HF 1402

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property taxation; exempting homestead, 
  1.3             agricultural, and seasonal recreational property from 
  1.4             the general education tax; reducing property tax class 
  1.5             rates; establishing a new homestead credit program; 
  1.6             modifying the computation of certain school district 
  1.7             levies; appropriating money; amending Minnesota 
  1.8             Statutes 2000, sections 126C.13, subdivisions 1 and 2; 
  1.9             126C.14; 126C.17, subdivision 6, and by adding a 
  1.10            subdivision; 273.13, subdivisions 22, 23, 24, 25, and 
  1.11            31; 273.1393; 275.065, subdivision 3; 275.08, 
  1.12            subdivision 1b; and 276.04, subdivision 2; proposing 
  1.13            coding for new law in Minnesota Statutes, chapters 
  1.14            127A; and 273; repealing Minnesota Statutes 2000, 
  1.15            sections 273.13, subdivision 24a; 273.1382; and 
  1.16            275.08, subdivision 1e. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2000, section 126C.13, 
  1.19  subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
  1.21  commissioner must establish the general education tax rate by 
  1.22  July 1 of each year for levies payable in the following year.  
  1.23  The general education tax capacity rate must be a rate, rounded 
  1.24  up to the nearest hundredth of a percent, that, when applied to 
  1.25  the adjusted net tax capacity general education tax base for all 
  1.26  districts, raises the amount specified in this subdivision.  The 
  1.27  general education tax rate must be the rate that raises 
  1.28  $1,330,000,000 $580,000,000 for fiscal year 2001 2003, and later 
  1.29  fiscal years. The general education tax rate may not be changed 
  1.30  due to changes or corrections made to a district's adjusted net 
  1.31  tax capacity general education tax base after the tax rate has 
  2.1   been established.  
  2.2      [EFFECTIVE DATE.] This section is effective for taxes 
  2.3   payable in 2002 and subsequent years. 
  2.4      Sec. 2.  Minnesota Statutes 2000, section 126C.13, 
  2.5   subdivision 2, is amended to read: 
  2.6      Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
  2.7   education revenue, excluding transition revenue and supplemental 
  2.8   revenue, a district may levy an amount not to exceed the general 
  2.9   education tax rate times the adjusted net tax capacity general 
  2.10  education tax base of the district for the preceding year.  If 
  2.11  the amount of the general education levy would exceed the 
  2.12  general education revenue, excluding transition revenue and 
  2.13  supplemental revenue, the general education levy must be 
  2.14  determined according to subdivision 3.  The general education 
  2.15  levy shall be levied only upon properties defined under section 
  2.16  127A.485.  
  2.17     [EFFECTIVE DATE.] This section is effective for taxes 
  2.18  payable in 2002 and subsequent years.  
  2.19     Sec. 3.  Minnesota Statutes 2000, section 126C.14, is 
  2.20  amended to read: 
  2.21     126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
  2.22     If a district's general education levy is determined 
  2.23  according to section 126C.13, subdivision 3, an amount must be 
  2.24  deducted from state aid authorized in this chapter and chapters 
  2.25  120B, 122A, 123A, 123B, 124D, 125A, and 127A, receivable for the 
  2.26  same school year, and from other state payments receivable for 
  2.27  the same school year authorized in chapter 273.  The aid in 
  2.28  section 124D.111 must not be reduced. 
  2.29     The amount of the deduction equals the difference between: 
  2.30     (1) the general education tax rate, according to section 
  2.31  126C.13, times the district's adjusted net tax capacity general 
  2.32  education tax base used to determine the general education aid 
  2.33  for the same school year; and 
  2.34     (2) the district's general education revenue, excluding 
  2.35  transition revenue and supplemental revenue, for the same school 
  2.36  year, according to section 126C.10. 
  3.1      [EFFECTIVE DATE.] This section is effective for taxes 
  3.2   payable in 2002 and subsequent years.  
  3.3      Sec. 4.  Minnesota Statutes 2000, section 126C.17, 
  3.4   subdivision 6, is amended to read: 
  3.5      Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
  3.6   referendum equalization levy for a referendum levied against the 
  3.7   referendum market value of all taxable property as defined in 
  3.8   section 126C.01, subdivision 3, equals the district's referendum 
  3.9   equalization revenue times the lesser of one or the ratio of the 
  3.10  district's referendum market value per resident marginal cost 
  3.11  pupil unit to $476,000. 
  3.12     (b) A district's referendum equalization levy for a 
  3.13  referendum levied against the net tax capacity of all taxable 
  3.14  property equals the district's referendum equalization revenue 
  3.15  times the lesser of one or the ratio of the district's adjusted 
  3.16  net tax capacity per resident marginal cost pupil unit to $8,404.
  3.17     (c) A district's referendum equalization levy for a 
  3.18  referendum levied against the net tax capacity of class 1 and 
  3.19  class 2 property equals the district's referendum equalization 
  3.20  revenue times the lesser of one or the ratio of the district's 
  3.21  adjusted net tax capacity of class 1 and class 2 property per 
  3.22  resident marginal cost pupil unit to $4,902. 
  3.23     [EFFECTIVE DATE.] This section is effective for taxes 
  3.24  payable in 2002 and subsequent years. 
  3.25     Sec. 5.  Minnesota Statutes 2000, section 126C.17, is 
  3.26  amended by adding a subdivision to read: 
  3.27     Subd. 10a.  [SCHOOL REFERENDUM LEVY; HOMESTEAD AND 
  3.28  AGRICULTURAL VALUE.] Notwithstanding the provisions of 
  3.29  subdivisions 9 and 10, a school referendum levy approved after 
  3.30  September 1, 2001, that is not a continuation of an expiring 
  3.31  levy, must be levied against the net tax capacity of class 1 and 
  3.32  class 2 property only, as defined under section 273.13.  In the 
  3.33  case of a referendum levy enacted to replace an expiring levy 
  3.34  which increases the levy over the level of the expiring levy, 
  3.35  the amount in excess of the expiring levy is subject to the 
  3.36  requirements of this subdivision.  Any referendum levy subject 
  4.1   to the requirements of this subdivision must be certified 
  4.2   separately to the county auditor under section 275.07. 
  4.3      All other provisions of subdivisions 9 and 10 that do not 
  4.4   conflict with this subdivision apply to referendum levies under 
  4.5   this subdivision. 
  4.6      [EFFECTIVE DATE.] This section is effective for taxes 
  4.7   payable in 2002 and subsequent years. 
  4.8      Sec. 6.  [127A.485] [ADJUSTED GENERAL EDUCATION TAX BASE.] 
  4.9      Subdivision 1.  [GENERAL EDUCATION TAX BASE.] "General 
  4.10  education tax base" means the net tax capacity of the taxable 
  4.11  property of the district for all class 3, 4, and 5 property 
  4.12  defined under section 273.13, except class 4c noncommercial 
  4.13  seasonal residential recreational property. 
  4.14     Subd. 2.  [ADJUSTED GENERAL EDUCATION TAX BASE.] A school 
  4.15  district's adjusted general education tax base equals its 
  4.16  general education tax base computed under subdivision 1 divided 
  4.17  by its sales ratio for those classes of property computed under 
  4.18  section 127A.48.  
  4.19     [EFFECTIVE DATE.] This section is effective for taxes 
  4.20  payable in 2002 and subsequent years.  
  4.21     Sec. 7.  Minnesota Statutes 2000, section 273.13, 
  4.22  subdivision 22, is amended to read: 
  4.23     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  4.24  23, real estate which is residential and used for homestead 
  4.25  purposes is class 1.  The market value of class 1a property must 
  4.26  be determined based upon the value of the house, garage, and 
  4.27  land.  
  4.28     The first $76,000 tier of market value of class 1a property 
  4.29  has a net class rate of one percent of its market value; and the 
  4.30  remaining market value of class 1a property that exceeds $76,000 
  4.31  has a class rate of 1.65 1.5 percent of its market value.  For 
  4.32  purposes of this subdivision, the first tier means the first 
  4.33  $76,000 of market value. 
  4.34     (b) Class 1b property includes homestead real estate or 
  4.35  homestead manufactured homes used for the purposes of a 
  4.36  homestead by 
  5.1      (1) any blind person, or the blind person and the blind 
  5.2   person's spouse; or 
  5.3      (2) any person, hereinafter referred to as "veteran," who: 
  5.4      (i) served in the active military or naval service of the 
  5.5   United States; and 
  5.6      (ii) is entitled to compensation under the laws and 
  5.7   regulations of the United States for permanent and total 
  5.8   service-connected disability due to the loss, or loss of use, by 
  5.9   reason of amputation, ankylosis, progressive muscular 
  5.10  dystrophies, or paralysis, of both lower extremities, such as to 
  5.11  preclude motion without the aid of braces, crutches, canes, or a 
  5.12  wheelchair; and 
  5.13     (iii) has acquired a special housing unit with special 
  5.14  fixtures or movable facilities made necessary by the nature of 
  5.15  the veteran's disability, or the surviving spouse of the 
  5.16  deceased veteran for as long as the surviving spouse retains the 
  5.17  special housing unit as a homestead; or 
  5.18     (3) any person who: 
  5.19     (i) is permanently and totally disabled and 
  5.20     (ii) receives 90 percent or more of total household income, 
  5.21  as defined in section 290A.03, subdivision 5, from 
  5.22     (A) aid from any state as a result of that disability; or 
  5.23     (B) supplemental security income for the disabled; or 
  5.24     (C) workers' compensation based on a finding of total and 
  5.25  permanent disability; or 
  5.26     (D) social security disability, including the amount of a 
  5.27  disability insurance benefit which is converted to an old age 
  5.28  insurance benefit and any subsequent cost of living increases; 
  5.29  or 
  5.30     (E) aid under the federal Railroad Retirement Act of 1937, 
  5.31  United States Code Annotated, title 45, section 228b(a)5; or 
  5.32     (F) a pension from any local government retirement fund 
  5.33  located in the state of Minnesota as a result of that 
  5.34  disability; or 
  5.35     (G) pension, annuity, or other income paid as a result of 
  5.36  that disability from a private pension or disability plan, 
  6.1   including employer, employee, union, and insurance plans and 
  6.2      (iii) has household income as defined in section 290A.03, 
  6.3   subdivision 5, of $50,000 or less; or 
  6.4      (4) any person who is permanently and totally disabled and 
  6.5   whose household income as defined in section 290A.03, 
  6.6   subdivision 5, is 275 percent or less of the federal poverty 
  6.7   level. 
  6.8      Property is classified and assessed under clause (4) only 
  6.9   if the government agency or income-providing source certifies, 
  6.10  upon the request of the homestead occupant, that the homestead 
  6.11  occupant satisfies the disability requirements of this paragraph.
  6.12     Property is classified and assessed pursuant to clause (1) 
  6.13  only if the commissioner of economic security certifies to the 
  6.14  assessor that the homestead occupant satisfies the requirements 
  6.15  of this paragraph.  
  6.16     Permanently and totally disabled for the purpose of this 
  6.17  subdivision means a condition which is permanent in nature and 
  6.18  totally incapacitates the person from working at an occupation 
  6.19  which brings the person an income.  The first $32,000 market 
  6.20  value of class 1b property has a net class rate of .45 percent 
  6.21  of its market value.  The remaining market value of class 1b 
  6.22  property has a net class rate using the rates for class 1 or 
  6.23  class 2a property, whichever is appropriate, of similar market 
  6.24  value.  
  6.25     (c) Class 1c property is commercial use real property that 
  6.26  abuts a lakeshore line and is devoted to temporary and seasonal 
  6.27  residential occupancy for recreational purposes but not devoted 
  6.28  to commercial purposes for more than 250 days in the year 
  6.29  preceding the year of assessment, and that includes a portion 
  6.30  used as a homestead by the owner, which includes a dwelling 
  6.31  occupied as a homestead by a shareholder of a corporation that 
  6.32  owns the resort or a partner in a partnership that owns the 
  6.33  resort, even if the title to the homestead is held by the 
  6.34  corporation or partnership.  For purposes of this clause, 
  6.35  property is devoted to a commercial purpose on a specific day if 
  6.36  any portion of the property, excluding the portion used 
  7.1   exclusively as a homestead, is used for residential occupancy 
  7.2   and a fee is charged for residential occupancy.  Class 1c 
  7.3   property has a class rate of one percent of total market value 
  7.4   with the following limitation:  the area of the property must 
  7.5   not exceed 100 feet of lakeshore footage for each cabin or 
  7.6   campsite located on the property up to a total of 800 feet and 
  7.7   500 feet in depth, measured away from the lakeshore.  If any 
  7.8   portion of the class 1c resort property is classified as class 
  7.9   4c under subdivision 25, the entire property must meet the 
  7.10  requirements of subdivision 25, paragraph (d), clause (1), to 
  7.11  qualify for class 1c treatment under this paragraph. 
  7.12     (d) Class 1d property includes structures that meet all of 
  7.13  the following criteria: 
  7.14     (1) the structure is located on property that is classified 
  7.15  as agricultural property under section 273.13, subdivision 23; 
  7.16     (2) the structure is occupied exclusively by seasonal farm 
  7.17  workers during the time when they work on that farm, and the 
  7.18  occupants are not charged rent for the privilege of occupying 
  7.19  the property, provided that use of the structure for storage of 
  7.20  farm equipment and produce does not disqualify the property from 
  7.21  classification under this paragraph; 
  7.22     (3) the structure meets all applicable health and safety 
  7.23  requirements for the appropriate season; and 
  7.24     (4) the structure is not salable as residential property 
  7.25  because it does not comply with local ordinances relating to 
  7.26  location in relation to streets or roads. 
  7.27     The market value of class 1d property has the same class 
  7.28  rates as class 1a property under paragraph (a). 
  7.29     [EFFECTIVE DATE.] This section is effective for taxes 
  7.30  payable in 2002 and subsequent years. 
  7.31     Sec. 8.  Minnesota Statutes 2000, section 273.13, 
  7.32  subdivision 23, is amended to read: 
  7.33     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  7.34  land including any improvements that is homesteaded.  The market 
  7.35  value of the house and garage and immediately surrounding one 
  7.36  acre of land has the same class rates as class 1a property under 
  8.1   subdivision 22.  The value of the remaining land including 
  8.2   improvements up to $115,000 has a net class rate of 0.35 percent 
  8.3   of market value.  The value of class 2a property over $115,000 
  8.4   of market value up to and including $600,000 market value has a 
  8.5   net class rate of 0.8 0.75 percent of market value.  The 
  8.6   remaining property over $600,000 market value has a class rate 
  8.7   of 1.20 one percent of market value. 
  8.8      (b) Class 2b property is (1) real estate, rural in 
  8.9   character and used exclusively for growing trees for timber, 
  8.10  lumber, and wood and wood products; (2) real estate that is not 
  8.11  improved with a structure and is used exclusively for growing 
  8.12  trees for timber, lumber, and wood and wood products, if the 
  8.13  owner has participated or is participating in a cost-sharing 
  8.14  program for afforestation, reforestation, or timber stand 
  8.15  improvement on that particular property, administered or 
  8.16  coordinated by the commissioner of natural resources; (3) real 
  8.17  estate that is nonhomestead agricultural land; or (4) a landing 
  8.18  area or public access area of a privately owned public use 
  8.19  airport.  Class 2b property has a net class rate of 1.20 one 
  8.20  percent of market value. 
  8.21     (c) Agricultural land as used in this section means 
  8.22  contiguous acreage of ten acres or more, used during the 
  8.23  preceding year for agricultural purposes.  "Agricultural 
  8.24  purposes" as used in this section means the raising or 
  8.25  cultivation of agricultural products or enrollment in the 
  8.26  Reinvest in Minnesota program under sections 103F.501 to 
  8.27  103F.535 or the federal Conservation Reserve Program as 
  8.28  contained in Public Law Number 99-198.  Contiguous acreage on 
  8.29  the same parcel, or contiguous acreage on an immediately 
  8.30  adjacent parcel under the same ownership, may also qualify as 
  8.31  agricultural land, but only if it is pasture, timber, waste, 
  8.32  unusable wild land, or land included in state or federal farm 
  8.33  programs.  Agricultural classification for property shall be 
  8.34  determined excluding the house, garage, and immediately 
  8.35  surrounding one acre of land, and shall not be based upon the 
  8.36  market value of any residential structures on the parcel or 
  9.1   contiguous parcels under the same ownership. 
  9.2      (d) Real estate, excluding the house, garage, and 
  9.3   immediately surrounding one acre of land, of less than ten acres 
  9.4   which is exclusively and intensively used for raising or 
  9.5   cultivating agricultural products, shall be considered as 
  9.6   agricultural land.  
  9.7      Land shall be classified as agricultural even if all or a 
  9.8   portion of the agricultural use of that property is the leasing 
  9.9   to, or use by another person for agricultural purposes. 
  9.10     Classification under this subdivision is not determinative 
  9.11  for qualifying under section 273.111. 
  9.12     The property classification under this section supersedes, 
  9.13  for property tax purposes only, any locally administered 
  9.14  agricultural policies or land use restrictions that define 
  9.15  minimum or maximum farm acreage. 
  9.16     (e) The term "agricultural products" as used in this 
  9.17  subdivision includes production for sale of:  
  9.18     (1) livestock, dairy animals, dairy products, poultry and 
  9.19  poultry products, fur-bearing animals, horticultural and nursery 
  9.20  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  9.21  vegetables, forage, grains, bees, and apiary products by the 
  9.22  owner; 
  9.23     (2) fish bred for sale and consumption if the fish breeding 
  9.24  occurs on land zoned for agricultural use; 
  9.25     (3) the commercial boarding of horses if the boarding is 
  9.26  done in conjunction with raising or cultivating agricultural 
  9.27  products as defined in clause (1); 
  9.28     (4) property which is owned and operated by nonprofit 
  9.29  organizations used for equestrian activities, excluding racing; 
  9.30     (5) game birds and waterfowl bred and raised for use on a 
  9.31  shooting preserve licensed under section 97A.115; 
  9.32     (6) insects primarily bred to be used as food for animals; 
  9.33  and 
  9.34     (7) trees, grown for sale as a crop, and not sold for 
  9.35  timber, lumber, wood, or wood products. 
  9.36     (f) If a parcel used for agricultural purposes is also used 
 10.1   for commercial or industrial purposes, including but not limited 
 10.2   to:  
 10.3      (1) wholesale and retail sales; 
 10.4      (2) processing of raw agricultural products or other goods; 
 10.5      (3) warehousing or storage of processed goods; and 
 10.6      (4) office facilities for the support of the activities 
 10.7   enumerated in clauses (1), (2), and (3), 
 10.8   the assessor shall classify the part of the parcel used for 
 10.9   agricultural purposes as class 1b, 2a, or 2b, whichever is 
 10.10  appropriate, and the remainder in the class appropriate to its 
 10.11  use.  The grading, sorting, and packaging of raw agricultural 
 10.12  products for first sale is considered an agricultural purpose.  
 10.13  A greenhouse or other building where horticultural or nursery 
 10.14  products are grown that is also used for the conduct of retail 
 10.15  sales must be classified as agricultural if it is primarily used 
 10.16  for the growing of horticultural or nursery products from seed, 
 10.17  cuttings, or roots and occasionally as a showroom for the retail 
 10.18  sale of those products.  Use of a greenhouse or building only 
 10.19  for the display of already grown horticultural or nursery 
 10.20  products does not qualify as an agricultural purpose.  
 10.21     The assessor shall determine and list separately on the 
 10.22  records the market value of the homestead dwelling and the one 
 10.23  acre of land on which that dwelling is located.  If any farm 
 10.24  buildings or structures are located on this homesteaded acre of 
 10.25  land, their market value shall not be included in this separate 
 10.26  determination.  
 10.27     (g) To qualify for classification under paragraph (b), 
 10.28  clause (4), a privately owned public use airport must be 
 10.29  licensed as a public airport under section 360.018.  For 
 10.30  purposes of paragraph (b), clause (4), "landing area" means that 
 10.31  part of a privately owned public use airport properly cleared, 
 10.32  regularly maintained, and made available to the public for use 
 10.33  by aircraft and includes runways, taxiways, aprons, and sites 
 10.34  upon which are situated landing or navigational aids.  A landing 
 10.35  area also includes land underlying both the primary surface and 
 10.36  the approach surfaces that comply with all of the following:  
 11.1      (i) the land is properly cleared and regularly maintained 
 11.2   for the primary purposes of the landing, taking off, and taxiing 
 11.3   of aircraft; but that portion of the land that contains 
 11.4   facilities for servicing, repair, or maintenance of aircraft is 
 11.5   not included as a landing area; 
 11.6      (ii) the land is part of the airport property; and 
 11.7      (iii) the land is not used for commercial or residential 
 11.8   purposes. 
 11.9   The land contained in a landing area under paragraph (b), clause 
 11.10  (4), must be described and certified by the commissioner of 
 11.11  transportation.  The certification is effective until it is 
 11.12  modified, or until the airport or landing area no longer meets 
 11.13  the requirements of paragraph (b), clause (4).  For purposes of 
 11.14  paragraph (b), clause (4), "public access area" means property 
 11.15  used as an aircraft parking ramp, apron, or storage hangar, or 
 11.16  an arrival and departure building in connection with the airport.
 11.17     [EFFECTIVE DATE.] This section is effective for taxes 
 11.18  payable in 2002 and subsequent years. 
 11.19     Sec. 9.  Minnesota Statutes 2000, section 273.13, 
 11.20  subdivision 24, is amended to read: 
 11.21     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
 11.22  property and utility real and personal property is class 3a.  
 11.23     (1) Except as otherwise provided, each parcel of 
 11.24  commercial, industrial, or utility real property has a class 
 11.25  rate of 2.4 two percent of the first tier of market value, and 
 11.26  3.4 three percent of the remaining market value.  In the case of 
 11.27  contiguous parcels of property owned by the same person or 
 11.28  entity, only the value equal to the first-tier value of the 
 11.29  contiguous parcels qualifies for the reduced class rate, except 
 11.30  that contiguous parcels owned by the same person or entity shall 
 11.31  be eligible for the first-tier value class rate on each separate 
 11.32  business operated by the owner of the property, provided the 
 11.33  business is housed in a separate structure.  For the purposes of 
 11.34  this subdivision, the first tier means the first $150,000 of 
 11.35  market value.  Real property owned in fee by a utility for 
 11.36  transmission line right-of-way shall be classified at the class 
 12.1   rate for the higher tier.  
 12.2      For purposes of this subdivision, parcels are considered to 
 12.3   be contiguous even if they are separated from each other by a 
 12.4   road, street, waterway, or other similar intervening type of 
 12.5   property.  Connections between parcels that consist of power 
 12.6   lines or pipelines do not cause the parcels to be contiguous.  
 12.7   Property owners who have contiguous parcels of property that 
 12.8   constitute separate businesses that may qualify for the 
 12.9   first-tier class rate shall notify the assessor by July 1, for 
 12.10  treatment beginning in the following taxes payable year.  
 12.11     (2) Personal property that is:  (i) part of an electric 
 12.12  generation, transmission, or distribution system; or (ii) part 
 12.13  of a pipeline system transporting or distributing water, gas, 
 12.14  crude oil, or petroleum products; and (iii) not described in 
 12.15  clause (3), has a class rate as provided under clause (1) for 
 12.16  the first tier of market value and the remaining market value.  
 12.17  In the case of multiple parcels in one county that are owned by 
 12.18  one person or entity, only one first tier amount is eligible for 
 12.19  the reduced rate.  
 12.20     (3) The entire market value of personal property that is:  
 12.21  (i) tools, implements, and machinery of an electric generation, 
 12.22  transmission, or distribution system; (ii) tools, implements, 
 12.23  and machinery of a pipeline system transporting or distributing 
 12.24  water, gas, crude oil, or petroleum products; or (iii) the mains 
 12.25  and pipes used in the distribution of steam or hot or chilled 
 12.26  water for heating or cooling buildings, has a class rate as 
 12.27  provided under clause (1) for the remaining market value in 
 12.28  excess of the first tier. 
 12.29     (b) Employment property defined in section 469.166, during 
 12.30  the period provided in section 469.170, shall constitute class 
 12.31  3b.  The class rates for class 3b property are determined under 
 12.32  paragraph (a). 
 12.33     (c)(1) Subject to the limitations of clause (2), structures 
 12.34  which are (i) located on property classified as class 3a, (ii) 
 12.35  constructed under an initial building permit issued after 
 12.36  January 2, 1996, (iii) located in a transit zone as defined 
 13.1   under section 473.3915, subdivision 3, (iv) located within the 
 13.2   boundaries of a school district, and (v) not primarily used for 
 13.3   retail or transient lodging purposes, shall have a class rate 
 13.4   equal to the lesser of 2.975 percent or the class rate of the 
 13.5   second tier of the commercial property rate under paragraph (a) 
 13.6   on any portion of the market value that does not qualify for the 
 13.7   first tier class rate under paragraph (a).  As used in item (v), 
 13.8   a structure is primarily used for retail or transient lodging 
 13.9   purposes if over 50 percent of its square footage is used for 
 13.10  those purposes.  A class rate equal to the lesser of 2.975 
 13.11  percent or the class rate of the second tier of the commercial 
 13.12  property class rate under paragraph (a) shall also apply to 
 13.13  improvements to existing structures that meet the requirements 
 13.14  of items (i) to (v) if the improvements are constructed under an 
 13.15  initial building permit issued after January 2, 1996, even if 
 13.16  the remainder of the structure was constructed prior to January 
 13.17  2, 1996.  For the purposes of this paragraph, a structure shall 
 13.18  be considered to be located in a transit zone if any portion of 
 13.19  the structure lies within the zone.  If any property once 
 13.20  eligible for treatment under this paragraph ceases to remain 
 13.21  eligible due to revisions in transit zone boundaries, the 
 13.22  property shall continue to receive treatment under this 
 13.23  paragraph for a period of three years. 
 13.24     (2) This clause applies to any structure qualifying for the 
 13.25  transit zone reduced class rate under clause (1) on January 2, 
 13.26  1999, or any structure meeting any of the qualification criteria 
 13.27  in item (i) and otherwise qualifying for the transit zone 
 13.28  reduced class rate under clause (1).  Such a structure continues 
 13.29  to receive the transit zone reduced class rate until the 
 13.30  occurrence of one of the events in item (ii).  Property 
 13.31  qualifying under item (i)(D), that is located outside of a city 
 13.32  of the first class, qualifies for the transit zone reduced class 
 13.33  rate as provided in that item.  Property qualifying under item 
 13.34  (i)(E) qualifies for the transit zone reduced class rate as 
 13.35  provided in that item. 
 13.36     (i) A structure qualifies for the rate in this clause if it 
 14.1   is: 
 14.2      (A) property for which a building permit was issued before 
 14.3   December 31, 1998; or 
 14.4      (B) property for which a building permit was issued before 
 14.5   June 30, 2001, if: 
 14.6      (I) at least 50 percent of the land on which the structure 
 14.7   is to be built has been acquired or is the subject of signed 
 14.8   purchase agreements or signed options as of March 15, 1998, by 
 14.9   the entity that proposes construction of the project or an 
 14.10  affiliate of the entity; 
 14.11     (II) signed agreements have been entered into with one 
 14.12  entity or with affiliated entities to lease for the account of 
 14.13  the entity or affiliated entities at least 50 percent of the 
 14.14  square footage of the structure or the owner of the structure 
 14.15  will occupy at least 50 percent of the square footage of the 
 14.16  structure; and 
 14.17     (III) one of the following requirements is met: 
 14.18     the project proposer has submitted the completed data 
 14.19  portions of an environmental assessment worksheet by December 
 14.20  31, 1998; or 
 14.21     a notice of determination of adequacy of an environmental 
 14.22  impact statement has been published by April 1, 1999; or 
 14.23     an alternative urban areawide review has been completed by 
 14.24  April 1, 1999; or 
 14.25     (C) property for which a building permit is issued before 
 14.26  July 30, 1999, if: 
 14.27     (I) at least 50 percent of the land on which the structure 
 14.28  is to be built has been acquired or is the subject of signed 
 14.29  purchase agreements as of March 31, 1998, by the entity that 
 14.30  proposes construction of the project or an affiliate of the 
 14.31  entity; 
 14.32     (II) a signed agreement has been entered into between the 
 14.33  building developer and a tenant to lease for its own account at 
 14.34  least 200,000 square feet of space in the building; 
 14.35     (III) a signed letter of intent is entered into by July 1, 
 14.36  1998, between the building developer and the tenant to lease the 
 15.1   space for its own account; and 
 15.2      (IV) the environmental review process required by state law 
 15.3   was commenced by December 31, 1998; 
 15.4      (D) property for which an irrevocable letter of credit with 
 15.5   a housing and redevelopment authority was signed before December 
 15.6   31, 1998.  The structure shall receive the transit zone reduced 
 15.7   class rate during construction and for the duration of time that 
 15.8   the original tenants remain in the building.  Any unoccupied net 
 15.9   leasable square footage that is not leased within 36 months 
 15.10  after the certificate of occupancy has been issued for the 
 15.11  building shall not be eligible to receive the reduced class 
 15.12  rate.  This reduced class rate applies only if a qualifying 
 15.13  entity continues to own the property; 
 15.14     (E) property, located in a city of the first class, and for 
 15.15  which the building permits for the excavation, the parking ramp, 
 15.16  and the office tower were issued prior to April 1, 1999, shall 
 15.17  receive the reduced class rate during construction and for the 
 15.18  first five assessment years immediately following its initial 
 15.19  occupancy provided that, when completed, at least 25 percent of 
 15.20  the net leasable square footage must be occupied by a qualifying 
 15.21  entity each year during this time period.  In order to receive 
 15.22  the reduced class rate on the structure in any subsequent 
 15.23  assessment years, at least 50 percent of the rentable square 
 15.24  footage must be occupied by a qualifying entity.  This reduced 
 15.25  class rate applies only if a qualifying entity continues to own 
 15.26  the property. 
 15.27     (ii) A structure specified by this clause, other than a 
 15.28  structure qualifying under clause (i)(D) or (E), shall continue 
 15.29  to receive the transit zone reduced class rate until the 
 15.30  occurrence of one of the following events: 
 15.31     (A) if the structure upon initial occupancy will be owner 
 15.32  occupied by the entity initially constructing the structure or 
 15.33  an affiliated entity, the structure receives the reduced class 
 15.34  rate until the structure ceases to be at least 50 percent 
 15.35  occupied by the entity or an affiliated entity, provided, if the 
 15.36  portion of the structure occupied by that entity or an affiliate 
 16.1   of the entity is less than 85 percent, the transit zone class 
 16.2   rate reduction for the portion of structure not so occupied 
 16.3   terminates upon the leasing of such space to any nonaffiliated 
 16.4   entity; or 
 16.5      (B) if the structure is leased by a single entity or 
 16.6   affiliated entity at the time of initial occupancy, the 
 16.7   structure shall receive the reduced class rate until the 
 16.8   structure ceases to be at least 50 percent occupied by the 
 16.9   entity or an affiliated entity, provided, if the portion of the 
 16.10  structure occupied by that entity or an affiliate of the entity 
 16.11  is less than 85 percent, the transit zone class rate reduction 
 16.12  for the portion of structure not so occupied shall terminate 
 16.13  upon the leasing of such space to any nonaffiliated entity; or 
 16.14     (C) if the structure meets the criteria in item (i)(C), the 
 16.15  structure shall receive the reduced class rate until the 
 16.16  expiration of the initial lease term of the applicable tenants. 
 16.17     Percentages occupied or leased shall be determined based 
 16.18  upon net leasable square footage in the structure.  The assessor 
 16.19  shall allocate the value of the structure in the same fashion as 
 16.20  provided in the general law for portions of any structure 
 16.21  receiving and not receiving the transit tax class reduction as a 
 16.22  result of this clause. 
 16.23     (3) For purposes of paragraph (c), "qualifying entity" 
 16.24  means the entity owning the property on September 1, 2000, or an 
 16.25  affiliate of an entity that owned the property on September 1, 
 16.26  2000. 
 16.27     [EFFECTIVE DATE.] This section is effective for taxes 
 16.28  payable in 2002 and subsequent years. 
 16.29     Sec. 10.  Minnesota Statutes 2000, section 273.13, 
 16.30  subdivision 25, is amended to read: 
 16.31     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 16.32  estate containing four or more units and used or held for use by 
 16.33  the owner or by the tenants or lessees of the owner as a 
 16.34  residence for rental periods of 30 days or more.  Class 4a also 
 16.35  includes hospitals licensed under sections 144.50 to 144.56, 
 16.36  other than hospitals exempt under section 272.02, and contiguous 
 17.1   property used for hospital purposes, without regard to whether 
 17.2   the property has been platted or subdivided.  Class 4a property 
 17.3   in a city with a population of 5,000 or less, that is (1) 
 17.4   located outside of the metropolitan area, as defined in section 
 17.5   473.121, subdivision 2, or outside any county contiguous to the 
 17.6   metropolitan area, and (2) whose city boundary is at least 15 
 17.7   miles from the boundary of any city with a population greater 
 17.8   than 5,000 has a class rate of 2.15 percent of market value.  
 17.9   All other class 4a property has a class rate of 2.4 two percent 
 17.10  of market value.  For purposes of this paragraph, population has 
 17.11  the same meaning given in section 477A.011, subdivision 3. 
 17.12     (b) Class 4b includes: 
 17.13     (1) residential real estate containing less than four units 
 17.14  that does not qualify as class 4bb, other than seasonal 
 17.15  residential, and recreational; 
 17.16     (2) manufactured homes not classified under any other 
 17.17  provision; 
 17.18     (3) a dwelling, garage, and surrounding one acre of 
 17.19  property on a nonhomestead farm classified under subdivision 23, 
 17.20  paragraph (b) containing two or three units; 
 17.21     (4) unimproved property that is classified residential as 
 17.22  determined under subdivision 33.  
 17.23     Class 4b property has a class rate of 1.65 1.5 percent of 
 17.24  market value.  
 17.25     (c) Class 4bb includes: 
 17.26     (1) nonhomestead residential real estate containing one 
 17.27  unit, other than seasonal residential, and recreational; and 
 17.28     (2) a single family dwelling, garage, and surrounding one 
 17.29  acre of property on a nonhomestead farm classified under 
 17.30  subdivision 23, paragraph (b). 
 17.31     Class 4bb has a class rate of 1.2 one percent on the first 
 17.32  $76,000 of market value and a class rate of 1.65 1.5 percent of 
 17.33  its market value that exceeds $76,000. 
 17.34     Property that has been classified as seasonal recreational 
 17.35  residential property at any time during which it has been owned 
 17.36  by the current owner or spouse of the current owner does not 
 18.1   qualify for class 4bb. 
 18.2      (d) Class 4c property includes: 
 18.3      (1) except as provided in subdivision 22, paragraph (c), 
 18.4   real property devoted to temporary and seasonal residential 
 18.5   occupancy for recreation purposes, including real property 
 18.6   devoted to temporary and seasonal residential occupancy for 
 18.7   recreation purposes and not devoted to commercial purposes for 
 18.8   more than 250 days in the year preceding the year of 
 18.9   assessment.  For purposes of this clause, property is devoted to 
 18.10  a commercial purpose on a specific day if any portion of the 
 18.11  property is used for residential occupancy, and a fee is charged 
 18.12  for residential occupancy.  In order for a property to be 
 18.13  classified as class 4c, seasonal recreational residential for 
 18.14  commercial purposes, at least 40 percent of the annual gross 
 18.15  lodging receipts related to the property must be from business 
 18.16  conducted during 90 consecutive days and either (i) at least 60 
 18.17  percent of all paid bookings by lodging guests during the year 
 18.18  must be for periods of at least two consecutive nights; or (ii) 
 18.19  at least 20 percent of the annual gross receipts must be from 
 18.20  charges for rental of fish houses, boats and motors, 
 18.21  snowmobiles, downhill or cross-country ski equipment, or charges 
 18.22  for marina services, launch services, and guide services, or the 
 18.23  sale of bait and fishing tackle.  For purposes of this 
 18.24  determination, a paid booking of five or more nights shall be 
 18.25  counted as two bookings.  Class 4c also includes commercial use 
 18.26  real property used exclusively for recreational purposes in 
 18.27  conjunction with class 4c property devoted to temporary and 
 18.28  seasonal residential occupancy for recreational purposes, up to 
 18.29  a total of two acres, provided the property is not devoted to 
 18.30  commercial recreational use for more than 250 days in the year 
 18.31  preceding the year of assessment and is located within two miles 
 18.32  of the class 4c property with which it is used.  Class 4c 
 18.33  property classified in this clause also includes the remainder 
 18.34  of class 1c resorts provided that the entire property including 
 18.35  that portion of the property classified as class 1c also meets 
 18.36  the requirements for class 4c under this clause; otherwise the 
 19.1   entire property is classified as class 3.  Owners of real 
 19.2   property devoted to temporary and seasonal residential occupancy 
 19.3   for recreation purposes and all or a portion of which was 
 19.4   devoted to commercial purposes for not more than 250 days in the 
 19.5   year preceding the year of assessment desiring classification as 
 19.6   class 1c or 4c, must submit a declaration to the assessor 
 19.7   designating the cabins or units occupied for 250 days or less in 
 19.8   the year preceding the year of assessment by January 15 of the 
 19.9   assessment year.  Those cabins or units and a proportionate 
 19.10  share of the land on which they are located will be designated 
 19.11  class 1c or 4c as otherwise provided.  The remainder of the 
 19.12  cabins or units and a proportionate share of the land on which 
 19.13  they are located will be designated as class 3a.  The owner of 
 19.14  property desiring designation as class 1c or 4c property must 
 19.15  provide guest registers or other records demonstrating that the 
 19.16  units for which class 1c or 4c designation is sought were not 
 19.17  occupied for more than 250 days in the year preceding the 
 19.18  assessment if so requested.  The portion of a property operated 
 19.19  as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
 19.20  nonresidential facility operated on a commercial basis not 
 19.21  directly related to temporary and seasonal residential occupancy 
 19.22  for recreation purposes shall not qualify for class 1c or 4c; 
 19.23     (2) qualified property used as a golf course if: 
 19.24     (i) it is open to the public on a daily fee basis.  It may 
 19.25  charge membership fees or dues, but a membership fee may not be 
 19.26  required in order to use the property for golfing, and its green 
 19.27  fees for golfing must be comparable to green fees typically 
 19.28  charged by municipal courses; and 
 19.29     (ii) it meets the requirements of section 273.112, 
 19.30  subdivision 3, paragraph (d). 
 19.31     A structure used as a clubhouse, restaurant, or place of 
 19.32  refreshment in conjunction with the golf course is classified as 
 19.33  class 3a property; 
 19.34     (3) real property up to a maximum of one acre of land owned 
 19.35  by a nonprofit community service oriented organization; provided 
 19.36  that the property is not used for a revenue-producing activity 
 20.1   for more than six days in the calendar year preceding the year 
 20.2   of assessment and the property is not used for residential 
 20.3   purposes on either a temporary or permanent basis.  For purposes 
 20.4   of this clause, a "nonprofit community service oriented 
 20.5   organization" means any corporation, society, association, 
 20.6   foundation, or institution organized and operated exclusively 
 20.7   for charitable, religious, fraternal, civic, or educational 
 20.8   purposes, and which is exempt from federal income taxation 
 20.9   pursuant to section 501(c)(3), (10), or (19) of the Internal 
 20.10  Revenue Code of 1986, as amended through December 31, 1990.  For 
 20.11  purposes of this clause, "revenue-producing activities" shall 
 20.12  include but not be limited to property or that portion of the 
 20.13  property that is used as an on-sale intoxicating liquor or 3.2 
 20.14  percent malt liquor establishment licensed under chapter 340A, a 
 20.15  restaurant open to the public, bowling alley, a retail store, 
 20.16  gambling conducted by organizations licensed under chapter 349, 
 20.17  an insurance business, or office or other space leased or rented 
 20.18  to a lessee who conducts a for-profit enterprise on the 
 20.19  premises.  Any portion of the property which is used for 
 20.20  revenue-producing activities for more than six days in the 
 20.21  calendar year preceding the year of assessment shall be assessed 
 20.22  as class 3a.  The use of the property for social events open 
 20.23  exclusively to members and their guests for periods of less than 
 20.24  24 hours, when an admission is not charged nor any revenues are 
 20.25  received by the organization shall not be considered a 
 20.26  revenue-producing activity; 
 20.27     (4) post-secondary student housing of not more than one 
 20.28  acre of land that is owned by a nonprofit corporation organized 
 20.29  under chapter 317A and is used exclusively by a student 
 20.30  cooperative, sorority, or fraternity for on-campus housing or 
 20.31  housing located within two miles of the border of a college 
 20.32  campus; 
 20.33     (5) manufactured home parks as defined in section 327.14, 
 20.34  subdivision 3; 
 20.35     (6) real property that is actively and exclusively devoted 
 20.36  to indoor fitness, health, social, recreational, and related 
 21.1   uses, is owned and operated by a not-for-profit corporation, and 
 21.2   is located within the metropolitan area as defined in section 
 21.3   473.121, subdivision 2; and 
 21.4      (7) a leased or privately owned noncommercial aircraft 
 21.5   storage hangar not exempt under section 272.01, subdivision 2, 
 21.6   and the land on which it is located, provided that: 
 21.7      (i) the land is on an airport owned or operated by a city, 
 21.8   town, county, metropolitan airports commission, or group 
 21.9   thereof; and 
 21.10     (ii) the land lease, or any ordinance or signed agreement 
 21.11  restricting the use of the leased premise, prohibits commercial 
 21.12  activity performed at the hangar. 
 21.13     If a hangar classified under this clause is sold after June 
 21.14  30, 2000, a bill of sale must be filed by the new owner with the 
 21.15  assessor of the county where the property is located within 60 
 21.16  days of the sale. 
 21.17     Class 4c property has a class rate of 1.65 percent of 
 21.18  market value, except that (i) each parcel of seasonal 
 21.19  residential recreational property not used for commercial 
 21.20  purposes has the same class rates as class 4bb property, (ii) 
 21.21  manufactured home parks assessed under clause (5) have the same 
 21.22  class rate as class 4b property, and (iii) property described in 
 21.23  paragraph (d), clause (4), has the same class rate as the rate 
 21.24  applicable to the first tier of class 4bb nonhomestead 
 21.25  residential real estate under paragraph (c).  
 21.26     (e) Class 4d property is qualifying low-income rental 
 21.27  housing certified to the assessor by the housing finance agency 
 21.28  under sections 273.126 and 462A.071.  Class 4d includes land in 
 21.29  proportion to the total market value of the building that is 
 21.30  qualifying low-income rental housing.  For all properties 
 21.31  qualifying as class 4d, the market value determined by the 
 21.32  assessor must be based on the normal approach to value using 
 21.33  normal unrestricted rents. 
 21.34     Class 4d property has a class rate of one percent of market 
 21.35  value.  
 21.36     [EFFECTIVE DATE.] This section is effective for taxes 
 22.1   payable in 2002 and subsequent years. 
 22.2      Sec. 11.  Minnesota Statutes 2000, section 273.13, 
 22.3   subdivision 31, is amended to read: 
 22.4      Subd. 31.  [CLASS 5.] Class 5 property includes:  
 22.5      (1) unmined iron ore and low-grade iron-bearing formations 
 22.6   as defined in section 273.14; and 
 22.7      (2) all other property not otherwise classified. 
 22.8      Class 5 property has a class rate of 3.4 three percent of 
 22.9   market value. 
 22.10     [EFFECTIVE DATE.] This section is effective for taxes 
 22.11  payable in 2002 and subsequent years. 
 22.12     Sec. 12.  [273.1387] [HOMESTEAD CREDIT.] 
 22.13     Subdivision 1.  [DETERMINATION OF CREDIT AMOUNT.] Each 
 22.14  county auditor shall determine a homestead credit amount for 
 22.15  each property classified as class 1 residential homestead or 
 22.16  class 2a agricultural homestead within the county equal to seven 
 22.17  percent of the net tax capacity of the first tier of market 
 22.18  value of the homestead.  In the case of an agricultural 
 22.19  homestead, only the net tax capacity of the house, garage, and 
 22.20  surrounding one acre of land shall be used in determining the 
 22.21  property's homestead credit amount.  The credit may not exceed 
 22.22  the net tax on the property after subtraction of all other 
 22.23  credits under section 273.1393. 
 22.24     Subd. 2.  [CREDIT APPLICATION.] The homestead credit shall 
 22.25  be used to proportionately reduce the property tax payable to 
 22.26  all taxing jurisdictions on the homestead, after subtraction of 
 22.27  all other credits under section 273.1393. 
 22.28     Subd. 3.  [CREDIT REIMBURSEMENT.] The county auditor shall 
 22.29  certify the amount of tax reductions granted under this section 
 22.30  to the commissioner of revenue on the abstracts of tax lists 
 22.31  submitted under section 275.29.  The commissioner of revenue 
 22.32  shall verify the credit amounts reported, and shall make 
 22.33  payments directly to the affected taxing jurisdictions other 
 22.34  than school districts in two equal installments on September 15 
 22.35  and December 26 each year.  The commissioner of revenue shall 
 22.36  certify the total of the tax reductions granted under this 
 23.1   section for each school district to the commissioner of 
 23.2   children, families, and learning before September 1 of each 
 23.3   taxes payable year.  The commissioner of children, families, and 
 23.4   learning shall reimburse each affected school district for the 
 23.5   amount of the property tax reductions allowed under this section 
 23.6   as provided in section 273.1392. 
 23.7      Subd. 4.  [APPROPRIATION.] An amount sufficient to pay the 
 23.8   credit reimbursements provided under this section for school 
 23.9   districts, intermediate school districts, or any group of school 
 23.10  districts levying as a single taxing entity, is annually 
 23.11  appropriated from the general fund to the commissioner of 
 23.12  children, families, and learning.  An amount sufficient to pay 
 23.13  the credit reimbursements provided under this section for 
 23.14  counties, cities, towns, and special taxing districts is 
 23.15  annually appropriated from the general fund to the commissioner 
 23.16  of revenue.  A jurisdiction's aid amount may be increased or 
 23.17  decreased based on any prior year adjustments for homestead 
 23.18  credit or other property tax credit or aid programs. 
 23.19     [EFFECTIVE DATE.] This section is effective for taxes 
 23.20  payable in 2002 and subsequent years. 
 23.21     Sec. 13.  Minnesota Statutes 2000, section 273.1393, is 
 23.22  amended to read: 
 23.23     273.1393 [COMPUTATION OF NET PROPERTY TAXES.] 
 23.24     Notwithstanding any other provisions to the contrary, "net" 
 23.25  property taxes are determined by subtracting the credits in the 
 23.26  order listed from the gross tax:  
 23.27     (1) disaster credit as provided in section 273.123; 
 23.28     (2) powerline credit as provided in section 273.42; 
 23.29     (3) agricultural preserves credit as provided in section 
 23.30  473H.10; 
 23.31     (4) enterprise zone credit as provided in section 469.171; 
 23.32     (5) disparity reduction credit; 
 23.33     (6) conservation tax credit as provided in section 273.119; 
 23.34     (7) education homestead credit as provided in section 
 23.35  273.1382 273.1387; 
 23.36     (8) taconite homestead credit as provided in section 
 24.1   273.135; and 
 24.2      (9) supplemental homestead credit as provided in section 
 24.3   273.1391.  
 24.4      The combination of all property tax credits must not exceed 
 24.5   the gross tax amount.  
 24.6      [EFFECTIVE DATE.] This section is effective for taxes 
 24.7   payable in 2002 and subsequent years. 
 24.8      Sec. 14.  Minnesota Statutes 2000, section 275.065, 
 24.9   subdivision 3, is amended to read: 
 24.10     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 24.11  county auditor shall prepare and the county treasurer shall 
 24.12  deliver after November 10 and on or before November 24 each 
 24.13  year, by first class mail to each taxpayer at the address listed 
 24.14  on the county's current year's assessment roll, a notice of 
 24.15  proposed property taxes.  
 24.16     (b) The commissioner of revenue shall prescribe the form of 
 24.17  the notice. 
 24.18     (c) The notice must inform taxpayers that it contains the 
 24.19  amount of property taxes each taxing authority proposes to 
 24.20  collect for taxes payable the following year.  In the case of a 
 24.21  town, or in the case of the state determined portion of the 
 24.22  school district levy, the final tax amount will be its proposed 
 24.23  tax.  The notice must clearly state that each taxing authority, 
 24.24  including regional library districts established under section 
 24.25  134.201, and including the metropolitan taxing districts as 
 24.26  defined in paragraph (i), but excluding all other special taxing 
 24.27  districts and towns, will hold a public meeting to receive 
 24.28  public testimony on the proposed budget and proposed or final 
 24.29  property tax levy, or, in case of a school district, on the 
 24.30  current budget and proposed property tax levy.  It must clearly 
 24.31  state the time and place of each taxing authority's meeting and 
 24.32  an address where comments will be received by mail.  
 24.33     (d) The notice must state for each parcel: 
 24.34     (1) the market value of the property as determined under 
 24.35  section 273.11, and used for computing property taxes payable in 
 24.36  the following year and for taxes payable in the current year as 
 25.1   each appears in the records of the county assessor on November 1 
 25.2   of the current year; and, in the case of residential property, 
 25.3   whether the property is classified as homestead or 
 25.4   nonhomestead.  The notice must clearly inform taxpayers of the 
 25.5   years to which the market values apply and that the values are 
 25.6   final values; 
 25.7      (2) the items listed below, shown separately by county, 
 25.8   city or town, state determined school tax net of the education 
 25.9   homestead credit under section 273.1382, voter approved school 
 25.10  levy, other local school levy, and the sum of the special taxing 
 25.11  districts, and as a total of all taxing authorities, in all 
 25.12  cases net of the homestead credit amount determined under 
 25.13  section 273.1387:  
 25.14     (i) the actual tax for taxes payable in the current year; 
 25.15     (ii) the tax change due to spending factors, defined as the 
 25.16  proposed tax minus the constant spending tax amount; 
 25.17     (iii) the tax change due to other factors, defined as the 
 25.18  constant spending tax amount minus the actual current year tax; 
 25.19  and 
 25.20     (iv) the proposed tax amount. 
 25.21     In the case of a town or the state determined school tax, 
 25.22  the final tax shall also be its proposed tax unless the town 
 25.23  changes its levy at a special town meeting under section 
 25.24  365.52.  If a school district has certified under section 
 25.25  126C.17, subdivision 9, that a referendum will be held in the 
 25.26  school district at the November general election, the county 
 25.27  auditor must note next to the school district's proposed amount 
 25.28  that a referendum is pending and that, if approved by the 
 25.29  voters, the tax amount may be higher than shown on the notice.  
 25.30  In the case of the city of Minneapolis, the levy for the 
 25.31  Minneapolis library board and the levy for Minneapolis park and 
 25.32  recreation shall be listed separately from the remaining amount 
 25.33  of the city's levy.  In the case of a parcel where tax increment 
 25.34  or the fiscal disparities areawide tax under chapter 276A or 
 25.35  473F applies, the proposed tax levy on the captured value or the 
 25.36  proposed tax levy on the tax capacity subject to the areawide 
 26.1   tax must each be stated separately and not included in the sum 
 26.2   of the special taxing districts; and 
 26.3      (3) the increase or decrease between the total taxes 
 26.4   payable in the current year and the total proposed taxes, 
 26.5   expressed as a percentage. 
 26.6      For purposes of this section, the amount of the tax on 
 26.7   homesteads qualifying under the senior citizens' property tax 
 26.8   deferral program under chapter 290B is the total amount of 
 26.9   property tax before subtraction of the deferred property tax 
 26.10  amount. 
 26.11     (e) The notice must clearly state that the proposed or 
 26.12  final taxes do not include the following: 
 26.13     (1) special assessments; 
 26.14     (2) levies approved by the voters after the date the 
 26.15  proposed taxes are certified, including bond referenda, school 
 26.16  district levy referenda, and levy limit increase referenda; 
 26.17     (3) amounts necessary to pay cleanup or other costs due to 
 26.18  a natural disaster occurring after the date the proposed taxes 
 26.19  are certified; 
 26.20     (4) amounts necessary to pay tort judgments against the 
 26.21  taxing authority that become final after the date the proposed 
 26.22  taxes are certified; and 
 26.23     (5) the contamination tax imposed on properties which 
 26.24  received market value reductions for contamination. 
 26.25     (f) Except as provided in subdivision 7, failure of the 
 26.26  county auditor to prepare or the county treasurer to deliver the 
 26.27  notice as required in this section does not invalidate the 
 26.28  proposed or final tax levy or the taxes payable pursuant to the 
 26.29  tax levy. 
 26.30     (g) If the notice the taxpayer receives under this section 
 26.31  lists the property as nonhomestead, and satisfactory 
 26.32  documentation is provided to the county assessor by the 
 26.33  applicable deadline, and the property qualifies for the 
 26.34  homestead classification in that assessment year, the assessor 
 26.35  shall reclassify the property to homestead for taxes payable in 
 26.36  the following year. 
 27.1      (h) In the case of class 4 residential property used as a 
 27.2   residence for lease or rental periods of 30 days or more, the 
 27.3   taxpayer must either: 
 27.4      (1) mail or deliver a copy of the notice of proposed 
 27.5   property taxes to each tenant, renter, or lessee; or 
 27.6      (2) post a copy of the notice in a conspicuous place on the 
 27.7   premises of the property.  
 27.8      The notice must be mailed or posted by the taxpayer by 
 27.9   November 27 or within three days of receipt of the notice, 
 27.10  whichever is later.  A taxpayer may notify the county treasurer 
 27.11  of the address of the taxpayer, agent, caretaker, or manager of 
 27.12  the premises to which the notice must be mailed in order to 
 27.13  fulfill the requirements of this paragraph. 
 27.14     (i) For purposes of this subdivision, subdivisions 5a and 
 27.15  6, "metropolitan special taxing districts" means the following 
 27.16  taxing districts in the seven-county metropolitan area that levy 
 27.17  a property tax for any of the specified purposes listed below: 
 27.18     (1) metropolitan council under section 473.132, 473.167, 
 27.19  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 27.20     (2) metropolitan airports commission under section 473.667, 
 27.21  473.671, or 473.672; and 
 27.22     (3) metropolitan mosquito control commission under section 
 27.23  473.711. 
 27.24     For purposes of this section, any levies made by the 
 27.25  regional rail authorities in the county of Anoka, Carver, 
 27.26  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 27.27  398A shall be included with the appropriate county's levy and 
 27.28  shall be discussed at that county's public hearing. 
 27.29     (j) If a statutory or home rule charter city or a town has 
 27.30  exercised the local levy option provided by section 473.388, 
 27.31  subdivision 7, it may include in the notice of its proposed 
 27.32  taxes the amount of its proposed taxes attributable to its 
 27.33  exercise of the option.  In the first year of the city or town's 
 27.34  exercise of this option, the statement shall include an estimate 
 27.35  of the reduction of the metropolitan council's tax on the parcel 
 27.36  due to exercise of that option.  The metropolitan council's levy 
 28.1   shall be adjusted accordingly. 
 28.2      [EFFECTIVE DATE.] This section is effective for taxes 
 28.3   payable in 2002 and subsequent years. 
 28.4      Sec. 15.  Minnesota Statutes 2000, section 275.08, 
 28.5   subdivision 1b, is amended to read: 
 28.6      Subd. 1b.  [COMPUTATION OF TAX RATES.] (a) The amounts 
 28.7   certified to be levied against net tax capacity under section 
 28.8   275.07 by an individual local government unit shall be divided 
 28.9   by the total net tax capacity of all taxable properties within 
 28.10  the local government unit's taxing jurisdiction.  The resulting 
 28.11  ratio, the local government's local tax rate, multiplied by each 
 28.12  property's net tax capacity shall be each property's net tax 
 28.13  capacity tax for that local government unit before reduction by 
 28.14  any credits.  
 28.15     (b) Any amount certified to the county auditor to be levied 
 28.16  against market value shall be divided by the total referendum 
 28.17  market value of all taxable properties within the taxing 
 28.18  district.  The resulting ratio, the taxing district's new 
 28.19  referendum tax rate, multiplied by each property's referendum 
 28.20  market value shall be each property's new referendum tax before 
 28.21  reduction by any credits.  For the purposes of this subdivision, 
 28.22  "referendum market value" means the market value as defined in 
 28.23  section 126C.01, subdivision 3. 
 28.24     (c) Any amount certified to the county auditor to be levied 
 28.25  against the general education tax base under section 127A.485 
 28.26  shall be divided by the net tax capacity of all properties in 
 28.27  the school district comprising the general education tax base.  
 28.28  The resulting ratio, the district's general education tax rate, 
 28.29  multiplied by each subject property's net tax capacity shall be 
 28.30  the property's general education tax before reduction by any 
 28.31  credits.  
 28.32     (d) Any amount certified to the county auditor to be levied 
 28.33  against homestead and agricultural net tax capacity under 
 28.34  section 126C.17, subdivision 10a, shall be divided by the total 
 28.35  net tax capacity of all properties within the school district 
 28.36  classified under section 273.13 as class 1 or class 2.  The 
 29.1   resulting ratio, the district's new referendum tax rate, 
 29.2   multiplied by each subject property's net tax capacity shall be 
 29.3   the property's new referendum tax before reduction by any 
 29.4   credits. 
 29.5      [EFFECTIVE DATE.] This section is effective for taxes 
 29.6   payable in 2002 and subsequent years. 
 29.7      Sec. 16.  Minnesota Statutes 2000, section 276.04, 
 29.8   subdivision 2, is amended to read: 
 29.9      Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 29.10  shall provide for the printing of the tax statements.  The 
 29.11  commissioner of revenue shall prescribe the form of the property 
 29.12  tax statement and its contents.  The statement must contain a 
 29.13  tabulated statement of the dollar amount due to each taxing 
 29.14  authority and the amount of the state determined school tax from 
 29.15  the parcel of real property for which a particular tax statement 
 29.16  is prepared.  The dollar amounts attributable to the county, the 
 29.17  state determined school tax, the voter approved school tax, the 
 29.18  other local school tax, the township or municipality, and the 
 29.19  total of the metropolitan special taxing districts as defined in 
 29.20  section 275.065, subdivision 3, paragraph (i), must be 
 29.21  separately stated.  The amounts due all other special taxing 
 29.22  districts, if any, may be aggregated.  The amount of the tax on 
 29.23  homesteads qualifying under the senior citizens' property tax 
 29.24  deferral program under chapter 290B is the total amount of 
 29.25  property tax before subtraction of the deferred property tax 
 29.26  amount.  The amount of the tax on contamination value imposed 
 29.27  under sections 270.91 to 270.98, if any, must also be separately 
 29.28  stated.  The dollar amounts, including the dollar amount of any 
 29.29  special assessments, may be rounded to the nearest even whole 
 29.30  dollar.  For purposes of this section whole odd-numbered dollars 
 29.31  may be adjusted to the next higher even-numbered dollar.  The 
 29.32  amount of market value excluded under section 273.11, 
 29.33  subdivision 16, if any, must also be listed on the tax 
 29.34  statement.  The statement shall include the following sentences, 
 29.35  printed in upper case letters in boldface print:  "EVEN THOUGH 
 29.36  THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX 
 30.1   REVENUES, IT SETS THE AMOUNT OF THE STATE-DETERMINED SCHOOL TAX 
 30.2   LEVY.  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY 
 30.3   PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT." 
 30.4      (b) The property tax statements for manufactured homes and 
 30.5   sectional structures taxed as personal property shall contain 
 30.6   the same information that is required on the tax statements for 
 30.7   real property.  
 30.8      (c) Real and personal property tax statements must contain 
 30.9   the following information in the order given in this paragraph.  
 30.10  The information must contain the current year tax information in 
 30.11  the right column with the corresponding information for the 
 30.12  previous year in a column on the left: 
 30.13     (1) the property's estimated market value under section 
 30.14  273.11, subdivision 1; 
 30.15     (2) the property's taxable market value after reductions 
 30.16  under section 273.11, subdivisions 1a and 16; 
 30.17     (3) the property's gross tax, calculated by adding the 
 30.18  property's total property tax to the sum of the aids enumerated 
 30.19  in clause (4); 
 30.20     (4) a total of the following aids: 
 30.21     (i) education aids payable under chapters 122A, 123A, 123B, 
 30.22  124D, 125A, 126C, and 127A; 
 30.23     (ii) local government aids for cities, towns, and counties 
 30.24  under chapter 477A; 
 30.25     (iii) disparity reduction aid under section 273.1398; and 
 30.26     (iv) homestead and agricultural credit aid under section 
 30.27  273.1398; 
 30.28     (5) for homestead residential and agricultural properties, 
 30.29  the education homestead credit under section 273.1382 273.1387; 
 30.30     (6) any credits received under sections 273.119; 273.123; 
 30.31  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 30.32  473H.10, except that the amount of credit received under section 
 30.33  273.135 must be separately stated and identified as "taconite 
 30.34  tax relief"; and 
 30.35     (7) the net tax payable in the manner required in paragraph 
 30.36  (a). 
 31.1      (d) If the county uses envelopes for mailing property tax 
 31.2   statements and if the county agrees, a taxing district may 
 31.3   include a notice with the property tax statement notifying 
 31.4   taxpayers when the taxing district will begin its budget 
 31.5   deliberations for the current year, and encouraging taxpayers to 
 31.6   attend the hearings.  If the county allows notices to be 
 31.7   included in the envelope containing the property tax statement, 
 31.8   and if more than one taxing district relative to a given 
 31.9   property decides to include a notice with the tax statement, the 
 31.10  county treasurer or auditor must coordinate the process and may 
 31.11  combine the information on a single announcement.  
 31.12     The commissioner of revenue shall certify to the county 
 31.13  auditor the actual or estimated aids enumerated in clause (4) 
 31.14  that local governments will receive in the following year.  The 
 31.15  commissioner must certify this amount by January 1 of each year. 
 31.16     [EFFECTIVE DATE.] This section is effective for taxes 
 31.17  payable in 2002 and subsequent years. 
 31.18     Sec. 17.  [REPEALER.] 
 31.19     Minnesota Statutes 2000, sections 273.13, subdivision 24a; 
 31.20  273.1382; and 275.08, subdivision 1e, are repealed.  
 31.21     [EFFECTIVE DATE.] This section is effective for taxes 
 31.22  payable in 2002 and subsequent years.