04-14-2011 Charter Packet - Laserfiche WebLink

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MINNESOTA. REVENUE Minnesota Statutes § 275.70 to 275.74 provide overall levy limitations for county governments and for cities over 2,500 in population ("levy -limit" cities) for the taxes payable years 2009 through 2011. This letter contains very important information for understanding and complying with these limits and is the only copy of this letter being sent to your city or county. Therefore, it is imperative for you to forward this letter, or provide copies, to the appropriate officials in your county or city. This letter serves to review information about the overall process by which levy limits will be administered. ■ Understanding the Administration of Levy Limits The Levy Limitation Minnesota Statute §§ 275.70 to 275.74, provides that notwithstanding any other provision of law or municipal charter to the contrary which authorize ad valorem taxes in excess of the limits established by these provisions, the provisions of these sections apply to local governmental units for all purposes other than those for which special levies and special assessments are made. This means that previously passed laws permitting certain levies in excess of any limitations are indeed NOT allowed to supersede these limits. Generally speaking, the levy limit for levies adopted in 2010 for taxes payable in 2011 is equal to a county's or city's adjusted levy limit base amount from the prior year reduced by the sum of the county's or city's payable 2011 property tax aids and estimated wind energy production taxes. This means increases in certified aids or wind energy production taxes will reduce the levy limit while decreases in certified aids or wind energy production taxes will increase the levy limit. The adjusted levy limit base used to determine the levy limit for 2010 levies payable in 2011 is a county's or city's levy limit base for taxes payable 2010 increased by: (1) the lesser of 3.9 percent or the rate of inflation (which is 1.6784 percent), (2) half (50%) of the percentage increase in the number of households, if any, in the county or city, and (3) half (50%) of the percentage increase in the taxable market value of the county or city that is due to new construction of commercial and industrial property. The Timing and Process After the Department received updated household count information from the State Demographer and Metropolitan Council on July 15, 2010, and aids were certified by August 1, 2010, the Department began reviewing the data and calculating the levy limits for each county and "levy limit" city. The Department is required to certify these limits to the local governmental units by September 1, 2010.