1.1                          A bill for an act
  1.2             relating to the financing and operation of government 
  1.3             in this state; adopting federal income tax law 
  1.4             changes; modifying certain tax rates, credits, 
  1.5             refunds, bases, and exemptions; modifying property tax 
  1.6             exemption, valuation, and classification provisions; 
  1.7             providing for deduction of property tax refunds from 
  1.8             property taxes; modifying or restricting certain 
  1.9             requirements or uses of tax increment financing; 
  1.10            modifying certain motor vehicle registration taxes; 
  1.11            establishing a sales tax advisory council; authorizing 
  1.12            certain local taxes, special districts and other local 
  1.13            authority; modifying provisions relating to local 
  1.14            excise taxes; modifying certain duties imposed on 
  1.15            local units of government and the department of 
  1.16            revenue; authorizing issuance of bonds and tax 
  1.17            anticipation certificates; modifying certain taconite 
  1.18            occupation and production provisions; modifying the 
  1.19            duties of the board of government innovation and 
  1.20            cooperation; changing certain aids to local 
  1.21            governments; modifying revenue recapture rules; 
  1.22            changing the property tax treatment of certain wind 
  1.23            property; adjusting the amount of the budget reserve; 
  1.24            providing for dedication of certain revenues; making 
  1.25            technical changes, corrections, and clarifications; 
  1.26            making tax policy, collection, and administrative 
  1.27            changes; requiring studies; imposing penalties; 
  1.28            appropriating money; amending Minnesota Statutes 1994, 
  1.29            sections 14.61; 14.62, by adding a subdivision; 
  1.30            15.039, by adding a subdivision; 16A.152, subdivision 
  1.31            1; 60A.15, subdivisions 1 and 12; 60A.199, 
  1.32            subdivisions 8 and 10; 69.021, subdivisions 2 and 5; 
  1.33            124.2131, by adding a subdivision; 124.918, 
  1.34            subdivisions 1 and 2; 168.012, subdivision 9; 168.013, 
  1.35            subdivision 1a; 168.017, subdivision 3, and by adding 
  1.36            a subdivision; 216C.01, subdivisions 1a and 1b; 
  1.37            246.18, subdivision 4, as amended, and by adding a 
  1.38            subdivision; 270.47; 270.48; 270.485; 270.494; 270.50; 
  1.39            270.52; 270.53; 270.69, subdivision 10; 270.72, 
  1.40            subdivisions 1, 2, and 3; 270.79, subdivision 4; 
  1.41            270A.03, subdivision 7; 270A.07, subdivision 2; 
  1.42            270A.09, by adding a subdivision; 270A.11; 270B.03, 
  1.43            subdivision 1; 270B.12, subdivision 2, and by adding a 
  1.44            subdivision; 270B.14, subdivision 11; 272.02, 
  1.45            subdivision 1; 272.115, subdivision 1; 272.121, 
  1.46            subdivision 2; 273.11, subdivision 16; 273.124, 
  2.1             subdivisions 1, 3, 6, 11, and 13; 273.13, subdivisions 
  2.2             24 and 25; 273.1398, subdivision 1, and by adding a 
  2.3             subdivision; 273.1399, subdivisions 1, 2, 6, and by 
  2.4             adding subdivisions; 273.17, subdivision 2; 273.37, by 
  2.5             adding a subdivision; 274.01, subdivision 1; 274.14; 
  2.6             275.065, subdivisions 1, 3, and 6; 275.07, subdivision 
  2.7             1; 275.08, subdivision 1b; 276.04, subdivision 2; 
  2.8             276.09; 276.111; 276.131; 279.01, subdivision 1, and 
  2.9             by adding a subdivision; 284.28, subdivision 2; 
  2.10            289A.18, subdivisions 2 and 4; 289A.20, subdivision 2; 
  2.11            289A.26, subdivision 2a; 289A.38, subdivision 7; 
  2.12            289A.40, subdivision 1; 289A.43; 289A.50, subdivision 
  2.13            1, and by adding a subdivision; 289A.55, subdivision 
  2.14            7; 289A.60, subdivisions 2, 12, and by adding a 
  2.15            subdivision; 290.01, subdivisions 7b and 19; 290.015, 
  2.16            subdivision 1; 290.032, subdivisions 1 and 2; 290.067, 
  2.17            subdivision 1, as amended; 290.191, subdivisions 1, 5, 
  2.18            and 6; 290.92, subdivisions 1 and 23; 290.9201, 
  2.19            subdivision 3; 290A.03, subdivisions 6 and 13; 
  2.20            290A.04, subdivisions 2h, 3, and 6; 290A.07; 290A.15; 
  2.21            290A.18; 294.09, subdivisions 1 and 4; 295.50, 
  2.22            subdivisions 1 and 4; 295.53, subdivisions 1, 2, and 
  2.23            5; 295.55, by adding a subdivision; 295.57; 296.01, 
  2.24            subdivisions 30, 34, and by adding subdivisions; 
  2.25            296.02, subdivisions 1, 1a, and 1b; 296.025, 
  2.26            subdivisions 1, 1a, and by adding a subdivision; 
  2.27            296.0261, by adding a subdivision; 296.12, 
  2.28            subdivisions 3, 4, and 11; 296.141, subdivisions 1, 2, 
  2.29            and 6; 296.17, subdivisions 1, 3, 5, and 11; 296.18, 
  2.30            subdivisions 1, 2, and 5; 297.08, subdivisions 1 and 
  2.31            3; 297.35, subdivision 1; 297.43, subdivision 2; 
  2.32            297A.01, subdivision 3, and by adding a subdivision; 
  2.33            297A.02, subdivision 4; 297A.135, subdivision 1; 
  2.34            297A.15, by adding a subdivision; 297A.25, 
  2.35            subdivisions 9, 11, 57, 59, and by adding 
  2.36            subdivisions; 297A.45; 297B.01, subdivision 5; 
  2.37            297B.02, subdivision 3; 297B.025, subdivision 2; 
  2.38            297B.032; 297C.02, subdivision 2; 297C.07; 297C.14, 
  2.39            subdivision 2; 297E.02, subdivisions 1, 6, and 11; 
  2.40            297E.031, subdivision 1; 297E.11, subdivision 4; 
  2.41            297E.12, subdivision 2; 297E.13, subdivision 5; 
  2.42            298.01, subdivision 4; 298.227; 298.24, subdivision 1; 
  2.43            298.25; 298.28, subdivision 9a; 298.296, subdivision 
  2.44            4; 298.75, subdivision 2; 299F.26, subdivisions 1 and 
  2.45            4; 325D.33, subdivision 4; 349.12, subdivision 25; 
  2.46            349.163, subdivision 5; 349A.10, subdivision 5; 
  2.47            375.192, by adding a subdivision; 375.83; 428A.01, 
  2.48            subdivision 5; 428A.03, by adding a subdivision; 
  2.49            428A.05; 465.795, subdivision 7; 465.796, subdivision 
  2.50            2; 465.797, subdivision 5; 465.798; 465.799; 465.801; 
  2.51            465.81, subdivision 1; 465.82, subdivision 2; 465.84; 
  2.52            465.85; 465.87; 469.169, subdivision 9, and by adding 
  2.53            a subdivision; 469.174, subdivisions 4, 19, 21, and by 
  2.54            adding subdivisions; 469.175, subdivisions 1, 3, 5, 6, 
  2.55            and 6a; 469.176, subdivisions 4b, 4c, 7, and by adding 
  2.56            a subdivision; 469.1763, subdivisions 2 and 4; 
  2.57            469.177, subdivisions 1, 1a, 2, 6, 9, and by adding a 
  2.58            subdivision; 469.1771, subdivision 1; 473.446, 
  2.59            subdivision 1; 473.711, subdivision 2; 477A.011, 
  2.60            subdivision 36; 477A.0121, subdivision 4; 477A.0132; 
  2.61            and 477A.03, subdivision 2; Laws 1985, chapter 302, 
  2.62            section 2, subdivision 1, as amended; Laws 1986, 
  2.63            chapter 400, section 44; Laws 1991, chapter 291, 
  2.64            article 8, section 28, subdivision 1; Laws 1992, 
  2.65            chapter 511, article 2, sections 45, subdivisions 1, 
  2.66            7, and by adding a subdivision; and 46, subdivisions 
  2.67            1, 7, and by adding a subdivision; Laws 1993, chapter 
  2.68            375, article 5, sections 40, subdivision 3; and 44; 
  2.69            Laws 1994, chapter 587, articles 1, section 27; 3, 
  2.70            section 21; 5, section 27; and 9, section 10, 
  2.71            subdivision 6; proposing coding for new law in 
  3.1             Minnesota Statutes, chapters 16A; 270; 272; 276; 282; 
  3.2             290A; 296; 340A; 410; 465; 469; and 473; repealing 
  3.3             Minnesota Statutes 1994, sections 60A.15, subdivision 
  3.4             7; 168.013, subdivision 1j; 245.48; 270.49; 270.493; 
  3.5             270.70, subdivisions 8, 9, and 10; 290A.04, 
  3.6             subdivision 2i; 296.0261; 297A.136; 297A.212; 297A.38; 
  3.7             and 469.175, subdivision 7a; Laws 1988, chapter 698, 
  3.8             section 5; and Laws 1989, First Special Session 
  3.9             chapter 1, article 7, section 9. 
  3.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.11                             ARTICLE 1
  3.12                     INCOME AND FRANCHISE TAXES
  3.13     Section 1.  Minnesota Statutes 1994, section 289A.50, is 
  3.14  amended by adding a subdivision to read: 
  3.15     Subd. 10.  [LIMITATION ON REFUND.] If an addition to 
  3.16  federal taxable income under section 290.01, subdivision 19a, 
  3.17  clause (1), is judicially determined to discriminate against 
  3.18  interstate commerce, the legislature intends that the 
  3.19  discrimination be remedied by adding interest on obligations of 
  3.20  Minnesota governmental units and Indian tribes to federal 
  3.21  taxable income.  This subdivision applies beginning with the 
  3.22  taxable years that begin during the calendar year in which the 
  3.23  court's decision is final.  Other remedies apply for previous 
  3.24  taxable years. 
  3.25     Sec. 2.  Minnesota Statutes 1994, section 290.01, 
  3.26  subdivision 19, is amended to read: 
  3.27     Subd. 19.  [NET INCOME.] The term "net income" means the 
  3.28  federal taxable income, as defined in section 63 of the Internal 
  3.29  Revenue Code of 1986, as amended through the date named in this 
  3.30  subdivision, incorporating any elections made by the taxpayer in 
  3.31  accordance with the Internal Revenue Code in determining federal 
  3.32  taxable income for federal income tax purposes, and with the 
  3.33  modifications provided in subdivisions 19a to 19f. 
  3.34     In the case of a regulated investment company or a fund 
  3.35  thereof, as defined in section 851(a) or 851(h) of the Internal 
  3.36  Revenue Code, federal taxable income means investment company 
  3.37  taxable income as defined in section 852(b)(2) of the Internal 
  3.38  Revenue Code, except that:  
  3.39     (1) the exclusion of net capital gain provided in section 
  3.40  852(b)(2)(A) of the Internal Revenue Code does not apply; and 
  4.1      (2) the deduction for dividends paid under section 
  4.2   852(b)(2)(D) of the Internal Revenue Code must be applied by 
  4.3   allowing a deduction for capital gain dividends and 
  4.4   exempt-interest dividends as defined in sections 852(b)(3)(C) 
  4.5   and 852(b)(5) of the Internal Revenue Code.  
  4.6      The net income of a real estate investment trust as defined 
  4.7   and limited by section 856(a), (b), and (c) of the Internal 
  4.8   Revenue Code means the real estate investment trust taxable 
  4.9   income as defined in section 857(b)(2) of the Internal Revenue 
  4.10  Code.  
  4.11     The net income of a designated settlement fund as defined 
  4.12  in section 468B(d) of the Internal Revenue Code means the gross 
  4.13  income as defined in section 468B(b) of the Internal Revenue 
  4.14  Code. 
  4.15     The Internal Revenue Code of 1986, as amended through 
  4.16  December 31, 1986, shall be in effect for taxable years 
  4.17  beginning after December 31, 1986.  The provisions of sections 
  4.18  10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 
  4.19  10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 
  4.20  Omnibus Budget Reconciliation Act of 1987, Public Law Number 
  4.21  100-203, the provisions of sections 1001, 1002, 1003, 1004, 
  4.22  1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 
  4.23  1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 
  4.24  6277, and 6282 of the Technical and Miscellaneous Revenue Act of 
  4.25  1988, Public Law Number 100-647, and the provisions of sections 
  4.26  7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 
  4.27  1989, Public Law Number 101-239, shall be effective at the time 
  4.28  they become effective for federal income tax purposes.  
  4.29     The Internal Revenue Code of 1986, as amended through 
  4.30  December 31, 1987, shall be in effect for taxable years 
  4.31  beginning after December 31, 1987.  The provisions of sections 
  4.32  4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 
  4.33  6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 
  4.34  6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 
  4.35  Act of 1988, Public Law Number 100-647, the provisions of 
  4.36  sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 
  5.1   of 1989, Public Law Number 101-239, and the provisions of 
  5.2   section 11702 of the Revenue Reconciliation Act of 1990, Public 
  5.3   Law Number 101-508, shall become effective at the time they 
  5.4   become effective for federal tax purposes.  
  5.5      The Internal Revenue Code of 1986, as amended through 
  5.6   December 31, 1988, shall be in effect for taxable years 
  5.7   beginning after December 31, 1988.  The provisions of sections 
  5.8   7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 
  5.9   7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 
  5.10  7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 
  5.11  Reconciliation Act of 1989, Public Law Number 101-239, the 
  5.12  provision of section 1401 of the Financial Institutions Reform, 
  5.13  Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 
  5.14  and the provisions of sections 11701 and 11703 of the Revenue 
  5.15  Reconciliation Act of 1990, Public Law Number 101-508, shall 
  5.16  become effective at the time they become effective for federal 
  5.17  tax purposes.  
  5.18     The Internal Revenue Code of 1986, as amended through 
  5.19  December 31, 1989, shall be in effect for taxable years 
  5.20  beginning after December 31, 1989.  The provisions of sections 
  5.21  11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 
  5.22  the Revenue Reconciliation Act of 1990, Public Law Number 
  5.23  101-508, and the provisions of sections 13224 and 13261 of the 
  5.24  Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  5.25  103-66, shall become effective at the time they become effective 
  5.26  for federal purposes.  
  5.27     The Internal Revenue Code of 1986, as amended through 
  5.28  December 31, 1990, shall be in effect for taxable years 
  5.29  beginning after December 31, 1990. 
  5.30     The provisions of section 13431 of the Omnibus Budget 
  5.31  Reconciliation Act of 1993, Public Law Number 103-66, shall 
  5.32  become effective at the time they became effective for federal 
  5.33  purposes.  
  5.34     The Internal Revenue Code of 1986, as amended through 
  5.35  December 31, 1991, shall be in effect for taxable years 
  5.36  beginning after December 31, 1991.  
  6.1      The provisions of sections 1936 and 1937 of the 
  6.2   Comprehensive National Energy Policy Act of 1992, Public Law 
  6.3   Number 102-486, and the provisions of sections 13101, 13114, 
  6.4   13122, 13141, 13150, 13151, 13174, 13239, 13301, and 13442 of 
  6.5   the Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  6.6   103-66, shall become effective at the time they become effective 
  6.7   for federal purposes.  
  6.8      The Internal Revenue Code of 1986, as amended through 
  6.9   December 31, 1992, shall be in effect for taxable years 
  6.10  beginning after December 31, 1992.  
  6.11     The provisions of sections 13116, 13121, 13206, 13210, 
  6.12  13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of 
  6.13  the Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  6.14  103-66, shall become effective at the time they become effective 
  6.15  for federal purposes. 
  6.16     The Internal Revenue Code of 1986, as amended through 
  6.17  December 31, 1993, shall be in effect for taxable years 
  6.18  beginning after December 31, 1993. 
  6.19     The provision of section 741 of Legislation to Implement 
  6.20  Uruguay Round of General Agreement on Tariffs and Trade, Public 
  6.21  Law Number 103-465, and the provisions of sections 1, 2, and 3, 
  6.22  of the Self-Employed Health Insurance Act of 1995, Public Law 
  6.23  Number 104-7, shall become effective at the time they become 
  6.24  effective for federal purposes. 
  6.25     The Internal Revenue Code of 1986, as amended through 
  6.26  December 31, 1994, shall be in effect for taxable years 
  6.27  beginning after December 31, 1994. 
  6.28     Except as otherwise provided, references to the Internal 
  6.29  Revenue Code in subdivisions 19a to 19g mean the code in effect 
  6.30  for purposes of determining net income for the applicable year. 
  6.31     Sec. 3.  [FEDERAL CHANGES.] 
  6.32     The changes made by sections 721, 722, 723, and 744 of 
  6.33  Legislation to Implement Uruguay Round of General Agreement on 
  6.34  Tariffs and Trade, Public Law Number 103-465 and section 4 of 
  6.35  the Self-Employed Health Insurance Act of 1995, Public Law 
  6.36  Number 104-7, which affect the computation of the Minnesota 
  7.1   working family credit under Minnesota Statutes, section 
  7.2   290.0671, subdivision 1, and the computation of the substantial 
  7.3   understatement of liability penalty of Minnesota Statutes, 
  7.4   section 289A.60, subdivision 4, shall become effective at the 
  7.5   same time the changes become effective for federal purposes. 
  7.6      Sec. 4.  [INSTRUCTION TO REVISOR.] 
  7.7      In the next edition of Minnesota Statutes, the revisor of 
  7.8   statutes shall substitute the phrase "Internal Revenue Code of 
  7.9   1986, as amended through April 15, 1995," for the words 
  7.10  "Internal Revenue Code of 1986, as amended through December 31, 
  7.11  1993," wherever the phrase occurs in chapters 289A, 290, 290A, 
  7.12  291, 297, 298, and 469, except section 290.01, subdivision 19. 
  7.13     Sec. 5.  [EFFECTIVE DATE.] 
  7.14     Section 1 is effective the day following final enactment. 
  7.15                             ARTICLE 2
  7.16                        SALES AND EXCISE TAX
  7.17     Section 1.  Minnesota Statutes 1994, section 15.039, is 
  7.18  amended by adding a subdivision to read: 
  7.19     Subd. 8.  [TRANSFER OF PROPERTY; SALES TAX.] All transfers 
  7.20  of motor vehicles or other tangible personal property between 
  7.21  agencies or political subdivisions under this section are exempt 
  7.22  from the motor vehicle sales tax under chapter 297B and the 
  7.23  general sales tax under chapter 297A. 
  7.24     Sec. 2.  Minnesota Statutes 1994, section 168.013, 
  7.25  subdivision 1a, is amended to read: 
  7.26     Subd. 1a.  [PASSENGER AUTOMOBILES; HEARSES.] (a) On 
  7.27  passenger automobiles as defined in section 168.011, subdivision 
  7.28  7, and hearses, except as otherwise provided, the tax shall be 
  7.29  $10 plus an additional tax equal to 1.25 percent of the base 
  7.30  value.  
  7.31     (b) Subject to the classification provisions herein, "base 
  7.32  value" means the manufacturer's suggested retail price of the 
  7.33  vehicle including destination charge as reflected on the price 
  7.34  listing affixed to the vehicle in conformity with United States 
  7.35  Code, title 15, sections 1231 to 1233 (Public Law Number 85-506) 
  7.36  or otherwise suggested using list price information published by 
  8.1   the manufacturer or determined by the registrar if no suggested 
  8.2   retail price exists, and shall not include the cost of each 
  8.3   accessory or item of optional equipment separately added to the 
  8.4   vehicle and the suggested retail price. 
  8.5      (c) If the manufacturer's list price information contains a 
  8.6   single vehicle identification number followed by various 
  8.7   descriptions and suggested retail prices, the registrar shall 
  8.8   select from those listings only the lowest price for determining 
  8.9   base value. 
  8.10     (d) If unable to determine the base value because the 
  8.11  vehicle is specially constructed, or for any other reason, the 
  8.12  registrar may establish such value upon the cost price to the 
  8.13  purchaser or owner as evidenced by a certificate of cost but not 
  8.14  including Minnesota sales or use tax or any local sales or other 
  8.15  local tax. 
  8.16     (d) (e) The registrar shall classify every vehicle in its 
  8.17  proper base value class as follows: 
  8.18                        FROM                   TO
  8.19                        $  0                $199.99
  8.20                         200                 399.99
  8.21  and thereafter a series of classes successively set in brackets 
  8.22  having a spread of $200 consisting of such number of classes as 
  8.23  will permit classification of all vehicles. 
  8.24     (e) (f) The base value for purposes of this section shall 
  8.25  be the middle point between the extremes of its class. 
  8.26     (f) (g) The registrar shall establish the base value, when 
  8.27  new, of every passenger automobile and hearse registered prior 
  8.28  to the effective date of Extra Session Laws 1971, chapter 31, 
  8.29  using list price information published by the manufacturer or 
  8.30  any nationally recognized firm or association compiling such 
  8.31  data for the automotive industry.  If unable to ascertain the 
  8.32  base value of any registered vehicle in the foregoing manner, 
  8.33  the registrar may use any other available source or method.  The 
  8.34  tax on all previously registered vehicles shall be computed upon 
  8.35  the base value thus determined taking into account the 
  8.36  depreciation provisions of paragraph (g) (h). 
  9.1      (g) (h) Except as provided in paragraph (h) (i), the annual 
  9.2   additional tax computed upon the base value as provided herein, 
  9.3   during the first and second years of vehicle life shall be 
  9.4   computed upon 100 percent of the base value; for the third and 
  9.5   fourth years, 90 percent of such value; for the fifth and sixth 
  9.6   years, 75 percent of such value; for the seventh year, 60 
  9.7   percent of such value; for the eighth year, 40 percent of such 
  9.8   value; for the ninth year, 30 percent of such value; for the 
  9.9   tenth year, ten percent of such value; for the 11th and each 
  9.10  succeeding year, the sum of $25.  
  9.11     In no event shall the annual additional tax be less than 
  9.12  $25.  
  9.13     (h) (i) The annual additional tax under paragraph (g) (h) 
  9.14  on a motor vehicle on which the first annual tax was paid before 
  9.15  January 1, 1990, must not exceed the tax that was paid on that 
  9.16  vehicle the year before. 
  9.17     Sec. 3.  Minnesota Statutes 1994, section 168.017, 
  9.18  subdivision 3, is amended to read: 
  9.19     Subd. 3.  [EXCEPTIONS.] All vehicles subject to 
  9.20  registration under the monthly series system shall be registered 
  9.21  by the registrar for a period of 12 consecutive calendar months, 
  9.22  except as follows: 
  9.23     (a) if the application is an original rather than renewal 
  9.24  application; or, 
  9.25     (b) if the applicant is a licensed motor vehicle lessor 
  9.26  under section 168.27, in which case the applicant may apply for 
  9.27  original registration of a group of ten or more vehicles vehicle 
  9.28  for a period of four or more months, the month of expiration to 
  9.29  be designated by the applicant at the time of registration.  
  9.30  However, to qualify for this exemption, the applicant must 
  9.31  present the application to the registrar at St. Paul, or at 
  9.32  deputy registrar offices as the registrar may designate. 
  9.33     In any instance except that of a licensed motor vehicle 
  9.34  lessor, the registrar may register the vehicle which is the 
  9.35  subject of the application for a period of not less than three 
  9.36  nor more than 15 calendar months, when the registrar determines 
 10.1   that to do so will help to equalize the registration and renewal 
 10.2   work load of the department. 
 10.3      Sec. 4.  Minnesota Statutes 1994, section 168.017, is 
 10.4   amended by adding a subdivision to read: 
 10.5      Subd. 5.  (a) Notwithstanding subdivisions 3 and 4, a 
 10.6   person leasing for at least one year a vehicle registered under 
 10.7   this section may obtain an extension of the motor vehicle's 
 10.8   registration period for the unexpired portion of the lease 
 10.9   period, for a period not to exceed 11 months beyond the 
 10.10  expiration of the registration period. 
 10.11     (b) In order to obtain an extension under this subdivision 
 10.12  a lessee must 
 10.13     (1) apply to the registrar on a form the registrar 
 10.14  prescribes, 
 10.15     (2) submit to the registrar a copy of the lease, 
 10.16     (3) pay an administrative fee of $5, and 
 10.17     (4) pay a tax of one-twelfth of the tax for the 
 10.18  registration period being extended for each month of the 
 10.19  extension. 
 10.20     (c) On an applicant's compliance with paragraph (b) the 
 10.21  registrar shall issue the applicant a license plate tab or 
 10.22  sticker designating the new month of expiration of the 
 10.23  registration.  The extended registration expires on the tenth 
 10.24  day of the month following the month designated on the tab or 
 10.25  sticker. 
 10.26     (d) All fees collected under paragraph (b), clause (3), 
 10.27  must be deposited in the highway user tax distribution fund. 
 10.28     Sec. 5.  Minnesota Statutes 1994, section 216C.01, 
 10.29  subdivision 1a, is amended to read: 
 10.30     Subd. 1a.  [ALTERNATIVE FUEL.] "Alternative fuel" means 
 10.31  natural gas; liquefied petroleum gas; hydrogen; coal-derived 
 10.32  liquefied fuels; electricity; methanol, denatured ethanol, and 
 10.33  other alcohols; mixtures containing 85 percent or more, or other 
 10.34  percentage as may be set by regulation by the Secretary of the 
 10.35  United States Department of Energy, by volume of methanol, 
 10.36  denatured ethanol, and other alcohols with gasoline or other 
 11.1   fuels; fuels other than alcohol that are derived from biological 
 11.2   materials; and other fuel that the Secretary of the United 
 11.3   States Department of Energy determines by regulation to be an 
 11.4   alternative fuel within the meaning of section 301(2) of the 
 11.5   National Energy Policy Act of 1992 and intended for use in motor 
 11.6   vehicles. 
 11.7      Sec. 6.  Minnesota Statutes 1994, section 216C.01, 
 11.8   subdivision 1b, is amended to read: 
 11.9      Subd. 1b.  [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 
 11.10  vehicle" means a dedicated, flexible, or a dual-fuel vehicle 
 11.11  operated primarily on an alternative fuel. 
 11.12     Sec. 7.  Minnesota Statutes 1994, section 296.01, is 
 11.13  amended by adding a subdivision to read: 
 11.14     Subd. 5.  [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 
 11.15  vehicle" means a dedicated, flexible, or dual-fuel vehicle 
 11.16  operated primarily on alternative transportation fuel. 
 11.17     Sec. 8.  Minnesota Statutes 1994, section 296.01, is 
 11.18  amended by adding a subdivision to read: 
 11.19     Subd. 11a.  [COMPRESSED NATURAL GAS.] "Compressed natural 
 11.20  gas" or CNG means natural gas, primarily methane, condensed 
 11.21  under high pressure and stored in specially designed storage 
 11.22  tanks at between 2,000 and 3,600 pounds per square inch.  For 
 11.23  purposes of this chapter, the energy content of CNG will be 
 11.24  considered to be 1,000 BTUs per cubic foot. 
 11.25     Sec. 9.  Minnesota Statutes 1994, section 296.01, is 
 11.26  amended by adding a subdivision to read: 
 11.27     Subd. 15c.  [E85.] "E85" means a petroleum product that is 
 11.28  a blend of agriculturally derived denatured ethanol and gasoline 
 11.29  that typically contains 85 percent ethanol by volume, but at a 
 11.30  minimum must contain at least 60 percent ethanol by volume.  For 
 11.31  the purposes of this chapter, the energy content of E85 will be 
 11.32  considered to be 82,000 BTUs per gallon. 
 11.33     Sec. 10.  Minnesota Statutes 1994, section 296.01, is 
 11.34  amended by adding a subdivision to read: 
 11.35     Subd. 23a.  [LIQUEFIED NATURAL GAS.] "Liquefied natural gas"
 11.36  or LNG means natural gas, primarily methane, which has been 
 12.1   condensed through a cryogenic cooling process and is stored in 
 12.2   special pressurized and insulated storage tanks.  For purposes 
 12.3   of this chapter, the energy content of LNG will be considered to 
 12.4   be 69,000 BTUs per gallon. 
 12.5      Sec. 11.  Minnesota Statutes 1994, section 296.01, is 
 12.6   amended by adding a subdivision to read: 
 12.7      Subd. 23b.  [LIQUEFIED PETROLEUM GAS.] "Liquefied petroleum 
 12.8   gas" or LPG or propane means a product made of short hydrocarbon 
 12.9   chains and containing primarily propane and butane that is 
 12.10  stored in specialized tanks at moderate pressure.  For purposes 
 12.11  of this chapter, the energy content of LPG or propane will be 
 12.12  considered to be 86,000 BTUs per gallon. 
 12.13     Sec. 12.  Minnesota Statutes 1994, section 296.01, is 
 12.14  amended by adding a subdivision to read: 
 12.15     Subd. 24b.  [M85.] "M85" means a petroleum product that is 
 12.16  a liquid fuel blend of methanol and gasoline that contains at 
 12.17  least 85 percent methanol by volume.  For the purposes of this 
 12.18  chapter, the energy content of M85 will be considered to be 
 12.19  65,000 BTUs per gallon. 
 12.20     Sec. 13.  Minnesota Statutes 1994, section 296.01, 
 12.21  subdivision 30, is amended to read: 
 12.22     Subd. 30.  [PETROLEUM PRODUCTS.] "Petroleum products" means 
 12.23  all of the products defined in subdivisions 2, 7, 8, 10, 13, 14, 
 12.24  15c, and 17 to 22, and 24b. 
 12.25     Sec. 14.  Minnesota Statutes 1994, section 296.01, 
 12.26  subdivision 34, is amended to read: 
 12.27     Subd. 34.  [SPECIAL FUEL.] "Special fuel" means (1) all 
 12.28  combustible gases and liquid petroleum products or substitutes 
 12.29  therefor including clear diesel fuel, except gasoline, gasoline 
 12.30  blended with ethanol, and agricultural alcohol gasoline which 
 12.31  are delivered into the supply tank of a licensed motor vehicle 
 12.32  or into storage tanks maintained by an owner or operator of a 
 12.33  licensed motor vehicle as a source of supply for such vehicle; 
 12.34  (2) all combustible gases and liquid petroleum products or 
 12.35  substitutes therefor, except gasoline, gasoline blended with 
 12.36  ethanol, and agricultural alcohol gasoline, when delivered to a 
 13.1   licensed special fuel dealer or to the retail service station 
 13.2   storage of a distributor who has elected to pay the special fuel 
 13.3   excise tax as provided in section 296.12, subdivision 3; (3) all 
 13.4   combustible gases and liquid petroleum products or substitutes 
 13.5   therefor, except gasoline, which are used as aviation fuel; or 
 13.6   (4) dyed fuel that is being used illegally in a licensed motor 
 13.7   vehicle.  
 13.8      Sec. 15.  Minnesota Statutes 1994, section 296.02, 
 13.9   subdivision 1, is amended to read: 
 13.10     Subdivision 1.  [TAX IMPOSED; EXCEPTION FOR QUALIFIED 
 13.11  SERVICE STATION.] There is imposed an excise tax on gasoline, 
 13.12  gasoline blended with ethanol, and agricultural alcohol 
 13.13  gasoline, used in producing and generating power for propelling 
 13.14  motor vehicles used on the public highways of this state.  For 
 13.15  purposes of this section, gasoline is defined in section 296.01, 
 13.16  subdivisions 10, 15b, 18, 19, 20, and 24a.  This tax is payable 
 13.17  at the times, in the manner, and by persons specified in this 
 13.18  chapter.  The tax is payable at the rate specified in 
 13.19  subdivision 1b, subject to the exceptions and reductions 
 13.20  specified in this section.  
 13.21     (a) Notwithstanding any other provision of law to the 
 13.22  contrary, the tax imposed on special fuel sold by a qualified 
 13.23  service station may not exceed, or the tax on gasoline delivered 
 13.24  to a qualified service station must be reduced to, a rate not 
 13.25  more than three cents per gallon above the state tax rate 
 13.26  imposed on such products sold by a service station in a 
 13.27  contiguous state located within the distance indicated in clause 
 13.28  (b).  
 13.29     (b) A "qualifying service station" means a service station 
 13.30  located within 7.5 miles, measured by the shortest route by 
 13.31  public road, from a service station selling like product in the 
 13.32  contiguous state.  
 13.33     (c) A qualified service station shall be allowed a credit 
 13.34  by the supplier or distributor, or both, for the amount of 
 13.35  reduction computed in accordance with clause (a).  
 13.36     A qualified service station, before receiving the credit, 
 14.1   shall be registered with the commissioner of revenue.  
 14.2      Sec. 16.  Minnesota Statutes 1994, section 296.02, 
 14.3   subdivision 1a, is amended to read: 
 14.4      Subd. 1a.  [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 
 14.5   The provisions of subdivision 1 do not apply to (1) gasoline 
 14.6   purchased by a transit system or transit provider receiving 
 14.7   financial assistance or reimbursement under section 174.24, 
 14.8   256B.0625, subdivision 17, or 473.384 or (2) sales of compressed 
 14.9   natural gas or propane for use in vehicles displaying a valid 
 14.10  annual alternate fuel permit.  
 14.11     Sec. 17.  Minnesota Statutes 1994, section 296.02, 
 14.12  subdivision 1b, is amended to read: 
 14.13     Subd. 1b.  [RATES IMPOSED.] The gasoline excise tax is 
 14.14  imposed at the following rate rates: 
 14.15     (1) E85 is taxed at the rate of 14.2 cents per gallon; 
 14.16     (2) M85 is taxed at the rate of 11.4 cents per gallon; and 
 14.17     (3) For the period on and after May 1, 1988, all other 
 14.18  gasoline is taxed at the rate of 20 cents per gallon.  
 14.19     Sec. 18.  Minnesota Statutes 1994, section 296.025, 
 14.20  subdivision 1, is amended to read: 
 14.21     Subdivision 1.  [TAX IMPOSED.] There is hereby imposed an 
 14.22  excise tax of the same rate per gallon as the gasoline excise 
 14.23  tax on all special fuel at the rates specified in subdivision 1b.
 14.24  For clear diesel fuel, the tax is imposed on the first 
 14.25  distributor who received the product in Minnesota.  For dyed 
 14.26  fuel being used illegally in a licensed motor vehicle, the tax 
 14.27  is imposed on the owner or operator of the motor vehicle, or in 
 14.28  some instances, on the dealer who supplied the fuel.  For dyed 
 14.29  fuel used in a motor vehicle but subject to a federal exemption, 
 14.30  although no federal tax may be imposed, the fuel is subject to 
 14.31  the state tax.  For other fuels, including jet fuel, propane, 
 14.32  and compressed natural gas, the tax is imposed on the 
 14.33  distributor, special fuel dealer, or bulk purchaser.  This tax 
 14.34  is payable at the time and in the manner specified in this 
 14.35  chapter.  For purposes of this section, "owner or operator" 
 14.36  means the operation of licensed motor vehicles, whether loaded 
 15.1   or empty, whether for compensation or not for compensation, and 
 15.2   whether owned by or leased to the motor carrier who operates 
 15.3   them or causes them to be operated. 
 15.4      Sec. 19.  Minnesota Statutes 1994, section 296.025, 
 15.5   subdivision 1a, is amended to read: 
 15.6      Subd. 1a.  [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 
 15.7   The provisions of subdivision 1 do not apply to (1) special fuel 
 15.8   purchased by a transit system or transit provider receiving 
 15.9   financial assistance or reimbursement under section 174.24, 
 15.10  256B.0625, subdivision 17, or 473.384 or (2) sales of compressed 
 15.11  natural gas or propane for use in vehicles displaying a valid 
 15.12  annual alternate fuel permit.  
 15.13     Sec. 20.  Minnesota Statutes 1994, section 296.025, is 
 15.14  amended by adding a subdivision to read: 
 15.15     Subd. 1b.  [TAX RATES.] The special fuel excise tax is 
 15.16  imposed at the following rates: 
 15.17     (1) Liquefied petroleum gas or propane is taxed at the rate 
 15.18  of 15 cents per gallon. 
 15.19     (2) Liquefied natural gas is taxed at the rate of 12 cents 
 15.20  per gallon. 
 15.21     (3) Compressed natural gas is taxed at the rate of $1.739 
 15.22  per thousand cubic feet; or 20 cents per gasoline equivalent, as 
 15.23  defined by the National Conference on Weights and Measures, 
 15.24  which is 5.66 pounds of natural gas. 
 15.25     (4) All other special fuel is taxed at the same rate as the 
 15.26  gasoline excise tax. 
 15.27     Sec. 21.  Minnesota Statutes 1994, section 296.0261, is 
 15.28  amended by adding a subdivision to read: 
 15.29     Subd. 10.  [CREDIT; REFUNDS.] (a) A purchaser of an 
 15.30  alternative fuel vehicle permit under subdivisions 1 to 9, prior 
 15.31  to July 1, 1995, shall receive a credit for the unused portion 
 15.32  of the permit fee.  The amount of the credit shall be equal to 
 15.33  the original permit fee and prorated to the number of months 
 15.34  from July 1, 1995, until the expiration date of the permit.  The 
 15.35  credit shall reduce the amount of the vehicle's annual motor 
 15.36  vehicle registration tax as calculated under section 168.013.  
 16.1   The credit shall be applied to the first motor vehicle 
 16.2   registration tax payable after July 1, 1995. 
 16.3      (b) If the amount of the credit calculated under paragraph 
 16.4   (a) exceeds the amount of motor vehicle registration tax due, 
 16.5   the registrar shall pay to the vehicle owner a cash refund equal 
 16.6   to the difference between the motor vehicle registration tax and 
 16.7   the credit due.  The amount necessary to pay the refunds under 
 16.8   this paragraph is appropriated for fiscal year 1996 to the 
 16.9   commissioner of public safety from the highway user tax 
 16.10  distribution fund.  The appropriation is available until the 
 16.11  refunds have been paid. 
 16.12     Sec. 22.  Minnesota Statutes 1994, section 297A.01, 
 16.13  subdivision 3, is amended to read: 
 16.14     Subd. 3.  A "sale" and a "purchase" includes, but is not 
 16.15  limited to, each of the following transactions: 
 16.16     (a) Any transfer of title or possession, or both, of 
 16.17  tangible personal property, whether absolutely or conditionally, 
 16.18  and the leasing of or the granting of a license to use or 
 16.19  consume tangible personal property other than manufactured homes 
 16.20  used for residential purposes for a continuous period of 30 days 
 16.21  or more, for a consideration in money or by exchange or barter; 
 16.22     (b) The production, fabrication, printing, or processing of 
 16.23  tangible personal property for a consideration for consumers who 
 16.24  furnish either directly or indirectly the materials used in the 
 16.25  production, fabrication, printing, or processing; 
 16.26     (c) The furnishing, preparing, or serving for a 
 16.27  consideration of food, meals, or drinks.  "Sale" does not 
 16.28  include: 
 16.29     (1) meals or drinks served to patients, inmates, or persons 
 16.30  residing at hospitals, sanitariums, nursing homes, senior 
 16.31  citizens homes, and correctional, detention, and detoxification 
 16.32  facilities; 
 16.33     (2) meals or drinks purchased for and served exclusively to 
 16.34  individuals who are 60 years of age or over and their spouses or 
 16.35  to the handicapped and their spouses by governmental agencies, 
 16.36  nonprofit organizations, agencies, or churches or pursuant to 
 17.1   any program funded in whole or part through 42 USCA sections 
 17.2   3001 through 3045, wherever delivered, prepared or served; or 
 17.3      (3) meals and lunches served at public and private schools, 
 17.4   universities, or colleges.  Notwithstanding section 297A.25, 
 17.5   subdivision 2, taxable food or meals include, but are not 
 17.6   limited to, the following:  
 17.7      (i) heated food or drinks; 
 17.8      (ii) sandwiches prepared by the retailer; 
 17.9      (iii) single sales of prepackaged ice cream or ice milk 
 17.10  novelties prepared by the retailer; 
 17.11     (iv) hand-prepared or dispensed ice cream or ice milk 
 17.12  products including cones, sundaes, and snow cones; 
 17.13     (v) soft drinks and other beverages prepared or served by 
 17.14  the retailer; 
 17.15     (vi) gum; 
 17.16     (vii) ice; 
 17.17     (viii) all food sold in vending machines; 
 17.18     (ix) party trays prepared by the retailers; and 
 17.19     (x) all meals and single servings of packaged snack food, 
 17.20  single cans or bottles of pop, sold in restaurants and bars; 
 17.21     (d) The granting of the privilege of admission to places of 
 17.22  amusement, recreational areas, or athletic events, except a 
 17.23  world championship football game sponsored by the national 
 17.24  football league, and the privilege of having access to and the 
 17.25  use of amusement devices, tanning facilities, reducing salons, 
 17.26  steam baths, turkish baths, health clubs, and spas or athletic 
 17.27  facilities; 
 17.28     (e) The furnishing for a consideration of lodging and 
 17.29  related services by a hotel, rooming house, tourist court, motel 
 17.30  or trailer camp and of the granting of any similar license to 
 17.31  use real property other than the renting or leasing thereof for 
 17.32  a continuous period of 30 days or more; 
 17.33     (f) The furnishing for a consideration of electricity, gas, 
 17.34  water, or steam for use or consumption within this state, or 
 17.35  local exchange telephone service, intrastate toll service, and 
 17.36  interstate toll service, if that service originates from and is 
 18.1   charged to a telephone located in this state.  Telephone service 
 18.2   includes paging services and private communication service, as 
 18.3   defined in United States Code, title 26, section 4252(d), except 
 18.4   for private communication service purchased by an agent acting 
 18.5   on behalf of the state lottery.  The furnishing for a 
 18.6   consideration of access to telephone services by a hotel to its 
 18.7   guests is a sale under this clause.  Sales by municipal 
 18.8   corporations in a proprietary capacity are included in the 
 18.9   provisions of this clause.  The furnishing of water and sewer 
 18.10  services for residential use shall not be considered a sale.  
 18.11  The sale of natural gas to be used as a fuel in vehicles 
 18.12  propelled by natural gas shall not be considered a sale for the 
 18.13  purposes of this section; 
 18.14     (g) The furnishing for a consideration of cable television 
 18.15  services, including charges for basic service, charges for 
 18.16  premium service, and any other charges for any other 
 18.17  pay-per-view, monthly, or similar television services; 
 18.18     (h) Notwithstanding section 297A.25, subdivisions 9 and 12, 
 18.19  the sales of racehorses including claiming sales and fees paid 
 18.20  for breeding racehorses or horses previously used for racing 
 18.21  shall be considered a "sale" and a "purchase."  "Racehorse" 
 18.22  means a horse that is or is intended to be used for racing and 
 18.23  whose birth has been recorded by the Jockey Club or the United 
 18.24  States Trotting Association or the American Quarter Horse 
 18.25  Association.  "Sale" does not include fees paid for breeding 
 18.26  horses that are not racehorses; 
 18.27     (i) The furnishing for a consideration of parking services, 
 18.28  whether on a contractual, hourly, or other periodic basis, 
 18.29  except for parking at a meter; 
 18.30     (j) (i) The furnishing for a consideration of services 
 18.31  listed in this paragraph: 
 18.32     (i) laundry and dry cleaning services including cleaning, 
 18.33  pressing, repairing, altering, and storing clothes, linen 
 18.34  services and supply, cleaning and blocking hats, and carpet, 
 18.35  drapery, upholstery, and industrial cleaning.  Laundry and dry 
 18.36  cleaning services do not include services provided by coin 
 19.1   operated facilities operated by the customer; 
 19.2      (ii) motor vehicle washing, waxing, and cleaning services, 
 19.3   including services provided by coin-operated facilities operated 
 19.4   by the customer, and rustproofing, undercoating, and towing of 
 19.5   motor vehicles; 
 19.6      (iii) building and residential cleaning, maintenance, and 
 19.7   disinfecting and exterminating services; 
 19.8      (iv) services provided by detective agencies, security 
 19.9   services, burglar, fire alarm, and armored car services not 
 19.10  including services performed within the jurisdiction they serve 
 19.11  by off-duty licensed peace officers as defined in section 
 19.12  626.84, subdivision 1; 
 19.13     (v) pet grooming services; 
 19.14     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
 19.15  services; garden planting and maintenance; tree, bush, and shrub 
 19.16  pruning, bracing, spraying, and surgery; tree, bush, shrub and 
 19.17  stump removal; and tree trimming for public utility lines.  
 19.18  Services performed under a construction contract for the 
 19.19  installation of shrubbery, plants, sod, trees, bushes, and 
 19.20  similar items are not taxable; 
 19.21     (vii) mixed municipal solid waste collection and disposal 
 19.22  management services as described in section 297A.45; 
 19.23     (viii) massages, except when provided by a licensed health 
 19.24  care facility or professional or upon written referral from a 
 19.25  licensed health care facility or professional for treatment of 
 19.26  illness, injury, or disease; and 
 19.27     (ix) the furnishing for consideration of lodging, board and 
 19.28  care services for animals in kennels and other similar 
 19.29  arrangements, but excluding veterinary and horse boarding 
 19.30  services. 
 19.31  The services listed in this paragraph are taxable under section 
 19.32  297A.02 if the service is performed wholly within Minnesota or 
 19.33  if the service is performed partly within and partly without 
 19.34  Minnesota and the greater proportion of the service is performed 
 19.35  in Minnesota, based on the cost of performance.  In applying the 
 19.36  provisions of this chapter, the terms "tangible personal 
 20.1   property" and "sales at retail" include taxable services and the 
 20.2   provision of taxable services, unless specifically provided 
 20.3   otherwise.  Services performed by an employee for an employer 
 20.4   are not taxable under this paragraph.  Services performed by a 
 20.5   partnership or association for another partnership or 
 20.6   association are not taxable under this paragraph if one of the 
 20.7   entities owns or controls more than 80 percent of the voting 
 20.8   power of the equity interest in the other entity.  Services 
 20.9   performed between members of an affiliated group of corporations 
 20.10  are not taxable.  For purposes of this section, "affiliated 
 20.11  group of corporations" includes those entities that would be 
 20.12  classified as a member of an affiliated group under United 
 20.13  States Code, title 26, section 1504, and who are eligible to 
 20.14  file a consolidated tax return for federal income tax purposes; 
 20.15     (k) (j) A "sale" and a "purchase" includes the transfer of 
 20.16  computer software, meaning information and directions that 
 20.17  dictate the function performed by data processing equipment.  A 
 20.18  "sale" and a "purchase" does not include the design, 
 20.19  development, writing, translation, fabrication, lease, or 
 20.20  transfer for a consideration of title or possession of a custom 
 20.21  computer program; and 
 20.22     (l) (k) The granting of membership in a club, association, 
 20.23  or other organization if: 
 20.24     (1) the club, association, or other organization makes 
 20.25  available for the use of its members sports and athletic 
 20.26  facilities (without regard to whether a separate charge is 
 20.27  assessed for use of the facilities); and 
 20.28     (2) use of the sports and athletic facilities is not made 
 20.29  available to the general public on the same basis as it is made 
 20.30  available to members.  
 20.31  Granting of membership includes both one-time initiation fees 
 20.32  and periodic membership dues.  Sports and athletic facilities 
 20.33  include golf courses, tennis, racquetball, handball and squash 
 20.34  courts, basketball and volleyball facilities, running tracks, 
 20.35  exercise equipment, swimming pools, and other similar athletic 
 20.36  or sports facilities.  The provisions of this paragraph do not 
 21.1   apply to camps or other recreation facilities owned and operated 
 21.2   by an exempt organization under section 501(c)(3) of the 
 21.3   Internal Revenue Code of 1986, as amended through December 31, 
 21.4   1992, for educational and social activities for young people 
 21.5   primarily age 18 and under.  
 21.6      Sec. 23.  Minnesota Statutes 1994, section 297A.01, is 
 21.7   amended by adding a subdivision to read: 
 21.8      Subd. 21.  [MIXED MUNICIPAL SOLID WASTE MANAGEMENT 
 21.9   SERVICES.] "Mixed municipal solid waste management services" or 
 21.10  "waste management services" means services relating to the 
 21.11  management of mixed municipal solid waste from collection to 
 21.12  disposal, including transportation and management at waste 
 21.13  facilities.  The definitions in section 115A.03 apply to this 
 21.14  subdivision. 
 21.15     Sec. 24.  Minnesota Statutes 1994, section 297A.02, 
 21.16  subdivision 4, is amended to read: 
 21.17     Subd. 4.  [MANUFACTURED HOUSING AND PARK TRAILERS.] 
 21.18  Notwithstanding the provisions of subdivision 1, for sales at 
 21.19  retail of new manufactured homes used for residential purposes 
 21.20  and new or used park trailers, as defined in section 168.011, 
 21.21  subdivision 8, paragraph (b), the excise tax is imposed upon 65 
 21.22  percent of the sales price of the home or park trailer.  
 21.23     Sec. 25.  Minnesota Statutes 1994, section 297A.135, 
 21.24  subdivision 1, is amended to read: 
 21.25     Subdivision 1.  [TAX IMPOSED.] A tax is imposed on the 
 21.26  lease or rental in this state for not more than 28 days of a 
 21.27  passenger automobile as defined in section 168.011, subdivision 
 21.28  7, a van as defined in section 168.011, subdivision 28, or a 
 21.29  pickup truck as defined in section 168.011, subdivision 29.  A 
 21.30  van designed or adapted primarily for transporting property 
 21.31  rather than passengers is exempt from the tax imposed under this 
 21.32  section.  The tax is imposed at the rate of 6.2 percent of the 
 21.33  sales price as defined for the purpose of imposing the sales and 
 21.34  use tax in this chapter.  The tax does not apply to the lease or 
 21.35  rental of a hearse or limousine used in connection with a burial 
 21.36  or funeral service.  It applies whether or not the vehicle is 
 22.1   licensed in the state. 
 22.2      Sec. 26.  Minnesota Statutes 1994, section 297A.15, is 
 22.3   amended by adding a subdivision to read: 
 22.4      Subd. 7.  [REFUND; APPROPRIATION; ADULT AND JUVENILE 
 22.5   CORRECTIONAL FACILITIES.] (a) If construction materials and 
 22.6   supplies described in paragraph (b) are purchased by a 
 22.7   contractor, subcontractor, or builder as part of a lump-sum 
 22.8   contract or similar type of contract with a price covering both 
 22.9   labor and materials for use in the project, a refund equal to 20 
 22.10  percent of the taxes paid by the contractor, subcontractor, or 
 22.11  builder must be paid to the governmental subdivision.  An 
 22.12  application must be submitted by the governmental subdivision 
 22.13  and must include sufficient information to permit the 
 22.14  commissioner to verify the sales taxes paid for the project.  
 22.15  The contractor, subcontractor, or builder must furnish to the 
 22.16  governmental subdivision a statement of the cost of the 
 22.17  construction materials and supplies and the sales taxes paid on 
 22.18  them.  The amount required to make the refunds is annually 
 22.19  appropriated to the commissioner.  Interest must be paid on the 
 22.20  refund at the rate in section 270.76 from 60 days after the date 
 22.21  the refund claim is filed with the commissioner. 
 22.22     (b) Construction materials and supplies qualify for the 
 22.23  refund under this section if:  (1) the materials and supplies 
 22.24  are for use in a project to construct or improve an adult or 
 22.25  juvenile correctional facility in a county, home rule charter 
 22.26  city, or statutory city, and (2) the project is mandated by 
 22.27  state or federal law, rule, or regulation.  The refund applies 
 22.28  regardless of whether the materials and supplies are purchased 
 22.29  by the city or county, or by a contractor, subcontractor, or 
 22.30  builder under a contract with the city or county. 
 22.31     Sec. 27.  Minnesota Statutes 1994, section 297A.25, 
 22.32  subdivision 9, is amended to read: 
 22.33     Subd. 9.  [MATERIALS CONSUMED IN PRODUCTION.] The gross 
 22.34  receipts from the sale of and the storage, use, or consumption 
 22.35  of all materials, including chemicals, fuels, petroleum 
 22.36  products, lubricants, packaging materials, including returnable 
 23.1   containers used in packaging food and beverage products, feeds, 
 23.2   seeds, fertilizers, electricity, gas and steam, used or consumed 
 23.3   in agricultural or industrial production of personal property 
 23.4   intended to be sold ultimately at retail, whether or not the 
 23.5   item so used becomes an ingredient or constituent part of the 
 23.6   property produced are exempt.  Seeds, trees, fertilizers, and 
 23.7   herbicides purchased for use by farmers in the Conservation 
 23.8   Reserve Program under United States Code, title 16, section 
 23.9   590h, the Integrated Farm Management Program under section 1627 
 23.10  of Public Law Number 101-624, the Wheat and Feed Grain Programs 
 23.11  under sections 301 to 305 and 401 to 405 of Public Law Number 
 23.12  101-624, and the conservation reserve program under sections 
 23.13  103F.505 to 103F.531, are included in this exemption.  Sales to 
 23.14  a veterinarian of materials used or consumed in the care, 
 23.15  medication, and treatment of agricultural production animals and 
 23.16  horses used in agricultural production are exempt under this 
 23.17  subdivision.  Chemicals used for cleaning food processing 
 23.18  machinery and equipment are included in this exemption.  
 23.19  Materials, including chemicals, fuels, and electricity purchased 
 23.20  by persons engaged in agricultural or industrial production to 
 23.21  treat waste generated as a result of the production process are 
 23.22  included in this exemption.  Such production shall include, but 
 23.23  is not limited to, research, development, design or production 
 23.24  of any tangible personal property, manufacturing, processing 
 23.25  (other than by restaurants and consumers) of agricultural 
 23.26  products whether vegetable or animal, commercial fishing, 
 23.27  refining, smelting, reducing, brewing, distilling, printing, 
 23.28  mining, quarrying, lumbering, generating electricity and the 
 23.29  production of road building materials.  Such production shall 
 23.30  not include painting, cleaning, repairing or similar processing 
 23.31  of property except as part of the original manufacturing 
 23.32  process.  Machinery, equipment, implements, tools, accessories, 
 23.33  appliances, contrivances, furniture and fixtures, used in such 
 23.34  production and fuel, electricity, gas or steam used for space 
 23.35  heating or lighting, are not included within this exemption; 
 23.36  however, accessory tools, equipment and other short lived items, 
 24.1   which are separate detachable units used in producing a direct 
 24.2   effect upon the product, where such items have an ordinary 
 24.3   useful life of less than 12 months, are included within the 
 24.4   exemption provided herein.  Electricity used to make snow for 
 24.5   outdoor use for ski hills, ski slopes, or ski trails is included 
 24.6   in this exemption. 
 24.7      Sec. 28.  Minnesota Statutes 1994, section 297A.25, 
 24.8   subdivision 11, is amended to read: 
 24.9      Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 24.10  all sales, including sales in which title is retained by a 
 24.11  seller or a vendor or is assigned to a third party under an 
 24.12  installment sale or lease purchase agreement under section 
 24.13  465.71, of tangible personal property to, and all storage, use 
 24.14  or consumption of such property by, the United States and its 
 24.15  agencies and instrumentalities, the University of Minnesota, 
 24.16  state universities, community colleges, technical colleges, 
 24.17  state academies, the Minnesota center for arts education, and 
 24.18  school districts are exempt. 
 24.19     As used in this subdivision, "school districts" means 
 24.20  public school entities and districts of every kind and nature 
 24.21  organized under the laws of the state of Minnesota, including, 
 24.22  without limitation, school districts, intermediate school 
 24.23  districts, education districts, educational cooperative service 
 24.24  units, secondary vocational cooperative centers, special 
 24.25  education cooperatives, joint purchasing cooperatives, 
 24.26  telecommunication cooperatives, regional management information 
 24.27  centers, technical colleges, joint vocational technical 
 24.28  districts, and any instrumentality of a school district, as 
 24.29  defined in section 471.59. 
 24.30     Sales exempted by this subdivision include sales under 
 24.31  section 297A.01, subdivision 3, paragraph (f), but do not 
 24.32  include sales under section 297A.01, subdivision 3, paragraph 
 24.33  (j), clause (vii).  
 24.34     Sales to hospitals and nursing homes owned and operated by 
 24.35  political subdivisions of the state are exempt under this 
 24.36  subdivision.  
 25.1      The sales to and exclusively for the use of libraries of 
 25.2   books, periodicals, audio-visual materials and equipment, 
 25.3   photocopiers for use by the public, and all cataloging and 
 25.4   circulation equipment, and cataloging and circulation software 
 25.5   for library use are exempt under this subdivision.  For purposes 
 25.6   of this paragraph "libraries" means libraries as defined in 
 25.7   section 134.001, county law libraries under chapter 134A, the 
 25.8   state library under section 480.09, and the legislative 
 25.9   reference library. 
 25.10     Sales of supplies and equipment used in the operation of an 
 25.11  ambulance service owned and operated by a political subdivision 
 25.12  of the state are exempt under this subdivision provided that the 
 25.13  supplies and equipment are used in the course of providing 
 25.14  medical care.  Sales to a political subdivision of repair and 
 25.15  replacement parts for emergency rescue vehicles and fire trucks 
 25.16  and apparatus are exempt under this subdivision.  
 25.17     Sales to a political subdivision of machinery and 
 25.18  equipment, except for motor vehicles, used directly for mixed 
 25.19  municipal solid waste collection and disposal management 
 25.20  services at a solid waste disposal facility as defined in 
 25.21  section 115A.03, subdivision 10, are exempt under this 
 25.22  subdivision.  
 25.23     Sales to political subdivisions of chore and homemaking 
 25.24  services to be provided to elderly or disabled individuals are 
 25.25  exempt. 
 25.26     Sales of telephone services to the department of 
 25.27  administration that are used to provide telecommunications 
 25.28  services through the intertechnologies revolving fund are exempt 
 25.29  under this subdivision. 
 25.30     This exemption shall not apply to building, construction or 
 25.31  reconstruction materials purchased by a contractor or a 
 25.32  subcontractor as a part of a lump-sum contract or similar type 
 25.33  of contract with a guaranteed maximum price covering both labor 
 25.34  and materials for use in the construction, alteration, or repair 
 25.35  of a building or facility.  This exemption does not apply to 
 25.36  construction materials purchased by tax exempt entities or their 
 26.1   contractors to be used in constructing buildings or facilities 
 26.2   which will not be used principally by the tax exempt entities. 
 26.3      This exemption does not apply to the leasing of a motor 
 26.4   vehicle as defined in section 297B.01, subdivision 5, except for 
 26.5   leases entered into by the United States or its agencies or 
 26.6   instrumentalities.  
 26.7      The tax imposed on sales to political subdivisions of the 
 26.8   state under this section applies to all political subdivisions 
 26.9   other than those explicitly exempted under this subdivision, 
 26.10  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 26.11  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 26.12  469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
 26.13  to the contrary enacted before 1992. 
 26.14     Sales exempted by this subdivision include sales made to 
 26.15  other states or political subdivisions of other states, if the 
 26.16  sale would be exempt from taxation if it occurred in that state, 
 26.17  but do not include sales under section 297A.01, subdivision 3, 
 26.18  paragraphs (c) and (e). 
 26.19     Sec. 29.  Minnesota Statutes 1994, section 297A.25, 
 26.20  subdivision 57, is amended to read: 
 26.21     Subd. 57.  [HORSES.] The gross receipts from the sale of 
 26.22  horses other than, including racehorses taxable under section 
 26.23  297A.01, subdivision 3, paragraph (h), and all sales to persons 
 26.24  who raise or board horses, of all materials, including feed and 
 26.25  bedding, used or consumed in the breeding, raising, and keeping 
 26.26  of horses, are exempt.  Machinery, equipment, implements, tools, 
 26.27  appliances, furniture, and fixtures, used in the breeding, 
 26.28  raising, and keeping of horses, are not included within this 
 26.29  exemption. 
 26.30     Sec. 30.  Minnesota Statutes 1994, section 297A.25, 
 26.31  subdivision 59, is amended to read: 
 26.32     Subd. 59.  [FARM MACHINERY.] From July 1, 1994, until June 
 26.33  30, 1995 1996, the gross receipts from the sale of used farm 
 26.34  machinery are exempt. 
 26.35     Sec. 31.  Minnesota Statutes 1994, section 297A.25, is 
 26.36  amended by adding a subdivision to read: 
 27.1      Subd. 60.  [CONSTRUCTION MATERIALS; STATE CONVENTION 
 27.2   CENTER.] Construction materials and supplies are exempt from the 
 27.3   tax imposed under this chapter, regardless of whether purchased 
 27.4   by the owner or a contractor, subcontractor, or builder, if: 
 27.5      (1) the materials and supplies are used or consumed in 
 27.6   constructing improvements to a state convention center located 
 27.7   in a city located outside of the metropolitan area as defined in 
 27.8   section 473.121, subdivision 2, and the center is governed by an 
 27.9   11-person board of which four are appointed by the governor; and 
 27.10     (2) the improvements are financed in whole or in part by 
 27.11  nonstate resources including, but not limited to, revenue or 
 27.12  general obligations issued by the state convention center board 
 27.13  of the city in which the center is located. 
 27.14     The exemption provided by this subdivision applies to 
 27.15  construction materials and supplies purchased prior to December 
 27.16  31, 1998. 
 27.17     Sec. 32.  Minnesota Statutes 1994, section 297A.25, is 
 27.18  amended by adding a subdivision to read: 
 27.19     Subd. 61.  [CONSTRUCTION MATERIALS FOR INDOOR ICE ARENAS.] 
 27.20  The gross receipts from the sale of construction materials and 
 27.21  supplies are exempt if:  
 27.22     (1) the materials and supplies are to be used in 
 27.23  constructing an indoor ice arena intended to be used 
 27.24  predominantly for youth athletic activities; and 
 27.25     (2) a school district is a party to a joint powers 
 27.26  agreement that governs the ownership, operation, and maintenance 
 27.27  of the facility.  
 27.28     This exemption applies regardless of whether the purchases 
 27.29  are made by the owner of the facility or a contractor. 
 27.30     Sec. 33.  Minnesota Statutes 1994, section 297A.45, is 
 27.31  amended to read: 
 27.32     297A.45 [MIXED MUNICIPAL SOLID WASTE COLLECTION AND 
 27.33  DISPOSAL MANAGEMENT SERVICES.] 
 27.34     Subdivision 1.  [DEFINITIONS.] The definitions in sections 
 27.35  115A.03 and 297A.01 apply to this section.  
 27.36     Subd. 2.  [APPLICATION.] The taxes imposed by sections 
 28.1   297A.02 and 297A.021 apply to all public and private mixed 
 28.2   municipal solid waste collection and disposal management 
 28.3   services.  
 28.4      Notwithstanding section 297A.25, subdivision 11, a 
 28.5   political subdivision that purchases collection or disposal 
 28.6   waste management services on behalf of its citizens shall pay 
 28.7   the taxes. 
 28.8      If a political subdivision provides collection or disposal 
 28.9   services a waste management service to its residents at a cost 
 28.10  in excess of the total direct charge to the residents for the 
 28.11  service, the political subdivision shall pay the taxes based on 
 28.12  its cost of providing the service in excess of the direct 
 28.13  charges.  
 28.14     A person who transports mixed municipal solid waste 
 28.15  generated by that person or by another person without 
 28.16  compensation shall pay the taxes at the disposal or resource 
 28.17  recovery waste facility based on the disposal charge or tipping 
 28.18  fee. 
 28.19     Subd. 3.  [EXEMPTIONS.] (a) The cost of a service or the 
 28.20  portion of a service to collect and manage recyclable materials 
 28.21  separated from mixed municipal solid waste by the waste 
 28.22  generator is exempt from the taxes imposed in sections 297A.02 
 28.23  and 297A.021. 
 28.24     (b) The amount of a surcharge or fee imposed under section 
 28.25  115A.919, 115A.921, 115A.923, or 473.843 is exempt from the 
 28.26  taxes imposed in sections 297A.02 and 297A.021. 
 28.27     (c) Waste from a recycling facility that separates or 
 28.28  processes recyclable materials and that reduces the volume of 
 28.29  the waste by at least 85 percent is exempt from the taxes 
 28.30  imposed in sections 297A.02 and 297A.021.  To qualify for the 
 28.31  exemption under this paragraph, the waste exempted must be 
 28.32  collected and disposed of managed separately from other solid 
 28.33  waste. 
 28.34     (d) The following costs are exempt from the taxes imposed 
 28.35  in sections 297A.02 and 297A.021: 
 28.36     (1) costs of providing educational materials and other 
 29.1   information to residents; 
 29.2      (2) costs of managing solid waste other than mixed 
 29.3   municipal solid waste, including household hazardous waste; and 
 29.4      (3) costs of court litigation and associated damages. 
 29.5      (e) The cost of a waste management service is exempt from 
 29.6   the taxes imposed in sections 297A.02 and 297A.021 to the extent 
 29.7   that the cost was previously subject to the tax. 
 29.8      Subd. 4.  [CITY SALES TAX MAY NOT BE IMPOSED.] 
 29.9   Notwithstanding any other law or charter provision to the 
 29.10  contrary, a home rule charter or statutory city that imposes a 
 29.11  general sales tax may not impose the sales tax on solid waste 
 29.12  disposal and collection management services that are subject to 
 29.13  the tax under this section.  This subdivision does not apply to 
 29.14  a tax imposed under section 297A.021.  
 29.15     Subd. 5.  [SEPARATE ACCOUNTING.] The commissioner shall 
 29.16  account for revenue collected from public and private mixed 
 29.17  municipal solid waste collection and disposal management 
 29.18  services under this section separately from other tax revenue 
 29.19  collected under this chapter.  
 29.20     Sec. 34.  Minnesota Statutes 1994, section 297B.01, 
 29.21  subdivision 5, is amended to read: 
 29.22     Subd. 5.  [MOTOR VEHICLE.] "Motor vehicle" means any 
 29.23  self-propelled vehicle not operated exclusively upon railroad 
 29.24  tracks and any vehicle propelled or drawn by a self-propelled 
 29.25  vehicle for which registration is required by chapter 168.  
 29.26  Motor vehicle includes vehicles known as trackless trolleys 
 29.27  which are propelled by electric power obtained from overhead 
 29.28  trolley wires but not operated upon rails and motor vehicles 
 29.29  that are purchased on Indian reservations where the tribal 
 29.30  council has entered into a sales tax on motor vehicles refund 
 29.31  agreement with the state of Minnesota.  Motor vehicle does not 
 29.32  include snowmobiles or manufactured homes.  For purposes of 
 29.33  taxation only under this section, "motor vehicle" includes a 
 29.34  park trailer as defined in section 168.011, subdivision 8, 
 29.35  paragraph (b). 
 29.36     Sec. 35.  Minnesota Statutes 1994, section 297B.02, 
 30.1   subdivision 3, is amended to read: 
 30.2      Subd. 3.  [IN LIEU FOR COLLECTOR VEHICLES.] In lieu of the 
 30.3   tax imposed in subdivision 1, there is imposed a tax of $90 on 
 30.4   the purchase price of a passenger automobile or a fire truck 
 30.5   described in section 297B.025, subdivision 2. 
 30.6      Sec. 36.  Minnesota Statutes 1994, section 297B.025, 
 30.7   subdivision 2, is amended to read: 
 30.8      Subd. 2.  [COLLECTOR VEHICLES.] A passenger automobile that 
 30.9   is registered under section 168.10, subdivision 1a, 1b, 1c, 1d, 
 30.10  or 1h, or a fire truck registered under section 168.10, 
 30.11  subdivision 1c, shall be taxed under section 297B.02, 
 30.12  subdivision 3, and the registrar shall not designate as an 
 30.13  above-market automobile a passenger automobile or a fire truck 
 30.14  registered under those subdivisions.  If the vehicle is 
 30.15  subsequently registered in another class not under section 
 30.16  168.10, subdivision 1a, 1b, 1c, 1d, or 1h, within one year of 
 30.17  the date of registration under those subdivisions, it shall be 
 30.18  subject to the full excise tax imposed under subdivision 1. 
 30.19     Sec. 37.  Minnesota Statutes 1994, section 297B.032, is 
 30.20  amended to read: 
 30.21     297B.032 [REFUND ON PARK TRAILERS; APPROPRIATION.] 
 30.22     Notwithstanding the provisions of section 297B.02, or any 
 30.23  other law to the contrary, a portion of the sales tax on motor 
 30.24  vehicles paid on park trailers, as defined in section 168.011, 
 30.25  subdivision 8, paragraph (b), under this chapter shall be 
 30.26  refunded by the commissioner of revenue provided the following 
 30.27  conditions are met: 
 30.28     (1) the park trailer is purchased after January 1, 1993, 
 30.29  and before January 1, 1997; 
 30.30     (2) the owner paid the sales tax on motor vehicles on the 
 30.31  park trailer; 
 30.32     (3) property taxes have been imposed upon the park trailer 
 30.33  for at least the last two taxes payable years; and 
 30.34     (4) property taxes on the park trailer for the years cited 
 30.35  in clause (3) have been paid by the owner of the park trailer. 
 30.36     Upon application by the purchaser, on forms prescribed by 
 31.1   the commissioner of revenue, a refund equal to 35 percent of the 
 31.2   actual taxes paid, shall be paid to the purchaser.  The 
 31.3   application must include sufficient information, including a 
 31.4   copy of the sales invoice for the park trailer, and the property 
 31.5   tax statements for the years cited in clause (3), or a 
 31.6   reproduction thereof, with a notation from the county treasurer 
 31.7   that the taxes have been paid on the park trailer. 
 31.8      The amounts required to make the refunds are annually 
 31.9   appropriated to the commissioner of revenue from the general 
 31.10  fund.  The amount to be refunded shall bear interest at the rate 
 31.11  in section 270.76 after 60 days after the refund claim was made 
 31.12  until the date the refund is paid. 
 31.13     Sec. 38.  Laws 1991, chapter 291, article 8, section 28, 
 31.14  subdivision 1, is amended to read: 
 31.15     Subdivision 1.  [AUTHORIZATION.] Notwithstanding Minnesota 
 31.16  Statutes, section 469.190, 477A.016, or other law, in addition 
 31.17  to the tax authorized in Minnesota Statutes, section 469.190, 
 31.18  the city of Winona may, by ordinance, impose a tax of up to one 
 31.19  percent on the gross receipts from the furnishing for 
 31.20  consideration of lodging at a hotel, motel, rooming house, 
 31.21  tourist court, or resort, other than the renting or leasing of 
 31.22  it for a continuous period of 30 days or more.  The city may, by 
 31.23  ordinance, impose the tax authorized under this section on the 
 31.24  camping site receipts of a municipal campground. 
 31.25     Fifty percent of the proceeds of this tax shall be used to 
 31.26  retire the indebtedness of the Julius C. Wilke Steamboat 
 31.27  Center and.  Upon retirement of the debt, 50 percent of the 
 31.28  proceeds shall be used as directed in Minnesota Statutes, 
 31.29  section 469.190, subdivision 3.  The balance shall be used in 
 31.30  the manner of the tax proceeds may be used to promote tourist 
 31.31  activities, as determined by resolution of the council, for the 
 31.32  following purposes: 
 31.33     (1) improvements to the levee and its adjacent area; 
 31.34     (2) improvements to Prairie Island shoreline; 
 31.35     (3) improvements to the municipal marina; or 
 31.36     (4) as directed in Minnesota Statutes, section 469.190, 
 32.1   subdivision 3.  Upon retirement of the debt, the council shall 
 32.2   by ordinance reduce the tax by one-half percent or dedicate the 
 32.3   entire one percent in the manner directed in Minnesota Statutes, 
 32.4   section 469.190, subdivision 3. 
 32.5      The tax shall be collected in the same manner as other 
 32.6   taxes authorized under Minnesota Statutes, section 469.190. 
 32.7      Sec. 39.  Laws 1986, chapter 400, section 44, is amended to 
 32.8   read: 
 32.9      Sec. 44.  [DOWNTOWN TAXING AREA.] 
 32.10     If a bill is enacted into law in the 1986 legislative 
 32.11  session which authorizes the city of Minneapolis to issue bonds 
 32.12  and expend certain funds including taxes to finance the 
 32.13  acquisition and betterment of a convention center and related 
 32.14  facilities, which authorizes certain taxes to be levied in a 
 32.15  downtown taxing area, then, notwithstanding the provisions of 
 32.16  that law "downtown taxing area" shall mean the geographic area 
 32.17  bounded by the portion of the Mississippi River between I-35W 
 32.18  and Washington Avenue, the portion of Washington Avenue between 
 32.19  the river and I-35W, the portion of I-35W between Washington 
 32.20  Avenue and 8th Street South, the portion of 8th Street South 
 32.21  between I-35W and Portland Avenue South, the portion of Portland 
 32.22  Avenue South between 8th Street South and I-94, the portion of 
 32.23  I-94 from the intersection of Portland Avenue South to the 
 32.24  intersection of I-94 and the Burlington Northern Railroad 
 32.25  tracks, the portion of the Burlington Northern Railroad tracks 
 32.26  from I-94 to Main Street and including Nicollet Island, and the 
 32.27  portion of Main Street to Hennepin Avenue and the portion of 
 32.28  Hennepin Avenue between Main Street and 2nd Street S.E., and the 
 32.29  portion of 2nd Street S.E. between Main Street and Bank Street, 
 32.30  and the portion of Bank Street between 2nd Street S.E. and 
 32.31  University Avenue S.E., and the portion of University Avenue 
 32.32  S.E. between Bank Street and I-35W, and by I-35W from University 
 32.33  Avenue S.E., to the river.  The downtown taxing area excludes 
 32.34  the area bounded on the south and west by Oak Grove Street, on 
 32.35  the east by Spruce Place, and on the north by West 15th Street. 
 32.36     Sec. 40.  [EVALUATION.] 
 33.1      The commissioner of revenue shall conduct an evaluation to 
 33.2   determine the accuracy of taxes paid by counties on solid waste 
 33.3   collection and disposal services as required by Minnesota 
 33.4   Statutes 1994, section 297A.45.  The commissioner shall report, 
 33.5   by January 1, 1996, the results of the evaluation, both in the 
 33.6   aggregate and by county, to the chairs of the house committee on 
 33.7   taxes and the senate committee on taxes and tax laws, and to the 
 33.8   co-chairs of the legislative commission on waste management.  
 33.9   The final results of the evaluation are classified as public 
 33.10  data.  The commissioner shall not initiate or continue any 
 33.11  action to collect any underpayment from counties, or to 
 33.12  reimburse any overpayment to counties, of taxes on solid waste 
 33.13  collection and disposal services pursuant to Minnesota Statutes 
 33.14  1994, section 297A.45, until June 1, 1996.  The statute of 
 33.15  limitations for assessing, collecting, or refunding taxes 
 33.16  subject to the provisions of this section is tolled from the 
 33.17  date of enactment until June 1, 1996. 
 33.18     Sec. 41.  [AGRICULTURE PROCESSING FACILITY MATERIALS; 
 33.19  EXEMPTION.] 
 33.20     Subdivision 1.  [EXEMPTION; DEFINITION.] Purchases of 
 33.21  construction materials and supplies are exempt from the sales 
 33.22  and use taxes imposed under this chapter, regardless of whether 
 33.23  purchased by the owner or a contractor, if the materials and 
 33.24  supplies are used or consumed in constructing an agriculture 
 33.25  processing facility that meets the requirements of this 
 33.26  section.  For purposes of this section, "agricultural processing 
 33.27  facility" means land, buildings, structures, fixtures, and 
 33.28  improvements used or operated primarily for the processing or 
 33.29  production of marketable products from agricultural crops, 
 33.30  including waste and residues from agricultural crops, but not 
 33.31  including livestock or livestock products, poultry or poultry 
 33.32  products, or wood or wood products.  For purposes of this 
 33.33  section, "agricultural processing facility" does not include an 
 33.34  ethanol production facility.  
 33.35     Subd. 2.  [QUALIFICATIONS.] An agricultural processing 
 33.36  facility qualifies for the exemption provided under this section 
 34.1   if it meets each of the following requirements: 
 34.2      (a) The total investment in the facility must be at least 
 34.3   $8,500,000. 
 34.4      (b) The facility must be located in a municipality that has 
 34.5   a median household income that does not exceed $18,000 according 
 34.6   to the 1990 federal census information on income and poverty 
 34.7   status in 1989. 
 34.8      (c) The total investment in the facility must exceed an 
 34.9   amount equal to $12,000 per resident of the municipality in 
 34.10  which the facility is located. 
 34.11     Subd. 3.  [COLLECTION AND REFUND OF TAX.] The tax shall be 
 34.12  imposed and collected as if the rates under sections 297A.02, 
 34.13  subdivision 1, and 297A.021, applied, and then refunded in the 
 34.14  manner provided in section 297A.15, subdivision 5. 
 34.15     Subd. 4.  [EFFECTIVE DATE.] This section is effective for 
 34.16  sales made after March 31, 1995, and before March 31, 1996. 
 34.17     Sec. 42.  [ADVISORY COUNCIL; SALES TAX.] 
 34.18     Subdivision 1.  [CREATION; MEMBERSHIP.] (a) A state 
 34.19  advisory council is established to study the general and motor 
 34.20  vehicle sales and use taxes under Minnesota Statutes 1994, 
 34.21  chapters 297A and 297B, and to make recommendations to the 1996 
 34.22  legislature.  The study shall be completed and findings reported 
 34.23  to the legislature by February 1, 1996. 
 34.24     (b) The advisory council consists of 17 members who serve 
 34.25  at the pleasure of the appointing authority as follows: 
 34.26     (1) ten legislators; five members of the senate, including 
 34.27  two members of the minority party, appointed by the subcommittee 
 34.28  on committees of the committee on rules and administration and 
 34.29  five members of the house of representatives, including two 
 34.30  members of the minority party, appointed by the speaker; 
 34.31     (2) the commissioner of revenue or the commissioner's 
 34.32  designee; and 
 34.33     (3) six members of the public; two appointed by the 
 34.34  subcommittee on committees of the committee on rules and 
 34.35  administration of the senate, two appointed by the speaker of 
 34.36  the house, and two appointed by the governor.  At least one 
 35.1   member of the public that is appointed by each entity must 
 35.2   represent a consumer interest group or other private citizen 
 35.3   group, public policy organization, or university department of 
 35.4   public policy or economics. 
 35.5      Subd. 2.  [SCOPE OF STUDY.] (a) The purpose of the advisory 
 35.6   council is to: 
 35.7      (1) develop a framework of appropriate tax policy goals, 
 35.8   including but not limited to goals related to issues of equity, 
 35.9   efficiency, and understandability, to be used in evaluating the 
 35.10  overall sales tax system; 
 35.11     (2) evaluate the current sales and use tax system as it 
 35.12  relates to these policy goals, including identification of 
 35.13  current inconsistencies in treatment of various industries, 
 35.14  problems with compliance and administration, and the economic 
 35.15  impact of the system; 
 35.16     (3) analyze changes in the global and regional economy and 
 35.17  the potential problems that might arise in sales tax collection 
 35.18  and administration due to these changes, including but not 
 35.19  limited to impacts of international trade agreements (GATT and 
 35.20  NAFTA), and changes in technology and telecommunications; 
 35.21     (4) suggest options for changing the sales tax system, 
 35.22  including eliminating or changing exemptions, broadening the tax 
 35.23  base, or replacing it with an alternative tax system such as 
 35.24  value added tax or another form of consumption tax.  The options 
 35.25  should be evaluated in terms of advancing the policy goals 
 35.26  established under clause (1). 
 35.27     (b) The advisory council's report to the legislature must 
 35.28  include recommendations for modifying the sales and use tax 
 35.29  system in light of the tax policy goals established by the 
 35.30  council.  The report must also establish a tax policy framework 
 35.31  for evaluating other proposed changes in the sales tax. 
 35.32     Subd. 3.  [STAFF.] The department of revenue and 
 35.33  legislative staff shall provide administrative and staff 
 35.34  assistance when requested by the advisory council. 
 35.35     Subd. 4.  [COOPERATION BY OTHER AGENCIES.] The 
 35.36  commissioners of the department of trade and economic 
 36.1   development, the department of finance, and any other state 
 36.2   department or agency shall, upon request by the advisory 
 36.3   council, provide data or other information that is collected or 
 36.4   possessed by their agencies and that is necessary or useful in 
 36.5   conducting the study and preparing the report required by this 
 36.6   section. 
 36.7      Sec. 43.  [REPEALER.] 
 36.8      (a) Minnesota Statutes 1994, section 296.0261, is repealed. 
 36.9      (b) Minnesota Statutes 1994, section 297A.136, is repealed. 
 36.10     Sec. 44.  [EFFECTIVE DATE.] 
 36.11     Section 1 is effective the day following final enactment. 
 36.12     Sections 3 and 4 are effective June 1, 1995.  Section 4 is 
 36.13  repealed June 1, 2000. 
 36.14     Sections 5 to 21 and 43, paragraph (a), are effective July 
 36.15  1, 1995. 
 36.16     Sections 23, 28, 33, 40, 42, and the part of section 22 
 36.17  amending language in paragraph (i), clause (vii), are effective 
 36.18  the day following final enactment. 
 36.19     Sections 24 and 34 are effective for sales made after 
 36.20  December 31, 1996. 
 36.21     Section 25 is effective beginning with leases or rentals 
 36.22  made after June 30, 1995. 
 36.23     Section 26 is effective retroactively for sales after May 
 36.24  31, 1992. 
 36.25     Section 27 is effective for sales made after June 30, 1995. 
 36.26     Section 29 and the part of section 22 striking the language 
 36.27  after paragraph (h) are effective for sales after June 30, 1995. 
 36.28     Section 32 is effective for sales made after June 30, 1995, 
 36.29  and before July 1, 1996. 
 36.30     Sections 35 and 36 are effective for sales or transfers 
 36.31  made after June 30, 1995. 
 36.32     Section 38 is effective the day after the governing body of 
 36.33  the city of Winona complies with Minnesota Statutes,section 
 36.34  645.021, subdivision 3. 
 36.35     Section 39 is effective upon compliance by the Minneapolis 
 36.36  city council with Minnesota Statutes, section 645.021, 
 37.1   subdivision 3. 
 37.2      Section 43, paragraph (b), is effective for sales of 900 
 37.3   information services made after June 30, 1995. 
 37.4                              ARTICLE 3
 37.5                            PROPERTY TAXES
 37.6      Section 1.  Minnesota Statutes 1994, section 124.918, 
 37.7   subdivision 1, is amended to read: 
 37.8      Subdivision 1.  [CERTIFY LEVY LIMITS.] By September 1 8, 
 37.9   the commissioner shall notify the school districts of their levy 
 37.10  limits.  The commissioner shall certify to the county auditors 
 37.11  the levy limits for all school districts headquartered in the 
 37.12  respective counties together with adjustments for errors in 
 37.13  levies not penalized pursuant to section 124.918, subdivision 3, 
 37.14  as well as adjustments to final pupil unit counts. A school 
 37.15  district may require the commissioner to review the 
 37.16  certification and to present evidence in support of modification 
 37.17  of the certification. 
 37.18     The county auditor shall reduce levies for any excess of 
 37.19  levies over levy limitations pursuant to section 275.16.  Such 
 37.20  reduction in excess levies may, at the discretion of the school 
 37.21  district, be spread over two calendar years. 
 37.22     Sec. 2.  Minnesota Statutes 1994, section 124.918, 
 37.23  subdivision 2, is amended to read: 
 37.24     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
 37.25  15 30 of each year each district shall notify the commissioner 
 37.26  of education of the proposed levies in compliance with the levy 
 37.27  limitations of this chapter and chapters 124A, 124B, 136C, and 
 37.28  136D.  By January 15 of each year each district shall notify the 
 37.29  commissioner of education of the final levies certified.  The 
 37.30  commissioner of education shall prescribe the form of these 
 37.31  notifications and may request any additional information 
 37.32  necessary to compute certified levy amounts. 
 37.33     Sec. 3.  Minnesota Statutes 1994, section 168.012, 
 37.34  subdivision 9, is amended to read: 
 37.35     Subd. 9.  [MANUFACTURED HOMES AND PARK TRAILERS.] 
 37.36  Manufactured homes and park trailers shall not be taxed as motor 
 38.1   vehicles using the public streets and highways and shall be 
 38.2   exempt from the motor vehicle tax provisions of this chapter.  
 38.3   Except as provided in section 273.125, manufactured homes and 
 38.4   park trailers shall be taxed as personal property. The 
 38.5   provisions of Minnesota Statutes 1957, section 272.02 or any 
 38.6   other act providing for tax exemption shall be inapplicable to 
 38.7   manufactured homes and park trailers, except such manufactured 
 38.8   homes as are held by a licensed dealer and exempted as 
 38.9   inventory.  Travel trailers not conspicuously displaying current 
 38.10  registration plates on the property tax assessment date shall be 
 38.11  taxed as manufactured homes if occupied as human dwelling 
 38.12  places.  Park trailers not used on the highway during any 
 38.13  calendar year must be taxed as manufactured homes if occupied as 
 38.14  human dwelling places.  Park trailers used on the highway during 
 38.15  any calendar year must be taxed under section 168.013, 
 38.16  subdivision 1j. 
 38.17     Sec. 4.  Minnesota Statutes 1994, section 272.02, 
 38.18  subdivision 1, is amended to read: 
 38.19     Subdivision 1.  All property described in this section to 
 38.20  the extent herein limited shall be exempt from taxation: 
 38.21     (1) All public burying grounds. 
 38.22     (2) All public schoolhouses. 
 38.23     (3) All public hospitals. 
 38.24     (4) All academies, colleges, and universities, and all 
 38.25  seminaries of learning. 
 38.26     (5) All churches, church property, and houses of worship. 
 38.27     (6) Institutions of purely public charity except parcels of 
 38.28  property containing structures and the structures described in 
 38.29  section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
 38.30  and (3), or paragraph (d), other than those that qualify for 
 38.31  exemption under clause (25). 
 38.32     (7) All public property exclusively used for any public 
 38.33  purpose. 
 38.34     (8) Except for the taxable personal property enumerated 
 38.35  below, all personal property and the property described in 
 38.36  section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
 39.1   exempt.  
 39.2      The following personal property shall be taxable:  
 39.3      (a) personal property which is part of an electric 
 39.4   generating, transmission, or distribution system or a pipeline 
 39.5   system transporting or distributing water, gas, crude oil, or 
 39.6   petroleum products or mains and pipes used in the distribution 
 39.7   of steam or hot or chilled water for heating or cooling 
 39.8   buildings and structures; 
 39.9      (b) railroad docks and wharves which are part of the 
 39.10  operating property of a railroad company as defined in section 
 39.11  270.80; 
 39.12     (c) personal property defined in section 272.03, 
 39.13  subdivision 2, clause (3); 
 39.14     (d) leasehold or other personal property interests which 
 39.15  are taxed pursuant to section 272.01, subdivision 2; 273.124, 
 39.16  subdivision 7; or 273.19, subdivision 1; or any other law 
 39.17  providing the property is taxable as if the lessee or user were 
 39.18  the fee owner; 
 39.19     (e) manufactured homes and sectional structures, including 
 39.20  storage sheds, decks, and similar removable improvements 
 39.21  constructed on the site of a manufactured home, sectional 
 39.22  structure, park trailer or travel trailer as provided in section 
 39.23  273.125, subdivision 8, paragraph (f); and 
 39.24     (f) flight property as defined in section 270.071.  
 39.25     (9) Personal property used primarily for the abatement and 
 39.26  control of air, water, or land pollution to the extent that it 
 39.27  is so used, and real property which is used primarily for 
 39.28  abatement and control of air, water, or land pollution as part 
 39.29  of an agricultural operation, as a part of a centralized 
 39.30  treatment and recovery facility operating under a permit issued 
 39.31  by the Minnesota pollution control agency pursuant to chapters 
 39.32  115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
 39.33  and 7045.0020 to 7045.1260, as a wastewater treatment facility 
 39.34  and for the treatment, recovery, and stabilization of metals, 
 39.35  oils, chemicals, water, sludges, or inorganic materials from 
 39.36  hazardous industrial wastes, or as part of an electric 
 40.1   generation system.  For purposes of this clause, personal 
 40.2   property includes ponderous machinery and equipment used in a 
 40.3   business or production activity that at common law is considered 
 40.4   real property. 
 40.5      Any taxpayer requesting exemption of all or a portion of 
 40.6   any real property or any equipment or device, or part thereof, 
 40.7   operated primarily for the control or abatement of air or water 
 40.8   pollution shall file an application with the commissioner of 
 40.9   revenue.  The equipment or device shall meet standards, rules, 
 40.10  or criteria prescribed by the Minnesota pollution control 
 40.11  agency, and must be installed or operated in accordance with a 
 40.12  permit or order issued by that agency.  The Minnesota pollution 
 40.13  control agency shall upon request of the commissioner furnish 
 40.14  information or advice to the commissioner.  On determining that 
 40.15  property qualifies for exemption, the commissioner shall issue 
 40.16  an order exempting the property from taxation.  The equipment or 
 40.17  device shall continue to be exempt from taxation as long as the 
 40.18  permit issued by the Minnesota pollution control agency remains 
 40.19  in effect. 
 40.20     (10) Wetlands.  For purposes of this subdivision, 
 40.21  "wetlands" means:  (i) land described in section 103G.005, 
 40.22  subdivision 18; (ii) land which is mostly under water, produces 
 40.23  little if any income, and has no use except for wildlife or 
 40.24  water conservation purposes, provided it is preserved in its 
 40.25  natural condition and drainage of it would be legal, feasible, 
 40.26  and economically practical for the production of livestock, 
 40.27  dairy animals, poultry, fruit, vegetables, forage and grains, 
 40.28  except wild rice; or (iii) land in a wetland preservation area 
 40.29  under sections 103F.612 to 103F.616.  "Wetlands" under items (i) 
 40.30  and (ii) include adjacent land which is not suitable for 
 40.31  agricultural purposes due to the presence of the wetlands, but 
 40.32  do not include woody swamps containing shrubs or trees, wet 
 40.33  meadows, meandered water, streams, rivers, and floodplains or 
 40.34  river bottoms.  Exemption of wetlands from taxation pursuant to 
 40.35  this section shall not grant the public any additional or 
 40.36  greater right of access to the wetlands or diminish any right of 
 41.1   ownership to the wetlands. 
 41.2      (11) Native prairie.  The commissioner of the department of 
 41.3   natural resources shall determine lands in the state which are 
 41.4   native prairie and shall notify the county assessor of each 
 41.5   county in which the lands are located.  Pasture land used for 
 41.6   livestock grazing purposes shall not be considered native 
 41.7   prairie for the purposes of this clause.  Upon receipt of an 
 41.8   application for the exemption provided in this clause for lands 
 41.9   for which the assessor has no determination from the 
 41.10  commissioner of natural resources, the assessor shall refer the 
 41.11  application to the commissioner of natural resources who shall 
 41.12  determine within 30 days whether the land is native prairie and 
 41.13  notify the county assessor of the decision.  Exemption of native 
 41.14  prairie pursuant to this clause shall not grant the public any 
 41.15  additional or greater right of access to the native prairie or 
 41.16  diminish any right of ownership to it. 
 41.17     (12) Property used in a continuous program to provide 
 41.18  emergency shelter for victims of domestic abuse, provided the 
 41.19  organization that owns and sponsors the shelter is exempt from 
 41.20  federal income taxation pursuant to section 501(c)(3) of the 
 41.21  Internal Revenue Code of 1986, as amended through December 31, 
 41.22  1992, notwithstanding the fact that the sponsoring organization 
 41.23  receives funding under section 8 of the United States Housing 
 41.24  Act of 1937, as amended. 
 41.25     (13) If approved by the governing body of the municipality 
 41.26  in which the property is located, property not exceeding one 
 41.27  acre which is owned and operated by any senior citizen group or 
 41.28  association of groups that in general limits membership to 
 41.29  persons age 55 or older and is organized and operated 
 41.30  exclusively for pleasure, recreation, and other nonprofit 
 41.31  purposes, no part of the net earnings of which inures to the 
 41.32  benefit of any private shareholders; provided the property is 
 41.33  used primarily as a clubhouse, meeting facility, or recreational 
 41.34  facility by the group or association and the property is not 
 41.35  used for residential purposes on either a temporary or permanent 
 41.36  basis. 
 42.1      (14) To the extent provided by section 295.44, real and 
 42.2   personal property used or to be used primarily for the 
 42.3   production of hydroelectric or hydromechanical power on a site 
 42.4   owned by the state or a local governmental unit which is 
 42.5   developed and operated pursuant to the provisions of section 
 42.6   103G.535. 
 42.7      (15) If approved by the governing body of the municipality 
 42.8   in which the property is located, and if construction is 
 42.9   commenced after June 30, 1983:  
 42.10     (a) a "direct satellite broadcasting facility" operated by 
 42.11  a corporation licensed by the federal communications commission 
 42.12  to provide direct satellite broadcasting services using direct 
 42.13  broadcast satellites operating in the 12-ghz. band; and 
 42.14     (b) a "fixed satellite regional or national program service 
 42.15  facility" operated by a corporation licensed by the federal 
 42.16  communications commission to provide fixed satellite-transmitted 
 42.17  regularly scheduled broadcasting services using satellites 
 42.18  operating in the 6-ghz. band. 
 42.19  An exemption provided by clause (15) shall apply for a period 
 42.20  not to exceed five years.  When the facility no longer qualifies 
 42.21  for exemption, it shall be placed on the assessment rolls as 
 42.22  provided in subdivision 4.  Before approving a tax exemption 
 42.23  pursuant to this paragraph, the governing body of the 
 42.24  municipality shall provide an opportunity to the members of the 
 42.25  county board of commissioners of the county in which the 
 42.26  facility is proposed to be located and the members of the school 
 42.27  board of the school district in which the facility is proposed 
 42.28  to be located to meet with the governing body.  The governing 
 42.29  body shall present to the members of those boards its estimate 
 42.30  of the fiscal impact of the proposed property tax exemption.  
 42.31  The tax exemption shall not be approved by the governing body 
 42.32  until the county board of commissioners has presented its 
 42.33  written comment on the proposal to the governing body or 30 days 
 42.34  have passed from the date of the transmittal by the governing 
 42.35  body to the board of the information on the fiscal impact, 
 42.36  whichever occurs first. 
 43.1      (16) Real and personal property owned and operated by a 
 43.2   private, nonprofit corporation exempt from federal income 
 43.3   taxation pursuant to United States Code, title 26, section 
 43.4   501(c)(3), primarily used in the generation and distribution of 
 43.5   hot water for heating buildings and structures.  
 43.6      (17) Notwithstanding section 273.19, state lands that are 
 43.7   leased from the department of natural resources under section 
 43.8   92.46. 
 43.9      (18) Electric power distribution lines and their 
 43.10  attachments and appurtenances, that are used primarily for 
 43.11  supplying electricity to farmers at retail.  
 43.12     (19) Transitional housing facilities.  "Transitional 
 43.13  housing facility" means a facility that meets the following 
 43.14  requirements.  (i) It provides temporary housing to individuals, 
 43.15  couples, or families.  (ii) It has the purpose of reuniting 
 43.16  families and enabling parents or individuals to obtain 
 43.17  self-sufficiency, advance their education, get job training, or 
 43.18  become employed in jobs that provide a living wage.  (iii) It 
 43.19  provides support services such as child care, work readiness 
 43.20  training, and career development counseling; and a 
 43.21  self-sufficiency program with periodic monitoring of each 
 43.22  resident's progress in completing the program's goals.  (iv) It 
 43.23  provides services to a resident of the facility for at least 
 43.24  three months but no longer than three years, except residents 
 43.25  enrolled in an educational or vocational institution or job 
 43.26  training program.  These residents may receive services during 
 43.27  the time they are enrolled but in no event longer than four 
 43.28  years.  (v) It is owned and operated or under lease from a unit 
 43.29  of government or governmental agency under a property 
 43.30  disposition program and operated by one or more organizations 
 43.31  exempt from federal income tax under section 501(c)(3) of the 
 43.32  Internal Revenue Code of 1986, as amended through December 31, 
 43.33  1992.  This exemption applies notwithstanding the fact that the 
 43.34  sponsoring organization receives financing by a direct federal 
 43.35  loan or federally insured loan or a loan made by the Minnesota 
 43.36  housing finance agency under the provisions of either Title II 
 44.1   of the National Housing Act or the Minnesota housing finance 
 44.2   agency law of 1971 or rules promulgated by the agency pursuant 
 44.3   to it, and notwithstanding the fact that the sponsoring 
 44.4   organization receives funding under Section 8 of the United 
 44.5   States Housing Act of 1937, as amended. 
 44.6      (20) Real and personal property, including leasehold or 
 44.7   other personal property interests, owned and operated by a 
 44.8   corporation if more than 50 percent of the total voting power of 
 44.9   the stock of the corporation is owned collectively by:  (i) the 
 44.10  board of regents of the University of Minnesota, (ii) the 
 44.11  University of Minnesota Foundation, an organization exempt from 
 44.12  federal income taxation under section 501(c)(3) of the Internal 
 44.13  Revenue Code of 1986, as amended through December 31, 1992, and 
 44.14  (iii) a corporation organized under chapter 317A, which by its 
 44.15  articles of incorporation is prohibited from providing pecuniary 
 44.16  gain to any person or entity other than the regents of the 
 44.17  University of Minnesota; which property is used primarily to 
 44.18  manage or provide goods, services, or facilities utilizing or 
 44.19  relating to large-scale advanced scientific computing resources 
 44.20  to the regents of the University of Minnesota and others. 
 44.21     (21) (a) Wind energy conversion systems, as defined in 
 44.22  section 216C.06, subdivision 12, installed after January 1, 
 44.23  1991, and before January 2, 1995, and used as an electric power 
 44.24  source, are exempt. 
 44.25     (b) Wind energy conversion systems, as defined in section 
 44.26  216C.06, subdivision 12, installed after January 1, 1995, 
 44.27  including the foundation or support pad, which are (i) used as 
 44.28  an electric power source; (ii) located within one county and 
 44.29  owned by the same owner; and (iii) produce two megawatts or less 
 44.30  of electricity as measured by nameplate ratings, are exempt. 
 44.31     (c) Wind energy conversion systems, as defined in section 
 44.32  216C.06, subdivision 12, installed after January 1, 1995, and 
 44.33  used as an electric power source but not exempt under item (b), 
 44.34  are treated as follows:  (i) the foundation and support pad are 
 44.35  taxable; (ii) the associated supporting and protective 
 44.36  structures are exempt for the first five assessment years after 
 45.1   they have been constructed, and thereafter, 30 percent of the 
 45.2   market value of the associated supporting and protective 
 45.3   structures are taxable; and (iii) the turbines, blades, 
 45.4   transformers, and its related equipment, are exempt. 
 45.5      (22) Containment tanks, cache basins, and that portion of 
 45.6   the structure needed for the containment facility used to 
 45.7   confine agricultural chemicals as defined in section 18D.01, 
 45.8   subdivision 3, as required by the commissioner of agriculture 
 45.9   under chapter 18B or 18C. 
 45.10     (23) Photovoltaic devices, as defined in section 216C.06, 
 45.11  subdivision 13, installed after January 1, 1992, and used to 
 45.12  produce or store electric power. 
 45.13     (24) Real and personal property owned and operated by a 
 45.14  private, nonprofit corporation exempt from federal income 
 45.15  taxation pursuant to United States Code, title 26, section 
 45.16  501(c)(3), primarily used for an ice arena or ice rink, and used 
 45.17  primarily for youth and high school programs. 
 45.18     (25) A structure that is situated on real property that is 
 45.19  used for: 
 45.20     (i) housing for the elderly or for low- and moderate-income 
 45.21  families as defined in Title II of the National Housing Act, as 
 45.22  amended through December 31, 1990, and funded by a direct 
 45.23  federal loan or federally insured loan made pursuant to Title II 
 45.24  of the act; or 
 45.25     (ii) housing lower income families or elderly or 
 45.26  handicapped persons, as defined in section 8 of the United 
 45.27  States Housing Act of 1937, as amended. 
 45.28     In order for a structure to be exempt under (i) or (ii), it 
 45.29  must also meet each of the following criteria: 
 45.30     (A) is owned by an entity which is operated as a nonprofit 
 45.31  corporation organized under chapter 317A; 
 45.32     (B) is owned by an entity which has not entered into a 
 45.33  housing assistance payments contract under section 8 of the 
 45.34  United States Housing Act of 1937, or, if the entity which owns 
 45.35  the structure has entered into a housing assistance payments 
 45.36  contract under section 8 of the United States Housing Act of 
 46.1   1937, the contract provides assistance for less than 90 percent 
 46.2   of the dwelling units in the structure, excluding dwelling units 
 46.3   intended for management or maintenance personnel; 
 46.4      (C) operates an on-site congregate dining program in which 
 46.5   participation by residents is mandatory, and provides assisted 
 46.6   living or similar social and physical support services for 
 46.7   residents; and 
 46.8      (D) was not assessed and did not pay tax under chapter 273 
 46.9   prior to the 1991 levy, while meeting the other conditions of 
 46.10  this clause. 
 46.11     An exemption under this clause remains in effect for taxes 
 46.12  levied in each year or partial year of the term of its permanent 
 46.13  financing. 
 46.14     (26) Real and personal property that is located in the 
 46.15  Superior National Forest, and owned or leased and operated by a 
 46.16  nonprofit organization that is exempt from federal income 
 46.17  taxation under section 501(c)(3) of the Internal Revenue Code of 
 46.18  1986, as amended through December 31, 1992, and primarily used 
 46.19  to provide recreational opportunities for disabled veterans and 
 46.20  their families. 
 46.21     (27) Manure pits and appurtenances, which may include 
 46.22  slatted floors and pipes, installed or operated in accordance 
 46.23  with a permit, order, or certificate of compliance issued by the 
 46.24  Minnesota pollution control agency.  The exemption shall 
 46.25  continue for as long as the permit, order, or certificate issued 
 46.26  by the Minnesota pollution control agency remains in effect. 
 46.27     (28) Notwithstanding clause (8), item (a), attached 
 46.28  machinery and other personal property which is part of a 
 46.29  facility containing a cogeneration system as described in 
 46.30  section 216B.166, subdivision 2, paragraph (a), if the 
 46.31  cogeneration system has met the following criteria:  (i) the 
 46.32  system utilizes natural gas as a primary fuel and the 
 46.33  cogenerated steam initially replaces steam generated from 
 46.34  existing thermal boilers utilizing coal; (ii) the facility 
 46.35  developer is selected as a result of a procurement process 
 46.36  ordered by the public utilities commission; and (iii) 
 47.1   construction of the facility is commenced after July 1, 1994, 
 47.2   and before July 1, 1997. 
 47.3      (29) Real property acquired by a home rule charter city, 
 47.4   statutory city, county, town, or school district under a lease 
 47.5   purchase agreement or an installment purchase contract during 
 47.6   the term of the lease purchase agreement as long as and to the 
 47.7   extent that the property is used by the city, county, town, or 
 47.8   school district and devoted to a public use and to the extent it 
 47.9   is not subleased to any private individual, entity, association, 
 47.10  or corporation in connection with a business or enterprise 
 47.11  operated for profit. 
 47.12     Sec. 5.  [272.027] [PERSONAL PROPERTY USED TO GENERATE 
 47.13  ELECTRICITY FOR PRODUCTION AND RESALE.] 
 47.14     Personal property used to generate electric power is exempt 
 47.15  from property taxation if the electric power is used to 
 47.16  manufacture or produce goods, products, or services, other than 
 47.17  electric power, by the owner of the electric generation plant.  
 47.18  The exemption does not apply to property used to produce 
 47.19  electric power for sale to others and does not apply to real 
 47.20  property.  In determining the value subject to tax, a 
 47.21  proportionate share of the value of the generating facilities, 
 47.22  equal to the proportion that the power sold to others bears to 
 47.23  the total generation of the plant, is subject to the general 
 47.24  property tax in the same manner as other property.  Power 
 47.25  generated in such a plant and exchanged for an equivalent amount 
 47.26  of power that is used for the manufacture or production of 
 47.27  goods, products, or services other than electric power by the 
 47.28  owner of the generating plant is considered to be used by the 
 47.29  owner of the plant. 
 47.30     Sec. 6.  Minnesota Statutes 1994, section 272.115, 
 47.31  subdivision 1, is amended to read: 
 47.32     Subdivision 1.  Whenever any real estate is sold for a 
 47.33  consideration in excess of $1,000, whether by warranty deed, 
 47.34  quitclaim deed, contract for deed or any other method of sale, 
 47.35  the grantor, grantee or the legal agent of either shall file a 
 47.36  certificate of value with the county auditor in the county in 
 48.1   which the property is located when the deed or other document is 
 48.2   presented for recording.  Contract for deeds are subject to 
 48.3   recording under section 507.235, subdivision 1.  Value shall, in 
 48.4   the case of any deed not a gift, be the amount of the full 
 48.5   actual consideration thereof, paid or to be paid, including the 
 48.6   amount of any lien or liens assumed.  The items and value of 
 48.7   personal property transferred with the real property must be 
 48.8   listed and deducted from the sale price.  The certificate of 
 48.9   value shall include the classification to which the property 
 48.10  belongs for the purpose of determining the fair market value of 
 48.11  the property.  The certificate shall include financing terms and 
 48.12  conditions of the sale which are necessary to determine the 
 48.13  actual, present value of the sale price for purposes of the 
 48.14  sales ratio study.  The commissioner of revenue shall promulgate 
 48.15  administrative rules specifying the financing terms and 
 48.16  conditions which must be included on the certificate.  Pursuant 
 48.17  to the authority of the commissioner of revenue in section 
 48.18  270.066, the certificate of value must include the social 
 48.19  security number or the federal employer identification number of 
 48.20  the grantors and grantees.  The identification numbers of the 
 48.21  grantors and grantees are private data on individuals or 
 48.22  nonpublic data as defined in section 13.02, subdivisions 9 and 
 48.23  12, but, notwithstanding that section, the private or nonpublic 
 48.24  data may be disclosed to the commissioner of revenue for 
 48.25  purposes of tax administration. 
 48.26     Sec. 7.  Minnesota Statutes 1994, section 273.124, 
 48.27  subdivision 1, is amended to read: 
 48.28     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
 48.29  that is occupied and used for the purposes of a homestead by its 
 48.30  owner, who must be a Minnesota resident, is a residential 
 48.31  homestead.  
 48.32     Agricultural land, as defined in section 273.13, 
 48.33  subdivision 23, that is occupied and used as a homestead by its 
 48.34  owner, who must be a Minnesota resident, is an agricultural 
 48.35  homestead. 
 48.36     Dates for establishment of a homestead and homestead 
 49.1   treatment provided to particular types of property are as 
 49.2   provided in this section.  
 49.3      Property of a trustee, beneficiary, or grantor of a trust 
 49.4   is not disqualified from receiving homestead benefits if the 
 49.5   homestead requirements under this chapter are satisfied. 
 49.6      The assessor shall require proof, as provided in 
 49.7   subdivision 13, of the facts upon which classification as a 
 49.8   homestead may be determined.  Notwithstanding any other law, the 
 49.9   assessor may at any time require a homestead application to be 
 49.10  filed in order to verify that any property classified as a 
 49.11  homestead continues to be eligible for homestead status. 
 49.12     When there is a name change or a transfer of homestead 
 49.13  property, the assessor may reclassify the property in the next 
 49.14  assessment unless a homestead application is filed to verify 
 49.15  that the property continues to qualify for homestead 
 49.16  classification. 
 49.17     (b) For purposes of this section, homestead property shall 
 49.18  include property which is used for purposes of the homestead but 
 49.19  is separated from the homestead by a road, street, lot, 
 49.20  waterway, or other similar intervening property.  The term "used 
 49.21  for purposes of the homestead" shall include but not be limited 
 49.22  to uses for gardens, garages, or other outbuildings commonly 
 49.23  associated with a homestead, but shall not include vacant land 
 49.24  held primarily for future development.  In order to receive 
 49.25  homestead treatment for the noncontiguous property, the owner 
 49.26  shall apply for it to the assessor by July 1 of the year when 
 49.27  the treatment is initially sought.  After initial qualification 
 49.28  for the homestead treatment, additional applications for 
 49.29  subsequent years are not required. 
 49.30     (c) Residential real estate that is occupied and used for 
 49.31  purposes of a homestead by a relative of the owner is a 
 49.32  homestead but only to the extent of the homestead treatment that 
 49.33  would be provided if the related owner occupied the property.  
 49.34  For purposes of this paragraph and paragraph (f), "relative" 
 49.35  means a parent, stepparent, child, stepchild, grandparent, 
 49.36  grandchild, brother, sister, uncle, or aunt.  This relationship 
 50.1   may be by blood or marriage.  Property that was classified as 
 50.2   seasonal recreational residential property at the time when 
 50.3   treatment under this paragraph would first apply shall continue 
 50.4   to be classified as seasonal recreational residential property 
 50.5   for the first four assessment years beginning after the date 
 50.6   when the relative of the owner occupies the property as a 
 50.7   homestead will not be reclassified as a homestead unless it is 
 50.8   occupied as a homestead by the owner; this delay prohibition 
 50.9   also applies to property that, in the absence of this paragraph, 
 50.10  would have been classified as seasonal recreational residential 
 50.11  property at the time when the residence was constructed.  
 50.12  Neither the related occupant nor the owner of the property may 
 50.13  claim a property tax refund under chapter 290A for a homestead 
 50.14  occupied by a relative.  In the case of a residence located on 
 50.15  agricultural land, only the house, garage, and immediately 
 50.16  surrounding one acre of land shall be classified as a homestead 
 50.17  under this paragraph, except as provided in paragraph (d). 
 50.18     (d) Agricultural property that is occupied and used for 
 50.19  purposes of a homestead by a relative of the owner, is a 
 50.20  homestead, only to the extent of the homestead treatment that 
 50.21  would be provided if the related owner occupied the property, 
 50.22  and only if all of the following criteria are met: 
 50.23     (1) the relative who is occupying the agricultural property 
 50.24  is a son, daughter, father, or mother of the owner of the 
 50.25  agricultural property or a son or daughter of the spouse of the 
 50.26  owner of the agricultural property, 
 50.27     (2) the owner of the agricultural property must be a 
 50.28  Minnesota resident, 
 50.29     (3) the owner of the agricultural property must not receive 
 50.30  homestead treatment on any other agricultural property in 
 50.31  Minnesota, and 
 50.32     (4) the owner of the agricultural property is limited to 
 50.33  only one agricultural homestead per family under this paragraph. 
 50.34     Neither the related occupant nor the owner of the property 
 50.35  may claim a property tax refund under chapter 290A for a 
 50.36  homestead occupied by a relative qualifying under this 
 51.1   paragraph.  For purposes of this paragraph, "agricultural 
 51.2   property" means the house, garage, other farm buildings and 
 51.3   structures, and agricultural land. 
 51.4      Application must be made to the assessor by the owner of 
 51.5   the agricultural property to receive homestead benefits under 
 51.6   this paragraph.  The assessor may require the necessary proof 
 51.7   that the requirements under this paragraph have been met. 
 51.8      (e) In the case of property owned by a property owner who 
 51.9   is married, the assessor must not deny homestead treatment in 
 51.10  whole or in part if only one of the spouses occupies the 
 51.11  property and the other spouse is absent due to:  (1) marriage 
 51.12  dissolution proceedings, (2) legal separation, (3) employment or 
 51.13  self-employment in another location as provided under 
 51.14  subdivision 13, or (4) residence in a nursing home or boarding 
 51.15  care facility, or (5) other personal circumstances causing the 
 51.16  spouses to live separately, not including an intent to obtain 
 51.17  two homestead classifications for property tax purposes.  To 
 51.18  qualify under clause (3), the spouse's place of employment or 
 51.19  self-employment must be at least 50 miles distant from the other 
 51.20  spouse's place of employment, and the homesteads must be at 
 51.21  least 50 miles distant from each other.  Homestead treatment, in 
 51.22  whole or in part, shall not be denied to the spouse of an owner 
 51.23  if he or she previously occupied the residence with the owner 
 51.24  and the absence of the owner is due to one of the exceptions 
 51.25  provided in this paragraph. 
 51.26     (f) If an individual is purchasing property with the intent 
 51.27  of claiming it as a homestead and is required by the terms of 
 51.28  the financing agreement to have a relative shown on the deed as 
 51.29  a coowner, the assessor shall allow a full homestead 
 51.30  classification.  This provision only applies to first-time 
 51.31  purchasers, whether married or single, or to a person who had 
 51.32  previously been married and is purchasing as a single individual 
 51.33  for the first time.  The application for homestead benefits must 
 51.34  be on a form prescribed by the commissioner and must contain the 
 51.35  data necessary for the assessor to determine if full homestead 
 51.36  benefits are warranted. 
 52.1      Sec. 8.  Minnesota Statutes 1994, section 273.124, 
 52.2   subdivision 13, is amended to read: 
 52.3      Subd. 13.  [HOMESTEAD APPLICATION.] (a) A person who meets 
 52.4   the homestead requirements under subdivision 1 must file a 
 52.5   homestead application with the county assessor to initially 
 52.6   obtain homestead classification. 
 52.7      (b) On or before January 2, 1993, each county assessor 
 52.8   shall mail a homestead application to the owner of each parcel 
 52.9   of property within the county which was classified as homestead 
 52.10  for the 1992 assessment year.  The format and contents of a 
 52.11  uniform homestead application shall be prescribed by the 
 52.12  commissioner of revenue.  The commissioner shall consult with 
 52.13  the chairs of the house and senate tax committees on the 
 52.14  contents of the homestead application form.  The application 
 52.15  must clearly inform the taxpayer that this application must be 
 52.16  signed by all owners who occupy the property or by the 
 52.17  qualifying relative and returned to the county assessor in order 
 52.18  for the property to continue receiving homestead treatment.  The 
 52.19  envelope containing the homestead application shall clearly 
 52.20  identify its contents and alert the taxpayer of its necessary 
 52.21  immediate response. 
 52.22     (c) Every property owner applying for homestead 
 52.23  classification must furnish to the county assessor the social 
 52.24  security number of each occupant who is listed as an owner of 
 52.25  the property on the deed of record, the name and address of each 
 52.26  owner who does not occupy the property, and the name and social 
 52.27  security number of each owner's spouse who occupies the 
 52.28  property.  The application must be signed by each owner who 
 52.29  occupies the property and by each owner's spouse who occupies 
 52.30  the property, or, in the case of property that qualifies as a 
 52.31  homestead under subdivision 1, paragraph (c), by the qualifying 
 52.32  relative. 
 52.33     If a property owner occupies a homestead, the property 
 52.34  owner's spouse may not claim another property as a homestead 
 52.35  unless the property owner and the property owner's spouse file 
 52.36  with the assessor an affidavit or other proof required by the 
 53.1   assessor stating that the property owner's spouse does not 
 53.2   occupy the homestead because marriage dissolution proceedings 
 53.3   are pending, the spouses are legally separated, or the spouse's 
 53.4   employment or self-employment location requires the spouse to 
 53.5   have a separate homestead.  The assessor may require proof of 
 53.6   employment or self-employment and employment or self-employment 
 53.7   location, or proof of dissolution proceedings or legal 
 53.8   separation qualifies as a homestead under subdivision 1, 
 53.9   paragraph (e). 
 53.10     If the social security number or affidavit or other proof 
 53.11  is not provided, the county assessor shall classify the property 
 53.12  as nonhomestead.  Owners or spouses occupying residences owned 
 53.13  by their spouses and previously occupied with the other spouse, 
 53.14  either of whom fail to include the other spouse's name and 
 53.15  social security number of the homestead application or provide 
 53.16  the affidavits or other proof requested, will be deemed to have 
 53.17  elected to receive only partial homestead treatment of their 
 53.18  residence.  The remainder of the residence will be classified as 
 53.19  nonhomestead residential.  When an owner or spouse's name and 
 53.20  social security number appear on homestead applications for two 
 53.21  separate residences and only one application is signed, the 
 53.22  owner or spouse will be deemed to have elected to homestead the 
 53.23  residence for which the application was signed. 
 53.24     The social security numbers or affidavits or other proofs 
 53.25  of the property owners and spouses are private data on 
 53.26  individuals as defined by section 13.02, subdivision 12, but, 
 53.27  notwithstanding that section, the private data may be disclosed 
 53.28  to the commissioner of revenue, or, for purposes of proceeding 
 53.29  under the revenue recapture act to recover personal property 
 53.30  taxes owing, to the county treasurer. 
 53.31     (d) If residential real estate is occupied and used for 
 53.32  purposes of a homestead by a relative of the owner and qualifies 
 53.33  for a homestead under subdivision 1, paragraph (c), in order for 
 53.34  the property to receive homestead status, a homestead 
 53.35  application must be filed with the assessor.  The social 
 53.36  security number of each relative occupying the property and the 
 54.1   social security number of each owner who is related to an 
 54.2   occupant of the property shall be required on the homestead 
 54.3   application filed under this subdivision.  If a different 
 54.4   relative of the owner subsequently occupies the property, the 
 54.5   owner of the property must notify the assessor within 30 days of 
 54.6   the change in occupancy.  The social security number of a 
 54.7   relative occupying the property is private data on individuals 
 54.8   as defined by section 13.02, subdivision 12, but may be 
 54.9   disclosed to the commissioner of revenue.  
 54.10     (e) The homestead application shall also notify the 
 54.11  property owners that the application filed under this section 
 54.12  will not be mailed annually and that if the property is granted 
 54.13  homestead status for the 1993 assessment, or any assessment year 
 54.14  thereafter, that same property shall remain classified as 
 54.15  homestead until the property is sold or transferred to another 
 54.16  person, or the owners, the spouse of the owner, or the relatives 
 54.17  no longer use the property as their homestead.  Upon the sale or 
 54.18  transfer of the homestead property, a certificate of value must 
 54.19  be timely filed with the county auditor as provided under 
 54.20  section 272.115.  Failure to notify the assessor within 30 days 
 54.21  that the property has been sold, transferred, or that the owner, 
 54.22  the spouse of the owner, or the relative is no longer occupying 
 54.23  the property as a homestead, shall result in the penalty 
 54.24  provided under this subdivision and the property will lose its 
 54.25  current homestead status. 
 54.26     (f) If the homestead application is not returned within 30 
 54.27  days, the county will send a second application to the present 
 54.28  owners of record.  The notice of proposed property taxes 
 54.29  prepared under section 275.065, subdivision 3, shall reflect the 
 54.30  property's classification.  Beginning with assessment year 1993 
 54.31  for all properties, If a homestead application has not been 
 54.32  filed with the county by December 15, the assessor shall 
 54.33  classify the property as nonhomestead for the current assessment 
 54.34  year for taxes payable in the following year, provided that the 
 54.35  owner may be entitled to receive the homestead classification by 
 54.36  proper application under section 375.192. 
 55.1      (g) At the request of the commissioner, each county must 
 55.2   give the commissioner a list that includes the name and social 
 55.3   security number of each property owner and the property owner's 
 55.4   spouse occupying the property, or relative of a property owner, 
 55.5   applying for homestead classification under this subdivision.  
 55.6   The commissioner shall use the information provided on the lists 
 55.7   as appropriate under the law, including for the detection of 
 55.8   improper claims by owners, or relatives of owners, under chapter 
 55.9   290A.  
 55.10     (h) If, in comparing the lists supplied by the counties, 
 55.11  the commissioner finds that a property owner is may be claiming 
 55.12  more than one a fraudulent homestead, the commissioner shall 
 55.13  notify the appropriate counties.  Within 90 days of the 
 55.14  notification, the county assessor shall investigate to determine 
 55.15  if the homestead classification was properly claimed.  If the 
 55.16  property owner does not qualify, the county assessor shall 
 55.17  notify the county auditor who will determine the amount of 
 55.18  homestead benefits that had been improperly allowed.  For the 
 55.19  purpose of this section, "homestead benefits" means the tax 
 55.20  reduction resulting from the classification as a homestead under 
 55.21  section 273.13, the taconite homestead credit under section 
 55.22  273.135, and the supplemental homestead credit under section 
 55.23  273.1391. 
 55.24     The county auditor shall send a notice to the owners of the 
 55.25  affected property, demanding reimbursement of the homestead 
 55.26  benefits plus a penalty equal to 100 percent of the homestead 
 55.27  benefits.  The property owners may appeal the county's 
 55.28  determination by filing a notice of appeal with the Minnesota 
 55.29  tax court within 60 days of the date of the notice from the 
 55.30  county.  If the amount of homestead benefits and penalty is not 
 55.31  paid within 60 days, and if no appeal has been filed, the county 
 55.32  auditor shall certify the amount of taxes and penalty to the 
 55.33  succeeding year's tax list to be collected as part of the 
 55.34  property taxes.  In the case of a manufactured home, the amount 
 55.35  shall be certified to the current year's tax list for collection.
 55.36     (i) Any amount of homestead benefits recovered by the 
 56.1   county from the property owner shall be distributed to the 
 56.2   county, city or town, and school district where the property is 
 56.3   located in the same proportion that each taxing district's levy 
 56.4   was to the total of the three taxing districts' levy for the 
 56.5   current year.  Any amount recovered attributable to taconite 
 56.6   homestead credit shall be transmitted to the St. Louis county 
 56.7   auditor to be deposited in the taconite property tax relief 
 56.8   account.  The total amount of penalty collected must be 
 56.9   deposited in the county general fund. 
 56.10     (j) If a property owner has applied for more than one 
 56.11  homestead and the county assessors cannot determine which 
 56.12  property should be classified as homestead, the county assessors 
 56.13  will refer the information to the commissioner.  The 
 56.14  commissioner shall make the determination and notify the 
 56.15  counties within 60 days. 
 56.16     (k) In addition to lists of homestead properties, the 
 56.17  commissioner may ask the counties to furnish lists of all 
 56.18  properties and the record owners. 
 56.19     Sec. 9.  Minnesota Statutes 1994, section 273.13, 
 56.20  subdivision 24, is amended to read: 
 56.21     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
 56.22  property and utility real and personal property, except class 5 
 56.23  property as identified in subdivision 31, clause (1), is class 
 56.24  3a.  It has a class rate of three percent of the first $100,000 
 56.25  of market value for taxes payable in 1993 and thereafter, and 
 56.26  5.06 percent of the market value over $100,000.  In the case of 
 56.27  state-assessed commercial, industrial, and utility property 
 56.28  owned by one person or entity, only one parcel has a reduced 
 56.29  class rate on the first $100,000 of market value.  In the case 
 56.30  of other commercial, industrial, and utility property owned by 
 56.31  one person or entity, only one parcel in each county has a 
 56.32  reduced class rate on the first $100,000 of market value, except 
 56.33  that: 
 56.34     (1) if the market value of the parcel is less than 
 56.35  $100,000, and additional parcels are owned by the same person or 
 56.36  entity in the same city or town within that county, the reduced 
 57.1   class rate shall be applied up to a combined total market value 
 57.2   of $100,000 for all parcels owned by the same person or entity 
 57.3   in the same city or town within the county; 
 57.4      (2) in the case of grain, fertilizer, and feed elevator 
 57.5   facilities, as defined in section 18C.305, subdivision 1, or 
 57.6   232.21, subdivision 8, the limitation to one parcel per owner 
 57.7   per county for the reduced class rate shall not apply, but there 
 57.8   shall be a limit of $100,000 of preferential value per site of 
 57.9   contiguous parcels owned by the same person or entity.  Only the 
 57.10  value of the elevator portion of each parcel shall qualify for 
 57.11  treatment under this clause.  For purposes of this subdivision, 
 57.12  contiguous parcels include parcels separated only by a railroad 
 57.13  or public road right-of-way; and 
 57.14     (3) in the case of property owned by a nonprofit charitable 
 57.15  organization that qualifies for tax exemption under section 
 57.16  501(c)(3) of the Internal Revenue Code of 1986, as amended 
 57.17  through December 31, 1993, if the property is used as a business 
 57.18  incubator, the limitation to one parcel per owner per county for 
 57.19  the reduced class rate shall not apply, provided that the 
 57.20  reduced rate applies only to the first $100,000 of value per 
 57.21  parcel owned by the organization.  As used in this clause, a 
 57.22  "business incubator" is a facility used for the development of 
 57.23  nonretail businesses, offering access to equipment, space, 
 57.24  services, and advice to the tenant businesses, for the purpose 
 57.25  of encouraging economic development, diversification, and job 
 57.26  creation in the area served by the organization. 
 57.27     To receive the reduced class rate on additional parcels 
 57.28  under clause (1), (2), or (3), the taxpayer must notify the 
 57.29  county assessor that the taxpayer owns more than one parcel that 
 57.30  qualifies under clause (1), (2), or (3). 
 57.31     (b) Employment property defined in section 469.166, during 
 57.32  the period provided in section 469.170, shall constitute class 
 57.33  3b and has a class rate of 2.3 percent of the first $50,000 of 
 57.34  market value and 3.6 percent of the remainder, except that for 
 57.35  employment property located in a border city enterprise zone 
 57.36  designated pursuant to section 469.168, subdivision 4, paragraph 
 58.1   (c), the class rate of the first $100,000 of market value and 
 58.2   the class rate of the remainder is determined under paragraph 
 58.3   (a), unless the governing body of the city designated as an 
 58.4   enterprise zone determines that a specific parcel shall be 
 58.5   assessed pursuant to the first clause of this sentence.  The 
 58.6   governing body may provide for assessment under the first clause 
 58.7   of the preceding sentence only for property which is located in 
 58.8   an area which has been designated by the governing body for the 
 58.9   receipt of tax reductions authorized by section 469.171, 
 58.10  subdivision 1. 
 58.11     (c) Structures which are (i) located on property classified 
 58.12  as class 3a, (ii) constructed under an initial building permit 
 58.13  issued after January 2, 1996, (iii) located in a transit zone as 
 58.14  defined under section 473.3915, subdivision 3, (iv) located 
 58.15  within the boundaries of a school district, and (v) not 
 58.16  primarily used for retail or transient lodging purposes, shall 
 58.17  have a class rate of four percent on that portion of the market 
 58.18  value in excess of $100,000 and any market value under $100,000 
 58.19  that does not qualify for the three percent class rate under 
 58.20  paragraph (a).  As used in item (v), a structure is primarily 
 58.21  used for retail or transient lodging purposes if over 50 percent 
 58.22  of its square footage is used for those purposes.  The four 
 58.23  percent rate shall also apply to improvements to existing 
 58.24  structures that meet the requirements of items (i) to (v) if the 
 58.25  improvements are constructed under an initial building permit 
 58.26  issued after January 2, 1996, even if the remainder of the 
 58.27  structure was constructed prior to January 2, 1996.  For the 
 58.28  purposes of this paragraph, a structure shall be considered to 
 58.29  be located in a transit zone if any portion of the structure 
 58.30  lies within the zone.  If any property once eligible for 
 58.31  treatment under this paragraph ceases to remain eligible due to 
 58.32  revisions in transit zone boundaries, the property shall 
 58.33  continue to receive treatment under this paragraph for a period 
 58.34  of three years. 
 58.35     Sec. 10.  Minnesota Statutes 1994, section 273.13, 
 58.36  subdivision 25, is amended to read: 
 59.1      Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 59.2   estate containing four or more units and used or held for use by 
 59.3   the owner or by the tenants or lessees of the owner as a 
 59.4   residence for rental periods of 30 days or more.  Class 4a also 
 59.5   includes hospitals licensed under sections 144.50 to 144.56, 
 59.6   other than hospitals exempt under section 272.02, and contiguous 
 59.7   property used for hospital purposes, without regard to whether 
 59.8   the property has been platted or subdivided.  Class 4a property 
 59.9   in a city with a population of 5,000 or less, that is (1) 
 59.10  located outside of the metropolitan area, as defined in section 
 59.11  473.121, subdivision 2, or outside any county contiguous to the 
 59.12  metropolitan area, and (2) whose city boundary is at least 15 
 59.13  miles from the boundary of any city with a population greater 
 59.14  than 5,000 has a class rate of 3.5 percent of market value for 
 59.15  taxes payable in 1992, and 3.4 2.3 percent of market value for 
 59.16  taxes payable in 1993 1996 and thereafter.  All other class 4a 
 59.17  property has a class rate of 3.4 percent of market value for 
 59.18  taxes payable in 1996 and thereafter.  For purposes of this 
 59.19  paragraph, population has the same meaning given in section 
 59.20  477A.011, subdivision 3. 
 59.21     (b) Class 4b includes: 
 59.22     (1) residential real estate containing less than four 
 59.23  units, other than seasonal residential, and recreational; 
 59.24     (2) manufactured homes not classified under any other 
 59.25  provision; 
 59.26     (3) a dwelling, garage, and surrounding one acre of 
 59.27  property on a nonhomestead farm classified under subdivision 23, 
 59.28  paragraph (b).  
 59.29     Class 4b property has a class rate of 2.8 percent of market 
 59.30  value for taxes payable in 1992, 2.5 percent of market value for 
 59.31  taxes payable in 1993, and 2.3 percent of market value for taxes 
 59.32  payable in 1994 and thereafter. 
 59.33     (c) Class 4c property includes: 
 59.34     (1) a structure that is:  
 59.35     (i) situated on real property that is used for housing for 
 59.36  the elderly or for low- and moderate-income families as defined 
 60.1   in Title II, as amended through December 31, 1990, of the 
 60.2   National Housing Act or the Minnesota housing finance agency law 
 60.3   of 1971, as amended, or rules promulgated by the agency and 
 60.4   financed by a direct federal loan or federally insured loan made 
 60.5   pursuant to Title II of the Act; or 
 60.6      (ii) situated on real property that is used for housing the 
 60.7   elderly or for low- and moderate-income families as defined by 
 60.8   the Minnesota housing finance agency law of 1971, as amended, or 
 60.9   rules adopted by the agency pursuant thereto and financed by a 
 60.10  loan made by the Minnesota housing finance agency pursuant to 
 60.11  the provisions of the act.  
 60.12     This clause applies only to property of a nonprofit or 
 60.13  limited dividend entity.  Property is classified as class 4c 
 60.14  under this clause for 15 years from the date of the completion 
 60.15  of the original construction or substantial rehabilitation, or 
 60.16  for the original term of the loan.  
 60.17     (2) a structure that is: 
 60.18     (i) situated upon real property that is used for housing 
 60.19  lower income families or elderly or handicapped persons, as 
 60.20  defined in section 8 of the United States Housing Act of 1937, 
 60.21  as amended; and 
 60.22     (ii) owned by an entity which has entered into a housing 
 60.23  assistance payments contract under section 8 which provides 
 60.24  assistance for 100 percent of the dwelling units in the 
 60.25  structure, other than dwelling units intended for management or 
 60.26  maintenance personnel.  Property is classified as class 4c under 
 60.27  this clause for the term of the housing assistance payments 
 60.28  contract, including all renewals, or for the term of its 
 60.29  permanent financing, whichever is shorter; and 
 60.30     (3) a qualified low-income building as defined in section 
 60.31  42(c)(2) of the Internal Revenue Code of 1986, as amended 
 60.32  through December 31, 1990, that (i) receives a low-income 
 60.33  housing credit under section 42 of the Internal Revenue Code of 
 60.34  1986, as amended through December 31, 1990; or (ii) meets the 
 60.35  requirements of that section and receives public financing, 
 60.36  except financing provided under sections 469.174 to 469.179, 
 61.1   which contains terms restricting the rents; or (iii) meets the 
 61.2   requirements of section 273.1317.  Classification pursuant to 
 61.3   this clause is limited to a term of 15 years.  The public 
 61.4   financing received must be from at least one of the following 
 61.5   sources:  government issued bonds exempt from taxes under 
 61.6   section 103 of the Internal Revenue Code of 1986, as amended 
 61.7   through December 31, 1993, the proceeds of which are used for 
 61.8   the acquisition or rehabilitation of the building; programs 
 61.9   under section 221(d)(3), 202, or 236, of Title II of the 
 61.10  National Housing Act; rental housing program funds under Section 
 61.11  8 of the United States Housing Act of 1937 or the market rate 
 61.12  family graduated payment mortgage program funds administered by 
 61.13  the Minnesota housing finance agency that are used for the 
 61.14  acquisition or rehabilitation of the building; public financing 
 61.15  provided by a local government used for the acquisition or 
 61.16  rehabilitation of the building, including grants or loans from 
 61.17  federal community development block grants, HOME block grants, 
 61.18  or residential rental bonds issued under chapter 474A; or other 
 61.19  rental housing program funds provided by the Minnesota housing 
 61.20  finance agency for the acquisition or rehabilitation of the 
 61.21  building. 
 61.22     For all properties described in clauses (1), (2), and (3) 
 61.23  and in paragraph (d), the market value determined by the 
 61.24  assessor must be based on the normal approach to value using 
 61.25  normal unrestricted rents unless the owner of the property 
 61.26  elects to have the property assessed under Laws 1991, chapter 
 61.27  291, article 1, section 55.  If the owner of the property elects 
 61.28  to have the market value determined on the basis of the actual 
 61.29  restricted rents, as provided in Laws 1991, chapter 291, article 
 61.30  1, section 55, the property will be assessed at the rate 
 61.31  provided for class 4a or class 4b property, as appropriate.  
 61.32  Properties described in clauses (1)(ii), (3), and (4) may apply 
 61.33  to the assessor for valuation under Laws 1991, chapter 291, 
 61.34  article 1, section 55.  The land on which these structures are 
 61.35  situated has the class rate given in paragraph (b) if the 
 61.36  structure contains fewer than four units, and the class rate 
 62.1   given in paragraph (a) if the structure contains four or more 
 62.2   units.  This clause applies only to the property of a nonprofit 
 62.3   or limited dividend entity.  
 62.4      (4) a parcel of land, not to exceed one acre, and its 
 62.5   improvements or a parcel of unimproved land, not to exceed one 
 62.6   acre, if it is owned by a neighborhood real estate trust and at 
 62.7   least 60 percent of the dwelling units, if any, on all land 
 62.8   owned by the trust are leased to or occupied by lower income 
 62.9   families or individuals.  This clause does not apply to any 
 62.10  portion of the land or improvements used for nonresidential 
 62.11  purposes.  For purposes of this clause, a lower income family is 
 62.12  a family with an income that does not exceed 65 percent of the 
 62.13  median family income for the area, and a lower income individual 
 62.14  is an individual whose income does not exceed 65 percent of the 
 62.15  median individual income for the area, as determined by the 
 62.16  United States Secretary of Housing and Urban Development.  For 
 62.17  purposes of this clause, "neighborhood real estate trust" means 
 62.18  an entity which is certified by the governing body of the 
 62.19  municipality in which it is located to have the following 
 62.20  characteristics: 
 62.21     (a) it is a nonprofit corporation organized under chapter 
 62.22  317A; 
 62.23     (b) it has as its principal purpose providing housing for 
 62.24  lower income families in a specific geographic community 
 62.25  designated in its articles or bylaws; 
 62.26     (c) it limits membership with voting rights to residents of 
 62.27  the designated community; and 
 62.28     (d) it has a board of directors consisting of at least 
 62.29  seven directors, 60 percent of whom are members with voting 
 62.30  rights and, to the extent feasible, 25 percent of whom are 
 62.31  elected by resident members of buildings owned by the trust; and 
 62.32     (5) except as provided in subdivision 22, paragraph (c), 
 62.33  real property devoted to temporary and seasonal residential 
 62.34  occupancy for recreation purposes, including real property 
 62.35  devoted to temporary and seasonal residential occupancy for 
 62.36  recreation purposes and not devoted to commercial purposes for 
 63.1   more than 250 days in the year preceding the year of 
 63.2   assessment.  For purposes of this clause, property is devoted to 
 63.3   a commercial purpose on a specific day if any portion of the 
 63.4   property is used for residential occupancy, and a fee is charged 
 63.5   for residential occupancy.  Class 4c also includes commercial 
 63.6   use real property used exclusively for recreational purposes in 
 63.7   conjunction with class 4c property devoted to temporary and 
 63.8   seasonal residential occupancy for recreational purposes, up to 
 63.9   a total of two acres, provided the property is not devoted to 
 63.10  commercial recreational use for more than 250 days in the year 
 63.11  preceding the year of assessment and is located within two miles 
 63.12  of the class 4c property with which it is used.  Class 4c 
 63.13  property classified in this clause also includes the remainder 
 63.14  of class 1c resorts.  Owners of real property devoted to 
 63.15  temporary and seasonal residential occupancy for recreation 
 63.16  purposes and all or a portion of which was devoted to commercial 
 63.17  purposes for not more than 250 days in the year preceding the 
 63.18  year of assessment desiring classification as class 1c or 4c, 
 63.19  must submit a declaration to the assessor designating the cabins 
 63.20  or units occupied for 250 days or less in the year preceding the 
 63.21  year of assessment by January 15 of the assessment year.  Those 
 63.22  cabins or units and a proportionate share of the land on which 
 63.23  they are located will be designated class 1c or 4c as otherwise 
 63.24  provided.  The remainder of the cabins or units and a 
 63.25  proportionate share of the land on which they are located will 
 63.26  be designated as class 3a.  The first $100,000 of the market 
 63.27  value of the remainder of the cabins or units and a 
 63.28  proportionate share of the land on which they are located shall 
 63.29  have a class rate of three percent.  The owner of property 
 63.30  desiring designation as class 1c or 4c property must provide 
 63.31  guest registers or other records demonstrating that the units 
 63.32  for which class 1c or 4c designation is sought were not occupied 
 63.33  for more than 250 days in the year preceding the assessment if 
 63.34  so requested.  The portion of a property operated as a (1) 
 63.35  restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 63.36  facility operated on a commercial basis not directly related to 
 64.1   temporary and seasonal residential occupancy for recreation 
 64.2   purposes shall not qualify for class 1c or 4c; 
 64.3      (6) real property up to a maximum of one acre of land owned 
 64.4   by a nonprofit community service oriented organization; provided 
 64.5   that the property is not used for a revenue-producing activity 
 64.6   for more than six days in the calendar year preceding the year 
 64.7   of assessment and the property is not used for residential 
 64.8   purposes on either a temporary or permanent basis.  For purposes 
 64.9   of this clause, a "nonprofit community service oriented 
 64.10  organization" means any corporation, society, association, 
 64.11  foundation, or institution organized and operated exclusively 
 64.12  for charitable, religious, fraternal, civic, or educational 
 64.13  purposes, and which is exempt from federal income taxation 
 64.14  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 64.15  Revenue Code of 1986, as amended through December 31, 1990.  For 
 64.16  purposes of this clause, "revenue-producing activities" shall 
 64.17  include but not be limited to property or that portion of the 
 64.18  property that is used as an on-sale intoxicating liquor or 3.2 
 64.19  percent malt liquor establishment licensed under chapter 340A, a 
 64.20  restaurant open to the public, bowling alley, a retail store, 
 64.21  gambling conducted by organizations licensed under chapter 349, 
 64.22  an insurance business, or office or other space leased or rented 
 64.23  to a lessee who conducts a for-profit enterprise on the 
 64.24  premises.  Any portion of the property which is used for 
 64.25  revenue-producing activities for more than six days in the 
 64.26  calendar year preceding the year of assessment shall be assessed 
 64.27  as class 3a.  The use of the property for social events open 
 64.28  exclusively to members and their guests for periods of less than 
 64.29  24 hours, when an admission is not charged nor any revenues are 
 64.30  received by the organization shall not be considered a 
 64.31  revenue-producing activity; 
 64.32     (7) post-secondary student housing of not more than one 
 64.33  acre of land that is owned by a nonprofit corporation organized 
 64.34  under chapter 317A and is used exclusively by a student 
 64.35  cooperative, sorority, or fraternity for on-campus housing or 
 64.36  housing located within two miles of the border of a college 
 65.1   campus; and 
 65.2      (8) manufactured home parks as defined in section 327.14, 
 65.3   subdivision 3. 
 65.4      Class 4c property has a class rate of 2.3 percent of market 
 65.5   value, except that (i) for each parcel of seasonal residential 
 65.6   recreational property not used for commercial purposes under 
 65.7   clause (5) has a class rate of 2.2 percent of market value for 
 65.8   taxes payable in 1992, and for taxes payable in 1993 and 
 65.9   thereafter, the first $72,000 of market value on each parcel has 
 65.10  a class rate of two 1.9 percent for taxes payable in 1997 and 
 65.11  1.8 percent for taxes payable in 1998 and thereafter, and the 
 65.12  market value of each parcel that exceeds $72,000 has a class 
 65.13  rate of 2.5 percent, and (ii) manufactured home parks assessed 
 65.14  under clause (8) have a class rate of two percent for taxes 
 65.15  payable in 1993, 1994, and 1995 only 1996, and thereafter.  
 65.16     (d) Class 4d property includes: 
 65.17     (1) a structure that is: 
 65.18     (i) situated on real property that is used for housing for 
 65.19  the elderly or for low and moderate income families as defined 
 65.20  by the Farmers Home Administration; 
 65.21     (ii) located in a municipality of less than 10,000 
 65.22  population; and 
 65.23     (iii) financed by a direct loan or insured loan from the 
 65.24  Farmers Home Administration.  Property is classified under this 
 65.25  clause for 15 years from the date of the completion of the 
 65.26  original construction or for the original term of the loan.  
 65.27     The class rates in paragraph (c), clauses (1), (2), and (3) 
 65.28  and this clause apply to the properties described in them, only 
 65.29  in proportion to occupancy of the structure by elderly or 
 65.30  handicapped persons or low and moderate income families as 
 65.31  defined in the applicable laws unless construction of the 
 65.32  structure had been commenced prior to January 1, 1984; or the 
 65.33  project had been approved by the governing body of the 
 65.34  municipality in which it is located prior to June 30, 1983; or 
 65.35  financing of the project had been approved by a federal or state 
 65.36  agency prior to June 30, 1983.  For those properties, 4c or 4d 
 66.1   classification is available only for those units meeting the 
 66.2   requirements of section 273.1318. 
 66.3      Classification under this clause is only available to 
 66.4   property of a nonprofit or limited dividend entity. 
 66.5      In the case of a structure financed or refinanced under any 
 66.6   federal or state mortgage insurance or direct loan program 
 66.7   exclusively for housing for the elderly or for housing for the 
 66.8   handicapped, a unit shall be considered occupied so long as it 
 66.9   is actually occupied by an elderly or handicapped person or, if 
 66.10  vacant, is held for rental to an elderly or handicapped person. 
 66.11     (2) For taxes payable in 1992, 1993, and 1994, only, 
 66.12  buildings and appurtenances, together with the land upon which 
 66.13  they are located, leased by the occupant under the community 
 66.14  lending model lease-purchase mortgage loan program administered 
 66.15  by the Federal National Mortgage Association, provided the 
 66.16  occupant's income is no greater than 60 percent of the county or 
 66.17  area median income, adjusted for family size and the building 
 66.18  consists of existing single family or duplex housing.  The lease 
 66.19  agreement must provide for a portion of the lease payment to be 
 66.20  escrowed as a nonrefundable down payment on the housing.  To 
 66.21  qualify under this clause, the taxpayer must apply to the county 
 66.22  assessor by May 30 of each year.  The application must be 
 66.23  accompanied by an affidavit or other proof required by the 
 66.24  assessor to determine qualification under this clause. 
 66.25     (3) Qualifying buildings and appurtenances, together with 
 66.26  the land upon which they are located, leased for a period of up 
 66.27  to five years by the occupant under a lease-purchase program 
 66.28  administered by the Minnesota housing finance agency or a 
 66.29  housing and redevelopment authority authorized under sections 
 66.30  469.001 to 469.047, provided the occupant's income is no greater 
 66.31  than 80 percent of the county or area median income, adjusted 
 66.32  for family size, and the building consists of two or less 
 66.33  dwelling units.  The lease agreement must provide for a portion 
 66.34  of the lease payment to be escrowed as a nonrefundable down 
 66.35  payment on the housing.  The administering agency shall verify 
 66.36  the occupants income eligibility and certify to the county 
 67.1   assessor that the occupant meets the income criteria under this 
 67.2   paragraph.  To qualify under this clause, the taxpayer must 
 67.3   apply to the county assessor by May 30 of each year.  For 
 67.4   purposes of this section, "qualifying buildings and 
 67.5   appurtenances" shall be defined as one or two unit residential 
 67.6   buildings which are unoccupied and have been abandoned and 
 67.7   boarded for at least six months. 
 67.8      Class 4d property has a class rate of two percent of market 
 67.9   value except that property classified under clause (3), shall 
 67.10  have the same class rate as class 1a property. 
 67.11     (e) Residential rental property that would otherwise be 
 67.12  assessed as class 4 property under paragraph (a); paragraph (b), 
 67.13  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 67.14  (4), is assessed at the class rate applicable to it under 
 67.15  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 67.16  substandard building under section 273.1316.  Residential rental 
 67.17  property that would otherwise be assessed as class 4 property 
 67.18  under paragraph (d) is assessed at 2.3 percent of market value 
 67.19  if it is found to be a substandard building under section 
 67.20  273.1316. 
 67.21     Sec. 11.  Minnesota Statutes 1994, section 273.1398, 
 67.22  subdivision 1, is amended to read: 
 67.23     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
 67.24  terms defined in this subdivision have the meanings given them. 
 67.25     (b) "Unique taxing jurisdiction" means the geographic area 
 67.26  subject to the same set of local tax rates. 
 67.27     (c) "Net tax capacity" means the product of (i) the 
 67.28  appropriate net class rates for the year in which the aid is 
 67.29  payable, except that for aid payable in 1993 1996 the class rate 
 67.30  applicable to all class 4a shall be 3.5 3.4 percent; and the 
 67.31  class rate applicable to class 4b shall be 2.65 percent; and for 
 67.32  aid payable in 1994 the class rate applicable to class 4b shall 
 67.33  be 2.4 percent and the class rate applicable to class 2a 
 67.34  property over $115,000 market value and less than 320 acres is 
 67.35  1.15 percent, and (ii) estimated market values for the 
 67.36  assessment two years prior to that in which aid is payable.  The 
 68.1   exclusion of the value of the house, garage, and one acre from 
 68.2   the first tier of agricultural homestead property must not be 
 68.3   considered in determining net tax capacity for purposes of this 
 68.4   paragraph for aids payable in 1994.  "Total net tax capacity" 
 68.5   means the net tax capacities for all property within the unique 
 68.6   taxing jurisdiction.  The total net tax capacity used shall be 
 68.7   reduced by the sum of (1) the unique taxing jurisdiction's net 
 68.8   tax capacity of commercial industrial property as defined in 
 68.9   section 473F.02, subdivision 3, multiplied by the ratio 
 68.10  determined pursuant to section 473F.08, subdivision 6, for the 
 68.11  municipality, as defined in section 473F.02, subdivision 8, in 
 68.12  which the unique taxing jurisdiction is located, (2) the net tax 
 68.13  capacity of the captured value of tax increment financing 
 68.14  districts as defined in section 469.177, subdivision 2, and (3) 
 68.15  the net tax capacity of transmission lines deducted from a local 
 68.16  government's total net tax capacity under section 273.425.  For 
 68.17  purposes of determining the net tax capacity of property 
 68.18  referred to in clauses (1), (2), and (3), the net tax capacity 
 68.19  shall be multiplied by the ratio of the highest class rate for 
 68.20  class 3a property for taxes payable in the year in which the aid 
 68.21  is payable to the highest class rate for class 3a property in 
 68.22  the prior year.  Net tax capacity cannot be less than zero. 
 68.23     (d) "Previous net tax capacity" means the product of the 
 68.24  appropriate net class rates for the year previous to the year in 
 68.25  which the aid is payable, and estimated market values for the 
 68.26  assessment two years prior to that in which aid is payable.  
 68.27  "Total previous net tax capacity" means the previous net tax 
 68.28  capacities for all property within the unique taxing 
 68.29  jurisdiction.  The total previous net tax capacity shall be 
 68.30  reduced by the sum of (1) the unique taxing jurisdiction's 
 68.31  previous net tax capacity of commercial-industrial property as 
 68.32  defined in section 473F.02, subdivision 3, multiplied by the 
 68.33  ratio determined pursuant to section 473F.08, subdivision 6, for 
 68.34  the municipality, as defined in section 473F.02, subdivision 8, 
 68.35  in which the unique taxing jurisdiction is located, (2) the 
 68.36  previous net tax capacity of the captured value of tax increment 
 69.1   financing districts as defined in section 469.177, subdivision 
 69.2   2, and (3) the previous net tax capacity of transmission lines 
 69.3   deducted from a local government's total net tax capacity under 
 69.4   section 273.425.  Previous net tax capacity cannot be less than 
 69.5   zero. 
 69.6      (e) "Equalized market values" are market values that have 
 69.7   been equalized by dividing the assessor's estimated market value 
 69.8   for the second year prior to that in which the aid is payable by 
 69.9   the assessment sales ratios determined by class in the 
 69.10  assessment sales ratio study conducted by the department of 
 69.11  revenue pursuant to section 124.2131 in the second year prior to 
 69.12  that in which the aid is payable.  The equalized market values 
 69.13  shall equal the unequalized market values divided by the 
 69.14  assessment sales ratio. 
 69.15     (f) "Equalized school levies" means the amounts levied for: 
 69.16     (1) general education under section 124A.23, subdivision 2; 
 69.17     (2) supplemental revenue under section 124A.22, subdivision 
 69.18  8a; 
 69.19     (3) capital expenditure facilities revenue under section 
 69.20  124.243, subdivision 3; 
 69.21     (4) capital expenditure equipment revenue under section 
 69.22  124.244, subdivision 2; 
 69.23     (5) basic transportation under section 124.226, subdivision 
 69.24  1; and 
 69.25     (6) referendum revenue under section 124A.03. 
 69.26     (g) "Current local tax rate" means the quotient derived by 
 69.27  dividing the taxes levied within a unique taxing jurisdiction 
 69.28  for taxes payable in the year prior to that for which aids are 
 69.29  being calculated by the total previous net tax capacity of the 
 69.30  unique taxing jurisdiction.  
 69.31     (h) For purposes of calculating and allocating homestead 
 69.32  and agricultural credit aid authorized pursuant to subdivision 2 
 69.33  and the disparity reduction aid authorized in subdivision 3, 
 69.34  "gross taxes levied on all properties," "gross taxes," or "taxes 
 69.35  levied" means the total net tax capacity based taxes levied on 
 69.36  all properties except that levied on the captured value of tax 
 70.1   increment districts as defined in section 469.177, subdivision 
 70.2   2, and that levied on the portion of commercial industrial 
 70.3   properties' assessed value or gross tax capacity, as defined in 
 70.4   section 473F.02, subdivision 3, subject to the areawide tax as 
 70.5   provided in section 473F.08, subdivision 6, in a unique taxing 
 70.6   jurisdiction.  "Gross taxes" are before any reduction for 
 70.7   disparity reduction aid but "taxes levied" are after any 
 70.8   reduction for disparity reduction aid.  Gross taxes levied or 
 70.9   taxes levied cannot be less than zero.  
 70.10     "Taxes levied" excludes equalized school levies. 
 70.11     (i) "Human services aids" means: 
 70.12     (1) aid to families with dependent children under sections 
 70.13  256.82, subdivision 1, and 256.935, subdivision 1; 
 70.14     (2) medical assistance under sections 256B.041, subdivision 
 70.15  5, and 256B.19, subdivision 1; 
 70.16     (3) general assistance medical care under section 256D.03, 
 70.17  subdivision 6; 
 70.18     (4) general assistance under section 256D.03, subdivision 
 70.19  2; 
 70.20     (5) work readiness under section 256D.03, subdivision 2; 
 70.21     (6) emergency assistance under section 256.871, subdivision 
 70.22  6; 
 70.23     (7) Minnesota supplemental aid under section 256D.36, 
 70.24  subdivision 1; 
 70.25     (8) preadmission screening and alternative care grants; 
 70.26     (9) work readiness services under section 256D.051; 
 70.27     (10) case management services under section 256.736, 
 70.28  subdivision 13; 
 70.29     (11) general assistance claims processing, medical 
 70.30  transportation and related costs; and 
 70.31     (12) medical assistance, medical transportation and related 
 70.32  costs. 
 70.33     (j) "Household adjustment factor" means the number of 
 70.34  households for the second most recent year preceding that in 
 70.35  which the aids are payable divided by the number of households 
 70.36  for the third most recent year.  The household adjustment factor 
 71.1   cannot be less than one.  
 71.2      (k) "Growth adjustment factor" means the household 
 71.3   adjustment factor in the case of counties.  In the case of 
 71.4   cities, towns, school districts, and special taxing districts, 
 71.5   the growth adjustment factor equals one.  The growth adjustment 
 71.6   factor cannot be less than one.  
 71.7      (l) For aid payable in 1992 and subsequent years, 
 71.8   "homestead and agricultural credit base" means the previous 
 71.9   year's certified homestead and agricultural credit aid 
 71.10  determined under subdivision 2 less any permanent aid reduction 
 71.11  in the previous year to homestead and agricultural credit aid 
 71.12  under section 477A.0132, plus, for aid payable in 1992, fiscal 
 71.13  disparity homestead and agricultural credit aid under 
 71.14  subdivision 2b.  
 71.15     (m) "Net tax capacity adjustment" means (1) the total 
 71.16  previous net tax capacity minus the total net tax capacity, 
 71.17  multiplied by (2) the unique taxing jurisdiction's current local 
 71.18  tax rate.  The net tax capacity adjustment cannot be less than 
 71.19  zero. 
 71.20     (n) "Fiscal disparity adjustment" means the difference 
 71.21  between (1) a taxing jurisdiction's fiscal disparity 
 71.22  distribution levy under section 473F.08, subdivision 3, clause 
 71.23  (a), for taxes payable in the year prior to that for which aids 
 71.24  are being calculated, and (2) the same distribution levy 
 71.25  multiplied by the ratio of the highest class rate for class 3 
 71.26  property for taxes payable in the year prior to that for which 
 71.27  aids are being calculated to the highest class rate for class 3 
 71.28  property for taxes payable in the second prior year to that for 
 71.29  which aids are being calculated.  In the case of school 
 71.30  districts, the fiscal disparity distribution levy shall exclude 
 71.31  that part of the levy attributable to equalized school levies. 
 71.32     Sec. 12.  Minnesota Statutes 1994, section 273.37, is 
 71.33  amended by adding a subdivision to read: 
 71.34     Subd. 3.  Taxable wind energy conversion systems, as 
 71.35  defined in section 216C.06, subdivision 12, which are not owned, 
 71.36  operated, and exclusively controlled by the owner of the land 
 72.1   upon which the system is situated, must be listed and assessed 
 72.2   as personal property in the name of the owner of the system in 
 72.3   the taxing district where it is situated. 
 72.4      Sec. 13.  Minnesota Statutes 1994, section 274.01, 
 72.5   subdivision 1, is amended to read: 
 72.6      Subdivision 1.  [ORDINARY BOARD; MEETINGS, DEADLINES, 
 72.7   GRIEVANCES.] (a) The town board of a town, or the council or 
 72.8   other governing body of a city, is the board of review except in 
 72.9   cities whose charters provide for a board of equalization.  The 
 72.10  county assessor shall fix a day and time when the board or the 
 72.11  board of equalization shall meet in the assessment districts of 
 72.12  the county.  On or before February 15 of each year the assessor 
 72.13  shall give written notice of the time to the city or town 
 72.14  clerk.  Notwithstanding the provisions of any charter to the 
 72.15  contrary, the meetings must be held between April 1 and May 31 
 72.16  each year.  The clerk shall give published and posted notice of 
 72.17  the meeting at least ten days before the date of the meeting.  
 72.18  If in any county, at least 25 percent of the total net tax 
 72.19  capacity of a city or town is noncommercial seasonal residential 
 72.20  recreational property classified under section 273.13, 
 72.21  subdivision 25, the county must hold two county-wide 
 72.22  informational meetings on Saturdays.  The meetings will allow 
 72.23  noncommercial seasonal residential recreational taxpayers to 
 72.24  discuss their property valuation with the appropriate assessment 
 72.25  staff.  These Saturday informational meetings must be scheduled 
 72.26  to allow the owner of the noncommercial seasonal residential 
 72.27  recreational property the opportunity to attend one of the 
 72.28  meetings prior to the scheduled board of review for their city 
 72.29  or town.  The Saturday meeting dates must be contained on the 
 72.30  notice of valuation of real property under section 273.121.  The 
 72.31  board shall meet at the office of the clerk to review the 
 72.32  assessment and classification of property in the town or city.  
 72.33  No changes in valuation or classification which are intended to 
 72.34  correct errors in judgment by the county assessor may be made by 
 72.35  the county assessor after the board of review or the county 
 72.36  board of equalization has adjourned; however, corrections of 
 73.1   errors that are merely clerical in nature or changes that extend 
 73.2   homestead treatment to property are permitted after adjournment 
 73.3   until the tax extension date for that assessment year.  The 
 73.4   changes must be fully documented and maintained in the 
 73.5   assessor's office and must be available for review by any 
 73.6   person.  A copy of the changes made during this period must be 
 73.7   sent to the county board no later than December 31 of the 
 73.8   assessment year.  
 73.9      (b) The board shall determine whether the taxable property 
 73.10  in the town or city has been properly placed on the list and 
 73.11  properly valued by the assessor.  If real or personal property 
 73.12  has been omitted, the board shall place it on the list with its 
 73.13  market value, and correct the assessment so that each tract or 
 73.14  lot of real property, and each article, parcel, or class of 
 73.15  personal property, is entered on the assessment list at its 
 73.16  market value.  No assessment of the property of any person may 
 73.17  be raised unless the person has been duly notified of the intent 
 73.18  of the board to do so.  On application of any person feeling 
 73.19  aggrieved, the board shall review the assessment or 
 73.20  classification, or both, and correct it as appears just.  
 73.21     (c) A local board of review may reduce assessments upon 
 73.22  petition of the taxpayer but the total reductions must not 
 73.23  reduce the aggregate assessment made by the county assessor by 
 73.24  more than one percent.  If the total reductions would lower the 
 73.25  aggregate assessments made by the county assessor by more than 
 73.26  one percent, none of the adjustments may be made.  The assessor 
 73.27  shall correct any clerical errors or double assessments 
 73.28  discovered by the board of review without regard to the one 
 73.29  percent limitation.  
 73.30     (d) A majority of the members may act at the meeting, and 
 73.31  adjourn from day to day until they finish hearing the cases 
 73.32  presented.  The assessor shall attend, with the assessment books 
 73.33  and papers, and take part in the proceedings, but must not 
 73.34  vote.  The county assessor, or an assistant delegated by the 
 73.35  county assessor shall attend the meetings.  The board shall list 
 73.36  separately, on a form appended to the assessment book, all 
 74.1   omitted property added to the list by the board and all items of 
 74.2   property increased or decreased, with the market value of each 
 74.3   item of property, added or changed by the board, placed opposite 
 74.4   the item.  The county assessor shall enter all changes made by 
 74.5   the board in the assessment book.  
 74.6      (e) If a person fails to appear in person, by counsel, or 
 74.7   by written communication before the board after being duly 
 74.8   notified of the board's intent to raise the assessment of the 
 74.9   property, or if a person feeling aggrieved by an assessment or 
 74.10  classification fails to apply for a review of the assessment or 
 74.11  classification, the person may not appear before the county 
 74.12  board of equalization for a review of the assessment or 
 74.13  classification.  This paragraph does not apply if an assessment 
 74.14  was made after the board meeting, as provided in section 273.01, 
 74.15  or if the person can establish not having received notice of 
 74.16  market value at least five days before the local board of review 
 74.17  meeting.  
 74.18     (f) The board of review or the board of equalization must 
 74.19  complete its work and adjourn within 20 days from the time of 
 74.20  convening stated in the notice of the clerk, unless a longer 
 74.21  period is approved by the commissioner of revenue.  No action 
 74.22  taken after that date is valid.  All complaints about an 
 74.23  assessment or classification made after the meeting of the board 
 74.24  must be heard and determined by the county board of 
 74.25  equalization.  A nonresident may, at any time, before the 
 74.26  meeting of the board of review file written objections to an 
 74.27  assessment or classification with the county assessor.  The 
 74.28  objections must be presented to the board of review at its 
 74.29  meeting by the county assessor for its consideration. 
 74.30     Sec. 14.  Minnesota Statutes 1994, section 275.065, 
 74.31  subdivision 1, is amended to read: 
 74.32     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 74.33  law or charter to the contrary, on or before September 15, each 
 74.34  taxing authority, other than a school district, shall adopt a 
 74.35  proposed budget and each taxing authority shall certify to the 
 74.36  county auditor the proposed or, in the case of a town, the final 
 75.1   property tax levy for taxes payable in the following year.  
 75.2      (b) On or before September 30, each school district shall 
 75.3   certify to the county auditor the proposed property tax levy for 
 75.4   taxes payable in the following year.  The school district may 
 75.5   certify the proposed levy as (1) a specific dollar amount, or 
 75.6   (2) an amount equal to the maximum levy limitation certified by 
 75.7   the commissioner of education to the county auditor according to 
 75.8   section 124.918, subdivision 1. 
 75.9      (c) If the board of estimate and taxation or any similar 
 75.10  board that establishes maximum tax levies for taxing 
 75.11  jurisdictions within a first class city certifies the maximum 
 75.12  property tax levies for funds under its jurisdiction by charter 
 75.13  to the county auditor by September 15, the city shall be deemed 
 75.14  to have certified its levies for those taxing jurisdictions. 
 75.15     (d) For purposes of this section, "taxing authority" 
 75.16  includes all home rule and statutory cities, towns, counties, 
 75.17  school districts, and special taxing districts as defined in 
 75.18  section 275.066.  Intermediate school districts that levy a tax 
 75.19  under chapter 124 or 136D, joint powers boards established under 
 75.20  sections 124.491 to 124.495, and common school districts No. 
 75.21  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 75.22  districts for purposes of this section.  
 75.23     Sec. 15.  Minnesota Statutes 1994, section 275.065, 
 75.24  subdivision 3, is amended to read: 
 75.25     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 75.26  county auditor shall prepare and the county treasurer shall 
 75.27  deliver after November 10 and on or before November 24 each 
 75.28  year, by first class mail to each taxpayer at the address listed 
 75.29  on the county's current year's assessment roll, a notice of 
 75.30  proposed property taxes and, in the case of a town, final 
 75.31  property taxes.  
 75.32     (b) The commissioner of revenue shall prescribe the form of 
 75.33  the notice. 
 75.34     (c) The notice must inform taxpayers that it contains the 
 75.35  amount of property taxes each taxing authority other than a town 
 75.36  proposes to collect for taxes payable the following year and, 
 76.1   for a town, the amount of its final levy.  It must clearly state 
 76.2   that each taxing authority, including regional library districts 
 76.3   established under section 134.201, and including the 
 76.4   metropolitan taxing districts as defined in paragraph (i), but 
 76.5   excluding all other special taxing districts and towns, will 
 76.6   hold a public meeting to receive public testimony on the 
 76.7   proposed budget and proposed or final property tax levy, or, in 
 76.8   case of a school district, on the current budget and proposed 
 76.9   property tax levy.  It must clearly state the time and place of 
 76.10  each taxing authority's meeting and an address where comments 
 76.11  will be received by mail.  The notice must include the estimated 
 76.12  percentage increase in Minnesota personal income, provided by 
 76.13  the commissioner of revenue under section 275.064, in a way to 
 76.14  facilitate comparison of the proposed budget and levy increases 
 76.15  with the increase in personal income.  For 1993, the notice must 
 76.16  clearly state that each taxing authority holding a public 
 76.17  meeting will describe the increases or decreases of the total 
 76.18  budget, including employee and independent contractor 
 76.19  compensation in the prior year, current year, and the proposed 
 76.20  budget year.  
 76.21     (d) The notice must state for each parcel: 
 76.22     (1) the market value of the property as determined under 
 76.23  section 273.11, and used for computing property taxes payable in 
 76.24  the following year and for taxes payable in the current year; 
 76.25  and, in the case of residential property, whether the property 
 76.26  is classified as homestead or nonhomestead.  The notice must 
 76.27  clearly inform taxpayers of the years to which the market values 
 76.28  apply and that the values are final values; 
 76.29     (2) by county, city or town, school district excess 
 76.30  referenda levy, remaining school district levy, regional library 
 76.31  district, if in existence, the total of the metropolitan special 
 76.32  taxing districts as defined in paragraph (i) and the sum of the 
 76.33  remaining special taxing districts, and as a total of the taxing 
 76.34  authorities, including all special taxing districts, the 
 76.35  proposed or, for a town, final net tax on the property for taxes 
 76.36  payable the following year and the actual tax for taxes payable 
 77.1   the current year.  For the purposes of this subdivision, "school 
 77.2   district excess referenda levy" means school district taxes for 
 77.3   operating purposes approved at referendums, including those 
 77.4   taxes based on net tax capacity as well as those based on market 
 77.5   value.  "School district excess referenda levy" does not include 
 77.6   school district taxes for capital expenditures approved at 
 77.7   referendums or school district taxes to pay for the debt service 
 77.8   on bonds approved at referenda.  In the case of the city of 
 77.9   Minneapolis, the levy for the Minneapolis library board and the 
 77.10  levy for Minneapolis park and recreation shall be listed 
 77.11  separately from the remaining amount of the city's levy.  In the 
 77.12  case of a parcel where tax increment or the fiscal disparities 
 77.13  areawide tax applies, the proposed tax levy on the captured 
 77.14  value or the proposed tax levy on the tax capacity subject to 
 77.15  the areawide tax must each be stated separately and not included 
 77.16  in the sum of the special taxing districts; and 
 77.17     (3) the increase or decrease in the amounts in clause (2) 
 77.18  from taxes payable in the current year to proposed or, for a 
 77.19  town, final taxes payable the following year, expressed as a 
 77.20  dollar amount and as a percentage. 
 77.21     (e) The notice must clearly state that the proposed or 
 77.22  final taxes do not include the following: 
 77.23     (1) special assessments; 
 77.24     (2) levies approved by the voters after the date the 
 77.25  proposed taxes are certified, including bond referenda, school 
 77.26  district levy referenda, and levy limit increase referenda; 
 77.27     (3) amounts necessary to pay cleanup or other costs due to 
 77.28  a natural disaster occurring after the date the proposed taxes 
 77.29  are certified; 
 77.30     (4) amounts necessary to pay tort judgments against the 
 77.31  taxing authority that become final after the date the proposed 
 77.32  taxes are certified; and 
 77.33     (5) the contamination tax imposed on properties which 
 77.34  received market value reductions for contamination. 
 77.35     (f) Except as provided in subdivision 7, failure of the 
 77.36  county auditor to prepare or the county treasurer to deliver the 
 78.1   notice as required in this section does not invalidate the 
 78.2   proposed or final tax levy or the taxes payable pursuant to the 
 78.3   tax levy. 
 78.4      (g) If the notice the taxpayer receives under this section 
 78.5   lists the property as nonhomestead and the homeowner provides 
 78.6   satisfactory documentation to the county assessor that the 
 78.7   property is owned and has been used as the owner's homestead 
 78.8   prior to June 1 of that year, the assessor shall reclassify the 
 78.9   property to homestead for taxes payable in the following year. 
 78.10     (h) In the case of class 4 residential property used as a 
 78.11  residence for lease or rental periods of 30 days or more, the 
 78.12  taxpayer must either: 
 78.13     (1) mail or deliver a copy of the notice of proposed 
 78.14  property taxes to each tenant, renter, or lessee; or 
 78.15     (2) post a copy of the notice in a conspicuous place on the 
 78.16  premises of the property.  
 78.17     (i) For purposes of this subdivision, subdivisions 5a and 
 78.18  6, "metropolitan special taxing districts" means the following 
 78.19  taxing districts in the seven-county metropolitan area that levy 
 78.20  a property tax for any of the specified purposes listed below: 
 78.21     (1) metropolitan council under section 473.132, 473.167, 
 78.22  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 78.23     (2) metropolitan airports commission under section 473.667, 
 78.24  473.671, or 473.672; and 
 78.25     (3) metropolitan mosquito control commission under section 
 78.26  473.711. 
 78.27     For purposes of this section, any levies made by the 
 78.28  regional rail authorities in the county of Anoka, Carver, 
 78.29  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 78.30  398A shall be included with the appropriate county's levy and 
 78.31  shall be discussed at that county's public hearing. 
 78.32     The notice must be mailed or posted by the taxpayer by 
 78.33  November 27 or within three days of receipt of the notice, 
 78.34  whichever is later.  A taxpayer may notify the county treasurer 
 78.35  of the address of the taxpayer, agent, caretaker, or manager of 
 78.36  the premises to which the notice must be mailed in order to 
 79.1   fulfill the requirements of this paragraph. 
 79.2      Sec. 16.  Minnesota Statutes 1994, section 276.131, is 
 79.3   amended to read: 
 79.4      276.131 [DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.] 
 79.5      The penalties, interest, and costs collected on special 
 79.6   assessments and real and personal property taxes must be 
 79.7   distributed as follows: 
 79.8      (1) all penalties and interest collected on special 
 79.9   assessments against real or personal property must be 
 79.10  distributed to the taxing jurisdiction that levied the 
 79.11  assessment; 
 79.12     (2) 50 percent of all penalties and interest collected on 
 79.13  real and personal property taxes must be distributed to the 
 79.14  county in which the property is located, and the other 50 
 79.15  percent must be distributed to the school district in which the 
 79.16  property is located districts within the county.  The 
 79.17  distribution to the school district must be in accordance with 
 79.18  the provisions of section 124.10; and 
 79.19     (3) all costs collected by the county on special 
 79.20  assessments and on delinquent real and personal property taxes 
 79.21  must be distributed to the county in which the property is 
 79.22  located.  
 79.23     Sec. 17.  [276.20] [WIND ENERGY TAX; DEFINITIONS.] 
 79.24     Subdivision 1.  [TERMS.] For the purposes of this section 
 79.25  and section 276.21, the following terms shall have these 
 79.26  meanings, unless otherwise provided to the contrary. 
 79.27     Subd. 2.  [WIND ENERGY SYSTEM.] "Wind energy system" means 
 79.28  a wind energy conversion system defined under section 216C.06, 
 79.29  subdivision 12, which is used as an electric power source. 
 79.30     Subd. 3.  [AREA.] "Area" means the counties of Lincoln and 
 79.31  Pipestone. 
 79.32     Subd. 4.  [HOME COUNTY.] "Home county" means the county of 
 79.33  Pipestone. 
 79.34     Subd. 5.  [MUNICIPALITY.] "Municipality" means any city or 
 79.35  town that is located in the area. 
 79.36     Subd. 6.  [QUALIFYING WIND ENERGY SYSTEM NET TAX 
 80.1   CAPACITY.] "Qualifying wind energy system net tax capacity" 
 80.2   means: 
 80.3      (a) the taxable portion of the net tax capacity of any wind 
 80.4   energy system located in the area installed after January 1, 
 80.5   1995; 
 80.6      (b) the portion of the hypothetical net tax capacity of a 
 80.7   wind energy system located in the area installed after January 
 80.8   1, 1991, and before January 2, 1995, that would be computed if 
 80.9   the property were subject to taxation under section 272.02, 
 80.10  subdivision 1, clause (21), paragraph (c). 
 80.11     Sec. 18.  [276.21] [WIND ENERGY TAX.] 
 80.12     Subdivision 1.  [DETERMINING LOCAL TAX RATES.] In 
 80.13  determining the local tax rate under section 275.08 for the 
 80.14  county and for any municipality in which one or more wind energy 
 80.15  systems are located, the county auditor shall deduct the 
 80.16  qualifying wind energy system net tax capacity as defined under 
 80.17  section 276.20, subdivision 6, clause (a), from the total net 
 80.18  tax capacity of the county and each municipality containing this 
 80.19  property. 
 80.20     Subd. 2.  [COUNTY WIND ENERGY TAX.] Each county auditor 
 80.21  shall determine the county wind energy tax by multiplying the 
 80.22  county tax rate times the net tax capacity of the taxable wind 
 80.23  energy system property located within the county.  The sum of 
 80.24  these amounts for each county in the area shall be called the 
 80.25  "county wind energy distribution pool." 
 80.26     Subd. 3.  [MUNICIPAL WIND ENERGY TAX.] Each county auditor 
 80.27  shall determine the municipal wind energy tax by multiplying 
 80.28  each municipality's tax rate times the net tax capacity of the 
 80.29  taxable wind energy system property located within the 
 80.30  municipality.  The sum of these amounts for all municipalities 
 80.31  in the area shall be called the "municipal wind energy 
 80.32  distribution pool." 
 80.33     Subd. 4.  [COUNTY WIND ENERGY DISTRIBUTION.] Each county 
 80.34  within the area is entitled to receive a distribution from the 
 80.35  county wind energy distribution pool equal to its proportion of 
 80.36  qualifying wind energy system net tax capacity relative to the 
 81.1   total for all counties in the area, provided that each county in 
 81.2   the area shall be entitled to a distribution equal to the 
 81.3   greater of (a) ten percent of the total county wind energy 
 81.4   distribution pool, or (b) 50 percent of the county's wind energy 
 81.5   tax. 
 81.6      Subd. 5.  [MUNICIPAL WIND ENERGY DISTRIBUTION.] Each 
 81.7   municipality within the area is entitled to receive a 
 81.8   distribution from the municipal wind energy distribution pool 
 81.9   equal to its proportion of qualifying wind energy system net tax 
 81.10  capacity relative to the total for all municipalities in the 
 81.11  area. 
 81.12     Subd. 6.  [WIND ENERGY TAX SETTLEMENT; PAYMENT.] The home 
 81.13  county auditor shall determine for each county in the area the 
 81.14  difference between the amount of the county wind energy tax 
 81.15  under subdivision 2 and the county wind energy distribution 
 81.16  under subdivision 4.  The home county auditor shall also 
 81.17  determine for each municipality within each county in the area, 
 81.18  the difference between the amount of the municipal wind energy 
 81.19  tax under subdivision 3 and the municipal wind energy 
 81.20  distribution under subdivision 5.  On or before May 16 of each 
 81.21  year, the home county shall certify the differences so 
 81.22  determined to each county auditor in the area.  In addition, the 
 81.23  home county auditor shall certify to those county auditors in 
 81.24  the area whose county and municipal wind energy tax exceeds the 
 81.25  total county and municipal wind energy tax distribution, the 
 81.26  settlement the county is to make to the other counties.  On or 
 81.27  before June 15 and November 15 of each year, each county 
 81.28  treasurer in a county in the area having a total wind energy tax 
 81.29  in excess of the total wind energy distribution shall pay 
 81.30  one-half of the excess to the other counties in accordance with 
 81.31  the home county auditor's certification.  On or before June 25 
 81.32  and November 25 of each year, each county treasurer in the area 
 81.33  shall pay the county and each municipality its wind energy 
 81.34  distribution amount. 
 81.35     Sec. 19.  Minnesota Statutes 1994, section 279.01, 
 81.36  subdivision 1, is amended to read: 
 82.1      Subdivision 1.  Except as provided in subdivision 3 or 4, 
 82.2   on May 16 or 21 days after the postmark date on the envelope 
 82.3   containing the property tax statement, whichever is later, a 
 82.4   penalty shall accrue and thereafter be charged upon all unpaid 
 82.5   taxes on real estate on the current lists in the hands of the 
 82.6   county treasurer.  The penalty shall be at a rate of two percent 
 82.7   on homestead property until May 31 and four percent on June 1.  
 82.8   The penalty on nonhomestead property shall be at a rate of four 
 82.9   percent until May 31 and eight percent on June 1.  This penalty 
 82.10  shall not accrue until June 1 of each year, or 21 days after the 
 82.11  postmark date on the envelope containing the property tax 
 82.12  statements, whichever is later, on commercial use real property 
 82.13  used for seasonal residential recreational purposes and 
 82.14  classified as class 1c or 4c, and on other commercial use real 
 82.15  property classified as class 3a, provided that over 60 percent 
 82.16  of the gross income earned by the enterprise on the class 3a 
 82.17  property is earned during the months of May, June, July, and 
 82.18  August.  Any property owner of such class 3a property who pays 
 82.19  the first half of the tax due on the property after May 15 and 
 82.20  before June 1, or 21 days after the postmark date on the 
 82.21  envelope containing the property tax statement, whichever is 
 82.22  later, shall attach an affidavit to the payment attesting to 
 82.23  compliance with the income provision of this subdivision.  
 82.24  Thereafter, for both homestead and nonhomestead property, on the 
 82.25  first day of each month beginning July 1, up to and including 
 82.26  October 1 following, an additional penalty of one percent for 
 82.27  each month shall accrue and be charged on all such unpaid taxes 
 82.28  provided that if the due date was extended beyond May 15 as the 
 82.29  result of any delay in mailing property tax statements no 
 82.30  additional penalty shall accrue if the tax is paid by the 
 82.31  extended due date.  If the tax is not paid by the extended due 
 82.32  date, then all penalties that would have accrued if the due date 
 82.33  had been May 15 shall be charged.  When the taxes against any 
 82.34  tract or lot exceed $50, one-half thereof may be paid prior to 
 82.35  May 16 or 21 days after the postmark date on the envelope 
 82.36  containing the property tax statement, whichever is later; and, 
 83.1   if so paid, no penalty shall attach; the remaining one-half 
 83.2   shall be paid at any time prior to October 16 following, without 
 83.3   penalty; but, if not so paid, then a penalty of two percent 
 83.4   shall accrue thereon for homestead property and a penalty of 
 83.5   four percent on nonhomestead property.  Thereafter, for 
 83.6   homestead property, on the first day of November an additional 
 83.7   penalty of four percent shall accrue and on the first day of 
 83.8   December following, an additional penalty of two percent shall 
 83.9   accrue and be charged on all such unpaid taxes.  Thereafter, for 
 83.10  nonhomestead property, on the first day of November and December 
 83.11  following, an additional penalty of four percent for each month 
 83.12  shall accrue and be charged on all such unpaid taxes.  If 
 83.13  one-half of such taxes shall not be paid prior to May 16 or 21 
 83.14  days after the postmark date on the envelope containing the 
 83.15  property tax statement, whichever is later, the same may be paid 
 83.16  at any time prior to October 16, with accrued penalties to the 
 83.17  date of payment added, and thereupon no penalty shall attach to 
 83.18  the remaining one-half until October 16 following.  
 83.19     This section applies to payment of personal property taxes 
 83.20  assessed against improvements to leased property, except as 
 83.21  provided by section 277.01, subdivision 3. 
 83.22     A county may provide by resolution that in the case of a 
 83.23  property owner that has multiple tracts or parcels with 
 83.24  aggregate taxes exceeding $50, payments may be made in 
 83.25  installments as provided in this subdivision. 
 83.26     The county treasurer may accept payments of more or less 
 83.27  than the exact amount of a tax installment due.  If the accepted 
 83.28  payment is less than the amount due, payments must be applied 
 83.29  first to the penalty accrued for the year the payment is made.  
 83.30  Acceptance of partial payment of tax does not constitute a 
 83.31  waiver of the minimum payment required as a condition for filing 
 83.32  an appeal under section 278.03 or any other law, nor does it 
 83.33  affect the order of payment of delinquent taxes under section 
 83.34  280.39. 
 83.35     Sec. 20.  Minnesota Statutes 1994, section 279.01, is 
 83.36  amended by adding a subdivision to read: 
 84.1      Subd. 4.  [SEASONAL RESIDENTIAL RECREATIONAL PROPERTY.] In 
 84.2   the case of class 4c seasonal residential recreational property 
 84.3   not used for commercial purposes, penalties shall accrue and be 
 84.4   charged on unpaid taxes at the times and at the rates provided 
 84.5   in subdivision 1 for homestead property. 
 84.6      Sec. 21.  [282.135] [DELEGATION BY COUNTY BOARD.] 
 84.7      Except as provided in section 282.13 and notwithstanding 
 84.8   any other law to the contrary, the county board may delegate to 
 84.9   the county auditor any authority, power, or responsibility 
 84.10  relating generally to the administration of tax-forfeited land 
 84.11  assigned to the county board this chapter.  This delegation 
 84.12  includes, but is not limited to, the authority, power, and 
 84.13  responsibility to classify tax-forfeited land as conservation or 
 84.14  nonconservation property; set the appraisal values and terms of 
 84.15  sale and sell at public auction; initiate legal proceedings to 
 84.16  cancel purchase and repurchase contracts in default status; 
 84.17  authorize reinstatement of canceled tax-forfeited contracts; and 
 84.18  authorize former owners and other eligible parties to repurchase 
 84.19  tax-forfeited land.  If delegation is granted under this 
 84.20  section, the county board shall prescribe the conditions for 
 84.21  delegation and may revoke the delegation without good cause or 
 84.22  prior notice.  If the county auditor holds elective office, no 
 84.23  delegation shall be made under this section unless the county 
 84.24  auditor concurs in the delegation. 
 84.25     Sec. 22.  Minnesota Statutes 1994, section 290A.03, 
 84.26  subdivision 6, is amended to read: 
 84.27     Subd. 6.  [HOMESTEAD.] "Homestead" means the dwelling 
 84.28  occupied as the claimant's principal residence and so much of 
 84.29  the land surrounding it, not exceeding ten acres, as is 
 84.30  reasonably necessary for use of the dwelling as a home and any 
 84.31  other property used for purposes of a homestead as defined in 
 84.32  section 273.13, subdivision 22, except for agricultural land 
 84.33  assessed as part of a homestead pursuant to section 273.13, 
 84.34  subdivision 23, "homestead" is limited to 320 acres or, where 
 84.35  the farm homestead is rented, one acre.  The homestead may be 
 84.36  owned or rented and may be a part of a multidwelling or 
 85.1   multipurpose building and the land on which it is built.  A 
 85.2   manufactured home, as defined in section 273.125, subdivision 8, 
 85.3   or a park trailer taxed as a manufactured home under section 
 85.4   168.012, subdivision 9, assessed as personal property may be a 
 85.5   dwelling for purposes of this subdivision. 
 85.6      Sec. 23.  Minnesota Statutes 1994, section 290A.03, 
 85.7   subdivision 13, is amended to read: 
 85.8      Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 85.9   payable" means the property tax exclusive of special 
 85.10  assessments, penalties, and interest payable on a claimant's 
 85.11  homestead before reductions made under section 273.13 but after 
 85.12  deductions made under sections 273.135, 273.1391, 273.42, 
 85.13  subdivision 2, and any other state paid property tax credits in 
 85.14  any calendar year.  In the case of a claimant who makes ground 
 85.15  lease payments, "property taxes payable" includes the amount of 
 85.16  the payments directly attributable to the property taxes 
 85.17  assessed against the parcel on which the house is located.  No 
 85.18  apportionment or reduction of the "property taxes payable" shall 
 85.19  be required for the use of a portion of the claimant's homestead 
 85.20  for a business purpose if the claimant does not deduct any 
 85.21  business depreciation expenses for the use of a portion of the 
 85.22  homestead in the determination of federal adjusted gross 
 85.23  income.  For homesteads which are manufactured homes as defined 
 85.24  in section 274.19, subdivision 8, and for homesteads which are 
 85.25  park trailers taxed as manufactured homes under section 168.012, 
 85.26  subdivision 9, "property taxes payable" shall also include the 
 85.27  amount of the gross rent paid in the preceding year for the site 
 85.28  on which the homestead is located, which is attributable to the 
 85.29  net tax paid on the site.  The amount attributable to property 
 85.30  taxes shall be determined by multiplying the net tax on the 
 85.31  parcel by a fraction, the numerator of which is the gross rent 
 85.32  paid for the calendar year for the site and the denominator of 
 85.33  which is the gross rent paid for the calendar year for the 
 85.34  parcel.  When a homestead is owned by two or more persons as 
 85.35  joint tenants or tenants in common, such tenants shall determine 
 85.36  between them which tenant may claim the property taxes payable 
 86.1   on the homestead.  If they are unable to agree, the matter shall 
 86.2   be referred to the commissioner of revenue whose decision shall 
 86.3   be final.  Property taxes are considered payable in the year 
 86.4   prescribed by law for payment of the taxes. 
 86.5      In the case of a claim relating to "property taxes 
 86.6   payable," the claimant must have owned and occupied the 
 86.7   homestead on January 2 of the year in which the tax is payable 
 86.8   and (i) the property must have been classified as homestead 
 86.9   property pursuant to section 273.13, subdivision 22 or 23, on or 
 86.10  before December 15 of the assessment year to which the "property 
 86.11  taxes payable" relate; or (ii) the claimant must provide 
 86.12  documentation from the local assessor that application for 
 86.13  homestead classification has been made on or before December 15 
 86.14  of the year in which the "property taxes payable" were payable 
 86.15  and that the assessor has approved the application. 
 86.16     Sec. 24.  Minnesota Statutes 1994, section 290A.04, 
 86.17  subdivision 3, is amended to read: 
 86.18     Subd. 3.  The commissioner of revenue shall construct and 
 86.19  make available to taxpayers a comprehensive table showing the 
 86.20  property taxes to be paid and refund allowed at various levels 
 86.21  of income and assessment.  The table shall follow the schedule 
 86.22  of income percentages, maximums and other provisions specified 
 86.23  in subdivision 2, except that the commissioner may graduate the 
 86.24  transition between income brackets.  All refunds shall be 
 86.25  computed in accordance with tables prepared and issued by the 
 86.26  commissioner of revenue.  
 86.27     The commissioner shall include on the form an appropriate 
 86.28  space or method for the claimant to identify if the property 
 86.29  taxes paid are for a manufactured home, as defined in section 
 86.30  273.125, subdivision 8, paragraph (c), or a park trailer taxed 
 86.31  as a manufactured home under section 168.012, subdivision 9. 
 86.32     Sec. 25.  Minnesota Statutes 1994, section 290A.07, 
 86.33  subdivision 2a, is amended to read: 
 86.34     Subd. 2a.  A claimant who is a renter or a homeowner who 
 86.35  occupies a manufactured home, as defined in section 273.125, 
 86.36  subdivision 8, paragraph (c), or a park trailer taxed as a 
 87.1   manufactured home under section 168.012, subdivision 9, shall 
 87.2   receive full payment after August 1 and before August 15 or 60 
 87.3   days after receipt of the application, whichever is later.  
 87.4      Sec. 26.  Minnesota Statutes 1994, section 375.192, is 
 87.5   amended by adding a subdivision to read: 
 87.6      Subd. 4.  [DELEGATION BY COUNTY BOARD.] Notwithstanding any 
 87.7   law to the contrary, the county board may delegate to the county 
 87.8   auditor any authority, power, or responsibility assigned to the 
 87.9   county board in this section.  If delegation is granted under 
 87.10  this subdivision, the county board shall prescribe the 
 87.11  conditions for the delegation and may revoke delegation without 
 87.12  good cause or prior notice.  If the county auditor holds 
 87.13  elective office, no delegation shall be made under this 
 87.14  subdivision unless the county auditor concurs in the delegation. 
 87.15     Sec. 27.  [473.3915] [TRANSIT ZONES.] 
 87.16     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 87.17  section, the terms defined in subdivisions 2 and 3 have the 
 87.18  meanings given them. 
 87.19     Subd. 2.  [REGULAR ROUTE TRANSIT SERVICE.] "Regular route 
 87.20  transit service" means services as defined in section 473.385, 
 87.21  subdivision 1, paragraph (b), with at least two scheduled runs 
 87.22  per hour between 7:00 a.m. and 6:30 p.m., Monday to Friday, and 
 87.23  regularly scheduled service on Saturday, Sunday, and holidays, 
 87.24  and weekdays after 6:30 p.m. 
 87.25     Subd. 3.  [TRANSIT ZONE.] "Transit zone" means the area 
 87.26  within one-quarter of a mile of a route along which regular 
 87.27  route transit service is provided that is also within the 
 87.28  metropolitan urban service area, as determined by the council.  
 87.29  "Transit zone" includes any light rail transit route for which 
 87.30  funds for construction have been committed. 
 87.31     Subd. 4.  [TRANSIT ZONES; MAP AND PLAN.] For the purposes 
 87.32  of section 273.13, subdivision 24, the council shall designate 
 87.33  transit zones and identify them on a detailed map and in a 
 87.34  plan.  The council shall review the map and plan once a year and 
 87.35  revise them as necessary to indicate the current transit zones.  
 87.36  The council shall provide each county and city assessor in the 
 88.1   metropolitan area a copy of the current map and plan. 
 88.2      Subd. 5.  [TRANSIT ZONE MAP; DATE FIRST PRODUCED.] The 
 88.3   metropolitan council shall produce an initial version of the 
 88.4   transit zone map required under subdivision 4 by January 1, 1996.
 88.5      Subd. 6.  [APPLICATION.] This section applies in the 
 88.6   counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
 88.7   Washington. 
 88.8      Sec. 28.  Laws 1985, chapter 302, section 2, subdivision 1, 
 88.9   as amended by Laws 1993, chapter 375, article 5, section 36, 
 88.10  subdivision 1, is amended to read: 
 88.11     Subdivision 1.  [ORDINANCE.] The governing body of the city 
 88.12  may adopt ordinances: 
 88.13     (a) establishing a special service district in the part of 
 88.14  Minneapolis which is south of 28th Street, west of Dupont Avenue 
 88.15  South, north of 31st Street, and east of East Calhoun Parkway 
 88.16  and East Lake of the Isles Parkway; and 
 88.17     (b) establishing a special service district south of Sixth 
 88.18  Street southeast, west of Sixteenth Avenue Southeast, north of a 
 88.19  line parallel to and 200 feet south of University Avenue and 
 88.20  east of Twelfth Avenue Southeast; 
 88.21     (c) establishing a special service district that includes 
 88.22  that part of Minneapolis lying within the following described 
 88.23  line:  commencing at the intersection of Grant Street with 
 88.24  LaSalle Avenue, South on LaSalle Avenue to Franklin Avenue south 
 88.25  on Blaisdell Avenue to 29th Street, east on 29th Street to 1st 
 88.26  Avenue South, north on 1st Avenue South to a point on a line 
 88.27  parallel to and 200 feet south of 26th Street, east on that line 
 88.28  to 3rd Avenue South, north on 3rd Avenue South to a point on a 
 88.29  line parallel to and 200 feet north of 26th Street, west on that 
 88.30  line to 1st Avenue South, north on 1st Avenue South to Grant 
 88.31  Street, west on Grant Street to the point of origin; 
 88.32     (d) establishing a special service district south of Saint 
 88.33  Anthony Parkway, west of a line parallel to and 300 feet east of 
 88.34  Central Avenue, north of Broadway Street, and east of a line 
 88.35  parallel to and 300 feet west of Central Avenue; and 
 88.36     (e) establishing a special service district that includes 
 89.1   that portion of Minneapolis lying within the following described 
 89.2   line:  commencing at the intersection of the Mississippi River 
 89.3   and Interstate Highway 94, northwesterly along the Mississippi 
 89.4   River to its intersection with Interstate Highway 35W, 
 89.5   southwesterly on Interstate Highway 35W to its intersection with 
 89.6   Hiawatha Avenue extended (Trunk Highway 55), southeasterly on 
 89.7   Hiawatha Avenue to its intersection with Franklin Avenue, 
 89.8   easterly on Franklin Avenue to its intersection with 20th Avenue 
 89.9   South extended, northerly on 20th Avenue South to its 
 89.10  intersection with Interstate Highway 94, and easterly on 
 89.11  Interstate Highway 94 to the point of origin. 
 89.12     Only property which is zoned for commercial, business, or 
 89.13  industrial use under a municipal zoning ordinance may be 
 89.14  included in a special service district.  The ordinance shall 
 89.15  describe with particularity the areas to be included in the 
 89.16  district and the special services to be furnished.  The 
 89.17  ordinance may not be adopted until after a public hearing on the 
 89.18  question.  Notice of the hearing shall include: 
 89.19     (1) the time and place of the hearing; 
 89.20     (2) a map showing the boundaries of the proposed district; 
 89.21  and 
 89.22     (3) a statement that all persons owning property in the 
 89.23  proposed district will be given an opportunity to be heard at 
 89.24  the hearing. 
 89.25     Subd. 2.  [LOCAL APPROVAL.] This section is effective the 
 89.26  day after the governing body of the city of Minneapolis complies 
 89.27  with Minnesota Statutes, section 645.021, subdivision 3. 
 89.28     Sec. 29.  Laws 1992, chapter 511, article 2, section 45, 
 89.29  subdivision 1, is amended to read: 
 89.30     Subdivision 1.  [EXEMPTION.] As provided in this section, 
 89.31  qualified student housing at the Duluth technical college is 
 89.32  exempt from ad valorem property taxation and in lieu payments 
 89.33  under Minnesota Statutes, section 469.040, subdivision 3.  In 
 89.34  order to qualify for the exemption, the requirements in 
 89.35  subdivisions 2 to 6 must be met. 
 89.36     Sec. 30.  Laws 1992, chapter 511, article 2, section 45, is 
 90.1   amended by adding a subdivision to read: 
 90.2      Subd. 6a.  [HOUSING REDEVELOPMENT AUTHORITY; EXCEPTIONS.] 
 90.3   The requirements of subdivisions 2, 3, 4, and 5 do not apply in 
 90.4   order to qualify for the exemption if the student housing is 
 90.5   owned by the local housing and redevelopment authority, the 
 90.6   reduced cost of development due to the exemption is reflected in 
 90.7   lower rents, and a reasonable system is used to provide priority 
 90.8   to students in renting the dwelling units. 
 90.9      Sec. 31.  Laws 1992, chapter 511, article 2, section 45, 
 90.10  subdivision 7, is amended to read: 
 90.11     Subd. 7.  [EXPIRATION.] This section applies to student 
 90.12  housing approved by the state board before January 1, 1997.  The 
 90.13  property tax exemption for a student housing development is 
 90.14  limited to 20 years from the date of first occupancy.  This 
 90.15  section expires January 1, 2018. 
 90.16     Sec. 32.  Laws 1992, chapter 511, article 2, section 46, 
 90.17  subdivision 1, is amended to read: 
 90.18     Subdivision 1.  [EXEMPTION.] As provided in this section, 
 90.19  qualified student housing at the Thief River Falls technical 
 90.20  college is exempt from ad valorem property taxation and in lieu 
 90.21  payments under Minnesota Statutes, section 469.040, subdivision 
 90.22  3.  In order to qualify for the exemption, the requirements in 
 90.23  subdivisions 2 to 6 must be met. 
 90.24     Sec. 33.  Laws 1992, chapter 511, article 2, section 46, is 
 90.25  amended by adding a subdivision to read: 
 90.26     Subd. 6a.  [HOUSING REDEVELOPMENT AUTHORITY; EXCEPTIONS.] 
 90.27  The requirements of subdivisions 2, 3, 4, and 5 do not apply in 
 90.28  order to qualify for the exemption if the student housing is 
 90.29  owned by the local housing and redevelopment authority or by a 
 90.30  multicounty housing and redevelopment authority on land leased 
 90.31  from a city or school district, the reduced cost of development 
 90.32  due to the exemption is reflected in lower rents, and a 
 90.33  reasonable system is used to provide priority to students in 
 90.34  renting the dwelling units. 
 90.35     Sec. 34.  Laws 1992, chapter 511, article 2, section 46, 
 90.36  subdivision 7, is amended to read: 
 91.1      Subd. 7.  [EXPIRATION.] This section applies to student 
 91.2   housing approved by the state board before January 1, 1997.  The 
 91.3   property tax exemption for a student housing development is 
 91.4   limited to 20 years from the date of first occupancy.  This 
 91.5   section expires January 1, 2018. 
 91.6      Sec. 35.  Laws 1993, chapter 375, article 5, section 40, 
 91.7   subdivision 3, is amended to read: 
 91.8      Subd. 3.  [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT; 
 91.9   AREA.] The governing body of the city may establish a special 
 91.10  service district in the city.  The district shall be bounded on 
 91.11  the northwest by Interstate Highway 35, on the northeast by the 
 91.12  centerline of Sixth Avenue West and as the same is extended to 
 91.13  the United States Harbor Line in St. Louis Bay, on the southeast 
 91.14  by said Harbor Line and on the southwest by the centerline 
 91.15  of Ninth Tenth Avenue West and as the same is extended to said 
 91.16  Harbor Line. 
 91.17     Sec. 36.  Laws 1993, chapter 375, article 5, section 44, is 
 91.18  amended to read: 
 91.19     Sec. 44.  [EFFECTIVE DATE.] 
 91.20     Section 1 is effective April 1, 1994.  
 91.21     Sections 2, 3, clause (26), and 43, paragraph (b), are 
 91.22  effective for taxes levied in 1993, payable in 1994, and 
 91.23  thereafter. 
 91.24     Section 3, clause (25), is effective for taxes levied in 
 91.25  1991, payable in 1992, and thereafter.  Upon application to and 
 91.26  approval by the county auditor, the county treasurer shall 
 91.27  refund to the taxpayer any taxes paid for 1992 that are exempt 
 91.28  under section 3, clause (25).  The refund shall be paid without 
 91.29  interest.  Each taxing jurisdiction must reimburse the county 
 91.30  for the refund in the same proportion as the taxing 
 91.31  jurisdiction's levy bears to the total levies of all 
 91.32  jurisdictions for taxes payable in 1992.  The amount of the 
 91.33  reimbursement may be deducted in the next distribution of tax 
 91.34  proceeds to the taxing jurisdiction. 
 91.35     Sections 4 to 7, 17, and 43, paragraph (a), are effective 
 91.36  the day following final enactment, except that section 17, 
 92.1   paragraphs (c) and (d) are effective for taxes payable in 1994 
 92.2   and thereafter. 
 92.3      Sections 8 to 10, 12, 19, 21 to 27, and 30 are effective 
 92.4   for 1993 assessments for taxes payable in 1994 and subsequent 
 92.5   years, except if provided otherwise. 
 92.6      Section 11, clauses (1) and (2), are effective for the 1992 
 92.7   assessment, taxes payable in 1993 and thereafter.  Section 11, 
 92.8   clause (3), is effective for the 1993 assessment, taxes payable 
 92.9   in 1994 and thereafter. 
 92.10     Section 13 is effective for qualifying improvements made 
 92.11  after January 2, 1993; except that in the case of improvements 
 92.12  made under a city-sponsored interest rate incentive program, 
 92.13  section 13 is also effective for improvements made between 
 92.14  January 1, 1992, and January 1, 1993, provided that the market 
 92.15  value of those improvements shall initially be excluded from the 
 92.16  property's 1995 assessment and are subject to all other 
 92.17  limitations under Minnesota Statutes 1994, section 273.11, 
 92.18  subdivision 16.  
 92.19     Sections 14 and 15 are effective for the 1994 assessment, 
 92.20  payable in 1995, and thereafter.  Notwithstanding Minnesota 
 92.21  Statutes, section 273.112, subdivision 6, in order to qualify 
 92.22  for valuation under Minnesota Statutes, section 273.112, for the 
 92.23  1994 assessment, the taxpayer of the property devoted to golf 
 92.24  and operated by private clubs, that does not meet the 
 92.25  requirement of Minnesota Statutes, section 273.112, subdivision 
 92.26  3, for the 1993 assessment year, must submit an affidavit or 
 92.27  other written verification to the assessor showing that the 
 92.28  bylaws in rules and regulations of the private club meet the 
 92.29  eligibility requirements of Minnesota Statutes, section 273.112, 
 92.30  by January 1, 1994. 
 92.31     Sections 16 and 18 are effective for assessment year 1994 
 92.32  and subsequent years. 
 92.33     Section 20 is effective for taxes payable in 1995 and 
 92.34  thereafter. 
 92.35     Section 28 is effective for taxes payable in 1994 and 
 92.36  thereafter. 
 93.1      Section 29 is effective for the 1991 assessment and 
 93.2   thereafter, for taxes payable in 1992 and thereafter.  For taxes 
 93.3   payable in 1992 and 1993, any amounts paid by the property owner 
 93.4   in excess of the amounts required by section 29 shall be paid by 
 93.5   the county treasurer to the property owner under the abatement 
 93.6   procedures. 
 93.7      Section 31 is effective for applications for reductions or 
 93.8   abatements filed after the day of final enactment. 
 93.9      Section 33 is effective for assessments certified after 
 93.10  July 1, 1993. 
 93.11     Section 40 is effective the day after compliance with 
 93.12  Minnesota Statutes, section 645.021, subdivision 3, by the 
 93.13  governing body of the city of Duluth. 
 93.14     Section 43, clause (c) is repealed effective January 2, 
 93.15  1993, provided that any improvements made prior to January 2, 
 93.16  1993, shall continue to qualify for the delayed assessment 
 93.17  provisions under section 383C.78 for the duration of the period 
 93.18  provided in that section. 
 93.19     Sec. 37.  Laws 1994, chapter 587, article 9, section 10, 
 93.20  subdivision 6, is amended to read: 
 93.21     Subd. 6.  [EFFECTIVE DATE.] This section (a) Laws 1994, 
 93.22  chapter 587, article 9, section 10, is effective in any of the 
 93.23  following cities or towns the day after compliance by the 
 93.24  governing body of a city or town with Minnesota Statutes, 
 93.25  section 645.021, subdivision 3:  the cities of Nashwauk, 
 93.26  Keewatin, Marble, Taconite, and Calumet, and the towns of Feely, 
 93.27  Goodland, Iron Range, Greenway, Lone Pine, Lawrence, Nashwauk, 
 93.28  Balsam, and Bearville the day after compliance with Minnesota 
 93.29  Statutes, section 645.021, subdivision 3, by the governing body 
 93.30  of each.  This section.  Laws 1994, chapter 587, article 9, 
 93.31  section 10, is effective for unorganized territories described 
 93.32  in subdivision 1, paragraph (a), clauses (12) to (18), the day 
 93.33  after compliance with Minnesota Statutes, section 645.021, 
 93.34  subdivision 3, by the Itasca county board. 
 93.35     (b) Notwithstanding the time limitations for filing local 
 93.36  approval under Minnesota Statutes, section 645.021, subdivision 
 94.1   3, the certificate of approval of any of the cities, towns, or 
 94.2   counties named in this subdivision may be filed with the 
 94.3   secretary of state at any time after May 6, 1994, and the law 
 94.4   approved by the certificate is then effective as to the 
 94.5   certifying city, town, or unorganized territory. 
 94.6      Sec. 38.  Laws 1994, chapter 587, article 5, section 27, is 
 94.7   amended as follows: 
 94.8      Sec. 27.  [RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT.] 
 94.9      Subdivision 1.  [PILOT; TERM.] A pilot project for rental 
 94.10  tax equity in the city of Saint Paul is established.  The 
 94.11  program is for property taxes payable in 1995 and 1996.  The 
 94.12  program is available to owners of single- and two-family 
 94.13  nonhomestead property. 
 94.14     Subd. 2.  [PRIMARY OBJECTIVE.] The pilot project's primary 
 94.15  objective is to help stabilize costs for the conscientious, 
 94.16  industrious landlord who is already providing safe, decent, and 
 94.17  affordable housing.  The property tax reduction provided by the 
 94.18  program is intended to give an incentive to other landlords to 
 94.19  improve their tenant-occupied property and still offer 
 94.20  affordable housing. 
 94.21     Subd. 3.  [PROPERTY TAX TREATMENT.] (a) Single- and 
 94.22  two-family nonhomestead property located in the city of Saint 
 94.23  Paul and existing on the effective date of this section, that is 
 94.24  classified under Minnesota Statutes, section 273.13, subdivision 
 94.25  25, paragraph (b), clause (1), and that meets the requirements 
 94.26  of this section, is eligible for the property tax credit under 
 94.27  subdivision 8. 
 94.28     (b) The program is not a housing or building code 
 94.29  enforcement program.  
 94.30     (c) Participation in the program is voluntary. 
 94.31     (d) If reimbursements under subdivision 8 limit the number 
 94.32  of participants in this program, priority shall be given to 
 94.33  landlords who live in the city of Saint Paul. 
 94.34     Subd. 4.  [NOTIFICATION TO OWNERS.] The city of Saint Paul 
 94.35  shall notify the owner of each single- and two-family 
 94.36  nonhomestead property located in the city that the property may 
 95.1   be eligible to receive a property tax credit as provided in this 
 95.2   section. 
 95.3      Subd. 5.  [PROGRAM STEPS.] (a) A landlord who owns eligible 
 95.4   property and who wishes to participate must arrange for a 
 95.5   certified evaluator who is licensed by the city of Saint Paul to 
 95.6   evaluate the property. 
 95.7      (b) The landlord must notify the tenant of the evaluation 
 95.8   so that the tenant may be present if the tenant wishes. 
 95.9      (c) The evaluator must evaluate the property using program 
 95.10  guidelines adopted by resolution of the Saint Paul city council 
 95.11  prior to implementation of the program under this section. 
 95.12     (d) If the evaluator determines that repairs are necessary, 
 95.13  the landlord must make the repairs and call for a reinspection 
 95.14  by the evaluator. To receive the property tax credit under 
 95.15  subdivision 9, the evaluator must have determined that repairs 
 95.16  were necessary, and the landlord must make the repairs and call 
 95.17  for a reinspection by the evaluator. 
 95.18     If the evaluator identifies life or safety hazards, the 
 95.19  evaluator must notify appropriate city officials, who shall take 
 95.20  immediate action to require and enforce repair of the life or 
 95.21  safety hazard items. 
 95.22     (e) The evaluator must reinspect the property to see if the 
 95.23  program guidelines have been followed. 
 95.24     (f) The evaluator must submit a report on the property's 
 95.25  evaluation to the appropriate city officials, the landlord, and 
 95.26  the tenant.  A filing fee must be paid at the time the report is 
 95.27  submitted to the city. 
 95.28     (g) Appropriate city officials must review the report and 
 95.29  approve it or issue orders for further repair.  In so doing, 
 95.30  city staff members may make an on-site review.  The landlord may 
 95.31  withdraw from the program at any time without making required 
 95.32  repairs except those for life or safety hazards, which may be 
 95.33  otherwise required.  Property for which the evaluator's report 
 95.34  is approved must be certified by the appropriate city officials 
 95.35  to the county assessor.  The city must limit the number of 
 95.36  qualifying properties so that the credit payable under 
 96.1   subdivision 8 will not, in the city's estimate, exceed 
 96.2   $1,000,000. 
 96.3      (h) A landlord who chooses to participate must complete an 
 96.4   application for certification by November 1, 1994, for taxes 
 96.5   payable in 1995 and by September 1, 1995, for taxes payable in 
 96.6   1996. 
 96.7      (i) An owner may apply this program to no more than two 
 96.8   nonhomestead, single- or two-family, tenant-occupied properties. 
 96.9      Subd. 6.  [APPEALS.] (a) The board of equalization must 
 96.10  serve as a board of review to hear appeals relating to the value 
 96.11  of improvements and properties.  Procedures for board actions 
 96.12  and for appeals from board decisions are as provided for other 
 96.13  matters decided by the board of equalization.  
 96.14     (b) The city may appoint a board of appeals to hear 
 96.15  disputes regarding qualification.  The board shall meet to hear 
 96.16  appeals under this program between November 1 and December 1, 
 96.17  1994, for appeals for taxes payable in 1995 and between November 
 96.18  1 and December 1, 1995, for appeals for taxes payable in 1996. 
 96.19     Subd. 7.  [CITY FEES.] The landlord must pay the housing 
 96.20  evaluator a fee, as determined by the city, for the initial 
 96.21  inspection and necessary reinspections.  The evaluator must pay 
 96.22  a filing fee, as determined by the city, to file the evaluator's 
 96.23  report.  The evaluator may be reimbursed by the landlord for 
 96.24  this fee.  The landlord must pay the city a fee, as determined 
 96.25  by the city, to apply for recertification.  If additional 
 96.26  inspections are required, a reinspection fee, as determined by 
 96.27  the city, must be paid by the landlord. 
 96.28     Subd. 8.  [CREDIT AND REIMBURSEMENT.] (a) [CREDIT 
 96.29  PROVIDED.] Property that meets the requirements under this 
 96.30  section is eligible for a property tax credit equal to the 
 96.31  difference between (1) the tax on the property and (2) the tax 
 96.32  that would be payable if the property were classified under 
 96.33  Minnesota Statutes, section 273.13, subdivision 22, paragraph 
 96.34  (a). 
 96.35     (b) [PROPERTY TAX STATEMENTS.] The property tax statement 
 96.36  provided under Minnesota Statutes, section 276.04, to an owner 
 97.1   of property that receives the credit under this subdivision 
 97.2   shall include information on the amount of the credit given to 
 97.3   the property.  The Ramsey county treasurer shall notify the 
 97.4   commissioner of revenue on how the county plans to modify the 
 97.5   property tax statements to include the necessary information. 
 97.6      (c) [GENERAL FUND; REPLACEMENT OF REVENUE.] Payment from 
 97.7   the general fund shall be made as provided in this subdivision 
 97.8   for the purpose of replacing revenue lost as a result of the 
 97.9   reduction of property taxes provided in this subdivision. 
 97.10     The Ramsey county auditor shall certify to the commissioner 
 97.11  of revenue the amount of reduction resulting from this 
 97.12  subdivision.  This certification shall be submitted to the 
 97.13  commissioner of revenue as part of the abstracts of tax lists 
 97.14  required to be filed with the commissioner under the provisions 
 97.15  of Minnesota Statutes, section 275.29.  The commissioner of 
 97.16  revenue shall review the certification to determine its accuracy 
 97.17  and make changes in the certification as necessary or return the 
 97.18  certification to the county auditor for corrections. 
 97.19     Based on current year tax data reported in the abstracts of 
 97.20  tax lists, the commissioner of revenue shall determine the 
 97.21  taxing district distribution of the amounts certified.  The 
 97.22  commissioner of revenue shall pay to each taxing district, other 
 97.23  than school districts, its total payment for the year at the 
 97.24  times provided in Minnesota Statutes, section 473H.10.  The 
 97.25  credit reimbursement to school districts must be certified to 
 97.26  the commissioner of education and paid as provided under 
 97.27  Minnesota Statutes, section 273.1392. 
 97.28     The reimbursement paid under this subdivision shall be made 
 97.29  only in 1995 and in 1996, and is limited to a total amount 
 97.30  of $1,000,000 for the two years.  To the extent the amount of 
 97.31  credit originally certified exceeds $1,000,000, reimbursements 
 97.32  to the taxing districts shall be prorated according to the 
 97.33  proportions of their levies so as not to exceed $1,000,000. 
 97.34     Any amount remaining of the $1,000,000 total appropriation, 
 97.35  after the reimbursement for taxes payable in 1995 have been 
 97.36  paid, is available for taxes payable in 1996 provided, however, 
 98.1   that the total amount available for both taxes payable in 1995 
 98.2   and 1996 shall not exceed the total $1,000,000 appropriation for 
 98.3   both years. 
 98.4      Subd. 9.  [REPORT TO THE LEGISLATURE.] By January 15, 1995, 
 98.5   and by January 15, 1996, the Saint Paul city council shall 
 98.6   provide a report to the committee on housing and the committee 
 98.7   on taxes and tax laws of the senate and the housing committee 
 98.8   and the tax committee of the house of representatives on the 
 98.9   program.  The report must include the program guidelines, 
 98.10  housing costs, rents and the extent of participation in the 
 98.11  program for the 1995 tax year and 1996 tax year, respectively. 
 98.12     Subd. 10.  [EFFECTIVE DATE.] This section is effective the 
 98.13  day following final enactment, upon compliance with Minnesota 
 98.14  Statutes, section 645.021, subdivision 3, by the city of Saint 
 98.15  Paul, and applies to property taxes payable in 1995 and in 1996 
 98.16  on nonhomestead, single- and two-family rental properties 
 98.17  existing on the effective date. 
 98.18     Sec. 39.  [CITY OF ROSEVILLE; ESTABLISHMENT OF SPECIAL 
 98.19  SERVICE DISTRICTS.] 
 98.20     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
 98.21  section, the terms defined have the meanings given them. 
 98.22     (b) "City" means the city of Roseville. 
 98.23     (c) "Special services" means: 
 98.24     (1) all services rendered or contracted for by the city, 
 98.25  including the repair, maintenance, operation, and construction 
 98.26  of any improvement authorized by Minnesota Statutes, section 
 98.27  429.021; 
 98.28     (2) maintenance of landscape and streetscape improvements 
 98.29  installed by the city; and 
 98.30     (3) any other service provided to the public by the city as 
 98.31  authorized by law or charter. 
 98.32     Subd. 2.  [ESTABLISHMENT OF DISTRICTS.] The governing body 
 98.33  of the city of Roseville may adopt ordinances establishing 
 98.34  special service districts.  The provisions of Minnesota 
 98.35  Statutes, chapter 428A, govern the establishment and operation 
 98.36  of special service districts in the city. 
 99.1      Subd. 3.  [EFFECTIVE DATE.] This section is effective the 
 99.2   day following final enactment, after the governing body of the 
 99.3   city of Roseville complies with Minnesota Statutes, section 
 99.4   645.021, subdivision 3. 
 99.5      Sec. 40.  [TAX-EXEMPT PROPERTY; EXCEPTION TO TIME 
 99.6   REQUIREMENT.] 
 99.7      Subdivision 1.  [EXCEPTION TO TIME REQUIREMENT.] 
 99.8   Notwithstanding the time requirements of Minnesota Statutes, 
 99.9   section 272.02, subdivision 4, paragraph (b), for taxes levied 
 99.10  in 1991, payable in 1992, the governing body of a county that 
 99.11  has a population exceeding 700,000 according to the most recent 
 99.12  federal decennial census may grant a property tax exemption for 
 99.13  property that (1) meets the requirements of exempt property 
 99.14  under Minnesota Statutes, section 272.02, subdivision 4, 
 99.15  paragraph (b), except for the July 1 date; (2) was an athletic 
 99.16  facility classified as class 3 commercial and industrial 
 99.17  property on January 2, 1991; and (3) was acquired during 1991 by 
 99.18  a church.  
 99.19     Subd. 2.  [EFFECTIVE DATE.] Subdivision 1 is effective the 
 99.20  day following final enactment, and applies to property taxes 
 99.21  levied in 1991, payable in 1992, only. 
 99.22     Sec. 41.  [CITY OF ST. LOUIS PARK; ESTABLISHMENT OF SPECIAL 
 99.23  SERVICE DISTRICTS.] 
 99.24     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 99.25  section, the terms defined have the meanings given them. 
 99.26     (b) "City" means the city of St. Louis Park. 
 99.27     (c) "Special services" means: 
 99.28     (1) all services rendered or contracted for by the city, 
 99.29  including the repair, maintenance, operation, and construction 
 99.30  of any improvement authorized by Minnesota Statutes, section 
 99.31  429.021; 
 99.32     (2) maintenance of landscape and streetscape improvements 
 99.33  installed by the city; and 
 99.34     (3) any other service provided to the public by the city as 
 99.35  authorized by law or charter. 
 99.36     Subd. 2.  [ESTABLISHMENT OF DISTRICTS.] The governing body