HF 3

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

Posted on 12/22/2009 12:37 p.m.

1.1A bill for an act 1.2relating to taxation; providing property tax relief; providing for school aids 1.3and levies; providing aids to local governments; providing for property tax 1.4exemptions, credits, refunds, and deferrals; changing property tax provisions 1.5relating to sales ratios, homesteads, valuation, classification, class rates, truth in 1.6taxation, payment, collection, appeals, and abatement; providing for special 1.7assessments deferral and payments in lieu of taxes; limiting authority to 1.8impose local sales taxes; authorizing certain local taxes; providing for studies; 1.9appropriating money;amending Minnesota Statutes 2006, sections 97A.061, 1.10subdivision 2; 123B.53, subdivisions 4, 5; 126C.01, by adding subdivisions; 1.11126C.10, subdivision 13a; 126C.17, subdivision 6; 127A.48, subdivision 3, by 1.12adding a subdivision; 272.02, by adding subdivisions; 272.115, subdivision 1.131; 273.11, subdivision 1a, by adding a subdivision; 273.111, by adding a 1.14subdivision; 273.124, subdivisions 1, 14; 273.128, subdivision 1, by adding a 1.15subdivision; 273.13, subdivisions 22, 23, 24, 25, 33, by adding a subdivision; 1.16273.1384, subdivision 1; 273.1393; 275.065, subdivision 3, by adding 1.17subdivisions; 275.07, subdivision 2; 275.08, subdivision 1b; 276.04, subdivision 1.182; 278.05, subdivision 6; 279.01, by adding a subdivision; 279.37, subdivision 1.191a; 289A.08, subdivision 13; 289A.40, subdivision 4; 290A.03, subdivision 13; 1.20290A.04, subdivisions 2a, 2h, 4, by adding a subdivision; 290B.03, subdivisions 1.211, 2; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 290B.07; 297A.99, 1.22subdivision 1; 298.75, by adding a subdivision; 435.193; 469.1813, subdivision 1.231a; 473F.01, subdivision 2; 473F.08, subdivisions 5, 7a; 477A.011, subdivisions 1.2434, 36; 477A.0124, subdivision 5; 477A.013, subdivisions 8, 9, by adding a 1.25subdivision; 477A.03; Laws 1980, chapter 511, section 1, subdivision 2, as 1.26amended; Laws 2005, First Special Session chapter 3, article 5, section 39; 1.27proposing coding for new law in Minnesota Statutes, chapter 123B; proposing 1.28coding for new law as Minnesota Statutes, chapter 290D; repealing Minnesota 1.29Statutes 2006, sections 290A.04, subdivision 2; 473F.08, subdivision 3a. 1.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1ARTICLE 1 2.2HOMESTEAD CREDIT STATE REFUND 2.3HOMEOWNERS AND RENTERS 2.4    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to 2.5read: 2.6    Subdivision 1. Residential homestead market value credit. new text begin (a) new text end Each county 2.7auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead 2.8property within the county equal to 0.4 percent of the first $76,000 of market value 2.9of the property minus .09 percent of the market value in excess of $76,000. The credit 2.10amount may not be less than zero. In the case of an agricultural or resort homestead, only 2.11the market value of the house, garage, and immediately surrounding one acre of land is 2.12eligible in determining the property's homestead credit. In the case of a property that 2.13is classified as part homestead and part nonhomestead, (i) the credit shall apply only 2.14to the homestead portion of the property, but (ii) if a portion of a property is classified 2.15as nonhomestead solely because not all the owners occupy the property, not all the 2.16owners have qualifying relatives occupying the property, or solely because not all the 2.17spouses of owners occupy the property, the credit amount shall be initially computed as 2.18if that nonhomestead portion were also in the homestead class and then prorated to the 2.19owner-occupant's percentage of ownership. For the purpose of this section, when an 2.20owner-occupant's spouse does not occupy the property, the percentage of ownership for 2.21the owner-occupant spouse is one-half of the couple's ownership percentage. 2.22     new text begin (b) For property taxes payable in 2008 and thereafter, the county auditor shall new text end 2.23 new text begin determine the amount of the homestead credit under paragraph (a) and this paragraph. new text end 2.24 new text begin The county auditor shall report the amount of the credit to the taxpayer on the property new text end 2.25 new text begin tax statement or in another manner, as authorized by the commissioner of revenue. The new text end 2.26 new text begin amount of the credit allowed for the property taxes payable year is to be computed as the new text end 2.27 new text begin following percentage of the credit amount under paragraph (a): new text end 2.28     new text begin (1) for property taxes payable in 2008, 100 percent; new text end 2.29     new text begin (2) for property taxes payable in 2009, 60 percent; new text end 2.30     new text begin (3) for property taxes payable in 2010, 30 percent; and new text end 2.31     new text begin (4) for property taxes payable in 2011 or thereafter, no credit is allowed. new text end 2.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for property taxes payable new text end 2.33 new text begin in 2008. new text end 3.1    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read: 3.2    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 3.3printing of the tax statements. The commissioner of revenue shall prescribe the form 3.4of the property tax statement and its contents. The statement must contain a tabulated 3.5statement of the dollar amount due to each taxing authority and the amount of the state 3.6tax from the parcel of real property for which a particular tax statement is prepared. The 3.7dollar amounts attributable to the county, the state tax, the voter approved school tax, the 3.8other local school tax, the township or municipality, and the total of the metropolitan 3.9special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must 3.10be separately stated. The amounts due all other special taxing districts, if any, may be 3.11aggregated except that any levies made by the regional rail authorities in the county of 3.12Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 3.13shall be listed on a separate line directly under the appropriate county's levy. If the county 3.14levy under this paragraph includes an amount for a lake improvement district as defined 3.15under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 3.16separately stated from the remaining county levy amount. In the case of Ramsey County, 3.17if the county levy under this paragraph includes an amount for public library service 3.18under section 134.07, the amount attributable for that purpose may be separated from the 3.19remaining county levy amount. The amount of the tax on homesteads qualifying under the 3.20senior citizens' property tax deferral program under chapter 290B is the total amount of 3.21property tax before subtraction of the deferred property tax amount. The amount of the 3.22tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 3.23be separately stated. The dollar amounts, including the dollar amount of any special 3.24assessments, may be rounded to the nearest even whole dollar. For purposes of this section 3.25whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 3.26The amount of market value excluded under section 273.11, subdivision 16, if any, must 3.27also be listed on the tax statement. 3.28    (b) The property tax statements for manufactured homes and sectional structures 3.29taxed as personal property shall contain the same information that is required on the 3.30tax statements for real property. 3.31    (c) Real and personal property tax statements must contain the following information 3.32in the order given in this paragraph. The information must contain the current year tax 3.33information in the right column with the corresponding information for the previous year 3.34in a column on the left: 3.35    (1) the property's estimated market value under section 273.11, subdivision 1; 4.1    (2) the property's taxable market value after reductions under section 273.11, 4.2subdivisions 1a and 16 ; 4.3    (3) the property's gross tax, calculated by adding the property's total property tax to 4.4the sum of the aids enumerated in clause (4); new text begin any items required by the commissioner of new text end 4.5 new text begin revenue under section 273.1384, subdivision 1, paragraph (b); and new text end 4.6    (4) a total of the following aids: 4.7    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, 4.8and 127A; 4.9    (ii) local government aids for cities, towns, and counties under sections to 4.10; and 4.11    (iii) disparity reduction aid under section ; 4.12    (5) for homestead residential and agricultural properties, the credits under section 4.13; 4.14    (6) any credits received under sections ; ; ; ; 4.15273.1398, subdivision 4; ; and , except that the amount of credit received 4.16under section must be separately stated and identified as "taconite tax relief"; and 4.17    (7) new text begin (4) new text end the net tax payable in the manner required in paragraph (a). 4.18    (d) If the county uses envelopes for mailing property tax statements and if the county 4.19agrees, a taxing district may include a notice with the property tax statement notifying 4.20taxpayers when the taxing district will begin its budget deliberations for the current 4.21year, and encouraging taxpayers to attend the hearings. If the county allows notices to 4.22be included in the envelope containing the property tax statement, and if more than 4.23one taxing district relative to a given property decides to include a notice with the tax 4.24statement, the county treasurer or auditor must coordinate the process and may combine 4.25the information on a single announcement. 4.26    The commissioner of revenue shall certify to the county auditor the actual or 4.27estimated aids enumerated in paragraph (c), clause (4), that local governments will receive 4.28in the following year. The commissioner must certify this amount by January 1 of each 4.29year. 4.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 4.31 new text begin thereafter. new text end 4.32    Sec. 3. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read: 4.33    Subd. 13. Property taxes payable. "Property taxes payable" means the property 4.34tax exclusive of special assessments, penalties, and interest payable on a claimant's 4.35homestead after deductions made under sections 273.135, , 273.1391, 273.42, 5.1subdivision 2 , and any other state paid property tax credits in any calendar year, and 5.2after any refund claimed and allowable under section 290A.04, subdivision 2h, that is 5.3first payable in the year that the property tax is payable. new text begin Beginning for property taxes new text end 5.4 new text begin payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must new text end 5.5 new text begin not be deducted in computing property taxes payable. new text end In the case of a claimant who 5.6makes ground lease payments, "property taxes payable" includes the amount of the 5.7payments directly attributable to the property taxes assessed against the parcel on which 5.8the house is located. No apportionment or reduction of the "property taxes payable" shall 5.9be required for the use of a portion of the claimant's homestead for a business purpose if 5.10the claimant does not deduct any business depreciation expenses for the use of a portion 5.11of the homestead in the determination of federal adjusted gross income. For homesteads 5.12which are manufactured homes as defined in section 273.125, subdivision 8, and for 5.13homesteads which are park trailers taxed as manufactured homes under section 168.012, 5.14subdivision 9 , "property taxes payable" shall also include 19 percent of the gross rent paid 5.15in the preceding year for the site on which the homestead is located. When a homestead 5.16is owned by two or more persons as joint tenants or tenants in common, such tenants 5.17shall determine between them which tenant may claim the property taxes payable on the 5.18homestead. If they are unable to agree, the matter shall be referred to the commissioner of 5.19revenue whose decision shall be final. Property taxes are considered payable in the year 5.20prescribed by law for payment of the taxes. 5.21    In the case of a claim relating to "property taxes payable," the claimant must have 5.22owned and occupied the homestead on January 2 of the year in which the tax is payable 5.23and (i) the property must have been classified as homestead property pursuant to section 5.24273.124 , on or before December 15 of the assessment year to which the "property taxes 5.25payable" relate; or (ii) the claimant must provide documentation from the local assessor 5.26that application for homestead classification has been made on or before December 15 5.27of the year in which the "property taxes payable" were payable and that the assessor has 5.28approved the application. 5.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for refund claims based on new text end 5.30 new text begin property taxes payable in 2008. new text end 5.31    Sec. 4. Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read: 5.32    Subd. 2a. Renters. new text begin (a) new text end A claimant whose rent constituting property taxes exceeds 5.33the percentage of the household income stated below must pay an amount equal to the 5.34percent of income shown for the appropriate household income level along with the 5.35percent to be paid by the claimant of the remaining amount of rent constituting property 6.1taxes. The state refund equals the amount of rent constituting property taxes that remain, 6.2up to the maximum state refund amount shown below. 6.3 6.4 Household Income Percent of Income Percent Paid by Claimant Maximum State Refund 6.5 $0 to 3,589 1.0 percent 5 percent $1,190 6.6 new text begin $0 to 4,579 new text end new text begin $1,500 new text end 6.7 3,590 to 4,779 1.0 percent 10 percent $1,190 6.8 new text begin 4,580 to 6,099 new text end new text begin $1,500 new text end 6.9 4,780 to 5,969 1.1 percent 10 percent $1,190 6.10 new text begin 6,100 to 7,619 new text end new text begin $1,500 new text end 6.11 5,970 to 8,369 1.2 percent 10 percent $1,190 6.12 new text begin 7,620 to 10,669 new text end new text begin $1,500 new text end 6.13 8,370 to 10,759 1.3 percent 15 percent $1,190 6.14 new text begin 10,670 to 13,729 new text end new text begin $1,500 new text end 6.15 10,760 to 11,949 1.4 percent 15 percent $1,190 6.16 new text begin 13,730 to 15,239 new text end new text begin $1,500 new text end 6.17 11,950 to 13,139 1.4 percent 20 percent $1,190 6.18 new text begin 15,240 to 16,769 new text end new text begin $1,500 new text end 6.19 13,140 to 15,539 1.5 percent 20 percent $1,190 6.20 new text begin 16,770 to 19,829 new text end new text begin $1,500 new text end 6.21 15,540 to 16,729 1.6 percent 20 percent $1,190 6.22 new text begin 19,830 to 21,349 new text end new text begin $1,500 new text end 6.23 16,730 to 17,919 1.7 percent 25 percent $1,190 6.24 new text begin 21,350 to 22,859 new text end new text begin $1,500 new text end 6.25 17,920 to 20,319 1.8 percent 25 percent $1,190 6.26 new text begin 22,860 to 25,929 new text end new text begin $1,500 new text end 6.27 20,320 to 21,509 1.9 percent 30 percent $1,190 6.28 new text begin 25,930 to 27,439 new text end new text begin $1,500 new text end 6.29 21,510 to 22,699 2.0 percent 30 percent $1,190 6.30 new text begin 27,440 to 28,959 new text end new text begin $1,500 new text end 6.31 22,700 to 23,899 2.2 percent 30 percent $1,190 6.32 new text begin 28,960 to 30,499 new text end new text begin $1,500 new text end 6.33 23,900 to 25,089 2.4 percent 30 percent $1,190 6.34 new text begin 30,500 to 32,009 new text end new text begin $1,500 new text end 6.35 25,090 to 26,289 2.6 percent 35 percent $1,190 6.36 new text begin 32,010 to 33,539 new text end new text begin $1,500 new text end 6.37 26,290 to 27,489 2.7 percent 35 percent $1,190 6.38 new text begin 33,540 to 35,079 new text end new text begin $1,500 new text end 6.39 27,490 to 28,679 2.8 percent 35 percent $1,190 6.40 new text begin 35,080 to 36,589 new text end new text begin $1,500 new text end 6.41 28,680 to 29,869 2.9 percent 40 percent $1,190 6.42 new text begin 36,590 to 38,109 new text end new text begin $1,500 new text end 6.43 29,870 to 31,079 3.0 percent 40 percent $1,190 7.1 new text begin 38,110 to 39,649 new text end new text begin $1,500 new text end 7.2 31,080 to 32,269 3.1 percent 40 percent $1,190 7.3 new text begin 39,650 to 41,169 new text end new text begin $1,500 new text end 7.4 32,270 to 33,459 3.2 percent 40 percent $1,190 7.5 new text begin 41,170 to 42,689 new text end new text begin $1,500 new text end 7.6 33,460 to 34,649 3.3 percent 45 percent $1,080 7.7 new text begin 42,690 to 49,729 new text end new text begin $1,370 new text end 7.8 34,650 to 35,849 3.4 percent 45 percent $ 960 7.9 new text begin 49,730 to 51,459 new text end new text begin $1,220 new text end 7.10 35,850 to 37,049 3.5 percent 45 percent $ 830 7.11 new text begin 51,460 to 53,189 new text end new text begin $1,050 new text end 7.12 37,050 to 38,239 3.5 percent 50 percent $ 720 7.13 new text begin 53,190 to 54,899 new text end new text begin $910 new text end 7.14 38,240 to 39,439 3.5 percent 50 percent $ 600 7.15 new text begin 54,900 to 56,609 new text end new text begin $760 new text end 7.16 38,440 to 40,629 3.5 percent 50 percent $ 360 7.17 new text begin 56,610 to 58,319 new text end new text begin $450 new text end 7.18 40,630 to 41,819 3.5 percent 50 percent $ 120 7.19 new text begin 58,320 to 60,000 new text end new text begin $150 new text end 7.20     new text begin (b) new text end The payment made to a claimant is the amount of the state refund calculated 7.21under this subdivision. No payment is allowed if the claimant's household income is 7.22$41,820 new text begin $60,000 new text end or more. 7.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for claims filed for rent new text end 7.24 new text begin paid after December 31, 2006. new text end 7.25    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read: 7.26    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a 7.27homestead increase more than 12 percent over the property taxes payable in the prior year 7.28on the same property that is owned and occupied by the same owner on January 2 of both 7.29years, and the amount of that increase is $100 or more, a claimant who is a homeowner 7.30shall be allowed an additional refund equal to 60 percent of the amount of the increase 7.31over the greater of 12 percent of the prior year's property taxes payable or $100. This 7.32subdivision shall not apply to any increase in the gross property taxes payable attributable 7.33to improvements made to the homestead after the assessment date for the prior year's 7.34taxes. This subdivision shall not apply to any increase in the gross property taxes payable 7.35attributable to the termination of valuation exclusions under section 273.11, subdivision 7.3616 new text begin , or to the reduction in and elimination of the homestead market value credit under new text end 7.37 new text begin section 273.1384, subdivision 1, paragraph (b) new text end . 8.1    The maximum refund allowed under this subdivision is $1,000. 8.2    (b) For purposes of this subdivision "gross property taxes payable" means property 8.3taxes payable determined without regard to the refund allowed under this subdivision. 8.4    (c) In addition to the other proofs required by this chapter, each claimant under 8.5this subdivision shall file with the property tax refund return a copy of the property tax 8.6statement for taxes payable in the preceding year or other documents required by the 8.7commissioner. 8.8    (d) Upon request, the appropriate county official shall make available the names and 8.9addresses of the property taxpayers who may be eligible for the additional property tax 8.10refund under this section. The information shall be provided on a magnetic computer 8.11disk. The county may recover its costs by charging the person requesting the information 8.12the reasonable cost for preparing the data. The information may not be used for any 8.13purpose other than for notifying the homeowner of potential eligibility and assisting the 8.14homeowner, without charge, in preparing a refund claim. 8.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refund claims based on property new text end 8.16 new text begin taxes payable in 2008. new text end 8.17    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision 8.18to read: 8.19     new text begin Subd. 2k. new text end new text begin Homestead credit state refund. new text end new text begin (a) A claimant who is a homeowner new text end 8.20 new text begin is entitled to a state refund of the amount of the property taxes payable in excess of two new text end 8.21 new text begin percent of the claimant's household income, based on the percentage and maximum for the new text end 8.22 new text begin appropriate household income level shown below. The refund amount determined from the new text end 8.23 new text begin table must be reduced further by the amount of the homestead market value credit under new text end 8.24 new text begin section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero. new text end 8.25 new text begin Household Income new text end new text begin Refund Percentage new text end new text begin Maximum State Refund new text end 8.26 new text begin 0 to $5,399 new text end new text begin 90 percent new text end new text begin $2,500 new text end 8.27 new text begin 5,400 to 18,899 new text end new text begin 85 percent new text end new text begin 2,500 new text end 8.28 new text begin 18,900 to 26,999 new text end new text begin 80 percent new text end new text begin 2,500 new text end 8.29 new text begin 27,000 to 32,399 new text end new text begin 75 percent new text end new text begin 2,500 new text end 8.30 new text begin 32,400 to 37,799 new text end new text begin 70 percent new text end new text begin 2,500 new text end 8.31 new text begin 37,800 to 45,899 new text end new text begin 65 percent new text end new text begin 2,500 new text end 8.32 new text begin 45,900 to 64,699 new text end new text begin 60 percent new text end new text begin 2,500 new text end 8.33 new text begin 64,700 to 80,899 new text end new text begin 55 percent new text end new text begin 2,300 new text end 8.34 new text begin 80,900 to 94,399 new text end new text begin 50 percent new text end new text begin 2,100 new text end 8.35 new text begin 94,400 to 99,299 new text end new text begin 45 percent new text end new text begin 1,900 new text end 8.36 new text begin 99,300 to 104,099 new text end new text begin 40 percent new text end new text begin 1,700 new text end 8.37 new text begin 104,100 to 115,599 new text end new text begin 30 percent new text end new text begin 1,500 new text end 9.1 new text begin 115,600 to 127,199 new text end new text begin 30 percent new text end new text begin 1,250 new text end 9.2 new text begin 127,200 to 134,099 new text end new text begin 25 percent new text end new text begin 1,000 new text end 9.3 new text begin 134,100 to 138,799 new text end new text begin 25 percent new text end new text begin 750 new text end 9.4 new text begin 138,800 to 144,399 new text end new text begin 25 percent new text end new text begin 500 new text end 9.5 new text begin 144,400 to 150,000 new text end new text begin 25 percent new text end new text begin 250 new text end 9.6     new text begin (b) No payment is allowed under paragraph (a) if the claimant's household income new text end 9.7 new text begin is more than $150,000. new text end 9.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for claims based on new text end 9.9 new text begin property taxes payable in 2008. new text end 9.10    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read: 9.11    Subd. 4. Inflation adjustment. Beginning for property tax refunds payable in 9.12calendar year 2002 new text begin 2009 new text end , the commissioner shall annually adjust the dollar amounts of 9.13the income thresholds and the maximum refunds under subdivisions 2 and 2a new text begin 2k new text end for 9.14inflation. The commissioner shall make the inflation adjustments in accordance with 9.15section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the 9.16percentage increase shall be determined from the year ending on June 30, 2000 new text begin 2007 new text end , to 9.17the year ending on June 30 of the year preceding that in which the refund is payable. The 9.18commissioner shall use the appropriate percentage increase to annually adjust the income 9.19thresholds and maximum refunds under subdivisions 2 and 2a new text begin 2k new text end for inflation without 9.20regard to whether or not the income tax brackets are adjusted for inflation in that year. 9.21The commissioner shall round the thresholds and the maximum amounts, as adjusted to 9.22the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up 9.23to the next $10 amount. 9.24    The commissioner shall annually announce the adjusted refund schedule at the same 9.25time provided under section 290.06. The determination of the commissioner under this 9.26subdivision is not a rule under the Administrative Procedure Act. 9.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for claims based on new text end 9.28 new text begin property taxes payable in 2009. new text end 9.29    Sec. 8. new text begin REPEALER. new text end 9.30 new text begin Minnesota Statutes 2006, section 290A.04, subdivision 2, new text end new text begin is repealed. new text end 9.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims based on property taxes new text end 9.32 new text begin payable in 2008 and later. new text end 10.1ARTICLE 2 10.2SCHOOL PROPERTY TAX RELIEF 10.3    Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read: 10.4    Subd. 4. Debt service equalization revenue. (a) The debt service equalization 10.5revenue of a district equals the sum of the first tier debt service equalization revenue and 10.6the second tier debt service equalization revenue. 10.7    (b) The first tier debt service equalization revenue of a district equals the greater of 10.8zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent 10.9times the adjusted new text begin debt service new text end net tax capacity of the district minus the second tier debt 10.10service equalization revenue of the district. 10.11    (c) The second tier debt service equalization revenue of a district equals the greater 10.12of zero or the eligible debt service revenue, excluding alternative facilities levies under 10.13section 123B.59, subdivision 5, minus the amount raised by a levy of 25 percent times the 10.14adjusted net tax capacity of the district. 10.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2009. new text end 10.16    Sec. 2. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read: 10.17    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a 10.18district equals the sum of the first tier equalized debt service levy and the second tier 10.19equalized debt service levy. 10.20    (b) A district's first tier equalized debt service levy equals the district's first tier debt 10.21service equalization revenue times the lesser of one or the ratio of: 10.22    (1) the quotient derived by dividing the adjusted new text begin debt service new text end net tax capacity of the 10.23district for the year before the year the levy is certified by the adjusted pupil units in the 10.24district for the school year ending in the year prior to the year the levy is certified; to 10.25    (2) $3,200 new text begin 100 percent of the statewide adjusted net tax capacity equalizing factor new text end . 10.26    (c) A district's second tier equalized debt service levy equals the district's second tier 10.27debt service equalization revenue times the lesser of one or the ratio of: 10.28    (1) the quotient derived by dividing the adjusted net tax capacity of the district for 10.29the year before the year the levy is certified by the adjusted pupil units in the district for 10.30the school year ending in the year prior to the year the levy is certified; to 10.31    (2) $8,000. 10.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2009. new text end 11.1    Sec. 3. new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT. new text end 11.2     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin All class 2 property under section 273.13, subdivision 23, new text end 11.3 new text begin except for (1) property consisting of the house, garage, and immediately surrounding one new text end 11.4 new text begin acre of land of an agricultural homestead, and (2) landing areas or public access areas of new text end 11.5 new text begin privately owned public use airports, is eligible to receive the credit under this section. new text end 11.6     new text begin Subd. 2. new text end new text begin Credit amount. new text end new text begin For each qualifying property, the school bond agricultural new text end 11.7 new text begin credit is equal to 20 percent of the property's eligible net tax capacity multiplied by the new text end 11.8 new text begin school debt tax rate determined under section 275.08, subdivision 1b. new text end 11.9     new text begin Subd. 3. new text end new text begin Credit reimbursements. new text end new text begin The county auditor shall determine the tax new text end 11.10 new text begin reductions allowed under this section within the county for each taxes payable year and new text end 11.11 new text begin shall certify that amount to the commissioner of revenue as a part of the abstracts of tax new text end 11.12 new text begin lists submitted under section 275.29. Any prior year adjustments shall also be certified on new text end 11.13 new text begin the abstracts of tax lists. The commissioner shall review the certifications for accuracy, new text end 11.14 new text begin and may make such changes as are deemed necessary, or return the certification to the new text end 11.15 new text begin county auditor for correction. The credit under this section must be used to reduce the new text end 11.16 new text begin school district net tax capacity-based property tax as provided in section 273.1393 new text end new text begin . new text end 11.17     new text begin Subd. 4. new text end new text begin Payment. new text end new text begin The commissioner of revenue shall certify the total of the tax new text end 11.18 new text begin reductions granted under this section for each taxes payable year within each school new text end 11.19 new text begin district to the commissioner of education, who shall pay the reimbursement amounts to new text end 11.20 new text begin each school district as provided in section 273.1392 new text end new text begin . new text end 11.21     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to make the payments required new text end 11.22 new text begin by this section is annually appropriated from the general fund to the commissioner of new text end 11.23 new text begin education. new text end 11.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 11.25 new text begin thereafter. new text end 11.26    Sec. 4. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision 11.27to read: 11.28     new text begin Subd. 2a. new text end new text begin Statewide adjusted net tax capacity equalizing factor. new text end new text begin The statewide new text end 11.29 new text begin adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total new text end 11.30 new text begin adjusted debt service net tax capacity of all school districts in the state for the year before new text end 11.31 new text begin the year the levy is certified by the total number of adjusted cost pupil units in the state new text end 11.32 new text begin for the fiscal year preceding the year the levy is certified. new text end 11.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008. new text end 12.1    Sec. 5. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision 12.2to read: 12.3     new text begin Subd. 3a. new text end new text begin Referendum market value equalizing factor. new text end new text begin The referendum market new text end 12.4 new text begin value equalizing factor equals the quotient derived by dividing the total referendum market new text end 12.5 new text begin value of all school districts in the state for the year before the year the levy is certified by new text end 12.6 new text begin the total number of resident marginal cost pupil units in the state for the current school year. new text end 12.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008. new text end 12.8    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read: 12.9    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal 12.10year 2007 and later, a district may levy an amount not more than the product of its 12.11operating capital revenue for the fiscal year times the lesser of one or the ratio of its 12.12adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 12.13equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 12.142006, and $10,700 for fiscal year 2007 new text begin and 2008, and $25,000 for fiscal year 2009 new text end and later. 12.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008. new text end 12.16    Sec. 7. Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read: 12.17    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later, 12.18A district's referendum equalization levy equals the sum of the first tier referendum 12.19equalization levy and the second tier referendum equalization levy. 12.20    (b) A district's first tier referendum equalization levy equals the district's first tier 12.21referendum equalization revenue times the lesser of one or the ratio of the district's 12.22referendum market value per resident marginal cost pupil unit to $476,000 new text begin 120 percent of new text end 12.23 new text begin the referendum market value equalizing factor new text end . 12.24    (c) A district's second tier referendum equalization levy equals the district's second 12.25tier referendum equalization revenue times the lesser of one or the ratio of the district's 12.26referendum market value per resident marginal cost pupil unit to $270,000 new text begin 60 percent of new text end 12.27 new text begin the referendum market value equalizing factor new text end . 12.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008. new text end 12.29    Sec. 8. Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision 12.30to read: 12.31     new text begin Subd. 17. new text end new text begin Adjusted debt service net tax capacity. new text end new text begin To calculate each district's new text end 12.32 new text begin adjusted debt service net tax capacity, the commissioner of revenue must recompute each new text end 13.1 new text begin district's adjusted net tax capacity using an alternative sales ratio comparing the sales price new text end 13.2 new text begin to the estimated market value of the property. new text end 13.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 13.4 new text begin computing taxes payable in 2008. new text end 13.5    Sec. 9. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read: 13.6    Subd. 1a. Limited market value. In the case of all property classified as 13.7agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, 13.8or noncommercial seasonal residential recreational, the assessor shall compare the value 13.9with the taxable portion of the value determined in the preceding assessment. 13.10    For assessment years 2004, 2005, and 2006, the amount of the increase shall not 13.11exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 13.12percent of the difference between the current assessment and the preceding assessment. 13.13    For assessment year 2007, the amount of the increase shall not exceed the greater of 13.14(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference 13.15between the current assessment and the preceding assessment. 13.16    For assessment year 2008, the amount of the increase shall not exceed the greater of 13.17(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference 13.18between the current assessment and the preceding assessment. 13.19    This limitation shall not apply to increases in value due to improvements. For 13.20purposes of this subdivision, the term "assessment" means the value prior to any exclusion 13.21under subdivision 16. 13.22    The provisions of this subdivision shall be in effect through assessment year 2008 13.23as provided in this subdivision. 13.24    For purposes of the assessment/sales ratio study conducted under section 127A.48, 13.25and the computation of state aids paid under chapters 122A, 123A, 123B, new text begin excluding new text end 13.26 new text begin section new text end new text begin , new text end 124D, 125A, 126C, 127A, and 477A, market values and net tax 13.27capacities determined under this subdivision and subdivision 16, shall be used. 13.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 13.29 new text begin computing taxes payable in 2008. new text end 13.30    Sec. 10. Minnesota Statutes 2006, section 273.1393, is amended to read: 13.31273.1393 COMPUTATION OF NET PROPERTY TAXES. 13.32    Notwithstanding any other provisions to the contrary, "net" property taxes are 13.33determined by subtracting the credits in the order listed from the gross tax: 14.1    (1) disaster credit as provided in section 273.123; 14.2    (2) powerline credit as provided in section 273.42; 14.3    (3) agricultural preserves credit as provided in section 473H.10; 14.4    (4) enterprise zone credit as provided in section 469.171; 14.5    (5) disparity reduction credit; 14.6    (6) conservation tax credit as provided in section 273.119; 14.7    (7) homestead and agricultural credits as provided in section 273.1384; 14.8     new text begin (8) school bond agricultural credit as provided in section 123B.555; new text end 14.9    (8) new text begin (9) new text end taconite homestead credit as provided in section 273.135; and 14.10    (9) new text begin (10) new text end supplemental homestead credit as provided in section 273.1391. 14.11    The combination of all property tax credits must not exceed the gross tax amount. 14.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 14.13 new text begin thereafter. new text end 14.14    Sec. 11. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read: 14.15    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 14.16and the county treasurer shall deliver after November 10 and on or before November 24 14.17each year, by first class mail to each taxpayer at the address listed on the county's current 14.18year's assessment roll, a notice of proposed property taxes. 14.19    (b) The commissioner of revenue shall prescribe the form of the notice. 14.20    (c) The notice must inform taxpayers that it contains the amount of property taxes 14.21each taxing authority proposes to collect for taxes payable the following year. In the case 14.22of a town, or in the case of the state general tax, the final tax amount will be its proposed 14.23tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, 14.24the notice must clearly state that each taxing authority, including regional library districts 14.25established under section 134.201, and including the metropolitan taxing districts as 14.26defined in paragraph (i), but excluding all other special taxing districts and towns, will 14.27hold a public meeting to receive public testimony on the proposed budget and proposed or 14.28final property tax levy, or, in case of a school district, on the current budget and proposed 14.29property tax levy. It must clearly state the time and place of each taxing authority's 14.30meeting, a telephone number for the taxing authority that taxpayers may call if they have 14.31questions related to the notice, and an address where comments will be received by mail. 14.32    (d) The notice must state for each parcel: 14.33    (1) the market value of the property as determined under section 273.11, and used 14.34for computing property taxes payable in the following year and for taxes payable in the 14.35current year as each appears in the records of the county assessor on November 1 of the 15.1current year; and, in the case of residential property, whether the property is classified as 15.2homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 15.3which the market values apply and that the values are final values; 15.4    (2) the items listed below, shown separately by county, city or town, and state 15.5general tax, net of the residential and agricultural homestead credit under section 273.1384 new text begin new text end 15.6 new text begin and the school bond agricultural credit under section 123B.555 new text end , voter approved school 15.7levy, other local school levy, and the sum of the special taxing districts, and as a total 15.8of all taxing authorities: 15.9    (i) the actual tax for taxes payable in the current year; and 15.10    (ii) the proposed tax amount. 15.11    If the county levy under clause (2) includes an amount for a lake improvement 15.12district as defined under sections 103B.501 to 103B.581, the amount attributable for that 15.13purpose must be separately stated from the remaining county levy amount. 15.14    In the case of a town or the state general tax, the final tax shall also be its proposed 15.15tax unless the town changes its levy at a special town meeting under section 365.52. If a 15.16school district has certified under section 126C.17, subdivision 9, that a referendum will 15.17be held in the school district at the November general election, the county auditor must 15.18note next to the school district's proposed amount that a referendum is pending and that, 15.19if approved by the voters, the tax amount may be higher than shown on the notice. In 15.20the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the 15.21levy for Minneapolis Park and Recreation shall be listed separately from the remaining 15.22amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul 15.23Library Agency must be listed separately from the remaining amount of the city's levy. 15.24In the case of Ramsey County, any amount levied under section 134.07 may be listed 15.25separately from the remaining amount of the county's levy. In the case of a parcel where 15.26tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, 15.27the proposed tax levy on the captured value or the proposed tax levy on the tax capacity 15.28subject to the areawide tax must each be stated separately and not included in the sum of 15.29the special taxing districts; and 15.30    (3) the increase or decrease between the total taxes payable in the current year and 15.31the total proposed taxes, expressed as a percentage. 15.32    For purposes of this section, the amount of the tax on homesteads qualifying under 15.33the senior citizens' property tax deferral program under chapter 290B is the total amount 15.34of property tax before subtraction of the deferred property tax amount. 15.35    (e) The notice must clearly state that the proposed or final taxes do not include 15.36the following: 16.1    (1) special assessments; 16.2    (2) levies approved by the voters after the date the proposed taxes are certified, 16.3including bond referenda and school district levy referenda; 16.4    (3) a levy limit increase approved by the voters by the first Tuesday after the first 16.5Monday in November of the levy year as provided under section 275.73; 16.6    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 16.7occurring after the date the proposed taxes are certified; 16.8    (5) amounts necessary to pay tort judgments against the taxing authority that become 16.9final after the date the proposed taxes are certified; and 16.10    (6) the contamination tax imposed on properties which received market value 16.11reductions for contamination. 16.12    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 16.13the county treasurer to deliver the notice as required in this section does not invalidate the 16.14proposed or final tax levy or the taxes payable pursuant to the tax levy. 16.15    (g) If the notice the taxpayer receives under this section lists the property as 16.16nonhomestead, and satisfactory documentation is provided to the county assessor by the 16.17applicable deadline, and the property qualifies for the homestead classification in that 16.18assessment year, the assessor shall reclassify the property to homestead for taxes payable 16.19in the following year. 16.20    (h) In the case of class 4 residential property used as a residence for lease or rental 16.21periods of 30 days or more, the taxpayer must either: 16.22    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 16.23renter, or lessee; or 16.24    (2) post a copy of the notice in a conspicuous place on the premises of the property. 16.25    The notice must be mailed or posted by the taxpayer by November 27 or within 16.26three days of receipt of the notice, whichever is later. A taxpayer may notify the county 16.27treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 16.28which the notice must be mailed in order to fulfill the requirements of this paragraph. 16.29    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special 16.30taxing districts" means the following taxing districts in the seven-county metropolitan area 16.31that levy a property tax for any of the specified purposes listed below: 16.32    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 16.33473.446 , 473.521, 473.547, or 473.834; 16.34    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 16.35and 16.36    (3) Metropolitan Mosquito Control Commission under section 473.711. 17.1    For purposes of this section, any levies made by the regional rail authorities in the 17.2county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 17.3398A shall be included with the appropriate county's levy and shall be discussed at that 17.4county's public hearing. 17.5    (j) The governing body of a county, city, or school district may, with the consent 17.6of the county board, include supplemental information with the statement of proposed 17.7property taxes about the impact of state aid increases or decreases on property tax 17.8increases or decreases and on the level of services provided in the affected jurisdiction. 17.9This supplemental information may include information for the following year, the current 17.10year, and for as many consecutive preceding years as deemed appropriate by the governing 17.11body of the county, city, or school district. It may include only information regarding: 17.12    (1) the impact of inflation as measured by the implicit price deflator for state and 17.13local government purchases; 17.14    (2) population growth and decline; 17.15    (3) state or federal government action; and 17.16    (4) other financial factors that affect the level of property taxation and local services 17.17that the governing body of the county, city, or school district may deem appropriate to 17.18include. 17.19    The information may be presented using tables, written narrative, and graphic 17.20representations and may contain instruction toward further sources of information or 17.21opportunity for comment. 17.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 17.23 new text begin thereafter. new text end 17.24    Sec. 12. Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read: 17.25    Subd. 2. School district in more than one county new text begin levies; special requirements new text end . new text begin (a) new text end 17.26In school districts lying in more than one county, the clerk shall certify the tax levied to the 17.27auditor of the county in which the administrative offices of the school district are located. 17.28     new text begin (b) The clerk shall identify the portion of the school district levy that is levied for the new text end 17.29 new text begin purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time new text end 17.30 new text begin that the levy is certified under this section. new text end 17.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 17.32 new text begin thereafter. new text end 17.33    Sec. 13. Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read: 18.1    Subd. 1b. Computation of tax rates. new text begin (a) new text end The amounts certified to be levied against 18.2net tax capacity under section 275.07 by an individual local government unit shall be 18.3divided by the total net tax capacity of all taxable properties within the local government 18.4unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, 18.5multiplied by each property's net tax capacity shall be each property's net tax capacity tax 18.6for that local government unit before reduction by any credits. 18.7     new text begin (b) The auditor shall also determine the school debt tax rate for each school district new text end 18.8 new text begin equal to the school debt levy certified under section 275.07 divided by the total net tax new text end 18.9 new text begin capacity of all taxable property within the district. new text end 18.10     new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall 18.11be divided by the total referendum market value of all taxable properties within the taxing 18.12district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by 18.13each property's referendum market value shall be each property's new referendum tax 18.14before reduction by any credits. For the purposes of this subdivision, "referendum market 18.15value" means the market value as defined in section 126C.01, subdivision 3. 18.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 18.17 new text begin thereafter. new text end 18.18    Sec. 14. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read: 18.19    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 18.20printing of the tax statements. The commissioner of revenue shall prescribe the form 18.21of the property tax statement and its contents. The statement must contain a tabulated 18.22statement of the dollar amount due to each taxing authority and the amount of the state 18.23tax from the parcel of real property for which a particular tax statement is prepared. The 18.24dollar amounts attributable to the county, the state tax, the voter approved school tax, the 18.25other local school tax, the township or municipality, and the total of the metropolitan 18.26special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must 18.27be separately stated. The amounts due all other special taxing districts, if any, may be 18.28aggregated except that any levies made by the regional rail authorities in the county of 18.29Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 18.30shall be listed on a separate line directly under the appropriate county's levy. If the county 18.31levy under this paragraph includes an amount for a lake improvement district as defined 18.32under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 18.33separately stated from the remaining county levy amount. In the case of Ramsey County, 18.34if the county levy under this paragraph includes an amount for public library service 18.35under section 134.07, the amount attributable for that purpose may be separated from the 19.1remaining county levy amount. The amount of the tax on homesteads qualifying under the 19.2senior citizens' property tax deferral program under chapter 290B is the total amount of 19.3property tax before subtraction of the deferred property tax amount. The amount of the 19.4tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 19.5be separately stated. The dollar amounts, including the dollar amount of any special 19.6assessments, may be rounded to the nearest even whole dollar. For purposes of this section 19.7whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 19.8The amount of market value excluded under section 273.11, subdivision 16, if any, must 19.9also be listed on the tax statement. 19.10    (b) The property tax statements for manufactured homes and sectional structures 19.11taxed as personal property shall contain the same information that is required on the 19.12tax statements for real property. 19.13    (c) Real and personal property tax statements must contain the following information 19.14in the order given in this paragraph. The information must contain the current year tax 19.15information in the right column with the corresponding information for the previous year 19.16in a column on the left: 19.17    (1) the property's estimated market value under section 273.11, subdivision 1; 19.18    (2) the property's taxable market value after reductions under section 273.11, 19.19subdivisions 1a and 16 ; 19.20    (3) the property's gross tax, calculated by adding the property's total property tax to 19.21the sum of the aids enumerated in clause (4); 19.22    (4) a total of the following aids: 19.23    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, 19.24and 127A; 19.25    (ii) local government aids for cities, towns, and counties under sections 477A.011 to 19.26477A.04 ; and 19.27    (iii) disparity reduction aid under section 273.1398; 19.28    (5) for homestead residential and agricultural properties, the credits under section new text begin new text end 19.29 new text begin sections new text end 273.1384 new text begin and 123B.555 new text end ; 19.30    (6) any credits received under sections 273.119; 273.123; 273.135; 273.1391; 19.31273.1398, subdivision 4 ; 469.171; and 473H.10, except that the amount of credit received 19.32under section 273.135 must be separately stated and identified as "taconite tax relief"; and 19.33    (7) the net tax payable in the manner required in paragraph (a). 19.34    (d) If the county uses envelopes for mailing property tax statements and if the county 19.35agrees, a taxing district may include a notice with the property tax statement notifying 19.36taxpayers when the taxing district will begin its budget deliberations for the current 20.1year, and encouraging taxpayers to attend the hearings. If the county allows notices to 20.2be included in the envelope containing the property tax statement, and if more than 20.3one taxing district relative to a given property decides to include a notice with the tax 20.4statement, the county treasurer or auditor must coordinate the process and may combine 20.5the information on a single announcement. 20.6    The commissioner of revenue shall certify to the county auditor the actual or 20.7estimated aids enumerated in paragraph (c), clause (4), that local governments will receive 20.8in the following year. The commissioner must certify this amount by January 1 of each 20.9year. 20.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 20.11 new text begin thereafter. new text end 20.12ARTICLE 3 20.13AIDS TO LOCAL GOVERNMENTS 20.14    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to 20.15read: 20.16    Subd. 34. City revenue need. (a) For a city with a population equal to or greater 20.17than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing 20.18percentage; plus (2) 19.141678 times the population decline percentage; plus (3) 20.192504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan 20.20area factor; minus (6) 49.10638 times the household size. 20.21    (b) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 20.222.387 times the pre-1940 housing percentage new text begin 300 new text end ; plus (2) 2.67591 times the commercial 20.23industrial percentage; plus (3) 3.16042 times the population decline percentage; plus 20.24(4) times the transformed population; minus (5) . new text begin 0.31 multiplied by the new text end 20.25 new text begin difference between the city's population and 100. The city revenue need for a city with a new text end 20.26 new text begin population less than 2,500 may not exceed 500. new text end 20.27    (c) For a city with a population of 2,500 or more and a population in one of the most 20.28recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 20.29its city revenue need calculated under paragraph (a) multiplied by its transition factor; 20.30plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 20.31by the difference between one and its transition factor. For purposes of this paragraph, a 20.32city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 20.33population estimate has been 2,500 or more. This provision only applies for aids payable 21.1in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 21.2applies to any city for aids payable in 2009 and thereafter. 21.3    (d) The city revenue need cannot be less than zero. 21.4    (e) For calendar year 2005 new text begin 2008 new text end and subsequent years, the city revenue need for 21.5a city, as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual 21.6implicit price deflator for government consumption expenditures and gross investment for 21.7state and local governments as prepared by the United States Department of Commerce, 21.8for the most recently available year to the 2003 new text begin 2000 new text end implicit price deflator for state 21.9and local government purchases. 21.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2008. new text end 21.11    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, is amended to read: 21.12    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, 21.13"city aid base" is zero. 21.14    (b) The city aid base for any city with a population less than 500 is increased by 21.15$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 21.16of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 21.17increased by $40,000 for aids payable in calendar year 1995 only, provided that: 21.18    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; 21.19    (ii) the city portion of the tax capacity rate exceeds 100 percent; and 21.20    (iii) its city aid base is less than $60 per capita. 21.21    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 21.22the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 21.23paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: 21.24    (i) the city has a population in 1994 of 2,500 or more; 21.25    (ii) the city is located in a county, outside of the metropolitan area, which contains a 21.26city of the first class; 21.27    (iii) the city's net tax capacity used in calculating its 1996 aid under section 21.28477A.013 is less than $400 per capita; and 21.29    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 21.30property located in the city is classified as railroad property. 21.31    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 21.32the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 21.33paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: 21.34    (i) the city was incorporated as a statutory city after December 1, 1993; 21.35    (ii) its city aid base does not exceed $5,600; and 22.1    (iii) the city had a population in 1996 of 5,000 or more. 22.2    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the 22.3maximum amount of total aid it may receive under section 477A.013, subdivision 9, 22.4paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that: 22.5    (i) the city had a population in 1996 of at least 50,000; 22.6    (ii) its population had increased by at least 40 percent in the ten-year period ending 22.7in 1996; and 22.8    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita. 22.9    (f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and 22.10thereafter, and the maximum amount of total aid it may receive under section 477A.013, 22.11subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 2000 only, 22.12provided that: 22.13    (1) the city has a population that is greater than 1,000 and less than 2,500; 22.14    (2) its commercial and industrial percentage for aids payable in 1999 is greater 22.15than 45 percent; and 22.16    (3) the total market value of all commercial and industrial property in the city 22.17for assessment year 1999 is at least 15 percent less than the total market value of all 22.18commercial and industrial property in the city for assessment year 1998. 22.19    (g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and 22.20the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 22.21paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: 22.22    (1) the city had a population in 1997 of 2,500 or more; 22.23    (2) the net tax capacity of the city used in calculating its 1999 aid under section 22.24477A.013 is less than $650 per capita; 22.25    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 22.26section 477A.013 is greater than 12 percent; 22.27    (4) the 1999 local government aid of the city under section 477A.013 is less than 22.2820 percent of the amount that the formula aid of the city would have been if the need 22.29increase percentage was 100 percent; and 22.30    (5) the city aid base of the city used in calculating aid under section 477A.013 22.31is less than $7 per capita. 22.32    (h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and 22.33the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 22.34paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: 22.35    (1) the city has a population in 1997 of 2,000 or more; 23.1    (2) the net tax capacity of the city used in calculating its 1999 aid under section 23.2477A.013 is less than $455 per capita; 23.3    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 23.4greater than $195 per capita; and 23.5    (4) the 1999 local government aid of the city under section 477A.013 is less than 23.638 percent of the amount that the formula aid of the city would have been if the need 23.7increase percentage was 100 percent. 23.8    (i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 23.9the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 23.10paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: 23.11    (1) the city has a population in 1998 that is greater than 200 but less than 500; 23.12    (2) the city's revenue need used in calculating aids payable in 2000 was greater 23.13than $200 per capita; 23.14    (3) the city net tax capacity for the city used in calculating aids available in 2000 23.15was equal to or less than $200 per capita; 23.16    (4) the city aid base of the city used in calculating aid under section 477A.013 23.17is less than $65 per capita; and 23.18    (5) the city's formula aid for aids payable in 2000 was greater than zero. 23.19    (j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 23.20the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 23.21paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: 23.22    (1) the city had a population in 1998 that is greater than 200 but less than 500; 23.23    (2) the city's commercial industrial percentage used in calculating aids payable in 23.242000 was less than ten percent; 23.25    (3) more than 25 percent of the city's population was 60 years old or older according 23.26to the 1990 census; 23.27    (4) the city aid base of the city used in calculating aid under section 477A.013 23.28is less than $15 per capita; and 23.29    (5) the city's formula aid for aids payable in 2000 was greater than zero. 23.30    (k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and 23.31by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of 23.32total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 23.33increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 23.34only, provided that: 23.35    (1) the net tax capacity of the city used in calculating its 2000 aid under section 23.36477A.013 is less than $810 per capita; 24.1    (2) the population of the city declined more than two percent between 1988 and 1998; 24.2    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 24.3greater than $240 per capita; and 24.4    (4) the city received less than $36 per capita in aid under section 477A.013, 24.5subdivision 9 , for aids payable in 2000. 24.6    (l) The city aid base for a city with a population of 10,000 or more which is located 24.7outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the 24.8maximum amount of total aid it may receive under section 477A.013, subdivision 9, 24.9paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 24.10the lesser of: 24.11    (1)(i) the total population of the city, as determined by the United States Bureau of 24.12the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or 24.13    (2) $2,500,000. 24.14    (m) The city aid base is increased by $50,000 in 2002 and thereafter, and the 24.15maximum amount of total aid it may receive under section 477A.013, subdivision 9, 24.16paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: 24.17    (1) the city is located in the seven-county metropolitan area; 24.18    (2) its population in 2000 is between 10,000 and 20,000; and 24.19    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, 24.20was greater than 25 percent. 24.21    (n) The city aid base for a city is increased by $150,000 in calendar years 2002 to 24.222011 new text begin and by an additional $75,000 in calendar years 2008 to 2013 new text end and the maximum 24.23amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 24.24also increased by $150,000 in calendar year 2002 only new text begin and by $75,000 in calendar year new text end 24.25 new text begin 2008 only new text end , provided that: 24.26    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; 24.27    (2) its home county is located within the seven-county metropolitan area; 24.28    (3) its pre-1940 housing percentage is less than 15 percent; and 24.29    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 24.30per capita. 24.31    (o) The city aid base for a city is increased by $200,000 beginning in calendar 24.32year 2003 and the maximum amount of total aid it may receive under section 477A.013, 24.33subdivision 9 , paragraph (c), is also increased by $200,000 in calendar year 2003 only, 24.34provided that the city qualified for an increase in homestead and agricultural credit aid 24.35under Laws 1995, chapter 264, article 8, section 18. 25.1    (p) The city aid base for a city is increased by $200,000 in 2004 only and the 25.2maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 25.3also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 25.4dry cask storage facility. 25.5    (q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the 25.6maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 25.7by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster 25.8designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by 25.9more than 40 percent between 1990 and 2000. 25.10    (r) The city aid base for a city is increased by $25,000 new text begin $30,000 new text end in 2006 new text begin 2008 new text end only 25.11and the maximum total aid it may receive under section 477A.013, subdivision 9, is also 25.12increased by $25,000 new text begin $30,000 new text end in calendar year 2006 new text begin 2008 new text end only if the city had a population 25.13in 2003 of at least 1,000 and has a state park for which the city provides rescue services 25.14and which comprised at least 14 percent of the total geographic area included within the 25.15city boundaries in 2000. 25.16    (s) The city aid base for a city with a population less than 5,000 is increased in 25.172006 and thereafter and the minimum and maximum amount of total aid it may receive 25.18under this section is also increased in calendar year 2006 only by an amount equal to 25.19$6 multiplied by its population. 25.20    (t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum 25.21and maximum amount of total aid it may receive under section 477A.013, subdivision 9, 25.22is also increased by $80,000 in calendar year 2007 only, if: 25.23    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 25.24to be placed in trust status as tax-exempt Indian land; 25.25    (2) the placement of the land is being challenged administratively or in court; and 25.26    (3) due to the challenge, the land proposed to be placed in trust is still on the tax 25.27rolls as of May 1, 2006. 25.28    (u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and 25.29the minimum and maximum total amount of aid it may receive under this section is also 25.30increased in calendar year 2007 only, provided that: 25.31    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; 25.32    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; 25.33    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 25.34payable in 2006 was greater than 110 percent; and 25.35    (4) it is located in a county where at least 15,000 acres of land are classified as 25.36tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. 26.1     new text begin (v) The city aid base for a city is increased by $140,000 in 2008 and thereafter, and new text end 26.2 new text begin the maximum total aid it may receive under section 477A.013, subdivision 9, is also new text end 26.3 new text begin increased by $140,000 in calendar year 2008 only if the city had a population in 2005 of new text end 26.4 new text begin less than 3,000 and the city's boundaries as of 2007 were formed by the consolidation new text end 26.5 new text begin of two cities and one township in 2002. new text end 26.6     new text begin (w) The city aid base for a city is increased by $100,000 in 2008 and thereafter, and new text end 26.7 new text begin the maximum total aid it may receive under section 477A.013, subdivision 9, is also new text end 26.8 new text begin increased by $100,000 in calendar year 2008 only if the city had a city net tax capacity for new text end 26.9 new text begin aids payable in 2007 of less than $150 per capita and the city experienced flooding on new text end 26.10 new text begin March 14, 2007, that resulted in evacuation of at least 40 homes. new text end 26.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 26.12 new text begin June 30, 2007. new text end 26.13    Sec. 3. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read: 26.14    Subd. 5. County transition aid. (a) For 2005, a county is eligible for transition 26.15aid equal to the amount, if any, by which: 26.16    (1) the difference between: 26.17    (i) the aid the county received under subdivision 1 in 2004, divided by the total aid 26.18paid to all counties under subdivision 1, multiplied by $205,000,000; and 26.19    (ii) the amount of aid the county is certified to receive in 2005 under subdivisions 26.203 and 4; 26.21exceeds: 26.22    (2) three percent of the county's adjusted net tax capacity. 26.23A county's aid under this paragraph may not be less than zero. 26.24    (b) In 2006, a county is eligible to receive two-thirds of the transition aid it received 26.25in 2005. 26.26    (c) In 2007 new text begin and thereafter new text end , a county is eligible to receive one-third of the transition 26.27aid it received in 2005. 26.28    (d) No county shall receive aid under this subdivision after 2007. 26.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2008 and new text end 26.30 new text begin thereafter. new text end 26.31    Sec. 4. Minnesota Statutes 2006, section 477A.013, subdivision 8, is amended to read: 26.32    Subd. 8. City formula aid. In calendar year 2004 and subsequent years, the 26.33formula aid for a city is equal to the need increase percentage multiplied by the difference 27.1between (1) the city's revenue need multiplied by its population, and (2) the sum of the 27.2city's net tax capacity multiplied by the tax effort rate; the taconite aids under sections 27.3 and to any city except a city directly impacted by a taconite mine or plant, 27.4multiplied by the following percentages: 27.5    (i) zero percent for aids payable in 2004; 27.6    (ii) 25 percent for aids payable in 2005; 27.7    (iii) 50 percent for aids payable in 2006; 27.8    (iv) 75 percent for aids payable in 2007; and 27.9    (v) 100 percent for aids payable in 2008 and thereafter. 27.10    For purposes of this subdivision, "a city directly impacted by a taconite mine or 27.11plant" means: (1) Babbit, (2) Eveleth, (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6) 27.12Silver Bay, or (7) Virginia. 27.13No city may have a formula aid amount less than zero. The need increase percentage 27.14must be the same for all cities. 27.15    The applicable need increase percentage must be calculated by the Department of 27.16Revenue so that the total of the aid under subdivision 9 equals the total amount available 27.17for aid under section 477A.03 after the subtraction under section 477A.014, subdivisions 27.184 and 5 . 27.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2008. new text end 27.20    Sec. 5. Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read: 27.21    Subd. 9. City aid distribution. (a) In calendar year 2002 and thereafter new text begin 2008 new text end , each 27.22city shall receive an aid distribution equal to the sum of (1) the city formula aid under 27.23subdivision 8, and (2) its city aid base new text begin , and (3) one-half of the difference between its total new text end 27.24 new text begin aid in the previous year under this section and its city aid base in the previous year. For aids new text end 27.25 new text begin payable in 2009 and thereafter, each city shall receive an aid distribution equal to the sum new text end 27.26 new text begin of (1) the city formula aid under subdivision 8, (2) its city aid base, and (3) its formula aid new text end 27.27 new text begin under subdivision 8 in the previous year, prior to any adjustments under this subdivision new text end . 27.28    (b) new text begin For aids payable in 2008, the total aid for any city shall not exceed the sum of (1) new text end 27.29 new text begin 25 percent of its net levy for the year prior to the aid distribution plus (2) its total aid in the new text end 27.30 new text begin previous year. new text end For aids payable in 2005 new text begin 2009 new text end and thereafter, the total aid for any city shall 27.31not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid 27.32distribution plus (2) its total aid in the previous year. For aids payable in 2005 new text begin 2008 new text end and 27.33thereafter, the total aid for any city with a population of 2,500 or more may not decrease 27.34from new text begin be less than new text end its total aid under this section in the previous year by an amount greater 28.1than new text begin minus the lesser of (1) $15 multiplied by its population, or (2) new text end ten percent of its net 28.2levy in the year prior to the aid distribution. 28.3    (c) For aids payable in 2004 only, the total aid for a city with a population less than 28.42,500 may not be less than the amount it was certified to receive in 2003 minus the greater 28.5of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special Session 28.6chapter 21, article 5, or (2) five percent of its 2003 aid amount. new text begin For aids payable in 2008 new text end 28.7 new text begin only, the total aid for a city with a population less than 2,500 must not be less than the new text end 28.8 new text begin amount it would otherwise be certified to receive in 2008 if this act was not enacted. new text end For 28.9aids payable in 2005 new text begin 2008 new text end and thereafter, the total aid for a city with a population less 28.10than 2,500 must not be less than the amount it was certified to receive in the previous year 28.11minus new text begin the lesser of (1) $15 multiplied by its population, or (2) new text end five percent of its 2003 28.12certified aid amount. 28.13    (d) If a city's net tax capacity used in calculating aid under this section has decreased 28.14in any year by more than 25 percent from its net tax capacity in the previous year due to 28.15property becoming tax-exempt Indian land, the city's maximum allowed aid increase 28.16under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the 28.17year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 28.18resulting from the property becoming tax exempt. 28.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2008 and new text end 28.20 new text begin thereafter. new text end 28.21    Sec. 6. Minnesota Statutes 2006, section 477A.013, is amended by adding a 28.22subdivision to read: 28.23     new text begin Subd. 11. new text end new text begin Towns. new text end new text begin In 2008 and subsequent years, each town that levied a property new text end 28.24 new text begin tax in the previous year shall receive a distribution equal to $3 multiplied by its population. new text end 28.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 28.26 new text begin 2008 and thereafter. new text end 28.27    Sec. 7. Minnesota Statutes 2006, section 477A.03, is amended to read: 28.28477A.03 APPROPRIATION. 28.29    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed 28.30by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the 28.31commissioner of revenue. 28.32    Subd. 2a. Cities. For aids payable in 2004, the total aids paid under section 28.33477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the 29.1total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. For 29.2aids payable in 2006 and thereafter new text begin 2008 new text end , the total aids paid under section 477A.013, 29.3subdivision 9 , is limited to $485,052,000 new text begin $545,052,000 new text end . new text begin For aids payable in 2009 and new text end 29.4 new text begin thereafter, the total aids paid under section 477A.013, subdivision 9, are the amounts new text end 29.5 new text begin certified to be paid in the previous year, adjusted for inflation as provided under new text end 29.6 new text begin subdivision 5. new text end 29.7    Subd. 2b. Counties. (a) For aids payable in calendar year 2005 and thereafter new text begin new text end 29.8 new text begin 2008 new text end , the total aids paid to counties under section 477A.0124, subdivision 3, are limited 29.9to $100,500,000 new text begin $108,000,000. For aids payable in 2008 and thereafter, the total aids new text end 29.10 new text begin paid under section 477A.0124, subdivision 3, are the amounts certified to be paid in the new text end 29.11 new text begin previous year, adjusted for inflation as provided under subdivision 5 new text end . Each calendar year, 29.12$500,000 shall be retained by the commissioner of revenue to make reimbursements 29.13to the commissioner of finance for payments made under section 611.27. For calendar 29.14year 2004, the amount shall be in addition to the payments authorized under section 29.15477A.0124, subdivision 1. For calendar year 2005 and subsequent years, The amount shall 29.16be deducted from the appropriation under this paragraph. The reimbursements shall be to 29.17defray the additional costs associated with court-ordered counsel under section 611.27. 29.18Any retained amounts not used for reimbursement in a year shall be included in the next 29.19distribution of county need aid that is certified to the county auditors for the purpose of 29.20property tax reduction for the next taxes payable year. 29.21    (b) For aids payable in 2005, the total aids under section 477A.0124, subdivision 29.224 , are limited to $105,000,000. For aids payable in 2006 and thereafter new text begin 2008 new text end , the total 29.23aid under section 477A.0124, subdivision 4, is limited to $105,132,923 new text begin $112,169,054. new text end 29.24 new text begin For aids payable in 2008 and thereafter, the total aids paid under section 477A.0124, new text end 29.25 new text begin subdivision 4, are the amounts certified to be paid in the previous year, adjusted for new text end 29.26 new text begin inflation as provided under subdivision 5 new text end . The commissioner of finance shall bill the 29.27commissioner of revenue for the cost of preparation of local impact notes as required by 29.28section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner 29.29of education shall bill the commissioner of revenue for the cost of preparation of local 29.30impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal 29.31year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed 29.32under this paragraph from the appropriation under this paragraph. The amounts deducted 29.33are appropriated to the commissioner of finance and the commissioner of education for the 29.34preparation of local impact notes. 29.35     new text begin Subd. 5. new text end new text begin Inflation adjustment. new text end new text begin (a) In 2009 and thereafter, the amount paid under new text end 29.36 new text begin subdivision 2a shall each be increased by an amount as provided in paragraphs (b) and (c). new text end 30.1     new text begin (b) Unless the requirements of paragraph (c) are met, the increase shall be one new text end 30.2 new text begin percent above the amount certified to be paid under those subdivisions in the previous year. new text end 30.3     new text begin (c) If the legislature adopts a new formula proposed by the study in section 11 new text end 30.4 new text begin that all city organizations representing at least 40 cities in the state support, the increase new text end 30.5 new text begin shall be equal to: new text end 30.6     new text begin (1) the amount certified to be paid under that subdivision in the previous year, new text end 30.7 new text begin multiplied by new text end 30.8     new text begin (2) one plus the percentage increase in the implicit price deflator for state and new text end 30.9 new text begin local government purchases of goods and services prepared by the Bureau of Economic new text end 30.10 new text begin Analysis of the United States Department of Commerce for the 12-month period ending new text end 30.11 new text begin March 31 of the previous year. new text end 30.12     new text begin The increase under this provision in any year may not be less than 2.5 percent or new text end 30.13 new text begin greater than 5.0 percent. new text end 30.14     new text begin (d) In 2009 to 2010, the amounts paid under subdivision 2b, paragraphs (a) and (b) new text end 30.15 new text begin shall be increased by the greater of (1) one percent over the amount paid in the previous new text end 30.16 new text begin year, or (2) the inflation amount applied to the city appropriation under this subdivision. In new text end 30.17 new text begin 2011 and thereafter, the increase shall be equal to: new text end 30.18     new text begin (1) the amount certified to be paid under that subdivision in the previous year, new text end 30.19 new text begin multiplied by new text end 30.20     new text begin (2) one plus the percentage increase in the implicit price deflator for state and new text end 30.21 new text begin local government purchases of goods and services prepared by the Bureau of Economic new text end 30.22 new text begin Analysis of the United States Department of Commerce for the 12-month period ending new text end 30.23 new text begin March 31 of the previous year. new text end 30.24     new text begin The increase under this provision in any year may not be less than 2.5 percent or new text end 30.25 new text begin greater than 5.0 percent. new text end 30.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 30.27 new text begin 2008 and thereafter. new text end 30.28    Sec. 8. new text begin UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR new text end 30.29 new text begin CALCULATION OF SCHOOL DISTRICT AIDS AND LEVIES. new text end 30.30     new text begin For purposes of calculating school levies and aids for fiscal years 2009, 2010, and new text end 30.31 new text begin 2011 only, the commissioner of revenue shall compute the adjusted net tax capacity and new text end 30.32 new text begin referendum market value as if the tax base changes resulting from the amendments to new text end 30.33 new text begin Minnesota Rules, chapter 8100, including the phase-in provisions of Minnesota Rules, new text end 30.34 new text begin part 8100.0800, were effective one year earlier. new text end 31.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal years 2009, new text end 31.2 new text begin 2010, and 2011. new text end 31.3    Sec. 9. new text begin UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR new text end 31.4 new text begin CALCULATION OF COUNTY AND CITY AIDS. new text end 31.5     new text begin For purposes of calculating aid for cities under section 477A.013, and for counties new text end 31.6 new text begin under section 477A.0124, for payment in 2008, 2009, and 2010 only, the commissioner new text end 31.7 new text begin of revenue shall calculate the adjusted net tax capacity of cities and counties, as defined new text end 31.8 new text begin in sections 477A.011 and 477A.0124, as if the tax base changes resulting from the new text end 31.9 new text begin amendments to Minnesota Rules, chapter 8100, including the phase-in provisions of new text end 31.10 new text begin Minnesota Rules, part 8100.0800, were effective one year earlier. new text end 31.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2008, 2009, new text end 31.12 new text begin and 2010. new text end 31.13    Sec. 10. new text begin MAHNOMEN COUNTY; COUNTY PROPERTY TAX new text end 31.14 new text begin REIMBURSEMENT, CITY AND SCHOOL DISTRICT TAX BASE new text end 31.15 new text begin ADJUSTMENTS. new text end 31.16     new text begin Subdivision 1. new text end new text begin Aid appropriation. new text end new text begin $250,000 is appropriated in fiscal year 2009 new text end 31.17 new text begin from the general fund to the commissioner of revenue to make a payment in calendar year new text end 31.18 new text begin 2008 to the county of Mahnomen to compensate for the loss of property tax revenue due new text end 31.19 new text begin to the pending placement of property, located in the city of Mahnomen, into trust status by new text end 31.20 new text begin the United States Department of the Interior, Bureau of Indian Affairs. new text end 31.21     new text begin Subd. 2. new text end new text begin School district and city tax base adjustments. new text end new text begin (a) The commissioner of new text end 31.22 new text begin revenue must reduce the referendum market value and adjusted net tax capacity used to new text end 31.23 new text begin calculate school levies beginning with taxes payable in 2008 and subsequent years for new text end 31.24 new text begin Independent School District No. 432, Mahnomen, by the amounts attributable to the new text end 31.25 new text begin property that is pending placement into trust status by the United States Department of new text end 31.26 new text begin the Interior, Bureau of Indian Affairs. This adjustment shall be made each year until one new text end 31.27 new text begin year after the removal of the property from the tax rolls. new text end 31.28     new text begin (b) The commissioner of revenue must reduce the city net tax capacity used to new text end 31.29 new text begin calculate city aid under sections 477A.011 to 477A.03, beginning with aids payable in new text end 31.30 new text begin 2008 for the city of Mahnomen, by the amounts attributable to property that is pending new text end 31.31 new text begin placement into trust status by the United States Department of the Interior, Bureau of new text end 31.32 new text begin Indian Affairs. This adjustment shall be made each year until one year after the removal of new text end 31.33 new text begin the property from the tax rolls. new text end 32.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids and levies payable in 2008 new text end 32.2 new text begin and thereafter. new text end 32.3    Sec. 11. new text begin STUDY OF CITY LOCAL GOVERNMENT AID PROGRAM. new text end 32.4     new text begin The commissioner of revenue shall work with representatives of all major city new text end 32.5 new text begin organizations, representing at least 40 cities on this issue, to study the current local new text end 32.6 new text begin government aid formula for cities, along with alternatives proposed by the various new text end 32.7 new text begin interest groups, and provide a written report with recommendations to the legislature, in new text end 32.8 new text begin compliance with Minnesota Statutes, sections 3.195 and 3.197, by February 1, 2008. new text end 32.9 new text begin The study must list the alternatives considered and any recommended changes for new text end 32.10 new text begin which consensus has been reached. If there is no consensus on proposed changes, the new text end 32.11 new text begin commissioner shall report this. The commissioner shall allocate minimal staff time to the new text end 32.12 new text begin study, but must provide staff to organize and chair any meetings of the study group and new text end 32.13 new text begin provide modeling assistance for the final proposed changes. new text end 32.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 32.15ARTICLE 4 32.16PROPERTY TAXES 32.17    Section 1. Minnesota Statutes 2006, section 97A.061, subdivision 2, is amended to 32.18read: 32.19    Subd. 2. Allocation. (a) Except as provided in subdivision 3, the county treasurer 32.20shall allocate the payment among the county, towns, and school districts on the same basis 32.21as if the payments were taxes on the land received in the year. Payment of a town's or a 32.22school district's allocation must be made by the county treasurer to the town or school 32.23district within 30 days of receipt of the payment to the county. The county's share of the 32.24payment shall be deposited in the county general revenue fund. 32.25    (b) The county treasurer of a county with a population over 39,000 but less than 32.2642,000 in the 1950 federal census shall allocate the payment only among the towns and 32.27school districts on the same basis as if the payments were taxes on the lands received 32.28in the current year. 32.29     new text begin (c) If a town received a payment in calendar year 2006 or thereafter under this new text end 32.30 new text begin subdivision, and subsequently incorporated as a city, the city will continue to receive any new text end 32.31 new text begin future year's allocations that would have been made to the town had it not incorporated, new text end 32.32 new text begin provided the city does not pass ordinances prohibiting hunting. new text end 33.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aid payments made in 2007 new text end 33.2 new text begin and thereafter. new text end 33.3    Sec. 2. Minnesota Statutes 2006, section 127A.48, subdivision 3, is amended to read: 33.4    Subd. 3. Agricultural lands. For purposes of determining the adjusted net tax 33.5capacity of agricultural lands for the calculation of adjusted net tax capacities, the market 33.6value of agricultural lands must be the price for which the property would sell in an 33.7arm's-length transaction. new text begin When agricultural land is sold, the property is enrolled under new text end 33.8 new text begin section 273.111, and the purchaser changes its use in a manner that would result in new text end 33.9 new text begin a change of classification of the property, the assessment/sales ratio study under this new text end 33.10 new text begin subdivision must take into account that changed classification as soon as practicable. A new text end 33.11 new text begin change in status from homestead to nonhomestead or from nonhomestead to homestead is new text end 33.12 new text begin not a change in classification under this subdivision. new text end 33.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the first study prepared following new text end 33.14 new text begin the day following final enactment. new text end 33.15    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 33.16to read: 33.17     new text begin Subd. 85. new text end new text begin Modular homes used as models by dealers. new text end new text begin (a) A modular home new text end 33.18 new text begin is exempt if it: new text end 33.19     new text begin (1) is owned by a modular home dealer and is located on land owned or leased new text end 33.20 new text begin by that dealer; new text end 33.21     new text begin (2) is a single-family model home; new text end 33.22     new text begin (3) is not available for sale and is used exclusively as a model; new text end 33.23     new text begin (4) is not permanently connected to any utilities except electricity; and new text end 33.24     new text begin (5) is situated on a temporary foundation. new text end 33.25     new text begin (b) The exemption under this subdivision is allowable for up to five assessment new text end 33.26 new text begin years after the date it becomes located on the property, provided that the modular home new text end 33.27 new text begin continues to meet all of the criteria under this subdivision each year. The owner of a new text end 33.28 new text begin modular model home must notify the county assessor within 60 days that it has been new text end 33.29 new text begin constructed or located on the property and must again notify the assessor if the modular new text end 33.30 new text begin home ceases to meet any of the criteria. If more than one modular home is constructed or new text end 33.31 new text begin situated on a property, the owner must notify the assessor within 60 days for each of the new text end 33.32 new text begin models placed on the property. new text end 33.33     new text begin (c) For purposes of this subdivision, a "modular home" means a building or new text end 33.34 new text begin structural unit that has been in whole or substantial part manufactured or constructed at an new text end 34.1 new text begin off-site location to be wholly or partially assembled on-site as a single family dwelling. new text end 34.2 new text begin Construction of the modular home must comply with applicable standards adopted in new text end 34.3 new text begin Minnesota Rules authorized under Minnesota Statutes, chapter 16B. A modular home does new text end 34.4 new text begin not include a structure subject to the requirements of the National Manufactured Home new text end 34.5 new text begin Construction and Safety Standards Act of 1974 or prefabricated buildings, as defined in new text end 34.6 new text begin Minnesota Statutes, section 327.31, subdivision 6. new text end 34.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 34.8 new text begin thereafter, for taxes payable in 2008 and thereafter. The five-year assessment time period new text end 34.9 new text begin begins with the 2007 assessment for a modular model home currently situated provided new text end 34.10 new text begin it meets all of the criteria and the county assessor is notified within 90 days of the day new text end 34.11 new text begin following final enactment. new text end 34.12    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 34.13to read: 34.14     new text begin Subd. 86. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 34.15 new text begin subdivision 9, clause (a), attached machinery and other personal property which is part of new text end 34.16 new text begin a simple-cycle combustion-turbine electric generation facility that exceeds 150 megawatts new text end 34.17 new text begin of installed capacity and that meets the requirements of this subdivision is exempt. At new text end 34.18 new text begin the time of construction, the facility must: new text end 34.19     new text begin (1) utilize natural gas as a primary fuel; new text end 34.20     new text begin (2) be owned by an electric generation and transmission cooperative; new text end 34.21     new text begin (3) be located within one mile of an existing 16-inch natural gas pipeline and a new text end 34.22 new text begin 69-kilovolt and a 230-kilovolt high-voltage electric transmission line; new text end 34.23     new text begin (4) be designed to provide peaking, emergency backup, or contingency services; new text end 34.24     new text begin (5) have received a certificate of need under section 216B.243 demonstrating new text end 34.25 new text begin demand for its capacity; and new text end 34.26     new text begin (6) have received by resolution the approval from the governing bodies of the county new text end 34.27 new text begin and the city in which the proposed facility is to be located for the exemption of personal new text end 34.28 new text begin property under this subdivision. new text end 34.29     new text begin (b) Construction of the facility must be commenced after January 1, 2008, and new text end 34.30 new text begin before January 1, 2012. Property eligible for this exemption does not include electric new text end 34.31 new text begin transmission lines and interconnections or gas pipelines and interconnections appurtenant new text end 34.32 new text begin to the property or the facility. new text end 34.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 35.1    Sec. 5. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 35.2to read: 35.3     new text begin Subd. 87. new text end new text begin Apprenticeship training facilities. new text end new text begin Property used exclusively for a new text end 35.4 new text begin state-approved apprenticeship program through the Department of Labor and Industry and new text end 35.5 new text begin owned by a 501(c)(3) nonprofit corporation is exempt, provided the program participants new text end 35.6 new text begin receive no compensation. new text end 35.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 35.8 new text begin thereafter, for taxes payable in 2008 and thereafter. new text end 35.9    Sec. 6. Minnesota Statutes 2006, section 272.115, subdivision 1, is amended to read: 35.10    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5, 35.11whenever any real estate is sold for a consideration in excess of $1,000, whether by 35.12warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, 35.13grantee or the legal agent of either shall file a certificate of value with the county auditor 35.14in the county in which the property is located when the deed or other document is 35.15presented for recording. Contract for deeds are subject to recording under section 507.235, 35.16subdivision 1 . Value shall, in the case of any deed not a gift, be the amount of the full 35.17actual consideration thereof, paid or to be paid, including the amount of any lien or liens 35.18assumed. The items and value of personal property transferred with the real property 35.19must be listed and deducted from the sale price. The certificate of value shall include the 35.20classification to which the property belongs for the purpose of determining the fair market 35.21value of the property new text begin , and shall include any proposed change in use of the property known new text end 35.22 new text begin to the person filing the certificate that could change the classification of the property new text end . The 35.23certificate shall include financing terms and conditions of the sale which are necessary 35.24to determine the actual, present value of the sale price for purposes of the sales ratio 35.25study. The commissioner of revenue shall promulgate administrative rules specifying the 35.26financing terms and conditions which must be included on the certificate. Pursuant to the 35.27authority of the commissioner of revenue in section 270C.306, the certificate of value 35.28must include the Social Security number or the federal employer identification number 35.29of the grantors and grantees. The identification numbers of the grantors and grantees are 35.30private data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 35.31and 12 , but, notwithstanding that section, the private or nonpublic data may be disclosed to 35.32the commissioner of revenue for purposes of tax administration. The information required 35.33to be shown on the certificate of value is limited to the information required as of the date 35.34of the acknowledgment on the deed or other document to be recorded. 36.1    Sec. 7. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read: 36.2    Subd. 1a. Limited market value. In the case of all property classified as 36.3agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, 36.4or noncommercial seasonal residential recreational, the assessor shall compare the value 36.5with the taxable portion of the value determined in the preceding assessment. 36.6    For assessment years 2004, 2005, and 2006 new text begin through 2008 new text end , the amount of the increase 36.7shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, 36.8or (2) 25 percent of the difference between the current assessment and the preceding 36.9assessment. 36.10    For assessment year 2007 new text begin 2009 new text end , the amount of the increase shall not exceed the 36.11greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the 36.12difference between the current assessment and the preceding assessment. 36.13    For assessment year 2008 new text begin 2010 new text end , the amount of the increase shall not exceed the 36.14greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the 36.15difference between the current assessment and the preceding assessment. 36.16    This limitation shall not apply to increases in value due to improvements. For 36.17purposes of this subdivision, the term "assessment" means the value prior to any exclusion 36.18under subdivision 16. 36.19    The provisions of this subdivision shall be in effect through assessment year 2008 36.20as provided in this subdivision. 36.21    For purposes of the assessment/sales ratio study conducted under section 127A.48, 36.22and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 36.23126C, 127A, and 477A, market values and net tax capacities determined under this 36.24subdivision and subdivision 16, shall be used. 36.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 36.26 new text begin thereafter, for taxes payable in 2008 and thereafter. new text end 36.27    Sec. 8. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to 36.28read: 36.29     new text begin Subd. 16a. new text end new text begin Valuation exclusion for certain improvements. new text end new text begin (a) Improvements to new text end 36.30 new text begin homestead property made after January 2, 2008, shall be excluded from the value of the new text end 36.31 new text begin property for assessment purposes provided that (1) the house is at least 50 years old at the new text end 36.32 new text begin time of the improvement and (2) the assessor's estimated market value of the property on new text end 36.33 new text begin January 2 of the current year does not exceed $400,000. new text end 37.1     new text begin (b) The age of a residence is the number of years since the original year of its new text end 37.2 new text begin construction. In the case of an owner-occupied duplex or triplex, the improvement is new text end 37.3 new text begin eligible regardless of which portion of the property was improved. new text end 37.4     new text begin (c) If the property lies in a jurisdiction that is subject to a building permit process, a new text end 37.5 new text begin building permit must have been issued prior to commencement of the improvement. new text end 37.6 new text begin The improvements for a single project or in any one year must add at least $15,000 new text end 37.7 new text begin market value to the property to be eligible for exclusion under this subdivision. Only new text end 37.8 new text begin improvements to the structure which is the residence of the qualifying homesteader, or new text end 37.9 new text begin construction of or improvements to no more than one two-car garage per residence, new text end 37.10 new text begin qualify for the provisions of this subdivision. Whenever a building permit is issued for new text end 37.11 new text begin property currently classified as homestead, the issuing jurisdiction shall notify the property new text end 37.12 new text begin owner of the possibility of valuation exclusion under this subdivision. The assessor shall new text end 37.13 new text begin require an application, including documentation of the age of the house from the owner, new text end 37.14 new text begin if unknown by the assessor. The application may be filed subsequent to the date of the new text end 37.15 new text begin building permit provided that the application must be filed within two years of the date the new text end 37.16 new text begin building permit was issued for the improvement. If the property lies in a jurisdiction that new text end 37.17 new text begin is not subject to a building permit process, the application must be filed within two years new text end 37.18 new text begin of the date the improvement was made. The assessor may require proof from the taxpayer new text end 37.19 new text begin of the date the improvement was made. Applications must be received prior to July 1 of new text end 37.20 new text begin any year in order to be effective for taxes payable in the following year. new text end 37.21     new text begin (d) In the case of a residence that is relocated, the relocation must be from a location new text end 37.22 new text begin within the state and the only improvements eligible for exclusion under this subdivision new text end 37.23 new text begin are (1) those for which building permits were issued to the homeowner after the residence new text end 37.24 new text begin was relocated to its present site, and (2) those undertaken during or after the year the new text end 37.25 new text begin residence is initially occupied by the homeowner, excluding any market value increase new text end 37.26 new text begin relating to basic improvements that are necessary to install the residence on its foundation new text end 37.27 new text begin and connect it to utilities at its present site. new text end 37.28     new text begin (e) No exclusion for an improvement may be granted by a local board of review or new text end 37.29 new text begin county board of equalization, and no abatement of the taxes for qualifying improvements new text end 37.30 new text begin may be granted by the county board unless (1) a building permit was issued prior to the new text end 37.31 new text begin commencement of the improvement if the jurisdiction requires a building permit, and new text end 37.32 new text begin (2) an application was completed. new text end 37.33     new text begin (f) The assessor shall note the qualifying value of each improvement on the new text end 37.34 new text begin property's record, and the sum of those amounts must be subtracted from the value of the new text end 37.35 new text begin property in each year for ten years after the improvement has been made. After ten years, new text end 37.36 new text begin the amount of the qualifying value shall be added back as follows: new text end 38.1     new text begin (1) 50 percent in the two subsequent assessment years if the qualifying value is equal new text end 38.2 new text begin to or less than $20,000 market value; or new text end 38.3     new text begin (2) 33-1/3 percent in the three subsequent assessment years if the qualifying value is new text end 38.4 new text begin greater than $20,000 market value. new text end 38.5     new text begin (g) If an application is filed after the first assessment date at which an improvement new text end 38.6 new text begin could have been subject to the valuation exclusion under this subdivision, the ten-year new text end 38.7 new text begin period during which the value is subject to exclusion is reduced by the number of years new text end 38.8 new text begin that have elapsed since the property would have qualified initially. The valuation new text end 38.9 new text begin exclusion terminates whenever (1) the property is sold, or (2) the property is reclassified to new text end 38.10 new text begin a class that does not qualify for treatment under this subdivision. Improvements made by new text end 38.11 new text begin an occupant who is the purchaser of the property under a conditional purchase contract new text end 38.12 new text begin do not qualify under this subdivision unless the seller of the property is a governmental new text end 38.13 new text begin entity. The qualifying value of the property must be computed based upon the increase new text end 38.14 new text begin from that structure's market value as of January 2 preceding the acquisition of the property new text end 38.15 new text begin by the governmental entity. new text end 38.16     new text begin (h) The total qualifying value for a homestead may not exceed $75,000. The term new text end 38.17 new text begin "qualifying value" means the increase in estimated market value resulting from the new text end 38.18 new text begin improvement. The maximum qualifying value under this subdivision may result from no new text end 38.19 new text begin more than two separate improvements to the homestead. new text end 38.20     new text begin (i) If 50 percent or more of the square footage of a structure is voluntarily razed new text end 38.21 new text begin or removed, the valuation increase attributable to any subsequent improvements to the new text end 38.22 new text begin remaining structure does not qualify for the exclusion under this subdivision. If a structure new text end 38.23 new text begin is unintentionally or accidentally destroyed by a natural disaster, the property is eligible new text end 38.24 new text begin for an exclusion under this subdivision provided that the structure was not completely new text end 38.25 new text begin destroyed. The qualifying value on property destroyed by a natural disaster must be new text end 38.26 new text begin computed based upon the increase from that structure's market value as determined on new text end 38.27 new text begin January 2 of the year in which the disaster occurred. A property receiving benefits under new text end 38.28 new text begin the homestead disaster provisions under section new text end new text begin is not disqualified from receiving new text end 38.29 new text begin an exclusion under this subdivision. If any combination of improvements made to a new text end 38.30 new text begin structure after January 2, 2008, increase the size of the structure by 100 percent or more, new text end 38.31 new text begin the valuation increase attributable to the portion of the improvement that causes the new text end 38.32 new text begin structure's size to exceed 100 percent does not qualify for exclusion under this subdivision. new text end 38.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for improvements made after January new text end 38.34 new text begin 2, 2008. new text end 39.1    Sec. 9. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision 39.2to read: 39.3     new text begin Subd. 16. new text end new text begin Applications; denied by county. new text end new text begin For applications filed for the 2007 and new text end 39.4 new text begin 2008 assessment years, all applications for deferment of taxes and assessment under this new text end 39.5 new text begin section that have been denied by the county shall be forwarded to the commissioner of new text end 39.6 new text begin revenue by the county assessor within 30 days of denial. The assessor shall also provide new text end 39.7 new text begin the commissioner with a list of any property owners that requested an application and new text end 39.8 new text begin were denied, including names and addresses, and the reason for the denial. For the new text end 39.9 new text begin purpose of monitoring compliance with this section, the commissioner shall compile a new text end 39.10 new text begin report identifying all denied applications and requests for applications that were denied, new text end 39.11 new text begin the reason for the denial, and any commissioner action or recommendation. A report must new text end 39.12 new text begin be submitted to the chairs of the house and senate tax committees on or before February new text end 39.13 new text begin 1, 2008, and February 1, 2009, in compliance with Minnesota Statutes, sections 3.195 new text end 39.14 new text begin and 3.197. new text end 39.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.16    Sec. 10. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read: 39.17    Subdivision 1. General rule. (a) Residential real estate that is occupied and used 39.18for the purposes of a homestead by its owner, who must be a Minnesota resident, is 39.19a residential homestead. 39.20    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and 39.21used as a homestead by its owner, who must be a Minnesota resident, is an agricultural 39.22homestead. 39.23    Dates for establishment of a homestead and homestead treatment provided to 39.24particular types of property are as provided in this section. 39.25    Property held by a trustee under a trust is eligible for homestead classification if the 39.26requirements under this chapter are satisfied. 39.27    The assessor shall require proof, as provided in subdivision 13, of the facts upon 39.28which classification as a homestead may be determined. Notwithstanding any other law, 39.29the assessor may at any time require a homestead application to be filed in order to verify 39.30that any property classified as a homestead continues to be eligible for homestead status. 39.31Notwithstanding any other law to the contrary, the Department of Revenue may, upon 39.32request from an assessor, verify whether an individual who is requesting or receiving 39.33homestead classification has filed a Minnesota income tax return as a resident for the most 39.34recent taxable year for which the information is available. 40.1    When there is a name change or a transfer of homestead property, the assessor may 40.2reclassify the property in the next assessment unless a homestead application is filed to 40.3verify that the property continues to qualify for homestead classification. 40.4    (b) For purposes of this section, homestead property shall include property which 40.5is used for purposes of the homestead but is separated from the homestead by a road, 40.6street, lot, waterway, or other similar intervening property. The term "used for purposes 40.7of the homestead" shall include but not be limited to uses for gardens, garages, or other 40.8outbuildings commonly associated with a homestead, but shall not include vacant land 40.9held primarily for future development. In order to receive homestead treatment for 40.10the noncontiguous property, the owner must use the property for the purposes of the 40.11homestead, and must apply to the assessor, both by the deadlines given in subdivision 40.129. After initial qualification for the homestead treatment, additional applications for 40.13subsequent years are not required. 40.14    (c) Residential real estate that is occupied and used for purposes of a homestead by a 40.15relative of the owner is a homestead but only to the extent of the homestead treatment 40.16that would be provided if the related owner occupied the property. For purposes of this 40.17paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, 40.18grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship 40.19may be by blood or marriage. Property that has been classified as seasonal residential 40.20recreational property at any time during which it has been owned by the current owner or 40.21spouse of the current owner will not be reclassified as a homestead unless it is occupied as 40.22a homestead by the owner; this prohibition also applies to property that, in the absence of 40.23this paragraph, would have been classified as seasonal residential recreational property at 40.24the time when the residence was constructed. Neither the related occupant nor the owner of 40.25the property may claim a property tax refund under chapter 290A for a homestead occupied 40.26by a relative. In the case of a residence located on agricultural land, only the house, 40.27garage, and immediately surrounding one acre of land shall be classified as a homestead 40.28under this paragraph, except as provided in paragraph (d). new text begin In the case of nonagricultural new text end 40.29 new text begin property, this paragraph only applies to applications approved before July 1, 2007. new text end 40.30    (d) Agricultural property that is occupied and used for purposes of a homestead by 40.31a relative of the owner, is a homestead, only to the extent of the homestead treatment 40.32that would be provided if the related owner occupied the property, and only if all of the 40.33following criteria are met: 40.34    (1) the relative who is occupying the agricultural property is a son, daughter, 40.35grandson, granddaughter, father, or mother of the owner of the agricultural property or a 41.1son, daughter, grandson, or granddaughter of the spouse of the owner of the agricultural 41.2property; 41.3    (2) the owner of the agricultural property must be a Minnesota resident; 41.4    (3) the owner of the agricultural property must not receive homestead treatment on 41.5any other agricultural property in Minnesota; and 41.6    (4) the owner of the agricultural property is limited to only one agricultural 41.7homestead per family under this paragraph. 41.8    Neither the related occupant nor the owner of the property may claim a property 41.9tax refund under chapter 290A for a homestead occupied by a relative qualifying under 41.10this paragraph. For purposes of this paragraph, "agricultural property" means the house, 41.11garage, other farm buildings and structures, and agricultural land. 41.12    Application must be made to the assessor by the owner of the agricultural property to 41.13receive homestead benefits under this paragraph. The assessor may require the necessary 41.14proof that the requirements under this paragraph have been met. 41.15    (e) In the case of property owned by a property owner who is married, the assessor 41.16must not deny homestead treatment in whole or in part if only one of the spouses occupies 41.17the property and the other spouse is absent due to: (1) marriage dissolution proceedings, 41.18(2) legal separation, (3) employment or self-employment in another location, or (4) other 41.19personal circumstances causing the spouses to live separately, not including an intent to 41.20obtain two homestead classifications for property tax purposes. To qualify under clause 41.21(3), the spouse's place of employment or self-employment must be at least 50 miles distant 41.22from the other spouse's place of employment, and the homesteads must be at least 50 miles 41.23distant from each other. Homestead treatment, in whole or in part, shall not be denied to 41.24the owner's spouse who previously occupied the residence with the owner if the absence 41.25of the owner is due to one of the exceptions provided in this paragraph. 41.26    (f) The assessor must not deny homestead treatment in whole or in part if: 41.27    (1) in the case of a property owner who is not married, the owner is absent due to 41.28residence in a nursing home, boarding care facility, or an elderly assisted living facility 41.29property as defined in section 273.13, subdivision 25a, and the property is not otherwise 41.30occupied; or 41.31    (2) in the case of a property owner who is married, the owner or the owner's spouse 41.32or both are absent due to residence in a nursing home, boarding care facility, or an elderly 41.33assisted living facility property as defined in section 273.13, subdivision 25a, and the 41.34property is not occupied or is occupied only by the owner's spouse. 41.35    (g) If an individual is purchasing property with the intent of claiming it as a 41.36homestead and is required by the terms of the financing agreement to have a relative 42.1shown on the deed as a co-owner, the assessor shall allow a full homestead classification. 42.2This provision only applies to first-time purchasers, whether married or single, or to a 42.3person who had previously been married and is purchasing as a single individual for the 42.4first time. The application for homestead benefits must be on a form prescribed by the 42.5commissioner and must contain the data necessary for the assessor to determine if full 42.6homestead benefits are warranted. 42.7    (h) If residential or agricultural real estate is occupied and used for purposes of a 42.8homestead by a child of a deceased owner and the property is subject to jurisdiction of 42.9probate court, the child shall receive relative homestead classification under paragraph (c) 42.10or (d) to the same extent they would be entitled to it if the owner was still living, until 42.11the probate is completed. For purposes of this paragraph, "child" includes a relationship 42.12by blood or by marriage. 42.13    (i) If a single-family home, duplex, or triplex classified as either residential 42.14homestead or agricultural homestead is also used to provide licensed child care, the 42.15portion of the property used for licensed child care must be classified as a part of the 42.16homestead property. 42.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.18    Sec. 11. Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read: 42.19    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than 42.20ten acres that is the homestead of its owner must be classified as class 2a under section 42.21273.13, subdivision 23 , paragraph (a), if: 42.22    (1) the parcel on which the house is located is contiguous on at least two sides to (i) 42.23agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 42.24Service, or (iii) land administered by the Department of Natural Resources on which in 42.25lieu taxes are paid under sections 477A.11 to 477A.14; 42.26    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 42.2720 acres; 42.28    (3) the noncontiguous land is located not farther than four townships or cities, or a 42.29combination of townships or cities from the homestead; and 42.30    (4) the agricultural use value of the noncontiguous land and farm buildings is equal 42.31to at least 50 percent of the market value of the house, garage, and one acre of land. 42.32    Homesteads initially classified as class 2a under the provisions of this paragraph shall 42.33remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 42.34properties, as long as the homestead remains under the same ownership, the owner owns a 42.35noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 43.1value qualifies under clause (4). Homestead classification under this paragraph is limited 43.2to property that qualified under this paragraph for the 1998 assessment. 43.3    (b)(i) Agricultural property consisting of at least 40 acres new text begin , incorporating government new text end 43.4 new text begin lots and correctional 40's, new text end shall be classified as the owner's homestead, to the same extent 43.5as other agricultural homestead property, if all of the following criteria are met: 43.6    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's 43.7spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively 43.8farming the agricultural property, either on the person's own behalf as an individual or 43.9on behalf of a partnership operating a family farm, family farm corporation, joint family 43.10farm venture, or limited liability company of which the person is a partner, shareholder, or 43.11member; 43.12    (2) both the owner of the agricultural property and the person who is actively 43.13farming the agricultural property under clause (1), are Minnesota residents; 43.14    (3) neither the owner nor the spouse of the owner claims another agricultural 43.15homestead in Minnesota; and 43.16    (4) neither the owner nor new text begin and new text end the person actively farming the property lives farther 43.17than four townships or cities, or a combination of four townships or cities, from the 43.18agricultural property new text begin must live either in the county where the agricultural property is new text end 43.19 new text begin located or in a county contiguous to the county where the agricultural property is located new text end , 43.20except that if the owner or the owner's spouse is required to live in employer-provided 43.21housing, the owner or owner's spouse, whichever is actively farming the agricultural 43.22property, may live more than four townships or cities, or combination of four townships 43.23or cities new text begin further new text end from the agricultural property new text begin than in the county or county contiguous new text end 43.24 new text begin to the property new text end . 43.25    The relationship under this paragraph may be either by blood or marriage. 43.26    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead 43.27classification under this paragraph if the qualifications in clause (i) are met, except that 43.28"owner" means the grantor of the trust. 43.29    (iii) Property containing the residence of an owner who owns qualified property 43.30under clause (i) shall be classified as part of the owner's agricultural homestead, if that 43.31property is also used for noncommercial storage or drying of agricultural crops. 43.32    (c) Noncontiguous land shall be included as part of a homestead under section 43.33273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a 43.34and the detached land is located in the same township or city, or not farther than four 43.35townships or cities or combination thereof from new text begin county or in a county contiguous to new text end the 43.36homestead. Any taxpayer of these noncontiguous lands must notify the county assessor 44.1that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is 44.2located in another county, the taxpayer must also notify the assessor of the other county. 44.3    (d) Agricultural land used for purposes of a homestead and actively farmed by a 44.4person holding a vested remainder interest in it must be classified as a homestead under 44.5section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, 44.6any other dwellings on the land used for purposes of a homestead by persons holding 44.7vested remainder interests who are actively engaged in farming the property, and up to 44.8one acre of the land surrounding each homestead and reasonably necessary for the use of 44.9the dwelling as a home, must also be assessed class 2a. 44.10    (e) Agricultural land and buildings that were class 2a homestead property under 44.11section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain 44.12classified as agricultural homesteads for subsequent assessments if: 44.13    (1) the property owner abandoned the homestead dwelling located on the agricultural 44.14homestead as a result of the April 1997 floods; 44.15    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, 44.16or Wilkin; 44.17    (3) the agricultural land and buildings remain under the same ownership for the 44.18current assessment year as existed for the 1997 assessment year and continue to be used 44.19for agricultural purposes; 44.20    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 44.21miles of one of the parcels of agricultural land that is owned by the taxpayer; and 44.22    (5) the owner notifies the county assessor that the relocation was due to the 1997 44.23floods, and the owner furnishes the assessor any information deemed necessary by the 44.24assessor in verifying the change in dwelling. Further notifications to the assessor are not 44.25required if the property continues to meet all the requirements in this paragraph and any 44.26dwellings on the agricultural land remain uninhabited. 44.27    (f) Agricultural land and buildings that were class 2a homestead property under 44.28section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain 44.29classified agricultural homesteads for subsequent assessments if: 44.30    (1) the property owner abandoned the homestead dwelling located on the agricultural 44.31homestead as a result of damage caused by a March 29, 1998, tornado; 44.32    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, 44.33LeSueur, Nicollet, Nobles, or Rice; 44.34    (3) the agricultural land and buildings remain under the same ownership for the 44.35current assessment year as existed for the 1998 assessment year; 45.1    (4) the dwelling occupied by the owner is located in this state and is within 50 miles 45.2of one of the parcels of agricultural land that is owned by the taxpayer; and 45.3    (5) the owner notifies the county assessor that the relocation was due to a March 29, 45.41998, tornado, and the owner furnishes the assessor any information deemed necessary by 45.5the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 45.6owner must notify the assessor by December 1, 1998. Further notifications to the assessor 45.7are not required if the property continues to meet all the requirements in this paragraph 45.8and any dwellings on the agricultural land remain uninhabited. 45.9    (g) Agricultural property consisting of at least 40 acres new text begin , incorporating government new text end 45.10 new text begin lots and correctional 40's, new text end of a family farm corporation, joint family farm venture, family 45.11farm limited liability company, or partnership operating a family farm as described under 45.12subdivision 8 shall be classified homestead, to the same extent as other agricultural 45.13homestead property, if all of the following criteria are met: 45.14    (1) a shareholder, member, or partner of that entity is actively farming the 45.15agricultural property; 45.16    (2) that shareholder, member, or partner who is actively farming the agricultural 45.17property is a Minnesota resident; 45.18    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder, 45.19member, or partner claims another agricultural homestead in Minnesota; and 45.20    (4) that shareholder, member, or partner does not live farther than four townships 45.21or cities, or a combination of four townships or cities, from the agricultural property new text begin new text end 45.22 new text begin lives in the county where the agricultural property is located or in a county contiguous to new text end 45.23 new text begin the county where the property is located new text end . 45.24    Homestead treatment applies under this paragraph for property leased to a family 45.25farm corporation, joint farm venture, limited liability company, or partnership operating a 45.26family farm if legal title to the property is in the name of an individual who is a member, 45.27shareholder, or partner in the entity. 45.28    (h) To be eligible for the special agricultural homestead under this subdivision, an 45.29initial full application must be submitted to the county assessor where the property is 45.30located. Owners and the persons who are actively farming the property shall be required 45.31to complete only a one-page abbreviated version of the application in each subsequent 45.32year provided that none of the following items have changed since the initial application: 45.33    (1) the day-to-day operation, administration, and financial risks remain the same; 45.34    (2) the owners and the persons actively farming the property continue to live within 45.35the four townships or city criteria new text begin the county or a contiguous county new text end and are Minnesota 45.36residents; 46.1    (3) the same operator of the agricultural property is listed with the Farm Service 46.2Agency; 46.3    (4) a Schedule F or equivalent income tax form was filed for the most recent year; 46.4    (5) the property's acreage is unchanged; and 46.5    (6) none of the property's acres have been enrolled in a federal or state farm program 46.6since the initial application. 46.7    The owners and any persons who are actively farming the property must include 46.8the appropriate Social Security numbers, and sign and date the application. If any of the 46.9specified information has changed since the full application was filed, the owner must 46.10notify the assessor, and must complete a new application to determine if the property 46.11continues to qualify for the special agricultural homestead. The commissioner of revenue 46.12shall prepare a standard reapplication form for use by the assessors. 46.13 new text begin EFFECTIVE DATE. new text end new text begin The portion of this section relating to the 40 acres requirement new text end 46.14 new text begin is effective for assessment year 2007, taxes payable in 2008 and thereafter. The remaining new text end 46.15 new text begin portion relating to contiguous counties is effective for assessment year 2008 and thereafter, new text end 46.16 new text begin taxes payable in 2009 and thereafter. new text end 46.17    Sec. 12. Minnesota Statutes 2006, section 273.128, subdivision 1, is amended to read: 46.18    Subdivision 1. Requirement new text begin Requirements new text end . Low-income rental property new text begin In order new text end 46.19 new text begin to be new text end classified as class 4d new text begin low-income rental housing new text end under section 273.13, subdivision 46.2025 , is entitled to valuation under this section if new text begin the property must meet the requirements of new text end 46.21 new text begin subdivision 4, if applicable, and new text end at least 75 new text begin 20 new text end percent of the units in the rental housing 46.22property new text begin must new text end meet any of the following qualifications: 46.23    (1) the units are subject to a housing assistance payments contract under Section 8 46.24of the United States Housing Act of 1937, as amended; 46.25    (2) the units are rent-restricted and income-restricted units of a qualified low-income 46.26housing project receiving tax credits under section 42(g) of the Internal Revenue Code of 46.271986, as amended; 46.28    (3) the units are financed by the Rural Housing Service of the United States 46.29Department of Agriculture and receive payments under the rental assistance program 46.30pursuant to section 521(a) of the Housing Act of 1949, as amended; or 46.31    (4) the units are subject to rent and income restrictions under the terms of financial 46.32assistance provided to the rental housing property by the federal government or the 46.33state of Minnesota new text begin , or a local unit of government, new text end as evidenced by a document recorded 46.34against the property. 47.1    The restrictions must require assisted units to be occupied by residents whose 47.2household income at the time of initial occupancy does not exceed 60 percent of the 47.3greater of area or state median income, adjusted for family size, as determined by the 47.4United States Department of Housing and Urban Development. The restriction must also 47.5require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of 47.6area or state median income, adjusted for family size, as determined by the United States 47.7Department of Housing and Urban Development. 47.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes levied in 2007, new text end 47.9 new text begin payable in 2008, and thereafter. new text end 47.10    Sec. 13. Minnesota Statutes 2006, section 273.128, is amended by adding a subdivision 47.11to read: 47.12     new text begin Subd. 4. new text end new text begin Participation in crime-free multihousing program. new text end new text begin (a) In addition new text end 47.13 new text begin to the requirements in subdivision 1, if the property qualifies under paragraph (b), the new text end 47.14 new text begin owners or managers must complete the three phases of the city's or county's crime-free new text end 47.15 new text begin multihousing program and the qualifying property must be annually certified by the police new text end 47.16 new text begin or sheriff as participating in the program. If a qualifying property is not certified within new text end 47.17 new text begin one year after it is first determined to be a qualifying property under paragraph (b), or does new text end 47.18 new text begin not annually maintain its certification in the program, the city or county shall notify the new text end 47.19 new text begin property owner that the qualifying property must comply with the requirements of this new text end 47.20 new text begin subdivision to maintain its classification as class 4d property. If a qualifying property is new text end 47.21 new text begin not in compliance within one year after receiving the notice from the city or county, the new text end 47.22 new text begin city or county shall issue a second notice and require the owners to enter into a plan to new text end 47.23 new text begin achieve compliance within one year. If, upon expiration of the one-year time period, new text end 47.24 new text begin the qualifying property has not been certified by the police or sheriff as completing the new text end 47.25 new text begin program, the city or county shall notify the commissioner of the Housing Finance Agency new text end 47.26 new text begin and the commissioner shall remove the property from the list of class 4d properties new text end 47.27 new text begin certified to the county or city assessor under subdivision 3. Once removed from the list, new text end 47.28 new text begin the property is not eligible for class 4d classification until it complies with this subdivision new text end 47.29 new text begin and its compliance has been certified to the Housing Finance Agency by the city or county. new text end 47.30 new text begin Certification to the Housing Finance Agency must be made by May 15 to be effective for new text end 47.31 new text begin taxes payable in the following year. new text end 47.32     new text begin (b) A property is a qualifying property for purposes of this subdivision's requirements new text end 47.33 new text begin if it satisfies each of the following requirements: new text end 47.34     new text begin (1) the property is located in a city or county that offers a crime-free multihousing new text end 47.35 new text begin program through its city police or county sheriff; new text end 48.1     new text begin (2) over the preceding two-year period, the number of police or sheriff calls to new text end 48.2 new text begin the property exceeded the city's or county's average number of calls for multiunit rental new text end 48.3 new text begin properties for the period by at least 25 percent, adjusted for the number of rental units; new text end 48.4     new text begin (3) the police or sheriff department has requested, in writing, the owners or managers new text end 48.5 new text begin of the property to enroll in the crime-free multihousing program and the owners or new text end 48.6 new text begin managers refused or failed to enroll within 60 days after the request, or failed to complete new text end 48.7 new text begin phases one and three within 90 days and all three phases of the program within a one-year new text end 48.8 new text begin time period; and new text end 48.9     new text begin (4) the governing body of the city or county, by resolution, determines the property new text end 48.10 new text begin is a qualifying property under clauses (1) to (3). new text end 48.11     new text begin (c) Low-income qualifying rental housing property classified as class 4d property for new text end 48.12 new text begin taxes payable in 2007 must meet the requirements of this section by May 15, 2010. new text end 48.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes levied in 2007, new text end 48.14 new text begin payable in 2008, and thereafter. new text end 48.15    Sec. 14. Minnesota Statutes 2006, section 273.13, subdivision 22, is amended to read: 48.16    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) 48.17and (c), real estate which is residential and used for homestead purposes is class 1a. In the 48.18case of a duplex or triplex in which one of the units is used for homestead purposes, the 48.19entire property is deemed to be used for homestead purposes. The market value of class 1a 48.20property must be determined based upon the value of the house, garage, and land. 48.21    The first $500,000 of market value of class 1a property has a net class rate of 48.22one percent of its market value; and the market value of class 1a property that exceeds 48.23$500,000 has a class rate of 1.25 percent of its market value. 48.24    (b) Class 1b property includes homestead real estate or homestead manufactured 48.25homes used for the purposes of a homestead by 48.26    (1) any person who is blind as defined in section 256D.35, or the blind person and 48.27the blind person's spouse; or 48.28    (2) any person, hereinafter referred to as "veteran," who: 48.29    (i) served in the active military or naval service of the United States; and 48.30    (ii) is entitled to compensation under the laws and regulations of the United States 48.31for permanent and total service-connected disability due to the loss, or loss of use, by 48.32reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both 48.33lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or 48.34a wheelchair; and 49.1    (iii) has acquired a special housing unit with special fixtures or movable facilities 49.2made necessary by the nature of the veteran's disability, or the surviving spouse of the 49.3deceased veteran for as long as the surviving spouse retains the special housing unit 49.4as a homestead; or 49.5    (3) any person who is permanently and totally disabled. 49.6    Property is classified and assessed under clause (3) only if the government agency or 49.7income-providing source certifies, upon the request of the homestead occupant, that the 49.8homestead occupant satisfies the disability requirements of this paragraph. 49.9    Property is classified and assessed pursuant to clause (1) only if the commissioner of 49.10revenue certifies to the assessor that the homestead occupant satisfies the requirements of 49.11this paragraph. 49.12    Permanently and totally disabled for the purpose of this subdivision means a 49.13condition which is permanent in nature and totally incapacitates the person from working 49.14at an occupation which brings the person an income. The first $32,000 new text begin $50,000 new text end market 49.15value of class 1b property has a net class rate of .45 percent of its market value. The 49.16remaining market value of class 1b property has a class rate using the rates for class 1a or 49.17class 2a property, whichever is appropriate, of similar market value. 49.18    (c) Class 1c property is commercial use real new text begin and personal new text end property that abuts 49.19a lakeshore line new text begin public water as defined in section 103G.005, subdivision 15, new text end and is 49.20devoted to temporary and seasonal residential occupancy for recreational purposes but 49.21not devoted to commercial purposes for more than 250 days in the year preceding the 49.22year of assessment, and that includes a portion used as a homestead by the owner, which 49.23includes a dwelling occupied as a homestead by a shareholder of a corporation that owns 49.24the resort, a partner in a partnership that owns the resort, or a member of a limited liability 49.25company that owns the resort even if the title to the homestead is held by the corporation, 49.26partnership, or limited liability company. For purposes of this clause, property is devoted 49.27to a commercial purpose on a specific day if any portion of the property, excluding the 49.28portion used exclusively as a homestead, is used for residential occupancy and a fee is 49.29charged for residential occupancy. new text begin Class 1c property must contain three or more rental new text end 49.30 new text begin units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, new text end 49.31 new text begin or individual camping site equipped with water and electrical hookups for recreational new text end 49.32 new text begin vehicles. Class 1c property must provide recreational activities such as the rental of ice new text end 49.33 new text begin fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; new text end 49.34 new text begin provide marina services, launch services, or guide services; or sell bait and fishing tackle. new text end 49.35 new text begin Any unit in which the right to use the property is transferred to an individual or entity new text end 49.36 new text begin by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even new text end 50.1 new text begin though it may remain available for rent. A camping pad offered for rent by a property new text end 50.2 new text begin that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental new text end 50.3 new text begin agreement, as long as the use of the camping pad does not exceed 250 days. new text end The portion of 50.4the property used as a homestead is class 1a property under paragraph (a). The remainder 50.5of the property is classified as follows: the first $500,000 new text begin $600,000 new text end of market value is tier 50.6I, the next $1,700,000 of market value is tier II, and any remaining market value is tier 50.7III. The class rates for class 1c are: tier I, 0.55 new text begin 0.50 new text end percent; tier II, 1.0 percent; and tier 50.8III, 1.25 percent. If a class 1c resort property has any market value in tier III, the entire 50.9property must meet the requirements of subdivision 25, paragraph (d), clause (1), to 50.10qualify for class 1c treatment under this paragraph. new text begin Owners of real and personal property new text end 50.11 new text begin devoted to temporary and seasonal residential occupancy for recreation purposes in which new text end 50.12 new text begin all or a portion of the property was devoted to commercial purposes for not more than 250 new text end 50.13 new text begin days in the year preceding the year of assessment desiring classification as class 1c, must new text end 50.14 new text begin submit a declaration to the assessor designating the cabins or units occupied for 250 days new text end 50.15 new text begin or less in the year preceding the year of assessment by January 15 of the assessment year. new text end 50.16 new text begin Those cabins or units and a proportionate share of the land on which they are located must new text end 50.17 new text begin be designated as class 1c as otherwise provided. The remainder of the cabins or units and new text end 50.18 new text begin a proportionate share of the land on which they are located must be designated as class new text end 50.19 new text begin 3a commercial. The owner of property desiring designation as class 1c property must new text end 50.20 new text begin provide guest registers or other records demonstrating that the units for which class 1c new text end 50.21 new text begin designation is sought were not occupied for more than 250 days in the year preceding the new text end 50.22 new text begin assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, new text end 50.23 new text begin (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility new text end 50.24 new text begin operated on a commercial basis not directly related to temporary and seasonal residential new text end 50.25 new text begin occupancy for recreation purposes does not qualify for class 1c. new text end 50.26    (d) Class 1d property includes structures that meet all of the following criteria: 50.27    (1) the structure is located on property that is classified as agricultural property under 50.28section 273.13, subdivision 23; 50.29    (2) the structure is occupied exclusively by seasonal farm workers during the time 50.30when they work on that farm, and the occupants are not charged rent for the privilege of 50.31occupying the property, provided that use of the structure for storage of farm equipment 50.32and produce does not disqualify the property from classification under this paragraph; 50.33    (3) the structure meets all applicable health and safety requirements for the 50.34appropriate season; and 50.35    (4) the structure is not salable as residential property because it does not comply 50.36with local ordinances relating to location in relation to streets or roads. 51.1    The market value of class 1d property has the same class rates as class 1a property 51.2under paragraph (a). 51.3 new text begin EFFECTIVE DATE. new text end new text begin The portion of this section increasing the market value of new text end 51.4 new text begin the first tier of class 1c resorts and striking the language relating to class 1b veterans' new text end 51.5 new text begin homesteads is effective for assessment year 2007 and thereafter, for taxes payable in 2008 new text end 51.6 new text begin and thereafter. The remaining portion of this section relating to class 1c resorts is effective new text end 51.7 new text begin for the assessment year 2008, for taxes payable in 2009 and thereafter. new text end 51.8    Sec. 15. Minnesota Statutes 2006, section 273.13, subdivision 23, is amended to read: 51.9    Subd. 23. Class 2. (a) Class 2a property is agricultural land including any 51.10improvements that is homesteaded. The market value of the house and garage and 51.11immediately surrounding one acre of land has the same class rates as class 1a property 51.12under subdivision 22. The value of the remaining land including improvements up to the 51.13first tier valuation limit of agricultural homestead property has a net class rate of 0.55 new text begin 0.50 new text end 51.14percent of market value. The remaining property over the first tier has a class rate of one 51.15percent of market value. For purposes of this subdivision, the "first tier valuation limit of 51.16agricultural homestead property" and "first tier" means the limit certified under section 51.17273.11 , subdivision 23. 51.18    (b) Class 2b property is (1) new text begin unplatted new text end real estate, rural in character and used 51.19exclusively for growing trees for timber, lumber, and wood and wood products; (2) 51.20real estate new text begin , new text end that is not improved with a structure and is used exclusively for growing 51.21trees for timber, lumber, and wood and wood products, if the owner has participated or 51.22is participating in a cost-sharing program for afforestation, reforestation, or timber stand 51.23improvement on that particular property, administered or coordinated by the commissioner 51.24of natural resources; (3) new text begin , and that consists of at least ten acres, including land used for new text end 51.25 new text begin growing trees for timber, lumber, and wood products, but not including land used for new text end 51.26 new text begin agricultural purposes, provided that the presence of a minor, ancillary nonresidential new text end 51.27 new text begin structure does not disqualify property from the classification under this clause; (2) new text end real 51.28estate that is nonhomestead agricultural land; or (4) new text begin (3) new text end a landing area or public access 51.29area of a privately owned public use airport. Class 2b property has a net class rate of one 51.30percent of market value. 51.31    (c) Agricultural land as used in this section means contiguous acreage of ten acres or 51.32more, used during the preceding year for agricultural purposes. "Agricultural purposes" as 51.33used in this section means the raising or cultivation of agricultural products. "Agricultural 51.34purposes" also includes enrollment in the Reinvest in Minnesota program under sections 51.35103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public 52.1Law 99-198 if the property was classified as agricultural (i) under this subdivision for 52.2the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage 52.3on the same parcel, or contiguous acreage on an immediately adjacent parcel under the 52.4same ownership, may also qualify as agricultural land, but only if it is pasture, timber, 52.5waste, unusable wild land, or land included in state or federal farm programs. Agricultural 52.6classification for property shall be determined excluding the house, garage, and 52.7immediately surrounding one acre of land, and shall not be based upon the market value of 52.8any residential structures on the parcel or contiguous parcels under the same ownership. 52.9    (d) Real estate, excluding the house, garage, and immediately surrounding one acre 52.10of land, of less than ten acres which is exclusively and intensively used for raising or 52.11cultivating agricultural products, shall be considered as agricultural land. 52.12    Land shall be classified as agricultural even if all or a portion of the agricultural use 52.13of that property is the leasing to, or use by another person for agricultural purposes. 52.14    Classification under this subdivision is not determinative for qualifying under 52.15section 273.111. 52.16    The property classification under this section supersedes, for property tax purposes 52.17only, any locally administered agricultural policies or land use restrictions that define 52.18minimum or maximum farm acreage. 52.19    (e) The term "agricultural products" as used in this subdivision includes production 52.20for sale of: 52.21    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 52.22animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 52.23bees, and apiary products by the owner; 52.24    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 52.25for agricultural use; 52.26    (3) the commercial boarding of horses if the boarding is done in conjunction with 52.27raising or cultivating agricultural products as defined in clause (1); 52.28    (4) property which is owned and operated by nonprofit organizations used for 52.29equestrian activities, excluding racing; 52.30    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 52.31under section 97A.115; 52.32    (6) insects primarily bred to be used as food for animals; 52.33    (7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood 52.34products; and 52.35    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 52.36Department of Agriculture under chapter 28A as a food processor. 53.1    (f) If a parcel used for agricultural purposes is also used for commercial or industrial 53.2purposes, including but not limited to: 53.3    (1) wholesale and retail sales; 53.4    (2) processing of raw agricultural products or other goods; 53.5    (3) warehousing or storage of processed goods; and 53.6    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 53.7and (3), 53.8the assessor shall classify the part of the parcel used for agricultural purposes as class 53.91b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 53.10use. The grading, sorting, and packaging of raw agricultural products for first sale is 53.11considered an agricultural purpose. A greenhouse or other building where horticultural 53.12or nursery products are grown that is also used for the conduct of retail sales must be 53.13classified as agricultural if it is primarily used for the growing of horticultural or nursery 53.14products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 53.15those products. Use of a greenhouse or building only for the display of already grown 53.16horticultural or nursery products does not qualify as an agricultural purpose. 53.17    The assessor shall determine and list separately on the records the market value of 53.18the homestead dwelling and the one acre of land on which that dwelling is located. If any 53.19farm buildings or structures are located on this homesteaded acre of land, their market 53.20value shall not be included in this separate determination. 53.21    (g) To qualify for classification under paragraph (b), clause (4) new text begin (3) new text end , a privately 53.22owned public use airport must be licensed as a public airport under section 360.018. For 53.23purposes of paragraph (b), clause (4) new text begin (3) new text end , "landing area" means that part of a privately 53.24owned public use airport properly cleared, regularly maintained, and made available to the 53.25public for use by aircraft and includes runways, taxiways, aprons, and sites upon which 53.26are situated landing or navigational aids. A landing area also includes land underlying 53.27both the primary surface and the approach surfaces that comply with all of the following: 53.28    (i) the land is properly cleared and regularly maintained for the primary purposes of 53.29the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 53.30facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 53.31    (ii) the land is part of the airport property; and 53.32    (iii) the land is not used for commercial or residential purposes. 53.33The land contained in a landing area under paragraph (b), clause (4) new text begin (3) new text end , must be described 53.34and certified by the commissioner of transportation. The certification is effective until 53.35it is modified, or until the airport or landing area no longer meets the requirements of 53.36paragraph (b), clause (4) new text begin (3) new text end . For purposes of paragraph (b), clause (4) new text begin (3) new text end , "public access 54.1area" means property used as an aircraft parking ramp, apron, or storage hangar, or an 54.2arrival and departure building in connection with the airport. 54.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 54.4 new text begin thereafter, for taxes payable in 2008 and thereafter. new text end 54.5    Sec. 16. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read: 54.6    Subd. 24. Class 3. (a) Commercial and industrial property and utility real and 54.7personal property is class 3a. 54.8    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility 54.9real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent 54.10of the remaining market value. In the case of contiguous parcels of property owned by the 54.11same person or entity, only the value equal to the first-tier value of the contiguous parcels 54.12qualifies for the reduced class rate, except that contiguous parcels owned by the same 54.13person or entity shall be eligible for the first-tier value class rate on each separate business 54.14operated by the owner of the property, provided the business is housed in a separate 54.15structure. For the purposes of this subdivision, the first tier means the first $150,000 of 54.16market value. Real property owned in fee by a utility for transmission line right-of-way 54.17shall be classified at the class rate for the higher tier. 54.18    For purposes of this subdivision, parcels are considered to be contiguous even if 54.19they are separated from each other by a road, street, waterway, or other similar intervening 54.20type of property. Connections between parcels that consist of power lines or pipelines do 54.21not cause the parcels to be contiguous. Property owners who have contiguous parcels of 54.22property that constitute separate businesses that may qualify for the first-tier class rate shall 54.23notify the assessor by July 1, for treatment beginning in the following taxes payable year. 54.24    (2) All Personal property that is: (i) part of an electric generation, transmission, or 54.25distribution system; or (ii) new text begin , including tools, implements, and machinery, has a class rate new text end 54.26 new text begin of 3.0 percent. new text end 54.27     new text begin (3) Personal property that is either: (i) new text end part of a pipeline system transporting 54.28or distributing water, gas, crude oil, or petroleum products; and (iii) not described in 54.29clause (3), and all new text begin , including tools, implements, and machinery, or (ii) part of an electric new text end 54.30 new text begin transmission or distribution system, including tools, implements, and machinery, has a new text end 54.31 new text begin class rate of 2.25 percent. new text end 54.32     new text begin (4) new text end Railroad operating property has a class rate as provided under clause (1) for 54.33the first tier of market value and the remaining market value. In the case of multiple 54.34parcels in one county that are owned by one person or entity, only one first tier amount 54.35is eligible for the reduced rate. 55.1    (3) The entire market value of personal property that is: (i) tools, implements, and 55.2machinery of an electric generation, transmission, or distribution system; (ii) tools, 55.3implements, and machinery of a pipeline system transporting or distributing water, gas, 55.4crude oil, or petroleum products; or (iii) the new text begin (5) Personal property consisting of new text end mains 55.5and pipes used in the distribution of steam or hot or chilled water for heating or cooling 55.6buildings, has a class rate as provided under clause (1) for the remaining market value 55.7in excess of the first tier. 55.8    (b) Employment property defined in section 469.166, during the period provided 55.9in section 469.170, shall constitute class 3b. The class rates for class 3b property are 55.10determined under paragraph (a). 55.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes levied in 2007, payable new text end 55.12 new text begin in 2008, and thereafter. new text end 55.13    Sec. 17. Minnesota Statutes 2006, section 273.13, subdivision 25, is amended to read: 55.14    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 55.15units and used or held for use by the owner or by the tenants or lessees of the owner 55.16as a residence for rental periods of 30 days or more, excluding property qualifying for 55.17class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 55.18than hospitals exempt under section 272.02, and contiguous property used for hospital 55.19purposes, without regard to whether the property has been platted or subdivided. The 55.20market value of class 4a property has a class rate of 1.25 percent. 55.21    (b) Class 4b includes: 55.22    (1) residential real estate containing less than four units that does not qualify as class 55.234bb, other than seasonal residential recreational property; 55.24    (2) manufactured homes not classified under any other provision; 55.25    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 55.26farm classified under subdivision 23, paragraph (b) containing two or three units; and 55.27    (4) unimproved property that is classified residential as determined under subdivision 55.2833. 55.29    The market value of class 4b property has a class rate of 1.25 percent. 55.30    (c) Class 4bb includes: 55.31    (1) nonhomestead residential real estate containing one unit, other than seasonal 55.32residential recreational property; and 55.33    (2) a single family dwelling, garage, and surrounding one acre of property on a 55.34nonhomestead farm classified under subdivision 23, paragraph (b). 55.35    Class 4bb property has the same class rates as class 1a property under subdivision 22. 56.1    Property that has been classified as seasonal residential recreational property at 56.2any time during which it has been owned by the current owner or spouse of the current 56.3owner does not qualify for class 4bb. 56.4    (d) Class 4c property includes: 56.5    (1) except as provided in subdivision 22, paragraph (c), new text begin or subdivision 23, paragraph new text end 56.6 new text begin (b), clause (1), new text end real new text begin and personal new text end property devoted to temporary and seasonal residential 56.7occupancy for recreation purposes, including real new text begin and personal new text end property devoted to 56.8temporary and seasonal residential occupancy for recreation purposes and not devoted to 56.9commercial purposes for more than 250 days in the year preceding the year of assessment. 56.10For purposes of this clause, property is devoted to a commercial purpose on a specific 56.11day if any portion of the property is used for residential occupancy, and a fee is charged 56.12for residential occupancy. new text begin Class 4c property must contain three or more rental units. A new text end 56.13 new text begin "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual new text end 56.14 new text begin camping site equipped with water and electrical hookups for recreational vehicles. Class new text end 56.15 new text begin 4c property must provide recreational activities such as renting ice fishing houses, boats new text end 56.16 new text begin and motors, snowmobiles, downhill or cross-country ski equipment; provide marina new text end 56.17 new text begin services, launch services, or guide services; or sell bait and fishing tackle. A camping new text end 56.18 new text begin pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c new text end 56.19 new text begin regardless of the term of the rental agreement, as long as the use of the camping pad new text end 56.20 new text begin does not exceed 250 days. new text end In order for a property to be classified as class 4c, seasonal 56.21residential recreational for commercial purposes, at least 40 percent of the annual gross 56.22lodging receipts related to the property must be from business conducted during 90 56.23consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests 56.24during the year must be for periods of at least two consecutive nights; or (ii) at least 20 56.25percent of the annual gross receipts must be from charges for rental of fish houses, boats 56.26and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 56.27services, launch services, and guide services, or the sale of bait and fishing tackle. For 56.28purposes of this determination, a paid booking of five or more nights shall be counted as 56.29two bookings. Class 4c also includes commercial use real property used exclusively 56.30for recreational purposes in conjunction with class 4c property devoted to temporary 56.31and seasonal residential occupancy for recreational purposes, up to a total of two acres, 56.32provided the property is not devoted to commercial recreational use for more than 250 56.33days in the year preceding the year of assessment and is located within two miles of the 56.34class 4c property with which it is used. Owners of real new text begin and personal new text end property devoted to 56.35temporary and seasonal residential occupancy for recreation purposes and all or a portion 56.36of which was devoted to commercial purposes for not more than 250 days in the year 57.1preceding the year of assessment desiring classification as class 1c or 4c, must submit a 57.2declaration to the assessor designating the cabins or units occupied for 250 days or less in 57.3the year preceding the year of assessment by January 15 of the assessment year. Those 57.4cabins or units and a proportionate share of the land on which they are located will new text begin must new text end be 57.5designated class 1c or 4c as otherwise provided. The remainder of the cabins or units and 57.6a proportionate share of the land on which they are located will be designated as class 3a. 57.7The owner of property desiring designation as class 1c or 4c property must provide guest 57.8registers or other records demonstrating that the units for which class 1c or 4c designation 57.9is sought were not occupied for more than 250 days in the year preceding the assessment if 57.10so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 57.11 new text begin (4) conference center or meeting room, new text end and (4) new text begin (5) new text end other nonresidential facility operated 57.12on a commercial basis not directly related to temporary and seasonal residential occupancy 57.13for recreation purposes shall new text begin does new text end not qualify for class 1c or 4c; 57.14    (2) qualified property used as a golf course if: 57.15    (i) it is open to the public on a daily fee basis. It may charge membership fees or 57.16dues, but a membership fee may not be required in order to use the property for golfing, 57.17and its green fees for golfing must be comparable to green fees typically charged by 57.18municipal courses; and 57.19    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 57.20    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 57.21with the golf course is classified as class 3a property; 57.22    (3) real property up to a maximum of one acre new text begin three acres new text end of land owned new text begin and used new text end 57.23by a nonprofit community service oriented organization; provided that new text begin and that is not used new text end 57.24 new text begin for residential purposes on either a temporary or permanent basis, qualifies for class 4c new text end 57.25 new text begin provided that it meets either of the following: new text end 57.26     new text begin (i) new text end the property is not used for a revenue-producing activity for more than six days 57.27in the calendar year preceding the year of assessment and the property is not used for 57.28residential purposes on either a temporary or permanent basis new text begin ; or new text end 57.29     new text begin (ii) the organization makes annual charitable contributions and donations at least new text end 57.30 new text begin equal to the property's previous year's property taxes and the property is allowed to be new text end 57.31 new text begin used for public and community meetings or events for no charge, as appropriate to the new text end 57.32 new text begin size of the facility new text end . 57.33    For purposes of this clause, 57.34 new text begin (A) "charitable contributions and donations" has the same meaning as lawful new text end 57.35 new text begin gambling purposes under section 349.12, subdivision 25, excluding those purposes new text end 57.36 new text begin relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; new text end 58.1 new text begin (B) "property taxes" excludes the state general tax; new text end 58.2 new text begin (C) new text end a "nonprofit community service oriented organization" means any corporation, 58.3society, association, foundation, or institution organized and operated exclusively for 58.4charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 58.5federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue 58.6Code of 1986, as amended through December 31, 1990. For purposes of this clause, new text begin ; and new text end 58.7 new text begin (D) new text end "revenue-producing activities" shall include but not be limited to property or that 58.8portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 58.9liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 58.10alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 58.11insurance business, or office or other space leased or rented to a lessee who conducts a 58.12for-profit enterprise on the premises. 58.13Any portion of the property new text begin qualifying under item (i) new text end which is used for revenue-producing 58.14activities for more than six days in the calendar year preceding the year of assessment 58.15shall be assessed as class 3a. The use of the property for social events open exclusively 58.16to members and their guests for periods of less than 24 hours, when an admission is 58.17not charged nor any revenues are received by the organization shall not be considered a 58.18revenue-producing activity; new text begin . new text end 58.19     new text begin The organization shall maintain records of its charitable contributions and donations new text end 58.20 new text begin and of public meetings and events held on the property and make them available upon new text end 58.21 new text begin request any time to the assessor to ensure eligibility. An organization meeting the new text end 58.22 new text begin requirement under item (ii) must file an application by May 1 with the assessor for new text end 58.23 new text begin eligibility for the current year's assessment. The commissioner shall prescribe a uniform new text end 58.24 new text begin application form and instructions; new text end 58.25    (4) postsecondary student housing of not more than one acre of land that is owned by 58.26a nonprofit corporation organized under chapter 317A and is used exclusively by a student 58.27cooperative, sorority, or fraternity for on-campus housing or housing located within two 58.28miles of the border of a college campus; 58.29    (5) manufactured home parks as defined in section 327.14, subdivision 3; 58.30    (6) real property that is actively and exclusively devoted to indoor fitness, health, 58.31social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 58.32and is located within the metropolitan area as defined in section 473.121, subdivision 2; 58.33    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 58.34under section 272.01, subdivision 2, and the land on which it is located, provided that: 58.35    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 58.36Airports Commission, or group thereof; and 59.1    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 59.2leased premise, prohibits commercial activity performed at the hangar. 59.3    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 59.4be filed by the new owner with the assessor of the county where the property is located 59.5within 60 days of the sale; 59.6    (8) a privately owned noncommercial aircraft storage hangar not exempt under 59.7section 272.01, subdivision 2, and the land on which it is located, provided that: 59.8    (i) the land abuts a public airport; and 59.9    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 59.10agreement restricting the use of the premises, prohibiting commercial use or activity 59.11performed at the hangar; and 59.12    (9) residential real estate, a portion of which is used by the owner for homestead 59.13purposes, and that is also a place of lodging, if all of the following criteria are met: 59.14    (i) rooms are provided for rent to transient guests that generally stay for periods 59.15of 14 or fewer days; 59.16    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 59.17in the basic room rate; 59.18    (iii) meals are not provided to the general public except for special events on fewer 59.19than seven days in the calendar year preceding the year of the assessment; and 59.20    (iv) the owner is the operator of the property. 59.21The market value subject to the 4c classification under this clause is limited to five rental 59.22units. Any rental units on the property in excess of five, must be valued and assessed as 59.23class 3a. The portion of the property used for purposes of a homestead by the owner must 59.24be classified as class 1a property under subdivision 22. 59.25    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 59.26parcel of seasonal residential recreational property not used for commercial purposes has 59.27the same class rates as class 4bb property, (ii) manufactured home parks assessed under 59.28clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 59.29residential recreational property has a class rate of one percent for the first $500,000 of 59.30market value, and 1.25 percent for the remaining market value, (iv) the market value of 59.31property described in clause (4) has a class rate of one percent, (v) the market value of 59.32property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that 59.33portion of the market value of property in clause (9) qualifying for class 4c property 59.34has a class rate of 1.25 percent. 59.35    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 59.36by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 60.1of the units in the building qualify as low-income rental housing units as certified under 60.2section 273.128, subdivision 3, only the proportion of qualifying units to the total number 60.3of units in the building qualify for class 4d. The remaining portion of the building shall be 60.4classified by the assessor based upon its use. Class 4d also includes the same proportion of 60.5land as the qualifying low-income rental housing units are to the total units in the building. 60.6For all properties qualifying as class 4d, the market value determined by the assessor must 60.7be based on the normal approach to value using normal unrestricted rents. 60.8    Class 4d property has a class rate of 0.75 percent. 60.9 new text begin EFFECTIVE DATE. new text end new text begin The portion of this section relating to class 4c resorts in new text end 60.10 new text begin paragraph (d), clause (1), is effective for assessment year 2008 and thereafter, for taxes new text end 60.11 new text begin payable in 2009 and thereafter. The portion of this section relating to nonprofit community new text end 60.12 new text begin service oriented organizations is effective for assessment year 2007 and thereafter, for new text end 60.13 new text begin taxes payable in 2008 and thereafter, except that the application date in paragraph (d), new text end 60.14 new text begin clause (3), item (ii), for the 2007 assessment is extended to September 1, 2007. new text end 60.15    Sec. 18. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read: 60.16    Subd. 33. Classification of unimproved property. (a) All real property that is not 60.17improved with a structure must be classified according to its current use. 60.18    (b) new text begin Except as provided in subdivision 23, paragraph (b), clause (1), new text end real property that 60.19is not improved with a structure and for which there is no identifiable current use must be 60.20classified according to its highest and best use permitted under the local zoning ordinance. 60.21If the ordinance permits more than one use, the land must be classified according to the 60.22highest and best use permitted under the ordinance. If no such ordinance exists, the 60.23assessor shall consider the most likely potential use of the unimproved land based upon 60.24the use made of surrounding land or land in proximity to the unimproved land. 60.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 60.26 new text begin thereafter, for taxes payable in 2008 and thereafter. new text end 60.27    Sec. 19. Minnesota Statutes 2006, section 273.13, is amended by adding a subdivision 60.28to read: 60.29     new text begin Subd. 34. new text end new text begin Homestead of disabled veteran. new text end new text begin (a) All or a portion of the market value new text end 60.30 new text begin of property qualifying for homestead classification under subdivision 22 or 23 is excluded new text end 60.31 new text begin in determining the property's taxable market value if it serves as the homestead of a new text end 60.32 new text begin military veteran, as defined in section 197.447, who has a service-connected disability of new text end 60.33 new text begin 50 percent or more. To qualify for exclusion under this subdivision, the veteran must have new text end 61.1 new text begin been honorably discharged from the United States armed forces, as indicated by United new text end 61.2 new text begin States Government Form DD214 or other official military discharge papers, and must be new text end 61.3 new text begin certified by the United States Veterans Administration as having a service-connected new text end 61.4 new text begin disability. new text end 61.5     new text begin (b)(1) For a disability rating of at least 50 percent but less than 70 percent, $100,000 new text end 61.6 new text begin of market value is excluded; new text end 61.7     new text begin (2) for a disability rating of 70 percent or more, $150,000 of market value is new text end 61.8 new text begin excluded, except as provided in clause (3); and new text end 61.9     new text begin (3) for a total (100 percent) and permanent disability, $300,000 of market value is new text end 61.10 new text begin excluded. new text end 61.11     new text begin (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), new text end 61.12 new text begin clause (3), predeceases the veteran's spouse, and if upon the death of the veteran the new text end 61.13 new text begin spouse holds the legal or beneficial title to the homestead and permanently resides there, new text end 61.14 new text begin the exclusion shall carry over to the benefit of the veteran's spouse until such time as the new text end 61.15 new text begin spouse sells, transfers, or otherwise disposes of the property. new text end 61.16     new text begin (d) In the case of an agricultural homestead, only the portion of the property new text end 61.17 new text begin consisting of the house and garage and immediately surrounding one acre of land qualifies new text end 61.18 new text begin for the valuation exclusion under this subdivision. new text end 61.19     new text begin (e) A property qualifying for a valuation exclusion under this subdivision is not new text end 61.20 new text begin eligible for the credit under section 273.1384, subdivision 1. new text end 61.21     new text begin (f) To qualify for a valuation exclusion under this subdivision a property owner must new text end 61.22 new text begin apply to the assessor by July 1 of each assessment year, except that an annual reapplication new text end 61.23 new text begin is not required once a property has been accepted for a valuation exclusion under paragraph new text end 61.24 new text begin (b), clause (3), and the property continues to qualify until there is a change in ownership. new text end 61.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2007 and new text end 61.26 new text begin thereafter, for taxes payable in 2008 and thereafter. new text end 61.27    Sec. 20. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 61.28to read: 61.29     new text begin Subd. 3b. new text end new text begin Supplemental notice of proposed levy increases. new text end new text begin (a) If a city that has new text end 61.30 new text begin a population of more than 2,500 or a county proposes a levy increase greater than the new text end 61.31 new text begin threshold increase calculated under paragraph (b), it shall prepare and deliver by first class new text end 61.32 new text begin mail a supplemental proposed property tax notice to each property taxpayer in the taxing new text end 61.33 new text begin jurisdiction, as described in this subdivision. new text end 61.34     new text begin (b) The threshold increase in the proposed property tax levy is equal to the levy in new text end 61.35 new text begin the previous year, multiplied by the sum of (1) one percent, (2) the percentage growth, new text end 62.1 new text begin if any, in the population in the taxing jurisdiction for the most recent available year, (3) new text end 62.2 new text begin the percentage increase in the total market value in the taxing jurisdiction due to new new text end 62.3 new text begin construction of commercial and industrial property, and (4) the percentage increase in the new text end 62.4 new text begin implicit price deflator for government consumption expenditures and gross investment for new text end 62.5 new text begin state and local governments as prepared by the United States Department of Commerce new text end 62.6 new text begin for the most recent 12-month period ending March of the levy year. new text end 62.7     new text begin (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy for new text end 62.8 new text begin the previous year, (2) its threshold levy increase indicating that this increase is calculated new text end 62.9 new text begin to reflect reasonable growth adjusting for population increases, increased demand from new text end 62.10 new text begin new business, and inflation, (3) the proposed property tax increase, and (4) the amount the new text end 62.11 new text begin proposed increase exceeds the threshold increase. The notice must contain a description of new text end 62.12 new text begin why the jurisdiction needs to raise property taxes above the threshold amount and how the new text end 62.13 new text begin taxing jurisdiction plans to spend the additional revenue. new text end 62.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes levied in calendar year new text end 62.15 new text begin 2007 and thereafter. new text end 62.16    Sec. 21. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 62.17to read: 62.18     new text begin Subd. 6c. new text end new text begin Joint public hearing; nonmetropolitan county, cities, and school new text end 62.19 new text begin districts. new text end new text begin (a) Notwithstanding any other provision of law, the county board may hold a new text end 62.20 new text begin joint hearing with the governing bodies of all taxing authorities located wholly or partially new text end 62.21 new text begin within the county that are required to hold a public hearing under this section, excluding new text end 62.22 new text begin special taxing districts. The primary purpose of the joint hearing is for taxpayer efficiency new text end 62.23 new text begin by allowing taxpayers to come to a single public hearing to discuss the budgets and new text end 62.24 new text begin proposed property tax levies of most taxing authorities that impact the taxes on their new text end 62.25 new text begin property. new text end 62.26     new text begin (b) This subdivision applies only to counties located outside the metropolitan area new text end 62.27 new text begin as defined under section new text end new text begin , subdivision 2. If a city or school district is located new text end 62.28 new text begin partially within the metropolitan area, that taxing jurisdiction may participate in its new text end 62.29 new text begin nonmetropolitan county's joint hearing, if it so chooses. new text end 62.30     new text begin (c) Upon the adoption of a resolution by the county board to hold a joint public new text end 62.31 new text begin hearing, the county shall notify each city with a population over 500 and each school new text end 62.32 new text begin district located wholly or partially within the county of its intention to hold the joint new text end 62.33 new text begin hearing and ask each of the taxing authorities if it would like to participate. Participation new text end 62.34 new text begin is voluntary, and participation in the joint hearing is in lieu of the requirement for the new text end 62.35 new text begin governing body to hold a separate public hearing under subdivision 6. If a participating new text end 63.1 new text begin city or school district is located in more than one county, the hearing under this subdivision new text end 63.2 new text begin is in lieu of the requirement to hold a separate public hearing if 75 percent or more new text end 63.3 new text begin of that city or school district's previous year's net tax capacity is in the county where new text end 63.4 new text begin the hearing is held. new text end 63.5     new text begin (d) The initial joint hearing must be held on the first Thursday in December. The new text end 63.6 new text begin county may hold an additional joint hearing on another date before December 20 if the new text end 63.7 new text begin majority of the participating taxing authorities want an additional hearing. new text end 63.8     new text begin The county board shall obtain a meeting space to hold the joint hearing, preferably new text end 63.9 new text begin at a public building such as the courthouse, school, or community center. The location new text end 63.10 new text begin shall be as centrally located within the county as possible. The meeting shall generally be new text end 63.11 new text begin structured in the following general manner: new text end 63.12     new text begin (1) the first 30 to 60 minutes must be devoted to discussion of the county's budget new text end 63.13 new text begin and levy; new text end 63.14     new text begin (2) the next 30 to 60 minutes must be devoted to discussion of the city's budget and new text end 63.15 new text begin levy, with each city's discussion held in a separate room, preferably in the same building; new text end 63.16     new text begin (3) the next 30 to 60 minutes must be devoted to discussion of the school district's new text end 63.17 new text begin levy, with each school district's discussion held in a separate room, preferably in the new text end 63.18 new text begin same building; and new text end 63.19     new text begin (4) during the last 30 minutes the governing bodies must reassemble in a joint new text end 63.20 new text begin meeting to entertain any follow-up questions that have arisen from the separate discussions. new text end 63.21     new text begin The county shall attempt to keep the total public hearing to within three hours. new text end 63.22     new text begin (e) In lieu of the public advertisement requirement in subdivision 5a, the county shall new text end 63.23 new text begin have a single advertisement listing the county, each city with a population of over 500, and new text end 63.24 new text begin each school district participating in the joint public hearing listing. Any taxing authority new text end 63.25 new text begin participating under this subdivision is exempt from the separate public advertisement new text end 63.26 new text begin requirement under subdivision 5a. The cost of the joint hearing advertisement shall be new text end 63.27 new text begin apportioned in the same manner provided in subdivision 4. The notice must be published new text end 63.28 new text begin not less than two business days nor more than six business days before the hearing. The new text end 63.29 new text begin newspaper selected must be one of general interest and readership in the community, and new text end 63.30 new text begin not one of limited subject matter. The advertisement must appear in a newspaper that is new text end 63.31 new text begin published at least once per week. The advertisement must be in the following form: new text end 63.32 new text begin "NOTICE OF JOINT PUBLIC HEARING new text end 63.33 new text begin PROPOSED TOTAL PROPERTY TAXES new text end 63.34 new text begin FOR PARTICIPATING TAXING AUTHORITIES new text end 63.35 new text begin The property tax amounts below compare that portion of the current budget levied in new text end 63.36 new text begin property taxes in the county, cities, and school districts for (year) with the property new text end 64.1 new text begin taxes the county, cities, and school districts propose to collect in (year) for those taxing new text end 64.2 new text begin authorities participating in the joint public hearing. new text end 64.3 64.4 new text begin Taxing Authority new text end new text begin (Year) Property new text end new text begin Taxes new text end new text begin Proposed (Year) new text end new text begin Property Taxes new text end new text begin Change (Year) - new text end new text begin (Year) new text end 64.5 new text begin $....... new text end new text begin $....... new text end new text begin $....... new text end new text begin ...% new text end 64.6 new text begin $....... new text end new text begin $....... new text end new text begin $....... new text end new text begin ...% new text end 64.7 new text begin $....... new text end new text begin $....... new text end new text begin $....... new text end new text begin ...% new text end 64.8 new text begin ATTEND THE JOINT PUBLIC HEARING new text end 64.9 new text begin All residents are invited to attend the joint public hearing of the county/cities/school new text end 64.10 new text begin districts to express your opinions on the proposed amount of (year) property taxes. The new text end 64.11 new text begin hearing will be held on: new text end 64.12 new text begin (Month/Day/Year/Time) new text end 64.13 new text begin (Location/Address) new text end 64.14 new text begin If the discussion cannot be completed, and another hearing is scheduled, a time and place new text end 64.15 new text begin for that hearing will be announced at this hearing. You are also invited to send your new text end 64.16 new text begin written comments to the county auditor. If the comments relate to the city or school new text end 64.17 new text begin district's levy, please identify that on the envelope so the county auditor can direct the new text end 64.18 new text begin correspondence to the right jurisdiction." new text end 64.19     new text begin The formal adoption of the taxing authority's levy must not be made at the joint new text end 64.20 new text begin public hearing held under this subdivision. The formal adoption must be made at one of new text end 64.21 new text begin the regularly scheduled meetings of the taxing authority's governing body. However, the new text end 64.22 new text begin property tax levy amount that is subsequently adopted cannot exceed the amount shown to new text end 64.23 new text begin taxpayers at the joint public hearing. new text end 64.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for hearings held in 2007 and new text end 64.25 new text begin thereafter. new text end 64.26    Sec. 22. Minnesota Statutes 2006, section 278.05, subdivision 6, is amended to read: 64.27    Subd. 6. Dismissal of petition; exclusion of certain evidence. (a) new text begin In cases where new text end 64.28 new text begin the petitioner contests the valuation of income-producing property, new text end information, including 64.29income and expense figures new text begin in the form of (1) year-end financial statements for the new text end 64.30 new text begin year prior to the assessment date, (2) year-end financial statements for the year of the new text end 64.31 new text begin assessment date, and (3) rent rolls on the assessment date including tenant name, lease start new text end 64.32 new text begin and end dates, option terms, base rent, square footage leased and vacant space new text end , verified net 64.33rentable areas new text begin in the form of net rentable square footage of the building or buildings new text end , and 64.34anticipated income and expenses new text begin in the form of proposed budgets for the year subsequent new text end 64.35 new text begin to the year of the assessment date new text end , for income-producing property must be provided to 65.1the county assessor no later than 60 days after the applicable filing deadline contained 65.2in section 278.01, subdivision 1 or 4. Failure to provide the information required in this 65.3paragraph shall result in the dismissal of the petition, unless (1) the failure to provide it was 65.4due to the unavailability of the evidence at the time that the information was due, or (2) 65.5the petitioner was not aware of or informed of the requirement to provide the information. 65.6If the petitioner proves that the requirements under clause (2) are met, the petitioner has 65.7an additional 30 days to provide the information from the time the petitioner became 65.8aware of or was informed of the requirement to provide the information, otherwise the 65.9petition shall be dismissed. 65.10    (b) Provided that the information as contained in paragraph (a) is timely submitted to 65.11the county assessor, the county assessor shall furnish the petitioner at least five days before 65.12the hearing under this chapter with the property's appraisal, if any, which will be presented 65.13to the court at the hearing. The petitioner shall furnish to the county assessor at least five 65.14days before the hearing under this chapter with the property's appraisal, if any, which 65.15will be presented to the court at the hearing. An appraisal of the petitioner's property 65.16done by or for the county shall not be admissible as evidence if the county assessor does 65.17not comply with the provisions in this paragraph. The petition shall be dismissed if the 65.18petitioner does not comply with the provisions in this paragraph. 65.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for petitions filed beginning July new text end 65.20 new text begin 1, 2007. new text end 65.21    Sec. 23. Minnesota Statutes 2006, section 279.01, is amended by adding a subdivision 65.22to read: 65.23     new text begin Subd. 5. new text end new text begin Homestead property; monthly payment option. new text end new text begin (a) In the case of class new text end 65.24 new text begin 1, 1c, or 2a homestead property as defined in section 273.13, a homeowner may apply new text end 65.25 new text begin to make payments in eight equal monthly installments on the 15th day of each month new text end 65.26 new text begin from May through December. A homeowner desiring to utilize this option must apply new text end 65.27 new text begin to the county by April 15 of the year that the taxes are payable, following procedures new text end 65.28 new text begin established by the county. new text end 65.29     new text begin (b) Each county must establish procedures allowing homeowners the option of new text end 65.30 new text begin paying the current year's property taxes on a monthly basis. The procedures must address new text end 65.31 new text begin how homeowners apply to participate in the program, how taxpayers can make payments, new text end 65.32 new text begin including the possibility of automatic bank withdrawals, how and whether the taxpayer is new text end 65.33 new text begin notified of each payment due date, whether to require annual applications, how to modify new text end 65.34 new text begin the property tax settlement process, and any other procedures the county board deems new text end 66.1 new text begin necessary to implement this subdivision. The proposed procedures must be submitted to new text end 66.2 new text begin the commissioner of revenue by November 1, 2007. The commissioner must review the new text end 66.3 new text begin procedures and approve them or notify the county of changes that must be made to the new text end 66.4 new text begin proposed procedures by January 1, 2008. new text end 66.5     new text begin (c) The application procedure must be included in the property tax statement mailing. new text end 66.6     new text begin (d) Penalties on unpaid taxes on property under the monthly payment program new text end 66.7 new text begin must be computed by equating the number of days that any of the monthly payments are new text end 66.8 new text begin overdue to the penalty for the corresponding number of days after May 15 that a payment new text end 66.9 new text begin is overdue under subdivision 1. new text end 66.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 66.11 new text begin thereafter. new text end 66.12    Sec. 24. Minnesota Statutes 2006, section 279.37, subdivision 1a, is amended to read: 66.13    Subd. 1a. Class 3a property. (a) The delinquent taxes upon a parcel of property 66.14which was classified class 3a, for the previous year's assessment and had a total market 66.15value of $200,000 new text begin $500,000 new text end or less for that same assessment shall be eligible to be 66.16composed into a confession of judgment. Property qualifying under this subdivision 66.17shall be subject to the same provisions as provided in this section except as provided 66.18in paragraphs (b) to (d). 66.19    (b) Current year taxes and penalty due at the time the confession of judgment 66.20is entered must be paid. 66.21    (c) The down payment must include all special assessments due in the current tax 66.22year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties, 66.23and interest accrued against the parcel. The balance remaining is payable in four equal 66.24annual installments. 66.25    (d) The amounts entered in judgment bear interest at the rate provided in section 66.26279.03, subdivision 1a , commencing with the date the judgment is entered. The interest 66.27rate is subject to change each year on the unpaid balance in the manner provided in section 66.28279.03, subdivision 1a . 66.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for confessions of judgment entered new text end 66.30 new text begin into July 1, 2007, and thereafter. new text end 66.31    Sec. 25. Minnesota Statutes 2006, section 289A.08, subdivision 13, is amended to read: 66.32    Subd. 13. Long and short forms; local use tax instructions new text begin ; property tax refund new text end 66.33 new text begin information new text end . new text begin (a) new text end The commissioner shall provide a long form individual income tax 67.1return and may provide a short form individual income tax return. The returns shall be in 67.2a form that is consistent with the provisions of chapter 290, notwithstanding any other 67.3law to the contrary. The nongame wildlife checkoff provided in section 290.431 and the 67.4dependent care credit provided in section 290.067 must be included on the short form. 67.5     new text begin (b) new text end The commissioner must provide information on local use taxes in the individual 67.6income tax instruction booklet. The commissioner must provide this information in the 67.7same section of the booklet that provides information on the state use tax. 67.8     new text begin (c) The commissioner must refer to the property tax refunds allowed under chapter new text end 67.9 new text begin 290A on the front cover of the individual income tax instruction booklet, as well as new text end 67.10 new text begin information within the booklet on income eligibility for the homestead and renter refunds, new text end 67.11 new text begin and maximum refund amounts allowed in the current year. new text end 67.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.13    Sec. 26. Minnesota Statutes 2006, section 289A.40, subdivision 4, is amended to read: 67.14    Subd. 4. Property tax refund claims. A property tax refund claim under chapter 67.15290A is not allowed if the initial claim is filed more than new text begin (1) new text end one year after the original 67.16due date for filing the claim new text begin for refunds under section 290A.04, subdivision 2h; or (2) two new text end 67.17 new text begin years after the original due date for filing the claim for refunds under section 290A.04, new text end 67.18 new text begin subdivisions 2, 2a, and 2k new text end . 67.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2006 new text end 67.20 new text begin and thereafter and rent paid in 2005 and thereafter. new text end 67.21    Sec. 27. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read: 67.22    Subdivision 1. Program qualifications. The qualifications for the senior citizens' 67.23property tax deferral program are as follows: 67.24    (1) the property must be owned and occupied as a homestead by a person 65 years of 67.25age or older. In the case of a married couple, both new text begin only one new text end of the spouses must be at least 67.2665 years old at the time the first property tax deferral is granted, regardless of whether the 67.27property is titled in the name of one spouse or both spouses, or titled in another way that 67.28permits the property to have homestead status; 67.29    (2) the total household income of the qualifying homeowners new text begin homeowner, or in the new text end 67.30 new text begin case of a married couple, the qualifying homeowner and spouse new text end , as defined in section 67.31290A.03, subdivision 5 , for the calendar year preceding the year of the initial application 67.32may not exceed $60,000 new text begin $75,000 new text end ; 68.1    (3) the homestead must have been owned and occupied as the homestead of at 68.2least one of the qualifying homeowners for at least 15 years prior to the year the initial 68.3application is filed; 68.4    (4) there are no state or federal tax liens or judgment liens on the homesteaded 68.5property; 68.6    (5) there are no mortgages or other liens on the property that secure future advances, 68.7except for those subject to credit limits that result in compliance with clause (6); and 68.8    (6) the total unpaid balances of debts secured by mortgages and other liens on the 68.9property, including unpaid and delinquent special assessments and interest and any 68.10delinquent property taxes, penalties, and interest, but not including property taxes payable 68.11during the year, does not exceed 75 percent of the assessor's estimated market value for 68.12the year. 68.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 68.14 new text begin July 1, 2007. new text end 68.15    Sec. 28. Minnesota Statutes 2006, section 290B.03, subdivision 2, is amended to read: 68.16    Subd. 2. Qualifying homestead; defined. Qualifying homestead property is defined 68.17as the dwelling occupied as the homeowner's principal residence and so much of the land 68.18surrounding it as is reasonably necessary for use of the dwelling as a home and any other 68.19property used for purposes of a homestead as defined in section 273.13, subdivisions 68.2022 and 23 , but not to exceed one acre. The homestead may be part of a multidwelling 68.21building and the land on which it is built. new text begin Property is not qualifying homestead property if new text end 68.22 new text begin a person or entity other than the applicant or the applicant's spouse holds an interest in the new text end 68.23 new text begin property as the vendor under a contract for deed or as a remainderperson. new text end 68.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications submitted on or new text end 68.25 new text begin after January 1, 2007. new text end 68.26    Sec. 29. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read: 68.27    Subd. 3. Excess-income certification by taxpayer. A taxpayer whose initial 68.28application has been approved under subdivision 2 shall notify the commissioner of 68.29revenue in writing by July 1 if the taxpayer's household income for the preceding calendar 68.30year exceeded $60,000 new text begin $75,000 new text end . The certification must state the homeowner's total 68.31household income for the previous calendar year. No property taxes may be deferred 68.32under this chapter in any year following the year in which a program participant filed or 68.33should have filed an excess-income certification under this subdivision new text begin showing income in new text end 69.1 new text begin excess of the maximum allowed new text end , unless the participant has filed a resumption of eligibility 69.2certification as described in subdivision 4. 69.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 69.4 new text begin July 1, 2007. new text end 69.5    Sec. 30. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read: 69.6    Subd. 4. Resumption of eligibility certification by taxpayer. A taxpayer who has 69.7previously filed an excess-income certification under subdivision 3 may resume program 69.8participation if the taxpayer's household income for a subsequent year is $60,000 new text begin $75,000 new text end 69.9or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 69.10the commissioner of revenue in writing by July 1 of the year following a calendar year in 69.11which the taxpayer's household income is $60,000 new text begin $75,000 new text end or less. The certification must 69.12state the taxpayer's total household income for the previous calendar year. Once a taxpayer 69.13resumes participation in the program under this subdivision, participation will continue 69.14until the taxpayer files a subsequent excess-income certification under subdivision 3 or 69.15until participation is terminated under section 290B.08, subdivision 1. 69.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed on or after new text end 69.17 new text begin July 1, 2007. new text end 69.18    Sec. 31. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read: 69.19    Subdivision 1. Determination by commissioner. The commissioner shall 69.20determine each qualifying homeowner's "annual maximum property tax amount" 69.21following approval of the homeowner's initial application and following the receipt of a 69.22resumption of eligibility certification. The "annual maximum property tax amount" equals 69.23three percent of the homeowner's total household income for the year preceding either the 69.24initial application or the resumption of eligibility certification, whichever is applicable. 69.25Following approval of the initial application, the commissioner shall determine the 69.26qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative 69.27to the appropriate assessment year for any homeowner whose total household income 69.28for the previous year exceeds $60,000 new text begin $75,000 new text end . No tax shall be deferred in any year in 69.29which the homeowner does not meet the program qualifications in section 290B.03. The 69.30maximum allowable total deferral is equal to 75 percent of the assessor's estimated market 69.31value for the year, less the balance of any mortgage loans and other amounts secured by 69.32liens against the property at the time of application, including any unpaid and delinquent 70.1special assessments and interest and any delinquent property taxes, penalties, and interest, 70.2but not including property taxes payable during the year. 70.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications received on or after new text end 70.4 new text begin July 1, 2007. new text end 70.5    Sec. 32. Minnesota Statutes 2006, section 290B.07, is amended to read: 70.6290B.07 LIEN; DEFERRED PORTION. 70.7    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, 70.8or special assessments and interest deferred under this chapter is deemed a loan from the 70.9state to the program participant. The commissioner must compute the interest as provided 70.10in section 270C.40, subdivision 5, but not to exceed five percent, and maintain records of 70.11the total deferred amount and interest for each participant. Interest shall accrue beginning 70.12September 1 of the payable year for which the taxes are deferred new text begin , provided that no interest new text end 70.13 new text begin shall be charged on (1) deferred property tax amounts on applications filed on or after new text end 70.14 new text begin July 1, 2007, or (2) deferred property taxes beginning with taxes payable in 2008 on new text end 70.15 new text begin applications filed prior to July 1, 2007 new text end . Any deferral made under this chapter shall not 70.16be construed as delinquent property taxes. 70.17    The lien created under section 272.31 continues to secure payment by the taxpayer, 70.18or by the taxpayer's successors or assigns, of the amount deferred, including interest, with 70.19respect to all years for which amounts are deferred. The lien for deferred taxes and interest 70.20has the same priority as any other lien under section 272.31, except that liens, including 70.21mortgages, recorded or filed prior to the recording or filing of the notice under section 70.22290B.04, subdivision 2 , have priority over the lien for deferred taxes and interest. A 70.23seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser 70.24or an assignee of the purchaser, has priority over deferred taxes and interest on deferred 70.25taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred 70.26taxes and interest for future years has the same priority as the lien for deferred taxes and 70.27interest for the first year, which is always higher in priority than any mortgages or other 70.28liens filed, recorded, or created after the notice recorded or filed under section 290B.04, 70.29subdivision 2 . The county treasurer or auditor shall maintain records of the deferred 70.30portion and shall list the amount of deferred taxes for the year and the cumulative deferral 70.31and interest for all previous years as a lien against the property. In any certification of 70.32unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes 70.33payable in the current year, deferred taxes and interest, and delinquent taxes. Payment 70.34of the deferred portion becomes due and owing at the time specified in section 290B.08. 71.1Upon receipt of the payment, the commissioner shall issue a receipt for it to the person 71.2making the payment upon request and shall notify the auditor of the county in which the 71.3parcel is located, within ten days, identifying the parcel to which the payment applies. 71.4Upon receipt by the commissioner of revenue of collected funds in the amount of the 71.5deferral, the state's loan to the program participant is deemed paid in full. 71.6    (b) If property for which taxes have been deferred under this chapter forfeits 71.7under chapter 281 for nonpayment of a nondeferred property tax amount, or because 71.8of nonpayment of amounts previously deferred following a termination under section 71.9290B.08 , the lien for the taxes deferred under this chapter, plus interest and costs, shall be 71.10canceled by the county auditor as provided in section 282.07. However, notwithstanding 71.11any other law to the contrary, any proceeds from a subsequent sale of the property under 71.12chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale 71.13fund for any direct costs of selling the property or any costs directly related to preparing 71.14the property for sale, and then to reimburse the state for the amount of the canceled lien. 71.15Within 90 days of the receipt of any sale proceed to which the state is entitled under these 71.16provisions, the county auditor must pay those funds to the commissioner of revenue by 71.17warrant for deposit in the general fund. No other deposit, use, distribution, or release of 71.18gross sale proceeds or receipts may be made by the county until payments sufficient 71.19to fully reimburse the state for the canceled lien amount have been transmitted to the 71.20commissioner. 71.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007. new text end 71.22    Sec. 33. new text begin [290D.01] CITATION. new text end 71.23     new text begin This program shall be named the "seasonal recreational property tax deferral new text end 71.24 new text begin program." new text end 71.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007. new text end 71.26    Sec. 34. new text begin [290D.02] TERMS. new text end 71.27     new text begin Subdivision 1. new text end new text begin Terms. new text end new text begin For purposes of sections 290D.01 to 290D.08, the terms new text end 71.28 new text begin defined in this section have the meanings given them. new text end 71.29     new text begin Subd. 2. new text end new text begin Primary property owner. new text end new text begin "Primary property owner" means a person who new text end 71.30 new text begin (1) has been the owner, or one of the owners, of the eligible property for at least 15 years new text end 71.31 new text begin prior to the year the application is filed under section 290D.04; and (2) applies for the new text end 71.32 new text begin deferral of property taxes under section 290D.04. new text end 72.1     new text begin Subd. 3. new text end new text begin Secondary property owner. new text end new text begin "Secondary property owner" means any new text end 72.2 new text begin person, other than the primary property owner, who has been an owner of the eligible new text end 72.3 new text begin property for at least 15 years prior to the year the initial application is filed for deferral new text end 72.4 new text begin of property taxes under section 290D.04. new text end 72.5     new text begin Subd. 4. new text end new text begin Eligible property. new text end new text begin "Eligible property" means a parcel of property or new text end 72.6 new text begin contiguous parcels of property under the same ownership classified as noncommercial new text end 72.7 new text begin seasonal residential recreational 4c(1) property under section 273.13, subdivision 25. new text end 72.8     new text begin Subd. 5. new text end new text begin Base property tax amount. new text end new text begin "Base property tax amount" means the total new text end 72.9 new text begin property taxes levied by all taxing jurisdictions, including special assessments, on the new text end 72.10 new text begin eligible property in the year prior to the year that the initial application is approved under new text end 72.11 new text begin section 290D.04 and payable in the year of the application. new text end 72.12     new text begin Subd. 6. new text end new text begin Special assessments. new text end new text begin "Special assessments" means any assessment, fee, or new text end 72.13 new text begin other charge that may be made by law, and that appears on the property tax statement for new text end 72.14 new text begin the property for collection under the laws applicable to the enforcement of real estate taxes. new text end 72.15     new text begin Subd. 7. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of revenue. new text end 72.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 72.17 new text begin and thereafter. new text end 72.18    Sec. 35. new text begin [290D.03] QUALIFICATIONS FOR DEFERRAL. new text end 72.19     new text begin In order for an eligible property to qualify for treatment under this program: new text end 72.20     new text begin (1) the eligible property must have been owned solely by the primary property owner, new text end 72.21 new text begin or jointly with others, for at least 15 years prior to the year the initial application is filed; new text end 72.22     new text begin (2) there must be no state or federal tax liens or judgment liens on the eligible new text end 72.23 new text begin property; new text end 72.24     new text begin (3) there must be no mortgages or other liens on the eligible property that secure new text end 72.25 new text begin future advances, except for those subject to credit limits that result in compliance with new text end 72.26 new text begin clause (4); and new text end 72.27     new text begin (4) the total unpaid balances of debts secured by mortgages and other liens on the new text end 72.28 new text begin eligible property, including unpaid and delinquent special assessments and interest and new text end 72.29 new text begin any delinquent property taxes, penalties, and interest, but not including property taxes new text end 72.30 new text begin payable during the year, must not exceed 60 percent of the assessor's estimated market new text end 72.31 new text begin value for the current assessment year. new text end 72.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 72.33 new text begin and thereafter. new text end 73.1    Sec. 36. new text begin [290D.04] APPLICATION FOR DEFERRAL. new text end 73.2     new text begin Subdivision 1. new text end new text begin Initial application. new text end new text begin (a) A primary owner of a property meeting new text end 73.3 new text begin the qualifications under section new text end new text begin may apply to the commissioner for deferral new text end 73.4 new text begin of taxes on the eligible property. Applications are due on or before July 1 for deferral new text end 73.5 new text begin of any taxes payable in the following year. The application, which must be prescribed new text end 73.6 new text begin by the commissioner, shall include the following items and any other information the new text end 73.7 new text begin commissioner deems necessary: new text end 73.8     new text begin (1) the name, address, and Social Security number of the primary property owner new text end 73.9 new text begin and secondary property owners, if any; new text end 73.10     new text begin (2) a copy of the property tax statement for the current taxes payable year for the new text end 73.11 new text begin eligible property; new text end 73.12     new text begin (3) the initial year of ownership of the primary property owner and any second new text end 73.13 new text begin property owners of the eligible property; new text end 73.14     new text begin (4) information on any mortgage loans or other amounts secured by mortgages or new text end 73.15 new text begin other liens against the eligible property, for which purpose the commissioner may require new text end 73.16 new text begin the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the new text end 73.17 new text begin balance owing on the mortgage loan provided by the mortgage holder. The commissioner new text end 73.18 new text begin may require the appropriate documents in connection with obtaining and confirming new text end 73.19 new text begin information on unpaid amounts secured by other liens; and new text end 73.20     new text begin (5) the signatures of the primary property owner and all other owners, if any, stating new text end 73.21 new text begin that each owner agrees to enroll the eligible property in the program to defer property new text end 73.22 new text begin taxes under this chapter. new text end 73.23     new text begin The application must state that program participation is voluntary. The application new text end 73.24 new text begin must also state that program participation includes authorization for the annual deferred new text end 73.25 new text begin amount. The deferred property tax calculated by the county and the cumulative deferred new text end 73.26 new text begin property tax amount is public data. new text end 73.27     new text begin (b) As part of the initial application process, if the property is abstract property, the new text end 73.28 new text begin commissioner may require the applicant to obtain at the applicant's cost a report prepared new text end 73.29 new text begin by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens, new text end 73.30 new text begin judgments, and state and federal tax lien notices which were recorded on or after the date new text end 73.31 new text begin of that last deed with respect to the eligible property or to the applicant. new text end 73.32     new text begin The certificate or report need not include references to any documents filed or new text end 73.33 new text begin recorded more than 40 years prior to the date of the certification or report. The certification new text end 73.34 new text begin or report must be as of a date not more than 30 days prior to submission of the application new text end 73.35 new text begin under this section. new text end 74.1     new text begin The commissioner may also require the county recorder or county registrar of the new text end 74.2 new text begin county where the eligible property is located to provide copies of recorded documents new text end 74.3 new text begin related to the applicant of the eligible property, for which the recorder or registrar shall new text end 74.4 new text begin not charge a fee. The commissioner may use any information available to determine or new text end 74.5 new text begin verify eligibility under this section. new text end 74.6     new text begin Subd. 2. new text end new text begin Approval; recording. new text end new text begin The commissioner shall approve all initial new text end 74.7 new text begin applications that qualify under this chapter and shall notify the primary property owner on new text end 74.8 new text begin or before December 1. The commissioner may investigate the facts or require confirmation new text end 74.9 new text begin in regard to an application. The commissioner shall record or file a notice of qualification new text end 74.10 new text begin for deferral, including the names of the primary and any secondary property owners and a new text end 74.11 new text begin legal description of the eligible property, in the office of the county recorder, or registrar of new text end 74.12 new text begin titles, whichever is applicable, in the county where the eligible property is located. The new text end 74.13 new text begin notice must state that it serves as a notice of lien and that it includes deferrals under this new text end 74.14 new text begin section for future years. The primary property owner shall pay the recording or filing fees new text end 74.15 new text begin for the notice, which, notwithstanding section new text end new text begin , shall be paid by that owner at the new text end 74.16 new text begin time of satisfaction of the lien. new text end 74.17     new text begin Subd. 3. new text end new text begin Penalty for failure; investigations. new text end new text begin (a) The commissioner shall assess new text end 74.18 new text begin a penalty equal to 20 percent of the property taxes improperly deferred in the case of a new text end 74.19 new text begin false application. The commissioner shall assess a penalty equal to 50 percent of the new text end 74.20 new text begin property taxes improperly deferred if the taxpayer knowingly filed a false application. The new text end 74.21 new text begin commissioner shall assess penalties under this section through the issuance of an order new text end 74.22 new text begin under the provisions of chapter 270C. Persons affected by a commissioner's order issued new text end 74.23 new text begin under this section may appeal as provided in chapter 270C. new text end 74.24     new text begin (b) The commissioner may conduct investigations related to initial applications new text end 74.25 new text begin required under this chapter within the period ending 3-1/2 years from the due date of new text end 74.26 new text begin the application. new text end 74.27     new text begin Subd. 4. new text end new text begin Annual certification to commissioner. new text end new text begin Annually on or before July 1, new text end 74.28 new text begin the primary property owner must certify to the commissioner that the person continues new text end 74.29 new text begin to qualify as a primary property owner. If the primary owner has died or has transferred new text end 74.30 new text begin the property in the preceding year, a certification may be filed by the primary owner's new text end 74.31 new text begin spouse, or by one of the secondary owners, provided that the person is currently an new text end 74.32 new text begin owner of the property. In this case, the primary owner's spouse or the secondary owner new text end 74.33 new text begin shall be considered the primary owner from that point forward. If neither the primary new text end 74.34 new text begin owner, the primary owner's spouse, or a secondary owner is eligible to file the required new text end 74.35 new text begin annual certification for the property, the property's participation in the program shall be new text end 74.36 new text begin terminated, and the procedures in section 290D.07 apply. new text end 75.1     new text begin Subd. 5. new text end new text begin Annual notice to primary property owner. new text end new text begin Annually, on or before new text end 75.2 new text begin September 1, the commissioner shall notify each primary property owner, in writing, of new text end 75.3 new text begin the total cumulative deferred taxes and accrued interest on the qualifying property as of new text end 75.4 new text begin that date. new text end 75.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 75.6 new text begin and thereafter. new text end 75.7    Sec. 37. new text begin [290D.05] DEFERRED PROPERTY TAX AMOUNT. new text end 75.8     new text begin Subdivision 1. new text end new text begin Calculation of deferred property tax amount. new text end new text begin Each year after new text end 75.9 new text begin the county auditor has determined the final property tax rates under section 275.08, the new text end 75.10 new text begin "deferred property tax amount" must be calculated on each eligible property. The deferred new text end 75.11 new text begin property tax amount is equal to 50 percent of the amount of the difference between (1) the new text end 75.12 new text begin total amount of property taxes and special assessments levied upon the eligible property new text end 75.13 new text begin for the current year by all taxing jurisdictions and (2) the eligible property's base property new text end 75.14 new text begin tax amount. Any tax attributable to new improvements made to the eligible property after new text end 75.15 new text begin the initial application has been approved under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , must be new text end 75.16 new text begin excluded in determining the deferred property tax amount. The eligible property's total new text end 75.17 new text begin current year's tax less the deferred property tax amount for the current year must be listed new text end 75.18 new text begin on the property tax statement and is the amount due to the county under chapter 276. new text end 75.19 new text begin Reference that the property is enrolled in the seasonal recreational property tax deferral new text end 75.20 new text begin program under this chapter and a state lien has been recorded must be clearly printed on new text end 75.21 new text begin the statement. new text end 75.22     new text begin Subd. 2. new text end new text begin Certification to commissioner. new text end new text begin The county auditor shall annually, on or new text end 75.23 new text begin before April 15, certify to the commissioner the property tax deferral amounts determined new text end 75.24 new text begin under this section for each eligible property in the county. The commissioner shall new text end 75.25 new text begin prescribe the information that is necessary to identify the eligible properties. new text end 75.26     new text begin Subd. 3. new text end new text begin Limitation on total amount of deferred taxes. new text end new text begin The total amount of new text end 75.27 new text begin deferred taxes and interest on a property, when added to (1) the balance owed on any new text end 75.28 new text begin mortgages on the property at the time of initial application; (2) other amounts secured by new text end 75.29 new text begin liens on the property at the time of the initial application; and (3) any unpaid and delinquent new text end 75.30 new text begin special assessments and interest and any delinquent property taxes, penalties, and interest, new text end 75.31 new text begin but not including property taxes payable during the year, must not exceed 60 percent of new text end 75.32 new text begin the assessor's estimated market value of the property for the current assessment year. new text end 75.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 75.34 new text begin and thereafter. new text end 76.1    Sec. 38. new text begin [290D.06] LIEN; DEFERRED PORTION. new text end 76.2     new text begin (a) Payment by the state to the county treasurer of property taxes, penalties, interest, new text end 76.3 new text begin or special assessments and interest, deferred under this chapter is deemed a loan from the new text end 76.4 new text begin state to the program participant. The commissioner shall compute the interest as provided new text end 76.5 new text begin in section new text end new text begin 270C.40, subdivision 5 new text end new text begin , but not to exceed two percent over the maximum new text end 76.6 new text begin interest rate provided in section 290B.07, paragraph (a), and maintain records of the total new text end 76.7 new text begin deferred amount and interest for each participant. Interest accrues beginning September 1 new text end 76.8 new text begin of the payable year for which the taxes are deferred. Any deferral made under this chapter new text end 76.9 new text begin must not be construed as delinquent property taxes. new text end 76.10     new text begin The lien created under section new text end new text begin continues to secure payment by the taxpayer, new text end 76.11 new text begin or by the taxpayer's successors or assigns, of the amount deferred, including interest, with new text end 76.12 new text begin respect to all years for which amounts are deferred. The lien for deferred taxes and interest new text end 76.13 new text begin has the same priority as any other lien under section new text end new text begin , except that liens, including new text end 76.14 new text begin mortgages, recorded or filed prior to the recording or filing of the notice under section new text end 76.15 new text begin 290D.04, subdivision 2 new text end new text begin , have priority over the lien for deferred taxes and interest. A new text end 76.16 new text begin seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an new text end 76.17 new text begin assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, new text end 76.18 new text begin regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes new text end 76.19 new text begin and interest for future years has the same priority as the lien for deferred taxes and interest new text end 76.20 new text begin for the first year, which is always higher in priority than any mortgages or other liens filed, new text end 76.21 new text begin recorded, or created after the notice recorded or filed under section new text end new text begin 290D.04, subdivision new text end 76.22 new text begin 2 new text end new text begin . The county treasurer or auditor shall maintain records of the deferred portion and shall new text end 76.23 new text begin list the amount of deferred taxes for the year and the cumulative deferral and interest for new text end 76.24 new text begin all previous years as a lien against the eligible property. In any certification of unpaid new text end 76.25 new text begin taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in new text end 76.26 new text begin the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred new text end 76.27 new text begin portion becomes due and owing at the time specified in section new text end new text begin . Upon receipt of new text end 76.28 new text begin the payment, the commissioner shall issue a receipt to the person making the payment new text end 76.29 new text begin upon request and shall notify the auditor of the county in which the parcel is located, new text end 76.30 new text begin within ten days, identifying the parcel to which the payment applies. Upon receipt by the new text end 76.31 new text begin commissioner of collected funds in the amount of the deferral, the state's loan to the new text end 76.32 new text begin program participant is deemed paid in full. new text end 76.33     new text begin (b) If eligible property for which taxes have been deferred under this chapter forfeits new text end 76.34 new text begin under chapter 281 for nonpayment of a nondeferred property tax amount, or because new text end 76.35 new text begin of nonpayment of amounts previously deferred following a termination under section new text end 76.36 new text begin , the lien for the taxes deferred under this chapter, plus interest and costs, shall be new text end 77.1 new text begin canceled by the county auditor as provided in section new text end new text begin . However, notwithstanding new text end 77.2 new text begin any other law to the contrary, any proceeds from a subsequent sale of the eligible property new text end 77.3 new text begin under chapter 282 or another law, must be used to first reimburse the county's forfeited new text end 77.4 new text begin tax sale fund for any direct costs of selling the eligible property or any costs directly new text end 77.5 new text begin related to preparing the eligible property for sale, and then to reimburse the state for new text end 77.6 new text begin the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to new text end 77.7 new text begin which the state is entitled under these provisions, the county auditor must pay those funds new text end 77.8 new text begin to the commissioner by warrant for deposit in the general fund. No other deposit, use, new text end 77.9 new text begin distribution, or release of gross sale proceeds or receipts may be made by the county until new text end 77.10 new text begin payments sufficient to fully reimburse the state for the canceled lien amount have been new text end 77.11 new text begin transmitted to the commissioner. new text end 77.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 77.13 new text begin and thereafter. new text end 77.14    Sec. 39. new text begin [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF new text end 77.15 new text begin DEFERRED TAXES. new text end 77.16     new text begin Subdivision 1. new text end new text begin Termination. new text end new text begin (a) The deferral of taxes granted under this chapter new text end 77.17 new text begin terminates when one of the following occurs: new text end 77.18     new text begin (1) the eligible property is sold or transferred to someone other than the primary new text end 77.19 new text begin owner's spouse or a secondary owner; new text end 77.20     new text begin (2) the death of the primary owner, or in the case of a married couple, after the new text end 77.21 new text begin death of both spouses, provided that there is not a secondary owner eligible to become new text end 77.22 new text begin the primary owner; new text end 77.23     new text begin (3) the primary property owner notifies the commissioner, in writing, that all owners, new text end 77.24 new text begin including any secondary property owners, desire to discontinue the deferral; or new text end 77.25     new text begin (4) the eligible property no longer qualifies under section 290D.03. new text end 77.26     new text begin (b) An eligible property is not terminated from the program because no deferred new text end 77.27 new text begin property tax amount is determined for any given year after the eligible property's initial new text end 77.28 new text begin enrollment into the program. new text end 77.29     new text begin (c) An eligible property is not terminated from the program if the eligible property new text end 77.30 new text begin subsequently becomes the homestead of one or more of the property owners and the new text end 77.31 new text begin property and the owners qualify for, and are immediately enrolled in, the senior deferral new text end 77.32 new text begin program under chapter 290B. new text end 77.33     new text begin Subd. 2. new text end new text begin Payment upon termination. new text end new text begin Upon the termination of the deferral under new text end 77.34 new text begin subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments new text end 77.35 new text begin and interest, plus the recording or filing fees under this subdivision and section new text end new text begin 290D.04, new text end 78.1 new text begin subdivision 2 new text end new text begin , becomes due and payable to the commissioner within 90 days of termination new text end 78.2 new text begin of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), new text end 78.3 new text begin and within one year of termination of the deferral for terminations under subdivision 1, new text end 78.4 new text begin paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely new text end 78.5 new text begin paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor new text end 78.6 new text begin of the county in which the parcel is located, identifying the parcel to which the payment new text end 78.7 new text begin applies and shall remit the recording or filing fees under this subdivision and section new text end 78.8 new text begin 290D.04, subdivision 2 new text end new text begin , to the auditor. A notice of termination of deferral, containing the new text end 78.9 new text begin legal description and the recording or filing data for the notice of qualification for deferral new text end 78.10 new text begin under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , shall be prepared and recorded or filed by the new text end 78.11 new text begin county auditor in the same office in which the notice of qualification for deferral under new text end 78.12 new text begin section new text end new text begin 290D.04, subdivision 2 new text end new text begin , was recorded or filed, and the county auditor shall mail a new text end 78.13 new text begin copy of the notice of termination to the property owner. The property owner shall pay the new text end 78.14 new text begin recording or filing fees. Upon recording or filing of the notice of termination of deferral, new text end 78.15 new text begin the notice of qualification for deferral under section new text end new text begin 290D.04, subdivision 2 new text end new text begin , and the lien new text end 78.16 new text begin created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien, new text end 78.17 new text begin forfeiture, and other rules for the collection of ad valorem property taxes apply. new text end 78.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 78.19 new text begin and thereafter. new text end 78.20    Sec. 40. new text begin [290D.08] STATE REIMBURSEMENT. new text end 78.21     new text begin Subdivision 1. new text end new text begin Determination; payment. new text end new text begin The county auditor shall determine the new text end 78.22 new text begin total current year's deferred amount of property tax under this chapter in the county, and new text end 78.23 new text begin submit those amounts as part of the abstracts of tax lists submitted by the county auditors new text end 78.24 new text begin under section new text end new text begin . The commissioner may make changes in the abstracts of tax lists as new text end 78.25 new text begin deemed necessary. The commissioner, after such review, shall pay the deferred amount of new text end 78.26 new text begin property tax to each county treasurer on or before August 31. new text end 78.27     new text begin The county treasurer shall distribute as part of the October settlement the funds new text end 78.28 new text begin received as if they had been collected as part of the property tax. new text end 78.29     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the total amount of property new text end 78.30 new text begin tax determined under subdivision 1, plus any amounts paid under section new text end new text begin 290D.04, new text end 78.31 new text begin subdivision 4 new text end new text begin , is annually appropriated from the general fund to the commissioner. new text end 78.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed July 1, 2008, new text end 78.33 new text begin and thereafter. new text end 79.1    Sec. 41. Minnesota Statutes 2006, section 298.75, is amended by adding a subdivision 79.2to read: 79.3     new text begin Subd. 11. new text end new text begin Tax may be imposed; Otter Tail County. new text end new text begin (a) If Otter Tail County new text end 79.4 new text begin does not impose a tax under this section and approves imposition of the tax under this new text end 79.5 new text begin subdivision, the town of Scambler in Otter Tail County may impose the aggregate new text end 79.6 new text begin materials tax under this section. new text end 79.7     new text begin (b) For purposes of exercising the powers contained in this section, the "town" is new text end 79.8 new text begin deemed to be the "county." new text end 79.9     new text begin (c) All provisions in this section apply to the town of Scambler, except that in lieu of new text end 79.10 new text begin the tax proceeds under subdivision 7, all proceeds of the tax must be retained by the town. new text end 79.11     new text begin (d) If Otter Tail County imposes an aggregate materials tax under this section, the new text end 79.12 new text begin tax imposed by the town of Scambler under this subdivision is repealed on the effective new text end 79.13 new text begin date of the Otter Tail County tax. new text end 79.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body new text end 79.15 new text begin of the town of Scambler and its chief clerical officer comply with section 645.021, new text end 79.16 new text begin subdivisions 2 and 3. new text end 79.17    Sec. 42. Minnesota Statutes 2006, section 435.193, is amended to read: 79.18435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS OR new text begin , new text end 79.19DISABLED new text begin , OR MILITARY PERSONS new text end . 79.20     new text begin (a) new text end Notwithstanding the provisions of any law to the contrary, any county, statutory 79.21or home rule charter city, or town, making a special assessment may, at its discretion, defer 79.22the payment of that assessment for any homestead property new text begin : new text end 79.23     new text begin (1) new text end owned by a person 65 years of age or older or retired by virtue of a permanent 79.24and total disability for whom it would be a hardship to make the payments new text begin ; or new text end 79.25     new text begin (2) owned by a person who is a member of the Minnesota National Guard or other new text end 79.26 new text begin military reserves who is ordered into active military service, as defined in section 190.05, new text end 79.27 new text begin subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a new text end 79.28 new text begin hardship to make the payments new text end . 79.29     new text begin (b) new text end Any county, statutory or home rule charter city, or town electing to defer 79.30special assessments shall adopt an ordinance or resolution establishing standards and 79.31guidelines for determining the existence of a hardship and for determining the existence of 79.32a disability, but nothing herein shall be construed to prohibit the determination of hardship 79.33on the basis of exceptional and unusual circumstances not covered by the standards and 80.1guidelines where the determination is made in a nondiscriminatory manner and does not 80.2give the applicant an unreasonable preference or advantage over other applicants. 80.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 80.4 new text begin and applies to any special assessment for which payment is due on or after that date. new text end 80.5    Sec. 43. Minnesota Statutes 2006, section 469.1813, subdivision 1a, is amended to 80.6read: 80.7    Subd. 1a. Use of term. new text begin (a) new text end As used in this section and sections 469.1814 and 80.8469.1815 , "abatement" includes a deferral of taxes with abatement of interest and penalties 80.9unless the context indicates otherwise. new text begin The abatement may include delinquent taxes, new text end 80.10 new text begin interest, and penalties. new text end 80.11     new text begin (b) Computation of duration limits under this section must include each taxes new text end 80.12 new text begin payable year for which delinquent taxes are abated. new text end 80.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for abatements granted after new text end 80.14 new text begin December 31, 2006. new text end 80.15    Sec. 44. Minnesota Statutes 2006, section 473F.01, subdivision 2, is amended to read: 80.16    Subd. 2. Use of proceeds. Except as provided in section 473F.08, subdivision 3a, 80.17The proceeds from the areawide tax imposed under this chapter must be used by a local 80.18governmental unit in the same manner and for the same purposes as the proceeds from 80.19other ad valorem taxes levied by the local governmental unit. 80.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 80.21 new text begin thereafter. new text end 80.22    Sec. 45. Minnesota Statutes 2006, section 473F.08, subdivision 5, is amended to read: 80.23    Subd. 5. Areawide tax rate. On or before August 25 of each year, the county auditor 80.24shall certify to the administrative auditor that portion of the levy of each governmental 80.25unit determined under subdivisions 3, clause (a), 3a, and 3b. The administrative auditor 80.26shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of 80.27such levies from the areawide net tax capacity. On or before September 1 of each year, the 80.28administrative auditor shall certify the areawide tax rate to each of the county auditors. 80.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 80.30 new text begin thereafter. new text end 81.1    Sec. 46. Minnesota Statutes 2006, section 473F.08, subdivision 7a, is amended to read: 81.2    Subd. 7a. Certification of values; payment. The administrative auditor shall 81.3determine for each county the difference between the total levy on distribution value 81.4pursuant to subdivisions 3, clause (a), 3a, and 3b, within the county and the total tax on 81.5contribution value pursuant to subdivision 6, within the county. On or before May 16 of 81.6each year, the administrative auditor shall certify the differences so determined to each 81.7county auditor. In addition, the administrative auditor shall certify to those county auditors 81.8for whose county the total tax on contribution value exceeds the total levy on distribution 81.9value the settlement the county is to make to the other counties of the excess of the total tax 81.10on contribution value over the total levy on distribution value in the county. On or before 81.11June 15 and November 15 of each year, each county treasurer in a county having a total tax 81.12on contribution value in excess of the total levy on distribution value shall pay one-half of 81.13the excess to the other counties in accordance with the administrative auditors certification. 81.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 81.15 new text begin thereafter. new text end 81.16    Sec. 47. new text begin FISCAL DISPARITIES STUDY. new text end 81.17     new text begin Subdivision 1. new text end new text begin Study required. new text end new text begin The commissioner of revenue shall conduct a study new text end 81.18 new text begin of the metropolitan revenue distribution program contained in Minnesota Statutes, chapter new text end 81.19 new text begin 473F, commonly known as the fiscal disparities program. On or before February 1, 2008, new text end 81.20 new text begin the commissioner shall make a report to the chairs of the house of representatives and new text end 81.21 new text begin senate tax committees consisting of the findings of the study and any recommendations new text end 81.22 new text begin resulting from the study. new text end 81.23     new text begin The study must consider to what extent the program is meeting the following goals, new text end 81.24 new text begin and what changes could be made to the program in the furtherance of meeting those goals: new text end 81.25     new text begin (1) reducing the extent to which the property tax encourages development patterns new text end 81.26 new text begin that do not make cost-effective use of public infrastructure or impose other high public new text end 81.27 new text begin costs; new text end 81.28     new text begin (2) ensuring that the benefits of economic growth of the region are shared throughout new text end 81.29 new text begin the region, especially for growth that results from state and/or regional decisions; new text end 81.30     new text begin (3) improving the ability of each jurisdiction within the region to deliver services at new text end 81.31 new text begin a level commensurate with its tax effort; new text end 81.32     new text begin (4) compensating jurisdictions containing properties that provide regional benefits new text end 81.33 new text begin for the costs those properties impose on their host jurisdictions in excess of their tax new text end 81.34 new text begin payments; new text end 82.1     new text begin (5) promoting a fair distribution of property tax burdens across jurisdictions of new text end 82.2 new text begin the region; and new text end 82.3     new text begin (6) reducing the economic losses that result from competition among communities new text end 82.4 new text begin for commercial-industrial tax base. new text end 82.5     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin $150,000 is appropriated to the commissioner of revenue new text end 82.6 new text begin from the general fund in fiscal year 2008 to conduct the study required under subdivision 1. new text end 82.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007. new text end 82.8    Sec. 48. new text begin IMPROVING PUBLIC AWARENESS AND PARTICIPATION IN new text end 82.9 new text begin PROPERTY TAX RELIEF PROGRAMS. new text end 82.10     new text begin The commissioner of revenue, in consultation with county officials, shall undertake new text end 82.11 new text begin to improve the public's awareness of and participation in property tax refund programs, new text end 82.12 new text begin including the regular program for homeowners and renters and the additional property new text end 82.13 new text begin tax refund program, the senior citizen's property tax deferral program, and the seasonal new text end 82.14 new text begin recreational property tax deferral program. new text end 82.15     new text begin The commissioner shall consider options for improving public awareness, including, new text end 82.16 new text begin but not limited to: new text end 82.17     new text begin (i) direct mailings to homeowners; new text end 82.18     new text begin (ii) an insert in the property tax statement; new text end 82.19     new text begin (iii) more prominent and direct references to the programs on the property tax new text end 82.20 new text begin statement; new text end 82.21     new text begin (iv) notification on the property tax statement envelopes or folders; new text end 82.22     new text begin (v) public service announcements, including print, broadcast, and Internet; and new text end 82.23     new text begin (vi) information and handouts at the truth in taxation hearings. new text end 82.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 82.25    Sec. 49. new text begin TRUTH IN TAXATION PROGRAM; COSTS AND PARTICIPATION new text end 82.26 new text begin STUDY. new text end 82.27     new text begin The commissioner of revenue shall prepare a study of the costs of the truth in new text end 82.28 new text begin taxation program under Minnesota Statutes, section 275.065, and the level of taxpayer new text end 82.29 new text begin participation in the hearings required under Minnesota Statutes, section 275.065, new text end 82.30 new text begin subdivision 6. In determining the costs, the commissioner shall ascertain the costs of new text end 82.31 new text begin the preparation and mailing of the notice under Minnesota Statutes, section 275.065, new text end 82.32 new text begin subdivision 3, the advertisement under Minnesota Statutes, section 275.065, subdivision new text end 82.33 new text begin 5a, and any costs associated with the hearings required under Minnesota Statutes, section new text end 83.1 new text begin 275.065, subdivision 6. The report must also make recommendations for ways to increase new text end 83.2 new text begin taxpayer participation in the local government budget process, including but not limited to new text end 83.3 new text begin the truth-in-taxation process. The report must be delivered by January 15, 2008, to the new text end 83.4 new text begin legislature as provided for in Minnesota Statutes, section 3.195. The report must also be new text end 83.5 new text begin provided to the chairs of the senate and house of representatives committees and divisions new text end 83.6 new text begin with jurisdiction over property taxes. new text end 83.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 83.8    Sec. 50. new text begin REPEALER. new text end 83.9 new text begin Minnesota Statutes 2006, section 473F.08, subdivision 3a, new text end new text begin is repealed. new text end 83.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2008 and new text end 83.11 new text begin thereafter. new text end 83.12ARTICLE 5 83.13LOCAL SALES TAXES 83.14    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to 83.15read: 83.16    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 83.17impose a general sales tax if permitted by special law new text begin enacted prior to January 1, 2008, new text end or 83.18if the political subdivision enacted and imposed the tax before the effective date of section 83.19477A.016 and its predecessor provision. 83.20    (b) This section governs the imposition of a general sales tax by the political 83.21subdivision. The provisions of this section preempt the provisions of any special law: 83.22    (1) enacted before June 2, 1997, or 83.23    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 83.24provision from this section's rules by reference. 83.25    (c) This section does not apply to or preempt a sales tax on motor vehicles or a 83.26special excise tax on motor vehicles. 83.27     new text begin (d) No political subdivision may use its funds to advertise, promote, or hold a new text end 83.28 new text begin referendum to support imposing a general sales tax unless authorized by a special law new text end 83.29 new text begin enacted prior to January 1, 2008. new text end 83.30     new text begin (e) No political subdivision may seek the authority to impose a general sales tax new text end 83.31 new text begin after January 1, 2008. new text end 83.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 84.1    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 84.2chapter 291, article 8, section 22, and Laws 1998, chapter 389, article 8, section 25, and 84.3Laws 2003, First Special Session chapter 21, article 8, section 11, is amended to read: 84.4    Subd. 2. Notwithstanding Minnesota Statutes, Section 477A.016, or any other law, 84.5ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 84.6impose an additional sales tax of up to one and one-half new text begin two and one-quarter new text end percent on 84.7sales transactions which are described in Minnesota Statutes 2000, Section 297A.01, 84.8Subdivision 3, Clause (c). When the city council determines that the taxes imposed 84.9under this subdivision and under new text begin Laws 1998, chapter 389, article 8, new text end section 26 at a rate 84.10of one-half of one percent have produced revenue sufficient to pay (1) the debt service 84.11on bonds in a principal amount of $8,000,000 issued for capital improvements to the 84.12Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds 84.13originally issued in the principal amount of $4,970,000 to finance capital improvements 84.14to the Great Lakes Aquarium since the imposition of the taxes at the rate of one and 84.15one-half percent, the rate of the tax under this subdivision is reduced to new text begin by one-half of new text end 84.16one percent. The imposition of this tax shall not be subject to voter referendum under 84.17either state law or city charter provisions. new text begin When the city council determines that the taxes new text end 84.18 new text begin imposed under this subdivision at a rate of three-quarters of one percent and other sources new text end 84.19 new text begin of revenue produce revenue sufficient to pay debt service on bonds in the principal amount new text end 84.20 new text begin of $37,931,000 plus issuance and discount costs, issued for capital improvements at the new text end 84.21 new text begin Duluth Entertainment and Convention Center, which include a new arena, the rate of tax new text end 84.22 new text begin under this subdivision must be reduced by three-quarters of one percent. new text end 84.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 84.24 new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end 84.25 new text begin , subdivisions 2 and 3. new text end 84.26    Sec. 3. Laws 2005, First Special Session chapter 3, article 5, section 39, is amended to 84.27read: 84.28    Sec. 39. CITY OF BEMIDJI. 84.29    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 84.30section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 84.31approval of the city voters at the general election held on November 5, 2002, new text begin and at the new text end 84.32 new text begin general election held November 7, 2006, new text end the city of Bemidji may impose by ordinance 84.33a sales and use tax of one-half of one percent for the purposes specified in subdivision 84.342. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 84.35administration, collection, and enforcement of the tax authorized under this subdivision. 85.1    Subd. 2. Use of revenues. Revenues received from the tax authorized by 85.2subdivision 1 must be used for the cost of collecting and administering the tax and to pay 85.3 new text begin for the projects listed in this subdivision: new text end 85.4     new text begin (1) To pay new text end all or part of the capital or administrative costs of the acquisition, 85.5construction, and improvement of parks and trails within the city, as provided for in the 85.6city of Bemidji's parks, open space, and trail system plan, adopted by the Bemidji City 85.7Council on November 21, 2001. Authorized expenses include, but are not limited to, 85.8acquiring property, paying construction expenses related to the development of these 85.9facilities and improvements, and securing and paying debt service on bonds or other 85.10obligations issued to finance acquisition, construction, improvement, or development of 85.11parks and trails within the city of Bemidji. 85.12     new text begin (2) To pay all or part of the city's share of costs of up to $50,000,000 plus any new text end 85.13 new text begin associated bond costs, for acquisition, design, and construction of a regional event center. new text end 85.14 new text begin Authorized expenses include, but are not limited to, acquiring property, paying demolition new text end 85.15 new text begin and construction expenses, improving associated infrastructure, and purchasing furniture, new text end 85.16 new text begin fixtures, and equipment for the regional event center, and securing and paying debt service new text end 85.17 new text begin on bonds or other obligations issued to finance the regional event center project. new text end 85.18    Subd. 3. Bonds. new text begin (a) new text end Pursuant to the approval of the city voters at the general 85.19election held on November 5, 2002, the city of Bemidji may issue, without an additional 85.20election, general obligation bonds of the city in an amount not to exceed $9,826,000 to 85.21pay capital and administrative expenses for the acquisition, construction, improvement, 85.22and development of parks and trails as specified in subdivision 2. The debt represented by 85.23the bonds must not be included in computing any debt limitations applicable to the city, 85.24and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal 85.25of any interest on the bonds must not be subject to any levy limitations or be included in 85.26computing or applying any levy limitation applicable to the city. 85.27     new text begin (b) Pursuant to the approval of the city voters at the general election held on new text end 85.28 new text begin November 7, 2006, the city of Bemidji may issue, without an additional election, general new text end 85.29 new text begin obligation bonds of the city in an amount not to exceed $50,000,000 to pay capital and new text end 85.30 new text begin administrative expenses for the acquisition, construction, improvement, and development new text end 85.31 new text begin of the regional event center specified in subdivision 2. The debt represented by the bonds new text end 85.32 new text begin must not be included in computing any debt limitations applicable to the city, and the levy new text end 85.33 new text begin of taxes required by Minnesota Statutes, section new text end new text begin , to pay the principal of any interest new text end 85.34 new text begin on the bonds must not be subject to any levy limitations or be included in computing or new text end 85.35 new text begin applying any levy limitation applicable to the city. new text end 86.1    Subd. 4. Termination of tax. The tax imposed under subdivision 1 expires 86.2when the Bemidji City Council determines that the amount described in subdivision 3 new text begin , new text end 86.3 new text begin paragraph (a), new text end has been received from the tax to finance the capital and administrative 86.4costs for acquisition, construction, improvement, and development of parks and trails and 86.5to repay or retire at maturity the principal, interest, and premium due on any bonds issued 86.6for the park and trail improvements under subdivision 3 new text begin , paragraph (a), plus the earlier new text end 86.7 new text begin of (1) 30 years, or (2) when the city council first determines that the additional revenues new text end 86.8 new text begin received from the extension of the tax equals or exceeds the amount authorized to be spent new text end 86.9 new text begin for the regional event center under subdivision 2, clause (2) new text end . Any funds remaining after 86.10completion of the park and trail improvements new text begin authorized projects new text end and retirement or 86.11redemption of the bonds may be placed in the general fund of the city. The tax imposed 86.12under subdivision 1 may expire at an earlier time if the city so determines by ordinance. 86.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 86.14 new text begin governing body of the city of Bemidji and its chief clerical officer with Minnesota new text end 86.15 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 86.16    Sec. 4. new text begin CITY OF CROOKSTON; TAXES AUTHORIZED. new text end 86.17     new text begin Subdivision 1. new text end new text begin Sales and use tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 86.18 new text begin 477A.016, or any other provision of law, ordinance, or city charter, if approved by the new text end 86.19 new text begin voters at the next general election or a special election prior to December 31, 2008, the new text end 86.20 new text begin city of Crookston may impose by ordinance a sales and use tax of up to one-half of one new text end 86.21 new text begin percent for the purpose specified in subdivision 2. Except as provided in this section, the new text end 86.22 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 86.23 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 86.24     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin Revenues received from taxes authorized by subdivision new text end 86.25 new text begin 1 must be used by the city to pay the cost of collecting the taxes and to pay all or part of the new text end 86.26 new text begin capital and administrative costs for the reconstruction of public facilities that need to be new text end 86.27 new text begin relocated in conjunction with the city's flood control project. Authorized expenses include, new text end 86.28 new text begin but are not limited to, acquiring property and paying construction expenses related to these new text end 86.29 new text begin facilities and improvements, and paying debt service on bonds or other obligations issued new text end 86.30 new text begin to finance acquisition, development, and construction of these facilities and improvements. new text end 86.31 new text begin The total amount of revenues that the city may raise under subdivision 1 to finance these new text end 86.32 new text begin projects is limited to no more than $10,000,000 plus any associated bond costs. new text end 86.33     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin Pursuant to the approval of the city voters to impose new text end 86.34 new text begin the tax authorized under subdivision 1, the city may issue, without an additional election, new text end 86.35 new text begin general obligation bonds of the city in an amount not to exceed $10,000,000 to pay new text end 87.1 new text begin capital and administrative expenses for the projects described in subdivision 2. The debt new text end 87.2 new text begin represented by the bonds is not included in computing any debt limitation applicable to the new text end 87.3 new text begin city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of new text end 87.4 new text begin and interest on the bonds is not subject to any levy limitation or be included in computing new text end 87.5 new text begin or applying any levy limitation applicable to the city. new text end 87.6     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The taxes imposed under subdivision 1 expire when new text end 87.7 new text begin the Crookston city council determines that the amount of revenues received from the taxes new text end 87.8 new text begin to finance the project described in subdivision 2 first equals or exceeds the amount spent new text end 87.9 new text begin directly on the projects in subdivision 2, plus the additional amount needed to pay the new text end 87.10 new text begin costs related to issuance of bonds under subdivision 3, including interest on the bonds. new text end 87.11 new text begin Any funds remaining after completion of the project and retirement or redemption of the new text end 87.12 new text begin bonds may be placed in the general fund of the city. The taxes imposed under subdivision new text end 87.13 new text begin 1 may expire at an earlier time if the city so determines by ordinance. new text end 87.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 87.15 new text begin the city of Crookston and its chief clerical officer comply with Minnesota Statutes, section new text end 87.16 new text begin 645.021, subdivisions 2 and 3. new text end 87.17    Sec. 5. new text begin CITY OF NORTH MANKATO; TAXES AUTHORIZED. new text end 87.18     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 87.19 new text begin section 477A.016, or any other provision of law, ordinance, or city charter pursuant to new text end 87.20 new text begin the approval of the voters on November 7, 2006, and pursuant to Minnesota Statutes, new text end 87.21 new text begin section 297A.99, the city of North Mankato may impose by ordinance a sales and use tax new text end 87.22 new text begin of one-half of one percent for the purposes specified in subdivision 2. The provisions of new text end 87.23 new text begin Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, new text end 87.24 new text begin and enforcement of the taxes authorized under this subdivision. new text end 87.25     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin Revenues received from the tax authorized by new text end 87.26 new text begin subdivision 1 must be used to pay all or part of the capital costs of the following projects: new text end 87.27     new text begin (1) the local share of the Trunk Highway 14/County State Aid Highway 41 new text end 87.28 new text begin interchange project; new text end 87.29     new text begin (2) development of regional parks and hiking and biking trails; new text end 87.30     new text begin (3) expansion of the North Mankato Taylor Library; new text end 87.31     new text begin (4) riverfront redevelopment; and new text end 87.32     new text begin (5) lake improvement projects. new text end 87.33     new text begin The total amount of revenues from the tax in subdivision 1 that may be used to fund new text end 87.34 new text begin these projects is $6,000,000 plus any associated bond costs. new text end 88.1     new text begin Subd. 3. new text end new text begin Bonds. new text end new text begin (a) The city of North Mankato, pursuant to the approval of the new text end 88.2 new text begin voters at the November 7, 2006, referendum authorizing the imposition of the taxes in new text end 88.3 new text begin this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and new text end 88.4 new text begin administrative expenses for the projects described in subdivision 2, in an amount that new text end 88.5 new text begin does not exceed $6,000,000. A separate election to approve the bonds under Minnesota new text end 88.6 new text begin Statutes, section 475.58, is not required. new text end 88.7     new text begin (b) The debt represented by the bonds is not included in computing any debt new text end 88.8 new text begin limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section new text end 88.9 new text begin 475.61, to pay principal and interest on the bonds is not subject to any levy limitation. new text end 88.10     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires new text end 88.11 new text begin when the city council determines that the amount of revenues received from the taxes new text end 88.12 new text begin to pay for the projects under subdivision 2 first equals or exceeds $6,000,000 plus the new text end 88.13 new text begin additional amount needed to pay the costs related to issuance of bonds under subdivision new text end 88.14 new text begin 3, including interest on the bonds. Any funds remaining after completion of the projects new text end 88.15 new text begin and retirement or redemption of the bonds must be placed in a capital facilities and new text end 88.16 new text begin equipment replacement fund of the city. The tax imposed under subdivision 1 may expire new text end 88.17 new text begin at an earlier time if the city so determines by ordinance. new text end 88.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 88.19 new text begin governing body of the city of North Mankato with Minnesota Statutes, section 645.021, new text end 88.20 new text begin subdivision 3. new text end