HF 654

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2017 03:48pm

A bill for an act
relating to taxes; allowing a reverse referendum for property tax levies under certain
circumstances; modifying dates for local referenda related to spending; amending
Minnesota Statutes 2016, sections 123B.63, subdivision 3; 126C.17, subdivision
9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; 237.19; 275.065,
subdivision 3; 275.07, subdivision 1; 275.60; 276.04, subdivisions 1, 2; 412.221,
subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, 3, 4, 6, 7;
452.11; 455.24; 455.29; 459.06, subdivision 1; 469.053, subdivision 5; 469.107,
subdivision 2; 469.190, subdivisions 1, 5; 471.57, subdivision 3; 471.571,
subdivision 3; 471.572, subdivisions 2, 4; 475.59; proposing coding for new law
in Minnesota Statutes, chapter 275; repealing Minnesota Statutes 2016, section
205.10, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

(a) A district may levy the local tax rate
approved by a majority of the electors voting on the question to provide funds for an approved
project. The election must take place no more than five years before the estimated date of
commencement of the project. The referendum deleted text begin must deleted text end new text begin may new text end be deleted text begin held on a date set deleted text end new text begin called new text end by
the board new text begin and, except as provided in paragraph (g), must be held on the first Tuesday after
the first Monday in November in either an even-numbered or odd-numbered year new text end . A district
must meet the requirements of section 123B.71 for projects funded under this section. If a
review and comment is required under section 123B.71, subdivision 8, a referendum for a
project not receiving a positive review and comment by the commissioner must be approved
by at least 60 percent of the voters at the election.

(b) deleted text begin The deleted text end new text begin A new text end referendum deleted text begin may be deleted text end called deleted text begin by the school board and deleted text end new text begin under this subdivision new text end may
be held:

(1) separately, before an election for the issuance of obligations for the project under
chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project under
chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital
project levy and the issuance of obligations for the project under chapter 475. Any obligations
authorized for a project may be issued within five years of the date of the election.

(c) The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or negative
review and comment from the commissioner, state the maximum amount of the capital
project levy as a percentage of net tax capacity, state the amount that will be raised by that
local tax rate in the first year it is to be levied, and state the maximum number of years that
the levy authorization will apply.

The ballot must contain a textual portion with the information required in this section
and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District No. ..........
be approved?"

If approved, the amount provided by the approved local tax rate applied to the net tax
capacity for the year preceding the year the levy is certified may be certified for the number
of years, not to exceed ten, approved.

(d) If the district proposes a new capital project to begin at the time the existing capital
project expires and at the same maximum tax rate, the general description on the ballot may
state that the capital project levy is being renewed and that the tax rate is not being increased
from the previous year's rate. An election to renew authority under this paragraph may be
called at any time that is otherwise authorized by this subdivision. The ballot notice required
under section 275.60 may be modified to read:

"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW
AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO
EXPIRE."

(e) In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

(f) The district must notify the commissioner of the results of the referendum.

new text begin (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance
a district's response to a disaster or emergency may be held on a date set by the board.
"Disaster" means a situation that creates an actual or imminent serious threat to the health
and safety of persons, or a situation that has resulted or is likely to result in catastrophic
loss to property or the environment. "Emergency" means an unforeseen combination of
circumstances that calls for immediate action to prevent a disaster, identified in the
referendum, from developing or occurring.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board. The
referendum must be conducted one or two calendar years before the increased levy authority,
if approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
November. The ballot must state the maximum amount of the increased revenue per adjusted
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per adjusted pupil unit that differs from year to year over the number of years for which the
increased revenue is authorized or may state that the amount shall increase annually by the
rate of inflation. new text begin The ballot must state the cumulative amount per pupil of any local optional
revenue, board-approved referendum authority, and previous voter-approved referendum
authority, if any, that the board expects to certify for the next school year. new text end For this purpose,
the rate of inflation shall be the annual inflationary increase calculated under subdivision
2, paragraph (b). The ballot may state that existing referendum levy authority is expiring.
In this case, the ballot may also compare the proposed levy authority to the existing expiring
levy authority, and express the proposed increase as the amount, if any, over the expiring
referendum levy authority. The ballot must designate the specific number of years, not to
exceed ten, for which the referendum authorization applies. The ballot, including a ballot
on the question to revoke or reduce the increased revenue amount under paragraph (c), must
abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section
275.60 may be modified to read, in cases of renewing existing levies at the same amount
per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE."

The ballot may contain a textual portion with the information required in this subdivision
and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of ........., School
District No. .., be approved?"

If approved, an amount equal to the approved revenue per adjusted pupil unit times the
adjusted pupil units for the school year beginning in the year after the levy is certified shall
be authorized for certification for the number of years approved, if applicable, or until
revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where tax
statements are mailed by the county treasurer, on the records of the county treasurer. Every
property owner whose name does not appear on the records of the county auditor or the
county treasurer is deemed to have waived this mailed notice unless the owner has requested
in writing that the county auditor or county treasurer, as the case may be, include the name
on the records for this purpose. The notice must project the anticipated amount of tax increase
in annual dollars for typical residential homesteads, agricultural homesteads, apartments,
and commercial-industrial property within the school district.

new text begin The notice must state the cumulative and individual amounts per pupil of any local
optional revenue, board-approved referendum authority, and voter-approved referendum
authority, if any, that the board expects to certify for the next school year.
new text end

The notice for a referendum may state that an existing referendum levy is expiring and
project the anticipated amount of increase over the existing referendum levy in the first
year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will result
in an increase in your property taxes." However, in cases of renewing existing levies, the
notice may include the following statement: "Passage of this referendum extends an existing
operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue amount
authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
or reduce the revenue amount must state the amount per adjusted pupil unit by which the
authority is to be reduced. Revenue authority approved by the voters of the district pursuant
to paragraph (a) must be available to the school district at least once before it is subject to
a referendum on its revocation or reduction for subsequent years. Only one revocation or
reduction referendum may be held to revoke or reduce referendum revenue for any specific
year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a copy of
the notice required under paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days after the results of the referendum
have been certified by the board, or in the case of a recount, the certification of the results
of the recount by the canvassing board, the district must notify the commissioner of the
results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2016, section 205.10, subdivision 1, is amended to read:

Subdivision 1.

Questions.

Special elections may be held in a city or town on a question
on which the voters are authorized by law or charter to pass judgment. new text begin A special election
on a question may only be held on the first Tuesday after the first Monday in November in
either an even-numbered or odd-numbered year. new text end A special election may be ordered by the
governing body of the municipality on its own motion or, on a question that has not been
submitted to the voters in an election within the previous six months, upon a petition signed
by a number of voters equal to 20 percent of the votes cast at the last municipal general
election. A question is carried only with the majority in its favor required by law or charter.
The election officials for a special election shall be the same as for the most recent municipal
general election unless changed according to law. Otherwise special elections shall be
conducted and the returns made in the manner provided for the municipal general election.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2016, section 205A.05, subdivision 1, is amended to read:

Subdivision 1.

Questions.

deleted text begin (a) deleted text end Special elections must be held for a school district on a
question on which the voters are authorized by law to pass judgment. new text begin The special election
on a question may only be held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year. new text end The school board may on its own motion
call a special election to vote on any matter requiring approval of the voters of a district.
Upon petition filed with the school board of 50 or more voters of the school district or five
percent of the number of voters voting at the preceding school district general election,
whichever is greater, the school board shall by resolution call a special election to vote on
any matter requiring approval of the voters of a district. A question is carried only with the
majority in its favor required by law. The election officials for a special election are the
same as for the most recent school district general election unless changed according to
law. Otherwise, special elections must be conducted and the returns made in the manner
provided for the school district general election.

deleted text begin (b) A special election may not be held:
deleted text end

deleted text begin (1) during the 56 days before and the 56 days after a regularly scheduled primary or
general election conducted wholly or partially within the school district;
deleted text end

deleted text begin (2) on the date of a regularly scheduled town election or annual meeting in March
conducted wholly or partially within the school district; or
deleted text end

deleted text begin (3) during the 30 days before or the 30 days after a regularly scheduled town election
in March conducted wholly or partially within the school district.
deleted text end

deleted text begin (c) Notwithstanding any other law to the contrary, the time period in which a special
election must be conducted under any other law may be extended by the school board to
conform with the requirements of this subdivision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2016, section 216B.46, is amended to read:

216B.46 MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION.

Any municipality which desires to acquire the property of a public utility as authorized
under the provisions of section 216B.45 may determine to do so by resolution of the
governing body of the municipality taken after a public hearing of which at least 30 days'
published notice shall be given as determined by the governing body. The determination
shall become effective when ratified by a majority of the qualified electors voting on the
question at a special election to be held for that purpose deleted text begin , not less than 60 nor more than 120
days after the resolution of the governing body of the municipality deleted text end new text begin on the first Tuesday after
the first Monday in November in either an even-numbered or odd-numbered year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2016, section 237.19, is amended to read:

237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.

Any municipality shall have the right to own and operate a telephone exchange within
its own borders, subject to the provisions of this chapter. It may construct such plant, or
purchase an existing plant by agreement with the owner, or where it cannot agree with the
owner on price, it may acquire an existing plant by condemnation, as hereinafter provided,
but in no case shall a municipality construct or purchase such a plant or proceed to acquire
an existing plant by condemnation until such action by it is authorized by a majority of the
electors voting upon the proposition at deleted text begin a general deleted text end new text begin an new text end election deleted text begin or a special election called for
that purpose deleted text end new text begin held on the first Tuesday after the first Monday in November in either an
even-numbered or odd-numbered year new text end , and if the proposal is to construct a new exchange
where an exchange already exists, it shall not be authorized to do so unless 65 percent of
those voting thereon vote in favor of the undertaking. A municipality that owns and operates
a telephone exchange may enter into a joint venture as a partner or shareholder with a
telecommunications organization to provide telecommunications services within its service
area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan taxing
districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior to the final
budget and levy determination. The taxing authorities must provide the county auditor with
the information to be included in the notice on or before the time it certifies its proposed
levy under subdivision 1. The public must be allowed to speak at that meeting, which must
occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions related to the
notice and an address where comments will be received by mail, except that no notice
required under this section shall be interpreted as requiring the printing of a personal
telephone number or address as the contact information for a taxing authority. If a taxing
authority does not maintain public offices where telephone calls can be received by the
authority, the authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, voter approved school levy, other
local school levy, and the sum of the special taxing districts, and as a total of all taxing
authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; deleted text begin and
deleted text end

(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) a statement at the top of the notice stating the following: if a county's or city's
proposed levy for next year is greater than its actual levy for the current year, the voters
may have the right to petition for a referendum on next year's levy certification, according
to Minnesota Statutes, section 275.80, provided that the final levy that the local government
certifies in December of this year is also greater than its levy for the current year.
new text end

For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include the
following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value reductions
for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:

Subdivision 1.

Certification of levy.

(a) Except as provided under paragraph (b), the
taxes voted by cities, counties, school districts, and special districts shall be certified by the
proper authorities to the county auditor on or before five working days after December 20
in each year. A town must certify the levy adopted by the town board to the county auditor
by September 15 each year. If the town board modifies the levy at a special town meeting
after September 15, the town board must recertify its levy to the county auditor on or before
five working days after December 20. new text begin If a city or county levy is subject to a referendum
under section 275.80 and the referendum was approved by the voters, the maximum levy
certified under this section is the proposed levy certified under section 275.065. If the
referendum was not approved, the maximum amount of levy that a city or county may
approve under this section is the maximum alternative levy allowed in section 275.80,
subdivision 2. The city or county may choose to certify a levy less than the allowed maximum
amount. new text end If a city, town, county, school district, or special district fails to certify its levy by
that date, its levy shall be the amount levied by it for the preceding year.

(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
shall be separately certified by the county to the county auditor on or before five working
days after December 20 in each year. The taxes certified shall not be reduced by the county
auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify
its levy by that date, its levy shall be the amount levied by it for the preceding year.

(ii) For purposes of the proposed property tax notice under section 275.065 and the
property tax statement under section 276.04, for the first year in which the county implements
the provisions of this paragraph, the county auditor shall reduce the county's levy for the
preceding year to reflect any amount levied for water management purposes under clause
(i) included in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 275.60, is amended to read:

275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE.

(a) Notwithstanding any general or special law or any charter provisions, but subject to
section 126C.17, subdivision 9, any question submitted to the voters by any local
governmental subdivision at deleted text begin a general or special deleted text end new text begin an new text end election after deleted text begin June 8, 1995 deleted text end new text begin June 30,
2017 new text end , authorizing a property tax levy or tax rate increase, including the issuance of debt
obligations payable in whole or in part from property taxes, must include on the ballot the
following notice in boldface type:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A
PROPERTY TAX INCREASE."

(b) For purposes of this section and section 275.61, "local governmental subdivision"
includes counties, home rule and statutory cities, towns, school districts, and all special
taxing districts. This statement is in addition to any general or special laws or any charter
provisions that govern the contents of a ballot question and, in the case of a question on the
issuance of debt obligations, may be supplemented by a description of revenues pledged to
payment of the obligations that are intended as the primary source of payment.

new text begin (c) An election under this section must be held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year. This paragraph does not
apply to an election on levying a tax or issuing debt obligations to finance the local
government's response to a disaster or emergency. An election for these purposes may be
held on a date set by the governing body. "Disaster" means a situation that creates an actual
or imminent serious threat to the health and safety of persons, or a situation that has resulted
or is likely to result in catastrophic loss to property or the environment. "Emergency" means
an unforeseen combination of circumstances that calls for immediate action to prevent a
disaster, identified in the referendum, from developing or occurring.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end This section does not apply to a school district bond election if the debt service
payments are to be made entirely from transfers of revenue from the capital fund to the debt
service fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 10.

new text begin [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section shall be known as the "Property Tax Payers'
Empowerment Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "General levy" means the total levy certified under section 275.07 by the local
governmental unit, excluding any levy that was approved by the voters at a general or special
election.
new text end

new text begin (c) "Local governmental unit" means a county or a statutory or home rule charter city
with a population of 500 or greater.
new text end

new text begin (d) "Maximum alternative levy" for taxes levied in a current year by a local governmental
unit means the sum of (1) its nondebt levy certified two years previous to the current year,
and (2) the amount of its proposed levy for the current year levied for the purposes listed
in section 275.70, subdivision 5, clauses (1) to (5).
new text end

new text begin (e) "Nondebt levy" means the total levy certified under section 275.07 by the local
governmental unit, minus any amount levied for the purposes listed in section 275.70,
subdivision 5, clauses (1) to (5).
new text end

new text begin Subd. 3. new text end

new text begin Levy increase; reverse referendum authority. new text end

new text begin If the certified general levy
exceeds the general levy in the previous year, the voters may petition for a referendum on
the levy to be certified for the following year. The county auditor must publish information
on the right to petition for a referendum as provided in section 276.04, subdivisions 1 and
2. If by June 30, a petition signed by the voters equal in number to ten percent of the votes
cast in the last general election requesting a vote on the levy is filed with the county auditor,
a question on the levy to be certified for the current year must be placed on the ballot at
either the general election or at a special election held on the first Tuesday after the first
Monday in November of the current calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Prohibition against new debt before the election. new text end

new text begin Notwithstanding any other
provision of law, ordinance, or local charter provision, a county or city must not issue any
new debt or obligation from the time the petition for referendum is filed with the county
auditor under subdivision 3 until the day after the referendum required under this section
is held, except as allowed in this subdivision. Refunding bonds and bonds that have already
received voter approval are exempt from the prohibition in this subdivision. For purposes
of this subdivision, "obligation" has the meaning given in section 475.51, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Ballot question; consequence of vote. new text end

new text begin (a) The question submitted to the voters
as required under subdivision 3 shall take the following form:
new text end

new text begin "The governing body of ....... has imposed the following property tax levy in the last
two years and is proposing the following maximum levy increase for the coming year:
new text end

new text begin (previous payable year) new text end	new text begin (current payable year) new text end	new text begin (coming payable year) new text end
new text begin Total levy new text end	new text begin Total levy new text end	new text begin Maximum proposed levy new text end
new text begin $....... new text end	new text begin $....... new text end	new text begin $....... new text end

new text begin Shall the governing body of ....... be allowed to impose the maximum proposed levy
listed above?
new text end

	new text begin Yes . new text end
	new text begin No . new text end

new text begin If the majority of votes cast are "no," its maximum allowed property tax levy for the
coming year will be reduced to its maximum alternative levy of ......."
new text end

new text begin (b) If a city is subject to this provision, it will provide the county auditor with information
on its proposed levy by September 30 necessary to calculate the maximum alternative levy
under subdivision 2.
new text end

new text begin (c) If the majority of votes cast on this question are in the affirmative, the levy certified
by the local governmental unit under section 275.07 must be less than or equal to its proposed
levy under section 275.065. If the question does not receive sufficient affirmative votes,
the levy amount that the local governmental unit certifies under section 275.07 in the current
year must be less than or equal to its maximum alternative levy as defined in subdivision
2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2016, section 276.04, subdivision 1, is amended to read:

Subdivision 1.

Auditor to publish rates.

On receiving the tax lists from the county
auditor, the county treasurer shall, if directed by the county board, give three weeks' published
notice in a newspaper specifying the rates of taxation for all general purposes and the
amounts raised for each specific purpose. new text begin If a city or county is subject to a petition of the
voters due to a general levy increase as provided in section 275.80, the published notice
must also include the general levy for the current year and the previous year for that city or
county along with the following statement:
new text end

new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current
year, the voters in that jurisdiction have the right to petition for a referendum under Minnesota
Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum, a
petition signed by voters equal to ten percent of the votes cast in the last general election
must be filed with the county auditor by June 30 of the current year."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under section 273.11,
subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13, subdivision
35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for homestead agricultural properties, the credit under section 273.1384;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as "taconite tax
relief"; and

(7) the net tax payable in the manner required in paragraph (a).

new text begin (d) If a city or county is subject to a petition of the voters due to a general levy increase
as provided in section 275.80, the tax statement must also include the general levy for the
current year and the previous year for that city or county along with the following statement:
new text end

new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current
year, the voters in that jurisdiction have the right to petition for a referendum on that
jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the
referendum, a petition signed by voters equal to ten percent of the votes cast in the last
general election on this issue must be filed with the county auditor by June 30 of the current
year."
new text end

deleted text begin (d) deleted text end new text begin (e) new text end If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2016, section 412.221, subdivision 2, is amended to read:

Subd. 2.

Contracts.

The council shall have power to make such contracts as may be
deemed necessary or desirable to make effective any power possessed by the council. The
city may purchase personal property through a conditional sales contract and real property
through a contract for deed under which contracts the seller is confined to the remedy of
recovery of the property in case of nonpayment of all or part of the purchase price, which
shall be payable over a period of not to exceed five years. When the contract price of property
to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent
of the estimated market value of the city, the city may not enter into such a contract for at
least ten days after publication in the official newspaper of a council resolution determining
to purchase property by such a contract; and, if before the end of that time a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular city election is filed with the clerk, the city may not enter into such
a contract until the proposition has been approved by a majority of the votes cast on the
question at deleted text begin a regular or special deleted text end new text begin an new text end election new text begin held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2016, section 412.301, is amended to read:

412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software.

(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at deleted text begin a regular or special deleted text end new text begin an new text end election new text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year new text end .

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2016, section 426.19, subdivision 2, is amended to read:

Subd. 2.

Referendum in certain cases.

Before the pledge of any such revenues to the
payment of any such bonds, warrants or certificates of indebtedness, except bonds, warrants
or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
store shall be made, the governing body shall submit to the voters of the city the question
of whether such revenues shall be so pledged and such pledge shall not be binding on the
city until it shall have been approved by a majority of the voters voting on the question at
deleted text begin either a general deleted text end new text begin an new text end election deleted text begin or special election called for that purpose deleted text end new text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year new text end . No
election shall be required for pledge of such revenues for payment of bonds, warrants or
certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
store.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2016, section 447.045, subdivision 2, is amended to read:

Subd. 2.

Statutory city; on-sale and off-sale store.

If the voters of a statutory city
operating an on-sale and off-sale municipal liquor store, at deleted text begin a general or special deleted text end new text begin an new text end election new text begin
held on the first Tuesday after the first Monday in November of either an even-numbered
or odd-numbered year new text end , vote in favor of contributing from its liquor dispensary fund toward
the construction of a community hospital, the city council may appropriate not more than
$60,000 from the fund to any incorporated nonprofit hospital association to build a
community hospital in the statutory city. The hospital must be governed by a board including
two or more members of the statutory city council and be open to all residents of the statutory
city on equal terms. This appropriation must not exceed one-half the total cost of construction
of the hospital. The council must not appropriate the money unless the average net earnings
of the on-sale and off-sale municipal liquor store have been at least $10,000 for the last five
completed fiscal years before the date of the appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2016, section 447.045, subdivision 3, is amended to read:

Subd. 3.

Statutory city; off-sale or on- and off-sale store.

(a) If a statutory city operates
an off-sale, or an on- and off-sale municipal liquor store it may provide for a vote at deleted text begin a general
or special deleted text end new text begin an new text end election new text begin held on the first Tuesday after the first Monday in November of either
an even-numbered or odd-numbered year new text end on the question of contributing from the city liquor
dispensary fund to build, maintain, and operate a community hospital. If the vote is in favor,
the city council may appropriate money from the fund to an incorporated hospital association
for a period of four years. The appropriation must be from the net profits or proceeds of the
municipal liquor store. It must not exceed $4,000 a year for hospital construction and
maintenance or $1,000 a year for operation. The hospital must be open to all residents of
the community on equal terms.

(b) The council must not appropriate the money unless the average net earnings of the
off-sale, or on- and off-sale municipal liquor store have been at least $8,000 for the last two
completed years before the date of the appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2016, section 447.045, subdivision 4, is amended to read:

Subd. 4.

Fourth class city operating store.

If a city of the fourth class operates a
municipal liquor store, it may provide for a vote at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end on the question of contributing from the profit in the city liquor
dispensary fund to build, equip, and maintain a community hospital within the city limits.
If the vote is in favor, the city council may appropriate not more than $200,000 from profits
in the fund for the purpose. The hospital must be open to all residents of the city on equal
terms.

The city may issue certificates of indebtedness in anticipation of and payable only from
profits from the operation of municipal liquor stores.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 19.

Minnesota Statutes 2016, section 447.045, subdivision 6, is amended to read:

Subd. 6.

Statutory city; fourth class.

If a fourth class statutory city operates a municipal
liquor store, it may provide for a vote at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on the first
Tuesday after the first Monday in November of either an even-numbered or odd-numbered
year new text end on the question of contributing from the city liquor dispensary fund not more than
$15,000 a year for five years to build and maintain a community hospital. If the vote is in
favor the council may appropriate the money from the fund to an incorporated community
hospital association in the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 20.

Minnesota Statutes 2016, section 447.045, subdivision 7, is amended to read:

Subd. 7.

Statutory city; any store.

If a statutory city operates a municipal liquor store,
it may provide for a vote at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on the first Tuesday after
the first Monday in November of either an even-numbered or odd-numbered year new text end on the
question of contributing from the statutory city liquor dispensary fund toward the acquisition,
construction, improvement, maintenance, and operation of a community hospital. If the
vote is in favor, the council may appropriate money from time to time out of the net profits
or proceeds of the municipal liquor store to an incorporated nonprofit hospital association
in the statutory city. The hospital association must be governed by a board of directors
elected by donors of $50 or more, who each have one vote. The hospital must be open to
all residents of the community on equal terms.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 21.

Minnesota Statutes 2016, section 452.11, is amended to read:

452.11 SUBMISSION TO VOTERS.

No city of the first class shall acquire or construct any public utility under the terms of
sections 452.08 to 452.13 unless the proposition to acquire or construct same has first been
submitted to the qualified electors of the city at a deleted text begin general deleted text end city election deleted text begin or at a special election
called for that purpose, deleted text end new text begin held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year new text end and new text begin has new text end been approved by a majority vote
of all electors voting upon the proposition.

The question of issuing public utility certificates as provided in section 452.09 may, at
the option of the council, be submitted at the same election as the question of the acquisition
or construction of the public utility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2016, section 455.24, is amended to read:

455.24 SUBMISSION TO VOTERS.

Before incurring any expense under the powers conferred by section 455.23, the approval
of the voters of the city shall first be had at deleted text begin a general or special deleted text end new text begin an new text end election held deleted text begin therein deleted text end new text begin on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end . If a majority of the voters of the city participating at the election shall
vote in favor of the construction of the system of poles, wires and cables herein authorized
to be made, the council shall proceed with the construction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 23.

Minnesota Statutes 2016, section 455.29, is amended to read:

455.29 MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE.

Except as otherwise restricted by chapter 216B, the governing body, or the commission
or board charged with the operation of the public utilities, if one exists therein, of any
municipality in the state owning and operating an electric light and power plant for the
purpose of the manufacture and sale of electrical power or for the purchase and redistribution
of electrical power, may, upon a two-thirds vote of the governing body, or the commission
or board, in addition to all other powers now possessed by such municipality, sell electricity
to customers, singly or collectively, outside of such municipality, within the state but not
to exceed a distance of 30 miles from the corporate limits of the municipality. Before any
municipality shall have the power to extend its lines and sell electricity outside of the
municipality as provided by sections 455.29 and 455.30, the governing body shall first
submit to the voters of the municipality, at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on the first
Tuesday after the first Monday in November of either an even-numbered or odd-numbered
year new text end , the general principle of going outside the municipality and fixing the maximum amount
of contemplated expenditures reasonably expected to be made for any and all extensions
then or thereafter contemplated. Three weeks' published notice shall be given of such election
as required by law, and if a majority of those voting upon the proposition favors the same,
then the municipality shall thereafter be considered as having chosen to enter the general
business of extending its electric light and power facilities beyond the corporate limits of
the municipality. It shall not be necessary to submit to a vote of the people the question of
any specific enlargement, extension, or improvement of any outside lines; provided the
voters of the municipality have generally elected to exercise the privileges afforded by
sections 455.29 and 455.30, and, provided, that each and any specific extension, enlargement,
or improvement project is within the limit of the maximum expenditure authorized at the
election. In cities operating under a home rule charter, where a vote of the people is not
now required in order to extend electric light and power lines, no election shall be required
under the provisions of any act. At any election held to determine the attitude of the voters
upon this principle, the question shall be simply stated upon the ballot provided therefor,
and shall be substantially in the following form: "Shall the city of ..................... undertake
the general proposition of extending its electric light and power lines beyond the limits of
the municipality, and limit the maximum expenditures for any and all future extensions to
the sum of $....................?" For this purpose every municipality is authorized and empowered
to extend the lines, wires, and fixtures of its plant to such customers and may issue certificates
of indebtedness therefor in an amount not to exceed the actual cost of the extensions and
for a term not to exceed the reasonable life of the extensions. These certificates of
indebtedness shall in no case be made a charge against the municipality, but shall be payable
and paid out of current revenues of the plant other than taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2016, section 459.06, subdivision 1, is amended to read:

Subdivision 1.

Accept donations.

Any county, city, or town may by resolution of its
governing body accept donations of land that the governing body deems to be better adapted
for the production of timber and wood than for any other purpose, for a forest, and may
manage it on forestry principles. The donor of not less than 100 acres of any such land shall
be entitled to have the land perpetually bear the donor's name. The governing body of any
city or town, when funds are available or have been levied therefor, may, when authorized
by a majority vote by ballot of the voters voting at any deleted text begin general or special deleted text end city election new text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end or new text begin the annual new text end town meeting where the question is properly submitted,
purchase or obtain by condemnation proceedings, and preferably at the sources of streams,
any tract of land for a forest which is better adapted for the production of timber and wood
than for any other purpose, and which is conveniently located for the purpose, and manage
it on forestry principles. The city or town may annually levy a tax on all taxable property
within its boundaries to procure and maintain such forests.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2016, section 469.053, subdivision 5, is amended to read:

Subd. 5.

Reverse referendum.

A city may increase its levy for port authority purposes
under subdivision 4 only as provided in this subdivision. Its city council must first pass a
resolution stating the proposed amount of levy increase. The city must then publish the
resolution together with a notice of public hearing on the resolution for two successive
weeks in its official newspaper or, if none exists, in a newspaper of general circulation in
the city. The hearing must be held two to four weeks after the first publication. After the
hearing, the city council may decide to take no action or may adopt a resolution authorizing
the proposed increase or a lesser increase. A resolution authorizing an increase must be
published in the city's official newspaper or, if none exists, in a newspaper of general
circulation in the city. The resolution is not effective if a petition requesting a referendum
on the resolution is filed with the city clerk within 30 days of publication of the resolution.
The petition must be signed by voters equaling five percent of the votes cast in the city in
the last general election. The resolution is effective if approved by a majority of those voting
on the question. The commissioner of revenue shall prepare a suggested form of referendum
question. The referendum must be held at deleted text begin a special or general deleted text end new text begin an new text end election deleted text begin before October 1
of the year for which the levy increase is proposed deleted text end new text begin conducted on the first Tuesday after the
first Monday in November of either an even-numbered or odd-numbered year. If approved
by the voters, the levy increase may take effect no sooner than the next calendar year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 26.

Minnesota Statutes 2016, section 469.107, subdivision 2, is amended to read:

Subd. 2.

Reverse referendum.

A city may increase its levy for economic development
authority purposes under subdivision 1 in the following way. Its city council must first pass
a resolution stating the proposed amount of levy increase. The city must then publish the
resolution together with a notice of public hearing on the resolution for two successive
weeks in its official newspaper or if none exists in a newspaper of general circulation in the
city. The hearing must be held two to four weeks after the first publication. After the hearing,
the city council may decide to take no action or may adopt a resolution authorizing the
proposed increase or a lesser increase. A resolution authorizing an increase must be published
in the city's official newspaper or if none exists in a newspaper of general circulation in the
city. The resolution is not effective if a petition requesting a referendum on the resolution
is filed with the city clerk within 30 days of publication of the resolution. The petition must
be signed by voters equaling five percent of the votes cast in the city in the last general
election. The deleted text begin election deleted text end new text begin referendum new text end must be held at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on
the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end . Notice of the election must be given in the manner required by law.
The notice must state the purpose and amount of the levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

Notwithstanding section 477A.016 or any other law, a
statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the electors at the annual town meeting, deleted text begin or at a special town meeting, deleted text end impose a tax
of up to three percent on the gross receipts from the furnishing for consideration of lodging
at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
of it for a continuous period of 30 days or more. A statutory or home rule charter city may
by ordinance impose the tax authorized under this subdivision on the camping site receipts
of a municipal campground.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2016, section 469.190, subdivision 5, is amended to read:

Subd. 5.

Reverse referendum.

If the county board passes a resolution under subdivision
4 to impose the tax, the resolution must be published for two successive weeks in a newspaper
of general circulation within the unorganized territory, together with a notice fixing a date
for a public hearing on the proposed tax.

The hearing must be held not less than two weeks nor more than four weeks after the
first publication of the notice. After the public hearing, the county board may determine to
take no further action, or may adopt a resolution authorizing the tax as originally proposed
or approving a lesser rate of tax. The resolution must be published in a newspaper of general
circulation within the unorganized territory. The voters of the unorganized territory may
request a referendum on the proposed tax by filing a petition with the county auditor within
30 days after the resolution is published. The petition must be signed by voters who reside
in the unorganized territory. The number of signatures must equal at least five percent of
the number of persons voting in the unorganized territory in the last general election. If such
a petition is timely filed, the resolution is not effective until it has been submitted to the
voters residing in the unorganized territory at deleted text begin a general or special deleted text end new text begin an new text end election new text begin held on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end and a majority of votes cast on the question of approving the resolution
are in the affirmative. The commissioner of revenue shall prepare a suggested form of
question to be presented at the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 29.

Minnesota Statutes 2016, section 471.57, subdivision 3, is amended to read:

Subd. 3.

May use fund for other purposes upon vote.

The council of any municipality
which has established a public works reserve fund by an ordinance designating the specific
improvement or type of capital improvement for which the fund may be used may submit
to the voters of the municipality at deleted text begin any regular or special deleted text end new text begin an new text end election new text begin held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered year new text end the
question of using the fund for some other purpose. If a majority of the votes cast on the
question are in favor of such diversion from the original purpose of the fund, it may be used
for any purpose so approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2016, section 471.571, subdivision 3, is amended to read:

Subd. 3.

Expenditure from fund, limitation.

No expenditure for any one project in
excess of 60 percent of one year's levy or $25,000, whichever is greater, may be made from
such permanent improvement or replacement fund in any year without first obtaining the
approval of a majority of the voters voting at a deleted text begin general or special deleted text end municipal election new text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end at which the question of making such expenditure has been submitted.
In submitting any proposal to the voters for approval, the amount proposed to be spent and
the purpose thereof shall be stated in the proposal submitted. The proceeds of such levies
may be pledged for the payment of any bonds issued pursuant to law for any purposes
authorized hereby and annual payments upon such bonds or interest may be made without
additional authorization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 31.

Minnesota Statutes 2016, section 471.572, subdivision 2, is amended to read:

Subd. 2.

Tax levy.

The governing body of a city may establish, by a two-thirds vote of
all its members, by ordinance or resolution a reserve fund and may annually levy a property
tax for the support of the fund. The proceeds of taxes levied for its support must be paid
into the reserve fund. Any other revenue from a source not required by law to be paid into
another fund for purposes other than those provided for the use of the reserve fund may be
paid into the fund. Before a tax is levied under this section, the city must publish in the
official newspaper of the city an initial resolution authorizing the tax levy. If within ten
days after the publication a petition is filed with the city clerk requesting an election on the
tax levy signed by a number of qualified voters greater than ten percent of the number who
voted in the city at the last general election, the tax may not be levied until the levy has
been approved by a majority of the votes cast on it at deleted text begin a regular or special deleted text end new text begin an new text end election new text begin held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 32.

Minnesota Statutes 2016, section 471.572, subdivision 4, is amended to read:

Subd. 4.

Use of fund for a specific purpose.

If the city has established a reserve fund,
it may submit to the voters at deleted text begin a regular or special deleted text end new text begin an new text end election new text begin held on the first Tuesday after
the first Monday in November of either an even-numbered or odd-numbered year new text end the question
of whether use of the fund should be restricted to a specific improvement or type of capital
improvement. If a majority of the votes cast on the question are in favor of the limitation
on the use of the reserve fund, it may be used only for the purpose approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 33.

Minnesota Statutes 2016, section 475.59, is amended to read:

475.59 MANNER OF SUBMISSION; NOTICE.

new text begin Subdivision 1. new text end

new text begin Generally; notice. new text end

When the governing body of a municipality resolves
to issue bonds for any purpose requiring the approval of the electors, it shall provide for
submission of the proposition of their issuance at a general or special election or town or
school district meeting. Notice of such election or meeting shall be given in the manner
required by law and shall state the maximum amount and the purpose of the proposed issue.
In any school district, the school board or board of education may, according to its judgment
and discretion, submit as a single ballot question or as two or more separate questions in
the notice of election and ballots the proposition of their issuance for any one or more of
the following, stated conjunctively or in the alternative: acquisition or enlargement of sites,
acquisition, betterment, erection, furnishing, equipping of one or more new schoolhouses,
remodeling, repairing, improving, adding to, betterment, furnishing, equipping of one or
more existing schoolhouses. In any city, town, or county, the governing body may, according
to its judgment and discretion, submit as a single ballot question or as two or more separate
questions in the notice of election and ballots the proposition of their issuance, stated
conjunctively or in the alternative, for the acquisition, construction, or improvement of any
facilities at one or more locations.

new text begin Subd. 2. new text end

new text begin Election date. new text end

new text begin An election to approve issuance of bonds under this section held
by a municipality other than a town must be held on the first Tuesday after the first Monday
in November of either an even-numbered or odd-numbered year. An election under this
section held by a town may be held on the same day as the annual town meeting or on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year.
new text end

new text begin Subd. 3. new text end

new text begin Special laws. new text end

new text begin If a referendum on the issuance of bonds or other debt obligations
authorized in a special law is required, it must be held on a date as provided in subdivision
2, notwithstanding any provision in the special law authorizing the referendum to be held
at any other time.
new text end

new text begin Subd. 4. new text end

new text begin Exception for disaster or emergency. new text end

new text begin Subdivisions 2 and 3, and any other
law requiring an election to approve issuance of bonds or other debt obligations to be held
on the first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year, do not apply to issuance of bonds or other debt obligations to finance
the municipality's response to an emergency or disaster. "Disaster" means a situation that
creates an actual or imminent serious threat to the health and safety of persons, or a situation
that has resulted or is likely to result in catastrophic loss to property or the environment.
"Emergency" means an unforeseen combination of circumstances that calls for immediate
action to prevent a disaster, identified in the referendum, from developing or occurring.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, and applies to any
referendum authorized on or after that date.
new text end

Sec. 34. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 205.10, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-2038

205.10 MUNICIPAL SPECIAL ELECTIONS.

Subd. 3.

Prohibition.

No special election authorized under subdivision 1 may be held within 56 days after the state general election.