2016 Abstract of Tax Lists and Certification of State Paid Property Tax Credits M.S

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1 INSTRUCTIONS FOR THE 2016 Abstract of Tax Lists and Certification of State Paid Property Tax Credits M.S Table of Contents Section II Electronic File, Printout, and Submission Guidelines 2 Section III Record Identification Fields 4 Section IV Net Tax Capacity 5 Section V Special Assessments 11 Section VI Total Taxes Levied 12 Total Real and Personal Property Levies 12 Local Net Tax Capacity Based Levies 14 Referendum Market Value Based Levies 16 State Net Tax Capacity Based Levies 17 Section VII Credits 18 Section VIII Initial Tax Rates 24 Section IX Local Tax Rates 32 Section X Excess Tax Increment Taxes 35 Section XI Revised Disparity Reduction Aid 37 Section XII TIF Tax Adjustment Rates 38 Section XIII Miscellaneous 38 Section XIV County Total Record Data 38 Local Net Tax Capacity Based Transmission / Distribution Data 39 Referendum Market Value Based Transmission / Distribution Data 40 State Net Tax Capacity Based Transmission / Distribution Data 41 Section XV Market Values 42 Section XVI Referendum Market Value Based Tax Data 42 Section XVII Contamination Tax Data 44 Section XVIII Senior Citizen Deferred Tax 44

2 Section I Changes for 2016 and Important Notes There were no major changes for taxes payable For taxes payable in 2014 only, a supplemental agricultural credit up to $205 was paid to each eligible taxpayer by the State of Minnesota. For those taxpayers that were paid by the county because they were not included on the file submitted to the Department of Revenue, the state will reimburse the counties the amount paid out. In addition, when the original check issued by the Minnesota Department of Revenue has been lost or returned, taxpayers have three years to correct the record and request payment from the county. Item 565 is for reporting the number of homesteads that received the supplemental agricultural credit directly from the county in the current year. Item 566 is for reporting the amount of credit that needs to be reimbursed to the county for those payments. Item 245 (School District General Education Based Levy) should be reported. It is already included in item 240 (School District Local Net Tax Capacity Based Levy) which is why item 290 excludes item 245. The Department of Revenue is no longer requiring submission of paper printouts of abstracts. A PDF copy of the abstract and certification letter may be ed in place of the paper copy to DataAnalysis.MDOR@state.mn.us. If you choose to send a paper copy, see page 3 for mailing instructions. Section II Electronic File, Printout, and Submission Guidelines Electronic File The 2016 Abstract of Tax Lists must be submitted through the DOR Electronic Data Exchange facility (EDE). For general guidelines regarding the generation of an electronic file for EDE submission a new document has been posted as an attachment to these instructions. Better defined terminology and updated procedures will hopefully clear up any confusion regarding the data file generation process. Abstract of Tax Lists specific guidelines are as follows: The electronic file must have a fixed record length of Data must be reported by Unique Taxing Area using the same sub-district codes as were used on the 2015 Assessment Abstract. The county total record should be the only summation record on the electronic file. NOTE: The way that the data file is generated has not changed; the instructions used to explain the process have just been updated for ease of understanding. 2

3 Web Login Electronic Data Exchange (EDE) The Property Tax EDE address and more detailed instructions are found at: Login using your supplied login and password. Note: If your account is locked or you have any other problems logging in, please contact Click Send a File and select Tax Lists Abstract. Click the Browse button to identify the file to submit from your local hard drive or network. Add a comment about the data submission if appropriate. You may click View Files Sent to see a list of files submitted and their receipt status (receipts are maintained for two weeks). Logout when finished. For password issues only, contact: proptax.ede@state.mn.us (For file format issues and other questions, contact: DataAnalysis.MDOR@state.mn.us or call (651) ) IMPORTANT: You are responsible for maintaining the integrity and security of your DOR login. o Keep passwords secure o Change passwords regularly o Change passwords in the event of a personnel change o If you require additional logins please proptax.ede@state.mn.us Printout A printout of the abstract must be submitted in addition to the electronic data file. A county may choose to send a paper copy or a PDF version. The county name must appear on the printout. Abbreviation of item descriptions is acceptable in order to ease printout generation. However, please be sure that item numbers on your printout match those on the printout format. All item headings and numbers must appear on your printout in the order specified on the printout format even if no data exists. The bold and underlined section headings are optional, and may follow a different format if necessary. Acceptable abstract printouts will have the following characteristics: Data reported for each unique taxing area; Townships are listed first in alphabetic order followed by cities; Subtotal page for each city or township with more than one unique taxing area; County-wide subtotal page for all townships; County-wide subtotal page for all cities; County grand total page; Initial, local and referendum tax rates are not reported on subtotal or total pages; No codes are reported on subtotal or total pages except for the county, city/township, school district and subcode; The TIF code is equal to 000 on the subtotal and county total pages; 3

4 Nines are inserted in the city/township code, school district code and the subcode on the county total page; Mailing Printouts must be mailed to the address below (for submission of abstracts only): Minnesota Department of Revenue Property Tax Division P.O. Box St. Paul, Minnesota PDF versions of the printout should be ed to: Section III Record Identification Fields Both the electronic abstract file and the printout are to include record identification fields as described below. The first twelve characters of each record on the abstract file are intended as the record identification fields. All detail records as well as the county total record must contain appropriate data in these fields. The Department of Revenue issues the city/town codes that are to be reported in the record identification fields. If you need assistance in code determination, please contact or call (651) Item 10: County Code Characters 1 and 2 should contain the county code. All records for a county will have the same two-digit code. For example, Becker County would show 03 in the first two bytes on each record, Rock County would show 67 on each record, etc. The printout will also list this two-digit county code in the upper left corner. Item 20: City/Township Code Characters 3 through 6 should contain our four-digit city/town code. All townships begin with two zeros and all cities end with two zeros. The city/township code for the county total record is The printout will also list this four-digit code in the upper left corner following the county code. Item 30: School District Code Characters 7 through 10 should contain the four-digit school district number for the UTA. For all school districts that have a three-digit code, the first digit will always be 0 (zero). The school district code for the county total record is The printout will also list this four-digit code in the upper left corner following the city/township code. Item 40: Subcode Characters 11 and 12 are for a two-digit subcode. The purpose of the subcode is to provide a unique record identification for those areas where there is more than one unique taxing area 4

5 located within the same school district within the same city or town. Once the subcode is assigned for a unique taxing area, it must remain the same for all abstracts submitted by both the county auditor and the county assessor, and it should not change from one year to the next. The subcode for the county total record is 99. The two-digit code is entered on the printout in the upper left corner following the school district code. The subcode will match the one contained on the 2013 Abstract of Assessment for any given unique taxing area. Each unique taxing area must have a subcode. Note: The subcode should remain the same from one year to the next. Keeping this subcode consistent is extremely important since disparity reduction aid is certified at unique taxing area level. Item 50: TIF Location Code Characters should contain the three-digit code used for identifying a city or township having a tax increment financing (TIF) district(s). The Department of Revenue assigns TIF location codes. Contact Data and Analysis at (651) if you need assistance in TIF location code determination. The three-digit code is placed in the upper left corner of the printout following the subcode. This item corresponds with item 50 on the 2013 TIF District Tax Lists Supplement. If no TIF district exists this field should be zero-filled. The TIF location code on the county total record and page should be 000. A city may contain a city TIF district and a county TIF district. In this case, select the TIF location code associated with the city. For example, a TIF district associated with the Dakota County HRA (TIF code 785) is located within the City of South St. Paul (TIF code 612). If a South St. Paul unique taxing area has Dakota County HRA and South St. Paul TIF districts, TIF location code 612 should be used on the Abstract of Tax Lists. Note: TIF Location Codes should be reported on the Abstract of Tax Lists for all TIF districts that are in existence even if it is the first year and/or there is no TIF retained captured value. Section IV Net Tax Capacity Note: items are the net tax capacities for the local tax and items 155 and 157 are the net tax capacities for the state tax. Metro and Iron Range Counties Note: The net tax capacity values entered in items are the 2015 net tax capacity values before any adjustment for fiscal disparity contribution or distribution is made. The contribution and distribution net tax capacity values are entered in items 130 and 150, respectively. Real and personal property net tax capacity (NTC) values are reported in items The values reported in these fields should include the current tax increment financing (TIF) NTC. The 5

6 NTC values reported in these fields are the NTC values calculated from the taxable market value (market value after limitations, deferments and exclusions). Net tax capacity and market value differences may occur between the tax lists and assessment abstracts at unique taxing area level. Seven acceptable reasons for differences are stated below. errors that are clerical in nature, extension of homesteads, property that changes from forfeited to taxable, property that forfeits for non-payment of taxes that occur after the abstract is submitted, property that changes value in the abatement process, property that has a court ordered value change, or property losing Green Acres status due to sale. Clarification of significant differences may be requested. We will contact you in the event additional information is needed. If readily available, information that explains a NTC or MV difference should be submitted with your abstract. Items 60-75: Real Property Local Net Tax Capacity Record in item 60 the total agricultural/rural real property net tax capacity which is subject to taxation. Item 60 equals the total of all net tax capacity values included in items of the 2015 Abstract of Assessment. Record in item 70 the fully taxable total net tax capacity of all non-agricultural/non-rural real property, and in item 75, record the total net tax capacity of all JOBZ qualifying property. Items 70 and 75 equal the total of all net tax capacity values included in items of the Abstract of Assessment. Items 80-95: Personal Property Local Net Tax Capacity Record agricultural/rural vacant and non-agricultural/non-rural personal property net tax capacity values in items 80, 90, and 95. Do not include the net tax capacity of manufactured homes in items 80 through 95. These values should appear on the Manufactured Home Abstract. Agricultural/rural personal property is reported in item 80. This property consists mostly of structures used for agricultural purposes located on leased land. Record in item 90 all fully taxable non-agricultural/non-rural personal property, and record in item 95 all JOBZ personal property net tax capacity. Item 90 shall also include the net tax capacity value of all transmission and distribution lines whose value is taxed at the local tax rate. Item 90 shall exclude the net tax capacity value of all transmission and distribution lines whose value is taxed at the county average local tax rate. 6 Note: Transmission and distribution line values taxed at the local tax rate include the net tax capacity of all distribution and transmission lines in cities, regardless of their voltage,

7 and the net tax capacity of transmission lines of 69 KV and above in organized townships. This includes the 10% value portion of the 200 KV and above lines constructed after June 30, 1974 in cities and organized townships used to finance the power line credit. Transmission and distribution line values taxed at the county average local tax rate include the net tax capacity of distribution lines in unorganized and organized townships, the net tax capacity of all transmission lines in unorganized townships, regardless of their voltage, and the net tax capacity of transmission lines less than 69 KV in organized townships. These net tax capacity values will equal 2015 personal property assessments revised for any State Board orders (including utility personal property net tax capacity ordered or recommended by the Commissioner of Revenue), omissions, and adjustments for classification and administrative errors. The net tax capacity breakdown of the total personal property is found in items 850, 854, , and of the 2013 Abstract of Assessment. Items : Total Local Net Tax Capacity Record in item 100 the total fully taxable net tax capacity of all real and personal property and the total JOBZ net tax capacity in item 105. Item 100 should equal the sum of items 60, 70, 80, and 90, and item 105 should equal the sum of items 75 and 95. Record in item 107 the sum of items 100 and 105. Item 110: 10% of the 200 KV Power Line Net Tax Capacity Record in item 110 the transmission line net tax capacity that is subject to the local tax rate but is excluded from the initial tax rate determination value. The excluded net tax capacity is 10% of the net tax capacity of the 200 KV transmission lines constructed after June 30, 1974 in cities and organized townships. Item 120: Tax Increment Net Tax Capacity The tax increment net tax capacity to be recorded in item 120 is the retained captured net tax capacity amount (item 290 on the tax increment financing supplement). Item 120 should equal the value of item 1040 of the 2015 Abstract of Assessment. Item 130: Fiscal Disparity Contribution Net Tax Capacity Item 130 is used to report the fiscal disparity final contribution net tax capacity (for the seven metropolitan and the Iron Range counties only). Do not use the initial contribution value. Items 140 and 147: Taxable Net Tax Capacity Item 140, taxable net tax capacity of fully taxable property, is computed by subtracting the power line (item 110), tax increment (item 120), and fiscal disparity contribution (item 130) net tax capacities from the total fully taxable net tax capacity (item 100). An amount should be entered for item 140 whether or not item 140 equals item

8 Item 147 should be the sum of items 105 and 140. It is the total taxable net tax capacity of fully taxable and JOBZ properties. Item 150: Fiscal Disparity Distribution Net Tax Capacity Item 150 is used to report the fiscal disparity final distribution net tax capacity (for the seven metropolitan and the Iron Range counties only). Do not use the initial distribution value. Items 155 and 157: State General Tax Net Tax Capacity Item 155 is used to report the net tax capacity of seasonal residential recreational property that is subject to the state general tax rate as defined in M.S , subd. 3. Below is a complete listing of seasonal residential recreational eligible property, showing the corresponding Assessment Abstract item numbers, classes, and class rates: 8

9 AA State NTC Item # Class Property Description Class Rate Real Property 434 4c(12) Non-Commercial Seas. Res. Rec. to $76, % 436 4c(12) Non-Commercial Seas. Res. Rec. $76,000 to $500, % 438 4c(12) Non-Commercial Seas. Res. Rec. over $500, % 442 1c Commercial Seasonal Res. Rec. Class 1c over $2,300, % 460 4c(1) Commercial Seasonal Res. Rec. Class 4c to $500, % 462 4c(1) Commercial Seasonal Res. Rec. Class 4c over $500, % 486 4c(3)(ii) Non-Profit Community Service Organizations Donations 1.50% Personal Property 882 4c(12) Item 32: Struct. on Leased Rural Land - NCSRR to $76, % 883 4c(12) Item 32: Struct. on Leased Rural Land - NCSRR $76-$500K 1.00% 884 4c(12) Item 32: Struct. on Leased Rural Land - NCSRR over $500, % 912 4c(12) Item 41: Struct. on Leased Urban Land - NCSRR to $76, % 913 4c(12) Item 41: Struct. on Leased Urban Land - NCSRR $76-$500K 1.00% 914 4c(12) Item 41: Struct. on Leased Urban Land - NCSRR over $500, % Note: State net tax capacity class rates for non-commercial seasonal residential recreational property (cabins) differ from the local taxing district net tax capacity class rates for cabins. The following is a comparison of the two class rate structures for cabins. Local Tax State Tax Taxable Market Value Class Rates Class Rates First $76, % 0.40% $76,000 to $500, % 1.00% Over $500, % 1.25% The class rates for all of the other properties subject to the state general property tax are the same as their class rates for local taxing district property tax purposes. Item 157 is used to report the net tax capacity of commercial-industrial property that is subject to the state general tax rate as defined in M.S , subd. 2. Item 157 shall also include the net tax capacity value of all transmission lines whose value is also taxed at the local tax rate. Therefore, item 157 shall include the net tax capacity of all distribution and transmission lines in cities, regardless of their voltage, and the net tax capacity of transmission lines of 69 KV and above in organized townships, (the 10% value portion of the 200 KV lines constructed after June 30, 1974, in cities and organized townships is included in these groups). Below is a complete listing of commercial-industrial eligible property, showing the corresponding Assessment Abstract item numbers, classes, and class rates: 9

10 AA State NTC Item # Class Property Description Class Rate Real Property Commercial 500 3a Commercial to $150, % 520 3a Commercial over $150, % Industrial 630 3a Industrial to $150, % 650 3a Industrial over $150, % Public Utility 750 3a Public Utility Land and Buildings to $150, % 755 3a Public Utility Land and Buildings over $150, % 770 3a Public Utility - All Other (Non-Electric Generating) Machinery 2.00% Railroad 780 3a Railroad Property to $150, % 790 3a Railroad Property over $150, % 800 5(1) Mineral 2.00% Personal Property 870 3a Item 31: Tools and Machinery 2.00% 885 3a Item 32: Fully Taxable Struct. on Leased Rural Land-Comm/Ind 1.50% and/or 2.00% 910 3a Item 41: Structures on Leased Urban Land 1.50% and/or 2.00% 940 3a Item 42: Fully Taxable Structures on RR Right-Of-Way 1.50% and/or 2.00% 975 3a Item 43: Other Fully Taxable Leased Real Estate -Comm/Ind 1.50% and/or 2.00% 980 3a Item 44T: Electric Utilities Transmission Lines 1.50% and/or 2.00% 985 3a Item 44D: Electric Utilities Distribution Lines 1.50% and/or 2.00% 990 3a Item 45: Gas Utilities 1.50% and/or 2.00% a Item 46: Water Utilities 1.50% and/or 2.00% 10

11 Note: State net tax capacity class rates apply to the same taxable market value to which the local taxing district net tax capacity class rates apply. Electric generating public utility machinery is exempt from the state general property tax. The State Assessed Property Section of the Department of Revenue certified these exempt values to county auditors and assessors. Airport property exempt from city and school district property taxes under M.S is also exempt from the state general property tax under M.S , subd. 2. MSP International Airport and Holman Field in St. Paul are exempt under this provision. The total state general property levy is apportioned into a 95% commercial-industrial share and a 5% seasonal residential recreational share. The Department of Revenue determines uniform statewide general property tax rates by dividing the C/I and SRR statewide levies by their respective tax bases as reported on the 2015 Abstract of Assessment. The final state tax rates for taxes payable 2016 are not available at this time. The final state tax rates will be posted on the department s website as soon as they have been determined. DO NOT USE THE PRELIMINARY TAX RATES CERTIFIED FOR TNT PURPOSES. Section V Special Assessments Record in items special assessments that are not levied by local net tax capacity tax rate or referendum tax rate. Special assessments include county ditches, county highways, curbs, gutters, pavement, sewers, or sidewalks that are paid by the property owners who benefit from the improvement without regard to the cash valuation of the benefit. This amount is not part of the ad valorem levy and is not used in computing the county-wide average tax rates. If your county does not keep a record of special assessments by detail districts within the city or township, then it should be included on the detail record which has the majority of the city's or town's net tax capacity. The detail records must add up to the amount shown on the city or town subtotal page on your printout. When public property is benefited by special assessment, such as a sidewalk in front of the county courthouse or city hall, every property owner in the county or city pays a portion of the cost. The payment is made through a fund within the county's or city's total ad valorem levy. Consequently, it is levied by tax rate and is to be reflected in items , not in items

12 Note: Do not include any ad valorem levy amounts for special taxing districts (such as watersheds) in this special assessment section. Levy amounts for special taxing districts belong in item 250 (taxes levied by local net tax capacity tax rate by special taxing districts), and item 294 (taxes levied by referendum tax rate by special taxing districts). Initial tax rates for such levies should be listed in items for special taxing district initial tax rates, and items for special taxing district referendum tax rates. Item 160: County Special Assessments Record in item 160 the amount of county special assessments which are not levied by local net tax capacity tax rate or referendum tax rate. Item 170: City/Township Special Assessments Record in item 170 the amount of city/township special assessments which are not levied by local net tax capacity tax rate or referendum tax rate. Item 180: Special Taxing District Special Assessments Record in item 180 the amount of special taxing district special assessments which are not levied by local net tax capacity tax rate or referendum tax rate. Item 190: Total Special Assessments Record in item 190 the total amount of special assessments which are not levied by local net tax capacity tax rate or referendum tax rate. Item 190 shall equal the sum of items 160, 170 and 180. If there is an amount in item 190, there must be an amount in items 160, 170 and/or 180. Section VI Total Taxes Levied Note: The term levy in this section refers to the amount of taxes actually levied (which some may refer to as being the spread levies ). This is distinct from certified levies which are the levies adopted by taxing jurisdictions. For example, TIF increments (or TIF adjustment amounts, or the taxes on the 10% powerline value) are not part of the levy adopted by a taxing district and certified to the auditor, but they are raised when the taxes are spread. Total Real and Personal Property Levies Item 200: Real Property Levy This field should contain all three levy types: 1) the local net tax capacity based levy associated with real property, 2) the referendum market value based levy associated with real property, and 3) the state net tax capacity based levy associated with real property. 1. The local net tax capacity based real property levy is different for counties, depending on whether they are located within fiscal disparities areas. The local NTC based real 12

13 property levy amount includes taxes levied on the 10% powerline tax capacity, TIF tax rate adjustment amounts, and tax increment tax before credits. Non-Metropolitan, Non-Iron Range Counties: Real property net tax capacity based tax should equal the sum of items 60 and 70 multiplied by the total fully taxable local tax rate (item 1550) plus item 75 multiplied by the JOBZ rate in item Metropolitan and Iron Range Counties: Real property net tax capacity based tax should equal the sum of (1) the total local tax rate (item 1550) multiplied by the difference between the total real net tax capacity and the fiscal disparities real property contribution net tax capacity, (2) the fiscal disparities real property contribution net tax capacity multiplied by the payable 2016 area-wide tax rate ( % for the metro counties and % for the Iron Range counties), and (3) item 75 multiplied by the JOBZ rate in item The real property referendum market value based tax should be based on the real property portion of the total fully taxable referendum market value (item 1925) multiplied by the total fully taxable referendum market value tax rate (item 2430) plus the real property portion of the JOBZ referendum market value (item 1926) multiplied by the total JOBZ referendum market value tax rate (item 2435). 3. The state net tax capacity based levy is based on the real property portion of the state general tax net tax capacities reported in items 155 and 157 and the state uniform tax rates reported to county auditors by the Commissioner of Revenue (the commercialindustrial state tax rate is also reported in item 1918). Item 210: Personal Property Levy This field should contain all three levy types: 1) the local net tax capacity based levy associated with personal property, 2) the referendum market value based levy associated with personal property, and 3) the state net tax capacity based levy associated with personal property. 1. The local net tax capacity based personal property levy is different for counties, depending on whether they are located within fiscal disparities areas. The local NTC based personal property levy amount includes taxes levied on the 10% powerline tax capacity, TIF tax rate adjustment amounts, and tax increment tax before credits. Non-Metropolitan, Non-Iron Range Counties: Fully taxable personal property net tax capacity based tax should equal the sum of items 80 and 90 multiplied by the total fully taxable local tax rate (item 1550) plus the JOBZ personal property levy that is equal to item 95 multiplied by the JOBZ rate in item Metropolitan and Iron Range Counties: Personal property net tax capacity based tax should equal the sum of (1) the fully taxable total local tax rate (item 1550) multiplied by the difference between the total personal net tax capacity and the fiscal disparities personal property contribution net tax capacity, (2) the fiscal 13

14 disparities personal property contribution net tax capacity multiplied by the payable 2016 area-wide tax rate ( % for the Metropolitan Counties and % for the Iron Range Counties), and (3) item 95 multiplied by the JOBZ net tax capacity rate in item Personal property referendum market value based tax should be based on the personal property portion of the total fully taxable referendum market value (item 1925) multiplied by the total referendum market value tax rate (item 2430) plus the personal property portion of the JOBZ referendum market value (item 1926) multiplied by the total JOBZ referendum market value tax rate (item 2435). 3. The state net tax capacity based levy is based on the personal property portion of the state general tax net tax capacities reported in items 155 and 157 and the state uniform tax rates reported to county auditors by the Commissioner of Revenue (the commercialindustrial state tax rate is also reported in item 1918). Local Net Tax Capacity Based Levies Items shall contain the total taxes levied by local tax rate on the net tax capacity of both real and personal property. The levies, separated by type of governmental subdivision, shall include any special assessment tax dollars which are levied by local tax rate on taxable parcels within the taxing district. Levies for the county, city/township, school district, and special taxing district are based on fully taxable net tax capacity (item 140) and JOBZ net tax capacity (item 105). Item 220: County Net Tax Capacity Based Levy Report the county tax levied by local tax rate in item 220. The county tax levy is the county fully taxable local tax rate (item 1290) multiplied by the taxable net tax capacity (item 140) plus the JOBZ county local tax rate (item 1295) multiplied by the JOBZ net tax capacity (item 105). The county levy should not include any tax increment tax, any contribution levy, or any 10% of the 200 KV power line tax (items ). Item 230: City/Township Net Tax Capacity Based Levy The taxes levied by the city or township should be reported in item 230. The city/town tax levy is the city/town fully taxable local tax rate (item 1300) multiplied by the taxable net tax capacity (item 140) plus the JOBZ city/town local tax rate (item 1305) multiplied by the JOBZ net tax capacity (item 105). The city/township levy should not include any tax increment tax, any contribution levy, or any 10% of the 200 KV power line tax (items ). Item 240: School District Net Tax Capacity Based Levy Item 240 contains the combined levies by local tax rate of the school district and intermediate district This levy is based on school district (item 1310) fully taxable local tax rates, and the taxable net tax capacity (item 140) plus the JOBZ local tax rate (item 1315) and the JOBZ net tax capacity (item 105). Education districts and secondary vocational cooperatives are automatically included, as their levy is part of the school district fund levies. The school district 14

15 levy should not include any tax increment tax, any contribution levy, or any 10% of the 200 KV power line tax (items ). Item 245: School District General Education Excess Levy Item 245 contains the school district new general education levy enacted by Minnesota Laws 2013 Chapter 116, Article 1, Sections Item 250: Special Taxing District Net Tax Capacity Based Levy Item 250 contains the tax levied by the total special taxing district fully taxable local tax rate (item 1540) on the taxable net tax capacity in item 140 plus the special taxing district JOBZ rate (item 1545) on the JOBZ net tax capacity in item 105. The special taxing district levy should not include any tax increment tax, any contribution levy, or any 10% of the 200 KV power line tax (items ). Item 260: Tax Increment Financing Tax Before Credit Amount Any tax increment financing district tax is reported in item 260. The tax increment retained captured net tax capacity (item 120) times the total local tax rate (item 1550) equals the amount of tax dollars which are levied for tax increment financing purposes. This amount shall be entered in item 260. This tax increment financing tax is not to be included in any of the other governmental subdivision levies. It appears separately in item 260. Item 265: TIF Tax Rate Adjustment Levy Report in item 265 the amount of tax for a prior year TIF adjustment made under MS , subd 13, if the adjustment is made by adjusting the tax rates of one or more of the taxing districts in the TIF district. Such adjustments are sometimes used to recoup amounts advanced by the county or other entity to the TIF district to replace reduced increments caused by an error in a prior year. Item 270: Contribution Levy Item 270 is to be completed by the seven metropolitan counties and the Iron Range counties only; non-metro, non-iron range counties should zero-fill this field. The fiscal disparities contribution levy is equal to the fiscal disparities final contribution net tax capacity (item 130) multiplied by the fiscal disparities area-wide tax rate of % for the Metropolitan Counties and % for the Iron Range area for taxes payable in Item 280: 10% of the 200 KV Power Line Levy Record in item 280 the tax on the 10% of the 200 KV power line net tax capacity that was not included in the net tax capacity used to determine initial tax rates. The 10% value (item 110) is taxed at the prevailing total local tax rate (item 1550) and is entered in total in item 280. The tax on the 10% value generated by the state general tax rate is NOT to be included in item 280. It is to be included in item 297, state net tax capacity based levy for commercial-industrial property. Item 290: Total Net Tax Capacity Based Levy Item 290 is equal to the sum of items 220, 230, 240, 250, 260, 265, 270, and

16 Referendum Market Value Based Levies Note: Referendum market value is the value as defined in M.S. 126C.01, subd. 3 (which includes all classes except property classified as class 2, noncommercial 4c(12), or 4c(4) as defined under section ). The portion of class 2a property consisting of the house, garage, and surrounding one acre of land of an agricultural homestead is included in referendum market value. For property included in the definition of referendum market value, any property that has a class rate of less than 1% shall have a referendum market value equal to its net tax capacity multiplied by 100. For taxes payable 2016, the only class rates less than 1% that are part of the referendum market value tax base are the 0.45% rate which applies to the first $50,000 of blind/disabled homesteads, the 0.50% rate which applies to the first $600,000 of commercial seasonal residential recreational property containing a homestead, the 0.75% rate which applies to the first $106,000 of class 4d low income rental housing property, and the.25% rate which applies to over the first $106,000 of class 4d low income rental housing property. All classes of property included in the definition of referendum market value with a class rate of 1% or more have a referendum market value equal to the taxable market value. Items are used for reporting county, city/town, school and special taxing district taxable market value based referendum levies. Item 291: County Referendum Market Value Based Levy Report in item 291 only those county referendum levies based on referendum market value (not any referendum levies that might be based on net tax capacity). Item 291 equals the total fully taxable real and personal referendum market value (item 1925) times the county referendum market value tax rate (item 1950) plus the JOBZ value in item 1926 times the JOBZ rate in item Item 292: City/Township Referendum Market Value Based Levy Report in item 292 only those city/township referendum levies based on referendum market value (not any referendum levies that might be based on net tax capacity). Item 292 equals the total fully taxable real and personal referendum market value (item 1925) times the city/town referendum market value tax rate (item 1980) plus the JOBZ referendum market value (item 1926) times the JOBZ referendum market value tax rate (item 1955). Item 293: School District Referendum Market Value Based Levy Report in item 293 only those school district referendum levies based on referendum market value (not any referendum levies that might be based on net tax capacity). Item 293 equals the total fully taxable real and personal referendum market value (item 1925) times the school district referendum tax rate (item 2010). (Effective for taxes payable 2008, the JOBZ referendum market value (item 1926) is not subject to a school district referendum market value tax rate). 16

17 Item 294: Special Taxing District Referendum Market Value Based Levy Report in item 294 only those special taxing district referendum levies based on referendum market value (not any referendum levies that might be based on net tax capacity). Item 294 equals the total fully taxable real and personal referendum market value (item 1925) times the total special taxing district referendum tax rate (item 2420) plus the JOBZ referendum market value (item 1926) times the JOBZ special tax district referendum market value tax rate (item 2425). Item 295: Total Referendum Market Value Based Levy Item 295 equals the sum of the referendum market value based levies for county (item 291), city/town (item 292), school district (item 293), and special taxing district (item 294). State Net Tax Capacity Based Levies Items 296 and 297: State Net Tax Capacity Based Levy The state net tax capacity based levy for seasonal residential recreational property (item 296) is based on the state general tax SRR rate and the state general tax net tax capacity for SRR property (item 155). The state general net tax capacity tax based levy for commercial-industrial property (item 297) is based on the state general tax C/I rate and the state general tax net tax capacity for C/I property (item 157). As such, it includes the state general tax on tax increment property, fiscal disparity property, and on the 10% portion of 200 KV power lines. The entire state general property tax generated from the state general property tax base is for state general fund purposes only. There is no state tax on JOBZ values. Note: The 10% portion of excluded net tax capacity on 200KV and above transmission lines used to fund the power line credit is also subject to the state general property tax commercial-industrial rate. The portion of the tax raised by the state general property tax commercial-industrial rate is distributed to the state and is not used to fund the power line credit. Item 298: Total Property Tax Levy The total property tax levy is equal to the sum of the levies based on local net tax capacity (item 290), referendum market value (item 295), and the state net tax capacity based levies (items 296 and 297). Item 298 should also equal the sum of items 200 and

18 Section VII Credits While the credits are shown in a different order on the Abstract of Tax Lists, M.S provides that net property taxes are determined by subtracting the credits in the following order: 1) Homestead Disaster Credit and Local Option Disaster Credits (Items ) 2) Powerline Credit (Items ) 3) Agricultural Preserves Credit (Items ) 4) Disparity Reduction Credit (Items ) 5) County Conservation Credit (Items ) 6) Agricultural Homestead Credit (Items ) 7) Taconite Homestead Credit (Items ) 8) Supplemental (taconite) Homestead Credit (Items ) ITEMS : Credit Amounts IMPORTANT NOTE: Except for the Agricultural homestead credit that can only be applied to local net tax capacity based taxes, some of the non-tif related total credit amount fields are to be distributed between net tax capacity and referendum market value credits. The credits will then be either credited against the market value based tax only if the credit exceeds a parcel s net tax capacity based tax (Agricultural Preserves Credit, County Conservation Credit, Power Line Credit, Disparity Reduction Credit, Taconite and Supplemental Taconite Credit), or against both the net tax capacity based tax and the market value based tax in proportion to their respective tax bases (Disaster Credit, Local Option Disaster Credit). For further detail in the distribution of the credits please refer to the Auditor/Treasurer Manual located on the DOR website. Items 300, 310, 320, and 330: Agricultural Preserves Credit All data pertaining to the agricultural preserves credit (metro counties only) is reported in items If your county is involved in the County Conservation program, include the County Conservation Credit data in the Agricultural Preserves Credit fields. Record in item 300 the total number of parcels receiving the agricultural preserves credit. In item 310 enter the total number of agricultural preserves acres. The total net tax capacity of all land designated as agricultural preserves land and of all non-residential buildings used for agricultural purposes and located on such land is to be reported in item 320. Agricultural preserves credit is calculated using two methods. The calculation method yielding the highest credit determines the credit amount. The credit calculation for method one is equal to the agricultural preserves net tax capacity (item 320) multiplied by the difference between 18

19 the total local tax rate (item 1550) and the current payable year agricultural preserve credit local tax rate (80% for taxes payable in 2016). The second calculation procedure is simply the product of the number of agricultural preserves credit acres (item 310) and $1.50. Record in item 330 the total agricultural preserves credit actually awarded. Items 340, 346, 350, 360, 365 and 370: Homestead Disaster Credit These items are to be filled out only for those communities with homesteads that qualify for disaster credit as a result of an officially declared disaster (see M.S ). Local option disaster credits are not to be reported here (see items 372, 374, 376, 378, 380 and 385 below). Enter in item 340 the total number of parcels that receive a homestead disaster credit. Item 346 is completed only if homesteads receiving disaster credits have a referendum market value based tax. Enter in item 346 the difference between the January 2 referendum market value and the reassessed referendum market value for all parcels receiving homestead disaster credits. Item 350 is completed for ALL unique taxing areas with parcels receiving for disaster credit. Report in item 350 the difference between the January 2 net tax capacity and the net tax capacity calculated using the reassessed market value for all parcels receiving homestead disaster credits. Enter in item 360 the total homestead disaster credit allocated to tax increment financing districts. The amount shown in item 360 is the amount that will be sent entirely to the tax increment financing district(s). Tax increment financing districts only receive disaster credit based on net tax capacity levies. Disaster credit associated with referendum market value levies is not allocated to tax increment financing districts. The amount of disaster credits allocated to all other taxing districts (county, city, town, school district, and any specials) are to be recorded in item 365 to the extent they applied to the net tax capacity based tax (item 290) or in item 370 to the extent they applied to the the referendum market value based tax (item 295). Items 372, 374, 376, 378, 380 and 385: Local Option Disaster Credit M.S provides that a county board may grant a disaster credit for homestead properties which do not qualify for disaster credits under M.S and non-homestead properties meeting the requirements under M.S There are essentially two types of local option disaster credits: (1) those granted to properties that are NOT located in a disaster or emergency area (which are not reimbursed by the state are have a less generous computation), and (2) those granted to properties that ARE located in a disaster or emergency area (which are reimbursed by the state and have a more generous computation). IMPORTANT: ONLY REPORT LOCAL OPTION DISASTER CREDITS THAT ARE GRANTED TO PROPERTIES LOCATED IN A DISASTER OR EMERGENCY AREA. This reporting is used to reimburse local option disaster credits located in a disaster or emergency area and is not intended to collect information on unreimbursed local option disaster credits. Enter in item 372 the total number of parcels located in a disaster or emergency area that receive a local option disaster credit. Item 374 is completed only if parcels receiving local option 19

20 disaster credits in a disaster or emergency area have a referendum market value based tax. Enter in item 374 the difference between the January 2 referendum market value and the reassessed referendum market value for all parcels in a disaster or emergency area receiving local option disaster credits. Item 376 is completed for ALL unique taxing areas with parcels located in a disaster or emergency area that are receiving local option disaster credits. Report in item 376 the difference between the January 2 net tax capacity and the net tax capacity calculated using the reassessed market value for all parcels located in a disaster or emergency area that are receiving local option disaster credits. Enter in item 378 the total amount of local option disaster credits granted to parcels located in a disaster or emergency area that are allocated to tax increment financing districts. The amount shown in item 378 is the amount that will be sent entirely to the tax increment financing district(s). Tax increment financing districts only receive disaster credit based on net tax capacity levies. Disaster credit associated with referendum market value levies is not allocated to tax increment financing districts. The amount of local option disaster credits granted to parcels located in a disaster or emergency area that are allocated to all other taxing districts (county, city, town, school district, and any specials) are to be recorded in item 380 to the extent they applied to the net tax capacity based tax (item 290) or in item 385 to the extent they applied to the referendum market value based tax (item 295). Note: For any questions regarding disaster credits, please refer to the Property Tax Division Bulletin entitled Tax Relief for Disaster and Destroyed Property on our website ( Items 400, 405, 410, 420, 430, 440, 450, and 460: Taconite Homestead Credit Items should contain all data pertaining to the taconite homestead credit. Prior year adjustment amounts for both the 57% and the 66% taconite homestead credit are to be combined and reported - with an indication of positive or negative - in item 400. Please recheck prior year adjustment amounts to ensure that all detail records are reported correctly and the sum of these records equals the county total. Again, report in whole dollars only. Report in item 405 the total amount of 57%, 66% and/or supplemental taconite credit allocated to a tax increment financing (TIF) district(s). The amount reported in item 405 should reflect the total taconite credit amount that will be sent to a TIF district(s). Report in item 410 the current year 57% taconite homestead credit and supplemental taconite credit associated with non-tif taxing districts. Items 420 and 430 are provided to record the number of homesteads receiving the 57% credit. Record in item 420 the number of homesteads receiving less than the $ maximum and in item 430 the number receiving the maximum. Supplemental taconite credits (M.S ) pertains only to school districts #0001 and #0182 in Aitkin and Crow Wing Counties, #0317 and #0318 in Itasca County, and school district #0698 in Aitkin and St. Louis Counties where supplemental relief is given instead of the taconite homestead credit. 20

21 Report in item 440 the current year 66% taconite homestead credit associated with non-tif taxing districts. Items 450 and 460 are provided to record the number of homesteads receiving the 66% credit. Record in item 450 the number receiving less than the $ maximum and in item 460 the number receiving the maximum. Correct procedure for count reporting: Each homestead property qualifying for taconite credit is to be tallied only once. If such a homestead encompasses more than one property description, it is to be counted as one unit. Do not count each and every parcel that has taconite homestead credit extended to it as a homesteaded property for count purposes. It is of great importance, if these counts are to be of any use for credit estimation purposes, that the count is shown in the credit size interval that applies to the total credit on all parcels of that homestead. For example, a farm homestead qualifies for the 66% taconite credit and encompasses 3 parcels, each parcel getting $ of taconite homestead credit. The correct count of "1" should be entered in item 450 because the total taconite homestead credit for that entire homestead is $ It is possible for a parcel to have more than one homestead qualify for taconite credit. In those situations, each homestead on the parcel is counted as 1 and listed in item 420, 430, 450, or 460 according to the taconite credit and size of credit it receives. In situations with cross county homesteads, the count should appear only in the county containing the base parcel. The taconite homestead credit count for fractional homesteads should be reported as one (rather than ½, for example). Since the taconite credit for fractional homesteads is apportioned according to the percentage of interest in the property, the credit will always be less than the maximum and the count should appear in either item 420 or 450. Items 470, 480 and 490: Power Line Credit Items shall contain all data pertaining to the power line credit. This includes credits for both those power lines taxed at the local tax rate (organized townships and cities) and those taxed at the countywide average rate (unorganized townships). All power line credits are applied to local tax rate levies even if funded by the countywide average rate. Enter in item 470 the total number of parcels that are receiving less than the maximum amount of power line credit for which they are eligible. Enter in item 480 the total number of parcels that are receiving the maximum amount of power line credit for which they are eligible. The maximum power line credit is 20% of the tax (including referendum market value based taxes) before credits. The total power line credit amount is to be recorded in item 490. Enter only the amount of total credit the parcel(s) in that unique taxing area will actually receive. Do not include any excess credit amount. The excess credit in cities and organized townships should be distributed to the taxing districts in the taxing area in the same proportion as the local tax rates. The excess in 21