<a id="pl.1.3"></a><var>1.3</var>property tax provisions, credits, and levies; providing a homestead credit state <br/>
<a id="pl.1.4"></a><var>1.4</var>refund; increasing property tax refunds; providing a school bond agricultural <br/>
<a id="pl.1.5"></a><var>1.5</var>credit; adding an income tax bracket and rate;amending Minnesota Statutes <br/>
<a id="pl.1.6"></a><var>1.6</var>2006, sections 123B.53, subdivisions 4, 5; 123B.54; 126C.01, by adding a <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision; 126C.10, subdivision 13a; 126C.17, subdivision 6; 127A.48, by <br/>
<a id="pl.1.8"></a><var>1.8</var>adding a subdivision; 273.11, subdivision 1a; 273.1384, subdivision 1; 273.1393; <br/>
<a id="pl.1.9"></a><var>1.9</var>275.065, subdivision 3; 275.07, subdivision 2; 275.08, subdivision 1b; 276.04, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision 2; 290.06, subdivisions 2c, 2d; 290A.03, subdivision 13; 290A.04, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivisions 2a, 2h, 3, 4, by adding a subdivision; proposing coding for new <br/>
<a id="pl.1.12"></a><var>1.12</var>law in Minnesota Statutes, chapter 123B; repealing Minnesota Statutes 2006, <br/>
<a id="pl.1.13"></a><var>1.13</var>section 290A.04, subdivisions 2, 2b.<br/>
<a id="pl.1.14"></a><var>1.14</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.1.18"></a><var>1.18</var>    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to <br/>
<a id="pl.1.19"></a><var>1.19</var>read:<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subdivision 1. <b>Residential homestead market value credit.</b> (a) Each county <br/>
<a id="pl.1.21"></a><var>1.21</var>auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead <br/>
<a id="pl.1.22"></a><var>1.22</var>property within the county equal to 0.4 percent of the first $76,000 of market value <br/>
<a id="pl.1.23"></a><var>1.23</var>of the property minus .09 percent of the market value in excess of $76,000. The credit <br/>
<a id="pl.1.24"></a><var>1.24</var>amount may not be less than zero. In the case of an agricultural or resort homestead, only <br/>
<a id="pl.1.25"></a><var>1.25</var>the market value of the house, garage, and immediately surrounding one acre of land is <br/>
<a id="pl.1.26"></a><var>1.26</var>eligible in determining the property's homestead credit. In the case of a property that <br/>
<a id="pl.1.27"></a><var>1.27</var>is classified as part homestead and part nonhomestead, (i) the credit shall apply only <br/>
<a id="pl.2.1"></a><var>2.1</var>to the homestead portion of the property, but (ii) if a portion of a property is classified <br/>
<a id="pl.2.2"></a><var>2.2</var>as nonhomestead solely because not all the owners occupy the property, not all the <br/>
<a id="pl.2.3"></a><var>2.3</var>owners have qualifying relatives occupying the property, or solely because not all the <br/>
<a id="pl.2.4"></a><var>2.4</var>spouses of owners occupy the property, the credit amount shall be initially computed as <br/>
<a id="pl.2.5"></a><var>2.5</var>if that nonhomestead portion were also in the homestead class and then prorated to the <br/>
<a id="pl.2.6"></a><var>2.6</var>owner-occupant's percentage of ownership. For the purpose of this section, when an <br/>
<a id="pl.2.7"></a><var>2.7</var>owner-occupant's spouse does not occupy the property, the percentage of ownership for <br/>
<a id="pl.2.8"></a><var>2.8</var>the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.2.9"></a><var>2.9</var>    (b) For property taxes payable in 2008 and thereafter, the county auditor shall <br/>
<a id="pl.2.10"></a><var>2.10</var>determine the amount of the homestead credit under paragraph (a) and this paragraph. <br/>
<a id="pl.2.11"></a><var>2.11</var>The county auditor shall report the amount of the credit to the taxpayer on the property <br/>
<a id="pl.2.12"></a><var>2.12</var>tax statement or in another manner, as authorized by the commissioner of revenue. The <br/>
<a id="pl.2.13"></a><var>2.13</var>amount of the credit allowed for the property taxes payable year is to be computed as the <br/>
<a id="pl.2.14"></a><var>2.14</var>following percentage of the credit amount under paragraph (a):<br/>
<a id="pl.2.15"></a><var>2.15</var>    (1) for property taxes payable in 2008, 100 percent;<br/>
<a id="pl.2.16"></a><var>2.16</var>    (2) for property taxes payable in 2009, 60 percent;<br/>
<a id="pl.2.17"></a><var>2.17</var>    (3) for property taxes payable in 2010, 30 percent; and<br/>
<a id="pl.2.18"></a><var>2.18</var>    (4) for property taxes payable in 2011 or thereafter, no credit is allowed.<br/>
<a id="pl.2.19"></a><var>2.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning for property taxes payable <br/>
<a id="pl.2.20"></a><var>2.20</var>in 2008.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.21"></a><var>2.21</var>    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.2.22"></a><var>2.22</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.2.23"></a><var>2.23</var>printing of the tax statements. The commissioner of revenue shall prescribe the form <br/>
<a id="pl.2.24"></a><var>2.24</var>of the property tax statement and its contents. The statement must contain a tabulated <br/>
<a id="pl.2.25"></a><var>2.25</var>statement of the dollar amount due to each taxing authority and the amount of the state <br/>
<a id="pl.2.26"></a><var>2.26</var>tax from the parcel of real property for which a particular tax statement is prepared. The <br/>
<a id="pl.2.27"></a><var>2.27</var>dollar amounts attributable to the county, the state tax, the voter approved school tax, the <br/>
<a id="pl.2.28"></a><var>2.28</var>other local school tax, the township or municipality, and the total of the metropolitan <br/>
<a id="pl.2.29"></a><var>2.29</var>special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must <br/>
<a id="pl.2.30"></a><var>2.30</var>be separately stated. The amounts due all other special taxing districts, if any, may be <br/>
<a id="pl.2.31"></a><var>2.31</var>aggregated except that any levies made by the regional rail authorities in the county of <br/>
<a id="pl.2.32"></a><var>2.32</var>Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A <br/>
<a id="pl.2.33"></a><var>2.33</var>shall be listed on a separate line directly under the appropriate county's levy. If the county <br/>
<a id="pl.2.34"></a><var>2.34</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.2.35"></a><var>2.35</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.3.1"></a><var>3.1</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.3.2"></a><var>3.2</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.3.3"></a><var>3.3</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.3.4"></a><var>3.4</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.3.5"></a><var>3.5</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.3.6"></a><var>3.6</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.3.7"></a><var>3.7</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.3.8"></a><var>3.8</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.3.9"></a><var>3.9</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.3.10"></a><var>3.10</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.3.11"></a><var>3.11</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.3.12"></a><var>3.12</var>also be listed on the tax statement.<br/>
<a id="pl.3.13"></a><var>3.13</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.3.14"></a><var>3.14</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.3.15"></a><var>3.15</var>tax statements for real property.<br/>
<a id="pl.3.16"></a><var>3.16</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.3.17"></a><var>3.17</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.3.18"></a><var>3.18</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.3.19"></a><var>3.19</var>in a column on the left:<br/>
<a id="pl.3.20"></a><var>3.20</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.3.22"></a><var>3.22</var>subdivisions 1a and 16
         </statute_ref>;<br/>
<a id="pl.3.23"></a><var>3.23</var>    (3) the property's gross tax, calculated by adding the property's total property tax to <br/>
<a id="pl.3.24"></a><var>3.24</var>the sum of the aids enumerated in clause (4); any items required by the commissioner of <br/>
<a id="pl.3.25"></a><var>3.25</var>revenue under section 273.1384, subdivision 1, paragraph (b); and<br/>
<a id="pl.3.26"></a><var>3.26</var>    (4) a total of the following aids:<br/>
<a id="pl.3.27"></a><var>3.27</var>    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, <br/>
<a id="pl.3.28"></a><var>3.28</var>and 127A;<br/>
<a id="pl.3.29"></a><var>3.29</var>    (ii) local government aids for cities, towns, and counties under sections 
<statute_ref>477A.011</statute_ref> to <br/>
<a id="pl.3.30"></a><var>3.30</var><statute_ref>477A.04</statute_ref>; and<br/>
<a id="pl.3.31"></a><var>3.31</var>    (iii) disparity reduction aid under section 
<statute_ref>273.1398</statute_ref>;<br/>
<a id="pl.3.32"></a><var>3.32</var>    (5) for homestead residential and agricultural properties, the credits under section <br/>
<a id="pl.3.33"></a><var>3.33</var><statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.3.34"></a><var>3.34</var>    (6) 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.3.35"></a><var>3.35</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.3.36"></a><var>3.36</var>under section 
<statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax relief"; and<br/>
<a id="pl.4.1"></a><var>4.1</var>    (7) (4) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.4.2"></a><var>4.2</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.4.3"></a><var>4.3</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.4.4"></a><var>4.4</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.4.5"></a><var>4.5</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.4.6"></a><var>4.6</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.4.7"></a><var>4.7</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.4.8"></a><var>4.8</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.4.9"></a><var>4.9</var>the information on a single announcement.<br/>
<a id="pl.4.10"></a><var>4.10</var>    The commissioner of revenue shall certify to the county auditor the actual or <br/>
<a id="pl.4.11"></a><var>4.11</var>estimated aids enumerated in paragraph (c), clause (4), that local governments will receive <br/>
<a id="pl.4.12"></a><var>4.12</var>in the following year. The commissioner must certify this amount by January 1 of each <br/>
<a id="pl.4.13"></a><var>4.13</var>year.<br/>
<a id="pl.4.14"></a><var>4.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.4.15"></a><var>4.15</var>thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.16"></a><var>4.16</var>    Sec. 3. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.4.17"></a><var>4.17</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property <br/>
<a id="pl.4.18"></a><var>4.18</var>tax exclusive of special assessments, penalties, and interest payable on a claimant's <br/>
<a id="pl.4.19"></a><var>4.19</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.4.20"></a><var>4.20</var>subdivision 2
         </statute_ref>, and any other state paid property tax credits in any calendar year, and <br/>
<a id="pl.4.21"></a><var>4.21</var>after any refund claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is <br/>
<a id="pl.4.22"></a><var>4.22</var>first payable in the year that the property tax is payable. Beginning for property taxes <br/>
<a id="pl.4.23"></a><var>4.23</var>payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must <br/>
<a id="pl.4.24"></a><var>4.24</var>not be deducted in computing property taxes payable. In the case of a claimant who <br/>
<a id="pl.4.25"></a><var>4.25</var>makes ground lease payments, "property taxes payable" includes the amount of the <br/>
<a id="pl.4.26"></a><var>4.26</var>payments directly attributable to the property taxes assessed against the parcel on which <br/>
<a id="pl.4.27"></a><var>4.27</var>the house is located. No apportionment or reduction of the "property taxes payable" shall <br/>
<a id="pl.4.28"></a><var>4.28</var>be required for the use of a portion of the claimant's homestead for a business purpose if <br/>
<a id="pl.4.29"></a><var>4.29</var>the claimant does not deduct any business depreciation expenses for the use of a portion <br/>
<a id="pl.4.30"></a><var>4.30</var>of the homestead in the determination of federal adjusted gross income. For homesteads <br/>
<a id="pl.4.31"></a><var>4.31</var>which are manufactured homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for <br/>
<a id="pl.4.32"></a><var>4.32</var>homesteads which are park trailers taxed as manufactured homes under section 
         <statute_ref>168.012, <br/>
<a id="pl.4.33"></a><var>4.33</var>subdivision 9
         </statute_ref>, "property taxes payable" shall also include 19 percent of the gross rent paid <br/>
<a id="pl.4.34"></a><var>4.34</var>in the preceding year for the site on which the homestead is located. When a homestead <br/>
<a id="pl.4.35"></a><var>4.35</var>is owned by two or more persons as joint tenants or tenants in common, such tenants <br/>
<a id="pl.5.1"></a><var>5.1</var>shall determine between them which tenant may claim the property taxes payable on the <br/>
<a id="pl.5.2"></a><var>5.2</var>homestead. If they are unable to agree, the matter shall be referred to the commissioner of <br/>
<a id="pl.5.3"></a><var>5.3</var>revenue whose decision shall be final. Property taxes are considered payable in the year <br/>
<a id="pl.5.4"></a><var>5.4</var>prescribed by law for payment of the taxes. <br/>
<a id="pl.5.5"></a><var>5.5</var>    In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.5.6"></a><var>5.6</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.5.7"></a><var>5.7</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.5.8"></a><var>5.8</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.5.9"></a><var>5.9</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.5.10"></a><var>5.10</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.5.11"></a><var>5.11</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.5.12"></a><var>5.12</var>approved the application. <br/>
<a id="pl.5.13"></a><var>5.13</var><b>EFFECTIVE DATE.</b>This section is effective beginning for refund claims based on <br/>
<a id="pl.5.14"></a><var>5.14</var>property taxes payable in 2008.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.15"></a><var>5.15</var>    Sec. 4. Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:<br/>
<a id="pl.5.16"></a><var>5.16</var>    Subd. 2a. <b>Renters.</b> (a) A claimant whose rent constituting property taxes exceeds <br/>
<a id="pl.5.17"></a><var>5.17</var>the percentage of the household income stated below must pay an amount equal to the <br/>
<a id="pl.5.18"></a><var>5.18</var>percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.5.19"></a><var>5.19</var>percent to be paid by the claimant of the remaining amount of rent constituting property <br/>
<a id="pl.5.20"></a><var>5.20</var>taxes. The state refund equals the amount of rent constituting property taxes that remain, <br/>
<a id="pl.5.21"></a><var>5.21</var>up to the maximum state refund amount shown below.<br/>
<table width="100%">
<tr>
<td><a id="pl.5.22"></a><var>5.22</var><br/>
<a id="pl.5.23"></a><var>5.23</var><br/>
</td>
<td align="right" valign="bottom">Household Income<br/>
</td>
<td align="center" valign="bottom">Percent of Income<br/>
</td>
<td align="center" valign="bottom">Percent Paid by <br/>
                  		Claimant<br/>
</td>
<td align="center" valign="bottom">Maximum State <br/>
                  		Refund<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.24"></a><var>5.24</var><br/>
</td>
<td align="right" valign="bottom">$0 to 3,589<br/>
</td>
<td align="center" valign="bottom">1.0 percent<br/>
</td>
<td align="center" valign="bottom">5 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.25"></a><var>5.25</var><br/>
</td>
<td align="right" valign="bottom"> $0 to 4,579<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.26"></a><var>5.26</var><br/>
</td>
<td align="right" valign="bottom">3,590 to 4,779<br/>
</td>
<td align="center" valign="bottom">1.0 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.27"></a><var>5.27</var><br/>
</td>
<td align="right" valign="bottom">4,580 to 6,099<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.28"></a><var>5.28</var><br/>
</td>
<td align="right" valign="bottom">4,780 to 5,969<br/>
</td>
<td align="center" valign="bottom">1.1 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.29"></a><var>5.29</var><br/>
</td>
<td align="right" valign="bottom">6,100 to 7,619<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.30"></a><var>5.30</var><br/>
</td>
<td align="right" valign="bottom">5,970 to 8,369<br/>
</td>
<td align="center" valign="bottom">1.2 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.31"></a><var>5.31</var><br/>
</td>
<td align="right" valign="bottom">7,620 to 10,669<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.32"></a><var>5.32</var><br/>
</td>
<td align="right" valign="bottom">8,370 to 10,759<br/>
</td>
<td align="center" valign="bottom">1.3 percent<br/>
</td>
<td align="center" valign="bottom">15 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.33"></a><var>5.33</var><br/>
</td>
<td align="right" valign="bottom">10,670 to 13,729<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.34"></a><var>5.34</var><br/>
</td>
<td align="right" valign="bottom">10,760 to 11,949<br/>
</td>
<td align="center" valign="bottom">1.4 percent<br/>
</td>
<td align="center" valign="bottom">15 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.35"></a><var>5.35</var><br/>
</td>
<td align="right" valign="bottom">13,730 to 15,239<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.36"></a><var>5.36</var><br/>
</td>
<td align="right" valign="bottom">11,950 to 13,139<br/>
</td>
<td align="center" valign="bottom">1.4 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.5.37"></a><var>5.37</var><br/>
</td>
<td align="right" valign="bottom">15,240 to 16,769<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.1"></a><var>6.1</var><br/>
</td>
<td align="right" valign="bottom">13,140 to 15,539<br/>
</td>
<td align="center" valign="bottom">1.5 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.2"></a><var>6.2</var><br/>
</td>
<td align="right" valign="bottom">16,770 to 19,829<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.3"></a><var>6.3</var><br/>
</td>
<td align="right" valign="bottom">15,540 to 16,729<br/>
</td>
<td align="center" valign="bottom">1.6 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.4"></a><var>6.4</var><br/>
</td>
<td align="right" valign="bottom">19,830 to 21,349<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.5"></a><var>6.5</var><br/>
</td>
<td align="right" valign="bottom">16,730 to 17,919<br/>
</td>
<td align="center" valign="bottom">1.7 percent<br/>
</td>
<td align="center" valign="bottom">25 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.6"></a><var>6.6</var><br/>
</td>
<td align="right" valign="bottom">21,350 to 22,859<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.7"></a><var>6.7</var><br/>
</td>
<td align="right" valign="bottom">17,920 to 20,319<br/>
</td>
<td align="center" valign="bottom">1.8 percent<br/>
</td>
<td align="center" valign="bottom">25 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.8"></a><var>6.8</var><br/>
</td>
<td align="right" valign="bottom">22,860 to 25,929<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.9"></a><var>6.9</var><br/>
</td>
<td align="right" valign="bottom">20,320 to 21,509<br/>
</td>
<td align="center" valign="bottom">1.9 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.10"></a><var>6.10</var><br/>
</td>
<td align="right" valign="bottom">25,930 to 27,439<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.11"></a><var>6.11</var><br/>
</td>
<td align="right" valign="bottom">21,510 to 22,699<br/>
</td>
<td align="center" valign="bottom">2.0 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.12"></a><var>6.12</var><br/>
</td>
<td align="right" valign="bottom">27,440 to 28,959<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.13"></a><var>6.13</var><br/>
</td>
<td align="right" valign="bottom">22,700 to 23,899<br/>
</td>
<td align="center" valign="bottom">2.2 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.14"></a><var>6.14</var><br/>
</td>
<td align="right" valign="bottom">28,960 to 30,499<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.15"></a><var>6.15</var><br/>
</td>
<td align="right" valign="bottom">23,900 to 25,089<br/>
</td>
<td align="center" valign="bottom">2.4 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.16"></a><var>6.16</var><br/>
</td>
<td align="right" valign="bottom">30,500 to 32,009<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.17"></a><var>6.17</var><br/>
</td>
<td align="right" valign="bottom">25,090 to 26,289<br/>
</td>
<td align="center" valign="bottom">2.6 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.18"></a><var>6.18</var><br/>
</td>
<td align="right" valign="bottom">32,010 to 33,539<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.19"></a><var>6.19</var><br/>
</td>
<td align="right" valign="bottom">26,290 to 27,489<br/>
</td>
<td align="center" valign="bottom">2.7 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.20"></a><var>6.20</var><br/>
</td>
<td align="right" valign="bottom">33,540 to 35,079<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.21"></a><var>6.21</var><br/>
</td>
<td align="right" valign="bottom">27,490 to 28,679<br/>
</td>
<td align="center" valign="bottom">2.8 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.22"></a><var>6.22</var><br/>
</td>
<td align="right" valign="bottom">35,080 to 36,589<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.23"></a><var>6.23</var><br/>
</td>
<td align="right" valign="bottom">28,680 to 29,869<br/>
</td>
<td align="center" valign="bottom">2.9 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.24"></a><var>6.24</var><br/>
</td>
<td align="right" valign="bottom">36,590 to 38,109<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.25"></a><var>6.25</var><br/>
</td>
<td align="right" valign="bottom">29,870 to 31,079<br/>
</td>
<td align="center" valign="bottom">3.0 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.26"></a><var>6.26</var><br/>
</td>
<td align="right" valign="bottom">38,110 to 39,649<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.27"></a><var>6.27</var><br/>
</td>
<td align="right" valign="bottom">31,080 to 32,269<br/>
</td>
<td align="center" valign="bottom">3.1 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.28"></a><var>6.28</var><br/>
</td>
<td align="right" valign="bottom">39,650 to 41,169<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.29"></a><var>6.29</var><br/>
</td>
<td align="right" valign="bottom">32,270 to 33,459<br/>
</td>
<td align="center" valign="bottom">3.2 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.30"></a><var>6.30</var><br/>
</td>
<td align="right" valign="bottom">41,170 to 42,689<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.31"></a><var>6.31</var><br/>
</td>
<td align="right" valign="bottom">33,460 to 34,649<br/>
</td>
<td align="center" valign="bottom">3.3 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$1,080<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.32"></a><var>6.32</var><br/>
</td>
<td align="right" valign="bottom">42,690 to 49,729<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,370<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.33"></a><var>6.33</var><br/>
</td>
<td align="right" valign="bottom">34,650 to 35,849<br/>
</td>
<td align="center" valign="bottom">3.4 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$ 960<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.34"></a><var>6.34</var><br/>
</td>
<td align="right" valign="bottom">49,730 to 51,459<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,220<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.35"></a><var>6.35</var><br/>
</td>
<td align="right" valign="bottom">35,850 to 37,049<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$ 830<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.36"></a><var>6.36</var><br/>
</td>
<td align="right" valign="bottom">51,460 to 53,189<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,050<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.37"></a><var>6.37</var><br/>
</td>
<td align="right" valign="bottom">37,050 to 38,239<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 720<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.38"></a><var>6.38</var><br/>
</td>
<td align="right" valign="bottom">53,190 to 54,899<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$910<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.39"></a><var>6.39</var><br/>
</td>
<td align="right" valign="bottom">38,240 to 39,439<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 600<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.40"></a><var>6.40</var><br/>
</td>
<td align="right" valign="bottom">54,900 to 56,609<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$760<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.41"></a><var>6.41</var><br/>
</td>
<td align="right" valign="bottom">38,440 to 40,629<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 360<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.42"></a><var>6.42</var><br/>
</td>
<td align="right" valign="bottom">56,610 to 58,319<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$450<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.1"></a><var>7.1</var><br/>
</td>
<td align="right" valign="bottom">40,630 to 41,819<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 120<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.2"></a><var>7.2</var><br/>
</td>
<td align="right" valign="bottom">58,320 to 60,000<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$150<br/>
</td>
</tr>
</table><a id="pl.7.3"></a><var>7.3</var>    (b) The payment made to a claimant is the amount of the state refund calculated <br/>
<a id="pl.7.4"></a><var>7.4</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.7.5"></a><var>7.5</var>$41,820 $60,000 or more.<br/>
<a id="pl.7.6"></a><var>7.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims filed for rent <br/>
<a id="pl.7.7"></a><var>7.7</var>paid after December 31, 2006.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.7.8"></a><var>7.8</var>    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a <br/>
<a id="pl.7.10"></a><var>7.10</var>homestead increase more than 12 percent over the property taxes payable in the prior year <br/>
<a id="pl.7.11"></a><var>7.11</var>on the same property that is owned and occupied by the same owner on January 2 of both <br/>
<a id="pl.7.12"></a><var>7.12</var>years, and the amount of that increase is $100 or more, a claimant who is a homeowner <br/>
<a id="pl.7.13"></a><var>7.13</var>shall be allowed an additional refund equal to 60 percent of the amount of the increase <br/>
<a id="pl.7.14"></a><var>7.14</var>over the greater of 12 percent of the prior year's property taxes payable or $100. This <br/>
<a id="pl.7.15"></a><var>7.15</var>subdivision shall not apply to any increase in the gross property taxes payable attributable <br/>
<a id="pl.7.16"></a><var>7.16</var>to improvements made to the homestead after the assessment date for the prior year's <br/>
<a id="pl.7.17"></a><var>7.17</var>taxes. This subdivision shall not apply to any increase in the gross property taxes payable <br/>
<a id="pl.7.18"></a><var>7.18</var>attributable to the termination of valuation exclusions under section  
         <statute_ref>273.11, subdivision <br/>
<a id="pl.7.19"></a><var>7.19</var>16
         </statute_ref>, or to the reduction in and elimination of the homestead market value credit under <br/>
<a id="pl.7.20"></a><var>7.20</var>section 273.1384, subdivision 1, paragraph (b). <br/>
<a id="pl.7.21"></a><var>7.21</var>    The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.7.22"></a><var>7.22</var>    (b) For purposes of this subdivision "gross property taxes payable" means property <br/>
<a id="pl.7.23"></a><var>7.23</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.7.24"></a><var>7.24</var>    (c) In addition to the other proofs required by this chapter, each claimant under <br/>
<a id="pl.7.25"></a><var>7.25</var>this subdivision shall file with the property tax refund return a copy of the property tax <br/>
<a id="pl.7.26"></a><var>7.26</var>statement for taxes payable in the preceding year or other documents required by the <br/>
<a id="pl.7.27"></a><var>7.27</var>commissioner.<br/>
<a id="pl.7.28"></a><var>7.28</var>    (d) Upon request, the appropriate county official shall make available the names and <br/>
<a id="pl.7.29"></a><var>7.29</var>addresses of the property taxpayers who may be eligible for the additional property tax <br/>
<a id="pl.7.30"></a><var>7.30</var>refund under this section. The information shall be provided on a magnetic computer <br/>
<a id="pl.7.31"></a><var>7.31</var>disk. The county may recover its costs by charging the person requesting the information <br/>
<a id="pl.7.32"></a><var>7.32</var>the reasonable cost for preparing the data. The information may not be used for any <br/>
<a id="pl.7.33"></a><var>7.33</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br/>
<a id="pl.7.34"></a><var>7.34</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.8.1"></a><var>8.1</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on property taxes <br/>
<a id="pl.8.2"></a><var>8.2</var>payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.3"></a><var>8.3</var>    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision <br/>
<a id="pl.8.4"></a><var>8.4</var>to read:<br/>
<a id="pl.8.5"></a><var>8.5</var>    Subd. 2k. <b>Homestead credit state refund.</b> (a) A claimant who is a homeowner <br/>
<a id="pl.8.6"></a><var>8.6</var>is entitled to a state refund of the amount of the property taxes payable in excess of two <br/>
<a id="pl.8.7"></a><var>8.7</var>percent of the claimant's household income, based on the percentage and maximum for the <br/>
<a id="pl.8.8"></a><var>8.8</var>appropriate household income level shown below. The refund amount determined from the <br/>
<a id="pl.8.9"></a><var>8.9</var>table must be reduced further by the amount of the homestead market value credit under <br/>
<a id="pl.8.10"></a><var>8.10</var>section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.<br/>
<table width="100%">
<tr>
<td><a id="pl.8.11"></a><var>8.11</var><br/>
</td>
<td align="left" valign="bottom">Household Income<br/>
</td>
<td align="left" valign="bottom">Refund Percentage<br/>
</td>
<td align="left" valign="bottom">Maximum State Refund<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.12"></a><var>8.12</var><br/>
</td>
<td align="left" valign="bottom">0 to $5,399<br/>
</td>
<td align="left" valign="bottom">90 percent<br/>
</td>
<td align="left" valign="bottom">$2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.13"></a><var>8.13</var><br/>
</td>
<td align="left" valign="bottom">5,400 to 18,899<br/>
</td>
<td align="left" valign="bottom">85 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.14"></a><var>8.14</var><br/>
</td>
<td align="left" valign="bottom">18,900 to 26,999<br/>
</td>
<td align="left" valign="bottom">80 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.15"></a><var>8.15</var><br/>
</td>
<td align="left" valign="bottom">27,000 to 32,399<br/>
</td>
<td align="left" valign="bottom">75 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.16"></a><var>8.16</var><br/>
</td>
<td align="left" valign="bottom">32,400 to 37,799<br/>
</td>
<td align="left" valign="bottom">70 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.17"></a><var>8.17</var><br/>
</td>
<td align="left" valign="bottom">37,800 to 45,899<br/>
</td>
<td align="left" valign="bottom">65 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.18"></a><var>8.18</var><br/>
</td>
<td align="left" valign="bottom">45,900 to 64,699<br/>
</td>
<td align="left" valign="bottom">60 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.19"></a><var>8.19</var><br/>
</td>
<td align="left" valign="bottom">64,700 to 80,899<br/>
</td>
<td align="left" valign="bottom">55 percent<br/>
</td>
<td align="left" valign="bottom">2,300<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.20"></a><var>8.20</var><br/>
</td>
<td align="left" valign="bottom">80,900 to 94,399<br/>
</td>
<td align="left" valign="bottom">50 percent<br/>
</td>
<td align="left" valign="bottom">2,100<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.21"></a><var>8.21</var><br/>
</td>
<td align="left" valign="bottom">94,400 to 99,299<br/>
</td>
<td align="left" valign="bottom">45 percent<br/>
</td>
<td align="left" valign="bottom">1,900<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.22"></a><var>8.22</var><br/>
</td>
<td align="left" valign="bottom">99,300 to 104,099<br/>
</td>
<td align="left" valign="bottom">40 percent<br/>
</td>
<td align="left" valign="bottom">1,700<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.23"></a><var>8.23</var><br/>
</td>
<td align="left" valign="bottom">104,100 to 115,599<br/>
</td>
<td align="left" valign="bottom">30 percent<br/>
</td>
<td align="left" valign="bottom">1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.24"></a><var>8.24</var><br/>
</td>
<td align="left" valign="bottom">115,600 to 127,199<br/>
</td>
<td align="left" valign="bottom">30 percent<br/>
</td>
<td align="left" valign="bottom">1,250<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.25"></a><var>8.25</var><br/>
</td>
<td align="left" valign="bottom">127,200 to 134,099<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.26"></a><var>8.26</var><br/>
</td>
<td align="left" valign="bottom">134,100 to 138,799<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.27"></a><var>8.27</var><br/>
</td>
<td align="left" valign="bottom">138,800 to 144,399<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.28"></a><var>8.28</var><br/>
</td>
<td align="left" valign="bottom">144,400 to 150,000<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">250<br/>
</td>
</tr>
<tr>
<td></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
</table><a id="pl.8.29"></a><var>8.29</var>    (b) No payment is allowed under paragraph (a) if the claimant's household income <br/>
<a id="pl.8.30"></a><var>8.30</var>is more than $150,000.<br/>
<a id="pl.8.31"></a><var>8.31</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.8.32"></a><var>8.32</var>property taxes payable in 2008.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.8.33"></a><var>8.33</var>    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read:<br/>
<a id="pl.8.34"></a><var>8.34</var>    Subd. 3. <b>Table.</b> The commissioner of revenue shall construct and make available <br/>
<a id="pl.8.35"></a><var>8.35</var>to taxpayers a comprehensive table showing the property taxes to be paid and refund <br/>
<a id="pl.8.36"></a><var>8.36</var>allowed at various levels of income and assessment. The table shall follow the schedule <br/>
<a id="pl.9.1"></a><var>9.1</var>of income percentages, maximums and other provisions specified in subdivision 2 this <br/>
<a id="pl.9.2"></a><var>9.2</var>section, except that the commissioner may graduate the transition between income <br/>
<a id="pl.9.3"></a><var>9.3</var>brackets. All refunds shall be computed in accordance with tables prepared and issued <br/>
<a id="pl.9.4"></a><var>9.4</var>by the commissioner of revenue.<br/>
<a id="pl.9.5"></a><var>9.5</var>    The commissioner shall include on the form an appropriate space or method for the <br/>
<a id="pl.9.6"></a><var>9.6</var>claimant to identify if the property taxes paid are for a manufactured home, as defined in <br/>
<a id="pl.9.7"></a><var>9.7</var>section  
         <statute_ref>273.125, subdivision 8</statute_ref>, paragraph (c), or a park trailer taxed as a manufactured <br/>
<a id="pl.9.8"></a><var>9.8</var>home under section  
         <statute_ref>168.012, subdivision 9</statute_ref>.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.9"></a><var>9.9</var>    Sec. 8. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.9.10"></a><var>9.10</var>    Subd. 4. <b>Inflation adjustment.</b> Beginning for property tax refunds payable in <br/>
<a id="pl.9.11"></a><var>9.11</var>calendar year 2002 2009, the commissioner shall annually adjust the dollar amounts of <br/>
<a id="pl.9.12"></a><var>9.12</var>the income thresholds and the maximum refunds under subdivisions 2 and 2a and 2k for <br/>
<a id="pl.9.13"></a><var>9.13</var>inflation. The commissioner shall make the inflation adjustments in accordance with <br/>
<a id="pl.9.14"></a><var>9.14</var>section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision <br/>
<a id="pl.9.15"></a><var>9.15</var>the percentage increase shall be determined from the year ending on June 30, 2000 2007, <br/>
<a id="pl.9.16"></a><var>9.16</var>to the year ending on June 30 of the year preceding that in which the refund is payable. <br/>
<a id="pl.9.17"></a><var>9.17</var>The commissioner shall use the appropriate percentage increase to annually adjust the <br/>
<a id="pl.9.18"></a><var>9.18</var>income thresholds and maximum refunds under subdivisions 2 and 2a and 2k for inflation <br/>
<a id="pl.9.19"></a><var>9.19</var>without regard to whether or not the income tax brackets are adjusted for inflation in that <br/>
<a id="pl.9.20"></a><var>9.20</var>year. The commissioner shall round the thresholds and the maximum amounts, as adjusted <br/>
<a id="pl.9.21"></a><var>9.21</var>to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up <br/>
<a id="pl.9.22"></a><var>9.22</var>to the next $10 amount.<br/>
<a id="pl.9.23"></a><var>9.23</var>    The commissioner shall annually announce the adjusted refund schedule at the same <br/>
<a id="pl.9.24"></a><var>9.24</var>time provided under section  
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under this <br/>
<a id="pl.9.25"></a><var>9.25</var>subdivision is not a rule under the Administrative Procedure Act. <br/>
<a id="pl.9.26"></a><var>9.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.9.27"></a><var>9.27</var>property taxes payable in 2009.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.9.28"></a><var>9.28</var>    Sec. 9. <b>HOMESTEAD CREDIT STATE REFUND TRANSITION RESERVE.</b><br/>
<a id="pl.9.29"></a><var>9.29</var>    Subdivision 1. <b>Reserve account.</b> A homestead credit state refund transition reserve <br/>
<a id="pl.9.30"></a><var>9.30</var>account is established in the general fund to provide two additional years of transition <br/>
<a id="pl.9.31"></a><var>9.31</var>funding for the homestead credit state refund.<br/>
<a id="pl.9.32"></a><var>9.32</var>    Subd. 2. <b>Transfer to account.</b> On June 29, 2009, the commissioner of finance <br/>
<a id="pl.9.33"></a><var>9.33</var>shall transfer $129,000,000 from the general fund to the homestead credit state refund <br/>
<a id="pl.9.34"></a><var>9.34</var>transition reserve account.<br/>
<a id="pl.10.1"></a><var>10.1</var>    Subd. 3. <b>Transfer to general fund.</b> On July 1, 2009, the commissioner of finance <br/>
<a id="pl.10.2"></a><var>10.2</var>shall transfer the balance in the homestead credit state refund transition reserve account <br/>
<a id="pl.10.3"></a><var>10.3</var>to the general fund.<br/>
<a id="pl.10.4"></a><var>10.4</var>    Subd. 4. <b>Expiration date.</b> This section expires July 2, 2009.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.10.5"></a><var>10.5</var>    Sec. 10. <b>REPEALER.</b><br/>
<a id="pl.10.6"></a><var>10.6</var>Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, are repealed.<br/>
<a id="pl.10.7"></a><var>10.7</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on property taxes <br/>
<a id="pl.10.8"></a><var>10.8</var>payable in 2008 and later.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.10.11"></a><var>10.11</var>    Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:<br/>
<a id="pl.10.12"></a><var>10.12</var>    Subd. 4. <b>Debt service equalization revenue.</b> (a) The debt service equalization <br/>
<a id="pl.10.13"></a><var>10.13</var>revenue of a district equals the sum of the first tier debt service equalization revenue and <br/>
<a id="pl.10.14"></a><var>10.14</var>the second tier debt service equalization revenue.<br/>
<a id="pl.10.15"></a><var>10.15</var>    (b) The first tier debt service equalization revenue of a district equals the greater of <br/>
<a id="pl.10.16"></a><var>10.16</var>zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent <br/>
<a id="pl.10.17"></a><var>10.17</var>times the adjusted debt service net tax capacity of the district minus the second tier debt <br/>
<a id="pl.10.18"></a><var>10.18</var>service equalization revenue of the district.<br/>
<a id="pl.10.19"></a><var>10.19</var>    (c) The second tier debt service equalization revenue of a district equals the greater <br/>
<a id="pl.10.20"></a><var>10.20</var>of zero or the eligible debt service revenue, excluding alternative facilities levies under <br/>
<a id="pl.10.21"></a><var>10.21</var>section 
<statute_ref>123B.59, subdivision 5</statute_ref>, minus the amount raised by a levy of 25 percent times the <br/>
<a id="pl.10.22"></a><var>10.22</var>adjusted net tax capacity of the district. <br/>
<a id="pl.10.23"></a><var>10.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2009.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.10.24"></a><var>10.24</var>    Sec. 2. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:<br/>
<a id="pl.10.25"></a><var>10.25</var>    Subd. 5. <b>Equalized debt service levy.</b> (a) The equalized debt service levy of a <br/>
<a id="pl.10.26"></a><var>10.26</var>district equals the sum of the first tier equalized debt service levy and the second tier <br/>
<a id="pl.10.27"></a><var>10.27</var>equalized debt service levy.<br/>
<a id="pl.10.28"></a><var>10.28</var>    (b) A district's first tier equalized debt service levy equals the district's first tier debt <br/>
<a id="pl.10.29"></a><var>10.29</var>service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.10.30"></a><var>10.30</var>    (1) the quotient derived by dividing the adjusted debt service net tax capacity of the <br/>
<a id="pl.10.31"></a><var>10.31</var>district for the year before the year the levy is certified by the adjusted pupil units in the <br/>
<a id="pl.10.32"></a><var>10.32</var>district for the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.11.1"></a><var>11.1</var>    (2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.<br/>
<a id="pl.11.2"></a><var>11.2</var>    (c) A district's second tier equalized debt service levy equals the district's second tier <br/>
<a id="pl.11.3"></a><var>11.3</var>debt service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.11.4"></a><var>11.4</var>    (1) the quotient derived by dividing the adjusted net tax capacity of the district for <br/>
<a id="pl.11.5"></a><var>11.5</var>the year before the year the levy is certified by the adjusted pupil units in the district for <br/>
<a id="pl.11.6"></a><var>11.6</var>the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.11.7"></a><var>11.7</var>    (2) $8,000.<br/>
<a id="pl.11.8"></a><var>11.8</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2009.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.11.9"></a><var>11.9</var>    Sec. 3. Minnesota Statutes 2006, section 123B.54, is amended to read:<br/>
<a id="pl.11.10"></a><var>11.10</var><b>123B.54 DEBT SERVICE </b><b>AND SCHOOL BOND AGRICULTURAL CREDIT </b><br/>
<a id="pl.11.11"></a><var>11.11</var><b>APPROPRIATION.</b><br/>
<a id="pl.11.12"></a><var>11.12</var>    (a) $21,624,000 $14,813,000 in fiscal year 2008 and $20,403,000, $26,100,000 in <br/>
<a id="pl.11.13"></a><var>11.13</var>fiscal year 2009, $29,816,000 in fiscal year 2010, and $30,538,000 in fiscal year 2011 and <br/>
<a id="pl.11.14"></a><var>11.14</var>later are appropriated from the general fund to the commissioner of education for payment <br/>
<a id="pl.11.15"></a><var>11.15</var>of debt service equalization aid under section 
         <statute_ref>123B.53</statute_ref>.<br/>
<a id="pl.11.16"></a><var>11.16</var>    (b) $16,200,000 in fiscal year 2009, $18,531,000 in fiscal year 2010, and <br/>
<a id="pl.11.17"></a><var>11.17</var>$19,242,000 in fiscal year 2011 and each year thereafter are appropriated from the general <br/>
<a id="pl.11.18"></a><var>11.18</var>fund to the commissioner of education for payment of school bond agricultural credit aid <br/>
<a id="pl.11.19"></a><var>11.19</var>under section 123B.555.<br/>
<a id="pl.11.20"></a><var>11.20</var>    (b) (c) The appropriations in paragraph paragraphs (a) and (b) must be reduced by <br/>
<a id="pl.11.21"></a><var>11.21</var>the amount of any money specifically appropriated for the same purpose in any year <br/>
<a id="pl.11.22"></a><var>11.22</var>from any state fund.<br/>
<a id="pl.11.23"></a><var>11.23</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2009.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.11.24"></a><var>11.24</var>    Sec. 4. <b>[123B.555] SCHOOL BOND AGRICULTURAL CREDIT.</b><br/>
<a id="pl.11.25"></a><var>11.25</var>    Subdivision 1. <b>Eligibility.</b> All class 2 property under section 273.13, subdivision 23, <br/>
<a id="pl.11.26"></a><var>11.26</var>except for (1) property consisting of the house, garage, and immediately surrounding one <br/>
<a id="pl.11.27"></a><var>11.27</var>acre of land of an agricultural homestead, and (2) property classified under section 273.13, <br/>
<a id="pl.11.28"></a><var>11.28</var>subdivision 23, paragraph (b), clause (4), is eligible to receive the credit under this section.<br/>
<a id="pl.11.29"></a><var>11.29</var>    Subd. 2. <b>Credit amount.</b> For each qualifying property, the school bond agricultural <br/>
<a id="pl.11.30"></a><var>11.30</var>credit is equal to 36 percent of the property's eligible net tax capacity multiplied by the <br/>
<a id="pl.11.31"></a><var>11.31</var>school debt tax rate determined under section 275.08, subdivision 1b.<br/>
<a id="pl.11.32"></a><var>11.32</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.11.33"></a><var>11.33</var>reductions allowed under this section within the county for each taxes payable year and <br/>
<a id="pl.12.1"></a><var>12.1</var>shall certify that amount to the commissioner of revenue as a part of the abstracts of tax <br/>
<a id="pl.12.2"></a><var>12.2</var>lists submitted under section 275.29. Any prior year adjustments shall also be certified on <br/>
<a id="pl.12.3"></a><var>12.3</var>the abstracts of tax lists. The commissioner shall review the certifications for accuracy, <br/>
<a id="pl.12.4"></a><var>12.4</var>and may make such changes as are deemed necessary, or return the certification to the <br/>
<a id="pl.12.5"></a><var>12.5</var>county auditor for correction. The credit under this section must be used to reduce the <br/>
<a id="pl.12.6"></a><var>12.6</var>school district net tax capacity-based property tax as provided in section 273.1393.<br/>
<a id="pl.12.7"></a><var>12.7</var>    Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br/>
<a id="pl.12.8"></a><var>12.8</var>reductions granted under this section for each taxes payable year within each school <br/>
<a id="pl.12.9"></a><var>12.9</var>district to the commissioner of education, who shall pay the reimbursement amounts to <br/>
<a id="pl.12.10"></a><var>12.10</var>each school district as provided in section 273.1392.<br/>
<a id="pl.12.11"></a><var>12.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.12.12"></a><var>12.12</var>    Sec. 5. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision <br/>
<a id="pl.12.13"></a><var>12.13</var>to read:<br/>
<a id="pl.12.14"></a><var>12.14</var>    Subd. 2a. <b>Statewide adjusted net tax capacity equalizing factor.</b> The statewide <br/>
<a id="pl.12.15"></a><var>12.15</var>adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total <br/>
<a id="pl.12.16"></a><var>12.16</var>adjusted  net tax capacity of all school districts in the state for the year before the year <br/>
<a id="pl.12.17"></a><var>12.17</var>the levy is certified by the total number of adjusted pupil units in the state for the fiscal <br/>
<a id="pl.12.18"></a><var>12.18</var>year preceding the year the levy is certified.<br/>
<a id="pl.12.19"></a><var>12.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.12.20"></a><var>12.20</var>    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:<br/>
<a id="pl.12.21"></a><var>12.21</var>    Subd. 13a. <b>Operating capital levy.</b> To obtain operating capital revenue for fiscal <br/>
<a id="pl.12.22"></a><var>12.22</var>year 2007 and later, a district may levy an amount not more than the product of its <br/>
<a id="pl.12.23"></a><var>12.23</var>operating capital revenue for the fiscal year times the lesser of one or the ratio of its <br/>
<a id="pl.12.24"></a><var>12.24</var>adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital <br/>
<a id="pl.12.25"></a><var>12.25</var>equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year <br/>
<a id="pl.12.26"></a><var>12.26</var>2006, and $10,700 for fiscal year years 2007 and later 2008, and $21,250 for fiscal year <br/>
<a id="pl.12.27"></a><var>12.27</var>2009 and later.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.12.28"></a><var>12.28</var>    Sec. 7. Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:<br/>
<a id="pl.12.29"></a><var>12.29</var>    Subd. 6. <b>Referendum equalization levy.</b> (a) For fiscal year 2003 and later, <br/>
<a id="pl.12.30"></a><var>12.30</var>A district's referendum equalization levy equals the sum of the first tier referendum <br/>
<a id="pl.12.31"></a><var>12.31</var>equalization levy and the second tier referendum equalization levy.<br/>
<a id="pl.13.1"></a><var>13.1</var>    (b) A district's first tier referendum equalization levy equals the district's first tier <br/>
<a id="pl.13.2"></a><var>13.2</var>referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.13.3"></a><var>13.3</var>referendum market value per resident marginal cost pupil unit to $476,000 111 percent of <br/>
<a id="pl.13.4"></a><var>13.4</var>the referendum market value equalizing factor.<br/>
<a id="pl.13.5"></a><var>13.5</var>    (c) A district's second tier referendum equalization levy equals the district's second <br/>
<a id="pl.13.6"></a><var>13.6</var>tier referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.13.7"></a><var>13.7</var>referendum market value per resident marginal cost pupil unit to $270,000 60 percent of <br/>
<a id="pl.13.8"></a><var>13.8</var>the referendum market value equalizing factor.<br/>
<a id="pl.13.9"></a><var>13.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.13.10"></a><var>13.10</var>    Sec. 8. Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision <br/>
<a id="pl.13.11"></a><var>13.11</var>to read:<br/>
<a id="pl.13.12"></a><var>13.12</var>    Subd. 17. <b>Adjusted debt service net tax capacity.</b> To calculate each district's <br/>
<a id="pl.13.13"></a><var>13.13</var>adjusted debt service net tax capacity, the commissioner of revenue must recompute <br/>
<a id="pl.13.14"></a><var>13.14</var>the amounts in this section using an alternative sales ratio comparing the sales price to <br/>
<a id="pl.13.15"></a><var>13.15</var>the estimated market value of the property.<br/>
<a id="pl.13.16"></a><var>13.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.13.17"></a><var>13.17</var>computing taxes payable in 2008.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.13.18"></a><var>13.18</var>    Sec. 9. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:<br/>
<a id="pl.13.19"></a><var>13.19</var>    Subd. 1a. <b>Limited market value.</b> In the case of all property classified as <br/>
<a id="pl.13.20"></a><var>13.20</var>agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, <br/>
<a id="pl.13.21"></a><var>13.21</var>or noncommercial seasonal residential recreational, the assessor shall compare the value <br/>
<a id="pl.13.22"></a><var>13.22</var>with the taxable portion of the value determined in the preceding assessment.<br/>
<a id="pl.13.23"></a><var>13.23</var>    For assessment years 2004, 2005, and 2006, the amount of the increase shall not <br/>
<a id="pl.13.24"></a><var>13.24</var>exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 <br/>
<a id="pl.13.25"></a><var>13.25</var>percent of the difference between the current assessment and the preceding assessment.<br/>
<a id="pl.13.26"></a><var>13.26</var>    For assessment year 2007, the amount of the increase shall not exceed the greater of <br/>
<a id="pl.13.27"></a><var>13.27</var>(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference <br/>
<a id="pl.13.28"></a><var>13.28</var>between the current assessment and the preceding assessment.<br/>
<a id="pl.13.29"></a><var>13.29</var>    For assessment year 2008, the amount of the increase shall not exceed the greater of <br/>
<a id="pl.13.30"></a><var>13.30</var>(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference <br/>
<a id="pl.13.31"></a><var>13.31</var>between the current assessment and the preceding assessment.<br/>
<a id="pl.14.1"></a><var>14.1</var>    This limitation shall not apply to increases in value due to improvements. For <br/>
<a id="pl.14.2"></a><var>14.2</var>purposes of this subdivision, the term "assessment" means the value prior to any exclusion <br/>
<a id="pl.14.3"></a><var>14.3</var>under subdivision 16.<br/>
<a id="pl.14.4"></a><var>14.4</var>    The provisions of this subdivision shall be in effect through assessment year 2008 <br/>
<a id="pl.14.5"></a><var>14.5</var>as provided in this subdivision.<br/>
<a id="pl.14.6"></a><var>14.6</var>    For purposes of the assessment/sales ratio study conducted under section 
         <statute_ref>127A.48</statute_ref>, <br/>
<a id="pl.14.7"></a><var>14.7</var>and the computation of state aids paid under chapters 122A, 123A, 123B, excluding <br/>
<a id="pl.14.8"></a><var>14.8</var>section 
<statute_ref>123B.53</statute_ref>, 124D, 125A, 126C, 127A, and 477A, market values and net tax <br/>
<a id="pl.14.9"></a><var>14.9</var>capacities determined under this subdivision and subdivision 16, shall be used.<br/>
<a id="pl.14.10"></a><var>14.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.14.11"></a><var>14.11</var>computing taxes payable in 2008.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.14.12"></a><var>14.12</var>    Sec. 10. Minnesota Statutes 2006, section 273.1393, is amended to read:<br/>
<a id="pl.14.13"></a><var>14.13</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.14.14"></a><var>14.14</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.14.15"></a><var>14.15</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.14.16"></a><var>14.16</var>    (1) disaster credit as provided in section 
         <statute_ref>273.123</statute_ref>; <br/>
<a id="pl.14.17"></a><var>14.17</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>; <br/>
<a id="pl.14.18"></a><var>14.18</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>; <br/>
<a id="pl.14.19"></a><var>14.19</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>; <br/>
<a id="pl.14.20"></a><var>14.20</var>    (5) disparity reduction credit;<br/>
<a id="pl.14.21"></a><var>14.21</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>; <br/>
<a id="pl.14.22"></a><var>14.22</var>    (7) homestead and agricultural credits as provided in section 
         <statute_ref>273.1384</statute_ref>; <br/>
<a id="pl.14.23"></a><var>14.23</var>    (8) school bond agricultural credit as provided in section 123B.555;<br/>
<a id="pl.14.24"></a><var>14.24</var>    (8) (9) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>; and <br/>
<a id="pl.14.25"></a><var>14.25</var>    (9) (10) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>. <br/>
<a id="pl.14.26"></a><var>14.26</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.14.27"></a><var>14.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008. <br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.14.28"></a><var>14.28</var>    Sec. 11. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.14.29"></a><var>14.29</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.14.30"></a><var>14.30</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br/>
<a id="pl.14.31"></a><var>14.31</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br/>
<a id="pl.14.32"></a><var>14.32</var>year's assessment roll, a notice of proposed property taxes.<br/>
<a id="pl.14.33"></a><var>14.33</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.15.1"></a><var>15.1</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.15.2"></a><var>15.2</var>each taxing authority proposes to collect for taxes payable the following year. In the case <br/>
<a id="pl.15.3"></a><var>15.3</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.15.4"></a><var>15.4</var>tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, <br/>
<a id="pl.15.5"></a><var>15.5</var>the notice must clearly state that each taxing authority, including regional library districts <br/>
<a id="pl.15.6"></a><var>15.6</var>established under section 
         <statute_ref>134.201</statute_ref>, and including the metropolitan taxing districts as <br/>
<a id="pl.15.7"></a><var>15.7</var>defined in paragraph (i), but excluding all other special taxing districts and towns, will <br/>
<a id="pl.15.8"></a><var>15.8</var>hold a public meeting to receive public testimony on the proposed budget and proposed or <br/>
<a id="pl.15.9"></a><var>15.9</var>final property tax levy, or, in case of a school district, on the current budget and proposed <br/>
<a id="pl.15.10"></a><var>15.10</var>property tax levy. It must clearly state the time and place of each taxing authority's <br/>
<a id="pl.15.11"></a><var>15.11</var>meeting, a telephone number for the taxing authority that taxpayers may call if they have <br/>
<a id="pl.15.12"></a><var>15.12</var>questions related to the notice, and an address where comments will be received by mail.<br/>
<a id="pl.15.13"></a><var>15.13</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.15.14"></a><var>15.14</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.15.15"></a><var>15.15</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.15.16"></a><var>15.16</var>current year as each appears in the records of the county assessor on November 1 of the <br/>
<a id="pl.15.17"></a><var>15.17</var>current year; and, in the case of residential property, whether the property is classified as <br/>
<a id="pl.15.18"></a><var>15.18</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br/>
<a id="pl.15.19"></a><var>15.19</var>which the market values apply and that the values are final values;<br/>
<a id="pl.15.20"></a><var>15.20</var>    (2) the items listed below, shown separately by county, city or town, and state <br/>
<a id="pl.15.21"></a><var>15.21</var>general tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref> <br/>
<a id="pl.15.22"></a><var>15.22</var>and the school bond agricultural credit under section 123B.555, voter approved school <br/>
<a id="pl.15.23"></a><var>15.23</var>levy, other local school levy, and the sum of the special taxing districts, and as a total <br/>
<a id="pl.15.24"></a><var>15.24</var>of all taxing authorities:<br/>
<a id="pl.15.25"></a><var>15.25</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.15.26"></a><var>15.26</var>    (ii) the proposed tax amount.<br/>
<a id="pl.15.27"></a><var>15.27</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.15.28"></a><var>15.28</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.15.29"></a><var>15.29</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.15.30"></a><var>15.30</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.15.31"></a><var>15.31</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.15.32"></a><var>15.32</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.15.33"></a><var>15.33</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.15.34"></a><var>15.34</var>note next to the school district's proposed amount that a referendum is pending and that, <br/>
<a id="pl.15.35"></a><var>15.35</var>if approved by the voters, the tax amount may be higher than shown on the notice. In <br/>
<a id="pl.15.36"></a><var>15.36</var>the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the <br/>
<a id="pl.16.1"></a><var>16.1</var>levy for Minneapolis Park and Recreation shall be listed separately from the remaining <br/>
<a id="pl.16.2"></a><var>16.2</var>amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul <br/>
<a id="pl.16.3"></a><var>16.3</var>Library Agency must be listed separately from the remaining amount of the city's levy. <br/>
<a id="pl.16.4"></a><var>16.4</var>In the case of Ramsey County, any amount levied under section 
         <statute_ref>134.07</statute_ref> may be listed <br/>
<a id="pl.16.5"></a><var>16.5</var>separately from the remaining amount of the county's levy. In the case of a parcel where <br/>
<a id="pl.16.6"></a><var>16.6</var>tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, <br/>
<a id="pl.16.7"></a><var>16.7</var>the proposed tax levy on the captured value or the proposed tax levy on the tax capacity <br/>
<a id="pl.16.8"></a><var>16.8</var>subject to the areawide tax must each be stated separately and not included in the sum of <br/>
<a id="pl.16.9"></a><var>16.9</var>the special taxing districts; and<br/>
<a id="pl.16.10"></a><var>16.10</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.16.11"></a><var>16.11</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.16.12"></a><var>16.12</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.16.13"></a><var>16.13</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.16.14"></a><var>16.14</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.16.16"></a><var>16.16</var>the following:<br/>
<a id="pl.16.17"></a><var>16.17</var>    (1) special assessments;<br/>
<a id="pl.16.18"></a><var>16.18</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.16.19"></a><var>16.19</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.16.20"></a><var>16.20</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.16.21"></a><var>16.21</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.16.22"></a><var>16.22</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.16.23"></a><var>16.23</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.16.24"></a><var>16.24</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.16.25"></a><var>16.25</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.16.26"></a><var>16.26</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.16.27"></a><var>16.27</var>reductions for contamination.<br/>
<a id="pl.16.28"></a><var>16.28</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.16.29"></a><var>16.29</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.16.30"></a><var>16.30</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.16.31"></a><var>16.31</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.16.32"></a><var>16.32</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.16.33"></a><var>16.33</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.16.34"></a><var>16.34</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.16.35"></a><var>16.35</var>in the following year.<br/>
<a id="pl.17.1"></a><var>17.1</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.17.2"></a><var>17.2</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.17.3"></a><var>17.3</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.17.4"></a><var>17.4</var>renter, or lessee; or<br/>
<a id="pl.17.5"></a><var>17.5</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.17.6"></a><var>17.6</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.17.7"></a><var>17.7</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br/>
<a id="pl.17.8"></a><var>17.8</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br/>
<a id="pl.17.9"></a><var>17.9</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.17.10"></a><var>17.10</var>    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special <br/>
<a id="pl.17.11"></a><var>17.11</var>taxing districts" means the following taxing districts in the seven-county metropolitan area <br/>
<a id="pl.17.12"></a><var>17.12</var>that levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.17.13"></a><var>17.13</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.17.14"></a><var>17.14</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.17.15"></a><var>17.15</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.17.16"></a><var>17.16</var>and<br/>
<a id="pl.17.17"></a><var>17.17</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.17.18"></a><var>17.18</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.17.19"></a><var>17.19</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.17.20"></a><var>17.20</var>398A shall be included with the appropriate county's levy and shall be discussed at that <br/>
<a id="pl.17.21"></a><var>17.21</var>county's public hearing.<br/>
<a id="pl.17.22"></a><var>17.22</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.17.23"></a><var>17.23</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.17.24"></a><var>17.24</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.17.25"></a><var>17.25</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.17.26"></a><var>17.26</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.17.27"></a><var>17.27</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.17.28"></a><var>17.28</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.17.29"></a><var>17.29</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.17.30"></a><var>17.30</var>local government purchases;<br/>
<a id="pl.17.31"></a><var>17.31</var>    (2) population growth and decline;<br/>
<a id="pl.17.32"></a><var>17.32</var>    (3) state or federal government action; and<br/>
<a id="pl.17.33"></a><var>17.33</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.17.34"></a><var>17.34</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.17.35"></a><var>17.35</var>include.<br/>
<a id="pl.18.1"></a><var>18.1</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.18.2"></a><var>18.2</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.18.3"></a><var>18.3</var>opportunity for comment.<br/>
<a id="pl.18.4"></a><var>18.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008. <br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.18.5"></a><var>18.5</var>    Sec. 12. Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read:<br/>
<a id="pl.18.6"></a><var>18.6</var>    Subd. 2. <b>School district </b><b>in more than one county</b><b> levies; special requirements</b><b>.</b> (a) <br/>
<a id="pl.18.7"></a><var>18.7</var>In school districts lying in more than one county, the clerk shall certify the tax levied to the <br/>
<a id="pl.18.8"></a><var>18.8</var>auditor of the county in which the administrative offices of the school district are located.<br/>
<a id="pl.18.9"></a><var>18.9</var>    (b) The clerk shall identify the portion of the school district levy that is levied for the <br/>
<a id="pl.18.10"></a><var>18.10</var>purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time <br/>
<a id="pl.18.11"></a><var>18.11</var>that the levy is certified under this section.<br/>
<a id="pl.18.12"></a><var>18.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008. <br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.18.13"></a><var>18.13</var>    Sec. 13. Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read:<br/>
<a id="pl.18.14"></a><var>18.14</var>    Subd. 1b. <b>Computation of tax rates.</b> (a) The amounts certified to be levied against <br/>
<a id="pl.18.15"></a><var>18.15</var>net tax capacity under section 
         <statute_ref>275.07</statute_ref> by an individual local government unit shall be <br/>
<a id="pl.18.16"></a><var>18.16</var>divided by the total net tax capacity of all taxable properties within the local government <br/>
<a id="pl.18.17"></a><var>18.17</var>unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, <br/>
<a id="pl.18.18"></a><var>18.18</var>multiplied by each property's net tax capacity shall be each property's net tax capacity tax <br/>
<a id="pl.18.19"></a><var>18.19</var>for that local government unit before reduction by any credits. <br/>
<a id="pl.18.20"></a><var>18.20</var>    (b) The auditor shall also determine the school debt tax rate for each school district <br/>
<a id="pl.18.21"></a><var>18.21</var>equal to the school debt levy certified under section 275.07 divided by the total net tax <br/>
<a id="pl.18.22"></a><var>18.22</var>capacity of all taxable property within the district.<br/>
<a id="pl.18.23"></a><var>18.23</var>    (c) Any amount certified to the county auditor to be levied against market value shall <br/>
<a id="pl.18.24"></a><var>18.24</var>be divided by the total referendum market value of all taxable properties within the taxing <br/>
<a id="pl.18.25"></a><var>18.25</var>district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by <br/>
<a id="pl.18.26"></a><var>18.26</var>each property's referendum market value shall be each property's new referendum tax <br/>
<a id="pl.18.27"></a><var>18.27</var>before reduction by any credits. For the purposes of this subdivision, "referendum market <br/>
<a id="pl.18.28"></a><var>18.28</var>value" means the market value as defined in section 
         <statute_ref>126C.01, subdivision 3</statute_ref>. <br/>
<a id="pl.18.29"></a><var>18.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.19.3"></a><var>19.3</var>    Section 1. Minnesota Statutes 2006, section 290.06, subdivision 2c, is amended to read:<br/>
<a id="pl.19.4"></a><var>19.4</var>    Subd. 2c. <b>Schedules of rates for individuals, estates, and trusts.</b> (a) The income <br/>
<a id="pl.19.5"></a><var>19.5</var>taxes imposed by this chapter upon married individuals filing joint returns and surviving <br/>
<a id="pl.19.6"></a><var>19.6</var>spouses as defined in section 2(a) of the Internal Revenue Code must be computed by <br/>
<a id="pl.19.7"></a><var>19.7</var>applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.19.8"></a><var>19.8</var>    (1) On the first $25,680 $31,150, 
         <statute_ref>5.35</statute_ref> percent;<br/>
<a id="pl.19.9"></a><var>19.9</var>    (2) On all over $25,680 $31,150, but not over $102,030 $123,750, 
         <statute_ref>7.05</statute_ref> percent;<br/>
<a id="pl.19.10"></a><var>19.10</var>    (3) On all over $102,030 $123,750, but not over $400,000, 
         <statute_ref>7.85</statute_ref> percent;<br/>
<a id="pl.19.11"></a><var>19.11</var>    (4) On all over $400,000, 9 percent.<br/>
<a id="pl.19.12"></a><var>19.12</var>    Married individuals filing separate returns, estates, and trusts must compute their <br/>
<a id="pl.19.13"></a><var>19.13</var>income tax by applying the above rates to their taxable income, except that the income <br/>
<a id="pl.19.14"></a><var>19.14</var>brackets will be one-half of the above amounts.<br/>
<a id="pl.19.15"></a><var>19.15</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.19.16"></a><var>19.16</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.19.17"></a><var>19.17</var>    (1) On the first $17,570 $21,310, 
         <statute_ref>5.35</statute_ref> percent;<br/>
<a id="pl.19.18"></a><var>19.18</var>    (2) On all over $17,570 $21,310, but not over $57,710 $69,990, 
         <statute_ref>7.05</statute_ref> percent;<br/>
<a id="pl.19.19"></a><var>19.19</var>    (3) On all over $57,710 $69,990, but not over $226,230, 
         <statute_ref>7.85</statute_ref> percent;<br/>
<a id="pl.19.20"></a><var>19.20</var>    (4) On all over $226,230, 9 percent.<br/>
<a id="pl.19.21"></a><var>19.21</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying <br/>
<a id="pl.19.22"></a><var>19.22</var>as a head of household as defined in section 2(b) of the Internal Revenue Code must be <br/>
<a id="pl.19.23"></a><var>19.23</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.19.24"></a><var>19.24</var>    (1) On the first $21,630 $26,230, 
         <statute_ref>5.35</statute_ref> percent;<br/>
<a id="pl.19.25"></a><var>19.25</var>    (2) On all over $21,630 $26,230, but not over $86,910 $105,410, 
         <statute_ref>7.05</statute_ref> percent;<br/>
<a id="pl.19.26"></a><var>19.26</var>    (3) On all over $86,910 $105,410, but not over $340,720, 
         <statute_ref>7.85</statute_ref> percent;<br/>
<a id="pl.19.27"></a><var>19.27</var>    (4) On all over $340,720, 9 percent.<br/>
<a id="pl.19.28"></a><var>19.28</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the <br/>
<a id="pl.19.29"></a><var>19.29</var>tax of any individual taxpayer whose taxable net income for the taxable year is less than <br/>
<a id="pl.19.30"></a><var>19.30</var>an amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.19.31"></a><var>19.31</var>prepared and issued by the commissioner of revenue based on income brackets of not <br/>
<a id="pl.19.32"></a><var>19.32</var>more than $100. The amount of tax for each bracket shall be computed at the rates set <br/>
<a id="pl.19.33"></a><var>19.33</var>forth in this subdivision, provided that the commissioner may disregard a fractional part of <br/>
<a id="pl.19.34"></a><var>19.34</var>a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.20.1"></a><var>20.1</var>    (e) An individual who is not a Minnesota resident for the entire year must compute <br/>
<a id="pl.20.2"></a><var>20.2</var>the individual's Minnesota income tax as provided in this subdivision. After the <br/>
<a id="pl.20.3"></a><var>20.3</var>application of the nonrefundable credits provided in this chapter, the tax liability must <br/>
<a id="pl.20.4"></a><var>20.4</var>then be multiplied by a fraction in which:<br/>
<a id="pl.20.5"></a><var>20.5</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income <br/>
<a id="pl.20.6"></a><var>20.6</var>as defined in section 62 of the Internal Revenue Code and increased by the additions <br/>
<a id="pl.20.7"></a><var>20.7</var>required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), and (9), <br/>
<a id="pl.20.8"></a><var>20.8</var>and reduced by the Minnesota assignable portion of the subtraction for United States <br/>
<a id="pl.20.9"></a><var>20.9</var>government interest under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1), and the subtractions <br/>
<a id="pl.20.10"></a><var>20.10</var>under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (9), (10), (14), (15), and (16), after applying <br/>
<a id="pl.20.11"></a><var>20.11</var>the allocation and assignability provisions of section 
         <statute_ref>290.081</statute_ref>, clause (a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.20.12"></a><var>20.12</var>    (2) the denominator is the individual's federal adjusted gross income as defined in <br/>
<a id="pl.20.13"></a><var>20.13</var>section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in <br/>
<a id="pl.20.14"></a><var>20.14</var>section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), and (9), and reduced by the <br/>
<a id="pl.20.15"></a><var>20.15</var>amounts specified in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (1), (9), (10), (14), (15), <br/>
<a id="pl.20.16"></a><var>20.16</var>and (16).<br/>
<a id="pl.20.17"></a><var>20.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.20.18"></a><var>20.18</var>December 31, 2006.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.20.19"></a><var>20.19</var>    Sec. 2. Minnesota Statutes 2006, section 290.06, subdivision 2d, is amended to read:<br/>
<a id="pl.20.20"></a><var>20.20</var>    Subd. 2d. <b>Inflation adjustment of brackets.</b> (a) For taxable years beginning after <br/>
<a id="pl.20.21"></a><var>20.21</var>December 31, 2000 2007, the minimum and maximum dollar amounts for each rate <br/>
<a id="pl.20.22"></a><var>20.22</var>bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the <br/>
<a id="pl.20.23"></a><var>20.23</var>percentage determined under paragraph (b). For the purpose of making the adjustment as <br/>
<a id="pl.20.24"></a><var>20.24</var>provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the <br/>
<a id="pl.20.25"></a><var>20.25</var>rate brackets as they existed for taxable years beginning after December 31, 1999 2006, <br/>
<a id="pl.20.26"></a><var>20.26</var>and before January 1, 2001 2008. The rate applicable to any rate bracket must not be <br/>
<a id="pl.20.27"></a><var>20.27</var>changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes <br/>
<a id="pl.20.28"></a><var>20.28</var>in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 <br/>
<a id="pl.20.29"></a><var>20.29</var>amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.<br/>
<a id="pl.20.30"></a><var>20.30</var>    (b) The commissioner shall adjust the rate brackets and by the percentage determined <br/>
<a id="pl.20.31"></a><var>20.31</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in <br/>
<a id="pl.20.32"></a><var>20.32</var>section 1(f)(3)(B) the word "1999" "2006" shall be substituted for the word "1992." For <br/>
<a id="pl.20.33"></a><var>20.33</var>2001 2008, the commissioner shall then determine the percent change from the 12 months <br/>
<a id="pl.20.34"></a><var>20.34</var>ending on August 31, 1999 2006, to the 12 months ending on August 31, 2000 2007, and <br/>
<a id="pl.20.35"></a><var>20.35</var>in each subsequent year, from the 12 months ending on August 31, 1999 2006, to the 12 <br/>
<a id="pl.21.1"></a><var>21.1</var>months ending on August 31 of the year preceding the taxable year. The determination of <br/>
<a id="pl.21.2"></a><var>21.2</var>the commissioner pursuant to this subdivision shall not be considered a "rule" and shall <br/>
<a id="pl.21.3"></a><var>21.3</var>not be subject to the Administrative Procedure Act contained in chapter 14.<br/>
<a id="pl.21.4"></a><var>21.4</var>    No later than December 15 of each year, the commissioner shall announce the <br/>
<a id="pl.21.5"></a><var>21.5</var>specific percentage that will be used to adjust the tax rate brackets.<br/>
<a id="pl.21.6"></a><var>21.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.21.7"></a><var>21.7</var>December 31, 2006.<br/>