1.1 	A bill for an act
1.2 	relating to property taxation; fixing the shares of
1.3 	the state general levy paid by noncommercial seasonal
1.4 	recreational property and commercial-industrial
1.5 	property; amending Minnesota Statutes 2004, section
1.6 	275.025, subdivisions 2, 3, 4.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 275.025,
1.9 	subdivision 2, is amended to read:
1.10 		Subd. 2.Commercial-industrial tax capacity.  For the
1.11 	purposes of this section, "commercial-industrial tax capacity"
1.12 	means the tax capacity of all taxable property classified as
1.13 	class 3, commercial class 4c(1),or class 5(1) under section
1.14 	273.13, except for electric generation attached machinery under
1.15 	class 3 and property described in section 473.625.  County
1.16 	commercial-industrial tax capacity amounts are not adjusted for
1.17 	the captured net tax capacity of a tax increment financing
1.18 	district under section 469.177, subdivision 2, the net tax
1.19 	capacity of transmission lines deducted from a local
1.20 	government's total net tax capacity under section 273.425, or
1.21 	fiscal disparities contribution and distribution net tax
1.22 	capacities under chapter 276A or 473F.
1.23 	
EFFECTIVE DATE. This section is effective for taxes
1.24 	payable in 2006 and thereafter.

1.25 	Sec. 2. Minnesota Statutes 2004, section 275.025,
1.26 	subdivision 3, is amended to read:
2.1 		Subd. 3.noncommercial seasonal residential recreational
2.2 	tax capacity.  For the purposes of this section, " noncommercial 
2.3 	seasonal residential recreational tax capacity" means the tax
2.4 	capacity of all noncommercial class 4c(1) property under section
2.5 	273.13, subdivision 25, except that the first $76,000 of market
2.6 	value of each noncommercial class 4c(1) property has a tax
2.7 	capacity for this purpose equal to 40 percent of its tax
2.8 	capacity under section 273.13.
2.9 	
EFFECTIVE DATE. This section is effective for taxes
2.10 	payable in 2006 and thereafter.

2.11 	Sec. 3. Minnesota Statutes 2004, section 275.025,
2.12 	subdivision 4, is amended to read:
2.13 		Subd. 4.Apportionment and levy of state general tax.
 2.14 	95.4 percent of the state general tax must be distributed among
2.15 	the counties levied by applying a uniform rate to each county's 
2.16 	all commercial-industrial tax capacity and its 4.6 percent of
2.17 	the state general tax must be levied by applying a uniform rate
2.18 	to all noncommercial seasonal residential recreational tax
2.19 	capacity. Within each county, the tax must be levied by
2.20 	applying a uniform rate against commercial-industrial tax
2.21 	capacity and seasonal residential recreational tax capacity.On
2.22 	or before October 1 each year, the commissioner of revenue shall
2.23 	certify a the preliminary state general levy rate rates to each
2.24 	county auditor that must be used to prepare the notices of
2.25 	proposed property taxes for taxes payable in the following
2.26 	year.  By January 1 of each year, the commissioner shall certify
2.27 	the final state general levy rate to each county auditor that
2.28 	shall be used in spreading taxes.
2.29 	
EFFECTIVE DATE. This section is effective for taxes
2.30 	payable in 2006 and thereafter.