HF4686

Purpose

This bill modifies how certain school district levies are handled for tax purposes and aims to make the portion of a district’s levy used for debt service eligible for the school building bond agricultural credit. It also clarifies certification steps for districts that span more than one county.

Main Provisions

• For school districts that lie in more than one county, the clerk must certify the district’s tax levy to the county auditor in which the district’s administrative offices are located.
• The district must identify the portion of its levy that is levied for debt service at the time the levy is certified.
• Definition of “levied for debt service” has two parts: 1) The portion equal to levies authorized under sections 123B.53, 123B.535, and 123B.55, adjusted by sections 126C.46 and 126C.48, net of debt excess levy reductions under section 475.61 subdivision 4, and excluding debt service amounts needed to repay other postemployment benefits (OPEB) under section 475.52 subdivision 6. 2) The levy authorized under section 126C.40 that is assessed and certified by a cooperative unit to the district as the district’s share attributable to debt issued by the cooperative unit.
• The overall effect is to confirm and quantify the debt service portion of levies so that those amounts can qualify for the school building bond agricultural credit.

Significant Changes to Existing Law

• Establishes a precise framework for identifying and certifying the debt service portion of school district levies when districts are located in multiple counties.
• Incorporates multiple statutory references (various sections of the Minnesota Charter/School Finance laws) to determine how the debt service portion is calculated, including adjustments and exclusions (notably excluding OPEB-related debt service and applying cooperative unit debt allocations).

Affected Parties

• School districts, particularly those spanning more than one county.
• County auditors receiving levy certifications.
• District clerks responsible for certifying and identifying levy components.
• Cooperative units that issue debt and allocate a share to districts.

Terminology and Key Concepts (for clarity and search relevance)

• lease levy amounts
• school district levy
• debt service
• debt excess levy reductions
• other postemployment benefits (OPEB)
• cooperative unit
• School Building Bond Agricultural Credit
• Minnesota Statutes 2024 section 275.07 subdivision 2
• sections 123B.53, 123B.535, 123B.55
• sections 126C.46, 126C.48
• section 475.61 subdivision 4
• section 475.52 subdivision 6
• section 126C.40

Relevant Terms - school district levy - debt service - debt excess levy reductions - OPEB (other postemployment benefits) - cooperative unit - School Building Bond Agricultural Credit - multi-county districts - levy certification - county auditor