<a id="pl.1.3"></a><var>1.3</var>aids to local governments; providing city foreclosure grants; changing and <br/>
<a id="pl.1.4"></a><var>1.4</var>providing property tax exemptions and credits; modifying green acre eligibility <br/>
<a id="pl.1.5"></a><var>1.5</var>requirements; providing for senior citizen and seasonal recreational property <br/>
<a id="pl.1.6"></a><var>1.6</var>tax deferral programs; modifying transit taxing district; modifying levies, <br/>
<a id="pl.1.7"></a><var>1.7</var>property valuation procedures, homestead provisions, property tax classes, <br/>
<a id="pl.1.8"></a><var>1.8</var>and class rates; modifying, extending, and authorizing certain tax increment <br/>
<a id="pl.1.9"></a><var>1.9</var>financing districts; authorizing and modifying local sales taxes; requiring <br/>
<a id="pl.1.10"></a><var>1.10</var>studies; providing appointments; appropriating money;amending Minnesota <br/>
<a id="pl.1.11"></a><var>1.11</var>Statutes 2006, sections 216B.1646; 270C.85, subdivision 2; 272.02, by adding <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivisions; 273.11, subdivisions 1, 1a, by adding subdivisions; 273.111, <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivisions 3, as amended, 4, 8, 9, 11, 11a, by adding a subdivision; 273.121, as <br/>
<a id="pl.1.14"></a><var>1.14</var>amended; 273.124, subdivision 1; 273.13, subdivisions 23, as amended, 24, 25, <br/>
<a id="pl.1.15"></a><var>1.15</var>as amended; 273.1384, subdivision 1; 274.14; 275.065, subdivisions 1c, 6, 8, 9, <br/>
<a id="pl.1.16"></a><var>1.16</var>10, by adding subdivisions; 276.04, subdivision 2, as amended; 282.08; 290.01, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivision 19a, as amended; 290A.03, subdivision 13; 290A.04, subdivisions <br/>
<a id="pl.1.18"></a><var>1.18</var>2h, 3, 4, by adding a subdivision; 290B.03, subdivision 1; 290B.04, subdivisions <br/>
<a id="pl.1.19"></a><var>1.19</var>3, 4; 290B.05, subdivision 1; 290B.07; 297A.99, subdivision 1, as amended; <br/>
<a id="pl.1.20"></a><var>1.20</var>469.1813, subdivision 8; 473.446, subdivisions 2, 8; 477A.011, subdivisions 34, <br/>
<a id="pl.1.21"></a><var>1.21</var>36, as amended, by adding subdivisions; 477A.0124, subdivision 5; 477A.013, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivisions 1, 8, as amended, 9, as amended; 477A.03; Minnesota Statutes 2007 <br/>
<a id="pl.1.23"></a><var>1.23</var>Supplement, sections 273.124, subdivision 14; 273.1393; 275.065, subdivisions <br/>
<a id="pl.1.24"></a><var>1.24</var>1, 1a, 3; Laws 2008, chapter 154, article 2, section 11; proposing coding for <br/>
<a id="pl.1.25"></a><var>1.25</var>new law in Minnesota Statutes, chapter 273; proposing coding for new law as <br/>
<a id="pl.1.26"></a><var>1.26</var>Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2006, sections <br/>
<a id="pl.1.27"></a><var>1.27</var>273.111, subdivision 6; 290A.04, subdivisions 2, 2b; 473.4461.<br/>
<a id="pl.1.28"></a><var>1.28</var> BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.31"></a><var>1.31</var>    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to <br/>
<a id="pl.1.32"></a><var>1.32</var>read:<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subdivision 1. <b>Residential homestead market value credit.</b> (a) Each county <br/>
<a id="pl.2.2"></a><var>2.2</var>auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead <br/>
<a id="pl.2.3"></a><var>2.3</var>property within the county equal to 0.4 percent of the first $76,000 of market value <br/>
<a id="pl.2.4"></a><var>2.4</var>of the property minus .09 percent of the market value in excess of $76,000. The credit <br/>
<a id="pl.2.5"></a><var>2.5</var>amount may not be less than zero. In the case of an agricultural or resort homestead, only <br/>
<a id="pl.2.6"></a><var>2.6</var>the market value of the house, garage, and immediately surrounding one acre of land is <br/>
<a id="pl.2.7"></a><var>2.7</var>eligible in determining the property's homestead credit. In the case of a property that <br/>
<a id="pl.2.8"></a><var>2.8</var>is classified as part homestead and part nonhomestead, (i) the credit shall apply only <br/>
<a id="pl.2.9"></a><var>2.9</var>to the homestead portion of the property, but (ii) if a portion of a property is classified <br/>
<a id="pl.2.10"></a><var>2.10</var>as nonhomestead solely because not all the owners occupy the property, not all the <br/>
<a id="pl.2.11"></a><var>2.11</var>owners have qualifying relatives occupying the property, or solely because not all the <br/>
<a id="pl.2.12"></a><var>2.12</var>spouses of owners occupy the property, the credit amount shall be initially computed as <br/>
<a id="pl.2.13"></a><var>2.13</var>if that nonhomestead portion were also in the homestead class and then prorated to the <br/>
<a id="pl.2.14"></a><var>2.14</var>owner-occupant's percentage of ownership. For the purpose of this section, when an <br/>
<a id="pl.2.15"></a><var>2.15</var>owner-occupant's spouse does not occupy the property, the percentage of ownership for <br/>
<a id="pl.2.16"></a><var>2.16</var>the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.2.17"></a><var>2.17</var>    (b) For property taxes payable in 2009 and thereafter, the county auditor shall <br/>
<a id="pl.2.18"></a><var>2.18</var>determine the amount of the homestead credit under paragraph (a) and this paragraph. <br/>
<a id="pl.2.19"></a><var>2.19</var>The county auditor shall report the amount of the credit to the taxpayer on the property <br/>
<a id="pl.2.20"></a><var>2.20</var>tax statement or in another manner, as authorized by the commissioner of revenue. The <br/>
<a id="pl.2.21"></a><var>2.21</var>amount of the credit allowed for the property taxes payable year is to be computed as the <br/>
<a id="pl.2.22"></a><var>2.22</var>following percentage of the credit amount under paragraph (a):<br/>
<a id="pl.2.23"></a><var>2.23</var>    (1) for property taxes payable in 2009, 100 percent;<br/>
<a id="pl.2.24"></a><var>2.24</var>    (2) for property taxes payable in 2010, 60 percent;<br/>
<a id="pl.2.25"></a><var>2.25</var>    (3) for property taxes payable in 2011, 45 percent;<br/>
<a id="pl.2.26"></a><var>2.26</var>    (4) for property taxes payable in 2012, 30 percent;<br/>
<a id="pl.2.27"></a><var>2.27</var>    (5) for property taxes payable in 2013, 15 percent; and<br/>
<a id="pl.2.28"></a><var>2.28</var>    (6) for property taxes payable in 2014 or thereafter, no credit is allowed.<br/>
<a id="pl.2.29"></a><var>2.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning for property taxes payable <br/>
<a id="pl.2.30"></a><var>2.30</var>in 2009.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.31"></a><var>2.31</var>    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, as amended by Laws <br/>
<a id="pl.2.32"></a><var>2.32</var>2008, chapter 154, article 2, section 19, is amended to read:<br/>
<a id="pl.2.33"></a><var>2.33</var>    Subd. 2.  <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.2.34"></a><var>2.34</var>printing of the tax statements. The commissioner of revenue shall prescribe the form <br/>
<a id="pl.2.35"></a><var>2.35</var>of the property tax statement and its contents. The statement must contain a tabulated <br/>
<a id="pl.3.1"></a><var>3.1</var>statement of the dollar amount due to each taxing authority and the amount of the state <br/>
<a id="pl.3.2"></a><var>3.2</var>tax from the parcel of real property for which a particular tax statement is prepared. The <br/>
<a id="pl.3.3"></a><var>3.3</var>dollar amounts attributable to the county, the state tax, the voter approved school tax, the <br/>
<a id="pl.3.4"></a><var>3.4</var>other local school tax, the township or municipality, and the total of the metropolitan <br/>
<a id="pl.3.5"></a><var>3.5</var>special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must <br/>
<a id="pl.3.6"></a><var>3.6</var>be separately stated. The amounts due all other special taxing districts, if any, may be <br/>
<a id="pl.3.7"></a><var>3.7</var>aggregated except that any levies made by the regional rail authorities in the county of <br/>
<a id="pl.3.8"></a><var>3.8</var>Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A <br/>
<a id="pl.3.9"></a><var>3.9</var>shall be listed on a separate line directly under the appropriate county's levy. If the county <br/>
<a id="pl.3.10"></a><var>3.10</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.3.11"></a><var>3.11</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br/>
<a id="pl.3.12"></a><var>3.12</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.3.13"></a><var>3.13</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.3.14"></a><var>3.14</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.3.15"></a><var>3.15</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.3.16"></a><var>3.16</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.3.17"></a><var>3.17</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.3.18"></a><var>3.18</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br/>
<a id="pl.3.19"></a><var>3.19</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.3.20"></a><var>3.20</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.3.21"></a><var>3.21</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.3.22"></a><var>3.22</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.3.23"></a><var>3.23</var>also be listed on the tax statement. <br/>
<a id="pl.3.24"></a><var>3.24</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.3.25"></a><var>3.25</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.3.26"></a><var>3.26</var>tax statements for real property. <br/>
<a id="pl.3.27"></a><var>3.27</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.3.28"></a><var>3.28</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.3.29"></a><var>3.29</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.3.30"></a><var>3.30</var>in a column on the left: <br/>
<a id="pl.3.31"></a><var>3.31</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>; <br/>
<a id="pl.3.32"></a><var>3.32</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.3.33"></a><var>3.33</var>subdivisions 1a and 16
         </statute_ref>; <br/>
<a id="pl.3.34"></a><var>3.34</var>    (3) the property's gross tax, before credits; any items required by the commissioner <br/>
<a id="pl.3.35"></a><var>3.35</var>of revenue under section 273.1384, subdivision 1, paragraph (b); and <br/>
<a id="pl.4.1"></a><var>4.1</var>    (4) for homestead residential and agricultural properties, the credits under section <br/>
<a id="pl.4.2"></a><var>4.2</var><statute_ref>273.1384</statute_ref>; <br/>
<a id="pl.4.3"></a><var>4.3</var>    (5) any credits received under sections 
<statute_ref>273.119</statute_ref>; 
<statute_ref>273.123</statute_ref>; 
<statute_ref>273.135</statute_ref>; 
<statute_ref>273.1391</statute_ref>; <br/>
<a id="pl.4.4"></a><var>4.4</var><statute_ref>273.1398, subdivision 4</statute_ref>; 
<statute_ref>469.171</statute_ref>; and 
<statute_ref>473H.10</statute_ref>, except that the amount of credit received <br/>
<a id="pl.4.5"></a><var>4.5</var>under section 
<statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax relief"; and <br/>
<a id="pl.4.6"></a><var>4.6</var>    (6) (4) the net tax payable in the manner required in paragraph (a). <br/>
<a id="pl.4.7"></a><var>4.7</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.4.8"></a><var>4.8</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.4.9"></a><var>4.9</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.4.10"></a><var>4.10</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.4.11"></a><var>4.11</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.4.12"></a><var>4.12</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.4.13"></a><var>4.13</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.4.14"></a><var>4.14</var>the information on a single announcement. <br/>
<a id="pl.4.15"></a><var>4.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.4.16"></a><var>4.16</var>thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.17"></a><var>4.17</var>    Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 19a, as amended by Laws <br/>
<a id="pl.4.18"></a><var>4.18</var>2008, chapter 154, article 3, section 2, and Laws 2008, chapter 154, article 4, section 3, <br/>
<a id="pl.4.19"></a><var>4.19</var>is amended to read:<br/>
<a id="pl.4.20"></a><var>4.20</var>    Subd. 19a.  <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.4.21"></a><var>4.21</var>trusts, there shall be added to federal taxable income: <br/>
<a id="pl.4.22"></a><var>4.22</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.4.23"></a><var>4.23</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.4.24"></a><var>4.24</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.4.25"></a><var>4.25</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.4.26"></a><var>4.26</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.4.27"></a><var>4.27</var>Code, except the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.4.28"></a><var>4.28</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.4.29"></a><var>4.29</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.4.30"></a><var>4.30</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.4.31"></a><var>4.31</var>95 percent or more of the exempt-interest dividends that are paid by the regulated <br/>
<a id="pl.4.32"></a><var>4.32</var>investment company as defined in section 851(a) of the Internal Revenue Code, or the <br/>
<a id="pl.4.33"></a><var>4.33</var>fund of the regulated investment company as defined in section 851(g) of the Internal <br/>
<a id="pl.4.34"></a><var>4.34</var>Revenue Code, making the payment; and<br/>
<a id="pl.5.1"></a><var>5.1</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.5.2"></a><var>5.2</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.5.3"></a><var>5.3</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.5.4"></a><var>5.4</var>    (2) the amount of (i) income or sales and use taxes paid or accrued within the <br/>
<a id="pl.5.5"></a><var>5.5</var>taxable year under this chapter and the amount of taxes based on net income paid or sales <br/>
<a id="pl.5.6"></a><var>5.6</var>and use taxes paid to any other state or to any province or territory of Canada, and (ii) <br/>
<a id="pl.5.7"></a><var>5.7</var>the amount of real and personal property taxes paid or accrued within the taxable year, <br/>
<a id="pl.5.8"></a><var>5.8</var>to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, <br/>
<a id="pl.5.9"></a><var>5.9</var>but the addition may not be more than the amount by which the itemized deductions as <br/>
<a id="pl.5.10"></a><var>5.10</var>allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the <br/>
<a id="pl.5.11"></a><var>5.11</var>standard deduction as defined in section 63(c) of the Internal Revenue Code. For the <br/>
<a id="pl.5.12"></a><var>5.12</var>purpose of this paragraph, the disallowance of itemized deductions under section 68 of the <br/>
<a id="pl.5.13"></a><var>5.13</var>Internal Revenue Code of 1986, income or sales and use tax is the last itemized deduction <br/>
<a id="pl.5.14"></a><var>5.14</var>disallowed, real property tax is the second to last itemized deduction disallowed, and <br/>
<a id="pl.5.15"></a><var>5.15</var>personal property tax is the third to last itemized deduction disallowed;<br/>
<a id="pl.5.16"></a><var>5.16</var>    (3) the capital gain amount of a lump sum distribution to which the special tax under <br/>
<a id="pl.5.17"></a><var>5.17</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.5.18"></a><var>5.18</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.5.19"></a><var>5.19</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.5.20"></a><var>5.20</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.5.21"></a><var>5.21</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.5.22"></a><var>5.22</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.5.23"></a><var>5.23</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10</statute_ref> <br/>
<a id="pl.5.24"></a><var>5.24</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.5.25"></a><var>5.25</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.5.26"></a><var>5.26</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.5.27"></a><var>5.27</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.5.28"></a><var>5.28</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.5.29"></a><var>5.29</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.5.30"></a><var>5.30</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.5.31"></a><var>5.31</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.5.32"></a><var>5.32</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.5.33"></a><var>5.33</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.5.34"></a><var>5.34</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.5.35"></a><var>5.35</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.6.1"></a><var>6.1</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.6.2"></a><var>6.2</var>under section 168(k) is allowed;<br/>
<a id="pl.6.3"></a><var>6.3</var>    (8) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.6.4"></a><var>6.4</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.6.5"></a><var>6.5</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.6.6"></a><var>6.6</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.6.7"></a><var>6.7</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.6.8"></a><var>6.8</var>    (10) the exclusion allowed under section 139A of the Internal Revenue Code for <br/>
<a id="pl.6.9"></a><var>6.9</var>federal subsidies for prescription drug plans;<br/>
<a id="pl.6.10"></a><var>6.10</var>    (11) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.6.11"></a><var>6.11</var>    (12) for taxable years beginning after December 31, 2006, and before January 1, <br/>
<a id="pl.6.12"></a><var>6.12</var>2008, the amount deducted for qualified tuition and related expenses under section 222 of <br/>
<a id="pl.6.13"></a><var>6.13</var>the Internal Revenue Code, to the extent deducted from gross income; and<br/>
<a id="pl.6.14"></a><var>6.14</var>    (13) for taxable years beginning after December 31, 2006, and before January 1, <br/>
<a id="pl.6.15"></a><var>6.15</var>2008, the amount deducted for certain expenses of elementary and secondary school <br/>
<a id="pl.6.16"></a><var>6.16</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted <br/>
<a id="pl.6.17"></a><var>6.17</var>from gross income.<br/>
<a id="pl.6.18"></a><var>6.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.6.19"></a><var>6.19</var>December 31, 2008.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.20"></a><var>6.20</var>    Sec. 4. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.6.21"></a><var>6.21</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property <br/>
<a id="pl.6.22"></a><var>6.22</var>tax exclusive of special assessments, penalties, and interest payable on a claimant's <br/>
<a id="pl.6.23"></a><var>6.23</var>homestead after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>,
<statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, <br/>
<a id="pl.6.24"></a><var>6.24</var>subdivision 2
         </statute_ref>, and any other state paid property tax credits in any calendar year, and <br/>
<a id="pl.6.25"></a><var>6.25</var>after any refund claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is <br/>
<a id="pl.6.26"></a><var>6.26</var>first payable in the year that the property tax is payable. Beginning for property taxes <br/>
<a id="pl.6.27"></a><var>6.27</var>payable in 2009, the amount of the credit under section 273.1384, subdivision 1, must <br/>
<a id="pl.6.28"></a><var>6.28</var>not be deducted in computing property taxes payable. In the case of a claimant who <br/>
<a id="pl.6.29"></a><var>6.29</var>makes ground lease payments, "property taxes payable" includes the amount of the <br/>
<a id="pl.6.30"></a><var>6.30</var>payments directly attributable to the property taxes assessed against the parcel on which <br/>
<a id="pl.6.31"></a><var>6.31</var>the house is located. No apportionment or reduction of the "property taxes payable" shall <br/>
<a id="pl.6.32"></a><var>6.32</var>be required for the use of a portion of the claimant's homestead for a business purpose if <br/>
<a id="pl.6.33"></a><var>6.33</var>the claimant does not deduct any business depreciation expenses for the use of a portion <br/>
<a id="pl.6.34"></a><var>6.34</var>of the homestead in the determination of federal adjusted gross income. For homesteads <br/>
<a id="pl.6.35"></a><var>6.35</var>which are manufactured homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for <br/>
<a id="pl.7.1"></a><var>7.1</var>homesteads which are park trailers taxed as manufactured homes under section 
         <statute_ref>168.012, <br/>
<a id="pl.7.2"></a><var>7.2</var>subdivision 9
         </statute_ref>, "property taxes payable" shall also include 19 percent of the gross rent paid <br/>
<a id="pl.7.3"></a><var>7.3</var>in the preceding year for the site on which the homestead is located. When a homestead <br/>
<a id="pl.7.4"></a><var>7.4</var>is owned by two or more persons as joint tenants or tenants in common, such tenants <br/>
<a id="pl.7.5"></a><var>7.5</var>shall determine between them which tenant may claim the property taxes payable on the <br/>
<a id="pl.7.6"></a><var>7.6</var>homestead. If they are unable to agree, the matter shall be referred to the commissioner of <br/>
<a id="pl.7.7"></a><var>7.7</var>revenue whose decision shall be final. Property taxes are considered payable in the year <br/>
<a id="pl.7.8"></a><var>7.8</var>prescribed by law for payment of the taxes. <br/>
<a id="pl.7.9"></a><var>7.9</var>    In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.7.10"></a><var>7.10</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.7.11"></a><var>7.11</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.7.12"></a><var>7.12</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.7.13"></a><var>7.13</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.7.14"></a><var>7.14</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.7.15"></a><var>7.15</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.7.16"></a><var>7.16</var>approved the application. <br/>
<a id="pl.7.17"></a><var>7.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning for refund claims based on <br/>
<a id="pl.7.18"></a><var>7.18</var>property taxes payable in 2009.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.7.19"></a><var>7.19</var>    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.7.20"></a><var>7.20</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a <br/>
<a id="pl.7.21"></a><var>7.21</var>homestead increase more than 12 percent over the property taxes payable in the prior year <br/>
<a id="pl.7.22"></a><var>7.22</var>on the same property that is owned and occupied by the same owner on January 2 of both <br/>
<a id="pl.7.23"></a><var>7.23</var>years, and the amount of that increase is $100 or more, a claimant who is a homeowner <br/>
<a id="pl.7.24"></a><var>7.24</var>shall be allowed an additional refund equal to 60 percent of the amount of the increase <br/>
<a id="pl.7.25"></a><var>7.25</var>over the greater of 12 percent of the prior year's property taxes payable or $100. This <br/>
<a id="pl.7.26"></a><var>7.26</var>subdivision shall not apply to any increase in the gross property taxes payable attributable <br/>
<a id="pl.7.27"></a><var>7.27</var>to improvements made to the homestead after the assessment date for the prior year's <br/>
<a id="pl.7.28"></a><var>7.28</var>taxes. This subdivision shall not apply to any increase in the gross property taxes payable <br/>
<a id="pl.7.29"></a><var>7.29</var>attributable to the termination of valuation exclusions under section  
         <statute_ref>273.11, subdivision <br/>
<a id="pl.7.30"></a><var>7.30</var>16
         </statute_ref>, or to the reduction in and elimination of the homestead market value credit under <br/>
<a id="pl.7.31"></a><var>7.31</var>section 273.1384, subdivision 1, paragraph (b). <br/>
<a id="pl.7.32"></a><var>7.32</var>    The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.7.33"></a><var>7.33</var>    (b) For purposes of this subdivision "gross property taxes payable" means property <br/>
<a id="pl.7.34"></a><var>7.34</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.8.1"></a><var>8.1</var>    (c) In addition to the other proofs required by this chapter, each claimant under <br/>
<a id="pl.8.2"></a><var>8.2</var>this subdivision shall file with the property tax refund return a copy of the property tax <br/>
<a id="pl.8.3"></a><var>8.3</var>statement for taxes payable in the preceding year or other documents required by the <br/>
<a id="pl.8.4"></a><var>8.4</var>commissioner.<br/>
<a id="pl.8.5"></a><var>8.5</var>    (d) Upon request, the appropriate county official shall make available the names and <br/>
<a id="pl.8.6"></a><var>8.6</var>addresses of the property taxpayers who may be eligible for the additional property tax <br/>
<a id="pl.8.7"></a><var>8.7</var>refund under this section. The information shall be provided on a magnetic computer <br/>
<a id="pl.8.8"></a><var>8.8</var>disk. The county may recover its costs by charging the person requesting the information <br/>
<a id="pl.8.9"></a><var>8.9</var>the reasonable cost for preparing the data. The information may not be used for any <br/>
<a id="pl.8.10"></a><var>8.10</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br/>
<a id="pl.8.11"></a><var>8.11</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.8.12"></a><var>8.12</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on property taxes <br/>
<a id="pl.8.13"></a><var>8.13</var>payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.14"></a><var>8.14</var>    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision <br/>
<a id="pl.8.15"></a><var>8.15</var>to read:<br/>
<a id="pl.8.16"></a><var>8.16</var>    Subd. 2k. <b>Homestead credit state refund.</b> (a) A claimant who is a homeowner <br/>
<a id="pl.8.17"></a><var>8.17</var>is entitled to a state refund of the amount of the property taxes payable in excess of two <br/>
<a id="pl.8.18"></a><var>8.18</var>percent of the claimant's household income, based on the percentage and maximum for the <br/>
<a id="pl.8.19"></a><var>8.19</var>appropriate household income level shown below. The refund amount determined from the <br/>
<a id="pl.8.20"></a><var>8.20</var>table must be reduced further by the amount of the homestead market value credit under <br/>
<a id="pl.8.21"></a><var>8.21</var>section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.<br/>
<table>
<col width="50px"/>
<col width="9.6"/>
<col width="9.7"/>
<col width="10.8"/>
<tr>
<td><a id="pl.8.22"></a><var>8.22</var><br/>
</td>
<td align="center" valign="bottom">Household Income<br/>
</td>
<td align="center" valign="bottom">Refund Percentage<br/>
</td>
<td align="center" valign="bottom">Maximum State Refund<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.23"></a><var>8.23</var><br/>
</td>
<td align="right" valign="bottom">0 to $5,399<br/>
</td>
<td align="right" valign="bottom">90 percent<br/>
</td>
<td align="right" valign="bottom">$2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.24"></a><var>8.24</var><br/>
</td>
<td align="right" valign="bottom">5,400 to 18,899<br/>
</td>
<td align="right" valign="bottom">85 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.25"></a><var>8.25</var><br/>
</td>
<td align="right" valign="bottom">18,900 to 26,999<br/>
</td>
<td align="right" valign="bottom">80 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.26"></a><var>8.26</var><br/>
</td>
<td align="right" valign="bottom">27,000 to 32,399<br/>
</td>
<td align="right" valign="bottom">70 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.27"></a><var>8.27</var><br/>
</td>
<td align="right" valign="bottom">32,400 to 37,799<br/>
</td>
<td align="right" valign="bottom">65 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.28"></a><var>8.28</var><br/>
</td>
<td align="right" valign="bottom">37,800 to 45,899<br/>
</td>
<td align="right" valign="bottom">60 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.29"></a><var>8.29</var><br/>
</td>
<td align="right" valign="bottom">45,900 to 64,699<br/>
</td>
<td align="right" valign="bottom">55 percent<br/>
</td>
<td align="right" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.30"></a><var>8.30</var><br/>
</td>
<td align="right" valign="bottom">64,700 to 80,899<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">2,300<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.31"></a><var>8.31</var><br/>
</td>
<td align="right" valign="bottom">80,900 to 94,399<br/>
</td>
<td align="right" valign="bottom">45 percent<br/>
</td>
<td align="right" valign="bottom">2,100<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.32"></a><var>8.32</var><br/>
</td>
<td align="right" valign="bottom">94,400 to 99,299<br/>
</td>
<td align="right" valign="bottom">40 percent<br/>
</td>
<td align="right" valign="bottom">1,900<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.33"></a><var>8.33</var><br/>
</td>
<td align="right" valign="bottom">99,300 to 104,099<br/>
</td>
<td align="right" valign="bottom">35 percent<br/>
</td>
<td align="right" valign="bottom">1,700<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.34"></a><var>8.34</var><br/>
</td>
<td align="right" valign="bottom">104,100 to 115,599<br/>
</td>
<td align="right" valign="bottom">30 percent<br/>
</td>
<td align="right" valign="bottom">1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.35"></a><var>8.35</var><br/>
</td>
<td align="right" valign="bottom">115,600 to 127,199<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">1,250<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.36"></a><var>8.36</var><br/>
</td>
<td align="right" valign="bottom">127,200 to 134,099<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.37"></a><var>8.37</var><br/>
</td>
<td align="right" valign="bottom">134,100 to 138,799<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.1"></a><var>9.1</var><br/>
</td>
<td align="right" valign="bottom">138,800 to 144,399<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.2"></a><var>9.2</var><br/>
</td>
<td align="right" valign="bottom">144,400 to 200,000<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">250<br/>
</td>
</tr>
</table><a id="pl.9.3"></a><var>9.3</var>    (b) No payment is allowed under paragraph (a) if the claimant's household income <br/>
<a id="pl.9.4"></a><var>9.4</var>is more than $200,000.<br/>
<a id="pl.9.5"></a><var>9.5</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.9.6"></a><var>9.6</var>property taxes payable in 2009.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.9.7"></a><var>9.7</var>    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read:<br/>
<a id="pl.9.8"></a><var>9.8</var>    Subd. 3. <b>Table.</b> The commissioner of revenue shall construct and make available <br/>
<a id="pl.9.9"></a><var>9.9</var>to taxpayers a comprehensive table showing the property taxes to be paid and refund <br/>
<a id="pl.9.10"></a><var>9.10</var>allowed at various levels of income and assessment. The table shall follow the schedule <br/>
<a id="pl.9.11"></a><var>9.11</var>of income percentages, maximums and other provisions specified in subdivision 2 this <br/>
<a id="pl.9.12"></a><var>9.12</var>section, except that the commissioner may graduate the transition between income <br/>
<a id="pl.9.13"></a><var>9.13</var>brackets. All refunds shall be computed in accordance with tables prepared and issued <br/>
<a id="pl.9.14"></a><var>9.14</var>by the commissioner of revenue.<br/>
<a id="pl.9.15"></a><var>9.15</var>    The commissioner shall include on the form an appropriate space or method for the <br/>
<a id="pl.9.16"></a><var>9.16</var>claimant to identify if the property taxes paid are for a manufactured home, as defined in <br/>
<a id="pl.9.17"></a><var>9.17</var>section  
         <statute_ref>273.125, subdivision 8</statute_ref>, paragraph (c), or a park trailer taxed as a manufactured <br/>
<a id="pl.9.18"></a><var>9.18</var>home under section  
         <statute_ref>168.012, subdivision 9</statute_ref>.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.19"></a><var>9.19</var>    Sec. 8. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.9.20"></a><var>9.20</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.9.21"></a><var>9.21</var>calendar year 2002 2010, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.9.22"></a><var>9.22</var>income thresholds and the maximum refunds under subdivisions 2 and 2a subdivision 2k <br/>
<a id="pl.9.23"></a><var>9.23</var>for inflation. The commissioner shall make the inflation adjustments in accordance with <br/>
<a id="pl.9.24"></a><var>9.24</var>section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision <br/>
<a id="pl.9.25"></a><var>9.25</var>the percentage increase shall be determined from the year ending on June 30, 2000 2008, <br/>
<a id="pl.9.26"></a><var>9.26</var>to the year ending on June 30 of the year preceding that in which the refund is payable. <br/>
<a id="pl.9.27"></a><var>9.27</var>The commissioner shall use the appropriate percentage increase to annually adjust the <br/>
<a id="pl.9.28"></a><var>9.28</var>income thresholds and maximum refunds under subdivisions 2 and 2a subdivision 2k for <br/>
<a id="pl.9.29"></a><var>9.29</var>inflation without regard to whether or not the income tax brackets are adjusted for inflation <br/>
<a id="pl.9.30"></a><var>9.30</var>in that year. The commissioner shall round the thresholds and the maximum amounts, <br/>
<a id="pl.9.31"></a><var>9.31</var>as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall <br/>
<a id="pl.9.32"></a><var>9.32</var>round it up to the next $10 amount.<br/>
<a id="pl.10.1"></a><var>10.1</var>    The commissioner shall annually announce the adjusted refund schedule at the same <br/>
<a id="pl.10.2"></a><var>10.2</var>time provided under section  
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under this <br/>
<a id="pl.10.3"></a><var>10.3</var>subdivision is not a rule under the Administrative Procedure Act. <br/>
<a id="pl.10.4"></a><var>10.4</var>    (b) Beginning for property tax refunds payable in calendar year 2002, the <br/>
<a id="pl.10.5"></a><var>10.5</var>commissioner shall annually adjust the dollar amounts of the income thresholds and <br/>
<a id="pl.10.6"></a><var>10.6</var>the maximum refunds under subdivision 2a for inflation. The commissioner shall make <br/>
<a id="pl.10.7"></a><var>10.7</var>the inflation adjustments in accordance with section 1(f) of the Internal Revenue Code, <br/>
<a id="pl.10.8"></a><var>10.8</var>except that for purposes of this subdivision the percentage increase shall be determined <br/>
<a id="pl.10.9"></a><var>10.9</var>from the year ending on June 30, 2000, to the year ending on June 30 of the year <br/>
<a id="pl.10.10"></a><var>10.10</var>preceding that in which the refund is payable. The commissioner shall use the appropriate <br/>
<a id="pl.10.11"></a><var>10.11</var>percentage increase to annually adjust the income thresholds and maximum refunds under <br/>
<a id="pl.10.12"></a><var>10.12</var>subdivision 2a for inflation without regard  to whether or not the income tax brackets are <br/>
<a id="pl.10.13"></a><var>10.13</var>adjusted for inflation in that year. The commissioner shall round the thresholds and the <br/>
<a id="pl.10.14"></a><var>10.14</var>maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the <br/>
<a id="pl.10.15"></a><var>10.15</var>commissioner shall round it up to the next $10 amount. The commissioner shall annually <br/>
<a id="pl.10.16"></a><var>10.16</var>announce the adjusted refund schedule at the same time  provided under section 290.06. <br/>
<a id="pl.10.17"></a><var>10.17</var>The determination of the commissioner under this subdivision is not a rule under the <br/>
<a id="pl.10.18"></a><var>10.18</var>Administrative Procedure Act. <br/>
<a id="pl.10.19"></a><var>10.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.10.20"></a><var>10.20</var>property taxes payable in 2010.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.10.21"></a><var>10.21</var>    Sec. 9. <b>REPEALER.</b><br/>
<a id="pl.10.22"></a><var>10.22</var>Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, are repealed.<br/>
<a id="pl.10.23"></a><var>10.23</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on property taxes <br/>
<a id="pl.10.24"></a><var>10.24</var>payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.10.27"></a><var>10.27</var>    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to <br/>
<a id="pl.10.28"></a><var>10.28</var>read:<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater <br/>
<a id="pl.10.30"></a><var>10.30</var>than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing <br/>
<a id="pl.10.31"></a><var>10.31</var>percentage; plus (2) 19.141678 times the population decline percentage; plus (3) <br/>
<a id="pl.10.32"></a><var>10.32</var>2504.06334 times the road accidents factor; plus (4) 
         <statute_ref>355.0547</statute_ref>; minus (5) the metropolitan <br/>
<a id="pl.10.33"></a><var>10.33</var>area factor; minus (6) 49.10638 times the household size.<br/>
<a id="pl.11.1"></a><var>11.1</var>    (b) For a city with a population less than 2,500, "city revenue need" is the sum of <br/>
<a id="pl.11.2"></a><var>11.2</var>(1) 
         <statute_ref>2.387</statute_ref> times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial <br/>
<a id="pl.11.3"></a><var>11.3</var>industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) <br/>
<statute_ref><a id="pl.11.4"></a><var>11.4</var>1.206
         </statute_ref> times the transformed population; minus (5) 
         <statute_ref>62.772</statute_ref>.<br/>
<a id="pl.11.5"></a><var>11.5</var>    (c) For a city with a population of 2,500 or more and a population in one of the most <br/>
<a id="pl.11.6"></a><var>11.6</var>recently available five years that was less than 2,500, "city revenue need" is the sum of (1) <br/>
<a id="pl.11.7"></a><var>11.7</var>its city revenue need calculated under paragraph (a) multiplied by its transition factor; <br/>
<a id="pl.11.8"></a><var>11.8</var>plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied <br/>
<a id="pl.11.9"></a><var>11.9</var>by the difference between one and its transition factor. For purposes of this paragraph, a <br/>
<a id="pl.11.10"></a><var>11.10</var>city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's <br/>
<a id="pl.11.11"></a><var>11.11</var>population estimate has been 2,500 or more. This provision only applies for aids payable <br/>
<a id="pl.11.12"></a><var>11.12</var>in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It <br/>
<a id="pl.11.13"></a><var>11.13</var>applies to any city for aids payable in 2009 and thereafter. The city revenue need under <br/>
<a id="pl.11.14"></a><var>11.14</var>this paragraph may not be less than 290.<br/>
<a id="pl.11.15"></a><var>11.15</var>    (d) The city revenue need cannot be less than zero.<br/>
<a id="pl.11.16"></a><var>11.16</var>    (e) For aids certified in 2010 and subsequent years, the city revenue need is equal <br/>
<a id="pl.11.17"></a><var>11.17</var>to the average of (1) the city's revenue need calculated under paragraphs (a) to (d) <br/>
<a id="pl.11.18"></a><var>11.18</var>based on data available by January 1 in the year the aid is certified, and (2) its revenue <br/>
<a id="pl.11.19"></a><var>11.19</var>need calculated under paragraphs (a) to (d) based on data available by January 1 in the <br/>
<a id="pl.11.20"></a><var>11.20</var>previous year.<br/>
<a id="pl.11.21"></a><var>11.21</var>    (e) (f) For calendar year 2005 and subsequent years, the city revenue need for a city, <br/>
<a id="pl.11.22"></a><var>11.22</var>as determined in paragraphs (a) to (d) (e), is multiplied by the ratio of the annual implicit <br/>
<a id="pl.11.23"></a><var>11.23</var>price deflator for government consumption expenditures and gross investment for state <br/>
<a id="pl.11.24"></a><var>11.24</var>and local governments as prepared by the United States Department of Commerce, for <br/>
<a id="pl.11.25"></a><var>11.25</var>the most recently available year to the 2003 implicit price deflator for state and local <br/>
<a id="pl.11.26"></a><var>11.26</var>government purchases.<br/>
<a id="pl.11.27"></a><var>11.27</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.11.28"></a><var>11.28</var>2010 and thereafter.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.11.29"></a><var>11.29</var>    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, as amended by <br/>
<a id="pl.11.30"></a><var>11.30</var>Laws 2008, chapter 154, article 1, section 1, is amended to read:<br/>
<a id="pl.11.31"></a><var>11.31</var>    Subd. 36.  <b>City aid base.</b> (a) Except as otherwise provided in this subdivision, <br/>
<a id="pl.11.32"></a><var>11.32</var>"city aid base" is zero. <br/>
<a id="pl.11.33"></a><var>11.33</var>    (b) The city aid base for any city with a population less than 500 is increased by <br/>
<a id="pl.11.34"></a><var>11.34</var>$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount <br/>
<a id="pl.12.1"></a><var>12.1</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.12.2"></a><var>12.2</var>increased by $40,000 for aids payable in calendar year 1995 only, provided that: <br/>
<a id="pl.12.3"></a><var>12.3</var>    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; <br/>
<a id="pl.12.4"></a><var>12.4</var>    (ii) the city portion of the tax capacity rate exceeds 100 percent; and <br/>
<a id="pl.12.5"></a><var>12.5</var>    (iii) its city aid base is less than $60 per capita. <br/>
<a id="pl.12.6"></a><var>12.6</var>    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and <br/>
<a id="pl.12.7"></a><var>12.7</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.12.8"></a><var>12.8</var>paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: <br/>
<a id="pl.12.9"></a><var>12.9</var>    (i) the city has a population in 1994 of 2,500 or more; <br/>
<a id="pl.12.10"></a><var>12.10</var>    (ii) the city is located in a county, outside of the metropolitan area, which contains a <br/>
<a id="pl.12.11"></a><var>12.11</var>city of the first class; <br/>
<a id="pl.12.12"></a><var>12.12</var>    (iii) the city's net tax capacity used in calculating its 1996 aid under section <br/>
<statute_ref><a id="pl.12.13"></a><var>12.13</var>477A.013
         </statute_ref> is less than $400 per capita; and <br/>
<a id="pl.12.14"></a><var>12.14</var>    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of <br/>
<a id="pl.12.15"></a><var>12.15</var>property located in the city is classified as railroad property. <br/>
<a id="pl.12.16"></a><var>12.16</var>    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and <br/>
<a id="pl.12.17"></a><var>12.17</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.12.18"></a><var>12.18</var>paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: <br/>
<a id="pl.12.19"></a><var>12.19</var>    (i) the city was incorporated as a statutory city after December 1, 1993; <br/>
<a id="pl.12.20"></a><var>12.20</var>    (ii) its city aid base does not exceed $5,600; and <br/>
<a id="pl.12.21"></a><var>12.21</var>    (iii) the city had a population in 1996 of 5,000 or more. <br/>
<a id="pl.12.22"></a><var>12.22</var>    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the <br/>
<a id="pl.12.23"></a><var>12.23</var>maximum amount of total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.12.24"></a><var>12.24</var>paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that: <br/>
<a id="pl.12.25"></a><var>12.25</var>    (i) the city had a population in 1996 of at least 50,000; <br/>
<a id="pl.12.26"></a><var>12.26</var>    (ii) its population had increased by at least 40 percent in the ten-year period ending <br/>
<a id="pl.12.27"></a><var>12.27</var>in 1996; and <br/>
<a id="pl.12.28"></a><var>12.28</var>    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita. <br/>
<a id="pl.12.29"></a><var>12.29</var>    (f) (e) The city aid base for a city is increased by $150,000 for aids payable in <br/>
<a id="pl.12.30"></a><var>12.30</var>2000 and thereafter, and the maximum amount of total aid it may receive under section <br/>
<statute_ref><a id="pl.12.31"></a><var>12.31</var>477A.013, subdivision 9
         </statute_ref>, paragraph (c), is also increased by $150,000 in calendar year <br/>
<a id="pl.12.32"></a><var>12.32</var>2000 only, provided that: <br/>
<a id="pl.12.33"></a><var>12.33</var>    (1) the city has a population that is greater than 1,000 and less than 2,500; <br/>
<a id="pl.12.34"></a><var>12.34</var>    (2) its commercial and industrial percentage for aids payable in 1999 is greater <br/>
<a id="pl.12.35"></a><var>12.35</var>than 45 percent; and <br/>
<a id="pl.13.1"></a><var>13.1</var>    (3) the total market value of all commercial and industrial property in the city <br/>
<a id="pl.13.2"></a><var>13.2</var>for assessment year 1999 is at least 15 percent less than the total market value of all <br/>
<a id="pl.13.3"></a><var>13.3</var>commercial and industrial property in the city for assessment year 1998. <br/>
<a id="pl.13.4"></a><var>13.4</var>    (g) (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, <br/>
<a id="pl.13.5"></a><var>13.5</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.13.6"></a><var>13.6</var>9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.13.7"></a><var>13.7</var>    (1) the city had a population in 1997 of 2,500 or more; <br/>
<a id="pl.13.8"></a><var>13.8</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.13.9"></a><var>13.9</var>477A.013
         </statute_ref> is less than $650 per capita; <br/>
<a id="pl.13.10"></a><var>13.10</var>    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under <br/>
<a id="pl.13.11"></a><var>13.11</var>section 
         <statute_ref>477A.013</statute_ref> is greater than 12 percent; <br/>
<a id="pl.13.12"></a><var>13.12</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.13.13"></a><var>13.13</var>20 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.13.14"></a><var>13.14</var>increase percentage was 100 percent; and <br/>
<a id="pl.13.15"></a><var>13.15</var>    (5) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.13.16"></a><var>13.16</var>is less than $7 per capita. <br/>
<a id="pl.13.17"></a><var>13.17</var>    (h) (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, <br/>
<a id="pl.13.18"></a><var>13.18</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.13.19"></a><var>13.19</var>9
         </statute_ref>, paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.13.20"></a><var>13.20</var>    (1) the city has a population in 1997 of 2,000 or more; <br/>
<a id="pl.13.21"></a><var>13.21</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.13.22"></a><var>13.22</var>477A.013
         </statute_ref> is less than $455 per capita; <br/>
<a id="pl.13.23"></a><var>13.23</var>    (3) the net levy of the city used in calculating 1999 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.13.24"></a><var>13.24</var>greater than $195 per capita; and <br/>
<a id="pl.13.25"></a><var>13.25</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.13.26"></a><var>13.26</var>38 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.13.27"></a><var>13.27</var>increase percentage was 100 percent. <br/>
<a id="pl.13.28"></a><var>13.28</var>    (i) (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and <br/>
<a id="pl.13.29"></a><var>13.29</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.13.30"></a><var>13.30</var>paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: <br/>
<a id="pl.13.31"></a><var>13.31</var>    (1) the city has a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.13.32"></a><var>13.32</var>    (2) the city's revenue need used in calculating aids payable in 2000 was greater <br/>
<a id="pl.13.33"></a><var>13.33</var>than $200 per capita; <br/>
<a id="pl.13.34"></a><var>13.34</var>    (3) the city net tax capacity for the city used in calculating aids available in 2000 <br/>
<a id="pl.13.35"></a><var>13.35</var>was equal to or less than $200 per capita; <br/>
<a id="pl.14.1"></a><var>14.1</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.14.2"></a><var>14.2</var>is less than $65 per capita; and <br/>
<a id="pl.14.3"></a><var>14.3</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.14.4"></a><var>14.4</var>    (j) (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and <br/>
<a id="pl.14.5"></a><var>14.5</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.14.6"></a><var>14.6</var>paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: <br/>
<a id="pl.14.7"></a><var>14.7</var>    (1) the city had a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.14.8"></a><var>14.8</var>    (2) the city's commercial industrial percentage used in calculating aids payable in <br/>
<a id="pl.14.9"></a><var>14.9</var>2000 was less than ten percent; <br/>
<a id="pl.14.10"></a><var>14.10</var>    (3) more than 25 percent of the city's population was 60 years old or older according <br/>
<a id="pl.14.11"></a><var>14.11</var>to the 1990 census; <br/>
<a id="pl.14.12"></a><var>14.12</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.14.13"></a><var>14.13</var>is less than $15 per capita; and <br/>
<a id="pl.14.14"></a><var>14.14</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.14.15"></a><var>14.15</var>    (k) (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter <br/>
<a id="pl.14.16"></a><var>14.16</var>and by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount <br/>
<a id="pl.14.17"></a><var>14.17</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.14.18"></a><var>14.18</var>increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 <br/>
<a id="pl.14.19"></a><var>14.19</var>only, provided that: <br/>
<a id="pl.14.20"></a><var>14.20</var>    (1) the net tax capacity of the city used in calculating its 2000 aid under section <br/>
<statute_ref><a id="pl.14.21"></a><var>14.21</var>477A.013
         </statute_ref> is less than $810 per capita; <br/>
<a id="pl.14.22"></a><var>14.22</var>    (2) the population of the city declined more than two percent between 1988 and 1998; <br/>
<a id="pl.14.23"></a><var>14.23</var>    (3) the net levy of the city used in calculating 2000 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.14.24"></a><var>14.24</var>greater than $240 per capita; and <br/>
<a id="pl.14.25"></a><var>14.25</var>    (4) the city received less than $36 per capita in aid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.14.26"></a><var>14.26</var>subdivision 9
         </statute_ref>, for aids payable in 2000. <br/>
<a id="pl.14.27"></a><var>14.27</var>    (l) (k) The city aid base for a city with a population of 10,000 or more which is <br/>
<a id="pl.14.28"></a><var>14.28</var>located outside of the seven-county metropolitan area is increased in 2002 and thereafter, <br/>
<a id="pl.14.29"></a><var>14.29</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.14.30"></a><var>14.30</var>9
         </statute_ref>, paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to <br/>
<a id="pl.14.31"></a><var>14.31</var>the lesser of: <br/>
<a id="pl.14.32"></a><var>14.32</var>    (1)(i) the total population of the city, as determined by the United States Bureau of <br/>
<a id="pl.14.33"></a><var>14.33</var>the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or <br/>
<a id="pl.14.34"></a><var>14.34</var>    (2) $2,500,000. <br/>
<a id="pl.15.1"></a><var>15.1</var>    (m) (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the <br/>
<a id="pl.15.2"></a><var>15.2</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.15.3"></a><var>15.3</var>paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: <br/>
<a id="pl.15.4"></a><var>15.4</var>    (1) the city is located in the seven-county metropolitan area; <br/>
<a id="pl.15.5"></a><var>15.5</var>    (2) its population in 2000 is between 10,000 and 20,000; and <br/>
<a id="pl.15.6"></a><var>15.6</var>    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, <br/>
<a id="pl.15.7"></a><var>15.7</var>was greater than 25 percent. <br/>
<a id="pl.15.8"></a><var>15.8</var>    (n) (m) The city aid base for a city is increased by $150,000 in calendar years 2002 <br/>
<a id="pl.15.9"></a><var>15.9</var>to 2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum <br/>
<a id="pl.15.10"></a><var>15.10</var>amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is <br/>
<a id="pl.15.11"></a><var>15.11</var>also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year <br/>
<a id="pl.15.12"></a><var>15.12</var>2009 only, provided that: <br/>
<a id="pl.15.13"></a><var>15.13</var>    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; <br/>
<a id="pl.15.14"></a><var>15.14</var>    (2) its home county is located within the seven-county metropolitan area; <br/>
<a id="pl.15.15"></a><var>15.15</var>    (3) its pre-1940 housing percentage is less than 15 percent; and <br/>
<a id="pl.15.16"></a><var>15.16</var>    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 <br/>
<a id="pl.15.17"></a><var>15.17</var>per capita. <br/>
<a id="pl.15.18"></a><var>15.18</var>    (o) (n) The city aid base for a city is increased by $200,000 beginning in calendar <br/>
<a id="pl.15.19"></a><var>15.19</var>year 2003 and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.15.20"></a><var>15.20</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2003 only, <br/>
<a id="pl.15.21"></a><var>15.21</var>provided that the city qualified for an increase in homestead and agricultural credit aid <br/>
<a id="pl.15.22"></a><var>15.22</var>under Laws 1995, chapter 264, article 8, section 18. <br/>
<a id="pl.15.23"></a><var>15.23</var>    (p) (o) The city aid base for a city is increased by $200,000 in 2004 only and the <br/>
<a id="pl.15.24"></a><var>15.24</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.15.25"></a><var>15.25</var>also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear <br/>
<a id="pl.15.26"></a><var>15.26</var>dry cask storage facility. <br/>
<a id="pl.15.27"></a><var>15.27</var>    (q) (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter <br/>
<a id="pl.15.28"></a><var>15.28</var>and the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.15.29"></a><var>15.29</var>increased by $10,000 in calendar year 2004 only, if the city was included in a federal <br/>
<a id="pl.15.30"></a><var>15.30</var>major disaster designation issued on April 1, 1998, and its pre-1940 housing stock was <br/>
<a id="pl.15.31"></a><var>15.31</var>decreased by more than 40 percent between 1990 and 2000. <br/>
<a id="pl.15.32"></a><var>15.32</var>    (r) (q) The city aid base for a city is increased by $30,000  in 2009 and thereafter  <br/>
<a id="pl.15.33"></a><var>15.33</var>and the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.15.34"></a><var>15.34</var>increased by $25,000 in calendar year 2006 only if the city had a population in 2003 <br/>
<a id="pl.15.35"></a><var>15.35</var>of at least 1,000 and has a state park for which the city provides rescue services and <br/>
<a id="pl.16.1"></a><var>16.1</var>which comprised at least 14 percent of the total geographic area included within the <br/>
<a id="pl.16.2"></a><var>16.2</var>city boundaries in 2000. <br/>
<a id="pl.16.3"></a><var>16.3</var>    (s) The city aid base for a city with a population less than 5,000 is increased in <br/>
<a id="pl.16.4"></a><var>16.4</var>2006 and thereafter and the minimum and maximum amount of total aid it may receive <br/>
<a id="pl.16.5"></a><var>16.5</var>under this section is also increased in calendar year 2006 only by an amount equal to <br/>
<a id="pl.16.6"></a><var>16.6</var>$6 multiplied by its population. <br/>
<a id="pl.16.7"></a><var>16.7</var>    (t) (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and <br/>
<a id="pl.16.8"></a><var>16.8</var>the minimum and maximum amount of total aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.16.9"></a><var>16.9</var>subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: <br/>
<a id="pl.16.10"></a><var>16.10</var>    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed <br/>
<a id="pl.16.11"></a><var>16.11</var>to be placed in trust status as tax-exempt Indian land; <br/>
<a id="pl.16.12"></a><var>16.12</var>    (2) the placement of the land is being challenged administratively or in court; and <br/>
<a id="pl.16.13"></a><var>16.13</var>    (3) due to the challenge, the land proposed to be placed in trust is still on the tax <br/>
<a id="pl.16.14"></a><var>16.14</var>rolls as of May 1, 2006. <br/>
<a id="pl.16.15"></a><var>16.15</var>    (u) (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter <br/>
<a id="pl.16.16"></a><var>16.16</var>and the minimum and maximum total amount of aid it may receive under this section is <br/>
<a id="pl.16.17"></a><var>16.17</var>also increased in calendar year 2007 only, provided that: <br/>
<a id="pl.16.18"></a><var>16.18</var>    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; <br/>
<a id="pl.16.19"></a><var>16.19</var>    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; <br/>
<a id="pl.16.20"></a><var>16.20</var>    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids <br/>
<a id="pl.16.21"></a><var>16.21</var>payable in 2006 was greater than 110 percent; and <br/>
<a id="pl.16.22"></a><var>16.22</var>    (4) it is located in a county where at least 15,000 acres of land are classified as <br/>
<a id="pl.16.23"></a><var>16.23</var>tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. <br/>
<a id="pl.16.24"></a><var>16.24</var>    (v) (t) The city aid base for a city is increased by $30,000 in 2009 only, and the <br/>
<a id="pl.16.25"></a><var>16.25</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.16.26"></a><var>16.26</var>by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than <br/>
<a id="pl.16.27"></a><var>16.27</var>3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities <br/>
<a id="pl.16.28"></a><var>16.28</var>and one township in 2002. <br/>
<a id="pl.16.29"></a><var>16.29</var>    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and <br/>
<a id="pl.16.30"></a><var>16.30</var>the maximum total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.16.31"></a><var>16.31</var>increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for <br/>
<a id="pl.16.32"></a><var>16.32</var>aids payable in 2007 of less than $150 per capita and the city experienced flooding on <br/>
<a id="pl.16.33"></a><var>16.33</var>March 14, 2007, that resulted in evacuation of at least 40 homes.<br/>
<a id="pl.16.34"></a><var>16.34</var>    (v) The city aid base for a city is increased by $200,000 in 2009 to 2013, and the <br/>
<a id="pl.16.35"></a><var>16.35</var>maximum total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.16.36"></a><var>16.36</var>by $200,000 in calendar year 2009 only, if the city:<br/>
<a id="pl.17.1"></a><var>17.1</var>    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical <br/>
<a id="pl.17.2"></a><var>17.2</var>area;<br/>
<a id="pl.17.3"></a><var>17.3</var>    (2) has a 2005 population greater than 7,000 but less than 8,000; and<br/>
<a id="pl.17.4"></a><var>17.4</var>    (3) has a 2005 net tax capacity per capita of less than $500.<br/>
<a id="pl.17.5"></a><var>17.5</var>    (w) The city aid base is increased by $80,000 in calendar years 2009 to 2018 and the <br/>
<a id="pl.17.6"></a><var>17.6</var>maximum amount of total aid it may receive under section 477A.013, subdivision 9, is <br/>
<a id="pl.17.7"></a><var>17.7</var>increased by $80,000 in calendar year 2009 only, provided that:<br/>
<a id="pl.17.8"></a><var>17.8</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.17.9"></a><var>17.9</var>    (2) its population in 2006 is less than 200; and <br/>
<a id="pl.17.10"></a><var>17.10</var>    (3) the percentage of its housing stock built before 1940, according to the 2000 <br/>
<a id="pl.17.11"></a><var>17.11</var>United States Census, is greater than 40 percent.<br/>
<a id="pl.17.12"></a><var>17.12</var>    (x) The city aid base for a city is increased by $100,000 in 2009 and thereafter and <br/>
<a id="pl.17.13"></a><var>17.13</var>the minimum and maximum total amount of aid it may receive under this section is also <br/>
<a id="pl.17.14"></a><var>17.14</var>increased by $100,000 in calendar year 2009 only, provided that: <br/>
<a id="pl.17.15"></a><var>17.15</var>    (1) the city is located in the metropolitan area and its 2006 population is less than <br/>
<a id="pl.17.16"></a><var>17.16</var>2,500;<br/>
<a id="pl.17.17"></a><var>17.17</var>    (2) at least 25 percent of its housing was built before 1940 and at least 50 percent of <br/>
<a id="pl.17.18"></a><var>17.18</var>its housing is rental housing, according to the 2000 United States Census;<br/>
<a id="pl.17.19"></a><var>17.19</var>    (3) the median household income in the city is 80 percent or less than the median <br/>
<a id="pl.17.20"></a><var>17.20</var>household income in the metropolitan area and 50 percent or less than the median <br/>
<a id="pl.17.21"></a><var>17.21</var>household income for all cities contiguous to that city, according to the 2000 United <br/>
<a id="pl.17.22"></a><var>17.22</var>States Census; and<br/>
<a id="pl.17.23"></a><var>17.23</var>    (4) at least 60 percent of the land and water acres in the city are classified as <br/>
<a id="pl.17.24"></a><var>17.24</var>tax-exempt property, according to its 2008 planning document.<br/>
<a id="pl.17.25"></a><var>17.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.17.26"></a><var>17.26</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.17.27"></a><var>17.27</var>    Sec. 3. Minnesota Statutes 2006, section 477A.011, is amended by adding a <br/>
<a id="pl.17.28"></a><var>17.28</var>subdivision to read:<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subd. 41. <b>Small city aid base.</b> (a) "Small city aid base" for a city with a population <br/>
<a id="pl.17.30"></a><var>17.30</var>less than 5,000 is equal to $8 multiplied by its population. The small city aid base for <br/>
<a id="pl.17.31"></a><var>17.31</var>all other cities is equal to zero.<br/>
<a id="pl.17.32"></a><var>17.32</var>    (b) For calendar year 2010 and subsequent years, the small city aid base for a city, <br/>
<a id="pl.17.33"></a><var>17.33</var>as determined in paragraph (a), is multiplied by the ratio of the annual implicit price <br/>
<a id="pl.17.34"></a><var>17.34</var>deflator for government consumption expenditures and gross investment for state and local <br/>
<a id="pl.17.35"></a><var>17.35</var>governments as prepared by the United States Department of Commerce, for the most <br/>
<a id="pl.18.1"></a><var>18.1</var>recently available year to the 2007 implicit price deflator for state and local government <br/>
<a id="pl.18.2"></a><var>18.2</var>purchases.<br/>
<a id="pl.18.3"></a><var>18.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.18.4"></a><var>18.4</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.18.5"></a><var>18.5</var>    Sec. 4. Minnesota Statutes 2006, section 477A.011, is amended by adding a <br/>
<a id="pl.18.6"></a><var>18.6</var>subdivision to read:<br/>
<a id="pl.18.7"></a><var>18.7</var>    Subd. 42. <b>City jobs base.</b> (a) "City jobs base" for a city with a population of 5,000 <br/>
<a id="pl.18.8"></a><var>18.8</var>or more is equal to the product of (1) $18, (2) the number of jobs per capita in the city, and <br/>
<a id="pl.18.9"></a><var>18.9</var>(3) its population. For cities with a population less than 5,000, the city jobs base is equal <br/>
<a id="pl.18.10"></a><var>18.10</var>to zero. For a city receiving $2,500,000 in aid under section 477A.011, subdivision 36, <br/>
<a id="pl.18.11"></a><var>18.11</var>paragraph (l), its city jobs base is reduced by 25 percent of the amount of aid received <br/>
<a id="pl.18.12"></a><var>18.12</var>under that paragraph. No city's job base may exceed $5,000,000 under this paragraph.<br/>
<a id="pl.18.13"></a><var>18.13</var>    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as <br/>
<a id="pl.18.14"></a><var>18.14</var>determined in paragraph (a), is multiplied by the ratio of the annual implicit price deflator <br/>
<a id="pl.18.15"></a><var>18.15</var>for government consumption expenditures and gross investment for state and local <br/>
<a id="pl.18.16"></a><var>18.16</var>governments as prepared by the United States Department of Commerce, for the most <br/>
<a id="pl.18.17"></a><var>18.17</var>recently available year to the 2007 implicit price deflator for state and local government <br/>
<a id="pl.18.18"></a><var>18.18</var>purchases.<br/>
<a id="pl.18.19"></a><var>18.19</var>    (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the <br/>
<a id="pl.18.20"></a><var>18.20</var>average annual number of employees in the city based on the data from the Quarterly <br/>
<a id="pl.18.21"></a><var>18.21</var>Census of Employment and Wages, as reported by the Department of Employment and <br/>
<a id="pl.18.22"></a><var>18.22</var>Economic Development, for the most recent calendar year available as of January 1 of <br/>
<a id="pl.18.23"></a><var>18.23</var>the year in which the aid is calculated, divided by (2) the city's population for the same <br/>
<a id="pl.18.24"></a><var>18.24</var>calendar year as the employment data.<br/>
<a id="pl.18.25"></a><var>18.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.18.26"></a><var>18.26</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.18.27"></a><var>18.27</var>    Sec. 5. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:<br/>
<a id="pl.18.28"></a><var>18.28</var>    Subd. 5. <b>County transition aid.</b> (a) For 2005, a county is eligible for transition <br/>
<a id="pl.18.29"></a><var>18.29</var>aid equal to the amount, if any, by which:<br/>
<a id="pl.18.30"></a><var>18.30</var>    (1) the difference between:<br/>
<a id="pl.18.31"></a><var>18.31</var>    (i) the aid the county received under subdivision 1 in 2004, divided by the total aid <br/>
<a id="pl.18.32"></a><var>18.32</var>paid to all counties under subdivision 1, multiplied by $205,000,000; and<br/>
<a id="pl.19.1"></a><var>19.1</var>    (ii) the amount of aid the county is certified to receive in 2005 under subdivisions <br/>
<a id="pl.19.2"></a><var>19.2</var>3 and 4;<br/>
<a id="pl.19.3"></a><var>19.3</var>exceeds:<br/>
<a id="pl.19.4"></a><var>19.4</var>    (2) three percent of the county's adjusted net tax capacity.<br/>
<a id="pl.19.5"></a><var>19.5</var>A county's aid under this paragraph may not be less than zero.<br/>
<a id="pl.19.6"></a><var>19.6</var>    (b) In 2006, a county is eligible to receive two-thirds of the transition aid it received <br/>
<a id="pl.19.7"></a><var>19.7</var>in 2005.<br/>
<a id="pl.19.8"></a><var>19.8</var>    (c) In 2007, For 2009 and each year thereafter, a county is eligible to receive <br/>
<a id="pl.19.9"></a><var>19.9</var>one-third of the transition aid it received in 2005 2007.<br/>
<a id="pl.19.10"></a><var>19.10</var>    (d) No county shall receive aid under this subdivision after 2007.<br/>
<a id="pl.19.11"></a><var>19.11</var>    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) <br/>
<a id="pl.19.12"></a><var>19.12</var>an average Part I crimes per capita greater than 3.9 percent based on factors used in <br/>
<a id="pl.19.13"></a><var>19.13</var>determining county program aid payable in 2008, shall receive $100,000.<br/>
<a id="pl.19.14"></a><var>19.14</var>    (c) For aids payable in 2009, 2010, and 2011 only, $250,000 each year shall be <br/>
<a id="pl.19.15"></a><var>19.15</var>distributed to any county in which (1) the 2006 estimated population exceeds 30,000, and <br/>
<a id="pl.19.16"></a><var>19.16</var>(2) the 2006 percentage of households receiving food stamps exceeds 15 percent, based <br/>
<a id="pl.19.17"></a><var>19.17</var>on data used in computing county program aids for aids payable in 2008 and the 2006 <br/>
<a id="pl.19.18"></a><var>19.18</var>estimated household count according to the state demographer. The aid must be used to <br/>
<a id="pl.19.19"></a><var>19.19</var>meet the county's cost of out-of-home placement programs.<br/>
<a id="pl.19.20"></a><var>19.20</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2009 and <br/>
<a id="pl.19.21"></a><var>19.21</var>thereafter.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.19.22"></a><var>19.22</var>    Sec. 6. Minnesota Statutes 2006, section 477A.013, subdivision 1, is amended to read:<br/>
<a id="pl.19.23"></a><var>19.23</var>    Subdivision 1. <b>Towns.</b> In 2002, no In calendar year 2009 and subsequent years, <br/>
<a id="pl.19.24"></a><var>19.24</var>each organized town is eligible for a distribution under this subdivision equal to $100 plus <br/>
<a id="pl.19.25"></a><var>19.25</var>the product of the town aid factor multiplied by its population. Each county with one or <br/>
<a id="pl.19.26"></a><var>19.26</var>more unorganized townships shall receive $100 plus the product of the town aid factor <br/>
<a id="pl.19.27"></a><var>19.27</var>multiplied by the total population in all unorganized townships in the county.<br/>
<a id="pl.19.28"></a><var>19.28</var>    The "town aid factor" is the same for all towns and must be calculated by the <br/>
<a id="pl.19.29"></a><var>19.29</var>Department of Revenue so that the total aid under this subdivision equals the total amount <br/>
<a id="pl.19.30"></a><var>19.30</var>available for aid under section 477A.03.<br/>
<a id="pl.19.31"></a><var>19.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.19.32"></a><var>19.32</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.20.1"></a><var>20.1</var>    Sec. 7. Minnesota Statutes 2006, section 477A.013, subdivision 8, as amended by <br/>
<a id="pl.20.2"></a><var>20.2</var>Laws 2008, chapter 154, article 1, section 2, is amended to read:<br/>
<a id="pl.20.3"></a><var>20.3</var>    Subd. 8.  <b>City formula aid.</b> In calendar year 2004 2009 and subsequent years, the <br/>
<a id="pl.20.4"></a><var>20.4</var>formula aid for a city is equal to the sum of (1) its city jobs base, (2) its small city aid base, <br/>
<a id="pl.20.5"></a><var>20.5</var>and (3) the need increase percentage multiplied by the difference between (1) (i) the <br/>
<a id="pl.20.6"></a><var>20.6</var>city's revenue need multiplied by its population, and (2) (ii) the sum of the city's net tax <br/>
<a id="pl.20.7"></a><var>20.7</var>capacity multiplied by the tax effort rate. <br/>
<a id="pl.20.8"></a><var>20.8</var>No city may have a formula aid amount less than zero. The need increase percentage <br/>
<a id="pl.20.9"></a><var>20.9</var>must be the same for all cities. <br/>
<a id="pl.20.10"></a><var>20.10</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.20.11"></a><var>20.11</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.20.12"></a><var>20.12</var>for aid under section 
         <statute_ref>477A.03</statute_ref> after the subtraction under section 
<statute_ref>477A.014, subdivisions 4 <br/>
<a id="pl.20.13"></a><var>20.13</var>and 5
</statute_ref>. For aids payable in 2009 only, a city's revenue need, population, net tax capacity, <br/>
<a id="pl.20.14"></a><var>20.14</var>and tax effort rate will be based on the data available for calculating these factors for <br/>
<a id="pl.20.15"></a><var>20.15</var>aids payable in 2008. <br/>
<a id="pl.20.16"></a><var>20.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.20.17"></a><var>20.17</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.20.18"></a><var>20.18</var>    Sec. 8. Minnesota Statutes 2006, section 477A.013, subdivision 9, as amended by <br/>
<a id="pl.20.19"></a><var>20.19</var>Laws 2008, chapter 154, article 1, section 3, is amended to read:<br/>
<a id="pl.20.20"></a><var>20.20</var>    Subd. 9.  <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.20.21"></a><var>20.21</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.20.22"></a><var>20.22</var>subdivision 8, and (2) its city aid base, and (3) one-half of the difference between its total <br/>
<a id="pl.20.23"></a><var>20.23</var>aid in the previous year under this subdivision and its city aid base in the previous year. <br/>
<a id="pl.20.24"></a><var>20.24</var>    (b) For aids payable in 2010 and thereafter, each city shall receive an aid distribution <br/>
<a id="pl.20.25"></a><var>20.25</var>equal to (1) the city aid formula under subdivision 8, (2) its city aid base, and (3) its <br/>
<a id="pl.20.26"></a><var>20.26</var>formula aid under subdivision 8 in the previous year, prior to any adjustments under <br/>
<a id="pl.20.27"></a><var>20.27</var>this subdivision 2009 only, the total aid for any city shall not exceed the sum of (1) 25 <br/>
<a id="pl.20.28"></a><var>20.28</var>percent of the city's net levy for the year prior to the aid distribution, plus (2) its total <br/>
<a id="pl.20.29"></a><var>20.29</var>aid in the previous year.<br/>
<a id="pl.20.30"></a><var>20.30</var>    (c) For aids payable in 2009 2010 and thereafter, the total aid for any city shall <br/>
<a id="pl.20.31"></a><var>20.31</var>not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid <br/>
<a id="pl.20.32"></a><var>20.32</var>distribution plus (2) its total aid in the previous year. For aids payable in 2009 and <br/>
<a id="pl.20.33"></a><var>20.33</var>thereafter, the total aid for any city with a population of 2,500 or more may not be less <br/>
<a id="pl.21.1"></a><var>21.1</var>than its total aid under this section in the previous year minus the lesser of $15 multiplied <br/>
<a id="pl.21.2"></a><var>21.2</var>by its population, or ten percent of its net levy in the year prior to the aid distribution. <br/>
<a id="pl.21.3"></a><var>21.3</var>    (d) For aids payable in 2009 2010  and thereafter, the total aid for a city with a <br/>
<a id="pl.21.4"></a><var>21.4</var>population less than 2,500 must not be less than the amount it was certified to receive in <br/>
<a id="pl.21.5"></a><var>21.5</var>the previous year minus the lesser of $15 multiplied by its population, or five percent of its <br/>
<a id="pl.21.6"></a><var>21.6</var>2003 certified aid amount. For aids payable in 2009 only the total aid for a city with a <br/>
<a id="pl.21.7"></a><var>21.7</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.21.8"></a><var>21.8</var>previous year unless its total aid in calendar year 2008 was aid under section 477A.011, <br/>
<a id="pl.21.9"></a><var>21.9</var>subdivision 36, paragraph (s), in which case its minimum aid is zero. <br/>
<a id="pl.21.10"></a><var>21.10</var>    (e) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.21.11"></a><var>21.11</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.21.12"></a><var>21.12</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.21.13"></a><var>21.13</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.21.14"></a><var>21.14</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.21.15"></a><var>21.15</var>resulting from the property becoming tax exempt. <br/>
<a id="pl.21.16"></a><var>21.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.21.17"></a><var>21.17</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.21.18"></a><var>21.18</var>    Sec. 9. Minnesota Statutes 2006, section 477A.03, is amended to read:<br/>
<a id="pl.21.19"></a><var>21.19</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.21.20"></a><var>21.20</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.21.21"></a><var>21.21</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.21.22"></a><var>21.22</var>commissioner of revenue. <br/>
<a id="pl.21.23"></a><var>21.23</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2004 2009 and thereafter, the total aids aid paid <br/>
<a id="pl.21.24"></a><var>21.24</var>under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, are limited to $429,000,000 is $515,052,000. For <br/>
<a id="pl.21.25"></a><var>21.25</var>aids payable in 2005, the total aids paid under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, are limited <br/>
<a id="pl.21.26"></a><var>21.26</var>to $437,052,000. For aids payable in 2006 and thereafter, the total aids paid under section <br/>
<a id="pl.21.27"></a><var>21.27</var><statute_ref>477A.013, subdivision 9</statute_ref>, is limited to $485,052,000 2009 only, an additional $1,000,000 <br/>
<a id="pl.21.28"></a><var>21.28</var>shall be retained by the commissioner and used to make payments under section 10.<br/>
<a id="pl.21.29"></a><var>21.29</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in calendar year 2005 and thereafter, <br/>
<a id="pl.21.30"></a><var>21.30</var>the total aids paid to counties under section 
<statute_ref>477A.0124, subdivision 3</statute_ref>, are limited to <br/>
<a id="pl.21.31"></a><var>21.31</var>$100,500,000. For aids payable in 2009 and thereafter, the total aid payable under section <br/>
<a id="pl.21.32"></a><var>21.32</var>477A.0124, subdivision 3, is $110,500,000 minus one-half of the total aid amount <br/>
<a id="pl.21.33"></a><var>21.33</var>determined under section 477A.0124, subdivision 5, paragraph (a). Each calendar year, <br/>
<a id="pl.21.34"></a><var>21.34</var>$500,000 shall be retained by the commissioner of revenue to make reimbursements <br/>
<a id="pl.22.1"></a><var>22.1</var>to the commissioner of finance for payments made under section 
         <statute_ref>611.27</statute_ref>. For calendar <br/>
<a id="pl.22.2"></a><var>22.2</var>year 2004, the amount shall be in addition to the payments authorized under section <br/>
<statute_ref><a id="pl.22.3"></a><var>22.3</var>477A.0124, subdivision 1
         </statute_ref>. For calendar year 2005 and subsequent years, the amount shall <br/>
<a id="pl.22.4"></a><var>22.4</var>be deducted from the appropriation under this paragraph. The reimbursements shall be to <br/>
<a id="pl.22.5"></a><var>22.5</var>defray the additional costs associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. <br/>
<a id="pl.22.6"></a><var>22.6</var>Any retained amounts not used for reimbursement in a year shall be included in the next <br/>
<a id="pl.22.7"></a><var>22.7</var>distribution of county need aid that is certified to the county auditors for the purpose of <br/>
<a id="pl.22.8"></a><var>22.8</var>property tax reduction for the next taxes payable year.<br/>
<a id="pl.22.9"></a><var>22.9</var>    (b) For aids payable in 2005 2009 and thereafter, the total aids aid under section <br/>
<statute_ref><a id="pl.22.10"></a><var>22.10</var>477A.0124, subdivision 4
         </statute_ref>, are limited to $105,000,000 is $115,132,923 minus one-half of <br/>
<a id="pl.22.11"></a><var>22.11</var>the total aid amount determined under section 477A.0124, subdivision 5, paragraph (a). <br/>
<a id="pl.22.12"></a><var>22.12</var>For aids payable in 2006 and thereafter, the total aid under section 
<statute_ref>477A.0124, subdivision <br/>
<a id="pl.22.13"></a><var>22.13</var>4
</statute_ref>, is limited to $105,132,923. The commissioner of finance shall bill the commissioner of <br/>
<a id="pl.22.14"></a><var>22.14</var>revenue for the cost of preparation of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not <br/>
<a id="pl.22.15"></a><var>22.15</var>to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner of education <br/>
<a id="pl.22.16"></a><var>22.16</var>shall bill the commissioner of revenue for the cost of preparation of local impact notes <br/>
<a id="pl.22.17"></a><var>22.17</var>for school districts as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 <br/>
<a id="pl.22.18"></a><var>22.18</var>and thereafter. The commissioner of revenue shall deduct the amounts billed under <br/>
<a id="pl.22.19"></a><var>22.19</var>this paragraph from the appropriation under this paragraph. The amounts deducted are <br/>
<a id="pl.22.20"></a><var>22.20</var>appropriated to the commissioner of finance and the commissioner of education for the <br/>
<a id="pl.22.21"></a><var>22.21</var>preparation of local impact notes.<br/>
<a id="pl.22.22"></a><var>22.22</var>    Subd. 2c. <b>Towns.</b> For aids payable in 2009 and thereafter, the total aid under section <br/>
<a id="pl.22.23"></a><var>22.23</var>477A.013, subdivision 1, is $3,000,000.<br/>
<a id="pl.22.24"></a><var>22.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.22.25"></a><var>22.25</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.22.26"></a><var>22.26</var>    Sec. 10. <b>CITY FORECLOSURE GRANTS.</b><br/>
<a id="pl.22.27"></a><var>22.27</var>    For calendar 2009 only, a city with a concentration of foreclosures within the city <br/>
<a id="pl.22.28"></a><var>22.28</var>or within a zip code area of a city in calendar year 2007, may receive a grant under this <br/>
<a id="pl.22.29"></a><var>22.29</var>section. A "concentration of foreclosures" means that the percent of housing in foreclosure <br/>
<a id="pl.22.30"></a><var>22.30</var>within the area is at least 50 percent higher than the average percent of housing in <br/>
<a id="pl.22.31"></a><var>22.31</var>foreclosure in the metropolitan area, as defined in Minnesota Statutes, section 473.121, <br/>
<a id="pl.22.32"></a><var>22.32</var>subdivision 2. The city must apply to the commissioner of revenue by December 30, 2008, <br/>
<a id="pl.22.33"></a><var>22.33</var>on the form prescribed by the commissioner. The grant will be paid with other aids paid <br/>
<a id="pl.22.34"></a><var>22.34</var>in calendar year 2009, as prescribed in section 477A.015.<br/>
<a id="pl.23.1"></a><var>23.1</var>    The commissioner of revenue shall consult with the commissioner of the Housing <br/>
<a id="pl.23.2"></a><var>23.2</var>Finance Agency, to develop a form for cities to use when applying for grants under this <br/>
<a id="pl.23.3"></a><var>23.3</var>section and to determine whether applications qualify. The appropriation for the grants <br/>
<a id="pl.23.4"></a><var>23.4</var>under Minnesota Statutes, section 477A.03, shall be divided between successful applicants <br/>
<a id="pl.23.5"></a><var>23.5</var>based on the number of foreclosures in the area meeting the concentration criteria. No city <br/>
<a id="pl.23.6"></a><var>23.6</var>may receive a grant of more than $250,000. All decisions by the commissioner regarding <br/>
<a id="pl.23.7"></a><var>23.7</var>grant qualification and amount shall be final. The grant must be used to fund inspection <br/>
<a id="pl.23.8"></a><var>23.8</var>and public safety costs associated with housing foreclosures.<br/>
<a id="pl.23.9"></a><var>23.9</var><b>EFFECTIVE DATE.</b>This section is effective for grants made in calendar year 2009.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.23.10"></a><var>23.10</var>    Sec. 11. <b>STUDY OF AIDS TO LOCAL GOVERNMENTS.</b><br/>
<a id="pl.23.11"></a><var>23.11</var>    The chairs of the senate and house of representatives committees with jurisdiction <br/>
<a id="pl.23.12"></a><var>23.12</var>over taxes shall each appoint five members to a study group of the tax committees to <br/>
<a id="pl.23.13"></a><var>23.13</var>examine the current system of aids to local governments and make recommendations on <br/>
<a id="pl.23.14"></a><var>23.14</var>improvements to the system. Of the five members appointed by each chair, two must be <br/>
<a id="pl.23.15"></a><var>23.15</var>members of the tax committee, one of whom is a majority party member and one of <br/>
<a id="pl.23.16"></a><var>23.16</var>whom is a minority party member. The remaining members must represent local units of <br/>
<a id="pl.23.17"></a><var>23.17</var>government. The chairs of the divisions of the tax committees having jurisdiction over <br/>
<a id="pl.23.18"></a><var>23.18</var>property taxes shall also be members and shall serve as cochairs of the study group. <br/>
<a id="pl.23.19"></a><var>23.19</var>The study shall include, but not be limited to, consideration of existing disparities in <br/>
<a id="pl.23.20"></a><var>23.20</var>the distribution of local government aid, the relationship of need for city aid to other <br/>
<a id="pl.23.21"></a><var>23.21</var>sources of revenue such as local sales taxes, an analysis of current law need and capacity <br/>
<a id="pl.23.22"></a><var>23.22</var>factors as well as alternative need factors, alternative analytical methods for determining <br/>
<a id="pl.23.23"></a><var>23.23</var>correlations between factors and need, the formula used to calculate aid for small cities, <br/>
<a id="pl.23.24"></a><var>23.24</var>and volatility in the local government aid distribution. The group must report on its <br/>
<a id="pl.23.25"></a><var>23.25</var>specific recommendations to the legislature by December 15, 2010.<br/>
<a id="pl.23.26"></a><var>23.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.23.29"></a><var>23.29</var>    Section 1. Minnesota Statutes 2006, section 216B.1646, is amended to read:<br/>
<a id="pl.23.30"></a><var>23.30</var><b>216B.1646 RATE </b><b>REDUCTION</b><b> ADJUSTMENT</b><b>; PROPERTY TAX </b><br/>
<a id="pl.23.31"></a><var>23.31</var><b>REDUCTION</b><b> CHANGE</b><b>.</b><br/>
<a id="pl.23.32"></a><var>23.32</var>    (a) The commission shall, by any method the commission finds appropriate, reduce <br/>
<a id="pl.23.33"></a><var>23.33</var>adjust  the rates each electric utility subject to rate regulation by the commission charges <br/>
<a id="pl.24.1"></a><var>24.1</var>its customers to reflect, on an ongoing basis, the amount by which each utility's property <br/>
<a id="pl.24.2"></a><var>24.2</var>tax, including the state general tax, if applicable, on the personal property of its electric <br/>
<a id="pl.24.3"></a><var>24.3</var>system from taxes payable in 2001 to taxes payable in 2002 is reduced or pipeline system <br/>
<a id="pl.24.4"></a><var>24.4</var>transporting or distributing natural gas is changed under this act. The commission must <br/>
<a id="pl.24.5"></a><var>24.5</var>ensure that, to the extent feasible, each dollar of personal property tax reduction allocated <br/>
<a id="pl.24.6"></a><var>24.6</var>to Minnesota consumers retroactive to January 1, 2002, change in taxes payable in 2009 <br/>
<a id="pl.24.7"></a><var>24.7</var>and subsequent years results in a dollar of savings adjustment to the utility's customers <br/>
<a id="pl.24.8"></a><var>24.8</var>rates. A utility may voluntarily pass on any additional property tax savings allocated in <br/>
<a id="pl.24.9"></a><var>24.9</var>the same manner as approved by the commission under this paragraph. The adjustment <br/>
<a id="pl.24.10"></a><var>24.10</var>under this paragraph is outside of a general rate case proceeding under section 216B.16.<br/>
<a id="pl.24.11"></a><var>24.11</var>    (b) By April 10, 2002, Each utility shall may submit a filing to the commission <br/>
<a id="pl.24.12"></a><var>24.12</var>containing:<br/>
<a id="pl.24.13"></a><var>24.13</var>    (1) certified information regarding the utility's property tax savings change allocated <br/>
<a id="pl.24.14"></a><var>24.14</var>to Minnesota retail customers; and<br/>
<a id="pl.24.15"></a><var>24.15</var>    (2) a proposed method of passing these savings on adjusting rates to Minnesota <br/>
<a id="pl.24.16"></a><var>24.16</var>retail customers.<br/>
<a id="pl.24.17"></a><var>24.17</var>The utility shall provide the information in clause (1) to the commissioner of revenue at <br/>
<a id="pl.24.18"></a><var>24.18</var>the same time. The commissioner shall notify the commission within 30 days as to the <br/>
<a id="pl.24.19"></a><var>24.19</var>accuracy of the property tax data submitted by the utility.<br/>
<a id="pl.24.20"></a><var>24.20</var>    (c) For purposes of this section, "personal property" means tools, implements, and <br/>
<a id="pl.24.21"></a><var>24.21</var>machinery of the generating plant. It does not apply to transformers, transmission lines, <br/>
<a id="pl.24.22"></a><var>24.22</var>distribution lines, or any other tools, implements, and machinery that are part of an electric <br/>
<a id="pl.24.23"></a><var>24.23</var>substation, wherever located an electric system or of a pipeline system transporting or <br/>
<a id="pl.24.24"></a><var>24.24</var>distributing natural gas.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.24.25"></a><var>24.25</var>    Sec. 2. Minnesota Statutes 2006, section 270C.85, subdivision 2, is amended to read:<br/>
<a id="pl.24.26"></a><var>24.26</var>    Subd. 2. <b>Powers and duties.</b> The commissioner shall have and exercise the <br/>
<a id="pl.24.27"></a><var>24.27</var>following powers and duties in administering the property tax laws.<br/>
<a id="pl.24.28"></a><var>24.28</var>    (a) Confer with, advise, and give the necessary instructions and directions to local <br/>
<a id="pl.24.29"></a><var>24.29</var>assessors and local boards of review throughout the state as to their duties under the <br/>
<a id="pl.24.30"></a><var>24.30</var>laws of the state.<br/>
<a id="pl.24.31"></a><var>24.31</var>    (b) Direct proceedings, actions, and prosecutions to be instituted to enforce the <br/>
<a id="pl.24.32"></a><var>24.32</var>laws relating to the liability and punishment of public officers and officers and agents of <br/>
<a id="pl.24.33"></a><var>24.33</var>corporations for failure or negligence to comply with the provisions of the property tax <br/>
<a id="pl.24.34"></a><var>24.34</var>laws, and cause complaints to be made against local assessors, members of boards of <br/>
<a id="pl.25.1"></a><var>25.1</var>equalization, members of boards of review, or any other assessing or taxing officer, to the <br/>
<a id="pl.25.2"></a><var>25.2</var>proper authority, for their removal from office for misconduct or negligence of duty.<br/>
<a id="pl.25.3"></a><var>25.3</var>    (c) Require county attorneys to assist in the commencement of prosecutions in <br/>
<a id="pl.25.4"></a><var>25.4</var>actions or proceedings for removal, forfeiture, and punishment, for violation of the <br/>
<a id="pl.25.5"></a><var>25.5</var>property tax laws in their respective districts or counties.<br/>
<a id="pl.25.6"></a><var>25.6</var>    (d) Require town, city, county, and other public officers to report information as to <br/>
<a id="pl.25.7"></a><var>25.7</var>the assessment of property, and such other information as may be needful in the work of <br/>
<a id="pl.25.8"></a><var>25.8</var>the commissioner, in such form as the commissioner may prescribe.<br/>
<a id="pl.25.9"></a><var>25.9</var>    (e) Transmit to the governor, on or before the third Monday in December of each <br/>
<a id="pl.25.10"></a><var>25.10</var>even-numbered year, and to each member of the legislature, on or before November <br/>
<a id="pl.25.11"></a><var>25.11</var>15 of each even-numbered year, the report of the department for the preceding years, <br/>
<a id="pl.25.12"></a><var>25.12</var>showing all the taxable property subject to the property tax laws and the value of the <br/>
<a id="pl.25.13"></a><var>25.13</var>same, in tabulated form.<br/>
<a id="pl.25.14"></a><var>25.14</var>    (f) Inquire into the methods of assessment and taxation and ascertain whether the <br/>
<a id="pl.25.15"></a><var>25.15</var>assessors faithfully discharge their duties.<br/>
<a id="pl.25.16"></a><var>25.16</var>    (g) Assist local assessors in determining the estimated market value of industrial <br/>
<a id="pl.25.17"></a><var>25.17</var>special-use property. For purposes of this paragraph, "industrial special-use property" <br/>
<a id="pl.25.18"></a><var>25.18</var>means property that:<br/>
<a id="pl.25.19"></a><var>25.19</var>    (1) is designed and equipped for a particular type of industry;<br/>
<a id="pl.25.20"></a><var>25.20</var>    (2) is not easily adapted to some other use due to the unique nature of the facilities;<br/>
<a id="pl.25.21"></a><var>25.21</var>    (3) has facilities totaling at least 75,000 square feet in size; and<br/>
<a id="pl.25.22"></a><var>25.22</var>    (4) has a total estimated market value of $10,000,000 or greater based on the <br/>
<a id="pl.25.23"></a><var>25.23</var>assessor's preliminary determination.<br/>
<a id="pl.25.24"></a><var>25.24</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.25.25"></a><var>25.25</var>thereafter, for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.25.26"></a><var>25.26</var>    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.25.27"></a><var>25.27</var>to read:<br/>
<a id="pl.25.28"></a><var>25.28</var>    Subd. 85. <b>Fergus Falls historical zone.</b> (a) Property located in the area of the <br/>
<a id="pl.25.29"></a><var>25.29</var>campus of the former state regional treatment center in the city of Fergus Falls, including <br/>
<a id="pl.25.30"></a><var>25.30</var>the five buildings and associated land that were acquired by the city prior to January 1, <br/>
<a id="pl.25.31"></a><var>25.31</var>2007, is exempt from ad valorem taxes levied under chapter 275.<br/>
<a id="pl.25.32"></a><var>25.32</var>    (b) The exemption applies for 15 calendar years from the date specified by resolution <br/>
<a id="pl.25.33"></a><var>25.33</var>of the governing body of the city of Fergus Falls. For the final three assessment years of <br/>
<a id="pl.25.34"></a><var>25.34</var>the duration limit, the exemption applies to the following percentages of estimated market <br/>
<a id="pl.25.35"></a><var>25.35</var>value of the property:<br/>
<a id="pl.26.1"></a><var>26.1</var>    (1) for the third to the last assessment year of the duration, 75 percent;<br/>
<a id="pl.26.2"></a><var>26.2</var>    (2) for the second to the last assessment year of the duration, 50 percent; and<br/>
<a id="pl.26.3"></a><var>26.3</var>    (3) for the last assessment  year of the duration, 25 percent.<br/>
<a id="pl.26.4"></a><var>26.4</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2009 <br/>
<a id="pl.26.5"></a><var>26.5</var>and thereafter.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.26.6"></a><var>26.6</var>    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.26.7"></a><var>26.7</var>to read:<br/>
<a id="pl.26.8"></a><var>26.8</var>    Subd. 86. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.26.9"></a><var>26.9</var>subdivision 9, paragraph (a), attached machinery and other personal property which is <br/>
<a id="pl.26.10"></a><var>26.10</var>part of a simple-cycle combustion-turbine electric generation facility that exceeds 150 <br/>
<a id="pl.26.11"></a><var>26.11</var>megawatts of installed capacity and that meets the requirements of this subdivision is <br/>
<a id="pl.26.12"></a><var>26.12</var>exempt. At the time of construction, the facility must:<br/>
<a id="pl.26.13"></a><var>26.13</var>    (1) utilize natural gas as a primary fuel;<br/>
<a id="pl.26.14"></a><var>26.14</var>    (2) be owned by an electric generation and transmission cooperative;<br/>
<a id="pl.26.15"></a><var>26.15</var>    (3) be located within one mile of an existing 16-inch natural gas pipeline and <br/>
<a id="pl.26.16"></a><var>26.16</var>69-kilovolt and 230-kilovolt high-voltage electric transmission lines;<br/>
<a id="pl.26.17"></a><var>26.17</var>    (4) be designed to provide peaking, emergency backup, or contingency services;<br/>
<a id="pl.26.18"></a><var>26.18</var>    (5) have received a certificate of need under section 216B.243 demonstrating <br/>
<a id="pl.26.19"></a><var>26.19</var>demand for its capacity; and<br/>
<a id="pl.26.20"></a><var>26.20</var>    (6) have received by resolution the approval from the governing bodies of the county <br/>
<a id="pl.26.21"></a><var>26.21</var>and the city in which the proposed facility is to be located for the exemption of personal <br/>
<a id="pl.26.22"></a><var>26.22</var>property under this subdivision.<br/>
<a id="pl.26.23"></a><var>26.23</var>    (b) Construction of the facility must be commenced after January 1, 2008, and <br/>
<a id="pl.26.24"></a><var>26.24</var>before January 1, 2012. Property eligible for this exemption does not include electric <br/>
<a id="pl.26.25"></a><var>26.25</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.26.26"></a><var>26.26</var>to the property or the facility.<br/>
<a id="pl.26.27"></a><var>26.27</var><b>EFFECTIVE DATE.</b>This section is effective for the 2008 assessment payable in <br/>
<a id="pl.26.28"></a><var>26.28</var>2009 and thereafter.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.26.29"></a><var>26.29</var>    Sec. 5. <b>[273.0645] COMMISSIONER REVIEW OF LOCAL ASSESSMENT </b><br/>
<a id="pl.26.30"></a><var>26.30</var><b>PRACTICES.</b><br/>
<a id="pl.26.31"></a><var>26.31</var>    The commissioner of revenue must review the assessment practices in a taxing <br/>
<a id="pl.26.32"></a><var>26.32</var>jurisdiction if requested in writing by a qualifying number of property owners in that <br/>
<a id="pl.26.33"></a><var>26.33</var>taxing jurisdiction. The request must be signed by the greater of:<br/>
<a id="pl.27.1"></a><var>27.1</var>    (1) one percent of the property owners; or<br/>
<a id="pl.27.2"></a><var>27.2</var>    (2) five property owners.<br/>
<a id="pl.27.3"></a><var>27.3</var>    The request must identify the city, town, or county and describe why a review is <br/>
<a id="pl.27.4"></a><var>27.4</var>sought for that taxing jurisdiction. The commissioner must conduct the review in a <br/>
<a id="pl.27.5"></a><var>27.5</var>reasonable amount of time and report the findings to the county board of the affected <br/>
<a id="pl.27.6"></a><var>27.6</var>county, to the affected city council or town board, if the review is for a specific city or <br/>
<a id="pl.27.7"></a><var>27.7</var>town, and to the property owner designated in the request as the person to receive the <br/>
<a id="pl.27.8"></a><var>27.8</var>report on behalf of all the property owners who signed the request. The commissioner <br/>
<a id="pl.27.9"></a><var>27.9</var>must also provide the report electronically to all property owners who signed the request <br/>
<a id="pl.27.10"></a><var>27.10</var>and provided an e-mail address in order to receive the report electronically.<br/>
<a id="pl.27.11"></a><var>27.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.27.12"></a><var>27.12</var>    Sec. 6. Minnesota Statutes 2006, section 273.11, subdivision 1, is amended to read:<br/>
<a id="pl.27.13"></a><var>27.13</var>    Subdivision 1. <b>Generally.</b> Except as provided in this section or section 
         <statute_ref>273.17, <br/>
<a id="pl.27.14"></a><var>27.14</var>subdivision 1
         </statute_ref>, all property shall be valued at its market value. The market value as <br/>
<a id="pl.27.15"></a><var>27.15</var>determined pursuant to this section shall be stated such that any amount under $100 is <br/>
<a id="pl.27.16"></a><var>27.16</var>rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. <br/>
<a id="pl.27.17"></a><var>27.17</var>In estimating and determining such value, the assessor shall not adopt a lower or different <br/>
<a id="pl.27.18"></a><var>27.18</var>standard of value because the same is to serve as a basis of taxation, nor shall the assessor <br/>
<a id="pl.27.19"></a><var>27.19</var>adopt as a criterion of value the price for which such property would sell at a forced <br/>
<a id="pl.27.20"></a><var>27.20</var>sale, or in the aggregate with all the property in the town or district; but the assessor <br/>
<a id="pl.27.21"></a><var>27.21</var>shall value each article or description of property by itself, and at such sum or price as <br/>
<a id="pl.27.22"></a><var>27.22</var>the assessor believes the same to be fairly worth in money. The assessor shall take into <br/>
<a id="pl.27.23"></a><var>27.23</var>account the effect on the market value of property of environmental factors in the vicinity <br/>
<a id="pl.27.24"></a><var>27.24</var>of the property, and the market value effect of foreclosed property on all property in the <br/>
<a id="pl.27.25"></a><var>27.25</var>vicinity due to the foreclosures. In assessing any tract or lot of real property, the value <br/>
<a id="pl.27.26"></a><var>27.26</var>of the land, exclusive of structures and improvements, shall be determined, and also the <br/>
<a id="pl.27.27"></a><var>27.27</var>value of all structures and improvements thereon, and the aggregate value of the property, <br/>
<a id="pl.27.28"></a><var>27.28</var>including all structures and improvements, excluding the value of crops growing upon <br/>
<a id="pl.27.29"></a><var>27.29</var>cultivated land. In valuing real property upon which there is a mine or quarry, it shall be <br/>
<a id="pl.27.30"></a><var>27.30</var>valued at such price as such property, including the mine or quarry, would sell for at a fair, <br/>
<a id="pl.27.31"></a><var>27.31</var>voluntary sale, for cash, if the material being mined or quarried is not subject to taxation <br/>
<a id="pl.27.32"></a><var>27.32</var>under section 
         <statute_ref>298.015</statute_ref> and the mine or quarry is not exempt from the general property <br/>
<a id="pl.27.33"></a><var>27.33</var>tax under section 
         <statute_ref>298.25</statute_ref>. In valuing real property which is vacant, platted property shall <br/>
<a id="pl.27.34"></a><var>27.34</var>be assessed as provided in subdivision 14. All property, or the use thereof, which is <br/>
<a id="pl.27.35"></a><var>27.35</var>taxable under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or 
         <statute_ref>273.19</statute_ref>, shall be valued at the market <br/>
<a id="pl.28.1"></a><var>28.1</var>value of such property and not at the value of a leasehold estate in such property, or at <br/>
<a id="pl.28.2"></a><var>28.2</var>some lesser value than its market value. <br/>
<a id="pl.28.3"></a><var>28.3</var><b>EFFECTIVE DATE.</b>This section is effective for the 2009 assessment and <br/>
<a id="pl.28.4"></a><var>28.4</var>thereafter.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.28.5"></a><var>28.5</var>    Sec. 7. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:<br/>
<a id="pl.28.6"></a><var>28.6</var>    Subd. 1a. <b>Limited market value.</b> In the case of all property classified as <br/>
<a id="pl.28.7"></a><var>28.7</var>agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, <br/>
<a id="pl.28.8"></a><var>28.8</var>or noncommercial seasonal residential recreational, the assessor shall compare the value <br/>
<a id="pl.28.9"></a><var>28.9</var>with the taxable portion of the value determined in the preceding assessment.<br/>
<a id="pl.28.10"></a><var>28.10</var>    For assessment years 2004, 2005, and 2006, the amount of the increase shall not <br/>
<a id="pl.28.11"></a><var>28.11</var>exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 <br/>
<a id="pl.28.12"></a><var>28.12</var>percent of the difference between the current assessment and the preceding assessment.<br/>
<a id="pl.28.13"></a><var>28.13</var>    For assessment year years 2007 through 2009, the amount of the increase shall not <br/>
<a id="pl.28.14"></a><var>28.14</var>exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 <br/>
<a id="pl.28.15"></a><var>28.15</var>percent of the difference between the current assessment and the preceding assessment.<br/>
<a id="pl.28.16"></a><var>28.16</var>    For assessment year 2008 2010, the amount of the increase shall not exceed the <br/>
<a id="pl.28.17"></a><var>28.17</var>greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the <br/>
<a id="pl.28.18"></a><var>28.18</var>difference between the current assessment and the preceding assessment.<br/>
<a id="pl.28.19"></a><var>28.19</var>    This limitation shall not apply to increases in value due to improvements. For <br/>
<a id="pl.28.20"></a><var>28.20</var>purposes of this subdivision, the term "assessment" means the value prior to any exclusion <br/>
<a id="pl.28.21"></a><var>28.21</var>under subdivision 16.<br/>
<a id="pl.28.22"></a><var>28.22</var>    The provisions of this subdivision shall be in effect through assessment year 2008 <br/>
<a id="pl.28.23"></a><var>28.23</var>2010 as provided in this subdivision.<br/>
<a id="pl.28.24"></a><var>28.24</var>    For purposes of the assessment/sales ratio study conducted under section 
         <statute_ref>127A.48</statute_ref>, <br/>
<a id="pl.28.25"></a><var>28.25</var>and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, <br/>
<a id="pl.28.26"></a><var>28.26</var>126C, 127A, and 477A, market values and net tax capacities determined under this <br/>
<a id="pl.28.27"></a><var>28.27</var>subdivision and subdivision 16, shall be used.<br/>
<a id="pl.28.28"></a><var>28.28</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2008 and <br/>
<a id="pl.28.29"></a><var>28.29</var>thereafter, for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.28.30"></a><var>28.30</var>    Sec. 8. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to <br/>
<a id="pl.28.31"></a><var>28.31</var>read:<br/>
<a id="pl.28.32"></a><var>28.32</var>    Subd. 24. <b>Rural vacant land abutting public waters.</b> (a) Any property that:<br/>
<a id="pl.28.33"></a><var>28.33</var>    (1) is located in a township;<br/>
<a id="pl.29.1"></a><var>29.1</var>    (2) is classified as either (i) agricultural property under section 273.13, subdivision <br/>
<a id="pl.29.2"></a><var>29.2</var>23, paragraph (b), or (ii) rural vacant land under section 273.13, subdivision 23, paragraph <br/>
<a id="pl.29.3"></a><var>29.3</var>(c), contiguous to agricultural property under the same ownership with at least two-thirds <br/>
<a id="pl.29.4"></a><var>29.4</var>of the acreage used for agricultural purposes;<br/>
<a id="pl.29.5"></a><var>29.5</var>    (3) is not enrolled in the Minnesota agricultural property tax law under section <br/>
<a id="pl.29.6"></a><var>29.6</var>273.111; and<br/>
<a id="pl.29.7"></a><var>29.7</var>    (4) abuts public waters in whole or in part,<br/>
<a id="pl.29.8"></a><var>29.8</var>shall be valued by the assessor on the same basis as rural vacant land of the same quality <br/>
<a id="pl.29.9"></a><var>29.9</var>that does not abut public waters, until some action is taken to develop the land as specified <br/>
<a id="pl.29.10"></a><var>29.10</var>in paragraph (c).<br/>
<a id="pl.29.11"></a><var>29.11</var>    (b) In each assessment year, the assessor shall determine the estimated market value <br/>
<a id="pl.29.12"></a><var>29.12</var>of the property as provided under subdivision 1, taking into consideration its highest <br/>
<a id="pl.29.13"></a><var>29.13</var>and best use. For each year that the property is classified under this subdivision, the <br/>
<a id="pl.29.14"></a><var>29.14</var>property tax statement shall include a notice that the property is being taxed under a <br/>
<a id="pl.29.15"></a><var>29.15</var>reduced valuation that will terminate under certain conditions.<br/>
<a id="pl.29.16"></a><var>29.16</var>    (c) An owner of property meeting the criteria of this subdivision must notify the <br/>
<a id="pl.29.17"></a><var>29.17</var>county assessor within 30 days of applying for a development permit from the county <br/>
<a id="pl.29.18"></a><var>29.18</var>or local zoning board. If development permits are not required, an owner of property <br/>
<a id="pl.29.19"></a><var>29.19</var>meeting the criteria of this subdivision must notify the assessor prior to all or any portion <br/>
<a id="pl.29.20"></a><var>29.20</var>of the property being platted or subdivided.<br/>
<a id="pl.29.21"></a><var>29.21</var>    (d) When any of the conditions specified in paragraph (c) occurs, additional taxes <br/>
<a id="pl.29.22"></a><var>29.22</var>shall be imposed in an amount equal to: (1) the average of the difference between the <br/>
<a id="pl.29.23"></a><var>29.23</var>amount of taxes actually levied on the property in the current year and the two prior years, <br/>
<a id="pl.29.24"></a><var>29.24</var>and the amount of taxes that would have been levied in the current year and the two prior <br/>
<a id="pl.29.25"></a><var>29.25</var>years based on the estimated market value determined under paragraph (b); (2) multiplied <br/>
<a id="pl.29.26"></a><var>29.26</var>by seven. The additional taxes shall be extended against the property on the tax list for the <br/>
<a id="pl.29.27"></a><var>29.27</var>current year, provided that no interest or penalties shall be levied on the additional taxes if <br/>
<a id="pl.29.28"></a><var>29.28</var>timely paid. For purposes of this subdivision, "public waters" means a meandered lake as <br/>
<a id="pl.29.29"></a><var>29.29</var>defined under section 103G.005, subdivision 15, paragraph (a), clause (3).<br/>
<a id="pl.29.30"></a><var>29.30</var><b>EFFECTIVE DATE.</b>This section is effective for the 2009 assessment and <br/>
<a id="pl.29.31"></a><var>29.31</var>thereafter.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.29.32"></a><var>29.32</var>    Sec. 9. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to <br/>
<a id="pl.29.33"></a><var>29.33</var>read:<br/>
<a id="pl.30.1"></a><var>30.1</var>    Subd. 25. <b>Limit on taxable valuation; certain restored homes.</b> A homestead <br/>
<a id="pl.30.2"></a><var>30.2</var>property that either (i) has gone through foreclosure or (ii) is located within a disaster <br/>
<a id="pl.30.3"></a><var>30.3</var>or emergency area and sustained physical damage of at least $5,000 in the disaster or <br/>
<a id="pl.30.4"></a><var>30.4</var>emergency is eligible for valuation limitation under this subdivision. To qualify for the <br/>
<a id="pl.30.5"></a><var>30.5</var>limitation, the property must:<br/>
<a id="pl.30.6"></a><var>30.6</var>    (i) have been restored or rebuilt within 18 months of the foreclosure or the disaster <br/>
<a id="pl.30.7"></a><var>30.7</var>or emergency;<br/>
<a id="pl.30.8"></a><var>30.8</var>    (ii) have a gross living area that does not exceed 130 percent of the gross living area <br/>
<a id="pl.30.9"></a><var>30.9</var>prior to the foreclosure or the disaster or emergency; and<br/>
<a id="pl.30.10"></a><var>30.10</var>    (iii) have an estimated market value that exceeds its taxable market value for the <br/>
<a id="pl.30.11"></a><var>30.11</var>assessment year of the foreclosure or the disaster or emergency by at least $20,000, due to <br/>
<a id="pl.30.12"></a><var>30.12</var>the restoration or reconstruction.<br/>
<a id="pl.30.13"></a><var>30.13</var>    In the first assessment year following the restoration or reconstruction, the taxable <br/>
<a id="pl.30.14"></a><var>30.14</var>value shall be equal to three-quarters of its taxable value in the assessment year of the <br/>
<a id="pl.30.15"></a><var>30.15</var>foreclosure or disaster or emergency, plus one-quarter of its current estimated market <br/>
<a id="pl.30.16"></a><var>30.16</var>value. In the second assessment year following the restoration or reconstruction, the <br/>
<a id="pl.30.17"></a><var>30.17</var>taxable value shall be equal to one-half of its taxable value in the assessment year of the <br/>
<a id="pl.30.18"></a><var>30.18</var>foreclosure or disaster or emergency, and one-half of its current estimated market value. <br/>
<a id="pl.30.19"></a><var>30.19</var>In the third assessment year following the restoration or reconstruction, the taxable value <br/>
<a id="pl.30.20"></a><var>30.20</var>shall be equal to one-quarter of its taxable value in the assessment year of the foreclosure <br/>
<a id="pl.30.21"></a><var>30.21</var>or disaster or emergency, and three-quarters of its current estimated market value. For <br/>
<a id="pl.30.22"></a><var>30.22</var>the three assessment years immediately following the restoration or reconstruction, the <br/>
<a id="pl.30.23"></a><var>30.23</var>property is not subject to the valuation limit under subdivision 1a.<br/>
<a id="pl.30.24"></a><var>30.24</var>    For the purposes of this subdivision:<br/>
<a id="pl.30.25"></a><var>30.25</var>    (i) "disaster or emergency area" means an area in which the president of the United <br/>
<a id="pl.30.26"></a><var>30.26</var>States or the administrator of the Small Business Administration has determined that <br/>
<a id="pl.30.27"></a><var>30.27</var>a disaster exists pursuant to federal law;<br/>
<a id="pl.30.28"></a><var>30.28</var>    (ii) "gone through foreclosure" means that a foreclosure sale has been held and that <br/>
<a id="pl.30.29"></a><var>30.29</var>the person who owned the home prior to the sale did not redeem it from the sale under <br/>
<a id="pl.30.30"></a><var>30.30</var>section 580.23; and<br/>
<a id="pl.30.31"></a><var>30.31</var>    (iii) "gross living area" means the square footage of the home that would customarily <br/>
<a id="pl.30.32"></a><var>30.32</var>be used as living space.<br/>
<a id="pl.30.33"></a><var>30.33</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.30.34"></a><var>30.34</var>thereafter.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.31.1"></a><var>31.1</var>    Sec. 10. Minnesota Statutes 2006, section 273.111, subdivision 3, as amended by Laws <br/>
<a id="pl.31.2"></a><var>31.2</var>2008, chapter 154, article 13, section 26, is amended to read:<br/>
<a id="pl.31.3"></a><var>31.3</var>    Subd. 3.  <b>Requirements.</b> (a) Real estate consisting of ten three acres or more or <br/>
<a id="pl.31.4"></a><var>31.4</var>a nursery or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under <br/>
<a id="pl.31.5"></a><var>31.5</var>section 
         <statute_ref>273.13, </statute_ref>shall be entitled to valuation and tax deferment under this section only <br/>
<a id="pl.31.6"></a><var>31.6</var>if it is primarily devoted to agricultural use, and meets the qualifications in subdivision <br/>
<a id="pl.31.7"></a><var>31.7</var>6, and either: <br/>
<a id="pl.31.8"></a><var>31.8</var>    (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the <br/>
<a id="pl.31.9"></a><var>31.9</var>owner or is real estate which is farmed with the real estate which contains the homestead <br/>
<a id="pl.31.10"></a><var>31.10</var>property; or <br/>
<a id="pl.31.11"></a><var>31.11</var>    (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, <br/>
<a id="pl.31.12"></a><var>31.12</var>or any combination thereof, for a period of at least seven years prior to application for <br/>
<a id="pl.31.13"></a><var>31.13</var>benefits under the provisions of this section, or is real estate which is farmed with the <br/>
<a id="pl.31.14"></a><var>31.14</var>real estate which qualifies under this clause and is within four townships or cities or <br/>
<a id="pl.31.15"></a><var>31.15</var>combination thereof from the qualifying real estate; or <br/>
<a id="pl.31.16"></a><var>31.16</var>    (3) is the homestead of a shareholder in a family farm corporation as defined in an <br/>
<a id="pl.31.17"></a><var>31.17</var>individual who is part of an entity in compliance with section 
         <statute_ref>500.24</statute_ref>, notwithstanding <br/>
<a id="pl.31.18"></a><var>31.18</var>the fact that legal title to the real estate may be held in the name of the family farm <br/>
<a id="pl.31.19"></a><var>31.19</var>corporation; or <br/>
<a id="pl.31.20"></a><var>31.20</var>    (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor, <br/>
<a id="pl.31.21"></a><var>31.21</var>partnership, or corporation which also owns the nursery or greenhouse operations on the <br/>
<a id="pl.31.22"></a><var>31.22</var>parcel or parcels, provided that only the acres used to produce nursery stock qualify <br/>
<a id="pl.31.23"></a><var>31.23</var>for treatment under this section. <br/>
<a id="pl.31.24"></a><var>31.24</var>    (b) Valuation of real estate under this section is limited to parcels the ownership of <br/>
<a id="pl.31.25"></a><var>31.25</var>which is in noncorporate entities except for: <br/>
<a id="pl.31.26"></a><var>31.26</var>    (1) family farm corporations organized pursuant to section 
<statute_ref>500.24</statute_ref>; and <br/>
<a id="pl.31.27"></a><var>31.27</var>    (2) corporations that derive 80 percent or more of their gross receipts from the <br/>
<a id="pl.31.28"></a><var>31.28</var>wholesale or retail sale of horticultural or nursery stock. <br/>
<a id="pl.31.29"></a><var>31.29</var>    (c) Land that previously qualified for tax deferment under this section and no longer <br/>
<a id="pl.31.30"></a><var>31.30</var>qualifies because it is not primarily used for agricultural purposes but would otherwise <br/>
<a id="pl.31.31"></a><var>31.31</var>qualify under subdivisions Minnesota Statutes 2006, section 273.111, subdivision 3, and 6 <br/>
<a id="pl.31.32"></a><var>31.32</var>for a period of at least three years will not be required to make payment of the previously <br/>
<a id="pl.31.33"></a><var>31.33</var>deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to <br/>
<a id="pl.31.34"></a><var>31.34</var>the expiration of the three-year period requires payment of deferred taxes as follows: sale <br/>
<a id="pl.31.35"></a><var>31.35</var>in the year the land no longer qualifies requires payment of the current year's deferred <br/>
<a id="pl.31.36"></a><var>31.36</var>taxes plus payment of deferred taxes for the two prior years; sale during the second year <br/>
<a id="pl.32.1"></a><var>32.1</var>the land no longer qualifies requires payment of the current year's deferred taxes plus <br/>
<a id="pl.32.2"></a><var>32.2</var>payment of the deferred taxes for the prior year; and sale during the third year the land <br/>
<a id="pl.32.3"></a><var>32.3</var>no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes <br/>
<a id="pl.32.4"></a><var>32.4</var>shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is <br/>
<a id="pl.32.5"></a><var>32.5</var>sold or no longer qualifies under this paragraph, or at the end of the three-year period, <br/>
<a id="pl.32.6"></a><var>32.6</var>whichever comes first, all deferred special assessments plus interest are payable in equal <br/>
<a id="pl.32.7"></a><var>32.7</var>installments spread over the time remaining until the last maturity date of the bonds issued <br/>
<a id="pl.32.8"></a><var>32.8</var>to finance the improvement for which the assessments were levied. If the bonds have <br/>
<a id="pl.32.9"></a><var>32.9</var>matured, the deferred special assessments plus interest are payable within 90 days. The <br/>
<a id="pl.32.10"></a><var>32.10</var>provisions of section 
         <statute_ref>429.061, subdivision 2</statute_ref>, apply to the collection of these installments. <br/>
<a id="pl.32.11"></a><var>32.11</var>Penalties are not imposed on any such special assessments if timely paid. <br/>
<a id="pl.32.12"></a><var>32.12</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009, taxes <br/>
<a id="pl.32.13"></a><var>32.13</var>payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.32.14"></a><var>32.14</var>    Sec. 11. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.32.15"></a><var>32.15</var>to read:<br/>
<a id="pl.32.16"></a><var>32.16</var>    Subd. 3a. <b>Property no longer eligible for deferment.</b> Real estate that qualifies for <br/>
<a id="pl.32.17"></a><var>32.17</var>tax deferment under this section for assessment year 2008, but which does not qualify <br/>
<a id="pl.32.18"></a><var>32.18</var>for the current assessment year due to changes in qualification requirements under this <br/>
<a id="pl.32.19"></a><var>32.19</var>act, shall continue to qualify until the land is sold or transferred, provided that the <br/>
<a id="pl.32.20"></a><var>32.20</var>property continues to meet the requirements of Minnesota Statutes 2006, section 273.111, <br/>
<a id="pl.32.21"></a><var>32.21</var>subdivision 3.<br/>
<a id="pl.32.22"></a><var>32.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.32.23"></a><var>32.23</var>thereafter.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 12. Minnesota Statutes 2006, section 273.111, subdivision 4, is amended to read:<br/>
<a id="pl.32.25"></a><var>32.25</var>    Subd. 4. <b>Determination of value.</b> (a) The value of any real estate described <br/>
<a id="pl.32.26"></a><var>32.26</var>in subdivision 3 shall upon timely application by the owner, in the manner provided <br/>
<a id="pl.32.27"></a><var>32.27</var>in subdivision 8, be determined solely with reference to its appropriate agricultural <br/>
<a id="pl.32.28"></a><var>32.28</var>classification and value notwithstanding sections 
         <statute_ref>272.03, subdivision 8</statute_ref>, and 
         <statute_ref>273.11</statute_ref>. In <br/>
<a id="pl.32.29"></a><var>32.29</var>determining the value for ad valorem tax purposes, the assessor shall use sales data for <br/>
<a id="pl.32.30"></a><var>32.30</var>agricultural lands located outside the seven metropolitan counties having similar soil <br/>
<a id="pl.32.31"></a><var>32.31</var>types, number of degree days, and other similar agricultural characteristics. Furthermore, <br/>
<a id="pl.32.32"></a><var>32.32</var>the assessor shall not consider any added values resulting from nonagricultural factors. <br/>
<a id="pl.32.33"></a><var>32.33</var>In order to account for the presence of nonagricultural influences that may affect the value <br/>
<a id="pl.33.1"></a><var>33.1</var>of agricultural land, the commissioner of revenue shall develop a fair and uniform method <br/>
<a id="pl.33.2"></a><var>33.2</var>of determining agricultural values for each county in the state that are consistent with this <br/>
<a id="pl.33.3"></a><var>33.3</var>subdivision. The commissioner shall annually assign the resulting values to each county, <br/>
<a id="pl.33.4"></a><var>33.4</var>and these values shall be used as the basis for determining the agricultural value for all <br/>
<a id="pl.33.5"></a><var>33.5</var>properties in the county qualifying for tax deferment under this section.<br/>
<a id="pl.33.6"></a><var>33.6</var>    (b) In the case of property qualifying for tax deferment only under subdivision 3a, <br/>
<a id="pl.33.7"></a><var>33.7</var>the value shall be based on the value in effect for assessment year 2008, multiplied by <br/>
<a id="pl.33.8"></a><var>33.8</var>the ratio of the total taxable market value of all property in the county for the current <br/>
<a id="pl.33.9"></a><var>33.9</var>assessment year divided by the total taxable market value of all property in the county <br/>
<a id="pl.33.10"></a><var>33.10</var>for assessment year 2008.<br/>
<a id="pl.33.11"></a><var>33.11</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.33.12"></a><var>33.12</var>thereafter.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.33.13"></a><var>33.13</var>    Sec. 13. Minnesota Statutes 2006, section 273.111, subdivision 8, is amended to read:<br/>
<a id="pl.33.14"></a><var>33.14</var>    Subd. 8. <b>Application.</b> Application for deferment of taxes and assessment under this <br/>
<a id="pl.33.15"></a><var>33.15</var>section shall be filed by May 1 of the year prior to the year in which the taxes are payable. <br/>
<a id="pl.33.16"></a><var>33.16</var>Any application filed hereunder and granted shall continue in effect for subsequent years <br/>
<a id="pl.33.17"></a><var>33.17</var>until the property no longer qualifies. Such application shall be filed with the assessor of <br/>
<a id="pl.33.18"></a><var>33.18</var>the taxing district in which the real property is located on such form as may be prescribed <br/>
<a id="pl.33.19"></a><var>33.19</var>by the commissioner of revenue. The assessor may require proof by affidavit or otherwise <br/>
<a id="pl.33.20"></a><var>33.20</var>that the property qualifies under subdivisions subdivision 3 and 6.<br/>
<a id="pl.33.21"></a><var>33.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.33.22"></a><var>33.22</var>thereafter.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.33.23"></a><var>33.23</var>    Sec. 14. Minnesota Statutes 2006, section 273.111, subdivision 9, is amended to read:<br/>
<a id="pl.33.24"></a><var>33.24</var>    Subd. 9. <b>Additional taxes.</b> When real property which is being, or has been valued <br/>
<a id="pl.33.25"></a><var>33.25</var>and assessed under this section no longer qualifies under subdivisions subdivision 3 <br/>
<a id="pl.33.26"></a><var>33.26</var>and 6 or 3a, the portion no longer qualifying shall be subject to additional taxes, in the <br/>
<a id="pl.33.27"></a><var>33.27</var>amount equal to the average difference between the taxes determined in accordance with <br/>
<a id="pl.33.28"></a><var>33.28</var>subdivision 4, and the amount determined under subdivision 5, for the current year and the <br/>
<a id="pl.33.29"></a><var>33.29</var>two preceding years, multiplied by seven. Provided, however, that the amount determined <br/>
<a id="pl.33.30"></a><var>33.30</var>under subdivision 5 shall not be greater than it would have been had the actual bona fide <br/>
<a id="pl.33.31"></a><var>33.31</var>sale price of the real property at an arm's-length transaction been used in lieu of the market <br/>
<a id="pl.33.32"></a><var>33.32</var>value determined under subdivision 5. Such additional taxes shall be extended against <br/>
<a id="pl.33.33"></a><var>33.33</var>the property on the tax list for the current year, provided, however, that no interest or <br/>
<a id="pl.34.1"></a><var>34.1</var>penalties shall be levied on such additional taxes if timely paid, and provided further, that <br/>
<a id="pl.34.2"></a><var>34.2</var>such additional taxes shall only be levied with respect to the last three years that the said <br/>
<a id="pl.34.3"></a><var>34.3</var>property has been valued and assessed under this section.<br/>
<a id="pl.34.4"></a><var>34.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.34.5"></a><var>34.5</var>thereafter.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.34.6"></a><var>34.6</var>    Sec. 15. Minnesota Statutes 2006, section 273.111, subdivision 11, is amended to read:<br/>
<a id="pl.34.7"></a><var>34.7</var>    Subd. 11. <b>Special local assessments.</b> The payment of special local assessments <br/>
<a id="pl.34.8"></a><var>34.8</var>levied after June 1, 1967, for improvements made to any real property described in <br/>
<a id="pl.34.9"></a><var>34.9</var>subdivision 3 together with the interest thereon shall, on timely application as provided <br/>
<a id="pl.34.10"></a><var>34.10</var>in subdivision 8, be deferred as long as such property meets the conditions contained in <br/>
<a id="pl.34.11"></a><var>34.11</var>subdivisions subdivision 3 and 6 or 3a or is transferred to an agricultural preserve under <br/>
<a id="pl.34.12"></a><var>34.12</var>sections 
         <statute_ref>473H.02</statute_ref> to 
         <statute_ref>473H.17</statute_ref>. If special assessments against the property have been <br/>
<a id="pl.34.13"></a><var>34.13</var>deferred pursuant to this subdivision, the governmental unit shall file with the county <br/>
<a id="pl.34.14"></a><var>34.14</var>recorder in the county in which the property is located a certificate containing the legal <br/>
<a id="pl.34.15"></a><var>34.15</var>description of the affected property and of the amount deferred. When such property <br/>
<a id="pl.34.16"></a><var>34.16</var>no longer qualifies under subdivisions subdivision 3 and 6 or 3a, all deferred special <br/>
<a id="pl.34.17"></a><var>34.17</var>assessments plus interest shall be payable in equal installments spread over the time <br/>
<a id="pl.34.18"></a><var>34.18</var>remaining until the last maturity date of the bonds issued to finance the improvement <br/>
<a id="pl.34.19"></a><var>34.19</var>for which the assessments were levied. If the bonds have matured, the deferred special <br/>
<a id="pl.34.20"></a><var>34.20</var>assessments plus interest shall be payable within 90 days. The provisions of section <br/>
<statute_ref><a id="pl.34.21"></a><var>34.21</var>429.061, subdivision 2
         </statute_ref>, apply to the collection of these installments. Penalty shall not be <br/>
<a id="pl.34.22"></a><var>34.22</var>levied on any such special assessments if timely paid. <br/>
<a id="pl.34.23"></a><var>34.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.34.24"></a><var>34.24</var>thereafter.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.34.25"></a><var>34.25</var>    Sec. 16. Minnesota Statutes 2006, section 273.111, subdivision 11a, is amended to read:<br/>
<a id="pl.34.26"></a><var>34.26</var>    Subd. 11a. <b>Continuation of tax treatment upon sale.</b> When real property <br/>
<a id="pl.34.27"></a><var>34.27</var>qualifying under subdivisions subdivision 3 and 6 is sold, no additional taxes or deferred <br/>
<a id="pl.34.28"></a><var>34.28</var>special assessments plus interest shall be extended against the property provided the <br/>
<a id="pl.34.29"></a><var>34.29</var>property continues to qualify pursuant to subdivisions subdivision 3 and 6, and provided <br/>
<a id="pl.34.30"></a><var>34.30</var>the new owner files an application for continued deferment within 30 days after the sale.<br/>
<a id="pl.34.31"></a><var>34.31</var>    For purposes of meeting the income requirements of subdivision 6, the property <br/>
<a id="pl.34.32"></a><var>34.32</var>purchased shall be considered in conjunction with other qualifying property owned by <br/>
<a id="pl.34.33"></a><var>34.33</var>the purchaser.<br/>
<a id="pl.35.1"></a><var>35.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.35.2"></a><var>35.2</var>thereafter.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.35.3"></a><var>35.3</var>    Sec. 17. <b>[273.113] TAX CREDIT FOR PROPERTY IN BOVINE </b><br/>
<a id="pl.35.4"></a><var>35.4</var><b>TUBERCULOSIS MANAGEMENT ZONES.</b><br/>
<a id="pl.35.5"></a><var>35.5</var>    Subdivision 1. <b>Definition.</b> For the purposes of this section, "bovine tuberculosis <br/>
<a id="pl.35.6"></a><var>35.6</var>management zone" means the area within the ten-mile radius around the five presumptive <br/>
<a id="pl.35.7"></a><var>35.7</var>tuberculosis-positive deer sampled during the fall 2006 hunter-harvested surveillance <br/>
<a id="pl.35.8"></a><var>35.8</var>effort.<br/>
<a id="pl.35.9"></a><var>35.9</var>    Subd. 2. <b>Eligibility; credit on agricultural land; cattle herds.</b> Land classified <br/>
<a id="pl.35.10"></a><var>35.10</var>as class 2a or 2b under section 273.13, subdivision 23, located in a bovine tuberculosis <br/>
<a id="pl.35.11"></a><var>35.11</var>management zone is eligible for a property tax credit if the property owner has eradicated <br/>
<a id="pl.35.12"></a><var>35.12</var>a cattle herd that had been kept on that land for at least part of the year in order to prevent <br/>
<a id="pl.35.13"></a><var>35.13</var>the onset or spread of bovine tuberculosis. The net credit is equal to that portion of the tax <br/>
<a id="pl.35.14"></a><var>35.14</var>relating to the market value of the land on the parcels where the herd had been located <br/>
<a id="pl.35.15"></a><var>35.15</var>after all other applicable credits have been deducted. To initially qualify for the tax credit, <br/>
<a id="pl.35.16"></a><var>35.16</var>the property owner shall file an application with the county by January 2 of the year <br/>
<a id="pl.35.17"></a><var>35.17</var>following the calendar year when the herd was eradicated. The credit must be given for <br/>
<a id="pl.35.18"></a><var>35.18</var>each taxes payable year following the calendar year when the herd was eradicated and <br/>
<a id="pl.35.19"></a><var>35.19</var>must terminate for all taxes payable years beginning after the calendar year when a new <br/>
<a id="pl.35.20"></a><var>35.20</var>herd of cattle was placed on the land. The auditor shall indicate the amount of the property <br/>
<a id="pl.35.21"></a><var>35.21</var>tax reduction on the property tax statement of each taxpayer receiving a credit under <br/>
<a id="pl.35.22"></a><var>35.22</var>this section. Notwithstanding section 276.04, subdivision 3, property tax statements of <br/>
<a id="pl.35.23"></a><var>35.23</var>properties eligible for a credit under this section must be mailed no later than April 15.<br/>
<a id="pl.35.24"></a><var>35.24</var>    Subd. 3. <b>Eligibility; credit on hunting land; deer and elk herds.</b> Land located <br/>
<a id="pl.35.25"></a><var>35.25</var>in a bovine tuberculosis management zone that is primarily used for hunting purposes is <br/>
<a id="pl.35.26"></a><var>35.26</var>eligible for a property tax credit if (1) the property owner or the Department of Natural <br/>
<a id="pl.35.27"></a><var>35.27</var>Resources has eradicated the deer and elk herd on that land in order to prevent the onset or <br/>
<a id="pl.35.28"></a><var>35.28</var>spread of bovine tuberculosis, (2) the property owner adheres strictly to the deer and elk <br/>
<a id="pl.35.29"></a><var>35.29</var>feeding ban, and (3) the property owner makes every effort to keep their land free of deer <br/>
<a id="pl.35.30"></a><var>35.30</var>and elk. The net credit is equal to the property tax on the parcel where the herd had been <br/>
<a id="pl.35.31"></a><var>35.31</var>located after all other applicable credits have been deducted. The credit is only on that <br/>
<a id="pl.35.32"></a><var>35.32</var>portion of the tax relating to the market value of the land. To initially qualify for the tax <br/>
<a id="pl.35.33"></a><var>35.33</var>credit, the property owner shall file an application with the county by January 2 of the <br/>
<a id="pl.35.34"></a><var>35.34</var>year following the calendar year when the deer or elk herd was eradicated. To receive <br/>
<a id="pl.35.35"></a><var>35.35</var>the tax credit in subsequent years, the property owner shall file by January 2 of each <br/>
<a id="pl.36.1"></a><var>36.1</var>subsequent year until the state is upgraded to a bovine tuberculosis status of modified <br/>
<a id="pl.36.2"></a><var>36.2</var>accredited advanced. The county board must approve the application before the credit <br/>
<a id="pl.36.3"></a><var>36.3</var>is allowed. The credit is for each taxes payable year following the calendar year when <br/>
<a id="pl.36.4"></a><var>36.4</var>the deer or elk herd was eradicated and must terminate as provided in subdivision 5. <br/>
<a id="pl.36.5"></a><var>36.5</var>The auditor shall indicate the amount of the property tax reduction on the property tax <br/>
<a id="pl.36.6"></a><var>36.6</var>statement of each taxpayer receiving a credit under this section. Notwithstanding section <br/>
<a id="pl.36.7"></a><var>36.7</var>276.04, subdivision 3, property tax statements of properties eligible for a credit under this <br/>
<a id="pl.36.8"></a><var>36.8</var>section must be mailed no later than April 15.<br/>
<a id="pl.36.9"></a><var>36.9</var>    Subd. 4. <b>Reimbursement for lost revenue; appropriations.</b> The county auditor <br/>
<a id="pl.36.10"></a><var>36.10</var>shall certify to the commissioner of revenue, as part of the abstracts of tax lists required to <br/>
<a id="pl.36.11"></a><var>36.11</var>be filed with the commissioner under section 275.29, the amount of tax lost to the county <br/>
<a id="pl.36.12"></a><var>36.12</var>from the property tax credit under this section after all other applicable credits have been <br/>
<a id="pl.36.13"></a><var>36.13</var>deducted. Any prior year adjustments must also be certified in the abstracts of tax lists. <br/>
<a id="pl.36.14"></a><var>36.14</var>The commissioner of revenue shall review the certifications to determine their accuracy. <br/>
<a id="pl.36.15"></a><var>36.15</var>The commissioner may make the changes in the certification that are considered necessary <br/>
<a id="pl.36.16"></a><var>36.16</var>or return a certification to the county auditor for corrections. The commissioner shall <br/>
<a id="pl.36.17"></a><var>36.17</var>reimburse each taxing district for the taxes lost. The payments must be made at the time <br/>
<a id="pl.36.18"></a><var>36.18</var>provided in section 273.1398, subdivision 6, for payment to taxing jurisdictions in the <br/>
<a id="pl.36.19"></a><var>36.19</var>same proportion that the ad valorem tax is distributed. The amount necessary to make the <br/>
<a id="pl.36.20"></a><var>36.20</var>reimbursements under this section is annually appropriated from the general fund to the <br/>
<a id="pl.36.21"></a><var>36.21</var>commissioner of revenue. The credits paid under this section shall be deducted from the <br/>
<a id="pl.36.22"></a><var>36.22</var>tax due on the property as provided in section 273.1393.<br/>
<a id="pl.36.23"></a><var>36.23</var>    Subd. 5. <b>Termination of credit.</b> The credit provided under this section ceases to <br/>
<a id="pl.36.24"></a><var>36.24</var>be available beginning with any assessment year following the date when the United <br/>
<a id="pl.36.25"></a><var>36.25</var>States Department of Agriculture publishes notice in the Federal Register that the state is <br/>
<a id="pl.36.26"></a><var>36.26</var>upgraded to a bovine tuberculosis status of modified accredited advanced.<br/>
<a id="pl.36.27"></a><var>36.27</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2009.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.36.28"></a><var>36.28</var>    Sec. 18. Minnesota Statutes 2006, section 273.121, as amended by Laws 2008, chapter <br/>
<a id="pl.36.29"></a><var>36.29</var>154, article 13, section 28, is amended to read:<br/>
<a id="pl.36.30"></a><var>36.30</var><b>273.121 VALUATION OF REAL PROPERTY, NOTICE. </b><br/>
<a id="pl.36.31"></a><var>36.31</var>    Subdivision 1. <b>Notice.</b> Any county assessor or city assessor having the powers of a <br/>
<a id="pl.36.32"></a><var>36.32</var>county assessor, valuing or classifying taxable real property shall in each year notify those <br/>
<a id="pl.36.33"></a><var>36.33</var>persons whose property is to be included on the assessment roll that year if the person's <br/>
<a id="pl.36.34"></a><var>36.34</var>address is known to the assessor, otherwise the occupant of the property. The notice shall <br/>
<a id="pl.37.1"></a><var>37.1</var>be in writing and shall be sent by ordinary mail at least ten days before the meeting of <br/>
<a id="pl.37.2"></a><var>37.2</var>the local board of appeal and equalization under section 
         <statute_ref>274.01</statute_ref> or the review process <br/>
<a id="pl.37.3"></a><var>37.3</var>established under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>. Upon written request by the owner of the <br/>
<a id="pl.37.4"></a><var>37.4</var>property, the assessor may send the notice in electronic form or by electronic mail instead <br/>
<a id="pl.37.5"></a><var>37.5</var>of on paper or by ordinary mail. It shall contain: (1) the market value for the current and <br/>
<a id="pl.37.6"></a><var>37.6</var>prior assessment, (2) the limited market value under section 
         <statute_ref>273.11, subdivision 1a</statute_ref>, for <br/>
<a id="pl.37.7"></a><var>37.7</var>the current and prior assessment, (3) the qualifying amount of any improvements under <br/>
<a id="pl.37.8"></a><var>37.8</var>section 
         <statute_ref>273.11, subdivision 16</statute_ref>, for the current assessment, (4) the market value subject <br/>
<a id="pl.37.9"></a><var>37.9</var>to taxation after subtracting the amount of any qualifying improvements for the current <br/>
<a id="pl.37.10"></a><var>37.10</var>assessment, (5) the classification of the property for the current and prior assessment, <br/>
<a id="pl.37.11"></a><var>37.11</var>(6) a note that if the property is homestead and at least 45 years old, improvements <br/>
<a id="pl.37.12"></a><var>37.12</var>made to the property may be eligible for a valuation exclusion under section 
         <statute_ref>273.11, <br/>
<a id="pl.37.13"></a><var>37.13</var>subdivision 16
         </statute_ref>, (7) the assessor's office address, and (8) the dates, places, and times set for <br/>
<a id="pl.37.14"></a><var>37.14</var>the meetings of the local board of appeal and equalization, the review process established <br/>
<a id="pl.37.15"></a><var>37.15</var>under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>, and the county board of appeal and equalization. <br/>
<a id="pl.37.16"></a><var>37.16</var>The commissioner of revenue shall specify the form of the notice. The assessor shall <br/>
<a id="pl.37.17"></a><var>37.17</var>attach to the assessment roll a statement that the notices required by this section have been <br/>
<a id="pl.37.18"></a><var>37.18</var>mailed. Any assessor who is not provided sufficient funds from the assessor's governing <br/>
<a id="pl.37.19"></a><var>37.19</var>body to provide such notices, may make application to the commissioner of revenue <br/>
<a id="pl.37.20"></a><var>37.20</var>to finance such notices. The commissioner of revenue shall conduct an investigation <br/>
<a id="pl.37.21"></a><var>37.21</var>and, if satisfied that the assessor does not have the necessary funds, issue a certification <br/>
<a id="pl.37.22"></a><var>37.22</var>to the commissioner of finance of the amount necessary to provide such notices. The <br/>
<a id="pl.37.23"></a><var>37.23</var>commissioner of finance shall issue a warrant for such amount and shall deduct such <br/>
<a id="pl.37.24"></a><var>37.24</var>amount from any state payment to such county or municipality. The necessary funds to <br/>
<a id="pl.37.25"></a><var>37.25</var>make such payments are hereby appropriated. Failure to receive the notice shall in no way <br/>
<a id="pl.37.26"></a><var>37.26</var>affect the validity of the assessment, the resulting tax, the procedures of any board of <br/>
<a id="pl.37.27"></a><var>37.27</var>review or equalization, or the enforcement of delinquent taxes by statutory means. <br/>
<a id="pl.37.28"></a><var>37.28</var>    Subd. 2. <b>Availability of data.</b> The notice must state where the information on <br/>
<a id="pl.37.29"></a><var>37.29</var>the property is available, the times when the information may be viewed by the public, <br/>
<a id="pl.37.30"></a><var>37.30</var>and the county's Web site address.<br/>
<a id="pl.37.31"></a><var>37.31</var><b>EFFECTIVE DATE.</b>This section is effective for notices prepared in 2009 and <br/>
<a id="pl.37.32"></a><var>37.32</var>thereafter.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.37.33"></a><var>37.33</var>    Sec. 19. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:<br/>
<a id="pl.38.1"></a><var>38.1</var>    Subdivision 1. <b>General rule.</b> (a) Residential real estate that is occupied and used <br/>
<a id="pl.38.2"></a><var>38.2</var>for the purposes of a homestead by its owner, who must be a Minnesota resident, is <br/>
<a id="pl.38.3"></a><var>38.3</var>a residential homestead.<br/>
<a id="pl.38.4"></a><var>38.4</var>    Agricultural land, as defined in section 
         <statute_ref>273.13, subdivision 23</statute_ref>, that is occupied and <br/>
<a id="pl.38.5"></a><var>38.5</var>used as a homestead by its owner, who must be a Minnesota resident, is an agricultural <br/>
<a id="pl.38.6"></a><var>38.6</var>homestead.<br/>
<a id="pl.38.7"></a><var>38.7</var>    Dates for establishment of a homestead and homestead treatment provided to <br/>
<a id="pl.38.8"></a><var>38.8</var>particular types of property are as provided in this section.<br/>
<a id="pl.38.9"></a><var>38.9</var>    Property held by a trustee under a trust is eligible for homestead classification if the <br/>
<a id="pl.38.10"></a><var>38.10</var>requirements under this chapter are satisfied.<br/>
<a id="pl.38.11"></a><var>38.11</var>    The assessor shall require proof, as provided in subdivision 13, of the facts upon <br/>
<a id="pl.38.12"></a><var>38.12</var>which classification as a homestead may be determined. Notwithstanding any other law, <br/>
<a id="pl.38.13"></a><var>38.13</var>the assessor may at any time require a homestead application to be filed in order to verify <br/>
<a id="pl.38.14"></a><var>38.14</var>that any property classified as a homestead continues to be eligible for homestead status. <br/>
<a id="pl.38.15"></a><var>38.15</var>Notwithstanding any other law to the contrary, the Department of Revenue may, upon <br/>
<a id="pl.38.16"></a><var>38.16</var>request from an assessor, verify whether an individual who is requesting or receiving <br/>
<a id="pl.38.17"></a><var>38.17</var>homestead classification has filed a Minnesota income tax return as a resident for the most <br/>
<a id="pl.38.18"></a><var>38.18</var>recent taxable year for which the information is available.<br/>
<a id="pl.38.19"></a><var>38.19</var>    When there is a name change or a transfer of homestead property, the assessor may <br/>
<a id="pl.38.20"></a><var>38.20</var>reclassify the property in the next assessment unless a homestead application is filed to <br/>
<a id="pl.38.21"></a><var>38.21</var>verify that the property continues to qualify for homestead classification.<br/>
<a id="pl.38.22"></a><var>38.22</var>    (b) For purposes of this section, homestead property shall include property which <br/>
<a id="pl.38.23"></a><var>38.23</var>is used for purposes of the homestead but is separated from the homestead by a road, <br/>
<a id="pl.38.24"></a><var>38.24</var>street, lot, waterway, or other similar intervening property. The term "used for purposes <br/>
<a id="pl.38.25"></a><var>38.25</var>of the homestead" shall include but not be limited to uses for gardens, garages, or other <br/>
<a id="pl.38.26"></a><var>38.26</var>outbuildings commonly associated with a homestead, but shall not include vacant land <br/>
<a id="pl.38.27"></a><var>38.27</var>held primarily for future development. In order to receive homestead treatment for <br/>
<a id="pl.38.28"></a><var>38.28</var>the noncontiguous property, the owner must use the property for the purposes of the <br/>
<a id="pl.38.29"></a><var>38.29</var>homestead, and must apply to the assessor, both by the deadlines given in subdivision <br/>
<a id="pl.38.30"></a><var>38.30</var>9. After initial qualification for the homestead treatment, additional applications for <br/>
<a id="pl.38.31"></a><var>38.31</var>subsequent years are not required.<br/>
<a id="pl.38.32"></a><var>38.32</var>    (c) Residential real estate that is occupied and used for purposes of a homestead by a <br/>
<a id="pl.38.33"></a><var>38.33</var>relative of the owner is a homestead but only to the extent of the homestead treatment <br/>
<a id="pl.38.34"></a><var>38.34</var>that would be provided if the related owner occupied the property. For purposes of this <br/>
<a id="pl.38.35"></a><var>38.35</var>paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, <br/>
<a id="pl.38.36"></a><var>38.36</var>grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship <br/>
<a id="pl.39.1"></a><var>39.1</var>may be by blood or marriage. Property that has been classified as seasonal residential <br/>
<a id="pl.39.2"></a><var>39.2</var>recreational property at any time during which it has been owned by the current owner or <br/>
<a id="pl.39.3"></a><var>39.3</var>spouse of the current owner will not be reclassified as a homestead unless it is occupied as <br/>
<a id="pl.39.4"></a><var>39.4</var>a homestead by the owner; this prohibition also applies to property that, in the absence of <br/>
<a id="pl.39.5"></a><var>39.5</var>this paragraph, would have been classified as seasonal residential recreational property at <br/>
<a id="pl.39.6"></a><var>39.6</var>the time when the residence was constructed. Neither the related occupant nor the owner <br/>
<a id="pl.39.7"></a><var>39.7</var>of the property may claim a property tax refund under chapter 290A for a homestead <br/>
<a id="pl.39.8"></a><var>39.8</var>occupied by a relative. In the case of a residence located on agricultural land, only the <br/>
<a id="pl.39.9"></a><var>39.9</var>house, garage, and immediately surrounding one acre of land shall be classified as a <br/>
<a id="pl.39.10"></a><var>39.10</var>homestead under this paragraph, except as provided in paragraph (d).<br/>
<a id="pl.39.11"></a><var>39.11</var>    (d) Agricultural property that is occupied and used for purposes of a homestead by <br/>
<a id="pl.39.12"></a><var>39.12</var>a relative of the owner, is a homestead, only to the extent of the homestead treatment <br/>
<a id="pl.39.13"></a><var>39.13</var>that would be provided if the related owner occupied the property, and only if all of the <br/>
<a id="pl.39.14"></a><var>39.14</var>following criteria are met:<br/>
<a id="pl.39.15"></a><var>39.15</var>    (1) the relative who is occupying the agricultural property is a son, daughter, brother, <br/>
<a id="pl.39.16"></a><var>39.16</var>sister, grandson, granddaughter, father, or mother of the owner of the agricultural property <br/>
<a id="pl.39.17"></a><var>39.17</var>or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner <br/>
<a id="pl.39.18"></a><var>39.18</var>of the agricultural property;<br/>
<a id="pl.39.19"></a><var>39.19</var>    (2) the owner of the agricultural property must be a Minnesota resident;<br/>
<a id="pl.39.20"></a><var>39.20</var>    (3) the owner of the agricultural property must not receive homestead treatment on <br/>
<a id="pl.39.21"></a><var>39.21</var>any other agricultural property in Minnesota; and<br/>
<a id="pl.39.22"></a><var>39.22</var>    (4) the owner of the agricultural property is limited to only one agricultural <br/>
<a id="pl.39.23"></a><var>39.23</var>homestead per family under this paragraph.<br/>
<a id="pl.39.24"></a><var>39.24</var>    Neither the related occupant nor the owner of the property may claim a property <br/>
<a id="pl.39.25"></a><var>39.25</var>tax refund under chapter 290A for a homestead occupied by a relative qualifying under <br/>
<a id="pl.39.26"></a><var>39.26</var>this paragraph. For purposes of this paragraph, "agricultural property" means the house, <br/>
<a id="pl.39.27"></a><var>39.27</var>garage, other farm buildings and structures, and agricultural land.<br/>
<a id="pl.39.28"></a><var>39.28</var>    Application must be made to the assessor by the owner of the agricultural property to <br/>
<a id="pl.39.29"></a><var>39.29</var>receive homestead benefits under this paragraph. The assessor may require the necessary <br/>
<a id="pl.39.30"></a><var>39.30</var>proof that the requirements under this paragraph have been met.<br/>
<a id="pl.39.31"></a><var>39.31</var>    (e) In the case of property owned by a property owner who is married, the assessor <br/>
<a id="pl.39.32"></a><var>39.32</var>must not deny homestead treatment in whole or in part if only one of the spouses occupies <br/>
<a id="pl.39.33"></a><var>39.33</var>the property and the other spouse is absent due to: (1) marriage dissolution proceedings, <br/>
<a id="pl.39.34"></a><var>39.34</var>(2) legal separation, (3) employment or self-employment in another location, or (4) other <br/>
<a id="pl.39.35"></a><var>39.35</var>personal circumstances causing the spouses to live separately, not including an intent to <br/>
<a id="pl.39.36"></a><var>39.36</var>obtain two homestead classifications for property tax purposes. To qualify under clause <br/>
<a id="pl.40.1"></a><var>40.1</var>(3), the spouse's place of employment or self-employment must be at least 50 miles distant <br/>
<a id="pl.40.2"></a><var>40.2</var>from the other spouse's place of employment, and the homesteads must be at least 50 miles <br/>
<a id="pl.40.3"></a><var>40.3</var>distant from each other. Homestead treatment, in whole or in part, shall not be denied to <br/>
<a id="pl.40.4"></a><var>40.4</var>the owner's spouse who previously occupied the residence with the owner if the absence <br/>
<a id="pl.40.5"></a><var>40.5</var>of the owner is due to one of the exceptions provided in this paragraph.<br/>
<a id="pl.40.6"></a><var>40.6</var>    (f) The assessor must not deny homestead treatment in whole or in part if:<br/>
<a id="pl.40.7"></a><var>40.7</var>    (1) in the case of a property owner who is not married, the owner is absent due to <br/>
<a id="pl.40.8"></a><var>40.8</var>residence in a nursing home, boarding care facility, or an elderly assisted living facility <br/>
<a id="pl.40.9"></a><var>40.9</var>property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the property is not otherwise <br/>
<a id="pl.40.10"></a><var>40.10</var>occupied; or<br/>
<a id="pl.40.11"></a><var>40.11</var>    (2) in the case of a property owner who is married, the owner or the owner's spouse <br/>
<a id="pl.40.12"></a><var>40.12</var>or both are absent due to residence in a nursing home, boarding care facility, or an elderly <br/>
<a id="pl.40.13"></a><var>40.13</var>assisted living facility property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the <br/>
<a id="pl.40.14"></a><var>40.14</var>property is not occupied or is occupied only by the owner's spouse.<br/>
<a id="pl.40.15"></a><var>40.15</var>    (g) If an individual is purchasing property with the intent of claiming it as a <br/>
<a id="pl.40.16"></a><var>40.16</var>homestead and is required by the terms of the financing agreement to have a relative <br/>
<a id="pl.40.17"></a><var>40.17</var>shown on the deed as a co-owner, the assessor shall allow a full homestead classification. <br/>
<a id="pl.40.18"></a><var>40.18</var>This provision only applies to first-time purchasers, whether married or single, or to a <br/>
<a id="pl.40.19"></a><var>40.19</var>person who had previously been married and is purchasing as a single individual for the <br/>
<a id="pl.40.20"></a><var>40.20</var>first time. The application for homestead benefits must be on a form prescribed by the <br/>
<a id="pl.40.21"></a><var>40.21</var>commissioner and must contain the data necessary for the assessor to determine if full <br/>
<a id="pl.40.22"></a><var>40.22</var>homestead benefits are warranted.<br/>
<a id="pl.40.23"></a><var>40.23</var>    (h) If residential or agricultural real estate is occupied and used for purposes of a <br/>
<a id="pl.40.24"></a><var>40.24</var>homestead by a child of a deceased owner and the property is subject to jurisdiction of <br/>
<a id="pl.40.25"></a><var>40.25</var>probate court, the child shall receive relative homestead classification under paragraph (c) <br/>
<a id="pl.40.26"></a><var>40.26</var>or (d) to the same extent they would be entitled to it if the owner was still living, until <br/>
<a id="pl.40.27"></a><var>40.27</var>the probate is completed. For purposes of this paragraph, "child" includes a relationship <br/>
<a id="pl.40.28"></a><var>40.28</var>by blood or by marriage.<br/>
<a id="pl.40.29"></a><var>40.29</var>    (i) If a single-family home, duplex, or triplex classified as either residential <br/>
<a id="pl.40.30"></a><var>40.30</var>homestead or agricultural homestead is also used to provide licensed child care, the <br/>
<a id="pl.40.31"></a><var>40.31</var>portion of the property used for licensed child care must be classified as a part of the <br/>
<a id="pl.40.32"></a><var>40.32</var>homestead property.<br/>
<a id="pl.40.33"></a><var>40.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.40.34"></a><var>40.34</var>thereafter.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.41.1"></a><var>41.1</var>    Sec. 20. Minnesota Statutes 2007 Supplement, section 273.124, subdivision 14, <br/>
<a id="pl.41.2"></a><var>41.2</var>is amended to read:<br/>
<a id="pl.41.3"></a><var>41.3</var>    Subd. 14.  <b>Agricultural homesteads; special provisions. </b> (a) Real estate of less than <br/>
<a id="pl.41.4"></a><var>41.4</var>ten acres that is the homestead of its owner must be classified as class 2a under section <br/>
<statute_ref><a id="pl.41.5"></a><var>41.5</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), if: <br/>
<a id="pl.41.6"></a><var>41.6</var>    (1) the parcel on which the house is located is contiguous on at least two sides to (i) <br/>
<a id="pl.41.7"></a><var>41.7</var>agricultural land, (ii) land owned or administered by the United States Fish and Wildlife <br/>
<a id="pl.41.8"></a><var>41.8</var>Service, or (iii) land administered by the Department of Natural Resources on which in <br/>
<a id="pl.41.9"></a><var>41.9</var>lieu taxes are paid under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>; <br/>
<a id="pl.41.10"></a><var>41.10</var>    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least <br/>
<a id="pl.41.11"></a><var>41.11</var>20 acres; <br/>
<a id="pl.41.12"></a><var>41.12</var>    (3) the noncontiguous land is located not farther than four townships or cities, or a <br/>
<a id="pl.41.13"></a><var>41.13</var>combination of townships or cities from the homestead; and <br/>
<a id="pl.41.14"></a><var>41.14</var>    (4) the agricultural use value of the noncontiguous land and farm buildings is equal <br/>
<a id="pl.41.15"></a><var>41.15</var>to at least 50 percent of the market value of the house, garage, and one acre of land. <br/>
<a id="pl.41.16"></a><var>41.16</var>    Homesteads initially classified as class 2a under the provisions of this paragraph shall <br/>
<a id="pl.41.17"></a><var>41.17</var>remain classified as class 2a, irrespective of subsequent changes in the use of adjoining <br/>
<a id="pl.41.18"></a><var>41.18</var>properties, as long as the homestead remains under the same ownership, the owner owns a <br/>
<a id="pl.41.19"></a><var>41.19</var>noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use <br/>
<a id="pl.41.20"></a><var>41.20</var>value qualifies under clause (4). Homestead classification under this paragraph is limited <br/>
<a id="pl.41.21"></a><var>41.21</var>to property that qualified under this paragraph for the 1998 assessment. <br/>
<a id="pl.41.22"></a><var>41.22</var>    (b)(i) Agricultural property consisting of at least 40 acres shall be classified as the <br/>
<a id="pl.41.23"></a><var>41.23</var>owner's homestead, to the same extent as other agricultural homestead property, if all <br/>
<a id="pl.41.24"></a><var>41.24</var>of the following criteria are met: <br/>
<a id="pl.41.25"></a><var>41.25</var>    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's <br/>
<a id="pl.41.26"></a><var>41.26</var>spouse, the brother or sister of the owner or owner's spouse, or the grandson or <br/>
<a id="pl.41.27"></a><var>41.27</var>granddaughter of the owner or the owner's spouse, is actively farming the agricultural <br/>
<a id="pl.41.28"></a><var>41.28</var>property, either on the person's own behalf as an individual or on behalf of a partnership <br/>
<a id="pl.41.29"></a><var>41.29</var>operating a family farm, family farm corporation, joint family farm venture, or limited <br/>
<a id="pl.41.30"></a><var>41.30</var>liability company of which the person is a partner, shareholder, or member; <br/>
<a id="pl.41.31"></a><var>41.31</var>    (2) both the owner of the agricultural property and the person who is actively <br/>
<a id="pl.41.32"></a><var>41.32</var>farming the agricultural property under clause (1), are Minnesota residents; <br/>
<a id="pl.41.33"></a><var>41.33</var>    (3) neither the owner nor the spouse of the owner claims another agricultural <br/>
<a id="pl.41.34"></a><var>41.34</var>homestead in Minnesota; and <br/>
<a id="pl.41.35"></a><var>41.35</var>    (4) neither the owner nor and the person actively farming the property lives farther <br/>
<a id="pl.41.36"></a><var>41.36</var>than four townships or cities, or a combination of four townships or cities, from the <br/>
<a id="pl.42.1"></a><var>42.1</var>agricultural property, must live either in the county where the agricultural property is <br/>
<a id="pl.42.2"></a><var>42.2</var>located or in a county contiguous to the county where the agricultural property is located, <br/>
<a id="pl.42.3"></a><var>42.3</var>except that if the owner or the owner's spouse is required to live in employer-provided <br/>
<a id="pl.42.4"></a><var>42.4</var>housing, the owner or owner's spouse, whichever is actively farming the agricultural <br/>
<a id="pl.42.5"></a><var>42.5</var>property, may live more than four townships or cities, or combination of four townships <br/>
<a id="pl.42.6"></a><var>42.6</var>or cities further from the agricultural property than in the county or county contiguous <br/>
<a id="pl.42.7"></a><var>42.7</var>to the property. <br/>
<a id="pl.42.8"></a><var>42.8</var>    The relationship under this paragraph may be either by blood or marriage. <br/>
<a id="pl.42.9"></a><var>42.9</var>    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead <br/>
<a id="pl.42.10"></a><var>42.10</var>classification under this paragraph if the qualifications in clause (i) are met, except that <br/>
<a id="pl.42.11"></a><var>42.11</var>"owner" means the grantor of the trust. <br/>
<a id="pl.42.12"></a><var>42.12</var>    (iii) Property containing the residence of an owner who owns qualified property <br/>
<a id="pl.42.13"></a><var>42.13</var>under clause (i) shall be classified as part of the owner's agricultural homestead, if that <br/>
<a id="pl.42.14"></a><var>42.14</var>property is also used for noncommercial storage or drying of agricultural crops. <br/>
<a id="pl.42.15"></a><var>42.15</var>    (c) Noncontiguous land shall be included as part of a homestead under section <br/>
<statute_ref><a id="pl.42.16"></a><var>42.16</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), only if the homestead is classified as class 2a <br/>
<a id="pl.42.17"></a><var>42.17</var>and the detached land is located in the same township or city, or not farther than four <br/>
<a id="pl.42.18"></a><var>42.18</var>townships or cities or combination thereof from county or in a county contiguous to the <br/>
<a id="pl.42.19"></a><var>42.19</var>homestead. Any taxpayer of these noncontiguous lands must notify the county assessor <br/>
<a id="pl.42.20"></a><var>42.20</var>that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is <br/>
<a id="pl.42.21"></a><var>42.21</var>located in another county, the taxpayer must also notify the assessor of the other county. <br/>
<a id="pl.42.22"></a><var>42.22</var>    (d) Agricultural land used for purposes of a homestead and actively farmed by a <br/>
<a id="pl.42.23"></a><var>42.23</var>person holding a vested remainder interest in it must be classified as a homestead under <br/>
<a id="pl.42.24"></a><var>42.24</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a). If agricultural land is classified class 2a, <br/>
<a id="pl.42.25"></a><var>42.25</var>any other dwellings on the land used for purposes of a homestead by persons holding <br/>
<a id="pl.42.26"></a><var>42.26</var>vested remainder interests who are actively engaged in farming the property, and up to <br/>
<a id="pl.42.27"></a><var>42.27</var>one acre of the land surrounding each homestead and reasonably necessary for the use of <br/>
<a id="pl.42.28"></a><var>42.28</var>the dwelling as a home, must also be assessed class 2a. <br/>
<a id="pl.42.29"></a><var>42.29</var>    (e) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.42.30"></a><var>42.30</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1997 assessment shall remain <br/>
<a id="pl.42.31"></a><var>42.31</var>classified as agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.42.32"></a><var>42.32</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.42.33"></a><var>42.33</var>homestead as a result of the April 1997 floods; <br/>
<a id="pl.42.34"></a><var>42.34</var>    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, <br/>
<a id="pl.42.35"></a><var>42.35</var>or Wilkin; <br/>
<a id="pl.43.1"></a><var>43.1</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.43.2"></a><var>43.2</var>current assessment year as existed for the 1997 assessment year and continue to be used <br/>
<a id="pl.43.3"></a><var>43.3</var>for agricultural purposes; <br/>
<a id="pl.43.4"></a><var>43.4</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 <br/>
<a id="pl.43.5"></a><var>43.5</var>miles of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.43.6"></a><var>43.6</var>    (5) the owner notifies the county assessor that the relocation was due to the 1997 <br/>
<a id="pl.43.7"></a><var>43.7</var>floods, and the owner furnishes the assessor any information deemed necessary by the <br/>
<a id="pl.43.8"></a><var>43.8</var>assessor in verifying the change in dwelling. Further notifications to the assessor are not <br/>
<a id="pl.43.9"></a><var>43.9</var>required if the property continues to meet all the requirements in this paragraph and any <br/>
<a id="pl.43.10"></a><var>43.10</var>dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.43.11"></a><var>43.11</var>    (f) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.43.12"></a><var>43.12</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1998 assessment shall remain <br/>
<a id="pl.43.13"></a><var>43.13</var>classified agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.43.14"></a><var>43.14</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.43.15"></a><var>43.15</var>homestead as a result of damage caused by a March 29, 1998, tornado; <br/>
<a id="pl.43.16"></a><var>43.16</var>    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, <br/>
<a id="pl.43.17"></a><var>43.17</var>LeSueur, Nicollet, Nobles, or Rice; <br/>
<a id="pl.43.18"></a><var>43.18</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.43.19"></a><var>43.19</var>current assessment year as existed for the 1998 assessment year; <br/>
<a id="pl.43.20"></a><var>43.20</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.43.21"></a><var>43.21</var>of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.43.22"></a><var>43.22</var>    (5) the owner notifies the county assessor that the relocation was due to a March 29, <br/>
<a id="pl.43.23"></a><var>43.23</var>1998, tornado, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.43.24"></a><var>43.24</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the <br/>
<a id="pl.43.25"></a><var>43.25</var>owner must notify the assessor by December 1, 1998. Further notifications to the assessor <br/>
<a id="pl.43.26"></a><var>43.26</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.43.27"></a><var>43.27</var>and any dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.43.28"></a><var>43.28</var>    (g) Agricultural property consisting of at least 40 acres of a family farm corporation, <br/>
<a id="pl.43.29"></a><var>43.29</var>joint family farm venture, family farm limited liability company, or partnership operating <br/>
<a id="pl.43.30"></a><var>43.30</var>a family farm as described under subdivision 8 shall be classified homestead, to the same <br/>
<a id="pl.43.31"></a><var>43.31</var>extent as other agricultural homestead property, if all of the following criteria are met: <br/>
<a id="pl.43.32"></a><var>43.32</var>    (1) a shareholder, member, or partner of that entity is actively farming the <br/>
<a id="pl.43.33"></a><var>43.33</var>agricultural property; <br/>
<a id="pl.43.34"></a><var>43.34</var>    (2) that shareholder, member, or partner who is actively farming the agricultural <br/>
<a id="pl.43.35"></a><var>43.35</var>property is a Minnesota resident; <br/>
<a id="pl.44.1"></a><var>44.1</var>    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder, <br/>
<a id="pl.44.2"></a><var>44.2</var>member, or partner claims another agricultural homestead in Minnesota; and <br/>
<a id="pl.44.3"></a><var>44.3</var>    (4) that shareholder, member, or partner does not live farther than four townships <br/>
<a id="pl.44.4"></a><var>44.4</var>or cities, or a combination of four townships or cities, from the agricultural property <br/>
<a id="pl.44.5"></a><var>44.5</var>lives in the county where the agricultural property is located or in a county contiguous to <br/>
<a id="pl.44.6"></a><var>44.6</var>the county where the property is located. <br/>
<a id="pl.44.7"></a><var>44.7</var>    Homestead treatment applies under this paragraph for property leased to a family <br/>
<a id="pl.44.8"></a><var>44.8</var>farm corporation, joint farm venture, limited liability company, or partnership operating a <br/>
<a id="pl.44.9"></a><var>44.9</var>family farm if legal title to the property is in the name of an individual who is a member, <br/>
<a id="pl.44.10"></a><var>44.10</var>shareholder, or partner in the entity. <br/>
<a id="pl.44.11"></a><var>44.11</var>    (h) To be eligible for the special agricultural homestead under this subdivision, an <br/>
<a id="pl.44.12"></a><var>44.12</var>initial full application must be submitted to the county assessor where the property is <br/>
<a id="pl.44.13"></a><var>44.13</var>located. Owners and the persons who are actively farming the property shall be required <br/>
<a id="pl.44.14"></a><var>44.14</var>to complete only a one-page abbreviated version of the application in each subsequent <br/>
<a id="pl.44.15"></a><var>44.15</var>year provided that none of the following items have changed since the initial application: <br/>
<a id="pl.44.16"></a><var>44.16</var>    (1) the day-to-day operation, administration, and financial risks remain the same; <br/>
<a id="pl.44.17"></a><var>44.17</var>    (2) the owners and the persons actively farming the property continue to live within <br/>
<a id="pl.44.18"></a><var>44.18</var>the four townships or city criteria the county or a contiguous county and are Minnesota <br/>
<a id="pl.44.19"></a><var>44.19</var>residents; <br/>
<a id="pl.44.20"></a><var>44.20</var>    (3) the same operator of the agricultural property is listed with the Farm Service <br/>
<a id="pl.44.21"></a><var>44.21</var>Agency; <br/>
<a id="pl.44.22"></a><var>44.22</var>    (4) a Schedule F or equivalent income tax form was filed for the most recent year; <br/>
<a id="pl.44.23"></a><var>44.23</var>    (5) the property's acreage is unchanged; and <br/>
<a id="pl.44.24"></a><var>44.24</var>    (6) none of the property's acres have been enrolled in a federal or state farm program <br/>
<a id="pl.44.25"></a><var>44.25</var>since the initial application. <br/>
<a id="pl.44.26"></a><var>44.26</var>    The owners and any persons who are actively farming the property must include <br/>
<a id="pl.44.27"></a><var>44.27</var>the appropriate Social Security numbers, and sign and date the application. If any of the <br/>
<a id="pl.44.28"></a><var>44.28</var>specified information has changed since the full application was filed, the owner must <br/>
<a id="pl.44.29"></a><var>44.29</var>notify the assessor, and must complete a new application to determine if the property <br/>
<a id="pl.44.30"></a><var>44.30</var>continues to qualify for the special agricultural homestead. The commissioner of revenue <br/>
<a id="pl.44.31"></a><var>44.31</var>shall prepare a standard reapplication form for use by the assessors. <br/>
<a id="pl.44.32"></a><var>44.32</var>    (i) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.44.33"></a><var>44.33</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 2007 assessment shall remain <br/>
<a id="pl.44.34"></a><var>44.34</var>classified agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.44.35"></a><var>44.35</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.44.36"></a><var>44.36</var>homestead as a result of damage caused by the August 2007 floods; <br/>
<a id="pl.45.1"></a><var>45.1</var>    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, <br/>
<a id="pl.45.2"></a><var>45.2</var>Steele, Wabasha, or Winona; <br/>
<a id="pl.45.3"></a><var>45.3</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.45.4"></a><var>45.4</var>current assessment year as existed for the 2007 assessment year; <br/>
<a id="pl.45.5"></a><var>45.5</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.45.6"></a><var>45.6</var>of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.45.7"></a><var>45.7</var>    (5) the owner notifies the county assessor that the relocation was due to the August <br/>
<a id="pl.45.8"></a><var>45.8</var>2007 floods, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.45.9"></a><var>45.9</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the <br/>
<a id="pl.45.10"></a><var>45.10</var>owner must notify the assessor by December 1, 2008. Further notifications to the assessor <br/>
<a id="pl.45.11"></a><var>45.11</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.45.12"></a><var>45.12</var>and any dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.45.13"></a><var>45.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.45.14"></a><var>45.14</var>thereafter, except that the provision extending the homestead to brothers and sisters is <br/>
<a id="pl.45.15"></a><var>45.15</var>effective for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.45.16"></a><var>45.16</var>    Sec. 21. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws <br/>
<a id="pl.45.17"></a><var>45.17</var>2008, chapter 154, article 2, section 12, is amended to read:<br/>
<a id="pl.45.18"></a><var>45.18</var>    Subd. 23.  <b>Class 2.</b> (a) Class 2a property is agricultural land including any <br/>
<a id="pl.45.19"></a><var>45.19</var>improvements An agricultural homestead consists of class 2a agricultural land that is <br/>
<a id="pl.45.20"></a><var>45.20</var>homesteaded, along with any class 2b rural vacant land that is contiguous to the class 2a <br/>
<a id="pl.45.21"></a><var>45.21</var>land. The market value of the house and garage and immediately surrounding one acre <br/>
<a id="pl.45.22"></a><var>45.22</var>of land has the same class rates as class 1a or 1b property under subdivision 22. The <br/>
<a id="pl.45.23"></a><var>45.23</var>value of the remaining land including improvements up to the first tier valuation limit of <br/>
<a id="pl.45.24"></a><var>45.24</var>agricultural homestead property has a net class rate of 0.55 0.5 percent of market value. <br/>
<a id="pl.45.25"></a><var>45.25</var>The remaining property over the first tier has a class rate of one percent of market value. <br/>
<a id="pl.45.26"></a><var>45.26</var>For purposes of this subdivision, the "first tier valuation limit of agricultural homestead <br/>
<a id="pl.45.27"></a><var>45.27</var>property" and "first tier" means the limit certified under section 
         <statute_ref>273.11</statute_ref>, subdivision 23. <br/>
<a id="pl.45.28"></a><var>45.28</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, <br/>
<a id="pl.45.29"></a><var>45.29</var>that are agricultural land and buildings. Class 2a property has a net class rate of one <br/>
<a id="pl.45.30"></a><var>45.30</var>percent of market value, unless it is part of an agricultural homestead under paragraph <br/>
<a id="pl.45.31"></a><var>45.31</var>(a). Class 2a property may contain an incidental amount of property that would otherwise <br/>
<a id="pl.45.32"></a><var>45.32</var>be classified as 2b, including but not limited to sloughs, wooded wind shelters, acreage <br/>
<a id="pl.45.33"></a><var>45.33</var>abutting ditches, and other similar land impractical for the assessor to value separately <br/>
<a id="pl.45.34"></a><var>45.34</var>from the rest of the property.<br/>
<a id="pl.46.1"></a><var>46.1</var>    (c) Class 2b property is (1) rural vacant land consists of parcels of property, <br/>
<a id="pl.46.2"></a><var>46.2</var>or portions thereof, that are unplatted  real estate, rural in character and not used for <br/>
<a id="pl.46.3"></a><var>46.3</var>agricultural purposes, including land used exclusively for growing trees for timber, <br/>
<a id="pl.46.4"></a><var>46.4</var>lumber, and wood and wood products; (2) real estate that is not improved with a structure <br/>
<a id="pl.46.5"></a><var>46.5</var>and is used exclusively for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.46.6"></a><var>46.6</var>if the owner has participated or is participating in a cost-sharing program for afforestation, <br/>
<a id="pl.46.7"></a><var>46.7</var>reforestation, or timber stand improvement on that particular property, administered or <br/>
<a id="pl.46.8"></a><var>46.8</var>coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead <br/>
<a id="pl.46.9"></a><var>46.9</var>agricultural land; or (4) a landing area or public access area of a privately owned public use <br/>
<a id="pl.46.10"></a><var>46.10</var>airport, provided that the presence of a minor, ancillary nonresidential structure as defined <br/>
<a id="pl.46.11"></a><var>46.11</var>by the commissioner of revenue does not disqualify the property from classification <br/>
<a id="pl.46.12"></a><var>46.12</var>under this paragraph and provided that any parcel improved with a structure that is not a <br/>
<a id="pl.46.13"></a><var>46.13</var>minor, ancillary nonresidential structure may be split-classified, provided that the acreage <br/>
<a id="pl.46.14"></a><var>46.14</var>assigned to the split parcel with the structure is at least 20 acres. Class 2b property has <br/>
<a id="pl.46.15"></a><var>46.15</var>a net class rate of one percent of market value, except that unplatted property described <br/>
<a id="pl.46.16"></a><var>46.16</var>in clause (1) or (2) has a net class rate of .65 percent if it consists unless it is part of an <br/>
<a id="pl.46.17"></a><var>46.17</var>agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.46.18"></a><var>46.18</var>    (d) Class 2c managed forest land consists  of no less than ten 20 and no more than <br/>
<a id="pl.46.19"></a><var>46.19</var>1,920 acres statewide per taxpayer and that is being managed under a forest management <br/>
<a id="pl.46.20"></a><var>46.20</var>plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable <br/>
<a id="pl.46.21"></a><var>46.21</var>forest resource management incentive program. It has a class rate of .65 percent, provided <br/>
<a id="pl.46.22"></a><var>46.22</var>that the owner of the property must apply to the assessor annually to receive the reduced <br/>
<a id="pl.46.23"></a><var>46.23</var>class rate and provide the information required by the assessor to verify that the property <br/>
<a id="pl.46.24"></a><var>46.24</var>qualifies for the reduced rate. The commissioner of natural resources must concur that the <br/>
<a id="pl.46.25"></a><var>46.25</var>land is qualified. The commissioner of natural resources shall annually provide county <br/>
<a id="pl.46.26"></a><var>46.26</var>assessors verification information on a timely basis.<br/>
<a id="pl.46.27"></a><var>46.27</var>    (c) (e) Agricultural land as used in this section means contiguous acreage of <br/>
<a id="pl.46.28"></a><var>46.28</var>ten acres or more, property used during the preceding year for agricultural purposes. <br/>
<a id="pl.46.29"></a><var>46.29</var>"Agricultural purposes" as used in this section means the raising or, cultivation, drying, <br/>
<a id="pl.46.30"></a><var>46.30</var>or storage of agricultural products for sale, or the storage of machinery or equipment <br/>
<a id="pl.46.31"></a><var>46.31</var>used in support of agricultural production. For a property to be classified as agricultural <br/>
<a id="pl.46.32"></a><var>46.32</var>based only on the drying or storage of agricultural products, the products being dried or <br/>
<a id="pl.46.33"></a><var>46.33</var>stored must have been produced by the same farm entity as the entity operating the drying <br/>
<a id="pl.46.34"></a><var>46.34</var>or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest in <br/>
<a id="pl.46.35"></a><var>46.35</var>Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal Conservation <br/>
<a id="pl.46.36"></a><var>46.36</var>Reserve Program as contained in Public Law 99-198 if the property was classified as <br/>
<a id="pl.47.1"></a><var>47.1</var>agricultural (i) under this subdivision for the assessment year 2002 or (ii) in the year prior <br/>
<a id="pl.47.2"></a><var>47.2</var>to its enrollment. Contiguous acreage on the same parcel, or contiguous acreage on an <br/>
<a id="pl.47.3"></a><var>47.3</var>immediately adjacent parcel under the same ownership, may also qualify as agricultural <br/>
<a id="pl.47.4"></a><var>47.4</var>land, but only if it is pasture, timber, waste, unusable wild land, or land included in state <br/>
<a id="pl.47.5"></a><var>47.5</var>or federal farm programs. Agricultural classification for property shall be determined <br/>
<a id="pl.47.6"></a><var>47.6</var>excluding the house, garage, and immediately surrounding one acre of land, and shall not <br/>
<a id="pl.47.7"></a><var>47.7</var>be based upon the market value of any residential structures on the parcel or contiguous <br/>
<a id="pl.47.8"></a><var>47.8</var>parcels under the same ownership. <br/>
<a id="pl.47.9"></a><var>47.9</var>    (d) (f) Real estate of less than five acres, excluding the house, garage, and <br/>
<a id="pl.47.10"></a><var>47.10</var>immediately surrounding one acre of land, of less than ten acres which is exclusively and <br/>
<a id="pl.47.11"></a><var>47.11</var>intensively used for raising or cultivating agricultural products, shall be considered as <br/>
<a id="pl.47.12"></a><var>47.12</var>agricultural land qualifies as class 2a if:<br/>
<a id="pl.47.13"></a><var>47.13</var>    (i) the entire parcel is tilled or pastured to produce an agricultural product for sale in <br/>
<a id="pl.47.14"></a><var>47.14</var>three of the last five years;<br/>
<a id="pl.47.15"></a><var>47.15</var>    (ii) the acres are used primarily for drying or storage of grain or storage of machinery <br/>
<a id="pl.47.16"></a><var>47.16</var>or equipment used to support agricultural activities on other parcels of property operated <br/>
<a id="pl.47.17"></a><var>47.17</var>by the same farming entity;<br/>
<a id="pl.47.18"></a><var>47.18</var>    (iii) the land mass contains a nursery, provided only those acres used to produce <br/>
<a id="pl.47.19"></a><var>47.19</var>nursery stock are considered agricultural land;<br/>
<a id="pl.47.20"></a><var>47.20</var>    (iv) the parcel is used exclusively as a livestock or poultry confinement process; or<br/>
<a id="pl.47.21"></a><var>47.21</var>    (v) the parcel is used primarily for market farming; for purposes of this paragraph, <br/>
<a id="pl.47.22"></a><var>47.22</var>"market farming" means the cultivation of one or more fruits or vegetables or production <br/>
<a id="pl.47.23"></a><var>47.23</var>of animal or other agricultural products for sale to local markets by the farmer or an <br/>
<a id="pl.47.24"></a><var>47.24</var>organization with which the farmer is affiliated. <br/>
<a id="pl.47.25"></a><var>47.25</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.47.26"></a><var>47.26</var>use of that property is the leasing to, or use by another person for agricultural purposes. <br/>
<a id="pl.47.27"></a><var>47.27</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.47.28"></a><var>47.28</var>section 
<statute_ref>273.111</statute_ref>. <br/>
<a id="pl.47.29"></a><var>47.29</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.47.30"></a><var>47.30</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.47.31"></a><var>47.31</var>define minimum or maximum farm acreage. <br/>
<a id="pl.47.32"></a><var>47.32</var>    (e) (i) The term "agricultural products" as used in this subdivision includes <br/>
<a id="pl.47.33"></a><var>47.33</var>production for sale of: <br/>
<a id="pl.47.34"></a><var>47.34</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.47.35"></a><var>47.35</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.47.36"></a><var>47.36</var>bees, and apiary products by the owner; <br/>
<a id="pl.48.1"></a><var>48.1</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.48.2"></a><var>48.2</var>for agricultural use; <br/>
<a id="pl.48.3"></a><var>48.3</var>    (3) the commercial boarding of horses if the boarding is done in conjunction with <br/>
<a id="pl.48.4"></a><var>48.4</var>raising or cultivating agricultural products as defined in clause (1); <br/>
<a id="pl.48.5"></a><var>48.5</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.48.6"></a><var>48.6</var>equestrian activities, excluding racing; <br/>
<a id="pl.48.7"></a><var>48.7</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.48.8"></a><var>48.8</var>under section 
         <statute_ref>97A.115</statute_ref>; <br/>
<a id="pl.48.9"></a><var>48.9</var>    (6) insects primarily bred to be used as food for animals; <br/>
<a id="pl.48.10"></a><var>48.10</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.48.11"></a><var>48.11</var>sold for timber, lumber, wood, or wood products; and <br/>
<a id="pl.48.12"></a><var>48.12</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.48.13"></a><var>48.13</var>Department of Agriculture under chapter 28A as a food processor. <br/>
<a id="pl.48.14"></a><var>48.14</var>    (f) (j) If a parcel used for agricultural purposes is also used for commercial or <br/>
<a id="pl.48.15"></a><var>48.15</var>industrial purposes, including but not limited to: <br/>
<a id="pl.48.16"></a><var>48.16</var>    (1) wholesale and retail sales; <br/>
<a id="pl.48.17"></a><var>48.17</var>    (2) processing of raw agricultural products or other goods; <br/>
<a id="pl.48.18"></a><var>48.18</var>    (3) warehousing or storage of processed goods; and <br/>
<a id="pl.48.19"></a><var>48.19</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.48.20"></a><var>48.20</var>and (3), <br/>
<a id="pl.48.21"></a><var>48.21</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.48.22"></a><var>48.22</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.48.23"></a><var>48.23</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.48.24"></a><var>48.24</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.48.25"></a><var>48.25</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.48.26"></a><var>48.26</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.48.27"></a><var>48.27</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.48.28"></a><var>48.28</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.48.29"></a><var>48.29</var>horticultural or nursery products does not qualify as an agricultural purpose. <br/>
<a id="pl.48.30"></a><var>48.30</var>    The assessor shall determine and list separately on the records the market value of <br/>
<a id="pl.48.31"></a><var>48.31</var>the homestead dwelling and the one acre of land on which that dwelling is located. If any <br/>
<a id="pl.48.32"></a><var>48.32</var>farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.48.33"></a><var>48.33</var>value shall not be included in this separate determination. <br/>
<a id="pl.48.34"></a><var>48.34</var>    (g) (k) Class 2d airport landing area consists of a landing area or public access <br/>
<a id="pl.48.35"></a><var>48.35</var>area of a privately owned public use airport. To qualify for classification under this <br/>
<a id="pl.48.36"></a><var>48.36</var>paragraph (b), clause (4), a privately owned public use airport must be licensed as a public <br/>
<a id="pl.49.1"></a><var>49.1</var>airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph (b), clause (4), "landing <br/>
<a id="pl.49.2"></a><var>49.2</var>area" means that part of a privately owned public use airport properly cleared, regularly <br/>
<a id="pl.49.3"></a><var>49.3</var>maintained, and made available to the public for use by aircraft and includes runways, <br/>
<a id="pl.49.4"></a><var>49.4</var>taxiways, aprons, and sites upon which are situated landing or navigational aids. A <br/>
<a id="pl.49.5"></a><var>49.5</var>landing area also includes land underlying both the primary surface and the approach <br/>
<a id="pl.49.6"></a><var>49.6</var>surfaces that comply with all of the following: <br/>
<a id="pl.49.7"></a><var>49.7</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.49.8"></a><var>49.8</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.49.9"></a><var>49.9</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; <br/>
<a id="pl.49.10"></a><var>49.10</var>    (ii) the land is part of the airport property; and <br/>
<a id="pl.49.11"></a><var>49.11</var>    (iii) the land is not used for commercial or residential purposes. <br/>
<a id="pl.49.12"></a><var>49.12</var>The land contained in a landing area under this paragraph (b), clause (4), must be described <br/>
<a id="pl.49.13"></a><var>49.13</var>and certified by the commissioner of transportation. The certification is effective until it <br/>
<a id="pl.49.14"></a><var>49.14</var>is modified, or until the airport or landing area no longer meets the requirements of this <br/>
<a id="pl.49.15"></a><var>49.15</var>paragraph (b), clause (4). For purposes of this paragraph (b), clause (4), "public access <br/>
<a id="pl.49.16"></a><var>49.16</var>area" means property used as an aircraft parking ramp, apron, or storage hangar, or an <br/>
<a id="pl.49.17"></a><var>49.17</var>arrival and departure building in connection with the airport. <br/>
<a id="pl.49.18"></a><var>49.18</var><b>EFFECTIVE DATE.</b>The portion of this section reducing the agricultural class rate, <br/>
<a id="pl.49.19"></a><var>49.19</var>and expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural <br/>
<a id="pl.49.20"></a><var>49.20</var>products" in paragraph (h), is effective for taxes payable in 2009 and thereafter. The <br/>
<a id="pl.49.21"></a><var>49.21</var>remainder of the section is effective for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.49.22"></a><var>49.22</var>    Sec. 22. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:<br/>
<a id="pl.49.23"></a><var>49.23</var>    Subd. 24. <b>Class 3.</b> (a) Commercial and industrial property and utility real and <br/>
<a id="pl.49.24"></a><var>49.24</var>personal property is class 3a.<br/>
<a id="pl.49.25"></a><var>49.25</var>    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility <br/>
<a id="pl.49.26"></a><var>49.26</var>real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent <br/>
<a id="pl.49.27"></a><var>49.27</var>of the remaining market value. In the case of contiguous parcels of property owned by the <br/>
<a id="pl.49.28"></a><var>49.28</var>same person or entity, only the value equal to the first-tier value of the contiguous parcels <br/>
<a id="pl.49.29"></a><var>49.29</var>qualifies for the reduced class rate, except that contiguous parcels owned by the same <br/>
<a id="pl.49.30"></a><var>49.30</var>person or entity shall be eligible for the first-tier value class rate on each separate business <br/>
<a id="pl.49.31"></a><var>49.31</var>operated by the owner of the property, provided the business is housed in a separate <br/>
<a id="pl.49.32"></a><var>49.32</var>structure. For the purposes of this subdivision, the first tier means the first $150,000 of <br/>
<a id="pl.49.33"></a><var>49.33</var>market value. Real property owned in fee by a utility for transmission line right-of-way <br/>
<a id="pl.49.34"></a><var>49.34</var>shall be classified at the class rate for the higher tier.<br/>
<a id="pl.50.1"></a><var>50.1</var>    For purposes of this subdivision, parcels are considered to be contiguous even if <br/>
<a id="pl.50.2"></a><var>50.2</var>they are separated from each other by a road, street, waterway, or other similar intervening <br/>
<a id="pl.50.3"></a><var>50.3</var>type of property. Connections between parcels that consist of power lines or pipelines do <br/>
<a id="pl.50.4"></a><var>50.4</var>not cause the parcels to be contiguous. Property owners who have contiguous parcels of <br/>
<a id="pl.50.5"></a><var>50.5</var>property that constitute separate businesses that may qualify for the first-tier class rate shall <br/>
<a id="pl.50.6"></a><var>50.6</var>notify the assessor by July 1, for treatment beginning in the following taxes payable year.<br/>
<a id="pl.50.7"></a><var>50.7</var>    (2) All Personal property that is: (i) part of an electric generation, transmission, or <br/>
<a id="pl.50.8"></a><var>50.8</var>distribution system; or (ii), including tools, implements, and machinery, has a class rate <br/>
<a id="pl.50.9"></a><var>50.9</var>of 2.4 percent for taxes payable in 2009, and 2.8 percent for taxes payable in 2010, and <br/>
<a id="pl.50.10"></a><var>50.10</var>thereafter. <br/>
<a id="pl.50.11"></a><var>50.11</var>    (3) Personal property that is either: (i) part of a pipeline system transporting <br/>
<a id="pl.50.12"></a><var>50.12</var>or distributing water, gas, crude oil, or petroleum products; and (iii) not described in <br/>
<a id="pl.50.13"></a><var>50.13</var>clause (3), and all, including tools, implements, and machinery, or (ii) part of an electric <br/>
<a id="pl.50.14"></a><var>50.14</var>transmission or distribution system, including tools, implements, and machinery, has a <br/>
<a id="pl.50.15"></a><var>50.15</var>class rate of 2.0 percent for taxes payable in 2009 and thereafter. <br/>
<a id="pl.50.16"></a><var>50.16</var>    (4) Railroad operating property has a class rate as provided under clause (1) for <br/>
<a id="pl.50.17"></a><var>50.17</var>the first tier of market value and the remaining market value. In the case of multiple <br/>
<a id="pl.50.18"></a><var>50.18</var>parcels in one county that are owned by one person or entity, only one first tier amount <br/>
<a id="pl.50.19"></a><var>50.19</var>is eligible for the reduced rate.<br/>
<a id="pl.50.20"></a><var>50.20</var>    (3) The entire market value of personal property that is: (i) tools, implements, and <br/>
<a id="pl.50.21"></a><var>50.21</var>machinery of an electric generation, transmission, or distribution system; (ii) tools, <br/>
<a id="pl.50.22"></a><var>50.22</var>implements, and machinery of a pipeline system transporting or distributing water, gas, <br/>
<a id="pl.50.23"></a><var>50.23</var>crude oil, or petroleum products; or (iii) the (5) Personal property consisting of  mains <br/>
<a id="pl.50.24"></a><var>50.24</var>and pipes used in the distribution of steam or hot or chilled water for heating or cooling <br/>
<a id="pl.50.25"></a><var>50.25</var>buildings, has a class rate as provided under clause (1) for the remaining market value <br/>
<a id="pl.50.26"></a><var>50.26</var>in excess of the first tier.<br/>
<a id="pl.50.27"></a><var>50.27</var>    (b) Employment property defined in section 
         <statute_ref>469.166</statute_ref>, during the period provided <br/>
<a id="pl.50.28"></a><var>50.28</var>in section 
         <statute_ref>469.170</statute_ref>, shall constitute class 3b. The class rates for class 3b property are <br/>
<a id="pl.50.29"></a><var>50.29</var>determined under paragraph (a). <br/>
<a id="pl.50.30"></a><var>50.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.50.31"></a><var>50.31</var>thereafter.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.50.32"></a><var>50.32</var>    Sec. 23. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws <br/>
<a id="pl.50.33"></a><var>50.33</var>2008, chapter 154, article 2, section 13, is amended to read:<br/>
<a id="pl.50.34"></a><var>50.34</var>    Subd. 25.  <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.50.35"></a><var>50.35</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.51.1"></a><var>51.1</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.51.2"></a><var>51.2</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.51.3"></a><var>51.3</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.51.4"></a><var>51.4</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.51.5"></a><var>51.5</var>market value of class 4a property has a class rate of 1.25 percent. <br/>
<a id="pl.51.6"></a><var>51.6</var>    (b) Class 4b includes: <br/>
<a id="pl.51.7"></a><var>51.7</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.51.8"></a><var>51.8</var>4bb, other than seasonal residential recreational property; <br/>
<a id="pl.51.9"></a><var>51.9</var>    (2) manufactured homes not classified under any other provision; <br/>
<a id="pl.51.10"></a><var>51.10</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.51.11"></a><var>51.11</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and <br/>
<a id="pl.51.12"></a><var>51.12</var>    (4) is unimproved property that is classified residential as determined under <br/>
<a id="pl.51.13"></a><var>51.13</var>subdivision 33. <br/>
<a id="pl.51.14"></a><var>51.14</var>    The market value of class 4b property has a class rate of 1.25 percent. <br/>
<a id="pl.51.15"></a><var>51.15</var>    (c) Class 4bb includes: <br/>
<a id="pl.51.16"></a><var>51.16</var>    (1) nonhomestead residential real estate containing one unit up to three units, other <br/>
<a id="pl.51.17"></a><var>51.17</var>than seasonal residential recreational property; and <br/>
<a id="pl.51.18"></a><var>51.18</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.51.19"></a><var>51.19</var>nonhomestead farm classified under subdivision 23, paragraph (b), containing up to three <br/>
<a id="pl.51.20"></a><var>51.20</var>units; and<br/>
<a id="pl.51.21"></a><var>51.21</var>    (3) manufactured homes not classified under any other provision. <br/>
<a id="pl.51.22"></a><var>51.22</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22. <br/>
<a id="pl.51.23"></a><var>51.23</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.51.24"></a><var>51.24</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.51.25"></a><var>51.25</var>owner does not qualify for class 4bb. <br/>
<a id="pl.51.26"></a><var>51.26</var>    (d) Class 4c property includes: <br/>
<a id="pl.51.27"></a><var>51.27</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.51.28"></a><var>51.28</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.51.29"></a><var>51.29</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.51.30"></a><var>51.30</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.51.31"></a><var>51.31</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.51.32"></a><var>51.32</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.51.33"></a><var>51.33</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.51.34"></a><var>51.34</var>for residential occupancy. Class 4c property must contain three or more rental units. A <br/>
<a id="pl.51.35"></a><var>51.35</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.51.36"></a><var>51.36</var>camping site equipped with water and electrical hookups for recreational vehicles. Class <br/>
<a id="pl.52.1"></a><var>52.1</var>4c property must provide recreational activities such as renting ice fishing houses, boats <br/>
<a id="pl.52.2"></a><var>52.2</var>and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.52.3"></a><var>52.3</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping <br/>
<a id="pl.52.4"></a><var>52.4</var>pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c <br/>
<a id="pl.52.5"></a><var>52.5</var>regardless of the term of the rental agreement, as long as the use of the camping pad <br/>
<a id="pl.52.6"></a><var>52.6</var>does not exceed 250 days. In order for a property to be classified as class 4c, seasonal <br/>
<a id="pl.52.7"></a><var>52.7</var>residential recreational for commercial purposes, at least 40 percent of the annual gross <br/>
<a id="pl.52.8"></a><var>52.8</var>lodging receipts related to the property must be from business conducted during 90 <br/>
<a id="pl.52.9"></a><var>52.9</var>consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests <br/>
<a id="pl.52.10"></a><var>52.10</var>during the year must be for periods of at least two consecutive nights; or (ii) at least 20 <br/>
<a id="pl.52.11"></a><var>52.11</var>percent of the annual gross receipts must be from charges for rental of fish houses, boats <br/>
<a id="pl.52.12"></a><var>52.12</var>and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina <br/>
<a id="pl.52.13"></a><var>52.13</var>services, launch services, and guide services, or the sale of bait and fishing tackle. For <br/>
<a id="pl.52.14"></a><var>52.14</var>purposes of this determination, a paid booking of five or more nights shall be counted as <br/>
<a id="pl.52.15"></a><var>52.15</var>two bookings. Class 4c also includes commercial use real property used exclusively <br/>
<a id="pl.52.16"></a><var>52.16</var>for recreational purposes in conjunction with class 4c property devoted to temporary <br/>
<a id="pl.52.17"></a><var>52.17</var>and seasonal residential occupancy for recreational purposes, up to a total of two acres, <br/>
<a id="pl.52.18"></a><var>52.18</var>provided the property is not devoted to commercial recreational use for more than 250 <br/>
<a id="pl.52.19"></a><var>52.19</var>days in the year preceding the year of assessment and is located within two miles of the <br/>
<a id="pl.52.20"></a><var>52.20</var>class 4c property with which it is used. Owners of real and personal property devoted <br/>
<a id="pl.52.21"></a><var>52.21</var>to temporary and seasonal residential occupancy for recreation purposes and all or a <br/>
<a id="pl.52.22"></a><var>52.22</var>portion of which was devoted to commercial purposes for not more than 250 days in the <br/>
<a id="pl.52.23"></a><var>52.23</var>year preceding the year of assessment desiring classification as class 4c, must submit a <br/>
<a id="pl.52.24"></a><var>52.24</var>declaration to the assessor designating the cabins or units occupied for 250 days or less in <br/>
<a id="pl.52.25"></a><var>52.25</var>the year preceding the year of assessment by January 15 of the assessment year. Those <br/>
<a id="pl.52.26"></a><var>52.26</var>cabins or units and a proportionate share of the land on which they are located must be <br/>
<a id="pl.52.27"></a><var>52.27</var>designated class 4c as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.52.28"></a><var>52.28</var>a proportionate share of the land on which they are located will be designated as class <br/>
<a id="pl.52.29"></a><var>52.29</var>3a. The owner of property desiring designation as class 4c property must provide guest <br/>
<a id="pl.52.30"></a><var>52.30</var>registers or other records demonstrating that the units for which class 4c designation is <br/>
<a id="pl.52.31"></a><var>52.31</var>sought were not occupied for more than 250 days in the year preceding the assessment if <br/>
<a id="pl.52.32"></a><var>52.32</var>so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, <br/>
<a id="pl.52.33"></a><var>52.33</var>(4) conference center or meeting room, and (5) other nonresidential facility operated on a <br/>
<a id="pl.52.34"></a><var>52.34</var>commercial basis not directly related to temporary and seasonal residential occupancy for <br/>
<a id="pl.52.35"></a><var>52.35</var>recreation purposes does not qualify for class 4c; <br/>
<a id="pl.52.36"></a><var>52.36</var>    (2) qualified property used as a golf course if: <br/>
<a id="pl.53.1"></a><var>53.1</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.53.2"></a><var>53.2</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.53.3"></a><var>53.3</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.53.4"></a><var>53.4</var>municipal courses; and <br/>
<a id="pl.53.5"></a><var>53.5</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d). <br/>
<a id="pl.53.6"></a><var>53.6</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.53.7"></a><var>53.7</var>with the golf course is classified as class 3a property; <br/>
<a id="pl.53.8"></a><var>53.8</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.53.9"></a><var>53.9</var>nonprofit community service oriented organization and that is not used for residential <br/>
<a id="pl.53.10"></a><var>53.10</var>purposes on either a temporary or permanent basis, qualifies for class 4c provided that <br/>
<a id="pl.53.11"></a><var>53.11</var>it meets either of the following: <br/>
<a id="pl.53.12"></a><var>53.12</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.53.13"></a><var>53.13</var>in the calendar year preceding the year of assessment; or <br/>
<a id="pl.53.14"></a><var>53.14</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.53.15"></a><var>53.15</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.53.16"></a><var>53.16</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.53.17"></a><var>53.17</var>size of the facility. <br/>
<a id="pl.53.18"></a><var>53.18</var>    For purposes of this clause, <br/>
<a id="pl.53.19"></a><var>53.19</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.53.20"></a><var>53.20</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.53.21"></a><var>53.21</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; <br/>
<a id="pl.53.22"></a><var>53.22</var>    (B) "property taxes" excludes the state general tax; <br/>
<a id="pl.53.23"></a><var>53.23</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.53.24"></a><var>53.24</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.53.25"></a><var>53.25</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.53.26"></a><var>53.26</var>federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue <br/>
<a id="pl.53.27"></a><var>53.27</var>Code of 1986, as amended through December 31, 1990; and <br/>
<a id="pl.53.28"></a><var>53.28</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.53.29"></a><var>53.29</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.53.30"></a><var>53.30</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.53.31"></a><var>53.31</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.53.32"></a><var>53.32</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.53.33"></a><var>53.33</var>for-profit enterprise on the premises. <br/>
<a id="pl.53.34"></a><var>53.34</var>Any portion of the property qualifying under item (i) which is used for revenue-producing <br/>
<a id="pl.53.35"></a><var>53.35</var>activities for more than six days in the calendar year preceding the year of assessment <br/>
<a id="pl.53.36"></a><var>53.36</var>shall be assessed as class 3a. The use of the property for social events open exclusively <br/>
<a id="pl.54.1"></a><var>54.1</var>to members and their guests for periods of less than 24 hours, when an admission is <br/>
<a id="pl.54.2"></a><var>54.2</var>not charged nor any revenues are received by the organization shall not be considered a <br/>
<a id="pl.54.3"></a><var>54.3</var>revenue-producing activity. <br/>
<a id="pl.54.4"></a><var>54.4</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.54.5"></a><var>54.5</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.54.6"></a><var>54.6</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.54.7"></a><var>54.7</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.54.8"></a><var>54.8</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.54.9"></a><var>54.9</var>application form and instructions; <br/>
<a id="pl.54.10"></a><var>54.10</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.54.11"></a><var>54.11</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.54.12"></a><var>54.12</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.54.13"></a><var>54.13</var>miles of the border of a college campus; <br/>
<a id="pl.54.14"></a><var>54.14</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>; <br/>
<a id="pl.54.15"></a><var>54.15</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.54.16"></a><var>54.16</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.54.17"></a><var>54.17</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>; <br/>
<a id="pl.54.18"></a><var>54.18</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.54.19"></a><var>54.19</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.54.20"></a><var>54.20</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.54.21"></a><var>54.21</var>Airports Commission, or group thereof; and <br/>
<a id="pl.54.22"></a><var>54.22</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.54.23"></a><var>54.23</var>leased premise, prohibits commercial activity performed at the hangar. <br/>
<a id="pl.54.24"></a><var>54.24</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.54.25"></a><var>54.25</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.54.26"></a><var>54.26</var>within 60 days of the sale; <br/>
<a id="pl.54.27"></a><var>54.27</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.54.28"></a><var>54.28</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.54.29"></a><var>54.29</var>    (i) the land abuts a public airport; and <br/>
<a id="pl.54.30"></a><var>54.30</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.54.31"></a><var>54.31</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.54.32"></a><var>54.32</var>performed at the hangar; and <br/>
<a id="pl.54.33"></a><var>54.33</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.54.34"></a><var>54.34</var>purposes, and that is also a place of lodging, if all of the following criteria are met: <br/>
<a id="pl.54.35"></a><var>54.35</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.54.36"></a><var>54.36</var>of 14 or fewer days; <br/>
<a id="pl.55.1"></a><var>55.1</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.55.2"></a><var>55.2</var>in the basic room rate; <br/>
<a id="pl.55.3"></a><var>55.3</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.55.4"></a><var>55.4</var>than seven days in the calendar year preceding the year of the assessment; and <br/>
<a id="pl.55.5"></a><var>55.5</var>    (iv) the owner is the operator of the property. <br/>
<a id="pl.55.6"></a><var>55.6</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.55.7"></a><var>55.7</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.55.8"></a><var>55.8</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.55.9"></a><var>55.9</var>be classified as class 1a property under subdivision 22. <br/>
<a id="pl.55.10"></a><var>55.10</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.55.11"></a><var>55.11</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.55.12"></a><var>55.12</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.55.13"></a><var>55.13</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.55.14"></a><var>55.14</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.55.15"></a><var>55.15</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.55.16"></a><var>55.16</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.55.17"></a><var>55.17</var>property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that <br/>
<a id="pl.55.18"></a><var>55.18</var>portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.55.19"></a><var>55.19</var>has a class rate of 1.25 percent. <br/>
<a id="pl.55.20"></a><var>55.20</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.55.21"></a><var>55.21</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.55.22"></a><var>55.22</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.55.23"></a><var>55.23</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.55.24"></a><var>55.24</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.55.25"></a><var>55.25</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.55.26"></a><var>55.26</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.55.27"></a><var>55.27</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.55.28"></a><var>55.28</var>be based on the normal approach to value using normal unrestricted rents. <br/>
<a id="pl.55.29"></a><var>55.29</var>    Class 4d property has a class rate of 0.75 percent. <br/>
<a id="pl.55.30"></a><var>55.30</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2008 and <br/>
<a id="pl.55.31"></a><var>55.31</var>thereafter, and for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.55.32"></a><var>55.32</var>    Sec. 24. Minnesota Statutes 2007 Supplement, section 273.1393, is amended to read:<br/>
<a id="pl.55.33"></a><var>55.33</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.56.1"></a><var>56.1</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.56.2"></a><var>56.2</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.56.3"></a><var>56.3</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; <br/>
<a id="pl.56.4"></a><var>56.4</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>; <br/>
<a id="pl.56.5"></a><var>56.5</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>; <br/>
<a id="pl.56.6"></a><var>56.6</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>; <br/>
<a id="pl.56.7"></a><var>56.7</var>    (5) disparity reduction credit;<br/>
<a id="pl.56.8"></a><var>56.8</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>; <br/>
<a id="pl.56.9"></a><var>56.9</var>    (7) homestead and agricultural credits as provided in section 
         <statute_ref>273.1384</statute_ref>; <br/>
<a id="pl.56.10"></a><var>56.10</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>; and <br/>
<a id="pl.56.11"></a><var>56.11</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>; and<br/>
<a id="pl.56.12"></a><var>56.12</var>    (10) bovine tuberculosis management credit as provided in section 273.113. <br/>
<a id="pl.56.13"></a><var>56.13</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.56.14"></a><var>56.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.56.15"></a><var>56.15</var>thereafter.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.56.16"></a><var>56.16</var>    Sec. 25. Minnesota Statutes 2006, section 274.14, is amended to read:<br/>
<a id="pl.56.17"></a><var>56.17</var><b>274.14 LENGTH OF SESSION; RECORD.</b><br/>
<a id="pl.56.18"></a><var>56.18</var>    The board may meet on any ten consecutive meeting days in June, after the second <br/>
<a id="pl.56.19"></a><var>56.19</var>Friday in June. The actual meeting dates must be contained on the valuation notices <br/>
<a id="pl.56.20"></a><var>56.20</var>mailed to each property owner in the county as provided in section 
         <statute_ref>273.121</statute_ref>. For this <br/>
<a id="pl.56.21"></a><var>56.21</var>purpose, "meeting days" is defined as any day of the week excluding Saturday and Sunday. <br/>
<a id="pl.56.22"></a><var>56.22</var>At the board's discretion, "meeting days" may include Saturday. No action taken by the <br/>
<a id="pl.56.23"></a><var>56.23</var>county board of review after June 30 is valid, except for corrections permitted in sections <br/>
<statute_ref><a id="pl.56.24"></a><var>56.24</var>273.01
         </statute_ref> and 
         <statute_ref>274.01</statute_ref>. The county auditor shall keep an accurate record of the proceedings <br/>
<a id="pl.56.25"></a><var>56.25</var>and orders of the board. The record must be published like other proceedings of county <br/>
<a id="pl.56.26"></a><var>56.26</var>commissioners. A copy of the published record must be sent to the commissioner of <br/>
<a id="pl.56.27"></a><var>56.27</var>revenue, with the abstract of assessment required by section 
         <statute_ref>274.16</statute_ref>.<br/>
<a id="pl.56.28"></a><var>56.28</var>    For counties that conduct either regular board of review meetings or open book <br/>
<a id="pl.56.29"></a><var>56.29</var>meetings, at least one of the meeting days must include a meeting that does not end <br/>
<a id="pl.56.30"></a><var>56.30</var>before 7:00 p.m. For counties that require taxpayer appointments for the board of review, <br/>
<a id="pl.56.31"></a><var>56.31</var>appointments must include some available times that extend until at least 7:00 p.m. The <br/>
<a id="pl.56.32"></a><var>56.32</var>county may have a Saturday meeting in lieu of, or in addition to, the extended meeting <br/>
<a id="pl.56.33"></a><var>56.33</var>times under this paragraph.<br/>
<br/>
<a id="bill.3.26.0"></a><a id="pl.57.1"></a><var>57.1</var>    Sec. 26. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 1, is <br/>
<a id="pl.57.2"></a><var>57.2</var>amended to read:<br/>
<a id="pl.57.3"></a><var>57.3</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.57.4"></a><var>57.4</var>contrary, on or before September 15 1, each taxing authority, other than a school district, <br/>
<a id="pl.57.5"></a><var>57.5</var>shall adopt a proposed budget and shall certify to the county auditor the proposed or, in <br/>
<a id="pl.57.6"></a><var>57.6</var>the case of a town, the final property tax levy for taxes payable in the following year.<br/>
<a id="pl.57.7"></a><var>57.7</var>    (b) On or before September 30 15, each school district that has not mutually agreed <br/>
<a id="pl.57.8"></a><var>57.8</var>with its home county to extend this date shall certify to the county auditor the proposed <br/>
<a id="pl.57.9"></a><var>57.9</var>property tax levy for taxes payable in the following year. Each school district that has <br/>
<a id="pl.57.10"></a><var>57.10</var>agreed with its home county to delay the certification of its proposed property tax levy <br/>
<a id="pl.57.11"></a><var>57.11</var>must certify its proposed property tax levy for the following year no later than October <br/>
<a id="pl.57.12"></a><var>57.12</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.57.13"></a><var>57.13</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.57.14"></a><var>57.14</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.57.15"></a><var>57.15</var>and tax capacity levies; or<br/>
<a id="pl.57.16"></a><var>57.16</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.57.17"></a><var>57.17</var>according to section  
         <statute_ref>126C.48, subdivision 1</statute_ref>. <br/>
<a id="pl.57.18"></a><var>57.18</var>    (c) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.57.19"></a><var>57.19</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br/>
<a id="pl.57.20"></a><var>57.20</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br/>
<a id="pl.57.21"></a><var>57.21</var>September 15 1, the city shall be deemed to have certified its levies for those taxing <br/>
<a id="pl.57.22"></a><var>57.22</var>jurisdictions.<br/>
<a id="pl.57.23"></a><var>57.23</var>    (d) For purposes of this section, "taxing authority" includes all home rule and <br/>
<a id="pl.57.24"></a><var>57.24</var>statutory cities, towns, counties, school districts, and special taxing districts as defined <br/>
<a id="pl.57.25"></a><var>57.25</var>in section  
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter 124 or <br/>
<a id="pl.57.26"></a><var>57.26</var>136D, joint powers boards established under sections  
         <statute_ref>123A.44</statute_ref> to  
         <statute_ref>123A.446</statute_ref>, and Common <br/>
<a id="pl.57.27"></a><var>57.27</var>School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing <br/>
<a id="pl.57.28"></a><var>57.28</var>districts for purposes of this section. <br/>
<a id="pl.57.29"></a><var>57.29</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.57.30"></a><var>57.30</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.27.0"></a><a id="pl.57.31"></a><var>57.31</var>    Sec. 27. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 1a, <br/>
<a id="pl.57.32"></a><var>57.32</var>is amended to read:<br/>
<a id="pl.57.33"></a><var>57.33</var>    Subd. 1a. <b>Overlapping jurisdictions.</b> In the case of a taxing authority lying in two <br/>
<a id="pl.57.34"></a><var>57.34</var>or more counties, the home county auditor shall certify the proposed levy and the proposed <br/>
<a id="pl.57.35"></a><var>57.35</var>local tax rate to the other county auditor by October September 5, unless the home county <br/>
<a id="pl.58.1"></a><var>58.1</var>has agreed to delay the certification of its proposed property tax levy, in which case the <br/>
<a id="pl.58.2"></a><var>58.2</var>home county auditor shall certify the proposed levy and the proposed local tax rate to the <br/>
<a id="pl.58.3"></a><var>58.3</var>other county auditor by October 10. The home county auditor must estimate the levy or <br/>
<a id="pl.58.4"></a><var>58.4</var>rate in preparing the notices required in subdivision 3, if the other county has not certified <br/>
<a id="pl.58.5"></a><var>58.5</var>the appropriate information. If requested by the home county auditor, the other county <br/>
<a id="pl.58.6"></a><var>58.6</var>auditor must furnish an estimate to the home county auditor.<br/>
<a id="pl.58.7"></a><var>58.7</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.58.8"></a><var>58.8</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.28.0"></a><a id="pl.58.9"></a><var>58.9</var>    Sec. 28. Minnesota Statutes 2006, section 275.065, subdivision 1c, is amended to read:<br/>
<a id="pl.58.10"></a><var>58.10</var>    Subd. 1c. <b>Levy; shared, merged, consolidated services.</b> If two or more taxing <br/>
<a id="pl.58.11"></a><var>58.11</var>authorities are in the process of negotiating an agreement for sharing, merging, or <br/>
<a id="pl.58.12"></a><var>58.12</var>consolidating services between those taxing authorities at the time the proposed levy is to <br/>
<a id="pl.58.13"></a><var>58.13</var>be certified under subdivision 1, each taxing authority involved in the negotiation shall <br/>
<a id="pl.58.14"></a><var>58.14</var>certify its total proposed levy as provided in that subdivision, including a notification to the <br/>
<a id="pl.58.15"></a><var>58.15</var>county auditor of the specific service involved in the agreement which is not yet finalized. <br/>
<a id="pl.58.16"></a><var>58.16</var>The affected taxing authorities may amend their proposed levies under subdivision 1 until <br/>
<a id="pl.58.17"></a><var>58.17</var>October September 10 for levy amounts relating only to the specific service involved.<br/>
<a id="pl.58.18"></a><var>58.18</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.58.19"></a><var>58.19</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.29.0"></a><a id="pl.58.20"></a><var>58.20</var>    Sec. 29. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision <br/>
<a id="pl.58.21"></a><var>58.21</var>to read:<br/>
<a id="pl.58.22"></a><var>58.22</var>    Subd. 1d. <b>Failure to certify proposed levy.</b>  If a taxing authority fails to certify <br/>
<a id="pl.58.23"></a><var>58.23</var>its proposed levy by the due dates specified under subdivisions 1, 1a, and 1c, the county <br/>
<a id="pl.58.24"></a><var>58.24</var>auditor shall use the authority's previous year's final levy under section 275.07, subdivision <br/>
<a id="pl.58.25"></a><var>58.25</var>1, for purposes of determining its proposed property tax notices and public advertisements <br/>
<a id="pl.58.26"></a><var>58.26</var>under this section. <br/>
<a id="pl.58.27"></a><var>58.27</var><b>EFFECTIVE DATE.</b>This section is effective for notices prepared in 2008, for <br/>
<a id="pl.58.28"></a><var>58.28</var>property taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.30.0"></a><a id="pl.58.29"></a><var>58.29</var>    Sec. 30. Minnesota Statutes 2007 Supplement, section 275.065, subdivision 3, is <br/>
<a id="pl.58.30"></a><var>58.30</var>amended to read:<br/>
<a id="pl.58.31"></a><var>58.31</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.58.32"></a><var>58.32</var>and the county treasurer shall deliver after November 10 October 15 and on or before <br/>
<a id="pl.59.1"></a><var>59.1</var>November October 24 each year, by first class mail to each taxpayer at the address listed <br/>
<a id="pl.59.2"></a><var>59.2</var>on the county's current year's assessment roll, a notice of proposed property taxes.<br/>
<a id="pl.59.3"></a><var>59.3</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.59.4"></a><var>59.4</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.59.5"></a><var>59.5</var>each taxing authority proposes to collect for taxes payable the following year. In the case <br/>
<a id="pl.59.6"></a><var>59.6</var>of a town, or in the case of the state general tax, the final tax amount will be its proposed <br/>
<a id="pl.59.7"></a><var>59.7</var>tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, <br/>
<a id="pl.59.8"></a><var>59.8</var>the notice must clearly state that each taxing authority, including regional library districts <br/>
<a id="pl.59.9"></a><var>59.9</var>established under section 
         <statute_ref>134.201</statute_ref>, and including the metropolitan taxing districts as <br/>
<a id="pl.59.10"></a><var>59.10</var>defined in paragraph (i), but excluding all other special taxing districts and towns, will <br/>
<a id="pl.59.11"></a><var>59.11</var>hold a public meeting to receive public testimony on the proposed budget and proposed or <br/>
<a id="pl.59.12"></a><var>59.12</var>final property tax levy, or, in case of a school district, on the current budget and proposed <br/>
<a id="pl.59.13"></a><var>59.13</var>property tax levy. It must clearly state the time and place of each taxing authority's <br/>
<a id="pl.59.14"></a><var>59.14</var>meeting, a telephone number for the taxing authority that taxpayers may call if they have <br/>
<a id="pl.59.15"></a><var>59.15</var>questions related to the notice, and an address where comments will be received by mail.<br/>
<a id="pl.59.16"></a><var>59.16</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.59.17"></a><var>59.17</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.59.18"></a><var>59.18</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.59.19"></a><var>59.19</var>current year as each appears in the records of the county assessor on November October <br/>
<a id="pl.59.20"></a><var>59.20</var>1 of the current year; and, in the case of residential property, whether the property is <br/>
<a id="pl.59.21"></a><var>59.21</var>classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the <br/>
<a id="pl.59.22"></a><var>59.22</var>years to which the market values apply and that the values are final values;<br/>
<a id="pl.59.23"></a><var>59.23</var>    (2) the items listed below, shown separately by county, city or town, and state general <br/>
<a id="pl.59.24"></a><var>59.24</var>tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter <br/>
<a id="pl.59.25"></a><var>59.25</var>approved school levy, other local school levy, and the sum of the special taxing districts, <br/>
<a id="pl.59.26"></a><var>59.26</var>and as a total of all taxing authorities:<br/>
<a id="pl.59.27"></a><var>59.27</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.59.28"></a><var>59.28</var>    (ii) the proposed tax amount.<br/>
<a id="pl.59.29"></a><var>59.29</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.59.30"></a><var>59.30</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.59.31"></a><var>59.31</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.59.32"></a><var>59.32</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.59.33"></a><var>59.33</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.59.34"></a><var>59.34</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.59.35"></a><var>59.35</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.59.36"></a><var>59.36</var>note next to the school district's proposed amount that a referendum is pending and that, if <br/>
<a id="pl.60.1"></a><var>60.1</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br/>
<a id="pl.60.2"></a><var>60.2</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br/>
<a id="pl.60.3"></a><var>60.3</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br/>
<a id="pl.60.4"></a><var>60.4</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br/>
<a id="pl.60.5"></a><var>60.5</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br/>
<a id="pl.60.6"></a><var>60.6</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.60.7"></a><var>60.7</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br/>
<a id="pl.60.8"></a><var>60.8</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br/>
<a id="pl.60.9"></a><var>60.9</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br/>
<a id="pl.60.10"></a><var>60.10</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.60.11"></a><var>60.11</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.60.12"></a><var>60.12</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.60.13"></a><var>60.13</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.60.14"></a><var>60.14</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.60.15"></a><var>60.15</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.60.16"></a><var>60.16</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.60.17"></a><var>60.17</var>the following:<br/>
<a id="pl.60.18"></a><var>60.18</var>    (1) special assessments;<br/>
<a id="pl.60.19"></a><var>60.19</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.60.20"></a><var>60.20</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.60.21"></a><var>60.21</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.60.22"></a><var>60.22</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.60.23"></a><var>60.23</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.60.24"></a><var>60.24</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.60.25"></a><var>60.25</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.60.26"></a><var>60.26</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.60.27"></a><var>60.27</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.60.28"></a><var>60.28</var>reductions for contamination.<br/>
<a id="pl.60.29"></a><var>60.29</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.60.30"></a><var>60.30</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.60.31"></a><var>60.31</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.60.32"></a><var>60.32</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.60.33"></a><var>60.33</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.60.34"></a><var>60.34</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.60.35"></a><var>60.35</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.60.36"></a><var>60.36</var>in the following year.<br/>
<a id="pl.61.1"></a><var>61.1</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.61.2"></a><var>61.2</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.61.3"></a><var>61.3</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.61.4"></a><var>61.4</var>renter, or lessee; or<br/>
<a id="pl.61.5"></a><var>61.5</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.61.6"></a><var>61.6</var>    The notice must be mailed or posted by the taxpayer by November October 27 or <br/>
<a id="pl.61.7"></a><var>61.7</var>within three days of receipt of the notice, whichever is later. A taxpayer may notify the <br/>
<a id="pl.61.8"></a><var>61.8</var>county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises <br/>
<a id="pl.61.9"></a><var>61.9</var>to which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.61.10"></a><var>61.10</var>    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special <br/>
<a id="pl.61.11"></a><var>61.11</var>taxing districts" means the following taxing districts in the seven-county metropolitan area <br/>
<a id="pl.61.12"></a><var>61.12</var>that levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.61.13"></a><var>61.13</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.61.14"></a><var>61.14</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.61.15"></a><var>61.15</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.61.16"></a><var>61.16</var>and<br/>
<a id="pl.61.17"></a><var>61.17</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.61.18"></a><var>61.18</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.61.19"></a><var>61.19</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.61.20"></a><var>61.20</var>398A shall be included with the appropriate county's levy and shall be discussed at that <br/>
<a id="pl.61.21"></a><var>61.21</var>county's public hearing.<br/>
<a id="pl.61.22"></a><var>61.22</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.61.23"></a><var>61.23</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.61.24"></a><var>61.24</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.61.25"></a><var>61.25</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.61.26"></a><var>61.26</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.61.27"></a><var>61.27</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.61.28"></a><var>61.28</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.61.29"></a><var>61.29</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.61.30"></a><var>61.30</var>local government purchases;<br/>
<a id="pl.61.31"></a><var>61.31</var>    (2) population growth and decline;<br/>
<a id="pl.61.32"></a><var>61.32</var>    (3) state or federal government action; and<br/>
<a id="pl.61.33"></a><var>61.33</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.61.34"></a><var>61.34</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.61.35"></a><var>61.35</var>include.<br/>
<a id="pl.62.1"></a><var>62.1</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.62.2"></a><var>62.2</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.62.3"></a><var>62.3</var>opportunity for comment.<br/>
<a id="pl.62.4"></a><var>62.4</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.62.5"></a><var>62.5</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.31.0"></a><a id="pl.62.6"></a><var>62.6</var>    Sec. 31. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision <br/>
<a id="pl.62.7"></a><var>62.7</var>to read:<br/>
<a id="pl.62.8"></a><var>62.8</var>    Subd. 3b. <b>Supplemental notice of proposed levy increases.</b> (a) If a city that has a <br/>
<a id="pl.62.9"></a><var>62.9</var>population of more than 2,500 or a county proposes a levy that would cause a levy plus <br/>
<a id="pl.62.10"></a><var>62.10</var>aid increase greater than the threshold increase calculated under paragraph (b), it shall <br/>
<a id="pl.62.11"></a><var>62.11</var>prepare and deliver by first class mail a supplemental proposed property tax notice to each <br/>
<a id="pl.62.12"></a><var>62.12</var>property taxpayer in the taxing jurisdiction, as described in this subdivision.<br/>
<a id="pl.62.13"></a><var>62.13</var>    (b) The threshold increase in the proposed property tax levy plus aid is equal to <br/>
<a id="pl.62.14"></a><var>62.14</var>the levy plus aid amount in the previous year, multiplied by the sum of (i) one percent, <br/>
<a id="pl.62.15"></a><var>62.15</var>(ii) the percentage growth, if any, in the population in the taxing jurisdiction for the <br/>
<a id="pl.62.16"></a><var>62.16</var>most recent available year, (iii) the percentage increase in the total market value in the <br/>
<a id="pl.62.17"></a><var>62.17</var>taxing jurisdiction due to new construction of commercial and industrial property, and <br/>
<a id="pl.62.18"></a><var>62.18</var>(iv) the percentage increase in the implicit price deflator for government consumption <br/>
<a id="pl.62.19"></a><var>62.19</var>expenditures and gross investment for state and local governments as prepared by the <br/>
<a id="pl.62.20"></a><var>62.20</var>United States Department of Commerce for the most recent 12-month period ending <br/>
<a id="pl.62.21"></a><var>62.21</var>March of the levy year.<br/>
<a id="pl.62.22"></a><var>62.22</var>    (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy <br/>
<a id="pl.62.23"></a><var>62.23</var>plus aid amount for the previous year, (2) its threshold levy plus aid increase indicating that <br/>
<a id="pl.62.24"></a><var>62.24</var>this increase is calculated to reflect reasonable growth adjusting for population increases, <br/>
<a id="pl.62.25"></a><var>62.25</var>increased demand from new business, and inflation, (3) the aid amount corresponding to <br/>
<a id="pl.62.26"></a><var>62.26</var>the proposed levy year, (4) the proposed property tax increase, and (5) the amount the <br/>
<a id="pl.62.27"></a><var>62.27</var>proposed increase in levy plus aid exceeds the threshold increase. The notice must contain <br/>
<a id="pl.62.28"></a><var>62.28</var>a description of why the jurisdiction needs to raise property taxes above the threshold <br/>
<a id="pl.62.29"></a><var>62.29</var>amount and how the taxing jurisdiction plans to spend the additional revenue.<br/>
<a id="pl.62.30"></a><var>62.30</var>    (d) For purposes of this subdivision, "aid" means county program aid under section <br/>
<a id="pl.62.31"></a><var>62.31</var>477A.0124 or local government aid under section 477A.013.<br/>
<a id="pl.62.32"></a><var>62.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.62.33"></a><var>62.33</var>thereafter.<br/>
<br/>
<a id="bill.3.32.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 32. Minnesota Statutes 2006, section 275.065, subdivision 6, is amended to read:<br/>
<a id="pl.63.2"></a><var>63.2</var>    Subd. 6. <b>Public hearing; adoption of budget and levy.</b> (a) For purposes of this <br/>
<a id="pl.63.3"></a><var>63.3</var>section, the following terms shall have the meanings given:<br/>
<a id="pl.63.4"></a><var>63.4</var>    (1) "Initial hearing" means the first and primary hearing held to discuss the taxing <br/>
<a id="pl.63.5"></a><var>63.5</var>authority's proposed budget and proposed property tax levy for taxes payable in the <br/>
<a id="pl.63.6"></a><var>63.6</var>following year, or, for school districts, the current budget and the proposed property tax <br/>
<a id="pl.63.7"></a><var>63.7</var>levy for taxes payable in the following year.<br/>
<a id="pl.63.8"></a><var>63.8</var>    (2) "Continuation hearing" means a hearing held to complete the initial hearing, if <br/>
<a id="pl.63.9"></a><var>63.9</var>the initial hearing is not completed on its scheduled date.<br/>
<a id="pl.63.10"></a><var>63.10</var>    (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final <br/>
<a id="pl.63.11"></a><var>63.11</var>property tax levy, and, in the case of taxing authorities other than school districts, the final <br/>
<a id="pl.63.12"></a><var>63.12</var>budget, for taxes payable in the following year.<br/>
<a id="pl.63.13"></a><var>63.13</var>    (b) Between November 29 9 and December 20 1, the governing bodies of a city that <br/>
<a id="pl.63.14"></a><var>63.14</var>has a population over 500, county, metropolitan special taxing districts as defined in <br/>
<a id="pl.63.15"></a><var>63.15</var>subdivision 3, paragraph (i), and regional library districts shall each hold an initial public <br/>
<a id="pl.63.16"></a><var>63.16</var>hearing to discuss and seek public comment on its final budget and property tax levy for <br/>
<a id="pl.63.17"></a><var>63.17</var>taxes payable in the following year, and the governing body of the school district shall <br/>
<a id="pl.63.18"></a><var>63.18</var>hold an initial public hearing to review its current budget and proposed property tax <br/>
<a id="pl.63.19"></a><var>63.19</var>levy for taxes payable in the following year. The metropolitan special taxing districts <br/>
<a id="pl.63.20"></a><var>63.20</var>shall be required to hold only a single joint initial public hearing, the location of which <br/>
<a id="pl.63.21"></a><var>63.21</var>will be determined by the affected metropolitan agencies. A city, county, metropolitan <br/>
<a id="pl.63.22"></a><var>63.22</var>special taxing district as defined in subdivision 3, paragraph (i), regional library district <br/>
<a id="pl.63.23"></a><var>63.23</var>established under section   
         <statute_ref>134.201</statute_ref>, or school district is not required to hold a public <br/>
<a id="pl.63.24"></a><var>63.24</var>hearing under this subdivision unless its proposed property tax levy for taxes payable <br/>
<a id="pl.63.25"></a><var>63.25</var>in the following year, as certified under subdivision 1, has increased over its final <br/>
<a id="pl.63.26"></a><var>63.26</var>property tax levy for taxes payable in the current year by a percentage that is greater <br/>
<a id="pl.63.27"></a><var>63.27</var>than the percentage increase in the implicit price deflator for government consumption <br/>
<a id="pl.63.28"></a><var>63.28</var>expenditures and gross investment for state and local governments prepared by the Bureau <br/>
<a id="pl.63.29"></a><var>63.29</var>of Economic Analysts of the United States Department of Commerce for the 12-month <br/>
<a id="pl.63.30"></a><var>63.30</var>period ending March 31 of the current year. <br/>
<a id="pl.63.31"></a><var>63.31</var>    (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than <br/>
<a id="pl.63.32"></a><var>63.32</var>Saturday. No initial hearing may be held on a Sunday.<br/>
<a id="pl.63.33"></a><var>63.33</var>    (d) At the initial hearing under this subdivision, the percentage increase in property <br/>
<a id="pl.63.34"></a><var>63.34</var>taxes proposed by the taxing authority, if any, and the specific purposes for which property <br/>
<a id="pl.63.35"></a><var>63.35</var>tax revenues are being increased must be discussed. During the discussion, the governing <br/>
<a id="pl.63.36"></a><var>63.36</var>body shall hear comments regarding a proposed increase and explain the reasons for the <br/>
<a id="pl.64.1"></a><var>64.1</var>proposed increase. The public shall be allowed to speak and to ask questions. At the public <br/>
<a id="pl.64.2"></a><var>64.2</var>hearing, the school district must also provide and discuss information on the distribution <br/>
<a id="pl.64.3"></a><var>64.3</var>of its revenues by revenue source, and the distribution of its spending by program area.<br/>
<a id="pl.64.4"></a><var>64.4</var>    (e) If the initial hearing is not completed on its scheduled date, the taxing authority <br/>
<a id="pl.64.5"></a><var>64.5</var>must announce, prior to adjournment of the hearing, the date, time, and place for the <br/>
<a id="pl.64.6"></a><var>64.6</var>continuation of the hearing. The continuation hearing must be held at least five business <br/>
<a id="pl.64.7"></a><var>64.7</var>days but no more than 14 business days after the initial hearing. A continuation hearing <br/>
<a id="pl.64.8"></a><var>64.8</var>may not be held later than December 20 except as provided in paragraphs (f) and (g). <br/>
<a id="pl.64.9"></a><var>64.9</var>A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than <br/>
<a id="pl.64.10"></a><var>64.10</var>Saturday. No continuation hearing may be held on a Sunday.<br/>
<a id="pl.64.11"></a><var>64.11</var>    (f) The governing body of a county shall hold its initial hearing on the first second <br/>
<a id="pl.64.12"></a><var>64.12</var>Thursday in December November each year, and may hold additional initial hearings on <br/>
<a id="pl.64.13"></a><var>64.13</var>other dates before December 20 1 if necessary for the convenience of county residents. If <br/>
<a id="pl.64.14"></a><var>64.14</var>the county needs a continuation of its hearing, the continuation hearing shall be held on <br/>
<a id="pl.64.15"></a><var>64.15</var>the third Tuesday in December. If the third Tuesday in December falls on December 21, <br/>
<a id="pl.64.16"></a><var>64.16</var>the county's continuation hearing shall be held on Monday, December 20 November.<br/>
<a id="pl.64.17"></a><var>64.17</var>    (g) The metropolitan special taxing districts shall hold a joint initial public hearing <br/>
<a id="pl.64.18"></a><var>64.18</var>on the first Wednesday of December. A continuation hearing, if necessary, shall be held on <br/>
<a id="pl.64.19"></a><var>64.19</var>the second Wednesday of December even if that second Wednesday is after December 10.<br/>
<a id="pl.64.20"></a><var>64.20</var>    (h) The county auditor shall provide for the coordination of initial and continuation <br/>
<a id="pl.64.21"></a><var>64.21</var>hearing dates for all school districts and cities within the county to prevent conflicts under <br/>
<a id="pl.64.22"></a><var>64.22</var>clauses (i) and (j).<br/>
<a id="pl.64.23"></a><var>64.23</var>    (i) By August 10, each school board and the board of the regional library district <br/>
<a id="pl.64.24"></a><var>64.24</var>shall certify to the county auditors of the counties in which the school district or regional <br/>
<a id="pl.64.25"></a><var>64.25</var>library district is located the dates on which it elects to hold its initial hearing and any <br/>
<a id="pl.64.26"></a><var>64.26</var>continuation hearing. If a school board or regional library district does not certify these <br/>
<a id="pl.64.27"></a><var>64.27</var>dates by August 10, the auditor will assign the initial and continuation hearing dates. The <br/>
<a id="pl.64.28"></a><var>64.28</var>dates elected or assigned must not conflict with the initial and continuation hearing dates <br/>
<a id="pl.64.29"></a><var>64.29</var>of the county or the metropolitan special taxing districts.<br/>
<a id="pl.64.30"></a><var>64.30</var>    (j) By August 20, the county auditor shall notify the clerks of the cities within the <br/>
<a id="pl.64.31"></a><var>64.31</var>county of the dates on which school districts and regional library districts have elected <br/>
<a id="pl.64.32"></a><var>64.32</var>to hold their initial and continuation hearings. At the time a city certifies its proposed <br/>
<a id="pl.64.33"></a><var>64.33</var>levy under subdivision 1 it shall certify the dates on which it elects to hold its initial <br/>
<a id="pl.64.34"></a><var>64.34</var>hearing and any continuation hearing. Until September 15, the first and second Mondays <br/>
<a id="pl.64.35"></a><var>64.35</var>Monday of December are is reserved for the use of the cities. If a city does not certify its <br/>
<a id="pl.64.36"></a><var>64.36</var>hearing dates by September 15, the auditor shall assign the initial and continuation hearing <br/>
<a id="pl.65.1"></a><var>65.1</var>dates. The dates elected or assigned for the initial hearing must not conflict with the <br/>
<a id="pl.65.2"></a><var>65.2</var>initial hearing dates of the county, metropolitan special taxing districts, regional library <br/>
<a id="pl.65.3"></a><var>65.3</var>districts, or school districts within which the city is located. To the extent possible, the <br/>
<a id="pl.65.4"></a><var>65.4</var>dates of the city's continuation hearing should not conflict with the continuation hearing <br/>
<a id="pl.65.5"></a><var>65.5</var>dates of the county, metropolitan special taxing districts, regional library districts, or <br/>
<a id="pl.65.6"></a><var>65.6</var>school districts within which the city is located. This paragraph does not apply to cities <br/>
<a id="pl.65.7"></a><var>65.7</var>of 500 population or less.<br/>
<a id="pl.65.8"></a><var>65.8</var>    (k) The county initial hearing date and the city, metropolitan special taxing district, <br/>
<a id="pl.65.9"></a><var>65.9</var>regional library district, and school district initial hearing dates must be designated on <br/>
<a id="pl.65.10"></a><var>65.10</var>the notices required under subdivision 3. The continuation hearing dates need not be <br/>
<a id="pl.65.11"></a><var>65.11</var>stated on the notices.<br/>
<a id="pl.65.12"></a><var>65.12</var>    (l) At a subsequent hearing, each county, school district, city over 500 population, <br/>
<a id="pl.65.13"></a><var>65.13</var>and metropolitan special taxing district may amend its proposed property tax levy <br/>
<a id="pl.65.14"></a><var>65.14</var>and must adopt a final property tax levy. Each county, city over 500 population, and <br/>
<a id="pl.65.15"></a><var>65.15</var>metropolitan special taxing district may also amend its proposed budget and must adopt a <br/>
<a id="pl.65.16"></a><var>65.16</var>final budget at the subsequent hearing. The final property tax levy must be adopted prior <br/>
<a id="pl.65.17"></a><var>65.17</var>to adopting the final budget. A school district is not required to adopt its final budget at the <br/>
<a id="pl.65.18"></a><var>65.18</var>subsequent hearing. The subsequent hearing of a taxing authority must be held on a date <br/>
<a id="pl.65.19"></a><var>65.19</var>subsequent to the date of the taxing authority's initial public hearing. If a continuation <br/>
<a id="pl.65.20"></a><var>65.20</var>hearing is held, the subsequent hearing must be held either immediately following the <br/>
<a id="pl.65.21"></a><var>65.21</var>continuation hearing or on a date subsequent to the continuation hearing. The subsequent <br/>
<a id="pl.65.22"></a><var>65.22</var>hearing may be held at a regularly scheduled board or council meeting or at a special <br/>
<a id="pl.65.23"></a><var>65.23</var>meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing <br/>
<a id="pl.65.24"></a><var>65.24</var>of a taxing authority does not have to be coordinated by the county auditor to prevent a <br/>
<a id="pl.65.25"></a><var>65.25</var>conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any <br/>
<a id="pl.65.26"></a><var>65.26</var>other taxing authority. All subsequent hearings must be held prior to five working days <br/>
<a id="pl.65.27"></a><var>65.27</var>after December 20 of the levy year. The date, time, and place of the subsequent hearing <br/>
<a id="pl.65.28"></a><var>65.28</var>must be announced at the initial public hearing or at the continuation hearing.<br/>
<a id="pl.65.29"></a><var>65.29</var>    (m) The property tax levy certified under section   
         <statute_ref>275.07</statute_ref> by a city of any population, <br/>
<a id="pl.65.30"></a><var>65.30</var>county, metropolitan special taxing district, regional library district, or school district <br/>
<a id="pl.65.31"></a><var>65.31</var>must not exceed the proposed levy determined under subdivision 1, except by an amount <br/>
<a id="pl.65.32"></a><var>65.32</var>up to the sum of the following amounts: <br/>
<a id="pl.65.33"></a><var>65.33</var>    (1) the amount of a school district levy whose voters approved a referendum to <br/>
<a id="pl.65.34"></a><var>65.34</var>increase taxes under section   
         <statute_ref>123B.63, subdivision 3</statute_ref>, or   
         <statute_ref>126C.17, subdivision 9</statute_ref>, after <br/>
<a id="pl.65.35"></a><var>65.35</var>the proposed levy was certified; <br/>
<a id="pl.66.1"></a><var>66.1</var>    (2) the amount of a city or county levy approved by the voters after the proposed <br/>
<a id="pl.66.2"></a><var>66.2</var>levy was certified;<br/>
<a id="pl.66.3"></a><var>66.3</var>    (3) the amount of a levy to pay principal and interest on bonds approved by the <br/>
<a id="pl.66.4"></a><var>66.4</var>voters under section   
         <statute_ref>475.58</statute_ref> after the proposed levy was certified; <br/>
<a id="pl.66.5"></a><var>66.5</var>    (4) the amount of a levy to pay costs due to a natural disaster occurring after the <br/>
<a id="pl.66.6"></a><var>66.6</var>proposed levy was certified, if that amount is approved by the commissioner of revenue <br/>
<a id="pl.66.7"></a><var>66.7</var>under subdivision 6a;<br/>
<a id="pl.66.8"></a><var>66.8</var>    (5) the amount of a levy to pay tort judgments against a taxing authority that become <br/>
<a id="pl.66.9"></a><var>66.9</var>final after the proposed levy was certified, if the amount is approved by the commissioner <br/>
<a id="pl.66.10"></a><var>66.10</var>of revenue under subdivision 6a;<br/>
<a id="pl.66.11"></a><var>66.11</var>    (6) the amount of an increase in levy limits certified to the taxing authority by the <br/>
<a id="pl.66.12"></a><var>66.12</var>commissioner of education or the commissioner of revenue after the proposed levy was <br/>
<a id="pl.66.13"></a><var>66.13</var>certified; and<br/>
<a id="pl.66.14"></a><var>66.14</var>    (7) the amount required under section   
         <statute_ref>126C.55</statute_ref>. <br/>
<a id="pl.66.15"></a><var>66.15</var>    (n) This subdivision does not apply to towns and special taxing districts other than <br/>
<a id="pl.66.16"></a><var>66.16</var>regional library districts and metropolitan special taxing districts.<br/>
<a id="pl.66.17"></a><var>66.17</var>    (o) Notwithstanding the requirements of this section, the employer is required to <br/>
<a id="pl.66.18"></a><var>66.18</var>meet and negotiate over employee compensation as provided for in chapter 179A.<br/>
<a id="pl.66.19"></a><var>66.19</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.66.20"></a><var>66.20</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.33.0"></a><a id="pl.66.21"></a><var>66.21</var>    Sec. 33. Minnesota Statutes 2006, section 275.065, subdivision 8, is amended to read:<br/>
<a id="pl.66.22"></a><var>66.22</var>    Subd. 8. <b>Hearing.</b> Notwithstanding any other provision of law, Ramsey County, <br/>
<a id="pl.66.23"></a><var>66.23</var>the city of St. Paul, and Independent School District No. 625 are authorized to and shall <br/>
<a id="pl.66.24"></a><var>66.24</var>hold their initial public hearing jointly. The hearing must be held on  during the week of <br/>
<a id="pl.66.25"></a><var>66.25</var>the second Tuesday of December November each year. The advertisement required in <br/>
<a id="pl.66.26"></a><var>66.26</var>subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the <br/>
<a id="pl.66.27"></a><var>66.27</var>requirements of this section.<br/>
<a id="pl.66.28"></a><var>66.28</var>    Ramsey County is authorized to hold an additional initial hearing or hearings as <br/>
<a id="pl.66.29"></a><var>66.29</var>provided under this section, provided that any additional hearings must not conflict <br/>
<a id="pl.66.30"></a><var>66.30</var>with the initial or continuation hearing dates of the other taxing districts. However, if <br/>
<a id="pl.66.31"></a><var>66.31</var>Ramsey County elects not to hold such additional initial hearing or hearings, the joint <br/>
<a id="pl.66.32"></a><var>66.32</var>initial hearing required by this subdivision must be held in a St. Paul location convenient <br/>
<a id="pl.66.33"></a><var>66.33</var>to residents of Ramsey County.<br/>
<a id="pl.67.1"></a><var>67.1</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.67.2"></a><var>67.2</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter, except that <br/>
<a id="pl.67.3"></a><var>67.3</var>proposed notices and hearings held in 2008 may be held during the week of the second <br/>
<a id="pl.67.4"></a><var>67.4</var>Tuesday of December.<br/>
<br/>
<a id="bill.3.34.0"></a><a id="pl.67.5"></a><var>67.5</var>    Sec. 34. Minnesota Statutes 2006, section 275.065, subdivision 9, is amended to read:<br/>
<a id="pl.67.6"></a><var>67.6</var>    Subd. 9. <b>Aitkin County and school district hearing.</b> Notwithstanding any other <br/>
<a id="pl.67.7"></a><var>67.7</var>law, Aitkin County and Independent School District No. 1, and the city of Aitkin, or any <br/>
<a id="pl.67.8"></a><var>67.8</var>two of them, may hold their initial public hearing jointly. The hearing must be held on <br/>
<a id="pl.67.9"></a><var>67.9</var>the second Tuesday of December November each year. The advertisement required in <br/>
<a id="pl.67.10"></a><var>67.10</var>subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the <br/>
<a id="pl.67.11"></a><var>67.11</var>requirements of this section.<br/>
<a id="pl.67.12"></a><var>67.12</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.67.13"></a><var>67.13</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.35.0"></a><a id="pl.67.14"></a><var>67.14</var>    Sec. 35. Minnesota Statutes 2006, section 275.065, subdivision 10, is amended to read:<br/>
<a id="pl.67.15"></a><var>67.15</var>    Subd. 10. <b>Nobles County; joint initial public hearing.</b> Notwithstanding any <br/>
<a id="pl.67.16"></a><var>67.16</var>other law, Nobles County, the city of Worthington, and Independent School District No. <br/>
<a id="pl.67.17"></a><var>67.17</var>518, Worthington, or any two of them, may hold their initial public hearing jointly. The <br/>
<a id="pl.67.18"></a><var>67.18</var>hearing must be held on the second Tuesday of December November each year. The <br/>
<a id="pl.67.19"></a><var>67.19</var>advertisement required in subdivision 5a may be a joint advertisement. The hearing is <br/>
<a id="pl.67.20"></a><var>67.20</var>otherwise subject to the requirements of this section.<br/>
<a id="pl.67.21"></a><var>67.21</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.67.22"></a><var>67.22</var>held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.3.36.0"></a><a id="pl.67.23"></a><var>67.23</var>    Sec. 36. Minnesota Statutes 2006, section 282.08, is amended to read:<br/>
<a id="pl.67.24"></a><var>67.24</var><b>282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.</b><br/>
<a id="pl.67.25"></a><var>67.25</var>    The net proceeds from the sale or rental of any parcel of forfeited land, or from the <br/>
<a id="pl.67.26"></a><var>67.26</var>sale of products from the forfeited land, must be apportioned by the county auditor to the <br/>
<a id="pl.67.27"></a><var>67.27</var>taxing districts interested in the land, as follows:<br/>
<a id="pl.67.28"></a><var>67.28</var>    (1) the portion required to pay any amounts included in the appraised value <br/>
<a id="pl.67.29"></a><var>67.29</var>under section 
         <statute_ref>282.01, subdivision 3</statute_ref>, as representing increased value due to any public <br/>
<a id="pl.67.30"></a><var>67.30</var>improvement made after forfeiture of the parcel to the state, but not exceeding the amount <br/>
<a id="pl.67.31"></a><var>67.31</var>certified by the clerk of the municipality appropriate governmental authority must be <br/>
<a id="pl.67.32"></a><var>67.32</var>apportioned to the municipal governmental subdivision entitled to it;<br/>
<a id="pl.68.1"></a><var>68.1</var>    (2) the portion required to pay any amount included in the appraised value under <br/>
<a id="pl.68.2"></a><var>68.2</var>section 
         <statute_ref>282.019, subdivision 5</statute_ref>, representing increased value due to response actions <br/>
<a id="pl.68.3"></a><var>68.3</var>taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses <br/>
<a id="pl.68.4"></a><var>68.4</var>certified by the Pollution Control Agency or the commissioner of agriculture, must be <br/>
<a id="pl.68.5"></a><var>68.5</var>apportioned to the agency or the commissioner of agriculture and deposited in the fund <br/>
<a id="pl.68.6"></a><var>68.6</var>from which the expenses were paid;<br/>
<a id="pl.68.7"></a><var>68.7</var>    (3) the portion of the remainder required to discharge any special assessment <br/>
<a id="pl.68.8"></a><var>68.8</var>chargeable against the parcel for drainage or other purpose whether due or deferred at <br/>
<a id="pl.68.9"></a><var>68.9</var>the time of forfeiture, must be apportioned to the municipal governmental subdivision <br/>
<a id="pl.68.10"></a><var>68.10</var>entitled to it; and<br/>
<a id="pl.68.11"></a><var>68.11</var>    (4) any balance must be apportioned as follows:<br/>
<a id="pl.68.12"></a><var>68.12</var>    (i) The county board may annually by resolution set aside no more than 30 percent <br/>
<a id="pl.68.13"></a><var>68.13</var>of the receipts remaining to be used for forest development on tax-forfeited land and <br/>
<a id="pl.68.14"></a><var>68.14</var>dedicated memorial forests, to be expended under the supervision of the county board. It <br/>
<a id="pl.68.15"></a><var>68.15</var>must be expended only on projects improving the health and management of the forest <br/>
<a id="pl.68.16"></a><var>68.16</var>resource.<br/>
<a id="pl.68.17"></a><var>68.17</var>    (ii) The county board may annually by resolution set aside no more than 20 percent <br/>
<a id="pl.68.18"></a><var>68.18</var>of the receipts remaining to be used for the acquisition and maintenance of county parks <br/>
<a id="pl.68.19"></a><var>68.19</var>or recreational areas as defined in sections 
         <statute_ref>398.31</statute_ref> to 
         <statute_ref>398.36</statute_ref>, to be expended under the <br/>
<a id="pl.68.20"></a><var>68.20</var>supervision of the county board.<br/>
<a id="pl.68.21"></a><var>68.21</var>    (iii) Any balance remaining must be apportioned as follows: county, 40 percent; <br/>
<a id="pl.68.22"></a><var>68.22</var>town or city, 20 percent; and school district, 40 percent, provided, however, that in <br/>
<a id="pl.68.23"></a><var>68.23</var>unorganized territory that portion which would have accrued to the township must be <br/>
<a id="pl.68.24"></a><var>68.24</var>administered by the county board of commissioners.<br/>
<a id="pl.68.25"></a><var>68.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.37.0"></a><a id="pl.68.26"></a><var>68.26</var>    Sec. 37. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:<br/>
<a id="pl.68.27"></a><var>68.27</var>    Subdivision 1. <b>Program qualifications.</b> The qualifications for the senior citizens' <br/>
<a id="pl.68.28"></a><var>68.28</var>property tax deferral program are as follows:<br/>
<a id="pl.68.29"></a><var>68.29</var>    (1) the property must be owned and occupied as a homestead by a person 65 years of <br/>
<a id="pl.68.30"></a><var>68.30</var>age or older. In the case of a married couple, both only one of the spouses must be at least <br/>
<a id="pl.68.31"></a><var>68.31</var>65 years old at the time the first property tax deferral is granted, regardless of whether the <br/>
<a id="pl.68.32"></a><var>68.32</var>property is titled in the name of one spouse or both spouses, or titled in another way that <br/>
<a id="pl.68.33"></a><var>68.33</var>permits the property to have homestead status;<br/>
<a id="pl.68.34"></a><var>68.34</var>    (2) the total household income of the qualifying homeowners homeowner, or in the <br/>
<a id="pl.68.35"></a><var>68.35</var>case of a married couple, the qualifying homeowner and spouse, as defined in section <br/>
<statute_ref><a id="pl.69.1"></a><var>69.1</var>290A.03, subdivision 5
         </statute_ref>, for the calendar year preceding the year of the initial application <br/>
<a id="pl.69.2"></a><var>69.2</var>may not exceed $60,000 $80,000; <br/>
<a id="pl.69.3"></a><var>69.3</var>    (3) the homestead must have been owned and occupied as the homestead of at <br/>
<a id="pl.69.4"></a><var>69.4</var>least one of the qualifying homeowners for at least 15 years prior to the year the initial <br/>
<a id="pl.69.5"></a><var>69.5</var>application is filed;<br/>
<a id="pl.69.6"></a><var>69.6</var>    (4) there are no state or federal tax liens or judgment liens on the homesteaded <br/>
<a id="pl.69.7"></a><var>69.7</var>property;<br/>
<a id="pl.69.8"></a><var>69.8</var>    (5) there are no mortgages or other liens on the property that secure future advances, <br/>
<a id="pl.69.9"></a><var>69.9</var>except for those subject to credit limits that result in compliance with clause (6); and<br/>
<a id="pl.69.10"></a><var>69.10</var>    (6) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.69.11"></a><var>69.11</var>property, including unpaid and delinquent special assessments and interest and any <br/>
<a id="pl.69.12"></a><var>69.12</var>delinquent property taxes, penalties, and interest, but not including property taxes payable <br/>
<a id="pl.69.13"></a><var>69.13</var>during the year, does not exceed 75 percent of the assessor's estimated market value for <br/>
<a id="pl.69.14"></a><var>69.14</var>the year.<br/>
<a id="pl.69.15"></a><var>69.15</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.69.16"></a><var>69.16</var>July 1, 2008.<br/>
<br/>
<a id="bill.3.38.0"></a><a id="pl.69.17"></a><var>69.17</var>    Sec. 38. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:<br/>
<a id="pl.69.18"></a><var>69.18</var>    Subd. 3. <b>Excess-income certification by taxpayer.</b> A taxpayer whose initial <br/>
<a id="pl.69.19"></a><var>69.19</var>application has been approved under subdivision 2 shall notify the commissioner of <br/>
<a id="pl.69.20"></a><var>69.20</var>revenue in writing by July 1 if the taxpayer's household income for the preceding calendar <br/>
<a id="pl.69.21"></a><var>69.21</var>year exceeded $60,000 $80,000. The certification must state the homeowner's total <br/>
<a id="pl.69.22"></a><var>69.22</var>household income for the previous calendar year. No property taxes may be deferred <br/>
<a id="pl.69.23"></a><var>69.23</var>under this chapter in any year following the year in which a program participant filed or <br/>
<a id="pl.69.24"></a><var>69.24</var>should have filed an excess-income certification under this subdivision showing income in <br/>
<a id="pl.69.25"></a><var>69.25</var>excess of the maximum allowed, unless the participant has filed a resumption of eligibility <br/>
<a id="pl.69.26"></a><var>69.26</var>certification as described in subdivision 4.<br/>
<a id="pl.69.27"></a><var>69.27</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.69.28"></a><var>69.28</var>July 1, 2008.<br/>
<br/>
<a id="bill.3.39.0"></a><a id="pl.69.29"></a><var>69.29</var>    Sec. 39. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:<br/>
<a id="pl.69.30"></a><var>69.30</var>    Subd. 4. <b>Resumption of eligibility certification by taxpayer.</b> A taxpayer who has <br/>
<a id="pl.69.31"></a><var>69.31</var>previously filed an excess-income certification under subdivision 3 may resume program <br/>
<a id="pl.69.32"></a><var>69.32</var>participation if the taxpayer's household income for a subsequent year is $60,000 $80,000 <br/>
<a id="pl.69.33"></a><var>69.33</var>or less. If the taxpayer chooses to resume program participation, the taxpayer must notify <br/>
<a id="pl.70.1"></a><var>70.1</var>the commissioner of revenue in writing by July 1 of the year following a calendar year in <br/>
<a id="pl.70.2"></a><var>70.2</var>which the taxpayer's household income is $60,000 $80,000 or less. The certification must <br/>
<a id="pl.70.3"></a><var>70.3</var>state the taxpayer's total household income for the previous calendar year. Once a taxpayer <br/>
<a id="pl.70.4"></a><var>70.4</var>resumes participation in the program under this subdivision, participation will continue <br/>
<a id="pl.70.5"></a><var>70.5</var>until the taxpayer files a subsequent excess-income certification under subdivision 3 or <br/>
<a id="pl.70.6"></a><var>70.6</var>until participation is terminated under section 
         <statute_ref>290B.08, subdivision 1</statute_ref>. <br/>
<a id="pl.70.7"></a><var>70.7</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.70.8"></a><var>70.8</var>July 1, 2008.<br/>
<br/>
<a id="bill.3.40.0"></a><a id="pl.70.9"></a><var>70.9</var>    Sec. 40. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:<br/>
<a id="pl.70.10"></a><var>70.10</var>    Subdivision 1. <b>Determination by commissioner.</b> The commissioner shall <br/>
<a id="pl.70.11"></a><var>70.11</var>determine each qualifying homeowner's "annual maximum property tax amount" <br/>
<a id="pl.70.12"></a><var>70.12</var>following approval of the homeowner's initial application and following the receipt of a <br/>
<a id="pl.70.13"></a><var>70.13</var>resumption of eligibility certification. The "annual maximum property tax amount" equals <br/>
<a id="pl.70.14"></a><var>70.14</var>three percent of the homeowner's total household income for the year preceding either the <br/>
<a id="pl.70.15"></a><var>70.15</var>initial application or the resumption of eligibility certification, whichever is applicable. <br/>
<a id="pl.70.16"></a><var>70.16</var>Following approval of the initial application, the commissioner shall determine the <br/>
<a id="pl.70.17"></a><var>70.17</var>qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative <br/>
<a id="pl.70.18"></a><var>70.18</var>to the appropriate assessment year for any homeowner whose total household income <br/>
<a id="pl.70.19"></a><var>70.19</var>for the previous year exceeds $60,000 $80,000. No tax shall be deferred in any year in <br/>
<a id="pl.70.20"></a><var>70.20</var>which the homeowner does not meet the program qualifications in section 
         <statute_ref>290B.03</statute_ref>. The <br/>
<a id="pl.70.21"></a><var>70.21</var>maximum allowable total deferral is equal to 75 percent of the assessor's estimated market <br/>
<a id="pl.70.22"></a><var>70.22</var>value for the year, less the balance of any mortgage loans and other amounts secured by <br/>
<a id="pl.70.23"></a><var>70.23</var>liens against the property at the time of application, including any unpaid and delinquent <br/>
<a id="pl.70.24"></a><var>70.24</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.70.25"></a><var>70.25</var>but not including property taxes payable during the year. <br/>
<a id="pl.70.26"></a><var>70.26</var><b>EFFECTIVE DATE.</b>This section is effective for applications received on or after <br/>
<a id="pl.70.27"></a><var>70.27</var>July 1, 2008.<br/>
<br/>
<a id="bill.3.41.0"></a><a id="pl.70.28"></a><var>70.28</var>    Sec. 41. Minnesota Statutes 2006, section 290B.07, is amended to read:<br/>
<a id="pl.70.29"></a><var>70.29</var><b>290B.07 LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.70.30"></a><var>70.30</var>    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.70.31"></a><var>70.31</var>or special assessments and interest deferred under this chapter is deemed a loan from the <br/>
<a id="pl.70.32"></a><var>70.32</var>state to the program participant. The commissioner must compute the interest as provided <br/>
<a id="pl.70.33"></a><var>70.33</var>in section 
<statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed five percent, and maintain records of <br/>
<a id="pl.71.1"></a><var>71.1</var>the total deferred amount and interest for each participant. Interest shall accrue beginning <br/>
<a id="pl.71.2"></a><var>71.2</var>September 1 of the payable year for which the taxes are deferred, provided that no interest <br/>
<a id="pl.71.3"></a><var>71.3</var>shall be charged on (1) deferred property tax amounts on applications filed on or after <br/>
<a id="pl.71.4"></a><var>71.4</var>July 1, 2008, or (2) deferred property taxes beginning with taxes payable in 2009 on <br/>
<a id="pl.71.5"></a><var>71.5</var>applications filed prior to July 1, 2008. Any deferral made under this chapter shall not <br/>
<a id="pl.71.6"></a><var>71.6</var>be construed as delinquent property taxes.<br/>
<a id="pl.71.7"></a><var>71.7</var>    The lien created under section 
         <statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.71.8"></a><var>71.8</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.71.9"></a><var>71.9</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.71.10"></a><var>71.10</var>has the same priority as any other lien under section 
         <statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.71.11"></a><var>71.11</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<statute_ref><a id="pl.71.12"></a><var>71.12</var>290B.04, subdivision 2
         </statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.71.13"></a><var>71.13</var>seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser <br/>
<a id="pl.71.14"></a><var>71.14</var>or an assignee of the purchaser, has priority over deferred taxes and interest on deferred <br/>
<a id="pl.71.15"></a><var>71.15</var>taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred <br/>
<a id="pl.71.16"></a><var>71.16</var>taxes and interest for future years has the same priority as the lien for deferred taxes and <br/>
<a id="pl.71.17"></a><var>71.17</var>interest for the first year, which is always higher in priority than any mortgages or other <br/>
<a id="pl.71.18"></a><var>71.18</var>liens filed, recorded, or created after the notice recorded or filed under section 
         <statute_ref>290B.04, <br/>
<a id="pl.71.19"></a><var>71.19</var>subdivision 2
         </statute_ref>. The county treasurer or auditor shall maintain records of the deferred <br/>
<a id="pl.71.20"></a><var>71.20</var>portion and shall list the amount of deferred taxes for the year and the cumulative deferral <br/>
<a id="pl.71.21"></a><var>71.21</var>and interest for all previous years as a lien against the property. In any certification of <br/>
<a id="pl.71.22"></a><var>71.22</var>unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes <br/>
<a id="pl.71.23"></a><var>71.23</var>payable in the current year, deferred taxes and interest, and delinquent taxes. Payment <br/>
<a id="pl.71.24"></a><var>71.24</var>of the deferred portion becomes due and owing at the time specified in section 
         <statute_ref>290B.08</statute_ref>. <br/>
<a id="pl.71.25"></a><var>71.25</var>Upon receipt of the payment, the commissioner shall issue a receipt for it to the person <br/>
<a id="pl.71.26"></a><var>71.26</var>making the payment upon request and shall notify the auditor of the county in which the <br/>
<a id="pl.71.27"></a><var>71.27</var>parcel is located, within ten days, identifying the parcel to which the payment applies. <br/>
<a id="pl.71.28"></a><var>71.28</var>Upon receipt by the commissioner of revenue of collected funds in the amount of the <br/>
<a id="pl.71.29"></a><var>71.29</var>deferral, the state's loan to the program participant is deemed paid in full.<br/>
<a id="pl.71.30"></a><var>71.30</var>    (b) If property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.71.31"></a><var>71.31</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.71.32"></a><var>71.32</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<statute_ref><a id="pl.71.33"></a><var>71.33</var>290B.08
         </statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.71.34"></a><var>71.34</var>canceled by the county auditor as provided in section 
         <statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.71.35"></a><var>71.35</var>any other law to the contrary, any proceeds from a subsequent sale of the property under <br/>
<a id="pl.71.36"></a><var>71.36</var>chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale <br/>
<a id="pl.72.1"></a><var>72.1</var>fund for any direct costs of selling the property or any costs directly related to preparing <br/>
<a id="pl.72.2"></a><var>72.2</var>the property for sale, and then to reimburse the state for the amount of the canceled lien. <br/>
<a id="pl.72.3"></a><var>72.3</var>Within 90 days of the receipt of any sale proceed to which the state is entitled under these <br/>
<a id="pl.72.4"></a><var>72.4</var>provisions, the county auditor must pay those funds to the commissioner of revenue by <br/>
<a id="pl.72.5"></a><var>72.5</var>warrant for deposit in the general fund. No other deposit, use, distribution, or release of <br/>
<a id="pl.72.6"></a><var>72.6</var>gross sale proceeds or receipts may be made by the county until payments sufficient <br/>
<a id="pl.72.7"></a><var>72.7</var>to fully reimburse the state for the canceled lien amount have been transmitted to the <br/>
<a id="pl.72.8"></a><var>72.8</var>commissioner.<br/>
<a id="pl.72.9"></a><var>72.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2008.<br/>
<br/>
<a id="bill.3.42.0"></a><a id="pl.72.10"></a><var>72.10</var>    Sec. 42. <b>[290D.01] CITATION.</b><br/>
<a id="pl.72.11"></a><var>72.11</var>    This program shall be named the "seasonal recreational property tax deferral <br/>
<a id="pl.72.12"></a><var>72.12</var>program."<br/>
<a id="pl.72.13"></a><var>72.13</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.3.43.0"></a><a id="pl.72.14"></a><var>72.14</var>    Sec. 43. <b>[290D.02] TERMS.</b><br/>
<a id="pl.72.15"></a><var>72.15</var>    Subdivision 1. <b>Terms.</b> For purposes of sections 290D.01 to 290D.08, the terms <br/>
<a id="pl.72.16"></a><var>72.16</var>defined in this section have the meanings given them.<br/>
<a id="pl.72.17"></a><var>72.17</var>    Subd. 2. <b>Primary property owner.</b> "Primary property owner" means a person who <br/>
<a id="pl.72.18"></a><var>72.18</var>(1) has been the owner, or one of the owners, of the eligible property for at least 15 years <br/>
<a id="pl.72.19"></a><var>72.19</var>prior to the year the application is filed under section 290D.04; and (2) applies for the <br/>
<a id="pl.72.20"></a><var>72.20</var>deferral of property taxes under section 290D.04.<br/>
<a id="pl.72.21"></a><var>72.21</var>    Subd. 3. <b>Secondary property owner.</b> "Secondary property owner" means any <br/>
<a id="pl.72.22"></a><var>72.22</var>person, other than the primary property owner, who has been an owner of the eligible <br/>
<a id="pl.72.23"></a><var>72.23</var>property for at least 15 years prior to the year the initial application is filed for deferral <br/>
<a id="pl.72.24"></a><var>72.24</var>of property taxes under section 290D.04.<br/>
<a id="pl.72.25"></a><var>72.25</var>    Subd. 4. <b>Eligible property.</b> "Eligible property" means a parcel of property or <br/>
<a id="pl.72.26"></a><var>72.26</var>contiguous parcels of property under the same ownership classified as noncommercial <br/>
<a id="pl.72.27"></a><var>72.27</var>seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.<br/>
<a id="pl.72.28"></a><var>72.28</var>    Subd. 5. <b>Base property tax amount.</b> "Base property tax amount" means the total <br/>
<a id="pl.72.29"></a><var>72.29</var>property taxes levied by all taxing jurisdictions, including special assessments, on the <br/>
<a id="pl.72.30"></a><var>72.30</var>eligible property in the year prior to the year that the initial application is approved under <br/>
<a id="pl.72.31"></a><var>72.31</var>section 290D.04 and payable in the year of the application.<br/>
<a id="pl.73.1"></a><var>73.1</var>    Subd. 6. <b>Special assessments.</b> "Special assessments" means any assessment, fee, or <br/>
<a id="pl.73.2"></a><var>73.2</var>other charge that may be made by law, and that appears on the property tax statement for <br/>
<a id="pl.73.3"></a><var>73.3</var>the property for collection under the laws applicable to the enforcement of real estate taxes.<br/>
<a id="pl.73.4"></a><var>73.4</var>    Subd. 7. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.73.5"></a><var>73.5</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.73.6"></a><var>73.6</var>and thereafter.<br/>
<br/>
<a id="bill.3.44.0"></a><a id="pl.73.7"></a><var>73.7</var>    Sec. 44. <b>[290D.03] QUALIFICATIONS FOR DEFERRAL.</b><br/>
<a id="pl.73.8"></a><var>73.8</var>    In order for an eligible property to qualify for treatment under this program:<br/>
<a id="pl.73.9"></a><var>73.9</var>    (1) the eligible property must have been owned solely by the primary property owner, <br/>
<a id="pl.73.10"></a><var>73.10</var>or jointly with others, for at least 15 years prior to the year the initial application is filed;<br/>
<a id="pl.73.11"></a><var>73.11</var>    (2) there must be no state or federal tax liens or judgment liens on the eligible <br/>
<a id="pl.73.12"></a><var>73.12</var>property;<br/>
<a id="pl.73.13"></a><var>73.13</var>    (3) there must be no mortgages or other liens on the eligible property that secure <br/>
<a id="pl.73.14"></a><var>73.14</var>future advances, except for those subject to credit limits that result in compliance with <br/>
<a id="pl.73.15"></a><var>73.15</var>clause (4); and<br/>
<a id="pl.73.16"></a><var>73.16</var>    (4) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.73.17"></a><var>73.17</var>eligible property, including unpaid and delinquent special assessments and interest and <br/>
<a id="pl.73.18"></a><var>73.18</var>any delinquent property taxes, penalties, and interest, but not including property taxes <br/>
<a id="pl.73.19"></a><var>73.19</var>payable during the year, must not exceed 60 percent of the assessor's estimated market <br/>
<a id="pl.73.20"></a><var>73.20</var>value for the current assessment year.<br/>
<a id="pl.73.21"></a><var>73.21</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.73.22"></a><var>73.22</var>and thereafter.<br/>
<br/>
<a id="bill.3.45.0"></a><a id="pl.73.23"></a><var>73.23</var>    Sec. 45. <b>[290D.04] APPLICATION FOR DEFERRAL.</b><br/>
<a id="pl.73.24"></a><var>73.24</var>    Subdivision 1. <b>Initial application.</b> (a) A primary owner of a property meeting <br/>
<a id="pl.73.25"></a><var>73.25</var>the qualifications under section 
<statute_ref>290D.03</statute_ref> may apply to the commissioner for deferral <br/>
<a id="pl.73.26"></a><var>73.26</var>of taxes on the eligible property. Applications are due on or before July 1 for deferral <br/>
<a id="pl.73.27"></a><var>73.27</var>of any taxes payable in the following year. The application, which must be prescribed <br/>
<a id="pl.73.28"></a><var>73.28</var>by the commissioner, shall include the following items and any other information the <br/>
<a id="pl.73.29"></a><var>73.29</var>commissioner deems necessary: <br/>
<a id="pl.73.30"></a><var>73.30</var>    (1) the name, address, and Social Security number of the primary property owner <br/>
<a id="pl.73.31"></a><var>73.31</var>and secondary property owners, if any;<br/>
<a id="pl.73.32"></a><var>73.32</var>    (2) a copy of the property tax statement for the current taxes payable year for the <br/>
<a id="pl.73.33"></a><var>73.33</var>eligible property;<br/>
<a id="pl.74.1"></a><var>74.1</var>    (3) the initial year of ownership of the primary property owner and any second <br/>
<a id="pl.74.2"></a><var>74.2</var>property owners of the eligible property;<br/>
<a id="pl.74.3"></a><var>74.3</var>    (4) information on any mortgage loans or other amounts secured by mortgages or <br/>
<a id="pl.74.4"></a><var>74.4</var>other liens against the eligible property, for which purpose the commissioner may require <br/>
<a id="pl.74.5"></a><var>74.5</var>the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the <br/>
<a id="pl.74.6"></a><var>74.6</var>balance owing on the mortgage loan provided by the mortgage holder. The commissioner <br/>
<a id="pl.74.7"></a><var>74.7</var>may require the appropriate documents in connection with obtaining and confirming <br/>
<a id="pl.74.8"></a><var>74.8</var>information on unpaid amounts secured by other liens; and<br/>
<a id="pl.74.9"></a><var>74.9</var>    (5) the signatures of the primary property owner and all other owners, if any, stating <br/>
<a id="pl.74.10"></a><var>74.10</var>that each owner agrees to enroll the eligible property in the program to defer property <br/>
<a id="pl.74.11"></a><var>74.11</var>taxes under this chapter.<br/>
<a id="pl.74.12"></a><var>74.12</var>    The application must state that program participation is voluntary. The application <br/>
<a id="pl.74.13"></a><var>74.13</var>must also state that program participation includes authorization for the annual deferred <br/>
<a id="pl.74.14"></a><var>74.14</var>amount. The deferred property tax calculated by the county and the cumulative deferred <br/>
<a id="pl.74.15"></a><var>74.15</var>property tax amount is public data.<br/>
<a id="pl.74.16"></a><var>74.16</var>    (b) As part of the initial application process, if the property is abstract property, the <br/>
<a id="pl.74.17"></a><var>74.17</var>commissioner may require the applicant to obtain at the applicant's cost a report prepared <br/>
<a id="pl.74.18"></a><var>74.18</var>by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens, <br/>
<a id="pl.74.19"></a><var>74.19</var>judgments, and state and federal tax lien notices which were recorded on or after the date <br/>
<a id="pl.74.20"></a><var>74.20</var>of that last deed with respect to the eligible property or to the applicant.<br/>
<a id="pl.74.21"></a><var>74.21</var>    The certificate or report need not include references to any documents filed or <br/>
<a id="pl.74.22"></a><var>74.22</var>recorded more than 40 years prior to the date of the certification or report. The certification <br/>
<a id="pl.74.23"></a><var>74.23</var>or report must be as of a date not more than 30 days prior to submission of the application <br/>
<a id="pl.74.24"></a><var>74.24</var>under this section.<br/>
<a id="pl.74.25"></a><var>74.25</var>    The commissioner may also require the county recorder or county registrar of the <br/>
<a id="pl.74.26"></a><var>74.26</var>county where the eligible property is located to provide copies of recorded documents <br/>
<a id="pl.74.27"></a><var>74.27</var>related to the applicant of the eligible property, for which the recorder or registrar shall <br/>
<a id="pl.74.28"></a><var>74.28</var>not charge a fee. The commissioner may use any information available to determine or <br/>
<a id="pl.74.29"></a><var>74.29</var>verify eligibility under this section.<br/>
<a id="pl.74.30"></a><var>74.30</var>    Subd. 2. <b>Approval; recording.</b> The commissioner shall approve all initial <br/>
<a id="pl.74.31"></a><var>74.31</var>applications that qualify under this chapter and shall notify the primary property owner on <br/>
<a id="pl.74.32"></a><var>74.32</var>or before December 1. The commissioner may investigate the facts or require confirmation <br/>
<a id="pl.74.33"></a><var>74.33</var>in regard to an application. The commissioner shall record or file a notice of qualification <br/>
<a id="pl.74.34"></a><var>74.34</var>for deferral, including the names of the primary and any secondary property owners and a <br/>
<a id="pl.74.35"></a><var>74.35</var>legal description of the eligible property, in the office of the county recorder, or registrar of <br/>
<a id="pl.74.36"></a><var>74.36</var>titles, whichever is applicable, in the county where the eligible property is located. The <br/>
<a id="pl.75.1"></a><var>75.1</var>notice must state that it serves as a notice of lien and that it includes deferrals under this <br/>
<a id="pl.75.2"></a><var>75.2</var>section for future years. The primary property owner shall pay the recording or filing fees <br/>
<a id="pl.75.3"></a><var>75.3</var>for the notice, which, notwithstanding section 
<statute_ref>357.18</statute_ref>, shall be paid by that owner at the <br/>
<a id="pl.75.4"></a><var>75.4</var>time of satisfaction of the lien.<br/>
<a id="pl.75.5"></a><var>75.5</var>    Subd. 3. <b>Penalty for failure; investigations.</b> (a) The commissioner shall assess <br/>
<a id="pl.75.6"></a><var>75.6</var>a penalty equal to 20 percent of the property taxes improperly deferred in the case of a <br/>
<a id="pl.75.7"></a><var>75.7</var>false application. The commissioner shall assess a penalty equal to 50 percent of the <br/>
<a id="pl.75.8"></a><var>75.8</var>property taxes improperly deferred if the taxpayer knowingly filed a false application. The <br/>
<a id="pl.75.9"></a><var>75.9</var>commissioner shall assess penalties under this section through the issuance of an order <br/>
<a id="pl.75.10"></a><var>75.10</var>under the provisions of chapter 270C. Persons affected by a commissioner's order issued <br/>
<a id="pl.75.11"></a><var>75.11</var>under this section may appeal as provided in chapter 270C.<br/>
<a id="pl.75.12"></a><var>75.12</var>    (b) The commissioner may conduct investigations related to initial applications <br/>
<a id="pl.75.13"></a><var>75.13</var>required under this chapter within the period ending 3-1/2 years from the due date of <br/>
<a id="pl.75.14"></a><var>75.14</var>the application.<br/>
<a id="pl.75.15"></a><var>75.15</var>    Subd. 4. <b>Annual certification to commissioner.</b> Annually on or before July 1, <br/>
<a id="pl.75.16"></a><var>75.16</var>the primary property owner must certify to the commissioner that the person continues <br/>
<a id="pl.75.17"></a><var>75.17</var>to qualify as a primary property owner. If the primary owner has died or has transferred <br/>
<a id="pl.75.18"></a><var>75.18</var>the property in the preceding year, a certification may be filed by the primary owner's <br/>
<a id="pl.75.19"></a><var>75.19</var>spouse, or by one of the secondary owners, provided that the person is currently an <br/>
<a id="pl.75.20"></a><var>75.20</var>owner of the property. In this case, the primary owner's spouse or the secondary owner <br/>
<a id="pl.75.21"></a><var>75.21</var>shall be considered the primary owner from that point forward. If neither the primary <br/>
<a id="pl.75.22"></a><var>75.22</var>owner, the primary owner's spouse, or a secondary owner is eligible to file the required <br/>
<a id="pl.75.23"></a><var>75.23</var>annual certification for the property, the property's participation in the program shall be <br/>
<a id="pl.75.24"></a><var>75.24</var>terminated, and the procedures in section 290D.07 apply.<br/>
<a id="pl.75.25"></a><var>75.25</var>    Subd. 5. <b>Annual notice to primary property owner.</b> Annually, on or before <br/>
<a id="pl.75.26"></a><var>75.26</var>September 1, the commissioner shall notify each primary property owner, in writing, of <br/>
<a id="pl.75.27"></a><var>75.27</var>the total cumulative deferred taxes and accrued interest on the qualifying property as of <br/>
<a id="pl.75.28"></a><var>75.28</var>that date.<br/>
<a id="pl.75.29"></a><var>75.29</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.75.30"></a><var>75.30</var>and thereafter.<br/>
<br/>
<a id="bill.3.46.0"></a><a id="pl.75.31"></a><var>75.31</var>    Sec. 46. <b>[290D.05] DEFERRED PROPERTY TAX AMOUNT.</b><br/>
<a id="pl.75.32"></a><var>75.32</var>    Subdivision 1. <b>Calculation of deferred property tax amount.</b> Each year after <br/>
<a id="pl.75.33"></a><var>75.33</var>the county auditor has determined the final property tax rates under section 275.08, the <br/>
<a id="pl.75.34"></a><var>75.34</var>"deferred property tax amount" must be calculated on each eligible property. The deferred <br/>
<a id="pl.75.35"></a><var>75.35</var>property tax amount is equal to 50 percent of the amount of the difference between (1) the <br/>
<a id="pl.76.1"></a><var>76.1</var>total amount of property taxes and special assessments levied upon the eligible property <br/>
<a id="pl.76.2"></a><var>76.2</var>for the current year by all taxing jurisdictions and (2) the eligible property's base property <br/>
<a id="pl.76.3"></a><var>76.3</var>tax amount. Any tax attributable to new improvements made to the eligible property after <br/>
<a id="pl.76.4"></a><var>76.4</var>the initial application has been approved under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, must be <br/>
<a id="pl.76.5"></a><var>76.5</var>excluded in determining the deferred property tax amount. The eligible property's total <br/>
<a id="pl.76.6"></a><var>76.6</var>current year's tax less the deferred property tax amount for the current year must be listed <br/>
<a id="pl.76.7"></a><var>76.7</var>on the property tax statement and is the amount due to the county under chapter 276. <br/>
<a id="pl.76.8"></a><var>76.8</var>Reference that the property is enrolled in the seasonal recreational property tax deferral <br/>
<a id="pl.76.9"></a><var>76.9</var>program under this chapter and a state lien has been recorded must be clearly printed on <br/>
<a id="pl.76.10"></a><var>76.10</var>the statement.<br/>
<a id="pl.76.11"></a><var>76.11</var>    Subd. 2. <b>Certification to commissioner.</b> The county auditor shall annually, on or <br/>
<a id="pl.76.12"></a><var>76.12</var>before April 15, certify to the commissioner the property tax deferral amounts determined <br/>
<a id="pl.76.13"></a><var>76.13</var>under this section for each eligible property in the county. The commissioner shall <br/>
<a id="pl.76.14"></a><var>76.14</var>prescribe the information that is necessary to identify the eligible properties.<br/>
<a id="pl.76.15"></a><var>76.15</var>    Subd. 3. <b>Limitation on total amount of deferred taxes.</b> The total amount of <br/>
<a id="pl.76.16"></a><var>76.16</var>deferred taxes and interest on a property, when added to (1) the balance owed on any <br/>
<a id="pl.76.17"></a><var>76.17</var>mortgages on the property at the time of initial application; (2) other amounts secured by <br/>
<a id="pl.76.18"></a><var>76.18</var>liens on the property at the time of the initial application; and (3) any unpaid and delinquent <br/>
<a id="pl.76.19"></a><var>76.19</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.76.20"></a><var>76.20</var>but not including property taxes payable during the year, must not exceed 60 percent of <br/>
<a id="pl.76.21"></a><var>76.21</var>the assessor's estimated market value of the property for the current assessment year.<br/>
<a id="pl.76.22"></a><var>76.22</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.76.23"></a><var>76.23</var>and thereafter.<br/>
<br/>
<a id="bill.3.47.0"></a><a id="pl.76.24"></a><var>76.24</var>    Sec. 47. <b>[290D.06] LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.76.25"></a><var>76.25</var>    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.76.26"></a><var>76.26</var>or special assessments and interest, deferred under this chapter is deemed a loan from the <br/>
<a id="pl.76.27"></a><var>76.27</var>state to the program participant. The commissioner shall compute the interest as provided <br/>
<a id="pl.76.28"></a><var>76.28</var>in section 
<statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed two percent over the maximum <br/>
<a id="pl.76.29"></a><var>76.29</var>interest rate provided in section 290B.07, paragraph (a), and maintain records of the total <br/>
<a id="pl.76.30"></a><var>76.30</var>deferred amount and interest for each participant. Interest accrues beginning September 1 <br/>
<a id="pl.76.31"></a><var>76.31</var>of the payable year for which the taxes are deferred. Any deferral made under this chapter <br/>
<a id="pl.76.32"></a><var>76.32</var>must not be construed as delinquent property taxes.<br/>
<a id="pl.76.33"></a><var>76.33</var>    The lien created under section 
<statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.76.34"></a><var>76.34</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.76.35"></a><var>76.35</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.77.1"></a><var>77.1</var>has the same priority as any other lien under section 
<statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.77.2"></a><var>77.2</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<a id="pl.77.3"></a><var>77.3</var><statute_ref>290D.04, subdivision 2</statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.77.4"></a><var>77.4</var>seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an <br/>
<a id="pl.77.5"></a><var>77.5</var>assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, <br/>
<a id="pl.77.6"></a><var>77.6</var>regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes <br/>
<a id="pl.77.7"></a><var>77.7</var>and interest for future years has the same priority as the lien for deferred taxes and interest <br/>
<a id="pl.77.8"></a><var>77.8</var>for the first year, which is always higher in priority than any mortgages or other liens filed, <br/>
<a id="pl.77.9"></a><var>77.9</var>recorded, or created after the notice recorded or filed under section 
<statute_ref>290D.04, subdivision <br/>
<a id="pl.77.10"></a><var>77.10</var>2
</statute_ref>. The county treasurer or auditor shall maintain records of the deferred portion and shall <br/>
<a id="pl.77.11"></a><var>77.11</var>list the amount of deferred taxes for the year and the cumulative deferral and interest for <br/>
<a id="pl.77.12"></a><var>77.12</var>all previous years as a lien against the eligible property. In any certification of unpaid <br/>
<a id="pl.77.13"></a><var>77.13</var>taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in <br/>
<a id="pl.77.14"></a><var>77.14</var>the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred <br/>
<a id="pl.77.15"></a><var>77.15</var>portion becomes due and owing at the time specified in section 
<statute_ref>290D.07</statute_ref>. Upon receipt of <br/>
<a id="pl.77.16"></a><var>77.16</var>the payment, the commissioner shall issue a receipt to the person making the payment <br/>
<a id="pl.77.17"></a><var>77.17</var>upon request and shall notify the auditor of the county in which the parcel is located, <br/>
<a id="pl.77.18"></a><var>77.18</var>within ten days, identifying the parcel to which the payment applies. Upon receipt by the <br/>
<a id="pl.77.19"></a><var>77.19</var>commissioner of collected funds in the amount of the deferral, the state's loan to the <br/>
<a id="pl.77.20"></a><var>77.20</var>program participant is deemed paid in full.<br/>
<a id="pl.77.21"></a><var>77.21</var>    (b) If eligible property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.77.22"></a><var>77.22</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.77.23"></a><var>77.23</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<a id="pl.77.24"></a><var>77.24</var><statute_ref>290D.07</statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.77.25"></a><var>77.25</var>canceled by the county auditor as provided in section 
<statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.77.26"></a><var>77.26</var>any other law to the contrary, any proceeds from a subsequent sale of the eligible property <br/>
<a id="pl.77.27"></a><var>77.27</var>under chapter 282 or another law must be used to first reimburse the county's forfeited <br/>
<a id="pl.77.28"></a><var>77.28</var>tax sale fund for any direct costs of selling the eligible property or any costs directly <br/>
<a id="pl.77.29"></a><var>77.29</var>related to preparing the eligible property for sale, and then to reimburse the state for <br/>
<a id="pl.77.30"></a><var>77.30</var>the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to <br/>
<a id="pl.77.31"></a><var>77.31</var>which the state is entitled under these provisions, the county auditor must pay those funds <br/>
<a id="pl.77.32"></a><var>77.32</var>to the commissioner by warrant for deposit in the general fund. No other deposit, use, <br/>
<a id="pl.77.33"></a><var>77.33</var>distribution, or release of gross sale proceeds or receipts may be made by the county until <br/>
<a id="pl.77.34"></a><var>77.34</var>payments sufficient to fully reimburse the state for the canceled lien amount have been <br/>
<a id="pl.77.35"></a><var>77.35</var>transmitted to the commissioner.<br/>
<a id="pl.78.1"></a><var>78.1</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.78.2"></a><var>78.2</var>and thereafter.<br/>
<br/>
<a id="bill.3.48.0"></a><a id="pl.78.3"></a><var>78.3</var>    Sec. 48. <b>[290D.07] TERMINATION OF DEFERRAL; PAYMENT OF </b><br/>
<a id="pl.78.4"></a><var>78.4</var><b>DEFERRED TAXES.</b><br/>
<a id="pl.78.5"></a><var>78.5</var>    Subdivision 1. <b>Termination.</b> (a) The deferral of taxes granted under this chapter <br/>
<a id="pl.78.6"></a><var>78.6</var>terminates when one of the following occurs:<br/>
<a id="pl.78.7"></a><var>78.7</var>    (1) the eligible property is sold or transferred to someone other than the primary <br/>
<a id="pl.78.8"></a><var>78.8</var>owner's spouse or a secondary owner;<br/>
<a id="pl.78.9"></a><var>78.9</var>    (2) the death of the primary owner, or in the case of a married couple, after the <br/>
<a id="pl.78.10"></a><var>78.10</var>death of both spouses, provided that there is not a secondary owner eligible to become <br/>
<a id="pl.78.11"></a><var>78.11</var>the primary owner;<br/>
<a id="pl.78.12"></a><var>78.12</var>    (3) the primary property owner notifies the commissioner, in writing, that all owners, <br/>
<a id="pl.78.13"></a><var>78.13</var>including any secondary property owners, desire to discontinue the deferral; or<br/>
<a id="pl.78.14"></a><var>78.14</var>    (4) the eligible property no longer qualifies under section 290D.03.<br/>
<a id="pl.78.15"></a><var>78.15</var>    (b) An eligible property is not terminated from the program because no deferred <br/>
<a id="pl.78.16"></a><var>78.16</var>property tax amount is determined for any given year after the eligible property's initial <br/>
<a id="pl.78.17"></a><var>78.17</var>enrollment into the program.<br/>
<a id="pl.78.18"></a><var>78.18</var>    (c) An eligible property is not terminated from the program if the eligible property <br/>
<a id="pl.78.19"></a><var>78.19</var>subsequently becomes the homestead of one or more of the property owners and the <br/>
<a id="pl.78.20"></a><var>78.20</var>property and the owners qualify for, and are immediately enrolled in, the senior deferral <br/>
<a id="pl.78.21"></a><var>78.21</var>program under chapter 290B.<br/>
<a id="pl.78.22"></a><var>78.22</var>    Subd. 2. <b>Payment upon termination.</b> Upon the termination of the deferral under <br/>
<a id="pl.78.23"></a><var>78.23</var>subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments <br/>
<a id="pl.78.24"></a><var>78.24</var>and interest, plus the recording or filing fees under this subdivision and section 
<statute_ref>290D.04, <br/>
<a id="pl.78.25"></a><var>78.25</var>subdivision 2
</statute_ref>, becomes due and payable to the commissioner within 90 days of termination <br/>
<a id="pl.78.26"></a><var>78.26</var>of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), <br/>
<a id="pl.78.27"></a><var>78.27</var>and within one year of termination of the deferral for terminations under subdivision 1, <br/>
<a id="pl.78.28"></a><var>78.28</var>paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely <br/>
<a id="pl.78.29"></a><var>78.29</var>paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor <br/>
<a id="pl.78.30"></a><var>78.30</var>of the county in which the parcel is located, identifying the parcel to which the payment <br/>
<a id="pl.78.31"></a><var>78.31</var>applies and shall remit the recording or filing fees under this subdivision and section <br/>
<a id="pl.78.32"></a><var>78.32</var><statute_ref>290D.04, subdivision 2</statute_ref>, to the auditor. A notice of termination of deferral, containing the <br/>
<a id="pl.78.33"></a><var>78.33</var>legal description and the recording or filing data for the notice of qualification for deferral <br/>
<a id="pl.78.34"></a><var>78.34</var>under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, shall be prepared and recorded or filed by the <br/>
<a id="pl.78.35"></a><var>78.35</var>county auditor in the same office in which the notice of qualification for deferral under <br/>
<a id="pl.79.1"></a><var>79.1</var>section 
<statute_ref>290D.04, subdivision 2</statute_ref>, was recorded or filed, and the county auditor shall mail a <br/>
<a id="pl.79.2"></a><var>79.2</var>copy of the notice of termination to the property owner. The property owner shall pay the <br/>
<a id="pl.79.3"></a><var>79.3</var>recording or filing fees. Upon recording or filing of the notice of termination of deferral, <br/>
<a id="pl.79.4"></a><var>79.4</var>the notice of qualification for deferral under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, and the lien <br/>
<a id="pl.79.5"></a><var>79.5</var>created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien, <br/>
<a id="pl.79.6"></a><var>79.6</var>forfeiture, and other rules for the collection of ad valorem property taxes apply. <br/>
<a id="pl.79.7"></a><var>79.7</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.79.8"></a><var>79.8</var>and thereafter.<br/>
<br/>
<a id="bill.3.49.0"></a><a id="pl.79.9"></a><var>79.9</var>    Sec. 49. <b>[290D.08] STATE REIMBURSEMENT.</b><br/>
<a id="pl.79.10"></a><var>79.10</var>    Subdivision 1. <b>Determination; payment.</b> The county auditor shall determine the <br/>
<a id="pl.79.11"></a><var>79.11</var>total current year's deferred amount of property tax under this chapter in the county, and <br/>
<a id="pl.79.12"></a><var>79.12</var>submit those amounts as part of the abstracts of tax lists submitted by the county auditors <br/>
<a id="pl.79.13"></a><var>79.13</var>under section 
<statute_ref>275.29</statute_ref>. The commissioner may make changes in the abstracts of tax lists as <br/>
<a id="pl.79.14"></a><var>79.14</var>deemed necessary. The commissioner, after such review, shall pay the deferred amount of <br/>
<a id="pl.79.15"></a><var>79.15</var>property tax to each county treasurer on or before August 31. <br/>
<a id="pl.79.16"></a><var>79.16</var>    The county treasurer shall distribute, as part of the October settlement, the funds <br/>
<a id="pl.79.17"></a><var>79.17</var>received as if they had been collected as part of the property tax.<br/>
<a id="pl.79.18"></a><var>79.18</var>    Subd. 2. <b>Appropriation.</b> An amount sufficient to pay the total amount of property <br/>
<a id="pl.79.19"></a><var>79.19</var>tax determined under subdivision 1, plus any amounts paid under section 
<statute_ref>290D.04, <br/>
<a id="pl.79.20"></a><var>79.20</var>subdivision 4
</statute_ref>, is annually appropriated from the general fund to the commissioner.<br/>
<a id="pl.79.21"></a><var>79.21</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2009, <br/>
<a id="pl.79.22"></a><var>79.22</var>and thereafter.<br/>
<br/>
<a id="bill.3.50.0"></a><a id="pl.79.23"></a><var>79.23</var>    Sec. 50. Minnesota Statutes 2006, section 469.1813, subdivision 8, is amended to read:<br/>
<a id="pl.79.24"></a><var>79.24</var>    Subd. 8. <b>Limitation on abatements.</b> In any year, the total amount of property <br/>
<a id="pl.79.25"></a><var>79.25</var>taxes abated by a political subdivision under this section may not exceed (1) ten percent <br/>
<a id="pl.79.26"></a><var>79.26</var>of the current levy net tax capacity of the political subdivision for the taxes payable year <br/>
<a id="pl.79.27"></a><var>79.27</var>to which the abatement applies, or (2) $200,000, whichever is greater. The limit under <br/>
<a id="pl.79.28"></a><var>79.28</var>this subdivision does not apply to:<br/>
<a id="pl.79.29"></a><var>79.29</var>    (i) an uncollected abatement from a prior year that is added to the abatement levy; or<br/>
<a id="pl.79.30"></a><var>79.30</var>    (ii) a taxpayer whose real and personal property is subject to valuation under <br/>
<a id="pl.79.31"></a><var>79.31</var>Minnesota Rules, chapter 8100.<br/>
<a id="pl.79.32"></a><var>79.32</var><b>EFFECTIVE DATE.</b>This section is effective for abatement resolutions approved <br/>
<a id="pl.79.33"></a><var>79.33</var>after the day following final enactment.<br/>
<br/>
<a id="bill.3.51.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 51. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:<br/>
<a id="pl.80.2"></a><var>80.2</var>    Subd. 2. <b>Transit taxing district.</b> The metropolitan transit taxing district is hereby <br/>
<a id="pl.80.3"></a><var>80.3</var>designated as that portion of the metropolitan transit area lying within the following <br/>
<a id="pl.80.4"></a><var>80.4</var>named cities, towns, or unorganized territory within the counties indicated:<br/>
<a id="pl.80.5"></a><var>80.5</var>    (a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, <br/>
<a id="pl.80.6"></a><var>80.6</var>Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;<br/>
<a id="pl.80.7"></a><var>80.7</var>    (b) Carver County. Chanhassen, the city of Chaska;<br/>
<a id="pl.80.8"></a><var>80.8</var>    (c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, <br/>
<a id="pl.80.9"></a><var>80.9</var>Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;<br/>
<a id="pl.80.10"></a><var>80.10</var>    (d) Ramsey County. All of the territory within Ramsey County;<br/>
<a id="pl.80.11"></a><var>80.11</var>    (e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, <br/>
<a id="pl.80.12"></a><var>80.12</var>Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, <br/>
<a id="pl.80.13"></a><var>80.13</var>Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, <br/>
<a id="pl.80.14"></a><var>80.14</var>Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, <br/>
<a id="pl.80.15"></a><var>80.15</var>Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, <br/>
<a id="pl.80.16"></a><var>80.16</var>Woodland, the unorganized territory of Hennepin County;<br/>
<a id="pl.80.17"></a><var>80.17</var>    (f) Scott County. Prior Lake, Savage, Shakopee;<br/>
<a id="pl.80.18"></a><var>80.18</var>    (g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, <br/>
<a id="pl.80.19"></a><var>80.19</var>Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, <br/>
<a id="pl.80.20"></a><var>80.20</var>Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the <br/>
<a id="pl.80.21"></a><var>80.21</var>metropolitan area.<br/>
<a id="pl.80.22"></a><var>80.22</var>    The Metropolitan Council in its sole discretion may provide transit service by <br/>
<a id="pl.80.23"></a><var>80.23</var>contract beyond the boundaries of the metropolitan transit taxing district or to cities and <br/>
<a id="pl.80.24"></a><var>80.24</var>towns within the taxing district which are receiving financial assistance under section <br/>
<statute_ref><a id="pl.80.25"></a><var>80.25</var>473.388
         </statute_ref>, upon petition therefor by an interested city, township or political subdivision <br/>
<a id="pl.80.26"></a><var>80.26</var>within the metropolitan transit area. The Metropolitan Council may establish such <br/>
<a id="pl.80.27"></a><var>80.27</var>terms and conditions as it deems necessary and advisable for providing the transit <br/>
<a id="pl.80.28"></a><var>80.28</var>service, including such combination of fares and direct payments by the petitioner as <br/>
<a id="pl.80.29"></a><var>80.29</var>will compensate the council for the full capital and operating cost of the service and the <br/>
<a id="pl.80.30"></a><var>80.30</var>related administrative activities of the council. The amount of the levy made by any <br/>
<a id="pl.80.31"></a><var>80.31</var>municipality to pay for the service shall be disregarded when calculation of levies subject <br/>
<a id="pl.80.32"></a><var>80.32</var>to limitations is made, provided that cities and towns receiving financial assistance under <br/>
<a id="pl.80.33"></a><var>80.33</var>section 
         <statute_ref>473.388</statute_ref> shall not make a special levy under this subdivision without having first <br/>
<a id="pl.80.34"></a><var>80.34</var>exhausted the available local transit funds as defined in section 
         <statute_ref>473.388</statute_ref>. The council shall <br/>
<a id="pl.80.35"></a><var>80.35</var>not be obligated to extend service beyond the boundaries of the taxing district, or to cities <br/>
<a id="pl.81.1"></a><var>81.1</var>and towns within the taxing district which are receiving financial assistance under section <br/>
<statute_ref><a id="pl.81.2"></a><var>81.2</var>473.388
         </statute_ref>, under any law or contract unless or until payment therefor is received. <br/>
<a id="pl.81.3"></a><var>81.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.81.4"></a><var>81.4</var>thereafter.<br/>
<br/>
<a id="bill.3.52.0"></a><a id="pl.81.5"></a><var>81.5</var>    Sec. 52. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:<br/>
<a id="pl.81.6"></a><var>81.6</var>    Subd. 8. <b>State review.</b> The commissioner of revenue shall certify the council's levy <br/>
<a id="pl.81.7"></a><var>81.7</var>limitation under this section to the council by August 1 of the levy year. The council <br/>
<a id="pl.81.8"></a><var>81.8</var>must certify its proposed property tax levy under this section to the commissioner of <br/>
<a id="pl.81.9"></a><var>81.9</var>revenue by September 1 of the levy year. The commissioner of revenue shall annually <br/>
<a id="pl.81.10"></a><var>81.10</var>determine whether the property tax for transit purposes certified by the council for levy <br/>
<a id="pl.81.11"></a><var>81.11</var>following the adoption of its proposed budget is within the levy limitation imposed by <br/>
<a id="pl.81.12"></a><var>81.12</var>subdivisions subdivision 1 and 1b. The commissioner shall also annually determine <br/>
<a id="pl.81.13"></a><var>81.13</var>whether the transit tax imposed on all taxable property within the metropolitan transit area <br/>
<a id="pl.81.14"></a><var>81.14</var>but outside of the metropolitan transit taxing district is within the levy limitation imposed <br/>
<a id="pl.81.15"></a><var>81.15</var>by subdivision 1a. The determination must be completed prior to September 10 of each <br/>
<a id="pl.81.16"></a><var>81.16</var>year. If current information regarding market valuation in any county is not transmitted to <br/>
<a id="pl.81.17"></a><var>81.17</var>the commissioner in a timely manner, the commissioner may estimate the current market <br/>
<a id="pl.81.18"></a><var>81.18</var>valuation within that county for purposes of making the calculations.<br/>
<a id="pl.81.19"></a><var>81.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.81.20"></a><var>81.20</var>thereafter.<br/>
<br/>
<a id="bill.3.53.0"></a><a id="pl.81.21"></a><var>81.21</var>    Sec. 53. Laws 2008, chapter 154, article 2, section 11, the effective date, is amended to <br/>
<a id="pl.81.22"></a><var>81.22</var>read:<br/>
<a id="pl.81.23"></a><var>81.23</var><b>EFFECTIVE DATE.</b>The amendments of this section to paragraph (b) and to the <br/>
<a id="pl.81.24"></a><var>81.24</var>market value increase on the first tier of class 1c homestead resorts are effective for taxes <br/>
<a id="pl.81.25"></a><var>81.25</var>payable in 2009 and thereafter. The rest of this section is effective for taxes payable in <br/>
<a id="pl.81.26"></a><var>81.26</var>2010 and thereafter.<br/>
<a id="pl.81.27"></a><var>81.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.54.0"></a><a id="pl.81.28"></a><var>81.28</var>    Sec. 54. <b>FISCAL DISPARITIES STUDY.</b><br/>
<a id="pl.81.29"></a><var>81.29</var>    The commissioner of revenue shall conduct a study of the metropolitan revenue <br/>
<a id="pl.81.30"></a><var>81.30</var>distribution program contained in Minnesota Statutes, chapter 473F, commonly known <br/>
<a id="pl.81.31"></a><var>81.31</var>as the fiscal disparities program. On or before February 1, 2010, the commissioner shall <br/>
<a id="pl.82.1"></a><var>82.1</var>make a report to the chairs of the house of representatives and senate tax committees <br/>
<a id="pl.82.2"></a><var>82.2</var>consisting of the findings of the study and any recommendations resulting from the study.<br/>
<a id="pl.82.3"></a><var>82.3</var>    The study must consider to what extent the program is meeting the following goals, <br/>
<a id="pl.82.4"></a><var>82.4</var>and what changes could be made to the program in the furtherance of meeting those goals:<br/>
<a id="pl.82.5"></a><var>82.5</var>    (1) reducing the extent to which the property tax encourages development patterns <br/>
<a id="pl.82.6"></a><var>82.6</var>that do not make cost-effective use of public infrastructure or impose other high public <br/>
<a id="pl.82.7"></a><var>82.7</var>costs;<br/>
<a id="pl.82.8"></a><var>82.8</var>    (2) ensuring that the benefits of economic growth of the region are shared throughout <br/>
<a id="pl.82.9"></a><var>82.9</var>the region, especially for growth that results from state and/or regional decisions;<br/>
<a id="pl.82.10"></a><var>82.10</var>    (3) improving the ability of each jurisdiction within the region to deliver services at <br/>
<a id="pl.82.11"></a><var>82.11</var>a level commensurate with its tax effort;<br/>
<a id="pl.82.12"></a><var>82.12</var>    (4) compensating jurisdictions containing properties that provide regional benefits <br/>
<a id="pl.82.13"></a><var>82.13</var>for the costs those properties impose on their host jurisdictions in excess of their tax <br/>
<a id="pl.82.14"></a><var>82.14</var>payments;<br/>
<a id="pl.82.15"></a><var>82.15</var>    (5) promoting a fair distribution of property tax burdens across jurisdictions of <br/>
<a id="pl.82.16"></a><var>82.16</var>the region; and<br/>
<a id="pl.82.17"></a><var>82.17</var>    (6) reducing the economic losses that result from competition among communities <br/>
<a id="pl.82.18"></a><var>82.18</var>for commercial-industrial tax base.<br/>
<a id="pl.82.19"></a><var>82.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2008.<br/>
<br/>
<a id="bill.3.55.0"></a><a id="pl.82.20"></a><var>82.20</var>    Sec. 55. <b>WHITE COMMUNITY HOSPITAL DISTRICT.</b><br/>
<a id="pl.82.21"></a><var>82.21</var>    Subdivision 1. <b>Authorized.</b> Notwithstanding the contiguity requirement in <br/>
<a id="pl.82.22"></a><var>82.22</var>Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following <br/>
<a id="pl.82.23"></a><var>82.23</var>cities and towns in St. Louis County may establish by resolution of their respective <br/>
<a id="pl.82.24"></a><var>82.24</var>governing bodies the White Community Hospital District: the cities of Aurora, Biwabik, <br/>
<a id="pl.82.25"></a><var>82.25</var>and Hoyt Lakes, and the towns of Biwabik, White, and Colvin. The proposed resolution to <br/>
<a id="pl.82.26"></a><var>82.26</var>establish the hospital district must be published and is subject to referendum as provided <br/>
<a id="pl.82.27"></a><var>82.27</var>in Minnesota Statutes, section 447.31, subdivision 2.<br/>
<a id="pl.82.28"></a><var>82.28</var>    Subd. 2. <b>Powers; may make grants.</b> (a) Except as otherwise provided in this <br/>
<a id="pl.82.29"></a><var>82.29</var>section, the White Community Hospital District shall be organized and have the powers <br/>
<a id="pl.82.30"></a><var>82.30</var>and duties provided in Minnesota Statutes, sections 447.31, except subdivisions 2, 5, and <br/>
<a id="pl.82.31"></a><var>82.31</var>6; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38.<br/>
<a id="pl.82.32"></a><var>82.32</var>    (b) The hospital district may levy taxes as provided in this section to provide funding <br/>
<a id="pl.82.33"></a><var>82.33</var>to make grants to the White Community Hospital and any affiliated health care facility or <br/>
<a id="pl.82.34"></a><var>82.34</var>provider for any purpose authorized for hospital districts in Minnesota Statutes, sections <br/>
<a id="pl.82.35"></a><var>82.35</var>447.31 to 447.38, except 447.331. A grant must not be made under this section until the <br/>
<a id="pl.83.1"></a><var>83.1</var>governing body of the White Community Hospital, and any of its affiliated health care <br/>
<a id="pl.83.2"></a><var>83.2</var>facilities or providers receiving a grant, have entered into a written agreement with the <br/>
<a id="pl.83.3"></a><var>83.3</var>hospital district board stating that the governing body will comply with and is subject to <br/>
<a id="pl.83.4"></a><var>83.4</var>all provisions of the Minnesota open meeting law in Minnesota Statutes, chapter 13D.<br/>
<a id="pl.83.5"></a><var>83.5</var>    Subd. 3. <b>Annexation; detachment.</b> Once the hospital district is established, any <br/>
<a id="pl.83.6"></a><var>83.6</var>other city, town, or unorganized area in St. Louis County may join the hospital district <br/>
<a id="pl.83.7"></a><var>83.7</var>in the same manner provided in subdivision 1 for establishment of the hospital district. <br/>
<a id="pl.83.8"></a><var>83.8</var>A city, town, or unorganized area that is a member of the hospital district may detach <br/>
<a id="pl.83.9"></a><var>83.9</var>from the district in the same manner as it may join. An annexation to or detachment <br/>
<a id="pl.83.10"></a><var>83.10</var>from the hospital district is effective for taxes payable in the following calendar year if <br/>
<a id="pl.83.11"></a><var>83.11</var>the resolution is adopted, or in the case of an unorganized area the petition submitted <br/>
<a id="pl.83.12"></a><var>83.12</var>to the county auditor, before July 1 of the levy year. A resolution adopted or petition <br/>
<a id="pl.83.13"></a><var>83.13</var>submitted after July 1 of any year is effective for the taxes payable the year following <br/>
<a id="pl.83.14"></a><var>83.14</var>the next levy year.<br/>
<a id="pl.83.15"></a><var>83.15</var>    Subd. 4. <b>Unorganized areas.</b> An unorganized area in St. Louis County shall <br/>
<a id="pl.83.16"></a><var>83.16</var>become a member of the hospital district if at least 51 percent of the residents of the <br/>
<a id="pl.83.17"></a><var>83.17</var>unorganized area signed a petition submitted to the hospital district board and the county <br/>
<a id="pl.83.18"></a><var>83.18</var>auditor requesting to participate in the hospital district.<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subd. 5. <b>Hospital district board.</b> The hospital district shall be governed by a <br/>
<a id="pl.83.20"></a><var>83.20</var>hospital board composed of one member of each participating city and town's governing <br/>
<a id="pl.83.21"></a><var>83.21</var>body, appointed by the governing body. If the hospital district only has two members, <br/>
<a id="pl.83.22"></a><var>83.22</var>each member city or town shall appoint two board members. The hospital district board <br/>
<a id="pl.83.23"></a><var>83.23</var>must appoint from among its members a chair, clerk, treasurer, and any other officers the <br/>
<a id="pl.83.24"></a><var>83.24</var>board deems necessary or useful. The St. Louis County Board of Commissioners shall <br/>
<a id="pl.83.25"></a><var>83.25</var>appoint a resident of any unorganized area that is participating in the hospital district. All <br/>
<a id="pl.83.26"></a><var>83.26</var>board members serve at the pleasure of the respective appointing authorities.<br/>
<a id="pl.83.27"></a><var>83.27</var>    Subd. 6. <b>No compensation; expenses.</b>  Board members shall serve without <br/>
<a id="pl.83.28"></a><var>83.28</var>compensation but shall be eligible for per diem and expenses provided by, and at the <br/>
<a id="pl.83.29"></a><var>83.29</var>discretion of, their respective appointing authorities.<br/>
<a id="pl.83.30"></a><var>83.30</var>    Subd. 7. <b>Operating tax levy.</b> The hospital district board may levy a tax as <br/>
<a id="pl.83.31"></a><var>83.31</var>provided in Minnesota Statutes, section 447.34, except as provided in this subdivision. <br/>
<a id="pl.83.32"></a><var>83.32</var>If the hospital district board levies it must be a uniform tax rate levied against the net <br/>
<a id="pl.83.33"></a><var>83.33</var>tax capacity of all taxable properties located within each participating city, town, or <br/>
<a id="pl.83.34"></a><var>83.34</var>unorganized area. The maximum amount that may be levied in the hospital district must <br/>
<a id="pl.83.35"></a><var>83.35</var>not exceed 0.066088 percent of the fully taxable market value of all taxable properties <br/>
<a id="pl.83.36"></a><var>83.36</var>located within each participating city, town, or unorganized area.<br/>
<a id="pl.84.1"></a><var>84.1</var>    Any tax levied by the hospital district is in addition to all other taxes levied on the <br/>
<a id="pl.84.2"></a><var>84.2</var>property, including taxes levied for any other hospital purpose by a participating city <br/>
<a id="pl.84.3"></a><var>84.3</var>or town. The levy must be disregarded in the calculation of all other rate or per capita <br/>
<a id="pl.84.4"></a><var>84.4</var>levy limitations imposed by law.<br/>
<a id="pl.84.5"></a><var>84.5</var><b>EFFECTIVE DATE; NO LOCAL APPROVAL.</b>This section is effective the <br/>
<a id="pl.84.6"></a><var>84.6</var>day following final enactment without local approval under Minnesota Statutes, section <br/>
<a id="pl.84.7"></a><var>84.7</var>645.023, subdivision 1, paragraph (a), for taxes levied in 2008, payable in 2009, and <br/>
<a id="pl.84.8"></a><var>84.8</var>thereafter.<br/>
<br/>
<a id="bill.3.56.0"></a><a id="pl.84.9"></a><var>84.9</var>    Sec. 56. <b>VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION; </b><br/>
<a id="pl.84.10"></a><var>84.10</var><b>STORM SEWER UTILITY FEES.</b><br/>
<a id="pl.84.11"></a><var>84.11</var>    Notwithstanding any other law to the contrary and pursuant to joint powers <br/>
<a id="pl.84.12"></a><var>84.12</var>agreements authorized under Minnesota Statutes, sections 103B.211 and 471.59, the <br/>
<a id="pl.84.13"></a><var>84.13</var>Vadnais Lake Area Water Management Organization may certify to the county auditor any <br/>
<a id="pl.84.14"></a><var>84.14</var>fees or charges imposed by the organization under Minnesota Statutes, section 103B.211 <br/>
<a id="pl.84.15"></a><var>84.15</var>or 444.075, and the parcels on which the charges are imposed. The county auditor shall <br/>
<a id="pl.84.16"></a><var>84.16</var>extend the charges on the property tax statements. The amounts must be certified by <br/>
<a id="pl.84.17"></a><var>84.17</var>November 30 to appear on statements for taxes payable in the following year. The charges, <br/>
<a id="pl.84.18"></a><var>84.18</var>if not paid, become delinquent and are subject to the same penalties, the same rate of <br/>
<a id="pl.84.19"></a><var>84.19</var>interest, and become a lien upon the property in the same manner as real property taxes. <br/>
<a id="pl.84.20"></a><var>84.20</var>The charges shall be paid to the Vadnais Lake Area Water Management Organization by <br/>
<a id="pl.84.21"></a><var>84.21</var>the county auditor in the same manner and at the same time as property taxes. The county <br/>
<a id="pl.84.22"></a><var>84.22</var>auditor may charge the Vadnais Lake Area Water Management Organization a fee in the <br/>
<a id="pl.84.23"></a><var>84.23</var>amount necessary to recover the costs of administering the charges.<br/>
<a id="pl.84.24"></a><var>84.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.57.0"></a><a id="pl.84.25"></a><var>84.25</var>    Sec. 57. <b>CITY OF BROOKLYN CENTER; PARTICIPATION IN CRIME-FREE </b><br/>
<a id="pl.84.26"></a><var>84.26</var><b>MULTIHOUSING PROGRAM.</b><br/>
<a id="pl.84.27"></a><var>84.27</var>    (a) In addition to the requirements of Minnesota Statutes, section 273.128, if <br/>
<a id="pl.84.28"></a><var>84.28</var>property located in the city of Brooklyn Center qualifies under paragraph (b), the owners <br/>
<a id="pl.84.29"></a><var>84.29</var>or managers must complete the three phases of the city's crime-free multihousing program <br/>
<a id="pl.84.30"></a><var>84.30</var>and the qualifying property must be annually certified by the police as participating <br/>
<a id="pl.84.31"></a><var>84.31</var>in the program. If a qualifying property is not certified within one year after it is first <br/>
<a id="pl.84.32"></a><var>84.32</var>determined to be a qualifying property under paragraph (b), or does not annually maintain <br/>
<a id="pl.84.33"></a><var>84.33</var>its certification in the program, the city shall notify the property owner that the qualifying <br/>
<a id="pl.85.1"></a><var>85.1</var>property must comply with the requirements of this section to maintain its classification <br/>
<a id="pl.85.2"></a><var>85.2</var>as class 4d property. If a qualifying property is not in compliance within one year after <br/>
<a id="pl.85.3"></a><var>85.3</var>receiving the notice from the city, the city shall issue a second notice and require the <br/>
<a id="pl.85.4"></a><var>85.4</var>owners to enter into a plan to achieve compliance within one year. If, upon expiration <br/>
<a id="pl.85.5"></a><var>85.5</var>of the one-year time period, the qualifying property has not been certified by the police <br/>
<a id="pl.85.6"></a><var>85.6</var>as completing the program, the city shall notify the commissioner of the Housing <br/>
<a id="pl.85.7"></a><var>85.7</var>Finance Agency and the commissioner shall remove the property from the list of class 4d <br/>
<a id="pl.85.8"></a><var>85.8</var>properties certified to the assessor under Minnesota Statutes, section 273.128, subdivision <br/>
<a id="pl.85.9"></a><var>85.9</var>3. Once removed from the list, the property is not eligible for class 4d classification until <br/>
<a id="pl.85.10"></a><var>85.10</var>it complies with this section and its compliance has been certified to the Housing Finance <br/>
<a id="pl.85.11"></a><var>85.11</var>Agency by the city. Certification to the Housing Finance Agency must be made by May <br/>
<a id="pl.85.12"></a><var>85.12</var>15 to be effective for taxes payable in the following year.<br/>
<a id="pl.85.13"></a><var>85.13</var>    (b) A property is a qualifying property for purposes of this section's requirements if <br/>
<a id="pl.85.14"></a><var>85.14</var>it satisfies each of the following requirements:<br/>
<a id="pl.85.15"></a><var>85.15</var>    (1) the city offers a crime-free multihousing program through its city police;<br/>
<a id="pl.85.16"></a><var>85.16</var>    (2) over the preceding three-year period, the number of police calls to the property <br/>
<a id="pl.85.17"></a><var>85.17</var>exceeded the city's average number of calls for multiunit rental properties for the period <br/>
<a id="pl.85.18"></a><var>85.18</var>by at least 25 percent, adjusted for the number of rental units;<br/>
<a id="pl.85.19"></a><var>85.19</var>    (3) the police department has requested, in writing, the owners or managers of the <br/>
<a id="pl.85.20"></a><var>85.20</var>property to enroll in the crime-free multihousing program and the owners or managers <br/>
<a id="pl.85.21"></a><var>85.21</var>refused or failed to enroll within 60 days after the request, or failed to complete phases <br/>
<a id="pl.85.22"></a><var>85.22</var>one and three within 90 days and all three phases of the program within a one-year time <br/>
<a id="pl.85.23"></a><var>85.23</var>period; and<br/>
<a id="pl.85.24"></a><var>85.24</var>    (4) the governing body of the city, by resolution, determines the property is a <br/>
<a id="pl.85.25"></a><var>85.25</var>qualifying property under clauses (1) to (3).<br/>
<a id="pl.85.26"></a><var>85.26</var>    (c) Calls for police or emergency assistance in response to domestic abuse or <br/>
<a id="pl.85.27"></a><var>85.27</var>medical assistance shall not be counted toward the number of calls in paragraph (b), clause <br/>
<a id="pl.85.28"></a><var>85.28</var>(2). For purposes of this section, "domestic abuse" has the meaning given in Minnesota <br/>
<a id="pl.85.29"></a><var>85.29</var>Statutes, section 518B.01, subdivision 2.<br/>
<a id="pl.85.30"></a><var>85.30</var>    (d) Low-income qualifying rental housing property classified as class 4d property <br/>
<a id="pl.85.31"></a><var>85.31</var>for taxes payable in 2008 must meet the requirements of this section by May 15, 2011.<br/>
<a id="pl.85.32"></a><var>85.32</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective the day after <br/>
<a id="pl.85.33"></a><var>85.33</var>compliance by the governing body of the city of Brooklyn Center and its chief clerical <br/>
<a id="pl.85.34"></a><var>85.34</var>officer with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.58.0"></a><a id="pl.85.35"></a><var>85.35</var>    Sec. 58. <b>ASSESSMENT OF PROPERTIES OF PURELY PUBLIC CHARITIES.</b><br/>
<a id="pl.86.1"></a><var>86.1</var>    Subdivision 1. <b>Application.</b> (a) To facilitate a review by the 2009 legislature of <br/>
<a id="pl.86.2"></a><var>86.2</var>the property tax exemption for property of nonprofit organizations as purely public <br/>
<a id="pl.86.3"></a><var>86.3</var>charities and the development of standards and criteria for the tax status of these facilities, <br/>
<a id="pl.86.4"></a><var>86.4</var>this section:<br/>
<a id="pl.86.5"></a><var>86.5</var>    (1) requires the commissioner of revenue to conduct an analysis of standards applied <br/>
<a id="pl.86.6"></a><var>86.6</var>to determine the tax status of these organizations; and <br/>
<a id="pl.86.7"></a><var>86.7</var>    (2) prohibits changes in assessment practices and policies regarding the property of <br/>
<a id="pl.86.8"></a><var>86.8</var>these organizations.<br/>
<a id="pl.86.9"></a><var>86.9</var>    (b) The purpose of this study is to allow the legislature to evaluate whether the <br/>
<a id="pl.86.10"></a><var>86.10</var>judicially established rules and the assessment practices and policies in applying those <br/>
<a id="pl.86.11"></a><var>86.11</var>rules to determine the tax status of these properties ensure that public benefits are, at <br/>
<a id="pl.86.12"></a><var>86.12</var>least, commensurate with the costs of the exemption. The legislature does not intend, in <br/>
<a id="pl.86.13"></a><var>86.13</var>requiring this study, to indicate an intention to expand or to narrow the existing rules for <br/>
<a id="pl.86.14"></a><var>86.14</var>exempting institutions of purely public charity.<br/>
<a id="pl.86.15"></a><var>86.15</var>    Subd. 2. <b>Report by commissioner of revenue.</b> (a) The commissioner of revenue <br/>
<a id="pl.86.16"></a><var>86.16</var>shall survey all county assessors on: <br/>
<a id="pl.86.17"></a><var>86.17</var>    (1) the tax status of property of institutions of purely public charity located in the <br/>
<a id="pl.86.18"></a><var>86.18</var>state, including details on the type of organization and the use of the property; and<br/>
<a id="pl.86.19"></a><var>86.19</var>    (2) their practices and policies in determining the tax status of property of institutions <br/>
<a id="pl.86.20"></a><var>86.20</var>of purely public charity, including the extent to which the assessment practices and <br/>
<a id="pl.86.21"></a><var>86.21</var>policies require the institutions to provide goods or services at free or below market prices <br/>
<a id="pl.86.22"></a><var>86.22</var>and on the treatment of government payments.<br/>
<a id="pl.86.23"></a><var>86.23</var>    (b) The commissioner shall report the findings to the chairs of the house of <br/>
<a id="pl.86.24"></a><var>86.24</var>representatives and senate committees with jurisdiction over taxation by February 1, 2009.<br/>
<a id="pl.86.25"></a><var>86.25</var>    Subd. 3. <b>Moratorium on changes in assessment practices.</b> (a) An assessor <br/>
<a id="pl.86.26"></a><var>86.26</var>may not change the current practices or policies used generally in assessing property <br/>
<a id="pl.86.27"></a><var>86.27</var>of institutions of purely public charities.<br/>
<a id="pl.86.28"></a><var>86.28</var>    (b) An assessor may not change the assessment of the taxable status of an existing <br/>
<a id="pl.86.29"></a><var>86.29</var>property of an organization of purely public charity, unless the change is made as a result of <br/>
<a id="pl.86.30"></a><var>86.30</var>a change in ownership, occupancy or use of the facility, or to correct an error. For currently <br/>
<a id="pl.86.31"></a><var>86.31</var>taxable properties, the assessor may change the estimated market value of the property.<br/>
<a id="pl.86.32"></a><var>86.32</var>    (c) This subdivision expires on the earlier of:<br/>
<a id="pl.86.33"></a><var>86.33</var>    (1) the enactment of legislation establishing criteria for the property taxation of <br/>
<a id="pl.86.34"></a><var>86.34</var>purely public charities; or<br/>
<a id="pl.86.35"></a><var>86.35</var>    (2) adjournment of the 2009 regular legislative session to a date in calendar year <br/>
<a id="pl.86.36"></a><var>86.36</var>2010.<br/>
<a id="pl.87.1"></a><var>87.1</var><b>EFFECTIVE DATE.</b>This section is effective for the 2008 assessment, taxes <br/>
<a id="pl.87.2"></a><var>87.2</var>payable in 2009.<br/>
<br/>
<a id="bill.3.59.0"></a><a id="pl.87.3"></a><var>87.3</var>    Sec. 59. <b> REPEALER.</b><br/>
<a id="pl.87.4"></a><var>87.4</var>(a) Minnesota Statutes 2006, section 273.111, subdivision 6, is repealed.<br/>
<a id="pl.87.5"></a><var>87.5</var>(b) Minnesota Statutes 2006, section 473.4461, is repealed.<br/>
<a id="pl.87.6"></a><var>87.6</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxes payable in 2010 and <br/>
<a id="pl.87.7"></a><var>87.7</var>thereafter. Paragraph (b) is effective for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.87.10"></a><var>87.10</var>    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, as amended by <br/>
<a id="pl.87.11"></a><var>87.11</var>Laws 2008, chapter 152, article 4, section 1, is amended to read:<br/>
<a id="pl.87.12"></a><var>87.12</var>    Subdivision 1.  <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.87.13"></a><var>87.13</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, <br/>
<a id="pl.87.14"></a><var>87.14</var>(3) if permitted by special law enacted prior to May 20, 2008, or (4) if the political <br/>
<a id="pl.87.15"></a><var>87.15</var>subdivision enacted and imposed the tax before the effective date of section 
         <statute_ref>477A.016</statute_ref> and <br/>
<a id="pl.87.16"></a><var>87.16</var>its predecessor provision. <br/>
<a id="pl.87.17"></a><var>87.17</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.87.18"></a><var>87.18</var>subdivision. The provisions of this section preempt the provisions of any special law: <br/>
<a id="pl.87.19"></a><var>87.19</var>    (1) enacted before June 2, 1997, or <br/>
<a id="pl.87.20"></a><var>87.20</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.87.21"></a><var>87.21</var>provision from this section's rules by reference. <br/>
<a id="pl.87.22"></a><var>87.22</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.87.23"></a><var>87.23</var>special excise tax on motor vehicles.<br/>
<a id="pl.87.24"></a><var>87.24</var>    (d) Until after December 31, 2011, a political subdivision may not advertise, <br/>
<a id="pl.87.25"></a><var>87.25</var>promote, expend funds, or hold a referendum to support imposing a local option sales tax <br/>
<a id="pl.87.26"></a><var>87.26</var>unless the tax was authorized by a special law enacted prior to May 20, 2008.<br/>
<a id="pl.87.27"></a><var>87.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.87.28"></a><var>87.28</var>    Sec. 2. <b>CITY OF CLEARWATER; TAXES AUTHORIZED.</b><br/>
<a id="pl.87.29"></a><var>87.29</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.87.30"></a><var>87.30</var>477A.016, or any other provision of law, ordinance, or city charter, pursuant to the <br/>
<a id="pl.87.31"></a><var>87.31</var>approval of the voters on November 7, 2006, the city of Clearwater may impose by <br/>
<a id="pl.87.32"></a><var>87.32</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified in <br/>
<a id="pl.88.1"></a><var>88.1</var>subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota <br/>
<a id="pl.88.2"></a><var>88.2</var>Statutes, section 297A.99, govern the imposition, administration, collection, and <br/>
<a id="pl.88.3"></a><var>88.3</var>enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.88.4"></a><var>88.4</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.88.5"></a><var>88.5</var>477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater <br/>
<a id="pl.88.6"></a><var>88.6</var>may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up <br/>
<a id="pl.88.7"></a><var>88.7</var>to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person <br/>
<a id="pl.88.8"></a><var>88.8</var>engaged within the city in the business of selling motor vehicles at retail.<br/>
<a id="pl.88.9"></a><var>88.9</var>    Subd. 3. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall <br/>
<a id="pl.88.10"></a><var>88.10</var>be used to pay for the costs of acquisition, construction, improvement, and development <br/>
<a id="pl.88.11"></a><var>88.11</var>of a pedestrian bridge, and land and buildings for a community and recreation center. The <br/>
<a id="pl.88.12"></a><var>88.12</var>total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund <br/>
<a id="pl.88.13"></a><var>88.13</var>these projects is $12,000,000 plus any associated bond costs.<br/>
<a id="pl.88.14"></a><var>88.14</var>    Subd. 4. <b>Bonding authority.</b> The city of Clearwater may issue bonds in an amount <br/>
<a id="pl.88.15"></a><var>88.15</var>not to exceed $12,000,000 under Minnesota Statutes, chapter 475, to finance the capital <br/>
<a id="pl.88.16"></a><var>88.16</var>expenditures and improvements authorized by the referendum under subdivision 3. An <br/>
<a id="pl.88.17"></a><var>88.17</var>election to approve the bonds under Minnesota Statutes, section 475.59, is not required. <br/>
<a id="pl.88.18"></a><var>88.18</var>The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section <br/>
<a id="pl.88.19"></a><var>88.19</var>275.60 or 275.61. The debt represented by the bonds must not be included in computing <br/>
<a id="pl.88.20"></a><var>88.20</var>any debt limitations applicable to the city, and the levy of taxes required by Minnesota <br/>
<a id="pl.88.21"></a><var>88.21</var>Statutes, section 475.61, to pay the principal or any interest on the bonds must not be <br/>
<a id="pl.88.22"></a><var>88.22</var>subject to any levy limitation.<br/>
<a id="pl.88.23"></a><var>88.23</var>    Subd. 5. <b>Termination of tax.</b> The tax authorized under subdivision 1 terminates at <br/>
<a id="pl.88.24"></a><var>88.24</var>the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the <br/>
<a id="pl.88.25"></a><var>88.25</var>city council determines that sufficient funds have been raised from the tax to finance the <br/>
<a id="pl.88.26"></a><var>88.26</var>capital and administrative costs of the improvements described in subdivision 3, plus the <br/>
<a id="pl.88.27"></a><var>88.27</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.88.28"></a><var>88.28</var>4, including interest on the bonds. Any funds remaining after completion of the projects <br/>
<a id="pl.88.29"></a><var>88.29</var>specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may <br/>
<a id="pl.88.30"></a><var>88.30</var>be placed in the general fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.88.31"></a><var>88.31</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.88.32"></a><var>88.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.88.33"></a><var>88.33</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.88.34"></a><var>88.34</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.88.35"></a><var>88.35</var>    Sec. 3. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.89.1"></a><var>89.1</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.89.2"></a><var>89.2</var>section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to <br/>
<a id="pl.89.3"></a><var>89.3</var>the approval of the voters on November 7, 2006, the city of North Mankato may impose <br/>
<a id="pl.89.4"></a><var>89.4</var>by ordinance a sales and use tax of one-half of one percent for the purposes specified <br/>
<a id="pl.89.5"></a><var>89.5</var>in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the <br/>
<a id="pl.89.6"></a><var>89.6</var>imposition, administration, collection, and enforcement of the taxes authorized under <br/>
<a id="pl.89.7"></a><var>89.7</var>this subdivision. <br/>
<a id="pl.89.8"></a><var>89.8</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by <br/>
<a id="pl.89.9"></a><var>89.9</var>subdivision 1 must be used to pay all or part of the capital costs of the following projects: <br/>
<a id="pl.89.10"></a><var>89.10</var>    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 <br/>
<a id="pl.89.11"></a><var>89.11</var>interchange project; <br/>
<a id="pl.89.12"></a><var>89.12</var>    (2) development of regional parks and hiking and biking trails;<br/>
<a id="pl.89.13"></a><var>89.13</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.89.14"></a><var>89.14</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.89.15"></a><var>89.15</var>    (5) lake improvement projects.<br/>
<a id="pl.89.16"></a><var>89.16</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund <br/>
<a id="pl.89.17"></a><var>89.17</var>these projects is $6,000,000 plus any associated bond costs.<br/>
<a id="pl.89.18"></a><var>89.18</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the <br/>
<a id="pl.89.19"></a><var>89.19</var>voters at the November 7, 2006, referendum authorizing the imposition of the taxes in <br/>
<a id="pl.89.20"></a><var>89.20</var>this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and <br/>
<a id="pl.89.21"></a><var>89.21</var>administrative expenses for the projects described in subdivision 2 in an amount that <br/>
<a id="pl.89.22"></a><var>89.22</var>does not exceed $6,000,000. A separate election to approve the bonds under Minnesota <br/>
<a id="pl.89.23"></a><var>89.23</var>Statutes, section 475.58, is not required.<br/>
<a id="pl.89.24"></a><var>89.24</var>    (b) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.89.25"></a><var>89.25</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br/>
<a id="pl.89.26"></a><var>89.26</var>475.61, to pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.89.27"></a><var>89.27</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires <br/>
<a id="pl.89.28"></a><var>89.28</var>when the city council determines that the amount of revenues received from the taxes <br/>
<a id="pl.89.29"></a><var>89.29</var>to pay for the projects under subdivision 2, first equals or exceeds $6,000,000 plus the <br/>
<a id="pl.89.30"></a><var>89.30</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.89.31"></a><var>89.31</var>3, including interest on the bonds. Any funds remaining after completion of the projects <br/>
<a id="pl.89.32"></a><var>89.32</var>and retirement or redemption of the bonds shall be placed in a capital facilities and <br/>
<a id="pl.89.33"></a><var>89.33</var>equipment replacement fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.89.34"></a><var>89.34</var>at an earlier time if the city so determines by ordinance. <br/>
<a id="pl.90.1"></a><var>90.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.90.2"></a><var>90.2</var>governing body of the city of North Mankato with Minnesota Statutes, section 645.021, <br/>
<a id="pl.90.3"></a><var>90.3</var>subdivision 3.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.90.4"></a><var>90.4</var>    Sec. 4. <b>CITY OF WINONA; TAXES AUTHORIZED.</b><br/>
<a id="pl.90.5"></a><var>90.5</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.90.6"></a><var>90.6</var>477A.016, or any other provision of law, ordinance, or city charter, if approved by the <br/>
<a id="pl.90.7"></a><var>90.7</var>voters at a general or special election held before December 31, 2009, the city of Winona <br/>
<a id="pl.90.8"></a><var>90.8</var>may impose by ordinance a sales and use tax of up to one-half of one percent for the <br/>
<a id="pl.90.9"></a><var>90.9</var>purpose specified in subdivision 2. Except as otherwise provided in this section, the <br/>
<a id="pl.90.10"></a><var>90.10</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.90.11"></a><var>90.11</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.90.12"></a><var>90.12</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall <br/>
<a id="pl.90.13"></a><var>90.13</var>be used to pay the city-borne costs for the construction of a street connection from the <br/>
<a id="pl.90.14"></a><var>90.14</var>city of Winona to Minnesota State Highways 61 and 43. The construction will provide <br/>
<a id="pl.90.15"></a><var>90.15</var>access to the city's newly built industrial park and additional access to a hospital. The total <br/>
<a id="pl.90.16"></a><var>90.16</var>amount of revenues from the tax in subdivision 1 that may be used to fund this project is <br/>
<a id="pl.90.17"></a><var>90.17</var>$8,000,000 plus any associated bond costs.<br/>
<a id="pl.90.18"></a><var>90.18</var>    Subd. 3. <b>Bonding authority.</b> The city of Winona may issue bonds in an amount <br/>
<a id="pl.90.19"></a><var>90.19</var>not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital <br/>
<a id="pl.90.20"></a><var>90.20</var>expenditures under subdivision 2. An election to approve the bonds under Minnesota <br/>
<a id="pl.90.21"></a><var>90.21</var>Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is <br/>
<a id="pl.90.22"></a><var>90.22</var>not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the <br/>
<a id="pl.90.23"></a><var>90.23</var>bonds must not be included in computing any debt limitations applicable to the city, and <br/>
<a id="pl.90.24"></a><var>90.24</var>the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or <br/>
<a id="pl.90.25"></a><var>90.25</var>any interest on the bonds must not be subject to any levy limitation.<br/>
<a id="pl.90.26"></a><var>90.26</var>    Subd. 4. <b>Termination of tax.</b> The tax authorized under subdivision 1 terminates <br/>
<a id="pl.90.27"></a><var>90.27</var>at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when <br/>
<a id="pl.90.28"></a><var>90.28</var>the city council determines that sufficient funds have been raised from the tax to finance <br/>
<a id="pl.90.29"></a><var>90.29</var>the capital and administrative costs of the project described in subdivision 2, plus the <br/>
<a id="pl.90.30"></a><var>90.30</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.90.31"></a><var>90.31</var>3, including interest on the bonds. Any funds remaining after completion of the project <br/>
<a id="pl.90.32"></a><var>90.32</var>specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may <br/>
<a id="pl.90.33"></a><var>90.33</var>be placed in the general fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.90.34"></a><var>90.34</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.91.1"></a><var>91.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by <br/>
<a id="pl.91.2"></a><var>91.2</var>the governing body of the city of Winona with Minnesota Statutes, section 645.021, <br/>
<a id="pl.91.3"></a><var>91.3</var>subdivisions 2 and 3.<br/>