HF 1222

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

1.1A bill for an act 1.2relating to taxation; providing for homestead credit state refund; providing for 1.3aids to local governments; providing city foreclosure grants; changing and 1.4providing property tax exemptions and credits; modifying green acre eligibility 1.5requirements; providing for senior citizen and seasonal recreational property 1.6tax deferral programs; modifying transit taxing district; modifying levies, 1.7property valuation procedures, homestead provisions, property tax classes, 1.8and class rates; modifying, extending, and authorizing certain tax increment 1.9financing districts; authorizing and modifying local sales taxes; requiring 1.10studies; providing appointments; appropriating money;amending Minnesota 1.11Statutes 2006, sections 216B.1646; 270C.85, subdivision 2; 272.02, by adding 1.12subdivisions; 273.11, subdivisions 1, 1a, by adding subdivisions; 273.111, 1.13subdivisions 3, as amended, 4, 8, 9, 11, 11a, by adding a subdivision; 273.121, as 1.14amended; 273.124, subdivision 1; 273.13, subdivisions 23, as amended, 24, 25, 1.15as amended; 273.1384, subdivision 1; 274.14; 275.065, subdivisions 1c, 6, 8, 9, 1.1610, by adding subdivisions; 276.04, subdivision 2, as amended; 282.08; 290.01, 1.17subdivision 19a, as amended; 290A.03, subdivision 13; 290A.04, subdivisions 1.182h, 3, 4, by adding a subdivision; 290B.03, subdivision 1; 290B.04, subdivisions 1.193, 4; 290B.05, subdivision 1; 290B.07; 297A.99, subdivision 1, as amended; 1.20469.1813, subdivision 8; 473.446, subdivisions 2, 8; 477A.011, subdivisions 34, 1.2136, as amended, by adding subdivisions; 477A.0124, subdivision 5; 477A.013, 1.22subdivisions 1, 8, as amended, 9, as amended; 477A.03; Minnesota Statutes 2007 1.23Supplement, sections 273.124, subdivision 14; 273.1393; 275.065, subdivisions 1.241, 1a, 3; Laws 2008, chapter 154, article 2, section 11; proposing coding for 1.25new law in Minnesota Statutes, chapter 273; proposing coding for new law as 1.26Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2006, sections 1.27273.111, subdivision 6; 290A.04, subdivisions 2, 2b; 473.4461. 1.28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.29ARTICLE 1 1.30HOMESTEAD CREDIT STATE REFUND 1.31    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to 1.32read: 2.1    Subdivision 1. Residential homestead market value credit. new text begin (a) new text end Each county 2.2auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead 2.3property within the county equal to 0.4 percent of the first $76,000 of market value 2.4of the property minus .09 percent of the market value in excess of $76,000. The credit 2.5amount may not be less than zero. In the case of an agricultural or resort homestead, only 2.6the market value of the house, garage, and immediately surrounding one acre of land is 2.7eligible in determining the property's homestead credit. In the case of a property that 2.8is classified as part homestead and part nonhomestead, (i) the credit shall apply only 2.9to the homestead portion of the property, but (ii) if a portion of a property is classified 2.10as nonhomestead solely because not all the owners occupy the property, not all the 2.11owners have qualifying relatives occupying the property, or solely because not all the 2.12spouses of owners occupy the property, the credit amount shall be initially computed as 2.13if that nonhomestead portion were also in the homestead class and then prorated to the 2.14owner-occupant's percentage of ownership. For the purpose of this section, when an 2.15owner-occupant's spouse does not occupy the property, the percentage of ownership for 2.16the owner-occupant spouse is one-half of the couple's ownership percentage. 2.17     new text begin (b) For property taxes payable in 2009 and thereafter, the county auditor shall new text end 2.18 new text begin determine the amount of the homestead credit under paragraph (a) and this paragraph. new text end 2.19 new text begin The county auditor shall report the amount of the credit to the taxpayer on the property new text end 2.20 new text begin tax statement or in another manner, as authorized by the commissioner of revenue. The new text end 2.21 new text begin amount of the credit allowed for the property taxes payable year is to be computed as the new text end 2.22 new text begin following percentage of the credit amount under paragraph (a): new text end 2.23     new text begin (1) for property taxes payable in 2009, 100 percent; new text end 2.24     new text begin (2) for property taxes payable in 2010, 60 percent; new text end 2.25     new text begin (3) for property taxes payable in 2011, 45 percent; new text end 2.26     new text begin (4) for property taxes payable in 2012, 30 percent; new text end 2.27     new text begin (5) for property taxes payable in 2013, 15 percent; and new text end 2.28     new text begin (6) for property taxes payable in 2014 or thereafter, no credit is allowed. new text end 2.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for property taxes payable new text end 2.30 new text begin in 2009. new text end 2.31    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, as amended by Laws 2.322008, chapter 154, article 2, section 19, is amended to read: 2.33    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 2.34printing of the tax statements. The commissioner of revenue shall prescribe the form 2.35of the property tax statement and its contents. The statement must contain a tabulated 3.1statement of the dollar amount due to each taxing authority and the amount of the state 3.2tax from the parcel of real property for which a particular tax statement is prepared. The 3.3dollar amounts attributable to the county, the state tax, the voter approved school tax, the 3.4other local school tax, the township or municipality, and the total of the metropolitan 3.5special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must 3.6be separately stated. The amounts due all other special taxing districts, if any, may be 3.7aggregated except that any levies made by the regional rail authorities in the county of 3.8Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 3.9shall be listed on a separate line directly under the appropriate county's levy. If the county 3.10levy under this paragraph includes an amount for a lake improvement district as defined 3.11under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 3.12separately stated from the remaining county levy amount. In the case of Ramsey County, 3.13if the county levy under this paragraph includes an amount for public library service 3.14under section 134.07, the amount attributable for that purpose may be separated from the 3.15remaining county levy amount. The amount of the tax on homesteads qualifying under the 3.16senior citizens' property tax deferral program under chapter 290B is the total amount of 3.17property tax before subtraction of the deferred property tax amount. The amount of the 3.18tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 3.19be separately stated. The dollar amounts, including the dollar amount of any special 3.20assessments, may be rounded to the nearest even whole dollar. For purposes of this section 3.21whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 3.22The amount of market value excluded under section 273.11, subdivision 16, if any, must 3.23also be listed on the tax statement. 3.24    (b) The property tax statements for manufactured homes and sectional structures 3.25taxed as personal property shall contain the same information that is required on the 3.26tax statements for real property. 3.27    (c) Real and personal property tax statements must contain the following information 3.28in the order given in this paragraph. The information must contain the current year tax 3.29information in the right column with the corresponding information for the previous year 3.30in a column on the left: 3.31    (1) the property's estimated market value under section 273.11, subdivision 1; 3.32    (2) the property's taxable market value after reductions under section 273.11, 3.33subdivisions 1a and 16 ; 3.34    (3) the property's gross tax, before credits; new text begin any items required by the commissioner new text end 3.35 new text begin of revenue under section 273.1384, subdivision 1, paragraph (b); and new text end 4.1    (4) for homestead residential and agricultural properties, the credits under section 4.2; 4.3    (5) any credits received under sections ; ; ; ; 4.4273.1398, subdivision 4; ; and , except that the amount of credit received 4.5under section must be separately stated and identified as "taconite tax relief"; and 4.6    (6) new text begin (4) new text end the net tax payable in the manner required in paragraph (a). 4.7    (d) If the county uses envelopes for mailing property tax statements and if the county 4.8agrees, a taxing district may include a notice with the property tax statement notifying 4.9taxpayers when the taxing district will begin its budget deliberations for the current 4.10year, and encouraging taxpayers to attend the hearings. If the county allows notices to 4.11be included in the envelope containing the property tax statement, and if more than 4.12one taxing district relative to a given property decides to include a notice with the tax 4.13statement, the county treasurer or auditor must coordinate the process and may combine 4.14the information on a single announcement. 4.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 4.16 new text begin thereafter. new text end 4.17    Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 19a, as amended by Laws 4.182008, chapter 154, article 3, section 2, and Laws 2008, chapter 154, article 4, section 3, 4.19is amended to read: 4.20    Subd. 19a. Additions to federal taxable income. For individuals, estates, and 4.21trusts, there shall be added to federal taxable income: 4.22    (1)(i) interest income on obligations of any state other than Minnesota or a political 4.23or governmental subdivision, municipality, or governmental agency or instrumentality 4.24of any state other than Minnesota exempt from federal income taxes under the Internal 4.25Revenue Code or any other federal statute; and 4.26    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 4.27Code, except the portion of the exempt-interest dividends derived from interest income 4.28on obligations of the state of Minnesota or its political or governmental subdivisions, 4.29municipalities, governmental agencies or instrumentalities, but only if the portion of the 4.30exempt-interest dividends from such Minnesota sources paid to all shareholders represents 4.3195 percent or more of the exempt-interest dividends that are paid by the regulated 4.32investment company as defined in section 851(a) of the Internal Revenue Code, or the 4.33fund of the regulated investment company as defined in section 851(g) of the Internal 4.34Revenue Code, making the payment; and 5.1    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 5.2government described in section 7871(c) of the Internal Revenue Code shall be treated as 5.3interest income on obligations of the state in which the tribe is located; 5.4    (2) the amount of new text begin (i) new text end income or sales and use taxes paid or accrued within the 5.5taxable year under this chapter and the amount of taxes based on net income paid or sales 5.6and use taxes paid to any other state or to any province or territory of Canada, new text begin and (ii) new text end 5.7 new text begin the amount of real and personal property taxes paid or accrued within the taxable year, new text end 5.8to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, 5.9but the addition may not be more than the amount by which the itemized deductions as 5.10allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the 5.11standard deduction as defined in section 63(c) of the Internal Revenue Code. For the 5.12purpose of this paragraph, the disallowance of itemized deductions under section 68 of the 5.13Internal Revenue Code of 1986, income or sales and use tax is the last itemized deduction 5.14disallowed new text begin , real property tax is the second to last itemized deduction disallowed, and new text end 5.15 new text begin personal property tax is the third to last itemized deduction disallowed new text end ; 5.16    (3) the capital gain amount of a lump sum distribution to which the special tax under 5.17section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; 5.18    (4) the amount of income taxes paid or accrued within the taxable year under this 5.19chapter and taxes based on net income paid to any other state or any province or territory 5.20of Canada, to the extent allowed as a deduction in determining federal adjusted gross 5.21income. For the purpose of this paragraph, income taxes do not include the taxes imposed 5.22by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 5.23    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 5.24other than expenses or interest used in computing net interest income for the subtraction 5.25allowed under subdivision 19b, clause (1); 5.26    (6) the amount of a partner's pro rata share of net income which does not flow 5.27through to the partner because the partnership elected to pay the tax on the income under 5.28section 6242(a)(2) of the Internal Revenue Code; 5.29    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the 5.30Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 5.31in the taxable year generates a deduction for depreciation under section 168(k) and the 5.32activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 5.33the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 5.34limited to excess of the depreciation claimed by the activity under section 168(k) over the 5.35amount of the loss from the activity that is not allowed in the taxable year. In succeeding 6.1taxable years when the losses not allowed in the taxable year are allowed, the depreciation 6.2under section 168(k) is allowed; 6.3    (8) 80 percent of the amount by which the deduction allowed by section 179 of the 6.4Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 6.5Revenue Code of 1986, as amended through December 31, 2003; 6.6    (9) to the extent deducted in computing federal taxable income, the amount of the 6.7deduction allowable under section 199 of the Internal Revenue Code; 6.8    (10) the exclusion allowed under section 139A of the Internal Revenue Code for 6.9federal subsidies for prescription drug plans; 6.10    (11) the amount of expenses disallowed under section 290.10, subdivision 2; 6.11    (12) for taxable years beginning after December 31, 2006, and before January 1, 6.122008, the amount deducted for qualified tuition and related expenses under section 222 of 6.13the Internal Revenue Code, to the extent deducted from gross income; and 6.14    (13) for taxable years beginning after December 31, 2006, and before January 1, 6.152008, the amount deducted for certain expenses of elementary and secondary school 6.16teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted 6.17from gross income. 6.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 6.19 new text begin December 31, 2008. new text end 6.20    Sec. 4. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read: 6.21    Subd. 13. Property taxes payable. "Property taxes payable" means the property 6.22tax exclusive of special assessments, penalties, and interest payable on a claimant's 6.23homestead after deductions made under sections 273.135, , 273.1391, 273.42, 6.24subdivision 2 , and any other state paid property tax credits in any calendar year, and 6.25after any refund claimed and allowable under section 290A.04, subdivision 2h, that is 6.26first payable in the year that the property tax is payable. new text begin Beginning for property taxes new text end 6.27 new text begin payable in 2009, the amount of the credit under section 273.1384, subdivision 1, must new text end 6.28 new text begin not be deducted in computing property taxes payable. new text end In the case of a claimant who 6.29makes ground lease payments, "property taxes payable" includes the amount of the 6.30payments directly attributable to the property taxes assessed against the parcel on which 6.31the house is located. No apportionment or reduction of the "property taxes payable" shall 6.32be required for the use of a portion of the claimant's homestead for a business purpose if 6.33the claimant does not deduct any business depreciation expenses for the use of a portion 6.34of the homestead in the determination of federal adjusted gross income. For homesteads 6.35which are manufactured homes as defined in section 273.125, subdivision 8, and for 7.1homesteads which are park trailers taxed as manufactured homes under section 168.012, 7.2subdivision 9 , "property taxes payable" shall also include 19 percent of the gross rent paid 7.3in the preceding year for the site on which the homestead is located. When a homestead 7.4is owned by two or more persons as joint tenants or tenants in common, such tenants 7.5shall determine between them which tenant may claim the property taxes payable on the 7.6homestead. If they are unable to agree, the matter shall be referred to the commissioner of 7.7revenue whose decision shall be final. Property taxes are considered payable in the year 7.8prescribed by law for payment of the taxes. 7.9    In the case of a claim relating to "property taxes payable," the claimant must have 7.10owned and occupied the homestead on January 2 of the year in which the tax is payable 7.11and (i) the property must have been classified as homestead property pursuant to section 7.12273.124 , on or before December 15 of the assessment year to which the "property taxes 7.13payable" relate; or (ii) the claimant must provide documentation from the local assessor 7.14that application for homestead classification has been made on or before December 15 7.15of the year in which the "property taxes payable" were payable and that the assessor has 7.16approved the application. 7.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for refund claims based on new text end 7.18 new text begin property taxes payable in 2009. new text end 7.19    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read: 7.20    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a 7.21homestead increase more than 12 percent over the property taxes payable in the prior year 7.22on the same property that is owned and occupied by the same owner on January 2 of both 7.23years, and the amount of that increase is $100 or more, a claimant who is a homeowner 7.24shall be allowed an additional refund equal to 60 percent of the amount of the increase 7.25over the greater of 12 percent of the prior year's property taxes payable or $100. This 7.26subdivision shall not apply to any increase in the gross property taxes payable attributable 7.27to improvements made to the homestead after the assessment date for the prior year's 7.28taxes. This subdivision shall not apply to any increase in the gross property taxes payable 7.29attributable to the termination of valuation exclusions under section 273.11, subdivision 7.3016 new text begin , or to the reduction in and elimination of the homestead market value credit under new text end 7.31 new text begin section 273.1384, subdivision 1, paragraph (b) new text end . 7.32    The maximum refund allowed under this subdivision is $1,000. 7.33    (b) For purposes of this subdivision "gross property taxes payable" means property 7.34taxes payable determined without regard to the refund allowed under this subdivision. 8.1    (c) In addition to the other proofs required by this chapter, each claimant under 8.2this subdivision shall file with the property tax refund return a copy of the property tax 8.3statement for taxes payable in the preceding year or other documents required by the 8.4commissioner. 8.5    (d) Upon request, the appropriate county official shall make available the names and 8.6addresses of the property taxpayers who may be eligible for the additional property tax 8.7refund under this section. The information shall be provided on a magnetic computer 8.8disk. The county may recover its costs by charging the person requesting the information 8.9the reasonable cost for preparing the data. The information may not be used for any 8.10purpose other than for notifying the homeowner of potential eligibility and assisting the 8.11homeowner, without charge, in preparing a refund claim. 8.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims based on property taxes new text end 8.13 new text begin payable in 2009 and thereafter. new text end 8.14    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision 8.15to read: 8.16     new text begin Subd. 2k. new text end new text begin Homestead credit state refund. new text end new text begin (a) A claimant who is a homeowner new text end 8.17 new text begin is entitled to a state refund of the amount of the property taxes payable in excess of two new text end 8.18 new text begin percent of the claimant's household income, based on the percentage and maximum for the new text end 8.19 new text begin appropriate household income level shown below. The refund amount determined from the new text end 8.20 new text begin table must be reduced further by the amount of the homestead market value credit under new text end 8.21 new text begin section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero. new text end 8.22 new text begin Household Income new text end new text begin Refund Percentage new text end new text begin Maximum State Refund new text end 8.23 new text begin 0 to $5,399 new text end new text begin 90 percent new text end new text begin $2,500 new text end 8.24 new text begin 5,400 to 18,899 new text end new text begin 85 percent new text end new text begin 2,500 new text end 8.25 new text begin 18,900 to 26,999 new text end new text begin 80 percent new text end new text begin 2,500 new text end 8.26 new text begin 27,000 to 32,399 new text end new text begin 70 percent new text end new text begin 2,500 new text end 8.27 new text begin 32,400 to 37,799 new text end new text begin 65 percent new text end new text begin 2,500 new text end 8.28 new text begin 37,800 to 45,899 new text end new text begin 60 percent new text end new text begin 2,500 new text end 8.29 new text begin 45,900 to 64,699 new text end new text begin 55 percent new text end new text begin 2,500 new text end 8.30 new text begin 64,700 to 80,899 new text end new text begin 50 percent new text end new text begin 2,300 new text end 8.31 new text begin 80,900 to 94,399 new text end new text begin 45 percent new text end new text begin 2,100 new text end 8.32 new text begin 94,400 to 99,299 new text end new text begin 40 percent new text end new text begin 1,900 new text end 8.33 new text begin 99,300 to 104,099 new text end new text begin 35 percent new text end new text begin 1,700 new text end 8.34 new text begin 104,100 to 115,599 new text end new text begin 30 percent new text end new text begin 1,500 new text end 8.35 new text begin 115,600 to 127,199 new text end new text begin 25 percent new text end new text begin 1,250 new text end 8.36 new text begin 127,200 to 134,099 new text end new text begin 25 percent new text end new text begin 1,000 new text end 8.37 new text begin 134,100 to 138,799 new text end new text begin 25 percent new text end new text begin 750 new text end 9.1 new text begin 138,800 to 144,399 new text end new text begin 25 percent new text end new text begin 500 new text end 9.2 new text begin 144,400 to 200,000 new text end new text begin 25 percent new text end new text begin 250 new text end 9.3     new text begin (b) No payment is allowed under paragraph (a) if the claimant's household income new text end 9.4 new text begin is more than $200,000. new text end 9.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for claims based on new text end 9.6 new text begin property taxes payable in 2009. new text end 9.7    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read: 9.8    Subd. 3. Table. The commissioner of revenue shall construct and make available 9.9to taxpayers a comprehensive table showing the property taxes to be paid and refund 9.10allowed at various levels of income and assessment. The table shall follow the schedule 9.11of income percentages, maximums and other provisions specified in subdivision 2 new text begin this new text end 9.12 new text begin section new text end , except that the commissioner may graduate the transition between income 9.13brackets. All refunds shall be computed in accordance with tables prepared and issued 9.14by the commissioner of revenue. 9.15    The commissioner shall include on the form an appropriate space or method for the 9.16claimant to identify if the property taxes paid are for a manufactured home, as defined in 9.17section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured 9.18home under section 168.012, subdivision 9. 9.19    Sec. 8. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read: 9.20    Subd. 4. Inflation adjustment. new text begin (a) new text end Beginning for property tax refunds payable in 9.21calendar year 2002 new text begin 2010 new text end , the commissioner shall annually adjust the dollar amounts of the 9.22income thresholds and the maximum refunds under subdivisions 2 and 2a new text begin subdivision 2k new text end 9.23for inflation. The commissioner shall make the inflation adjustments in accordance with 9.24section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision 9.25the percentage increase shall be determined from the year ending on June 30, 2000 new text begin 2008 new text end , 9.26to the year ending on June 30 of the year preceding that in which the refund is payable. 9.27The commissioner shall use the appropriate percentage increase to annually adjust the 9.28income thresholds and maximum refunds under subdivisions 2 and 2a new text begin subdivision 2k new text end for 9.29inflation without regard to whether or not the income tax brackets are adjusted for inflation 9.30in that year. The commissioner shall round the thresholds and the maximum amounts, 9.31as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall 9.32round it up to the next $10 amount. 10.1    The commissioner shall annually announce the adjusted refund schedule at the same 10.2time provided under section 290.06. The determination of the commissioner under this 10.3subdivision is not a rule under the Administrative Procedure Act. 10.4     new text begin (b) Beginning for property tax refunds payable in calendar year 2002, the new text end 10.5 new text begin commissioner shall annually adjust the dollar amounts of the income thresholds and new text end 10.6 new text begin the maximum refunds under subdivision 2a for inflation. The commissioner shall make new text end 10.7 new text begin the inflation adjustments in accordance with section 1(f) of the Internal Revenue Code, new text end 10.8 new text begin except that for purposes of this subdivision the percentage increase shall be determined new text end 10.9 new text begin from the year ending on June 30, 2000, to the year ending on June 30 of the year new text end 10.10 new text begin preceding that in which the refund is payable. The commissioner shall use the appropriate new text end 10.11 new text begin percentage increase to annually adjust the income thresholds and maximum refunds under new text end 10.12 new text begin subdivision 2a for inflation without regard to whether or not the income tax brackets are new text end 10.13 new text begin adjusted for inflation in that year. The commissioner shall round the thresholds and the new text end 10.14 new text begin maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the new text end 10.15 new text begin commissioner shall round it up to the next $10 amount. The commissioner shall annually new text end 10.16 new text begin announce the adjusted refund schedule at the same time provided under section 290.06. new text end 10.17 new text begin The determination of the commissioner under this subdivision is not a rule under the new text end 10.18 new text begin Administrative Procedure Act. new text end 10.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for claims based on new text end 10.20 new text begin property taxes payable in 2010. new text end 10.21    Sec. 9. new text begin REPEALER. new text end 10.22 new text begin Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, new text end new text begin are repealed. new text end 10.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims based on property taxes new text end 10.24 new text begin payable in 2009 and thereafter. new text end 10.25ARTICLE 2 10.26AIDS AND CREDITS 10.27    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to 10.28read: 10.29    Subd. 34. City revenue need. (a) For a city with a population equal to or greater 10.30than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing 10.31percentage; plus (2) 19.141678 times the population decline percentage; plus (3) 10.322504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan 10.33area factor; minus (6) 49.10638 times the household size. 11.1    (b) For a city with a population less than 2,500, "city revenue need" is the sum of 11.2(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 11.3industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 11.41.206 times the transformed population; minus (5) 62.772. 11.5    (c) For a city with a population of 2,500 or more and a population in one of the most 11.6recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 11.7its city revenue need calculated under paragraph (a) multiplied by its transition factor; 11.8plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 11.9by the difference between one and its transition factor. For purposes of this paragraph, a 11.10city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 11.11population estimate has been 2,500 or more. This provision only applies for aids payable 11.12in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 11.13applies to any city for aids payable in 2009 and thereafter. new text begin The city revenue need under new text end 11.14 new text begin this paragraph may not be less than 290. new text end 11.15    (d) The city revenue need cannot be less than zero. 11.16     new text begin (e) For aids certified in 2010 and subsequent years, the city revenue need is equal new text end 11.17 new text begin to the average of (1) the city's revenue need calculated under paragraphs (a) to (d) new text end 11.18 new text begin based on data available by January 1 in the year the aid is certified, and (2) its revenue new text end 11.19 new text begin need calculated under paragraphs (a) to (d) based on data available by January 1 in the new text end 11.20 new text begin previous year. new text end 11.21    (e) new text begin (f) new text end For calendar year 2005 and subsequent years, the city revenue need for a city, 11.22as determined in paragraphs (a) to (d) new text begin (e) new text end , is multiplied by the ratio of the annual implicit 11.23price deflator for government consumption expenditures and gross investment for state 11.24and local governments as prepared by the United States Department of Commerce, for 11.25the most recently available year to the 2003 implicit price deflator for state and local 11.26government purchases. 11.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 11.28 new text begin 2010 and thereafter. new text end 11.29    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, as amended by 11.30Laws 2008, chapter 154, article 1, section 1, is amended to read: 11.31    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, 11.32"city aid base" is zero. 11.33    (b) The city aid base for any city with a population less than 500 is increased by 11.34$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 12.1of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 12.2increased by $40,000 for aids payable in calendar year 1995 only, provided that: 12.3    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; 12.4    (ii) the city portion of the tax capacity rate exceeds 100 percent; and 12.5    (iii) its city aid base is less than $60 per capita. 12.6    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 12.7the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 12.8paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: 12.9    (i) the city has a population in 1994 of 2,500 or more; 12.10    (ii) the city is located in a county, outside of the metropolitan area, which contains a 12.11city of the first class; 12.12    (iii) the city's net tax capacity used in calculating its 1996 aid under section 12.13477A.013 is less than $400 per capita; and 12.14    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 12.15property located in the city is classified as railroad property. 12.16    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 12.17the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 12.18paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: 12.19    (i) the city was incorporated as a statutory city after December 1, 1993; 12.20    (ii) its city aid base does not exceed $5,600; and 12.21    (iii) the city had a population in 1996 of 5,000 or more. 12.22    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the 12.23maximum amount of total aid it may receive under section 477A.013, subdivision 9, 12.24paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that: 12.25    (i) the city had a population in 1996 of at least 50,000; 12.26    (ii) its population had increased by at least 40 percent in the ten-year period ending 12.27in 1996; and 12.28    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita. 12.29    (f) new text begin (e) new text end The city aid base for a city is increased by $150,000 for aids payable in 12.302000 and thereafter, and the maximum amount of total aid it may receive under section 12.31477A.013, subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 12.322000 only, provided that: 12.33    (1) the city has a population that is greater than 1,000 and less than 2,500; 12.34    (2) its commercial and industrial percentage for aids payable in 1999 is greater 12.35than 45 percent; and 13.1    (3) the total market value of all commercial and industrial property in the city 13.2for assessment year 1999 is at least 15 percent less than the total market value of all 13.3commercial and industrial property in the city for assessment year 1998. 13.4    (g) new text begin (f) new text end The city aid base for a city is increased by $200,000 in 2000 and thereafter, 13.5and the maximum amount of total aid it may receive under section 477A.013, subdivision 13.69 , paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: 13.7    (1) the city had a population in 1997 of 2,500 or more; 13.8    (2) the net tax capacity of the city used in calculating its 1999 aid under section 13.9477A.013 is less than $650 per capita; 13.10    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 13.11section 477A.013 is greater than 12 percent; 13.12    (4) the 1999 local government aid of the city under section 477A.013 is less than 13.1320 percent of the amount that the formula aid of the city would have been if the need 13.14increase percentage was 100 percent; and 13.15    (5) the city aid base of the city used in calculating aid under section 477A.013 13.16is less than $7 per capita. 13.17    (h) new text begin (g) new text end The city aid base for a city is increased by $102,000 in 2000 and thereafter, 13.18and the maximum amount of total aid it may receive under section 477A.013, subdivision 13.199 , paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: 13.20    (1) the city has a population in 1997 of 2,000 or more; 13.21    (2) the net tax capacity of the city used in calculating its 1999 aid under section 13.22477A.013 is less than $455 per capita; 13.23    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 13.24greater than $195 per capita; and 13.25    (4) the 1999 local government aid of the city under section 477A.013 is less than 13.2638 percent of the amount that the formula aid of the city would have been if the need 13.27increase percentage was 100 percent. 13.28    (i) new text begin (h) new text end The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 13.29the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 13.30paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: 13.31    (1) the city has a population in 1998 that is greater than 200 but less than 500; 13.32    (2) the city's revenue need used in calculating aids payable in 2000 was greater 13.33than $200 per capita; 13.34    (3) the city net tax capacity for the city used in calculating aids available in 2000 13.35was equal to or less than $200 per capita; 14.1    (4) the city aid base of the city used in calculating aid under section 477A.013 14.2is less than $65 per capita; and 14.3    (5) the city's formula aid for aids payable in 2000 was greater than zero. 14.4    (j) new text begin (i) new text end The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 14.5the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 14.6paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: 14.7    (1) the city had a population in 1998 that is greater than 200 but less than 500; 14.8    (2) the city's commercial industrial percentage used in calculating aids payable in 14.92000 was less than ten percent; 14.10    (3) more than 25 percent of the city's population was 60 years old or older according 14.11to the 1990 census; 14.12    (4) the city aid base of the city used in calculating aid under section 477A.013 14.13is less than $15 per capita; and 14.14    (5) the city's formula aid for aids payable in 2000 was greater than zero. 14.15    (k) new text begin (j) new text end The city aid base for a city is increased by $45,000 in 2001 and thereafter 14.16and by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount 14.17of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 14.18increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 14.19only, provided that: 14.20    (1) the net tax capacity of the city used in calculating its 2000 aid under section 14.21477A.013 is less than $810 per capita; 14.22    (2) the population of the city declined more than two percent between 1988 and 1998; 14.23    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 14.24greater than $240 per capita; and 14.25    (4) the city received less than $36 per capita in aid under section 477A.013, 14.26subdivision 9 , for aids payable in 2000. 14.27    (l) new text begin (k) new text end The city aid base for a city with a population of 10,000 or more which is 14.28located outside of the seven-county metropolitan area is increased in 2002 and thereafter, 14.29and the maximum amount of total aid it may receive under section 477A.013, subdivision 14.309 , paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 14.31the lesser of: 14.32    (1)(i) the total population of the city, as determined by the United States Bureau of 14.33the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or 14.34    (2) $2,500,000. 15.1    (m) new text begin (l) new text end The city aid base is increased by $50,000 in 2002 and thereafter, and the 15.2maximum amount of total aid it may receive under section 477A.013, subdivision 9, 15.3paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: 15.4    (1) the city is located in the seven-county metropolitan area; 15.5    (2) its population in 2000 is between 10,000 and 20,000; and 15.6    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, 15.7was greater than 25 percent. 15.8    (n) new text begin (m) new text end The city aid base for a city is increased by $150,000 in calendar years 2002 15.9to 2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum 15.10amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 15.11also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year 15.122009 only, provided that: 15.13    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; 15.14    (2) its home county is located within the seven-county metropolitan area; 15.15    (3) its pre-1940 housing percentage is less than 15 percent; and 15.16    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 15.17per capita. 15.18    (o) new text begin (n) new text end The city aid base for a city is increased by $200,000 beginning in calendar 15.19year 2003 and the maximum amount of total aid it may receive under section 477A.013, 15.20subdivision 9 , paragraph (c), is also increased by $200,000 in calendar year 2003 only, 15.21provided that the city qualified for an increase in homestead and agricultural credit aid 15.22under Laws 1995, chapter 264, article 8, section 18. 15.23    (p) new text begin (o) new text end The city aid base for a city is increased by $200,000 in 2004 only and the 15.24maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 15.25also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 15.26dry cask storage facility. 15.27    (q) new text begin (p) new text end The city aid base for a city is increased by $10,000 in 2004 and thereafter 15.28and the maximum total aid it may receive under section 477A.013, subdivision 9, is also 15.29increased by $10,000 in calendar year 2004 only, if the city was included in a federal 15.30major disaster designation issued on April 1, 1998, and its pre-1940 housing stock was 15.31decreased by more than 40 percent between 1990 and 2000. 15.32    (r) new text begin (q) new text end The city aid base for a city is increased by $30,000 in 2009 and thereafter 15.33and the maximum total aid it may receive under section 477A.013, subdivision 9, is also 15.34increased by $25,000 in calendar year 2006 only if the city had a population in 2003 15.35of at least 1,000 and has a state park for which the city provides rescue services and 16.1which comprised at least 14 percent of the total geographic area included within the 16.2city boundaries in 2000. 16.3    (s) The city aid base for a city with a population less than 5,000 is increased in 16.42006 and thereafter and the minimum and maximum amount of total aid it may receive 16.5under this section is also increased in calendar year 2006 only by an amount equal to 16.6$6 multiplied by its population. 16.7    (t) new text begin (r) new text end The city aid base for a city is increased by $80,000 in 2009 and thereafter and 16.8the minimum and maximum amount of total aid it may receive under section 477A.013, 16.9subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: 16.10    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 16.11to be placed in trust status as tax-exempt Indian land; 16.12    (2) the placement of the land is being challenged administratively or in court; and 16.13    (3) due to the challenge, the land proposed to be placed in trust is still on the tax 16.14rolls as of May 1, 2006. 16.15    (u) new text begin (s) new text end The city aid base for a city is increased by $100,000 in 2007 and thereafter 16.16and the minimum and maximum total amount of aid it may receive under this section is 16.17also increased in calendar year 2007 only, provided that: 16.18    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; 16.19    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; 16.20    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 16.21payable in 2006 was greater than 110 percent; and 16.22    (4) it is located in a county where at least 15,000 acres of land are classified as 16.23tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. 16.24    (v) new text begin (t) new text end The city aid base for a city is increased by $30,000 in 2009 only, and the 16.25maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 16.26by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than 16.273,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities 16.28and one township in 2002. 16.29     new text begin (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and new text end 16.30 new text begin the maximum total aid it may receive under section new text end new text begin 477A.013, subdivision 9 new text end new text begin , is also new text end 16.31 new text begin increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for new text end 16.32 new text begin aids payable in 2007 of less than $150 per capita and the city experienced flooding on new text end 16.33 new text begin March 14, 2007, that resulted in evacuation of at least 40 homes. new text end 16.34     new text begin (v) The city aid base for a city is increased by $200,000 in 2009 to 2013, and the new text end 16.35 new text begin maximum total aid it may receive under section new text end new text begin 477A.013, subdivision 9 new text end new text begin , is also increased new text end 16.36 new text begin by $200,000 in calendar year 2009 only, if the city: new text end 17.1     new text begin (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical new text end 17.2 new text begin area; new text end 17.3     new text begin (2) has a 2005 population greater than 7,000 but less than 8,000; and new text end 17.4     new text begin (3) has a 2005 net tax capacity per capita of less than $500. new text end 17.5     new text begin (w) The city aid base is increased by $80,000 in calendar years 2009 to 2018 and the new text end 17.6 new text begin maximum amount of total aid it may receive under section 477A.013, subdivision 9, is new text end 17.7 new text begin increased by $80,000 in calendar year 2009 only, provided that: new text end 17.8     new text begin (1) the city is located in the seven-county metropolitan area; new text end 17.9     new text begin (2) its population in 2006 is less than 200; and new text end 17.10     new text begin (3) the percentage of its housing stock built before 1940, according to the 2000 new text end 17.11 new text begin United States Census, is greater than 40 percent. new text end 17.12     new text begin (x) The city aid base for a city is increased by $100,000 in 2009 and thereafter and new text end 17.13 new text begin the minimum and maximum total amount of aid it may receive under this section is also new text end 17.14 new text begin increased by $100,000 in calendar year 2009 only, provided that: new text end 17.15     new text begin (1) the city is located in the metropolitan area and its 2006 population is less than new text end 17.16 new text begin 2,500; new text end 17.17     new text begin (2) at least 25 percent of its housing was built before 1940 and at least 50 percent of new text end 17.18 new text begin its housing is rental housing, according to the 2000 United States Census; new text end 17.19     new text begin (3) the median household income in the city is 80 percent or less than the median new text end 17.20 new text begin household income in the metropolitan area and 50 percent or less than the median new text end 17.21 new text begin household income for all cities contiguous to that city, according to the 2000 United new text end 17.22 new text begin States Census; and new text end 17.23     new text begin (4) at least 60 percent of the land and water acres in the city are classified as new text end 17.24 new text begin tax-exempt property, according to its 2008 planning document. new text end 17.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 17.26 new text begin 2009 and thereafter. new text end 17.27    Sec. 3. Minnesota Statutes 2006, section 477A.011, is amended by adding a 17.28subdivision to read: 17.29     new text begin Subd. 41. new text end new text begin Small city aid base. new text end new text begin (a) "Small city aid base" for a city with a population new text end 17.30 new text begin less than 5,000 is equal to $8 multiplied by its population. The small city aid base for new text end 17.31 new text begin all other cities is equal to zero. new text end 17.32     new text begin (b) For calendar year 2010 and subsequent years, the small city aid base for a city, new text end 17.33 new text begin as determined in paragraph (a), is multiplied by the ratio of the annual implicit price new text end 17.34 new text begin deflator for government consumption expenditures and gross investment for state and local new text end 17.35 new text begin governments as prepared by the United States Department of Commerce, for the most new text end 18.1 new text begin recently available year to the 2007 implicit price deflator for state and local government new text end 18.2 new text begin purchases. new text end 18.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 18.4 new text begin 2009 and thereafter. new text end 18.5    Sec. 4. Minnesota Statutes 2006, section 477A.011, is amended by adding a 18.6subdivision to read: 18.7     new text begin Subd. 42. new text end new text begin City jobs base. new text end new text begin (a) "City jobs base" for a city with a population of 5,000 new text end 18.8 new text begin or more is equal to the product of (1) $18, (2) the number of jobs per capita in the city, and new text end 18.9 new text begin (3) its population. For cities with a population less than 5,000, the city jobs base is equal new text end 18.10 new text begin to zero. For a city receiving $2,500,000 in aid under section 477A.011, subdivision 36, new text end 18.11 new text begin paragraph (l), its city jobs base is reduced by 25 percent of the amount of aid received new text end 18.12 new text begin under that paragraph. No city's job base may exceed $5,000,000 under this paragraph. new text end 18.13     new text begin (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as new text end 18.14 new text begin determined in paragraph (a), is multiplied by the ratio of the annual implicit price deflator new text end 18.15 new text begin for government consumption expenditures and gross investment for state and local new text end 18.16 new text begin governments as prepared by the United States Department of Commerce, for the most new text end 18.17 new text begin recently available year to the 2007 implicit price deflator for state and local government new text end 18.18 new text begin purchases. new text end 18.19     new text begin (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the new text end 18.20 new text begin average annual number of employees in the city based on the data from the Quarterly new text end 18.21 new text begin Census of Employment and Wages, as reported by the Department of Employment and new text end 18.22 new text begin Economic Development, for the most recent calendar year available as of January 1 of new text end 18.23 new text begin the year in which the aid is calculated, divided by (2) the city's population for the same new text end 18.24 new text begin calendar year as the employment data. new text end 18.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 18.26 new text begin 2009 and thereafter. new text end 18.27    Sec. 5. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read: 18.28    Subd. 5. County transition aid. (a) For 2005, a county is eligible for transition 18.29aid equal to the amount, if any, by which: 18.30    (1) the difference between: 18.31    (i) the aid the county received under subdivision 1 in 2004, divided by the total aid 18.32paid to all counties under subdivision 1, multiplied by $205,000,000; and 19.1    (ii) the amount of aid the county is certified to receive in 2005 under subdivisions 19.23 and 4; 19.3exceeds: 19.4    (2) three percent of the county's adjusted net tax capacity. 19.5A county's aid under this paragraph may not be less than zero. 19.6    (b) In 2006, a county is eligible to receive two-thirds of the transition aid it received 19.7in 2005. 19.8    (c) In 2007, new text begin For 2009 and each year thereafter, new text end a county is eligible to receive 19.9one-third of the transition aid it received in 2005 new text begin 2007 new text end . 19.10    (d) No county shall receive aid under this subdivision after 2007. 19.11     new text begin (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) new text end 19.12 new text begin an average Part I crimes per capita greater than 3.9 percent based on factors used in new text end 19.13 new text begin determining county program aid payable in 2008, shall receive $100,000. new text end 19.14     new text begin (c) For aids payable in 2009, 2010, and 2011 only, $250,000 each year shall be new text end 19.15 new text begin distributed to any county in which (1) the 2006 estimated population exceeds 30,000, and new text end 19.16 new text begin (2) the 2006 percentage of households receiving food stamps exceeds 15 percent, based new text end 19.17 new text begin on data used in computing county program aids for aids payable in 2008 and the 2006 new text end 19.18 new text begin estimated household count according to the state demographer. The aid must be used to new text end 19.19 new text begin meet the county's cost of out-of-home placement programs. new text end 19.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2009 and new text end 19.21 new text begin thereafter. new text end 19.22    Sec. 6. Minnesota Statutes 2006, section 477A.013, subdivision 1, is amended to read: 19.23    Subdivision 1. Towns. In 2002, no new text begin In calendar year 2009 and subsequent years, new text end 19.24 new text begin each organized new text end town is eligible for a distribution under this subdivision new text begin equal to $100 plus new text end 19.25 new text begin the product of the town aid factor multiplied by its population. Each county with one or new text end 19.26 new text begin more unorganized townships shall receive $100 plus the product of the town aid factor new text end 19.27 new text begin multiplied by the total population in all unorganized townships in the county new text end . 19.28     new text begin The "town aid factor" is the same for all towns and must be calculated by the new text end 19.29 new text begin Department of Revenue so that the total aid under this subdivision equals the total amount new text end 19.30 new text begin available for aid under section 477A.03. new text end 19.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 19.32 new text begin 2009 and thereafter. new text end 20.1    Sec. 7. Minnesota Statutes 2006, section 477A.013, subdivision 8, as amended by 20.2Laws 2008, chapter 154, article 1, section 2, is amended to read: 20.3    Subd. 8. City formula aid. In calendar year 2004 new text begin 2009 new text end and subsequent years, the 20.4formula aid for a city is equal to new text begin the sum of (1) its city jobs base, (2) its small city aid base, new text end 20.5 new text begin and (3) new text end the need increase percentage multiplied by the difference between (1) new text begin (i) new text end the 20.6city's revenue need multiplied by its population, and (2) new text begin (ii) new text end the sum of the city's net tax 20.7capacity multiplied by the tax effort rate. 20.8No city may have a formula aid amount less than zero. The need increase percentage 20.9must be the same for all cities. 20.10    The applicable need increase percentage must be calculated by the Department of 20.11Revenue so that the total of the aid under subdivision 9 equals the total amount available 20.12for aid under section 477A.03 after the subtraction under section 477A.014, subdivisions 4 20.13and 5 . new text begin For aids payable in 2009 only, a city's revenue need, population, net tax capacity, new text end 20.14 new text begin and tax effort rate will be based on the data available for calculating these factors for new text end 20.15 new text begin aids payable in 2008. new text end 20.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 20.17 new text begin 2009 and thereafter. new text end 20.18    Sec. 8. Minnesota Statutes 2006, section 477A.013, subdivision 9, as amended by 20.19Laws 2008, chapter 154, article 1, section 3, is amended to read: 20.20    Subd. 9. City aid distribution. (a) In calendar year 2009 new text begin and thereafter new text end , each 20.21city shall receive an aid distribution equal to the sum of (1) the city formula aid under 20.22subdivision 8, new text begin and new text end (2) its city aid base, and (3) one-half of the difference between its total 20.23aid in the previous year under this subdivision and its city aid base in the previous year. 20.24    (b) For aids payable in 2010 and thereafter, each city shall receive an aid distribution 20.25equal to (1) the city aid formula under subdivision 8, (2) its city aid base, and (3) its 20.26formula aid under subdivision 8 in the previous year, prior to any adjustments under 20.27this subdivision new text begin 2009 only, the total aid for any city shall not exceed the sum of (1) 25 new text end 20.28 new text begin percent of the city's net levy for the year prior to the aid distribution, plus (2) its total new text end 20.29 new text begin aid in the previous year. new text end 20.30    (c) For aids payable in 2009 new text begin 2010 new text end and thereafter, the total aid for any city shall 20.31not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid 20.32distribution plus (2) its total aid in the previous year. For aids payable in 2009 and 20.33thereafter, the total aid for any city with a population of 2,500 or more may not be less 21.1than its total aid under this section in the previous year minus the lesser of $15 multiplied 21.2by its population, or ten percent of its net levy in the year prior to the aid distribution. 21.3    (d) For aids payable in 2009 new text begin 2010 new text end and thereafter, the total aid for a city with a 21.4population less than 2,500 must not be less than the amount it was certified to receive in 21.5the previous year minus the lesser of $15 multiplied by its population, or five percent of its 21.62003 certified aid amount. new text begin For aids payable in 2009 only the total aid for a city with a new text end 21.7 new text begin population less than 2,500 must not be less than what it received under this section in the new text end 21.8 new text begin previous year unless its total aid in calendar year 2008 was aid under section 477A.011, new text end 21.9 new text begin subdivision 36, paragraph (s), in which case its minimum aid is zero. new text end 21.10    (e) If a city's net tax capacity used in calculating aid under this section has decreased 21.11in any year by more than 25 percent from its net tax capacity in the previous year due to 21.12property becoming tax-exempt Indian land, the city's maximum allowed aid increase 21.13under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 21.14year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 21.15resulting from the property becoming tax exempt. 21.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 21.17 new text begin 2009 and thereafter. new text end 21.18    Sec. 9. Minnesota Statutes 2006, section 477A.03, is amended to read: 21.19477A.03 APPROPRIATION. 21.20    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed 21.21by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the 21.22commissioner of revenue. 21.23    Subd. 2a. Cities. For aids payable in 2004 new text begin 2009 and thereafter new text end , the total aids new text begin aid new text end paid 21.24under section 477A.013, subdivision 9, are limited to $429,000,000 new text begin is $515,052,000 new text end . For 21.25aids payable in 2005, the total aids paid under section 477A.013, subdivision 9, are limited 21.26to $437,052,000. For aids payable in 2006 and thereafter, the total aids paid under section 21.27477A.013, subdivision 9, is limited to $485,052,000 new text begin 2009 only, an additional $1,000,000 new text end 21.28 new text begin shall be retained by the commissioner and used to make payments under section 10 new text end . 21.29    Subd. 2b. Counties. (a) For aids payable in calendar year 2005 and thereafter, 21.30the total aids paid to counties under section 477A.0124, subdivision 3, are limited to 21.31$100,500,000. new text begin For aids payable in 2009 and thereafter, the total aid payable under section new text end 21.32 new text begin 477A.0124, subdivision 3, is $110,500,000 minus one-half of the total aid amount new text end 21.33 new text begin determined under section 477A.0124, subdivision 5, paragraph (a). new text end Each calendar year, 21.34$500,000 shall be retained by the commissioner of revenue to make reimbursements 22.1to the commissioner of finance for payments made under section 611.27. For calendar 22.2year 2004, the amount shall be in addition to the payments authorized under section 22.3477A.0124, subdivision 1 . For calendar year 2005 and subsequent years, the amount shall 22.4be deducted from the appropriation under this paragraph. The reimbursements shall be to 22.5defray the additional costs associated with court-ordered counsel under section 611.27. 22.6Any retained amounts not used for reimbursement in a year shall be included in the next 22.7distribution of county need aid that is certified to the county auditors for the purpose of 22.8property tax reduction for the next taxes payable year. 22.9    (b) For aids payable in 2005 new text begin 2009 and thereafter new text end , the total aids new text begin aid new text end under section 22.10477A.0124, subdivision 4 , are limited to $105,000,000 new text begin is $115,132,923 minus one-half of new text end 22.11 new text begin the total aid amount determined under section 477A.0124, subdivision 5, paragraph (a) new text end . 22.12For aids payable in 2006 and thereafter, the total aid under section 477A.0124, subdivision 22.134 , is limited to $105,132,923. The commissioner of finance shall bill the commissioner of 22.14revenue for the cost of preparation of local impact notes as required by section 3.987, not 22.15to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner of education 22.16shall bill the commissioner of revenue for the cost of preparation of local impact notes 22.17for school districts as required by section 3.987, not to exceed $7,000 in fiscal year 2004 22.18and thereafter. The commissioner of revenue shall deduct the amounts billed under 22.19this paragraph from the appropriation under this paragraph. The amounts deducted are 22.20appropriated to the commissioner of finance and the commissioner of education for the 22.21preparation of local impact notes. 22.22     new text begin Subd. 2c. new text end new text begin Towns. new text end new text begin For aids payable in 2009 and thereafter, the total aid under section new text end 22.23 new text begin 477A.013, subdivision 1, is $3,000,000. new text end 22.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 22.25 new text begin 2009 and thereafter. new text end 22.26    Sec. 10. new text begin CITY FORECLOSURE GRANTS. new text end 22.27     new text begin For calendar 2009 only, a city with a concentration of foreclosures within the city new text end 22.28 new text begin or within a zip code area of a city in calendar year 2007, may receive a grant under this new text end 22.29 new text begin section. A "concentration of foreclosures" means that the percent of housing in foreclosure new text end 22.30 new text begin within the area is at least 50 percent higher than the average percent of housing in new text end 22.31 new text begin foreclosure in the metropolitan area, as defined in Minnesota Statutes, section 473.121, new text end 22.32 new text begin subdivision 2. The city must apply to the commissioner of revenue by December 30, 2008, new text end 22.33 new text begin on the form prescribed by the commissioner. The grant will be paid with other aids paid new text end 22.34 new text begin in calendar year 2009, as prescribed in section 477A.015. new text end 23.1     new text begin The commissioner of revenue shall consult with the commissioner of the Housing new text end 23.2 new text begin Finance Agency, to develop a form for cities to use when applying for grants under this new text end 23.3 new text begin section and to determine whether applications qualify. The appropriation for the grants new text end 23.4 new text begin under Minnesota Statutes, section 477A.03, shall be divided between successful applicants new text end 23.5 new text begin based on the number of foreclosures in the area meeting the concentration criteria. No city new text end 23.6 new text begin may receive a grant of more than $250,000. All decisions by the commissioner regarding new text end 23.7 new text begin grant qualification and amount shall be final. The grant must be used to fund inspection new text end 23.8 new text begin and public safety costs associated with housing foreclosures. new text end 23.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for grants made in calendar year 2009. new text end 23.10    Sec. 11. new text begin STUDY OF AIDS TO LOCAL GOVERNMENTS. new text end 23.11     new text begin The chairs of the senate and house of representatives committees with jurisdiction new text end 23.12 new text begin over taxes shall each appoint five members to a study group of the tax committees to new text end 23.13 new text begin examine the current system of aids to local governments and make recommendations on new text end 23.14 new text begin improvements to the system. Of the five members appointed by each chair, two must be new text end 23.15 new text begin members of the tax committee, one of whom is a majority party member and one of new text end 23.16 new text begin whom is a minority party member. The remaining members must represent local units of new text end 23.17 new text begin government. The chairs of the divisions of the tax committees having jurisdiction over new text end 23.18 new text begin property taxes shall also be members and shall serve as cochairs of the study group. new text end 23.19 new text begin The study shall include, but not be limited to, consideration of existing disparities in new text end 23.20 new text begin the distribution of local government aid, the relationship of need for city aid to other new text end 23.21 new text begin sources of revenue such as local sales taxes, an analysis of current law need and capacity new text end 23.22 new text begin factors as well as alternative need factors, alternative analytical methods for determining new text end 23.23 new text begin correlations between factors and need, the formula used to calculate aid for small cities, new text end 23.24 new text begin and volatility in the local government aid distribution. The group must report on its new text end 23.25 new text begin specific recommendations to the legislature by December 15, 2010. new text end 23.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.27ARTICLE 3 23.28PROPERTY TAXES 23.29    Section 1. Minnesota Statutes 2006, section 216B.1646, is amended to read: 23.30216B.1646 RATE REDUCTION new text begin ADJUSTMENT new text end ; PROPERTY TAX 23.31REDUCTION new text begin CHANGE new text end . 23.32    (a) The commission shall, by any method the commission finds appropriate, reduce new text begin new text end 23.33 new text begin adjust new text end the rates each electric utility subject to rate regulation by the commission charges 24.1its customers to reflect, on an ongoing basis, the amount by which each utility's property 24.2tax new text begin , including the state general tax, if applicable, new text end on the personal property of its electric 24.3system from taxes payable in 2001 to taxes payable in 2002 is reduced new text begin or pipeline system new text end 24.4 new text begin transporting or distributing natural gas is changed under this act new text end . The commission must 24.5ensure that, to the extent feasible, each dollar of personal property tax reduction allocated 24.6to Minnesota consumers retroactive to January 1, 2002, new text begin change in taxes payable in 2009 new text end 24.7 new text begin and subsequent years new text end results in a dollar of savings new text begin adjustment new text end to the utility's customers new text begin new text end 24.8 new text begin rates new text end . A utility may voluntarily pass on any additional property tax savings allocated in 24.9the same manner as approved by the commission under this paragraph. new text begin The adjustment new text end 24.10 new text begin under this paragraph is outside of a general rate case proceeding under section 216B.16. new text end 24.11    (b) By April 10, 2002, Each utility shall new text begin may new text end submit a filing to the commission 24.12containing: 24.13    (1) certified information regarding the utility's property tax savings new text begin change new text end allocated 24.14to Minnesota retail customers; and 24.15    (2) a proposed method of passing these savings on new text begin adjusting rates new text end to Minnesota 24.16retail customers. 24.17The utility shall provide the information in clause (1) to the commissioner of revenue at 24.18the same time. The commissioner shall notify the commission within 30 days as to the 24.19accuracy of the property tax data submitted by the utility. 24.20    (c) For purposes of this section, "personal property" means tools, implements, and 24.21machinery of the generating plant. It does not apply to transformers, transmission lines, 24.22distribution lines, or any other tools, implements, and machinery that are part of an electric 24.23substation, wherever located new text begin an electric system or of a pipeline system transporting or new text end 24.24 new text begin distributing natural gas new text end . 24.25    Sec. 2. Minnesota Statutes 2006, section 270C.85, subdivision 2, is amended to read: 24.26    Subd. 2. Powers and duties. The commissioner shall have and exercise the 24.27following powers and duties in administering the property tax laws. 24.28    (a) Confer with, advise, and give the necessary instructions and directions to local 24.29assessors and local boards of review throughout the state as to their duties under the 24.30laws of the state. 24.31    (b) Direct proceedings, actions, and prosecutions to be instituted to enforce the 24.32laws relating to the liability and punishment of public officers and officers and agents of 24.33corporations for failure or negligence to comply with the provisions of the property tax 24.34laws, and cause complaints to be made against local assessors, members of boards of 25.1equalization, members of boards of review, or any other assessing or taxing officer, to the 25.2proper authority, for their removal from office for misconduct or negligence of duty. 25.3    (c) Require county attorneys to assist in the commencement of prosecutions in 25.4actions or proceedings for removal, forfeiture, and punishment, for violation of the 25.5property tax laws in their respective districts or counties. 25.6    (d) Require town, city, county, and other public officers to report information as to 25.7the assessment of property, and such other information as may be needful in the work of 25.8the commissioner, in such form as the commissioner may prescribe. 25.9    (e) Transmit to the governor, on or before the third Monday in December of each 25.10even-numbered year, and to each member of the legislature, on or before November 25.1115 of each even-numbered year, the report of the department for the preceding years, 25.12showing all the taxable property subject to the property tax laws and the value of the 25.13same, in tabulated form. 25.14    (f) Inquire into the methods of assessment and taxation and ascertain whether the 25.15assessors faithfully discharge their duties. 25.16     new text begin (g) Assist local assessors in determining the estimated market value of industrial new text end 25.17 new text begin special-use property. For purposes of this paragraph, "industrial special-use property" new text end 25.18 new text begin means property that: new text end 25.19     new text begin (1) is designed and equipped for a particular type of industry; new text end 25.20     new text begin (2) is not easily adapted to some other use due to the unique nature of the facilities; new text end 25.21     new text begin (3) has facilities totaling at least 75,000 square feet in size; and new text end 25.22     new text begin (4) has a total estimated market value of $10,000,000 or greater based on the new text end 25.23 new text begin assessor's preliminary determination. new text end 25.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2009 and new text end 25.25 new text begin thereafter, for taxes payable in 2010 and thereafter. new text end 25.26    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 25.27to read: 25.28     new text begin Subd. 85. new text end new text begin Fergus Falls historical zone. new text end new text begin (a) Property located in the area of the new text end 25.29 new text begin campus of the former state regional treatment center in the city of Fergus Falls, including new text end 25.30 new text begin the five buildings and associated land that were acquired by the city prior to January 1, new text end 25.31 new text begin 2007, is exempt from ad valorem taxes levied under chapter 275. new text end 25.32     new text begin (b) The exemption applies for 15 calendar years from the date specified by resolution new text end 25.33 new text begin of the governing body of the city of Fergus Falls. For the final three assessment years of new text end 25.34 new text begin the duration limit, the exemption applies to the following percentages of estimated market new text end 25.35 new text begin value of the property: new text end 26.1     new text begin (1) for the third to the last assessment year of the duration, 75 percent; new text end 26.2     new text begin (2) for the second to the last assessment year of the duration, 50 percent; and new text end 26.3     new text begin (3) for the last assessment year of the duration, 25 percent. new text end 26.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2009 new text end 26.5 new text begin and thereafter. new text end 26.6    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 26.7to read: 26.8     new text begin Subd. 86. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 26.9 new text begin subdivision 9, paragraph (a), attached machinery and other personal property which is new text end 26.10 new text begin part of a simple-cycle combustion-turbine electric generation facility that exceeds 150 new text end 26.11 new text begin megawatts of installed capacity and that meets the requirements of this subdivision is new text end 26.12 new text begin exempt. At the time of construction, the facility must: new text end 26.13     new text begin (1) utilize natural gas as a primary fuel; new text end 26.14     new text begin (2) be owned by an electric generation and transmission cooperative; new text end 26.15     new text begin (3) be located within one mile of an existing 16-inch natural gas pipeline and new text end 26.16 new text begin 69-kilovolt and 230-kilovolt high-voltage electric transmission lines; new text end 26.17     new text begin (4) be designed to provide peaking, emergency backup, or contingency services; new text end 26.18     new text begin (5) have received a certificate of need under section 216B.243 demonstrating new text end 26.19 new text begin demand for its capacity; and new text end 26.20     new text begin (6) have received by resolution the approval from the governing bodies of the county new text end 26.21 new text begin and the city in which the proposed facility is to be located for the exemption of personal new text end 26.22 new text begin property under this subdivision. new text end 26.23     new text begin (b) Construction of the facility must be commenced after January 1, 2008, and new text end 26.24 new text begin before January 1, 2012. Property eligible for this exemption does not include electric new text end 26.25 new text begin transmission lines and interconnections or gas pipelines and interconnections appurtenant new text end 26.26 new text begin to the property or the facility. new text end 26.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2008 assessment payable in new text end 26.28 new text begin 2009 and thereafter. new text end 26.29    Sec. 5. new text begin [273.0645] COMMISSIONER REVIEW OF LOCAL ASSESSMENT new text end 26.30 new text begin PRACTICES. new text end 26.31     new text begin The commissioner of revenue must review the assessment practices in a taxing new text end 26.32 new text begin jurisdiction if requested in writing by a qualifying number of property owners in that new text end 26.33 new text begin taxing jurisdiction. The request must be signed by the greater of: new text end 27.1     new text begin (1) one percent of the property owners; or new text end 27.2     new text begin (2) five property owners. new text end 27.3     new text begin The request must identify the city, town, or county and describe why a review is new text end 27.4 new text begin sought for that taxing jurisdiction. The commissioner must conduct the review in a new text end 27.5 new text begin reasonable amount of time and report the findings to the county board of the affected new text end 27.6 new text begin county, to the affected city council or town board, if the review is for a specific city or new text end 27.7 new text begin town, and to the property owner designated in the request as the person to receive the new text end 27.8 new text begin report on behalf of all the property owners who signed the request. The commissioner new text end 27.9 new text begin must also provide the report electronically to all property owners who signed the request new text end 27.10 new text begin and provided an e-mail address in order to receive the report electronically. new text end 27.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 27.12    Sec. 6. Minnesota Statutes 2006, section 273.11, subdivision 1, is amended to read: 27.13    Subdivision 1. Generally. Except as provided in this section or section 273.17, 27.14subdivision 1 , all property shall be valued at its market value. The market value as 27.15determined pursuant to this section shall be stated such that any amount under $100 is 27.16rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 27.17In estimating and determining such value, the assessor shall not adopt a lower or different 27.18standard of value because the same is to serve as a basis of taxation, nor shall the assessor 27.19adopt as a criterion of value the price for which such property would sell at a forced 27.20sale, or in the aggregate with all the property in the town or district; but the assessor 27.21shall value each article or description of property by itself, and at such sum or price as 27.22the assessor believes the same to be fairly worth in money. The assessor shall take into 27.23account the effect on the market value of property of environmental factors in the vicinity 27.24of the property new text begin , and the market value effect of foreclosed property on all property in the new text end 27.25 new text begin vicinity due to the foreclosures new text end . In assessing any tract or lot of real property, the value 27.26of the land, exclusive of structures and improvements, shall be determined, and also the 27.27value of all structures and improvements thereon, and the aggregate value of the property, 27.28including all structures and improvements, excluding the value of crops growing upon 27.29cultivated land. In valuing real property upon which there is a mine or quarry, it shall be 27.30valued at such price as such property, including the mine or quarry, would sell for at a fair, 27.31voluntary sale, for cash, if the material being mined or quarried is not subject to taxation 27.32under section 298.015 and the mine or quarry is not exempt from the general property 27.33tax under section 298.25. In valuing real property which is vacant, platted property shall 27.34be assessed as provided in subdivision 14. All property, or the use thereof, which is 27.35taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market 28.1value of such property and not at the value of a leasehold estate in such property, or at 28.2some lesser value than its market value. 28.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2009 assessment and new text end 28.4 new text begin thereafter. new text end 28.5    Sec. 7. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read: 28.6    Subd. 1a. Limited market value. In the case of all property classified as 28.7agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, 28.8or noncommercial seasonal residential recreational, the assessor shall compare the value 28.9with the taxable portion of the value determined in the preceding assessment. 28.10    For assessment years 2004, 2005, and 2006, the amount of the increase shall not 28.11exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 28.12percent of the difference between the current assessment and the preceding assessment. 28.13    For assessment year new text begin years new text end 2007 new text begin through 2009 new text end , the amount of the increase shall not 28.14exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 28.15percent of the difference between the current assessment and the preceding assessment. 28.16    For assessment year 2008 new text begin 2010 new text end , the amount of the increase shall not exceed the 28.17greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the 28.18difference between the current assessment and the preceding assessment. 28.19    This limitation shall not apply to increases in value due to improvements. For 28.20purposes of this subdivision, the term "assessment" means the value prior to any exclusion 28.21under subdivision 16. 28.22    The provisions of this subdivision shall be in effect through assessment year 2008 28.23 new text begin 2010 new text end as provided in this subdivision. 28.24    For purposes of the assessment/sales ratio study conducted under section 127A.48, 28.25and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 28.26126C, 127A, and 477A, market values and net tax capacities determined under this 28.27subdivision and subdivision 16, shall be used. 28.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2008 and new text end 28.29 new text begin thereafter, for taxes payable in 2009 and thereafter. new text end 28.30    Sec. 8. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to 28.31read: 28.32     new text begin Subd. 24. new text end new text begin Rural vacant land abutting public waters. new text end new text begin (a) Any property that: new text end 28.33     new text begin (1) is located in a township; new text end 29.1     new text begin (2) is classified as either (i) agricultural property under section 273.13, subdivision new text end 29.2 new text begin 23, paragraph (b), or (ii) rural vacant land under section 273.13, subdivision 23, paragraph new text end 29.3 new text begin (c), contiguous to agricultural property under the same ownership with at least two-thirds new text end 29.4 new text begin of the acreage used for agricultural purposes; new text end 29.5     new text begin (3) is not enrolled in the Minnesota agricultural property tax law under section new text end 29.6 new text begin 273.111; and new text end 29.7     new text begin (4) abuts public waters in whole or in part, new text end 29.8 new text begin shall be valued by the assessor on the same basis as rural vacant land of the same quality new text end 29.9 new text begin that does not abut public waters, until some action is taken to develop the land as specified new text end 29.10 new text begin in paragraph (c). new text end 29.11     new text begin (b) In each assessment year, the assessor shall determine the estimated market value new text end 29.12 new text begin of the property as provided under subdivision 1, taking into consideration its highest new text end 29.13 new text begin and best use. For each year that the property is classified under this subdivision, the new text end 29.14 new text begin property tax statement shall include a notice that the property is being taxed under a new text end 29.15 new text begin reduced valuation that will terminate under certain conditions. new text end 29.16     new text begin (c) An owner of property meeting the criteria of this subdivision must notify the new text end 29.17 new text begin county assessor within 30 days of applying for a development permit from the county new text end 29.18 new text begin or local zoning board. If development permits are not required, an owner of property new text end 29.19 new text begin meeting the criteria of this subdivision must notify the assessor prior to all or any portion new text end 29.20 new text begin of the property being platted or subdivided. new text end 29.21     new text begin (d) When any of the conditions specified in paragraph (c) occurs, additional taxes new text end 29.22 new text begin shall be imposed in an amount equal to: (1) the average of the difference between the new text end 29.23 new text begin amount of taxes actually levied on the property in the current year and the two prior years, new text end 29.24 new text begin and the amount of taxes that would have been levied in the current year and the two prior new text end 29.25 new text begin years based on the estimated market value determined under paragraph (b); (2) multiplied new text end 29.26 new text begin by seven. The additional taxes shall be extended against the property on the tax list for the new text end 29.27 new text begin current year, provided that no interest or penalties shall be levied on the additional taxes if new text end 29.28 new text begin timely paid. For purposes of this subdivision, "public waters" means a meandered lake as new text end 29.29 new text begin defined under section 103G.005, subdivision 15, paragraph (a), clause (3). new text end 29.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2009 assessment and new text end 29.31 new text begin thereafter. new text end 29.32    Sec. 9. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to 29.33read: 30.1     new text begin Subd. 25. new text end new text begin Limit on taxable valuation; certain restored homes. new text end new text begin A homestead new text end 30.2 new text begin property that either (i) has gone through foreclosure or (ii) is located within a disaster new text end 30.3 new text begin or emergency area and sustained physical damage of at least $5,000 in the disaster or new text end 30.4 new text begin emergency is eligible for valuation limitation under this subdivision. To qualify for the new text end 30.5 new text begin limitation, the property must: new text end 30.6     new text begin (i) have been restored or rebuilt within 18 months of the foreclosure or the disaster new text end 30.7 new text begin or emergency; new text end 30.8     new text begin (ii) have a gross living area that does not exceed 130 percent of the gross living area new text end 30.9 new text begin prior to the foreclosure or the disaster or emergency; and new text end 30.10     new text begin (iii) have an estimated market value that exceeds its taxable market value for the new text end 30.11 new text begin assessment year of the foreclosure or the disaster or emergency by at least $20,000, due to new text end 30.12 new text begin the restoration or reconstruction. new text end 30.13     new text begin In the first assessment year following the restoration or reconstruction, the taxable new text end 30.14 new text begin value shall be equal to three-quarters of its taxable value in the assessment year of the new text end 30.15 new text begin foreclosure or disaster or emergency, plus one-quarter of its current estimated market new text end 30.16 new text begin value. In the second assessment year following the restoration or reconstruction, the new text end 30.17 new text begin taxable value shall be equal to one-half of its taxable value in the assessment year of the new text end 30.18 new text begin foreclosure or disaster or emergency, and one-half of its current estimated market value. new text end 30.19 new text begin In the third assessment year following the restoration or reconstruction, the taxable value new text end 30.20 new text begin shall be equal to one-quarter of its taxable value in the assessment year of the foreclosure new text end 30.21 new text begin or disaster or emergency, and three-quarters of its current estimated market value. For new text end 30.22 new text begin the three assessment years immediately following the restoration or reconstruction, the new text end 30.23 new text begin property is not subject to the valuation limit under subdivision 1a. new text end 30.24     new text begin For the purposes of this subdivision: new text end 30.25     new text begin (i) "disaster or emergency area" means an area in which the president of the United new text end 30.26 new text begin States or the administrator of the Small Business Administration has determined that new text end 30.27 new text begin a disaster exists pursuant to federal law; new text end 30.28     new text begin (ii) "gone through foreclosure" means that a foreclosure sale has been held and that new text end 30.29 new text begin the person who owned the home prior to the sale did not redeem it from the sale under new text end 30.30 new text begin section 580.23; and new text end 30.31     new text begin (iii) "gross living area" means the square footage of the home that would customarily new text end 30.32 new text begin be used as living space. new text end 30.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2009 and new text end 30.34 new text begin thereafter. new text end 31.1    Sec. 10. Minnesota Statutes 2006, section 273.111, subdivision 3, as amended by Laws 31.22008, chapter 154, article 13, section 26, is amended to read: 31.3    Subd. 3. Requirements. (a) Real estate consisting of ten new text begin three new text end acres or more or 31.4a nursery or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under 31.5section 273.13, shall be entitled to valuation and tax deferment under this section only 31.6if it is primarily devoted to agricultural use, and meets the qualifications in subdivision 31.76, and either: 31.8    (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the 31.9owner or is real estate which is farmed with the real estate which contains the homestead 31.10property; or 31.11    (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, 31.12or any combination thereof, for a period of at least seven years prior to application for 31.13benefits under the provisions of this section, or is real estate which is farmed with the 31.14real estate which qualifies under this clause and is within four townships or cities or 31.15combination thereof from the qualifying real estate; or 31.16    (3) is the homestead of a shareholder in a family farm corporation as defined in new text begin an new text end 31.17 new text begin individual who is part of an entity in compliance with new text end section 500.24, notwithstanding 31.18the fact that legal title to the real estate may be held in the name of the family farm 31.19corporation; or 31.20    (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor, 31.21partnership, or corporation which also owns the nursery or greenhouse operations on the 31.22parcel or parcels new text begin , provided that only the acres used to produce nursery stock qualify new text end 31.23 new text begin for treatment under this section new text end . 31.24    (b) Valuation of real estate under this section is limited to parcels the ownership of 31.25which is in noncorporate entities except for: 31.26    (1) family farm corporations organized pursuant to section ; and 31.27    (2) corporations that derive 80 percent or more of their gross receipts from the 31.28wholesale or retail sale of horticultural or nursery stock. 31.29    (c) Land that previously qualified for tax deferment under this section and no longer 31.30qualifies because it is not primarily used for agricultural purposes but would otherwise 31.31qualify under subdivisions new text begin Minnesota Statutes 2006, section 273.111, subdivision new text end 3 new text begin , new text end and 6 31.32for a period of at least three years will not be required to make payment of the previously 31.33deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to 31.34the expiration of the three-year period requires payment of deferred taxes as follows: sale 31.35in the year the land no longer qualifies requires payment of the current year's deferred 31.36taxes plus payment of deferred taxes for the two prior years; sale during the second year 32.1the land no longer qualifies requires payment of the current year's deferred taxes plus 32.2payment of the deferred taxes for the prior year; and sale during the third year the land 32.3no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes 32.4shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is 32.5sold or no longer qualifies under this paragraph, or at the end of the three-year period, 32.6whichever comes first, all deferred special assessments plus interest are payable in equal 32.7installments spread over the time remaining until the last maturity date of the bonds issued 32.8to finance the improvement for which the assessments were levied. If the bonds have 32.9matured, the deferred special assessments plus interest are payable within 90 days. The 32.10provisions of section 429.061, subdivision 2, apply to the collection of these installments. 32.11Penalties are not imposed on any such special assessments if timely paid. 32.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2009, taxes new text end 32.13 new text begin payable in 2010 and thereafter. new text end 32.14    Sec. 11. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision 32.15to read: 32.16     new text begin Subd. 3a. new text end new text begin Property no longer eligible for deferment. new text end new text begin Real estate that qualifies for new text end 32.17 new text begin tax deferment under this section for assessment year 2008, but which does not qualify new text end 32.18 new text begin for the current assessment year due to changes in qualification requirements under this new text end 32.19 new text begin act, shall continue to qualify until the land is sold or transferred, provided that the new text end 32.20 new text begin property continues to meet the requirements of Minnesota Statutes 2006, section 273.111, new text end 32.21 new text begin subdivision 3. new text end 32.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 32.23 new text begin thereafter. new text end 32.24    Sec. 12. Minnesota Statutes 2006, section 273.111, subdivision 4, is amended to read: 32.25    Subd. 4. Determination of value. new text begin (a) new text end The value of any real estate described 32.26in subdivision 3 shall upon timely application by the owner, in the manner provided 32.27in subdivision 8, be determined solely with reference to its appropriate agricultural 32.28classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. In 32.29determining the value for ad valorem tax purposes, the assessor shall use sales data for 32.30agricultural lands located outside the seven metropolitan counties having similar soil 32.31types, number of degree days, and other similar agricultural characteristics. Furthermore, 32.32the assessor shall not consider any added values resulting from nonagricultural factors. 32.33 new text begin In order to account for the presence of nonagricultural influences that may affect the value new text end 33.1 new text begin of agricultural land, the commissioner of revenue shall develop a fair and uniform method new text end 33.2 new text begin of determining agricultural values for each county in the state that are consistent with this new text end 33.3 new text begin subdivision. The commissioner shall annually assign the resulting values to each county, new text end 33.4 new text begin and these values shall be used as the basis for determining the agricultural value for all new text end 33.5 new text begin properties in the county qualifying for tax deferment under this section. new text end 33.6     new text begin (b) In the case of property qualifying for tax deferment only under subdivision 3a, new text end 33.7 new text begin the value shall be based on the value in effect for assessment year 2008, multiplied by new text end 33.8 new text begin the ratio of the total taxable market value of all property in the county for the current new text end 33.9 new text begin assessment year divided by the total taxable market value of all property in the county new text end 33.10 new text begin for assessment year 2008. new text end 33.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2009 and new text end 33.12 new text begin thereafter. new text end 33.13    Sec. 13. Minnesota Statutes 2006, section 273.111, subdivision 8, is amended to read: 33.14    Subd. 8. Application. Application for deferment of taxes and assessment under this 33.15section shall be filed by May 1 of the year prior to the year in which the taxes are payable. 33.16Any application filed hereunder and granted shall continue in effect for subsequent years 33.17until the property no longer qualifies. Such application shall be filed with the assessor of 33.18the taxing district in which the real property is located on such form as may be prescribed 33.19by the commissioner of revenue. The assessor may require proof by affidavit or otherwise 33.20that the property qualifies under subdivisions new text begin subdivision new text end 3 and 6. 33.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 33.22 new text begin thereafter. new text end 33.23    Sec. 14. Minnesota Statutes 2006, section 273.111, subdivision 9, is amended to read: 33.24    Subd. 9. Additional taxes. When real property which is being, or has been valued 33.25and assessed under this section no longer qualifies under subdivisions new text begin subdivision new text end 3 33.26and 6 new text begin or 3a new text end , the portion no longer qualifying shall be subject to additional taxes, in the 33.27amount equal to the new text begin average new text end difference between the taxes determined in accordance with 33.28subdivision 4, and the amount determined under subdivision 5, new text begin for the current year and the new text end 33.29 new text begin two preceding years, multiplied by seven. new text end Provided, however, that the amount determined 33.30under subdivision 5 shall not be greater than it would have been had the actual bona fide 33.31sale price of the real property at an arm's-length transaction been used in lieu of the market 33.32value determined under subdivision 5. Such additional taxes shall be extended against 33.33the property on the tax list for the current year, provided, however, that no interest or 34.1penalties shall be levied on such additional taxes if timely paid, and provided further, that 34.2such additional taxes shall only be levied with respect to the last three years that the said 34.3property has been valued and assessed under this section. 34.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 34.5 new text begin thereafter. new text end 34.6    Sec. 15. Minnesota Statutes 2006, section 273.111, subdivision 11, is amended to read: 34.7    Subd. 11. Special local assessments. The payment of special local assessments 34.8levied after June 1, 1967, for improvements made to any real property described in 34.9subdivision 3 together with the interest thereon shall, on timely application as provided 34.10in subdivision 8, be deferred as long as such property meets the conditions contained in 34.11subdivisions new text begin subdivision new text end 3 and 6 new text begin or 3a new text end or is transferred to an agricultural preserve under 34.12sections 473H.02 to 473H.17. If special assessments against the property have been 34.13deferred pursuant to this subdivision, the governmental unit shall file with the county 34.14recorder in the county in which the property is located a certificate containing the legal 34.15description of the affected property and of the amount deferred. When such property 34.16no longer qualifies under subdivisions new text begin subdivision new text end 3 and 6 new text begin or 3a new text end , all deferred special 34.17assessments plus interest shall be payable in equal installments spread over the time 34.18remaining until the last maturity date of the bonds issued to finance the improvement 34.19for which the assessments were levied. If the bonds have matured, the deferred special 34.20assessments plus interest shall be payable within 90 days. The provisions of section 34.21429.061, subdivision 2 , apply to the collection of these installments. Penalty shall not be 34.22levied on any such special assessments if timely paid. 34.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 34.24 new text begin thereafter. new text end 34.25    Sec. 16. Minnesota Statutes 2006, section 273.111, subdivision 11a, is amended to read: 34.26    Subd. 11a. Continuation of tax treatment upon sale. When real property 34.27qualifying under subdivisions new text begin subdivision new text end 3 and 6 is sold, no additional taxes or deferred 34.28special assessments plus interest shall be extended against the property provided the 34.29property continues to qualify pursuant to subdivisions new text begin subdivision new text end 3 and 6, and provided 34.30the new owner files an application for continued deferment within 30 days after the sale. 34.31    For purposes of meeting the income requirements of subdivision 6, the property 34.32purchased shall be considered in conjunction with other qualifying property owned by 34.33the purchaser. 35.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 35.2 new text begin thereafter. new text end 35.3    Sec. 17. new text begin [273.113] TAX CREDIT FOR PROPERTY IN BOVINE new text end 35.4 new text begin TUBERCULOSIS MANAGEMENT ZONES. new text end 35.5     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin For the purposes of this section, "bovine tuberculosis new text end 35.6 new text begin management zone" means the area within the ten-mile radius around the five presumptive new text end 35.7 new text begin tuberculosis-positive deer sampled during the fall 2006 hunter-harvested surveillance new text end 35.8 new text begin effort. new text end 35.9     new text begin Subd. 2. new text end new text begin Eligibility; credit on agricultural land; cattle herds. new text end new text begin Land classified new text end 35.10 new text begin as class 2a or 2b under section 273.13, subdivision 23, located in a bovine tuberculosis new text end 35.11 new text begin management zone is eligible for a property tax credit if the property owner has eradicated new text end 35.12 new text begin a cattle herd that had been kept on that land for at least part of the year in order to prevent new text end 35.13 new text begin the onset or spread of bovine tuberculosis. The net credit is equal to that portion of the tax new text end 35.14 new text begin relating to the market value of the land on the parcels where the herd had been located new text end 35.15 new text begin after all other applicable credits have been deducted. To initially qualify for the tax credit, new text end 35.16 new text begin the property owner shall file an application with the county by January 2 of the year new text end 35.17 new text begin following the calendar year when the herd was eradicated. The credit must be given for new text end 35.18 new text begin each taxes payable year following the calendar year when the herd was eradicated and new text end 35.19 new text begin must terminate for all taxes payable years beginning after the calendar year when a new new text end 35.20 new text begin herd of cattle was placed on the land. The auditor shall indicate the amount of the property new text end 35.21 new text begin tax reduction on the property tax statement of each taxpayer receiving a credit under new text end 35.22 new text begin this section. Notwithstanding section 276.04, subdivision 3, property tax statements of new text end 35.23 new text begin properties eligible for a credit under this section must be mailed no later than April 15. new text end 35.24     new text begin Subd. 3. new text end new text begin Eligibility; credit on hunting land; deer and elk herds. new text end new text begin Land located new text end 35.25 new text begin in a bovine tuberculosis management zone that is primarily used for hunting purposes is new text end 35.26 new text begin eligible for a property tax credit if (1) the property owner or the Department of Natural new text end 35.27 new text begin Resources has eradicated the deer and elk herd on that land in order to prevent the onset or new text end 35.28 new text begin spread of bovine tuberculosis, (2) the property owner adheres strictly to the deer and elk new text end 35.29 new text begin feeding ban, and (3) the property owner makes every effort to keep their land free of deer new text end 35.30 new text begin and elk. The net credit is equal to the property tax on the parcel where the herd had been new text end 35.31 new text begin located after all other applicable credits have been deducted. The credit is only on that new text end 35.32 new text begin portion of the tax relating to the market value of the land. To initially qualify for the tax new text end 35.33 new text begin credit, the property owner shall file an application with the county by January 2 of the new text end 35.34 new text begin year following the calendar year when the deer or elk herd was eradicated. To receive new text end 35.35 new text begin the tax credit in subsequent years, the property owner shall file by January 2 of each new text end 36.1 new text begin subsequent year until the state is upgraded to a bovine tuberculosis status of modified new text end 36.2 new text begin accredited advanced. The county board must approve the application before the credit new text end 36.3 new text begin is allowed. The credit is for each taxes payable year following the calendar year when new text end 36.4 new text begin the deer or elk herd was eradicated and must terminate as provided in subdivision 5. new text end 36.5 new text begin The auditor shall indicate the amount of the property tax reduction on the property tax new text end 36.6 new text begin statement of each taxpayer receiving a credit under this section. Notwithstanding section new text end 36.7 new text begin 276.04, subdivision 3, property tax statements of properties eligible for a credit under this new text end 36.8 new text begin section must be mailed no later than April 15. new text end 36.9     new text begin Subd. 4. new text end new text begin Reimbursement for lost revenue; appropriations. new text end new text begin The county auditor new text end 36.10 new text begin shall certify to the commissioner of revenue, as part of the abstracts of tax lists required to new text end 36.11 new text begin be filed with the commissioner under section 275.29, the amount of tax lost to the county new text end 36.12 new text begin from the property tax credit under this section after all other applicable credits have been new text end 36.13 new text begin deducted. Any prior year adjustments must also be certified in the abstracts of tax lists. new text end 36.14 new text begin The commissioner of revenue shall review the certifications to determine their accuracy. new text end 36.15 new text begin The commissioner may make the changes in the certification that are considered necessary new text end 36.16 new text begin or return a certification to the county auditor for corrections. The commissioner shall new text end 36.17 new text begin reimburse each taxing district for the taxes lost. The payments must be made at the time new text end 36.18 new text begin provided in section 273.1398, subdivision 6, for payment to taxing jurisdictions in the new text end 36.19 new text begin same proportion that the ad valorem tax is distributed. The amount necessary to make the new text end 36.20 new text begin reimbursements under this section is annually appropriated from the general fund to the new text end 36.21 new text begin commissioner of revenue. The credits paid under this section shall be deducted from the new text end 36.22 new text begin tax due on the property as provided in section 273.1393. new text end 36.23     new text begin Subd. 5. new text end new text begin Termination of credit. new text end new text begin The credit provided under this section ceases to new text end 36.24 new text begin be available beginning with any assessment year following the date when the United new text end 36.25 new text begin States Department of Agriculture publishes notice in the Federal Register that the state is new text end 36.26 new text begin upgraded to a bovine tuberculosis status of modified accredited advanced. new text end 36.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2009. new text end 36.28    Sec. 18. Minnesota Statutes 2006, section 273.121, as amended by Laws 2008, chapter 36.29154, article 13, section 28, is amended to read: 36.30273.121 VALUATION OF REAL PROPERTY, NOTICE. 36.31     new text begin Subdivision 1. new text end new text begin Notice. new text end Any county assessor or city assessor having the powers of a 36.32county assessor, valuing or classifying taxable real property shall in each year notify those 36.33persons whose property is to be included on the assessment roll that year if the person's 36.34address is known to the assessor, otherwise the occupant of the property. The notice shall 37.1be in writing and shall be sent by ordinary mail at least ten days before the meeting of 37.2the local board of appeal and equalization under section 274.01 or the review process 37.3established under section 274.13, subdivision 1c. Upon written request by the owner of the 37.4property, the assessor may send the notice in electronic form or by electronic mail instead 37.5of on paper or by ordinary mail. It shall contain: (1) the market value for the current and 37.6prior assessment, (2) the limited market value under section 273.11, subdivision 1a, for 37.7the current and prior assessment, (3) the qualifying amount of any improvements under 37.8section 273.11, subdivision 16, for the current assessment, (4) the market value subject 37.9to taxation after subtracting the amount of any qualifying improvements for the current 37.10assessment, (5) the classification of the property for the current and prior assessment, 37.11(6) a note that if the property is homestead and at least 45 years old, improvements 37.12made to the property may be eligible for a valuation exclusion under section 273.11, 37.13subdivision 16 , (7) the assessor's office address, and (8) the dates, places, and times set for 37.14the meetings of the local board of appeal and equalization, the review process established 37.15under section 274.13, subdivision 1c, and the county board of appeal and equalization. 37.16The commissioner of revenue shall specify the form of the notice. The assessor shall 37.17attach to the assessment roll a statement that the notices required by this section have been 37.18mailed. Any assessor who is not provided sufficient funds from the assessor's governing 37.19body to provide such notices, may make application to the commissioner of revenue 37.20to finance such notices. The commissioner of revenue shall conduct an investigation 37.21and, if satisfied that the assessor does not have the necessary funds, issue a certification 37.22to the commissioner of finance of the amount necessary to provide such notices. The 37.23commissioner of finance shall issue a warrant for such amount and shall deduct such 37.24amount from any state payment to such county or municipality. The necessary funds to 37.25make such payments are hereby appropriated. Failure to receive the notice shall in no way 37.26affect the validity of the assessment, the resulting tax, the procedures of any board of 37.27review or equalization, or the enforcement of delinquent taxes by statutory means. 37.28     new text begin Subd. 2. new text end new text begin Availability of data. new text end new text begin The notice must state where the information on new text end 37.29 new text begin the property is available, the times when the information may be viewed by the public, new text end 37.30 new text begin and the county's Web site address. new text end 37.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices prepared in 2009 and new text end 37.32 new text begin thereafter. new text end 37.33    Sec. 19. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read: 38.1    Subdivision 1. General rule. (a) Residential real estate that is occupied and used 38.2for the purposes of a homestead by its owner, who must be a Minnesota resident, is 38.3a residential homestead. 38.4    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and 38.5used as a homestead by its owner, who must be a Minnesota resident, is an agricultural 38.6homestead. 38.7    Dates for establishment of a homestead and homestead treatment provided to 38.8particular types of property are as provided in this section. 38.9    Property held by a trustee under a trust is eligible for homestead classification if the 38.10requirements under this chapter are satisfied. 38.11    The assessor shall require proof, as provided in subdivision 13, of the facts upon 38.12which classification as a homestead may be determined. Notwithstanding any other law, 38.13the assessor may at any time require a homestead application to be filed in order to verify 38.14that any property classified as a homestead continues to be eligible for homestead status. 38.15Notwithstanding any other law to the contrary, the Department of Revenue may, upon 38.16request from an assessor, verify whether an individual who is requesting or receiving 38.17homestead classification has filed a Minnesota income tax return as a resident for the most 38.18recent taxable year for which the information is available. 38.19    When there is a name change or a transfer of homestead property, the assessor may 38.20reclassify the property in the next assessment unless a homestead application is filed to 38.21verify that the property continues to qualify for homestead classification. 38.22    (b) For purposes of this section, homestead property shall include property which 38.23is used for purposes of the homestead but is separated from the homestead by a road, 38.24street, lot, waterway, or other similar intervening property. The term "used for purposes 38.25of the homestead" shall include but not be limited to uses for gardens, garages, or other 38.26outbuildings commonly associated with a homestead, but shall not include vacant land 38.27held primarily for future development. In order to receive homestead treatment for 38.28the noncontiguous property, the owner must use the property for the purposes of the 38.29homestead, and must apply to the assessor, both by the deadlines given in subdivision 38.309. After initial qualification for the homestead treatment, additional applications for 38.31subsequent years are not required. 38.32    (c) Residential real estate that is occupied and used for purposes of a homestead by a 38.33relative of the owner is a homestead but only to the extent of the homestead treatment 38.34that would be provided if the related owner occupied the property. For purposes of this 38.35paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, 38.36grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship 39.1may be by blood or marriage. Property that has been classified as seasonal residential 39.2recreational property at any time during which it has been owned by the current owner or 39.3spouse of the current owner will not be reclassified as a homestead unless it is occupied as 39.4a homestead by the owner; this prohibition also applies to property that, in the absence of 39.5this paragraph, would have been classified as seasonal residential recreational property at 39.6the time when the residence was constructed. Neither the related occupant nor the owner 39.7of the property may claim a property tax refund under chapter 290A for a homestead 39.8occupied by a relative. In the case of a residence located on agricultural land, only the 39.9house, garage, and immediately surrounding one acre of land shall be classified as a 39.10homestead under this paragraph, except as provided in paragraph (d). 39.11    (d) Agricultural property that is occupied and used for purposes of a homestead by 39.12a relative of the owner, is a homestead, only to the extent of the homestead treatment 39.13that would be provided if the related owner occupied the property, and only if all of the 39.14following criteria are met: 39.15    (1) the relative who is occupying the agricultural property is a son, daughter, new text begin brother, new text end 39.16 new text begin sister, new text end grandson, granddaughter, father, or mother of the owner of the agricultural property 39.17or a son, daughter, new text begin brother, sister, new text end grandson, or granddaughter of the spouse of the owner 39.18of the agricultural property; 39.19    (2) the owner of the agricultural property must be a Minnesota resident; 39.20    (3) the owner of the agricultural property must not receive homestead treatment on 39.21any other agricultural property in Minnesota; and 39.22    (4) the owner of the agricultural property is limited to only one agricultural 39.23homestead per family under this paragraph. 39.24    Neither the related occupant nor the owner of the property may claim a property 39.25tax refund under chapter 290A for a homestead occupied by a relative qualifying under 39.26this paragraph. For purposes of this paragraph, "agricultural property" means the house, 39.27garage, other farm buildings and structures, and agricultural land. 39.28    Application must be made to the assessor by the owner of the agricultural property to 39.29receive homestead benefits under this paragraph. The assessor may require the necessary 39.30proof that the requirements under this paragraph have been met. 39.31    (e) In the case of property owned by a property owner who is married, the assessor 39.32must not deny homestead treatment in whole or in part if only one of the spouses occupies 39.33the property and the other spouse is absent due to: (1) marriage dissolution proceedings, 39.34(2) legal separation, (3) employment or self-employment in another location, or (4) other 39.35personal circumstances causing the spouses to live separately, not including an intent to 39.36obtain two homestead classifications for property tax purposes. To qualify under clause 40.1(3), the spouse's place of employment or self-employment must be at least 50 miles distant 40.2from the other spouse's place of employment, and the homesteads must be at least 50 miles 40.3distant from each other. Homestead treatment, in whole or in part, shall not be denied to 40.4the owner's spouse who previously occupied the residence with the owner if the absence 40.5of the owner is due to one of the exceptions provided in this paragraph. 40.6    (f) The assessor must not deny homestead treatment in whole or in part if: 40.7    (1) in the case of a property owner who is not married, the owner is absent due to 40.8residence in a nursing home, boarding care facility, or an elderly assisted living facility 40.9property as defined in section 273.13, subdivision 25a, and the property is not otherwise 40.10occupied; or 40.11    (2) in the case of a property owner who is married, the owner or the owner's spouse 40.12or both are absent due to residence in a nursing home, boarding care facility, or an elderly 40.13assisted living facility property as defined in section 273.13, subdivision 25a, and the 40.14property is not occupied or is occupied only by the owner's spouse. 40.15    (g) If an individual is purchasing property with the intent of claiming it as a 40.16homestead and is required by the terms of the financing agreement to have a relative 40.17shown on the deed as a co-owner, the assessor shall allow a full homestead classification. 40.18This provision only applies to first-time purchasers, whether married or single, or to a 40.19person who had previously been married and is purchasing as a single individual for the 40.20first time. The application for homestead benefits must be on a form prescribed by the 40.21commissioner and must contain the data necessary for the assessor to determine if full 40.22homestead benefits are warranted. 40.23    (h) If residential or agricultural real estate is occupied and used for purposes of a 40.24homestead by a child of a deceased owner and the property is subject to jurisdiction of 40.25probate court, the child shall receive relative homestead classification under paragraph (c) 40.26or (d) to the same extent they would be entitled to it if the owner was still living, until 40.27the probate is completed. For purposes of this paragraph, "child" includes a relationship 40.28by blood or by marriage. 40.29    (i) If a single-family home, duplex, or triplex classified as either residential 40.30homestead or agricultural homestead is also used to provide licensed child care, the 40.31portion of the property used for licensed child care must be classified as a part of the 40.32homestead property. 40.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 40.34 new text begin thereafter. new text end 41.1    Sec. 20. Minnesota Statutes 2007 Supplement, section 273.124, subdivision 14, 41.2is amended to read: 41.3    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than 41.4ten acres that is the homestead of its owner must be classified as class 2a under section 41.5273.13, subdivision 23 , paragraph (a), if: 41.6    (1) the parcel on which the house is located is contiguous on at least two sides to (i) 41.7agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 41.8Service, or (iii) land administered by the Department of Natural Resources on which in 41.9lieu taxes are paid under sections 477A.11 to 477A.14; 41.10    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 41.1120 acres; 41.12    (3) the noncontiguous land is located not farther than four townships or cities, or a 41.13combination of townships or cities from the homestead; and 41.14    (4) the agricultural use value of the noncontiguous land and farm buildings is equal 41.15to at least 50 percent of the market value of the house, garage, and one acre of land. 41.16    Homesteads initially classified as class 2a under the provisions of this paragraph shall 41.17remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 41.18properties, as long as the homestead remains under the same ownership, the owner owns a 41.19noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 41.20value qualifies under clause (4). Homestead classification under this paragraph is limited 41.21to property that qualified under this paragraph for the 1998 assessment. 41.22    (b)(i) Agricultural property consisting of at least 40 acres shall be classified as the 41.23owner's homestead, to the same extent as other agricultural homestead property, if all 41.24of the following criteria are met: 41.25    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's 41.26spouse, new text begin the brother or sister of the owner or owner's spouse, new text end or the grandson or 41.27granddaughter of the owner or the owner's spouse, is actively farming the agricultural 41.28property, either on the person's own behalf as an individual or on behalf of a partnership 41.29operating a family farm, family farm corporation, joint family farm venture, or limited 41.30liability company of which the person is a partner, shareholder, or member; 41.31    (2) both the owner of the agricultural property and the person who is actively 41.32farming the agricultural property under clause (1), are Minnesota residents; 41.33    (3) neither the owner nor the spouse of the owner claims another agricultural 41.34homestead in Minnesota; and 41.35    (4) neither the owner nor new text begin and new text end the person actively farming the property lives farther 41.36than four townships or cities, or a combination of four townships or cities, from the 42.1agricultural property, new text begin must live either in the county where the agricultural property is new text end 42.2 new text begin located or in a county contiguous to the county where the agricultural property is located, new text end 42.3except that if the owner or the owner's spouse is required to live in employer-provided 42.4housing, the owner or owner's spouse, whichever is actively farming the agricultural 42.5property, may live more than four townships or cities, or combination of four townships 42.6or cities new text begin further new text end from the agricultural property new text begin than in the county or county contiguous new text end 42.7 new text begin to the property new text end . 42.8    The relationship under this paragraph may be either by blood or marriage. 42.9    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead 42.10classification under this paragraph if the qualifications in clause (i) are met, except that 42.11"owner" means the grantor of the trust. 42.12    (iii) Property containing the residence of an owner who owns qualified property 42.13under clause (i) shall be classified as part of the owner's agricultural homestead, if that 42.14property is also used for noncommercial storage or drying of agricultural crops. 42.15    (c) Noncontiguous land shall be included as part of a homestead under section 42.16273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a 42.17and the detached land is located in the same township or city, or not farther than four 42.18townships or cities or combination thereof from new text begin county or in a county contiguous to new text end the 42.19homestead. Any taxpayer of these noncontiguous lands must notify the county assessor 42.20that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is 42.21located in another county, the taxpayer must also notify the assessor of the other county. 42.22    (d) Agricultural land used for purposes of a homestead and actively farmed by a 42.23person holding a vested remainder interest in it must be classified as a homestead under 42.24section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, 42.25any other dwellings on the land used for purposes of a homestead by persons holding 42.26vested remainder interests who are actively engaged in farming the property, and up to 42.27one acre of the land surrounding each homestead and reasonably necessary for the use of 42.28the dwelling as a home, must also be assessed class 2a. 42.29    (e) Agricultural land and buildings that were class 2a homestead property under 42.30section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain 42.31classified as agricultural homesteads for subsequent assessments if: 42.32    (1) the property owner abandoned the homestead dwelling located on the agricultural 42.33homestead as a result of the April 1997 floods; 42.34    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, 42.35or Wilkin; 43.1    (3) the agricultural land and buildings remain under the same ownership for the 43.2current assessment year as existed for the 1997 assessment year and continue to be used 43.3for agricultural purposes; 43.4    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 43.5miles of one of the parcels of agricultural land that is owned by the taxpayer; and 43.6    (5) the owner notifies the county assessor that the relocation was due to the 1997 43.7floods, and the owner furnishes the assessor any information deemed necessary by the 43.8assessor in verifying the change in dwelling. Further notifications to the assessor are not 43.9required if the property continues to meet all the requirements in this paragraph and any 43.10dwellings on the agricultural land remain uninhabited. 43.11    (f) Agricultural land and buildings that were class 2a homestead property under 43.12section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain 43.13classified agricultural homesteads for subsequent assessments if: 43.14    (1) the property owner abandoned the homestead dwelling located on the agricultural 43.15homestead as a result of damage caused by a March 29, 1998, tornado; 43.16    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, 43.17LeSueur, Nicollet, Nobles, or Rice; 43.18    (3) the agricultural land and buildings remain under the same ownership for the 43.19current assessment year as existed for the 1998 assessment year; 43.20    (4) the dwelling occupied by the owner is located in this state and is within 50 miles 43.21of one of the parcels of agricultural land that is owned by the taxpayer; and 43.22    (5) the owner notifies the county assessor that the relocation was due to a March 29, 43.231998, tornado, and the owner furnishes the assessor any information deemed necessary by 43.24the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 43.25owner must notify the assessor by December 1, 1998. Further notifications to the assessor 43.26are not required if the property continues to meet all the requirements in this paragraph 43.27and any dwellings on the agricultural land remain uninhabited. 43.28    (g) Agricultural property consisting of at least 40 acres of a family farm corporation, 43.29joint family farm venture, family farm limited liability company, or partnership operating 43.30a family farm as described under subdivision 8 shall be classified homestead, to the same 43.31extent as other agricultural homestead property, if all of the following criteria are met: 43.32    (1) a shareholder, member, or partner of that entity is actively farming the 43.33agricultural property; 43.34    (2) that shareholder, member, or partner who is actively farming the agricultural 43.35property is a Minnesota resident; 44.1    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder, 44.2member, or partner claims another agricultural homestead in Minnesota; and 44.3    (4) that shareholder, member, or partner does not live farther than four townships 44.4or cities, or a combination of four townships or cities, from the agricultural property new text begin new text end 44.5 new text begin lives in the county where the agricultural property is located or in a county contiguous to new text end 44.6 new text begin the county where the property is located new text end . 44.7    Homestead treatment applies under this paragraph for property leased to a family 44.8farm corporation, joint farm venture, limited liability company, or partnership operating a 44.9family farm if legal title to the property is in the name of an individual who is a member, 44.10shareholder, or partner in the entity. 44.11    (h) To be eligible for the special agricultural homestead under this subdivision, an 44.12initial full application must be submitted to the county assessor where the property is 44.13located. Owners and the persons who are actively farming the property shall be required 44.14to complete only a one-page abbreviated version of the application in each subsequent 44.15year provided that none of the following items have changed since the initial application: 44.16    (1) the day-to-day operation, administration, and financial risks remain the same; 44.17    (2) the owners and the persons actively farming the property continue to live within 44.18the four townships or city criteria new text begin the county or a contiguous county new text end and are Minnesota 44.19residents; 44.20    (3) the same operator of the agricultural property is listed with the Farm Service 44.21Agency; 44.22    (4) a Schedule F or equivalent income tax form was filed for the most recent year; 44.23    (5) the property's acreage is unchanged; and 44.24    (6) none of the property's acres have been enrolled in a federal or state farm program 44.25since the initial application. 44.26    The owners and any persons who are actively farming the property must include 44.27the appropriate Social Security numbers, and sign and date the application. If any of the 44.28specified information has changed since the full application was filed, the owner must 44.29notify the assessor, and must complete a new application to determine if the property 44.30continues to qualify for the special agricultural homestead. The commissioner of revenue 44.31shall prepare a standard reapplication form for use by the assessors. 44.32    (i) Agricultural land and buildings that were class 2a homestead property under 44.33section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain 44.34classified agricultural homesteads for subsequent assessments if: 44.35    (1) the property owner abandoned the homestead dwelling located on the agricultural 44.36homestead as a result of damage caused by the August 2007 floods; 45.1    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, 45.2Steele, Wabasha, or Winona; 45.3    (3) the agricultural land and buildings remain under the same ownership for the 45.4current assessment year as existed for the 2007 assessment year; 45.5    (4) the dwelling occupied by the owner is located in this state and is within 50 miles 45.6of one of the parcels of agricultural land that is owned by the taxpayer; and 45.7    (5) the owner notifies the county assessor that the relocation was due to the August 45.82007 floods, and the owner furnishes the assessor any information deemed necessary by 45.9the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 45.10owner must notify the assessor by December 1, 2008. Further notifications to the assessor 45.11are not required if the property continues to meet all the requirements in this paragraph 45.12and any dwellings on the agricultural land remain uninhabited. 45.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2010 and new text end 45.14 new text begin thereafter, except that the provision extending the homestead to brothers and sisters is new text end 45.15 new text begin effective for taxes payable in 2009 and thereafter. new text end 45.16    Sec. 21. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws 45.172008, chapter 154, article 2, section 12, is amended to read: 45.18    Subd. 23. Class 2. (a) Class 2a property is agricultural land including any 45.19improvements new text begin An agricultural homestead consists of class 2a agricultural land new text end that is 45.20homesteaded new text begin , along with any class 2b rural vacant land that is contiguous to the class 2a new text end 45.21 new text begin land new text end . The market value of the house and garage and immediately surrounding one acre 45.22of land has the same class rates as class 1a new text begin or 1b new text end property under subdivision 22. The 45.23value of the remaining land including improvements up to the first tier valuation limit of 45.24agricultural homestead property has a net class rate of 0.55 new text begin 0.5 new text end percent of market value. 45.25The remaining property over the first tier has a class rate of one percent of market value. 45.26For purposes of this subdivision, the "first tier valuation limit of agricultural homestead 45.27property" and "first tier" means the limit certified under section 273.11, subdivision 23. 45.28    (b) new text begin Class 2a agricultural land consists of parcels of property, or portions thereof, new text end 45.29 new text begin that are agricultural land and buildings. Class 2a property has a net class rate of one new text end 45.30 new text begin percent of market value, unless it is part of an agricultural homestead under paragraph new text end 45.31 new text begin (a). Class 2a property may contain an incidental amount of property that would otherwise new text end 45.32 new text begin be classified as 2b, including but not limited to sloughs, wooded wind shelters, acreage new text end 45.33 new text begin abutting ditches, and other similar land impractical for the assessor to value separately new text end 45.34 new text begin from the rest of the property. new text end 46.1     new text begin (c) new text end Class 2b property is (1) new text begin rural vacant land consists of parcels of property, new text end 46.2 new text begin or portions thereof, that are unplatted new text end real estate, rural in character and new text begin not used for new text end 46.3 new text begin agricultural purposes, including land new text end used exclusively for growing trees for timber, 46.4lumber, and wood and wood products; (2) real estate that is not improved with a structure 46.5and is used exclusively for growing trees for timber, lumber, and wood and wood products, 46.6if the owner has participated or is participating in a cost-sharing program for afforestation, 46.7reforestation, or timber stand improvement on that particular property, administered or 46.8coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead 46.9agricultural land; or (4) a landing area or public access area of a privately owned public use 46.10airport new text begin , provided that the presence of a minor, ancillary nonresidential structure as defined new text end 46.11 new text begin by the commissioner of revenue does not disqualify the property from classification new text end 46.12 new text begin under this paragraph and provided that any parcel improved with a structure that is not a new text end 46.13 new text begin minor, ancillary nonresidential structure may be split-classified, provided that the acreage new text end 46.14 new text begin assigned to the split parcel with the structure is at least 20 acres new text end . Class 2b property has 46.15a net class rate of one percent of market value, except that unplatted property described 46.16in clause (1) or (2) has a net class rate of .65 percent if it consists new text begin unless it is part of an new text end 46.17 new text begin agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d). new text end 46.18     new text begin (d) Class 2c managed forest land consists new text end of no less than ten new text begin 20 new text end and no more than 46.191,920 acres new text begin statewide per taxpayer new text end and new text begin that new text end is being managed under a forest management 46.20plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable 46.21forest resource management incentive program new text begin . It has a class rate of .65 percent new text end , provided 46.22that the owner of the property must apply to the assessor annually to receive the reduced 46.23class rate and provide the information required by the assessor to verify that the property 46.24qualifies for the reduced rate. new text begin The commissioner of natural resources must concur that the new text end 46.25 new text begin land is qualified. The commissioner of natural resources shall annually provide county new text end 46.26 new text begin assessors verification information on a timely basis. new text end 46.27    (c) new text begin (e) new text end Agricultural land as used in this section means contiguous acreage of 46.28ten acres or more, new text begin property new text end used during the preceding year for agricultural purposes. 46.29"Agricultural purposes" as used in this section means the raising or new text begin , new text end cultivation new text begin , drying, new text end 46.30 new text begin or storage new text end of agricultural products new text begin for sale, or the storage of machinery or equipment new text end 46.31 new text begin used in support of agricultural production new text end . new text begin For a property to be classified as agricultural new text end 46.32 new text begin based only on the drying or storage of agricultural products, the products being dried or new text end 46.33 new text begin stored must have been produced by the same farm entity as the entity operating the drying new text end 46.34 new text begin or storage facility. new text end "Agricultural purposes" also includes enrollment in the Reinvest in 46.35Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation 46.36Reserve Program as contained in Public Law 99-198 if the property was classified as 47.1agricultural (i) under this subdivision for the assessment year 2002 or (ii) in the year prior 47.2to its enrollment. Contiguous acreage on the same parcel, or contiguous acreage on an 47.3immediately adjacent parcel under the same ownership, may also qualify as agricultural 47.4land, but only if it is pasture, timber, waste, unusable wild land, or land included in state 47.5or federal farm programs. Agricultural classification for property shall be determined 47.6excluding the house, garage, and immediately surrounding one acre of land, and shall not 47.7be based upon the market value of any residential structures on the parcel or contiguous 47.8parcels under the same ownership. 47.9    (d) new text begin (f) new text end Real estate new text begin of less than five acres new text end , excluding the house, garage, and 47.10immediately surrounding one acre of land, of less than ten acres which is exclusively and 47.11intensively used for raising or cultivating agricultural products, shall be considered as 47.12agricultural land new text begin qualifies as class 2a if: new text end 47.13     new text begin (i) the entire parcel is tilled or pastured to produce an agricultural product for sale in new text end 47.14 new text begin three of the last five years; new text end 47.15     new text begin (ii) the acres are used primarily for drying or storage of grain or storage of machinery new text end 47.16 new text begin or equipment used to support agricultural activities on other parcels of property operated new text end 47.17 new text begin by the same farming entity; new text end 47.18     new text begin (iii) the land mass contains a nursery, provided only those acres used to produce new text end 47.19 new text begin nursery stock are considered agricultural land; new text end 47.20     new text begin (iv) the parcel is used exclusively as a livestock or poultry confinement process; or new text end 47.21     new text begin (v) the parcel is used primarily for market farming; for purposes of this paragraph, new text end 47.22 new text begin "market farming" means the cultivation of one or more fruits or vegetables or production new text end 47.23 new text begin of animal or other agricultural products for sale to local markets by the farmer or an new text end 47.24 new text begin organization with which the farmer is affiliated new text end . 47.25     new text begin (g) new text end Land shall be classified as agricultural even if all or a portion of the agricultural 47.26use of that property is the leasing to, or use by another person for agricultural purposes. 47.27    Classification under this subdivision is not determinative for qualifying under 47.28section . 47.29     new text begin (h) new text end The property classification under this section supersedes, for property tax 47.30purposes only, any locally administered agricultural policies or land use restrictions that 47.31define minimum or maximum farm acreage. 47.32    (e) new text begin (i) new text end The term "agricultural products" as used in this subdivision includes 47.33production for sale of: 47.34    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 47.35animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 47.36bees, and apiary products by the owner; 48.1    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 48.2for agricultural use; 48.3    (3) the commercial boarding of horses if the boarding is done in conjunction with 48.4raising or cultivating agricultural products as defined in clause (1); 48.5    (4) property which is owned and operated by nonprofit organizations used for 48.6equestrian activities, excluding racing; 48.7    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 48.8under section 97A.115; 48.9    (6) insects primarily bred to be used as food for animals; 48.10    (7) trees, grown for sale as a crop, new text begin including short rotation woody crops, new text end and not 48.11sold for timber, lumber, wood, or wood products; and 48.12    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 48.13Department of Agriculture under chapter 28A as a food processor. 48.14    (f) new text begin (j) new text end If a parcel used for agricultural purposes is also used for commercial or 48.15industrial purposes, including but not limited to: 48.16    (1) wholesale and retail sales; 48.17    (2) processing of raw agricultural products or other goods; 48.18    (3) warehousing or storage of processed goods; and 48.19    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 48.20and (3), 48.21the assessor shall classify the part of the parcel used for agricultural purposes as class 48.221b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 48.23use. The grading, sorting, and packaging of raw agricultural products for first sale is 48.24considered an agricultural purpose. A greenhouse or other building where horticultural 48.25or nursery products are grown that is also used for the conduct of retail sales must be 48.26classified as agricultural if it is primarily used for the growing of horticultural or nursery 48.27products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 48.28those products. Use of a greenhouse or building only for the display of already grown 48.29horticultural or nursery products does not qualify as an agricultural purpose. 48.30    The assessor shall determine and list separately on the records the market value of 48.31the homestead dwelling and the one acre of land on which that dwelling is located. If any 48.32farm buildings or structures are located on this homesteaded acre of land, their market 48.33value shall not be included in this separate determination. 48.34    (g) new text begin (k) Class 2d airport landing area consists of a landing area or public access new text end 48.35 new text begin area of a privately owned public use airport. new text end To qualify for classification under new text begin this new text end 48.36paragraph (b), clause (4), a privately owned public use airport must be licensed as a public 49.1airport under section 360.018. For purposes of new text begin this new text end paragraph (b), clause (4), "landing 49.2area" means that part of a privately owned public use airport properly cleared, regularly 49.3maintained, and made available to the public for use by aircraft and includes runways, 49.4taxiways, aprons, and sites upon which are situated landing or navigational aids. A 49.5landing area also includes land underlying both the primary surface and the approach 49.6surfaces that comply with all of the following: 49.7    (i) the land is properly cleared and regularly maintained for the primary purposes of 49.8the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 49.9facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 49.10    (ii) the land is part of the airport property; and 49.11    (iii) the land is not used for commercial or residential purposes. 49.12The land contained in a landing area under new text begin this new text end paragraph (b), clause (4), must be described 49.13and certified by the commissioner of transportation. The certification is effective until it 49.14is modified, or until the airport or landing area no longer meets the requirements of new text begin this new text end 49.15paragraph (b), clause (4). For purposes of new text begin this new text end paragraph (b), clause (4), "public access 49.16area" means property used as an aircraft parking ramp, apron, or storage hangar, or an 49.17arrival and departure building in connection with the airport. 49.18 new text begin EFFECTIVE DATE. new text end new text begin The portion of this section reducing the agricultural class rate, new text end 49.19 new text begin and expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural new text end 49.20 new text begin products" in paragraph (h), is effective for taxes payable in 2009 and thereafter. The new text end 49.21 new text begin remainder of the section is effective for taxes payable in 2010 and thereafter. new text end 49.22    Sec. 22. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read: 49.23    Subd. 24. Class 3. (a) Commercial and industrial property and utility real and 49.24personal property is class 3a. 49.25    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility 49.26real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent 49.27of the remaining market value. In the case of contiguous parcels of property owned by the 49.28same person or entity, only the value equal to the first-tier value of the contiguous parcels 49.29qualifies for the reduced class rate, except that contiguous parcels owned by the same 49.30person or entity shall be eligible for the first-tier value class rate on each separate business 49.31operated by the owner of the property, provided the business is housed in a separate 49.32structure. For the purposes of this subdivision, the first tier means the first $150,000 of 49.33market value. Real property owned in fee by a utility for transmission line right-of-way 49.34shall be classified at the class rate for the higher tier. 50.1    For purposes of this subdivision, parcels are considered to be contiguous even if 50.2they are separated from each other by a road, street, waterway, or other similar intervening 50.3type of property. Connections between parcels that consist of power lines or pipelines do 50.4not cause the parcels to be contiguous. Property owners who have contiguous parcels of 50.5property that constitute separate businesses that may qualify for the first-tier class rate shall 50.6notify the assessor by July 1, for treatment beginning in the following taxes payable year. 50.7    (2) All Personal property that is: (i) part of an electric generation, transmission, or 50.8distribution system; or (ii) new text begin , including tools, implements, and machinery, has a class rate new text end 50.9 new text begin of 2.4 percent for taxes payable in 2009, and 2.8 percent for taxes payable in 2010, and new text end 50.10 new text begin thereafter. new text end 50.11     new text begin (3) Personal property that is either: (i) new text end part of a pipeline system transporting 50.12or distributing water, gas, crude oil, or petroleum products; and (iii) not described in 50.13clause (3), and all new text begin , including tools, implements, and machinery, or (ii) part of an electric new text end 50.14 new text begin transmission or distribution system, including tools, implements, and machinery, has a new text end 50.15 new text begin class rate of 2.0 percent for taxes payable in 2009 and thereafter. new text end 50.16     new text begin (4) new text end Railroad operating property has a class rate as provided under clause (1) for 50.17the first tier of market value and the remaining market value. In the case of multiple 50.18parcels in one county that are owned by one person or entity, only one first tier amount 50.19is eligible for the reduced rate. 50.20    (3) The entire market value of personal property that is: (i) tools, implements, and 50.21machinery of an electric generation, transmission, or distribution system; (ii) tools, 50.22implements, and machinery of a pipeline system transporting or distributing water, gas, 50.23crude oil, or petroleum products; or (iii) the new text begin (5) Personal property consisting of new text end mains 50.24and pipes used in the distribution of steam or hot or chilled water for heating or cooling 50.25buildings, has a class rate as provided under clause (1) for the remaining market value 50.26in excess of the first tier. 50.27    (b) Employment property defined in section 469.166, during the period provided 50.28in section 469.170, shall constitute class 3b. The class rates for class 3b property are 50.29determined under paragraph (a). 50.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 50.31 new text begin thereafter. new text end 50.32    Sec. 23. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws 50.332008, chapter 154, article 2, section 13, is amended to read: 50.34    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 50.35units and used or held for use by the owner or by the tenants or lessees of the owner 51.1as a residence for rental periods of 30 days or more, excluding property qualifying for 51.2class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 51.3than hospitals exempt under section 272.02, and contiguous property used for hospital 51.4purposes, without regard to whether the property has been platted or subdivided. The 51.5market value of class 4a property has a class rate of 1.25 percent. 51.6    (b) Class 4b includes: 51.7    (1) residential real estate containing less than four units that does not qualify as class 51.84bb, other than seasonal residential recreational property; 51.9    (2) manufactured homes not classified under any other provision; 51.10    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 51.11farm classified under subdivision 23, paragraph (b) containing two or three units; and 51.12    (4) new text begin is new text end unimproved property that is classified residential as determined under 51.13subdivision 33. 51.14    The market value of class 4b property has a class rate of 1.25 percent. 51.15    (c) Class 4bb includes: 51.16    (1) nonhomestead residential real estate containing one unit new text begin up to three units new text end , other 51.17than seasonal residential recreational property; and 51.18    (2) a single family dwelling, garage, and surrounding one acre of property on a 51.19nonhomestead farm classified under subdivision 23, paragraph (b) new text begin , containing up to three new text end 51.20 new text begin units; and new text end 51.21     new text begin (3) manufactured homes not classified under any other provision new text end . 51.22    Class 4bb property has the same class rates as class 1a property under subdivision 22. 51.23    Property that has been classified as seasonal residential recreational property at 51.24any time during which it has been owned by the current owner or spouse of the current 51.25owner does not qualify for class 4bb. 51.26    (d) Class 4c property includes: 51.27    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 51.28(b), clause (1), real and personal property devoted to temporary and seasonal residential 51.29occupancy for recreation purposes, including real and personal property devoted to 51.30temporary and seasonal residential occupancy for recreation purposes and not devoted to 51.31commercial purposes for more than 250 days in the year preceding the year of assessment. 51.32For purposes of this clause, property is devoted to a commercial purpose on a specific 51.33day if any portion of the property is used for residential occupancy, and a fee is charged 51.34for residential occupancy. Class 4c property must contain three or more rental units. A 51.35"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 51.36camping site equipped with water and electrical hookups for recreational vehicles. Class 52.14c property must provide recreational activities such as renting ice fishing houses, boats 52.2and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 52.3services, launch services, or guide services; or sell bait and fishing tackle. A camping 52.4pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c 52.5regardless of the term of the rental agreement, as long as the use of the camping pad 52.6does not exceed 250 days. In order for a property to be classified as class 4c, seasonal 52.7residential recreational for commercial purposes, at least 40 percent of the annual gross 52.8lodging receipts related to the property must be from business conducted during 90 52.9consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests 52.10during the year must be for periods of at least two consecutive nights; or (ii) at least 20 52.11percent of the annual gross receipts must be from charges for rental of fish houses, boats 52.12and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 52.13services, launch services, and guide services, or the sale of bait and fishing tackle. For 52.14purposes of this determination, a paid booking of five or more nights shall be counted as 52.15two bookings. Class 4c also includes commercial use real property used exclusively 52.16for recreational purposes in conjunction with class 4c property devoted to temporary 52.17and seasonal residential occupancy for recreational purposes, up to a total of two acres, 52.18provided the property is not devoted to commercial recreational use for more than 250 52.19days in the year preceding the year of assessment and is located within two miles of the 52.20class 4c property with which it is used. Owners of real and personal property devoted 52.21to temporary and seasonal residential occupancy for recreation purposes and all or a 52.22portion of which was devoted to commercial purposes for not more than 250 days in the 52.23year preceding the year of assessment desiring classification as class 4c, must submit a 52.24declaration to the assessor designating the cabins or units occupied for 250 days or less in 52.25the year preceding the year of assessment by January 15 of the assessment year. Those 52.26cabins or units and a proportionate share of the land on which they are located must be 52.27designated class 4c as otherwise provided. The remainder of the cabins or units and 52.28a proportionate share of the land on which they are located will be designated as class 52.293a. The owner of property desiring designation as class 4c property must provide guest 52.30registers or other records demonstrating that the units for which class 4c designation is 52.31sought were not occupied for more than 250 days in the year preceding the assessment if 52.32so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 52.33(4) conference center or meeting room, and (5) other nonresidential facility operated on a 52.34commercial basis not directly related to temporary and seasonal residential occupancy for 52.35recreation purposes does not qualify for class 4c; 52.36    (2) qualified property used as a golf course if: 53.1    (i) it is open to the public on a daily fee basis. It may charge membership fees or 53.2dues, but a membership fee may not be required in order to use the property for golfing, 53.3and its green fees for golfing must be comparable to green fees typically charged by 53.4municipal courses; and 53.5    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 53.6    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 53.7with the golf course is classified as class 3a property; 53.8    (3) real property up to a maximum of three acres of land owned and used by a 53.9nonprofit community service oriented organization and that is not used for residential 53.10purposes on either a temporary or permanent basis, qualifies for class 4c provided that 53.11it meets either of the following: 53.12    (i) the property is not used for a revenue-producing activity for more than six days 53.13in the calendar year preceding the year of assessment; or 53.14    (ii) the organization makes annual charitable contributions and donations at least 53.15equal to the property's previous year's property taxes and the property is allowed to be 53.16used for public and community meetings or events for no charge, as appropriate to the 53.17size of the facility. 53.18    For purposes of this clause, 53.19    (A) "charitable contributions and donations" has the same meaning as lawful 53.20gambling purposes under section 349.12, subdivision 25, excluding those purposes 53.21relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 53.22    (B) "property taxes" excludes the state general tax; 53.23    (C) a "nonprofit community service oriented organization" means any corporation, 53.24society, association, foundation, or institution organized and operated exclusively for 53.25charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 53.26federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue 53.27Code of 1986, as amended through December 31, 1990; and 53.28    (D) "revenue-producing activities" shall include but not be limited to property or that 53.29portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 53.30liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 53.31alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 53.32insurance business, or office or other space leased or rented to a lessee who conducts a 53.33for-profit enterprise on the premises. 53.34Any portion of the property qualifying under item (i) which is used for revenue-producing 53.35activities for more than six days in the calendar year preceding the year of assessment 53.36shall be assessed as class 3a. The use of the property for social events open exclusively 54.1to members and their guests for periods of less than 24 hours, when an admission is 54.2not charged nor any revenues are received by the organization shall not be considered a 54.3revenue-producing activity. 54.4    The organization shall maintain records of its charitable contributions and donations 54.5and of public meetings and events held on the property and make them available upon 54.6request any time to the assessor to ensure eligibility. An organization meeting the 54.7requirement under item (ii) must file an application by May 1 with the assessor for 54.8eligibility for the current year's assessment. The commissioner shall prescribe a uniform 54.9application form and instructions; 54.10    (4) postsecondary student housing of not more than one acre of land that is owned by 54.11a nonprofit corporation organized under chapter 317A and is used exclusively by a student 54.12cooperative, sorority, or fraternity for on-campus housing or housing located within two 54.13miles of the border of a college campus; 54.14    (5) manufactured home parks as defined in section 327.14, subdivision 3; 54.15    (6) real property that is actively and exclusively devoted to indoor fitness, health, 54.16social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 54.17and is located within the metropolitan area as defined in section 473.121, subdivision 2; 54.18    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 54.19under section 272.01, subdivision 2, and the land on which it is located, provided that: 54.20    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 54.21Airports Commission, or group thereof; and 54.22    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 54.23leased premise, prohibits commercial activity performed at the hangar. 54.24    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 54.25be filed by the new owner with the assessor of the county where the property is located 54.26within 60 days of the sale; 54.27    (8) a privately owned noncommercial aircraft storage hangar not exempt under 54.28section 272.01, subdivision 2, and the land on which it is located, provided that: 54.29    (i) the land abuts a public airport; and 54.30    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 54.31agreement restricting the use of the premises, prohibiting commercial use or activity 54.32performed at the hangar; and 54.33    (9) residential real estate, a portion of which is used by the owner for homestead 54.34purposes, and that is also a place of lodging, if all of the following criteria are met: 54.35    (i) rooms are provided for rent to transient guests that generally stay for periods 54.36of 14 or fewer days; 55.1    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 55.2in the basic room rate; 55.3    (iii) meals are not provided to the general public except for special events on fewer 55.4than seven days in the calendar year preceding the year of the assessment; and 55.5    (iv) the owner is the operator of the property. 55.6The market value subject to the 4c classification under this clause is limited to five rental 55.7units. Any rental units on the property in excess of five, must be valued and assessed as 55.8class 3a. The portion of the property used for purposes of a homestead by the owner must 55.9be classified as class 1a property under subdivision 22. 55.10    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 55.11parcel of seasonal residential recreational property not used for commercial purposes has 55.12the same class rates as class 4bb property, (ii) manufactured home parks assessed under 55.13clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 55.14residential recreational property has a class rate of one percent for the first $500,000 of 55.15market value, and 1.25 percent for the remaining market value, (iv) the market value of 55.16property described in clause (4) has a class rate of one percent, (v) the market value of 55.17property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that 55.18portion of the market value of property in clause (9) qualifying for class 4c property 55.19has a class rate of 1.25 percent. 55.20    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 55.21by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 55.22of the units in the building qualify as low-income rental housing units as certified under 55.23section 273.128, subdivision 3, only the proportion of qualifying units to the total number 55.24of units in the building qualify for class 4d. The remaining portion of the building shall be 55.25classified by the assessor based upon its use. Class 4d also includes the same proportion of 55.26land as the qualifying low-income rental housing units are to the total units in the building. 55.27For all properties qualifying as class 4d, the market value determined by the assessor must 55.28be based on the normal approach to value using normal unrestricted rents. 55.29    Class 4d property has a class rate of 0.75 percent. 55.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2008 and new text end 55.31 new text begin thereafter, and for taxes payable in 2009 and thereafter. new text end 55.32    Sec. 24. Minnesota Statutes 2007 Supplement, section 273.1393, is amended to read: 55.33273.1393 COMPUTATION OF NET PROPERTY TAXES. 56.1    Notwithstanding any other provisions to the contrary, "net" property taxes are 56.2determined by subtracting the credits in the order listed from the gross tax: 56.3    (1) disaster credit as provided in sections 273.1231 to 273.1235; 56.4    (2) powerline credit as provided in section 273.42; 56.5    (3) agricultural preserves credit as provided in section 473H.10; 56.6    (4) enterprise zone credit as provided in section 469.171; 56.7    (5) disparity reduction credit; 56.8    (6) conservation tax credit as provided in section 273.119; 56.9    (7) homestead and agricultural credits as provided in section 273.1384; 56.10    (8) taconite homestead credit as provided in section 273.135; and 56.11    (9) supplemental homestead credit as provided in section 273.1391 new text begin ; and new text end 56.12     new text begin (10) bovine tuberculosis management credit as provided in section 273.113 new text end . 56.13    The combination of all property tax credits must not exceed the gross tax amount. 56.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 56.15 new text begin thereafter. new text end 56.16    Sec. 25. Minnesota Statutes 2006, section 274.14, is amended to read: 56.17274.14 LENGTH OF SESSION; RECORD. 56.18    The board may meet on any ten consecutive meeting days in June, after the second 56.19Friday in June. The actual meeting dates must be contained on the valuation notices 56.20mailed to each property owner in the county as provided in section 273.121. For this 56.21purpose, "meeting days" is defined as any day of the week excluding Saturday and Sunday. new text begin new text end 56.22 new text begin At the board's discretion, "meeting days" may include Saturday. new text end No action taken by the 56.23county board of review after June 30 is valid, except for corrections permitted in sections 56.24273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings 56.25and orders of the board. The record must be published like other proceedings of county 56.26commissioners. A copy of the published record must be sent to the commissioner of 56.27revenue, with the abstract of assessment required by section 274.16. 56.28     new text begin For counties that conduct either regular board of review meetings or open book new text end 56.29 new text begin meetings, at least one of the meeting days must include a meeting that does not end new text end 56.30 new text begin before 7:00 p.m. For counties that require taxpayer appointments for the board of review, new text end 56.31 new text begin appointments must include some available times that extend until at least 7:00 p.m. The new text end 56.32 new text begin county may have a Saturday meeting in lieu of, or in addition to, the extended meeting new text end 56.33 new text begin times under this paragraph. new text end 57.1    Sec. 26. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 1, is 57.2amended to read: 57.3    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 57.4contrary, on or before September 15 new text begin 1 new text end , each taxing authority, other than a school district, 57.5shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 57.6the case of a town, the final property tax levy for taxes payable in the following year. 57.7    (b) On or before September 30 new text begin 15 new text end , each school district that has not mutually agreed 57.8with its home county to extend this date shall certify to the county auditor the proposed 57.9property tax levy for taxes payable in the following year. Each school district that has 57.10agreed with its home county to delay the certification of its proposed property tax levy 57.11must certify its proposed property tax levy for the following year no later than October 57.127. The school district shall certify the proposed levy as: 57.13    (1) a specific dollar amount by school district fund, broken down between 57.14voter-approved and non-voter-approved levies and between referendum market value 57.15and tax capacity levies; or 57.16    (2) the maximum levy limitation certified by the commissioner of education 57.17according to section 126C.48, subdivision 1. 57.18    (c) If the board of estimate and taxation or any similar board that establishes 57.19maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 57.20property tax levies for funds under its jurisdiction by charter to the county auditor by 57.21September 15 new text begin 1 new text end , the city shall be deemed to have certified its levies for those taxing 57.22jurisdictions. 57.23    (d) For purposes of this section, "taxing authority" includes all home rule and 57.24statutory cities, towns, counties, school districts, and special taxing districts as defined 57.25in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 57.26136D, joint powers boards established under sections 123A.44 to 123A.446, and Common 57.27School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 57.28districts for purposes of this section. 57.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 57.30 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 57.31    Sec. 27. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 1a, 57.32is amended to read: 57.33    Subd. 1a. Overlapping jurisdictions. In the case of a taxing authority lying in two 57.34or more counties, the home county auditor shall certify the proposed levy and the proposed 57.35local tax rate to the other county auditor by October new text begin September new text end 5, unless the home county 58.1has agreed to delay the certification of its proposed property tax levy, in which case the 58.2home county auditor shall certify the proposed levy and the proposed local tax rate to the 58.3other county auditor by October 10. The home county auditor must estimate the levy or 58.4rate in preparing the notices required in subdivision 3, if the other county has not certified 58.5the appropriate information. If requested by the home county auditor, the other county 58.6auditor must furnish an estimate to the home county auditor. 58.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 58.8 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 58.9    Sec. 28. Minnesota Statutes 2006, section 275.065, subdivision 1c, is amended to read: 58.10    Subd. 1c. Levy; shared, merged, consolidated services. If two or more taxing 58.11authorities are in the process of negotiating an agreement for sharing, merging, or 58.12consolidating services between those taxing authorities at the time the proposed levy is to 58.13be certified under subdivision 1, each taxing authority involved in the negotiation shall 58.14certify its total proposed levy as provided in that subdivision, including a notification to the 58.15county auditor of the specific service involved in the agreement which is not yet finalized. 58.16The affected taxing authorities may amend their proposed levies under subdivision 1 until 58.17October new text begin September new text end 10 for levy amounts relating only to the specific service involved. 58.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 58.19 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 58.20    Sec. 29. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 58.21to read: 58.22     new text begin Subd. 1d. new text end new text begin Failure to certify proposed levy. new text end new text begin If a taxing authority fails to certify new text end 58.23 new text begin its proposed levy by the due dates specified under subdivisions 1, 1a, and 1c, the county new text end 58.24 new text begin auditor shall use the authority's previous year's final levy under section 275.07, subdivision new text end 58.25 new text begin 1, for purposes of determining its proposed property tax notices and public advertisements new text end 58.26 new text begin under this section. new text end 58.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices prepared in 2008, for new text end 58.28 new text begin property taxes payable in 2009 and thereafter. new text end 58.29    Sec. 30. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 3, is 58.30amended to read: 58.31    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 58.32and the county treasurer shall deliver after November 10 new text begin October 15 new text end and on or before 59.1November new text begin October new text end 24 each year, by first class mail to each taxpayer at the address listed 59.2on the county's current year's assessment roll, a notice of proposed property taxes. 59.3    (b) The commissioner of revenue shall prescribe the form of the notice. 59.4    (c) The notice must inform taxpayers that it contains the amount of property taxes 59.5each taxing authority proposes to collect for taxes payable the following year. In the case 59.6of a town, or in the case of the state general tax, the final tax amount will be its proposed 59.7tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, 59.8the notice must clearly state that each taxing authority, including regional library districts 59.9established under section 134.201, and including the metropolitan taxing districts as 59.10defined in paragraph (i), but excluding all other special taxing districts and towns, will 59.11hold a public meeting to receive public testimony on the proposed budget and proposed or 59.12final property tax levy, or, in case of a school district, on the current budget and proposed 59.13property tax levy. It must clearly state the time and place of each taxing authority's 59.14meeting, a telephone number for the taxing authority that taxpayers may call if they have 59.15questions related to the notice, and an address where comments will be received by mail. 59.16    (d) The notice must state for each parcel: 59.17    (1) the market value of the property as determined under section 273.11, and used 59.18for computing property taxes payable in the following year and for taxes payable in the 59.19current year as each appears in the records of the county assessor on November new text begin October new text end 59.201 of the current year; and, in the case of residential property, whether the property is 59.21classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the 59.22years to which the market values apply and that the values are final values; 59.23    (2) the items listed below, shown separately by county, city or town, and state general 59.24tax, net of the residential and agricultural homestead credit under section 273.1384, voter 59.25approved school levy, other local school levy, and the sum of the special taxing districts, 59.26and as a total of all taxing authorities: 59.27    (i) the actual tax for taxes payable in the current year; and 59.28    (ii) the proposed tax amount. 59.29    If the county levy under clause (2) includes an amount for a lake improvement 59.30district as defined under sections 103B.501 to 103B.581, the amount attributable for that 59.31purpose must be separately stated from the remaining county levy amount. 59.32    In the case of a town or the state general tax, the final tax shall also be its proposed 59.33tax unless the town changes its levy at a special town meeting under section 365.52. If a 59.34school district has certified under section 126C.17, subdivision 9, that a referendum will 59.35be held in the school district at the November general election, the county auditor must 59.36note next to the school district's proposed amount that a referendum is pending and that, if 60.1approved by the voters, the tax amount may be higher than shown on the notice. In the 60.2case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 60.3listed separately from the remaining amount of the city's levy. In the case of the city of 60.4St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 60.5remaining amount of the city's levy. In the case of Ramsey County, any amount levied 60.6under section 134.07 may be listed separately from the remaining amount of the county's 60.7levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 60.8under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 60.9proposed tax levy on the tax capacity subject to the areawide tax must each be stated 60.10separately and not included in the sum of the special taxing districts; and 60.11    (3) the increase or decrease between the total taxes payable in the current year and 60.12the total proposed taxes, expressed as a percentage. 60.13    For purposes of this section, the amount of the tax on homesteads qualifying under 60.14the senior citizens' property tax deferral program under chapter 290B is the total amount 60.15of property tax before subtraction of the deferred property tax amount. 60.16    (e) The notice must clearly state that the proposed or final taxes do not include 60.17the following: 60.18    (1) special assessments; 60.19    (2) levies approved by the voters after the date the proposed taxes are certified, 60.20including bond referenda and school district levy referenda; 60.21    (3) a levy limit increase approved by the voters by the first Tuesday after the first 60.22Monday in November of the levy year as provided under section 275.73; 60.23    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 60.24occurring after the date the proposed taxes are certified; 60.25    (5) amounts necessary to pay tort judgments against the taxing authority that become 60.26final after the date the proposed taxes are certified; and 60.27    (6) the contamination tax imposed on properties which received market value 60.28reductions for contamination. 60.29    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 60.30the county treasurer to deliver the notice as required in this section does not invalidate the 60.31proposed or final tax levy or the taxes payable pursuant to the tax levy. 60.32    (g) If the notice the taxpayer receives under this section lists the property as 60.33nonhomestead, and satisfactory documentation is provided to the county assessor by the 60.34applicable deadline, and the property qualifies for the homestead classification in that 60.35assessment year, the assessor shall reclassify the property to homestead for taxes payable 60.36in the following year. 61.1    (h) In the case of class 4 residential property used as a residence for lease or rental 61.2periods of 30 days or more, the taxpayer must either: 61.3    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 61.4renter, or lessee; or 61.5    (2) post a copy of the notice in a conspicuous place on the premises of the property. 61.6    The notice must be mailed or posted by the taxpayer by November new text begin October new text end 27 or 61.7within three days of receipt of the notice, whichever is later. A taxpayer may notify the 61.8county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises 61.9to which the notice must be mailed in order to fulfill the requirements of this paragraph. 61.10    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special 61.11taxing districts" means the following taxing districts in the seven-county metropolitan area 61.12that levy a property tax for any of the specified purposes listed below: 61.13    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 61.14473.446 , 473.521, 473.547, or 473.834; 61.15    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 61.16and 61.17    (3) Metropolitan Mosquito Control Commission under section 473.711. 61.18    For purposes of this section, any levies made by the regional rail authorities in the 61.19county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 61.20398A shall be included with the appropriate county's levy and shall be discussed at that 61.21county's public hearing. 61.22    (j) The governing body of a county, city, or school district may, with the consent 61.23of the county board, include supplemental information with the statement of proposed 61.24property taxes about the impact of state aid increases or decreases on property tax 61.25increases or decreases and on the level of services provided in the affected jurisdiction. 61.26This supplemental information may include information for the following year, the current 61.27year, and for as many consecutive preceding years as deemed appropriate by the governing 61.28body of the county, city, or school district. It may include only information regarding: 61.29    (1) the impact of inflation as measured by the implicit price deflator for state and 61.30local government purchases; 61.31    (2) population growth and decline; 61.32    (3) state or federal government action; and 61.33    (4) other financial factors that affect the level of property taxation and local services 61.34that the governing body of the county, city, or school district may deem appropriate to 61.35include. 62.1    The information may be presented using tables, written narrative, and graphic 62.2representations and may contain instruction toward further sources of information or 62.3opportunity for comment. 62.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 62.5 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 62.6    Sec. 31. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 62.7to read: 62.8     new text begin Subd. 3b. new text end new text begin Supplemental notice of proposed levy increases. new text end new text begin (a) If a city that has a new text end 62.9 new text begin population of more than 2,500 or a county proposes a levy that would cause a levy plus new text end 62.10 new text begin aid increase greater than the threshold increase calculated under paragraph (b), it shall new text end 62.11 new text begin prepare and deliver by first class mail a supplemental proposed property tax notice to each new text end 62.12 new text begin property taxpayer in the taxing jurisdiction, as described in this subdivision. new text end 62.13     new text begin (b) The threshold increase in the proposed property tax levy plus aid is equal to new text end 62.14 new text begin the levy plus aid amount in the previous year, multiplied by the sum of (i) one percent, new text end 62.15 new text begin (ii) the percentage growth, if any, in the population in the taxing jurisdiction for the new text end 62.16 new text begin most recent available year, (iii) the percentage increase in the total market value in the new text end 62.17 new text begin taxing jurisdiction due to new construction of commercial and industrial property, and new text end 62.18 new text begin (iv) the percentage increase in the implicit price deflator for government consumption new text end 62.19 new text begin expenditures and gross investment for state and local governments as prepared by the new text end 62.20 new text begin United States Department of Commerce for the most recent 12-month period ending new text end 62.21 new text begin March of the levy year. new text end 62.22     new text begin (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy new text end 62.23 new text begin plus aid amount for the previous year, (2) its threshold levy plus aid increase indicating that new text end 62.24 new text begin this increase is calculated to reflect reasonable growth adjusting for population increases, new text end 62.25 new text begin increased demand from new business, and inflation, (3) the aid amount corresponding to new text end 62.26 new text begin the proposed levy year, (4) the proposed property tax increase, and (5) the amount the new text end 62.27 new text begin proposed increase in levy plus aid exceeds the threshold increase. The notice must contain new text end 62.28 new text begin a description of why the jurisdiction needs to raise property taxes above the threshold new text end 62.29 new text begin amount and how the taxing jurisdiction plans to spend the additional revenue. new text end 62.30     new text begin (d) For purposes of this subdivision, "aid" means county program aid under section new text end 62.31 new text begin 477A.0124 or local government aid under section 477A.013. new text end 62.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 62.33 new text begin thereafter. new text end 63.1    Sec. 32. Minnesota Statutes 2006, section 275.065, subdivision 6, is amended to read: 63.2    Subd. 6. Public hearing; adoption of budget and levy. (a) For purposes of this 63.3section, the following terms shall have the meanings given: 63.4    (1) "Initial hearing" means the first and primary hearing held to discuss the taxing 63.5authority's proposed budget and proposed property tax levy for taxes payable in the 63.6following year, or, for school districts, the current budget and the proposed property tax 63.7levy for taxes payable in the following year. 63.8    (2) "Continuation hearing" means a hearing held to complete the initial hearing, if 63.9the initial hearing is not completed on its scheduled date. 63.10    (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final 63.11property tax levy, and, in the case of taxing authorities other than school districts, the final 63.12budget, for taxes payable in the following year. 63.13    (b) Between November 29 new text begin 9 new text end and December 20 new text begin 1 new text end , the governing bodies of a city that 63.14has a population over 500, county, metropolitan special taxing districts as defined in 63.15subdivision 3, paragraph (i), and regional library districts shall each hold an initial public 63.16hearing to discuss and seek public comment on its final budget and property tax levy for 63.17taxes payable in the following year, and the governing body of the school district shall 63.18hold an initial public hearing to review its current budget and proposed property tax 63.19levy for taxes payable in the following year. The metropolitan special taxing districts 63.20shall be required to hold only a single joint initial public hearing, the location of which 63.21will be determined by the affected metropolitan agencies. A city, county, metropolitan 63.22special taxing district as defined in subdivision 3, paragraph (i), regional library district 63.23established under section 134.201, or school district is not required to hold a public 63.24hearing under this subdivision unless its proposed property tax levy for taxes payable 63.25in the following year, as certified under subdivision 1, has increased over its final 63.26property tax levy for taxes payable in the current year by a percentage that is greater 63.27than the percentage increase in the implicit price deflator for government consumption 63.28expenditures and gross investment for state and local governments prepared by the Bureau 63.29of Economic Analysts of the United States Department of Commerce for the 12-month 63.30period ending March 31 of the current year. 63.31    (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than 63.32Saturday. No initial hearing may be held on a Sunday. 63.33    (d) At the initial hearing under this subdivision, the percentage increase in property 63.34taxes proposed by the taxing authority, if any, and the specific purposes for which property 63.35tax revenues are being increased must be discussed. During the discussion, the governing 63.36body shall hear comments regarding a proposed increase and explain the reasons for the 64.1proposed increase. The public shall be allowed to speak and to ask questions. At the public 64.2hearing, the school district must also provide and discuss information on the distribution 64.3of its revenues by revenue source, and the distribution of its spending by program area. 64.4    (e) If the initial hearing is not completed on its scheduled date, the taxing authority 64.5must announce, prior to adjournment of the hearing, the date, time, and place for the 64.6continuation of the hearing. The continuation hearing must be held at least five business 64.7days but no more than 14 business days after the initial hearing. A continuation hearing 64.8may not be held later than December 20 except as provided in paragraphs (f) and (g). 64.9A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than 64.10Saturday. No continuation hearing may be held on a Sunday. 64.11    (f) The governing body of a county shall hold its initial hearing on the first new text begin second new text end 64.12Thursday in December new text begin November new text end each year, and may hold additional initial hearings on 64.13other dates before December 20 new text begin 1 new text end if necessary for the convenience of county residents. If 64.14the county needs a continuation of its hearing, the continuation hearing shall be held on 64.15the third Tuesday in December. If the third Tuesday in December falls on December 21, 64.16the county's continuation hearing shall be held on Monday, December 20 new text begin November new text end . 64.17    (g) The metropolitan special taxing districts shall hold a joint initial public hearing 64.18on the first Wednesday of December. A continuation hearing, if necessary, shall be held on 64.19the second Wednesday of December even if that second Wednesday is after December 10. 64.20    (h) The county auditor shall provide for the coordination of initial and continuation 64.21hearing dates for all school districts and cities within the county to prevent conflicts under 64.22clauses (i) and (j). 64.23    (i) By August 10, each school board and the board of the regional library district 64.24shall certify to the county auditors of the counties in which the school district or regional 64.25library district is located the dates on which it elects to hold its initial hearing and any 64.26continuation hearing. If a school board or regional library district does not certify these 64.27dates by August 10, the auditor will assign the initial and continuation hearing dates. The 64.28dates elected or assigned must not conflict with the initial and continuation hearing dates 64.29of the county or the metropolitan special taxing districts. 64.30    (j) By August 20, the county auditor shall notify the clerks of the cities within the 64.31county of the dates on which school districts and regional library districts have elected 64.32to hold their initial and continuation hearings. At the time a city certifies its proposed 64.33levy under subdivision 1 it shall certify the dates on which it elects to hold its initial 64.34hearing and any continuation hearing. Until September 15, the first and second Mondays 64.35 new text begin Monday new text end of December are new text begin is new text end reserved for the use of the cities. If a city does not certify its 64.36hearing dates by September 15, the auditor shall assign the initial and continuation hearing 65.1dates. The dates elected or assigned for the initial hearing must not conflict with the 65.2initial hearing dates of the county, metropolitan special taxing districts, regional library 65.3districts, or school districts within which the city is located. To the extent possible, the 65.4dates of the city's continuation hearing should not conflict with the continuation hearing 65.5dates of the county, metropolitan special taxing districts, regional library districts, or 65.6school districts within which the city is located. This paragraph does not apply to cities 65.7of 500 population or less. 65.8    (k) The county initial hearing date and the city, metropolitan special taxing district, 65.9regional library district, and school district initial hearing dates must be designated on 65.10the notices required under subdivision 3. The continuation hearing dates need not be 65.11stated on the notices. 65.12    (l) At a subsequent hearing, each county, school district, city over 500 population, 65.13and metropolitan special taxing district may amend its proposed property tax levy 65.14and must adopt a final property tax levy. Each county, city over 500 population, and 65.15metropolitan special taxing district may also amend its proposed budget and must adopt a 65.16final budget at the subsequent hearing. The final property tax levy must be adopted prior 65.17to adopting the final budget. A school district is not required to adopt its final budget at the 65.18subsequent hearing. The subsequent hearing of a taxing authority must be held on a date 65.19subsequent to the date of the taxing authority's initial public hearing. If a continuation 65.20hearing is held, the subsequent hearing must be held either immediately following the 65.21continuation hearing or on a date subsequent to the continuation hearing. The subsequent 65.22hearing may be held at a regularly scheduled board or council meeting or at a special 65.23meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing 65.24of a taxing authority does not have to be coordinated by the county auditor to prevent a 65.25conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any 65.26other taxing authority. All subsequent hearings must be held prior to five working days 65.27after December 20 of the levy year. The date, time, and place of the subsequent hearing 65.28must be announced at the initial public hearing or at the continuation hearing. 65.29    (m) The property tax levy certified under section 275.07 by a city of any population, 65.30county, metropolitan special taxing district, regional library district, or school district 65.31must not exceed the proposed levy determined under subdivision 1, except by an amount 65.32up to the sum of the following amounts: 65.33    (1) the amount of a school district levy whose voters approved a referendum to 65.34increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after 65.35the proposed levy was certified; 66.1    (2) the amount of a city or county levy approved by the voters after the proposed 66.2levy was certified; 66.3    (3) the amount of a levy to pay principal and interest on bonds approved by the 66.4voters under section 475.58 after the proposed levy was certified; 66.5    (4) the amount of a levy to pay costs due to a natural disaster occurring after the 66.6proposed levy was certified, if that amount is approved by the commissioner of revenue 66.7under subdivision 6a; 66.8    (5) the amount of a levy to pay tort judgments against a taxing authority that become 66.9final after the proposed levy was certified, if the amount is approved by the commissioner 66.10of revenue under subdivision 6a; 66.11    (6) the amount of an increase in levy limits certified to the taxing authority by the 66.12commissioner of education or the commissioner of revenue after the proposed levy was 66.13certified; and 66.14    (7) the amount required under section 126C.55. 66.15    (n) This subdivision does not apply to towns and special taxing districts other than 66.16regional library districts and metropolitan special taxing districts. 66.17    (o) Notwithstanding the requirements of this section, the employer is required to 66.18meet and negotiate over employee compensation as provided for in chapter 179A. 66.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 66.20 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 66.21    Sec. 33. Minnesota Statutes 2006, section 275.065, subdivision 8, is amended to read: 66.22    Subd. 8. Hearing. Notwithstanding any other provision of law, Ramsey County, 66.23the city of St. Paul, and Independent School District No. 625 are authorized to and shall 66.24hold their initial public hearing jointly. The hearing must be held on new text begin during the week of new text end 66.25the second Tuesday of December new text begin November new text end each year. The advertisement required in 66.26subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the 66.27requirements of this section. 66.28    Ramsey County is authorized to hold an additional initial hearing or hearings as 66.29provided under this section, provided that any additional hearings must not conflict 66.30with the initial or continuation hearing dates of the other taxing districts. However, if 66.31Ramsey County elects not to hold such additional initial hearing or hearings, the joint 66.32initial hearing required by this subdivision must be held in a St. Paul location convenient 66.33to residents of Ramsey County. 67.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 67.2 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter, except that new text end 67.3 new text begin proposed notices and hearings held in 2008 may be held during the week of the second new text end 67.4 new text begin Tuesday of December. new text end 67.5    Sec. 34. Minnesota Statutes 2006, section 275.065, subdivision 9, is amended to read: 67.6    Subd. 9. Aitkin County and school district hearing. Notwithstanding any other 67.7law, Aitkin County and Independent School District No. 1, and the city of Aitkin, or any 67.8two of them, may hold their initial public hearing jointly. The hearing must be held on 67.9the second Tuesday of December new text begin November new text end each year. The advertisement required in 67.10subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the 67.11requirements of this section. 67.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 67.13 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 67.14    Sec. 35. Minnesota Statutes 2006, section 275.065, subdivision 10, is amended to read: 67.15    Subd. 10. Nobles County; joint initial public hearing. Notwithstanding any 67.16other law, Nobles County, the city of Worthington, and Independent School District No. 67.17518, Worthington, or any two of them, may hold their initial public hearing jointly. The 67.18hearing must be held on the second Tuesday of December new text begin November new text end each year. The 67.19advertisement required in subdivision 5a may be a joint advertisement. The hearing is 67.20otherwise subject to the requirements of this section. 67.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for proposed notices and hearings new text end 67.22 new text begin held in 2009 and thereafter, for property taxes payable in 2010 and thereafter. new text end 67.23    Sec. 36. Minnesota Statutes 2006, section 282.08, is amended to read: 67.24282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS. 67.25    The net proceeds from the sale or rental of any parcel of forfeited land, or from the 67.26sale of products from the forfeited land, must be apportioned by the county auditor to the 67.27taxing districts interested in the land, as follows: 67.28    (1) the portion required to pay any amounts included in the appraised value 67.29under section 282.01, subdivision 3, as representing increased value due to any public 67.30improvement made after forfeiture of the parcel to the state, but not exceeding the amount 67.31certified by the clerk of the municipality new text begin appropriate governmental authority new text end must be 67.32apportioned to the municipal new text begin governmental new text end subdivision entitled to it; 68.1    (2) the portion required to pay any amount included in the appraised value under 68.2section 282.019, subdivision 5, representing increased value due to response actions 68.3taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses 68.4certified by the Pollution Control Agency or the commissioner of agriculture, must be 68.5apportioned to the agency or the commissioner of agriculture and deposited in the fund 68.6from which the expenses were paid; 68.7    (3) the portion of the remainder required to discharge any special assessment 68.8chargeable against the parcel for drainage or other purpose whether due or deferred at 68.9the time of forfeiture, must be apportioned to the municipal new text begin governmental new text end subdivision 68.10entitled to it; and 68.11    (4) any balance must be apportioned as follows: 68.12    (i) The county board may annually by resolution set aside no more than 30 percent 68.13of the receipts remaining to be used for forest development on tax-forfeited land and 68.14dedicated memorial forests, to be expended under the supervision of the county board. It 68.15must be expended only on projects improving the health and management of the forest 68.16resource. 68.17    (ii) The county board may annually by resolution set aside no more than 20 percent 68.18of the receipts remaining to be used for the acquisition and maintenance of county parks 68.19or recreational areas as defined in sections 398.31 to 398.36, to be expended under the 68.20supervision of the county board. 68.21    (iii) Any balance remaining must be apportioned as follows: county, 40 percent; 68.22town or city, 20 percent; and school district, 40 percent, provided, however, that in 68.23unorganized territory that portion which would have accrued to the township must be 68.24administered by the county board of commissioners. 68.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 68.26    Sec. 37. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read: 68.27    Subdivision 1. Program qualifications. The qualifications for the senior citizens' 68.28property tax deferral program are as follows: 68.29    (1) the property must be owned and occupied as a homestead by a person 65 years of 68.30age or older. In the case of a married couple, both new text begin only one new text end of the spouses must be at least 68.3165 years old at the time the first property tax deferral is granted, regardless of whether the 68.32property is titled in the name of one spouse or both spouses, or titled in another way that 68.33permits the property to have homestead status; 68.34    (2) the total household income of the qualifying homeowners new text begin homeowner, or in the new text end 68.35 new text begin case of a married couple, the qualifying homeowner and spouse new text end , as defined in section 69.1290A.03, subdivision 5 , for the calendar year preceding the year of the initial application 69.2may not exceed $60,000 new text begin $80,000 new text end ; 69.3    (3) the homestead must have been owned and occupied as the homestead of at 69.4least one of the qualifying homeowners for at least 15 years prior to the year the initial 69.5application is filed; 69.6    (4) there are no state or federal tax liens or judgment liens on the homesteaded 69.7property; 69.8    (5) there are no mortgages or other liens on the property that secure future advances, 69.9except for those subject to credit limits that result in compliance with clause (6); and 69.10    (6) the total unpaid balances of debts secured by mortgages and other liens on the 69.11property, including unpaid and delinquent special assessments and interest and any 69.12delinquent property taxes, penalties, and interest, but not including property taxes payable 69.13during the year, does not exceed 75 percent of the assessor's estimated market value for 69.14the year. 69.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 69.16 new text begin July 1, 2008. new text end 69.17    Sec. 38. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read: 69.18    Subd. 3. Excess-income certification by taxpayer. A taxpayer whose initial 69.19application has been approved under subdivision 2 shall notify the commissioner of 69.20revenue in writing by July 1 if the taxpayer's household income for the preceding calendar 69.21year exceeded $60,000 new text begin $80,000 new text end . The certification must state the homeowner's total 69.22household income for the previous calendar year. No property taxes may be deferred 69.23under this chapter in any year following the year in which a program participant filed or 69.24should have filed an excess-income certification under this subdivision new text begin showing income in new text end 69.25 new text begin excess of the maximum allowed new text end , unless the participant has filed a resumption of eligibility 69.26certification as described in subdivision 4. 69.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 69.28 new text begin July 1, 2008. new text end 69.29    Sec. 39. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read: 69.30    Subd. 4. Resumption of eligibility certification by taxpayer. A taxpayer who has 69.31previously filed an excess-income certification under subdivision 3 may resume program 69.32participation if the taxpayer's household income for a subsequent year is $60,000 new text begin $80,000 new text end 69.33or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 70.1the commissioner of revenue in writing by July 1 of the year following a calendar year in 70.2which the taxpayer's household income is $60,000 new text begin $80,000 new text end or less. The certification must 70.3state the taxpayer's total household income for the previous calendar year. Once a taxpayer 70.4resumes participation in the program under this subdivision, participation will continue 70.5until the taxpayer files a subsequent excess-income certification under subdivision 3 or 70.6until participation is terminated under section 290B.08, subdivision 1. 70.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 70.8 new text begin July 1, 2008. new text end 70.9    Sec. 40. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read: 70.10    Subdivision 1. Determination by commissioner. The commissioner shall 70.11determine each qualifying homeowner's "annual maximum property tax amount" 70.12following approval of the homeowner's initial application and following the receipt of a 70.13resumption of eligibility certification. The "annual maximum property tax amount" equals 70.14three percent of the homeowner's total household income for the year preceding either the 70.15initial application or the resumption of eligibility certification, whichever is applicable. 70.16Following approval of the initial application, the commissioner shall determine the 70.17qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative 70.18to the appropriate assessment year for any homeowner whose total household income 70.19for the previous year exceeds $60,000 new text begin $80,000 new text end . No tax shall be deferred in any year in 70.20which the homeowner does not meet the program qualifications in section 290B.03. The 70.21maximum allowable total deferral is equal to 75 percent of the assessor's estimated market 70.22value for the year, less the balance of any mortgage loans and other amounts secured by 70.23liens against the property at the time of application, including any unpaid and delinquent 70.24special assessments and interest and any delinquent property taxes, penalties, and interest, 70.25but not including property taxes payable during the year. 70.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications received on or after new text end 70.27 new text begin July 1, 2008. new text end 70.28    Sec. 41. Minnesota Statutes 2006, section 290B.07, is amended to read: 70.29290B.07 LIEN; DEFERRED PORTION. 70.30    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, 70.31or special assessments and interest deferred under this chapter is deemed a loan from the 70.32state to the program participant. The commissioner must compute the interest as provided 70.33in section 270C.40, subdivision 5, but not to exceed five percent, and maintain records of 71.1the total deferred amount and interest for each participant. Interest shall accrue beginning 71.2September 1 of the payable year for which the taxes are deferred new text begin , provided that no interest new text end 71.3 new text begin shall be charged on (1) deferred property tax amounts on applications filed on or after new text end 71.4 new text begin July 1, 2008, or (2) deferred property taxes beginning with taxes payable in 2009 on new text end 71.5 new text begin applications filed prior to July 1, 2008 new text end . Any deferral made under this chapter shall not 71.6be construed as delinquent property taxes. 71.7    The lien created under section 272.31 continues to secure payment by the taxpayer, 71.8or by the taxpayer's successors or assigns, of the amount deferred, including interest, with 71.9respect to all years for which amounts are deferred. The lien for deferred taxes and interest 71.10has the same priority as any other lien under section 272.31, except that liens, including 71.11mortgages, recorded or filed prior to the recording or filing of the notice under section 71.12290B.04, subdivision 2 , have priority over the lien for deferred taxes and interest. A 71.13seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser 71.14or an assignee of the purchaser, has priority over deferred taxes and interest on deferred 71.15taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred 71.16taxes and interest for future years has the same priority as the lien for deferred taxes and 71.17interest for the first year, which is always higher in priority than any mortgages or other 71.18liens filed, recorded, or created after the notice recorded or filed under section 290B.04, 71.19subdivision 2 . The county treasurer or auditor shall maintain records of the deferred 71.20portion and shall list the amount of deferred taxes for the year and the cumulative deferral 71.21and interest for all previous years as a lien against the property. In any certification of 71.22unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes 71.23payable in the current year, deferred taxes and interest, and delinquent taxes. Payment 71.24of the deferred portion becomes due and owing at the time specified in section 290B.08. 71.25Upon receipt of the payment, the commissioner shall issue a receipt for it to the person 71.26making the payment upon request and shall notify the auditor of the county in which the 71.27parcel is located, within ten days, identifying the parcel to which the payment applies. 71.28Upon receipt by the commissioner of revenue of collected funds in the amount of the 71.29deferral, the state's loan to the program participant is deemed paid in full. 71.30    (b) If property for which taxes have been deferred under this chapter forfeits 71.31under chapter 281 for nonpayment of a nondeferred property tax amount, or because 71.32of nonpayment of amounts previously deferred following a termination under section 71.33290B.08 , the lien for the taxes deferred under this chapter, plus interest and costs, shall be 71.34canceled by the county auditor as provided in section 282.07. However, notwithstanding 71.35any other law to the contrary, any proceeds from a subsequent sale of the property under 71.36chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale 72.1fund for any direct costs of selling the property or any costs directly related to preparing 72.2the property for sale, and then to reimburse the state for the amount of the canceled lien. 72.3Within 90 days of the receipt of any sale proceed to which the state is entitled under these 72.4provisions, the county auditor must pay those funds to the commissioner of revenue by 72.5warrant for deposit in the general fund. No other deposit, use, distribution, or release of 72.6gross sale proceeds or receipts may be made by the county until payments sufficient 72.7to fully reimburse the state for the canceled lien amount have been transmitted to the 72.8commissioner. 72.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2008. new text end 72.10    Sec. 42. new text begin [290D.01] CITATION. new text end 72.11     new text begin This program shall be named the "seasonal recreational property tax deferral new text end 72.12 new text begin program." new text end 72.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 72.14    Sec. 43. new text begin [290D.02] TERMS. new text end 72.15     new text begin Subdivision 1. new text end new text begin Terms. new text end new text begin For purposes of sections 290D.01 to 290D.08, the terms new text end 72.16 new text begin defined in this section have the meanings given them. new text end 72.17     new text begin Subd. 2. new text end new text begin Primary property owner. new text end new text begin "Primary property owner" means a person who new text end 72.18 new text begin (1) has been the owner, or one of the owners, of the eligible property for at least 15 years new text end 72.19 new text begin prior to the year the application is filed under section 290D.04; and (2) applies for the new text end 72.20 new text begin deferral of property taxes under section 290D.04. new text end 72.21     new text begin Subd. 3. new text end new text begin Secondary property owner. new text end new text begin "Secondary property owner" means any new text end 72.22 new text begin person, other than the primary property owner, who has been an owner of the eligible new text end 72.23 new text begin property for at least 15 years prior to the year the initial application is filed for deferral new text end 72.24 new text begin of property taxes under section 290D.04. new text end 72.25     new text begin Subd. 4. new text end new text begin Eligible property. new text end new text begin "Eligible property" means a parcel of property or new text end 72.26 new text begin contiguous parcels of property under the same ownership classified as noncommercial new text end 72.27 new text begin seasonal residential recreational 4c(1) property under section 273.13, subdivision 25. new text end 72.28     new text begin Subd. 5. new text end new text begin Base property tax amount. new text end new text begin "Base property tax amount" means the total new text end 72.29 new text begin property taxes levied by all taxing jurisdictions, including special assessments, on the new text end 72.30 new text begin eligible property in the year prior to the year that the initial application is approved under new text end 72.31 new text begin section 290D.04 and payable in the year of the application. new text end 73.1     new text begin Subd. 6. new text end new text begin Special assessments. new text end new text begin "Special assessments" means any assessment, fee, or new text end 73.2 new text begin other charge that may be made by law, and that appears on the property tax statement for new text end 73.3 new text begin the property for collection under the laws applicable to the enforcement of real estate taxes. new text end 73.4     new text begin Subd. 7. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of revenue. new text end 73.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 73.6 new text begin and thereafter. new text end 73.7    Sec. 44. new text begin [290D.03] QUALIFICATIONS FOR DEFERRAL. new text end 73.8     new text begin In order for an eligible property to qualify for treatment under this program: new text end 73.9     new text begin (1) the eligible property must have been owned solely by the primary property owner, new text end 73.10 new text begin or jointly with others, for at least 15 years prior to the year the initial application is filed; new text end 73.11     new text begin (2) there must be no state or federal tax liens or judgment liens on the eligible new text end 73.12 new text begin property; new text end 73.13     new text begin (3) there must be no mortgages or other liens on the eligible property that secure new text end 73.14 new text begin future advances, except for those subject to credit limits that result in compliance with new text end 73.15 new text begin clause (4); and new text end 73.16     new text begin (4) the total unpaid balances of debts secured by mortgages and other liens on the new text end 73.17 new text begin eligible property, including unpaid and delinquent special assessments and interest and new text end 73.18 new text begin any delinquent property taxes, penalties, and interest, but not including property taxes new text end 73.19 new text begin payable during the year, must not exceed 60 percent of the assessor's estimated market new text end 73.20 new text begin value for the current assessment year. new text end 73.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 73.22 new text begin and thereafter. new text end 73.23    Sec. 45. new text begin [290D.04] APPLICATION FOR DEFERRAL. new text end 73.24     new text begin Subdivision 1. new text end new text begin Initial application. new text end new text begin (a) A primary owner of a property meeting new text end 73.25 new text begin the qualifications under section new text end new text begin may apply to the commissioner for deferral new text end 73.26 new text begin of taxes on the eligible property. Applications are due on or before July 1 for deferral new text end 73.27 new text begin of any taxes payable in the following year. The application, which must be prescribed new text end 73.28 new text begin by the commissioner, shall include the following items and any other information the new text end 73.29 new text begin commissioner deems necessary: new text end 73.30     new text begin (1) the name, address, and Social Security number of the primary property owner new text end 73.31 new text begin and secondary property owners, if any; new text end 73.32     new text begin (2) a copy of the property tax statement for the current taxes payable year for the new text end 73.33 new text begin eligible property; new text end 74.1     new text begin (3) the initial year of ownership of the primary property owner and any second new text end 74.2 new text begin property owners of the eligible property; new text end 74.3     new text begin (4) information on any mortgage loans or other amounts secured by mortgages or new text end 74.4 new text begin other liens against the eligible property, for which purpose the commissioner may require new text end 74.5 new text begin the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the new text end 74.6 new text begin balance owing on the mortgage loan provided by the mortgage holder. The commissioner new text end 74.7 new text begin may require the appropriate documents in connection with obtaining and confirming new text end 74.8 new text begin information on unpaid amounts secured by other liens; and new text end 74.9     new text begin (5) the signatures of the primary property owner and all other owners, if any, stating new text end 74.10 new text begin that each owner agrees to enroll the eligible property in the program to defer property new text end 74.11 new text begin taxes under this chapter. new text end 74.12     new text begin The application must state that program participation is voluntary. The application new text end 74.13 new text begin must also state that program participation includes authorization for the annual deferred new text end 74.14 new text begin amount. The deferred property tax calculated by the county and the cumulative deferred new text end 74.15 new text begin property tax amount is public data. new text end 74.16     new text begin (b) As part of the initial application process, if the property is abstract property, the new text end 74.17 new text begin commissioner may require the applicant to obtain at the applicant's cost a report prepared new text end 74.18 new text begin by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens, new text end 74.19 new text begin judgments, and state and federal tax lien notices which were recorded on or after the date new text end 74.20 new text begin of that last deed with respect to the eligible property or to the applicant. new text end 74.21     new text begin The certificate or report need not include references to any documents filed or new text end 74.22 new text begin recorded more than 40 years prior to the date of the certification or report. The certification new text end 74.23 new text begin or report must be as of a date not more than 30 days prior to submission of the application new text end 74.24 new text begin under this section. new text end 74.25     new text begin The commissioner may also require the county recorder or county registrar of the new text end 74.26 new text begin county where the eligible property is located to provide copies of recorded documents new text end 74.27 new text begin related to the applicant of the eligible property, for which the recorder or registrar shall new text end 74.28 new text begin not charge a fee. The commissioner may use any information available to determine or new text end 74.29 new text begin verify eligibility under this section. new text end 74.30     new text begin Subd. 2. new text end new text begin Approval; recording. new text end new text begin The commissioner shall approve all initial new text end 74.31 new text begin applications that qualify under this chapter and shall notify the primary property owner on new text end 74.32 new text begin or before December 1. The commissioner may investigate the facts or require confirmation new text end 74.33 new text begin in regard to an application. The commissioner shall record or file a notice of qualification new text end 74.34 new text begin for deferral, including the names of the primary and any secondary property owners and a new text end 74.35 new text begin legal description of the eligible property, in the office of the county recorder, or registrar of new text end 74.36 new text begin titles, whichever is applicable, in the county where the eligible property is located. The new text end 75.1 new text begin notice must state that it serves as a notice of lien and that it includes deferrals under this new text end 75.2 new text begin section for future years. The primary property owner shall pay the recording or filing fees new text end 75.3 new text begin for the notice, which, notwithstanding section new text end new text begin , shall be paid by that owner at the new text end 75.4 new text begin time of satisfaction of the lien. new text end 75.5     new text begin Subd. 3. new text end new text begin Penalty for failure; investigations. new text end new text begin (a) The commissioner shall assess new text end 75.6 new text begin a penalty equal to 20 percent of the property taxes improperly deferred in the case of a new text end 75.7 new text begin false application. The commissioner shall assess a penalty equal to 50 percent of the new text end 75.8 new text begin property taxes improperly deferred if the taxpayer knowingly filed a false application. The new text end 75.9 new text begin commissioner shall assess penalties under this section through the issuance of an order new text end 75.10 new text begin under the provisions of chapter 270C. Persons affected by a commissioner's order issued new text end 75.11 new text begin under this section may appeal as provided in chapter 270C. new text end 75.12     new text begin (b) The commissioner may conduct investigations related to initial applications new text end 75.13 new text begin required under this chapter within the period ending 3-1/2 years from the due date of new text end 75.14 new text begin the application. new text end 75.15     new text begin Subd. 4. new text end new text begin Annual certification to commissioner. new text end new text begin Annually on or before July 1, new text end 75.16 new text begin the primary property owner must certify to the commissioner that the person continues new text end 75.17 new text begin to qualify as a primary property owner. If the primary owner has died or has transferred new text end 75.18 new text begin the property in the preceding year, a certification may be filed by the primary owner's new text end 75.19 new text begin spouse, or by one of the secondary owners, provided that the person is currently an new text end 75.20 new text begin owner of the property. In this case, the primary owner's spouse or the secondary owner new text end 75.21 new text begin shall be considered the primary owner from that point forward. If neither the primary new text end 75.22 new text begin owner, the primary owner's spouse, or a secondary owner is eligible to file the required new text end 75.23 new text begin annual certification for the property, the property's participation in the program shall be new text end 75.24 new text begin terminated, and the procedures in section 290D.07 apply. new text end 75.25     new text begin Subd. 5. new text end new text begin Annual notice to primary property owner. new text end new text begin Annually, on or before new text end 75.26 new text begin September 1, the commissioner shall notify each primary property owner, in writing, of new text end 75.27 new text begin the total cumulative deferred taxes and accrued interest on the qualifying property as of new text end 75.28 new text begin that date. new text end 75.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 75.30 new text begin and thereafter. new text end 75.31    Sec. 46. new text begin [290D.05] DEFERRED PROPERTY TAX AMOUNT. new text end 75.32     new text begin Subdivision 1. new text end new text begin Calculation of deferred property tax amount. new text end new text begin Each year after new text end 75.33 new text begin the county auditor has determined the final property tax rates under section 275.08, the new text end 75.34 new text begin "deferred property tax amount" must be calculated on each eligible property. The deferred new text end 75.35 new text begin property tax amount is equal to 50 percent of the amount of the difference between (1) the new text end 76.1 new text begin total amount of property taxes and special assessments levied upon the eligible property new text end 76.2 new text begin for the current year by all taxing jurisdictions and (2) the eligible property's base property new text end 76.3 new text begin tax amount. Any tax attributable to new improvements made to the eligible property after new text end 76.4 new text begin the initial application has been approved under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , must be new text end 76.5 new text begin excluded in determining the deferred property tax amount. The eligible property's total new text end 76.6 new text begin current year's tax less the deferred property tax amount for the current year must be listed new text end 76.7 new text begin on the property tax statement and is the amount due to the county under chapter 276. new text end 76.8 new text begin Reference that the property is enrolled in the seasonal recreational property tax deferral new text end 76.9 new text begin program under this chapter and a state lien has been recorded must be clearly printed on new text end 76.10 new text begin the statement. new text end 76.11     new text begin Subd. 2. new text end new text begin Certification to commissioner. new text end new text begin The county auditor shall annually, on or new text end 76.12 new text begin before April 15, certify to the commissioner the property tax deferral amounts determined new text end 76.13 new text begin under this section for each eligible property in the county. The commissioner shall new text end 76.14 new text begin prescribe the information that is necessary to identify the eligible properties. new text end 76.15     new text begin Subd. 3. new text end new text begin Limitation on total amount of deferred taxes. new text end new text begin The total amount of new text end 76.16 new text begin deferred taxes and interest on a property, when added to (1) the balance owed on any new text end 76.17 new text begin mortgages on the property at the time of initial application; (2) other amounts secured by new text end 76.18 new text begin liens on the property at the time of the initial application; and (3) any unpaid and delinquent new text end 76.19 new text begin special assessments and interest and any delinquent property taxes, penalties, and interest, new text end 76.20 new text begin but not including property taxes payable during the year, must not exceed 60 percent of new text end 76.21 new text begin the assessor's estimated market value of the property for the current assessment year. new text end 76.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 76.23 new text begin and thereafter. new text end 76.24    Sec. 47. new text begin [290D.06] LIEN; DEFERRED PORTION. new text end 76.25     new text begin (a) Payment by the state to the county treasurer of property taxes, penalties, interest, new text end 76.26 new text begin or special assessments and interest, deferred under this chapter is deemed a loan from the new text end 76.27 new text begin state to the program participant. The commissioner shall compute the interest as provided new text end 76.28 new text begin in section new text end new text begin 270C.40, subdivision 5 new text end new text begin , but not to exceed two percent over the maximum new text end 76.29 new text begin interest rate provided in section 290B.07, paragraph (a), and maintain records of the total new text end 76.30 new text begin deferred amount and interest for each participant. Interest accrues beginning September 1 new text end 76.31 new text begin of the payable year for which the taxes are deferred. Any deferral made under this chapter new text end 76.32 new text begin must not be construed as delinquent property taxes. new text end 76.33     new text begin The lien created under section new text end new text begin continues to secure payment by the taxpayer, new text end 76.34 new text begin or by the taxpayer's successors or assigns, of the amount deferred, including interest, with new text end 76.35 new text begin respect to all years for which amounts are deferred. The lien for deferred taxes and interest new text end 77.1 new text begin has the same priority as any other lien under section new text end new text begin , except that liens, including new text end 77.2 new text begin mortgages, recorded or filed prior to the recording or filing of the notice under section new text end 77.3 new text begin 290D.04, subdivision 2 new text end new text begin , have priority over the lien for deferred taxes and interest. A new text end 77.4 new text begin seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an new text end 77.5 new text begin assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, new text end 77.6 new text begin regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes new text end 77.7 new text begin and interest for future years has the same priority as the lien for deferred taxes and interest new text end 77.8 new text begin for the first year, which is always higher in priority than any mortgages or other liens filed, new text end 77.9 new text begin recorded, or created after the notice recorded or filed under section new text end new text begin 290D.04, subdivision new text end 77.10 new text begin 2 new text end new text begin . The county treasurer or auditor shall maintain records of the deferred portion and shall new text end 77.11 new text begin list the amount of deferred taxes for the year and the cumulative deferral and interest for new text end 77.12 new text begin all previous years as a lien against the eligible property. In any certification of unpaid new text end 77.13 new text begin taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in new text end 77.14 new text begin the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred new text end 77.15 new text begin portion becomes due and owing at the time specified in section new text end new text begin . Upon receipt of new text end 77.16 new text begin the payment, the commissioner shall issue a receipt to the person making the payment new text end 77.17 new text begin upon request and shall notify the auditor of the county in which the parcel is located, new text end 77.18 new text begin within ten days, identifying the parcel to which the payment applies. Upon receipt by the new text end 77.19 new text begin commissioner of collected funds in the amount of the deferral, the state's loan to the new text end 77.20 new text begin program participant is deemed paid in full. new text end 77.21     new text begin (b) If eligible property for which taxes have been deferred under this chapter forfeits new text end 77.22 new text begin under chapter 281 for nonpayment of a nondeferred property tax amount, or because new text end 77.23 new text begin of nonpayment of amounts previously deferred following a termination under section new text end 77.24 new text begin , the lien for the taxes deferred under this chapter, plus interest and costs, shall be new text end 77.25 new text begin canceled by the county auditor as provided in section new text end new text begin . However, notwithstanding new text end 77.26 new text begin any other law to the contrary, any proceeds from a subsequent sale of the eligible property new text end 77.27 new text begin under chapter 282 or another law must be used to first reimburse the county's forfeited new text end 77.28 new text begin tax sale fund for any direct costs of selling the eligible property or any costs directly new text end 77.29 new text begin related to preparing the eligible property for sale, and then to reimburse the state for new text end 77.30 new text begin the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to new text end 77.31 new text begin which the state is entitled under these provisions, the county auditor must pay those funds new text end 77.32 new text begin to the commissioner by warrant for deposit in the general fund. No other deposit, use, new text end 77.33 new text begin distribution, or release of gross sale proceeds or receipts may be made by the county until new text end 77.34 new text begin payments sufficient to fully reimburse the state for the canceled lien amount have been new text end 77.35 new text begin transmitted to the commissioner. new text end 78.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 78.2 new text begin and thereafter. new text end 78.3    Sec. 48. new text begin [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF new text end 78.4 new text begin DEFERRED TAXES. new text end 78.5     new text begin Subdivision 1. new text end new text begin Termination. new text end new text begin (a) The deferral of taxes granted under this chapter new text end 78.6 new text begin terminates when one of the following occurs: new text end 78.7     new text begin (1) the eligible property is sold or transferred to someone other than the primary new text end 78.8 new text begin owner's spouse or a secondary owner; new text end 78.9     new text begin (2) the death of the primary owner, or in the case of a married couple, after the new text end 78.10 new text begin death of both spouses, provided that there is not a secondary owner eligible to become new text end 78.11 new text begin the primary owner; new text end 78.12     new text begin (3) the primary property owner notifies the commissioner, in writing, that all owners, new text end 78.13 new text begin including any secondary property owners, desire to discontinue the deferral; or new text end 78.14     new text begin (4) the eligible property no longer qualifies under section 290D.03. new text end 78.15     new text begin (b) An eligible property is not terminated from the program because no deferred new text end 78.16 new text begin property tax amount is determined for any given year after the eligible property's initial new text end 78.17 new text begin enrollment into the program. new text end 78.18     new text begin (c) An eligible property is not terminated from the program if the eligible property new text end 78.19 new text begin subsequently becomes the homestead of one or more of the property owners and the new text end 78.20 new text begin property and the owners qualify for, and are immediately enrolled in, the senior deferral new text end 78.21 new text begin program under chapter 290B. new text end 78.22     new text begin Subd. 2. new text end new text begin Payment upon termination. new text end new text begin Upon the termination of the deferral under new text end 78.23 new text begin subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments new text end 78.24 new text begin and interest, plus the recording or filing fees under this subdivision and section new text end new text begin 290D.04, new text end 78.25 new text begin subdivision 2 new text end new text begin , becomes due and payable to the commissioner within 90 days of termination new text end 78.26 new text begin of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), new text end 78.27 new text begin and within one year of termination of the deferral for terminations under subdivision 1, new text end 78.28 new text begin paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely new text end 78.29 new text begin paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor new text end 78.30 new text begin of the county in which the parcel is located, identifying the parcel to which the payment new text end 78.31 new text begin applies and shall remit the recording or filing fees under this subdivision and section new text end 78.32 new text begin 290D.04, subdivision 2 new text end new text begin , to the auditor. A notice of termination of deferral, containing the new text end 78.33 new text begin legal description and the recording or filing data for the notice of qualification for deferral new text end 78.34 new text begin under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , shall be prepared and recorded or filed by the new text end 78.35 new text begin county auditor in the same office in which the notice of qualification for deferral under new text end 79.1 new text begin section new text end new text begin 290D.04, subdivision 2 new text end new text begin , was recorded or filed, and the county auditor shall mail a new text end 79.2 new text begin copy of the notice of termination to the property owner. The property owner shall pay the new text end 79.3 new text begin recording or filing fees. Upon recording or filing of the notice of termination of deferral, new text end 79.4 new text begin the notice of qualification for deferral under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , and the lien new text end 79.5 new text begin created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien, new text end 79.6 new text begin forfeiture, and other rules for the collection of ad valorem property taxes apply. new text end 79.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 79.8 new text begin and thereafter. new text end 79.9    Sec. 49. new text begin [290D.08] STATE REIMBURSEMENT. new text end 79.10     new text begin Subdivision 1. new text end new text begin Determination; payment. new text end new text begin The county auditor shall determine the new text end 79.11 new text begin total current year's deferred amount of property tax under this chapter in the county, and new text end 79.12 new text begin submit those amounts as part of the abstracts of tax lists submitted by the county auditors new text end 79.13 new text begin under section new text end new text begin . The commissioner may make changes in the abstracts of tax lists as new text end 79.14 new text begin deemed necessary. The commissioner, after such review, shall pay the deferred amount of new text end 79.15 new text begin property tax to each county treasurer on or before August 31. new text end 79.16     new text begin The county treasurer shall distribute, as part of the October settlement, the funds new text end 79.17 new text begin received as if they had been collected as part of the property tax. new text end 79.18     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the total amount of property new text end 79.19 new text begin tax determined under subdivision 1, plus any amounts paid under section new text end new text begin 290D.04, new text end 79.20 new text begin subdivision 4 new text end new text begin , is annually appropriated from the general fund to the commissioner. new text end 79.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2009, new text end 79.22 new text begin and thereafter. new text end 79.23    Sec. 50. Minnesota Statutes 2006, section 469.1813, subdivision 8, is amended to read: 79.24    Subd. 8. Limitation on abatements. In any year, the total amount of property 79.25taxes abated by a political subdivision under this section may not exceed (1) ten percent 79.26of the current levy new text begin net tax capacity of the political subdivision for the taxes payable year new text end 79.27 new text begin to which the abatement applies new text end , or (2) $200,000, whichever is greater. The limit under 79.28this subdivision does not apply to: 79.29    (i) an uncollected abatement from a prior year that is added to the abatement levy; or 79.30    (ii) a taxpayer whose real and personal property is subject to valuation under 79.31Minnesota Rules, chapter 8100. 79.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for abatement resolutions approved new text end 79.33 new text begin after the day following final enactment. new text end 80.1    Sec. 51. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read: 80.2    Subd. 2. Transit taxing district. The metropolitan transit taxing district is hereby 80.3designated as that portion of the metropolitan transit area lying within the following 80.4named cities, towns, or unorganized territory within the counties indicated: 80.5    (a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 80.6Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park; 80.7    (b) Carver County. Chanhassen, the city of Chaska; 80.8    (c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 80.9Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul; 80.10    (d) Ramsey County. All of the territory within Ramsey County; 80.11    (e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 80.12Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 80.13Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 80.14Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 80.15Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 80.16Woodland, the unorganized territory of Hennepin County; 80.17    (f) Scott County. Prior Lake, Savage, Shakopee; 80.18    (g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 80.19Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 80.20Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury new text begin means the new text end 80.21 new text begin metropolitan area new text end . 80.22    The Metropolitan Council in its sole discretion may provide transit service by 80.23contract beyond the boundaries of the metropolitan transit taxing district or to cities and 80.24towns within the taxing district which are receiving financial assistance under section 80.25473.388 , upon petition therefor by an interested city, township or political subdivision 80.26within the metropolitan transit area. The Metropolitan Council may establish such 80.27terms and conditions as it deems necessary and advisable for providing the transit 80.28service, including such combination of fares and direct payments by the petitioner as 80.29will compensate the council for the full capital and operating cost of the service and the 80.30related administrative activities of the council. The amount of the levy made by any 80.31municipality to pay for the service shall be disregarded when calculation of levies subject 80.32to limitations is made, provided that cities and towns receiving financial assistance under 80.33section 473.388 shall not make a special levy under this subdivision without having first 80.34exhausted the available local transit funds as defined in section 473.388. The council shall 80.35not be obligated to extend service beyond the boundaries of the taxing district, or to cities 81.1and towns within the taxing district which are receiving financial assistance under section 81.2473.388 , under any law or contract unless or until payment therefor is received. 81.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 81.4 new text begin thereafter. new text end 81.5    Sec. 52. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read: 81.6    Subd. 8. State review. The commissioner of revenue shall certify the council's levy 81.7limitation under this section to the council by August 1 of the levy year. The council 81.8must certify its proposed property tax levy under this section to the commissioner of 81.9revenue by September 1 of the levy year. The commissioner of revenue shall annually 81.10determine whether the property tax for transit purposes certified by the council for levy 81.11following the adoption of its proposed budget is within the levy limitation imposed by 81.12subdivisions new text begin subdivision new text end 1 and 1b. The commissioner shall also annually determine 81.13whether the transit tax imposed on all taxable property within the metropolitan transit area 81.14but outside of the metropolitan transit taxing district is within the levy limitation imposed 81.15by subdivision 1a. The determination must be completed prior to September 10 of each 81.16year. If current information regarding market valuation in any county is not transmitted to 81.17the commissioner in a timely manner, the commissioner may estimate the current market 81.18valuation within that county for purposes of making the calculations. 81.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2009 and new text end 81.20 new text begin thereafter. new text end 81.21    Sec. 53. Laws 2008, chapter 154, article 2, section 11, the effective date, is amended to 81.22read: 81.23EFFECTIVE DATE.The amendments of this section to paragraph (b) new text begin and to the new text end 81.24 new text begin market value increase on the first tier of class 1c homestead resorts new text end are effective for taxes 81.25payable in 2009 and thereafter. The rest of this section is effective for taxes payable in 81.262010 and thereafter. 81.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 81.28    Sec. 54. new text begin FISCAL DISPARITIES STUDY. new text end 81.29     new text begin The commissioner of revenue shall conduct a study of the metropolitan revenue new text end 81.30 new text begin distribution program contained in Minnesota Statutes, chapter 473F, commonly known new text end 81.31 new text begin as the fiscal disparities program. On or before February 1, 2010, the commissioner shall new text end 82.1 new text begin make a report to the chairs of the house of representatives and senate tax committees new text end 82.2 new text begin consisting of the findings of the study and any recommendations resulting from the study. new text end 82.3     new text begin The study must consider to what extent the program is meeting the following goals, new text end 82.4 new text begin and what changes could be made to the program in the furtherance of meeting those goals: new text end 82.5     new text begin (1) reducing the extent to which the property tax encourages development patterns new text end 82.6 new text begin that do not make cost-effective use of public infrastructure or impose other high public new text end 82.7 new text begin costs; new text end 82.8     new text begin (2) ensuring that the benefits of economic growth of the region are shared throughout new text end 82.9 new text begin the region, especially for growth that results from state and/or regional decisions; new text end 82.10     new text begin (3) improving the ability of each jurisdiction within the region to deliver services at new text end 82.11 new text begin a level commensurate with its tax effort; new text end 82.12     new text begin (4) compensating jurisdictions containing properties that provide regional benefits new text end 82.13 new text begin for the costs those properties impose on their host jurisdictions in excess of their tax new text end 82.14 new text begin payments; new text end 82.15     new text begin (5) promoting a fair distribution of property tax burdens across jurisdictions of new text end 82.16 new text begin the region; and new text end 82.17     new text begin (6) reducing the economic losses that result from competition among communities new text end 82.18 new text begin for commercial-industrial tax base. new text end 82.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2008. new text end 82.20    Sec. 55. new text begin WHITE COMMUNITY HOSPITAL DISTRICT. new text end 82.21     new text begin Subdivision 1. new text end new text begin Authorized. new text end new text begin Notwithstanding the contiguity requirement in new text end 82.22 new text begin Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following new text end 82.23 new text begin cities and towns in St. Louis County may establish by resolution of their respective new text end 82.24 new text begin governing bodies the White Community Hospital District: the cities of Aurora, Biwabik, new text end 82.25 new text begin and Hoyt Lakes, and the towns of Biwabik, White, and Colvin. The proposed resolution to new text end 82.26 new text begin establish the hospital district must be published and is subject to referendum as provided new text end 82.27 new text begin in Minnesota Statutes, section 447.31, subdivision 2. new text end 82.28     new text begin Subd. 2. new text end new text begin Powers; may make grants. new text end new text begin (a) Except as otherwise provided in this new text end 82.29 new text begin section, the White Community Hospital District shall be organized and have the powers new text end 82.30 new text begin and duties provided in Minnesota Statutes, sections 447.31, except subdivisions 2, 5, and new text end 82.31 new text begin 6; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38. new text end 82.32     new text begin (b) The hospital district may levy taxes as provided in this section to provide funding new text end 82.33 new text begin to make grants to the White Community Hospital and any affiliated health care facility or new text end 82.34 new text begin provider for any purpose authorized for hospital districts in Minnesota Statutes, sections new text end 82.35 new text begin 447.31 to 447.38, except 447.331. A grant must not be made under this section until the new text end 83.1 new text begin governing body of the White Community Hospital, and any of its affiliated health care new text end 83.2 new text begin facilities or providers receiving a grant, have entered into a written agreement with the new text end 83.3 new text begin hospital district board stating that the governing body will comply with and is subject to new text end 83.4 new text begin all provisions of the Minnesota open meeting law in Minnesota Statutes, chapter 13D. new text end 83.5     new text begin Subd. 3. new text end new text begin Annexation; detachment. new text end new text begin Once the hospital district is established, any new text end 83.6 new text begin other city, town, or unorganized area in St. Louis County may join the hospital district new text end 83.7 new text begin in the same manner provided in subdivision 1 for establishment of the hospital district. new text end 83.8 new text begin A city, town, or unorganized area that is a member of the hospital district may detach new text end 83.9 new text begin from the district in the same manner as it may join. An annexation to or detachment new text end 83.10 new text begin from the hospital district is effective for taxes payable in the following calendar year if new text end 83.11 new text begin the resolution is adopted, or in the case of an unorganized area the petition submitted new text end 83.12 new text begin to the county auditor, before July 1 of the levy year. A resolution adopted or petition new text end 83.13 new text begin submitted after July 1 of any year is effective for the taxes payable the year following new text end 83.14 new text begin the next levy year. new text end 83.15     new text begin Subd. 4. new text end new text begin Unorganized areas. new text end new text begin An unorganized area in St. Louis County shall new text end 83.16 new text begin become a member of the hospital district if at least 51 percent of the residents of the new text end 83.17 new text begin unorganized area signed a petition submitted to the hospital district board and the county new text end 83.18 new text begin auditor requesting to participate in the hospital district. new text end 83.19     new text begin Subd. 5. new text end new text begin Hospital district board. new text end new text begin The hospital district shall be governed by a new text end 83.20 new text begin hospital board composed of one member of each participating city and town's governing new text end 83.21 new text begin body, appointed by the governing body. If the hospital district only has two members, new text end 83.22 new text begin each member city or town shall appoint two board members. The hospital district board new text end 83.23 new text begin must appoint from among its members a chair, clerk, treasurer, and any other officers the new text end 83.24 new text begin board deems necessary or useful. The St. Louis County Board of Commissioners shall new text end 83.25 new text begin appoint a resident of any unorganized area that is participating in the hospital district. All new text end 83.26 new text begin board members serve at the pleasure of the respective appointing authorities. new text end 83.27     new text begin Subd. 6. new text end new text begin No compensation; expenses. new text end new text begin Board members shall serve without new text end 83.28 new text begin compensation but shall be eligible for per diem and expenses provided by, and at the new text end 83.29 new text begin discretion of, their respective appointing authorities. new text end 83.30     new text begin Subd. 7. new text end new text begin Operating tax levy. new text end new text begin The hospital district board may levy a tax as new text end 83.31 new text begin provided in Minnesota Statutes, section 447.34, except as provided in this subdivision. new text end 83.32 new text begin If the hospital district board levies it must be a uniform tax rate levied against the net new text end 83.33 new text begin tax capacity of all taxable properties located within each participating city, town, or new text end 83.34 new text begin unorganized area. The maximum amount that may be levied in the hospital district must new text end 83.35 new text begin not exceed 0.066088 percent of the fully taxable market value of all taxable properties new text end 83.36 new text begin located within each participating city, town, or unorganized area. new text end 84.1     new text begin Any tax levied by the hospital district is in addition to all other taxes levied on the new text end 84.2 new text begin property, including taxes levied for any other hospital purpose by a participating city new text end 84.3 new text begin or town. The levy must be disregarded in the calculation of all other rate or per capita new text end 84.4 new text begin levy limitations imposed by law. new text end 84.5 new text begin EFFECTIVE DATE; NO LOCAL APPROVAL. new text end new text begin This section is effective the new text end 84.6 new text begin day following final enactment without local approval under Minnesota Statutes, section new text end 84.7 new text begin 645.023, subdivision 1, paragraph (a), for taxes levied in 2008, payable in 2009, and new text end 84.8 new text begin thereafter. new text end 84.9    Sec. 56. new text begin VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION; new text end 84.10 new text begin STORM SEWER UTILITY FEES. new text end 84.11     new text begin Notwithstanding any other law to the contrary and pursuant to joint powers new text end 84.12 new text begin agreements authorized under Minnesota Statutes, sections 103B.211 and 471.59, the new text end 84.13 new text begin Vadnais Lake Area Water Management Organization may certify to the county auditor any new text end 84.14 new text begin fees or charges imposed by the organization under Minnesota Statutes, section 103B.211 new text end 84.15 new text begin or 444.075, and the parcels on which the charges are imposed. The county auditor shall new text end 84.16 new text begin extend the charges on the property tax statements. The amounts must be certified by new text end 84.17 new text begin November 30 to appear on statements for taxes payable in the following year. The charges, new text end 84.18 new text begin if not paid, become delinquent and are subject to the same penalties, the same rate of new text end 84.19 new text begin interest, and become a lien upon the property in the same manner as real property taxes. new text end 84.20 new text begin The charges shall be paid to the Vadnais Lake Area Water Management Organization by new text end 84.21 new text begin the county auditor in the same manner and at the same time as property taxes. The county new text end 84.22 new text begin auditor may charge the Vadnais Lake Area Water Management Organization a fee in the new text end 84.23 new text begin amount necessary to recover the costs of administering the charges. new text end 84.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 84.25    Sec. 57. new text begin CITY OF BROOKLYN CENTER; PARTICIPATION IN CRIME-FREE new text end 84.26 new text begin MULTIHOUSING PROGRAM. new text end 84.27     new text begin (a) In addition to the requirements of Minnesota Statutes, section 273.128, if new text end 84.28 new text begin property located in the city of Brooklyn Center qualifies under paragraph (b), the owners new text end 84.29 new text begin or managers must complete the three phases of the city's crime-free multihousing program new text end 84.30 new text begin and the qualifying property must be annually certified by the police as participating new text end 84.31 new text begin in the program. If a qualifying property is not certified within one year after it is first new text end 84.32 new text begin determined to be a qualifying property under paragraph (b), or does not annually maintain new text end 84.33 new text begin its certification in the program, the city shall notify the property owner that the qualifying new text end 85.1 new text begin property must comply with the requirements of this section to maintain its classification new text end 85.2 new text begin as class 4d property. If a qualifying property is not in compliance within one year after new text end 85.3 new text begin receiving the notice from the city, the city shall issue a second notice and require the new text end 85.4 new text begin owners to enter into a plan to achieve compliance within one year. If, upon expiration new text end 85.5 new text begin of the one-year time period, the qualifying property has not been certified by the police new text end 85.6 new text begin as completing the program, the city shall notify the commissioner of the Housing new text end 85.7 new text begin Finance Agency and the commissioner shall remove the property from the list of class 4d new text end 85.8 new text begin properties certified to the assessor under Minnesota Statutes, section 273.128, subdivision new text end 85.9 new text begin 3. Once removed from the list, the property is not eligible for class 4d classification until new text end 85.10 new text begin it complies with this section and its compliance has been certified to the Housing Finance new text end 85.11 new text begin Agency by the city. Certification to the Housing Finance Agency must be made by May new text end 85.12 new text begin 15 to be effective for taxes payable in the following year. new text end 85.13     new text begin (b) A property is a qualifying property for purposes of this section's requirements if new text end 85.14 new text begin it satisfies each of the following requirements: new text end 85.15     new text begin (1) the city offers a crime-free multihousing program through its city police; new text end 85.16     new text begin (2) over the preceding three-year period, the number of police calls to the property new text end 85.17 new text begin exceeded the city's average number of calls for multiunit rental properties for the period new text end 85.18 new text begin by at least 25 percent, adjusted for the number of rental units; new text end 85.19     new text begin (3) the police department has requested, in writing, the owners or managers of the new text end 85.20 new text begin property to enroll in the crime-free multihousing program and the owners or managers new text end 85.21 new text begin refused or failed to enroll within 60 days after the request, or failed to complete phases new text end 85.22 new text begin one and three within 90 days and all three phases of the program within a one-year time new text end 85.23 new text begin period; and new text end 85.24     new text begin (4) the governing body of the city, by resolution, determines the property is a new text end 85.25 new text begin qualifying property under clauses (1) to (3). new text end 85.26     new text begin (c) Calls for police or emergency assistance in response to domestic abuse or new text end 85.27 new text begin medical assistance shall not be counted toward the number of calls in paragraph (b), clause new text end 85.28 new text begin (2). For purposes of this section, "domestic abuse" has the meaning given in Minnesota new text end 85.29 new text begin Statutes, section 518B.01, subdivision 2. new text end 85.30     new text begin (d) Low-income qualifying rental housing property classified as class 4d property new text end 85.31 new text begin for taxes payable in 2008 must meet the requirements of this section by May 15, 2011. new text end 85.32 new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end new text begin This section is effective the day after new text end 85.33 new text begin compliance by the governing body of the city of Brooklyn Center and its chief clerical new text end 85.34 new text begin officer with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 85.35    Sec. 58. new text begin ASSESSMENT OF PROPERTIES OF PURELY PUBLIC CHARITIES. new text end 86.1     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin (a) To facilitate a review by the 2009 legislature of new text end 86.2 new text begin the property tax exemption for property of nonprofit organizations as purely public new text end 86.3 new text begin charities and the development of standards and criteria for the tax status of these facilities, new text end 86.4 new text begin this section: new text end 86.5     new text begin (1) requires the commissioner of revenue to conduct an analysis of standards applied new text end 86.6 new text begin to determine the tax status of these organizations; and new text end 86.7     new text begin (2) prohibits changes in assessment practices and policies regarding the property of new text end 86.8 new text begin these organizations. new text end 86.9     new text begin (b) The purpose of this study is to allow the legislature to evaluate whether the new text end 86.10 new text begin judicially established rules and the assessment practices and policies in applying those new text end 86.11 new text begin rules to determine the tax status of these properties ensure that public benefits are, at new text end 86.12 new text begin least, commensurate with the costs of the exemption. The legislature does not intend, in new text end 86.13 new text begin requiring this study, to indicate an intention to expand or to narrow the existing rules for new text end 86.14 new text begin exempting institutions of purely public charity. new text end 86.15     new text begin Subd. 2. new text end new text begin Report by commissioner of revenue. new text end new text begin (a) The commissioner of revenue new text end 86.16 new text begin shall survey all county assessors on: new text end 86.17     new text begin (1) the tax status of property of institutions of purely public charity located in the new text end 86.18 new text begin state, including details on the type of organization and the use of the property; and new text end 86.19     new text begin (2) their practices and policies in determining the tax status of property of institutions new text end 86.20 new text begin of purely public charity, including the extent to which the assessment practices and new text end 86.21 new text begin policies require the institutions to provide goods or services at free or below market prices new text end 86.22 new text begin and on the treatment of government payments. new text end 86.23     new text begin (b) The commissioner shall report the findings to the chairs of the house of new text end 86.24 new text begin representatives and senate committees with jurisdiction over taxation by February 1, 2009. new text end 86.25     new text begin Subd. 3. new text end new text begin Moratorium on changes in assessment practices. new text end new text begin (a) An assessor new text end 86.26 new text begin may not change the current practices or policies used generally in assessing property new text end 86.27 new text begin of institutions of purely public charities. new text end 86.28     new text begin (b) An assessor may not change the assessment of the taxable status of an existing new text end 86.29 new text begin property of an organization of purely public charity, unless the change is made as a result of new text end 86.30 new text begin a change in ownership, occupancy or use of the facility, or to correct an error. For currently new text end 86.31 new text begin taxable properties, the assessor may change the estimated market value of the property. new text end 86.32     new text begin (c) This subdivision expires on the earlier of: new text end 86.33     new text begin (1) the enactment of legislation establishing criteria for the property taxation of new text end 86.34 new text begin purely public charities; or new text end 86.35     new text begin (2) adjournment of the 2009 regular legislative session to a date in calendar year new text end 86.36 new text begin 2010. new text end 87.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2008 assessment, taxes new text end 87.2 new text begin payable in 2009. new text end 87.3    Sec. 59. new text begin REPEALER. new text end 87.4 new text begin (a) new text end new text begin Minnesota Statutes 2006, section 273.111, subdivision 6, new text end new text begin is repealed. new text end 87.5 new text begin (b) new text end new text begin Minnesota Statutes 2006, section 473.4461, new text end new text begin is repealed. new text end 87.6 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxes payable in 2010 and new text end 87.7 new text begin thereafter. Paragraph (b) is effective for taxes payable in 2009 and thereafter. new text end 87.8ARTICLE 4 87.9LOCAL SALES TAXES 87.10    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, as amended by 87.11Laws 2008, chapter 152, article 4, section 1, is amended to read: 87.12    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 87.13impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, 87.14(3) if permitted by special law new text begin enacted prior to May 20, 2008 new text end , or (4) if the political 87.15subdivision enacted and imposed the tax before the effective date of section 477A.016 and 87.16its predecessor provision. 87.17    (b) This section governs the imposition of a general sales tax by the political 87.18subdivision. The provisions of this section preempt the provisions of any special law: 87.19    (1) enacted before June 2, 1997, or 87.20    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 87.21provision from this section's rules by reference. 87.22    (c) This section does not apply to or preempt a sales tax on motor vehicles or a 87.23special excise tax on motor vehicles. 87.24     new text begin (d) Until after December 31, 2011, a political subdivision may not advertise, new text end 87.25 new text begin promote, expend funds, or hold a referendum to support imposing a local option sales tax new text end 87.26 new text begin unless the tax was authorized by a special law enacted prior to May 20, 2008. new text end 87.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.28    Sec. 2. new text begin CITY OF CLEARWATER; TAXES AUTHORIZED. new text end 87.29     new text begin Subdivision 1. new text end new text begin Sales and use tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 87.30 new text begin 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the new text end 87.31 new text begin approval of the voters on November 7, 2006, the city of Clearwater may impose by new text end 87.32 new text begin ordinance a sales and use tax of up to one-half of one percent for the purposes specified in new text end 88.1 new text begin subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota new text end 88.2 new text begin Statutes, section 297A.99, govern the imposition, administration, collection, and new text end 88.3 new text begin enforcement of the tax authorized under this subdivision. new text end 88.4     new text begin Subd. 2. new text end new text begin Excise tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 88.5 new text begin 477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater new text end 88.6 new text begin may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up new text end 88.7 new text begin to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person new text end 88.8 new text begin engaged within the city in the business of selling motor vehicles at retail. new text end 88.9     new text begin Subd. 3. new text end new text begin Use of revenues. new text end new text begin The proceeds of the tax imposed under this section shall new text end 88.10 new text begin be used to pay for the costs of acquisition, construction, improvement, and development new text end 88.11 new text begin of a pedestrian bridge, and land and buildings for a community and recreation center. The new text end 88.12 new text begin total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund new text end 88.13 new text begin these projects is $12,000,000 plus any associated bond costs. new text end 88.14     new text begin Subd. 4. new text end new text begin Bonding authority. new text end new text begin The city of Clearwater may issue bonds in an amount new text end 88.15 new text begin not to exceed $12,000,000 under Minnesota Statutes, chapter 475, to finance the capital new text end 88.16 new text begin expenditures and improvements authorized by the referendum under subdivision 3. An new text end 88.17 new text begin election to approve the bonds under Minnesota Statutes, section 475.59, is not required. new text end 88.18 new text begin The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section new text end 88.19 new text begin 275.60 or 275.61. The debt represented by the bonds must not be included in computing new text end 88.20 new text begin any debt limitations applicable to the city, and the levy of taxes required by Minnesota new text end 88.21 new text begin Statutes, section 475.61, to pay the principal or any interest on the bonds must not be new text end 88.22 new text begin subject to any levy limitation. new text end 88.23     new text begin Subd. 5. new text end new text begin Termination of tax. new text end new text begin The tax authorized under subdivision 1 terminates at new text end 88.24 new text begin the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the new text end 88.25 new text begin city council determines that sufficient funds have been raised from the tax to finance the new text end 88.26 new text begin capital and administrative costs of the improvements described in subdivision 3, plus the new text end 88.27 new text begin additional amount needed to pay the costs related to issuance of bonds under subdivision new text end 88.28 new text begin 4, including interest on the bonds. Any funds remaining after completion of the projects new text end 88.29 new text begin specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may new text end 88.30 new text begin be placed in the general fund of the city. The tax imposed under subdivision 1 may expire new text end 88.31 new text begin at an earlier time if the city so determines by ordinance. new text end 88.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 88.33 new text begin governing body of the city of Clearwater with Minnesota Statutes, section 645.021, new text end 88.34 new text begin subdivisions 2 and 3. new text end 88.35    Sec. 3. new text begin CITY OF NORTH MANKATO; TAXES AUTHORIZED. new text end 89.1     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 89.2 new text begin section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to new text end 89.3 new text begin the approval of the voters on November 7, 2006, the city of North Mankato may impose new text end 89.4 new text begin by ordinance a sales and use tax of one-half of one percent for the purposes specified new text end 89.5 new text begin in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the new text end 89.6 new text begin imposition, administration, collection, and enforcement of the taxes authorized under new text end 89.7 new text begin this subdivision. new text end 89.8     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin Revenues received from the tax authorized by new text end 89.9 new text begin subdivision 1 must be used to pay all or part of the capital costs of the following projects: new text end 89.10     new text begin (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 new text end 89.11 new text begin interchange project; new text end 89.12     new text begin (2) development of regional parks and hiking and biking trails; new text end 89.13     new text begin (3) expansion of the North Mankato Taylor Library; new text end 89.14     new text begin (4) riverfront redevelopment; and new text end 89.15     new text begin (5) lake improvement projects. new text end 89.16     new text begin The total amount of revenues from the tax in subdivision 1 that may be used to fund new text end 89.17 new text begin these projects is $6,000,000 plus any associated bond costs. new text end 89.18     new text begin Subd. 3. new text end new text begin Bonds. new text end new text begin (a) The city of North Mankato, pursuant to the approval of the new text end 89.19 new text begin voters at the November 7, 2006, referendum authorizing the imposition of the taxes in new text end 89.20 new text begin this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and new text end 89.21 new text begin administrative expenses for the projects described in subdivision 2 in an amount that new text end 89.22 new text begin does not exceed $6,000,000. A separate election to approve the bonds under Minnesota new text end 89.23 new text begin Statutes, section 475.58, is not required. new text end 89.24     new text begin (b) The debt represented by the bonds is not included in computing any debt new text end 89.25 new text begin limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section new text end 89.26 new text begin 475.61, to pay principal and interest on the bonds is not subject to any levy limitation. new text end 89.27     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires new text end 89.28 new text begin when the city council determines that the amount of revenues received from the taxes new text end 89.29 new text begin to pay for the projects under subdivision 2, first equals or exceeds $6,000,000 plus the new text end 89.30 new text begin additional amount needed to pay the costs related to issuance of bonds under subdivision new text end 89.31 new text begin 3, including interest on the bonds. Any funds remaining after completion of the projects new text end 89.32 new text begin and retirement or redemption of the bonds shall be placed in a capital facilities and new text end 89.33 new text begin equipment replacement fund of the city. The tax imposed under subdivision 1 may expire new text end 89.34 new text begin at an earlier time if the city so determines by ordinance. new text end 90.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 90.2 new text begin governing body of the city of North Mankato with Minnesota Statutes, section 645.021, new text end 90.3 new text begin subdivision 3. new text end 90.4    Sec. 4. new text begin CITY OF WINONA; TAXES AUTHORIZED. new text end 90.5     new text begin Subdivision 1. new text end new text begin Sales and use tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 90.6 new text begin 477A.016, or any other provision of law, ordinance, or city charter, if approved by the new text end 90.7 new text begin voters at a general or special election held before December 31, 2009, the city of Winona new text end 90.8 new text begin may impose by ordinance a sales and use tax of up to one-half of one percent for the new text end 90.9 new text begin purpose specified in subdivision 2. Except as otherwise provided in this section, the new text end 90.10 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 90.11 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 90.12     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin The proceeds of the tax imposed under this section shall new text end 90.13 new text begin be used to pay the city-borne costs for the construction of a street connection from the new text end 90.14 new text begin city of Winona to Minnesota State Highways 61 and 43. The construction will provide new text end 90.15 new text begin access to the city's newly built industrial park and additional access to a hospital. The total new text end 90.16 new text begin amount of revenues from the tax in subdivision 1 that may be used to fund this project is new text end 90.17 new text begin $8,000,000 plus any associated bond costs. new text end 90.18     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin The city of Winona may issue bonds in an amount new text end 90.19 new text begin not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital new text end 90.20 new text begin expenditures under subdivision 2. An election to approve the bonds under Minnesota new text end 90.21 new text begin Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is new text end 90.22 new text begin not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the new text end 90.23 new text begin bonds must not be included in computing any debt limitations applicable to the city, and new text end 90.24 new text begin the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or new text end 90.25 new text begin any interest on the bonds must not be subject to any levy limitation. new text end 90.26     new text begin Subd. 4. new text end new text begin Termination of tax. new text end new text begin The tax authorized under subdivision 1 terminates new text end 90.27 new text begin at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when new text end 90.28 new text begin the city council determines that sufficient funds have been raised from the tax to finance new text end 90.29 new text begin the capital and administrative costs of the project described in subdivision 2, plus the new text end 90.30 new text begin additional amount needed to pay the costs related to issuance of bonds under subdivision new text end 90.31 new text begin 3, including interest on the bonds. Any funds remaining after completion of the project new text end 90.32 new text begin specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may new text end 90.33 new text begin be placed in the general fund of the city. The tax imposed under subdivision 1 may expire new text end 90.34 new text begin at an earlier time if the city so determines by ordinance. new text end 91.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by new text end 91.2 new text begin the governing body of the city of Winona with Minnesota Statutes, section 645.021, new text end 91.3 new text begin subdivisions 2 and 3. new text end