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A bill for an act
relating to taxes; minerals taxes; modifying the production tax distribution;
amending Minnesota Statutes 2024, section 298.28, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 298.28, subdivision 4, is amended to read:
Subd. 4.
School districts.
(a) 32.15 cents per taxable ton, plus the increase provided in
paragraph (d), less the amount that would have been computed under Minnesota Statutes
2008, section
126C.21, subdivision 4
, for the current year for that district, must be allocated
to qualifying school districts to be distributed, based upon the certification of the
commissioner of revenue, under paragraphs (b), (c), and (f).
(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which the
lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.
(ii) Four cents per taxable ton from each taconite facility must be distributed to each
affected school district for deposit in a fund dedicated to building maintenance and repairs,
as follows:
(1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;
(2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;
(3) proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
(4) proceeds from the Northshore Mining Company or its successor are distributed to
Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, or their
successor districts;
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and
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(5) proceeds from United Taconite or its successor are distributed to Independent School
Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their successor districts
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;
and
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(6) proceeds from Mesabi Metallics or its successor are distributed to Independent School
Districts Nos. 316, Greenway, and 319, Nashwauk-Keewatin, or their successor districts
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.
Revenues that are required to be distributed to more than one district shall be apportioned
according to the number of pupil units identified in section
126C.05, subdivision 1
, enrolled
in the second previous year.
(c)(i) 24.72 cents per taxable ton, less any amount distributed under paragraph (e), shall
be distributed to a group of school districts comprised of those school districts which qualify
as a tax relief area under section
273.134, paragraph (b)
, or in which there is a qualifying
municipality as defined by section
273.134, paragraph (a)
, in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05
for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that receives a distribution under
sections
298.018
;
298.24
; and
298.25
to
298.28
, exclusive of any amount received under
this clause;
298.34
to
298.39
;
298.391
to
298.396
;
298.405
; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns under
section
126C.48, subdivision 8
, paragraph (5), that is less than the amount of its levy
reduction under section
126C.48, subdivision 8
, for the second year prior to the year of the
distribution shall receive a distribution equal to the difference; the amount necessary to
make this payment shall be derived from proportionate reductions in the initial distribution
to other school districts under clause (i). If there are insufficient tax proceeds to make the
distribution provided under this paragraph in any year, money must be transferred from the
taconite property tax relief account in subdivision 6, to the extent of the shortfall in the
distribution.
(d)(1) Any school district described in paragraph (c) where a levy increase pursuant to
section
126C.17, subdivision 9
, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
pupil units identified in section
126C.05, subdivision 1
, enrolled in the second previous
year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
times the district's taxable net tax capacity in 2011.
(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
year equal to 22.5 percent of the amount obtained by subtracting:
(i) 1.8 percent of the district's net tax capacity for 2011, from:
(ii) the district's weighted average daily membership for fiscal year 2012, multiplied by
the sum of:
(A) $415, plus
(B) the district's referendum revenue allowance for fiscal year 2013.
If the total amount provided by paragraph (d) is insufficient to make the payments herein
required then the entitlement of $175 per pupil unit shall be reduced uniformly so as not to
exceed the funds available. Any amounts received by a qualifying school district in any
fiscal year pursuant to paragraph (d) shall not be applied to reduce general education aid
which the district receives pursuant to section
126C.13
or the permissible levies of the
district. Any amount remaining after the payments provided in this paragraph shall be paid
to the commissioner of Iron Range resources and rehabilitation who shall deposit the same
in the taconite environmental protection fund and the Douglas J. Johnson economic protection
trust fund as provided in subdivision 11.
Each district receiving money according to this paragraph shall reserve the lesser of the
amount received under this paragraph or $25 times the number of pupil units served in the
district. It may use the money for early childhood programs.
(e) There shall be distributed to any school district the amount which the school district
was entitled to receive under section
298.32
in 1975.
(f) Four cents per taxable ton must be distributed to qualifying school districts according
to the distribution specified in paragraph (b), clause (ii), and 11 cents per taxable ton must
be distributed according to the distribution specified in paragraph (c). These amounts are
not subject to section
126C.48, subdivision 8
.
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EFFECTIVE DATE.
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This section is effective the day following final enactment.
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