HF 603

1st Committee Engrossment - 90th Legislature (2017 - 2018) Posted on 03/22/2017 10:16am

1.1A bill for an act

1.2relating to taxation; property and local government; modifying provisions related
1.3to property taxes; taxpayer empowerment; aids, credits, and refunds; in perpetuity
1.4payments on land purchases; tax increment financing; local option sales taxes;
1.5public finance; and miscellaneous tax provisions; modifying property tax
1.6exemptions, classifications, and refunds; allowing a reverse referendum for property
1.7tax levies under certain circumstances; establishing school building bond
1.8agricultural tax credit; modifying state general levy; modifying certain local
1.9government aids; authorizing certain tax increment financing authority; prohibiting
1.10municipalities from taxing paper or plastic bags; modifying county levy authority;
1.11authorizing certain local taxes; restricting rail project expenditures; modifying
1.12provisions related to taconite; repealing political contribution refund; making
1.13technical and conforming changes; requiring a report;amending Minnesota Statutes
1.142016, sections 40A.18, subdivision 2; 97A.056, subdivisions 1a, 3, by adding
1.15subdivisions; 116P.02, subdivision 1, by adding subdivisions; 116P.08, subdivisions
1.161, 4; 123B.63, subdivision 3; 126C.17, subdivision 9; 127A.45, subdivisions 10,
1.1713; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.36; 216B.46; 237.19;
1.18270A.03, subdivision 7; 272.02, subdivisions 23, 86, by adding a subdivision;
1.19272.0213; 272.029, subdivision 2; 272.162; 273.124, subdivisions 3a, 14, 21;
1.20273.125, subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 273.1392; 273.1393;
1.21275.025, subdivisions 1, 2, 4, by adding a subdivision; 275.065, subdivision 3;
1.22275.066; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.017,
1.23subdivision 3; 276.04, subdivisions 1, 2; 279.01, subdivisions 1, 2, 3; 279.37, by
1.24adding a subdivision; 281.17; 281.173, subdivision 2; 281.174, subdivision 3;
1.25282.01, subdivisions 4, 6, by adding a subdivision; 282.016; 282.018, subdivision
1.261; 282.02; 282.241, subdivision 1; 282.322; 287.08; 289A.50, subdivision 1;
1.27290.01, subdivision 6; 290A.03, subdivisions 11, 13; 298.225, subdivision 1;
1.28298.28, subdivision 3; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32;
1.29412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2,
1.303, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 462.353, subdivision 4;
1.31469.053, subdivision 5; 469.101, subdivision 1; 469.107, subdivision 2; 469.169,
1.32by adding a subdivision; 469.174, subdivision 12; 469.175, subdivision 3; 469.176,
1.33subdivision 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2,
1.343; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 471.57, subdivision 3;
1.35471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.39, by adding subdivisions;
1.36473H.09; 473H.17, subdivision 1a; 475.59; 475.60, subdivision 2; 477A.011,
1.37subdivisions 34, 45; 477A.013, subdivisions 8, 9; 477A.10; 477A.11, by adding
1.38subdivisions; 504B.285, subdivision 1; 504B.365, subdivision 3; Laws 1980,
1.39chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991,
2.1chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5;
2.2Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as
2.3amended; article 3, section 51; Laws 1999, chapter 243, article 4, sections 17,
2.4subdivisions 3, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws
2.52005, First Special Session chapter 3, article 5, section 38, subdivisions 2, as
2.6amended, 4, as amended; Laws 2008, chapter 154, article 9, section 21, subdivision
2.72; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5,
2.8section 17, as amended; Laws 2014, chapter 308, article 6, sections 8, subdivision
2.91; 9; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A;
2.1016B; 103C; 116P; 117; 222; 273; 274; 275; 281; 416; 459; 471; 473; 477A;
2.11repealing Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967,
2.12subdivision 2; 205.10, subdivision 3; 270C.9901; 281.22; 290.06, subdivision 23;
2.13477A.085; 477A.20; Minnesota Rules, part 4503.1400, subpart 4.
2.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.15ARTICLE 1

2.16PROPERTY TAX

2.17    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:
2.18    Subd. 2. Allowed commercial and industrial operations. (a) Commercial and industrial
2.19operations are not allowed on land within an agricultural preserve except:
2.20(1) small on-farm commercial or industrial operations normally associated with and
2.21important to farming in the agricultural preserve area;
2.22(2) storage use of existing farm buildings that does not disrupt the integrity of the
2.23agricultural preserve; and
2.24(3) small commercial use of existing farm buildings for trades not disruptive to the
2.25integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
2.26and similar activities that a farm operator might conduct.; and
2.27(4) wireless communication installments and related equipment and structure capable
2.28of providing technology potentially beneficial to farming activities.
2.29    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)
2.30means existing on August 1, 1989.
2.31EFFECTIVE DATE.This section is effective the day following final enactment.

2.32    Sec. 2. [103C.333] COUNTY LEVY AUTHORITY.
2.33Notwithstanding any other law to the contrary, a county levying a tax under section
2.34103C.331 shall not include any taxes levied under those authorities in the levy certified
2.35under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331
3.1shall separately certify that amount, and the auditor shall extend that levy as a special taxing
3.2district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
3.3EFFECTIVE DATE.This section is effective for certifications made in 2017 and
3.4thereafter.

3.5    Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read:
3.6    Subd. 23. Secondary liquid agricultural chemical containment facilities. Secondary
3.7containment tanks, cache basins, and that portion of the structure needed for the containment
3.8facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3,
3.9as required by the commissioner of agriculture under chapter 18B or 18C, berms used by
3.10a reseller to contain agricultural chemical spills from primary storage containers and prevent
3.11runoff or leaching of liquid agricultural chemicals as defined in section 18D.01, subdivision
3.123, are exempt. For purposes of this subdivision, "reseller" means a person licensed by the
3.13commissioner of agriculture under section 18B.316 or 18C.415.
3.14EFFECTIVE DATE.This section is effective beginning with taxes payable in 2016
3.15provided that nothing in this section shall cause property that was classified as exempt
3.16property for taxes payable in 2016 to lose its exempt status for taxes payable in that year.

3.17    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:
3.18    Subd. 86. Apprenticeship training facilities. All or a portion of a building used
3.19exclusively for a state-approved apprenticeship program through the Department of Labor
3.20and Industry is exempt if:
3.21(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit
3.22organization or a nonprofit trust;
3.23(2) the program participants receive no compensation; and
3.24(3) it is located:
3.25(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
3.26by the 2000 federal census;
3.27(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area
3.28that has a population of 7,400 or greater according to the most recent federal census; or
3.29(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000
3.30determined by the 2000 federal census and the building was previously used by a school
3.31and was exempt for taxes payable in 2010.
4.1Use of the property for advanced skills training of incumbent workers does not disqualify
4.2the property for the exemption under this subdivision. This exemption includes up to five
4.3acres of the land on which the building is located and associated parking areas on that land,
4.4except that if the building meets the requirements of clause (3), item (iii), then the exemption
4.5includes up to ten acres of land on which the building is located and associated parking
4.6areas on that land. If a parking area associated with the facility is used for the purposes of
4.7the facility and for other purposes, a portion of the parking area shall be exempt in proportion
4.8to the square footage of the facility used for purposes of apprenticeship training.

4.9    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
4.10read:
4.11    Subd. 100. Electric generation facility; personal property. (a) Notwithstanding
4.12subdivision 9, clause (a), attached machinery and other personal property that is part of an
4.13electric generation facility with more than 35 megawatts and less than 40 megawatts of
4.14installed capacity and that meets the requirements of this subdivision is exempt from taxation
4.15and payments in lieu of taxation. The facility must:
4.16(1) be designed to utilize natural gas as a primary fuel;
4.17(2) be owned and operated by a municipal power agency as defined in section 453.52,
4.18subdivision 8;
4.19(3) be located within 800 feet of an existing natural gas pipeline;
4.20(4) satisfy a resource deficiency identified in an approved integrated resource plan filed
4.21under section 216B.2422;
4.22(5) be located outside the metropolitan area as defined under section 473.121, subdivision
4.232; and
4.24(6) have received, by resolution, the approval of the governing bodies of the city and
4.25county in which it is located for the exemption of personal property provided by this
4.26subdivision.
4.27(b) Construction of the facility must have been commenced after January 1, 2015, and
4.28before January 1, 2017. Property eligible for this exemption does not include electric
4.29transmission lines and interconnections or gas pipelines and interconnections appurtenant
4.30to the property or the facility.
4.31EFFECTIVE DATE.This section is effective the day following final enactment.

5.1    Sec. 6. Minnesota Statutes 2016, section 272.0213, is amended to read:
5.2272.0213 LEASED SEASONAL-RECREATIONAL LAND.
5.3    (a) A county board may elect, by resolution, to Qualified lands, as defined in this section,
5.4are exempt from taxation, including the tax under section 273.19, qualified lands. "Qualified
5.5lands" for purposes of this section means property land that:
5.6    (1) is owned by a county, city, town, or the state; and
5.7    (2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial
5.8seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational
5.9residential use.
5.10    (3) was rented for the purposes specified in clause (2) and was exempt from taxation
5.11for property taxes payable in 2008.
5.12(b) Lands owned by the federal government and rented for noncommercial
5.13seasonal-recreational or, noncommercial seasonal-recreational residential, or class 1c
5.14commercial seasonal-recreational residential use are exempt from taxation, including the
5.15tax under section 273.19.
5.16EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

5.17    Sec. 7. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
5.18    Subd. 2. Definitions. (a) For the purposes of this section, the term:
5.19(1) "wind energy conversion system" has the meaning given in section 216C.06,
5.20subdivision 19 , and also includes a substation that is used and owned by one or more wind
5.21energy conversion facilities;
5.22(2) "large scale wind energy conversion system" means a wind energy conversion system
5.23of more than 12 megawatts, as measured by the nameplate capacity of the system or as
5.24combined with other systems as provided in paragraph (b);
5.25(3) "medium scale wind energy conversion system" means a wind energy conversion
5.26system of over two and not more than 12 megawatts, as measured by the nameplate capacity
5.27of the system or as combined with other systems as provided in paragraph (b); and
5.28(4) "small scale wind energy conversion system" means a wind energy conversion system
5.29of two megawatts and under, as measured by the nameplate capacity of the system or as
5.30combined with other systems as provided in paragraph (b).
6.1(b) For systems installed and contracted for after January 1, 2002, the total size of a
6.2wind energy conversion system under this subdivision shall be determined according to this
6.3paragraph. Unless the systems are interconnected with different distribution systems, the
6.4nameplate capacity of one wind energy conversion system shall be combined with the
6.5nameplate capacity of any other wind energy conversion system that is:
6.6(1) located within five miles of the wind energy conversion system;
6.7(2) constructed within the same calendar year as the wind energy conversion system;
6.8and
6.9(3) under common ownership.
6.10In the case of a dispute, the commissioner of commerce shall determine the total size of
6.11the system, and shall draw all reasonable inferences in favor of combining the systems.
6.12(c) In making a determination under paragraph (b), the commissioner of commerce may
6.13determine that two wind energy conversion systems are under common ownership when
6.14the underlying ownership structure contains similar the same persons or entities, even if the
6.15ownership shares differ between the two systems. Wind energy conversion systems are not
6.16under common ownership solely because the same person or entity provided equity financing
6.17for the systems. Wind energy conversion systems that were determined by the commissioner
6.18of commerce to be eligible for a renewable energy production incentive under section
6.19216C.41 are not under common ownership unless a change in the qualifying owner was
6.20made to an owner of another wind energy conversion system subsequent to the determination
6.21by the commissioner of commerce.
6.22EFFECTIVE DATE.This section is effective the day following final enactment.

6.23    Sec. 8. Minnesota Statutes 2016, section 272.162, is amended to read:
6.24272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
6.25    Subdivision 1. Conditions restricting transfer. When a deed or other instrument
6.26conveying a parcel of land is presented to the county auditor for transfer or division under
6.27sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
6.28net tax capacity in the official records and shall not certify the instrument as provided in
6.29section 272.12, if:
6.30(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
7.1(b) The part conveyed appears within the area of application of municipal or county
7.2subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision
7.31 ; and
7.4(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352,
7.5subdivision 12 .
7.6    Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision
7.71, the county auditor may transfer or divide the land and its net tax capacity and may certify
7.8the instrument if the instrument contains a certification by the clerk of the municipality or
7.9designated county planning official:
7.10(a) (1) that the municipality's or county's subdivision regulations do not apply;
7.11(b) (2) that the subdivision has been approved by the governing body of the municipality
7.12or county; or
7.13(c) (3) that the restrictions on the division of taxes and filing and recording have been
7.14waived by resolution of the governing body of the municipality or county in the particular
7.15case because compliance would create an unnecessary hardship and failure to comply would
7.16not interfere with the purpose of the regulations.
7.17(b) If any of the conditions for certification by the municipality or county as provided
7.18in this subdivision exist and the municipality or county does not certify that they exist within
7.1924 hours after the instrument of conveyance has been presented to the clerk of the
7.20municipality or designated county planning official, the provisions of subdivision 1 do not
7.21apply.
7.22(c) If an unexecuted instrument is presented to the municipality or county and any of
7.23the conditions for certification by the municipality or county as provided in this subdivision
7.24exist, the unexecuted instrument must be certified by the clerk of the municipality or the
7.25designated county planning official.
7.26    Subd. 3. Applicability of restrictions. (a) This section does not apply to the exceptions
7.27set forth in section 272.12.
7.28(b) This section applies only to land within municipalities or counties which choose to
7.29be governed by its provisions. A municipality or county may choose to have this section
7.30apply to the property within its boundaries by filing a certified copy of a resolution of its
7.31governing body making that choice with the auditor and recorder of the county in which it
7.32is located.
7.33EFFECTIVE DATE.This section is effective the day following final enactment.

8.1    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:
8.2    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park
8.3is owned by a corporation or association organized under chapter 308A or 308B, and each
8.4person who owns a share or shares in the corporation or association is entitled to occupy a
8.5lot within the park, the corporation or association may claim homestead treatment for the
8.6park. Each lot must be designated by legal description or number, and each lot is limited to
8.7not more than one-half acre of land.
8.8    (b) The manufactured home park shall be entitled to homestead treatment if all of the
8.9following criteria are met:
8.10    (1) the occupant or the cooperative corporation or association is paying the ad valorem
8.11property taxes and any special assessments levied against the land and structure either
8.12directly, or indirectly through dues to the corporation or association; and
8.13    (2) the corporation or association organized under chapter 308A or 308B is wholly
8.14owned by persons having a right to occupy a lot owned by the corporation or association.
8.15    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding
8.16stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
8.17qualifies for homestead treatment with respect to a manufactured home park if its members
8.18hold residential participation warrants entitling them to occupy a lot in the manufactured
8.19home park.
8.20    (d) "Homestead treatment" under this subdivision means the classification rate provided
8.21for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
8.22(5), item (ii)., and the homestead market value exclusion under section 273.13, subdivision
8.2335, does not apply and the property taxes assessed against the park shall not be included in
8.24the determination of taxes payable for rent paid under section 290A.03.
8.25EFFECTIVE DATE.This section is effective beginning with claims for taxes payable
8.26in 2018.

8.27    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read:
8.28    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten
8.29acres that is the homestead of its owner must be classified as class 2a under section 273.13,
8.30subdivision 23 , paragraph (a), if:
8.31    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
8.32agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
9.1Service, or (iii) land administered by the Department of Natural Resources on which in lieu
9.2taxes are paid under sections 477A.11 to 477A.14;
9.3    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
9.4acres;
9.5    (3) the noncontiguous land is located not farther than four townships or cities, or a
9.6combination of townships or cities from the homestead; and
9.7    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to
9.8at least 50 percent of the market value of the house, garage, and one acre of land.
9.9    Homesteads initially classified as class 2a under the provisions of this paragraph shall
9.10remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
9.11properties, as long as the homestead remains under the same ownership, the owner owns a
9.12noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
9.13value qualifies under clause (4). Homestead classification under this paragraph is limited
9.14to property that qualified under this paragraph for the 1998 assessment.
9.15    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
9.16extent as other agricultural homestead property, if all of the following criteria are met:
9.17    (1) the agricultural property consists of at least 40 acres including undivided government
9.18lots and correctional 40's;
9.19    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
9.20or of the owner's spouse, is actively farming the agricultural property, either on the person's
9.21own behalf as an individual or on behalf of a partnership operating a family farm, family
9.22farm corporation, joint family farm venture, or limited liability company of which the person
9.23is a partner, shareholder, or member;
9.24    (3) both the owner of the agricultural property and the person who is actively farming
9.25the agricultural property under clause (2), are Minnesota residents;
9.26    (4) neither the owner nor the spouse of the owner claims another agricultural homestead
9.27in Minnesota; and
9.28    (5) neither the owner nor the person actively farming the agricultural property lives
9.29farther than four townships or cities, or a combination of four townships or cities, from the
9.30agricultural property, except that if the owner or the owner's spouse is required to live in
9.31employer-provided housing, the owner or owner's spouse, whichever is actively farming
9.32the agricultural property, may live more than four townships or cities, or combination of
9.33four townships or cities from the agricultural property.
10.1    The relationship under this paragraph may be either by blood or marriage.
10.2    (ii) Agricultural property held by a trustee under a trust is eligible for agricultural
10.3homestead classification under this paragraph if the qualifications in clause (i) are met,
10.4except that "owner" means the grantor of the trust.
10.5    (iii) Property containing the residence of an owner who owns qualified property under
10.6clause (i) shall be classified as part of the owner's agricultural homestead, if that property
10.7is also used for noncommercial storage or drying of agricultural crops.
10.8(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and
10.9any class 2b property that is contiguous to and under the same ownership as the class 2a
10.10property.
10.11    (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
10.12subdivision 23 , paragraph (a), only if the homestead is classified as class 2a and the detached
10.13land is located in the same township or city, or not farther than four townships or cities or
10.14combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
10.15notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
10.16and, if the homestead is located in another county, the taxpayer must also notify the assessor
10.17of the other county.
10.18    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
10.19holding a vested remainder interest in it must be classified as a homestead under section
10.20273.13, subdivision 23 , paragraph (a). If agricultural land is classified class 2a, any other
10.21dwellings on the land used for purposes of a homestead by persons holding vested remainder
10.22interests who are actively engaged in farming the property, and up to one acre of the land
10.23surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
10.24must also be assessed class 2a.
10.25    (e) Agricultural land and buildings that were class 2a homestead property under section
10.26273.13, subdivision 23 , paragraph (a), for the 1997 assessment shall remain classified as
10.27agricultural homesteads for subsequent assessments if:
10.28    (1) the property owner abandoned the homestead dwelling located on the agricultural
10.29homestead as a result of the April 1997 floods;
10.30    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
10.31Wilkin;
11.1    (3) the agricultural land and buildings remain under the same ownership for the current
11.2assessment year as existed for the 1997 assessment year and continue to be used for
11.3agricultural purposes;
11.4    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
11.5of one of the parcels of agricultural land that is owned by the taxpayer; and
11.6    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
11.7and the owner furnishes the assessor any information deemed necessary by the assessor in
11.8verifying the change in dwelling. Further notifications to the assessor are not required if the
11.9property continues to meet all the requirements in this paragraph and any dwellings on the
11.10agricultural land remain uninhabited.
11.11    (f) Agricultural land and buildings that were class 2a homestead property under section
11.12273.13, subdivision 23 , paragraph (a), for the 1998 assessment shall remain classified
11.13agricultural homesteads for subsequent assessments if:
11.14    (1) the property owner abandoned the homestead dwelling located on the agricultural
11.15homestead as a result of damage caused by a March 29, 1998, tornado;
11.16    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
11.17Nicollet, Nobles, or Rice;
11.18    (3) the agricultural land and buildings remain under the same ownership for the current
11.19assessment year as existed for the 1998 assessment year;
11.20    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
11.21one of the parcels of agricultural land that is owned by the taxpayer; and
11.22    (5) the owner notifies the county assessor that the relocation was due to a March 29,
11.231998, tornado, and the owner furnishes the assessor any information deemed necessary by
11.24the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
11.25owner must notify the assessor by December 1, 1998. Further notifications to the assessor
11.26are not required if the property continues to meet all the requirements in this paragraph and
11.27any dwellings on the agricultural land remain uninhabited.
11.28    (g) Agricultural property of a family farm corporation, joint family farm venture, family
11.29farm limited liability company, or partnership operating a family farm as described under
11.30subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
11.31property, if all of the following criteria are met:
11.32    (1) the property consists of at least 40 acres including undivided government lots and
11.33correctional 40's;
12.1    (2) a shareholder, member, or partner of that entity is actively farming the agricultural
12.2property;
12.3    (3) that shareholder, member, or partner who is actively farming the agricultural property
12.4is a Minnesota resident;
12.5    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
12.6member, or partner claims another agricultural homestead in Minnesota; and
12.7    (5) that shareholder, member, or partner does not live farther than four townships or
12.8cities, or a combination of four townships or cities, from the agricultural property.
12.9    Homestead treatment applies under this paragraph for property leased to a family farm
12.10corporation, joint farm venture, limited liability company, or partnership operating a family
12.11farm if legal title to the property is in the name of an individual who is a member, shareholder,
12.12or partner in the entity.
12.13    (h) To be eligible for the special agricultural homestead under this subdivision, an initial
12.14full application must be submitted to the county assessor where the property is located.
12.15Owners and the persons who are actively farming the property shall be required to complete
12.16only a one-page abbreviated version of the application in each subsequent year provided
12.17that none of the following items have changed since the initial application:
12.18    (1) the day-to-day operation, administration, and financial risks remain the same;
12.19    (2) the owners and the persons actively farming the property continue to live within the
12.20four townships or city criteria and are Minnesota residents;
12.21    (3) the same operator of the agricultural property is listed with the Farm Service Agency;
12.22    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
12.23    (5) the property's acreage is unchanged; and
12.24    (6) none of the property's acres have been enrolled in a federal or state farm program
12.25since the initial application.
12.26    The owners and any persons who are actively farming the property must include the
12.27appropriate Social Security numbers, and sign and date the application. If any of the specified
12.28information has changed since the full application was filed, the owner must notify the
12.29assessor, and must complete a new application to determine if the property continues to
12.30qualify for the special agricultural homestead. The commissioner of revenue shall prepare
12.31a standard reapplication form for use by the assessors.
13.1    (i) Agricultural land and buildings that were class 2a homestead property under section
13.2273.13, subdivision 23 , paragraph (a), for the 2007 assessment shall remain classified
13.3agricultural homesteads for subsequent assessments if:
13.4    (1) the property owner abandoned the homestead dwelling located on the agricultural
13.5homestead as a result of damage caused by the August 2007 floods;
13.6    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
13.7Wabasha, or Winona;
13.8    (3) the agricultural land and buildings remain under the same ownership for the current
13.9assessment year as existed for the 2007 assessment year;
13.10    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
13.11one of the parcels of agricultural land that is owned by the taxpayer; and
13.12    (5) the owner notifies the county assessor that the relocation was due to the August 2007
13.13floods, and the owner furnishes the assessor any information deemed necessary by the
13.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
13.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor
13.16are not required if the property continues to meet all the requirements in this paragraph and
13.17any dwellings on the agricultural land remain uninhabited.
13.18    (j) Agricultural land and buildings that were class 2a homestead property under section
13.19273.13, subdivision 23 , paragraph (a), for the 2008 assessment shall remain classified as
13.20agricultural homesteads for subsequent assessments if:
13.21    (1) the property owner abandoned the homestead dwelling located on the agricultural
13.22homestead as a result of the March 2009 floods;
13.23    (2) the property is located in the county of Marshall;
13.24    (3) the agricultural land and buildings remain under the same ownership for the current
13.25assessment year as existed for the 2008 assessment year and continue to be used for
13.26agricultural purposes;
13.27    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
13.28of one of the parcels of agricultural land that is owned by the taxpayer; and
13.29    (5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
13.30and the owner furnishes the assessor any information deemed necessary by the assessor in
13.31verifying the change in dwelling. Further notifications to the assessor are not required if the
14.1property continues to meet all the requirements in this paragraph and any dwellings on the
14.2agricultural land remain uninhabited.
14.3EFFECTIVE DATE.This section is effective beginning for property taxes payable in
14.42018.

14.5    Sec. 11. Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read:
14.6    Subd. 21. Trust property; homestead. Real or personal property, including agricultural
14.7property, held by a trustee under a trust is eligible for classification as homestead property
14.8if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e).
14.9    (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
14.10property as a homestead.
14.11    (b) A relative or surviving relative of the grantor who meets the requirements of
14.12subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph
14.13(d), in the case of agricultural property, occupies and uses the property as a homestead.
14.14    (c) A family farm corporation, joint farm venture, limited liability company, or partnership
14.15operating a family farm in which the grantor or the grantor's surviving spouse is a
14.16shareholder, member, or partner rents the property; and, either (1) a shareholder, member,
14.17or partner of the corporation, joint farm venture, limited liability company, or partnership
14.18occupies and uses the property as a homestead; or (2) the property is at least 40 acres,
14.19including undivided government lots and correctional 40's, and a shareholder, member, or
14.20partner of the tenant-entity is actively farming the property on behalf of the corporation,
14.21joint farm venture, limited liability company, or partnership.
14.22    (d) A person who has received homestead classification for property taxes payable in
14.232000 on the basis of an unqualified legal right under the terms of the trust agreement to
14.24occupy the property as that person's homestead and who continues to use the property as a
14.25homestead; or, a person who received the homestead classification for taxes payable in 2005
14.26under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or
14.27thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable
14.28in 2005.
14.29(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
14.30purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse
14.31of the grantor.
14.32(f) For purposes of this subdivision, the following terms have the meanings given them:
15.1(1) "agricultural property" means the house, garage, other farm buildings and structures,
15.2and agricultural land;
15.3(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
15.4that the phrases "owned by same person" or "under the same ownership" as used in that
15.5subdivision mean and include contiguous tax parcels owned by:
15.6(i) an individual and a trust of which the individual, the individual's spouse, or the
15.7individual's deceased spouse is the grantor; or
15.8(ii) different trusts of which the grantors of each trust are any combination of an
15.9individual, the individual's spouse, or the individual's deceased spouse; and
15.10    For purposes of this subdivision, (3) "grantor" is defined as means the person creating
15.11or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
15.12instrument or through the exercise of a power of appointment.
15.13(g) Noncontiguous land is included as part of a homestead under this subdivision, only
15.14if the homestead is classified as class 2a, as defined in section 273.13, subdivision 23, and
15.15the detached land is located in the same township or city, or not farther than four townships
15.16or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous
15.17lands must notify the county assessor that the noncontiguous land is part of the taxpayer's
15.18homestead, and, if the homestead is located in another county, the taxpayer must also notify
15.19the assessor of the other county.
15.20EFFECTIVE DATE.This section is effective beginning for property taxes payable in
15.212018.

15.22    Sec. 12. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:
15.23    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured
15.24home" means a structure transportable in one or more sections, which is built on a permanent
15.25chassis, and designed to be used as a dwelling with or without a permanent foundation when
15.26connected to the required utilities, and contains the plumbing, heating, air conditioning, and
15.27electrical systems in it. Manufactured home includes any accessory structure that is an
15.28addition or supplement to the manufactured home and, when installed, becomes a part of
15.29the manufactured home.
15.30    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
15.31following criteria must be valued and assessed as an improvement to real property, the
15.32appropriate real property classification applies, and the valuation is subject to review and
15.33the taxes payable in the manner provided for real property:
16.1    (1) the owner of the unit holds title to the land on which it is situated;
16.2    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
16.3in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
16.4and rules adopted under those sections, or is affixed to the land like other real property in
16.5the taxing district; and
16.6    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
16.7by water and sewer facilities comparable to other real property in the taxing district.
16.8    (c) A manufactured home that meets each of the following criteria must be assessed at
16.9the rate provided by the appropriate real property classification but must be treated as
16.10personal property, and the valuation is subject to review and the taxes payable in the manner
16.11provided in this section:
16.12    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
16.13located in a manufactured home park but is not the homestead of the park owner;
16.14    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
16.15in accordance with the Manufactured Home Building Code contained in sections 327.31 to
16.16327.34 , and the rules adopted under those sections, or is affixed to the land like other real
16.17property in the taxing district; and
16.18    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
16.19by water and sewer facilities comparable to other real property in the taxing district.
16.20    (d) Sectional structures must be valued and assessed as an improvement to real property
16.21if the owner of the structure holds title to the land on which it is located or is a qualifying
16.22lessee of the land under section 273.19. In this paragraph "sectional structure" means a
16.23building or structural unit that has been in whole or substantial part manufactured or
16.24constructed at an off-site location to be wholly or partially assembled on site alone or with
16.25other units and attached to a permanent foundation.
16.26    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
16.27Act to establish additional criteria for the classification of manufactured homes and sectional
16.28structures under this subdivision.
16.29    (f) A storage shed, deck, or similar improvement constructed on property that is leased
16.30or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
16.31is taxable as provided in this section. In the case of property that is leased or rented as a site
16.32for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
16.33personal property under this paragraph is taxable only if its total estimated market value is
17.1over $1,000 $10,000. The property is taxable as personal property to the lessee of the site
17.2if it is not owned by the owner of the site. The property is taxable as real estate if it is owned
17.3by the owner of the site. As a condition of permitting the owner of the manufactured home,
17.4sectional structure, park trailer, or travel trailer to construct improvements on the leased or
17.5rented site, the owner of the site must obtain the permanent home address of the lessee or
17.6user of the site. The site owner must provide the name and address to the assessor upon
17.7request.

17.8    Sec. 13. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
17.9    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and
17.10(c), real estate which is residential and used for homestead purposes is class 1a. In the case
17.11of a duplex or triplex in which one of the units is used for homestead purposes, the entire
17.12property is deemed to be used for homestead purposes. The market value of class 1a property
17.13must be determined based upon the value of the house, garage, and land.
17.14    The first $500,000 of market value of class 1a property has a net classification rate of
17.15one percent of its market value; and the market value of class 1a property that exceeds
17.16$500,000 has a classification rate of 1.25 percent of its market value.
17.17    (b) Class 1b property includes homestead real estate or homestead manufactured homes
17.18used for the purposes of a homestead by:
17.19    (1) any person who is blind as defined in section 256D.35, or the blind person and the
17.20blind person's spouse;
17.21    (2) any person who is permanently and totally disabled or by the disabled person and
17.22the disabled person's spouse; or
17.23    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a
17.24property classified under this paragraph for taxes payable in 2008.
17.25    Property is classified and assessed under clause (2) only if the government agency or
17.26income-providing source certifies, upon the request of the homestead occupant, that the
17.27homestead occupant satisfies the disability requirements of this paragraph, and that the
17.28property is not eligible for the valuation exclusion under subdivision 34.
17.29    Property is classified and assessed under paragraph (b) only if the commissioner of
17.30revenue or the county assessor certifies that the homestead occupant satisfies the requirements
17.31of this paragraph.
18.1    Permanently and totally disabled for the purpose of this subdivision means a condition
18.2which is permanent in nature and totally incapacitates the person from working at an
18.3occupation which brings the person an income. The first $50,000 market value of class 1b
18.4property has a net classification rate of .45 percent of its market value. The remaining market
18.5value of class 1b property has a classification rate using the rates for class 1a or class 2a
18.6property, whichever is appropriate, of similar market value.
18.7    (c) Class 1c property is commercial use real and personal property that abuts public
18.8water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
18.9the Department of Natural Resources, and is devoted to temporary and seasonal residential
18.10occupancy for recreational purposes but not devoted to commercial purposes for more than
18.11250 days in the year preceding the year of assessment, and that includes a portion used as
18.12a homestead by the owner, which includes a dwelling occupied as a homestead by a
18.13shareholder of a corporation that owns the resort, a partner in a partnership that owns the
18.14resort, or a member of a limited liability company that owns the resort even if, whether the
18.15title to the homestead is held by the corporation, partnership, or limited liability company,
18.16or by a shareholder of a corporation who owns the resort, a partner in a partnership who
18.17owns the resort, or a member of a limited liability company who owns the resort. For
18.18purposes of this paragraph, property is devoted to a commercial purpose on a specific day
18.19if any portion of the property, excluding the portion used exclusively as a homestead, is
18.20used for residential occupancy and a fee is charged for residential occupancy. Class 1c
18.21property must contain three or more rental units. A "rental unit" is defined as a cabin,
18.22condominium, townhouse, sleeping room, or individual camping site equipped with water
18.23and electrical hookups for recreational vehicles. Class 1c property must provide recreational
18.24activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
18.25or cross-country ski equipment; provide marina services, launch services, or guide services;
18.26or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
18.27to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
18.28for class 1c even though it may remain available for rent. A camping pad offered for rent
18.29by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
18.30the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
18.31the same owner owns two separate parcels that are located in the same township, and one
18.32of those properties is classified as a class 1c property and the other would be eligible to be
18.33classified as a class 1c property if it was used as the homestead of the owner, both properties
18.34will be assessed as a single class 1c property; for purposes of this sentence, properties are
18.35deemed to be owned by the same owner if each of them is owned by a limited liability
18.36company, and both limited liability companies have the same membership. The portion of
19.1the property used as a homestead is class 1a property under paragraph (a). The remainder
19.2of the property is classified as follows: the first $600,000 of market value is tier I, the next
19.3$1,700,000 of market value is tier II, and any remaining market value is tier III. The
19.4classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
19.5percent. Owners of real and personal property devoted to temporary and seasonal residential
19.6occupancy for recreation purposes in which all or a portion of the property was devoted to
19.7commercial purposes for not more than 250 days in the year preceding the year of assessment
19.8desiring classification as class 1c, must submit a declaration to the assessor designating the
19.9cabins or units occupied for 250 days or less in the year preceding the year of assessment
19.10by January 15 of the assessment year. Those cabins or units and a proportionate share of
19.11the land on which they are located must be designated as class 1c as otherwise provided.
19.12The remainder of the cabins or units and a proportionate share of the land on which they
19.13are located must be designated as class 3a commercial. The owner of property desiring
19.14designation as class 1c property must provide guest registers or other records demonstrating
19.15that the units for which class 1c designation is sought were not occupied for more than 250
19.16days in the year preceding the assessment if so requested. The portion of a property operated
19.17as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
19.18other nonresidential facility operated on a commercial basis not directly related to temporary
19.19and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
19.20    (d) Class 1d property includes structures that meet all of the following criteria:
19.21    (1) the structure is located on property that is classified as agricultural property under
19.22section 273.13, subdivision 23;
19.23    (2) the structure is occupied exclusively by seasonal farm workers during the time when
19.24they work on that farm, and the occupants are not charged rent for the privilege of occupying
19.25the property, provided that use of the structure for storage of farm equipment and produce
19.26does not disqualify the property from classification under this paragraph;
19.27    (3) the structure meets all applicable health and safety requirements for the appropriate
19.28season; and
19.29    (4) the structure is not salable as residential property because it does not comply with
19.30local ordinances relating to location in relation to streets or roads.
19.31    The market value of class 1d property has the same classification rates as class 1a property
19.32under paragraph (a).
19.33EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

20.1    Sec. 14. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:
20.2    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land
20.3that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
20.42a land under the same ownership. The market value of the house and garage and immediately
20.5surrounding one acre of land has the same classification rates as class 1a or 1b property
20.6under subdivision 22. The value of the remaining land including improvements up to the
20.7first tier valuation limit of agricultural homestead property has a classification rate of 0.5
20.8percent of market value. The remaining property over the first tier has a classification rate
20.9of one percent of market value. For purposes of this subdivision, the "first tier valuation
20.10limit of agricultural homestead property" and "first tier" means the limit certified under
20.11section 273.11, subdivision 23.
20.12    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
20.13are agricultural land and buildings. Class 2a property has a classification rate of one percent
20.14of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
20.15property must also include any property that would otherwise be classified as 2b, but is
20.16interspersed with class 2a property, including but not limited to sloughs, wooded wind
20.17shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
20.18and other similar land that is impractical for the assessor to value separately from the rest
20.19of the property or that is unlikely to be able to be sold separately from the rest of the property.
20.20    An assessor may classify the part of a parcel described in this subdivision that is used
20.21for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
20.22    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
20.23are unplatted real estate, rural in character and not used for agricultural purposes, including
20.24land used for growing trees for timber, lumber, and wood and wood products, that is not
20.25improved with a structure. The presence of a minor, ancillary nonresidential structure as
20.26defined by the commissioner of revenue does not disqualify the property from classification
20.27under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
20.28a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
20.29assigned to the split parcel containing the structure. Class 2b property has a classification
20.30rate of one percent of market value unless it is part of an agricultural homestead under
20.31paragraph (a), or qualifies as class 2c under paragraph (d).
20.32    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
20.33acres statewide per taxpayer that is being managed under a forest management plan that
20.34meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
21.1management incentive program. It has a classification rate of .65 percent, provided that the
21.2owner of the property must apply to the assessor in order for the property to initially qualify
21.3for the reduced rate and provide the information required by the assessor to verify that the
21.4property qualifies for the reduced rate. If the assessor receives the application and information
21.5before May 1 in an assessment year, the property qualifies beginning with that assessment
21.6year. If the assessor receives the application and information after April 30 in an assessment
21.7year, the property may not qualify until the next assessment year. The commissioner of
21.8natural resources must concur that the land is qualified. The commissioner of natural
21.9resources shall annually provide county assessors verification information on a timely basis.
21.10The presence of a minor, ancillary nonresidential structure as defined by the commissioner
21.11of revenue does not disqualify the property from classification under this paragraph.
21.12    (e) Agricultural land as used in this section means:
21.13    (1) contiguous acreage of ten acres or more, used during the preceding year for
21.14agricultural purposes; or
21.15    (2) contiguous acreage used during the preceding year for an intensive livestock or
21.16poultry confinement operation, provided that land used only for pasturing or grazing does
21.17not qualify under this clause.
21.18    "Agricultural purposes" as used in this section means the raising, cultivation, drying, or
21.19storage of agricultural products for sale, or the storage of machinery or equipment used in
21.20support of agricultural production by the same farm entity. For a property to be classified
21.21as agricultural based only on the drying or storage of agricultural products, the products
21.22being dried or stored must have been produced by the same farm entity as the entity operating
21.23the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest
21.24in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation
21.25Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal
21.26conservation program if the property was classified as agricultural (i) under this subdivision
21.27for taxes payable in 2003 because of its enrollment in a qualifying program and the land
21.28remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a
21.29local conservation program means a program administered by a town, statutory or home
21.30rule charter city, or county, including a watershed district, water management organization,
21.31or soil and water conservation district, in which landowners voluntarily enroll land and
21.32receive incentive payments in exchange for use or other restrictions placed on the land.
21.33Agricultural classification shall not be based upon the market value of any residential
21.34structures on the parcel or contiguous parcels under the same ownership.
22.1    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
22.2portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
22.3of, a set of contiguous tax parcels under that section that are owned by the same person.
22.4    (f) Agricultural land under this section also includes:
22.5    (1) contiguous acreage that is less than ten acres in size and exclusively used in the
22.6preceding year for raising or cultivating agricultural products; or
22.7    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
22.8contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
22.9used in the preceding year for one or more of the following three uses:
22.10    (i) for an intensive grain drying or storage operation, or for intensive machinery or
22.11equipment storage activities used to support agricultural activities on other parcels of property
22.12operated by the same farming entity;
22.13    (ii) as a nursery, provided that only those acres used intensively to produce nursery stock
22.14are considered agricultural land; or
22.15    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
22.16means the cultivation of one or more fruits or vegetables or production of animal or other
22.17agricultural products for sale to local markets by the farmer or an organization with which
22.18the farmer is affiliated.
22.19    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
22.20described in section 272.193, or all of a set of contiguous tax parcels under that section that
22.21are owned by the same person.
22.22    (g) Land shall be classified as agricultural even if all or a portion of the agricultural use
22.23of that property is the leasing to, or use by another person for agricultural purposes.
22.24    Classification under this subdivision is not determinative for qualifying under section
22.25273.111 .
22.26    (h) The property classification under this section supersedes, for property tax purposes
22.27only, any locally administered agricultural policies or land use restrictions that define
22.28minimum or maximum farm acreage.
22.29    (i) The term "agricultural products" as used in this subdivision includes production for
22.30sale of:
23.1    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
23.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
23.3and apiary products by the owner;
23.4    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
23.5agricultural use;
23.6    (3) the commercial boarding of horses, which may include related horse training and
23.7riding instruction, if the boarding is done on property that is also used for raising pasture
23.8to graze horses or raising or cultivating other agricultural products as defined in clause (1);
23.9    (4) property which is owned and operated by nonprofit organizations used for equestrian
23.10activities, excluding racing;
23.11    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
23.1297A.105 , provided that the annual licensing report to the Department of Natural Resources,
23.13which must be submitted annually by March 30 to the assessor, indicates that at least 500
23.14birds were raised or used for breeding stock on the property during the preceding year and
23.15that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
23.16shooting preserve licensed under section 97A.115;
23.17    (6) insects primarily bred to be used as food for animals;
23.18    (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
23.19for timber, lumber, wood, or wood products; and
23.20    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
23.21Department of Agriculture under chapter 28A as a food processor.
23.22    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
23.23purposes, including but not limited to:
23.24    (1) wholesale and retail sales;
23.25    (2) processing of raw agricultural products or other goods;
23.26    (3) warehousing or storage of processed goods; and
23.27    (4) office facilities for the support of the activities enumerated in clauses (1), (2), and
23.28(3),
23.29the assessor shall classify the part of the parcel used for agricultural purposes as class 1b,
23.302a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
23.31The grading, sorting, and packaging of raw agricultural products for first sale is considered
23.32an agricultural purpose. A greenhouse or other building where horticultural or nursery
24.1products are grown that is also used for the conduct of retail sales must be classified as
24.2agricultural if it is primarily used for the growing of horticultural or nursery products from
24.3seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
24.4Use of a greenhouse or building only for the display of already grown horticultural or nursery
24.5products does not qualify as an agricultural purpose.
24.6    (k) The assessor shall determine and list separately on the records the market value of
24.7the homestead dwelling and the one acre of land on which that dwelling is located. If any
24.8farm buildings or structures are located on this homesteaded acre of land, their market value
24.9shall not be included in this separate determination.
24.10    (l) Class 2d airport landing area consists of a landing area or public access area of a
24.11privately owned public use airport. It has a classification rate of one percent of market value.
24.12To qualify for classification under this paragraph, a privately owned public use airport must
24.13be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
24.14area" means that part of a privately owned public use airport properly cleared, regularly
24.15maintained, and made available to the public for use by aircraft and includes runways,
24.16taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
24.17area also includes land underlying both the primary surface and the approach surfaces that
24.18comply with all of the following:
24.19    (i) the land is properly cleared and regularly maintained for the primary purposes of the
24.20landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
24.21for servicing, repair, or maintenance of aircraft is not included as a landing area;
24.22    (ii) the land is part of the airport property; and
24.23    (iii) the land is not used for commercial or residential purposes.
24.24The land contained in a landing area under this paragraph must be described and certified
24.25by the commissioner of transportation. The certification is effective until it is modified, or
24.26until the airport or landing area no longer meets the requirements of this paragraph. For
24.27purposes of this paragraph, "public access area" means property used as an aircraft parking
24.28ramp, apron, or storage hangar, or an arrival and departure building in connection with the
24.29airport.
24.30    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
24.31being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
24.32located in a county that has elected to opt-out of the aggregate preservation program as
24.33provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
24.34market value. To qualify for classification under this paragraph, the property must be at
25.1least ten contiguous acres in size and the owner of the property must record with the county
25.2recorder of the county in which the property is located an affidavit containing:
25.3    (1) a legal description of the property;
25.4    (2) a disclosure that the property contains a commercial aggregate deposit that is not
25.5actively being mined but is present on the entire parcel enrolled;
25.6    (3) documentation that the conditional use under the county or local zoning ordinance
25.7of this property is for mining; and
25.8    (4) documentation that a permit has been issued by the local unit of government or the
25.9mining activity is allowed under local ordinance. The disclosure must include a statement
25.10from a registered professional geologist, engineer, or soil scientist delineating the deposit
25.11and certifying that it is a commercial aggregate deposit.
25.12    For purposes of this section and section 273.1115, "commercial aggregate deposit"
25.13means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
25.14a construction aggregate; and "actively mined" means the removal of top soil and overburden
25.15in preparation for excavation or excavation of a commercial deposit.
25.16    (n) When any portion of the property under this subdivision or subdivision 22 begins to
25.17be actively mined, the owner must file a supplemental affidavit within 60 days from the
25.18day any aggregate is removed stating the number of acres of the property that is actively
25.19being mined. The acres actively being mined must be (1) valued and classified under
25.20subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
25.21resource preservation property tax program under section 273.1115, if the land was enrolled
25.22in that program. Copies of the original affidavit and all supplemental affidavits must be
25.23filed with the county assessor, the local zoning administrator, and the Department of Natural
25.24Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
25.25time a subsequent portion of the property is actively mined, provided that the minimum
25.26acreage change is five acres, even if the actual mining activity constitutes less than five
25.27acres.
25.28    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
25.29rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
25.30section 14.386 concerning exempt rules do not apply.
25.31EFFECTIVE DATE.This section is effective beginning with assessment year 2018.

26.1    Sec. 15. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:
26.2    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units
26.3and used or held for use by the owner or by the tenants or lessees of the owner as a residence
26.4for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
26.5also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
26.6under section 272.02, and contiguous property used for hospital purposes, without regard
26.7to whether the property has been platted or subdivided. The market value of class 4a property
26.8has a classification rate of 1.25 percent.
26.9    (b) Class 4b includes:
26.10    (1) residential real estate containing less than four units that does not qualify as class
26.114bb, other than seasonal residential recreational property;
26.12    (2) manufactured homes not classified under any other provision;
26.13    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
26.14classified under subdivision 23, paragraph (b) containing two or three units; and
26.15    (4) unimproved property that is classified residential as determined under subdivision
26.1633.
26.17    The market value of class 4b property has a classification rate of 1.25 percent.
26.18    (c) Class 4bb includes:
26.19    (1) nonhomestead residential real estate containing one unit, other than seasonal
26.20residential recreational property, and a single family dwelling, garage,;
26.21    (2) single-family dwellings including garages and the surrounding one acre of property
26.22on a nonhomestead farm farms classified under subdivision 23, paragraph (b); and
26.23    (3) condominium-type storage units having individual legal descriptions that are not
26.24used for commercial purposes.
26.25    Class 4bb property has the same classification rates as class 1a property under subdivision
26.2622.
26.27    Property that has been classified as seasonal residential recreational property at any time
26.28during which it has been owned by the current owner or spouse of the current owner does
26.29not qualify for class 4bb.
26.30    (d) Class 4c property includes:
27.1    (1) except as provided in subdivision 22, paragraph (c), real and personal property
27.2devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
27.3for not more than 250 days in the year preceding the year of assessment. For purposes of
27.4this clause, property is devoted to a commercial purpose on a specific day if any portion of
27.5the property is used for residential occupancy, and a fee is charged for residential occupancy.
27.6Class 4c property under this clause must contain three or more rental units. A "rental unit"
27.7is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
27.8equipped with water and electrical hookups for recreational vehicles. A camping pad offered
27.9for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
27.10under this clause regardless of the term of the rental agreement, as long as the use of the
27.11camping pad does not exceed 250 days. In order for a property to be classified under this
27.12clause, either (i) the business located on the property must provide recreational activities,
27.13at least 40 percent of the annual gross lodging receipts related to the property must be from
27.14business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
27.15bookings by lodging guests during the year must be for periods of at least two consecutive
27.16nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
27.17providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
27.18and must be located in a township or a city with a population of 2,500 or less located outside
27.19the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
27.20of a state trail administered by the Department of Natural Resources. For purposes of item
27.21(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
27.22property also includes commercial use real property used exclusively for recreational
27.23purposes in conjunction with other class 4c property classified under this clause and devoted
27.24to temporary and seasonal residential occupancy for recreational purposes, up to a total of
27.25two acres, provided the property is not devoted to commercial recreational use for more
27.26than 250 days in the year preceding the year of assessment and is located within two miles
27.27of the class 4c property with which it is used. In order for a property to qualify for
27.28classification under this clause, the owner must submit a declaration to the assessor
27.29designating the cabins or units occupied for 250 days or less in the year preceding the year
27.30of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
27.31share of the land on which they are located must be designated class 4c under this clause
27.32as otherwise provided. The remainder of the cabins or units and a proportionate share of
27.33the land on which they are located will be designated as class 3a. The owner of property
27.34desiring designation as class 4c property under this clause must provide guest registers or
27.35other records demonstrating that the units for which class 4c designation is sought were not
27.36occupied for more than 250 days in the year preceding the assessment if so requested. The
28.1portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
28.2or meeting room, and (5) other nonresidential facility operated on a commercial basis not
28.3directly related to temporary and seasonal residential occupancy for recreation purposes
28.4does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
28.5means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
28.6ski equipment; providing marina services, launch services, or guide services; or selling bait
28.7and fishing tackle;
28.8    (2) qualified property used as a golf course if:
28.9    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
28.10but a membership fee may not be required in order to use the property for golfing, and its
28.11green fees for golfing must be comparable to green fees typically charged by municipal
28.12courses; and
28.13    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
28.14    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
28.15the golf course is classified as class 3a property;
28.16    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
28.17community service oriented organization and not used for residential purposes on either a
28.18temporary or permanent basis, provided that:
28.19    (i) the property is not used for a revenue-producing activity for more than six days in
28.20the calendar year preceding the year of assessment; or
28.21    (ii) the organization makes annual charitable contributions and donations at least equal
28.22to the property's previous year's property taxes and the property is allowed to be used for
28.23public and community meetings or events for no charge, as appropriate to the size of the
28.24facility.
28.25    For purposes of this clause:
28.26    (A) "charitable contributions and donations" has the same meaning as lawful gambling
28.27purposes under section 349.12, subdivision 25, excluding those purposes relating to the
28.28payment of taxes, assessments, fees, auditing costs, and utility payments;
28.29    (B) "property taxes" excludes the state general tax;
28.30    (C) a "nonprofit community service oriented organization" means any corporation,
28.31society, association, foundation, or institution organized and operated exclusively for
28.32charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
29.1federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
29.2Revenue Code; and
29.3    (D) "revenue-producing activities" shall include but not be limited to property or that
29.4portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
29.5liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
29.6alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
29.7insurance business, or office or other space leased or rented to a lessee who conducts a
29.8for-profit enterprise on the premises.
29.9    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
29.10use of the property for social events open exclusively to members and their guests for periods
29.11of less than 24 hours, when an admission is not charged nor any revenues are received by
29.12the organization shall not be considered a revenue-producing activity.
29.13    The organization shall maintain records of its charitable contributions and donations
29.14and of public meetings and events held on the property and make them available upon
29.15request any time to the assessor to ensure eligibility. An organization meeting the requirement
29.16under item (ii) must file an application by May 1 with the assessor for eligibility for the
29.17current year's assessment. The commissioner shall prescribe a uniform application form
29.18and instructions;
29.19    (4) postsecondary student housing of not more than one acre of land that is owned by a
29.20nonprofit corporation organized under chapter 317A and is used exclusively by a student
29.21cooperative, sorority, or fraternity for on-campus housing or housing located within two
29.22miles of the border of a college campus;
29.23    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
29.24manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured
29.25home parks as defined in section 327.14, subdivision 3, that are described in section 273.124,
29.26subdivision 3a ;
29.27    (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
29.28recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
29.29located within the metropolitan area as defined in section 473.121, subdivision 2;
29.30    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
29.31section 272.01, subdivision 2, and the land on which it is located, provided that:
29.32    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
29.33Airports Commission, or group thereof; and
30.1    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
30.2premise, prohibits commercial activity performed at the hangar.
30.3    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
30.4filed by the new owner with the assessor of the county where the property is located within
30.560 days of the sale;
30.6    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
30.7272.01, subdivision 2 , and the land on which it is located, provided that:
30.8    (i) the land abuts a public airport; and
30.9    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
30.10restricting the use of the premises, prohibiting commercial use or activity performed at the
30.11hangar; and
30.12    (9) residential real estate, a portion of which is used by the owner for homestead purposes,
30.13and that is also a place of lodging, if all of the following criteria are met:
30.14    (i) rooms are provided for rent to transient guests that generally stay for periods of 14
30.15or fewer days;
30.16    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
30.17the basic room rate;
30.18    (iii) meals are not provided to the general public except for special events on fewer than
30.19seven days in the calendar year preceding the year of the assessment; and
30.20    (iv) the owner is the operator of the property.
30.21    The market value subject to the 4c classification under this clause is limited to five rental
30.22units. Any rental units on the property in excess of five, must be valued and assessed as
30.23class 3a. The portion of the property used for purposes of a homestead by the owner must
30.24be classified as class 1a property under subdivision 22;
30.25    (10) real property up to a maximum of three acres and operated as a restaurant as defined
30.26under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
30.27section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
30.28commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
30.29of its annual gross receipts from business conducted during four consecutive months. Gross
30.30receipts from the sale of alcoholic beverages must be included in determining the property's
30.31qualification under item (ii). The property's primary business must be as a restaurant and
30.32not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
31.1Owners of real property desiring 4c classification under this clause must submit an annual
31.2declaration to the assessor by February 1 of the current assessment year, based on the
31.3property's relevant information for the preceding assessment year;
31.4(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
31.5a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
31.6and devoted to recreational use for marina services. The marina owner must annually provide
31.7evidence to the assessor that it provides services, including lake or river access to the public
31.8by means of an access ramp or other facility that is either located on the property of the
31.9marina or at a publicly owned site that abuts the property of the marina. No more than 800
31.10feet of lakeshore may be included in this classification. Buildings used in conjunction with
31.11a marina for marina services, including but not limited to buildings used to provide food
31.12and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
31.13as class 3a property; and
31.14(12) real and personal property devoted to noncommercial temporary and seasonal
31.15residential occupancy for recreation purposes.
31.16    Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
31.17each parcel of noncommercial seasonal residential recreational property under clause (12)
31.18has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
31.19under clause (5), item (i), have the same classification rate as class 4b property, and the
31.20market value of manufactured home parks assessed under clause (5), item (ii), has a
31.21classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied
31.22by shareholders in the cooperative corporation or association and a classification rate of
31.23one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal
31.24residential recreational property and marina recreational land as described in clause (11),
31.25has a classification rate of one percent for the first $500,000 of market value, and 1.25
31.26percent for the remaining market value, (iv) the market value of property described in clause
31.27(4) has a classification rate of one percent, (v) the market value of property described in
31.28clauses (2), (6), and (10) has a classification rate of 1.25 percent, and (vi) that portion of
31.29the market value of property in clause (9) qualifying for class 4c property has a classification
31.30rate of 1.25 percent, and (vii) property qualifying for classification under clause (3) that is
31.31owned or operated by a congressionally chartered veterans organization has a classification
31.32rate of one percent. The commissioner of veterans affairs must provide a list of
31.33congressionally chartered veterans organizations to the commissioner of revenue by June
31.3430, 2017, and by January 1, 2018, and each year thereafter.
32.1    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
32.2by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
32.3the units in the building qualify as low-income rental housing units as certified under section
32.4273.128, subdivision 3 , only the proportion of qualifying units to the total number of units
32.5in the building qualify for class 4d. The remaining portion of the building shall be classified
32.6by the assessor based upon its use. Class 4d also includes the same proportion of land as
32.7the qualifying low-income rental housing units are to the total units in the building. For all
32.8properties qualifying as class 4d, the market value determined by the assessor must be based
32.9on the normal approach to value using normal unrestricted rents.
32.10    (f) The first tier of market value of class 4d property has a classification rate of 0.75
32.11percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
32.12For the purposes of this paragraph, the "first tier of market value of class 4d property" means
32.13the market value of each housing unit up to the first tier limit. For the purposes of this
32.14paragraph, all class 4d property value must be assigned to individual housing units. The
32.15first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
32.16adjusted each year by the average statewide change in estimated market value of property
32.17classified as class 4a and 4d under this section for the previous assessment year, excluding
32.18valuation change due to new construction, rounded to the nearest $1,000, provided, however,
32.19that the limit may never be less than $100,000. Beginning with assessment year 2015, the
32.20commissioner of revenue must certify the limit for each assessment year by November 1
32.21of the previous year.
32.22EFFECTIVE DATE.This section is effective beginning with taxes assessed in 2017
32.23and payable in 2018.

32.24    Sec. 16. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
32.25    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of
32.26the market value of property owned by a veteran and serving as the veteran's homestead
32.27under this section is excluded in determining the property's taxable market value if the
32.28veteran has a service-connected disability of 70 percent or more as certified by the United
32.29States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
32.30veteran must have been honorably discharged from the United States armed forces, as
32.31indicated by United States Government Form DD214 or other official military discharge
32.32papers.
32.33    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
32.34except as provided in clause (2); and
33.1    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
33.2excluded.
33.3    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
33.4(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
33.5the legal or beneficial title to the homestead and permanently resides there, the exclusion
33.6shall carry over to the benefit of the veteran's spouse for the current taxes payable year and
33.7for eight additional taxes payable years or until such time as the spouse remarries, or sells,
33.8transfers, or otherwise disposes of the property, whichever comes first. Qualification under
33.9this paragraph requires an annual application under paragraph (h), and a spouse must notify
33.10the assessor if there is a change in the spouse's marital status, ownership of the property, or
33.11use of the property as a permanent residence.
33.12(d) If the spouse of a member of any branch or unit of the United States armed forces
33.13who dies due to a service-connected cause while serving honorably in active service, as
33.14indicated on United States Government Form DD1300 or DD2064, holds the legal or
33.15beneficial title to a homestead and permanently resides there, the spouse is entitled to the
33.16benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
33.17time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
33.18whichever comes first.
33.19(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
33.20classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
33.21family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
33.22for under paragraph (b).
33.23    (f) In the case of an agricultural homestead, only the portion of the property consisting
33.24of the house and garage and immediately surrounding one acre of land qualifies for the
33.25valuation exclusion under this subdivision.
33.26    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
33.27for the market value exclusion under subdivision 35, or classification under subdivision 22,
33.28paragraph (b).
33.29    (h) To qualify for a valuation exclusion under this subdivision a property owner must
33.30apply to the assessor by July 1 of each assessment year, except that an annual reapplication
33.31is not required once a property has been accepted for a valuation exclusion under paragraph
33.32(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
33.33continues to qualify until there is a change in ownership of the first assessment year for
33.34which the exclusion is sought. For an application received after July 1 of any calendar year,
34.1the exclusion shall become effective for the following assessment year. Except as provided
34.2in paragraph (c), the owner of a property that has been accepted for a valuation exclusion
34.3must notify the assessor if there is a change in ownership of the property or in the use of
34.4the property as a homestead.
34.5(i) A first-time application by a qualifying spouse for the market value exclusion under
34.6paragraph (d) must be made any time within two years of the death of the service member.
34.7(j) For purposes of this subdivision:
34.8(1) "active service" has the meaning given in section 190.05;
34.9(2) "own" means that the person's name is present as an owner on the property deed;
34.10(3) "primary family caregiver" means a person who is approved by the secretary of the
34.11United States Department of Veterans Affairs for assistance as the primary provider of
34.12personal care services for an eligible veteran under the Program of Comprehensive Assistance
34.13for Family Caregivers, codified as United States Code, title 38, section 1720G; and
34.14(4) "veteran" has the meaning given the term in section 197.447.
34.15(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
34.16under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
34.17under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
34.18or sells, transfers, or otherwise disposes of the property if:
34.19(1) the spouse files a first-time application within two years of the death of the service
34.20member or by June 1, 2019, whichever is later;
34.21(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
34.22homestead and permanently resides there;
34.23(3) the veteran met the honorable discharge requirements of paragraph (a); and
34.24(4) the United States Department of Veterans Affairs certifies that:
34.25(i) the veteran met the total (100 percent) and permanent disability requirement under
34.26paragraph (b), clause (2); or
34.27(ii) the spouse has been awarded dependency and indemnity compensation.
34.28(l) The purpose of this provision of law providing a level of homestead property tax
34.29relief for gravely disabled veterans, their primary family caregivers, and their surviving
34.30spouses is to help ease the burdens of war for those among our state's citizens who bear
34.31those burdens most heavily.
35.1(m) By July 1, the county veterans service officer must certify the disability rating of
35.2each veteran receiving the benefit under paragraph (b) to the assessor.
35.3EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

35.4    Sec. 17. [274.132] PROPERTY OVERVALUED.
35.5    Subdivision 1. Valuation appeals. Notwithstanding any other law to the contrary, when
35.6the value of a property is reduced by a local, special, or county board of appeal and
35.7equalization, the state board of equalization, an order from the Minnesota Tax Court, or an
35.8abatement to correct an error in valuation, a property owner may appeal the valuation of
35.9the property for the taxes payable year immediately preceding the year for which the value
35.10is reduced, provided that the valuation of the property for the immediately preceding taxes
35.11payable year was not previously appealed. An appeal under this subdivision may only be
35.12taken to the Minnesota Tax Court.
35.13    Subd. 2. Credit for overpayment of tax. (a) The county auditor shall credit any refund
35.14determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's
35.15tax payable on the property according to the following schedule:
35.16(1) if the refund is less than 25 percent of the total tax payable on the property for the
35.17current year, it shall be credited to the tax payable on the property in the succeeding taxes
35.18payable year; or
35.19(2) if the refund is 25 percent or more of the total tax payable on the property for the
35.20current year, beginning in the succeeding taxes payable year, it shall be credited to the tax
35.21payable on the property at a rate of 25 percent of the property taxes due per year until
35.22credited in full.
35.23(b) The credit under this subdivision shall reduce the tax payable to each jurisdiction in
35.24proportion to the total tax payable on the property.
35.25EFFECTIVE DATE.This section is effective for appeals, orders, and abatements in
35.262018 and thereafter.

35.27    Sec. 18. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
35.28    Subdivision 1. Levy amount. The state general levy is levied against
35.29commercial-industrial property and seasonal residential recreational property, as defined
35.30in this section. The state general levy base amount is $592,000,000 for commercial-industrial
35.31property is $713,050,000 for taxes payable in 2002 2018 and thereafter. For taxes payable
35.32in subsequent years, the levy base amount is increased each year by multiplying the levy
36.1base amount for the prior year by the sum of one plus the rate of increase, if any, in the
36.2implicit price deflator for government consumption expenditures and gross investment for
36.3state and local governments prepared by the Bureau of Economic Analysts of the United
36.4States Department of Commerce for the 12-month period ending March 31 of the year prior
36.5to the year the taxes are payable. The state general levy for seasonal-recreational property
36.6is $43,130,000 for taxes payable in 2018 and thereafter. The tax under this section is not
36.7treated as a local tax rate under section 469.177 and is not the levy of a governmental unit
36.8under chapters 276A and 473F.
36.9The commissioner shall increase or decrease the preliminary or final rate for a year as
36.10necessary to account for errors and tax base changes that affected a preliminary or final rate
36.11for either of the two preceding years. Adjustments are allowed to the extent that the necessary
36.12information is available to the commissioner at the time the rates for a year must be certified,
36.13and for the following reasons:
36.14(1) an erroneous report of taxable value by a local official;
36.15(2) an erroneous calculation by the commissioner; and
36.16(3) an increase or decrease in taxable value for commercial-industrial or seasonal
36.17residential recreational property reported on the abstracts of tax lists submitted under section
36.18275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
36.19for the same year.
36.20The commissioner may, but need not, make adjustments if the total difference in the tax
36.21levied for the year would be less than $100,000.
36.22EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

36.23    Sec. 19. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
36.24    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
36.25"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
36.26as class 3 or class 5(1) under section 273.13, except for excluding:
36.27(1) the tax capacity attributable to the first $200,000 of market value of each parcel of
36.28commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
36.29and (2);
36.30(2) electric generation attached machinery under class 3; and
36.31(3) property described in section 473.625.
37.1County commercial-industrial tax capacity amounts are not adjusted for the captured
37.2net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
37.3the net tax capacity of transmission lines deducted from a local government's total net tax
37.4capacity under section 273.425, or fiscal disparities contribution and distribution net tax
37.5capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
37.6for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
37.7(2), shall apply in determining the portion of a property eligible to be considered within the
37.8first $200,000 of market value.
37.9EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

37.10    Sec. 20. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
37.11    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The
37.12state general tax must be levied by applying a uniform rate to all commercial-industrial tax
37.13capacity and five percent of the state general tax must be levied by applying a uniform rate
37.14to all seasonal residential recreational tax capacity. On or before October 1 each year, the
37.15commissioner of revenue shall certify the preliminary state general levy rates to each county
37.16auditor that must be used to prepare the notices of proposed property taxes for taxes payable
37.17in the following year. By January 1 of each year, the commissioner shall certify the final
37.18state general levy rate rates to each county auditor that shall be used in spreading taxes.
37.19EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

37.20    Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
37.21to read:
37.22    Subd. 5. Underserved municipalities distribution. (a) Any municipality that:
37.23(1) lies wholly or partially within the metropolitan area as defined under section 473.121,
37.24subdivision 2, but outside the transit taxing district as defined under section 473.446,
37.25subdivision 2; and
37.26(2) has a net fiscal disparities contribution equal to or greater than eight percent of its
37.27total taxable net tax capacity,
37.28is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers
37.29within the municipality.
37.30(b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2)
37.31the municipality's net fiscal disparities contribution in excess of eight percent of its total
38.1taxable net tax capacity; provided, however, that the distribution may not exceed the tax
38.2under this section imposed on taxpayers within the municipality.
38.3(c) The distribution under this subdivision must be paid to the qualifying municipality
38.4at the same time taxes are settled under sections 276.09 to 276.111.
38.5(d) For purposes of this subdivision, the following terms have the meanings given.
38.6(1) "Municipality" means a home rule or statutory city, or a town, except that in the case
38.7of a city that lies only partially within the metropolitan area, municipality means the portion
38.8of the city lying within the metropolitan area.
38.9(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities
38.10contribution tax capacity minus its distribution net tax capacity.
38.11(3) "Total taxable net tax capacity" means the total net tax capacity of all properties in
38.12the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and
38.13(ii) the municipality's tax increment captured net tax capacity.
38.14EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

38.15    Sec. 22. Minnesota Statutes 2016, section 275.066, is amended to read:
38.16275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
38.17    For the purposes of property taxation and property tax state aids, the term "special taxing
38.18districts" includes the following entities:
38.19    (1) watershed districts under chapter 103D;
38.20    (2) sanitary districts under sections 442A.01 to 442A.29;
38.21    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
38.22    (4) regional public library districts under section 134.201;
38.23    (5) park districts under chapter 398;
38.24    (6) regional railroad authorities under chapter 398A;
38.25    (7) hospital districts under sections 447.31 to 447.38;
38.26    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
38.27    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
38.28    (10) regional development commissions under sections 462.381 to 462.398;
38.29    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
39.1    (12) port authorities under sections 469.048 to 469.068;
39.2    (13) economic development authorities under sections 469.090 to 469.1081;
39.3    (14) Metropolitan Council under sections 473.123 to 473.549;
39.4    (15) Metropolitan Airports Commission under sections 473.601 to 473.679;
39.5    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
39.6    (17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
39.7437, section 1;
39.8    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
39.9    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
39.101 to 6;
39.11    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
39.12section 39;
39.13    (21) Middle Mississippi River Watershed Management Organization under sections
39.14103B.211 and 103B.241;
39.15    (22) emergency medical services special taxing districts under section 144F.01;
39.16    (23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251,
39.17or 103C.331 ;
39.18    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
39.19under Laws 2003, First Special Session chapter 21, article 4, section 12;
39.20    (25) an airport authority created under section 360.0426; and
39.21    (26) any other political subdivision of the state of Minnesota, excluding counties, school
39.22districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
39.23county auditor, as determined by the commissioner of revenue.

39.24    Sec. 23. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read:
39.25    Subd. 3. United States Postal Service postmark Proof of timely payment. The
39.26postmark or registration mark of the United States Postal Service qualifies as proof of timely
39.27mailing for this section. If the payment is sent by United States registered mail, the date of
39.28registration is the postmark date. If the payment is sent by United States certified mail, the
39.29date of the United States Postal Service postmark on the receipt given to the person presenting
39.30the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also
40.1be established by a delivery service's records or other available evidence except that. The
40.2postmark of a private postage meter or internet stamp may not be used as proof of a timely
40.3mailing made under this section.

40.4    Sec. 24. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
40.5    Subdivision 1. Due dates; penalties. Except as provided in subdivisions 3 to 5, on May
40.616 or 21 days after the postmark date on the envelope containing the property tax statement,
40.7whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real
40.8estate on the current lists in the hands of the county treasurer. The (a) When the taxes against
40.9any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May
40.1016, and the remaining one-half must be paid prior to the following October 16. If either tax
40.11amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead
40.12property until May 31 and four percent on nonhomestead property. If complete payment
40.13has not been made by the first day of the month following either due date, an additional
40.14penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four
40.15percent until May 31 homestead property and eight four percent on June 1. This penalty
40.16does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope
40.17containing the property tax statements, whichever is later, on commercial use real property
40.18used for seasonal residential recreational purposes and classified as class 1c or 4c, and on
40.19other commercial use real property classified as class 3a, provided that over 60 percent of
40.20the gross income earned by the enterprise on the class 3a property is earned during the
40.21months of May, June, July, and August. In order for the first half of the tax due on class 3a
40.22property to be paid after May 15 and before June 1, or 21 days after the postmark date on
40.23the envelope containing the property tax statement, whichever is later, without penalty, the
40.24owner of the property must attach an affidavit to the payment attesting to compliance with
40.25the income provision of this subdivision nonhomestead property is imposed. Thereafter,
40.26for both homestead and nonhomestead property, on the first day of each subsequent month
40.27beginning July 1, up to and including October 1 following through December, an additional
40.28penalty of one percent for each month accrues and is charged on all such unpaid taxes
40.29provided that if the due date was extended beyond May 15 as the result of any delay in
40.30mailing property tax statements no additional penalty shall accrue if the tax is paid by the
40.31extended due date. If the tax is not paid by the extended due date, then all penalties that
40.32would have accrued if the due date had been May 15 shall be charged. When the taxes
40.33against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21
40.34days after the postmark date on the envelope containing the property tax statement, whichever
40.35is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time
41.1prior to October 16 following, without penalty; but, if not so paid, then a penalty of two
41.2percent accrues thereon for homestead property and a penalty of four percent on
41.3nonhomestead property. Thereafter, for homestead property, on the first day of November
41.4an additional penalty of four percent accrues and on the first day of December following,
41.5an additional penalty of two percent accrues and is charged on all such unpaid taxes.
41.6Thereafter, for nonhomestead property, on the first day of November and December
41.7following, an additional penalty of four percent for each month accrues and is charged on
41.8all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after
41.9the postmark date on the envelope containing the property tax statement, whichever is later,
41.10the same may be paid at any time prior to October 16, with accrued penalties to the date of
41.11payment added, and thereupon no penalty attaches to the remaining one-half until October
41.1216 following the penalty must not exceed eight percent in the case of homestead property,
41.13or 12 percent in the case of nonhomestead property.
41.14(b) If the property tax statement was not postmarked prior to April 25, the first half
41.15payment due date in paragraph (a) shall be 21 days from the postmark date of the property
41.16tax statement, and all penalties referenced in paragraph (a) shall be determined with regard
41.17to the later due date.
41.18(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as
41.19specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount
41.20of the tax due.
41.21(d) For commercial use real property used for seasonal residential recreational purposes
41.22and classified as class 1c or 4c, and on other commercial use real property classified as class
41.233a, provided that over 60 percent of the gross income earned by the enterprise on the class
41.243a property is earned during the months of May, June, July, and August, the first half
41.25payment is due prior to June 1. For a class 3a property to qualify for the later due date, the
41.26owner of the property must attach an affidavit to the payment attesting to compliance with
41.27the income requirements of this paragraph.
41.28    (e) This section applies to payment of personal property taxes assessed against
41.29improvements to leased property, except as provided by section 277.01, subdivision 3.
41.30    (f) A county may provide by resolution that in the case of a property owner that has
41.31multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
41.32installments as provided in this subdivision.
41.33    (g) The county treasurer may accept payments of more or less than the exact amount of
41.34a tax installment due. Payments must be applied first to the oldest installment that is due
42.1but which has not been fully paid. If the accepted payment is less than the amount due,
42.2payments must be applied first to the penalty accrued for the year or the installment being
42.3paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
42.4payment required as a condition for filing an appeal under section 278.03 or any other law,
42.5nor does it affect the order of payment of delinquent taxes under section 280.39.
42.6EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

42.7    Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
42.8    Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the
42.9county treasurer, delegate to the county treasurer the power to abate the penalty provided
42.10for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county
42.11board so elects, the county treasurer may abate the penalty on finding that the imposition
42.12of the penalty would be unjust and unreasonable.
42.13(b) The county treasurer shall abate the penalty provided for late payment of taxes in
42.14the current year if the property tax payment is delivered by mail to the county treasurer and
42.15the envelope containing the payment is postmarked by the United States Postal Service
42.16within one business day of the due date prescribed under this section, but only if the property
42.17owner requesting the abatement has not previously received an abatement of penalty for
42.18late payment of tax under this paragraph.
42.19EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and
42.20thereafter.

42.21    Sec. 26. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
42.22    Subd. 3. Agricultural property. (a) In the case of class 1b agricultural homestead, class
42.232a agricultural homestead property, and class 2a agricultural nonhomestead property, and
42.24class 2b rural vacant land, no penalties shall attach to the second one-half property tax
42.25payment as provided in this section if paid by November 15. Thereafter for class 1b
42.26agricultural homestead and class 2a homestead property, on November 16 following, a
42.27penalty of six percent shall accrue and be charged on all such unpaid taxes and on December
42.281 following, an additional two percent shall be charged on all such unpaid taxes. Thereafter
42.29for class 2a agricultural nonhomestead property, on November 16 following, a penalty of
42.30eight percent shall accrue and be charged on all such unpaid taxes and on December 1
42.31following, an additional four percent shall be charged on all such unpaid taxes, penalties
42.32shall attach as provided in subdivision 1.
43.1If the owner of class 1b agricultural homestead or class 2a agricultural property receives
43.2a consolidated property tax statement that shows only an aggregate of the taxes and special
43.3assessments due on that property and on other property not classified as class 1b agricultural
43.4homestead or class 2a agricultural property, the aggregate tax and special assessments shown
43.5due on the property by the consolidated statement will be due on November 15.
43.6(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b
43.7property that was subject to a second-half due date of November 15 for taxes payable in
43.82009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of
43.9those that would apply as if the second-half due date were November 15.
43.10EFFECTIVE DATE.(a) Except as provided in paragraph (b), this section is effective
43.11beginning with taxes payable in 2018.
43.12(b) For property in the northern forest region, the provisions in this section applicable
43.13to class 2b rural vacant land are effective beginning with taxes payable in 2019.

43.14    Sec. 27. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to
43.15read:
43.16    Subd. 1b. Conditions. The county auditor may offer on a voluntary basis financial
43.17literacy counseling as part of entering into a confession of judgment. The county auditor
43.18may fund the financial literacy counseling using the fee in subdivision 8. The counseling
43.19shall not be at taxpayer expense.

43.20    Sec. 28. Minnesota Statutes 2016, section 281.17, is amended to read:
43.21281.17 PERIOD FOR OF REDEMPTION.
43.22(a) Except for properties described in paragraphs (b) and (c), or properties for which the
43.23period of redemption has been limited under sections 281.173 and 281.174, the following
43.24periods for period of redemption apply.
43.25The period of redemption for all lands sold to the state at a tax judgment sale shall be
43.26three years from the date of sale to the state of Minnesota.
43.27The period of redemption for homesteaded lands as defined in section 273.13, subdivision
43.2822 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6,
43.29section 4, and sold to the state at a tax judgment sale is three years from the date of sale.
43.30(b) The period of redemption for all lands located in a targeted neighborhood community
43.31as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10,
44.1except homesteaded lands as defined in section 273.13, subdivision 22, is one year from
44.2the date of sale.
44.3(c) The period of redemption for all real property constituting a mixed municipal solid
44.4waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is
44.5one year from the date of the sale to the state of Minnesota.
44.6(d) In determining the period of redemption, the county must use the property's
44.7classification and homestead classification for the assessment year on which the tax judgment
44.8is based. Any change in the property's classification or homestead classification after the
44.9assessment year on which the tax judgment is based does not affect the period of redemption.

44.10    Sec. 29. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read:
44.11    Subd. 2. Summons and complaint. Any city, county, housing and redevelopment
44.12authority, port authority, or economic development authority, in which the premises are
44.13located may commence an action in district court to reduce the period otherwise allowed
44.14for redemption under this chapter. The action must be commenced by the filing of a
44.15complaint, naming as defendants the record fee owners or the owner's personal representative,
44.16or the owner's heirs as determined by a court of competent jurisdiction, contract for deed
44.17purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records
44.18of the county auditor, the Internal Revenue Service of the United States and the Revenue
44.19Department of the state of Minnesota if tax liens against the owners or contract for deed
44.20purchasers have been recorded or filed; and any other person the plaintiff determines should
44.21be made a party. The action shall be filed in district court for the county in which the premises
44.22are located. The complaint must identify the premises by legal description. The complaint
44.23must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to
44.24section 280.01 has been made, and (3) notice of expiration of the time for redemption has
44.25not been given.
44.26The complaint must request an order reducing the redemption period to five weeks.
44.27When the complaint has been filed, the court shall issue a summons commanding the person
44.28or persons named in the complaint to appear before the court on a day and at a place stated
44.29in the summons. The appearance date shall be not less than 15 nor more than 25 days from
44.30the date of the issuing of the summons. A copy of the filed complaint must be attached to
44.31the summons.

45.1    Sec. 30. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read:
45.2    Subd. 3. Summons and complaint. Any city, county, housing and redevelopment
45.3authority, port authority, or economic development authority in which the property is located
45.4may commence an action in district court to reduce the period otherwise allowed for
45.5redemption under this chapter from the date of the requested order. The action must be
45.6commenced by the filing of a complaint, naming as defendants the record fee owners or the
45.7owner's personal representative, or the owner's heirs as determined by a court of competent
45.8jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the
45.9taxpayers as shown on the records of the county auditor, the Internal Revenue Service of
45.10the United States and the revenue department of the state of Minnesota if tax liens against
45.11the owners or contract for deed purchasers have been recorded or filed, and any other person
45.12the plaintiff determines should be made a party. The action shall be filed in district court
45.13for the county in which the property is located. The complaint must identify the property
45.14by legal description. The complaint must allege (1) that the property is vacant, (2) that the
45.15tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the
45.16time for redemption has not been given.
45.17The complaint must request an order reducing the redemption period to five weeks.
45.18When the complaint has been filed, the court shall issue a summons commanding the person
45.19or persons named in the complaint to appear before the court on a day and at a place stated
45.20in the summons. The appearance date shall be not less than 15 nor more than 25 days from
45.21the date of the issuing of the summons, except that, when the United States of America is
45.22a party, the date shall be set in accordance with applicable federal law. A copy of the filed
45.23complaint must be attached to the summons.

45.24    Sec. 31. [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.
45.25If the county auditor provides notice as required by section 281.23, the state, agency,
45.26political subdivision, or other entity that becomes the fee owner or manager of a property
45.27as a result of forfeiture due to nonpayment of real property taxes is not required to expend
45.28public funds to maintain any servitude, agreement, easement, or other encumbrance affecting
45.29the property. The fee owner or manager of a property may, at its discretion, spend public
45.30funds necessary for the maintenance, security, or management of the property.

45.31    Sec. 32. [281.70] LIMITED RIGHT OF ENTRY.
45.32    Subdivision 1. Limited right of entry. If premises described in a real estate tax judgment
45.33sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county
46.1auditor may, but is not obligated to, enter the premises to protect the premises from waste
46.2or trespass until the county auditor is notified that the premises are occupied. An affidavit
46.3of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing
46.4the premises and stating that the premises are vacant and unoccupied is prima facie evidence
46.5of the facts stated in the affidavit. If the affidavit contains a legal description of the premises,
46.6the affidavit may be recorded in the office of the county recorder or the registrar of titles in
46.7the county where the premises are located.
46.8    Subd. 2. Authorized actions. (a) The county auditor may take one or more of the
46.9following actions to protect the premises from waste or trespass:
46.10(1) install or change locks on doors and windows;
46.11(2) board windows; and
46.12(3) other actions to prevent or minimize damage to the premises from the elements,
46.13vandalism, trespass, or other illegal activities.
46.14(b) If the county auditor installs or changes locks on premises under paragraph (a), the
46.15county auditor must promptly deliver a key to the premises to the taxpayer or any person
46.16lawfully claiming through the taxpayer upon request.
46.17    Subd. 3. Costs. Costs incurred by the county auditor in protecting the premises from
46.18waste or trespass under this section may be added to the delinquent taxes due. The costs
46.19may bear interest to the extent provided, and interest may be added to the delinquent taxes
46.20due.
46.21    Subd. 4. Scope. The actions authorized under this section are in addition to, and do not
46.22limit or replace, any other rights or remedies available to the county auditor under Minnesota
46.23law.

46.24    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:
46.25    Subd. 4. Sale:; method,; requirements,; effects. (a) The sale authorized under
46.26subdivision 3 must be conducted by the county auditor at the county seat of the county in
46.27which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be
46.28conducted in any county facility within the county. The sale must not be for less than the
46.29appraised value except as provided in subdivision 7a. The parcels must be sold for cash
46.30only, unless the county board of the county has adopted a resolution providing for their sale
46.31on terms, in which event the resolution controls with respect to the sale. When the sale is
46.32made on terms other than for cash only (1) a payment of at least ten percent of the purchase
46.33price must be made at the time of purchase, and the balance must be paid in no more than
47.1ten equal annual installments, or (2) the payments must be made in accordance with county
47.2board policy, but in no event may the board require more than 12 installments annually,
47.3and the contract term must not be for more than ten years. Standing timber or timber products
47.4must not be removed from these lands until an amount equal to the appraised value of all
47.5standing timber or timber products on the lands at the time of purchase has been paid by
47.6the purchaser. If a parcel of land bearing standing timber or timber products is sold at public
47.7auction for more than the appraised value, the amount bid in excess of the appraised value
47.8must be allocated between the land and the timber in proportion to their respective appraised
47.9values. In that case, standing timber or timber products must not be removed from the land
47.10until the amount of the excess bid allocated to timber or timber products has been paid in
47.11addition to the appraised value of the land. The purchaser is entitled to immediate possession,
47.12subject to the provisions of any existing valid lease made in behalf of the state.
47.13(b) For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
47.14is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
47.15of the purchase price for sales occurring after December 31, 1990, is subject to interest at
47.16the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change
47.17each year on the unpaid balance in the manner provided for rate changes in section 549.09
47.18or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance
47.19on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the
47.20time that the sale occurred.
47.21(c) Notwithstanding subdivision 7, a county board may by resolution provide for the
47.22listing and sale of individual parcels by other means, including through a real estate broker.
47.23However, if the buyer under this paragraph could have repurchased a parcel of property
47.24under section 282.012 or 282.241, that buyer may not purchase that same parcel of property
47.25at the sale under this subdivision for a purchase price less than the sum of all taxes,
47.26assessments, penalties, interest, and costs due at the time of forfeiture computed under
47.27section 282.251, and any special assessments for improvements certified as of the date of
47.28sale. This subdivision shall be liberally construed to encourage the sale and utilization of
47.29tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase
47.30compliance with land use ordinances.

47.31    Sec. 34. Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read:
47.32    Subd. 6. Duties of commissioner after sale. (a) When any sale has been made by the
47.33county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the
47.34commissioner of revenue such information relating to such sale, on such forms as the
48.1commissioner of revenue may prescribe as will enable the commissioner of revenue to
48.2prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is
48.3on terms; and not later than October 31 of each year the county auditor shall submit to the
48.4commissioner of revenue a statement of all instances wherein any payment of principal,
48.5interest, or current taxes on lands held under certificate, due or to be paid during the preceding
48.6calendar years, are still outstanding at the time such certificate is made. When such statement
48.7shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue
48.8may instruct the county board of the county in which the land is located to cancel said
48.9certificate of sale in the manner provided by subdivision 5, provided that upon
48.10recommendation of the county board, and where the circumstances are such that the
48.11commissioner of revenue after investigation is satisfied that the purchaser has made every
48.12effort reasonable to make payment of both the annual installment and said taxes, and that
48.13there has been no willful neglect on the part of the purchaser in meeting these obligations,
48.14then the commissioner of revenue may extend the time for the payment for such period as
48.15the commissioner may deem warranted, not to exceed one year. On payment in full of the
48.16purchase price, appropriate conveyance in fee, in such form as may be prescribed by the
48.17attorney general, shall be issued by the commissioner of revenue, which conveyance must
48.18be recorded by the county and shall have the force and effect of a patent from the state
48.19subject to easements and restrictions of record at the date of the tax judgment sale, including,
48.20but without limitation, permits for telephone and electric power lines either by underground
48.21cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for
48.22gas, liquids, or solids in suspension.
48.23(b) The commissioner of revenue shall issue an appropriate conveyance in fee upon the
48.24receipt of a loan commitment or approval from the county auditor. For purposes of this
48.25paragraph, "loan commitment" or "loan approval" means a written commitment or approval
48.26to make a mortgage loan from a lender approved to make mortgage loans in Minnesota.
48.27The conveyance shall be issued to the county auditor where the land is located. Upon receipt
48.28of the conveyance, the county auditor shall hold the conveyance until such time as the
48.29conveyance is requested from a title company licensed to do business in Minnesota. If a
48.30request for the conveyance is not made within 45 days of the date the conveyance is issued
48.31by the commissioner of revenue, the county auditor shall return the conveyance to the
48.32commissioner. The title company making the request for the conveyance shall certify to the
48.33county auditor that the conveyance is necessary to close the purchase of the subject property
48.34within five days of the request. If the conveyance is delivered to the title company and the
48.35closing does not occur within five days of the request, the title company shall immediately
48.36return the conveyance to the county auditor, and upon receipt, the county auditor shall return
49.1the deed to the commissioner of revenue. The commissioner of revenue shall destroy all
49.2deeds returned by the county auditor pursuant to this subdivision.

49.3    Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to
49.4read:
49.5    Subd. 13. Online auction. A county board, or a county auditor if the auditor has been
49.6delegated such authority under section 282.135, may sell tax-forfeited lands through an
49.7online auction. When an online auction is used to sell tax-forfeited lands, the county auditor
49.8shall post a physical notice of the online auction and shall publish a notice of the online
49.9auction on its Web site not less than ten days before the online auction begins, in addition
49.10to any other notice required.
49.11EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that
49.12occur on or after August 1, 2017.

49.13    Sec. 36. Minnesota Statutes 2016, section 282.016, is amended to read:
49.14282.016 PROHIBITED PURCHASERS.
49.15(a) A county auditor, county treasurer, county attorney, court administrator of the district
49.16court, county assessor, supervisor of assessments, deputy or clerk or an employee of such
49.17officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must
49.18not become a purchaser, either personally or as an agent or attorney for another person, of
49.19the properties offered for sale under the provisions of this chapter in the county for which
49.20the person performs duties. A person prohibited from purchasing property under this section
49.21must not directly or indirectly have another person purchase it on behalf of the prohibited
49.22purchaser for the prohibited purchaser's benefit or gain.
49.23(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or
49.24commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase
49.25lands owned by that official at the time the state became the absolute owner thereof or (2)
49.26bid upon and purchase forfeited property offered for sale under the alternate sale procedure
49.27described in section 282.01, subdivision 7a.
49.28(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit
49.29other persons and entities from becoming a purchaser, either personally or as an agent or
49.30attorney for another person or entity, of the properties offered for sale under this chapter in
49.31the following circumstances: (1) the person or entity owns another property within the
49.32county for which there are delinquent taxes owing; (2) the person or entity has held a rental
50.1license in the county and the license has been revoked within the last five years; (3) the
50.2person or entity has been the vendee of a contract for purchase of a property offered for sale
50.3under this chapter, which contract has been canceled within the last five years; or (4) the
50.4person or entity owns another property within the county for which there is an unresolved
50.5housing code violation, including an unpaid charge or fine.
50.6(d) A person prohibited from purchasing property under this section must not directly
50.7or indirectly have another person purchase it on behalf of the prohibited purchaser for the
50.8prohibited purchaser's benefit or gain.

50.9    Sec. 37. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read:
50.10    Subdivision 1. Land on or adjacent to public waters. (a) All land which is the property
50.11of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether
50.12the land is held in trust for taxing districts, and which borders on or is adjacent to meandered
50.13lakes and other public waters and watercourses, and the live timber growing or being thereon,
50.14is hereby withdrawn from sale except as hereinafter provided. The authority having
50.15jurisdiction over the timber on any such lands may sell the timber as otherwise provided by
50.16law for cutting and removal under such conditions as the authority may prescribe in
50.17accordance with approved, sustained yield forestry practices. The authority having jurisdiction
50.18over the timber shall reserve such timber and impose such conditions as the authority deems
50.19necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features.
50.20Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress
50.21approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject
50.22to like restrictions as are now imposed by that act on federal lands.
50.23(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public
50.24waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary
50.25high-water mark being the waterside boundary thereof, and the land side boundary thereof
50.26being a line drawn parallel to the ordinary high-water mark and two rods distant landward
50.27therefrom, hereby is reserved for public travel thereon, and whatever the conformation of
50.28the shore line or conditions require, the authority having jurisdiction over such lands shall
50.29reserve a wider strip for such purposes.
50.30(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by
50.31the authority having jurisdiction over the land, in the manner otherwise provided by law
50.32for the sale of such lands, if the authority determines that it is in the public interest to do
50.33so. If the authority having jurisdiction over the land is not the commissioner of natural
51.1resources, the land may not be offered for sale without the prior approval of the commissioner
51.2of natural resources.
51.3(d) Where the authority having jurisdiction over lands withdrawn from sale under this
51.4section is not the commissioner of natural resources, the authority may submit proposals
51.5for disposition of the lands to the commissioner. The commissioner of natural resources
51.6shall evaluate the lands and their public benefits and make recommendations on the proposed
51.7dispositions to the committees of the legislature with jurisdiction over natural resources.
51.8The commissioner shall include any recommendations of the commissioner for disposition
51.9of lands withdrawn from sale under this section over which the commissioner has jurisdiction.
51.10The commissioner's recommendations may include a public sale, sale to a private party,
51.11acquisition by the Department of Natural Resources for public purposes, or a cooperative
51.12management agreement with, or transfer to, another unit of government.
51.13(e) Notwithstanding this subdivision, a county may sell property governed by this section
51.14upon written authorization from the commissioner of natural resources. Prior to the sale or
51.15conveyance of lands under this subdivision, the county board must give notice of its intent
51.16to meet for that purpose as provided in section 282.01, subdivision 1.

51.17    Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read:
51.18282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS
51.19PERMITTED.
51.20(a) Immediately after classification and appraisal of the land, and after approval by the
51.21commissioner of natural resources when required pursuant to section 282.01, subdivision
51.223 , the county board shall provide and file with the county auditor a list of parcels of land to
51.23be offered for sale. This list shall contain a description of the parcels of land and the appraised
51.24value thereof. The auditor shall publish a notice of the intended public sale of such parcels
51.25of land and a copy of the resolution of the county board fixing the terms of the sale, if other
51.26than for cash only, by publication once a week for two weeks in the official newspaper of
51.27the county, the last publication to be not less than ten days previous to the commencement
51.28of the sale.
51.29(b) The notice shall include the parcel's description and appraised value. The notice shall
51.30also indicate the amount of any special assessments which may be the subject of a
51.31reassessment or new assessment or which may result in the imposition of a fee or charge
51.32pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall
51.33also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this
51.34section, "owner" means the taxpayer as listed in the records of the county auditor.
52.1(c) If the county board of St. Louis or Koochiching Counties determines that the sale
52.2shall take place in a county facility other than the courthouse, the notice shall specify the
52.3facility and its location. If the county board determines that the sale shall take place as an
52.4online auction under section 282.01, subdivision 13, the notice shall specify the auction
52.5Web site and the date of the auction.
52.6EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that
52.7occur on or after August 1, 2017.

52.8    Sec. 39. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read:
52.9    Subdivision 1. Repurchase requirements. The owner at the time of forfeiture, or the
52.10owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes
52.11was given by statute, mortgage, or other agreement, may repurchase any parcel of land
52.12claimed by the state to be forfeited to the state for taxes unless before the time repurchase
52.13is made the parcel is sold under installment payments, or otherwise, by the state as provided
52.14by law, or is under mineral prospecting permit or lease, or proceedings have been commenced
52.15by the state or any of its political subdivisions or by the United States to condemn the parcel
52.16of land. The parcel of land may be repurchased for the sum of all delinquent taxes and
52.17assessments computed under section 282.251, together with penalties, interest, and costs,
52.18that accrued or would have accrued if the parcel of land had not forfeited to the state. Except
52.19for property which was homesteaded on the date of forfeiture, repurchase is permitted during
52.20one year six months only from the date of forfeiture, and in any case only after the adoption
52.21of a resolution by the board of county commissioners determining that by repurchase undue
52.22hardship or injustice resulting from the forfeiture will be corrected, or that permitting the
52.23repurchase will promote the use of the lands that will best serve the public interest. If the
52.24county board has good cause to believe that a repurchase installment payment plan for a
52.25particular parcel is unnecessary and not in the public interest, the county board may require
52.26as a condition of repurchase that the entire repurchase price be paid at the time of repurchase.
52.27A repurchase is subject to any easement, lease, or other encumbrance granted by the state
52.28before the repurchase, and if the land is located within a restricted area established by any
52.29county under Laws 1939, chapter 340, the repurchase must not be permitted unless the
52.30resolution approving the repurchase is adopted by the unanimous vote of the board of county
52.31commissioners.
52.32The person seeking to repurchase under this section shall pay all maintenance costs
52.33incurred by the county auditor during the time the property was tax-forfeited.
52.34EFFECTIVE DATE.This section is effective January 1, 2018.

53.1    Sec. 40. Minnesota Statutes 2016, section 282.322, is amended to read:
53.2282.322 FORFEITED LANDS LIST.
53.3The county board of any county may file a list of forfeited lands with the county auditor,
53.4if the board is of the opinion that such lands may be acquired by the state or any municipal
53.5subdivision thereof of the state for public purposes. Upon the filing of such the list of
53.6forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding
53.7shall be is started to acquire such lands by the state or some municipal subdivision thereof
53.8of the state within one year after the filing of such the list of forfeited lands, the county
53.9board shall withdraw said the list and thereafter, if the property was classified as
53.10nonhomestead at the time of forfeiture, the owner shall have one year not more than six
53.11months in which to repurchase.
53.12EFFECTIVE DATE.This section is effective January 1, 2018.

53.13    Sec. 41. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
53.14    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
53.15exclusive of special assessments, penalties, and interest payable on a claimant's homestead
53.16after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
53.17and any other state paid property tax credits in any calendar year, and after any refund
53.18claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
53.19year that the property tax is payable. In the case of a claimant who makes ground lease
53.20payments, "property taxes payable" includes the amount of the payments directly attributable
53.21to the property taxes assessed against the parcel on which the house is located. No
53.22apportionment or reduction of the "property taxes payable" shall be required for the use of
53.23a portion of the claimant's homestead for a business purpose if the claimant does not deduct
53.24any business depreciation expenses for the use of a portion of the homestead in the
53.25determination of federal adjusted gross income. For homesteads which are manufactured
53.26homes as defined in section 273.125, subdivision 8, and for homesteads which are including
53.27manufactured homes located in a manufactured home community owned by a cooperative
53.28organized under chapter 308A or 308B, and park trailers taxed as manufactured homes
53.29under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent
53.30of the gross rent paid in the preceding year for the site on which the homestead is located.
53.31When a homestead is owned by two or more persons as joint tenants or tenants in common,
53.32such tenants shall determine between them which tenant may claim the property taxes
53.33payable on the homestead. If they are unable to agree, the matter shall be referred to the
54.1commissioner of revenue whose decision shall be final. Property taxes are considered payable
54.2in the year prescribed by law for payment of the taxes.
54.3In the case of a claim relating to "property taxes payable," the claimant must have owned
54.4and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
54.5property must have been classified as homestead property pursuant to section 273.124, on
54.6or before December 15 of the assessment year to which the "property taxes payable" relate;
54.7or (ii) the claimant must provide documentation from the local assessor that application for
54.8homestead classification has been made on or before December 15 of the year in which the
54.9"property taxes payable" were payable and that the assessor has approved the application.
54.10EFFECTIVE DATE.This section is effective beginning with claims for taxes payable
54.11in 2018.

54.12    Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read:
54.13473H.09 EARLY TERMINATION.
54.14    Subdivision 1. Public emergency. Termination of an agricultural preserve earlier than
54.15a date derived through application of section 473H.08 may be permitted only in the event
54.16of a public emergency upon petition from the owner or authority to the governor. The
54.17determination of a public emergency shall be by the governor through executive order
54.18pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve,
54.19the reasons requiring the action and the date of termination.
54.20    Subd. 2. Death of owner. (a) Within 365 days of the death of an owner, an owner's
54.21spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural
54.22preserve and the covenant allowing the land to be enrolled as an agricultural preserve by
54.23notifying the authority on a form provided by the commissioner of agriculture. Termination
54.24of a covenant under this subdivision must be executed and acknowledged in the manner
54.25required by law to execute and acknowledge a deed.
54.26(b) For purposes of this subdivision, the following definitions apply:
54.27(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent
54.28was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
54.29land and engage in farming under section 500.24 that owned the agricultural preserve; and
54.30(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a
54.31trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm
54.32land under section 500.24 of which the decedent was a partner, shareholder, or member.
55.1(c) When an agricultural preserve is terminated under this subdivision, the property is
55.2subject to additional taxes in an amount equal to 50 percent of the taxes actually levied
55.3against the property for the current taxes payable year. The additional taxes are extended
55.4against the property on the tax list for taxes payable in the current year. The additional taxes
55.5must be distributed among the jurisdictions levying taxes on the property in proportion to
55.6the current year's taxes.
55.7EFFECTIVE DATE.This section is effective July 1, 2017.

55.8    Sec. 43. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:
55.9    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial
55.10operations are not allowed on land within an agricultural preserve except:
55.11(1) small on-farm commercial or industrial operations normally associated with and
55.12important to farming in the agricultural preserve area;
55.13(2) storage use of existing farm buildings that does not disrupt the integrity of the
55.14agricultural preserve; and
55.15(3) small commercial use of existing farm buildings for trades not disruptive to the
55.16integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
55.17and similar activities that a farm operator might conduct.; and
55.18(4) wireless communication installments and related equipment and structure capable
55.19of providing technology potentially beneficial to farming activities.
55.20(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses
55.21(2) and (3), means existing on August 1, 1987.
55.22EFFECTIVE DATE.This section is effective the day following enactment.

55.23    Sec. 44. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read:
55.24    Subdivision 1. Grounds. (a) The person entitled to the premises may recover possession
55.25by eviction when:
55.26(1) any person holds over real property:
55.27(i) after a sale of the property on an execution or judgment; or
55.28(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after
55.29termination of contract to convey the property; or
55.30(iii) after the expiration of the time for redemption on a real estate tax judgment sale;
56.1(2) any person holds over real property after termination of the time for which it is
56.2demised or leased to that person or to the persons under whom that person holds possession,
56.3contrary to the conditions or covenants of the lease or agreement under which that person
56.4holds, or after any rent becomes due according to the terms of such lease or agreement; or
56.5(3) any tenant at will holds over after the termination of the tenancy by notice to quit.
56.6(b) A landlord may not commence an eviction action against a tenant or authorized
56.7occupant solely on the basis that the tenant or authorized occupant has been the victim of
56.8any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
56.9paragraph should be construed to prohibit an eviction action based on a breach of the lease.

56.10    Sec. 45. Minnesota Statutes 2016, section 504B.365, subdivision 3, is amended to read:
56.11    Subd. 3. Removal and storage of property. (a) If the defendant's personal property is
56.12to be stored in a place other than the premises, the officer shall remove all personal property
56.13of the defendant at the expense of the plaintiff.
56.14(b) The defendant must make immediate payment for all expenses of removing personal
56.15property from the premises. If the defendant fails or refuses to do so, the plaintiff has a lien
56.16on all the personal property for the reasonable costs and expenses incurred in removing,
56.17caring for, storing, and transporting it to a suitable storage place.
56.18(c) The plaintiff may enforce the lien by detaining the personal property until paid. If
56.19no payment has been made for 60 days after the execution of the order to vacate, the plaintiff
56.20may dispose of the property or hold a public sale as provided in sections 514.18 to 514.22.
56.21(d) If the defendant's personal property is to be stored on the premises, the officer shall
56.22enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's
56.23personal property. Section 504B.271 applies to personal property removed under this
56.24paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory to the
56.25defendant's last known address or, if the defendant has provided a different address, to the
56.26address provided. The inventory must be prepared, signed, and dated in the presence of the
56.27officer and must include the following:
56.28(1) a list of the items of personal property and a description of their condition;
56.29(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name and
56.30telephone number of a person authorized to release the personal property; and
56.31(3) the name and badge number of the officer.
56.32(e) The officer must retain a copy of the inventory.
57.1(f) The plaintiff is responsible for the proper removal, storage, and care of the defendant's
57.2personal property and is liable for damages for loss of or injury to it caused by the plaintiff's
57.3failure to exercise the same care that a reasonably careful person would exercise under
57.4similar circumstances.
57.5(g) The plaintiff shall notify the defendant of the date and approximate time the officer
57.6is scheduled to remove the defendant, family, and personal property from the premises. The
57.7notice must be sent by first class mail. In addition, the plaintiff must make a good faith
57.8effort to notify the defendant by telephone. The notice must be mailed as soon as the
57.9information regarding the date and approximate time the officer is scheduled to enforce the
57.10order is known to the plaintiff, except that the scheduling of the officer to enforce the order
57.11need not be delayed because of the notice requirement. The notice must inform the defendant
57.12that the defendant and the defendant's personal property will be removed from the premises
57.13if the defendant has not vacated the premises by the time specified in the notice.

57.14    Sec. 46. Laws 1996, chapter 471, article 3, section 51, is amended to read:
57.15    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
57.16    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton
57.17county board of commissioners may levy in and for the unorganized township of Sawyer
57.18an amount up to $1,500 annually for recreational purposes, beginning with taxes payable
57.19in 1997 and ending with taxes payable in 2006.
57.20    Subd. 2. Effective date. This section is effective June 1, 1996, without local approval.
57.21EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and
57.22is effective the day after the Carlton County Board of Commissioners and its chief clerical
57.23officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

57.24    Sec. 47. LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP.
57.25    Subdivision 1. Membership. (a) The Legislative Property Tax Reform Working Group
57.26is created and consists of the following members:
57.27(1) two representatives appointed by the chair of the tax committee of the house of
57.28representatives;
57.29(2) two representatives appointed by the minority leader of the tax committee of the
57.30house of representatives;
57.31(3) two senators appointed by the chair of the senate tax committee; and
58.1(4) two senators appointed by the minority leader of the senate tax committee.
58.2(b) Any vacancy shall be filled by appointment of the appointing authority for the vacating
58.3member.
58.4(c) Members shall be appointed by July 1, 2017.
58.5    Subd. 2. Duties. The working group must perform the duties described in section 48.
58.6    Subd. 3. First meeting; chair. The first appointee of the chair of the house of
58.7representatives tax committee must convene the initial meeting of the working group by
58.8July 21, 2017. The members of the working group must elect a chair and vice-chair from
58.9the members of the working group at the first meeting.
58.10    Subd. 4. Staff. Legislative staff of the house of representatives and senate shall provide
58.11administrative and research support. The working group may request the assistance of staff
58.12from the Department of Revenue and Department of Education as necessary to facilitate its
58.13work.
58.14    Subd. 5. Report. The working group must submit a report by February 15, 2018, to the
58.15chairs and ranking minority members of the committees in the senate and house of
58.16representatives with primary jurisdiction over taxes, presenting two or more alternatives
58.17for reform of Minnesota's property tax system.
58.18    Subd. 6. Sunset. The working group shall sunset the day following the submission of
58.19the report under subdivision 5.
58.20EFFECTIVE DATE.This section is effective the day following final enactment.

58.21    Sec. 48. PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX
58.22SYSTEM.
58.23The Legislative Property Tax Reform Working Group must develop proposals to
58.24restructure Minnesota's property tax system for legislative consideration. The proposals
58.25must provide for a system that reduces the complexity and cost of Minnesota's property tax
58.26system to increase transparency and understanding for taxpayers and assessors while
58.27minimizing the number of properties that experience severe tax changes. The proposals
58.28must include, but are not limited to, a reduction in the number of classifications and tiers
58.29in the current property tax system. The proposals may include a transition period of up to
58.30five years before the final system elements are fully operational. At least one proposal must
58.31be developed where the highest estimated net state cost does not exceed $250,000,000 in
58.32the first year that the proposal is fully phased in. At least one proposal must be developed
59.1where the highest estimated net state cost does not exceed $500,000,000 in the first year
59.2that the proposal is fully phased in. Each proposal should estimate the administrative cost
59.3savings to county governments and to the state government.
59.4EFFECTIVE DATE.This section is effective the day following final enactment.

59.5    Sec. 49. REPEALER.
59.6Minnesota Statutes 2016, sections 270C.9901; and 281.22, are repealed.
59.7EFFECTIVE DATE.This section is effective the day following final enactment.

59.8ARTICLE 2

59.9TAXPAYER EMPOWERMENT

59.10    Section 1. Minnesota Statutes 2016, section 123B.63, subdivision 3, is amended to read:
59.11    Subd. 3. Capital project levy referendum. (a) A district may levy the local tax rate
59.12approved by a majority of the electors voting on the question to provide funds for an approved
59.13project. The election must take place no more than five years before the estimated date of
59.14commencement of the project. The referendum must may be held on a date set called by
59.15the board and, except as provided in paragraph (g), must be held on the first Tuesday after
59.16the first Monday in November in either an even-numbered or odd-numbered year. A district
59.17must meet the requirements of section 123B.71 for projects funded under this section. If a
59.18review and comment is required under section 123B.71, subdivision 8, a referendum for a
59.19project not receiving a positive review and comment by the commissioner must be approved
59.20by at least 60 percent of the voters at the election.
59.21(b) The A referendum may be called by the school board and under this subdivision may
59.22be held:
59.23    (1) separately, before an election for the issuance of obligations for the project under
59.24chapter 475; or
59.25    (2) in conjunction with an election for the issuance of obligations for the project under
59.26chapter 475; or
59.27    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital
59.28project levy and the issuance of obligations for the project under chapter 475. Any obligations
59.29authorized for a project may be issued within five years of the date of the election.
59.30    (c) The ballot must provide a general description of the proposed project, state the
59.31estimated total cost of the project, state whether the project has received a positive or negative
60.1review and comment from the commissioner, state the maximum amount of the capital
60.2project levy as a percentage of net tax capacity, state the amount that will be raised by that
60.3local tax rate in the first year it is to be levied, and state the maximum number of years that
60.4the levy authorization will apply.
60.5    The ballot must contain a textual portion with the information required in this section
60.6and a question stating substantially the following:
60.7    "Shall the capital project levy proposed by the board of .......... School District No. ..........
60.8be approved?"
60.9    If approved, the amount provided by the approved local tax rate applied to the net tax
60.10capacity for the year preceding the year the levy is certified may be certified for the number
60.11of years, not to exceed ten, approved.
60.12(d) If the district proposes a new capital project to begin at the time the existing capital
60.13project expires and at the same maximum tax rate, the general description on the ballot may
60.14state that the capital project levy is being renewed and that the tax rate is not being increased
60.15from the previous year's rate. An election to renew authority under this paragraph may be
60.16called at any time that is otherwise authorized by this subdivision. The ballot notice required
60.17under section 275.60 may be modified to read:
60.18"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW
60.19AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO
60.20EXPIRE."
60.21    (e) In the event a conjunctive question proposes to authorize both the capital project
60.22levy and the issuance of obligations for the project, appropriate language authorizing the
60.23issuance of obligations must also be included in the question.
60.24    (f) The district must notify the commissioner of the results of the referendum.
60.25    (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance
60.26a district's response to a disaster or emergency may be held on a date set by the board.
60.27"Disaster" means a situation that creates an actual or imminent serious threat to the health
60.28and safety of persons, or a situation that has resulted or is likely to result in catastrophic
60.29loss to property or the environment. "Emergency" means an unforeseen combination of
60.30circumstances that calls for immediate action to prevent a disaster, identified in the
60.31referendum, from developing or occurring.
60.32EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
60.33referendum authorized on or after that date.

61.1    Sec. 2. Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:
61.2    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
61.3subdivision 1 , may be increased in the amount approved by the voters of the district at a
61.4referendum called for the purpose. The referendum may be called by the board. The
61.5referendum must be conducted one or two calendar years before the increased levy authority,
61.6if approved, first becomes payable. Only one election to approve an increase may be held
61.7in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
61.8paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
61.9November. The ballot must state the maximum amount of the increased revenue per adjusted
61.10pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
61.11per adjusted pupil unit that differs from year to year over the number of years for which the
61.12increased revenue is authorized or may state that the amount shall increase annually by the
61.13rate of inflation. The ballot must state the cumulative amount per pupil of any local optional
61.14revenue, board-approved referendum authority, and previous voter-approved referendum
61.15authority, if any, that the board expects to certify for the next school year. For this purpose,
61.16the rate of inflation shall be the annual inflationary increase calculated under subdivision
61.172, paragraph (b). The ballot may state that existing referendum levy authority is expiring.
61.18In this case, the ballot may also compare the proposed levy authority to the existing expiring
61.19levy authority, and express the proposed increase as the amount, if any, over the expiring
61.20referendum levy authority. The ballot must designate the specific number of years, not to
61.21exceed ten, for which the referendum authorization applies. The ballot, including a ballot
61.22on the question to revoke or reduce the increased revenue amount under paragraph (c), must
61.23abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section
61.24275.60 may be modified to read, in cases of renewing existing levies at the same amount
61.25per pupil as in the previous year:
61.26"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
61.27EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
61.28TO EXPIRE."
61.29    The ballot may contain a textual portion with the information required in this subdivision
61.30and a question stating substantially the following:
61.31    "Shall the increase in the revenue proposed by (petition to) the board of ........., School
61.32District No. .., be approved?"
61.33    If approved, an amount equal to the approved revenue per adjusted pupil unit times the
61.34adjusted pupil units for the school year beginning in the year after the levy is certified shall
62.1be authorized for certification for the number of years approved, if applicable, or until
62.2revoked or reduced by the voters of the district at a subsequent referendum.
62.3    (b) The board must prepare and deliver by first class mail at least 15 days but no more
62.4than 30 days before the day of the referendum to each taxpayer a notice of the referendum
62.5and the proposed revenue increase. The board need not mail more than one notice to any
62.6taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
62.7those shown to be owners on the records of the county auditor or, in any county where tax
62.8statements are mailed by the county treasurer, on the records of the county treasurer. Every
62.9property owner whose name does not appear on the records of the county auditor or the
62.10county treasurer is deemed to have waived this mailed notice unless the owner has requested
62.11in writing that the county auditor or county treasurer, as the case may be, include the name
62.12on the records for this purpose. The notice must project the anticipated amount of tax increase
62.13in annual dollars for typical residential homesteads, agricultural homesteads, apartments,
62.14and commercial-industrial property within the school district.
62.15The notice must state the cumulative and individual amounts per pupil of any local
62.16optional revenue, board-approved referendum authority, and voter-approved referendum
62.17authority, if any, that the board expects to certify for the next school year.
62.18    The notice for a referendum may state that an existing referendum levy is expiring and
62.19project the anticipated amount of increase over the existing referendum levy in the first
62.20year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
62.21apartments, and commercial-industrial property within the district.
62.22    The notice must include the following statement: "Passage of this referendum will result
62.23in an increase in your property taxes." However, in cases of renewing existing levies, the
62.24notice may include the following statement: "Passage of this referendum extends an existing
62.25operating referendum at the same amount per pupil as in the previous year."
62.26    (c) A referendum on the question of revoking or reducing the increased revenue amount
62.27authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
62.28or reduce the revenue amount must state the amount per adjusted pupil unit by which the
62.29authority is to be reduced. Revenue authority approved by the voters of the district pursuant
62.30to paragraph (a) must be available to the school district at least once before it is subject to
62.31a referendum on its revocation or reduction for subsequent years. Only one revocation or
62.32reduction referendum may be held to revoke or reduce referendum revenue for any specific
62.33year and for years thereafter.
63.1    (d) The approval of 50 percent plus one of those voting on the question is required to
63.2pass a referendum authorized by this subdivision.
63.3    (e) At least 15 days before the day of the referendum, the district must submit a copy of
63.4the notice required under paragraph (b) to the commissioner and to the county auditor of
63.5each county in which the district is located. Within 15 days after the results of the referendum
63.6have been certified by the board, or in the case of a recount, the certification of the results
63.7of the recount by the canvassing board, the district must notify the commissioner of the
63.8results of the referendum.
63.9EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
63.10referendum authorized on or after that date.

63.11    Sec. 3. Minnesota Statutes 2016, section 205.10, subdivision 1, is amended to read:
63.12    Subdivision 1. Questions. Special elections may be held in a city or town on a question
63.13on which the voters are authorized by law or charter to pass judgment. A special election
63.14on a question may only be held by a city on the first Tuesday after the first Monday in
63.15November in either an even-numbered or odd-numbered year. A special election on a
63.16question held by a town may be held on the same day as the annual town meeting or on the
63.17first Tuesday after the first Monday in November in either an even-numbered or
63.18odd-numbered year. A special election may be ordered by the governing body of the
63.19municipality on its own motion or, on a question that has not been submitted to the voters
63.20in an election within the previous six months, upon a petition signed by a number of voters
63.21equal to 20 percent of the votes cast at the last municipal general election. A question is
63.22carried only with the majority in its favor required by law or charter. The election officials
63.23for a special election shall be the same as for the most recent municipal general election
63.24unless changed according to law. Otherwise special elections shall be conducted and the
63.25returns made in the manner provided for the municipal general election.
63.26EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
63.27referendum authorized on or after that date.

63.28    Sec. 4. Minnesota Statutes 2016, section 205A.05, subdivision 1, is amended to read:
63.29    Subdivision 1. Questions. (a) Special elections must be held for a school district on a
63.30question on which the voters are authorized by law to pass judgment. The special election
63.31on a question may only be held on the first Tuesday after the first Monday in November of
63.32either an even-numbered or odd-numbered year. The school board may on its own motion
63.33call a special election to vote on any matter requiring approval of the voters of a district.
64.1Upon petition filed with the school board of 50 or more voters of the school district or five
64.2percent of the number of voters voting at the preceding school district general election,
64.3whichever is greater, the school board shall by resolution call a special election to vote on
64.4any matter requiring approval of the voters of a district. A question is carried only with the
64.5majority in its favor required by law. The election officials for a special election are the
64.6same as for the most recent school district general election unless changed according to
64.7law. Otherwise, special elections must be conducted and the returns made in the manner
64.8provided for the school district general election.
64.9    (b) A special election may not be held:
64.10    (1) during the 56 days before and the 56 days after a regularly scheduled primary or
64.11general election conducted wholly or partially within the school district;
64.12    (2) on the date of a regularly scheduled town election or annual meeting in March
64.13conducted wholly or partially within the school district; or
64.14    (3) during the 30 days before or the 30 days after a regularly scheduled town election
64.15in March conducted wholly or partially within the school district.
64.16    (c) Notwithstanding any other law to the contrary, the time period in which a special
64.17election must be conducted under any other law may be extended by the school board to
64.18conform with the requirements of this subdivision.
64.19EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
64.20referendum authorized on or after that date.

64.21    Sec. 5. Minnesota Statutes 2016, section 216B.46, is amended to read:
64.22216B.46 MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION.
64.23Any municipality which desires to acquire the property of a public utility as authorized
64.24under the provisions of section 216B.45 may determine to do so by resolution of the
64.25governing body of the municipality taken after a public hearing of which at least 30 days'
64.26published notice shall be given as determined by the governing body. The determination
64.27shall become effective when ratified by a majority of the qualified electors voting on the
64.28question at a special election to be held for that purpose, not less than 60 nor more than 120
64.29days after the resolution of the governing body of the municipality on the first Tuesday after
64.30the first Monday in November in either an even-numbered or odd-numbered year.
64.31EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
64.32referendum authorized on or after that date.

65.1    Sec. 6. Minnesota Statutes 2016, section 237.19, is amended to read:
65.2237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES.
65.3Any municipality shall have the right to own and operate a telephone exchange within
65.4its own borders, subject to the provisions of this chapter. It may construct such plant, or
65.5purchase an existing plant by agreement with the owner, or where it cannot agree with the
65.6owner on price, it may acquire an existing plant by condemnation, as hereinafter provided,
65.7but in no case shall a municipality construct or purchase such a plant or proceed to acquire
65.8an existing plant by condemnation until such action by it is authorized by a majority of the
65.9electors voting upon the proposition at a general an election or a special election called for
65.10that purpose held on the first Tuesday after the first Monday in November in either an
65.11even-numbered or odd-numbered year, and if the proposal is to construct a new exchange
65.12where an exchange already exists, it shall not be authorized to do so unless 65 percent of
65.13those voting thereon vote in favor of the undertaking. A municipality that owns and operates
65.14a telephone exchange may enter into a joint venture as a partner or shareholder with a
65.15telecommunications organization to provide telecommunications services within its service
65.16area.
65.17EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
65.18referendum authorized on or after that date.

65.19    Sec. 7. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
65.20    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and
65.21the county treasurer shall deliver after November 10 and on or before November 24 each
65.22year, by first class mail to each taxpayer at the address listed on the county's current year's
65.23assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
65.24the treasurer may send the notice in electronic form or by electronic mail instead of on paper
65.25or by ordinary mail.
65.26    (b) The commissioner of revenue shall prescribe the form of the notice.
65.27    (c) The notice must inform taxpayers that it contains the amount of property taxes each
65.28taxing authority proposes to collect for taxes payable the following year. In the case of a
65.29town, or in the case of the state general tax, the final tax amount will be its proposed tax.
65.30The notice must clearly state for each city that has a population over 500, county, school
65.31district, regional library authority established under section 134.201, and metropolitan taxing
65.32districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
65.33in which the budget and levy will be discussed and public input allowed, prior to the final
66.1budget and levy determination. The taxing authorities must provide the county auditor with
66.2the information to be included in the notice on or before the time it certifies its proposed
66.3levy under subdivision 1. The public must be allowed to speak at that meeting, which must
66.4occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
66.5number for the taxing authority that taxpayers may call if they have questions related to the
66.6notice and an address where comments will be received by mail, except that no notice
66.7required under this section shall be interpreted as requiring the printing of a personal
66.8telephone number or address as the contact information for a taxing authority. If a taxing
66.9authority does not maintain public offices where telephone calls can be received by the
66.10authority, the authority may inform the county of the lack of a public telephone number and
66.11the county shall not list a telephone number for that taxing authority.
66.12    (d) The notice must state for each parcel:
66.13    (1) the market value of the property as determined under section 273.11, and used for
66.14computing property taxes payable in the following year and for taxes payable in the current
66.15year as each appears in the records of the county assessor on November 1 of the current
66.16year; and, in the case of residential property, whether the property is classified as homestead
66.17or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
66.18values apply and that the values are final values;
66.19    (2) the items listed below, shown separately by county, city or town, and state general
66.20tax, agricultural homestead credit under section 273.1384, voter approved school levy, other
66.21local school levy, and the sum of the special taxing districts, and as a total of all taxing
66.22authorities:
66.23    (i) the actual tax for taxes payable in the current year; and
66.24    (ii) the proposed tax amount.
66.25    If the county levy under clause (2) includes an amount for a lake improvement district
66.26as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
66.27must be separately stated from the remaining county levy amount.
66.28    In the case of a town or the state general tax, the final tax shall also be its proposed tax
66.29unless the town changes its levy at a special town meeting under section 365.52. If a school
66.30district has certified under section 126C.17, subdivision 9, that a referendum will be held
66.31in the school district at the November general election, the county auditor must note next
66.32to the school district's proposed amount that a referendum is pending and that, if approved
66.33by the voters, the tax amount may be higher than shown on the notice. In the case of the
66.34city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
67.1from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
67.2the St. Paul Library Agency must be listed separately from the remaining amount of the
67.3city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
67.4listed separately from the remaining amount of the county's levy. In the case of a parcel
67.5where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
67.6applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
67.7capacity subject to the areawide tax must each be stated separately and not included in the
67.8sum of the special taxing districts; and
67.9    (3) the increase or decrease between the total taxes payable in the current year and the
67.10total proposed taxes, expressed as a percentage.; and
67.11    (4) a statement at the top of the notice stating the following: if a county's or city's
67.12proposed levy for next year is greater than its actual levy for the current year, the voters
67.13may have the right to petition for a referendum on next year's levy certification, according
67.14to Minnesota Statutes, section 275.80, provided that the final levy that the local government
67.15certifies in December of this year is also greater than its levy for the current year.
67.16    For purposes of this section, the amount of the tax on homesteads qualifying under the
67.17senior citizens' property tax deferral program under chapter 290B is the total amount of
67.18property tax before subtraction of the deferred property tax amount.
67.19    (e) The notice must clearly state that the proposed or final taxes do not include the
67.20following:
67.21    (1) special assessments;
67.22    (2) levies approved by the voters after the date the proposed taxes are certified, including
67.23bond referenda and school district levy referenda;
67.24    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
67.25in November of the levy year as provided under section 275.73;
67.26    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
67.27after the date the proposed taxes are certified;
67.28    (5) amounts necessary to pay tort judgments against the taxing authority that become
67.29final after the date the proposed taxes are certified; and
67.30    (6) the contamination tax imposed on properties which received market value reductions
67.31for contamination.
68.1    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
68.2county treasurer to deliver the notice as required in this section does not invalidate the
68.3proposed or final tax levy or the taxes payable pursuant to the tax levy.
68.4    (g) If the notice the taxpayer receives under this section lists the property as
68.5nonhomestead, and satisfactory documentation is provided to the county assessor by the
68.6applicable deadline, and the property qualifies for the homestead classification in that
68.7assessment year, the assessor shall reclassify the property to homestead for taxes payable
68.8in the following year.
68.9    (h) In the case of class 4 residential property used as a residence for lease or rental
68.10periods of 30 days or more, the taxpayer must either:
68.11    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
68.12or lessee; or
68.13    (2) post a copy of the notice in a conspicuous place on the premises of the property.
68.14    The notice must be mailed or posted by the taxpayer by November 27 or within three
68.15days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
68.16of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
68.17notice must be mailed in order to fulfill the requirements of this paragraph.
68.18    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
68.19districts" means the following taxing districts in the seven-county metropolitan area that
68.20levy a property tax for any of the specified purposes listed below:
68.21    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
68.22473.521 , 473.547, or 473.834;
68.23    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
68.24    (3) Metropolitan Mosquito Control Commission under section 473.711.
68.25    For purposes of this section, any levies made by the regional rail authorities in the county
68.26of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
68.27shall be included with the appropriate county's levy.
68.28    (j) The governing body of a county, city, or school district may, with the consent of the
68.29county board, include supplemental information with the statement of proposed property
68.30taxes about the impact of state aid increases or decreases on property tax increases or
68.31decreases and on the level of services provided in the affected jurisdiction. This supplemental
68.32information may include information for the following year, the current year, and for as
69.1many consecutive preceding years as deemed appropriate by the governing body of the
69.2county, city, or school district. It may include only information regarding:
69.3    (1) the impact of inflation as measured by the implicit price deflator for state and local
69.4government purchases;
69.5    (2) population growth and decline;
69.6    (3) state or federal government action; and
69.7    (4) other financial factors that affect the level of property taxation and local services
69.8that the governing body of the county, city, or school district may deem appropriate to
69.9include.
69.10    The information may be presented using tables, written narrative, and graphic
69.11representations and may contain instruction toward further sources of information or
69.12opportunity for comment.
69.13EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

69.14    Sec. 8. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
69.15    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the
69.16taxes voted by cities, counties, school districts, and special districts shall be certified by the
69.17proper authorities to the county auditor on or before five working days after December 20
69.18in each year. A town must certify the levy adopted by the town board to the county auditor
69.19by September 15 each year. If the town board modifies the levy at a special town meeting
69.20after September 15, the town board must recertify its levy to the county auditor on or before
69.21five working days after December 20. If a city or county levy is subject to a referendum
69.22under section 275.80 and the referendum was approved by the voters, the maximum levy
69.23certified under this section is the proposed levy certified under section 275.065. If the
69.24referendum was not approved, the maximum amount of levy that a city or county may
69.25approve under this section is the maximum alternative levy allowed in section 275.80,
69.26subdivision 2. The city or county may choose to certify a levy less than the allowed maximum
69.27amount. If a city, town, county, school district, or special district fails to certify its levy by
69.28that date, its levy shall be the amount levied by it for the preceding year.
69.29(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
69.30shall be separately certified by the county to the county auditor on or before five working
69.31days after December 20 in each year. The taxes certified shall not be reduced by the county
69.32auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify
69.33its levy by that date, its levy shall be the amount levied by it for the preceding year.
70.1(ii) For purposes of the proposed property tax notice under section 275.065 and the
70.2property tax statement under section 276.04, for the first year in which the county implements
70.3the provisions of this paragraph, the county auditor shall reduce the county's levy for the
70.4preceding year to reflect any amount levied for water management purposes under clause
70.5(i) included in the county's levy.
70.6EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

70.7    Sec. 9. Minnesota Statutes 2016, section 275.60, is amended to read:
70.8275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE.
70.9(a) Notwithstanding any general or special law or any charter provisions, but subject to
70.10section 126C.17, subdivision 9, any question submitted to the voters by any local
70.11governmental subdivision at a general or special an election after June 8, 1995 June 30,
70.122017, authorizing a property tax levy or tax rate increase, including the issuance of debt
70.13obligations payable in whole or in part from property taxes, must include on the ballot the
70.14following notice in boldface type:
70.15"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A
70.16PROPERTY TAX INCREASE."
70.17(b) For purposes of this section and section 275.61, "local governmental subdivision"
70.18includes counties, home rule and statutory cities, towns, school districts, and all special
70.19taxing districts. This statement is in addition to any general or special laws or any charter
70.20provisions that govern the contents of a ballot question and, in the case of a question on the
70.21issuance of debt obligations, may be supplemented by a description of revenues pledged to
70.22payment of the obligations that are intended as the primary source of payment.
70.23(c) An election under this section must be held on the first Tuesday after the first Monday
70.24in November of either an even-numbered or odd-numbered year. This paragraph does not
70.25apply to an election on levying a tax or issuing debt obligations to finance the local
70.26government's response to a disaster or emergency. An election for these purposes may be
70.27held on a date set by the governing body. "Disaster" means a situation that creates an actual
70.28or imminent serious threat to the health and safety of persons, or a situation that has resulted
70.29or is likely to result in catastrophic loss to property or the environment. "Emergency" means
70.30an unforeseen combination of circumstances that calls for immediate action to prevent a
70.31disaster, identified in the referendum, from developing or occurring.
71.1(c) (d) This section does not apply to a school district bond election if the debt service
71.2payments are to be made entirely from transfers of revenue from the capital fund to the debt
71.3service fund.
71.4EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
71.5referendum authorized on or after that date.

71.6    Sec. 10. [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.
71.7    Subdivision 1. Citation. This section shall be known as the "Property Tax Payers'
71.8Empowerment Act."
71.9    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
71.10meanings given.
71.11(b) "General levy" means the total levy certified under section 275.07 by the local
71.12governmental unit, excluding any levy that was approved by the voters at a general or special
71.13election.
71.14(c) "Local governmental unit" means a county or a statutory or home rule charter city
71.15with a population of 500 or greater.
71.16(d) "Maximum alternative levy" for taxes levied in a current year by a local governmental
71.17unit means the sum of (1) its nondebt levy certified two years previous to the current year,
71.18and (2) the amount of its proposed levy for the current year levied for the purposes listed
71.19in section 275.70, subdivision 5, clauses (1) to (5).
71.20(e) "Nondebt levy" means the total levy certified under section 275.07 by the local
71.21governmental unit, minus any amount levied for the purposes listed in section 275.70,
71.22subdivision 5, clauses (1) to (5).
71.23    Subd. 3. Levy increase; reverse referendum authority. If the certified general levy
71.24exceeds the general levy in the previous year, the voters may petition for a referendum on
71.25the levy to be certified for the following year. The county auditor must publish information
71.26on the right to petition for a referendum as provided in section 276.04, subdivisions 1 and
71.272. If by June 30, a petition signed by the voters equal in number to ten percent of the votes
71.28cast in the last general election requesting a vote on the levy is filed with the county auditor,
71.29a question on the levy to be certified for the current year must be placed on the ballot at
71.30either the general election or at a special election held on the first Tuesday after the first
71.31Monday in November of the current calendar year.
72.1    Subd. 4. Prohibition against new debt before the election. Notwithstanding any other
72.2provision of law, ordinance, or local charter provision, a county or city must not issue any
72.3new debt or obligation from the time the petition for referendum is filed with the county
72.4auditor under subdivision 3 until the day after the referendum required under this section
72.5is held, except as allowed in this subdivision. Refunding bonds and bonds that have already
72.6received voter approval are exempt from the prohibition in this subdivision. For purposes
72.7of this subdivision, "obligation" has the meaning given in section 475.51, subdivision 3.
72.8    Subd. 5. Ballot question; consequence of vote. (a) The question submitted to the voters
72.9as required under subdivision 3 shall take the following form:
72.10"The governing body of ....... has imposed the following property tax levy in the last
72.11two years and is proposing the following maximum levy increase for the coming year:

72.12	(previous payable year)	(current payable year)	(coming payable year)
72.13	Total levy	Total levy	Maximum proposed levy
72.14	$.......	$.......	$.......

72.15Shall the governing body of ....... be allowed to impose the maximum proposed levy
72.16listed above?

72.17		Yes .....
72.18		No .....

72.19If the majority of votes cast are "no," its maximum allowed property tax levy for the
72.20coming year will be reduced to its maximum alternative levy of ......."
72.21(b) If a city is subject to this provision, it will provide the county auditor with information
72.22on its proposed levy by September 30 necessary to calculate the maximum alternative levy
72.23under subdivision 2.
72.24(c) If the majority of votes cast on this question are in the affirmative, the levy certified
72.25by the local governmental unit under section 275.07 must be less than or equal to its proposed
72.26levy under section 275.065. If the question does not receive sufficient affirmative votes,
72.27the levy amount that the local governmental unit certifies under section 275.07 in the current
72.28year must be less than or equal to its maximum alternative levy as defined in subdivision
72.292.
72.30EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

73.1    Sec. 11. Minnesota Statutes 2016, section 276.04, subdivision 1, is amended to read:
73.2    Subdivision 1. Auditor to publish rates. On receiving the tax lists from the county
73.3auditor, the county treasurer shall, if directed by the county board, give three weeks' published
73.4notice in a newspaper specifying the rates of taxation for all general purposes and the
73.5amounts raised for each specific purpose. If a city or county is subject to a petition of the
73.6voters due to a general levy increase as provided in section 275.80, the published notice
73.7must also include the general levy for the current year and the previous year for that city or
73.8county along with the following statement:
73.9"Because the governing body of ....... increased its nonvoter-approved levy in the current
73.10year, the voters in that jurisdiction have the right to petition for a referendum under Minnesota
73.11Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum, a
73.12petition signed by voters equal to ten percent of the votes cast in the last general election
73.13must be filed with the county auditor by June 30 of the current year."
73.14EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

73.15    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
73.16    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of
73.17the tax statements. The commissioner of revenue shall prescribe the form of the property
73.18tax statement and its contents. The tax statement must not state or imply that property tax
73.19credits are paid by the state of Minnesota. The statement must contain a tabulated statement
73.20of the dollar amount due to each taxing authority and the amount of the state tax from the
73.21parcel of real property for which a particular tax statement is prepared. The dollar amounts
73.22attributable to the county, the state tax, the voter approved school tax, the other local school
73.23tax, the township or municipality, and the total of the metropolitan special taxing districts
73.24as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
73.25amounts due all other special taxing districts, if any, may be aggregated except that any
73.26levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
73.27Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
73.28under the appropriate county's levy. If the county levy under this paragraph includes an
73.29amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
73.30the amount attributable for that purpose must be separately stated from the remaining county
73.31levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
73.32an amount for public library service under section 134.07, the amount attributable for that
73.33purpose may be separated from the remaining county levy amount. The amount of the tax
73.34on homesteads qualifying under the senior citizens' property tax deferral program under
74.1chapter 290B is the total amount of property tax before subtraction of the deferred property
74.2tax amount. The amount of the tax on contamination value imposed under sections 270.91
74.3to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
74.4amount of any special assessments, may be rounded to the nearest even whole dollar. For
74.5purposes of this section whole odd-numbered dollars may be adjusted to the next higher
74.6even-numbered dollar. The amount of market value excluded under section 273.11,
74.7subdivision 16 , if any, must also be listed on the tax statement.
74.8    (b) The property tax statements for manufactured homes and sectional structures taxed
74.9as personal property shall contain the same information that is required on the tax statements
74.10for real property.
74.11    (c) Real and personal property tax statements must contain the following information
74.12in the order given in this paragraph. The information must contain the current year tax
74.13information in the right column with the corresponding information for the previous year
74.14in a column on the left:
74.15    (1) the property's estimated market value under section 273.11, subdivision 1;
74.16    (2) the property's homestead market value exclusion under section 273.13, subdivision
74.1735;
74.18    (3) the property's taxable market value under section 272.03, subdivision 15;
74.19    (4) the property's gross tax, before credits;
74.20    (5) for homestead agricultural properties, the credit under section 273.1384;
74.21    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
74.22273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
74.23received under section 273.135 must be separately stated and identified as "taconite tax
74.24relief"; and
74.25    (7) the net tax payable in the manner required in paragraph (a).
74.26(d) If a city or county is subject to a petition of the voters due to a general levy increase
74.27as provided in section 275.80, the tax statement must also include the general levy for the
74.28current year and the previous year for that city or county along with the following statement:
74.29    "Because the governing body of ....... increased its nonvoter-approved levy in the current
74.30year, the voters in that jurisdiction have the right to petition for a referendum on that
74.31jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the
74.32referendum, a petition signed by voters equal to ten percent of the votes cast in the last
75.1general election on this issue must be filed with the county auditor by June 30 of the current
75.2year."
75.3    (d) (e) If the county uses envelopes for mailing property tax statements and if the county
75.4agrees, a taxing district may include a notice with the property tax statement notifying
75.5taxpayers when the taxing district will begin its budget deliberations for the current year,
75.6and encouraging taxpayers to attend the hearings. If the county allows notices to be included
75.7in the envelope containing the property tax statement, and if more than one taxing district
75.8relative to a given property decides to include a notice with the tax statement, the county
75.9treasurer or auditor must coordinate the process and may combine the information on a
75.10single announcement.
75.11EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

75.12    Sec. 13. Minnesota Statutes 2016, section 412.221, subdivision 2, is amended to read:
75.13    Subd. 2. Contracts. The council shall have power to make such contracts as may be
75.14deemed necessary or desirable to make effective any power possessed by the council. The
75.15city may purchase personal property through a conditional sales contract and real property
75.16through a contract for deed under which contracts the seller is confined to the remedy of
75.17recovery of the property in case of nonpayment of all or part of the purchase price, which
75.18shall be payable over a period of not to exceed five years. When the contract price of property
75.19to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent
75.20of the estimated market value of the city, the city may not enter into such a contract for at
75.21least ten days after publication in the official newspaper of a council resolution determining
75.22to purchase property by such a contract; and, if before the end of that time a petition asking
75.23for an election on the proposition signed by voters equal to ten percent of the number of
75.24voters at the last regular city election is filed with the clerk, the city may not enter into such
75.25a contract until the proposition has been approved by a majority of the votes cast on the
75.26question at a regular or special an election held on the first Tuesday after the first Monday
75.27in November of either an even-numbered or odd-numbered year.
75.28EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
75.29referendum authorized on or after that date.

75.30    Sec. 14. Minnesota Statutes 2016, section 412.301, is amended to read:
75.31412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
76.1    (a) The council may issue certificates of indebtedness or capital notes subject to the city
76.2debt limits to purchase capital equipment.
76.3    (b) For purposes of this section, "capital equipment" means:
76.4    (1) public safety equipment, ambulance and other medical equipment, road construction
76.5and maintenance equipment, and other capital equipment; and
76.6    (2) computer hardware and software, whether bundled with machinery or equipment or
76.7unbundled, together with application development services and training related to the use
76.8of the computer hardware or software.
76.9    (c) The equipment or software must have an expected useful life at least as long as the
76.10terms of the certificates or notes.
76.11    (d) Such certificates or notes shall be payable in not more than ten years and shall be
76.12issued on such terms and in such manner as the council may determine.
76.13    (e) If the amount of the certificates or notes to be issued to finance any such purchase
76.14exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
76.15not be issued for at least ten days after publication in the official newspaper of a council
76.16resolution determining to issue them; and if before the end of that time, a petition asking
76.17for an election on the proposition signed by voters equal to ten percent of the number of
76.18voters at the last regular municipal election is filed with the clerk, such certificates or notes
76.19shall not be issued until the proposition of their issuance has been approved by a majority
76.20of the votes cast on the question at a regular or special an election held on the first Tuesday
76.21after the first Monday in November of either an even-numbered or odd-numbered year.
76.22    (f) A tax levy shall be made for the payment of the principal and interest on such
76.23certificates or notes, in accordance with section 475.61, as in the case of bonds.
76.24EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
76.25referendum authorized on or after that date.

76.26    Sec. 15. Minnesota Statutes 2016, section 426.19, subdivision 2, is amended to read:
76.27    Subd. 2. Referendum in certain cases. Before the pledge of any such revenues to the
76.28payment of any such bonds, warrants or certificates of indebtedness, except bonds, warrants
76.29or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
76.30store shall be made, the governing body shall submit to the voters of the city the question
76.31of whether such revenues shall be so pledged and such pledge shall not be binding on the
76.32city until it shall have been approved by a majority of the voters voting on the question at
77.1either a general an election or special election called for that purpose held on the first Tuesday
77.2after the first Monday in November of either an even-numbered or odd-numbered year. No
77.3election shall be required for pledge of such revenues for payment of bonds, warrants or
77.4certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor
77.5store.
77.6EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
77.7referendum authorized on or after that date.

77.8    Sec. 16. Minnesota Statutes 2016, section 447.045, subdivision 2, is amended to read:
77.9    Subd. 2. Statutory city; on-sale and off-sale store. If the voters of a statutory city
77.10operating an on-sale and off-sale municipal liquor store, at a general or special an election
77.11held on the first Tuesday after the first Monday in November of either an even-numbered
77.12or odd-numbered year, vote in favor of contributing from its liquor dispensary fund toward
77.13the construction of a community hospital, the city council may appropriate not more than
77.14$60,000 from the fund to any incorporated nonprofit hospital association to build a
77.15community hospital in the statutory city. The hospital must be governed by a board including
77.16two or more members of the statutory city council and be open to all residents of the statutory
77.17city on equal terms. This appropriation must not exceed one-half the total cost of construction
77.18of the hospital. The council must not appropriate the money unless the average net earnings
77.19of the on-sale and off-sale municipal liquor store have been at least $10,000 for the last five
77.20completed fiscal years before the date of the appropriation.
77.21EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
77.22referendum authorized on or after that date.

77.23    Sec. 17. Minnesota Statutes 2016, section 447.045, subdivision 3, is amended to read:
77.24    Subd. 3. Statutory city; off-sale or on- and off-sale store. (a) If a statutory city operates
77.25an off-sale, or an on- and off-sale municipal liquor store it may provide for a vote at a general
77.26or special an election held on the first Tuesday after the first Monday in November of either
77.27an even-numbered or odd-numbered year on the question of contributing from the city liquor
77.28dispensary fund to build, maintain, and operate a community hospital. If the vote is in favor,
77.29the city council may appropriate money from the fund to an incorporated hospital association
77.30for a period of four years. The appropriation must be from the net profits or proceeds of the
77.31municipal liquor store. It must not exceed $4,000 a year for hospital construction and
77.32maintenance or $1,000 a year for operation. The hospital must be open to all residents of
77.33the community on equal terms.
78.1(b) The council must not appropriate the money unless the average net earnings of the
78.2off-sale, or on- and off-sale municipal liquor store have been at least $8,000 for the last two
78.3completed years before the date of the appropriation.
78.4EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
78.5referendum authorized on or after that date.

78.6    Sec. 18. Minnesota Statutes 2016, section 447.045, subdivision 4, is amended to read:
78.7    Subd. 4. Fourth class city operating store. If a city of the fourth class operates a
78.8municipal liquor store, it may provide for a vote at a general or special an election held on
78.9the first Tuesday after the first Monday in November of either an even-numbered or
78.10odd-numbered year on the question of contributing from the profit in the city liquor
78.11dispensary fund to build, equip, and maintain a community hospital within the city limits.
78.12If the vote is in favor, the city council may appropriate not more than $200,000 from profits
78.13in the fund for the purpose. The hospital must be open to all residents of the city on equal
78.14terms.
78.15The city may issue certificates of indebtedness in anticipation of and payable only from
78.16profits from the operation of municipal liquor stores.
78.17EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
78.18referendum authorized on or after that date.

78.19    Sec. 19. Minnesota Statutes 2016, section 447.045, subdivision 6, is amended to read:
78.20    Subd. 6. Statutory city; fourth class. If a fourth class statutory city operates a municipal
78.21liquor store, it may provide for a vote at a general or special an election held on the first
78.22Tuesday after the first Monday in November of either an even-numbered or odd-numbered
78.23year on the question of contributing from the city liquor dispensary fund not more than
78.24$15,000 a year for five years to build and maintain a community hospital. If the vote is in
78.25favor the council may appropriate the money from the fund to an incorporated community
78.26hospital association in the city.
78.27EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
78.28referendum authorized on or after that date.

78.29    Sec. 20. Minnesota Statutes 2016, section 447.045, subdivision 7, is amended to read:
78.30    Subd. 7. Statutory city; any store. If a statutory city operates a municipal liquor store,
78.31it may provide for a vote at a general or special an election held on the first Tuesday after
79.1the first Monday in November of either an even-numbered or odd-numbered year on the
79.2question of contributing from the statutory city liquor dispensary fund toward the acquisition,
79.3construction, improvement, maintenance, and operation of a community hospital. If the
79.4vote is in favor, the council may appropriate money from time to time out of the net profits
79.5or proceeds of the municipal liquor store to an incorporated nonprofit hospital association
79.6in the statutory city. The hospital association must be governed by a board of directors
79.7elected by donors of $50 or more, who each have one vote. The hospital must be open to
79.8all residents of the community on equal terms.
79.9EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
79.10referendum authorized on or after that date.

79.11    Sec. 21. Minnesota Statutes 2016, section 452.11, is amended to read:
79.12452.11 SUBMISSION TO VOTERS.
79.13No city of the first class shall acquire or construct any public utility under the terms of
79.14sections 452.08 to 452.13 unless the proposition to acquire or construct same has first been
79.15submitted to the qualified electors of the city at a general city election or at a special election
79.16called for that purpose, held on the first Tuesday after the first Monday in November of
79.17either an even-numbered or odd-numbered year and has been approved by a majority vote
79.18of all electors voting upon the proposition.
79.19The question of issuing public utility certificates as provided in section 452.09 may, at
79.20the option of the council, be submitted at the same election as the question of the acquisition
79.21or construction of the public utility.
79.22EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
79.23referendum authorized on or after that date.

79.24    Sec. 22. Minnesota Statutes 2016, section 455.24, is amended to read:
79.25455.24 SUBMISSION TO VOTERS.
79.26Before incurring any expense under the powers conferred by section 455.23, the approval
79.27of the voters of the city shall first be had at a general or special an election held therein on
79.28the first Tuesday after the first Monday in November of either an even-numbered or
79.29odd-numbered year. If a majority of the voters of the city participating at the election shall
79.30vote in favor of the construction of the system of poles, wires and cables herein authorized
79.31to be made, the council shall proceed with the construction.
80.1EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
80.2referendum authorized on or after that date.

80.3    Sec. 23. Minnesota Statutes 2016, section 455.29, is amended to read:
80.4455.29 MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE.
80.5Except as otherwise restricted by chapter 216B, the governing body, or the commission
80.6or board charged with the operation of the public utilities, if one exists therein, of any
80.7municipality in the state owning and operating an electric light and power plant for the
80.8purpose of the manufacture and sale of electrical power or for the purchase and redistribution
80.9of electrical power, may, upon a two-thirds vote of the governing body, or the commission
80.10or board, in addition to all other powers now possessed by such municipality, sell electricity
80.11to customers, singly or collectively, outside of such municipality, within the state but not
80.12to exceed a distance of 30 miles from the corporate limits of the municipality. Before any
80.13municipality shall have the power to extend its lines and sell electricity outside of the
80.14municipality as provided by sections 455.29 and 455.30, the governing body shall first
80.15submit to the voters of the municipality, at a general or special an election held on the first
80.16Tuesday after the first Monday in November of either an even-numbered or odd-numbered
80.17year, the general principle of going outside the municipality and fixing the maximum amount
80.18of contemplated expenditures reasonably expected to be made for any and all extensions
80.19then or thereafter contemplated. Three weeks' published notice shall be given of such election
80.20as required by law, and if a majority of those voting upon the proposition favors the same,
80.21then the municipality shall thereafter be considered as having chosen to enter the general
80.22business of extending its electric light and power facilities beyond the corporate limits of
80.23the municipality. It shall not be necessary to submit to a vote of the people the question of
80.24any specific enlargement, extension, or improvement of any outside lines; provided the
80.25voters of the municipality have generally elected to exercise the privileges afforded by
80.26sections 455.29 and 455.30, and, provided, that each and any specific extension, enlargement,
80.27or improvement project is within the limit of the maximum expenditure authorized at the
80.28election. In cities operating under a home rule charter, where a vote of the people is not
80.29now required in order to extend electric light and power lines, no election shall be required
80.30under the provisions of any act. At any election held to determine the attitude of the voters
80.31upon this principle, the question shall be simply stated upon the ballot provided therefor,
80.32and shall be substantially in the following form: "Shall the city of ..................... undertake
80.33the general proposition of extending its electric light and power lines beyond the limits of
80.34the municipality, and limit the maximum expenditures for any and all future extensions to
80.35the sum of $....................?" For this purpose every municipality is authorized and empowered
81.1to extend the lines, wires, and fixtures of its plant to such customers and may issue certificates
81.2of indebtedness therefor in an amount not to exceed the actual cost of the extensions and
81.3for a term not to exceed the reasonable life of the extensions. These certificates of
81.4indebtedness shall in no case be made a charge against the municipality, but shall be payable
81.5and paid out of current revenues of the plant other than taxes.
81.6EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
81.7referendum authorized on or after that date.

81.8    Sec. 24. Minnesota Statutes 2016, section 459.06, subdivision 1, is amended to read:
81.9    Subdivision 1. Accept donations. Any county, city, or town may by resolution of its
81.10governing body accept donations of land that the governing body deems to be better adapted
81.11for the production of timber and wood than for any other purpose, for a forest, and may
81.12manage it on forestry principles. The donor of not less than 100 acres of any such land shall
81.13be entitled to have the land perpetually bear the donor's name. The governing body of any
81.14city or town, when funds are available or have been levied therefor, may, when authorized
81.15by a majority vote by ballot of the voters voting at any general or special city election held
81.16on the first Tuesday after the first Monday in November of either an even-numbered or
81.17odd-numbered year or the annual town meeting where the question is properly submitted,
81.18purchase or obtain by condemnation proceedings, and preferably at the sources of streams,
81.19any tract of land for a forest which is better adapted for the production of timber and wood
81.20than for any other purpose, and which is conveniently located for the purpose, and manage
81.21it on forestry principles. The city or town may annually levy a tax on all taxable property
81.22within its boundaries to procure and maintain such forests.
81.23EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
81.24referendum authorized on or after that date.

81.25    Sec. 25. Minnesota Statutes 2016, section 469.053, subdivision 5, is amended to read:
81.26    Subd. 5. Reverse referendum. A city may increase its levy for port authority purposes
81.27under subdivision 4 only as provided in this subdivision. Its city council must first pass a
81.28resolution stating the proposed amount of levy increase. The city must then publish the
81.29resolution together with a notice of public hearing on the resolution for two successive
81.30weeks in its official newspaper or, if none exists, in a newspaper of general circulation in
81.31the city. The hearing must be held two to four weeks after the first publication. After the
81.32hearing, the city council may decide to take no action or may adopt a resolution authorizing
81.33the proposed increase or a lesser increase. A resolution authorizing an increase must be
82.1published in the city's official newspaper or, if none exists, in a newspaper of general
82.2circulation in the city. The resolution is not effective if a petition requesting a referendum
82.3on the resolution is filed with the city clerk within 30 days of publication of the resolution.
82.4The petition must be signed by voters equaling five percent of the votes cast in the city in
82.5the last general election. The resolution is effective if approved by a majority of those voting
82.6on the question. The commissioner of revenue shall prepare a suggested form of referendum
82.7question. The referendum must be held at a special or general an election before October 1
82.8of the year for which the levy increase is proposed conducted on the first Tuesday after the
82.9first Monday in November of either an even-numbered or odd-numbered year. If approved
82.10by the voters, the levy increase may take effect no sooner than the next calendar year.
82.11EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
82.12referendum authorized on or after that date.

82.13    Sec. 26. Minnesota Statutes 2016, section 469.107, subdivision 2, is amended to read:
82.14    Subd. 2. Reverse referendum. A city may increase its levy for economic development
82.15authority purposes under subdivision 1 in the following way. Its city council must first pass
82.16a resolution stating the proposed amount of levy increase. The city must then publish the
82.17resolution together with a notice of public hearing on the resolution for two successive
82.18weeks in its official newspaper or if none exists in a newspaper of general circulation in the
82.19city. The hearing must be held two to four weeks after the first publication. After the hearing,
82.20the city council may decide to take no action or may adopt a resolution authorizing the
82.21proposed increase or a lesser increase. A resolution authorizing an increase must be published
82.22in the city's official newspaper or if none exists in a newspaper of general circulation in the
82.23city. The resolution is not effective if a petition requesting a referendum on the resolution
82.24is filed with the city clerk within 30 days of publication of the resolution. The petition must
82.25be signed by voters equaling five percent of the votes cast in the city in the last general
82.26election. The election referendum must be held at a general or special an election held on
82.27the first Tuesday after the first Monday in November of either an even-numbered or
82.28odd-numbered year. Notice of the election must be given in the manner required by law.
82.29The notice must state the purpose and amount of the levy.
82.30EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
82.31referendum authorized on or after that date.

83.1    Sec. 27. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:
83.2    Subdivision 1. Authorization. Notwithstanding section 477A.016 or any other law, a
83.3statutory or home rule charter city may by ordinance, and a town may by the affirmative
83.4vote of the electors at the annual town meeting, or at a special town meeting, impose a tax
83.5of up to three percent on the gross receipts from the furnishing for consideration of lodging
83.6at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
83.7of it for a continuous period of 30 days or more. A statutory or home rule charter city may
83.8by ordinance impose the tax authorized under this subdivision on the camping site receipts
83.9of a municipal campground.
83.10EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
83.11referendum authorized on or after that date.

83.12    Sec. 28. Minnesota Statutes 2016, section 469.190, subdivision 5, is amended to read:
83.13    Subd. 5. Reverse referendum. If the county board passes a resolution under subdivision
83.144 to impose the tax, the resolution must be published for two successive weeks in a newspaper
83.15of general circulation within the unorganized territory, together with a notice fixing a date
83.16for a public hearing on the proposed tax.
83.17The hearing must be held not less than two weeks nor more than four weeks after the
83.18first publication of the notice. After the public hearing, the county board may determine to
83.19take no further action, or may adopt a resolution authorizing the tax as originally proposed
83.20or approving a lesser rate of tax. The resolution must be published in a newspaper of general
83.21circulation within the unorganized territory. The voters of the unorganized territory may
83.22request a referendum on the proposed tax by filing a petition with the county auditor within
83.2330 days after the resolution is published. The petition must be signed by voters who reside
83.24in the unorganized territory. The number of signatures must equal at least five percent of
83.25the number of persons voting in the unorganized territory in the last general election. If such
83.26a petition is timely filed, the resolution is not effective until it has been submitted to the
83.27voters residing in the unorganized territory at a general or special an election held on the
83.28first Tuesday after the first Monday in November of either an even-numbered or
83.29odd-numbered year and a majority of votes cast on the question of approving the resolution
83.30are in the affirmative. The commissioner of revenue shall prepare a suggested form of
83.31question to be presented at the referendum.
83.32EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
83.33referendum authorized on or after that date.

84.1    Sec. 29. Minnesota Statutes 2016, section 471.57, subdivision 3, is amended to read:
84.2    Subd. 3. May use fund for other purposes upon vote. The council of any municipality
84.3which has established a public works reserve fund by an ordinance designating the specific
84.4improvement or type of capital improvement for which the fund may be used may submit
84.5to the voters of the municipality at any regular or special an election held on the first Tuesday
84.6after the first Monday in November of either an even-numbered or odd-numbered year the
84.7question of using the fund for some other purpose. If a majority of the votes cast on the
84.8question are in favor of such diversion from the original purpose of the fund, it may be used
84.9for any purpose so approved by the voters.
84.10EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
84.11referendum authorized on or after that date.

84.12    Sec. 30. Minnesota Statutes 2016, section 471.571, subdivision 3, is amended to read:
84.13    Subd. 3. Expenditure from fund, limitation. No expenditure for any one project in
84.14excess of 60 percent of one year's levy or $25,000, whichever is greater, may be made from
84.15such permanent improvement or replacement fund in any year without first obtaining the
84.16approval of a majority of the voters voting at a general or special municipal election held
84.17on the first Tuesday after the first Monday in November of either an even-numbered or
84.18odd-numbered year at which the question of making such expenditure has been submitted.
84.19In submitting any proposal to the voters for approval, the amount proposed to be spent and
84.20the purpose thereof shall be stated in the proposal submitted. The proceeds of such levies
84.21may be pledged for the payment of any bonds issued pursuant to law for any purposes
84.22authorized hereby and annual payments upon such bonds or interest may be made without
84.23additional authorization.
84.24EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
84.25referendum authorized on or after that date.

84.26    Sec. 31. Minnesota Statutes 2016, section 471.572, subdivision 2, is amended to read:
84.27    Subd. 2. Tax levy. The governing body of a city may establish, by a two-thirds vote of
84.28all its members, by ordinance or resolution a reserve fund and may annually levy a property
84.29tax for the support of the fund. The proceeds of taxes levied for its support must be paid
84.30into the reserve fund. Any other revenue from a source not required by law to be paid into
84.31another fund for purposes other than those provided for the use of the reserve fund may be
84.32paid into the fund. Before a tax is levied under this section, the city must publish in the
84.33official newspaper of the city an initial resolution authorizing the tax levy. If within ten
85.1days after the publication a petition is filed with the city clerk requesting an election on the
85.2tax levy signed by a number of qualified voters greater than ten percent of the number who
85.3voted in the city at the last general election, the tax may not be levied until the levy has
85.4been approved by a majority of the votes cast on it at a regular or special an election held
85.5on the first Tuesday after the first Monday in November of either an even-numbered or
85.6odd-numbered year.
85.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
85.8referendum authorized on or after that date.

85.9    Sec. 32. Minnesota Statutes 2016, section 471.572, subdivision 4, is amended to read:
85.10    Subd. 4. Use of fund for a specific purpose. If the city has established a reserve fund,
85.11it may submit to the voters at a regular or special an election held on the first Tuesday after
85.12the first Monday in November of either an even-numbered or odd-numbered year the question
85.13of whether use of the fund should be restricted to a specific improvement or type of capital
85.14improvement. If a majority of the votes cast on the question are in favor of the limitation
85.15on the use of the reserve fund, it may be used only for the purpose approved by the voters.
85.16EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
85.17referendum authorized on or after that date.

85.18    Sec. 33. Minnesota Statutes 2016, section 475.59, is amended to read:
85.19475.59 MANNER OF SUBMISSION; NOTICE.
85.20    Subdivision 1. Generally; notice. When the governing body of a municipality resolves
85.21to issue bonds for any purpose requiring the approval of the electors, it shall provide for
85.22submission of the proposition of their issuance at a general or special election or town or
85.23school district meeting. Notice of such election or meeting shall be given in the manner
85.24required by law and shall state the maximum amount and the purpose of the proposed issue.
85.25In any school district, the school board or board of education may, according to its judgment
85.26and discretion, submit as a single ballot question or as two or more separate questions in
85.27the notice of election and ballots the proposition of their issuance for any one or more of
85.28the following, stated conjunctively or in the alternative: acquisition or enlargement of sites,
85.29acquisition, betterment, erection, furnishing, equipping of one or more new schoolhouses,
85.30remodeling, repairing, improving, adding to, betterment, furnishing, equipping of one or
85.31more existing schoolhouses. In any city, town, or county, the governing body may, according
85.32to its judgment and discretion, submit as a single ballot question or as two or more separate
85.33questions in the notice of election and ballots the proposition of their issuance, stated
86.1conjunctively or in the alternative, for the acquisition, construction, or improvement of any
86.2facilities at one or more locations.
86.3    Subd. 2. Election date. An election to approve issuance of bonds under this section held
86.4by a municipality other than a town must be held on the first Tuesday after the first Monday
86.5in November of either an even-numbered or odd-numbered year. An election under this
86.6section held by a town may be held on the same day as the annual town meeting or on the
86.7first Tuesday after the first Monday in November of either an even-numbered or
86.8odd-numbered year.
86.9    Subd. 3. Special laws. If a referendum on the issuance of bonds or other debt obligations
86.10authorized in a special law is required, it must be held on a date as provided in subdivision
86.112, notwithstanding any provision in the special law authorizing the referendum to be held
86.12at any other time.
86.13    Subd. 4. Exception for disaster or emergency. Subdivisions 2 and 3, and any other
86.14law requiring an election to approve issuance of bonds or other debt obligations to be held
86.15on the first Tuesday after the first Monday in November of either an even-numbered or
86.16odd-numbered year, do not apply to issuance of bonds or other debt obligations to finance
86.17the municipality's response to an emergency or disaster. "Disaster" means a situation that
86.18creates an actual or imminent serious threat to the health and safety of persons, or a situation
86.19that has resulted or is likely to result in catastrophic loss to property or the environment.
86.20"Emergency" means an unforeseen combination of circumstances that calls for immediate
86.21action to prevent a disaster, identified in the referendum, from developing or occurring.
86.22EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any
86.23referendum authorized on or after that date.

86.24    Sec. 34. REPEALER.
86.25Minnesota Statutes 2016, section 205.10, subdivision 3, is repealed.
86.26EFFECTIVE DATE.This section is effective August 1, 2017.

86.27ARTICLE 3

86.28AIDS, CREDITS, AND REFUNDS

86.29    Section 1. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
86.30    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund
86.31payments for a district nonoperating fund must be made at the current year aid payment
86.32percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
87.1shall be paid in 12 six equal monthly installments beginning in July. The amount of the
87.2actual entitlement, after adjustment for actual data, minus the payments made during the
87.3fiscal year of the entitlement must be paid prior to October 31 of the following school year.
87.4The commissioner may make advance payments of debt service equalization aid and
87.5state-paid tax credits for a district's debt service fund earlier than would occur under the
87.6preceding schedule if the district submits evidence showing a serious cash flow problem in
87.7the fund. The commissioner may make earlier payments during the year and, if necessary,
87.8increase the percent of the entitlement paid to reduce the cash flow problem.
87.9EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

87.10    Sec. 2. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
87.11    Subd. 13. Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a,
87.12and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
87.13120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392,
87.14shall be paid at the current year aid payment percentage of the estimated entitlement during
87.15the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
87.16entitlement for special education aid under section 125A.76 for fiscal year 2014 and later
87.17equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment
87.18payment, according to subdivision 9, must be the amount of the actual entitlement, after
87.19adjustment for actual data, minus the payments made during the fiscal year of the entitlement.
87.20EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

87.21    Sec. 3. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
87.22    Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
87.23subdivision 23, other than property consisting of the house, garage, and immediately
87.24surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
87.25under this section.
87.26    Subd. 2. Credit amount. For each qualifying property, the school building bond
87.27agricultural credit is equal to 50 percent of the property's eligible net tax capacity multiplied
87.28by the school debt tax rate determined under section 275.08, subdivision 1b.
87.29    Subd. 3. Credit reimbursements. The county auditor shall determine the tax reductions
87.30allowed under this section within the county for each taxes payable year and shall certify
87.31that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
87.32under section 275.29. Any prior year adjustments shall also be certified on the abstracts of
88.1tax lists. The commissioner shall review the certifications for accuracy, and may make such
88.2changes as are deemed necessary, or return the certification to the county auditor for
88.3correction. The credit under this section must be used to reduce the school district net tax
88.4capacity-based property tax as provided in section 273.1393.
88.5    Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
88.6reductions granted under this section for each taxes payable year within each school district
88.7to the commissioner of education, who shall pay the reimbursement amounts to each school
88.8district as provided in section 273.1392.
88.9    Subd. 5. Appropriation. An amount sufficient to make the payments required by this
88.10section is annually appropriated from the general fund to the commissioner of education.
88.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

88.12    Sec. 4. Minnesota Statutes 2016, section 273.1392, is amended to read:
88.13273.1392 PAYMENT; SCHOOL DISTRICTS.
88.14The amounts of bovine tuberculosis credit reimbursements under section 273.113;
88.15conservation tax credits under section 273.119; disaster or emergency reimbursement under
88.16sections 273.1231 to 273.1235; homestead and agricultural credits under section sections
88.17273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property
88.18credit payments under section 469.171; and metropolitan agricultural preserve reduction
88.19under section 473H.10 for school districts, shall be certified to the Department of Education
88.20by the Department of Revenue. The amounts so certified shall be paid according to section
88.21127A.45 , subdivisions 9, 10, and 13.
88.22EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

88.23    Sec. 5. Minnesota Statutes 2016, section 273.1393, is amended to read:
88.24273.1393 COMPUTATION OF NET PROPERTY TAXES.
88.25    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
88.26by subtracting the credits in the order listed from the gross tax:
88.27    (1) disaster credit as provided in sections 273.1231 to 273.1235;
88.28    (2) powerline credit as provided in section 273.42;
88.29    (3) agricultural preserves credit as provided in section 473H.10;
88.30    (4) enterprise zone credit as provided in section 469.171;
89.1    (5) disparity reduction credit;
89.2    (6) conservation tax credit as provided in section 273.119;
89.3    (7) the school bond credit as provided in section 273.1387;
89.4    (8) agricultural credit as provided in section 273.1384;
89.5    (8) (9) taconite homestead credit as provided in section 273.135;
89.6    (9) (10) supplemental homestead credit as provided in section 273.1391; and
89.7    (10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
89.8    The combination of all property tax credits must not exceed the gross tax amount.
89.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

89.10    Sec. 6. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
89.11    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and
89.12the county treasurer shall deliver after November 10 and on or before November 24 each
89.13year, by first class mail to each taxpayer at the address listed on the county's current year's
89.14assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
89.15the treasurer may send the notice in electronic form or by electronic mail instead of on paper
89.16or by ordinary mail.
89.17    (b) The commissioner of revenue shall prescribe the form of the notice.
89.18    (c) The notice must inform taxpayers that it contains the amount of property taxes each
89.19taxing authority proposes to collect for taxes payable the following year. In the case of a
89.20town, or in the case of the state general tax, the final tax amount will be its proposed tax.
89.21The notice must clearly state for each city that has a population over 500, county, school
89.22district, regional library authority established under section 134.201, and metropolitan taxing
89.23districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
89.24in which the budget and levy will be discussed and public input allowed, prior to the final
89.25budget and levy determination. The taxing authorities must provide the county auditor with
89.26the information to be included in the notice on or before the time it certifies its proposed
89.27levy under subdivision 1. The public must be allowed to speak at that meeting, which must
89.28occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
89.29number for the taxing authority that taxpayers may call if they have questions related to the
89.30notice and an address where comments will be received by mail, except that no notice
89.31required under this section shall be interpreted as requiring the printing of a personal
89.32telephone number or address as the contact information for a taxing authority. If a taxing
90.1authority does not maintain public offices where telephone calls can be received by the
90.2authority, the authority may inform the county of the lack of a public telephone number and
90.3the county shall not list a telephone number for that taxing authority.
90.4    (d) The notice must state for each parcel:
90.5    (1) the market value of the property as determined under section 273.11, and used for
90.6computing property taxes payable in the following year and for taxes payable in the current
90.7year as each appears in the records of the county assessor on November 1 of the current
90.8year; and, in the case of residential property, whether the property is classified as homestead
90.9or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
90.10values apply and that the values are final values;
90.11    (2) the items listed below, shown separately by county, city or town, and state general
90.12tax, agricultural homestead credit under section 273.1384, school building bond agricultural
90.13credit under section 273.1387, voter approved school levy, other local school levy, and the
90.14sum of the special taxing districts, and as a total of all taxing authorities:
90.15    (i) the actual tax for taxes payable in the current year; and
90.16    (ii) the proposed tax amount.
90.17    If the county levy under clause (2) includes an amount for a lake improvement district
90.18as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
90.19must be separately stated from the remaining county levy amount.
90.20    In the case of a town or the state general tax, the final tax shall also be its proposed tax
90.21unless the town changes its levy at a special town meeting under section 365.52. If a school
90.22district has certified under section 126C.17, subdivision 9, that a referendum will be held
90.23in the school district at the November general election, the county auditor must note next
90.24to the school district's proposed amount that a referendum is pending and that, if approved
90.25by the voters, the tax amount may be higher than shown on the notice. In the case of the
90.26city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
90.27from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
90.28the St. Paul Library Agency must be listed separately from the remaining amount of the
90.29city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
90.30listed separately from the remaining amount of the county's levy. In the case of a parcel
90.31where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
90.32applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
90.33capacity subject to the areawide tax must each be stated separately and not included in the
90.34sum of the special taxing districts; and
91.1    (3) the increase or decrease between the total taxes payable in the current year and the
91.2total proposed taxes, expressed as a percentage.
91.3    For purposes of this section, the amount of the tax on homesteads qualifying under the
91.4senior citizens' property tax deferral program under chapter 290B is the total amount of
91.5property tax before subtraction of the deferred property tax amount.
91.6    (e) The notice must clearly state that the proposed or final taxes do not include the
91.7following:
91.8    (1) special assessments;
91.9    (2) levies approved by the voters after the date the proposed taxes are certified, including
91.10bond referenda and school district levy referenda;
91.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
91.12in November of the levy year as provided under section 275.73;
91.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
91.14after the date the proposed taxes are certified;
91.15    (5) amounts necessary to pay tort judgments against the taxing authority that become
91.16final after the date the proposed taxes are certified; and
91.17    (6) the contamination tax imposed on properties which received market value reductions
91.18for contamination.
91.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
91.20county treasurer to deliver the notice as required in this section does not invalidate the
91.21proposed or final tax levy or the taxes payable pursuant to the tax levy.
91.22    (g) If the notice the taxpayer receives under this section lists the property as
91.23nonhomestead, and satisfactory documentation is provided to the county assessor by the
91.24applicable deadline, and the property qualifies for the homestead classification in that
91.25assessment year, the assessor shall reclassify the property to homestead for taxes payable
91.26in the following year.
91.27    (h) In the case of class 4 residential property used as a residence for lease or rental
91.28periods of 30 days or more, the taxpayer must either:
91.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
91.30or lessee; or
91.31    (2) post a copy of the notice in a conspicuous place on the premises of the property.
92.1    The notice must be mailed or posted by the taxpayer by November 27 or within three
92.2days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
92.3of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
92.4notice must be mailed in order to fulfill the requirements of this paragraph.
92.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
92.6districts" means the following taxing districts in the seven-county metropolitan area that
92.7levy a property tax for any of the specified purposes listed below:
92.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
92.9473.521 , 473.547, or 473.834;
92.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
92.11    (3) Metropolitan Mosquito Control Commission under section 473.711.
92.12    For purposes of this section, any levies made by the regional rail authorities in the county
92.13of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
92.14shall be included with the appropriate county's levy.
92.15    (j) The governing body of a county, city, or school district may, with the consent of the
92.16county board, include supplemental information with the statement of proposed property
92.17taxes about the impact of state aid increases or decreases on property tax increases or
92.18decreases and on the level of services provided in the affected jurisdiction. This supplemental
92.19information may include information for the following year, the current year, and for as
92.20many consecutive preceding years as deemed appropriate by the governing body of the
92.21county, city, or school district. It may include only information regarding:
92.22    (1) the impact of inflation as measured by the implicit price deflator for state and local
92.23government purchases;
92.24    (2) population growth and decline;
92.25    (3) state or federal government action; and
92.26    (4) other financial factors that affect the level of property taxation and local services
92.27that the governing body of the county, city, or school district may deem appropriate to
92.28include.
92.29    The information may be presented using tables, written narrative, and graphic
92.30representations and may contain instruction toward further sources of information or
92.31opportunity for comment.
92.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

93.1    Sec. 7. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
93.2    Subd. 2. School district in more than one county levies; special requirements. (a) In
93.3school districts lying in more than one county, the clerk shall certify the tax levied to the
93.4auditor of the county in which the administrative offices of the school district are located.
93.5(b) The district must identify the portion of the school district levy that is levied for debt
93.6service at the time the levy is certified under this section. For the purposes of this paragraph,
93.7"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and
93.8123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions
93.9under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment
93.10of other postemployment benefits under section 475.52, subdivision 6.
93.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

93.12    Sec. 8. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
93.13    Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net
93.14tax capacity under section 275.07 by an individual local government unit shall be divided
93.15by the total net tax capacity of all taxable properties within the local government unit's
93.16taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
93.17each property's net tax capacity shall be each property's net tax capacity tax for that local
93.18government unit before reduction by any credits.
93.19(b) The auditor must also determine the school debt tax rate for each school district equal
93.20to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
93.21(2) the total net tax capacity of all taxable property within the district.
93.22(c) Any amount certified to the county auditor to be levied against market value shall
93.23be divided by the total referendum market value of all taxable properties within the taxing
93.24district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
93.25property's referendum market value shall be each property's new referendum tax before
93.26reduction by any credits. For the purposes of this subdivision, "referendum market value"
93.27means the market value as defined in section 126C.01, subdivision 3.
93.28EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

93.29    Sec. 9. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
93.30    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of
93.31the tax statements. The commissioner of revenue shall prescribe the form of the property
93.32tax statement and its contents. The tax statement must not state or imply that property tax
94.1credits are paid by the state of Minnesota. The statement must contain a tabulated statement
94.2of the dollar amount due to each taxing authority and the amount of the state tax from the
94.3parcel of real property for which a particular tax statement is prepared. The dollar amounts
94.4attributable to the county, the state tax, the voter approved school tax, the other local school
94.5tax, the township or municipality, and the total of the metropolitan special taxing districts
94.6as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
94.7amounts due all other special taxing districts, if any, may be aggregated except that any
94.8levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
94.9Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
94.10under the appropriate county's levy. If the county levy under this paragraph includes an
94.11amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
94.12the amount attributable for that purpose must be separately stated from the remaining county
94.13levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
94.14an amount for public library service under section 134.07, the amount attributable for that
94.15purpose may be separated from the remaining county levy amount. The amount of the tax
94.16on homesteads qualifying under the senior citizens' property tax deferral program under
94.17chapter 290B is the total amount of property tax before subtraction of the deferred property
94.18tax amount. The amount of the tax on contamination value imposed under sections 270.91
94.19to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
94.20amount of any special assessments, may be rounded to the nearest even whole dollar. For
94.21purposes of this section whole odd-numbered dollars may be adjusted to the next higher
94.22even-numbered dollar. The amount of market value excluded under section 273.11,
94.23subdivision 16 , if any, must also be listed on the tax statement.
94.24    (b) The property tax statements for manufactured homes and sectional structures taxed
94.25as personal property shall contain the same information that is required on the tax statements
94.26for real property.
94.27    (c) Real and personal property tax statements must contain the following information
94.28in the order given in this paragraph. The information must contain the current year tax
94.29information in the right column with the corresponding information for the previous year
94.30in a column on the left:
94.31    (1) the property's estimated market value under section 273.11, subdivision 1;
94.32    (2) the property's homestead market value exclusion under section 273.13, subdivision
94.3335;
94.34    (3) the property's taxable market value under section 272.03, subdivision 15;
95.1    (4) the property's gross tax, before credits;
95.2    (5) for homestead agricultural properties, the credit credits under section sections
95.3273.1384 and 273.1387 ;
95.4    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
95.5273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
95.6received under section 273.135 must be separately stated and identified as "taconite tax
95.7relief"; and
95.8    (7) the net tax payable in the manner required in paragraph (a).
95.9    (d) If the county uses envelopes for mailing property tax statements and if the county
95.10agrees, a taxing district may include a notice with the property tax statement notifying
95.11taxpayers when the taxing district will begin its budget deliberations for the current year,
95.12and encouraging taxpayers to attend the hearings. If the county allows notices to be included
95.13in the envelope containing the property tax statement, and if more than one taxing district
95.14relative to a given property decides to include a notice with the tax statement, the county
95.15treasurer or auditor must coordinate the process and may combine the information on a
95.16single announcement.
95.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

95.18    Sec. 10. Minnesota Statutes 2016, section 290A.03, subdivision 11, is amended to read:
95.19    Subd. 11. Rent constituting property taxes. (a) "Rent constituting property taxes"
95.20means 17 percent a percentage of the gross rent actually paid in cash, or its equivalent, or
95.21the portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the
95.22right of occupancy of the claimant's Minnesota homestead in the calendar year, and which
95.23rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
95.24chapter by the claimant.
95.25(b) The percentage in paragraph (a) is set by major geographic regions as follows:
95.26(1) for the city of Minneapolis, 16.5 percent;
95.27(2) for the city of St. Paul, 14 percent;
95.28(3) for the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis;
95.29and Ramsey, excluding the city of St. Paul, 15 percent; and
95.30(4) for the remainder of the state, 14 percent.
96.1EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017
96.2and following years.

96.3    Sec. 11. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
96.4    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
96.5exclusive of special assessments, penalties, and interest payable on a claimant's homestead
96.6after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
96.7and any other state paid property tax credits in any calendar year, and after any refund
96.8claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
96.9year that the property tax is payable. In the case of a claimant who makes ground lease
96.10payments, "property taxes payable" includes the amount of the payments directly attributable
96.11to the property taxes assessed against the parcel on which the house is located. No
96.12apportionment or reduction of the "property taxes payable" shall be required for the use of
96.13a portion of the claimant's homestead for a business purpose if the claimant does not deduct
96.14any business depreciation expenses for the use of a portion of the homestead in the
96.15determination of federal adjusted gross income. For homesteads which are manufactured
96.16homes as defined in section 273.125, subdivision 8, and for homesteads which are park
96.17trailers taxed as manufactured homes under section 168.012, subdivision 9, "property taxes
96.18payable" shall also include 17 percent a percentage of the gross rent paid in the preceding
96.19year for the site on which the homestead is located. The percentage equals the percentage
96.20set under subdivision 11 for the geographic region in which the homestead is located. When
96.21a homestead is owned by two or more persons as joint tenants or tenants in common, such
96.22tenants shall determine between them which tenant may claim the property taxes payable
96.23on the homestead. If they are unable to agree, the matter shall be referred to the commissioner
96.24of revenue whose decision shall be final. Property taxes are considered payable in the year
96.25prescribed by law for payment of the taxes.
96.26In the case of a claim relating to "property taxes payable," the claimant must have owned
96.27and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
96.28property must have been classified as homestead property pursuant to section 273.124, on
96.29or before December 15 of the assessment year to which the "property taxes payable" relate;
96.30or (ii) the claimant must provide documentation from the local assessor that application for
96.31homestead classification has been made on or before December 15 of the year in which the
96.32"property taxes payable" were payable and that the assessor has approved the application.
96.33EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017
96.34and following years.

97.1    Sec. 12. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision
97.2to read:
97.3    Subd. 20. Additional border city allocations. (a) In addition to the tax reductions
97.4authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax
97.5reductions to border city enterprise zones in cities located on the western border of the state.
97.6The commissioner shall allocate this amount among cities on a per capita basis. Allocations
97.7under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
97.8and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in
97.9the enterprise zone, but only if the municipality determines that the granting of the tax
97.10reduction or offset is necessary to retain a business within or attract a business to the zone.
97.11(b) The allocations under this subdivision do not cancel or expire, but remain available
97.12until used by the city.

97.13    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:
97.14    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than
97.1510,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
97.16percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus
97.17(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
97.18    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
97.19revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
97.20percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
97.21decline; plus (5) the sparsity adjustment.
97.22    (c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
97.23410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment.
97.24The city revenue need for a city under this paragraph shall not exceed 630 plus the city's
97.25sparsity adjustment.
97.26    (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
97.27need" equals (1) the transition factor times the city's revenue need calculated in paragraph
97.28(b); plus (2) 630 times the difference between one and the transition factor. For a city with
97.29a population of at least 10,000 but less than 10,500, the "city revenue need" equals (1) the
97.30transition factor times the city's revenue need calculated in paragraph (a); plus (2) the city's
97.31revenue need calculated under the formula in paragraph (b) times the difference between
97.32one and the transition factor. For purposes of this paragraph "transition factor" is 0.2 percent
98.1times the amount that the city's population exceeds the minimum threshold in either of the
98.2first two sentences.
98.3    (e) The city revenue need cannot be less than zero.
98.4    (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as
98.5determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
98.6deflator for government consumption expenditures and gross investment for state and local
98.7governments as prepared by the United States Department of Commerce, for the most
98.8recently available year to the 2013 implicit price deflator for state and local government
98.9purchases.
98.10EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
98.11and thereafter.

98.12    Sec. 14. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read:
98.13    Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the
98.14sparsity adjustment is 100 for any city with an average population density less than 150 per
98.15square mile, according to the most recent federal census, and. For a city with a population
98.16less than 10,000, the sparsity adjustment is 200 for any city with an average population
98.17density less than 30 per square mile, according to the most recent federal census. The sparsity
98.18adjustment is zero for all other cities.
98.19EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
98.20and thereafter.

98.21    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
98.22    Subd. 8. City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula
98.23aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product
98.24of (i) the difference between its unmet need and its formula certified aid in the previous
98.25year before any aid adjustment under subdivision 13, and (ii) the aid gap percentage.
98.26    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
98.27year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
98.28its formula aid is adjusted to equal its unmet need.
98.29    (c) (b) No city may have a formula aid amount less than zero. The aid gap percentage
98.30must be the same for all cities subject to paragraph (a).
99.1    (d) (c) The applicable aid gap percentage must be calculated by the Department of
99.2Revenue so that the total of the aid under subdivision 9 equals the total amount available
99.3for aid under section 477A.03. The aid gap percentage must be the same for all cities subject
99.4to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
99.5shall be the most recently available data as of January 1 in the year in which the aid is
99.6calculated.
99.7EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
99.8and thereafter.

99.9    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:
99.10    Subd. 9. City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city
99.11if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
99.12is less than its current unmet need, the city shall receive an aid distribution equal to the sum
99.13of (1) its certified aid in the previous year before any aid adjustment under subdivision 13,
99.14(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision
99.1513.
99.16    (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid
99.17adjustment under subdivision 13 for the previous year is equal to or greater than its current
99.18unmet need, the total aid for a city must not be less than is equal to the greater of (1) its
99.19unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified
99.20to receive in the previous year minus the lesser of $10 multiplied by its population, or five
99.21percent of its net levy in the year prior to the aid distribution. No city may have a total aid
99.22amount less than zero.
99.23EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
99.24and thereafter.

99.25    Sec. 17. [477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR
99.26OR EXPO.
99.27If a county, statutory or home rule charter city, or town makes a payment or contribution
99.28to Expo2023 or any similar organization with the mission of advocating, promoting, or
99.29running a world fair or expo in the state of Minnesota in any year, it must report that amount
99.30to the commissioner by January 15 of the year following the year in which the payment or
99.31contribution is made. The commissioner shall reduce the aid paid to a county, city, or town
99.32under section 477A.014 from the amount certified to the county under section 477A.0124;
99.33to the city under section 477A.013, subdivision 9; or to the town under section 477A.013,
100.1subdivision 1, in the calendar year following the year in which the payment or contribution
100.2was made. The reduction is equal to the amount of the payment or contribution, but the aid
100.3paid to any county, city, or town may not be less than zero. Any savings in aid payments
100.4under this section shall stay in the general fund and shall not be redistributed to other
100.5counties, cities, or towns.
100.6EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
100.7and thereafter.

100.8    Sec. 18. [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED
100.9DIVERSION PROGRAM.
100.10    Subdivision 1. Penalty for operating an unauthorized diversion program.
100.11Notwithstanding any other law to the contrary, a county or city that operated a pretrial
100.12diversion program that a court determines was not authorized under section 169.999 or
100.13another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by
100.14the amount of fees paid by participants into the program for the years in which the program
100.15operated. A court shall report any order that enjoins a county or city from operating a pretrial
100.16diversion program to the commissioner as required under subdivision 2. The commissioner
100.17shall, with the assistance of the state auditor, determine the amount of fees collected under
100.18the diversion program and reduce the county program aid paid to a county or the local
100.19government aid paid to a city by this amount beginning with the first aid payment made
100.20after the reduction amount is determined. No aid payment may be less than zero but the
100.21amount of the reduction that cannot be made out of that payment shall be applied to future
100.22payments until the total amount has been deducted.
100.23    Subd. 2. Court challenge to authority to operate a pretrial diversion program. Any
100.24taxpayer may challenge a city or county operation of a pretrial diversion program by filing
100.25a declaratory judgment action or seeking other appropriate relief in the district court for the
100.26county where the city is located or in any other court of competent jurisdiction. If the court
100.27finds that the county or city has exceeded its authority under law in operating the pretrial
100.28diversion program, the court must transmit a copy of the court order to the commissioner
100.29of revenue.
100.30EFFECTIVE DATE.This section is effective the day following final enactment and
100.31applies beginning with the second aid payments under Minnesota Statutes, section 477A.015
100.32in calendar year 2017.

101.1    Sec. 19. ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN
101.22017.
101.3(a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
101.4of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for aids payable
101.5in 2016 if the following conditions are met:
101.6(1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
101.7payable in 2017, is less than its certified aid for aids payable in 2016; and
101.8(2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
101.9payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
101.10subdivision 34, for aids payable in 2017.
101.11(b) Any adjustment under this section shall be treated as an aid correction under
101.12Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
101.13section shall be used as an affected city's 2017 certified aid amount when calculating its
101.14formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable in
101.152018.
101.16EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017
101.17and 2018.

101.18    Sec. 20. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
101.19For a city that incorporated on October 13, 2015, and first qualifies for aid under
101.20Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid
101.21for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser of (1)
101.2225 percent of its certified levy for taxes payable in 2016, or (2) 50 percent of its unmet need
101.23as defined in Minnesota Statutes, section 477A.011, subdivision 43.
101.24EFFECTIVE DATE.This section is effective for aids payable in 2018.

101.25    Sec. 21. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
101.26Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
101.27shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes,
101.28section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
101.293, provided that the state auditor certifies to the commissioner of revenue that it received
101.30audited financial statements from the city for calendar year 2012 by December 31, 2013.
101.31The commissioner of revenue shall make a payment of $37,473.50 with the first payment
102.1of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the
102.2general fund to the commissioner of revenue in fiscal year 2018 to make this payment.
102.3EFFECTIVE DATE.This section is effective the day following final enactment.

102.4    Sec. 22. 2014 AID PENALTY FORGIVENESS.
102.5(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of
102.6Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
102.7that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that
102.8the state auditor certifies to the commissioner of revenue that the city complied with all
102.9reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
102.10calendar years 2013 and 2014 by June 1, 2015.
102.11(b) The commissioner of revenue shall make payment to each city no later than July 20,
102.122017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the
102.13commissioner of revenue to make the payments under this section.
102.14EFFECTIVE DATE.This section is effective the day following final enactment.

102.15    Sec. 23. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
102.16    Subdivision 1. Abatements authorized. (a) Notwithstanding Minnesota Statutes, section
102.17375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an
102.18abatement of local property taxes for taxes payable in 2017, provided that:
102.19(1) the property is classified as 1c, 3a (excluding utility real and personal property),
102.204c(1), 4c(10), or 4c(11);
102.21(2) on or before December 31, 2017, the taxpayer submits a written application to the
102.22county auditor in the county in which abatement is sought; and
102.23(3) the taxpayer meets qualification requirements established in subdivision 3.
102.24    Subd. 2. Appeals. An appeal may not be taken to the Tax Court from any order of the
102.25county board made pursuant to the exercise of the discretionary authority granted in this
102.26section.
102.27    Subd. 3. Qualification requirements. To qualify for abatements under this section, a
102.28taxpayer must:
102.29(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
103.1(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
103.2Roosevelt;
103.3(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
103.4Malmo, or township of Lakeside; or
103.5(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
103.6East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
103.7(2) document a reduction in gross receipts of five percent or greater between two
103.8successive calendar years beginning in 2010 or later; and
103.9(3) be a business in one of the following industries, as defined within the North American
103.10Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
103.11food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
103.12historical sites, health and personal care, gas station, general merchandise, business and
103.13professional membership, movies, or nonstore retailer, as determined by the county in
103.14consultation with the commissioner of employment and economic development.
103.15    Subd. 4. State general levy in relief area. The counties of Aitkin, Crow Wing, and
103.16Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
103.17(excluding utility real and personal property), or 4c(1) that is located in the area described
103.18by subdivision 3, clause (1), for taxes payable in 2017.
103.19    Subd. 5. Certification and transfer of funds. (a) By February 1, 2018, a county granting
103.20a refund as required under subdivision 4 must certify the total amount of state general tax
103.21refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
103.22Lacs County must transfer an amount equal to the amount certified under this paragraph to
103.23the county making the certification.
103.24(b) By February 1, 2018, a county that has received an application for an abatement
103.25authorized under subdivision 1 must certify to Mille Lacs County the total amount of
103.26abatements for which applications have been received and approved. By March 1, 2018,
103.27Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
103.28to the county making the certification. By April 30, 2018, the county must issue refunds of
103.29local property tax amounts to qualified taxpayers.
103.30    Subd. 6. Commissioner of revenue; appropriation. An amount sufficient to make the
103.31transfers required under subdivision 5 in fiscal year 2018 is appropriated from the general
103.32fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
103.33appropriation.
104.1    Subd. 7. Report to legislature. The commissioner of revenue must make a written report
104.2to the chairs and ranking minority members of the legislative committees with jurisdiction
104.3over taxes stating the amount of abatements and refunds given under this section by taxing
104.4jurisdictions by February 1, 2019. The counties must provide the commissioner with the
104.5information necessary to make the report.
104.6    Subd. 8. Refund eligibility. Only a taxpayer making all payments of property taxes for
104.7taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.
104.8EFFECTIVE DATE.This section is effective the day following final enactment.

104.9    Sec. 24. SUPPLEMENTAL PAYMENTS FOR OTHER NATURAL RESOURCES
104.10LAND.
104.11    Subdivision 1. Supplemental payments. For aids payable in calendar years 2017 and
104.122018 only, each county must receive a supplemental aid payment equal to 50 cents per acre
104.13for other natural resources land, as defined in Minnesota Statutes, section 477A.11,
104.14subdivision 4, located in the county. The payment shall be made at the same time as payments
104.15under Minnesota Statutes, section 477A.13, and the counties shall distribute this payment
104.16as if it was part of the aids subject to the general distribution for that year under Minnesota
104.17Statutes, section 477A.014, subdivision 1.
104.18    Subd. 2. Appropriation. The amount necessary to make the payments under subdivision
104.191 in each year is appropriated from the general fund to the commissioner of revenue for
104.20fiscal years 2018 and 2019 only. The appropriations under this section are onetime and not
104.21added to the base budget.
104.22EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017
104.23and 2018 only.

104.24    Sec. 25. 2017 HOMESTEAD CREDIT REFUND.
104.25(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the
104.26homestead credit refund allowed under Minnesota Statutes, section 290A.04, subdivision
104.272, so as to increase the total amount of refunds based on taxes payable in 2018. The
104.28commissioner must adjust the schedule by proportionately decreasing the percent of tax
104.29above the income threshold paid by the claimant, or the "co-payment percentage," for each
104.30income bracket in the schedule so that the increase in refunds projected to be paid based on
104.31taxes payable in 2018 equals $58,000,000.
105.1(b) The amount necessary to pay the additional amounts required under this section is
105.2appropriated from the general fund to the commissioner of revenue in fiscal year 2019.
105.3EFFECTIVE DATE.This section is effective for refunds based on taxes payable in
105.42018 only.

105.5    Sec. 26. 2017 RENTER PROPERTY TAX REFUND.
105.6(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the
105.7property tax refund for renters allowed under Minnesota Statutes, section 290A.04,
105.8subdivision 2a, so as to increase the total amount of refunds based on taxes payable in 2018.
105.9The commissioner must adjust the schedule by:
105.10(1) first proportionately decreasing the percent of income, or the "threshold percentage,"
105.11for each income bracket in the schedule so that the increase in refunds projected to be paid
105.12based on rent paid in 2017 equals $21,000,000; and
105.13(2) second proportionately decreasing the percent of tax above the income threshold
105.14paid by the claimant, or the "co-payment percentage," for each income bracket in the schedule
105.15so that the total increase in refunds projected to be paid based on rent paid in 2017 under
105.16this clause and clause (1) equals $42,000,000.
105.17(b) The amount necessary to pay the additional amounts required under this section is
105.18appropriated from the general fund to the commissioner of revenue in fiscal year 2019.
105.19EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017
105.20only.

105.21    Sec. 27. REPEALER.
105.22Minnesota Statutes 2016, section 477A.085, is repealed.
105.23EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

105.24ARTICLE 4

105.25IN PERPETUITY PAYMENTS ON LAND PURCHASES

105.26    Section 1. [11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS.
105.27    Subdivision 1. Establishment. The State Board of Investment, when requested by a
105.28county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision 2,
105.29shall invest the funds deposited by the commissioner of revenue, acting as an agent on the
105.30board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2, in a
106.1special account for that purpose in the combined investment funds established in section
106.211A.14, subject to the policy and procedures of the State Board of Investment. Use of the
106.3funds is restricted to payments to the commissioner of revenue, acting as an agent on behalf
106.4of the counties, for distributions to counties under sections 97A.056, subdivision 1b, and
106.5116P.045, subdivision 2.
106.6    Subd. 2. Account maintenance and investment. The commissioner of revenue may
106.7deposit money into the account on behalf of the counties and may withdraw money from
106.8the account to make distributions to the counties under sections 97A.056, subdivision 1b,
106.9and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment
106.10under each section each year for all counties eligible for a payment in that year. The
106.11commissioner shall make one withdrawal annually at a time negotiated with the executive
106.12director of the State Board of Investment, but no later than November 15, to cover
106.13distributions to counties under section 477A.30, up to the limit allowed under that section.
106.14The transactions must be in the manner required by the executive director of the State Board
106.15of Investment. Investment earnings must be credited to the account.
106.16EFFECTIVE DATE.This section is effective January 1, 2018.

106.17    Sec. 2. Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read:
106.18    Subd. 1a. Definitions. For the purpose of (a) The definitions in this subdivision apply
106.19to this section and appropriations from the outdoor heritage fund,.
106.20(b) "Land acquisition costs" means acquisition coordination costs, costs of engineering
106.21services, appraisal fees, attorney fees, taxes, assessments required at the time of purchase,
106.22onetime trust fund payments under subdivision 1b, and recording fees.
106.23(c) "Land-related property taxes" means property taxes collected on behalf of local
106.24governments providing land-related services.
106.25(d) "Local governments providing land-related services" means counties, townships,
106.26home rule charter and statutory cities, watershed districts under chapter 103D, sanitary
106.27districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts under
106.28sections 115.61 to 115.67.
106.29(e) "Recipient" means the entity responsible for deliverables financed by the outdoor
106.30heritage fund.
106.31(f) "Total payment for the land" means the total price paid for the land including land
106.32acquisition costs, but excluding any in-kind services provided by nongovernmental entities
106.33at no cost to the state.
107.1EFFECTIVE DATE.This section is effective July 1, 2017.

107.2    Sec. 3. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
107.3read:
107.4    Subd. 1b. Outdoor heritage trust fund payment account; trust fund payments. (a)
107.5An outdoor heritage trust fund account is created in the special revenue fund. The State
107.6Board of Investment must ensure the account is invested under section 11A.24. The
107.7commissioner of management and budget must credit to the account all money appropriated
107.8to the account and all money earned by the account. The principal of the account and any
107.9unexpended earnings must be invested and reinvested by the State Board of Investment.
107.10Nothing in this section limits the source of contributions to the account. Money in the
107.11account must be used only for the purposes of this subdivision.
107.12(b) State land acquired in fee simple in whole or in part with money appropriated from
107.13the outdoor heritage fund is eligible for a onetime trust fund payment as provided under
107.14this subdivision. The percentage of the total acres acquired in any purchase that is eligible
107.15for a trust fund payment under this subdivision is equal to the percentage of the total payment
107.16for the land funded from outdoor heritage fund revenues. If the percentage of the total
107.17payment for the land from the outdoor heritage fund is ten percent or less, the parcel is
107.18ineligible for a payment under this subdivision; if the percentage is 90 percent or more, the
107.19entire parcel is eligible for the payment under this subdivision. The commissioner of natural
107.20resources must certify to the commissioner of revenue and the county in which land eligible
107.21for a payment under this section is purchased the total number of acres purchased, the total
107.22payment for the land, and the amount of outdoor heritage fund revenues used for the purchase.
107.23The trust fund payment is equal to 30 times the land-related property taxes assessed on the
107.24eligible portion of the land in the year prior to the year in which the land is acquired. If the
107.25land was acquired from a private party that was exempt from paying property taxes, the
107.26payments must be based on 30 times the property taxes assessed on comparable land in the
107.27year prior to the year in which the land is acquired. By September 1 each year, the county
107.28in which the land is acquired must provide the commissioner of revenue with information
107.29necessary in a form determined by the commissioner of revenue to make this determination
107.30for all lands acquired for the 12-month period ending on June 30 of that year. The
107.31commissioner of revenue must make a trust fund payment on behalf of each county on the
107.32same date as the first payment under section 273.1384, subdivision 4, each year for all land
107.33acquired in that county in the 12-month period ending on June 30 of that year to the State
107.34Board of Investment as required under this paragraph. The money so deposited is money
107.35paid to the counties and may only be withdrawn for the purposes allowed under section
108.1477A.30. The commissioner of revenue must inform each county by October 15 each year
108.2of the amount deposited on the county's behalf with the State Board of Investment under
108.3this subdivision.
108.4(c) The amount necessary to make the payments required under this subdivision is
108.5annually appropriated from the outdoor heritage trust fund payment account to the
108.6commissioner of revenue for deposit in the account for county joint trust fund payments in
108.7section 11A.237.
108.8(d) To receive a trust fund payment under this subdivision, a county board must enter
108.9into an agreement with the State Board of Investment to allow the commissioner of revenue
108.10to make deposits and withdrawals on behalf of the county into and out of the county joint
108.11trust fund account under section 11A.237.
108.12(e) The portion of land receiving a trust fund payment under this subdivision is not
108.13eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution of
108.14withdrawals from the county joint trust fund account under section 477A.30.
108.15(f) If the land for which a payment under this subdivision is made is subsequently sold
108.16to another entity and is no longer available for the use for which it was purchased, the
108.17original amount of the payment for that land under paragraph (b) must be withdrawn by the
108.18commissioner of revenue from the account established under section 11A.237 and returned
108.19to the outdoor heritage fund. If only a portion of the land is sold and no longer available for
108.20the use for which it was purchased, the amount of the original trust fund payment returned
108.21is reduced proportionately based on the portion of the original purchase that is sold. The
108.22holder of the land must inform the commissioner of revenue and the county in which the
108.23land is sold of the sale and provide them with any information necessary to calculate the
108.24required withdrawal from the account. The withdrawal is made along with withdrawals
108.25under section 477A.30 in the calendar year after the year in which the land is sold.
108.26EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
108.27with money appropriated on or after that date.

108.28    Sec. 4. Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read:
108.29    Subd. 3. Council recommendations. (a) The council shall make recommendations to
108.30the legislature on appropriations of money from the outdoor heritage fund that are consistent
108.31with the Constitution and state law and that will achieve the outcomes of existing natural
108.32resource plans, including, but not limited to, the Minnesota Statewide Conservation and
108.33Preservation Plan, that directly relate to the restoration, protection, and enhancement of
109.1wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest
109.2fragmentation, encourage forest consolidation, and expand restored native prairie. In making
109.3recommendations, the council shall consider a range of options that would best restore,
109.4protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife.
109.5The council recommendations each year on appropriation of money from the outdoor heritage
109.6fund must include amounts adequate to make the required transfers to the outdoor heritage
109.7trust fund payment account according to subdivision 1b. The council's recommendations
109.8shall be submitted no later than January 15 each year. The council shall present its
109.9recommendations to the senate and house of representatives committees with jurisdiction
109.10over the environment and natural resources budget by February 15 in odd-numbered years,
109.11and within the first four weeks of the legislative session in even-numbered years. The
109.12council's budget recommendations to the legislature shall be separate from the Department
109.13of Natural Resource's budget recommendations.
109.14    (b) To encourage and support local conservation efforts, the council shall establish a
109.15conservation partners program. Local, regional, state, or national organizations may apply
109.16for matching grants for restoration, protection, and enhancement of wetlands, prairies,
109.17forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
109.18encouragement of forest consolidation, and expansion of restored native prairie.
109.19    (c) The council may work with the Clean Water Council to identify projects that are
109.20consistent with both the purpose of the outdoor heritage fund and the purpose of the clean
109.21water fund.
109.22    (d) The council may make recommendations to the Legislative-Citizen Commission on
109.23Minnesota Resources on scientific research that will assist in restoring, protecting, and
109.24enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
109.25forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.
109.26    (e) Recommendations of the council, including approval of recommendations for the
109.27outdoor heritage fund, require an affirmative vote of at least nine members of the council.
109.28(f) The council may work with the Clean Water Council, the Legislative-Citizen
109.29Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
109.30water conservation districts, and experts from Minnesota State Colleges and Universities
109.31and the University of Minnesota in developing the council's recommendations.
109.32(g) The council shall develop and implement a process that ensures that citizens and
109.33potential recipients of funds are included throughout the process, including the development
109.34and finalization of the council's recommendations. The process must include a fair, equitable,
110.1and thorough process for reviewing requests for funding and a clear and easily understood
110.2process for ranking projects.
110.3(h) The council shall use the regions of the state based upon the ecological sections and
110.4subsections developed by the Department of Natural Resources and establish objectives for
110.5each region and subregion to achieve the purposes of the fund outlined in the state
110.6constitution.
110.7(i) The council shall develop and submit to the Legislative Coordinating Commission
110.8plans for the first ten years of funding, and a framework for 25 years of funding, consistent
110.9with statutory and constitutional requirements. The council may use existing plans from
110.10other legislative, state, and federal sources, as applicable.
110.11EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
110.12with money appropriated on or after that date.

110.13    Sec. 5. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
110.14read:
110.15    Subd. 15a. State acquisition of land; restrictions. The state may not use money from
110.16the outdoor heritage fund to acquire in fee simple in whole or in part any land subject to
110.17property taxes or any land owned by a nonprofit organization that was subject to property
110.18taxes before the land's acquisition by the nonprofit organization if (1) subdivision 1b is void,
110.19or (2) sufficient funds to cover the onetime trust fund payment required under subdivision
110.201b have not been appropriated or are not available.
110.21EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
110.22with money appropriated on or after that date.

110.23    Sec. 6. Minnesota Statutes 2016, section 116P.02, subdivision 1, is amended to read:
110.24    Subdivision 1. Applicability. The definitions in this section apply to this chapter, except
110.25that the definition in subdivision 6 does not apply to section 116P.045.
110.26EFFECTIVE DATE.This section is effective July 1, 2017.

110.27    Sec. 7. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
110.28read:
110.29    Subd. 4a. Land acquisition costs. "Land acquisition costs" means acquisition
110.30coordination costs, costs of engineering services, appraisal fees, attorney fees, taxes,
111.1assessments required at the time of purchase, payments under section 116P.045, and recording
111.2fees.
111.3EFFECTIVE DATE.This section is effective July 1, 2017.

111.4    Sec. 8. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
111.5read:
111.6    Subd. 4b. Land-related property taxes. "Land-related property taxes" means property
111.7taxes collected on behalf of local governments providing land-related services.
111.8EFFECTIVE DATE.This section is effective July 1, 2017.

111.9    Sec. 9. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
111.10read:
111.11    Subd. 4c. Local governments providing land-related services. "Local governments
111.12providing land-related services" means counties, townships, home rule charter and statutory
111.13cities, watershed districts under chapter 103D, sanitary districts under sections 442A.01 to
111.14442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67.
111.15EFFECTIVE DATE.This section is effective July 1, 2017.

111.16    Sec. 10. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision
111.17to read:
111.18    Subd. 4d. Total payment for the land. "Total payment for the land" means the total
111.19price paid for the land including land acquisition costs, but excluding any in-kind services
111.20provided by nongovernmental entities at no cost to the state.
111.21EFFECTIVE DATE.This section is effective July 1, 2017.

111.22    Sec. 11. [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND
111.23PAYMENT ACCOUNT.
111.24    Subdivision 1. Account created. An environment and natural resources trust fund
111.25payment account is created in the special revenue fund. The State Board of Investment must
111.26ensure the account is invested under section 11A.24. The commissioner of management
111.27and budget must credit to the account all money appropriated to the account and all money
111.28earned by the account. The principal of the account and any unexpended earnings must be
111.29invested and reinvested by the State Board of Investment. Nothing in this section limits the
112.1source of contributions to the account. Money in the account must be used only for the
112.2purposes of this section.
112.3    Subd. 2. Trust fund payment; appropriation. (a) State land acquired in fee simple in
112.4whole or in part with money appropriated from the environment and natural resources trust
112.5fund is eligible for a onetime trust fund payment as provided under this subdivision. The
112.6percentage of the total acres acquired in any purchase that is eligible for a trust fund payment
112.7under this section is equal to the percentage of the total payment for the land funded from
112.8environment and natural resources trust fund revenues. If the percentage of the total payment
112.9for the land from the environment and natural resources trust fund is ten percent or less, the
112.10parcel is ineligible for a payment under this section; if the percentage is 90 percent or more,
112.11the entire parcel is eligible for the payment under this section. The commissioner of natural
112.12resources must certify to the commissioner of revenue and the county in which land eligible
112.13for a payment under this section is purchased the total number of acres purchased, the total
112.14payment for the land, and the amount of environmental and natural resources trust fund
112.15revenues used for the purchase. The trust fund payment is equal to 30 times the land-related
112.16property taxes assessed on the eligible portion of the land in the year prior to the year in
112.17which the land is acquired. If the land was acquired from a private party that was exempt
112.18from paying property taxes, the payments must be based on 30 times the property taxes
112.19assessed on comparable land in the year prior to the year in which the land is acquired. By
112.20September 1 each year, the county in which the land is acquired must provide the
112.21commissioner of revenue with information necessary in a form determined by the
112.22commissioner of revenue to make this determination for all lands acquired for the 12-month
112.23period ending on June 30 of that year. The commissioner of revenue must make a trust fund
112.24payment on behalf of each county on the same date as the first payment under section
112.25273.1384, subdivision 4, each year for all land acquired in that county in the 12-month
112.26period ending on June 30 of that year to the State Board of Investment as required under
112.27this section. The money so deposited is money paid to the counties and may only be
112.28withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue
112.29must inform each county by October 15 each year of the amount deposited on the county's
112.30behalf with the State Board of Investment under this subdivision.
112.31(b) The amount necessary to make the payments required under this subdivision is
112.32annually appropriated from the environment and natural resources trust fund payment
112.33account to the commissioner of revenue for deposit in the account for county joint trust
112.34fund payments in section 11A.237.
113.1(c) If the land for which a payment under this subdivision is made is subsequently sold
113.2to another entity and is no longer available for the use for which it was purchased, the
113.3original amount of the payment for that land under paragraph (a) must be withdrawn by the
113.4commissioner of revenue from the account established under section 11A.237 and returned
113.5to the environment and natural resources trust fund. If only a portion of the land is sold and
113.6no longer available for the use for which it was purchased, the amount of the original trust
113.7fund payment returned is reduced proportionately based on the portion of the original
113.8purchase that is sold. The holder of the land must inform the commissioner of revenue and
113.9the county in which the land is sold of the sale and provide them with any information
113.10necessary to calculate the required withdrawal from the account. The withdrawal is made
113.11along with withdrawals under section 477A.30 in the calendar year after the year in which
113.12the land is sold.
113.13    Subd. 3. County requirements. To receive a trust fund payment under this section, a
113.14county board must enter into an agreement with the State Board of Investment to allow the
113.15commissioner of revenue to make deposits and withdrawals on behalf of the county into
113.16and out of the county joint trust fund account under section 11A.237.
113.17    Subd. 4. Ineligible for other payments. Land receiving a trust fund payment under this
113.18section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible for
113.19distribution of withdrawals from the county joint trust fund account under section 477A.30.
113.20    Subd. 5. State acquisition of land; restrictions. The state may not use money from the
113.21environment and natural resources trust fund to acquire in fee simple in whole or in part
113.22any land subject to property taxes or any land owned by a nonprofit organization that was
113.23subject to property taxes before the land's acquisition by the nonprofit organization if (1)
113.24subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment required
113.25under subdivision 2 have not been appropriated or are not available.
113.26EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
113.27with money appropriated on or after that date.

113.28    Sec. 12. Minnesota Statutes 2016, section 116P.08, subdivision 1, is amended to read:
113.29    Subdivision 1. Expenditures. Money in the trust fund may be spent only for:
113.30(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;
113.31(2) research that contributes to increasing the effectiveness of protecting or managing
113.32the state's environment or natural resources;
114.1(3) collection and analysis of information that assists in developing the state's
114.2environmental and natural resources policies;
114.3(4) enhancement of public education, awareness, and understanding necessary for the
114.4protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
114.5wildlife, and other natural resources;
114.6(5) capital projects for the preservation and protection of unique natural resources;
114.7(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
114.8resources that otherwise may be substantially impaired or destroyed in any area of the state;
114.9(7) administrative and investment expenses incurred by the State Board of Investment
114.10in investing deposits to the trust fund; and
114.11(8) administrative expenses subject to the limits in section 116P.09.; and
114.12(9) payments to the environment and natural resources trust fund payment account as
114.13required in section 116P.045.
114.14EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
114.15with money appropriated on or after that date.

114.16    Sec. 13. Minnesota Statutes 2016, section 116P.08, subdivision 4, is amended to read:
114.17    Subd. 4. Legislative recommendations. (a) Funding may be provided only for those
114.18projects that meet the categories established in subdivision 1.
114.19(b) The commission must recommend an annual or biennial legislative bill to make
114.20appropriations from the trust fund for the purposes provided in subdivision 1. The
114.21recommendations must be submitted to the governor for inclusion in the biennial budget
114.22and supplemental budget submitted to the legislature.
114.23(c) The commission may recommend regional block grants for a portion of trust fund
114.24expenditures to partner with existing regional organizations that have strong citizen
114.25involvement, to address unique local needs and capacity, and to leverage all available funding
114.26sources for projects.
114.27(d) The commission may recommend the establishment of an emerging issues account
114.28in its legislative bill for funding emerging issues, which come up unexpectedly, but which
114.29still adhere to the commission's strategic plan, to be approved by the governor after initiation
114.30and recommendation by the commission.
115.1(e) The council must recommend an appropriation of money from the environment and
115.2natural resources trust fund adequate to make the required transfers to the environment and
115.3natural resources trust fund payment account according to section 116P.045.
115.4(f) Money in the trust fund may not be spent except under an appropriation by law.
115.5EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
115.6with money appropriated on or after that date.

115.7    Sec. 14. Minnesota Statutes 2016, section 477A.10, is amended to read:
115.8477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.
115.9The purposes of sections 477A.11 to 477A.14 are:
115.10(1) to compensate local units of government for the loss of tax base from state ownership
115.11of land, except land acquired on or after July 1, 2017, receiving trust fund payments from
115.12the outdoor heritage trust fund payment account or the environment and natural resources
115.13trust fund payment account, and the need to provide services for state land;
115.14(2) to address the disproportionate impact of state land ownership on local units of
115.15government with a large proportion of state land; and
115.16(3) to address the need to manage state lands held in trust for the local taxing districts.
115.17EFFECTIVE DATE.This section is effective the day following final enactment.

115.18    Sec. 15. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
115.19to read:
115.20    Subd. 9. Environment and natural resources trust fund lands. Notwithstanding any
115.21other provision of law to the contrary, parcels or portions of parcels of land purchased on
115.22or after July 1, 2017, and eligible for a trust fund payment under section 116P.045 are not
115.23included in the definitions of the lands described in subdivisions 3 to 7 and are excluded
115.24from payments under sections 477A.11 to 477A.14.
115.25EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

115.26    Sec. 16. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
115.27to read:
115.28    Subd. 10. Outdoor heritage lands. Notwithstanding any other provision of law to the
115.29contrary, parcels or portions of parcels of land purchased on or after July 1, 2017, and
115.30eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included
116.1in the definitions of the lands described in subdivisions 3 to 7 and are excluded from
116.2payments under sections 477A.11 to 477A.14.
116.3EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

116.4    Sec. 17. [477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS
116.5AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES
116.6TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS.
116.7    Subdivision 1. Commissioner of revenue; withdrawals and payments. No later than
116.8November 15 each year, the commissioner of revenue shall make a withdrawal on behalf
116.9of all eligible counties from the county joint trust fund account established under section
116.1011A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified by
116.11the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount in that
116.12account as of September 1 of that year as determined by the executive director of the State
116.13Board of Investment. The commissioner shall distribute the certified withdrawal amounts
116.14to each county by November 31. If the amount of the withdrawal is less than the total
116.15certified withdrawal amounts under subdivision 2, the commissioner shall reduce the
116.16distribution to each county proportionately.
116.17    Subd. 2. Certification of needed withdrawal; distribution of funds. (a) Beginning in
116.18calendar year 2018, by September 1 each year, a county for whom a trust fund payment has
116.19been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision
116.202, shall calculate and certify to the commissioner of revenue the amount of trust fund
116.21withdrawals needed under this section. The amount of the withdrawal for each parcel of
116.22land for which a county received a trust fund payment under either provision is as follows:
116.23(1) for the year in which a trust fund payment is made to a county for a parcel of land,
116.24the withdrawal for that parcel is equal to:
116.25(i) the remaining taxes owed to the local governments providing land-related services
116.26for taxes spread that year for a parcel acquired between January 1 and June 30; or
116.27(ii) the amount of taxes paid to the local governments providing land-related services
116.28on the parcel in the previous year if the parcel was acquired before January 1 of the current
116.29year. The county must distribute the amount by December 15 to all local governments
116.30providing land-related services based on the location of the parcel and the local governments'
116.31share of the total tax; and
116.32(2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that would
116.33be owed based on the appraised value of the land and the taxes assessed by local governments
117.1providing land-related services on comparable, privately owned adjacent land. For purposes
117.2of this subdivision, "appraised value" is determined in the manner described in section
117.3477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among the
117.4local governments providing land-related services on the same basis as if the funds were
117.5taxes on the land received in that year. The county treasurer must pay the allocation to all
117.6eligible local governments by December 15 of the year in which the withdrawal is made.
117.7The county's share of the payment must be deposited in the county general fund.
117.8(b) If the distribution to a county under subdivision 1 is less than its total withdrawal
117.9amounts certified under this subdivision, all distributions under paragraph (a) are reduced
117.10proportionately.
117.11(c) The local governments receiving a payment under this section must use the money
117.12to fund land-related services. For purposes of this paragraph, "land-related services" means
117.13services used to restore, enhance, and protect the land and its fish and wildlife habitat and
117.14provide any other public services benefiting the land and users of the land, including access
117.15and services to the public accessing and using the land and direct and indirect capital and
117.16operating costs for (1) roads, bridges, and trails; (2) public safety and emergency response
117.17services; (3) environmental, recreational, and resource development and management; and
117.18(4) similar costs.
117.19(d) For purposes of this subdivision, "local governments providing land-related services"
117.20has the meaning given in section 116P.02, subdivision 4c.
117.21EFFECTIVE DATE.This section is effective January 1, 2018, and applies to land
117.22acquired with money appropriated on or after July 1, 2017.

117.23    Sec. 18. DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR
117.24APPROPRIATIONS MADE FOR FISCAL YEAR 2018.
117.25(a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state
117.26may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase
117.27land without appropriating sufficient funds to cover the onetime trust fund payment required
117.28under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to make
117.29the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for all
117.30fiscal year 2018 appropriations for land purchases must be deposited in the outdoor heritage
117.31trust fund payment account by August 1, 2018, or the restriction on land acquisition under
117.32Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition
117.33authorized with fiscal year 2018 funds that have not yet been acquired.
118.1(b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state may
118.2appropriate money in fiscal year 2018 from the environment and natural resources trust
118.3fund to purchase land without appropriating sufficient funds to cover the onetime trust fund
118.4payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount
118.5necessary to make the payment required under Minnesota Statutes, section 116P.045,
118.6subdivision 2, for all fiscal year 2018 appropriations for land purchases must be deposited
118.7in the environment and natural resources trust fund payment account by August 1, 2018, or
118.8the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision
118.95, applies to any land acquisition authorized with fiscal year 2018 funds that have not yet
118.10been acquired.
118.11EFFECTIVE DATE.This section is effective the day following final enactment.

118.12ARTICLE 5

118.13TAX INCREMENT FINANCING

118.14    Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read:
118.15    Subd. 12. Economic development district. "Economic development district" means a
118.16type of tax increment financing district which consists of any project, or portions of a project,
118.17which the authority finds to be in the public interest because:
118.18(1) it will discourage commerce, industry, or manufacturing from moving their operations
118.19to another state or municipality; or
118.20(2) it will result in increased employment in the state; or
118.21(3) it will result in preservation and enhancement of the tax base of the state; or
118.22(4) it satisfies the requirements of a workforce housing project under section 469.176,
118.23subdivision 4c, paragraph (d).
118.24EFFECTIVE DATE.This section is effective for districts for which the request for
118.25certification was made after June 30, 2017.

118.26    Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read:
118.27    Subd. 3. Municipality approval. (a) A county auditor shall not certify the original net
118.28tax capacity of a tax increment financing district until the tax increment financing plan
118.29proposed for that district has been approved by the municipality in which the district is
118.30located. If an authority that proposes to establish a tax increment financing district and the
118.31municipality are not the same, the authority shall apply to the municipality in which the
119.1district is proposed to be located and shall obtain the approval of its tax increment financing
119.2plan by the municipality before the authority may use tax increment financing. The
119.3municipality shall approve the tax increment financing plan only after a public hearing
119.4thereon after published notice in a newspaper of general circulation in the municipality at
119.5least once not less than ten days nor more than 30 days prior to the date of the hearing. The
119.6published notice must include a map of the area of the district from which increments may
119.7be collected and, if the project area includes additional area, a map of the project area in
119.8which the increments may be expended. The hearing may be held before or after the approval
119.9or creation of the project or it may be held in conjunction with a hearing to approve the
119.10project.
119.11    (b) Before or at the time of approval of the tax increment financing plan, the municipality
119.12shall make the following findings, and shall set forth in writing the reasons and supporting
119.13facts for each determination:
119.14    (1) that the proposed tax increment financing district is a redevelopment district, a
119.15renewal or renovation district, a housing district, a soils condition district, or an economic
119.16development district; if the proposed district is a redevelopment district or a renewal or
119.17renovation district, the reasons and supporting facts for the determination that the district
119.18meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
119.19subdivision 10a, must be documented in writing and retained and made available to the
119.20public by the authority until the district has been terminated;
119.21    (2) that, in the opinion of the municipality:
119.22    (i) the proposed development or redevelopment would not reasonably be expected to
119.23occur solely through private investment within the reasonably foreseeable future; and
119.24    (ii) the increased market value of the site that could reasonably be expected to occur
119.25without the use of tax increment financing would be less than the increase in the market
119.26value estimated to result from the proposed development after subtracting the present value
119.27of the projected tax increments for the maximum duration of the district permitted by the
119.28plan. The requirements of this item do not apply if the district is a housing district;
119.29    (3) that the tax increment financing plan conforms to the general plan for the development
119.30or redevelopment of the municipality as a whole;
119.31    (4) that the tax increment financing plan will afford maximum opportunity, consistent
119.32with the sound needs of the municipality as a whole, for the development or redevelopment
119.33of the project by private enterprise;
120.1    (5) that the municipality elects the method of tax increment computation set forth in
120.2section 469.177, subdivision 3, paragraph (b), if applicable.
120.3    (c) When the municipality and the authority are not the same, the municipality shall
120.4approve or disapprove the tax increment financing plan within 60 days of submission by
120.5the authority. When the municipality and the authority are not the same, the municipality
120.6may not amend or modify a tax increment financing plan except as proposed by the authority
120.7pursuant to subdivision 4. Once approved, the determination of the authority to undertake
120.8the project through the use of tax increment financing and the resolution of the governing
120.9body shall be conclusive of the findings therein and of the public need for the financing.
120.10    (d) For a district that is subject to the requirements of paragraph (b), clause (2), item
120.11(ii), the municipality's statement of reasons and supporting facts must include all of the
120.12following:
120.13    (1) an estimate of the amount by which the market value of the site will increase without
120.14the use of tax increment financing;
120.15    (2) an estimate of the increase in the market value that will result from the development
120.16or redevelopment to be assisted with tax increment financing; and
120.17    (3) the present value of the projected tax increments for the maximum duration of the
120.18district permitted by the tax increment financing plan.
120.19    (e) For purposes of this subdivision, "site" means the parcels on which the development
120.20or redevelopment to be assisted with tax increment financing will be located.
120.21(f) Before or at the time of approval of the tax increment financing plan for a district to
120.22be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph
120.23(d), the municipality shall make the following findings and set forth in writing the reasons
120.24and supporting facts for each determination:
120.25(1) the city is located outside of the metropolitan area, as defined in section 473.121,
120.26subdivision 2;
120.27(2) the average vacancy rate for rental housing located in the municipality and in any
120.28statutory or home rule charter city located within 15 miles or less of the boundaries of the
120.29municipality has been three percent or less for at least the immediately preceding two-year
120.30period;
120.31(3) at least one business located in the municipality or within 15 miles of the municipality
120.32that employs a minimum of 20 full-time equivalent employees in aggregate has provided a
121.1written statement to the municipality indicating that the lack of available rental housing has
121.2impeded the ability of the business to recruit and hire employees; and
121.3(4) the municipality and the development authority intend to use increments from the
121.4district for the development of rental housing to serve employees of businesses located in
121.5the municipality or surrounding area.
121.6EFFECTIVE DATE.This section is effective for districts for which the request for
121.7certification was made after June 30, 2017.

121.8    Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read:
121.9    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
121.10from an economic development district may not be used to provide improvements, loans,
121.11subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting
121.12of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities
121.13(determined on the basis of square footage) are used for a purpose other than:
121.14    (1) the manufacturing or production of tangible personal property, including processing
121.15resulting in the change in condition of the property;
121.16    (2) warehousing, storage, and distribution of tangible personal property, excluding retail
121.17sales;
121.18    (3) research and development related to the activities listed in clause (1) or (2);
121.19    (4) telemarketing if that activity is the exclusive use of the property;
121.20    (5) tourism facilities; or
121.21    (6) space necessary for and related to the activities listed in clauses (1) to (5); or
121.22    (7) a workforce housing project that satisfies the requirements of paragraph (d).
121.23    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
121.24increment from an economic development district may be used to provide improvements,
121.25loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
121.26square feet of any separately owned commercial facility located within the municipal
121.27jurisdiction of a small city, if the revenues derived from increments are spent only to assist
121.28the facility directly or for administrative expenses, the assistance is necessary to develop
121.29the facility, and all of the increments, except those for administrative expenses, are spent
121.30only for activities within the district.
122.1    (c) A city is a small city for purposes of this subdivision if the city was a small city in
122.2the year in which the request for certification was made and applies for the rest of the
122.3duration of the district, regardless of whether the city qualifies or ceases to qualify as a
122.4small city.
122.5(d) A project qualifies as a workforce housing project under this subdivision if:
122.6(1) increments from the district are used exclusively to assist in the acquisition of
122.7property; construction of improvements; and provision of loans or subsidies, grants, interest
122.8rate subsidies, public infrastructure, and related financing costs for rental housing
122.9developments in the municipality; and
122.10(2) the governing body of the municipality made the findings for the project required
122.11by section 469.175, subdivision 3, paragraph (f).
122.12EFFECTIVE DATE.This section is effective for districts for which the request for
122.13certification was made after June 30, 2017.

122.14    Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision
122.15to read:
122.16    Subd. 5. Income limits; Minnesota Housing Finance Agency challenge program.
122.17For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge
122.18program under section 462A.33, the income limits under section 462A.33 are substituted
122.19for the applicable income limits for the project under subdivision 2 or 3.
122.20EFFECTIVE DATE.This section is effective for districts for which the request for
122.21certification was made after June 30, 2017.

122.22    Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
122.23    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
122.24the meanings given.
122.25(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
122.26correction, removal of hazardous waste or pollution, installation of utilities, construction
122.27of public or private improvements, and other similar activities, but only to the extent that
122.28tax increment revenues may be spent for such purposes under other law.
122.29(c) "Third party" means an entity other than (1) the person receiving the benefit of
122.30assistance financed with tax increments, or (2) the municipality or the development authority
122.31or other person substantially under the control of the municipality.
123.1(d) "Revenues derived from tax increments paid by properties in the district" means only
123.2tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include
123.3tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).
123.4EFFECTIVE DATE.This section is effective the day following final enactment.

123.5    Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
123.6    Subd. 2. Expenditures outside district. (a) For each tax increment financing district,
123.7an amount equal to at least 75 percent of the total revenue derived from tax increments paid
123.8by properties in the district must be expended on activities in the district or to pay bonds,
123.9to the extent that the proceeds of the bonds were used to finance activities in the district or
123.10to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
123.11than redevelopment districts for which the request for certification was made after June 30,
123.121995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
123.13more than 25 percent of the total revenue derived from tax increments paid by properties
123.14in the district may be expended, through a development fund or otherwise, on activities
123.15outside of the district but within the defined geographic area of the project except to pay,
123.16or secure payment of, debt service on credit enhanced bonds. For districts, other than
123.17redevelopment districts for which the request for certification was made after June 30, 1995,
123.18the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
123.19revenues derived from tax increments for paid by properties in the district that are expended
123.20on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
123.21calculating the percentages that must be expended within and without the district.
123.22    (b) In the case of a housing district, a housing project, as defined in section 469.174,
123.23subdivision 11 , is an activity in the district.
123.24    (c) All administrative expenses are for activities outside of the district, except that if the
123.25only expenses for activities outside of the district under this subdivision are for the purposes
123.26described in paragraph (d), administrative expenses will be considered as expenditures for
123.27activities in the district.
123.28    (d) The authority may elect, in the tax increment financing plan for the district, to increase
123.29by up to ten percentage points the permitted amount of expenditures for activities located
123.30outside the geographic area of the district under paragraph (a). As permitted by section
123.31469.176, subdivision 4k , the expenditures, including the permitted expenditures under
123.32paragraph (a), need not be made within the geographic area of the project. Expenditures
123.33that meet the requirements of this paragraph are legally permitted expenditures of the district,
124.1notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
124.2under this paragraph, the expenditures must:
124.3    (1) be used exclusively to assist housing that meets the requirement for a qualified
124.4low-income building, as that term is used in section 42 of the Internal Revenue Code; and
124.5    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
124.6Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
124.7Revenue Code; and
124.8    (3) be used to:
124.9    (i) acquire and prepare the site of the housing;
124.10    (ii) acquire, construct, or rehabilitate the housing; or
124.11    (iii) make public improvements directly related to the housing; or
124.12(4) be used to develop housing:
124.13(i) if the market value of the housing does not exceed the lesser of:
124.14(A) 150 percent of the average market value of single-family homes in that municipality;
124.15or
124.16(B) $200,000 for municipalities located in the metropolitan area, as defined in section
124.17473.121 , or $125,000 for all other municipalities; and
124.18(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
124.19of existing structures, site preparation, and pollution abatement on one or more parcels, if
124.20the parcel contains a residence containing one to four family dwelling units that has been
124.21vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
124.227 , but without regard to whether the residence is the owner's principal residence, and only
124.23after the redemption period has expired.
124.24(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
124.25Increments may continue to be expended under this authority after that date, if they are used
124.26to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
124.27December 31, 2016, is considered to be the last date of the five-year period after certification
124.28under that provision.
124.29EFFECTIVE DATE.This section is effective the day following final enactment.

125.1    Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
125.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties
125.3in the district are considered to have been expended on an activity within the district under
125.4subdivision 2 only if one of the following occurs:
125.5(1) before or within five years after certification of the district, the revenues are actually
125.6paid to a third party with respect to the activity;
125.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and
125.8sold to a third party before or within five years after certification, the revenues are spent to
125.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
125.10expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
125.11temporary period within the meaning of the use of that term under section 148(c)(1) of the
125.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
125.13fund;
125.14(3) binding contracts with a third party are entered into for performance of the activity
125.15before or within five years after certification of the district and the revenues are spent under
125.16the contractual obligation;
125.17(4) costs with respect to the activity are paid before or within five years after certification
125.18of the district and the revenues are spent to reimburse a party for payment of the costs,
125.19including interest on unreimbursed costs; or
125.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
125.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
125.222, paragraph (e).
125.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
125.24original refunded bonds meet the requirements of paragraph (a), clause (2).
125.25(c) For a redevelopment district or a renewal and renovation district certified after June
125.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
125.27extended to ten years after certification of the district. For a redevelopment district certified
125.28after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
125.29(a) are extended to eight years after certification of the district. This extension is provided
125.30primarily to accommodate delays in development activities due to unanticipated economic
125.31circumstances.
125.32EFFECTIVE DATE.This section is effective the day following final enactment.

126.1    Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
126.2    Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money
126.3to finance expenditures under section 469.176, subdivision 4, from its general fund or any
126.4other fund under which it has legal authority to do so.
126.5    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is
126.6earliest, the loan or advance must be authorized, by resolution of the governing body or of
126.7the authority, whichever has jurisdiction over the fund from which the advance or loan is
126.8authorized, before money is transferred, advanced, or spent, whichever is earliest.
126.9    (c) The resolution may generally grant to the municipality or the authority the power to
126.10make interfund loans under one or more tax increment financing plans or for one or more
126.11districts. The resolution may be adopted before or after the adoption of the tax increment
126.12financing plan or the creation of the tax increment financing district from which the advance
126.13or loan is to be repaid.
126.14    (d) The terms and conditions for repayment of the loan must be provided in writing and.
126.15The written terms and conditions may be in any form, but must include, at a minimum, the
126.16principal amount, the interest rate, and maximum term. Written terms may be modified or
126.17amended in writing by the municipality or the authority before the latest decertification of
126.18any tax increment financing district from which the interfund loan is to be repaid. The
126.19maximum rate of interest permitted to be charged is limited to the greater of the rates
126.20specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized,
126.21unless the written agreement states that the maximum interest rate will fluctuate as the
126.22interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
126.23Loans or advances may be structured as draw-down or line-of-credit obligations of the
126.24lending fund.
126.25    (e) The authority shall report in the annual report submitted under section 469.175,
126.26subdivision 6:
126.27    (1) the amount of any interfund loan or advance made in a calendar year; and
126.28    (2) any amendment of an interfund loan or advance made in a calendar year.
126.29EFFECTIVE DATE.This section is effective the day following final enactment and
126.30applies to all districts, regardless of when the request for certification was made.

127.1    Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
127.2    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
127.3financing plan for a district, the rules under this section apply to a redevelopment district,
127.4renewal and renovation district, economic development district, soil condition district, or
127.5a soil deficiency district established by the city or a development authority of the city in the
127.6project area.
127.7    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
127.8rules under this subdivision, the city must find by resolution that parcels consisting of at
127.9least 80 percent of the acreage of the project area (excluding street and railroad right of
127.10way) are characterized by one or more of the following conditions:
127.11    (1) peat or other soils with geotechnical deficiencies that impair development of
127.12residential or commercial buildings or infrastructure;
127.13    (2) soils or terrain that requires substantial filling in order to permit the development of
127.14commercial or residential buildings or infrastructure;
127.15    (3) landfills, dumps, or similar deposits of municipal or private waste;
127.16    (4) quarries or similar resource extraction sites;
127.17    (5) floodway; and
127.18    (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174,
127.19subdivision 10 .
127.20    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be
127.21characterized by the relevant condition if at least 70 percent of the area of the parcel contains
127.22the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to
127.23be characterized by substandard buildings if the buildings occupy at least 30 percent of the
127.24area of the parcel.
127.25    (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
127.26extended to ten years for any district, and section 469.1763, subdivision 4, does not apply
127.27to any district.
127.28    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph
127.29(a), not more than 80 percent of the total revenue derived from tax increments paid by
127.30properties in any district (measured over the life of the district) may be expended on activities
127.31outside the district but within the project area.
127.32    (f) For a soil deficiency district:
128.1    (1) increments may be collected through 20 years after the receipt by the authority of
128.2the first increment from the district; and
128.3    (2) except as otherwise provided in this subdivision, increments may be used only to:
128.4    (i) acquire parcels on which the improvements described in item (ii) will occur;
128.5    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
128.6cost of installing public improvements directly caused by the deficiencies; and
128.7    (iii) pay for the administrative expenses of the authority allocable to the district.
128.8    (g) Increments spent for any infrastructure costs, whether inside a district or outside a
128.9district but within the project area, are deemed to satisfy the requirements of paragraph (f)
128.10and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
128.11    (h) Increments from any district may not be used to pay the costs of landfill closure or
128.12public infrastructure located on the following parcels within the plat known as Burnsville
128.13Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
128.14    (i) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
128.15extended to nine years.
128.16    (j) The city may specify in the tax increment financing plan for any district the first year
128.17in which it elects to receive increment, which may be up to eight years following approval
128.18of the district.
128.19    (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph (c),
128.20the city may waive any increment received in 2017 and, if so, it shall not be used in
128.21determining the duration limit for any district created under this section.
128.22    (l) The authority to approve tax increment financing plans to establish tax increment
128.23financing districts under this section expires on December 31, 2018 March 20, 2023.
128.24EFFECTIVE DATE.This section is effective upon approval by the governing body
128.25of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section
128.26645.021.

128.27    Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
128.28382, section 84, is amended to read:
128.29    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
128.30FINANCING DISTRICT; SPECIAL RULES.
129.1(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
129.2the governing body of the city of Duluth approves the plan for the tax increment financing
129.3district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
129.4010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
129.5010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160;
129.6010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250;
129.7010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380;
129.8010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530;
129.9010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580;
129.10010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580;
129.11010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
129.12Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
129.13period from the date of certification of the tax increment financing district, must be
129.14considered to be met if the activities are undertaken within five years after the date all
129.15qualifying parcels are delisted from the Federal Superfund list.
129.16(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning
129.17in the sixth year following certification of the district requirement, will begin in the sixth
129.18year following the date all qualifying parcels are delisted from the Federal Superfund list.
129.19(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are
129.20satisfied if the action is commenced within four years after the date all qualifying parcels
129.21are delisted from the Federal Superfund list and evidence of the action required is submitted
129.22to the county auditor by February 1 of the fifth year following the year in which all qualifying
129.23parcels are delisted from the Federal Superfund list.
129.24(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
129.25listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the
129.26USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the
129.27tax increment financing district.
129.28(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
129.29subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels
129.30listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund
129.31Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted
129.32status, and if delisted, the delisting date.
129.33(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
129.34law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
130.1program before approval of the tax increment financing plan for or the establishment of the
130.2district authorized by this section. The authority may make loans under this program. The
130.3proceeds of the loans may be used for any permitted use of increments under this law or
130.4Minnesota Statutes, section 469.176, for the district and may be repaid with increments
130.5from the district established under this section. This paragraph applies to any action
130.6authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
130.7EFFECTIVE DATE.This section is effective the day after the governing body of the
130.8city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
130.9subdivision 3.

130.10    Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:
130.11    Subdivision 1. Authority to create districts. (a) The governing body of the city of
130.12Edina or its development authority may establish one or more tax increment financing
130.13housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
130.14exist on March 31, 2014.
130.15(b) The authority to request certification of districts under this section expires on June
130.1630, 2017 2020.
130.17EFFECTIVE DATE.This section is effective on the day following final enactment
130.18without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph
130.19(a).

130.20    Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read:
130.21    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
130.22    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
130.23the meanings given them.
130.24(b) "City" means the city of Maple Grove.
130.25(c) "Project area" means all or a portion of the area in the city commencing at a point
130.26130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
130.2723, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
130.28line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
130.29Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
130.30thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
130.31Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
130.32East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
131.1of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
131.2North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
131.3of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
131.4line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
131.5degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
131.624; thence West along said south line to the east right-of-way line of Zachary Lane; thence
131.7North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
131.8Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
131.9Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
131.10South along the east line of said Outlot A and its southerly extension to the south right-of-way
131.11line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
131.12line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
131.13Section 24; thence South along said east line to the north line of the South Half of the
131.14Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
131.15line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
131.16Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
131.17right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
131.18A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
131.19Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
131.20line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
131.21line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
131.22Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
131.23westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
131.24Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
131.25line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
131.26Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
131.27westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
131.28and there terminating, provided that the project area includes the rights-of-way for all present
131.29and future highway interchanges abutting the area described in this paragraph, and may
131.30include any additional property necessary to cause the property included in the tax increment
131.31financing district to consist of complete parcels.
131.32(d) "Soil deficiency district" means a type of tax increment financing district consisting
131.33of a portion of the project area in which the city finds by resolution that the following
131.34conditions exist:
132.1(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
132.2the district require substantial filling, grading, or other physical preparation for use; and
132.3(2) the estimated cost of the physical preparation under clause (1), but excluding costs
132.4directly related to roads as defined in Minnesota Statutes, section 160.01, and local
132.5improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
132.6(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
132.7completion of the preparation.
132.8    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
132.9financing plan for a district, the rules under this section apply to a redevelopment district,
132.10renewal and renovation district, soil condition district, or soil deficiency district established
132.11by the city or a development authority of the city in the project area.
132.12(b) Prior to or upon the adoption of the first tax increment plan subject to the special
132.13rules under this subdivision, the city must find by resolution that parcels consisting of at
132.14least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
132.15are characterized by one or more of the following conditions:
132.16(1) peat or other soils with geotechnical deficiencies that impair development of
132.17commercial buildings or infrastructure;
132.18(2) soils or terrain that require substantial filling in order to permit the development of
132.19commercial buildings or infrastructure;
132.20(3) landfills, dumps, or similar deposits of municipal or private waste;
132.21(4) quarries or similar resource extraction sites;
132.22(5) floodway; and
132.23(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
132.24subdivision 10 .
132.25(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
132.26relevant condition if at least 70 percent of the area of the parcel contains the relevant
132.27condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
132.28substandard buildings if substandard buildings occupy at least 30 percent of the area of the
132.29parcel.
132.30(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
132.31extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision
132.324 , does not apply to any district.
133.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
133.2subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax
133.3increments paid by properties in any district, measured over the life of the district, may be
133.4expended on activities outside the district but within the project area.
133.5(f) For a soil deficiency district:
133.6(1) increments may be collected through 20 years after the receipt by the authority of
133.7the first increment from the district;
133.8(2) increments may be used only to:
133.9(i) acquire parcels on which the improvements described in item (ii) will occur;
133.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
133.11cost of installing public improvements directly caused by the deficiencies; and
133.12(iii) pay for the administrative expenses of the authority allocable to the district; and
133.13(3) any parcel acquired with increments from the district must be sold at no less than
133.14their fair market value.
133.15(g) Increments spent for any infrastructure costs, whether inside a district or outside a
133.16district but within the project area, are deemed to satisfy the requirements of Minnesota
133.17Statutes, section 469.176, subdivision 4j.
133.18(h) The authority to approve tax increment financing plans to establish tax increment
133.19financing districts under this section expires June 30, 2020.
133.20(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
133.21increments from a soil deficiency district to acquire parcels and for other infrastructure costs
133.22either inside or outside of the district, but within the project area, if the acquisition or
133.23infrastructure is for a qualified development. For purposes of this paragraph, a development
133.24is a qualified development only if all of the following requirements are satisfied:
133.25(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
133.26primarily to serve the development;
133.27(2) the city has a binding, written commitment and adequate financial assurances from
133.28the developer that the development will be constructed; and
133.29(3) the development does not consist of retail trade or housing improvements.
134.1EFFECTIVE DATE.This section is effective upon approval by the governing body
134.2of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
134.3section 645.021.

134.4    Sec. 13. CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.
134.5For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
134.6city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed
134.7to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and
134.8the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
134.9the district were certified on that date.
134.10EFFECTIVE DATE.This section is effective upon approval by the governing body
134.11of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
134.12645.021, subdivisions 2 and 3.

134.13    Sec. 14. CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.
134.14Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
134.15or any other law to the contrary, the city of Coon Rapids may collect tax increment from
134.16District 6-1 Port Riverwalk through December 31, 2038.
134.17EFFECTIVE DATE.This section is effective upon compliance by the governing bodies
134.18of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
134.19the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
134.20subdivision 3.

134.21    Sec. 15. CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.
134.22The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
134.23must be undertaken within a five-year period from the date of certification of a tax increment
134.24financing district, is considered to be met for Tax Increment Financing District No. 1-12
134.25(Gateway North), administered by the Cottage Grove Economic Development Authority,
134.26if the activities are undertaken prior to January 1, 2017.
134.27EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
134.28officer of the governing body of the city of Cottage Grove with the requirements of Minnesota
134.29Statutes, section 645.021, subdivisions 2 and 3.

135.1    Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
135.2Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3,
135.3the chief clerical officer of the city of Edina may file with the secretary of state certificate
135.4of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017, and, if
135.5the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
135.6subdivision 3, are otherwise complied with, the special law is deemed approved, and all
135.7actions taken by the city before the effective date of this section in reliance on Laws 2014,
135.8chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
135.96, section 8, and this act.
135.10EFFECTIVE DATE.This section is effective the day following final enactment without
135.11local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6,
135.12section 8.

135.13    Sec. 17. CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.
135.14For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
135.15city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment
135.16Financing District is deemed to be certified on June 29, 2012, rather than its actual
135.17certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions
135.183 and 4, apply as if the district were certified on that date.
135.19EFFECTIVE DATE.This section is effective upon approval by the governing body
135.20of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
135.21645.021, subdivisions 2 and 3.

135.22    Sec. 18. CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF
135.23DISTRICT.
135.24Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
135.25to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and
135.26for the city of Richfield may elect to extend the duration limit of the redevelopment tax
135.27increment financing district known as the Cedar Avenue Tax Increment Financing District
135.28established by Laws 2005, chapter 152, article 2, section 25, by ten years.
135.29EFFECTIVE DATE.This section is effective upon compliance by the city of Richfield,
135.30Hennepin County, and Independent School District No. 280 with the requirements of
135.31Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.

136.1    Sec. 19. CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT.
136.2The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
136.3must be undertaken within a five-year period from the date of certification of a tax increment
136.4financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing
136.5District established by the city of Richfield and the housing and redevelopment authority
136.6in and for the city of Richfield if the activities are undertaken within eight years from the
136.7date of certification.
136.8EFFECTIVE DATE.This act is effective upon the city of Richfield's compliance with
136.9the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

136.10    Sec. 20. CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT.
136.11Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176,
136.12the city of Rochester may spend the proceeds from the sale or lease of any property purchased
136.13with tax increments derived from tax increment financing district number 36 (Bioscience
136.14Project) for the costs of operating, maintaining, and improving properties acquired with tax
136.15increments from district number 36, including funding and maintaining reserves for capital
136.16or operating expenses. Following the close of the third calendar year after decertification
136.17of that district, any remaining amounts of the proceeds are not subject to restrictions that
136.18apply to tax increments under Minnesota Statutes, sections 469.174 to 469.1794.
136.19EFFECTIVE DATE.This section is effective the day following final enactment without
136.20local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a).

136.21    Sec. 21. CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT
136.22INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.
136.23Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing body
136.24of the South St. Paul Economic Development Authority, successor to the Housing and
136.25Redevelopment Authority in and for the city of South St. Paul, may retroactively approve
136.26a previously established interfund loan for the 4th Avenue Village Tax Increment District
136.27in the city of South St. Paul if the governing body adopts a resolution approving that loan
136.28by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178,
136.29subdivision 7, are otherwise complied with, the interfund loan authorization is deemed to
136.30satisfy Minnesota Statutes, section 469.178, subdivision 7.
136.31EFFECTIVE DATE.This section is effective without local approval under Minnesota
136.32Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final enactment.

137.1    Sec. 22. CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT.
137.2For purposes of the Elmwood Village Tax Increment Financing District in the city of
137.3St. Louis Park, including during the duration extension authorized by Laws 2009, chapter
137.488, article 5, section 19, the period under Minnesota Statutes, section 469.1763, subdivision
137.53, is extended through December 31, 2019, and calendar year 2020 is the first year to which
137.6Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted
137.7percentage of increments that may be expended under Minnesota Statutes, section 469.1763,
137.8subdivision 2, on activities outside of the district is increased to 45 percent for the district.
137.9EFFECTIVE DATE.This section is effective upon compliance by the governing body
137.10of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021,
137.11subdivision 3.

137.12    Sec. 23. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
137.13(a) For purposes of computing the duration limits under Minnesota Statutes, section
137.14469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
137.15may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
137.16District. This authority is limited to the first four years of increment or increments derived
137.17from taxes payable in 2023, whichever occurs first.
137.18(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
137.19applying any limits based on when the district was certified under Minnesota Statutes,
137.20section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
137.21to be January 2 of the property tax assessment year for which increment is first received
137.22under the waiver.
137.23EFFECTIVE DATE.This section is effective July 1, 2017, without local approval
137.24under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

137.25    Sec. 24. WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT
137.26TIF DISTRICT; SPECIAL RULES.
137.27(a) If Washington County elects, upon the adoption of a tax increment financing plan
137.28for a district, the rules under this section apply to one or more tax increment financing
137.29districts established by the county or the community development agency of the county.
137.30The area within which the tax increment districts may be created is located in the city of
137.31Newport and is south of marked Interstate Highway 494, north of 15th Street extended to
137.32the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
138.161 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing
138.2Project Area" or "project area."
138.3(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
138.4section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification
138.5numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046,
138.62602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025,
138.7260282244024, and 2602822440023, which are deemed substandard for the purpose of
138.8qualifying the district as a redevelopment district.
138.9(c) Increments spent outside a district shall only be spent within the project area and on
138.10costs described in Minnesota Statutes, section 469.176, subdivision 4j.
138.11(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
138.12subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax
138.13increments paid by properties in any district, measured over the life of the district, may be
138.14expended on activities outside the district but within the project area. The five-year rule
138.15under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine
138.16years.
138.17(e) The authority to approve a tax increment financing plan and to establish a tax
138.18increment financing district under this section expires December 31, 2027.
138.19(f) The use of revenues for decertification in Minnesota Statutes, section 469.1763,
138.20subdivision 4, does not apply to the project area.
138.21EFFECTIVE DATE.This section is effective and shall retroactively include the
138.22redevelopment district in the project area approved by Washington County on November
138.238, 2016, upon approval by the governing body of the city of Newport and Washington
138.24County and upon compliance by the county with Minnesota Statutes, section 645.021,
138.25subdivision 3.

138.26    Sec. 25. CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.
138.27(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
138.28activities must be undertaken within a five-year period from the date of certification of a
138.29tax increment financing district, are considered to be met for Tax Increment Financing
138.30District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from
138.31the district are expended for any project contemplated by the original tax increment financing
138.32plan for the district, including, without limitation, a municipal parking ramp within the
138.33district.
139.1(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not
139.2apply to the district if the revenues derived from tax increment from the district are expended
139.3for any project contemplated by the original tax increment financing plan for the district,
139.4including, without limitation, a municipal parking ramp within the district.
139.5EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
139.6officer of the governing body of the city of Wayzata with the requirements of Minnesota
139.7Statutes, section 645.021, subdivisions 2 and 3.

139.8ARTICLE 6

139.9LOCAL OPTION SALES AND USE TAXES

139.10    Section 1. [471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX.
139.11Notwithstanding any other provision of law, no political subdivision may impose or
139.12require the imposition of any fee or tax, other than a local sales tax subject to section
139.13297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item or good
139.14purchased from a merchant, itinerant vendor, or peddler.
139.15EFFECTIVE DATE.This section is effective May 31, 2017. Ordinances existing on
139.16the effective date of this section that would be prohibited under this section are invalid as
139.17of the effective date of this section.

139.18    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
139.19chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
139.20First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
139.21section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
139.22    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
139.23ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
139.24impose an additional sales tax of up to one and three-quarter percent on sales transactions
139.25which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
139.26The imposition of this tax shall not be subject to voter referendum under either state law or
139.27city charter provisions. When the city council determines that the taxes imposed under this
139.28paragraph at a rate of three-quarters of one percent and other sources of revenue produce
139.29revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
139.30issuance and discount costs, issued for capital improvements at the Duluth Entertainment
139.31and Convention Center, which include a new arena, the rate of tax under this subdivision
139.32must be reduced by three-quarters of one percent.
140.1(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
140.2477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
140.3Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
140.4on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
140.5subdivision 3, clause (c). This tax expires when the city council determines that the tax
140.6imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
140.7has produced revenues sufficient to pay the debt service on bonds in a principal amount of
140.8no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
140.9to public facilities to support tourism and recreational activities in that portion of the city
140.10west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
140.11(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
140.12under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
140.13issuance and any premiums. The proceeds may be used to finance capital improvements to
140.14public facilities that support tourism and recreational activities in the portion of the city
140.15west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as
140.16described in paragraph (b). The issuance of the bonds is subject to the provisions of
140.17Minnesota Statutes, chapter 475, except no election shall be required unless required by the
140.18city charter. The bonds shall not be included in computing net debt. The revenues from the
140.19taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph
140.20(b), may be pledged to pay principal of and interest on such bonds.
140.21EFFECTIVE DATE.This section is effective the day after the governing body of the
140.22city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
140.23subdivisions 2 and 3.

140.24    Sec. 3. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
140.258, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws
140.262014, chapter 308, article 3, section 22, is amended to read:
140.27    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
140.28    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
140.29or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
140.30additional tax of one percent upon the gross receipts from the sale of lodging for periods of
140.31less than 30 days in hotels and motels located in the city. The tax shall be collected in the
140.32same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
140.33The imposition of this tax shall not be subject to voter referendum under either state law or
140.34city charter provisions.
141.1(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
141.2477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
141.3Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
141.4on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
141.5motels located in the city. This tax expires when the city council first determines that the
141.6tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
141.7(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
141.8of no more than $18,000,000, plus issuance and discount costs, to finance capital
141.9improvements to public facilities to support tourism and recreational activities in that portion
141.10of the city west of 34th 14th Avenue West and the area south of and including Skyline
141.11Parkway.
141.12EFFECTIVE DATE.This section is effective the day after the governing body of the
141.13city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
141.14subdivisions 2 and 3.

141.15    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws
141.161998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and
141.17Laws 2009, chapter 88, article 4, section 14, is amended to read:
141.18    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
141.191 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
141.20portion of the expenses of constructing and improving facilities as part of an urban
141.21revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
141.22include, but are not limited to, acquiring property and paying relocation expenses related
141.23to the development of Riverfront 2000 and related facilities, and securing or paying debt
141.24service on bonds or other obligations issued to finance the construction of Riverfront 2000
141.25and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
141.26means a civic-convention center, an arena, a riverfront park, a technology center and related
141.27educational facilities, and all publicly owned real or personal property that the governing
141.28body of the city determines will be necessary to facilitate the use of these facilities, including
141.29but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
141.30includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
141.31Center, for use by Minnesota State University, Mankato.
141.32    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
141.33by voters at the November 8, 2016, general election, the city may by ordinance also use
141.34revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
142.1plus associated bond costs, to pay all or a portion of the expenses of the following capital
142.2projects:
142.3    (1) construction and improvements to regional recreational facilities including existing
142.4hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
142.5swimming pool including improvements to make the pool compliant with the Americans
142.6with Disabilities Act, and indoor regional athletic facilities;
142.7    (2) improvements to flood control and the levee system;
142.8(3) water quality improvement projects in Blue Earth and Nicollet Counties;
142.9(4) expansion of the regional transit building and related multimodal transit
142.10improvements;
142.11(5) regional public safety and emergency communications improvements and equipment;
142.12and
142.13(6) matching funds for improvements to publicly owned regional facilities including a
142.14historic museum, supportive housing, and a senior center.
142.15EFFECTIVE DATE.This section is effective the day after the governing body of the
142.16city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
142.17645.021, subdivisions 2 and 3.

142.18    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
142.192005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
142.20article 7, section 10, is amended to read:
142.21    Subd. 4. Expiration of taxing authority and expenditure limitation. The authority
142.22granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
142.23expire on at the earlier of when revenues are sufficient to pay off the bonds, including
142.24interest and all other associated bond costs authorized under subdivision 5, or December
142.2531, 2022 2038.
142.26EFFECTIVE DATE.This section is effective the day following final enactment without
142.27local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

142.28    Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
142.29    Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city
142.30in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
142.31election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
143.1a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
143.2facilities shall not be included in computing any debt limitations applicable to the city of
143.3Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
143.4on the bonds shall not be subject to any levy limitation or be included in computing or
143.5applying any levy limitation applicable to the city.
143.6    (b) The city of Mankato may issue general obligation bonds of the city in an amount not
143.7to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
143.8election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
143.9a tax to pay them. The debt represented by bonds under this paragraph shall not be included
143.10in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
143.11required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
143.12and shall not be subject to any levy limitation or be included in computing or applying any
143.13levy limitation applicable to the city. The city may use tax revenue in excess of one year's
143.14principal interest reserve for intended annual bond payments to pay all or a portion of the
143.15cost of capital improvements authorized in subdivision 3.
143.16EFFECTIVE DATE.This section is effective the day following final enactment without
143.17local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

143.18    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws
143.192006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7,
143.20article 4, section 4, is amended to read:
143.21    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section
143.22477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
143.23Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
143.24sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
143.25the city. The proceeds of the tax imposed under this section must be used to meet the costs
143.26of:
143.27    (1) extending a sewer interceptor line;
143.28    (2) construction of a booster pump station, reservoirs, and related improvements to the
143.29water system; and
143.30    (3) construction of a building containing a police and fire station and an administrative
143.31services facility.
144.1(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
144.2it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
144.3is approved by the voters at a general election held before December 31, 2012.
144.4(c) As approved by the voters at the November 8, 2016, general election, the proceeds
144.5under this section may also be used to meet the costs of debt service payments for
144.6construction of the Hermantown Wellness Center.
144.7EFFECTIVE DATE.This section is effective the day after the governing body of the
144.8city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
144.9645.021, subdivisions 2 and 3.

144.10    Sec. 8. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
144.112006, chapter 259, article 3, section 4, is amended to read:
144.12    Subd. 4. Termination. The tax authorized under this section terminates on March 31,
144.132026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
144.14first determines that sufficient funds have been received from the tax to fund the costs,
144.15including bonds and associated bond costs for the uses specified in subdivision 1. Any funds
144.16remaining after completion of the improvements and retirement or redemption of the bonds
144.17may be placed in the general fund of the city.
144.18EFFECTIVE DATE.This section is effective the day following final enactment without
144.19local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

144.20    Sec. 9. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:
144.21    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
144.221 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for
144.23construction and improvement of a civic and community center and recreational facilities
144.24to serve all ages, including seniors and youth. Authorized expenses include, but are not
144.25limited to, acquiring property, paying construction and operating expenses related to the
144.26development of an authorized facility, funding facilities replacement reserves, and paying
144.27debt service on bonds or other obligations issued to finance the construction or expansion
144.28of an authorized facility. The capital expenses for all projects authorized under this
144.29subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
144.30equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
144.31    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
144.32by the voters at the November 8, 2016, general election, the city of New Ulm may by
145.1ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a
145.2maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses
145.3of the following capital projects:
145.4    (1) constructing an indoor water park and making safety improvements to the existing
145.5recreational center pool;
145.6    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;
145.7    (3) constructing a winter multipurpose dome;
145.8    (4) making improvements to Johnson Park Grandstand; and
145.9    (5) making improvements to the entrance road and parking at Hermann Heights Park.
145.10EFFECTIVE DATE.This section is effective the day after the governing body of the
145.11city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
145.12645.021, subdivisions 2 and 3.

145.13    Sec. 10. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
145.14to read:
145.15    Subd. 4a. Bonding authority; additional use and extension of tax. As approved by
145.16the voters at the November 8, 2016, general election, and in addition to the bonds issued
145.17under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in
145.18an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b).
145.19The debt represented by bonds under this subdivision shall not be included in computing
145.20any debt limitations applicable to the city of New Ulm, and the levy of taxes required by
145.21Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall
145.22not be subject to any levy limitation or be included in computing or applying any levy
145.23limitation applicable to the city.
145.24EFFECTIVE DATE.This section is effective the day after the governing body of the
145.25city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
145.26645.021, subdivisions 2 and 3.

145.27    Sec. 11. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
145.28    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire
145.29when the city council determines that sufficient funds have been received from the taxes to
145.30finance the capital and administrative costs for the acquisition, construction, and improvement
145.31of facilities described in subdivision 3, including the additional use of revenues under
146.1subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
146.2election, and to prepay or retire at maturity the principal, interest, and premium due on any
146.3bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining
146.4after completion of the project and retirement or redemption of the bonds may be placed in
146.5the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at
146.6an earlier time if the city so determines by ordinance.
146.7EFFECTIVE DATE.This section is effective the day after the governing body of the
146.8city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
146.9645.021, subdivisions 2 and 3.

146.10    Sec. 12. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws
146.112008, chapter 366, article 7, section 12, is amended to read:
146.12    Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
146.13477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city
146.14voters at the first municipal general election held after the date of final enactment of this
146.15act or at a special election held November 2, 1999, the city of Proctor may impose by
146.16ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
146.17subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
146.18administration, collection, and enforcement of the tax authorized under this subdivision.
146.19(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
146.20law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
146.21sales and use tax of up to one-half of one percent if approved by the voters at the first general
146.22election held after the date of final enactment of this act. The revenues received from the
146.23additional tax must be used for the purposes specified in subdivision 3, paragraph (b).
146.24EFFECTIVE DATE.This section is effective the day after the governing body of the
146.25city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
146.26subdivisions 2 and 3.

146.27    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
146.28as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:
146.29    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be
146.30used to pay for lake water quality improvement projects as detailed in the Shell Rock River
146.31watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
146.32any provision of statute, other law, or city charter to the contrary, the city shall transfer all
146.33revenues from the tax imposed under subdivision 1, as soon as they are received, to the
147.1Shell Rock River Watershed District. The city is not required to review the intended uses
147.2of the revenues by the watershed district, nor is the watershed district required to submit to
147.3the city proposed budgets, statements, or invoices explaining the intended uses of the
147.4revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed
147.5District shall appear before the city of Albert Lea City Council on a biannual basis to present
147.6a report of its activities, expenditures, and intended uses of the city sales tax revenue.
147.7EFFECTIVE DATE.This section is effective the day after the governing body of the
147.8city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
147.9645.021, subdivisions 2 and 3.

147.10    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
147.11as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:
147.12    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier
147.13of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first
147.14determines that the amount of revenues raised to pay for the projects under subdivision 2,
147.15shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after
147.16completion of the projects may be placed in the general fund of the city.
147.17EFFECTIVE DATE.This section is effective the day after the governing body of the
147.18city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
147.19645.021, subdivisions 2 and 3.

147.20    Sec. 15. Laws 2008, chapter 366, article 7, section 20, is amended to read:
147.21    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
147.22    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
147.23section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
147.24approval of the voters on November 7, 2006, the city of North Mankato may impose by
147.25ordinance a sales and use tax of one-half of one percent for the purposes specified in
147.26subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
147.27administration, collection, and enforcement of the taxes authorized under this subdivision.
147.28    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1
147.29must be used to pay all or part of the capital costs of the following projects:
147.30    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
147.31project;
148.1    (2) development of regional parks and hiking and biking trails, including construction
148.2of indoor regional athletic facilities;
148.3    (3) expansion of the North Mankato Taylor Library;
148.4    (4) riverfront redevelopment; and
148.5    (5) lake improvement projects.
148.6    The total amount of revenues from the tax in subdivision 1 that may be used to fund
148.7these projects is $6,000,000 $15,000,000 plus any associated bond costs.
148.8    Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes, section
148.9297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
148.10authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated
148.11bond costs, to fund the projects in subdivision 2 as approved by the voters at the November
148.128, 2016, general election.
148.13    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters
148.14at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
148.15may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
148.16expenses for the projects described in subdivision 2, in an amount that does not exceed
148.17$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
148.18475.58 , is not required.
148.19(b) The city of North Mankato, pursuant to approval of the voters at the November 8,
148.202016, referendum extending the tax fee to provide additional revenue to be spent for the
148.21projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
148.22475, to pay capital and administrative expenses for those projects in an amount that does
148.23not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes,
148.24section 475.58, is not required.
148.25    (b) (c) The debt represented by the bonds is not included in computing any debt limitation
148.26applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
148.27pay principal and interest on the bonds is not subject to any levy limitation.
148.28    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the
148.29city council determines that the amount of revenues received from the taxes to pay for the
148.30projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
148.31needed to pay the costs related to issuance of bonds under subdivision 3, including interest
148.32on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first
148.33equal or exceed $15,000,000 plus the additional amount needed to pay costs related to
149.1issuance of bonds under subdivision 3, including interest. Any funds remaining after
149.2completion of the projects and retirement or redemption of the bonds shall be placed in a
149.3capital facilities and equipment replacement fund of the city. The tax imposed under
149.4subdivision 1 may expire at an earlier time if the city so determines by ordinance.
149.5EFFECTIVE DATE.This section is effective the day after the governing body of the
149.6city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
149.7645.021, subdivisions 2 and 3.

149.8    Sec. 16. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
149.9    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
149.10section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
149.11charter, and as approved by the voters at a special election on March 7, 2016, the city of
149.12East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for
149.13the purposes specified in subdivision 2. Except as otherwise provided in this section, the
149.14provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
149.15collection, and enforcement of the tax authorized under this subdivision.
149.16    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
149.17under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
149.18collecting and administering the tax and to finance the capital and administrative costs of
149.19improvement to the city public swimming pool. Authorized expenses include, but are not
149.20limited to, paying construction expenses related to the renovation and the development of
149.21these facilities and improvements, and securing and paying debt service on bonds issued
149.22under subdivision 3 or other obligations issued to finance improvement of the public
149.23swimming pool in the city of East Grand Forks
149.24    Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds under
149.25Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
149.26authorized in subdivision 2. The aggregate principal amount of bonds issued under this
149.27subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of
149.28the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
149.29to the city of East Grand Forks, including the tax authorized under subdivision 1. The
149.30issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
149.31and 275.61.
149.32(b) The bonds are not included in computing any debt limitation applicable to the city
149.33of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to
150.1pay principal and interest on the bonds is not subject to any levy limitation. A separate
150.2election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
150.3    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the later
150.4of: (1) five years after the tax is first imposed; or (2) when the city council determines that
150.5$2,820,000 has been received from the tax to pay for the cost of the projects authorized
150.6under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
150.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
150.8after payment of all such costs and retirement or redemption of the bonds shall be placed
150.9in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
150.10time if the city so determines by ordinance.
150.11EFFECTIVE DATE.This section is effective the day after the governing body of the
150.12city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
150.13section 645.021, subdivisions 2 and 3.

150.14    Sec. 17. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
150.15    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
150.16section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
150.17charter, and as approved by the voters at the general election of November 8, 2016, the city
150.18of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for
150.19the purposes specified in subdivision 2. Except as otherwise provided in this section, the
150.20provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
150.21collection, and enforcement of the tax authorized under this subdivision.
150.22    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
150.23under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
150.24administering the tax and to finance the capital and administrative costs of constructing and
150.25funding recreational amenities, trails, and a community center. The total that may be raised
150.26from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the
150.27issuance and paying debt service on bonds for these projects.
150.28    Subd. 3. Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota
150.29Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
150.30subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
150.31not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing
150.32the bonds. The bonds may be paid from or secured by any funds available to the city of
150.33Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under
150.34this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
151.1(b) The bonds are not included in computing any debt limitation applicable to the city
151.2of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
151.3and interest on the bonds is not subject to any levy limitation. A separate election to approve
151.4the bonds under Minnesota Statutes, section 475.58, is not required.
151.5    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
151.6earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
151.7that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
151.8authorized under subdivision 3, including interest on the bonds, has been received from the
151.9tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
151.10after payment of all such costs and retirement or redemption of the bonds shall be placed
151.11in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
151.12time if the city so determines by ordinance.
151.13EFFECTIVE DATE.This section is effective the day after the governing body of the
151.14city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
151.15645.021, subdivisions 2 and 3.

151.16    Sec. 18. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
151.17    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
151.18section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city
151.19charter, and as approved by the voters at the November 8, 2016, general election, the city
151.20of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one
151.21percent for the purposes specified in subdivision 2. Except as otherwise provided in this
151.22section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
151.23administration, collection, and enforcement of the tax authorized under this subdivision.
151.24    Subd. 2. Use of sales and use tax revenues. The revenues from the tax authorized under
151.25subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and
151.26administering the tax and securing and paying debt service on bonds issued to finance all
151.27or part of the costs of the expansion and betterment of the Fergus Falls Public Library located
151.28at 205 East Hampden Avenue in the city of Fergus Falls.
151.29    Subd. 3. Bonding authority. (a) The city of Fergus Falls may issue bonds under
151.30Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
151.31authorized in subdivision 2. The aggregate principal amount of bonds issued under this
151.32subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of
151.33issuing the bonds. The bonds may be paid from or secured by any funds available to the
152.1city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds
152.2under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
152.3(b) The bonds are not included in computing any debt limitation applicable to the city,
152.4and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
152.5interest on the bonds is not subject to any levy limitation. A separate election to approve
152.6the bonds under Minnesota Statutes, section 475.58, is not required.
152.7    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
152.8earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines
152.9that $9,800,000 has been received from the tax to pay for the cost of the project authorized
152.10under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the
152.11bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
152.12after payment of all such costs and retirement or redemption of the bonds shall be placed
152.13in the general fund of the city. The tax imposed under subdivision 1 may expire at any
152.14earlier time if the city so determines by ordinance.
152.15EFFECTIVE DATE.This section is effective the day after the governing body of the
152.16city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
152.17645.021, subdivisions 2 and 3.

152.18    Sec. 19. CITY OF MOOSE LAKE; TAXES AUTHORIZED.
152.19    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
152.20section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
152.21as approved by the voters at the November 6, 2012, general election, the city of Moose Lake
152.22may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
152.23purposes specified in subdivision 2. Except as otherwise provided in this section, the
152.24provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
152.25collection, and enforcement of the tax authorized under this subdivision.
152.26    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
152.27under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
152.28and administering the tax and to finance the costs of: (1) improvements to the city's park
152.29system; (2) street and related infrastructure improvements; and (3) municipal arena
152.30improvements. Authorized costs include construction and engineering costs and associated
152.31bond costs.
152.32    Subd. 3. Bonding authority. The city of Moose Lake may issue bonds under Minnesota
152.33Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
153.1subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
153.2not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing
153.3the bonds. The bonds may be paid from or secured by any funds available to the city of
153.4Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under
153.5this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
153.6The bonds are not included in computing any debt limitation applicable to the city of
153.7Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
153.8and interest on the bonds is not subject to any levy limitation. A separate election to approve
153.9the bonds under Minnesota Statutes, section 475.58, is not required.
153.10    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
153.11earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
153.12that $3,000,000 has been received from the tax to pay for the cost of the projects authorized
153.13under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
153.14bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
153.15after payment of all such costs and retirement or redemption of the bonds shall be placed
153.16in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
153.17time if the city so determines by ordinance.
153.18EFFECTIVE DATE.This section is effective the day after the governing body of the
153.19city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section
153.20645.021, subdivisions 2 and 3.

153.21    Sec. 20. CITY OF NEW LONDON; TAX AUTHORIZED.
153.22    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
153.23section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
153.24charter, and as approved by the voters at the general election of November 8, 2016, the city
153.25of New London may impose, by ordinance, a sales and use tax of one-half of one percent
153.26for the purposes specified in subdivision 2. Except as otherwise provided in this section,
153.27the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
153.28collection, and enforcement of the tax authorized under this subdivision.
153.29    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
153.30under subdivision 1 must be used by the city of New London to pay the costs of collecting
153.31and administering the tax and to finance the capital and administrative costs of the following
153.32projects:
153.33(1) construction and equipping of a new library and community room;
154.1(2) construction of an ambulance bay at the fire hall; and
154.2(3) improvements to the New London Senior Citizen Center.
154.3The total that may be raised from the tax to pay for these projects is limited to $872,000
154.4plus the costs related to the issuance and paying debt service on bonds for these projects.
154.5    Subd. 3. Bonding authority. (a) The city of New London may issue bonds under
154.6Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
154.7authorized in subdivision 2. The aggregate principal amount of bonds issued under this
154.8subdivision may not exceed $872,000, plus an amount to be applied to the payment of the
154.9costs of issuing the bonds. The bonds may be paid from or secured by any funds available
154.10to the city of New London, including the tax authorized under subdivision 1. The issuance
154.11of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
154.12275.61.
154.13(b) The bonds are not included in computing any debt limitation applicable to the city
154.14of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
154.15principal and interest on the bonds is not subject to any levy limitation. A separate election
154.16to approve the bonds under Minnesota Statutes, section 475.58, is not required.
154.17    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
154.18earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
154.19that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
154.20authorized under subdivision 3, including interest on the bonds, has been received from the
154.21tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
154.22after payment of all such costs and retirement or redemption of the bonds shall be placed
154.23in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
154.24time if the city so determines by ordinance.
154.25EFFECTIVE DATE.This section is effective the day after the governing body of the
154.26city of New London and its chief clerical officer comply with Minnesota Statutes, section
154.27645.021, subdivisions 2 and 3.

154.28    Sec. 21. CITY OF SLEEPY EYE; LODGING TAX.
154.29Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
154.30ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by
154.31ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under
154.32Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
154.33Minnesota Statutes, section 469.190, and the total tax imposed under that section and this
155.1provision must not exceed five percent. Revenue from the tax imposed under this section
155.2may only be used for the same purposes as a tax imposed under Minnesota Statutes, section
155.3469.190.
155.4EFFECTIVE DATE.This section is effective the day after the governing body of the
155.5city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section
155.6645.021, subdivisions 2 and 3.

155.7    Sec. 22. CITY OF SPICER; TAX AUTHORIZED.
155.8    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
155.9section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
155.10charter, and as approved by the voters at the general election of November 8, 2016, the city
155.11of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the
155.12purposes specified in subdivision 2. Except as otherwise provided in this section, the
155.13provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
155.14collection, and enforcement of the tax authorized under this subdivision.
155.15    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
155.16under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and
155.17administering the tax and to finance the capital and administrative costs of the following
155.18projects:
155.19(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
155.20signals at marked Trunk Highway 23;
155.21(2) park and trail capital improvements including signage for bicycle share the road
155.22improvements and replacement of playground and related facilities; and
155.23(3) capital improvements to regional community facilities such as the Dethelfs roof and
155.24window replacement and the Pioneerland branch library roof replacement.
155.25    Subd. 3. Termination of taxes. The tax imposed under subdivision 1 expires at the
155.26earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027. All funds
155.27not used to pay collection and administration costs of the tax must be used for projects listed
155.28in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time if the
155.29city so determines by ordinance.
155.30EFFECTIVE DATE.This section is effective the day after the governing body of the
155.31city of Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021,
155.32subdivisions 2 and 3.

156.1    Sec. 23. CITY OF WALKER; LOCAL TAXES AUTHORIZED.
156.2    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
156.3section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the
156.4approval of the voters at the general election on November 6, 2012, the city of Walker may
156.5impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in
156.6subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
156.7administration, collection, and enforcement of the taxes authorized under this subdivision.
156.8    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1
156.9must be used to pay all or part of the capital and administrative costs of underground utility,
156.10street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012
156.11capital improvement plan of the engineer of the city of Walker.
156.12    Subd. 3. Bonding authority. The city of Walker, pursuant to the approval of the voters
156.13at the November 6, 2012, referendum authorizing the imposition of the taxes in this section,
156.14may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
156.15expenses for the projects described in subdivision 2, in an amount that does not exceed
156.16$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section
156.17475.58, is not required.
156.18    Subd. 4. Termination of tax. (a) The tax authorized under subdivision 1 terminates at
156.19the earlier of:
156.20(1) 20 years after the date of initial imposition of the tax; or
156.21(2) when the city council determines that sufficient funds have been raised from the tax
156.22to finance the capital and administrative costs of the improvements described in subdivision
156.232, plus the additional amount needed to pay the costs related to issuance of bonds under
156.24subdivision 3, including interest on the bonds.
156.25(b) Any funds remaining after completion of the projects specified in subdivision 2 and
156.26retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of
156.27the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
156.28determines by ordinance.
156.29EFFECTIVE DATE.This section is effective the day after the governing body of the
156.30city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021,
156.31subdivisions 2 and 3.

157.1    Sec. 24. CITY OF WINDOM; TAXES AUTHORIZED.
157.2    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
157.3section 477A.016, or any other provision of law, ordinance, or city charter, as approved by
157.4the voters at the general election held on November 8, 2016, the city of Windom may impose
157.5by ordinance a sales and use tax of up to one percent for the purposes specified in subdivision
157.63. Except as provided in this section, the provisions of Minnesota Statutes, section 297A.99,
157.7govern the imposition, administration, collection, and enforcement of the tax authorized
157.8under this subdivision.
157.9    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section must be
157.10used to pay for the cost of collecting the tax and to pay all or a portion of the expenses of
157.11constructing and improving a fire hall and a public safety facility, including any associated
157.12bond costs.
157.13    Subd. 3. Bonding authority. The city of Windom, pursuant to the approval of the voters
157.14at the referendum authorizing the imposition of tax in this section, may issue bonds under
157.15Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the project
157.16described in subdivision 2. A separate election to approve the bonds under Minnesota
157.17Statutes, section 475.58, is not required.
157.18    Subd. 4. Termination of tax. (a) The tax authorized under subdivision 1 terminates at
157.19the earlier of:
157.20(1) 15 years after the date of initial imposition of the tax; or
157.21(2) when $3,500,000 has been collected.
157.22(b) Any funds remaining after completion of the projects specified in subdivision 2 may
157.23be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
157.24at an earlier time if the city so determines by ordinance.
157.25EFFECTIVE DATE.This section is effective the day after the governing body of the
157.26city of Windom and its chief clerical officer comply with Minnesota Statutes, section
157.27645.021, subdivisions 2 and 3.

157.28    Sec. 25. CLAY COUNTY; TAX AUTHORIZED.
157.29    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
157.30section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as
157.31approved by the voters at the November 8, 2016, general election, Clay County may impose,
157.32by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified
158.1in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
158.2Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
158.3of the tax authorized under this subdivision.
158.4    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
158.5under subdivision 1 must be used by Clay County to pay the costs of collecting and
158.6administering the tax and to finance the capital and administrative costs of constructing and
158.7equipping a new correctional facility, law enforcement center, and related parking facility.
158.8Authorized expenses include but are not limited to paying design, development, and
158.9construction costs related to these facilities and improvements, and securing and paying
158.10debt service on bonds issued under subdivision 3 or other obligations issued to finance the
158.11facilities listed in this subdivision.
158.12    Subd. 3. Bonding authority. Clay County may issue bonds under Minnesota Statutes,
158.13chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
158.142. The aggregate principal amount of bonds issued under this subdivision may not exceed
158.15$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
158.16The bonds may be paid from or secured by any funds available to Clay County, including
158.17the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
158.18subject to Minnesota Statutes, sections 275.60 and 275.61.
158.19    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
158.20earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines
158.21that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds
158.22authorized under subdivision 3, including interest on the bonds, has been received from the
158.23tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
158.24after payment of all such costs and retirement or redemption of the bonds shall be placed
158.25in the general fund of the county. The tax imposed under subdivision 1 may expire at an
158.26earlier time if the county so determines by ordinance.
158.27EFFECTIVE DATE.This section is effective the day after the governing body of Clay
158.28County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
158.29subdivisions 2 and 3.

158.30    Sec. 26. GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY
158.31DISTRICT; TAXES AUTHORIZED.
158.32    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
158.33section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by
158.34the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs
159.1Lake Sanitary District may impose, by majority vote of the governing body of the district,
159.2a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except
159.3as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
159.4govern the imposition, administration, collection, and enforcement of the tax authorized
159.5under this subdivision.
159.6    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
159.7under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary
159.8District to pay the costs of collecting and administering the tax and to repay general obligation
159.9revenue notes issued or other debt incurred for the construction of the wastewater collection
159.10system through the Minnesota Public Facilities Authority, general obligation disposal system
159.11bonds issued to finance the expense incurred in financing construction of sewer system
159.12improvements, and notes payable issued for costs associated with the sewer services
159.13agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML
159.14Wastewater Inc., and any other costs associated with system maintenance and improvements,
159.15including extension of the system to unserved customers as determined by the governing
159.16body of the district.
159.17    Subd. 3. Bonds. The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant
159.18to the approval of the voters at the November 8, 2016, referendum authorizing the imposition
159.19of the tax under this section, may issue general obligation disposal system bonds for financing
159.20construction of sewer system improvements without a separate election required under
159.21Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued
159.22without a separate election is equal to $10,000,000 minus the amount of the tax revenue
159.23under this section committed to repay other notes as allowed under subdivision 2.
159.24    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
159.25earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the
159.26Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has
159.27been received from the tax to pay for the costs authorized under subdivision 2. Any funds
159.28remaining after payment of all such costs and retirement or redemption of the bonds shall
159.29be placed in the general fund of the district. The tax imposed under subdivision 1 may expire
159.30at an earlier time if the governing body of the district so determines.
159.31EFFECTIVE DATE.This section is effective the day after the governing body of the
159.32Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply
159.33with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

160.1    Sec. 27. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
160.2Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
160.3Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter
160.4389, article 5, sections 1 and 2, and file its approval with the secretary of state by January
160.51, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the
160.6approval of the voters on November 2, 2010, and otherwise in accordance with those laws
160.7are validated.
160.8EFFECTIVE DATE.This section is effective the day after the governing body of the
160.9city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
160.10subdivisions 2 and 3.

160.11ARTICLE 7

160.12PUBLIC FINANCE

160.13    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
160.14    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of
160.15indebtedness within the debt limits for a town purpose otherwise authorized by law. The
160.16certificates shall be payable in not more than ten years and be issued on the terms and in
160.17the manner as the board may determine, provided that notes issued for projects that eliminate
160.18R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
160.19than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the
160.20estimated market value of the town, they shall not be issued for at least ten days after
160.21publication in a newspaper of general circulation in the town of the board's resolution
160.22determining to issue them. If within that time, a petition asking for an election on the
160.23proposition signed by voters equal to ten percent of the number of voters at the last regular
160.24town election is filed with the clerk, the certificates shall not be issued until their issuance
160.25has been approved by a majority of the votes cast on the question at a regular or special
160.26election. A tax levy shall be made to pay the principal and interest on the certificates as in
160.27the case of bonds.

160.28    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
160.29    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
160.30without public referendum, issue capital notes within existing debt limits for the purpose
160.31of purchasing ambulance and other medical equipment, road construction or maintenance
160.32equipment, public safety equipment and other capital equipment having an expected useful
160.33life at least equal to the term of the notes issued. The notes shall be payable in not more
161.1than ten years and shall be issued on terms and in a manner as the board determines, provided
161.2that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
161.3(b), clause (2), must be payable in not more than 20 years. The total principal amount of
161.4the notes issued for any fiscal year shall not exceed one percent of the total annual budget
161.5for that year and shall be issued solely for the purchases authorized in this subdivision. A
161.6tax levy shall be made for the payment of the principal and interest on such notes as in the
161.7case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
161.8and software, whether bundled with machinery or equipment or unbundled. For purposes
161.9of this subdivision, the term "medical equipment" includes computer hardware and software
161.10and other intellectual property for use in medical diagnosis, medical procedures, research,
161.11record keeping, billing, and other hospital applications, together with application development
161.12services and training related to the use of the computer hardware and software and other
161.13intellectual property, all without regard to their useful life. For purposes of determining the
161.14amount of capital notes which the county may issue in any year, the budget of the county
161.15and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
161.16subdivision shall be in addition to obligations issuable under section 373.01, subdivision
161.173 .

161.18    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
161.19410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
161.20    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
161.21city may, by resolution and without public referendum, issue capital notes subject to the
161.22city debt limit to purchase capital equipment.
161.23    (b) For purposes of this section, "capital equipment" means:
161.24    (1) public safety equipment, ambulance and other medical equipment, road construction
161.25and maintenance equipment, and other capital equipment; and
161.26    (2) computer hardware and software, whether bundled with machinery or equipment or
161.27unbundled, together with application development services and training related to the use
161.28of the computer hardware and software.
161.29    (c) The equipment or software must have an expected useful life at least as long as the
161.30term of the notes.
161.31    (d) The notes shall be payable in not more than ten years and be issued on terms and in
161.32the manner the city determines, provided that notes issued for projects that eliminate R-22,
161.33as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than
162.120 years. The total principal amount of the capital notes issued in a fiscal year shall not
162.2exceed 0.03 percent of the estimated market value of taxable property in the city for that
162.3year.
162.4    (e) A tax levy shall be made for the payment of the principal and interest on the notes,
162.5in accordance with section 475.61, as in the case of bonds.
162.6    (f) Notes issued under this section shall require an affirmative vote of two-thirds of the
162.7governing body of the city.
162.8    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
162.9city may also issue capital notes subject to its debt limit in the manner and subject to the
162.10limitations applicable to statutory cities pursuant to section 412.301.

162.11    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
162.12412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
162.13    (a) The council may issue certificates of indebtedness or capital notes subject to the city
162.14debt limits to purchase capital equipment.
162.15    (b) For purposes of this section, "capital equipment" means:
162.16    (1) public safety equipment, ambulance and other medical equipment, road construction
162.17and maintenance equipment, and other capital equipment; and
162.18    (2) computer hardware and software, whether bundled with machinery or equipment or
162.19unbundled, together with application development services and training related to the use
162.20of the computer hardware or software.
162.21    (c) The equipment or software must have an expected useful life at least as long as the
162.22terms of the certificates or notes.
162.23    (d) Such certificates or notes shall be payable in not more than ten years and shall be
162.24issued on such terms and in such manner as the council may determine, provided, however,
162.25that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
162.26(b), clause (2), must be payable in not more than 20 years.
162.27    (e) If the amount of the certificates or notes to be issued to finance any such purchase
162.28exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
162.29not be issued for at least ten days after publication in the official newspaper of a council
162.30resolution determining to issue them; and if before the end of that time, a petition asking
162.31for an election on the proposition signed by voters equal to ten percent of the number of
162.32voters at the last regular municipal election is filed with the clerk, such certificates or notes
163.1shall not be issued until the proposition of their issuance has been approved by a majority
163.2of the votes cast on the question at a regular or special election.
163.3    (f) A tax levy shall be made for the payment of the principal and interest on such
163.4certificates or notes, in accordance with section 475.61, as in the case of bonds.

163.5    Sec. 5. [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC
163.6BUILDINGS.
163.7    Subdivision 1. Reverse referendum; certain leases. (a) Before executing a qualified
163.8lease, a municipality must publish notice of its intention to execute the lease and the date
163.9and time of a hearing to obtain public comment on the matter. The notice must be published
163.10in the official newspaper of the municipality or in a newspaper of general circulation in the
163.11municipality and must include a statement of the amount of the obligations to be issued by
163.12the authority and the maximum amount of annual rent to be paid by the municipality under
163.13the qualified lease. The notice must be published at least 14, but not more than 28, days
163.14before the date of the hearing.
163.15(b) A municipality may enter a lease subject to paragraph (a) only upon obtaining the
163.16approval of a majority of the voters voting on the question of issuing the obligations, if a
163.17petition requesting a vote on the issuance is signed by voters equal to ten percent of the
163.18votes cast in the municipality in the last state general election and is filed with the county
163.19auditor within 30 days after the public hearing.
163.20    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
163.21meanings given them.
163.22(b) "Authority" includes any of the following governmental units, the boundaries of
163.23which include all or part of the geographic area of the municipality:
163.24(1) a housing and redevelopment authority, as defined in section 469.002, subdivision
163.252;
163.26(2) a port authority, as defined in section 469.048;
163.27(3) an economic development authority, as established under section 469.091; or
163.28(4) an entity established or exercising powers under a special law with powers similar
163.29to those of an entity described in clauses (1) to (3).
163.30(c) "Municipality" means a statutory or home rule charter city, a county, or a town
163.31described in section 368.01, but does not include a city of the first class, however organized,
163.32as defined in section 410.01.
164.1(d) "Qualified lease" means a lease for use of public land, all or part of a public building,
164.2or other public facilities consisting of real property for a term of three or more years as a
164.3lessee if the property to be leased to the municipality was acquired or improved with the
164.4proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an authority.

164.5    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
164.6    Subdivision 1. Establishment. An economic development authority may create and
164.7define the boundaries of economic development districts at any place or places within the
164.8city, except that the district boundaries must be contiguous, and may use the powers granted
164.9in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a
164.10public hearing on the matter. At least ten days before the hearing, the authority shall publish
164.11notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority
164.12shall find that an economic development district is proper and desirable to establish and
164.13develop within the city.

164.14    Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
164.15read:
164.16    Subd. 1u. Obligations. In addition to other authority in this section, the council may
164.17issue certificates of indebtedness, bonds, or other obligations under this section in an amount
164.18not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit
164.19capital improvement program and for related costs, including the costs of issuance and sale
164.20of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates
164.21of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and
164.22after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other
164.23obligations in an additional amount not exceeding $43,900,000.
164.24EFFECTIVE DATE.This section is effective the day following final enactment and
164.25applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

164.26    Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
164.27read:
164.28    Subd. 6. Limitation; light rail transit. The council is prohibited from expending any
164.29proceeds from certificates of indebtedness, bonds, or other obligations under this section
164.30for project development, land acquisition, or construction to (1) establish a light rail transit
164.31line; or (2) expand a light rail transit line, including by extending a line or adding additional
164.32stops.
165.1EFFECTIVE DATE.This section applies to the expenditures made after the day
165.2following final enactment, but does not apply to amounts expended under binding contracts
165.3entered into before March 25, 2017. This section applies in the counties of Anoka, Carver,
165.4Dakota, Hennepin, Ramsey, Scott, and Washington.

165.5    Sec. 9. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
165.6    Subd. 2. Requirements waived. The requirements as to public sale shall not apply:
165.7(1) to obligations issued under the provisions of a home rule charter or of a law
165.8specifically authorizing a different method of sale, or authorizing them to be issued in such
165.9manner or on such terms and conditions as the governing body may determine;
165.10(2) to obligations sold by an issuer in an amount not exceeding the total sum of
165.11$1,200,000 in any 12-month period;
165.12(3) to obligations issued by a governing body other than a school board in anticipation
165.13of the collection of taxes or other revenues appropriated for expenditure in a single year, if
165.14sold in accordance with the most favorable of two or more proposals solicited privately;
165.15(4) to obligations sold to any board, department, or agency of the United States of
165.16America or of the state of Minnesota, in accordance with rules or regulations promulgated
165.17by such board, department, or agency;
165.18(5) to obligations issued to fund pension and retirement fund liabilities under section
165.19475.52, subdivision 6 , obligations issued with tender options under section 475.54,
165.20subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision
165.2113 , and any issue of obligations comprised in whole or in part of obligations bearing interest
165.22at a rate or rates which vary periodically referred to in section 475.56;
165.23(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
165.24authorized by law, if the governing body of the municipality, on the advice of bond counsel
165.25or special tax counsel, determines that interest on the obligations cannot be represented to
165.26be excluded from gross income for purposes of federal income taxation;
165.27(7) to obligations issued in the form of an installment purchase contract, lease purchase
165.28agreement, or other similar agreement;
165.29(8) to obligations sold under a bond reinvestment program; and
165.30(9) if the municipality has retained an independent financial advisor municipal adviser,
165.31obligations which the governing body determines shall be sold by private negotiation.

166.1ARTICLE 8

166.2MISCELLANEOUS

166.3    Section 1. [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.
166.4(a) Except as provided in paragraph (b), no appropriation or other state money, whether
166.5in the general or another fund, must be expended or used for any costs related to studying
166.6the feasibility of, planning for, designing, engineering, acquiring property or constructing
166.7facilities for or related to, or development or operation of intercity or interregional passenger
166.8rail facilities or operations between the city of Rochester or locations in its metropolitan
166.9area and any location in the metropolitan area, as defined in section 473.121, subdivision
166.102.
166.11(b) The restrictions under this section do not apply to funds obtained from contributions,
166.12grants, or other voluntary payments made by nongovernmental entities from private sources.
166.13EFFECTIVE DATE.This section is effective the day following final enactment.

166.14    Sec. 2. [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.
166.15(a) If a state official leases, loans, or otherwise makes available state lands, air rights,
166.16or any other state property for use in connection with passenger rail facilities, as described
166.17in section 16A.1246, the lease or other agreement must include or be secured by a security
166.18bond or equivalent guarantee that allows the state to recover any costs it incurs in connection
166.19with the rail project from a responsible third party or secure source of capital, if the passenger
166.20rail facilities are not constructed, do not go into operation, or are abandoned, whether or
166.21not the facilities began operations. The security bond or equivalent guarantee must remain
166.22in place for the term of lease, loan, or other agreement that makes state property available
166.23for use by the project. These costs include restoring state property to its original condition.
166.24(b) For purposes of this section, "state official" includes the commissioner, the
166.25commissioner of transportation, or any other state official with authority to enter a lease or
166.26other agreement providing for use by a nonstate entity of state property.
166.27EFFECTIVE DATE.This section is effective the day following final enactment.

166.28    Sec. 3. [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES
166.29PROHIBITED.
166.30Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
166.31may take property for the development or construction of or for facilities related to intercity
167.1or interregional passenger rail facilities or operations between the city of Rochester or
167.2locations in its metropolitan area and any location in the metropolitan area, as defined in
167.3section 473.121, subdivision 2.
167.4EFFECTIVE DATE.This section is effective the day following final enactment.

167.5    Sec. 4. Minnesota Statutes 2016, section 216B.36, is amended to read:
167.6216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.
167.7    Subdivision 1. Municipal authority to regulate public utilities. Any public utility
167.8furnishing the utility services enumerated in section 216B.02 or occupying streets, highways,
167.9or other public property within a municipality may be required to obtain a license, permit,
167.10right, or franchise in accordance with the terms, conditions, and limitations of regulatory
167.11acts of the municipality, including the placing of distribution lines and facilities underground.
167.12Under the license, permit, right, or franchise, the utility may be obligated by any municipality
167.13to pay to the municipality fees to raise revenue or defray increased municipal costs accruing
167.14as a result of utility operations, or both. A fee that raises revenue under a license, permit,
167.15right, or franchise agreement entered into or renewed on or after August 1, 2017, is subject
167.16to the requirements of subdivision 2. The fee may include but is not limited to a sum of
167.17money based upon gross operating revenues or gross earnings from its operations in the
167.18municipality so long as the public utility shall continue to operate in the municipality, unless
167.19upon request of the public utility it is expressly released from the obligation at any time by
167.20such municipality. Notwithstanding the definition of "public utility" in section 216B.02,
167.21subdivision 4 , a municipality may require payment of a fee under this section by a cooperative
167.22electric association organized under chapter 308A that furnishes utility services within the
167.23municipality. All existing licenses, permits, franchises, and other rights acquired by any
167.24public utility or municipality prior to April 11, 1974, including the payment of existing
167.25franchise fees, shall not be impaired or affected in any respect by the passage of this chapter,
167.26except with respect to matters of rate and service regulation, service area assignments,
167.27securities, and indebtedness that are vested in the jurisdiction of the commission by this
167.28chapter. However, in the event that a court of competent jurisdiction determines, or the
167.29parties by mutual agreement determine, that an existing license, permit, franchise, or other
167.30right has been abrogated or impaired by this chapter, or its execution, the municipality
167.31affected shall impose and the public utility shall collect an excise tax on the utility charges
167.32which from year to year yields an amount which is reasonably equivalent to that amount of
167.33revenue which then would be due as a fee, charges or other thing or service of value to the
167.34municipality under the franchise, license, or permit. The authorization shall be over and
168.1above taxing limitations including, but not limited to, those of section 477A.016. Franchises
168.2granted pursuant to this section shall be exempt from the provisions of chapter 80C. For
168.3purposes of this section, a public utility shall include a cooperative electric association.
168.4    Subd. 2. Five-year renewal; reverse referendum. (a) A municipality may impose a
168.5fee under subdivision 1 to raise revenue beyond what is needed to defray increased municipal
168.6costs due to utility operations for up to a five-year period, following the procedures in this
168.7subdivision.
168.8(b) The municipality must include in its ordinance or license, permit, or franchise
168.9agreement with the public utility what constitutes a cost to the city.
168.10(c) The municipality must identify in its ordinance or license, permit, or franchise
168.11agreement the uses of the portion of the fee that is for purposes other than to defray city
168.12costs. The municipality must publish a notice that explains:
168.13(1) the fee and its intended uses;
168.14(2) that the public utility is likely to pass the fee on to customers and how much that
168.15may increase customers' utility bills;
168.16(3) that alternatives to the revenue-raising portion of the fee are to raise the revenue
168.17from another source available to the municipality or forego planned uses of the revenue;
168.18and
168.19(4) what revenue raised from another source will cost those paying it.
168.20The notice must be published at least once each week for two consecutive weeks in the
168.21official publication of the municipality and must remain posted on the municipality's Web
168.22site throughout the notice period. The notice must also be sent to all affected ratepayers by
168.23either first class mail by the municipality or by including the notice in the affected ratepayers'
168.24billings.
168.25(d) Following publication and before imposing the fee, the municipality must provide
168.26an opportunity at its next regular meeting for public comment relating to the issue. No
168.27sooner than 90 days after the public comment opportunity, the municipality may proceed
168.28with imposing the fee, unless a petition is filed as provided in paragraph (e).
168.29(e) Within 90 days after the meeting held by the municipality at which public comment
168.30was accepted, a petition requesting a referendum may be filed with the chief clerical officer
168.31of the municipality. The petition must be signed by at least five percent of the registered
168.32voters in the municipality. The petition must meet the requirements of the secretary of state,
168.33as provided in section 204B.071, and any rules adopted to implement that section. If the
169.1petition is sufficient, the question of whether the municipality may impose a fee that raises
169.2revenue as provided in subdivision 1 must be placed on the ballot at the next general election.
169.3If a majority of the voters voting on the question votes in favor of using the fee to raise
169.4revenue, the municipality may proceed with imposing the fee.
169.5(f) If a license, permit, right, or franchise agreement is entered into or renewed before
169.6August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect after
169.7August 1, 2022, the municipality must follow the procedures in this subdivision to provide
169.8notice, a public hearing, and opportunity for a petition for a referendum by August 1, 2022.
169.9(g) Except as provided in paragraph (f), this subdivision applies to a license, permit,
169.10right, or franchise agreement entered into or renewed on or after August 1, 2017.
169.11EFFECTIVE DATE.This section is effective the day following final enactment.

169.12    Sec. 5. [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL
169.13INSURANCE REQUIRED.
169.14    Subdivision 1. Scope. (a) This section applies to any person that seeks a federal or state
169.15permit or other formal legal authorization to construct or operate a passenger rail project
169.16with an estimated capital cost exceeding $1,000,000,000.
169.17(b) This section does not apply to a person whose only action within the scope of
169.18paragraph (a) is an application for a building permit.
169.19    Subd. 2. Definitions. (a) For purposes of this section, unless the context clearly indicates
169.20otherwise, the following definitions apply.
169.21(b) "Commissioner" means the commissioner of the Pollution Control Agency.
169.22(c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
169.23guarantee that provides assurance of the project's ability to pay claims for any liability under
169.24chapter 115B or similar provisions of common law or federal law resulting from construction
169.25or operation of the passenger rail project.
169.26(d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway
169.27located within or partly within Minnesota intended to provide passenger service, regardless
169.28of whether freight service is also provided, by a common carrier other than a federal or state
169.29government unit, a political subdivision of the state, or the National Railroad Passenger
169.30Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.
169.31(e) "Person" includes a corporation, limited liability company, partnership, other entity,
169.32or an individual.
170.1    Subd. 3. Environmental insurance required. (a) Any person subject to this section
170.2must obtain and maintain insurance that is adequate to cover potential claims and meets the
170.3other requirements of this section, as approved by the commissioner under paragraph (b).
170.4The insurance must not contain dollar limits on liability, or if it does contain a dollar limit
170.5the limit must be not less than a reasonable estimate of the potential exposure of the project
170.6for environmental remediation or impairment damages. Any dollar limit must be adjusted
170.7if the scope, size, or cost of the project increases materially. The insurance must cover any
170.8liability incurred during and after the construction and operation of the project and must
170.9not contain exclusions, limitations, or other restrictions that are not standard in comprehensive
170.10environmental remediation insurance or in environmental impairment insurance, as
170.11applicable.
170.12(b) In order to satisfy the requirements of this section, the commissioner must determine
170.13that the insurance is adequate and that it meets the other requirements of this section. The
170.14commissioner may require that the project provide any supporting documentation to
170.15determine that insurance is adequate and meets the other requirements of this section and
170.16that the project has the financial ability to maintain insurance during the project's operations.
170.17EFFECTIVE DATE.This section is effective for passenger rail projects for which
170.18application for a permit or other formal legal authorization to construct is made after the
170.19day following final enactment.

170.20    Sec. 6. Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read:
170.21    Subd. 7. Refund. "Refund" means an individual income tax refund or political
170.22contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
170.23chapter 290A, or a sustainable forest payment to a claimant under chapter 290C.
170.24For purposes of this chapter, lottery prizes, as set forth in section 349A.08, subdivision
170.258 , and amounts granted to persons by the legislature on the recommendation of the joint
170.26senate-house of representatives Subcommittee on Claims shall be treated as refunds.
170.27In the case of a joint property tax refund payable to spouses under chapter 290A, the
170.28refund shall be considered as belonging to each spouse in the proportion of the total refund
170.29that equals each spouse's proportion of the total income determined under section 290A.03,
170.30subdivision 3 . In the case of a joint income tax refund under chapter 289A, the refund shall
170.31be considered as belonging to each spouse in the proportion of the total refund that equals
170.32each spouse's proportion of the total taxable income determined under section 290.01,
170.33subdivision 29 . The commissioner shall remit the entire refund to the claimant agency,
170.34which shall, upon the request of the spouse who does not owe the debt, determine the amount
171.1of the refund belonging to that spouse and refund the amount to that spouse. For court fines,
171.2fees, and surcharges and court-ordered restitution under section 611A.04, subdivision 2,
171.3the notice provided by the commissioner of revenue under section 270A.07, subdivision 2,
171.4paragraph (b), serves as the appropriate legal notice to the spouse who does not owe the
171.5debt.
171.6EFFECTIVE DATE.This section is effective for political contribution refund claims
171.7based on contributions made on or after July 1, 2017.

171.8    Sec. 7. Minnesota Statutes 2016, section 287.08, is amended to read:
171.9287.08 TAX, HOW PAYABLE; RECEIPTS.
171.10    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
171.11county in this state in which the real property or some part is located at or before the time
171.12of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
171.13the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
171.14any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
171.15be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
171.16taxation the endorsement shall, in substance, be "exempt from registration tax." In either
171.17case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
171.18whether a claim of exemption should be allowed, the tax must be paid as in the case of a
171.19taxable mortgage. For documents submitted electronically, the endorsements and tax amount
171.20shall be affixed electronically and no signature by the treasurer will be required. The actual
171.21payment method must be arranged in advance between the submitter and the receiving
171.22county.
171.23    (b) The county treasurer may refund in whole or in part any mortgage registry tax
171.24overpayment if a written application by the taxpayer is submitted to the county treasurer
171.25within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
171.26of the application, the taxpayer may bring an action in Tax Court in the county in which
171.27the tax was paid at any time after the expiration of six months from the time that the
171.28application was submitted. A denial of refund may be appealed within 60 days from the
171.29date of the denial by bringing an action in Tax Court in the county in which the tax was
171.30paid. The action is commenced by the serving of a petition for relief on the county treasurer,
171.31and by filing a copy with the court. The county attorney shall defend the action. The county
171.32treasurer shall notify the treasurer of each county that has or would receive a portion of the
171.33tax as paid.
172.1    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
172.2by the court, the county treasurer of each county that actually received a portion of the tax
172.3shall immediately pay a proportionate share of three percent of the refund using any available
172.4county funds. The county treasurer of each county that received, or would have received,
172.5a portion of the tax shall also pay their county's proportionate share of the remaining 97
172.6percent of the court-ordered refund on or before the 20th day of the following month using
172.7solely the mortgage registry tax funds that would be paid to the commissioner of revenue
172.8on that date under section 287.12. If the funds on hand under this procedure are insufficient
172.9to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
172.10which the action was brought shall file a claim with the commissioner of revenue under
172.11section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
172.12remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
172.13    (d) When any mortgage covers real property located in more than one county in this
172.14state the total tax must be paid to the treasurer of the county where the mortgage is first
172.15presented for recording, and the payment must be receipted as provided in paragraph (a).
172.16If the principal debt or obligation secured by such a multiple county mortgage exceeds
172.17$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the
172.18commissioner of revenue and the nonstate portion of the tax must be divided and paid over
172.19by the county treasurer receiving it commissioner of revenue, on or before the 20th day of
172.20each month after receipt, to the county or counties entitled in the ratio that the estimated
172.21market value of the real property covered by the mortgage in each county bears to the
172.22estimated market value of all the real property in this state described in the mortgage. In
172.23making the division and payment the county treasurer commissioner of revenue shall send
172.24a statement giving the description of the real property described in the mortgage and the
172.25estimated market value of the part located in each county. For this purpose, the treasurer of
172.26any county commissioner of revenue may require the treasurer of any other county to certify
172.27to the former the estimated market value of any tract of real property in any mortgage in
172.28the county.
172.29    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
172.30may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
172.31collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
172.32has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
172.33collected for that purpose and the mortgagor is relieved of any further obligation to pay the
172.34tax as to the amount collected by the mortgagee for this purpose.
172.35EFFECTIVE DATE.This section is effective for tax collected after June 30, 2017.

173.1    Sec. 8. Minnesota Statutes 2016, section 289A.50, subdivision 1, is amended to read:
173.2    Subdivision 1. General right to refund. (a) Subject to the requirements of this section
173.3and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
173.4who files a written claim for refund will be refunded or credited the overpayment of the tax
173.5determined by the commissioner to be erroneously paid.
173.6(b) The claim must specify the name of the taxpayer, the date when and the period for
173.7which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
173.8was erroneously paid, the grounds on which a refund is claimed, and other information
173.9relative to the payment and in the form required by the commissioner. An income tax, estate
173.10tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
173.11a claim for refund.
173.12(c) When, in the course of an examination, and within the time for requesting a refund,
173.13the commissioner determines that there has been an overpayment of tax, the commissioner
173.14shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
173.15overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
173.16If the amount of the overpayment is less than $1, the commissioner is not required to refund.
173.17In these situations, the commissioner does not have to make written findings or serve notice
173.18by mail to the taxpayer.
173.19(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
173.20care exceeds the tax against which the credit is allowable, the amount of the excess is
173.21considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
173.22considered an overpayment. The requirements of section 270C.33 do not apply to the
173.23refunding of such an overpayment shown on the original return filed by a taxpayer.
173.24(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
173.25penalties, and interest reported in the return of the entertainment entity or imposed by section
173.26290.9201 , the excess must be refunded to the entertainment entity. If the excess is less than
173.27$1, the commissioner need not refund that amount.
173.28(f) If the surety deposit required for a construction contract exceeds the liability of the
173.29out-of-state contractor, the commissioner shall refund the difference to the contractor.
173.30(g) An action of the commissioner in refunding the amount of the overpayment does not
173.31constitute a determination of the correctness of the return of the taxpayer.
173.32(h) There is appropriated from the general fund to the commissioner of revenue the
173.33amount necessary to pay refunds allowed under this section.
174.1EFFECTIVE DATE.This section is effective for political contribution refund claims
174.2based on contributions made on or after July 1, 2017.

174.3    Sec. 9. Minnesota Statutes 2016, section 290.01, subdivision 6, is amended to read:
174.4    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to a
174.5tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
174.6"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
174.7EFFECTIVE DATE.This section is effective for political contribution refund claims
174.8based on contributions made on or after July 1, 2017.

174.9    Sec. 10. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:
174.10    Subdivision 1. Guaranteed distribution. (a) Except as provided under paragraph (c),
174.11the distribution of the taconite production tax as provided in section 298.28, subdivisions
174.123 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:
174.13(1) the amount distributed pursuant to this section and section 298.28, with respect to
174.141983 production if the production for the year prior to the distribution year is no less than
174.1542,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
174.16of the distributions shall be reduced proportionately at the rate of two percent for each
174.171,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
174.18tons; or
174.19(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
174.20(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
174.21section and section 298.28, with respect to 1983 production;
174.22(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
174.23and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
174.24with respect to 1983 production provided that the aid guarantee for distributions under
174.25section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
174.26for production years 2014 and thereafter.
174.27(b) The distribution of the taconite production tax as provided in section 298.28,
174.28subdivision 2 , shall equal the following amount:
174.29(1) if the production for the year prior to the distribution year is at least 42,000,000
174.30taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
174.31to 1999 production; or
175.1(2) if the production for the year prior to the distribution year is less than 42,000,000
175.2taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
175.3to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
175.4tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
175.5(c) The distribution of the taconite production tax under section 298.28, subdivision 3,
175.6paragraph (a), guaranteed under this section is equal to the amount distributed under section
175.7298.28, with respect to 1983 production.
175.8EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.

175.9    Sec. 11. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:
175.10    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under
175.11subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account
175.12to be distributed as provided in section 298.282. The amount allocated to the taconite
175.13municipal aid account must be annually increased in the same proportion as the increase in
175.14the implicit price deflator as provided in section 298.24, subdivision 1.
175.15    (b) An amount must be allocated to towns or cities that is annually certified by the county
175.16auditor of a county containing a taconite tax relief area as defined in section 273.134,
175.17paragraph (b) , within which there is (1) an organized township if, as of January 2, 1982,
175.18more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
175.19city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
175.20consists of iron ore.
175.21    (c) The amount allocated under paragraph (b) will be the portion of a township's or city's
175.22certified levy equal to the proportion of (1) the difference between 50 percent of January
175.232, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
175.24assessed value in the case of a city and its current assessed value to (2) the sum of its current
175.25assessed value plus the difference determined in (1), provided that the amount distributed
175.26shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
175.27city. For purposes of this limitation, population will be determined according to the 1980
175.28decennial census conducted by the United States Bureau of the Census. If the current assessed
175.29value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
175.30or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
175.31assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
175.32value," when used in reference to years other than 1980 or 1982, means the appropriate net
175.33tax capacities multiplied by 10.2.
176.1    (d) In addition to other distributions under this subdivision, three cents per taxable ton
176.2for distributions in 2009 must be allocated for distribution to towns that are entirely located
176.3within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution
176.4in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
176.5amount must be annually increased in the same proportion as the increase in the implicit
176.6price deflator as provided in section 298.24, subdivision 1. The amount available under this
176.7paragraph will be distributed to eligible towns on a per capita basis, provided that no town
176.8may receive more than $50,000 in any year under this paragraph. Any amount of the
176.9distribution that exceeds the $50,000 limitation for a town under this paragraph must be
176.10redistributed on a per capita basis among the other eligible towns, to whose distributions
176.11do not exceed $50,000.
176.12EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.

176.13    Sec. 12. [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL
176.14PROJECTS.
176.15(a) Except as provided in paragraph (b), a governmental unit must not spend or use any
176.16money for any costs related to studying the feasibility of, planning for, designing,
176.17engineering, acquiring property or constructing facilities for or related to, or development
176.18or operation of intercity or interregional passenger rail facilities or operations between the
176.19city of Rochester, or locations in its metropolitan area, and any location in the metropolitan
176.20area, as defined in section 473.121, subdivision 2.
176.21(b) The restrictions under this section do not apply to:
176.22(1) funds the governmental unit obtains from contributions, grants, or other voluntary
176.23payments made by nongovernmental entities from private sources; and
176.24(2) expenditures for costs of public infrastructure, including public utilities, parking
176.25facilities, a multimode transit hub, or similar projects located within the area of the
176.26development district, as defined under section 469.40, and reflected in the development
176.27plan adopted before the enactment of this section, that are intended to serve, and that are
176.28made following the completed construction and commencement of operation of privately
176.29financed and operated intercity or interregional passenger rail facilities.
176.30(c) For purposes of this section, "governmental unit" means any of the following, located
176.31in development regions 10 and 11, as designated under section 462.385, subdivision 1:
176.32(1) statutory or home rule charter city;
176.33(2) county;
177.1(3) special taxing district, as defined in section 275.066;
177.2(4) metropolitan planning organization; or
177.3(5) destination medical center entity, which includes the Destination Medical Center
177.4Corporation and agency, as those terms are defined in section 469.40, and any successor or
177.5related entity.
177.6EFFECTIVE DATE.This section is effective the day following final enactment without
177.7local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).

177.8    Sec. 13. Minnesota Statutes 2016, section 462.353, subdivision 4, is amended to read:
177.9    Subd. 4. Fees. (a) A municipality may prescribe fees sufficient to defray the costs incurred
177.10by it in reviewing, investigating, and administering an application for an amendment to an
177.11official control established pursuant to sections 462.351 to 462.364 or an application for a
177.12permit or other approval required under an official control established pursuant to those
177.13sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance.
177.14Fees must be fair, reasonable, and proportionate and have a nexus to the actual cost of the
177.15service for which the fee is imposed.
177.16(b) A municipality must adopt management and accounting procedures to ensure that
177.17fees are maintained and used only for the purpose for which they are collected. Upon request,
177.18a municipality must explain the basis of its fees.
177.19(c) Except as provided in this paragraph, a fee ordinance or amendment to a fee ordinance
177.20is effective January 1 after its adoption. A municipality may adopt a fee ordinance or an
177.21amendment to a fee ordinance with an effective date other than the next January 1, but the
177.22ordinance or amendment does not apply if an application for final approval has been
177.23submitted to the municipality.
177.24(d) If a dispute arises over a specific fee imposed by a municipality related to a specific
177.25application, the person aggrieved by the fee may appeal under section 462.361, provided
177.26that the appeal must be brought within 60 days after approval of an application under this
177.27section and deposit of the fee into escrow. A municipality must not condition the approval
177.28of any proposed subdivision or development on an agreement to waive the right to challenge
177.29the validity of a fee. An approved application may proceed as if the fee had been paid,
177.30pending a decision on the appeal. This paragraph must not be construed to preclude the
177.31municipality from conditioning approval of any proposed subdivision or development on
177.32an agreement to waive a challenge to the cost associated with municipally installed
177.33improvements of the type described in section 429.021.
178.1(e) A municipality may not impose a fee to review or investigate a use if the use is
178.2allowed without any permit, approval, or amendment to an official control. This limitation
178.3does not apply to a fee for a review or investigation:
178.4(1) of compliance with health and safety requirements; or
178.5(2) that results in finding a violation, unless the finding is overturned on appeal or a
178.6penalty, fine, or other charge is imposed for the violation.
178.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to fees
178.8imposed on or after that date.

178.9    Sec. 14. [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.
178.10(a) Except as provided in paragraph (b), the council must not spend or use any money
178.11for any costs related to studying the feasibility of, planning for, designing, engineering,
178.12acquiring property or constructing facilities for or related to, or development or operation
178.13of intercity or interregional passenger rail facilities or operations between the city of
178.14Rochester or locations in its metropolitan area and any location in the metropolitan area, as
178.15defined in section 473.121, subdivision 2.
178.16(b) The restrictions under this section do not apply to funds the council obtains from
178.17contributions, grants, or other voluntary payments made by nongovernmental entities from
178.18private sources.
178.19EFFECTIVE DATE; APPLICATION.This section is effective the day following
178.20final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
178.21Scott, and Washington.

178.22    Sec. 15. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
178.23TACONITE TAX PROCEEDS.
178.24The commissioner of Iron Range resources and rehabilitation may use unspent amounts
178.25allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19),
178.26remaining as of May 22, 2016, for the specific purposes identified in that section.
178.27Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
178.28other law to the contrary, interest accrued on this amount shall also be distributed to the
178.29recipient. Amounts under this section are available until expended and do not lapse or cancel
178.30under Minnesota Statutes, section 16A.28.
178.31EFFECTIVE DATE.This section is effective retroactively from May 22, 2016.

179.1    Sec. 16. CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.
179.2    Subdivision 1. Authorization. The governing body of the city of Taylors Falls may
179.3designate all or any part of the city as a development zone under Minnesota Statutes, section
179.4469.1731.
179.5    Subd. 2. Application of general law. (a) Minnesota Statutes, sections 469.1731 to
179.6469.1735, apply to the development zones designated under this section. The governing
179.7body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731
179.8to 469.1735, including powers that apply outside of the zones.
179.9(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
179.10469.1735, subdivision 2, is appropriated to the commissioner of revenue.
179.11    Subd. 3. Allocation of state tax reductions. (a) The cumulative total amount of the
179.12state portion of the tax reductions for all years of the program under Minnesota Statutes,
179.13sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000. To
179.14provide the authority under this section, the amount of the allocation for border cities under
179.15Minnesota Statutes, section 469.169, in this act is reduced by $100,000.
179.16(b) This allocation may be used for tax reductions provided in Minnesota Statutes, section
179.17469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735,
179.18subdivision 3, but only if the governing body of the city of Taylors Falls determines that
179.19the tax reduction or offset is necessary to enable a business to expand within the city or to
179.20attract a business to the city.
179.21(c) The commissioner of revenue may waive the limit under this subdivision using the
179.22same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12,
179.23paragraph (b).
179.24EFFECTIVE DATE.This section is effective July 1, 2017, and does not require local
179.25approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

179.26    Sec. 17. REPEALER.
179.27(a) Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2;
179.28and 290.06, subdivision 23, and Minnesota Rules, part 4503.1400, subpart 4, are repealed.
179.29(b) Minnesota Statutes 2016, section 477A.20, is repealed.
179.30EFFECTIVE DATE.Paragraph (a) is effective for contributions made after June 30,
179.312017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the day following
179.32final enactment.