Site Value Tax Bill Introduced in Minnesota
Nadine Stoner
[Reprinted from
GroundSwell, March-April 2007]
Rich Nymoen of St. Paul, MN has informed GroundSwell of the
introduction of HF 962, authored by Rep. Ann Lenscewski who is the
new Tax Committee chair. She has been a long time supporter of the
Land Value Tax concept and introduced the bill at the request of
another long time supporter, Bloomington City Council Member Steve
Elkins. HF 962 is the same legislation that has been introduced off
and on since 2001. It seeks to shift the state (not local)
Commercial and Industrial property tax entirely onto land value over
10 years.
The summary of the bill reads:
H. F. No. 962, A bill for an act relating to taxation;
converting the state general tax on commercial and industrial
properties to a site value tax; authorizing the commissioner of
revenue to promulgate standards for determining site values and to
reallocate the portion of estimated market value attributable to
land; amending Minnesota Statutes 2006, sections 270C.85,
subdivision 2; 270C.88, subdivision 1; 275.025, subdivision 4, by
adding a subdivision. Statute 275:025, subdivision 4 reads in part:
For taxes payable in 2010 and later years, the portion
of the state general tax levied on commercial-industrial tax
capacity and commercial-industrial land value must be divided into
a commercial-industrial tax capacity share and a
commercial-industrial land value share as follows. For taxes
payable in 2010, 90 percent is apportioned to regular
commercial-industrial tax capacity and ten percent to
commercial-industrial land value. In each succeeding year, an
additional ten percentage points of the commercial-industrial
share is shifted from commercial-industrial tax capacity to
commercial-industrial land value. For taxes payable in 2019 and
thereafter, the full amount of the commercial-industrial share is
levied upon commercial-industrial land value. For each of the
three component shares of the state general levy determined in
paragraphs (a) and (b), the tax must be distributed among the
counties by applying a uniform statewide rate to each county's tax
base for the relevant class.
The bill was read for the first time and referred to the Committee
on Taxes.
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