjusted net tax capacity of the district for the year preceding the year the
2.29levy is certified by the adjusted marginal cost pupil units in the district for the school year
2.30to which the levy is attributable, to
2.31capacity equalizing factor.
2.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
2.33and later.
3.1 Sec. 4. Minnesota Statutes 2010, section 124D.135, subdivision 3, is amended to read:
3.2 Subd. 3. Early childhood family education levy.
3.3
3.4revenue
3.5levy an amount no more than the product of its early childhood family education
3.6
3.7
3.8times the lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal
3.9cost pupil unit to 200 percent of the statewide adjusted net tax capacity equalizing factor.
3.10A district may not certify an early childhood family education levy unless it has met the
3.11annual program data reporting requirements under section
3.12
3.13
3.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
3.15and later.
3.16 Sec. 5. Minnesota Statutes 2010, section 124D.20, subdivision 5, is amended to read:
3.17 Subd. 5. Total community education levy. To obtain total community education
3.18revenue, a district may levy
3.19
3.20the product of its total community education
3.21
3.22
3.23capacity per adjusted marginal cost pupil unit to 150 percent of the statewide adjusted
3.24net tax capacity equalizing factor.
3.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
3.26and later.
3.27 Sec. 6. Minnesota Statutes 2010, section 124D.22, subdivision 3, is amended to read:
3.28 Subd. 3. School-age care levy. To obtain school-age care revenue, a school district
3.29may levy an amount equal to the district's school-age care revenue as defined in subdivision
3.302 multiplied by the lesser of one, or the ratio of the quotient derived by dividing the
3.31adjusted net tax capacity of the district for the year before the year the levy is certified by
3.32the resident pupil units in the district for the school year to which the levy is attributable,
3.33to
4.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
4.2and later.
4.3 Sec. 7. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision
4.4to read:
4.5 Subd. 2a. Adjusted net tax capacity equalizing factor. The adjusted net tax
4.6capacity equalizing factor equals the quotient derived by dividing the total adjusted net
4.7tax capacity of all school districts in the state for the year before the year the levy is
4.8certified by the total number of adjusted marginal cost pupil units in the state for the
4.9current school year.
4.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
4.11 Sec. 8. Minnesota Statutes 2010, section 126C.01, is amended by adding a subdivision
4.12to read:
4.13 Subd. 3a. Referendum market value equalizing factor. The referendum market
4.14value equalizing factor equals the quotient derived by dividing the total referendum market
4.15value of all school districts in the state for the year before the year the levy is certified by
4.16the total number of resident marginal cost pupil units in the state for the current school year.
4.17EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.
4.18 Sec. 9. Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to read:
4.19 Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
4.20year 2007 and later, a district may levy an amount not more than the product of its
4.21operating capital revenue for the fiscal year times the lesser of one or the ratio of its
4.22adjusted net tax capacity per adjusted marginal cost pupil unit to
4.23
4.24
4.25net tax capacity equalizing factor.
4.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
4.27and later.
4.28 Sec. 10. Minnesota Statutes 2010, section 126C.10, subdivision 29, is amended to read:
4.29 Subd. 29. Equity levy. To obtain equity revenue for fiscal year 2005 and later,
4.30a district may levy an amount not more than the product of its equity revenue for the
4.31fiscal year times the lesser of one or the ratio of its referendum market value per resident
5.1marginal cost pupil unit to
5.2value equalizing factor.
5.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.4and later.
5.5 Sec. 11. Minnesota Statutes 2010, section 126C.10, subdivision 32, is amended to read:
5.6 Subd. 32. Transition levy. To obtain transition revenue for fiscal year 2005 and
5.7later, a district may levy an amount not more than the product of its transition revenue
5.8for the fiscal year times the lesser of one or the ratio of its referendum market value per
5.9resident marginal cost pupil unit to
5.10market value equalizing factor.
5.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.12and later.
5.13 Sec. 12. Minnesota Statutes 2010, section 126C.10, subdivision 35, is amended to read:
5.14 Subd. 35. Alternative teacher compensation levy. For fiscal year 2007 and
5.15later, the alternative teacher compensation levy for a district receiving basic alternative
5.16teacher compensation aid equals the product of (1) the difference between the district's
5.17alternative teacher compensation revenue and the district's basic alternative teacher
5.18compensation aid times (2) the lesser of one or the ratio of the district's adjusted net tax
5.19capacity per adjusted pupil unit to
5.20capacity equalizing factor.
5.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
5.22and later.
5.23 Sec. 13. Minnesota Statutes 2010, section 126C.17, subdivision 5, is amended to read:
5.24 Subd. 5. Referendum equalization revenue. (a)
5.25A district's referendum equalization revenue equals the
5.26
5.27
5.28
5.29units for that year
5.30
5.31
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
6.13of the formula allowance
6.14
6.15equalization revenue for a district qualifying for secondary sparsity revenue under
6.16section
6.17subdivision 8
6.18its referendum allowance under subdivision 1
6.19
6.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
6.21and later.
6.22 Sec. 14. Minnesota Statutes 2010, section 126C.17, subdivision 6, is amended to read:
6.23 Subd. 6. Referendum equalization levy.
6.24A district's referendum equalization levy equals
6.25
6.26
6.27referendum equalization revenue times the lesser of one or the ratio of the district's
6.28referendum market value per resident marginal cost pupil unit to
6.29the statewide referendum market value equalizing factor.
6.30
6.31
6.32
6.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
6.34and later.
7.1 Sec. 15. REPEALER.
7.2Minnesota Statutes 2010, section 124D.20, subdivision 6, is repealed.
7.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
7.4and later.
