HF 2072

1st Committee Engrossment - 87th Legislature (2011 - 2012) Posted on 03/19/2013 07:33pm

1.1A bill for an act

1.2relating to taxation; clarifying limits on taxation, spending, and incurring debt
1.3based on market values; defining terms; making technical and clarifying changes;
1.4repealing obsolete provisions; amending Minnesota Statutes 2010, sections
1.538.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7,
1.68; 88.51, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8;
1.7103B.635, subdivision 2; 103B.691, subdivision 2; 103D.905, subdivisions 2, 3,
1.88; 117.025, subdivision 7; 127A.48, subdivision 1; 138.053; 144F.01, subdivision
1.94; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.06, subdivision 6; 165.10,
1.10subdivision 1; 272.03, by adding subdivisions; 273.032; 273.11, subdivision 1;
1.11273.124, subdivisions 3a, 13; 273.13, subdivision 21b; 273.1398, subdivisions
1.123, 4; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4;
1.13276A.01, subdivisions 10, 12, 13, 15; 287.08; 287.23, subdivision 1; 353G.08,
1.14subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01,
1.15subdivision 23; 368.47; 370.01; 373.40, subdivisions 1, 4; 375.167, subdivision
1.161; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision
1.171; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision
1.188; 401.05, subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02,
1.19subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10;
1.20458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision
1.212; 469.053, subdivisions 4, 4a, 6; 469.107, subdivision 1; 469.177, subdivision
1.221; 469.180, subdivision 2; 469.187; 469.206; 471.24; 471.571, subdivisions 1,
1.232; 471.73; 473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667,
1.24subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12,
1.2514, 15, 23; 475.521, subdivision 4; 475.53, subdivisions 1, 3, 4, 5; 475.58,
1.26subdivision 2; 475.73, subdivision 1; 477A.011, subdivision 32; 477A.0124,
1.27subdivision 2; 641.23; 641.24; 645.44, by adding a subdivision; Minnesota
1.28Statutes 2011 Supplement, sections 276.04, subdivision 2; 477A.011, subdivision
1.2920; repealing Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01,
1.30subdivision 11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08,
1.31subdivision 10; 477A.011, subdivision 21.
1.32BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.33    Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:
1.3438.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
2.1Any Each town, statutory city, or school district in this state, now or hereafter at
2.2any time having a an estimated market value of all its taxable property, exclusive of
2.3money and credits, of more than $105,000,000, and having a county fair located within its
2.4corporate limits, is hereby authorized to aid in defraying may pay part of the expense of
2.5improving any such the fairground, by appropriating and paying over to the treasurer of
2.6the county owning the fairground such sum of money, not exceeding $10,000, for each
2.7of the political subdivisions, as the its governing body of the town, statutory city, or
2.8school district may, by resolution, determine determines to be for the best interest of the
2.9political subdivision,. The sums so appropriated to amounts paid to the county must be
2.10used solely for the purpose of aiding in the improvement of to improve the fairground
2.11in such the manner as the county board of the county shall determine determines to be
2.12for the best interest of the county.

2.13    Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:
2.14    Subd. 2. Eligible recipients. All counties within the state, municipalities that
2.15prepare plans and official controls instead of a county, and districts are eligible for
2.16assistance under the program. Counties and districts may apply for assistance on behalf
2.17of other municipalities. In order to be eligible for financial assistance a county or
2.18municipality must agree to levy at least 0.01209 percent of taxable estimated market
2.19value for agricultural land preservation and conservation activities or otherwise spend the
2.20equivalent amount of local money on those activities, or spend $15,000 of local money,
2.21whichever is less.

2.22    Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:
2.23    Subdivision 1. Definitions. Unless the language or context clearly indicates that
2.24a different meaning is intended, the following words and terms, for the purposes of this
2.25chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
2.26    (a) "Commissioner" means the commissioner of revenue.
2.27    (b) "Municipality" means:
2.28    (1) a home rule charter or statutory city;
2.29    (2) an organized town;
2.30    (3) a park district subject to chapter 398;
2.31    (4) the University of Minnesota;
2.32    (5) for purposes of the fire state aid program only, an American Indian tribal
2.33government entity located within a federally recognized American Indian reservation;
3.1    (6) for purposes of the police state aid program only, an American Indian tribal
3.2government with a tribal police department which exercises state arrest powers under
3.3section 626.90, 626.91, 626.92, or 626.93;
3.4    (7) for purposes of the police state aid program only, the Metropolitan Airports
3.5Commission; and
3.6    (8) for purposes of the police state aid program only, the Department of Natural
3.7Resources and the Department of Public Safety with respect to peace officers covered
3.8under chapter 352B.
3.9    (c) "Minnesota Firetown Premium Report" means a form prescribed by the
3.10commissioner containing space for reporting by insurers of fire, lightning, sprinkler
3.11leakage and extended coverage premiums received upon risks located or to be performed
3.12in this state less return premiums and dividends.
3.13    (d) "Firetown" means the area serviced by any municipality having a qualified fire
3.14department or a qualified incorporated fire department having a subsidiary volunteer
3.15firefighters' relief association.
3.16    (e) "Estimated market value" means latest available estimated market value of all
3.17property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
3.18from ad valorem taxation obtained from information which appears on abstracts filed with
3.19the commissioner of revenue or equalized by the State Board of Equalization.
3.20    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
3.21commissioner for reporting by each fire and casualty insurer of all premiums received
3.22upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
3.23during the preceding calendar year, with reference to insurance written for insuring against
3.24the perils contained in auto insurance coverages as reported in the Minnesota business
3.25schedule of the annual financial statement which each insurer is required to file with
3.26the commissioner in accordance with the governing laws or rules less return premiums
3.27and dividends.
3.28    (g) "Peace officer" means any person:
3.29    (1) whose primary source of income derived from wages is from direct employment
3.30by a municipality or county as a law enforcement officer on a full-time basis of not less
3.31than 30 hours per week;
3.32    (2) who has been employed for a minimum of six months prior to December 31
3.33preceding the date of the current year's certification under subdivision 2, clause (b);
3.34    (3) who is sworn to enforce the general criminal laws of the state and local
3.35ordinances;
4.1    (4) who is licensed by the Peace Officers Standards and Training Board and is
4.2authorized to arrest with a warrant; and
4.3    (5) who is a member of the Minneapolis Police Relief Association, the State Patrol
4.4retirement plan, or the public employees police and fire fund.
4.5    (h) "Full-time equivalent number of peace officers providing contract service" means
4.6the integral or fractional number of peace officers which would be necessary to provide
4.7the contract service if all peace officers providing service were employed on a full-time
4.8basis as defined by the employing unit and the municipality receiving the contract service.
4.9    (i) "Retirement benefits other than a service pension" means any disbursement
4.10authorized under section 424A.05, subdivision 3, clauses (3) and (4).
4.11    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person
4.12who was elected or appointed to the specified position or, in the absence of the person,
4.13another person who is designated by the applicable governing body. In a park district,
4.14the clerk is the secretary of the board of park district commissioners. In the case of the
4.15University of Minnesota, the clerk is that official designated by the Board of Regents.
4.16For the Metropolitan Airports Commission, the clerk is the person designated by the
4.17commission. For the Department of Natural Resources or the Department of Public Safety,
4.18the clerk is the respective commissioner. For a tribal police department which exercises
4.19state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person
4.20designated by the applicable American Indian tribal government.
4.21(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
4.22retirement plan established by chapter 353G.

4.23    Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:
4.24    Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
4.25(a) The commissioner shall apportion the fire state aid relative to the premiums reported
4.26on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
4.27and/or firefighters relief association.
4.28(b) The commissioner shall calculate an initial fire state aid allocation amount for
4.29each municipality or fire department under paragraph (c) and a minimum fire state aid
4.30allocation amount for each municipality or fire department under paragraph (d). The
4.31municipality or fire department must receive the larger fire state aid amount.
4.32(c) The initial fire state aid allocation amount is the amount available for
4.33apportionment as fire state aid under subdivision 5, without inclusion of any additional
4.34funding amount to support a minimum fire state aid amount under section 423A.02,
4.35subdivision 3 , allocated one-half in proportion to the population as shown in the last
5.1official statewide federal census for each fire town and one-half in proportion to the
5.2estimated market value of each fire town, including (1) the estimated market value of
5.3tax-exempt property and (2) the estimated market value of natural resources lands
5.4receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the
5.5estimated market value of minerals. In the case of incorporated or municipal fire
5.6departments furnishing fire protection to other cities, towns, or townships as evidenced
5.7by valid fire service contracts filed with the commissioner, the distribution must be
5.8adjusted proportionately to take into consideration the crossover fire protection service.
5.9Necessary adjustments must be made to subsequent apportionments. In the case of
5.10municipalities or independent fire departments qualifying for the aid, the commissioner
5.11shall calculate the state aid for the municipality or relief association on the basis of the
5.12population and the estimated market value of the area furnished fire protection service
5.13by the fire department as evidenced by duly executed and valid fire service agreements
5.14filed with the commissioner. If one or more fire departments are furnishing contracted fire
5.15service to a city, town, or township, only the population and estimated market value of the
5.16area served by each fire department may be considered in calculating the state aid and
5.17the fire departments furnishing service shall enter into an agreement apportioning among
5.18themselves the percent of the population and the estimated market value of each service
5.19area. The agreement must be in writing and must be filed with the commissioner.
5.20(d) The minimum fire state aid allocation amount is the amount in addition to the
5.21initial fire state allocation amount that is derived from any additional funding amount
5.22to support a minimum fire state aid amount under section 423A.02, subdivision 3, and
5.23allocated to municipalities with volunteer firefighters relief associations or covered by the
5.24voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
5.25of active volunteer firefighters who are members of the relief association as reported
5.26in the annual financial reporting for the calendar year 1993 to the Office of the State
5.27Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
5.28fire departments with volunteer firefighters relief associations receive in total at least a
5.29minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
5.3030 firefighters. If a relief association is established after calendar year 1993 and before
5.31calendar year 2000, the number of active volunteer firefighters who are members of the
5.32relief association as reported in the annual financial reporting for calendar year 1998
5.33to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
5.34shall be used in this determination. If a relief association is established after calendar
5.35year 1999, the number of active volunteer firefighters who are members of the relief
5.36association as reported in the first annual financial reporting submitted to the Office of
6.1the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
6.2determination. If a relief association is terminated as a result of providing retirement
6.3coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
6.4firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
6.5of the municipality covered by the statewide plan as certified by the executive director of
6.6the Public Employees Retirement Association to the commissioner and the state auditor,
6.7but not to exceed 30 active firefighters, must be used in this determination.
6.8(e) Unless the firefighters of the applicable fire department are members of the
6.9voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
6.10be paid to the treasurer of the municipality where the fire department is located and the
6.11treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
6.12the aid to the relief association if the relief association has filed a financial report with the
6.13treasurer of the municipality and has met all other statutory provisions pertaining to the
6.14aid apportionment. If the firefighters of the applicable fire department are members of
6.15the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
6.16must be paid to the executive director of the Public Employees Retirement Association
6.17and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
6.18(f) The commissioner may make rules to permit the administration of the provisions
6.19of this section.
6.20(g) Any adjustments needed to correct prior misallocations must be made to
6.21subsequent apportionments.

6.22    Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:
6.23    Subd. 8. Population and estimated market value. (a) In computations relating to
6.24fire state aid requiring the use of population figures, only official statewide federal census
6.25figures are to be used. Increases or decreases in population disclosed by reason of any
6.26special census must not be taken into consideration.
6.27(b) In calculations relating to fire state aid requiring the use of estimated market
6.28value property figures, only the latest available estimated market value property figures
6.29may be used.

6.30    Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:
6.31    Subd. 3. Determination of market value. In determining the net tax capacity of
6.32property within any taxing district the value of the surface of lands within any auxiliary
6.33forest therein, as determined by the county board under the provisions of section 88.48,
7.1subdivision 3 , shall, for all purposes except the levying of taxes on lands within any such
7.2forest, be deemed the estimated market value thereof.

7.3    Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:
7.4    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local
7.5government unit may annually levy a tax on all taxable property in the district for the
7.6purposes for which the tax district is established. The tax may not exceed 0.02418 percent
7.7of estimated market value on taxable property located in rural towns other than urban
7.8towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
7.9be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
7.10fund at the time the tax is terminated or the district is dissolved shall be transferred and
7.11irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
7.12tax levies for bonded indebtedness of taxable property in the district.

7.13    Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:
7.14    Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued
7.15under subdivision 7 and the payment required under subdivision 6, the county shall
7.16irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
7.17located within the territory of the watershed management organization or subwatershed
7.18unit for which the bonds are issued. Each year until the reserve for payment of the bonds
7.19is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
7.20of the organization or unit, without respect to any statutory or other limitation on taxes, an
7.21amount of taxes sufficient to pay principal and interest on the bonds and to restore any
7.22deficiencies in reserves required to be maintained for payment of the bonds.
7.23(b) The tax levied on rural towns other than urban towns may not exceed 0.02418
7.24percent of taxable estimated market value, unless approved by resolution of the town
7.25electors.
7.26(c) If at any time the amounts available from the levy on property in the territory of
7.27the organization are insufficient to pay principal and interest on the bonds when due, the
7.28county shall make payment from any available funds in the county treasury.
7.29(d) The amount of any taxes which are required to be levied outside of the territory
7.30of the watershed management organization or unit or taken from the general funds of the
7.31county to pay principal or interest on the bonds shall be reimbursed to the county from
7.32taxes levied within the territory of the watershed management organization or unit.

7.33    Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:
8.1    Subd. 2. Municipal funding of district. (a) The governing body or board of
8.2supervisors of each municipality in the district must provide the funds necessary to meet
8.3its proportion of the total cost determined by the board, provided the total funding from
8.4all municipalities in the district for the costs shall not exceed an amount equal to .00242
8.5percent of the total taxable estimated market value within the district, unless three-fourths
8.6of the municipalities in the district pass a resolution concurring to the additional costs.
8.7(b) The funds must be deposited in the treasury of the district in amounts and at
8.8times as the treasurer of the district requires.

8.9    Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:
8.10    Subd. 2. Municipal funding of district. (a) The governing body or board of
8.11supervisors of each municipality in the district shall provide the funds necessary to
8.12meet its proportion of the total cost to be borne by the municipalities as finally certified
8.13by the board.
8.14(b) The municipality's funds may be raised by any means within the authority of
8.15the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
8.16taxable estimated market value on the taxable property located in the district to provide
8.17the funds. The levy shall be within all other limitations provided by law.
8.18(c) The funds must be deposited into the treasury of the district in amounts and at
8.19times as the treasurer of the district requires.

8.20    Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:
8.21    Subd. 2. Organizational expense fund. (a) An organizational expense fund,
8.22consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated
8.23market value, or $60,000, whichever is less. The money in the fund shall be used for
8.24organizational expenses and preparation of the watershed management plan for projects.
8.25(b) The managers may borrow from the affected counties up to 75 percent of the
8.26anticipated funds to be collected from the organizational expense fund levy and the
8.27counties affected may make the advancements.
8.28(c) The advancement of anticipated funds shall be apportioned among affected
8.29counties in the same ratio as the net tax capacity of the area of the counties within
8.30the watershed district bears to the net tax capacity of the entire watershed district. If a
8.31watershed district is enlarged, an organizational expense fund may be levied against the
8.32area added to the watershed district in the same manner as provided in this subdivision.
8.33(d) Unexpended funds collected for the organizational expense may be transferred to
8.34the administrative fund and used for the purposes of the administrative fund.

9.1    Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:
9.2    Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may
9.3not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is
9.4less. The money in the fund shall be used for general administrative expenses and for
9.5the construction or implementation and maintenance of projects of common benefit to
9.6the watershed district. The managers may make an annual levy for the general fund as
9.7provided in section 103D.911. In addition to the annual general levy, the managers may
9.8annually levy a tax not to exceed 0.00798 percent of taxable estimated market value
9.9for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
9.10water management features of projects initiated by petition of a political subdivision
9.11within the watershed district or by petition of at least 50 resident owners whose property
9.12is within the watershed district.

9.13    Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:
9.14    Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund
9.15is established and used only if other funds are not available to the watershed district to pay
9.16for making necessary surveys and acquiring data.
9.17(b) The survey and data acquisition fund consists of the proceeds of a property tax
9.18that can be levied only once every five years. The levy may not exceed 0.02418 percent of
9.19taxable estimated market value.
9.20(c) The balance of the survey and data acquisition fund may not exceed $50,000.
9.21(d) In a subsequent proceeding for a project where a survey has been made, the
9.22attributable cost of the survey as determined by the managers shall be included as a part of
9.23the cost of the work and the sum shall be repaid to the survey and data acquisition fund.

9.24    Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:
9.25    Subd. 7. Structurally substandard. "Structurally substandard" means a building:
9.26(1) that was inspected by the appropriate local government and cited for one or more
9.27enforceable housing, maintenance, or building code violations;
9.28(2) in which the cited building code violations involve one or more of the following:
9.29(i) a roof and roof framing element;
9.30(ii) support walls, beams, and headers;
9.31(iii) foundation, footings, and subgrade conditions;
9.32(iv) light and ventilation;
9.33(v) fire protection, including egress;
9.34(vi) internal utilities, including electricity, gas, and water;
10.1(vii) flooring and flooring elements; or
10.2(viii) walls, insulation, and exterior envelope;
10.3(3) in which the cited housing, maintenance, or building code violations have not
10.4been remedied after two notices to cure the noncompliance; and
10.5(4) has uncured housing, maintenance, and building code violations, satisfaction of
10.6which would cost more than 50 percent of the assessor's taxable estimated market value
10.7for the building, excluding land value, as determined under section 273.11 for property
10.8taxes payable in the year in which the condemnation is commenced.
10.9A local government is authorized to seek from a judge or magistrate an administrative
10.10warrant to gain access to inspect a specific building in a proposed development or
10.11redevelopment area upon showing of probable cause that a specific code violation has
10.12occurred and that the violation has not been cured, and that the owner has denied the local
10.13government access to the property. Items of evidence that may support a conclusion of
10.14probable cause may include recent fire or police inspections, housing inspection, exterior
10.15evidence of deterioration, or other similar reliable evidence of deterioration in the specific
10.16building.

10.17    Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:
10.18    Subdivision 1. Computation. The Department of Revenue must annually conduct
10.19an assessment/sales ratio study of the taxable property in each county, city, town, and
10.20school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
10.21results of this assessment/sales ratio study, the Department of Revenue must determine an
10.22aggregate equalized net tax capacity for the various classes of taxable property in each
10.23taxing district, the aggregate of which tax capacity shall be is designated as the adjusted
10.24net tax capacity. The adjusted net tax capacity must be reduced by the captured tax
10.25capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities
10.26contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of
10.27transmission lines required to be subtracted from the local tax base under section 273.425;
10.28and increased by fiscal disparities distribution tax capacities under sections 276A.06 and
10.29473F.08. The adjusted net tax capacities shall be determined using the net tax capacity
10.30percentages in effect for the assessment year following the assessment year of the study.
10.31The Department of Revenue must make whatever estimates are necessary to account for
10.32changes in the classification system. The Department of Revenue may incur the expense
10.33necessary to make the determinations. The commissioner of revenue may reimburse any
10.34county or governmental official for requested services performed in ascertaining the
10.35adjusted net tax capacity. On or before March 15 annually, the Department of Revenue
11.1shall file with the chair of the Tax Committee of the house of representatives and the
11.2chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax
11.3capacities for school districts. On or before June 15 annually, the Department of Revenue
11.4shall file its final report on the adjusted net tax capacities for school districts established
11.5by the previous year's assessments and the current year's net tax capacity percentages with
11.6the commissioner of education and each county auditor for those school districts for
11.7which the auditor has the responsibility for determination of local tax rates. A copy of
11.8the report so filed shall be mailed to the clerk of each school district involved and to the
11.9county assessor or supervisor of assessments of the county or counties in which each
11.10school district is located.
11.11EFFECTIVE DATE.This section is effective the day following final enactment.

11.12    Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:
11.13138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
11.14TOWNS.
11.15The governing body of any home rule charter or statutory city or town may annually
11.16appropriate from its general fund an amount not to exceed 0.02418 percent of taxable
11.17estimated market value, derived from ad valorem taxes on property or other revenues,
11.18to be paid to the historical society of its respective county to be used for the promotion
11.19of historical work and to aid in defraying the expenses of carrying on the historical
11.20work in the county. No city or town may appropriate any funds for the benefit of any
11.21historical society unless the society is affiliated with and approved by the Minnesota
11.22Historical Society.

11.23    Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:
11.24    Subd. 4. Property tax levy authority. The district's board may levy a tax on the
11.25taxable real and personal property in the district. The ad valorem tax levy may not
11.26exceed 0.048 percent of the taxable estimated market value of the district or $400,000,
11.27whichever is less. The proceeds of the levy must be used as provided in subdivision 5.
11.28The board shall certify the levy at the times as provided under section 275.07. The board
11.29shall provide the county with whatever information is necessary to identify the property
11.30that is located within the district. If the boundaries include a part of a parcel, the entire
11.31parcel shall be included in the district. The county auditors must spread, collect, and
11.32distribute the proceeds of the tax at the same time and in the same manner as provided by
11.33law for all other property taxes.

12.1    Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:
12.2    Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596
12.3percent on each rural county's total taxable estimated market value for the last preceding
12.4calendar year shall be computed and shall be subtracted from the county's total estimated
12.5construction costs. The result thereof shall be the money needs of the county. For the
12.6purpose of this section, "rural counties" means all counties having a population of less
12.7than 175,000.

12.8    Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:
12.9    Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967
12.10percent on each urban county's total taxable estimated market value for the last preceding
12.11calendar year shall be computed and shall be subtracted from the county's total estimated
12.12construction costs. The result thereof shall be the money needs of the county. For
12.13the purpose of this section, "urban counties" means all counties having a population
12.14of 175,000 or more.

12.15    Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:
12.16    Subd. 3. Bridges within certain cities. When the council of any statutory city or
12.17city of the third or fourth class may determine that it is necessary to build or improve any
12.18bridge or bridges, including approaches thereto, and any dam or retaining works connected
12.19therewith, upon or forming a part of streets or highways either wholly or partly within
12.20its limits, the county board shall appropriate one-half of the money as may be necessary
12.21therefor from the county road and bridge fund, not exceeding during any year one-half
12.22the amount of taxes paid into the county road and bridge fund during the preceding year,
12.23on property within the corporate limits of the city. The appropriation shall be made upon
12.24the petition of the council, which petition shall be filed by the council with the county
12.25board prior to the fixing by the board of the annual county tax levy. The county board
12.26shall determine the plans and specifications, shall let all necessary contracts, shall have
12.27charge of construction, and upon its request, warrants in payment thereof shall be issued
12.28by the county auditor, from time to time, as the construction work proceeds. Any unpaid
12.29balance may be paid or advanced by the city. On petition of the council, the appropriations
12.30of the county board, during not to exceed three successive years, may be made to apply
12.31on the construction of the same items and to repay any money advanced by the city in
12.32the construction thereof. None of the provisions of this section shall be construed to
12.33be mandatory as applied to any city whose estimated market value exceeds $2,100 per
12.34capita of its population.

13.1    Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:
13.2    Subd. 6. Expenditure in certain counties. In any county having not less than 95
13.3nor more than 105 full and fractional townships, and having a an estimated market value
13.4of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,
13.5the county board, by resolution, may expend the funds provided in subdivision 4 in any
13.6organized or unorganized township or portion thereof in such county.

13.7    Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:
13.8    Subdivision 1. Certain counties may issue and sell. The county board of any
13.9county having no outstanding road and bridge bonds may issue and sell county road bonds
13.10in an amount not exceeding 0.12089 percent of the estimated market value of the taxable
13.11property within the county exclusive of money and credits, for the purpose of constructing,
13.12reconstructing, improving, or maintaining any bridge or bridges on any highway under its
13.13jurisdiction, without submitting the matter to a vote of the electors of the county.

13.14    Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision
13.15to read:
13.16    Subd. 14. Estimated market value. "Estimated market value" means the assessor's
13.17determination of market value, including the effects of any orders made under section
13.18270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain
13.19uses in determining the total estimated market value for the taxing jurisdiction.

13.20    Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision
13.21to read:
13.22    Subd. 15. Taxable market value. "Taxable market value" means estimated market
13.23value for the parcel as reduced by market value exclusions, deferments of value, or other
13.24adjustments, required by law, that reduce market value before the application of class rates.

13.25    Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:
13.26273.032 MARKET VALUE DEFINITION.
13.27(a) Unless otherwise provided, for the purpose of determining any property tax
13.28levy limitation based on market value or any limit on net debt, the issuance of bonds,
13.29certificates of indebtedness, or capital notes based on market value, any qualification to
13.30receive state aid based on market value, or any state aid amount based on market value,
13.31the terms "market value," "taxable estimated market value," and "market valuation,"
13.32whether equalized or unequalized, mean the total taxable estimated market value of
14.1taxable property within the local unit of government before any of the following or
14.2similar adjustments for:
14.3(1) the market value exclusions under:
14.4(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
14.5(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
14.6(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
14.7properties);
14.8(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
14.9(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
14.10(vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or
14.11caregiver);
14.12(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
14.13(2) the deferment of value under:
14.14(i) the Minnesota Agricultural Property Tax Law, section 273.111;
14.15(ii) the aggregate resource preservation law, section 273.1115;
14.16(iii) the Minnesota Open Space Property Tax Law, section 273.112;
14.17(iv) the rural preserves property tax program, section 273.114; or
14.18(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
14.19(3) the adjustments to tax capacity for:
14.20 (i) tax increment, financing under sections 469.174 to 469.1794;
14.21(ii) fiscal disparity, disparities under chapter 276A or 473F; or
14.22(iii) powerline credit, or wind energy values, but after the limited market adjustments
14.23under section 273.11, subdivision 1a, and after the market value exclusions of certain
14.24improvements to homestead property under section 273.11, subdivision 16 under section
14.25273.425.
14.26(b) Estimated market value under paragraph (a) also includes the market value
14.27of tax exempt property if the applicable law specifically provides that the limitation,
14.28qualification, or aid calculation includes tax exempt property.
14.29(c) Unless otherwise provided, "market value," "taxable estimated market value,"
14.30and "market valuation" for purposes of this paragraph property tax levy limitations and
14.31calculation of state aid, refer to the taxable estimated market value for the previous
14.32assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of
14.33indebtedness, or capital notes refer to the estimated market value as last finally equalized.
14.34For the purpose of determining any net debt limit based on market value, or any limit
14.35on the issuance of bonds, certificates of indebtedness, or capital notes based on market
14.36value, the terms "market value," "taxable market value," and "market valuation," whether
15.1equalized or unequalized, mean the total taxable market value of property within the local
15.2unit of government before any adjustments for tax increment, fiscal disparity, powerline
15.3credit, or wind energy values, but after the limited market value adjustments under section
15.4273.11, subdivision 1a, and after the market value exclusions of certain improvements to
15.5homestead property under section 273.11, subdivision 16. Unless otherwise provided,
15.6"market value," "taxable market value," and "market valuation" for purposes of this
15.7paragraph, mean the taxable market value as last finally equalized.
15.8(d) For purposes of a provision of a home rule charter or of any special law that is
15.9not codified in the statutes and that imposes a levy limitation based on market value or
15.10any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes
15.11based on market value, the terms "market value," "taxable market value," and "market
15.12valuation," whether equalized or unequalized, mean "estimated market value" as defined
15.13in paragraph (a).

15.14    Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:
15.15    Subdivision 1. Generally. Except as provided in this section or section 273.17,
15.16subdivision 1 , all property shall be valued at its market value. The market value as
15.17determined pursuant to this section shall be stated such that any amount under $100 is
15.18rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
15.19In estimating and determining such value, the assessor shall not adopt a lower or different
15.20standard of value because the same is to serve as a basis of taxation, nor shall the assessor
15.21adopt as a criterion of value the price for which such property would sell at a forced sale,
15.22or in the aggregate with all the property in the town or district; but the assessor shall value
15.23each article or description of property by itself, and at such sum or price as the assessor
15.24believes the same to be fairly worth in money. The assessor shall take into account the
15.25effect on the market value of property of environmental factors in the vicinity of the
15.26property. In assessing any tract or lot of real property, the value of the land, exclusive of
15.27structures and improvements, shall be determined, and also the value of all structures and
15.28improvements thereon, and the aggregate value of the property, including all structures
15.29and improvements, excluding the value of crops growing upon cultivated land. In valuing
15.30real property upon which there is a mine or quarry, it shall be valued at such price as such
15.31property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
15.32if the material being mined or quarried is not subject to taxation under section 298.015
15.33and the mine or quarry is not exempt from the general property tax under section 298.25.
15.34In valuing real property which is vacant, platted property shall be assessed as provided
15.35in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is
16.1taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market
16.2value of such property and not at the value of a leasehold estate in such property, or at
16.3some lesser value than its market value.

16.4    Sec. 27. Minnesota Statutes 2010, section 273.124, subdivision 3a, is amended to read:
16.5    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
16.6park is owned by a corporation or association organized under chapter 308A or 308B,
16.7and each person who owns a share or shares in the corporation or association is entitled
16.8to occupy a lot within the park, the corporation or association may claim homestead
16.9treatment for the park. Each lot must be designated by legal description or number, and
16.10each lot is limited to not more than one-half acre of land.
16.11(b) The manufactured home park shall be entitled to homestead treatment if all
16.12of the following criteria are met:
16.13(1) the occupant or the cooperative corporation or association is paying the ad
16.14valorem property taxes and any special assessments levied against the land and structure
16.15either directly, or indirectly through dues to the corporation or association; and
16.16(2) the corporation or association organized under chapter 308A or 308B is wholly
16.17owned by persons having a right to occupy a lot owned by the corporation or association.
16.18(c) A charitable corporation, organized under the laws of Minnesota with no
16.19outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
16.20tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
16.21park if its members hold residential participation warrants entitling them to occupy a lot
16.22in the manufactured home park.
16.23(d) "Homestead treatment" under this subdivision means the class rate provided for
16.24class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5),
16.25item (ii). The homestead market value credit exclusion under section 273.1384 273.13,
16.26subdivision 35, does not apply and the property taxes assessed against the park shall not
16.27be included in the determination of taxes payable for rent paid under section 290A.03.
16.28EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
16.29thereafter.

16.30    Sec. 28. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:
16.31    Subd. 13. Homestead application. (a) A person who meets the homestead
16.32requirements under subdivision 1 must file a homestead application with the county
16.33assessor to initially obtain homestead classification.
17.1    (b) The format and contents of a uniform homestead application shall be prescribed
17.2by the commissioner of revenue. The application must clearly inform the taxpayer that
17.3this application must be signed by all owners who occupy the property or by the qualifying
17.4relative and returned to the county assessor in order for the property to receive homestead
17.5treatment.
17.6    (c) Every property owner applying for homestead classification must furnish to the
17.7county assessor the Social Security number of each occupant who is listed as an owner
17.8of the property on the deed of record, the name and address of each owner who does not
17.9occupy the property, and the name and Social Security number of each owner's spouse who
17.10occupies the property. The application must be signed by each owner who occupies the
17.11property and by each owner's spouse who occupies the property, or, in the case of property
17.12that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
17.13    If a property owner occupies a homestead, the property owner's spouse may not
17.14claim another property as a homestead unless the property owner and the property owner's
17.15spouse file with the assessor an affidavit or other proof required by the assessor stating that
17.16the property qualifies as a homestead under subdivision 1, paragraph (e).
17.17    Owners or spouses occupying residences owned by their spouses and previously
17.18occupied with the other spouse, either of whom fail to include the other spouse's name
17.19and Social Security number on the homestead application or provide the affidavits or
17.20other proof requested, will be deemed to have elected to receive only partial homestead
17.21treatment of their residence. The remainder of the residence will be classified as
17.22nonhomestead residential. When an owner or spouse's name and Social Security number
17.23appear on homestead applications for two separate residences and only one application is
17.24signed, the owner or spouse will be deemed to have elected to homestead the residence for
17.25which the application was signed.
17.26    The Social Security numbers, state or federal tax returns or tax return information,
17.27including the federal income tax schedule F required by this section, or affidavits or other
17.28proofs of the property owners and spouses submitted under this or another section to
17.29support a claim for a property tax homestead classification are private data on individuals
17.30as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private
17.31data may be disclosed to the commissioner of revenue, or, for purposes of proceeding
17.32under the Revenue Recapture Act to recover personal property taxes owing, to the county
17.33treasurer.
17.34    (d) If residential real estate is occupied and used for purposes of a homestead by a
17.35relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
17.36order for the property to receive homestead status, a homestead application must be filed
18.1with the assessor. The Social Security number of each relative and spouse of a relative
18.2occupying the property shall be required on the homestead application filed under this
18.3subdivision. If a different relative of the owner subsequently occupies the property, the
18.4owner of the property must notify the assessor within 30 days of the change in occupancy.
18.5The Social Security number of a relative or relative's spouse occupying the property
18.6is private data on individuals as defined by section 13.02, subdivision 12, but may be
18.7disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
18.8Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
18.9    (e) The homestead application shall also notify the property owners that the
18.10application filed under this section will not be mailed annually and that if the property
18.11is granted homestead status for any assessment year, that same property shall remain
18.12classified as homestead until the property is sold or transferred to another person, or
18.13the owners, the spouse of the owner, or the relatives no longer use the property as their
18.14homestead. Upon the sale or transfer of the homestead property, a certificate of value must
18.15be timely filed with the county auditor as provided under section 272.115. Failure to
18.16notify the assessor within 30 days that the property has been sold, transferred, or that the
18.17owner, the spouse of the owner, or the relative is no longer occupying the property as a
18.18homestead, shall result in the penalty provided under this subdivision and the property
18.19will lose its current homestead status.
18.20    (f) If the homestead application is not returned within 30 days, the county will send a
18.21second application to the present owners of record. The notice of proposed property taxes
18.22prepared under section 275.065, subdivision 3, shall reflect the property's classification. If
18.23a homestead application has not been filed with the county by December 15, the assessor
18.24shall classify the property as nonhomestead for the current assessment year for taxes
18.25payable in the following year, provided that the owner may be entitled to receive the
18.26homestead classification by proper application under section 375.192.
18.27    (g) At the request of the commissioner, each county must give the commissioner a
18.28list that includes the name and Social Security number of each occupant of homestead
18.29property who is the property owner, property owner's spouse, qualifying relative of a
18.30property owner, or a spouse of a qualifying relative. The commissioner shall use the
18.31information provided on the lists as appropriate under the law, including for the detection
18.32of improper claims by owners, or relatives of owners, under chapter 290A.
18.33    (h) If the commissioner finds that a property owner may be claiming a fraudulent
18.34homestead, the commissioner shall notify the appropriate counties. Within 90 days of
18.35the notification, the county assessor shall investigate to determine if the homestead
18.36classification was properly claimed. If the property owner does not qualify, the county
19.1assessor shall notify the county auditor who will determine the amount of homestead
19.2benefits that had been improperly allowed. For the purpose of this section, "homestead
19.3benefits" means the tax reduction resulting from the classification as a homestead and the
19.4homestead market value exclusion under section 273.13, the taconite homestead credit
19.5under section 273.135, the residential homestead and agricultural homestead credits credit
19.6under section 273.1384, and the supplemental homestead credit under section 273.1391.
19.7    The county auditor shall send a notice to the person who owned the affected property
19.8at the time the homestead application related to the improper homestead was filed,
19.9demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
19.10of the homestead benefits. The person notified may appeal the county's determination
19.11by serving copies of a petition for review with county officials as provided in section
19.12278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
19.13Court within 60 days of the date of the notice from the county. Procedurally, the appeal
19.14is governed by the provisions in chapter 271 which apply to the appeal of a property tax
19.15assessment or levy, but without requiring any prepayment of the amount in controversy. If
19.16the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
19.17has been filed, the county auditor shall certify the amount of taxes and penalty to the county
19.18treasurer. The county treasurer will add interest to the unpaid homestead benefits and
19.19penalty amounts at the rate provided in section 279.03 for real property taxes becoming
19.20delinquent in the calendar year during which the amount remains unpaid. Interest may be
19.21assessed for the period beginning 60 days after demand for payment was made.
19.22    If the person notified is the current owner of the property, the treasurer may add the
19.23total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
19.24otherwise payable on the property by including the amounts on the property tax statements
19.25under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
19.26valorem taxes shall include interest accrued through December 31 of the year preceding
19.27the taxes payable year for which the amounts are first added. These amounts, when added
19.28to the property tax statement, become subject to all the laws for the enforcement of real or
19.29personal property taxes for that year, and for any subsequent year.
19.30    If the person notified is not the current owner of the property, the treasurer may
19.31collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
19.32the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
19.33of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
19.34tax obligations of the person who owned the property at the time the application related
19.35to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
19.36of personal liability for the homestead benefits, penalty, interest, and costs, and instead
20.1extend those amounts on the tax lists against the property as provided in this paragraph
20.2to the extent that the current owner agrees in writing. On all demands, billings, property
20.3tax statements, and related correspondence, the county must list and state separately the
20.4amounts of homestead benefits, penalty, interest and costs being demanded, billed or
20.5assessed.
20.6    (i) Any amount of homestead benefits recovered by the county from the property
20.7owner shall be distributed to the county, city or town, and school district where the
20.8property is located in the same proportion that each taxing district's levy was to the total
20.9of the three taxing districts' levy for the current year. Any amount recovered attributable
20.10to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
20.11deposited in the taconite property tax relief account. Any amount recovered that is
20.12attributable to supplemental homestead credit is to be transmitted to the commissioner of
20.13revenue for deposit in the general fund of the state treasury. The total amount of penalty
20.14collected must be deposited in the county general fund.
20.15    (j) If a property owner has applied for more than one homestead and the county
20.16assessors cannot determine which property should be classified as homestead, the county
20.17assessors will refer the information to the commissioner. The commissioner shall make
20.18the determination and notify the counties within 60 days.
20.19    (k) In addition to lists of homestead properties, the commissioner may ask the
20.20counties to furnish lists of all properties and the record owners. The Social Security
20.21numbers and federal identification numbers that are maintained by a county or city
20.22assessor for property tax administration purposes, and that may appear on the lists retain
20.23their classification as private or nonpublic data; but may be viewed, accessed, and used by
20.24the county auditor or treasurer of the same county for the limited purpose of assisting the
20.25commissioner in the preparation of microdata samples under section 270C.12.
20.26    (l) On or before April 30 each year beginning in 2007, each county must provide the
20.27commissioner with the following data for each parcel of homestead property by electronic
20.28means as defined in section 289A.02, subdivision 8:
20.29    (i) the property identification number assigned to the parcel for purposes of taxes
20.30payable in the current year;
20.31    (ii) the name and Social Security number of each occupant of homestead property
20.32who is the property owner, property owner's spouse, qualifying relative of a property
20.33owner, or spouse of a qualifying relative;
20.34    (iii) the classification of the property under section 273.13 for taxes payable in the
20.35current year and in the prior year;
21.1    (iv) an indication of whether the property was classified as a homestead for taxes
21.2payable in the current year because of occupancy by a relative of the owner or by a
21.3spouse of a relative;
21.4    (v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
21.5current year and the prior year;
21.6    (vi) the market value of improvements to the property first assessed for tax purposes
21.7for taxes payable in the current year;
21.8    (vii) the assessor's estimated market value assigned to the property for taxes payable
21.9in the current year and the prior year;
21.10    (viii) the taxable market value assigned to the property for taxes payable in the
21.11current year and the prior year;
21.12    (ix) whether there are delinquent property taxes owing on the homestead;
21.13    (x) the unique taxing district in which the property is located; and
21.14    (xi) such other information as the commissioner decides is necessary.
21.15    The commissioner shall use the information provided on the lists as appropriate
21.16under the law, including for the detection of improper claims by owners, or relatives
21.17of owners, under chapter 290A.
21.18EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
21.19thereafter.

21.20    Sec. 29. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:
21.21    Subd. 21b. Net tax capacity. (a) Gross tax capacity means the product of the
21.22appropriate gross class rates in this section and market values.
21.23(b) Net tax capacity means the product of the appropriate net class rates in this
21.24section and taxable market values.
21.25EFFECTIVE DATE.This section is effective the day following final enactment.

21.26    Sec. 30. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
21.27    Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each
21.28taxing district within each unique taxing jurisdiction for taxes payable in the prior year
21.29shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
21.30taxes payable in the year for which aid is being computed, to (2) its tax capacity using
21.31the class rates for taxes payable in the year prior to that for which aid is being computed,
21.32both based upon taxable market values for taxes payable in the year prior to that for which
21.33aid is being computed. If the commissioner determines that insufficient information is
22.1available to reasonably and timely calculate the numerator in this ratio for the first taxes
22.2payable year that a class rate change or new class rate is effective, the commissioner shall
22.3omit the effects of that class rate change or new class rate when calculating this ratio for
22.4aid payable in that taxes payable year. For aid payable in the year following a year for
22.5which such omission was made, the commissioner shall use in the denominator for the
22.6class that was changed or created, the tax capacity for taxes payable two years prior to that
22.7in which the aid is payable, based on taxable market values for taxes payable in the year
22.8prior to that for which aid is being computed.

22.9    Sec. 31. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:
22.10    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
22.11class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1)
22.12the property is located in a border city that has an enterprise zone designated pursuant
22.13to section 469.168, subdivision 4; (2) the property is located in a city with a population
22.14greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the
22.15city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city
22.16in another state; and (4) the adjacent city in the other state has a population of greater than
22.175,000 and less than 75,000 according to the 1980 decennial census.
22.18    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
22.19property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a
22.20and class 3b property to 2.3 percent of taxable market value.
22.21    (c) The county auditor shall annually certify the costs of the credits to the
22.22Department of Revenue. The department shall reimburse local governments for the
22.23property taxes forgone as the result of the credits in proportion to their total levies.

22.24    Sec. 32. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:
22.25    Subdivision 1. Determination of levy limit. The property tax levied for any
22.26purpose under a special law that is not codified in Minnesota Statutes or a city charter
22.27provision and that is subject to a mill rate limitation imposed by the special law or city
22.28charter provision, excluding levies subject to mill rate limitations that use adjusted
22.29assessed values determined by the commissioner of revenue under section 124.2131, must
22.30not exceed the following amount for the years specified:
22.31(a) for taxes payable in 1988, the product of the applicable mill rate limitation
22.32imposed by special law or city charter provision multiplied by the total assessed valuation
22.33of all taxable property subject to the tax as adjusted by the provisions of Minnesota
22.34Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
23.1(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
23.2the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
23.3market valuation changes equal to the assessment year 1988 total market valuation of all
23.4taxable property subject to the tax divided by the assessment year 1987 total market
23.5valuation of all taxable property subject to the tax; and
23.6(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
23.7tax levy limitation for the previous year determined pursuant to this subdivision multiplied
23.8by (2) an index for market valuation changes equal to the total market valuation of all
23.9taxable property subject to the tax for the current assessment year divided by the total
23.10market valuation of all taxable property subject to the tax for the previous assessment year.
23.11For the purpose of determining the property tax levy limitation for the taxes payable
23.12year 1988 2013 and subsequent years under this subdivision, "total market valuation"
23.13means the total estimated market valuation value of all taxable property subject to the
23.14tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax
23.15increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)
23.16as provided under section 273.032.

23.17    Sec. 33. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:
23.18    Subd. 2. Correction of levy amount. The difference between the correct levy and
23.19the erroneous levy shall be added to the township levy for the subsequent levy year;
23.20provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated
23.21market value, the excess shall be added to the township levy for the second and later
23.22subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
23.23estimated market value in any year, until the full amount of the difference has been levied.
23.24The funds collected from the corrected levies shall be used to reimburse the county for the
23.25payment required by subdivision 1.

23.26    Sec. 34. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:
23.27    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the
23.28adjusted levy limit base is equal to the levy limit base computed under subdivision 2
23.29or section 275.72, multiplied by:
23.30    (1) one plus the percentage growth in the implicit price deflator, but the percentage
23.31shall not be less than zero or exceed 3.9 percent;
23.32    (2) one plus a percentage equal to 50 percent of the percentage increase in the number
23.33of households, if any, for the most recent 12-month period for which data is available; and
24.1    (3) one plus a percentage equal to 50 percent of the percentage increase in the
24.2taxable estimated market value of the jurisdiction due to new construction of class 3
24.3property, as defined in section 273.13, subdivision 4, except for state-assessed utility and
24.4railroad property, for the most recent year for which data is available.

24.5    Sec. 35. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is
24.6amended to read:
24.7    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
24.8printing of the tax statements. The commissioner of revenue shall prescribe the form of
24.9the property tax statement and its contents. The tax statement must not state or imply
24.10that property tax credits are paid by the state of Minnesota. The statement must contain
24.11a tabulated statement of the dollar amount due to each taxing authority and the amount
24.12of the state tax from the parcel of real property for which a particular tax statement is
24.13prepared. The dollar amounts attributable to the county, the state tax, the voter approved
24.14school tax, the other local school tax, the township or municipality, and the total of
24.15the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
24.16paragraph (i), must be separately stated. The amounts due all other special taxing districts,
24.17if any, may be aggregated except that any levies made by the regional rail authorities in the
24.18county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
24.19398A shall be listed on a separate line directly under the appropriate county's levy. If the
24.20county levy under this paragraph includes an amount for a lake improvement district as
24.21defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
24.22must be separately stated from the remaining county levy amount. In the case of Ramsey
24.23County, if the county levy under this paragraph includes an amount for public library
24.24service under section 134.07, the amount attributable for that purpose may be separated
24.25from the remaining county levy amount. The amount of the tax on homesteads qualifying
24.26under the senior citizens' property tax deferral program under chapter 290B is the total
24.27amount of property tax before subtraction of the deferred property tax amount. The
24.28amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any,
24.29must also be separately stated. The dollar amounts, including the dollar amount of any
24.30special assessments, may be rounded to the nearest even whole dollar. For purposes of this
24.31section whole odd-numbered dollars may be adjusted to the next higher even-numbered
24.32dollar. The amount of market value excluded under section 273.11, subdivision 16, if any,
24.33must also be listed on the tax statement.
25.1    (b) The property tax statements for manufactured homes and sectional structures
25.2taxed as personal property shall contain the same information that is required on the
25.3tax statements for real property.
25.4    (c) Real and personal property tax statements must contain the following information
25.5in the order given in this paragraph. The information must contain the current year tax
25.6information in the right column with the corresponding information for the previous year
25.7in a column on the left:
25.8    (1) the property's estimated market value under section 273.11, subdivision 1;
25.9(2) the property's homestead market value exclusion under section 273.13,
25.10subdivision 35;
25.11    (3) the property's taxable market value after reductions under sections 273.11,
25.12subdivisions 1a and 16, and 273.13, subdivision 35 section 272.03, subdivision 15;
25.13    (4) the property's gross tax, before credits;
25.14    (5) for homestead agricultural properties, the credit under section 273.1384;
25.15    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
25.16273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
25.17credit received under section 273.135 must be separately stated and identified as "taconite
25.18tax relief"; and
25.19    (7) the net tax payable in the manner required in paragraph (a).
25.20    (d) If the county uses envelopes for mailing property tax statements and if the county
25.21agrees, a taxing district may include a notice with the property tax statement notifying
25.22taxpayers when the taxing district will begin its budget deliberations for the current
25.23year, and encouraging taxpayers to attend the hearings. If the county allows notices to
25.24be included in the envelope containing the property tax statement, and if more than
25.25one taxing district relative to a given property decides to include a notice with the tax
25.26statement, the county treasurer or auditor must coordinate the process and may combine
25.27the information on a single announcement.

25.28    Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:
25.29    Subd. 10. Adjusted market value. "Adjusted market value" of real and personal
25.30property within a municipality means the assessor's estimated taxable market value,
25.31as defined in section 272.03, of all real and personal property, including the value of
25.32manufactured housing, within the municipality. For purposes of sections 276A.01 to
25.33276A.09, the commissioner of revenue shall annually make determinations and reports
25.34with respect to each municipality which are comparable to those it makes for school
25.35districts, adjusted for sales ratios in a manner similar to the adjustments made to city and
26.1town net tax capacities under section 127A.48, subdivisions 1 to 6, in the same manner
26.2and at the same times prescribed by the subdivision. The commissioner of revenue shall
26.3annually determine, for each municipality, information comparable to that required by
26.4section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes
26.5available. The commissioner of revenue shall then compute the equalized market value of
26.6property within each municipality.
26.7EFFECTIVE DATE.This section is effective the day following final enactment.

26.8    Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:
26.9    Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
26.10adjusted market value, determined as of January 2 of any year, divided by its population,
26.11determined as of a date in the same year.

26.12    Sec. 38. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:
26.13    Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities
26.14means the sum of the valuations adjusted market values of all municipalities, determined
26.15as of January 2 of any year, divided by the sum of their populations, determined as of
26.16a date in the same year.

26.17    Sec. 39. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:
26.18    Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of
26.19real and personal property multiplied by its net tax capacity rates in section 273.13.

26.20    Sec. 40. Minnesota Statutes 2010, section 287.08, is amended to read:
26.21287.08 TAX, HOW PAYABLE; RECEIPTS.
26.22    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of
26.23any county in this state in which the real property or some part is located at or before
26.24the time of filing the mortgage for record. The treasurer shall endorse receipt on the
26.25mortgage and the receipt is conclusive proof that the tax has been paid in the amount
26.26stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
26.27form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
26.28mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
26.29registration tax." In either case the receipt must be signed by the treasurer. In case the
26.30treasurer is unable to determine whether a claim of exemption should be allowed, the tax
26.31must be paid as in the case of a taxable mortgage. For documents submitted electronically,
27.1the endorsements and tax amount shall be affixed electronically and no signature by the
27.2treasurer will be required. The actual payment method must be arranged in advance
27.3between the submitter and the receiving county.
27.4    (b) The county treasurer may refund in whole or in part any mortgage registry tax
27.5overpayment if a written application by the taxpayer is submitted to the county treasurer
27.6within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
27.7of the application, the taxpayer may bring an action in Tax Court in the county in which
27.8the tax was paid at any time after the expiration of six months from the time that the
27.9application was submitted. A denial of refund may be appealed within 60 days from
27.10the date of the denial by bringing an action in Tax Court in the county in which the tax
27.11was paid. The action is commenced by the serving of a petition for relief on the county
27.12treasurer, and by filing a copy with the court. The county attorney shall defend the action.
27.13The county treasurer shall notify the treasurer of each county that has or would receive a
27.14portion of the tax as paid.
27.15    (c) If the county treasurer determines a refund should be paid, or if a refund is
27.16ordered by the court, the county treasurer of each county that actually received a portion
27.17of the tax shall immediately pay a proportionate share of three percent of the refund
27.18using any available county funds. The county treasurer of each county that received, or
27.19would have received, a portion of the tax shall also pay their county's proportionate share
27.20of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
27.21following month using solely the mortgage registry tax funds that would be paid to the
27.22commissioner of revenue on that date under section 287.12. If the funds on hand under
27.23this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
27.24county treasurer of the county in which the action was brought shall file a claim with the
27.25commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of
27.26the refund, and shall pay over the remaining portion upon receipt of a warrant from the
27.27state issued pursuant to the claim.
27.28    (d) When any mortgage covers real property located in more than one county in this
27.29state the total tax must be paid to the treasurer of the county where the mortgage is first
27.30presented for recording, and the payment must be receipted as provided in paragraph
27.31(a). If the principal debt or obligation secured by such a multiple county mortgage
27.32exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
27.33the county treasurer receiving it, on or before the 20th day of each month after receipt,
27.34to the county or counties entitled in the ratio that the estimated market value of the real
27.35property covered by the mortgage in each county bears to the estimated market value of
27.36all the real property in this state described in the mortgage. In making the division and
28.1payment the county treasurer shall send a statement giving the description of the real
28.2property described in the mortgage and the estimated market value of the part located in
28.3each county. For this purpose, the treasurer of any county may require the treasurer of
28.4any other county to certify to the former the estimated market valuation value of any tract
28.5of real property in any mortgage.
28.6    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The
28.7mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
28.8mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
28.9the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
28.10amount of the tax collected for that purpose and the mortgagor is relieved of any further
28.11obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

28.12    Sec. 41. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:
28.13    Subdivision 1. Real property outside county. If any taxable deed or instrument
28.14describes any real property located in more than one county in this state, the total tax must
28.15be paid to the treasurer of the county where the document is first presented for recording,
28.16and the payment must be receipted as provided in section 287.08. If the net consideration
28.17exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
28.18county treasurer receiving it, on or before the 20th day of each month after receipt, to
28.19the county or counties entitled in the ratio which the estimated market value of the real
28.20property covered by the document in each county bears to the estimated market value of
28.21all the real property in this state described in the document. In making the division and
28.22payment the county treasurer shall send a statement to the other involved counties giving
28.23the description of the real property described in the document and the estimated market
28.24value of the part located in each county. The treasurer of any county may require the
28.25treasurer of any other county to certify to the former the estimated market valuation value
28.26of any parcel of real property for this purpose.

28.27    Sec. 42. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:
28.28    Subd. 2. Cash flow funding requirement. If the executive director determines that
28.29an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
28.30insufficient assets to meet the service pensions determined payable from the account,
28.31the executive director shall certify the amount of the potential service pension shortfall
28.32to the municipality or municipalities and the municipality or municipalities shall make
28.33an additional employer contribution to the account within ten days of the certification.
28.34If more than one municipality is associated with the account, unless the municipalities
29.1agree to a different allocation, the municipalities shall allocate the additional employer
29.2contribution one-half in proportion to the population of each municipality and one-half in
29.3proportion to the estimated market value of the property of each municipality.

29.4    Sec. 43. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:
29.5    Subd. 4. Major purchases: notice, petition, election. Before buying anything
29.6under subdivision 2 that costs more than 0.24177 percent of the estimated market value of
29.7the town, the town must follow this subdivision.
29.8The town must publish in its official newspaper the board's resolution to pay for the
29.9property over time. Then a petition for an election on the contract may be filed with the
29.10clerk. The petition must be filed within ten days after the resolution is published. To
29.11require the election the petition must be signed by a number of voters equal to ten percent
29.12of the voters at the last regular town election. The contract then must be approved by a
29.13majority of those voting on the question. The question may be voted on at a regular
29.14or special election.

29.15    Sec. 44. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:
29.16    Subdivision 1. Certificates of indebtedness. The town board may issue certificates
29.17of indebtedness within the debt limits for a town purpose otherwise authorized by law.
29.18The certificates shall be payable in not more than ten years and be issued on the terms and
29.19in the manner as the board may determine. If the amount of the certificates to be issued
29.20exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
29.21for at least ten days after publication in a newspaper of general circulation in the town of
29.22the board's resolution determining to issue them. If within that time, a petition asking for
29.23an election on the proposition signed by voters equal to ten percent of the number of voters
29.24at the last regular town election is filed with the clerk, the certificates shall not be issued
29.25until their issuance has been approved by a majority of the votes cast on the question at
29.26a regular or special election. A tax levy shall be made to pay the principal and interest
29.27on the certificates as in the case of bonds.

29.28    Sec. 45. Minnesota Statutes 2010, section 366.27, is amended to read:
29.29366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
29.30The town board of any town in this state having therein a platted portion on
29.31which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
29.32association is located may each year levy a tax not to exceed 0.00806 percent of taxable
29.33estimated market value for the benefit of the relief association.

30.1    Sec. 46. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:
30.2    Subd. 23. Financing purchase of certain equipment. The town board may issue
30.3certificates of indebtedness within debt limits to purchase fire or police equipment or
30.4ambulance equipment or street construction or maintenance equipment. The certificates
30.5shall be payable in not more than five years and be issued on terms and in the manner
30.6as the board may determine. If the amount of the certificates to be issued to finance a
30.7purchase exceeds 0.24177 percent of the estimated market value of the town, excluding
30.8money and credits, they shall not be issued for at least ten days after publication in the
30.9official newspaper of a town board resolution determining to issue them. If before the end
30.10of that time, a petition asking for an election on the proposition signed by voters equal
30.11to ten percent of the number of voters at the last regular town election is filed with the
30.12clerk, the certificates shall not be issued until the proposition of their issuance has been
30.13approved by a majority of the votes cast on the question at a regular or special election.
30.14A tax levy shall be made for the payment of the principal and interest on the certificates
30.15as in the case of bonds.

30.16    Sec. 47. Minnesota Statutes 2010, section 368.47, is amended to read:
30.17368.47 TOWNS MAY BE DISSOLVED.
30.18(1) When the voters residing within a town have failed to elect any town officials for
30.19more than ten years continuously;
30.20(2) when a town has failed for a period of ten years to exercise any of the powers
30.21and functions of a town;
30.22(3) when the estimated market value of a town drops to less than $165,000;
30.23(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
30.24unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
30.2512 percent of its market value; or
30.26(5) when the state or federal government has acquired title to 50 percent of the
30.27real estate of a town,
30.28which facts, or any of them, may be found and determined by the resolution of the county
30.29board of the county in which the town is located, according to the official records in the
30.30office of the county auditor, the county board by resolution may declare the town, naming
30.31it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
30.32In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
30.33of the town shall express their approval or disapproval. The town clerk shall, upon a
30.34petition signed by a majority of the registered voters of the town, filed with the clerk at
30.35least 60 days before a regular or special town election, give notice at the same time and
31.1in the same manner of the election that the question of dissolution of the town will be
31.2submitted for determination at the election. At the election the question shall be voted
31.3upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
31.4dissolution." The ballot shall be deposited in a separate ballot box and the result of the
31.5voting canvassed, certified, and returned in the same manner and at the same time as
31.6other facts and returns of the election. If a majority of the votes cast at the election are
31.7for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
31.8are against dissolution, the town shall not be dissolved.
31.9When a town is dissolved under sections 368.47 to 368.49 the county shall acquire
31.10title to any telephone company or other business conducted by the town. The business
31.11shall be operated by the board of county commissioners until it can be sold. The
31.12subscribers or patrons of the business shall have the first opportunity of purchase. If the
31.13town has any outstanding indebtedness chargeable to the business, the county auditor shall
31.14levy a tax against the property situated in the dissolved town to pay the indebtedness
31.15as it becomes due.

31.16    Sec. 48. Minnesota Statutes 2010, section 370.01, is amended to read:
31.17370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
31.18The boundaries of counties may be changed by taking territory from a county and
31.19attaching it to an adjoining county, and new counties may be established out of territory of
31.20one or more existing counties. A new county shall contain at least 400 square miles and
31.21have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated
31.22market value of at least 35 percent of (i) the total taxable estimated market value of the
31.23existing county, or (ii) the average total taxable estimated market value of the existing
31.24counties, included in the proposition. The determination of the taxable estimated market
31.25value of a county must be made by the commissioner of revenue. An existing county shall
31.26not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
31.27total taxable estimated market value of less than that required of a new county.
31.28No change in the boundaries of any county having an area of more than 2,500 square
31.29miles, whether by the creation of a new county, or otherwise, shall detach from the existing
31.30county any territory within 12 miles of the county seat.

31.31    Sec. 49. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
31.32    Subdivision 1. Definitions. For purposes of this section, the following terms have
31.33the meanings given.
31.34(a) "Bonds" means an obligation as defined under section 475.51.
32.1(b) "Capital improvement" means acquisition or betterment of public lands,
32.2buildings, or other improvements within the county for the purpose of a county courthouse,
32.3administrative building, health or social service facility, correctional facility, jail, law
32.4enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
32.5bridges, and the acquisition of development rights in the form of conservation easements
32.6under chapter 84C. An improvement must have an expected useful life of five years or
32.7more to qualify. "Capital improvement" does not include a recreation or sports facility
32.8building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
32.9swimming pool, exercise room or health spa), unless the building is part of an outdoor
32.10park facility and is incidental to the primary purpose of outdoor recreation.
32.11(c) "Metropolitan county" means a county located in the seven-county metropolitan
32.12area as defined in section 473.121 or a county with a population of 90,000 or more.
32.13(d) "Population" means the population established by the most recent of the
32.14following (determined as of the date the resolution authorizing the bonds was adopted):
32.15(1) the federal decennial census,
32.16(2) a special census conducted under contract by the United States Bureau of the
32.17Census, or
32.18(3) a population estimate made either by the Metropolitan Council or by the state
32.19demographer under section 4A.02.
32.20(e) "Qualified indoor ice arena" means a facility that meets the requirements of
32.21section 373.43.
32.22(f) "Tax capacity" means total taxable market value, but does not include captured
32.23market value.

32.24    Sec. 50. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
32.25    Subd. 4. Limitations on amount. A county may not issue bonds under this section
32.26if the maximum amount of principal and interest to become due in any year on all the
32.27outstanding bonds issued pursuant to this section (including the bonds to be issued) will
32.28equal or exceed 0.12 percent of taxable the estimated market value of property in the
32.29county. Calculation of the limit must be made using the taxable estimated market value for
32.30the taxes payable year in which the obligations are issued and sold. This section does not
32.31limit the authority to issue bonds under any other special or general law.

32.32    Sec. 51. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:
32.33    Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board
32.34may appropriate from the general revenue fund to any nonprofit corporation a sum not
33.1to exceed 0.00604 percent of taxable estimated market value to provide legal assistance
33.2to persons who are unable to afford private legal counsel.

33.3    Sec. 52. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:
33.4    Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a
33.5suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
33.6amount equal to a levy of 0.04030 percent of taxable estimated market value without the
33.7approval of a majority of the voters of the county voting on the question of issuing the
33.8obligation at an election.

33.9    Sec. 53. Minnesota Statutes 2010, section 375.555, is amended to read:
33.10375.555 FUNDING.
33.11To implement the county emergency jobs program, the county board may expend
33.12an amount equal to what would be generated by a levy of 0.01209 percent of taxable
33.13estimated market value. The money to be expended may be from any available funds
33.14not otherwise earmarked.

33.15    Sec. 54. Minnesota Statutes 2010, section 383B.152, is amended to read:
33.16383B.152 BUILDING AND MAINTENANCE FUND.
33.17The county board may by resolution levy a tax to provide money which shall be kept
33.18in a fund known as the county reserve building and maintenance fund. Money in the fund
33.19shall be used solely for the construction, maintenance, and equipping of county buildings
33.20that are constructed or maintained by the board. The levy shall not be subject to any limit
33.21fixed by any other law or by any board of tax levy or other corresponding body, but shall
33.22not exceed 0.02215 percent of taxable estimated market value, less the amount required by
33.23chapter 475 to be levied in the year for the payment of the principal of and interest on all
33.24bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.

33.25    Sec. 55. Minnesota Statutes 2010, section 383B.245, is amended to read:
33.26383B.245 LIBRARY LEVY.
33.27    (a) The county board may levy a tax on the taxable property within the county to
33.28acquire, better, and construct county library buildings and branches and to pay principal
33.29and interest on bonds issued for that purpose.
33.30    (b) The county board may by resolution adopted by a five-sevenths vote issue and
33.31sell general obligation bonds of the county in the manner provided in sections 475.60 to
34.1475.73 . The bonds shall not be subject to the limitations of sections 475.51 to 475.59,
34.2but the maturity years and amounts and interest rates of each series of bonds shall be
34.3fixed so that the maximum amount of principal and interest to become due in any year,
34.4on the bonds of that series and of all outstanding series issued by or for the purposes of
34.5libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value
34.6of all taxable property in the county as last finally equalized before the issuance of the new
34.7series. When the tax levy authorized in this section is collected it shall be appropriated
34.8and credited to a debt service fund for the bonds in amounts required each year in lieu of a
34.9countywide tax levy for the debt service fund under section 475.61.

34.10    Sec. 56. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:
34.11    Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park
34.12District as set forth in its annual budget, in lieu of the levies authorized by any other
34.13special law for such purposes, the Board of Park District Commissioners may levy
34.14taxes on all the taxable property in the county and park district at a rate not exceeding
34.150.03224 percent of estimated market value. Notwithstanding section 398.16, on or before
34.16October 1 of each year, after public hearing, the Board of Park District Commissioners
34.17shall adopt a budget for the ensuing year and shall determine the total amount necessary
34.18to be raised from ad valorem tax levies to meet its budget. The Board of Park District
34.19Commissioners shall submit the budget to the county board. The county board may veto
34.20or modify an item contained in the budget. If the county board determines to veto or to
34.21modify an item in the budget, it must, within 15 days after the budget was submitted by
34.22the district board, state in writing the specific reasons for its objection to the item vetoed
34.23or the reason for the modification. The Park District Board, after consideration of the
34.24county board's objections and proposed modifications, may reapprove a vetoed item or the
34.25original version of an item with respect to which a modification has been proposed, by a
34.26two-thirds majority. If the district board does not reapprove a vetoed item, the item shall
34.27be deleted from the budget. If the district board does not reapprove the original version
34.28of a modified item, the item shall be included in the budget as modified by the county
34.29board. After adoption of the final budget and no later than October 1, the superintendent
34.30of the park district shall certify to the office of the Hennepin County director of tax and
34.31public records exercising the functions of the county auditor the total amount to be raised
34.32from ad valorem tax levies to meet its budget for the ensuing year. The director of tax
34.33and public records shall add the amount of any levy certified by the district to other tax
34.34levies on the property of the county within the district for collection by the director of tax
34.35and public records with other taxes. When collected, the director shall make settlement of
35.1such taxes with the district in the same manner as other taxes are distributed to the other
35.2political subdivisions in Hennepin County.

35.3    Sec. 57. Minnesota Statutes 2010, section 383E.20, is amended to read:
35.4383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
35.5    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
35.6and sell general obligation bonds of the county in the manner provided in chapter 475 to
35.7acquire, better, and construct county library buildings. The bonds shall not be subject to the
35.8requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
35.9rates of each series of bonds shall be fixed so that the maximum amount of principal and
35.10interest to become due in any year, on the bonds of that series and of all outstanding series
35.11issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
35.12of the taxable estimated market value of all taxable property in the county, excluding any
35.13taxable property taxed by any city for the support of any free public library. When the tax
35.14levy authorized in this section is collected, it shall be appropriated and credited to a debt
35.15service fund for the bonds. The tax levy for the debt service fund under section 475.61
35.16shall be reduced by the amount available or reasonably anticipated to be available in the
35.17fund to make payments otherwise payable from the levy pursuant to section 475.61.

35.18    Sec. 58. Minnesota Statutes 2010, section 383E.23, is amended to read:
35.19383E.23 LIBRARY TAX.
35.20The Anoka County Board may levy a tax of not more than .01 percent of the taxable
35.21estimated market value of taxable property located within the county excluding any
35.22taxable property taxed by any city for the support of any free public library, to acquire,
35.23better, and construct county library buildings and to pay principal and interest on bonds
35.24issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
35.25on levies provided by section 373.40, or other law.

35.26    Sec. 59. Minnesota Statutes 2010, section 385.31, is amended to read:
35.27385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
35.28When any order or warrant drawn on the treasurer is presented for payment, if there
35.29is money in the treasury for that purpose, the county treasurer shall redeem the same, and
35.30write across the entire face thereof the word "redeemed," the date of the redemption, and
35.31the treasurer's official signature. If there is not sufficient funds in the proper accounts to
35.32pay such orders they shall be numbered and registered in their order of presentation,
36.1and proper endorsement thereof shall be made on such orders and they shall be entitled
36.2to payment in like order. Such orders shall bear interest at not to exceed the rate of six
36.3percent per annum from such date of presentment. The treasurer, as soon as there is
36.4sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
36.5payment of the orders so presented and registered, and, if entitled to interest, issue to the
36.6original holder a notice that interest will cease in 30 days from the date of such notice; and,
36.7if orders thus entitled to priority of payment are not then presented, the next in order of
36.8registry may be paid until such orders are presented. No interest shall be paid on any order,
36.9except upon a warrant drawn by the county auditor for that purpose, giving the number
36.10and the date of the order on account of which the interest warrant is drawn. In any county
36.11in this state now or hereafter having a an estimated market value of all taxable property,
36.12exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in
36.13order to save payment of interest on county warrants drawn upon a fund in which there
36.14shall be temporarily insufficient money in the treasury to redeem the same, may borrow
36.15temporarily from any other fund in the county treasury in which there is a sufficient balance
36.16to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
36.17and may pay such warrants out of such funds. Any such money so transferred and used in
36.18redeeming such county warrants shall be returned to the fund from which drawn as soon
36.19as money shall come in to the credit of such fund on which any such warrant was drawn
36.20and paid as aforesaid. Any county operating on a cash basis may use a combined form of
36.21warrant or order and check, which, when signed by the chair of the county board and by
36.22the auditor, is an order or warrant for the payment of the claim, and, when countersigned
36.23by the county treasurer, is a check for the payment of the amount thereof.

36.24    Sec. 60. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:
36.25    Subdivision 1. Continuation of nonconformity; limitations. Except as provided in
36.26subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
36.27or premises existing at the time of the adoption of an official control under this chapter,
36.28may be continued, although the use or occupation does not conform to the official control.
36.29If the nonconformity or occupancy is discontinued for a period of more than one year, or
36.30any nonconforming building or structure is destroyed by fire or other peril to the extent of
36.3150 percent of its estimated market value, any subsequent use or occupancy of the land or
36.32premises shall be a conforming use or occupancy.

36.33    Sec. 61. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:
37.1    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall
37.2give six weeks' published notice in all municipalities in the region. If a number of voters
37.3in the region equal to five percent of those who voted for candidates for governor at the
37.4last gubernatorial election present a petition within nine weeks of the first published notice
37.5to the secretary of state requesting that the matter be submitted to popular vote, it shall be
37.6submitted at the next general election. The question prepared shall be:
37.7"Shall the regional rail authority have the power to impose a property tax?

37.8		Yes .....
37.9		No ..... "

37.10If a majority of those voting on the question approve or if no petition is presented
37.11within the prescribed time the authority may levy a tax at any annual rate not exceeding
37.120.04835 percent of estimated market value of all taxable property situated within the
37.13municipality or municipalities named in its organization resolution. Its recording officer
37.14shall file, on or before September 15, in the office of the county auditor of each county
37.15in which territory under the jurisdiction of the authority is located a certified copy of the
37.16board of commissioners' resolution levying the tax, and each county auditor shall assess
37.17and extend upon the tax rolls of each municipality named in the organization resolution the
37.18portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
37.19taxable property in that municipality bears to the net tax capacity of taxable property in
37.20all municipalities named in the organization resolution. Collections of the tax shall be
37.21remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
37.22the amount levied for light rail transit purposes under this subdivision shall not exceed 75
37.23percent of the amount levied in 1990 for light rail transit purposes under this subdivision.

37.24    Sec. 62. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:
37.25    Subd. 3. Leasing. (a) A county or joint powers board of a group of counties
37.26which acquires or constructs and equips or improves facilities under this chapter may,
37.27with the approval of the board of county commissioners of each county, enter into a
37.28lease agreement with a city situated within any of the counties, or a county housing and
37.29redevelopment authority established under chapter 469 or any special law. Under the lease
37.30agreement, the city or county housing and redevelopment authority shall:
37.31(1) construct or acquire and equip or improve a facility in accordance with plans
37.32prepared by or at the request of a county or joint powers board of the group of counties
37.33and approved by the commissioner of corrections; and
37.34(2) finance the facility by the issuance of revenue bonds.
38.1(b) The county or joint powers board of a group of counties may lease the facility
38.2site, improvements, and equipment for a term upon rental sufficient to produce revenue
38.3for the prompt payment of the revenue bonds and all interest accruing on them. Upon
38.4completion of payment, the lessee shall acquire title. The real and personal property
38.5acquired for the facility constitutes a project and the lease agreement constitutes a revenue
38.6agreement as provided in sections 469.152 to 469.165. All proceedings by the city or
38.7county housing and redevelopment authority and the county or joint powers board shall be
38.8as provided in sections 469.152 to 469.165, with the following adjustments:
38.9(1) no tax may be imposed upon the property;
38.10(2) the approval of the project by the commissioner of employment and economic
38.11development is not required;
38.12(3) the Department of Corrections shall be furnished and shall record information
38.13concerning each project as it may prescribe, in lieu of reports required on other projects to
38.14the commissioner of employment and economic development;
38.15(4) the rentals required to be paid under the lease agreement shall not exceed in any
38.16year one-tenth of one percent of the estimated market value of property within the county
38.17or group of counties as last equalized before the execution of the lease agreement;
38.18(5) the county or group of counties shall provide for payment of all rentals due
38.19during the term of the lease agreement in the manner required in subdivision 4;
38.20(6) no mortgage on the facilities shall be granted for the security of the bonds, but
38.21compliance with clause (5) may be enforced as a nondiscretionary duty of the county
38.22or group of counties; and
38.23(7) the county or the joint powers board of the group of counties may sublease any
38.24part of the facilities for purposes consistent with their maintenance and operation.

38.25    Sec. 63. Minnesota Statutes 2010, section 410.32, is amended to read:
38.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
38.27    (a) Notwithstanding any contrary provision of other law or charter, a home rule
38.28charter city may, by resolution and without public referendum, issue capital notes subject
38.29to the city debt limit to purchase capital equipment.
38.30    (b) For purposes of this section, "capital equipment" means:
38.31    (1) public safety equipment, ambulance and other medical equipment, road
38.32construction and maintenance equipment, and other capital equipment; and
38.33    (2) computer hardware and software, whether bundled with machinery or equipment
38.34or unbundled.
39.1    (c) The equipment or software must have an expected useful life at least as long
39.2as the term of the notes.
39.3    (d) The notes shall be payable in not more than ten years and be issued on terms
39.4and in the manner the city determines. The total principal amount of the capital notes
39.5issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of
39.6taxable property in the city for that year.
39.7    (e) A tax levy shall be made for the payment of the principal and interest on the
39.8notes, in accordance with section 475.61, as in the case of bonds.
39.9    (f) Notes issued under this section shall require an affirmative vote of two-thirds of
39.10the governing body of the city.
39.11    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
39.12city may also issue capital notes subject to its debt limit in the manner and subject to the
39.13limitations applicable to statutory cities pursuant to section 412.301.

39.14    Sec. 64. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:
39.15    Subd. 2. Contracts. The council shall have power to make such contracts as may
39.16be deemed necessary or desirable to make effective any power possessed by the council.
39.17The city may purchase personal property through a conditional sales contract and real
39.18property through a contract for deed under which contracts the seller is confined to the
39.19remedy of recovery of the property in case of nonpayment of all or part of the purchase
39.20price, which shall be payable over a period of not to exceed five years. When the contract
39.21price of property to be purchased by contract for deed or conditional sales contract
39.22exceeds 0.24177 percent of the estimated market value of the city, the city may not enter
39.23into such a contract for at least ten days after publication in the official newspaper of a
39.24council resolution determining to purchase property by such a contract; and, if before the
39.25end of that time a petition asking for an election on the proposition signed by voters equal
39.26to ten percent of the number of voters at the last regular city election is filed with the clerk,
39.27the city may not enter into such a contract until the proposition has been approved by a
39.28majority of the votes cast on the question at a regular or special election.

39.29    Sec. 65. Minnesota Statutes 2010, section 412.301, is amended to read:
39.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
39.31    (a) The council may issue certificates of indebtedness or capital notes subject to the
39.32city debt limits to purchase capital equipment.
39.33    (b) For purposes of this section, "capital equipment" means:
40.1    (1) public safety equipment, ambulance and other medical equipment, road
40.2construction and maintenance equipment, and other capital equipment; and
40.3    (2) computer hardware and software, whether bundled with machinery or equipment
40.4or unbundled.
40.5    (c) The equipment or software must have an expected useful life at least as long as
40.6the terms of the certificates or notes.
40.7    (d) Such certificates or notes shall be payable in not more than ten years and shall be
40.8issued on such terms and in such manner as the council may determine.
40.9    (e) If the amount of the certificates or notes to be issued to finance any such purchase
40.10exceeds 0.25 percent of the estimated market value of taxable property in the city, they
40.11shall not be issued for at least ten days after publication in the official newspaper of
40.12a council resolution determining to issue them; and if before the end of that time, a
40.13petition asking for an election on the proposition signed by voters equal to ten percent
40.14of the number of voters at the last regular municipal election is filed with the clerk, such
40.15certificates or notes shall not be issued until the proposition of their issuance has been
40.16approved by a majority of the votes cast on the question at a regular or special election.
40.17    (f) A tax levy shall be made for the payment of the principal and interest on such
40.18certificates or notes, in accordance with section 475.61, as in the case of bonds.

40.19    Sec. 66. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:
40.20    Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance
40.21establishing a special service district. Only property that is classified under section 273.13
40.22and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
40.23designated on a land use plan for commercial or industrial use and located in the special
40.24service district, may be subject to the charges imposed by the city on the special service
40.25district. Other types of property may be included within the boundaries of the special
40.26service district but are not subject to the levies or charges imposed by the city on the
40.27special service district. If 50 percent or more of the estimated market value of a parcel of
40.28property is classified under section 273.13 as commercial, industrial, or vacant land zoned
40.29or designated on a land use plan for commercial or industrial use, or public utility for the
40.30current assessment year, then the entire taxable market value of the property is subject to a
40.31service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10.
40.32The ordinance shall describe with particularity the area within the city to be included in
40.33the district and the special services to be furnished in the district. The ordinance may not
40.34be adopted until after a public hearing has been held on the question. Notice of the hearing
40.35shall include the time and place of hearing, a map showing the boundaries of the proposed
41.1district, and a statement that all persons owning property in the proposed district that
41.2would be subject to a service charge will be given opportunity to be heard at the hearing.
41.3Within 30 days after adoption of the ordinance under this subdivision, the governing body
41.4shall send a copy of the ordinance to the commissioner of revenue.

41.5    Sec. 67. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:
41.6    Subd. 2. Council approval; special tax levy limitation. The council shall receive
41.7and consider the estimate required in subdivision 1 and the items of cost after notice and
41.8hearing before it or its appropriate committee as it considers necessary or expedient,
41.9and shall approve the estimate, with necessary amendments. The amounts of each item
41.10of cost estimated are then appropriated to operate, maintain, and improve the pedestrian
41.11mall during the next fiscal year. The amount of the special tax to be charged under
41.12subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market
41.13value of taxable property in the district. The council shall make any necessary adjustment
41.14in costs of operating and maintaining the district to keep the amount of the tax within
41.15this limitation.

41.16    Sec. 68. Minnesota Statutes 2010, section 447.10, is amended to read:
41.17447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
41.18The governing body of a city of the first class owning a hospital may annually levy
41.19a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
41.20taxable estimated market value.

41.21    Sec. 69. Minnesota Statutes 2010, section 450.19, is amended to read:
41.22450.19 TOURIST CAMPING GROUNDS.
41.23A home rule charter or statutory city or town may establish and maintain public
41.24tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
41.25gift, suitable lands located either within or without the corporate limits for use as public
41.26tourist camping grounds and provide for the equipment, operation, and maintenance
41.27of the same. The amount that may be expended for the maintenance, improvement, or
41.28operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
41.29percent of taxable estimated market value.

42.1    Sec. 70. Minnesota Statutes 2010, section 450.25, is amended to read:
42.2450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
42.3LEVY.
42.4After the acquisition of any museum, gallery, or school of arts or crafts, the board
42.5of park commissioners of the city in which it is located shall cause to be included in the
42.6annual tax levy upon all the taxable property of the county in which the museum, gallery,
42.7or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value.
42.8The board shall certify the levy to the county auditor and it shall be added to, and collected
42.9with and as part of, the general, real, and personal property taxes, with like penalties and
42.10interest, in case of nonpayment and default, and all provisions of law in respect to the
42.11levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
42.12respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
42.13paid to the city treasurer of the city in which is located the museum, gallery, or school
42.14of arts or crafts and credited to a fund to be known as the park museum fund, and shall
42.15be used only for the purposes specified in sections 450.23 to 450.25. Any part of the
42.16proceeds of the levy not expended for the purposes specified in section 450.24 may be
42.17used for the erection of new buildings for the same purposes.

42.18    Sec. 71. Minnesota Statutes 2010, section 458A.10, is amended to read:
42.19458A.10 PROPERTY TAX.
42.20The commission shall annually levy a tax not to exceed 0.12089 percent of estimated
42.21market value on all the taxable property in the transit area at a rate sufficient to produce
42.22an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the
42.23payment of principal and interest due on any revenue bonds issued pursuant to section
42.24458A.05 . Property taxes levied under this section shall be certified by the commission to
42.25the county auditors of the transit area, extended, assessed, and collected in the manner
42.26provided by law for the property taxes levied by the governing bodies of cities. The
42.27proceeds of the taxes levied under this section shall be remitted by the respective county
42.28treasurers to the treasurer of the commission, who shall credit the same to the funds of
42.29the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any
42.30applicable pledges or limitations on account of tax anticipation certificates or other
42.31specific purposes. At any time after making a tax levy under this section and certifying
42.32it to the county auditors, the commission may issue general obligation certificates of
42.33indebtedness in anticipation of the collection of the taxes as provided by section 412.261.

42.34    Sec. 72. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:
43.1    Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in
43.2the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
43.3limiting the amount levied in any one year for general or special purposes, the city council
43.4of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
43.5percent of taxable estimated market value, by ordinance. An ordinance fixing the levy
43.6shall take effect immediately upon its passage and approval. The proceeds of the levy
43.7shall be paid into the city treasury and deposited in the operating fund provided for in
43.8section 458A.24, subdivision 3.

43.9    Sec. 73. Minnesota Statutes 2010, section 465.04, is amended to read:
43.10465.04 ACCEPTANCE OF GIFTS.
43.11Cities of the second, third, or fourth class, having at any time a an estimated
43.12market value of not more than $41,000,000, exclusive of money and credits, as officially
43.13equalized by the commissioner of revenue, either under home rule charter or under the
43.14laws of this state, in addition to all other powers possessed by them, hereby are authorized
43.15and empowered to receive and accept gifts and donations for the use and benefit of
43.16such cities and the inhabitants thereof upon terms and conditions to be approved by the
43.17governing bodies of such cities; and such cities are authorized to comply with and perform
43.18such terms and conditions, which may include payment to the donor or donors of interest
43.19on the value of the gift at not exceeding five percent per annum payable annually or
43.20semiannually, during the remainder of the natural life or lives of such donor or donors.

43.21    Sec. 74. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:
43.22    Subd. 6. Operation area as taxing district, special tax. All of the territory
43.23included within the area of operation of any authority shall constitute a taxing district for
43.24the purpose of levying and collecting special benefit taxes as provided in this subdivision.
43.25All of the taxable property, both real and personal, within that taxing district shall be
43.26deemed to be benefited by projects to the extent of the special taxes levied under this
43.27subdivision. Subject to the consent by resolution of the governing body of the city in and
43.28for which it was created, an authority may levy a tax upon all taxable property within that
43.29taxing district. The tax shall be extended, spread, and included with and as a part of
43.30the general taxes for state, county, and municipal purposes by the county auditor, to be
43.31collected and enforced therewith, together with the penalty, interest, and costs. As the tax,
43.32including any penalties, interest, and costs, is collected by the county treasurer it shall be
43.33accumulated and kept in a separate fund to be known as the "housing and redevelopment
43.34project fund." The money in the fund shall be turned over to the authority at the same time
44.1and in the same manner that the tax collections for the city are turned over to the city, and
44.2shall be expended only for the purposes of sections 469.001 to 469.047. It shall be paid
44.3out upon vouchers signed by the chair of the authority or an authorized representative.
44.4The amount of the levy shall be an amount approved by the governing body of the city, but
44.5shall not exceed 0.0185 percent of taxable estimated market value. The authority shall
44.6each year formulate and file a budget in accordance with the budget procedure of the city
44.7in the same manner as required of executive departments of the city or, if no budgets are
44.8required to be filed, by August 1. The amount of the tax levy for the following year shall
44.9be based on that budget.

44.10    Sec. 75. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:
44.11    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
44.12general obligation of the general jurisdiction governmental unit as additional security for
44.13bonds payable from income or revenues of the project or the authority. The authority
44.14must find that the pledged revenues will equal or exceed 110 percent of the principal and
44.15interest due on the bonds for each year. The proceeds of the bonds must be used for a
44.16qualified housing development project or projects. The obligations must be issued and
44.17sold in the manner and following the procedures provided by chapter 475, except the
44.18obligations are not subject to approval by the electors, and the maturities may extend to
44.19not more than 35 years for obligations sold to finance housing for the elderly and 40 years
44.20for other obligations issued under this subdivision. The authority is the municipality for
44.21purposes of chapter 475.
44.22(b) The principal amount of the issue must be approved by the governing body of
44.23the general jurisdiction governmental unit whose general obligation is pledged. Public
44.24hearings must be held on issuance of the obligations by both the authority and the general
44.25jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
44.26than 120 days, before the sale of the obligations.
44.27(c) The maximum amount of general obligation bonds that may be issued and
44.28outstanding under this section equals the greater of (1) one-half of one percent of the
44.29taxable estimated market value of the general jurisdiction governmental unit whose
44.30general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
44.31general obligation bonds, the outstanding general obligation bonds of all cities in the
44.32county or counties issued under this subdivision must be added in calculating the limit
44.33under clause (1).
44.34(d) "General jurisdiction governmental unit" means the city in which the housing
44.35development project is located. In the case of a county or multicounty authority, the
45.1county or counties may act as the general jurisdiction governmental unit. In the case of
45.2a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
45.3taxable property in each of the counties.
45.4(e) "Qualified housing development project" means a housing development project
45.5providing housing either for the elderly or for individuals and families with incomes not
45.6greater than 80 percent of the median family income as estimated by the United States
45.7Department of Housing and Urban Development for the standard metropolitan statistical
45.8area or the nonmetropolitan county in which the project is located. The project must be
45.9owned for the term of the bonds either by the authority or by a limited partnership or other
45.10entity in which the authority or another entity under the sole control of the authority is
45.11the sole general partner and the partnership or other entity must receive (1) an allocation
45.12from the Department of Management and Budget or an entitlement issuer of tax-exempt
45.13bonding authority for the project and a preliminary determination by the Minnesota
45.14Housing Finance Agency or the applicable suballocator of tax credits that the project
45.15will qualify for four percent low-income housing tax credits or (2) a reservation of nine
45.16percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
45.17suballocator of tax credits for the project. A qualified housing development project may
45.18admit nonelderly individuals and families with higher incomes if:
45.19(1) three years have passed since initial occupancy;
45.20(2) the authority finds the project is experiencing unanticipated vacancies resulting in
45.21insufficient revenues, because of changes in population or other unforeseen circumstances
45.22that occurred after the initial finding of adequate revenues; and
45.23(3) the authority finds a tax levy or payment from general assets of the general
45.24jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
45.25income individuals or families are not admitted.
45.26(f) The authority may issue bonds to refund bonds issued under this subdivision in
45.27accordance with section 475.67. The finding of the adequacy of pledged revenues required
45.28by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
45.29issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
45.30after July 1, 1992.

45.31    Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:
45.32    Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy
45.33a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
45.34percent of taxable estimated market value. The amount levied must be paid by the city
45.35treasurer to the treasurer of the port authority, to be spent by the authority.

46.1    Sec. 77. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:
46.2    Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall
46.3replace the mandatory city levy under subdivision 4. A seaway port authority is a special
46.4taxing district under section 275.066 and may levy a tax in any year for the benefit of the
46.5seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated
46.6market value. The county auditor shall distribute the proceeds of the property tax levy to
46.7the seaway port authority.

46.8    Sec. 78. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:
46.9    Subd. 6. Discretionary city levy. Upon request of a port authority, the port
46.10authority's city may levy a tax to be spent by and for its port authority. The tax must
46.11enable the port authority to carry out efficiently and in the public interest sections 469.048
46.12to 469.068 to create and develop industrial development districts. The levy must not be
46.13more than 0.00282 percent of taxable estimated market value. The county treasurer shall
46.14pay the proceeds of the tax to the port authority treasurer. The money may be spent by
46.15the authority in performance of its duties to create and develop industrial development
46.16districts. In spending the money the authority must judge what best serves the public
46.17interest. The levy in this subdivision is in addition to the levy in subdivision 4.

46.18    Sec. 79. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:
46.19    Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in
46.20any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
46.21taxable estimated market value. The amount levied must be paid by the city treasurer to
46.22the treasurer of the authority, to be spent by the authority.

46.23    Sec. 80. Minnesota Statutes 2010, section 469.177, subdivision 1, is amended to read:
46.24    Subdivision 1. Original net tax capacity. (a) Upon or after adoption of a tax
46.25increment financing plan, the auditor of any county in which the district is situated shall,
46.26upon request of the authority, certify the original net tax capacity of the tax increment
46.27financing district and that portion of the district overlying any subdistrict as described in
46.28the tax increment financing plan and shall certify in each year thereafter the amount by
46.29which the original net tax capacity has increased or decreased as a result of a change in tax
46.30exempt status of property within the district and any subdistrict, reduction or enlargement
46.31of the district or changes pursuant to subdivision 4. The auditor shall certify the amount
46.32within 30 days after receipt of the request and sufficient information to identify the parcels
47.1included in the district. The certification relates to the taxes payable year as provided in
47.2subdivision 6.
47.3    (b) If the classification under section 273.13 of property located in a district changes
47.4to a classification that has a different assessment ratio, the original net tax capacity of that
47.5property must be redetermined at the time when its use is changed as if the property had
47.6originally been classified in the same class in which it is classified after its use is changed.
47.7    (c) The amount to be added to the original net tax capacity of the district as a result
47.8of previously tax exempt real property within the district becoming taxable equals the net
47.9tax capacity of the real property as most recently assessed pursuant to section 273.18 or, if
47.10that assessment was made more than one year prior to the date of title transfer rendering
47.11the property taxable, the net tax capacity assessed by the assessor at the time of the
47.12transfer. If improvements are made to tax exempt property after the municipality approves
47.13the district and before the parcel becomes taxable, the assessor shall, at the request of
47.14the authority, separately assess the estimated market value of the improvements. If the
47.15property becomes taxable, the county auditor shall add to original net tax capacity, the net
47.16tax capacity of the parcel, excluding the separately assessed improvements. If substantial
47.17taxable improvements were made to a parcel after certification of the district and if the
47.18property later becomes tax exempt, in whole or part, as a result of the authority acquiring
47.19the property through foreclosure or exercise of remedies under a lease or other revenue
47.20agreement or as a result of tax forfeiture, the amount to be added to the original net tax
47.21capacity of the district as a result of the property again becoming taxable is the amount
47.22of the parcel's value that was included in original net tax capacity when the parcel was
47.23first certified. The amount to be added to the original net tax capacity of the district as a
47.24result of enlargements equals the net tax capacity of the added real property as most
47.25recently certified by the commissioner of revenue as of the date of modification of the tax
47.26increment financing plan pursuant to section 469.175, subdivision 4.
47.27    (d) If the net tax capacity of a property increases because the property no longer
47.28qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the
47.29Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan
47.30Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is
47.31improved or market value is increased after approval of the plat under section 273.11,
47.32subdivision 14 , 14a, or 14b, the increase in net tax capacity must be added to the original
47.33net tax capacity. If the net tax capacity of a property increases because the property
47.34no longer qualifies for the homestead market value exclusion under section 273.13,
47.35subdivision 35, the increase in net tax capacity must be added to the original net tax
48.1capacity if the original construction of the affected home was completed before the date
48.2the assessor certified the original net tax capacity of the district.
48.3    (e) The amount to be subtracted from the original net tax capacity of the district as a
48.4result of previously taxable real property within the district becoming tax exempt or
48.5qualifying in whole or part for an exclusion from taxable market value, or a reduction in
48.6the geographic area of the district, shall be the amount of original net tax capacity initially
48.7attributed to the property becoming tax exempt, being excluded from taxable market
48.8value, or being removed from the district. If the net tax capacity of property located within
48.9the tax increment financing district is reduced by reason of a court-ordered abatement,
48.10stipulation agreement, voluntary abatement made by the assessor or auditor or by order
48.11of the commissioner of revenue, the reduction shall be applied to the original net tax
48.12capacity of the district when the property upon which the abatement is made has not been
48.13improved since the date of certification of the district and to the captured net tax capacity
48.14of the district in each year thereafter when the abatement relates to improvements made
48.15after the date of certification. The county auditor may specify reasonable form and content
48.16of the request for certification of the authority and any modification thereof pursuant to
48.17section 469.175, subdivision 4.
48.18    (f) If a parcel of property contained a substandard building or improvements
48.19described in section 469.174, subdivision 10, paragraph (e), that were demolished or
48.20removed and if the authority elects to treat the parcel as occupied by a substandard
48.21building under section 469.174, subdivision 10, paragraph (b), or by improvements under
48.22section 469.174, subdivision 10, paragraph (e), the auditor shall certify the original net tax
48.23capacity of the parcel using the greater of (1) the current net tax capacity of the parcel, or
48.24(2) the estimated market value of the parcel for the year in which the building or other
48.25improvements were demolished or removed, but applying the class rates for the current
48.26year.
48.27    (g) For a redevelopment district qualifying under section 469.174, subdivision 10,
48.28paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
48.29the land as the original tax capacity for any parcel in the district that contains a building
48.30that suffered substantial damage as a result of the disaster or emergency.
48.31EFFECTIVE DATE.This section is effective the day following final enactment
48.32and applies to all districts, regardless of when the request for certification was made, and
48.33to computation of increment beginning with taxes payable in 2013, provided that the
48.34adjustments to original tax capacity required by this section apply only to exclusions
48.35that reduced taxable market value beginning with taxes payable in 2012 or thereafter,
48.36regardless of when the law authorizing the exclusion became effective.

49.1    Sec. 81. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:
49.2    Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may
49.3appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
49.4percent of taxable estimated market value to carry out the purposes of this section.

49.5    Sec. 82. Minnesota Statutes 2010, section 469.187, is amended to read:
49.6469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
49.7BOARD.
49.8Any city of the first class may expend money for city publicity purposes. The city
49.9may levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The
49.10proceeds of the levy shall be expended in the manner and for the city publicity purposes
49.11the council directs. The council may establish and provide for a publicity board or bureau
49.12to administer the fund, subject to the conditions and limitations the council prescribes
49.13by ordinance.

49.14    Sec. 83. Minnesota Statutes 2010, section 469.206, is amended to read:
49.15469.206 HAZARDOUS PROPERTY PENALTY.
49.16A city may assess a penalty up to one percent of the estimated market value of
49.17real property, including any building located within the city that the city determines to
49.18be hazardous as defined in section 463.15, subdivision 3. The city shall send a written
49.19notice to the address to which the property tax statement is sent at least 90 days before it
49.20may assess the penalty. If the owner of the property has not paid the penalty or fixed the
49.21property within 90 days after receiving notice of the penalty, the penalty is considered
49.22delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
49.23property remains hazardous. For the purposes of this section, a penalty that is delinquent
49.24is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
49.25same manner as delinquent property taxes.

49.26    Sec. 84. Minnesota Statutes 2010, section 471.24, is amended to read:
49.27471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
49.28CEMETERY.
49.29Where a statutory city or town owns and maintains an established cemetery or burial
49.30ground, either within or without the municipal limits, the statutory city or town may, by
49.31mutual agreement with contiguous statutory cities and towns, each having a an estimated
49.32market value of not less than $2,000,000, join together in the maintenance of such public
50.1cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
50.2each such municipality is hereby authorized, by action of its council or governing body,
50.3to levy a tax or make an appropriation for the annual support and maintenance of such
50.4cemetery or burial ground; provided, the amount thus appropriated by each municipality
50.5shall not exceed a total of $10,000 in any one year.

50.6    Sec. 85. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:
50.7    Subdivision 1. Application. This section applies to each city in which the net tax
50.8capacity of real and personal property consists in part of iron ore or lands containing
50.9taconite or semitaconite and in which the total taxable estimated market value of real
50.10and personal property exceeds $2,500,000.

50.11    Sec. 86. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:
50.12    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a
50.13permanent improvement and replacement fund to be maintained by an annual tax levy.
50.14The governing body may levy a tax in excess of any charter limitation for the support of
50.15the permanent improvement and replacement fund, but not exceeding the following:
50.16(a) in cities having a population of not more than 500 inhabitants, the lesser of $20
50.17per capita or 0.08059 percent of taxable estimated market value;
50.18(b) in cities having a population of more than 500 and less than 2500 2,500, the
50.19greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable
50.20estimated market value;
50.21(c) in cities having a population of more than 2500 2,500 or more inhabitants,
50.22the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable
50.23estimated market value.

50.24    Sec. 87. Minnesota Statutes 2010, section 471.73, is amended to read:
50.25471.73 ACCEPTANCE OF PROVISIONS.
50.26In the case of any city within the class specified in section 471.72 having a an
50.27estimated market value, as defined in section 471.72, in excess of $37,000,000; and in the
50.28case of any statutory city within such class having a an estimated market value, as defined
50.29in section 471.72, of less than $5,000,000; and in the case of any statutory city within such
50.30class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
50.31the case of any statutory city within such class which is governed by Laws 1929, chapter
50.32208, and has a an estimated market value of less than $83,000,000; and in the case of
50.33any school district within such class having a an estimated market value, as defined in
51.1section 471.72, of more than $54,000,000; and in the case of all towns within said class;
51.2sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the
51.3board of the school district, or the town board of the town shall have adopted a resolution
51.4determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go
51.5upon a cash basis in accordance with the provisions thereof.

51.6    Sec. 88. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:
51.7    Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and
51.8issue the bonds in the manner provided in chapter 475, and shall have the same powers
51.9and duties as a municipality issuing bonds under that law, except that the approval of a
51.10majority of the electors shall not be required and the net debt limitations shall not apply.
51.11The terms of each series of bonds shall be fixed so that the amount of principal and interest
51.12on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
51.13due in any year shall not exceed 0.01209 percent of estimated market value of all taxable
51.14property in the metropolitan area as last finally equalized prior to a proposed issue. The
51.15bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes
51.16required for their payment shall be levied by the council, shall not affect the amount or rate
51.17of taxes which may be levied by the council for other purposes, shall be spread against all
51.18taxable property in the metropolitan area and shall not be subject to limitation as to rate or
51.19amount. Any taxes certified by the council to the county auditors for collection shall be
51.20reduced by the amount received by the council from the commissioner of management and
51.21budget or the federal government for the purpose of paying the principal and interest on
51.22bonds to which the levy relates. The council shall certify the fact and amount of all money
51.23so received to the county auditors, and the auditors shall reduce the levies previously made
51.24for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.

51.25    Sec. 89. Minnesota Statutes 2010, section 473.629, is amended to read:
51.26473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
51.27DISTRICTS.
51.28As to any lands to be detached from any school district under the provisions hereof
51.29section 473.625, notwithstanding such prospective the detachment, the estimated market
51.30value of such the detached lands and the net tax capacity of taxable properties now located
51.31therein or thereon shall be and on the lands on the date of the detachment constitute
51.32from and after the date of the enactment hereof a part of the estimated market value of
51.33properties upon the basis of which such used to calculate the net debt limit of the school
51.34district may issue its bonds,. The value of such the lands for such purpose to be and other
52.1taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of
52.2the estimated market value thereof as determined and certified by said the assessor to said
52.3the school district, and it shall be the duty of such the assessor annually on or before the
52.4tenth day of October from and after the passage hereof, to so of each year, shall determine
52.5and certify that value; provided, however, that the value of such the detached lands and
52.6such taxable properties shall never exceed 20 percent of the estimated market value of
52.7all properties constituting and making up the basis aforesaid used to calculate the net
52.8debt limit of the school district.

52.9    Sec. 90. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:
52.10    Subd. 3. Levy limit. In any budget certified by the commissioners under this
52.11section, the amount included for operation and maintenance shall not exceed an amount
52.12which, when extended against the property taxable therefor under section 473.621,
52.13subdivision 5 , will require a levy at a rate of 0.00806 percent of estimated market value.
52.14Taxes levied by the corporation shall not affect the amount or rate of taxes which may
52.15be levied by any other local government unit within the metropolitan area under the
52.16provisions of any charter.

52.17    Sec. 91. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:
52.18    Subd. 9. Additional taxes. Nothing herein shall prevent the commission from
52.19levying a tax not to exceed 0.00121 percent of estimated market value on taxable property
52.20within its taxing jurisdiction, in addition to any levies found necessary for the debt
52.21service fund authorized by section 473.671. Nothing herein shall prevent the levy and
52.22appropriation for purposes of the commission of any other tax on property or on any
52.23income, transaction, or privilege, when and if authorized by law. All collections of any
52.24taxes so levied shall be included in the revenues appropriated for the purposes referred
52.25to in this section, unless otherwise provided in the law authorizing the levies; but no
52.26covenant as to the continuance or as to the rate and amount of any such levy shall be made
52.27with the holders of the commission's bonds unless specifically authorized by law.

52.28    Sec. 92. Minnesota Statutes 2010, section 473.671, is amended to read:
52.29473.671 LIMIT OF TAX LEVY.
52.30The taxes levied against the property of the metropolitan area in any one year shall
52.31not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied
52.32to pay the principal or interest on any bonds or indebtedness of the city issued under
52.33Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
53.1payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
53.2500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
53.3maximum rate allowed to be levied to defray the cost of government under the provisions
53.4of the charter of any city affected by Laws 1943, chapter 500.

53.5    Sec. 93. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:
53.6    Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in
53.7the district as defined in section 473.702 to provide funds for the purposes of sections
53.8473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined
53.9in this subdivision. A participating county may agree to levy an additional tax to be used
53.10by the commission for the purposes of sections 473.701 to 473.716 but the sum of the
53.11county's and commission's taxes may not exceed the county's proportionate share of
53.12the property tax levy limitation determined under this subdivision based on the ratio of
53.13its total net tax capacity to the total net tax capacity of the entire district as adjusted by
53.14section 270.12, subdivision 3. The auditor of each county in the district shall add the
53.15amount of the levy made by the district to other taxes of the county for collection by
53.16the county treasurer with other taxes. When collected, the county treasurer shall make
53.17settlement of the tax with the district in the same manner as other taxes are distributed
53.18to political subdivisions. No county shall levy any tax for mosquito, disease vectoring
53.19tick, and black gnat (Simuliidae) control except under this section. The levy shall be in
53.20addition to other taxes authorized by law.
53.21(b) The property tax levied by the Metropolitan Mosquito Control Commission shall
53.22not exceed the product of (i) the commission's property tax levy limitation for the previous
53.23year determined under this subdivision multiplied by (ii) an index for market valuation
53.24changes equal to the total estimated market valuation value of all taxable property for the
53.25current tax payable year located within the district plus any area that has been added to the
53.26district since the previous year, divided by the total estimated market valuation value of all
53.27taxable property located within the district for the previous taxes payable year.
53.28(c) For the purpose of determining the commission's property tax levy limitation
53.29under this subdivision, "total market valuation" means the total market valuation of all
53.30taxable property within the district without valuation adjustments for fiscal disparities
53.31(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage
53.32transmission lines (section 273.425).

53.33    Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:
54.1    Subd. 12. Adjusted market value. "Adjusted market value" of real and personal
54.2property within a municipality means the assessor's estimated taxable market value,
54.3as defined in section 272.03, of all real and personal property, including the value of
54.4manufactured housing, within the municipality, adjusted for sales ratios in a manner
54.5similar to the adjustments made to city and town net tax capacities . For purposes
54.6of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make
54.7determinations and reports with respect to each municipality which are comparable to
54.8those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same
54.9manner and at the same times as are prescribed by the subdivisions. The commissioner
54.10of revenue shall annually determine, for each municipality, information comparable to
54.11that required by section 475.53, subdivision 4, for school districts, as soon as practicable
54.12after it becomes available. The commissioner of revenue shall then compute the equalized
54.13market value of property within each municipality using the aggregate sales ratios from
54.14the Department of Revenue's sales ratio study.

54.15    Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
54.16    Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
54.17adjusted market value, determined as of January 2 of any year, divided by its population,
54.18determined as of a date in the same year.

54.19    Sec. 96. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:
54.20    Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities
54.21means the sum of the valuations adjusted market values of all municipalities, determined
54.22as of January 2 of any year, divided by the sum of their populations, determined as of
54.23a date in the same year.

54.24    Sec. 97. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:
54.25    Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of
54.26real and personal property multiplied by its net tax capacity rates in section 273.13.

54.27    Sec. 98. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
54.28    Subd. 4. Limitations on amount. A municipality may not issue bonds under this
54.29section if the maximum amount of principal and interest to become due in any year on
54.30all the outstanding bonds issued under this section, including the bonds to be issued,
54.31will equal or exceed 0.16 percent of the taxable estimated market value of property
54.32in the municipality. Calculation of the limit must be made using the taxable estimated
55.1market value for the taxes payable year in which the obligations are issued and sold. In
55.2the case of a municipality with a population of 2,500 or more, the bonds are subject to
55.3the net debt limits under section 475.53. In the case of a shared facility in which more
55.4than one municipality participates, upon compliance by each participating municipality
55.5with the requirements of subdivision 2, the limitations in this subdivision and the net debt
55.6represented by the bonds shall be allocated to each participating municipality in proportion
55.7to its required financial contribution to the financing of the shared facility, as set forth in
55.8the joint powers agreement relating to the shared facility. This section does not limit the
55.9authority to issue bonds under any other special or general law.

55.10    Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:
55.11    Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to
55.12475.74 , no municipality, except a school district or a city of the first class, shall incur or be
55.13subject to a net debt in excess of three percent of the estimated market value of taxable
55.14property in the municipality.

55.15    Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:
55.16    Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of
55.17the first class may not incur a net debt in excess of two percent of the estimated market
55.18value of all taxable property therein. If the charter of the city permits a net debt of the city
55.19in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
55.20percent of the estimated market value of the taxable property therein.
55.21The county auditor, at the time of preparing the tax list of the city, shall compile a
55.22statement setting forth the total net tax capacity and the total estimated market value of
55.23each class of taxable property in such city for such year.

55.24    Sec. 101. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:
55.25    Subd. 4. School districts. Except as otherwise provided by law, no school district
55.26shall be subject to a net debt in excess of 15 percent of the actual estimated market value
55.27of all taxable property situated within its corporate limits, as computed in accordance with
55.28this subdivision. The county auditor of each county containing taxable real or personal
55.29property situated within any school district shall certify to the district upon request the
55.30estimated market value of all such property. Whenever the commissioner of revenue, in
55.31accordance with section 127A.48, subdivisions 1 to 6, has determined that the net tax
55.32capacity of any district furnished by county auditors is not based upon the adjusted market
55.33value of taxable property in the district exceeds the estimated market value of property
56.1within the district, the commissioner of revenue shall certify to the district upon request
56.2the ratio most recently ascertained to exist between such the estimated market value and
56.3the actual adjusted market value of property within the district., and the actual market
56.4value of property within a district, on which its debt limit under this subdivision is will
56.5be based, is (a) the value certified by the county auditors, or (b) this on the estimated
56.6market value divided by the ratio certified by the commissioner of revenue, whichever
56.7results in a higher value.

56.8    Sec. 102. Minnesota Statutes 2010, section 475.53, subdivision 5, is amended to read:
56.9    Subd. 5. Certain independent school districts. No independent school district
56.10located wholly or partly within a city of the first class shall issue obligations with a term
56.11of more than two years, whenever the aggregate of the outstanding obligations of the
56.12district equals or exceeds 0.7 percent of the estimated market value of the taxable property
56.13within the school district.

56.14    Sec. 103. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:
56.15    Subd. 2. Funding, refunding. Any county, city, town, or school district whose
56.16outstanding gross debt, including all items referred to in section 475.51, subdivision
56.174 , exceed in amount 1.62 percent of its estimated market value may issue bonds under
56.18this subdivision for the purpose of funding or refunding such indebtedness or any part
56.19thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
56.20recording officer and treasurer and filed in the office of the recording officer. The initial
56.21resolution of the governing body shall refer to this subdivision as authority for the issue,
56.22state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
56.23refunded. This resolution shall be published once each week for two successive weeks
56.24in a legal newspaper published in the municipality or if there be no such newspaper, in
56.25a legal newspaper published in the county seat. Such bonds may be issued without the
56.26submission of the question of their issue to the electors unless within ten days after the
56.27second publication of the resolution a petition requesting such election signed by ten or
56.28more voters who are taxpayers of the municipality, shall be filed with the recording officer.
56.29In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
56.30majority of the electors voting on the question.

56.31    Sec. 104. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:
56.32    Subdivision 1. May purchase these bonds; conditions. Obligations sold under the
56.33provisions of section 475.60 may be purchased by the State Board of Investment if the
57.1obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of
57.2the attorney general as to form and execution of the application therefor, and under rules
57.3as the board may specify, and the state board shall have authority to purchase the same
57.4to an amount not exceeding 3.63 percent of the estimated market value of the taxable
57.5property of the municipality, according to the last preceding assessment. The obligations
57.6shall not run for a shorter period than one year, nor for a longer period than 30 years and
57.7shall bear interest at a rate to be fixed by the state board but not less than two percent per
57.8annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
57.9virtue thereof, the commissioner of management and budget shall certify to the respective
57.10auditors of the various counties wherein are situated the municipalities issuing the same,
57.11the number, denomination, amount, rate of interest and date of maturity of each obligation.

57.12    Sec. 105. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20,
57.13is amended to read:
57.14    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
57.15capacity computed using the net tax capacity rates in section 273.13 for taxes payable
57.16in the year of the aid distribution, and the market values, after the exclusion in section
57.17273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
57.18a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2,
57.19paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
57.20to that for which aids are being calculated. The market value utilized in computing city
57.21net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
57.22industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3,
57.23multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph
57.24(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
57.25of tax increment financing districts as defined in section 469.177, subdivision 2, and (3)
57.26the market value of transmission lines deducted from a city's total net tax capacity under
57.27section 273.425. The city net tax capacity will be computed using equalized market values
57.28the city's adjusted net tax capacity under section 273.1325.
57.29EFFECTIVE DATE.This section is effective the day following final enactment.

57.30    Sec. 106. Minnesota Statutes 2010, section 477A.011, subdivision 32, is amended to
57.31read:
57.32    Subd. 32. Commercial industrial percentage. "Commercial industrial percentage"
57.33for a city is 100 times the sum of the estimated market values of all real property in the
57.34city classified as class 3 under section 273.13, subdivision 24, excluding public utility
58.1property, to the total estimated market value of all taxable real and personal property in
58.2the city. The estimated market values are the amounts computed before any adjustments
58.3for fiscal disparities under section 276A.06 or 473F.08. The estimated market values
58.4used for this subdivision are not equalized.
58.5EFFECTIVE DATE.This section is effective for aids payable in 2014 and
58.6thereafter.

58.7    Sec. 107. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to
58.8read:
58.9    Subd. 2. Definitions. (a) For the purposes of this section, the following terms
58.10have the meanings given them.
58.11(b) "County program aid" means the sum of "county need aid," "county tax base
58.12equalization aid," and "county transition aid."
58.13(c) "Age-adjusted population" means a county's population multiplied by the county
58.14age index.
58.15(d) "County age index" means the percentage of the population over age 65 within
58.16the county divided by the percentage of the population over age 65 within the state, except
58.17that the age index for any county may not be greater than 1.8 nor less than 0.8.
58.18(e) "Population over age 65" means the population over age 65 established as of
58.19July 15 in an aid calculation year by the most recent federal census, by a special census
58.20conducted under contract with the United States Bureau of the Census, by a population
58.21estimate made by the Metropolitan Council, or by a population estimate of the state
58.22demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
58.23date of the count or estimate for the preceding calendar year and which has been certified
58.24to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
58.25to an estimate or count is effective for these purposes only if certified to the commissioner
58.26on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
58.27estimates and counts established as of July 15 in the aid calculation year are subject to
58.28correction within the time periods allowed under section 477A.014.
58.29(f) "Part I crimes" means the three-year average annual number of Part I crimes
58.30reported for each county by the Department of Public Safety for the most recent years
58.31available. By July 1 of each year, the commissioner of public safety shall certify to the
58.32commissioner of revenue the number of Part I crimes reported for each county for the
58.33three most recent calendar years available.
58.34(g) "Households receiving food stamps" means the average monthly number of
58.35households receiving food stamps for the three most recent years for which data is
59.1available. By July 1 of each year, the commissioner of human services must certify to the
59.2commissioner of revenue the average monthly number of households in the state and in
59.3each county that receive food stamps, for the three most recent calendar years available.
59.4(h) "County net tax capacity" means the net tax capacity of the county, computed
59.5analogously to city net tax capacity under section 477A.011, subdivision 20 county's
59.6adjusted net tax capacity under section 273.1325.
59.7EFFECTIVE DATE.This section is effective the day following final enactment.

59.8    Sec. 108. Minnesota Statutes 2010, section 641.23, is amended to read:
59.9641.23 FUNDS; HOW PROVIDED.
59.10Before any contract is made for the erection of a county jail, sheriff's residence, or
59.11both, the county board shall either levy a sufficient tax to provide the necessary funds, or
59.12issue county bonds therefor in accordance with the provisions of chapter 475, provided
59.13that no election is required if the amount of all bonds issued for this purpose and interest
59.14on them which are due and payable in any year does not exceed an amount equal to
59.150.09671 percent of estimated market value of taxable property within the county, as last
59.16determined before the bonds are issued.

59.17    Sec. 109. Minnesota Statutes 2010, section 641.24, is amended to read:
59.18641.24 LEASING.
59.19The county may, by resolution of the county board, enter into a lease agreement with
59.20any statutory or home rule charter city situated within the county, or a county housing and
59.21redevelopment authority established pursuant to chapter 469 or any special law whereby
59.22the city or county housing and redevelopment authority will construct a jail or other law
59.23enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
59.24sheriff and other law enforcement agencies, in accordance with plans prepared by or at
59.25the request of the county board and, when required, approved by the commissioner of
59.26corrections and will finance it by the issuance of revenue bonds, and the county may lease
59.27the site and improvements for a term and upon rentals sufficient to produce revenue for the
59.28prompt payment of the bonds and all interest accruing thereon and, upon completion of
59.29payment, will acquire title thereto. The real and personal property acquired for the jail
59.30shall constitute a project and the lease agreement shall constitute a revenue agreement
59.31as contemplated in chapter 469, and all proceedings shall be taken by the city or county
59.32housing and redevelopment authority and the county in the manner and with the force and
59.33effect provided in chapter 469; provided that:
60.1(1) no tax shall be imposed upon or in lieu of a tax upon the property;
60.2(2) the approval of the project by the commissioner of commerce shall not be
60.3required;
60.4(3) the Department of Corrections shall be furnished and shall record such
60.5information concerning each project as it may prescribe;
60.6(4) the rentals required to be paid under the lease agreement shall not exceed in any
60.7year one-tenth of one percent of the estimated market value of property within the county,
60.8as last finally equalized before the execution of the agreement;
60.9(5) the county board shall provide for the payment of all rentals due during the term
60.10of the lease, in the manner required in section 641.264, subdivision 2;
60.11(6) no mortgage on the property shall be granted for the security of the bonds, but
60.12compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
60.13county board; and
60.14(7) the county board may sublease any part of the jail property for purposes consistent
60.15with the maintenance and operation of a county jail or other law enforcement facility.

60.16    Sec. 110. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision
60.17to read:
60.18    Subd. 20. Estimated market value. When used in determining or calculating a
60.19limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or
60.20capital note issuance by or for a local government unit, "estimated market value" has the
60.21meaning given in section 273.032.

60.22    Sec. 111. REVISOR'S INSTRUCTION.
60.23The revisor of statutes shall recodify Minnesota Statutes, section 127A.48,
60.24subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all
60.25cross-references to the affected subdivisions accordingly.
60.26EFFECTIVE DATE.This section is effective the day following final enactment.

60.27    Sec. 112. REPEALER.
60.28Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision
60.2911; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and
60.30477A.011, subdivision 21, are repealed.

60.31    Sec. 113. EFFECTIVE DATE.
61.1Unless otherwise specifically provided, this act is effective the day following final
61.2enactment for purposes of limits on net debt, the issuance of bonds, certificates of
61.3indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for
61.4all other purposes.