1.1                          A bill for an act 
  1.2             relating to taxation; reducing the threshold for 
  1.3             implementation of limited market value treatment; 
  1.4             making the provision permanent; amending Minnesota 
  1.5             Statutes 1996, section 273.11, subdivision 1a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 273.11, 
  1.8   subdivision 1a, is amended to read: 
  1.9      Subd. 1a.  [LIMITED MARKET VALUE.] In the case of all 
  1.10  property classified as agricultural homestead or nonhomestead, 
  1.11  residential homestead or nonhomestead, or noncommercial seasonal 
  1.12  recreational residential, the assessor shall compare the value 
  1.13  with that determined in the preceding assessment.  The amount of 
  1.14  the increase entered in the current assessment shall not exceed 
  1.15  the greater of (1) ten percent of the value in the preceding 
  1.16  assessment, or (2) one-third of the difference between the 
  1.17  current assessment and the preceding assessment an amount equal 
  1.18  to the value determined for the preceding assessment year, 
  1.19  multiplied by the rate of increase in the consumer price index 
  1.20  for all urban consumers as determined by the United States 
  1.21  Bureau of Labor Statistics.  This limitation shall not apply to 
  1.22  increases in value due to improvements.  For purposes of this 
  1.23  subdivision, the term "assessment" means the value prior to any 
  1.24  exclusion under subdivision 16. 
  1.25     The provisions of this subdivision shall be in effect only 
  2.1   for assessment years 1993 through 1997. 
  2.2      For purposes of the assessment/sales ratio study conducted 
  2.3   under section 124.2131, and the computation of state aids paid 
  2.4   under chapters 124, 124A, and 477A, market values and net tax 
  2.5   capacities determined under this subdivision and subdivision 16, 
  2.6   shall be used. 
  2.7      Sec. 2.  [EFFECTIVE DATE.] 
  2.8      Section 1 is effective for taxes levied in 1997, payable in 
  2.9   1998, and thereafter.