<a id="pl.1.3"></a><var>1.3</var>and levies; providing aids to local governments; providing for property tax <br/>
<a id="pl.1.4"></a><var>1.4</var>exemptions, credits, refunds, and deferrals; changing property tax provisions <br/>
<a id="pl.1.5"></a><var>1.5</var>relating to sales ratios, homesteads, valuation, classification, class rates, truth in <br/>
<a id="pl.1.6"></a><var>1.6</var>taxation, payment, collection, appeals, and abatement; providing for special <br/>
<a id="pl.1.7"></a><var>1.7</var>assessments deferral and payments in lieu of taxes; limiting authority to <br/>
<a id="pl.1.8"></a><var>1.8</var>impose local sales taxes; authorizing certain local taxes; providing for studies; <br/>
<a id="pl.1.9"></a><var>1.9</var>appropriating money;amending Minnesota Statutes 2006, sections 97A.061, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision 2; 123B.53, subdivisions 4, 5; 126C.01, by adding subdivisions; <br/>
<a id="pl.1.11"></a><var>1.11</var>126C.10, subdivision 13a; 126C.17, subdivision 6; 127A.48, subdivision 3, by <br/>
<a id="pl.1.12"></a><var>1.12</var>adding a subdivision; 272.02, by adding subdivisions; 272.115, subdivision <br/>
<a id="pl.1.13"></a><var>1.13</var>1; 273.11, subdivision 1a, by adding a subdivision; 273.111, by adding a <br/>
<a id="pl.1.14"></a><var>1.14</var>subdivision; 273.124, subdivisions 1, 14; 273.128, subdivision 1, by adding a <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision; 273.13, subdivisions 22, 23, 24, 25, 33, by adding a subdivision; <br/>
<a id="pl.1.16"></a><var>1.16</var>273.1384, subdivision 1; 273.1393; 275.065, subdivision 3, by adding <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivisions; 275.07, subdivision 2; 275.08, subdivision 1b; 276.04, subdivision <br/>
<a id="pl.1.18"></a><var>1.18</var>2; 278.05, subdivision 6; 279.01, by adding a subdivision; 279.37, subdivision <br/>
<a id="pl.1.19"></a><var>1.19</var>1a; 289A.08, subdivision 13; 289A.40, subdivision 4; 290A.03, subdivision 13; <br/>
<a id="pl.1.20"></a><var>1.20</var>290A.04, subdivisions 2a, 2h, 4, by adding a subdivision; 290B.03, subdivisions <br/>
<a id="pl.1.21"></a><var>1.21</var>1, 2; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 290B.07; 297A.99, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 1; 298.75, by adding a subdivision; 435.193; 469.1813, subdivision <br/>
<a id="pl.1.23"></a><var>1.23</var>1a; 473F.01, subdivision 2; 473F.08, subdivisions 5, 7a; 477A.011, subdivisions <br/>
<a id="pl.1.24"></a><var>1.24</var>34, 36; 477A.0124, subdivision 5; 477A.013, subdivisions 8, 9, by adding a <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivision; 477A.03; Laws 1980, chapter 511, section 1, subdivision 2, as <br/>
<a id="pl.1.26"></a><var>1.26</var>amended; Laws 2005, First Special Session chapter 3, article 5, section 39; <br/>
<a id="pl.1.27"></a><var>1.27</var>proposing coding for new law in Minnesota Statutes, chapter 123B; proposing <br/>
<a id="pl.1.28"></a><var>1.28</var>coding for new law as Minnesota Statutes, chapter 290D; repealing Minnesota <br/>
<a id="pl.1.29"></a><var>1.29</var>Statutes 2006, sections 290A.04, subdivision 2; 473F.08, subdivision 3a.<br/>
<a id="pl.1.30"></a><var>1.30</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.4"></a><var>2.4</var>    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to <br/>
<a id="pl.2.5"></a><var>2.5</var>read:<br/>
<a id="pl.2.6"></a><var>2.6</var>    Subdivision 1. <b>Residential homestead market value credit.</b> (a) Each county <br/>
<a id="pl.2.7"></a><var>2.7</var>auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead <br/>
<a id="pl.2.8"></a><var>2.8</var>property within the county equal to 0.4 percent of the first $76,000 of market value <br/>
<a id="pl.2.9"></a><var>2.9</var>of the property minus .09 percent of the market value in excess of $76,000. The credit <br/>
<a id="pl.2.10"></a><var>2.10</var>amount may not be less than zero. In the case of an agricultural or resort homestead, only <br/>
<a id="pl.2.11"></a><var>2.11</var>the market value of the house, garage, and immediately surrounding one acre of land is <br/>
<a id="pl.2.12"></a><var>2.12</var>eligible in determining the property's homestead credit. In the case of a property that <br/>
<a id="pl.2.13"></a><var>2.13</var>is classified as part homestead and part nonhomestead, (i) the credit shall apply only <br/>
<a id="pl.2.14"></a><var>2.14</var>to the homestead portion of the property, but (ii) if a portion of a property is classified <br/>
<a id="pl.2.15"></a><var>2.15</var>as nonhomestead solely because not all the owners occupy the property, not all the <br/>
<a id="pl.2.16"></a><var>2.16</var>owners have qualifying relatives occupying the property, or solely because not all the <br/>
<a id="pl.2.17"></a><var>2.17</var>spouses of owners occupy the property, the credit amount shall be initially computed as <br/>
<a id="pl.2.18"></a><var>2.18</var>if that nonhomestead portion were also in the homestead class and then prorated to the <br/>
<a id="pl.2.19"></a><var>2.19</var>owner-occupant's percentage of ownership. For the purpose of this section, when an <br/>
<a id="pl.2.20"></a><var>2.20</var>owner-occupant's spouse does not occupy the property, the percentage of ownership for <br/>
<a id="pl.2.21"></a><var>2.21</var>the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.2.22"></a><var>2.22</var>    (b) For property taxes payable in 2008 and thereafter, the county auditor shall <br/>
<a id="pl.2.23"></a><var>2.23</var>determine the amount of the homestead credit under paragraph (a) and this paragraph. <br/>
<a id="pl.2.24"></a><var>2.24</var>The county auditor shall report the amount of the credit to the taxpayer on the property <br/>
<a id="pl.2.25"></a><var>2.25</var>tax statement or in another manner, as authorized by the commissioner of revenue. The <br/>
<a id="pl.2.26"></a><var>2.26</var>amount of the credit allowed for the property taxes payable year is to be computed as the <br/>
<a id="pl.2.27"></a><var>2.27</var>following percentage of the credit amount under paragraph (a):<br/>
<a id="pl.2.28"></a><var>2.28</var>    (1) for property taxes payable in 2008, 100 percent;<br/>
<a id="pl.2.29"></a><var>2.29</var>    (2) for property taxes payable in 2009, 60 percent;<br/>
<a id="pl.2.30"></a><var>2.30</var>    (3) for property taxes payable in 2010, 30 percent; and<br/>
<a id="pl.2.31"></a><var>2.31</var>    (4) for property taxes payable in 2011 or thereafter, no credit is allowed.<br/>
<a id="pl.2.32"></a><var>2.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning for property taxes payable <br/>
<a id="pl.2.33"></a><var>2.33</var>in 2008.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.1"></a><var>3.1</var>    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.3.2"></a><var>3.2</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.3.3"></a><var>3.3</var>printing of the tax statements. The commissioner of revenue shall prescribe the form <br/>
<a id="pl.3.4"></a><var>3.4</var>of the property tax statement and its contents. The statement must contain a tabulated <br/>
<a id="pl.3.5"></a><var>3.5</var>statement of the dollar amount due to each taxing authority and the amount of the state <br/>
<a id="pl.3.6"></a><var>3.6</var>tax from the parcel of real property for which a particular tax statement is prepared. The <br/>
<a id="pl.3.7"></a><var>3.7</var>dollar amounts attributable to the county, the state tax, the voter approved school tax, the <br/>
<a id="pl.3.8"></a><var>3.8</var>other local school tax, the township or municipality, and the total of the metropolitan <br/>
<a id="pl.3.9"></a><var>3.9</var>special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must <br/>
<a id="pl.3.10"></a><var>3.10</var>be separately stated. The amounts due all other special taxing districts, if any, may be <br/>
<a id="pl.3.11"></a><var>3.11</var>aggregated except that any levies made by the regional rail authorities in the county of <br/>
<a id="pl.3.12"></a><var>3.12</var>Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A <br/>
<a id="pl.3.13"></a><var>3.13</var>shall be listed on a separate line directly under the appropriate county's levy. If the county <br/>
<a id="pl.3.14"></a><var>3.14</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.3.15"></a><var>3.15</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br/>
<a id="pl.3.16"></a><var>3.16</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.3.17"></a><var>3.17</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.3.18"></a><var>3.18</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.3.19"></a><var>3.19</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.3.20"></a><var>3.20</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.3.21"></a><var>3.21</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.3.22"></a><var>3.22</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br/>
<a id="pl.3.23"></a><var>3.23</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.3.24"></a><var>3.24</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.3.25"></a><var>3.25</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.3.26"></a><var>3.26</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.3.27"></a><var>3.27</var>also be listed on the tax statement.<br/>
<a id="pl.3.28"></a><var>3.28</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.3.29"></a><var>3.29</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.3.30"></a><var>3.30</var>tax statements for real property.<br/>
<a id="pl.3.31"></a><var>3.31</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.3.32"></a><var>3.32</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.3.33"></a><var>3.33</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.3.34"></a><var>3.34</var>in a column on the left:<br/>
<a id="pl.3.35"></a><var>3.35</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.4.1"></a><var>4.1</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.4.2"></a><var>4.2</var>subdivisions 1a and 16
         </statute_ref>;<br/>
<a id="pl.4.3"></a><var>4.3</var>    (3) the property's gross tax, calculated by adding the property's total property tax to <br/>
<a id="pl.4.4"></a><var>4.4</var>the sum of the aids enumerated in clause (4); any items required by the commissioner of <br/>
<a id="pl.4.5"></a><var>4.5</var>revenue under section 273.1384, subdivision 1, paragraph (b); and<br/>
<a id="pl.4.6"></a><var>4.6</var>    (4) a total of the following aids:<br/>
<a id="pl.4.7"></a><var>4.7</var>    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, <br/>
<a id="pl.4.8"></a><var>4.8</var>and 127A;<br/>
<a id="pl.4.9"></a><var>4.9</var>    (ii) local government aids for cities, towns, and counties under sections 
<statute_ref>477A.011</statute_ref> to <br/>
<a id="pl.4.10"></a><var>4.10</var><statute_ref>477A.04</statute_ref>; and<br/>
<a id="pl.4.11"></a><var>4.11</var>    (iii) disparity reduction aid under section 
<statute_ref>273.1398</statute_ref>;<br/>
<a id="pl.4.12"></a><var>4.12</var>    (5) for homestead residential and agricultural properties, the credits under section <br/>
<a id="pl.4.13"></a><var>4.13</var><statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.4.14"></a><var>4.14</var>    (6) any credits received under sections 
<statute_ref>273.119</statute_ref>; 
<statute_ref>273.123</statute_ref>; 
<statute_ref>273.135</statute_ref>; 
<statute_ref>273.1391</statute_ref>; <br/>
<a id="pl.4.15"></a><var>4.15</var><statute_ref>273.1398, subdivision 4</statute_ref>; 
<statute_ref>469.171</statute_ref>; and 
<statute_ref>473H.10</statute_ref>, except that the amount of credit received <br/>
<a id="pl.4.16"></a><var>4.16</var>under section 
<statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax relief"; and<br/>
<a id="pl.4.17"></a><var>4.17</var>    (7) (4) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.4.18"></a><var>4.18</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.4.19"></a><var>4.19</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.4.20"></a><var>4.20</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.4.21"></a><var>4.21</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.4.22"></a><var>4.22</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.4.23"></a><var>4.23</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.4.24"></a><var>4.24</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.4.25"></a><var>4.25</var>the information on a single announcement.<br/>
<a id="pl.4.26"></a><var>4.26</var>    The commissioner of revenue shall certify to the county auditor the actual or <br/>
<a id="pl.4.27"></a><var>4.27</var>estimated aids enumerated in paragraph (c), clause (4), that local governments will receive <br/>
<a id="pl.4.28"></a><var>4.28</var>in the following year. The commissioner must certify this amount by January 1 of each <br/>
<a id="pl.4.29"></a><var>4.29</var>year.<br/>
<a id="pl.4.30"></a><var>4.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.4.31"></a><var>4.31</var>thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.32"></a><var>4.32</var>    Sec. 3. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.4.33"></a><var>4.33</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property <br/>
<a id="pl.4.34"></a><var>4.34</var>tax exclusive of special assessments, penalties, and interest payable on a claimant's <br/>
<a id="pl.4.35"></a><var>4.35</var>homestead after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>,
<statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, <br/>
<a id="pl.5.1"></a><var>5.1</var>subdivision 2
         </statute_ref>, and any other state paid property tax credits in any calendar year, and <br/>
<a id="pl.5.2"></a><var>5.2</var>after any refund claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is <br/>
<a id="pl.5.3"></a><var>5.3</var>first payable in the year that the property tax is payable. Beginning for property taxes <br/>
<a id="pl.5.4"></a><var>5.4</var>payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must <br/>
<a id="pl.5.5"></a><var>5.5</var>not be deducted in computing property taxes payable. In the case of a claimant who <br/>
<a id="pl.5.6"></a><var>5.6</var>makes ground lease payments, "property taxes payable" includes the amount of the <br/>
<a id="pl.5.7"></a><var>5.7</var>payments directly attributable to the property taxes assessed against the parcel on which <br/>
<a id="pl.5.8"></a><var>5.8</var>the house is located. No apportionment or reduction of the "property taxes payable" shall <br/>
<a id="pl.5.9"></a><var>5.9</var>be required for the use of a portion of the claimant's homestead for a business purpose if <br/>
<a id="pl.5.10"></a><var>5.10</var>the claimant does not deduct any business depreciation expenses for the use of a portion <br/>
<a id="pl.5.11"></a><var>5.11</var>of the homestead in the determination of federal adjusted gross income. For homesteads <br/>
<a id="pl.5.12"></a><var>5.12</var>which are manufactured homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for <br/>
<a id="pl.5.13"></a><var>5.13</var>homesteads which are park trailers taxed as manufactured homes under section 
         <statute_ref>168.012, <br/>
<a id="pl.5.14"></a><var>5.14</var>subdivision 9
         </statute_ref>, "property taxes payable" shall also include 19 percent of the gross rent paid <br/>
<a id="pl.5.15"></a><var>5.15</var>in the preceding year for the site on which the homestead is located. When a homestead <br/>
<a id="pl.5.16"></a><var>5.16</var>is owned by two or more persons as joint tenants or tenants in common, such tenants <br/>
<a id="pl.5.17"></a><var>5.17</var>shall determine between them which tenant may claim the property taxes payable on the <br/>
<a id="pl.5.18"></a><var>5.18</var>homestead. If they are unable to agree, the matter shall be referred to the commissioner of <br/>
<a id="pl.5.19"></a><var>5.19</var>revenue whose decision shall be final. Property taxes are considered payable in the year <br/>
<a id="pl.5.20"></a><var>5.20</var>prescribed by law for payment of the taxes. <br/>
<a id="pl.5.21"></a><var>5.21</var>    In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.5.22"></a><var>5.22</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.5.23"></a><var>5.23</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.5.24"></a><var>5.24</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.5.25"></a><var>5.25</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.5.26"></a><var>5.26</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.5.27"></a><var>5.27</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.5.28"></a><var>5.28</var>approved the application. <br/>
<a id="pl.5.29"></a><var>5.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning for refund claims based on <br/>
<a id="pl.5.30"></a><var>5.30</var>property taxes payable in 2008.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.31"></a><var>5.31</var>    Sec. 4. Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:<br/>
<a id="pl.5.32"></a><var>5.32</var>    Subd. 2a. <b>Renters.</b> (a) A claimant whose rent constituting property taxes exceeds <br/>
<a id="pl.5.33"></a><var>5.33</var>the percentage of the household income stated below must pay an amount equal to the <br/>
<a id="pl.5.34"></a><var>5.34</var>percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.5.35"></a><var>5.35</var>percent to be paid by the claimant of the remaining amount of rent constituting property <br/>
<a id="pl.6.1"></a><var>6.1</var>taxes. The state refund equals the amount of rent constituting property taxes that remain, <br/>
<a id="pl.6.2"></a><var>6.2</var>up to the maximum state refund amount shown below.<br/>
<table width="100%">
<tr>
<td><a id="pl.6.3"></a><var>6.3</var><br/>
<a id="pl.6.4"></a><var>6.4</var><br/>
</td>
<td align="right" valign="bottom">Household Income<br/>
</td>
<td align="center" valign="bottom">Percent of Income<br/>
</td>
<td align="center" valign="bottom">Percent Paid by <br/>
                  		Claimant<br/>
</td>
<td align="center" valign="bottom">Maximum State <br/>
                  		Refund<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.5"></a><var>6.5</var><br/>
</td>
<td align="right" valign="bottom">$0 to 3,589<br/>
</td>
<td align="center" valign="bottom">1.0 percent<br/>
</td>
<td align="center" valign="bottom">5 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.6"></a><var>6.6</var><br/>
</td>
<td align="right" valign="bottom"> $0 to 4,579<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.7"></a><var>6.7</var><br/>
</td>
<td align="right" valign="bottom">3,590 to 4,779<br/>
</td>
<td align="center" valign="bottom">1.0 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.8"></a><var>6.8</var><br/>
</td>
<td align="right" valign="bottom">4,580 to 6,099<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.9"></a><var>6.9</var><br/>
</td>
<td align="right" valign="bottom">4,780 to 5,969<br/>
</td>
<td align="center" valign="bottom">1.1 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.10"></a><var>6.10</var><br/>
</td>
<td align="right" valign="bottom">6,100 to 7,619<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.11"></a><var>6.11</var><br/>
</td>
<td align="right" valign="bottom">5,970 to 8,369<br/>
</td>
<td align="center" valign="bottom">1.2 percent<br/>
</td>
<td align="center" valign="bottom">10 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.12"></a><var>6.12</var><br/>
</td>
<td align="right" valign="bottom">7,620 to 10,669<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.13"></a><var>6.13</var><br/>
</td>
<td align="right" valign="bottom">8,370 to 10,759<br/>
</td>
<td align="center" valign="bottom">1.3 percent<br/>
</td>
<td align="center" valign="bottom">15 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.14"></a><var>6.14</var><br/>
</td>
<td align="right" valign="bottom">10,670 to 13,729<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.15"></a><var>6.15</var><br/>
</td>
<td align="right" valign="bottom">10,760 to 11,949<br/>
</td>
<td align="center" valign="bottom">1.4 percent<br/>
</td>
<td align="center" valign="bottom">15 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.16"></a><var>6.16</var><br/>
</td>
<td align="right" valign="bottom">13,730 to 15,239<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.17"></a><var>6.17</var><br/>
</td>
<td align="right" valign="bottom">11,950 to 13,139<br/>
</td>
<td align="center" valign="bottom">1.4 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.18"></a><var>6.18</var><br/>
</td>
<td align="right" valign="bottom">15,240 to 16,769<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.19"></a><var>6.19</var><br/>
</td>
<td align="right" valign="bottom">13,140 to 15,539<br/>
</td>
<td align="center" valign="bottom">1.5 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.20"></a><var>6.20</var><br/>
</td>
<td align="right" valign="bottom">16,770 to 19,829<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.21"></a><var>6.21</var><br/>
</td>
<td align="right" valign="bottom">15,540 to 16,729<br/>
</td>
<td align="center" valign="bottom">1.6 percent<br/>
</td>
<td align="center" valign="bottom">20 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.22"></a><var>6.22</var><br/>
</td>
<td align="right" valign="bottom">19,830 to 21,349<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.23"></a><var>6.23</var><br/>
</td>
<td align="right" valign="bottom">16,730 to 17,919<br/>
</td>
<td align="center" valign="bottom">1.7 percent<br/>
</td>
<td align="center" valign="bottom">25 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.24"></a><var>6.24</var><br/>
</td>
<td align="right" valign="bottom">21,350 to 22,859<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.25"></a><var>6.25</var><br/>
</td>
<td align="right" valign="bottom">17,920 to 20,319<br/>
</td>
<td align="center" valign="bottom">1.8 percent<br/>
</td>
<td align="center" valign="bottom">25 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.26"></a><var>6.26</var><br/>
</td>
<td align="right" valign="bottom">22,860 to 25,929<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.27"></a><var>6.27</var><br/>
</td>
<td align="right" valign="bottom">20,320 to 21,509<br/>
</td>
<td align="center" valign="bottom">1.9 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.28"></a><var>6.28</var><br/>
</td>
<td align="right" valign="bottom">25,930 to 27,439<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.29"></a><var>6.29</var><br/>
</td>
<td align="right" valign="bottom">21,510 to 22,699<br/>
</td>
<td align="center" valign="bottom">2.0 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.30"></a><var>6.30</var><br/>
</td>
<td align="right" valign="bottom">27,440 to 28,959<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.31"></a><var>6.31</var><br/>
</td>
<td align="right" valign="bottom">22,700 to 23,899<br/>
</td>
<td align="center" valign="bottom">2.2 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.32"></a><var>6.32</var><br/>
</td>
<td align="right" valign="bottom">28,960 to 30,499<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.33"></a><var>6.33</var><br/>
</td>
<td align="right" valign="bottom">23,900 to 25,089<br/>
</td>
<td align="center" valign="bottom">2.4 percent<br/>
</td>
<td align="center" valign="bottom">30 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.34"></a><var>6.34</var><br/>
</td>
<td align="right" valign="bottom">30,500 to 32,009<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.35"></a><var>6.35</var><br/>
</td>
<td align="right" valign="bottom">25,090 to 26,289<br/>
</td>
<td align="center" valign="bottom">2.6 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.36"></a><var>6.36</var><br/>
</td>
<td align="right" valign="bottom">32,010 to 33,539<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.37"></a><var>6.37</var><br/>
</td>
<td align="right" valign="bottom">26,290 to 27,489<br/>
</td>
<td align="center" valign="bottom">2.7 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.38"></a><var>6.38</var><br/>
</td>
<td align="right" valign="bottom">33,540 to 35,079<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.39"></a><var>6.39</var><br/>
</td>
<td align="right" valign="bottom">27,490 to 28,679<br/>
</td>
<td align="center" valign="bottom">2.8 percent<br/>
</td>
<td align="center" valign="bottom">35 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.40"></a><var>6.40</var><br/>
</td>
<td align="right" valign="bottom">35,080 to 36,589<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.41"></a><var>6.41</var><br/>
</td>
<td align="right" valign="bottom">28,680 to 29,869<br/>
</td>
<td align="center" valign="bottom">2.9 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.42"></a><var>6.42</var><br/>
</td>
<td align="right" valign="bottom">36,590 to 38,109<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.6.43"></a><var>6.43</var><br/>
</td>
<td align="right" valign="bottom">29,870 to 31,079<br/>
</td>
<td align="center" valign="bottom">3.0 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.1"></a><var>7.1</var><br/>
</td>
<td align="right" valign="bottom">38,110 to 39,649<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.2"></a><var>7.2</var><br/>
</td>
<td align="right" valign="bottom">31,080 to 32,269<br/>
</td>
<td align="center" valign="bottom">3.1 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.3"></a><var>7.3</var><br/>
</td>
<td align="right" valign="bottom">39,650 to 41,169<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.4"></a><var>7.4</var><br/>
</td>
<td align="right" valign="bottom">32,270 to 33,459<br/>
</td>
<td align="center" valign="bottom">3.2 percent<br/>
</td>
<td align="center" valign="bottom">40 percent<br/>
</td>
<td align="center" valign="bottom">$1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.5"></a><var>7.5</var><br/>
</td>
<td align="right" valign="bottom">41,170 to 42,689<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.6"></a><var>7.6</var><br/>
</td>
<td align="right" valign="bottom">33,460 to 34,649<br/>
</td>
<td align="center" valign="bottom">3.3 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$1,080<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.7"></a><var>7.7</var><br/>
</td>
<td align="right" valign="bottom">42,690 to 49,729<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,370<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.8"></a><var>7.8</var><br/>
</td>
<td align="right" valign="bottom">34,650 to 35,849<br/>
</td>
<td align="center" valign="bottom">3.4 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$ 960<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.9"></a><var>7.9</var><br/>
</td>
<td align="right" valign="bottom">49,730 to 51,459<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,220<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.10"></a><var>7.10</var><br/>
</td>
<td align="right" valign="bottom">35,850 to 37,049<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">45 percent<br/>
</td>
<td align="center" valign="bottom">$ 830<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.11"></a><var>7.11</var><br/>
</td>
<td align="right" valign="bottom">51,460 to 53,189<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$1,050<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.12"></a><var>7.12</var><br/>
</td>
<td align="right" valign="bottom">37,050 to 38,239<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 720<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.13"></a><var>7.13</var><br/>
</td>
<td align="right" valign="bottom">53,190 to 54,899<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$910<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.14"></a><var>7.14</var><br/>
</td>
<td align="right" valign="bottom">38,240 to 39,439<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 600<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.15"></a><var>7.15</var><br/>
</td>
<td align="right" valign="bottom">54,900 to 56,609<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$760<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.16"></a><var>7.16</var><br/>
</td>
<td align="right" valign="bottom">38,440 to 40,629<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 360<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.17"></a><var>7.17</var><br/>
</td>
<td align="right" valign="bottom">56,610 to 58,319<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$450<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.18"></a><var>7.18</var><br/>
</td>
<td align="right" valign="bottom">40,630 to 41,819<br/>
</td>
<td align="center" valign="bottom">3.5 percent<br/>
</td>
<td align="center" valign="bottom">50 percent<br/>
</td>
<td align="center" valign="bottom">$ 120<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.19"></a><var>7.19</var><br/>
</td>
<td align="right" valign="bottom">58,320 to 60,000<br/>
</td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="center" valign="bottom">$150<br/>
</td>
</tr>
</table><a id="pl.7.20"></a><var>7.20</var>    (b) The payment made to a claimant is the amount of the state refund calculated <br/>
<a id="pl.7.21"></a><var>7.21</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.7.22"></a><var>7.22</var>$41,820 $60,000 or more.<br/>
<a id="pl.7.23"></a><var>7.23</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims filed for rent <br/>
<a id="pl.7.24"></a><var>7.24</var>paid after December 31, 2006.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.7.25"></a><var>7.25</var>    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.7.26"></a><var>7.26</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a <br/>
<a id="pl.7.27"></a><var>7.27</var>homestead increase more than 12 percent over the property taxes payable in the prior year <br/>
<a id="pl.7.28"></a><var>7.28</var>on the same property that is owned and occupied by the same owner on January 2 of both <br/>
<a id="pl.7.29"></a><var>7.29</var>years, and the amount of that increase is $100 or more, a claimant who is a homeowner <br/>
<a id="pl.7.30"></a><var>7.30</var>shall be allowed an additional refund equal to 60 percent of the amount of the increase <br/>
<a id="pl.7.31"></a><var>7.31</var>over the greater of 12 percent of the prior year's property taxes payable or $100. This <br/>
<a id="pl.7.32"></a><var>7.32</var>subdivision shall not apply to any increase in the gross property taxes payable attributable <br/>
<a id="pl.7.33"></a><var>7.33</var>to improvements made to the homestead after the assessment date for the prior year's <br/>
<a id="pl.7.34"></a><var>7.34</var>taxes. This subdivision shall not apply to any increase in the gross property taxes payable <br/>
<a id="pl.7.35"></a><var>7.35</var>attributable to the termination of valuation exclusions under section  
         <statute_ref>273.11, subdivision <br/>
<a id="pl.7.36"></a><var>7.36</var>16
         </statute_ref>, or to the reduction in and elimination of the homestead market value credit under <br/>
<a id="pl.7.37"></a><var>7.37</var>section 273.1384, subdivision 1, paragraph (b). <br/>
<a id="pl.8.1"></a><var>8.1</var>    The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.8.2"></a><var>8.2</var>    (b) For purposes of this subdivision "gross property taxes payable" means property <br/>
<a id="pl.8.3"></a><var>8.3</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.8.4"></a><var>8.4</var>    (c) In addition to the other proofs required by this chapter, each claimant under <br/>
<a id="pl.8.5"></a><var>8.5</var>this subdivision shall file with the property tax refund return a copy of the property tax <br/>
<a id="pl.8.6"></a><var>8.6</var>statement for taxes payable in the preceding year or other documents required by the <br/>
<a id="pl.8.7"></a><var>8.7</var>commissioner.<br/>
<a id="pl.8.8"></a><var>8.8</var>    (d) Upon request, the appropriate county official shall make available the names and <br/>
<a id="pl.8.9"></a><var>8.9</var>addresses of the property taxpayers who may be eligible for the additional property tax <br/>
<a id="pl.8.10"></a><var>8.10</var>refund under this section. The information shall be provided on a magnetic computer <br/>
<a id="pl.8.11"></a><var>8.11</var>disk. The county may recover its costs by charging the person requesting the information <br/>
<a id="pl.8.12"></a><var>8.12</var>the reasonable cost for preparing the data. The information may not be used for any <br/>
<a id="pl.8.13"></a><var>8.13</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br/>
<a id="pl.8.14"></a><var>8.14</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.8.15"></a><var>8.15</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on property <br/>
<a id="pl.8.16"></a><var>8.16</var>taxes payable in 2008.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.17"></a><var>8.17</var>    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision <br/>
<a id="pl.8.18"></a><var>8.18</var>to read:<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 2k. <b>Homestead credit state refund.</b> (a) A claimant who is a homeowner <br/>
<a id="pl.8.20"></a><var>8.20</var>is entitled to a state refund of the amount of the property taxes payable in excess of two <br/>
<a id="pl.8.21"></a><var>8.21</var>percent of the claimant's household income, based on the percentage and maximum for the <br/>
<a id="pl.8.22"></a><var>8.22</var>appropriate household income level shown below. The refund amount determined from the <br/>
<a id="pl.8.23"></a><var>8.23</var>table must be reduced further by the amount of the homestead market value credit under <br/>
<a id="pl.8.24"></a><var>8.24</var>section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.<br/>
<table width="100%">
<tr>
<td><a id="pl.8.25"></a><var>8.25</var><br/>
</td>
<td align="left" valign="bottom">Household Income<br/>
</td>
<td align="left" valign="bottom">Refund Percentage<br/>
</td>
<td align="left" valign="bottom">Maximum State Refund<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.26"></a><var>8.26</var><br/>
</td>
<td align="left" valign="bottom">0 to $5,399<br/>
</td>
<td align="left" valign="bottom">90 percent<br/>
</td>
<td align="left" valign="bottom">$2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.27"></a><var>8.27</var><br/>
</td>
<td align="left" valign="bottom">5,400 to 18,899<br/>
</td>
<td align="left" valign="bottom">85 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.28"></a><var>8.28</var><br/>
</td>
<td align="left" valign="bottom">18,900 to 26,999<br/>
</td>
<td align="left" valign="bottom">80 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.29"></a><var>8.29</var><br/>
</td>
<td align="left" valign="bottom">27,000 to 32,399<br/>
</td>
<td align="left" valign="bottom">75 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.30"></a><var>8.30</var><br/>
</td>
<td align="left" valign="bottom">32,400 to 37,799<br/>
</td>
<td align="left" valign="bottom">70 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.31"></a><var>8.31</var><br/>
</td>
<td align="left" valign="bottom">37,800 to 45,899<br/>
</td>
<td align="left" valign="bottom">65 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.32"></a><var>8.32</var><br/>
</td>
<td align="left" valign="bottom">45,900 to 64,699<br/>
</td>
<td align="left" valign="bottom">60 percent<br/>
</td>
<td align="left" valign="bottom">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.33"></a><var>8.33</var><br/>
</td>
<td align="left" valign="bottom">64,700 to 80,899<br/>
</td>
<td align="left" valign="bottom">55 percent<br/>
</td>
<td align="left" valign="bottom">2,300<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.34"></a><var>8.34</var><br/>
</td>
<td align="left" valign="bottom">80,900 to 94,399<br/>
</td>
<td align="left" valign="bottom">50 percent<br/>
</td>
<td align="left" valign="bottom">2,100<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.35"></a><var>8.35</var><br/>
</td>
<td align="left" valign="bottom">94,400 to 99,299<br/>
</td>
<td align="left" valign="bottom">45 percent<br/>
</td>
<td align="left" valign="bottom">1,900<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.36"></a><var>8.36</var><br/>
</td>
<td align="left" valign="bottom">99,300 to 104,099<br/>
</td>
<td align="left" valign="bottom">40 percent<br/>
</td>
<td align="left" valign="bottom">1,700<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.37"></a><var>8.37</var><br/>
</td>
<td align="left" valign="bottom">104,100 to 115,599<br/>
</td>
<td align="left" valign="bottom">30 percent<br/>
</td>
<td align="left" valign="bottom">1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.1"></a><var>9.1</var><br/>
</td>
<td align="left" valign="bottom">115,600 to 127,199<br/>
</td>
<td align="left" valign="bottom">30 percent<br/>
</td>
<td align="left" valign="bottom">1,250<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.2"></a><var>9.2</var><br/>
</td>
<td align="left" valign="bottom">127,200 to 134,099<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.3"></a><var>9.3</var><br/>
</td>
<td align="left" valign="bottom">134,100 to 138,799<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.4"></a><var>9.4</var><br/>
</td>
<td align="left" valign="bottom">138,800 to 144,399<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.9.5"></a><var>9.5</var><br/>
</td>
<td align="left" valign="bottom">144,400 to 150,000<br/>
</td>
<td align="left" valign="bottom">25 percent<br/>
</td>
<td align="left" valign="bottom">250<br/>
</td>
</tr>
<tr>
<td></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
</table><a id="pl.9.6"></a><var>9.6</var>    (b) No payment is allowed under paragraph (a) if the claimant's household income <br/>
<a id="pl.9.7"></a><var>9.7</var>is more than $150,000.<br/>
<a id="pl.9.8"></a><var>9.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.9.9"></a><var>9.9</var>property taxes payable in 2008.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.9.10"></a><var>9.10</var>    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.9.11"></a><var>9.11</var>    Subd. 4. <b>Inflation adjustment.</b> Beginning for property tax refunds payable in <br/>
<a id="pl.9.12"></a><var>9.12</var>calendar year 2002 2009, the commissioner shall annually adjust the dollar amounts of <br/>
<a id="pl.9.13"></a><var>9.13</var>the income thresholds and the maximum refunds under subdivisions 2 and 2a 2k for <br/>
<a id="pl.9.14"></a><var>9.14</var>inflation. The commissioner shall make the inflation adjustments in accordance with <br/>
<a id="pl.9.15"></a><var>9.15</var>section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the <br/>
<a id="pl.9.16"></a><var>9.16</var>percentage increase shall be determined from the year ending on June 30, 2000 2007, to <br/>
<a id="pl.9.17"></a><var>9.17</var>the year ending on June 30 of the year preceding that in which the refund is payable. The <br/>
<a id="pl.9.18"></a><var>9.18</var>commissioner shall use the appropriate percentage increase to annually adjust the income <br/>
<a id="pl.9.19"></a><var>9.19</var>thresholds and maximum refunds under subdivisions 2 and 2a 2k for inflation without <br/>
<a id="pl.9.20"></a><var>9.20</var>regard to whether or not the income tax brackets are adjusted for inflation in that year. <br/>
<a id="pl.9.21"></a><var>9.21</var>The commissioner shall round the thresholds and the maximum amounts, as adjusted to <br/>
<a id="pl.9.22"></a><var>9.22</var>the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up <br/>
<a id="pl.9.23"></a><var>9.23</var>to the next $10 amount.<br/>
<a id="pl.9.24"></a><var>9.24</var>    The commissioner shall annually announce the adjusted refund schedule at the same <br/>
<a id="pl.9.25"></a><var>9.25</var>time provided under section  
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under this <br/>
<a id="pl.9.26"></a><var>9.26</var>subdivision is not a rule under the Administrative Procedure Act. <br/>
<a id="pl.9.27"></a><var>9.27</var><b>EFFECTIVE DATE.</b>This section is effective beginning for claims based on <br/>
<a id="pl.9.28"></a><var>9.28</var>property taxes payable in 2009.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.29"></a><var>9.29</var>    Sec. 8. <b> REPEALER.</b><br/>
<a id="pl.9.30"></a><var>9.30</var>Minnesota Statutes 2006, section 290A.04, subdivision 2, is repealed.<br/>
<a id="pl.9.31"></a><var>9.31</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on property taxes <br/>
<a id="pl.9.32"></a><var>9.32</var>payable in 2008 and later.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.10.3"></a><var>10.3</var>    Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:<br/>
<a id="pl.10.4"></a><var>10.4</var>    Subd. 4. <b>Debt service equalization revenue.</b> (a) The debt service equalization <br/>
<a id="pl.10.5"></a><var>10.5</var>revenue of a district equals the sum of the first tier debt service equalization revenue and <br/>
<a id="pl.10.6"></a><var>10.6</var>the second tier debt service equalization revenue.<br/>
<a id="pl.10.7"></a><var>10.7</var>    (b) The first tier debt service equalization revenue of a district equals the greater of <br/>
<a id="pl.10.8"></a><var>10.8</var>zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent <br/>
<a id="pl.10.9"></a><var>10.9</var>times the adjusted debt service net tax capacity of the district minus the second tier debt <br/>
<a id="pl.10.10"></a><var>10.10</var>service equalization revenue of the district.<br/>
<a id="pl.10.11"></a><var>10.11</var>    (c) The second tier debt service equalization revenue of a district equals the greater <br/>
<a id="pl.10.12"></a><var>10.12</var>of zero or the eligible debt service revenue, excluding alternative facilities levies under <br/>
<a id="pl.10.13"></a><var>10.13</var>section 
<statute_ref>123B.59, subdivision 5</statute_ref>, minus the amount raised by a levy of 25 percent times the <br/>
<a id="pl.10.14"></a><var>10.14</var>adjusted net tax capacity of the district. <br/>
<a id="pl.10.15"></a><var>10.15</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2009.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.10.16"></a><var>10.16</var>    Sec. 2. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:<br/>
<a id="pl.10.17"></a><var>10.17</var>    Subd. 5. <b>Equalized debt service levy.</b> (a) The equalized debt service levy of a <br/>
<a id="pl.10.18"></a><var>10.18</var>district equals the sum of the first tier equalized debt service levy and the second tier <br/>
<a id="pl.10.19"></a><var>10.19</var>equalized debt service levy.<br/>
<a id="pl.10.20"></a><var>10.20</var>    (b) A district's first tier equalized debt service levy equals the district's first tier debt <br/>
<a id="pl.10.21"></a><var>10.21</var>service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.10.22"></a><var>10.22</var>    (1) the quotient derived by dividing the adjusted debt service net tax capacity of the <br/>
<a id="pl.10.23"></a><var>10.23</var>district for the year before the year the levy is certified by the adjusted pupil units in the <br/>
<a id="pl.10.24"></a><var>10.24</var>district for the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.10.25"></a><var>10.25</var>    (2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.<br/>
<a id="pl.10.26"></a><var>10.26</var>    (c) A district's second tier equalized debt service levy equals the district's second tier <br/>
<a id="pl.10.27"></a><var>10.27</var>debt service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.10.28"></a><var>10.28</var>    (1) the quotient derived by dividing the adjusted net tax capacity of the district for <br/>
<a id="pl.10.29"></a><var>10.29</var>the year before the year the levy is certified by the adjusted pupil units in the district for <br/>
<a id="pl.10.30"></a><var>10.30</var>the school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.10.31"></a><var>10.31</var>    (2) $8,000.<br/>
<a id="pl.10.32"></a><var>10.32</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2009.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.11.1"></a><var>11.1</var>    Sec. 3. <b>[123B.555] SCHOOL BOND AGRICULTURAL CREDIT.</b><br/>
<a id="pl.11.2"></a><var>11.2</var>    Subdivision 1. <b>Eligibility.</b> All class 2 property under section 273.13, subdivision 23, <br/>
<a id="pl.11.3"></a><var>11.3</var>except for (1) property consisting of the house, garage, and immediately surrounding one <br/>
<a id="pl.11.4"></a><var>11.4</var>acre of land of an agricultural homestead, and (2) landing areas or public access areas of <br/>
<a id="pl.11.5"></a><var>11.5</var>privately owned public use airports, is eligible to receive the credit under this section.<br/>
<a id="pl.11.6"></a><var>11.6</var>    Subd. 2. <b>Credit amount.</b> For each qualifying property, the school bond agricultural <br/>
<a id="pl.11.7"></a><var>11.7</var>credit is equal to 20 percent of the property's eligible net tax capacity multiplied by the <br/>
<a id="pl.11.8"></a><var>11.8</var>school debt tax rate determined under section 275.08, subdivision 1b.<br/>
<a id="pl.11.9"></a><var>11.9</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.11.10"></a><var>11.10</var>reductions allowed under this section within the county for each taxes payable year and <br/>
<a id="pl.11.11"></a><var>11.11</var>shall certify that amount to the commissioner of revenue as a part of the abstracts of tax <br/>
<a id="pl.11.12"></a><var>11.12</var>lists submitted under section 275.29. Any prior year adjustments shall also be certified on <br/>
<a id="pl.11.13"></a><var>11.13</var>the abstracts of tax lists. The commissioner shall review the certifications for accuracy, <br/>
<a id="pl.11.14"></a><var>11.14</var>and may make such changes as are deemed necessary, or return the certification to the <br/>
<a id="pl.11.15"></a><var>11.15</var>county auditor for correction. The credit under this section must be used to reduce the <br/>
<a id="pl.11.16"></a><var>11.16</var>school district net tax capacity-based property tax as provided in section 273.1393
<statute_ref></statute_ref>.<br/>
<a id="pl.11.17"></a><var>11.17</var>    Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br/>
<a id="pl.11.18"></a><var>11.18</var>reductions granted under this section for each taxes payable year within each school <br/>
<a id="pl.11.19"></a><var>11.19</var>district to the commissioner of education, who shall pay the reimbursement amounts to <br/>
<a id="pl.11.20"></a><var>11.20</var>each school district as provided in section 273.1392
<statute_ref></statute_ref>.<br/>
<a id="pl.11.21"></a><var>11.21</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to make the payments required <br/>
<a id="pl.11.22"></a><var>11.22</var>by this section is annually appropriated from the general fund to the commissioner of <br/>
<a id="pl.11.23"></a><var>11.23</var>education.<br/>
<a id="pl.11.24"></a><var>11.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.11.25"></a><var>11.25</var>thereafter.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.11.26"></a><var>11.26</var>    Sec. 4. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision <br/>
<a id="pl.11.27"></a><var>11.27</var>to read:<br/>
<a id="pl.11.28"></a><var>11.28</var>    Subd. 2a. <b>Statewide adjusted net tax capacity equalizing factor.</b> The statewide <br/>
<a id="pl.11.29"></a><var>11.29</var>adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total <br/>
<a id="pl.11.30"></a><var>11.30</var>adjusted debt service net tax capacity of all school districts in the state for the year before <br/>
<a id="pl.11.31"></a><var>11.31</var>the year the levy is certified by the total number of adjusted cost pupil units in the state <br/>
<a id="pl.11.32"></a><var>11.32</var>for the fiscal year preceding the year the levy is certified.<br/>
<a id="pl.11.33"></a><var>11.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 5. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision <br/>
<a id="pl.12.2"></a><var>12.2</var>to read:<br/>
<a id="pl.12.3"></a><var>12.3</var>    Subd. 3a. <b>Referendum market value equalizing factor.</b> The referendum market <br/>
<a id="pl.12.4"></a><var>12.4</var>value equalizing factor equals the quotient derived by dividing the total referendum market <br/>
<a id="pl.12.5"></a><var>12.5</var>value of all school districts in the state for the year before the year the levy is certified by <br/>
<a id="pl.12.6"></a><var>12.6</var>the total number of resident marginal cost pupil units in the state for the current school year.<br/>
<a id="pl.12.7"></a><var>12.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.12.8"></a><var>12.8</var>    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:<br/>
<a id="pl.12.9"></a><var>12.9</var>    Subd. 13a. <b>Operating capital levy.</b> To obtain operating capital revenue for fiscal <br/>
<a id="pl.12.10"></a><var>12.10</var>year 2007 and later, a district may levy an amount not more than the product of its <br/>
<a id="pl.12.11"></a><var>12.11</var>operating capital revenue for the fiscal year times the lesser of one or the ratio of its <br/>
<a id="pl.12.12"></a><var>12.12</var>adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital <br/>
<a id="pl.12.13"></a><var>12.13</var>equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year <br/>
<a id="pl.12.14"></a><var>12.14</var>2006, and $10,700 for fiscal year 2007 and 2008, and $25,000 for fiscal year 2009 and later.<br/>
<a id="pl.12.15"></a><var>12.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.12.16"></a><var>12.16</var>    Sec. 7. Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:<br/>
<a id="pl.12.17"></a><var>12.17</var>    Subd. 6. <b>Referendum equalization levy.</b> (a) For fiscal year 2003 and later, <br/>
<a id="pl.12.18"></a><var>12.18</var>A district's referendum equalization levy equals the sum of the first tier referendum <br/>
<a id="pl.12.19"></a><var>12.19</var>equalization levy and the second tier referendum equalization levy.<br/>
<a id="pl.12.20"></a><var>12.20</var>    (b) A district's first tier referendum equalization levy equals the district's first tier <br/>
<a id="pl.12.21"></a><var>12.21</var>referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.12.22"></a><var>12.22</var>referendum market value per resident marginal cost pupil unit to $476,000 120 percent of <br/>
<a id="pl.12.23"></a><var>12.23</var>the referendum market value equalizing factor.<br/>
<a id="pl.12.24"></a><var>12.24</var>    (c) A district's second tier referendum equalization levy equals the district's second <br/>
<a id="pl.12.25"></a><var>12.25</var>tier referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.12.26"></a><var>12.26</var>referendum market value per resident marginal cost pupil unit to $270,000 60 percent of <br/>
<a id="pl.12.27"></a><var>12.27</var>the referendum market value equalizing factor.<br/>
<a id="pl.12.28"></a><var>12.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.12.29"></a><var>12.29</var>    Sec. 8. Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision <br/>
<a id="pl.12.30"></a><var>12.30</var>to read:<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 17. <b>Adjusted debt service net tax capacity.</b> To calculate each district's <br/>
<a id="pl.12.32"></a><var>12.32</var>adjusted debt service net tax capacity, the commissioner of revenue must recompute each <br/>
<a id="pl.13.1"></a><var>13.1</var>district's adjusted net tax capacity using an alternative sales ratio comparing the sales price <br/>
<a id="pl.13.2"></a><var>13.2</var>to the estimated market value of the property.<br/>
<a id="pl.13.3"></a><var>13.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.13.4"></a><var>13.4</var>computing taxes payable in 2008.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.13.5"></a><var>13.5</var>    Sec. 9. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:<br/>
<a id="pl.13.6"></a><var>13.6</var>    Subd. 1a. <b>Limited market value.</b> In the case of all property classified as <br/>
<a id="pl.13.7"></a><var>13.7</var>agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, <br/>
<a id="pl.13.8"></a><var>13.8</var>or noncommercial seasonal residential recreational, the assessor shall compare the value <br/>
<a id="pl.13.9"></a><var>13.9</var>with the taxable portion of the value determined in the preceding assessment.<br/>
<a id="pl.13.10"></a><var>13.10</var>    For assessment years 2004, 2005, and 2006, the amount of the increase shall not <br/>
<a id="pl.13.11"></a><var>13.11</var>exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 <br/>
<a id="pl.13.12"></a><var>13.12</var>percent of the difference between the current assessment and the preceding assessment.<br/>
<a id="pl.13.13"></a><var>13.13</var>    For assessment year 2007, the amount of the increase shall not exceed the greater of <br/>
<a id="pl.13.14"></a><var>13.14</var>(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference <br/>
<a id="pl.13.15"></a><var>13.15</var>between the current assessment and the preceding assessment.<br/>
<a id="pl.13.16"></a><var>13.16</var>    For assessment year 2008, the amount of the increase shall not exceed the greater of <br/>
<a id="pl.13.17"></a><var>13.17</var>(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference <br/>
<a id="pl.13.18"></a><var>13.18</var>between the current assessment and the preceding assessment.<br/>
<a id="pl.13.19"></a><var>13.19</var>    This limitation shall not apply to increases in value due to improvements. For <br/>
<a id="pl.13.20"></a><var>13.20</var>purposes of this subdivision, the term "assessment" means the value prior to any exclusion <br/>
<a id="pl.13.21"></a><var>13.21</var>under subdivision 16.<br/>
<a id="pl.13.22"></a><var>13.22</var>    The provisions of this subdivision shall be in effect through assessment year 2008 <br/>
<a id="pl.13.23"></a><var>13.23</var>as provided in this subdivision.<br/>
<a id="pl.13.24"></a><var>13.24</var>    For purposes of the assessment/sales ratio study conducted under section 
         <statute_ref>127A.48</statute_ref>, <br/>
<a id="pl.13.25"></a><var>13.25</var>and the computation of state aids paid under chapters 122A, 123A, 123B, excluding <br/>
<a id="pl.13.26"></a><var>13.26</var>section 
<statute_ref>123B.53</statute_ref>, 124D, 125A, 126C, 127A, and 477A, market values and net tax <br/>
<a id="pl.13.27"></a><var>13.27</var>capacities determined under this subdivision and subdivision 16, shall be used.<br/>
<a id="pl.13.28"></a><var>13.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.13.29"></a><var>13.29</var>computing taxes payable in 2008.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.13.30"></a><var>13.30</var>    Sec. 10. Minnesota Statutes 2006, section 273.1393, is amended to read:<br/>
<a id="pl.13.31"></a><var>13.31</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.13.32"></a><var>13.32</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.13.33"></a><var>13.33</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.14.1"></a><var>14.1</var>    (1) disaster credit as provided in section 
         <statute_ref>273.123</statute_ref>; <br/>
<a id="pl.14.2"></a><var>14.2</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>; <br/>
<a id="pl.14.3"></a><var>14.3</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>; <br/>
<a id="pl.14.4"></a><var>14.4</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>; <br/>
<a id="pl.14.5"></a><var>14.5</var>    (5) disparity reduction credit;<br/>
<a id="pl.14.6"></a><var>14.6</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>; <br/>
<a id="pl.14.7"></a><var>14.7</var>    (7) homestead and agricultural credits as provided in section 
         <statute_ref>273.1384</statute_ref>; <br/>
<a id="pl.14.8"></a><var>14.8</var>    (8) school bond agricultural credit as provided in section 123B.555;<br/>
<a id="pl.14.9"></a><var>14.9</var>    (8) (9) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>; and <br/>
<a id="pl.14.10"></a><var>14.10</var>    (9) (10) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>. <br/>
<a id="pl.14.11"></a><var>14.11</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.14.12"></a><var>14.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.14.13"></a><var>14.13</var>thereafter.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.14.14"></a><var>14.14</var>    Sec. 11. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.14.15"></a><var>14.15</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.14.16"></a><var>14.16</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br/>
<a id="pl.14.17"></a><var>14.17</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br/>
<a id="pl.14.18"></a><var>14.18</var>year's assessment roll, a notice of proposed property taxes.<br/>
<a id="pl.14.19"></a><var>14.19</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.14.20"></a><var>14.20</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.14.21"></a><var>14.21</var>each taxing authority proposes to collect for taxes payable the following year. In the case <br/>
<a id="pl.14.22"></a><var>14.22</var>of a town, or in the case of the state general tax, the final tax amount will be its proposed <br/>
<a id="pl.14.23"></a><var>14.23</var>tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, <br/>
<a id="pl.14.24"></a><var>14.24</var>the notice must clearly state that each taxing authority, including regional library districts <br/>
<a id="pl.14.25"></a><var>14.25</var>established under section 
         <statute_ref>134.201</statute_ref>, and including the metropolitan taxing districts as <br/>
<a id="pl.14.26"></a><var>14.26</var>defined in paragraph (i), but excluding all other special taxing districts and towns, will <br/>
<a id="pl.14.27"></a><var>14.27</var>hold a public meeting to receive public testimony on the proposed budget and proposed or <br/>
<a id="pl.14.28"></a><var>14.28</var>final property tax levy, or, in case of a school district, on the current budget and proposed <br/>
<a id="pl.14.29"></a><var>14.29</var>property tax levy. It must clearly state the time and place of each taxing authority's <br/>
<a id="pl.14.30"></a><var>14.30</var>meeting, a telephone number for the taxing authority that taxpayers may call if they have <br/>
<a id="pl.14.31"></a><var>14.31</var>questions related to the notice, and an address where comments will be received by mail.<br/>
<a id="pl.14.32"></a><var>14.32</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.14.33"></a><var>14.33</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.14.34"></a><var>14.34</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.14.35"></a><var>14.35</var>current year as each appears in the records of the county assessor on November 1 of the <br/>
<a id="pl.15.1"></a><var>15.1</var>current year; and, in the case of residential property, whether the property is classified as <br/>
<a id="pl.15.2"></a><var>15.2</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br/>
<a id="pl.15.3"></a><var>15.3</var>which the market values apply and that the values are final values;<br/>
<a id="pl.15.4"></a><var>15.4</var>    (2) the items listed below, shown separately by county, city or town, and state <br/>
<a id="pl.15.5"></a><var>15.5</var>general tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref> <br/>
<a id="pl.15.6"></a><var>15.6</var>and the school bond agricultural credit under section 123B.555, voter approved school <br/>
<a id="pl.15.7"></a><var>15.7</var>levy, other local school levy, and the sum of the special taxing districts, and as a total <br/>
<a id="pl.15.8"></a><var>15.8</var>of all taxing authorities:<br/>
<a id="pl.15.9"></a><var>15.9</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.15.10"></a><var>15.10</var>    (ii) the proposed tax amount.<br/>
<a id="pl.15.11"></a><var>15.11</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.15.12"></a><var>15.12</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.15.13"></a><var>15.13</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.15.14"></a><var>15.14</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.15.15"></a><var>15.15</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.15.16"></a><var>15.16</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.15.17"></a><var>15.17</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.15.18"></a><var>15.18</var>note next to the school district's proposed amount that a referendum is pending and that, <br/>
<a id="pl.15.19"></a><var>15.19</var>if approved by the voters, the tax amount may be higher than shown on the notice. In <br/>
<a id="pl.15.20"></a><var>15.20</var>the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the <br/>
<a id="pl.15.21"></a><var>15.21</var>levy for Minneapolis Park and Recreation shall be listed separately from the remaining <br/>
<a id="pl.15.22"></a><var>15.22</var>amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul <br/>
<a id="pl.15.23"></a><var>15.23</var>Library Agency must be listed separately from the remaining amount of the city's levy. <br/>
<a id="pl.15.24"></a><var>15.24</var>In the case of Ramsey County, any amount levied under section 
         <statute_ref>134.07</statute_ref> may be listed <br/>
<a id="pl.15.25"></a><var>15.25</var>separately from the remaining amount of the county's levy. In the case of a parcel where <br/>
<a id="pl.15.26"></a><var>15.26</var>tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, <br/>
<a id="pl.15.27"></a><var>15.27</var>the proposed tax levy on the captured value or the proposed tax levy on the tax capacity <br/>
<a id="pl.15.28"></a><var>15.28</var>subject to the areawide tax must each be stated separately and not included in the sum of <br/>
<a id="pl.15.29"></a><var>15.29</var>the special taxing districts; and<br/>
<a id="pl.15.30"></a><var>15.30</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.15.31"></a><var>15.31</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.15.32"></a><var>15.32</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.15.33"></a><var>15.33</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.15.34"></a><var>15.34</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.15.35"></a><var>15.35</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.15.36"></a><var>15.36</var>the following:<br/>
<a id="pl.16.1"></a><var>16.1</var>    (1) special assessments;<br/>
<a id="pl.16.2"></a><var>16.2</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.16.3"></a><var>16.3</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.16.4"></a><var>16.4</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.16.5"></a><var>16.5</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.16.6"></a><var>16.6</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.16.7"></a><var>16.7</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.16.8"></a><var>16.8</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.16.9"></a><var>16.9</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.16.10"></a><var>16.10</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.16.11"></a><var>16.11</var>reductions for contamination.<br/>
<a id="pl.16.12"></a><var>16.12</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.16.13"></a><var>16.13</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.16.14"></a><var>16.14</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.16.16"></a><var>16.16</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.16.17"></a><var>16.17</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.16.18"></a><var>16.18</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.16.19"></a><var>16.19</var>in the following year.<br/>
<a id="pl.16.20"></a><var>16.20</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.16.21"></a><var>16.21</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.16.22"></a><var>16.22</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.16.23"></a><var>16.23</var>renter, or lessee; or<br/>
<a id="pl.16.24"></a><var>16.24</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.16.25"></a><var>16.25</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.16.26"></a><var>16.26</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br/>
<a id="pl.16.27"></a><var>16.27</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br/>
<a id="pl.16.28"></a><var>16.28</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.16.29"></a><var>16.29</var>    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special <br/>
<a id="pl.16.30"></a><var>16.30</var>taxing districts" means the following taxing districts in the seven-county metropolitan area <br/>
<a id="pl.16.31"></a><var>16.31</var>that levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.16.32"></a><var>16.32</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.16.33"></a><var>16.33</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.16.34"></a><var>16.34</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.16.35"></a><var>16.35</var>and<br/>
<a id="pl.16.36"></a><var>16.36</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.17.1"></a><var>17.1</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.17.2"></a><var>17.2</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.17.3"></a><var>17.3</var>398A shall be included with the appropriate county's levy and shall be discussed at that <br/>
<a id="pl.17.4"></a><var>17.4</var>county's public hearing.<br/>
<a id="pl.17.5"></a><var>17.5</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.17.6"></a><var>17.6</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.17.7"></a><var>17.7</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.17.8"></a><var>17.8</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.17.9"></a><var>17.9</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.17.10"></a><var>17.10</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.17.11"></a><var>17.11</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.17.12"></a><var>17.12</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.17.13"></a><var>17.13</var>local government purchases;<br/>
<a id="pl.17.14"></a><var>17.14</var>    (2) population growth and decline;<br/>
<a id="pl.17.15"></a><var>17.15</var>    (3) state or federal government action; and<br/>
<a id="pl.17.16"></a><var>17.16</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.17.17"></a><var>17.17</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.17.18"></a><var>17.18</var>include.<br/>
<a id="pl.17.19"></a><var>17.19</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.17.20"></a><var>17.20</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.17.21"></a><var>17.21</var>opportunity for comment.<br/>
<a id="pl.17.22"></a><var>17.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.17.23"></a><var>17.23</var>thereafter.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.17.24"></a><var>17.24</var>    Sec. 12. Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read:<br/>
<a id="pl.17.25"></a><var>17.25</var>    Subd. 2. <b>School district </b><b>in more than one county</b><b> levies; special requirements</b><b>.</b> (a) <br/>
<a id="pl.17.26"></a><var>17.26</var>In school districts lying in more than one county, the clerk shall certify the tax levied to the <br/>
<a id="pl.17.27"></a><var>17.27</var>auditor of the county in which the administrative offices of the school district are located.<br/>
<a id="pl.17.28"></a><var>17.28</var>    (b) The clerk shall identify the portion of the school district levy that is levied for the <br/>
<a id="pl.17.29"></a><var>17.29</var>purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time <br/>
<a id="pl.17.30"></a><var>17.30</var>that the levy is certified under this section.<br/>
<a id="pl.17.31"></a><var>17.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.17.32"></a><var>17.32</var>thereafter.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.17.33"></a><var>17.33</var>    Sec. 13. Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read:<br/>
<a id="pl.18.1"></a><var>18.1</var>    Subd. 1b. <b>Computation of tax rates.</b> (a) The amounts certified to be levied against <br/>
<a id="pl.18.2"></a><var>18.2</var>net tax capacity under section 
         <statute_ref>275.07</statute_ref> by an individual local government unit shall be <br/>
<a id="pl.18.3"></a><var>18.3</var>divided by the total net tax capacity of all taxable properties within the local government <br/>
<a id="pl.18.4"></a><var>18.4</var>unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, <br/>
<a id="pl.18.5"></a><var>18.5</var>multiplied by each property's net tax capacity shall be each property's net tax capacity tax <br/>
<a id="pl.18.6"></a><var>18.6</var>for that local government unit before reduction by any credits. <br/>
<a id="pl.18.7"></a><var>18.7</var>    (b) The auditor shall also determine the school debt tax rate for each school district <br/>
<a id="pl.18.8"></a><var>18.8</var>equal to the school debt levy certified under section 275.07 divided by the total net tax <br/>
<a id="pl.18.9"></a><var>18.9</var>capacity of all taxable property within the district.<br/>
<a id="pl.18.10"></a><var>18.10</var>    (c) Any amount certified to the county auditor to be levied against market value shall <br/>
<a id="pl.18.11"></a><var>18.11</var>be divided by the total referendum market value of all taxable properties within the taxing <br/>
<a id="pl.18.12"></a><var>18.12</var>district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by <br/>
<a id="pl.18.13"></a><var>18.13</var>each property's referendum market value shall be each property's new referendum tax <br/>
<a id="pl.18.14"></a><var>18.14</var>before reduction by any credits. For the purposes of this subdivision, "referendum market <br/>
<a id="pl.18.15"></a><var>18.15</var>value" means the market value as defined in section 
         <statute_ref>126C.01, subdivision 3</statute_ref>. <br/>
<a id="pl.18.16"></a><var>18.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.18.17"></a><var>18.17</var>thereafter.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.18.18"></a><var>18.18</var>    Sec. 14. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.18.19"></a><var>18.19</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.18.20"></a><var>18.20</var>printing of the tax statements. The commissioner of revenue shall prescribe the form <br/>
<a id="pl.18.21"></a><var>18.21</var>of the property tax statement and its contents. The statement must contain a tabulated <br/>
<a id="pl.18.22"></a><var>18.22</var>statement of the dollar amount due to each taxing authority and the amount of the state <br/>
<a id="pl.18.23"></a><var>18.23</var>tax from the parcel of real property for which a particular tax statement is prepared. The <br/>
<a id="pl.18.24"></a><var>18.24</var>dollar amounts attributable to the county, the state tax, the voter approved school tax, the <br/>
<a id="pl.18.25"></a><var>18.25</var>other local school tax, the township or municipality, and the total of the metropolitan <br/>
<a id="pl.18.26"></a><var>18.26</var>special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must <br/>
<a id="pl.18.27"></a><var>18.27</var>be separately stated. The amounts due all other special taxing districts, if any, may be <br/>
<a id="pl.18.28"></a><var>18.28</var>aggregated except that any levies made by the regional rail authorities in the county of <br/>
<a id="pl.18.29"></a><var>18.29</var>Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A <br/>
<a id="pl.18.30"></a><var>18.30</var>shall be listed on a separate line directly under the appropriate county's levy. If the county <br/>
<a id="pl.18.31"></a><var>18.31</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.18.32"></a><var>18.32</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br/>
<a id="pl.18.33"></a><var>18.33</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.18.34"></a><var>18.34</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.18.35"></a><var>18.35</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.19.1"></a><var>19.1</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.19.2"></a><var>19.2</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.19.3"></a><var>19.3</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.19.4"></a><var>19.4</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br/>
<a id="pl.19.5"></a><var>19.5</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.19.6"></a><var>19.6</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.19.7"></a><var>19.7</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.19.8"></a><var>19.8</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.19.9"></a><var>19.9</var>also be listed on the tax statement.<br/>
<a id="pl.19.10"></a><var>19.10</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.19.11"></a><var>19.11</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.19.12"></a><var>19.12</var>tax statements for real property.<br/>
<a id="pl.19.13"></a><var>19.13</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.19.14"></a><var>19.14</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.19.15"></a><var>19.15</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.19.16"></a><var>19.16</var>in a column on the left:<br/>
<a id="pl.19.17"></a><var>19.17</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.19.18"></a><var>19.18</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.19.19"></a><var>19.19</var>subdivisions 1a and 16
         </statute_ref>;<br/>
<a id="pl.19.20"></a><var>19.20</var>    (3) the property's gross tax, calculated by adding the property's total property tax to <br/>
<a id="pl.19.21"></a><var>19.21</var>the sum of the aids enumerated in clause (4);<br/>
<a id="pl.19.22"></a><var>19.22</var>    (4) a total of the following aids:<br/>
<a id="pl.19.23"></a><var>19.23</var>    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C, <br/>
<a id="pl.19.24"></a><var>19.24</var>and 127A;<br/>
<a id="pl.19.25"></a><var>19.25</var>    (ii) local government aids for cities, towns, and counties under sections 
         <statute_ref>477A.011</statute_ref> to <br/>
<statute_ref><a id="pl.19.26"></a><var>19.26</var>477A.04
         </statute_ref>; and<br/>
<a id="pl.19.27"></a><var>19.27</var>    (iii) disparity reduction aid under section 
         <statute_ref>273.1398</statute_ref>;<br/>
<a id="pl.19.28"></a><var>19.28</var>    (5) for homestead residential and agricultural properties, the credits under section <br/>
<a id="pl.19.29"></a><var>19.29</var>sections
<statute_ref>273.1384 and 123B.555</statute_ref>;<br/>
<a id="pl.19.30"></a><var>19.30</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.123</statute_ref>; 
         <statute_ref>273.135</statute_ref>; 
         <statute_ref>273.1391</statute_ref>; <br/>
<statute_ref><a id="pl.19.31"></a><var>19.31</var>273.1398, subdivision 4
         </statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of credit received <br/>
<a id="pl.19.32"></a><var>19.32</var>under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax relief"; and<br/>
<a id="pl.19.33"></a><var>19.33</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.19.34"></a><var>19.34</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.19.35"></a><var>19.35</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.19.36"></a><var>19.36</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.20.1"></a><var>20.1</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.20.2"></a><var>20.2</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.20.3"></a><var>20.3</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.20.4"></a><var>20.4</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.20.5"></a><var>20.5</var>the information on a single announcement.<br/>
<a id="pl.20.6"></a><var>20.6</var>    The commissioner of revenue shall certify to the county auditor the actual or <br/>
<a id="pl.20.7"></a><var>20.7</var>estimated aids enumerated in paragraph (c), clause (4), that local governments will receive <br/>
<a id="pl.20.8"></a><var>20.8</var>in the following year. The commissioner must certify this amount by January 1 of each <br/>
<a id="pl.20.9"></a><var>20.9</var>year.<br/>
<a id="pl.20.10"></a><var>20.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.20.11"></a><var>20.11</var>thereafter.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.20.14"></a><var>20.14</var>    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to <br/>
<a id="pl.20.15"></a><var>20.15</var>read:<br/>
<a id="pl.20.16"></a><var>20.16</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater <br/>
<a id="pl.20.17"></a><var>20.17</var>than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing <br/>
<a id="pl.20.18"></a><var>20.18</var>percentage; plus (2) 19.141678 times the population decline percentage; plus (3) <br/>
<a id="pl.20.19"></a><var>20.19</var>2504.06334 times the road accidents factor; plus (4) 
         <statute_ref>355.0547</statute_ref>; minus (5) the metropolitan <br/>
<a id="pl.20.20"></a><var>20.20</var>area factor; minus (6) 49.10638 times the household size.<br/>
<a id="pl.20.21"></a><var>20.21</var>    (b) For a city with a population less than 2,500, "city revenue need" is the sum of (1) <br/>
<statute_ref><a id="pl.20.22"></a><var>20.22</var>2.387
</statute_ref> times the pre-1940 housing percentage 300; plus (2) 2.67591 times the commercial <br/>
<a id="pl.20.23"></a><var>20.23</var>industrial percentage; plus (3) 3.16042 times the population decline percentage; plus <br/>
<a id="pl.20.24"></a><var>20.24</var>(4) 
<statute_ref>1.206</statute_ref> times the transformed population; minus (5) 
<statute_ref>62.772</statute_ref>. 0.31 multiplied by the <br/>
<a id="pl.20.25"></a><var>20.25</var>difference between the city's population and 100. The city revenue need for a city with a <br/>
<a id="pl.20.26"></a><var>20.26</var>population less than 2,500 may not exceed 500.<br/>
<a id="pl.20.27"></a><var>20.27</var>    (c) For a city with a population of 2,500 or more and a population in one of the most <br/>
<a id="pl.20.28"></a><var>20.28</var>recently available five years that was less than 2,500, "city revenue need" is the sum of (1) <br/>
<a id="pl.20.29"></a><var>20.29</var>its city revenue need calculated under paragraph (a) multiplied by its transition factor; <br/>
<a id="pl.20.30"></a><var>20.30</var>plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied <br/>
<a id="pl.20.31"></a><var>20.31</var>by the difference between one and its transition factor. For purposes of this paragraph, a <br/>
<a id="pl.20.32"></a><var>20.32</var>city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's <br/>
<a id="pl.20.33"></a><var>20.33</var>population estimate has been 2,500 or more. This provision only applies for aids payable <br/>
<a id="pl.21.1"></a><var>21.1</var>in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It <br/>
<a id="pl.21.2"></a><var>21.2</var>applies to any city for aids payable in 2009 and thereafter.<br/>
<a id="pl.21.3"></a><var>21.3</var>    (d) The city revenue need cannot be less than zero.<br/>
<a id="pl.21.4"></a><var>21.4</var>    (e) For calendar year 2005 2008 and subsequent years, the city revenue need for <br/>
<a id="pl.21.5"></a><var>21.5</var>a city, as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual <br/>
<a id="pl.21.6"></a><var>21.6</var>implicit price deflator for government consumption expenditures and gross investment for <br/>
<a id="pl.21.7"></a><var>21.7</var>state and local governments as prepared by the United States Department of Commerce, <br/>
<a id="pl.21.8"></a><var>21.8</var>for the most recently available year to the 2003 2000 implicit price deflator for state <br/>
<a id="pl.21.9"></a><var>21.9</var>and local government purchases.<br/>
<a id="pl.21.10"></a><var>21.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2008.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.21.11"></a><var>21.11</var>    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, is amended to read:<br/>
<a id="pl.21.12"></a><var>21.12</var>    Subd. 36. <b>City aid base.</b> (a) Except as otherwise provided in this subdivision, <br/>
<a id="pl.21.13"></a><var>21.13</var>"city aid base" is zero.<br/>
<a id="pl.21.14"></a><var>21.14</var>    (b) The city aid base for any city with a population less than 500 is increased by <br/>
<a id="pl.21.15"></a><var>21.15</var>$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount <br/>
<a id="pl.21.16"></a><var>21.16</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.21.17"></a><var>21.17</var>increased by $40,000 for aids payable in calendar year 1995 only, provided that:<br/>
<a id="pl.21.18"></a><var>21.18</var>    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;<br/>
<a id="pl.21.19"></a><var>21.19</var>    (ii) the city portion of the tax capacity rate exceeds 100 percent; and<br/>
<a id="pl.21.20"></a><var>21.20</var>    (iii) its city aid base is less than $60 per capita.<br/>
<a id="pl.21.21"></a><var>21.21</var>    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and <br/>
<a id="pl.21.22"></a><var>21.22</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.21.23"></a><var>21.23</var>paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:<br/>
<a id="pl.21.24"></a><var>21.24</var>    (i) the city has a population in 1994 of 2,500 or more;<br/>
<a id="pl.21.25"></a><var>21.25</var>    (ii) the city is located in a county, outside of the metropolitan area, which contains a <br/>
<a id="pl.21.26"></a><var>21.26</var>city of the first class;<br/>
<a id="pl.21.27"></a><var>21.27</var>    (iii) the city's net tax capacity used in calculating its 1996 aid under section <br/>
<statute_ref><a id="pl.21.28"></a><var>21.28</var>477A.013
         </statute_ref> is less than $400 per capita; and<br/>
<a id="pl.21.29"></a><var>21.29</var>    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of <br/>
<a id="pl.21.30"></a><var>21.30</var>property located in the city is classified as railroad property.<br/>
<a id="pl.21.31"></a><var>21.31</var>    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and <br/>
<a id="pl.21.32"></a><var>21.32</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.21.33"></a><var>21.33</var>paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:<br/>
<a id="pl.21.34"></a><var>21.34</var>    (i) the city was incorporated as a statutory city after December 1, 1993;<br/>
<a id="pl.21.35"></a><var>21.35</var>    (ii) its city aid base does not exceed $5,600; and<br/>
<a id="pl.22.1"></a><var>22.1</var>    (iii) the city had a population in 1996 of 5,000 or more.<br/>
<a id="pl.22.2"></a><var>22.2</var>    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the <br/>
<a id="pl.22.3"></a><var>22.3</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.22.4"></a><var>22.4</var>paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:<br/>
<a id="pl.22.5"></a><var>22.5</var>    (i) the city had a population in 1996 of at least 50,000;<br/>
<a id="pl.22.6"></a><var>22.6</var>    (ii) its population had increased by at least 40 percent in the ten-year period ending <br/>
<a id="pl.22.7"></a><var>22.7</var>in 1996; and<br/>
<a id="pl.22.8"></a><var>22.8</var>    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.<br/>
<a id="pl.22.9"></a><var>22.9</var>    (f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and <br/>
<a id="pl.22.10"></a><var>22.10</var>thereafter, and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.22.11"></a><var>22.11</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $150,000 in calendar year 2000 only, <br/>
<a id="pl.22.12"></a><var>22.12</var>provided that:<br/>
<a id="pl.22.13"></a><var>22.13</var>    (1) the city has a population that is greater than 1,000 and less than 2,500;<br/>
<a id="pl.22.14"></a><var>22.14</var>    (2) its commercial and industrial percentage for aids payable in 1999 is greater <br/>
<a id="pl.22.15"></a><var>22.15</var>than 45 percent; and<br/>
<a id="pl.22.16"></a><var>22.16</var>    (3) the total market value of all commercial and industrial property in the city <br/>
<a id="pl.22.17"></a><var>22.17</var>for assessment year 1999 is at least 15 percent less than the total market value of all <br/>
<a id="pl.22.18"></a><var>22.18</var>commercial and industrial property in the city for assessment year 1998.<br/>
<a id="pl.22.19"></a><var>22.19</var>    (g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and <br/>
<a id="pl.22.20"></a><var>22.20</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.22.21"></a><var>22.21</var>paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:<br/>
<a id="pl.22.22"></a><var>22.22</var>    (1) the city had a population in 1997 of 2,500 or more;<br/>
<a id="pl.22.23"></a><var>22.23</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.22.24"></a><var>22.24</var>477A.013
         </statute_ref> is less than $650 per capita;<br/>
<a id="pl.22.25"></a><var>22.25</var>    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under <br/>
<a id="pl.22.26"></a><var>22.26</var>section 
         <statute_ref>477A.013</statute_ref> is greater than 12 percent;<br/>
<a id="pl.22.27"></a><var>22.27</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.22.28"></a><var>22.28</var>20 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.22.29"></a><var>22.29</var>increase percentage was 100 percent; and<br/>
<a id="pl.22.30"></a><var>22.30</var>    (5) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.22.31"></a><var>22.31</var>is less than $7 per capita.<br/>
<a id="pl.22.32"></a><var>22.32</var>    (h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and <br/>
<a id="pl.22.33"></a><var>22.33</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.22.34"></a><var>22.34</var>paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:<br/>
<a id="pl.22.35"></a><var>22.35</var>    (1) the city has a population in 1997 of 2,000 or more;<br/>
<a id="pl.23.1"></a><var>23.1</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.23.2"></a><var>23.2</var>477A.013
         </statute_ref> is less than $455 per capita;<br/>
<a id="pl.23.3"></a><var>23.3</var>    (3) the net levy of the city used in calculating 1999 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.23.4"></a><var>23.4</var>greater than $195 per capita; and<br/>
<a id="pl.23.5"></a><var>23.5</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.23.6"></a><var>23.6</var>38 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.23.7"></a><var>23.7</var>increase percentage was 100 percent.<br/>
<a id="pl.23.8"></a><var>23.8</var>    (i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and <br/>
<a id="pl.23.9"></a><var>23.9</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.23.10"></a><var>23.10</var>paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:<br/>
<a id="pl.23.11"></a><var>23.11</var>    (1) the city has a population in 1998 that is greater than 200 but less than 500;<br/>
<a id="pl.23.12"></a><var>23.12</var>    (2) the city's revenue need used in calculating aids payable in 2000 was greater <br/>
<a id="pl.23.13"></a><var>23.13</var>than $200 per capita;<br/>
<a id="pl.23.14"></a><var>23.14</var>    (3) the city net tax capacity for the city used in calculating aids available in 2000 <br/>
<a id="pl.23.15"></a><var>23.15</var>was equal to or less than $200 per capita;<br/>
<a id="pl.23.16"></a><var>23.16</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.23.17"></a><var>23.17</var>is less than $65 per capita; and<br/>
<a id="pl.23.18"></a><var>23.18</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero.<br/>
<a id="pl.23.19"></a><var>23.19</var>    (j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and <br/>
<a id="pl.23.20"></a><var>23.20</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.23.21"></a><var>23.21</var>paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:<br/>
<a id="pl.23.22"></a><var>23.22</var>    (1) the city had a population in 1998 that is greater than 200 but less than 500;<br/>
<a id="pl.23.23"></a><var>23.23</var>    (2) the city's commercial industrial percentage used in calculating aids payable in <br/>
<a id="pl.23.24"></a><var>23.24</var>2000 was less than ten percent;<br/>
<a id="pl.23.25"></a><var>23.25</var>    (3) more than 25 percent of the city's population was 60 years old or older according <br/>
<a id="pl.23.26"></a><var>23.26</var>to the 1990 census;<br/>
<a id="pl.23.27"></a><var>23.27</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.23.28"></a><var>23.28</var>is less than $15 per capita; and<br/>
<a id="pl.23.29"></a><var>23.29</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero.<br/>
<a id="pl.23.30"></a><var>23.30</var>    (k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and <br/>
<a id="pl.23.31"></a><var>23.31</var>by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of <br/>
<a id="pl.23.32"></a><var>23.32</var>total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.23.33"></a><var>23.33</var>increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 <br/>
<a id="pl.23.34"></a><var>23.34</var>only, provided that:<br/>
<a id="pl.23.35"></a><var>23.35</var>    (1) the net tax capacity of the city used in calculating its 2000 aid under section <br/>
<statute_ref><a id="pl.23.36"></a><var>23.36</var>477A.013
         </statute_ref> is less than $810 per capita;<br/>
<a id="pl.24.1"></a><var>24.1</var>    (2) the population of the city declined more than two percent between 1988 and 1998;<br/>
<a id="pl.24.2"></a><var>24.2</var>    (3) the net levy of the city used in calculating 2000 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.24.3"></a><var>24.3</var>greater than $240 per capita; and<br/>
<a id="pl.24.4"></a><var>24.4</var>    (4) the city received less than $36 per capita in aid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.24.5"></a><var>24.5</var>subdivision 9
         </statute_ref>, for aids payable in 2000.<br/>
<a id="pl.24.6"></a><var>24.6</var>    (l) The city aid base for a city with a population of 10,000 or more which is located <br/>
<a id="pl.24.7"></a><var>24.7</var>outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the <br/>
<a id="pl.24.8"></a><var>24.8</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.24.9"></a><var>24.9</var>paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to <br/>
<a id="pl.24.10"></a><var>24.10</var>the lesser of:<br/>
<a id="pl.24.11"></a><var>24.11</var>    (1)(i) the total population of the city, as determined by the United States Bureau of <br/>
<a id="pl.24.12"></a><var>24.12</var>the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or<br/>
<a id="pl.24.13"></a><var>24.13</var>    (2) $2,500,000.<br/>
<a id="pl.24.14"></a><var>24.14</var>    (m) The city aid base is increased by $50,000 in 2002 and thereafter, and the <br/>
<a id="pl.24.15"></a><var>24.15</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.24.16"></a><var>24.16</var>paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:<br/>
<a id="pl.24.17"></a><var>24.17</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.24.18"></a><var>24.18</var>    (2) its population in 2000 is between 10,000 and 20,000; and<br/>
<a id="pl.24.19"></a><var>24.19</var>    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, <br/>
<a id="pl.24.20"></a><var>24.20</var>was greater than 25 percent.<br/>
<a id="pl.24.21"></a><var>24.21</var>    (n) The city aid base for a city is increased by $150,000 in calendar years 2002 to <br/>
<a id="pl.24.22"></a><var>24.22</var>2011 and by an additional $75,000 in calendar years 2008 to 2013 and the maximum <br/>
<a id="pl.24.23"></a><var>24.23</var>amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is <br/>
<a id="pl.24.24"></a><var>24.24</var>also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year <br/>
<a id="pl.24.25"></a><var>24.25</var>2008 only, provided that:<br/>
<a id="pl.24.26"></a><var>24.26</var>    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999;<br/>
<a id="pl.24.27"></a><var>24.27</var>    (2) its home county is located within the seven-county metropolitan area;<br/>
<a id="pl.24.28"></a><var>24.28</var>    (3) its pre-1940 housing percentage is less than 15 percent; and<br/>
<a id="pl.24.29"></a><var>24.29</var>    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 <br/>
<a id="pl.24.30"></a><var>24.30</var>per capita.<br/>
<a id="pl.24.31"></a><var>24.31</var>    (o) The city aid base for a city is increased by $200,000 beginning in calendar <br/>
<a id="pl.24.32"></a><var>24.32</var>year 2003 and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.24.33"></a><var>24.33</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2003 only, <br/>
<a id="pl.24.34"></a><var>24.34</var>provided that the city qualified for an increase in homestead and agricultural credit aid <br/>
<a id="pl.24.35"></a><var>24.35</var>under Laws 1995, chapter 264, article 8, section 18.<br/>
<a id="pl.25.1"></a><var>25.1</var>    (p) The city aid base for a city is increased by $200,000 in 2004 only and the <br/>
<a id="pl.25.2"></a><var>25.2</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.25.3"></a><var>25.3</var>also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear <br/>
<a id="pl.25.4"></a><var>25.4</var>dry cask storage facility.<br/>
<a id="pl.25.5"></a><var>25.5</var>    (q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the <br/>
<a id="pl.25.6"></a><var>25.6</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.25.7"></a><var>25.7</var>by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster <br/>
<a id="pl.25.8"></a><var>25.8</var>designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by <br/>
<a id="pl.25.9"></a><var>25.9</var>more than 40 percent between 1990 and 2000.<br/>
<a id="pl.25.10"></a><var>25.10</var>    (r) The city aid base for a city is increased by $25,000 $30,000 in 2006 2008 only <br/>
<a id="pl.25.11"></a><var>25.11</var>and the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.25.12"></a><var>25.12</var>increased by $25,000 $30,000 in calendar year 2006 2008 only if the city had a population <br/>
<a id="pl.25.13"></a><var>25.13</var>in 2003 of at least 1,000 and has a state park for which the city provides rescue services <br/>
<a id="pl.25.14"></a><var>25.14</var>and which comprised at least 14 percent of the total geographic area included within the <br/>
<a id="pl.25.15"></a><var>25.15</var>city boundaries in 2000.<br/>
<a id="pl.25.16"></a><var>25.16</var>    (s) The city aid base for a city with a population less than 5,000 is increased in <br/>
<a id="pl.25.17"></a><var>25.17</var>2006 and thereafter and the minimum and maximum amount of total aid it may receive <br/>
<a id="pl.25.18"></a><var>25.18</var>under this section is also increased in calendar year 2006 only by an amount equal to <br/>
<a id="pl.25.19"></a><var>25.19</var>$6 multiplied by its population.<br/>
<a id="pl.25.20"></a><var>25.20</var>    (t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum <br/>
<a id="pl.25.21"></a><var>25.21</var>and maximum amount of total aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, subdivision 9, <br/>
<a id="pl.25.22"></a><var>25.22</var>is also increased by $80,000 in calendar year 2007 only, if:<br/>
<a id="pl.25.23"></a><var>25.23</var>    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed <br/>
<a id="pl.25.24"></a><var>25.24</var>to be placed in trust status as tax-exempt Indian land;<br/>
<a id="pl.25.25"></a><var>25.25</var>    (2) the placement of the land is being challenged administratively or in court; and <br/>
<a id="pl.25.26"></a><var>25.26</var>    (3) due to the challenge, the land proposed to be placed in trust is still on the tax <br/>
<a id="pl.25.27"></a><var>25.27</var>rolls as of May 1, 2006.<br/>
<a id="pl.25.28"></a><var>25.28</var>    (u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and <br/>
<a id="pl.25.29"></a><var>25.29</var>the minimum and maximum total amount of aid it may receive under this section is also <br/>
<a id="pl.25.30"></a><var>25.30</var>increased in calendar year 2007 only, provided that:<br/>
<a id="pl.25.31"></a><var>25.31</var>    (1) the city has a 2004 estimated population greater than 200 but less than 2,000;<br/>
<a id="pl.25.32"></a><var>25.32</var>    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;<br/>
<a id="pl.25.33"></a><var>25.33</var>    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids <br/>
<a id="pl.25.34"></a><var>25.34</var>payable in 2006 was greater than 110 percent; and<br/>
<a id="pl.25.35"></a><var>25.35</var>    (4) it is located in a county where at least 15,000 acres of land are classified as <br/>
<a id="pl.25.36"></a><var>25.36</var>tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.<br/>
<a id="pl.26.1"></a><var>26.1</var>    (v) The city aid base for a city is increased by $140,000 in 2008 and thereafter, and <br/>
<a id="pl.26.2"></a><var>26.2</var>the maximum total aid it may receive under section 477A.013, subdivision 9, is also <br/>
<a id="pl.26.3"></a><var>26.3</var>increased by $140,000 in calendar year 2008 only if the city had a population in 2005 of <br/>
<a id="pl.26.4"></a><var>26.4</var>less than 3,000 and the city's boundaries as of 2007 were formed by the consolidation <br/>
<a id="pl.26.5"></a><var>26.5</var>of two cities and one township in 2002.<br/>
<a id="pl.26.6"></a><var>26.6</var>    (w) The city aid base for a city is increased by $100,000 in 2008 and thereafter, and <br/>
<a id="pl.26.7"></a><var>26.7</var>the maximum total aid it may receive under section 477A.013, subdivision 9, is also <br/>
<a id="pl.26.8"></a><var>26.8</var>increased by $100,000 in calendar year 2008 only if the city had a city net tax capacity for <br/>
<a id="pl.26.9"></a><var>26.9</var>aids payable in 2007 of less than $150 per capita and the city experienced flooding on <br/>
<a id="pl.26.10"></a><var>26.10</var>March 14, 2007, that resulted in evacuation of at least 40 homes.<br/>
<a id="pl.26.11"></a><var>26.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.26.12"></a><var>26.12</var>June 30, 2007.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.26.13"></a><var>26.13</var>    Sec. 3. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:<br/>
<a id="pl.26.14"></a><var>26.14</var>    Subd. 5. <b>County transition aid.</b> (a) For 2005, a county is eligible for transition <br/>
<a id="pl.26.15"></a><var>26.15</var>aid equal to the amount, if any, by which:<br/>
<a id="pl.26.16"></a><var>26.16</var>    (1) the difference between:<br/>
<a id="pl.26.17"></a><var>26.17</var>    (i) the aid the county received under subdivision 1 in 2004, divided by the total aid <br/>
<a id="pl.26.18"></a><var>26.18</var>paid to all counties under subdivision 1, multiplied by $205,000,000; and<br/>
<a id="pl.26.19"></a><var>26.19</var>    (ii) the amount of aid the county is certified to receive in 2005 under subdivisions <br/>
<a id="pl.26.20"></a><var>26.20</var>3 and 4;<br/>
<a id="pl.26.21"></a><var>26.21</var>exceeds:<br/>
<a id="pl.26.22"></a><var>26.22</var>    (2) three percent of the county's adjusted net tax capacity.<br/>
<a id="pl.26.23"></a><var>26.23</var>A county's aid under this paragraph may not be less than zero.<br/>
<a id="pl.26.24"></a><var>26.24</var>    (b) In 2006, a county is eligible to receive two-thirds of the transition aid it received <br/>
<a id="pl.26.25"></a><var>26.25</var>in 2005.<br/>
<a id="pl.26.26"></a><var>26.26</var>    (c) In 2007 and thereafter, a county is eligible to receive one-third of the transition <br/>
<a id="pl.26.27"></a><var>26.27</var>aid it received in 2005.<br/>
<a id="pl.26.28"></a><var>26.28</var>    (d) No county shall receive aid under this subdivision after 2007.<br/>
<a id="pl.26.29"></a><var>26.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2008 and <br/>
<a id="pl.26.30"></a><var>26.30</var>thereafter.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.26.31"></a><var>26.31</var>    Sec. 4. Minnesota Statutes 2006, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.26.32"></a><var>26.32</var>    Subd. 8. <b>City formula aid.</b> In calendar year 2004 and subsequent years, the <br/>
<a id="pl.26.33"></a><var>26.33</var>formula aid for a city is equal to the need increase percentage multiplied by the difference <br/>
<a id="pl.27.1"></a><var>27.1</var>between (1) the city's revenue need multiplied by its population, and (2) the sum of the <br/>
<a id="pl.27.2"></a><var>27.2</var>city's net tax capacity multiplied by the tax effort rate; the taconite aids under sections <br/>
<a id="pl.27.3"></a><var>27.3</var><statute_ref>298.28</statute_ref> and 
<statute_ref>298.282</statute_ref> to any city except a city directly impacted by a taconite mine or plant, <br/>
<a id="pl.27.4"></a><var>27.4</var>multiplied by the following percentages:<br/>
<a id="pl.27.5"></a><var>27.5</var>    (i) zero percent for aids payable in 2004;<br/>
<a id="pl.27.6"></a><var>27.6</var>    (ii) 25 percent for aids payable in 2005;<br/>
<a id="pl.27.7"></a><var>27.7</var>    (iii) 50 percent for aids payable in 2006;<br/>
<a id="pl.27.8"></a><var>27.8</var>    (iv) 75 percent for aids payable in 2007; and<br/>
<a id="pl.27.9"></a><var>27.9</var>    (v) 100 percent for aids payable in 2008 and thereafter.<br/>
<a id="pl.27.10"></a><var>27.10</var>    For purposes of this subdivision, "a city directly impacted by a taconite mine or <br/>
<a id="pl.27.11"></a><var>27.11</var>plant" means: (1) Babbit, (2) Eveleth, (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6) <br/>
<a id="pl.27.12"></a><var>27.12</var>Silver Bay, or (7) Virginia.<br/>
<a id="pl.27.13"></a><var>27.13</var>No city may have a formula aid amount less than zero. The need increase percentage <br/>
<a id="pl.27.14"></a><var>27.14</var>must be the same for all cities.<br/>
<a id="pl.27.15"></a><var>27.15</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.27.16"></a><var>27.16</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.27.17"></a><var>27.17</var>for aid under section 
         <statute_ref>477A.03</statute_ref> after the subtraction under section 
         <statute_ref>477A.014, subdivisions <br/>
<a id="pl.27.18"></a><var>27.18</var>4 and 5
         </statute_ref>.<br/>
<a id="pl.27.19"></a><var>27.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2008.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.27.20"></a><var>27.20</var>    Sec. 5. Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.27.21"></a><var>27.21</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2002 and thereafter 2008, each <br/>
<a id="pl.27.22"></a><var>27.22</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.27.23"></a><var>27.23</var>subdivision 8, and (2) its city aid base, and (3) one-half of the difference between its total <br/>
<a id="pl.27.24"></a><var>27.24</var>aid in the previous year under this section and its city aid base in the previous year. For aids <br/>
<a id="pl.27.25"></a><var>27.25</var>payable in 2009 and thereafter, each city shall receive an aid distribution equal to the sum <br/>
<a id="pl.27.26"></a><var>27.26</var>of (1) the city formula aid under subdivision 8, (2) its city aid base, and (3) its formula aid <br/>
<a id="pl.27.27"></a><var>27.27</var>under subdivision 8 in the previous year, prior to any adjustments under this subdivision.<br/>
<a id="pl.27.28"></a><var>27.28</var>    (b) For aids payable in 2008, the total aid for any city shall not exceed the sum of (1) <br/>
<a id="pl.27.29"></a><var>27.29</var>25 percent of its net levy for the year prior to the aid distribution plus (2) its total aid in the <br/>
<a id="pl.27.30"></a><var>27.30</var>previous year. For aids payable in 2005 2009 and thereafter, the total aid for any city shall <br/>
<a id="pl.27.31"></a><var>27.31</var>not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid <br/>
<a id="pl.27.32"></a><var>27.32</var>distribution plus (2) its total aid in the previous year. For aids payable in 2005 2008 and <br/>
<a id="pl.27.33"></a><var>27.33</var>thereafter, the total aid for any city with a population of 2,500 or more may not decrease <br/>
<a id="pl.27.34"></a><var>27.34</var>from be less than its total aid under this section in the previous year by an amount greater <br/>
<a id="pl.28.1"></a><var>28.1</var>than minus the lesser of (1) $15 multiplied by its population, or (2) ten percent of its net <br/>
<a id="pl.28.2"></a><var>28.2</var>levy in the year prior to the aid distribution.<br/>
<a id="pl.28.3"></a><var>28.3</var>    (c) For aids payable in 2004 only, the total aid for a city with a population less than <br/>
<a id="pl.28.4"></a><var>28.4</var>2,500 may not be less than the amount it was certified to receive in 2003 minus the greater <br/>
<a id="pl.28.5"></a><var>28.5</var>of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special Session <br/>
<a id="pl.28.6"></a><var>28.6</var>chapter 21, article 5, or (2) five percent of its 2003 aid amount. For aids payable in 2008 <br/>
<a id="pl.28.7"></a><var>28.7</var>only, the total aid for a city with a population less than 2,500 must not be less than the <br/>
<a id="pl.28.8"></a><var>28.8</var>amount it would otherwise be certified to receive in 2008 if this act was not enacted. For <br/>
<a id="pl.28.9"></a><var>28.9</var>aids payable in 2005 2008 and thereafter, the total aid for a city with a population less <br/>
<a id="pl.28.10"></a><var>28.10</var>than 2,500 must not be less than the amount it was certified to receive in the previous year <br/>
<a id="pl.28.11"></a><var>28.11</var>minus the lesser of (1) $15 multiplied by its population, or (2) five percent of its 2003 <br/>
<a id="pl.28.12"></a><var>28.12</var>certified aid amount.<br/>
<a id="pl.28.13"></a><var>28.13</var>    (d) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.28.14"></a><var>28.14</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.28.15"></a><var>28.15</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.28.16"></a><var>28.16</var>under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.28.17"></a><var>28.17</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.28.18"></a><var>28.18</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.28.19"></a><var>28.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2008 and <br/>
<a id="pl.28.20"></a><var>28.20</var>thereafter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.28.21"></a><var>28.21</var>    Sec. 6. Minnesota Statutes 2006, section 477A.013, is amended by adding a <br/>
<a id="pl.28.22"></a><var>28.22</var>subdivision to read:<br/>
<a id="pl.28.23"></a><var>28.23</var>    Subd. 11. <b>Towns.</b> In 2008 and subsequent years, each town that levied a property <br/>
<a id="pl.28.24"></a><var>28.24</var>tax in the previous year shall receive a distribution equal to $3 multiplied by its population.<br/>
<a id="pl.28.25"></a><var>28.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.28.26"></a><var>28.26</var>2008 and thereafter.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.28.27"></a><var>28.27</var>    Sec. 7. Minnesota Statutes 2006, section 477A.03, is amended to read:<br/>
<a id="pl.28.28"></a><var>28.28</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.28.29"></a><var>28.29</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.28.30"></a><var>28.30</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.28.31"></a><var>28.31</var>commissioner of revenue. <br/>
<a id="pl.28.32"></a><var>28.32</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2004, the total aids paid under section <br/>
<a id="pl.28.33"></a><var>28.33</var><statute_ref>477A.013, subdivision 9</statute_ref>, are limited to $429,000,000. For aids payable in 2005, the <br/>
<a id="pl.29.1"></a><var>29.1</var>total aids paid under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, are limited to $437,052,000. For <br/>
<a id="pl.29.2"></a><var>29.2</var>aids payable in 2006 and thereafter 2008, the total aids paid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.29.3"></a><var>29.3</var>subdivision 9
         </statute_ref>, is limited to $485,052,000 $545,052,000. For aids payable in 2009 and <br/>
<a id="pl.29.4"></a><var>29.4</var>thereafter, the total aids paid under section 477A.013, subdivision 9, are the amounts <br/>
<a id="pl.29.5"></a><var>29.5</var>certified to be paid in the previous year, adjusted for inflation as provided under <br/>
<a id="pl.29.6"></a><var>29.6</var>subdivision 5.<br/>
<a id="pl.29.7"></a><var>29.7</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in calendar year 2005 and thereafter <br/>
<a id="pl.29.8"></a><var>29.8</var>2008, the total aids paid to counties under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, are limited <br/>
<a id="pl.29.9"></a><var>29.9</var>to $100,500,000 $108,000,000. For aids payable in 2008 and thereafter, the total aids <br/>
<a id="pl.29.10"></a><var>29.10</var>paid under section 477A.0124, subdivision 3, are the amounts certified to be paid in the <br/>
<a id="pl.29.11"></a><var>29.11</var>previous year, adjusted for inflation as provided under subdivision 5. Each calendar year, <br/>
<a id="pl.29.12"></a><var>29.12</var>$500,000 shall be retained by the commissioner of revenue to make reimbursements <br/>
<a id="pl.29.13"></a><var>29.13</var>to the commissioner of finance for payments made under section 
         <statute_ref>611.27</statute_ref>. For calendar <br/>
<a id="pl.29.14"></a><var>29.14</var>year 2004, the amount shall be in addition to the payments authorized under section <br/>
<a id="pl.29.15"></a><var>29.15</var><statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 and subsequent years, The amount shall <br/>
<a id="pl.29.16"></a><var>29.16</var>be deducted from the appropriation under this paragraph. The reimbursements shall be to <br/>
<a id="pl.29.17"></a><var>29.17</var>defray the additional costs associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. <br/>
<a id="pl.29.18"></a><var>29.18</var>Any retained amounts not used for reimbursement in a year shall be included in the next <br/>
<a id="pl.29.19"></a><var>29.19</var>distribution of county need aid that is certified to the county auditors for the purpose of <br/>
<a id="pl.29.20"></a><var>29.20</var>property tax reduction for the next taxes payable year.<br/>
<a id="pl.29.21"></a><var>29.21</var>    (b) For aids payable in 2005, the total aids under section 
<statute_ref>477A.0124, subdivision <br/>
<a id="pl.29.22"></a><var>29.22</var>4
</statute_ref>, are limited to $105,000,000. For aids payable in 2006 and thereafter 2008, the total <br/>
<a id="pl.29.23"></a><var>29.23</var>aid under section 
         <statute_ref>477A.0124, subdivision 4</statute_ref>, is limited to $105,132,923 $112,169,054. <br/>
<a id="pl.29.24"></a><var>29.24</var>For aids payable in 2008 and thereafter, the total aids paid under section 477A.0124, <br/>
<a id="pl.29.25"></a><var>29.25</var>subdivision 4, are the amounts certified to be paid in the previous year, adjusted for <br/>
<a id="pl.29.26"></a><var>29.26</var>inflation as provided under subdivision 5. The commissioner of finance shall bill the <br/>
<a id="pl.29.27"></a><var>29.27</var>commissioner of revenue for the cost of preparation of local impact notes as required by <br/>
<a id="pl.29.28"></a><var>29.28</var>section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.29.29"></a><var>29.29</var>of education shall bill the commissioner of revenue for the cost of preparation of local <br/>
<a id="pl.29.30"></a><var>29.30</var>impact notes for school districts as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal <br/>
<a id="pl.29.31"></a><var>29.31</var>year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed <br/>
<a id="pl.29.32"></a><var>29.32</var>under this paragraph from the appropriation under this paragraph. The amounts deducted <br/>
<a id="pl.29.33"></a><var>29.33</var>are appropriated to the commissioner of finance and the commissioner of education for the <br/>
<a id="pl.29.34"></a><var>29.34</var>preparation of local impact notes.<br/>
<a id="pl.29.35"></a><var>29.35</var>    Subd. 5. <b>Inflation adjustment.</b> (a) In 2009 and thereafter, the amount paid under <br/>
<a id="pl.29.36"></a><var>29.36</var>subdivision 2a shall each be increased by an amount as provided in paragraphs (b) and (c).<br/>
<a id="pl.30.1"></a><var>30.1</var>    (b) Unless the requirements of paragraph (c) are met, the increase shall be one <br/>
<a id="pl.30.2"></a><var>30.2</var>percent above the amount certified to be paid under those subdivisions in the previous year.<br/>
<a id="pl.30.3"></a><var>30.3</var>    (c) If the legislature adopts a new formula proposed by the study in section 11 <br/>
<a id="pl.30.4"></a><var>30.4</var>that all city organizations representing at least 40 cities in the state support, the increase <br/>
<a id="pl.30.5"></a><var>30.5</var>shall be equal to:<br/>
<a id="pl.30.6"></a><var>30.6</var>    (1) the amount certified to be paid under that subdivision in the previous year, <br/>
<a id="pl.30.7"></a><var>30.7</var>multiplied by<br/>
<a id="pl.30.8"></a><var>30.8</var>    (2) one plus the percentage increase in the implicit price deflator for state and <br/>
<a id="pl.30.9"></a><var>30.9</var>local government purchases of goods and services prepared by the Bureau of Economic <br/>
<a id="pl.30.10"></a><var>30.10</var>Analysis of the United States Department of Commerce for the 12-month period ending <br/>
<a id="pl.30.11"></a><var>30.11</var>March 31 of the previous year.<br/>
<a id="pl.30.12"></a><var>30.12</var>    The increase under this provision in any year may not be less than 2.5 percent or <br/>
<a id="pl.30.13"></a><var>30.13</var>greater than 5.0 percent.<br/>
<a id="pl.30.14"></a><var>30.14</var>    (d) In 2009 to 2010, the amounts paid under subdivision 2b, paragraphs (a) and (b) <br/>
<a id="pl.30.15"></a><var>30.15</var>shall be increased by the greater of (1) one percent over the amount paid in the previous <br/>
<a id="pl.30.16"></a><var>30.16</var>year, or (2) the inflation amount applied to the city appropriation under this subdivision. In <br/>
<a id="pl.30.17"></a><var>30.17</var>2011 and thereafter, the increase shall be equal to:<br/>
<a id="pl.30.18"></a><var>30.18</var>    (1) the amount certified to be paid under that subdivision in the previous year, <br/>
<a id="pl.30.19"></a><var>30.19</var>multiplied by<br/>
<a id="pl.30.20"></a><var>30.20</var>    (2) one plus the percentage increase in the implicit price deflator for state and <br/>
<a id="pl.30.21"></a><var>30.21</var>local government purchases of goods and services prepared by the Bureau of Economic <br/>
<a id="pl.30.22"></a><var>30.22</var>Analysis of the United States Department of Commerce for the 12-month period ending <br/>
<a id="pl.30.23"></a><var>30.23</var>March 31 of the previous year.<br/>
<a id="pl.30.24"></a><var>30.24</var>    The increase under this provision in any year may not be less than 2.5 percent or <br/>
<a id="pl.30.25"></a><var>30.25</var>greater than 5.0 percent.<br/>
<a id="pl.30.26"></a><var>30.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.30.27"></a><var>30.27</var>2008 and thereafter.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.30.28"></a><var>30.28</var>    Sec. 8. <b>UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR </b><br/>
<a id="pl.30.29"></a><var>30.29</var><b>CALCULATION OF SCHOOL DISTRICT AIDS AND LEVIES.</b><br/>
<a id="pl.30.30"></a><var>30.30</var>    For purposes of calculating school levies and aids for fiscal years 2009, 2010, and <br/>
<a id="pl.30.31"></a><var>30.31</var>2011 only, the commissioner of revenue shall compute the adjusted net tax capacity and <br/>
<a id="pl.30.32"></a><var>30.32</var>referendum market value as if the tax base changes resulting from the amendments to <br/>
<a id="pl.30.33"></a><var>30.33</var>Minnesota Rules, chapter 8100, including the phase-in provisions of Minnesota Rules, <br/>
<a id="pl.30.34"></a><var>30.34</var>part 8100.0800, were effective one year earlier.<br/>
<a id="pl.31.1"></a><var>31.1</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal years 2009, <br/>
<a id="pl.31.2"></a><var>31.2</var>2010, and 2011.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.31.3"></a><var>31.3</var>    Sec. 9. <b>UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR </b><br/>
<a id="pl.31.4"></a><var>31.4</var><b>CALCULATION OF COUNTY AND CITY AIDS.</b><br/>
<a id="pl.31.5"></a><var>31.5</var>    For purposes of calculating aid for cities under section 477A.013, and for counties <br/>
<a id="pl.31.6"></a><var>31.6</var>under section 477A.0124, for payment in 2008, 2009, and 2010 only, the commissioner <br/>
<a id="pl.31.7"></a><var>31.7</var>of revenue shall calculate the adjusted net tax capacity of cities and counties, as defined <br/>
<a id="pl.31.8"></a><var>31.8</var>in sections 477A.011 and 477A.0124, as if the tax base changes resulting from the <br/>
<a id="pl.31.9"></a><var>31.9</var>amendments to Minnesota Rules, chapter 8100, including the phase-in provisions of <br/>
<a id="pl.31.10"></a><var>31.10</var>Minnesota Rules, part 8100.0800, were effective one year earlier.<br/>
<a id="pl.31.11"></a><var>31.11</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2008, 2009, <br/>
<a id="pl.31.12"></a><var>31.12</var>and 2010.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.31.13"></a><var>31.13</var>    Sec. 10. <b>MAHNOMEN COUNTY; COUNTY PROPERTY TAX </b><br/>
<a id="pl.31.14"></a><var>31.14</var><b>REIMBURSEMENT, CITY AND SCHOOL DISTRICT TAX BASE </b><br/>
<a id="pl.31.15"></a><var>31.15</var><b>ADJUSTMENTS.</b><br/>
<a id="pl.31.16"></a><var>31.16</var>    Subdivision 1. <b>Aid appropriation.</b> $250,000 is appropriated in fiscal year 2009 <br/>
<a id="pl.31.17"></a><var>31.17</var>from the general fund to the commissioner of revenue to make a payment in calendar year <br/>
<a id="pl.31.18"></a><var>31.18</var>2008 to the county of Mahnomen to compensate for the loss of property tax revenue due <br/>
<a id="pl.31.19"></a><var>31.19</var>to the pending placement of property, located in the city of Mahnomen, into trust status by <br/>
<a id="pl.31.20"></a><var>31.20</var>the United States Department of the Interior, Bureau of Indian Affairs.<br/>
<a id="pl.31.21"></a><var>31.21</var>    Subd. 2. <b>School district and city tax base adjustments.</b> (a) The commissioner of <br/>
<a id="pl.31.22"></a><var>31.22</var>revenue must reduce the referendum market value and adjusted net tax capacity used to <br/>
<a id="pl.31.23"></a><var>31.23</var>calculate school levies beginning with taxes payable in 2008 and subsequent years for <br/>
<a id="pl.31.24"></a><var>31.24</var>Independent School District No. 432, Mahnomen, by the amounts attributable to the <br/>
<a id="pl.31.25"></a><var>31.25</var>property that is pending placement into trust status by the United States Department of <br/>
<a id="pl.31.26"></a><var>31.26</var>the Interior, Bureau of Indian Affairs. This adjustment shall be made each year until one <br/>
<a id="pl.31.27"></a><var>31.27</var>year after the removal of the property from the tax rolls.<br/>
<a id="pl.31.28"></a><var>31.28</var>    (b) The commissioner of revenue must reduce the city net tax capacity used to <br/>
<a id="pl.31.29"></a><var>31.29</var>calculate city aid under sections 477A.011 to 477A.03, beginning with aids payable in <br/>
<a id="pl.31.30"></a><var>31.30</var>2008 for the city of Mahnomen, by the amounts attributable to property that is pending <br/>
<a id="pl.31.31"></a><var>31.31</var>placement into trust status by the United States Department of the Interior, Bureau of <br/>
<a id="pl.31.32"></a><var>31.32</var>Indian Affairs. This adjustment shall be made each year until one year after the removal of <br/>
<a id="pl.31.33"></a><var>31.33</var>the property from the tax rolls.<br/>
<a id="pl.32.1"></a><var>32.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids and levies payable in 2008 <br/>
<a id="pl.32.2"></a><var>32.2</var>and thereafter.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.32.3"></a><var>32.3</var>    Sec. 11. <b>STUDY OF CITY LOCAL GOVERNMENT AID PROGRAM.</b><br/>
<a id="pl.32.4"></a><var>32.4</var>    The commissioner of revenue shall work with representatives of all major city <br/>
<a id="pl.32.5"></a><var>32.5</var>organizations, representing at least 40 cities on this issue, to study the current local <br/>
<a id="pl.32.6"></a><var>32.6</var>government aid formula for cities, along with alternatives proposed by the various <br/>
<a id="pl.32.7"></a><var>32.7</var>interest groups, and provide a written report with recommendations to the legislature, in <br/>
<a id="pl.32.8"></a><var>32.8</var>compliance with Minnesota Statutes, sections 3.195 and 3.197, by February 1, 2008. <br/>
<a id="pl.32.9"></a><var>32.9</var>The study must list the alternatives considered and any recommended changes for <br/>
<a id="pl.32.10"></a><var>32.10</var>which consensus has been reached. If there is no consensus on proposed changes, the <br/>
<a id="pl.32.11"></a><var>32.11</var>commissioner shall report this. The commissioner shall allocate minimal staff time to the <br/>
<a id="pl.32.12"></a><var>32.12</var>study, but must provide staff to organize and chair any meetings of the study group and <br/>
<a id="pl.32.13"></a><var>32.13</var>provide modeling assistance for the final proposed changes.<br/>
<a id="pl.32.14"></a><var>32.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.32.17"></a><var>32.17</var>    Section 1. Minnesota Statutes 2006, section 97A.061, subdivision 2, is amended to <br/>
<a id="pl.32.18"></a><var>32.18</var>read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 2. <b>Allocation.</b> (a) Except as provided in subdivision 3, the county treasurer <br/>
<a id="pl.32.20"></a><var>32.20</var>shall allocate the payment among the county, towns, and school districts on the same basis <br/>
<a id="pl.32.21"></a><var>32.21</var>as if the payments were taxes on the land received in the year. Payment of a town's or a <br/>
<a id="pl.32.22"></a><var>32.22</var>school district's allocation must be made by the county treasurer to the town or school <br/>
<a id="pl.32.23"></a><var>32.23</var>district within 30 days of receipt of the payment to the county. The county's share of the <br/>
<a id="pl.32.24"></a><var>32.24</var>payment shall be deposited in the county general revenue fund.<br/>
<a id="pl.32.25"></a><var>32.25</var>    (b) The county treasurer of a county with a population over 39,000 but less than <br/>
<a id="pl.32.26"></a><var>32.26</var>42,000 in the 1950 federal census shall allocate the payment only among the towns and <br/>
<a id="pl.32.27"></a><var>32.27</var>school districts on the same basis as if the payments were taxes on the lands received <br/>
<a id="pl.32.28"></a><var>32.28</var>in the current year.<br/>
<a id="pl.32.29"></a><var>32.29</var>    (c) If a town received a payment in calendar year 2006 or thereafter under this <br/>
<a id="pl.32.30"></a><var>32.30</var>subdivision, and subsequently incorporated as a city, the city will continue to receive any <br/>
<a id="pl.32.31"></a><var>32.31</var>future year's allocations that would have been made to the town had it not incorporated, <br/>
<a id="pl.32.32"></a><var>32.32</var>provided the city does not pass ordinances prohibiting hunting.<br/>
<a id="pl.33.1"></a><var>33.1</var><b>EFFECTIVE DATE.</b>This section is effective for aid payments made in 2007 <br/>
<a id="pl.33.2"></a><var>33.2</var>and thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.33.3"></a><var>33.3</var>    Sec. 2. Minnesota Statutes 2006, section 127A.48, subdivision 3, is amended to read:<br/>
<a id="pl.33.4"></a><var>33.4</var>    Subd. 3. <b>Agricultural lands.</b> For purposes of determining the adjusted net tax <br/>
<a id="pl.33.5"></a><var>33.5</var>capacity of agricultural lands for the calculation of adjusted net tax capacities, the market <br/>
<a id="pl.33.6"></a><var>33.6</var>value of agricultural lands must be the price for which the property would sell in an <br/>
<a id="pl.33.7"></a><var>33.7</var>arm's-length transaction. When agricultural land is sold, the property is enrolled under <br/>
<a id="pl.33.8"></a><var>33.8</var>section 273.111, and the purchaser changes its use in a manner that would result in <br/>
<a id="pl.33.9"></a><var>33.9</var>a change of classification of the property, the assessment/sales ratio study under this <br/>
<a id="pl.33.10"></a><var>33.10</var>subdivision must take into account that changed classification as soon as practicable. A <br/>
<a id="pl.33.11"></a><var>33.11</var>change in status from homestead to nonhomestead or from nonhomestead to homestead is <br/>
<a id="pl.33.12"></a><var>33.12</var>not a change in classification under this subdivision.<br/>
<a id="pl.33.13"></a><var>33.13</var><b>EFFECTIVE DATE.</b>This section is effective for the first study prepared following <br/>
<a id="pl.33.14"></a><var>33.14</var>the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.33.15"></a><var>33.15</var>    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.33.16"></a><var>33.16</var>to read:<br/>
<a id="pl.33.17"></a><var>33.17</var>    Subd. 85. <b>Modular homes used as models by dealers.</b> (a) A modular home <br/>
<a id="pl.33.18"></a><var>33.18</var>is exempt if it:<br/>
<a id="pl.33.19"></a><var>33.19</var>    (1) is owned by a modular home dealer and is located on land owned or leased <br/>
<a id="pl.33.20"></a><var>33.20</var>by that dealer;<br/>
<a id="pl.33.21"></a><var>33.21</var>    (2) is a single-family model home;<br/>
<a id="pl.33.22"></a><var>33.22</var>    (3) is not available for sale and is used exclusively as a model;<br/>
<a id="pl.33.23"></a><var>33.23</var>    (4) is not permanently connected to any utilities except electricity; and<br/>
<a id="pl.33.24"></a><var>33.24</var>    (5) is situated on a temporary foundation.<br/>
<a id="pl.33.25"></a><var>33.25</var>    (b) The exemption under this subdivision is allowable for up to five assessment <br/>
<a id="pl.33.26"></a><var>33.26</var>years after the date it becomes located on the property, provided that the modular home <br/>
<a id="pl.33.27"></a><var>33.27</var>continues to meet all of the criteria under this subdivision each year. The owner of a <br/>
<a id="pl.33.28"></a><var>33.28</var>modular model home must notify the county assessor within 60 days that it has been <br/>
<a id="pl.33.29"></a><var>33.29</var>constructed or located on the property and must again notify the assessor if the modular <br/>
<a id="pl.33.30"></a><var>33.30</var>home ceases to meet any of the criteria. If more than one modular home is constructed or <br/>
<a id="pl.33.31"></a><var>33.31</var>situated on a property, the owner must notify the assessor within 60 days for each of the <br/>
<a id="pl.33.32"></a><var>33.32</var>models placed on the property.<br/>
<a id="pl.33.33"></a><var>33.33</var>    (c) For purposes of this subdivision, a "modular home" means a building or <br/>
<a id="pl.33.34"></a><var>33.34</var>structural unit that has been in whole or substantial part manufactured or constructed at an <br/>
<a id="pl.34.1"></a><var>34.1</var>off-site location to be wholly or partially assembled on-site as a single family dwelling. <br/>
<a id="pl.34.2"></a><var>34.2</var>Construction of the modular home must comply with applicable standards adopted in <br/>
<a id="pl.34.3"></a><var>34.3</var>Minnesota Rules authorized under Minnesota Statutes, chapter 16B. A modular home does <br/>
<a id="pl.34.4"></a><var>34.4</var>not include a structure subject to the requirements of the National Manufactured Home <br/>
<a id="pl.34.5"></a><var>34.5</var>Construction and Safety Standards Act of 1974 or prefabricated buildings, as defined in <br/>
<a id="pl.34.6"></a><var>34.6</var>Minnesota Statutes, section 327.31, subdivision 6.<br/>
<a id="pl.34.7"></a><var>34.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.34.8"></a><var>34.8</var>thereafter, for taxes payable in 2008 and thereafter. The five-year assessment time period <br/>
<a id="pl.34.9"></a><var>34.9</var>begins with the 2007 assessment for a modular model home currently situated provided <br/>
<a id="pl.34.10"></a><var>34.10</var>it meets all of the criteria and the county assessor is notified within 90 days of the day <br/>
<a id="pl.34.11"></a><var>34.11</var>following final enactment.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.34.12"></a><var>34.12</var>    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.34.13"></a><var>34.13</var>to read:<br/>
<a id="pl.34.14"></a><var>34.14</var>    Subd. 86. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.34.15"></a><var>34.15</var>subdivision 9, clause (a), attached machinery and other personal property which is part of <br/>
<a id="pl.34.16"></a><var>34.16</var>a simple-cycle combustion-turbine electric generation facility that exceeds 150 megawatts <br/>
<a id="pl.34.17"></a><var>34.17</var>of installed capacity and that meets the requirements of this subdivision is exempt. At <br/>
<a id="pl.34.18"></a><var>34.18</var>the time of construction, the facility must:<br/>
<a id="pl.34.19"></a><var>34.19</var>    (1) utilize natural gas as a primary fuel;<br/>
<a id="pl.34.20"></a><var>34.20</var>    (2) be owned by an electric generation and transmission cooperative;<br/>
<a id="pl.34.21"></a><var>34.21</var>    (3) be located within one mile of an existing 16-inch natural gas pipeline and a <br/>
<a id="pl.34.22"></a><var>34.22</var>69-kilovolt and a 230-kilovolt high-voltage electric transmission line;<br/>
<a id="pl.34.23"></a><var>34.23</var>    (4) be designed to provide peaking, emergency backup, or contingency services;<br/>
<a id="pl.34.24"></a><var>34.24</var>    (5) have received a certificate of need under section 216B.243 demonstrating <br/>
<a id="pl.34.25"></a><var>34.25</var>demand for its capacity; and<br/>
<a id="pl.34.26"></a><var>34.26</var>    (6) have received by resolution the approval from the governing bodies of the county <br/>
<a id="pl.34.27"></a><var>34.27</var>and the city in which the proposed facility is to be located for the exemption of personal <br/>
<a id="pl.34.28"></a><var>34.28</var>property under this subdivision.<br/>
<a id="pl.34.29"></a><var>34.29</var>    (b) Construction of the facility must be commenced after January 1, 2008, and <br/>
<a id="pl.34.30"></a><var>34.30</var>before January 1, 2012. Property eligible for this exemption does not include electric <br/>
<a id="pl.34.31"></a><var>34.31</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.34.32"></a><var>34.32</var>to the property or the facility.<br/>
<a id="pl.34.33"></a><var>34.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.35.1"></a><var>35.1</var>    Sec. 5. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.35.2"></a><var>35.2</var>to read:<br/>
<a id="pl.35.3"></a><var>35.3</var>    Subd. 87. <b>Apprenticeship training facilities.</b> Property used exclusively for a <br/>
<a id="pl.35.4"></a><var>35.4</var>state-approved apprenticeship program through the Department of Labor and Industry and <br/>
<a id="pl.35.5"></a><var>35.5</var>owned by a 501(c)(3) nonprofit corporation is exempt, provided the program participants <br/>
<a id="pl.35.6"></a><var>35.6</var>receive no compensation.<br/>
<a id="pl.35.7"></a><var>35.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.35.8"></a><var>35.8</var>thereafter, for taxes payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.35.9"></a><var>35.9</var>    Sec. 6. Minnesota Statutes 2006, section 272.115, subdivision 1, is amended to read:<br/>
<a id="pl.35.10"></a><var>35.10</var>    Subdivision 1. <b>Requirement.</b> Except as otherwise provided in subdivision 5, <br/>
<a id="pl.35.11"></a><var>35.11</var>whenever any real estate is sold for a consideration in excess of $1,000, whether by <br/>
<a id="pl.35.12"></a><var>35.12</var>warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, <br/>
<a id="pl.35.13"></a><var>35.13</var>grantee or the legal agent of either shall file a certificate of value with the county auditor <br/>
<a id="pl.35.14"></a><var>35.14</var>in the county in which the property is located when the deed or other document is <br/>
<a id="pl.35.15"></a><var>35.15</var>presented for recording. Contract for deeds are subject to recording under section 
         <statute_ref>507.235, <br/>
<a id="pl.35.16"></a><var>35.16</var>subdivision 1
         </statute_ref>. Value shall, in the case of any deed not a gift, be the amount of the full <br/>
<a id="pl.35.17"></a><var>35.17</var>actual consideration thereof, paid or to be paid, including the amount of any lien or liens <br/>
<a id="pl.35.18"></a><var>35.18</var>assumed. The items and value of personal property transferred with the real property <br/>
<a id="pl.35.19"></a><var>35.19</var>must be listed and deducted from the sale price. The certificate of value shall include the <br/>
<a id="pl.35.20"></a><var>35.20</var>classification to which the property belongs for the purpose of determining the fair market <br/>
<a id="pl.35.21"></a><var>35.21</var>value of the property, and shall include any proposed change in use of the property known <br/>
<a id="pl.35.22"></a><var>35.22</var>to the person filing the certificate that could change the classification of the property. The <br/>
<a id="pl.35.23"></a><var>35.23</var>certificate shall include financing terms and conditions of the sale which are necessary <br/>
<a id="pl.35.24"></a><var>35.24</var>to determine the actual, present value of the sale price for purposes of the sales ratio <br/>
<a id="pl.35.25"></a><var>35.25</var>study. The commissioner of revenue shall promulgate administrative rules specifying the <br/>
<a id="pl.35.26"></a><var>35.26</var>financing terms and conditions which must be included on the certificate. Pursuant to the <br/>
<a id="pl.35.27"></a><var>35.27</var>authority of the commissioner of revenue in section 
         <statute_ref>270C.306</statute_ref>, the certificate of value <br/>
<a id="pl.35.28"></a><var>35.28</var>must include the Social Security number or the federal employer identification number <br/>
<a id="pl.35.29"></a><var>35.29</var>of the grantors and grantees. The identification numbers of the grantors and grantees are <br/>
<a id="pl.35.30"></a><var>35.30</var>private data on individuals or nonpublic data as defined in section 
         <statute_ref>13.02, subdivisions 9 <br/>
<a id="pl.35.31"></a><var>35.31</var>and 12
         </statute_ref>, but, notwithstanding that section, the private or nonpublic data may be disclosed to <br/>
<a id="pl.35.32"></a><var>35.32</var>the commissioner of revenue for purposes of tax administration. The information required <br/>
<a id="pl.35.33"></a><var>35.33</var>to be shown on the certificate of value is limited to the information required as of the date <br/>
<a id="pl.35.34"></a><var>35.34</var>of the acknowledgment on the deed or other document to be recorded.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 7. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var>    Subd. 1a. <b>Limited market value.</b> In the case of all property classified as <br/>
<a id="pl.36.3"></a><var>36.3</var>agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, <br/>
<a id="pl.36.4"></a><var>36.4</var>or noncommercial seasonal residential recreational, the assessor shall compare the value <br/>
<a id="pl.36.5"></a><var>36.5</var>with the taxable portion of the value determined in the preceding assessment.<br/>
<a id="pl.36.6"></a><var>36.6</var>    For assessment years 2004, 2005, and 2006 through 2008, the amount of the increase <br/>
<a id="pl.36.7"></a><var>36.7</var>shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, <br/>
<a id="pl.36.8"></a><var>36.8</var>or (2) 25 percent of the difference between the current assessment and the preceding <br/>
<a id="pl.36.9"></a><var>36.9</var>assessment.<br/>
<a id="pl.36.10"></a><var>36.10</var>    For assessment year 2007 2009, the amount of the increase shall not exceed the <br/>
<a id="pl.36.11"></a><var>36.11</var>greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the <br/>
<a id="pl.36.12"></a><var>36.12</var>difference between the current assessment and the preceding assessment.<br/>
<a id="pl.36.13"></a><var>36.13</var>    For assessment year 2008 2010, the amount of the increase shall not exceed the <br/>
<a id="pl.36.14"></a><var>36.14</var>greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the <br/>
<a id="pl.36.15"></a><var>36.15</var>difference between the current assessment and the preceding assessment.<br/>
<a id="pl.36.16"></a><var>36.16</var>    This limitation shall not apply to increases in value due to improvements. For <br/>
<a id="pl.36.17"></a><var>36.17</var>purposes of this subdivision, the term "assessment" means the value prior to any exclusion <br/>
<a id="pl.36.18"></a><var>36.18</var>under subdivision 16.<br/>
<a id="pl.36.19"></a><var>36.19</var>    The provisions of this subdivision shall be in effect through assessment year 2008 <br/>
<a id="pl.36.20"></a><var>36.20</var>as provided in this subdivision.<br/>
<a id="pl.36.21"></a><var>36.21</var>    For purposes of the assessment/sales ratio study conducted under section 
         <statute_ref>127A.48</statute_ref>, <br/>
<a id="pl.36.22"></a><var>36.22</var>and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, <br/>
<a id="pl.36.23"></a><var>36.23</var>126C, 127A, and 477A, market values and net tax capacities determined under this <br/>
<a id="pl.36.24"></a><var>36.24</var>subdivision and subdivision 16, shall be used.<br/>
<a id="pl.36.25"></a><var>36.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.36.26"></a><var>36.26</var>thereafter, for taxes payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.36.27"></a><var>36.27</var>    Sec. 8. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to <br/>
<a id="pl.36.28"></a><var>36.28</var>read:<br/>
<a id="pl.36.29"></a><var>36.29</var>    Subd. 16a. <b>Valuation exclusion for certain improvements.</b> (a) Improvements to <br/>
<a id="pl.36.30"></a><var>36.30</var>homestead property made after January 2, 2008, shall be excluded from the value of the <br/>
<a id="pl.36.31"></a><var>36.31</var>property for assessment purposes provided that (1) the house is at least 50 years old at the <br/>
<a id="pl.36.32"></a><var>36.32</var>time of the improvement and (2) the assessor's estimated market value of the property on <br/>
<a id="pl.36.33"></a><var>36.33</var>January 2 of the current year does not exceed $400,000.<br/>
<a id="pl.37.1"></a><var>37.1</var>    (b) The age of a residence is the number of years since the original year of its <br/>
<a id="pl.37.2"></a><var>37.2</var>construction. In the case of an owner-occupied duplex or triplex, the improvement is <br/>
<a id="pl.37.3"></a><var>37.3</var>eligible regardless of which portion of the property was improved.<br/>
<a id="pl.37.4"></a><var>37.4</var>    (c) If the property lies in a jurisdiction that is subject to a building permit process, a <br/>
<a id="pl.37.5"></a><var>37.5</var>building permit must have been issued prior to commencement of the improvement. <br/>
<a id="pl.37.6"></a><var>37.6</var>The improvements for a single project or in any one year must add at least $15,000 <br/>
<a id="pl.37.7"></a><var>37.7</var>market value to the property to be eligible for exclusion under this subdivision. Only <br/>
<a id="pl.37.8"></a><var>37.8</var>improvements to the structure which is the residence of the qualifying homesteader, or <br/>
<a id="pl.37.9"></a><var>37.9</var>construction of or improvements to no more than one two-car garage per residence, <br/>
<a id="pl.37.10"></a><var>37.10</var>qualify for the provisions of this subdivision. Whenever a building permit is issued for <br/>
<a id="pl.37.11"></a><var>37.11</var>property currently classified as homestead, the issuing jurisdiction shall notify the property <br/>
<a id="pl.37.12"></a><var>37.12</var>owner of the possibility of valuation exclusion under this subdivision. The assessor shall <br/>
<a id="pl.37.13"></a><var>37.13</var>require an application, including documentation of the age of the house from the owner, <br/>
<a id="pl.37.14"></a><var>37.14</var>if unknown by the assessor. The application may be filed subsequent to the date of the <br/>
<a id="pl.37.15"></a><var>37.15</var>building permit provided that the application must be filed within two years of the date the <br/>
<a id="pl.37.16"></a><var>37.16</var>building permit was issued for the improvement. If the property lies in a jurisdiction that <br/>
<a id="pl.37.17"></a><var>37.17</var>is not subject to a building permit process, the application must be filed within two years <br/>
<a id="pl.37.18"></a><var>37.18</var>of the date the improvement was made. The assessor may require proof from the taxpayer <br/>
<a id="pl.37.19"></a><var>37.19</var>of the date the improvement was made. Applications must be received prior to July 1 of <br/>
<a id="pl.37.20"></a><var>37.20</var>any year in order to be effective for taxes payable in the following year.<br/>
<a id="pl.37.21"></a><var>37.21</var>    (d) In the case of a residence that is relocated, the relocation must be from a location <br/>
<a id="pl.37.22"></a><var>37.22</var>within the state and the only improvements eligible for exclusion under this subdivision <br/>
<a id="pl.37.23"></a><var>37.23</var>are (1) those for which building permits were issued to the homeowner after the residence <br/>
<a id="pl.37.24"></a><var>37.24</var>was relocated to its present site, and (2) those undertaken during or after the year the <br/>
<a id="pl.37.25"></a><var>37.25</var>residence is initially occupied by the homeowner, excluding any market value increase <br/>
<a id="pl.37.26"></a><var>37.26</var>relating to basic improvements that are necessary to install the residence on its foundation <br/>
<a id="pl.37.27"></a><var>37.27</var>and connect it to utilities at its present site.<br/>
<a id="pl.37.28"></a><var>37.28</var>    (e) No exclusion for an improvement may be granted by a local board of review or <br/>
<a id="pl.37.29"></a><var>37.29</var>county board of equalization, and no abatement of the taxes for qualifying improvements <br/>
<a id="pl.37.30"></a><var>37.30</var>may be granted by the county board unless (1) a building permit was issued prior to the <br/>
<a id="pl.37.31"></a><var>37.31</var>commencement of the improvement if the jurisdiction requires a building permit, and <br/>
<a id="pl.37.32"></a><var>37.32</var>(2) an application was completed.<br/>
<a id="pl.37.33"></a><var>37.33</var>    (f) The assessor shall note the qualifying value of each improvement on the <br/>
<a id="pl.37.34"></a><var>37.34</var>property's record, and the sum of those amounts must be subtracted from the value of the <br/>
<a id="pl.37.35"></a><var>37.35</var>property in each year for ten years after the improvement has been made. After ten years, <br/>
<a id="pl.37.36"></a><var>37.36</var>the amount of the qualifying value shall be added back as follows:<br/>
<a id="pl.38.1"></a><var>38.1</var>    (1) 50 percent in the two subsequent assessment years if the qualifying value is equal <br/>
<a id="pl.38.2"></a><var>38.2</var>to or less than $20,000 market value; or<br/>
<a id="pl.38.3"></a><var>38.3</var>    (2) 33-1/3 percent in the three subsequent assessment years if the qualifying value is <br/>
<a id="pl.38.4"></a><var>38.4</var>greater than $20,000 market value.<br/>
<a id="pl.38.5"></a><var>38.5</var>    (g) If an application is filed after the first assessment date at which an improvement <br/>
<a id="pl.38.6"></a><var>38.6</var>could have been subject to the valuation exclusion under this subdivision, the ten-year <br/>
<a id="pl.38.7"></a><var>38.7</var>period during which the value is subject to exclusion is reduced by the number of years <br/>
<a id="pl.38.8"></a><var>38.8</var>that have elapsed since the property would have qualified initially. The valuation <br/>
<a id="pl.38.9"></a><var>38.9</var>exclusion terminates whenever (1) the property is sold, or (2) the property is reclassified to <br/>
<a id="pl.38.10"></a><var>38.10</var>a class that does not qualify for treatment under this subdivision. Improvements made by <br/>
<a id="pl.38.11"></a><var>38.11</var>an occupant who is the purchaser of the property under a conditional purchase contract <br/>
<a id="pl.38.12"></a><var>38.12</var>do not qualify under this subdivision unless the seller of the property is a governmental <br/>
<a id="pl.38.13"></a><var>38.13</var>entity. The qualifying value of the property must be computed based upon the increase <br/>
<a id="pl.38.14"></a><var>38.14</var>from that structure's market value as of January 2 preceding the acquisition of the property <br/>
<a id="pl.38.15"></a><var>38.15</var>by the governmental entity.<br/>
<a id="pl.38.16"></a><var>38.16</var>    (h) The total qualifying value for a homestead may not exceed $75,000. The term <br/>
<a id="pl.38.17"></a><var>38.17</var>"qualifying value" means the increase in estimated market value resulting from the <br/>
<a id="pl.38.18"></a><var>38.18</var>improvement. The maximum qualifying value under this subdivision may result from no <br/>
<a id="pl.38.19"></a><var>38.19</var>more than two separate improvements to the homestead.<br/>
<a id="pl.38.20"></a><var>38.20</var>    (i) If 50 percent or more of the square footage of a structure is voluntarily razed <br/>
<a id="pl.38.21"></a><var>38.21</var>or removed, the valuation increase attributable to any subsequent improvements to the <br/>
<a id="pl.38.22"></a><var>38.22</var>remaining structure does not qualify for the exclusion under this subdivision. If a structure <br/>
<a id="pl.38.23"></a><var>38.23</var>is unintentionally or accidentally destroyed by a natural disaster, the property is eligible <br/>
<a id="pl.38.24"></a><var>38.24</var>for an exclusion under this subdivision provided that the structure was not completely <br/>
<a id="pl.38.25"></a><var>38.25</var>destroyed. The qualifying value on property destroyed by a natural disaster must be <br/>
<a id="pl.38.26"></a><var>38.26</var>computed based upon the increase from that structure's market value as determined on <br/>
<a id="pl.38.27"></a><var>38.27</var>January 2 of the year in which the disaster occurred. A property receiving benefits under <br/>
<a id="pl.38.28"></a><var>38.28</var>the homestead disaster provisions under section 
<statute_ref>273.123</statute_ref> is not disqualified from receiving <br/>
<a id="pl.38.29"></a><var>38.29</var>an exclusion under this subdivision. If any combination of improvements made to a <br/>
<a id="pl.38.30"></a><var>38.30</var>structure after January 2, 2008, increase the size of the structure by 100 percent or more, <br/>
<a id="pl.38.31"></a><var>38.31</var>the valuation increase attributable to the portion of the improvement that causes the <br/>
<a id="pl.38.32"></a><var>38.32</var>structure's size to exceed 100 percent does not qualify for exclusion under this subdivision.<br/>
<a id="pl.38.33"></a><var>38.33</var><b>EFFECTIVE DATE.</b>This section is effective for improvements made after January <br/>
<a id="pl.38.34"></a><var>38.34</var>2, 2008.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.39.1"></a><var>39.1</var>    Sec. 9. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.39.2"></a><var>39.2</var>to read:<br/>
<a id="pl.39.3"></a><var>39.3</var>    Subd. 16. <b>Applications; denied by county.</b> For applications filed for the 2007 and <br/>
<a id="pl.39.4"></a><var>39.4</var>2008 assessment years, all applications for deferment of taxes and assessment under this <br/>
<a id="pl.39.5"></a><var>39.5</var>section that have been denied by the county shall be forwarded to the commissioner of <br/>
<a id="pl.39.6"></a><var>39.6</var>revenue by the county assessor within 30 days of denial. The assessor shall also provide <br/>
<a id="pl.39.7"></a><var>39.7</var>the commissioner with a list of any property owners that requested an application and <br/>
<a id="pl.39.8"></a><var>39.8</var>were denied, including names and addresses, and the reason for the denial. For the <br/>
<a id="pl.39.9"></a><var>39.9</var>purpose of monitoring compliance with this section, the commissioner shall compile a <br/>
<a id="pl.39.10"></a><var>39.10</var>report identifying all denied applications and requests for applications that were denied, <br/>
<a id="pl.39.11"></a><var>39.11</var>the reason for the denial, and any commissioner action or recommendation. A report must <br/>
<a id="pl.39.12"></a><var>39.12</var>be submitted to the chairs of the house and senate tax committees on or before February <br/>
<a id="pl.39.13"></a><var>39.13</var>1, 2008, and February 1, 2009, in compliance with Minnesota Statutes, sections 3.195 <br/>
<a id="pl.39.14"></a><var>39.14</var>and 3.197.<br/>
<a id="pl.39.15"></a><var>39.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.39.16"></a><var>39.16</var>    Sec. 10. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:<br/>
<a id="pl.39.17"></a><var>39.17</var>    Subdivision 1. <b>General rule.</b> (a) Residential real estate that is occupied and used <br/>
<a id="pl.39.18"></a><var>39.18</var>for the purposes of a homestead by its owner, who must be a Minnesota resident, is <br/>
<a id="pl.39.19"></a><var>39.19</var>a residential homestead.<br/>
<a id="pl.39.20"></a><var>39.20</var>    Agricultural land, as defined in section 
         <statute_ref>273.13, subdivision 23</statute_ref>, that is occupied and <br/>
<a id="pl.39.21"></a><var>39.21</var>used as a homestead by its owner, who must be a Minnesota resident, is an agricultural <br/>
<a id="pl.39.22"></a><var>39.22</var>homestead.<br/>
<a id="pl.39.23"></a><var>39.23</var>    Dates for establishment of a homestead and homestead treatment provided to <br/>
<a id="pl.39.24"></a><var>39.24</var>particular types of property are as provided in this section.<br/>
<a id="pl.39.25"></a><var>39.25</var>    Property held by a trustee under a trust is eligible for homestead classification if the <br/>
<a id="pl.39.26"></a><var>39.26</var>requirements under this chapter are satisfied.<br/>
<a id="pl.39.27"></a><var>39.27</var>    The assessor shall require proof, as provided in subdivision 13, of the facts upon <br/>
<a id="pl.39.28"></a><var>39.28</var>which classification as a homestead may be determined. Notwithstanding any other law, <br/>
<a id="pl.39.29"></a><var>39.29</var>the assessor may at any time require a homestead application to be filed in order to verify <br/>
<a id="pl.39.30"></a><var>39.30</var>that any property classified as a homestead continues to be eligible for homestead status. <br/>
<a id="pl.39.31"></a><var>39.31</var>Notwithstanding any other law to the contrary, the Department of Revenue may, upon <br/>
<a id="pl.39.32"></a><var>39.32</var>request from an assessor, verify whether an individual who is requesting or receiving <br/>
<a id="pl.39.33"></a><var>39.33</var>homestead classification has filed a Minnesota income tax return as a resident for the most <br/>
<a id="pl.39.34"></a><var>39.34</var>recent taxable year for which the information is available.<br/>
<a id="pl.40.1"></a><var>40.1</var>    When there is a name change or a transfer of homestead property, the assessor may <br/>
<a id="pl.40.2"></a><var>40.2</var>reclassify the property in the next assessment unless a homestead application is filed to <br/>
<a id="pl.40.3"></a><var>40.3</var>verify that the property continues to qualify for homestead classification.<br/>
<a id="pl.40.4"></a><var>40.4</var>    (b) For purposes of this section, homestead property shall include property which <br/>
<a id="pl.40.5"></a><var>40.5</var>is used for purposes of the homestead but is separated from the homestead by a road, <br/>
<a id="pl.40.6"></a><var>40.6</var>street, lot, waterway, or other similar intervening property. The term "used for purposes <br/>
<a id="pl.40.7"></a><var>40.7</var>of the homestead" shall include but not be limited to uses for gardens, garages, or other <br/>
<a id="pl.40.8"></a><var>40.8</var>outbuildings commonly associated with a homestead, but shall not include vacant land <br/>
<a id="pl.40.9"></a><var>40.9</var>held primarily for future development. In order to receive homestead treatment for <br/>
<a id="pl.40.10"></a><var>40.10</var>the noncontiguous property, the owner must use the property for the purposes of the <br/>
<a id="pl.40.11"></a><var>40.11</var>homestead, and must apply to the assessor, both by the deadlines given in subdivision <br/>
<a id="pl.40.12"></a><var>40.12</var>9. After initial qualification for the homestead treatment, additional applications for <br/>
<a id="pl.40.13"></a><var>40.13</var>subsequent years are not required.<br/>
<a id="pl.40.14"></a><var>40.14</var>    (c) Residential real estate that is occupied and used for purposes of a homestead by a <br/>
<a id="pl.40.15"></a><var>40.15</var>relative of the owner is a homestead but only to the extent of the homestead treatment <br/>
<a id="pl.40.16"></a><var>40.16</var>that would be provided if the related owner occupied the property. For purposes of this <br/>
<a id="pl.40.17"></a><var>40.17</var>paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, <br/>
<a id="pl.40.18"></a><var>40.18</var>grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship <br/>
<a id="pl.40.19"></a><var>40.19</var>may be by blood or marriage. Property that has been classified as seasonal residential <br/>
<a id="pl.40.20"></a><var>40.20</var>recreational property at any time during which it has been owned by the current owner or <br/>
<a id="pl.40.21"></a><var>40.21</var>spouse of the current owner will not be reclassified as a homestead unless it is occupied as <br/>
<a id="pl.40.22"></a><var>40.22</var>a homestead by the owner; this prohibition also applies to property that, in the absence of <br/>
<a id="pl.40.23"></a><var>40.23</var>this paragraph, would have been classified as seasonal residential recreational property at <br/>
<a id="pl.40.24"></a><var>40.24</var>the time when the residence was constructed. Neither the related occupant nor the owner of <br/>
<a id="pl.40.25"></a><var>40.25</var>the property may claim a property tax refund under chapter 290A for a homestead occupied <br/>
<a id="pl.40.26"></a><var>40.26</var>by a relative. In the case of a residence located on agricultural land, only the house, <br/>
<a id="pl.40.27"></a><var>40.27</var>garage, and immediately surrounding one acre of land shall be classified as a homestead <br/>
<a id="pl.40.28"></a><var>40.28</var>under this paragraph, except as provided in paragraph (d). In the case of nonagricultural <br/>
<a id="pl.40.29"></a><var>40.29</var>property, this paragraph only applies to applications approved before July 1, 2007.<br/>
<a id="pl.40.30"></a><var>40.30</var>    (d) Agricultural property that is occupied and used for purposes of a homestead by <br/>
<a id="pl.40.31"></a><var>40.31</var>a relative of the owner, is a homestead, only to the extent of the homestead treatment <br/>
<a id="pl.40.32"></a><var>40.32</var>that would be provided if the related owner occupied the property, and only if all of the <br/>
<a id="pl.40.33"></a><var>40.33</var>following criteria are met:<br/>
<a id="pl.40.34"></a><var>40.34</var>    (1) the relative who is occupying the agricultural property is a son, daughter, <br/>
<a id="pl.40.35"></a><var>40.35</var>grandson, granddaughter, father, or mother of the owner of the agricultural property or a <br/>
<a id="pl.41.1"></a><var>41.1</var>son, daughter, grandson, or granddaughter of the spouse of the owner of the agricultural <br/>
<a id="pl.41.2"></a><var>41.2</var>property;<br/>
<a id="pl.41.3"></a><var>41.3</var>    (2) the owner of the agricultural property must be a Minnesota resident;<br/>
<a id="pl.41.4"></a><var>41.4</var>    (3) the owner of the agricultural property must not receive homestead treatment on <br/>
<a id="pl.41.5"></a><var>41.5</var>any other agricultural property in Minnesota; and<br/>
<a id="pl.41.6"></a><var>41.6</var>    (4) the owner of the agricultural property is limited to only one agricultural <br/>
<a id="pl.41.7"></a><var>41.7</var>homestead per family under this paragraph.<br/>
<a id="pl.41.8"></a><var>41.8</var>    Neither the related occupant nor the owner of the property may claim a property <br/>
<a id="pl.41.9"></a><var>41.9</var>tax refund under chapter 290A for a homestead occupied by a relative qualifying under <br/>
<a id="pl.41.10"></a><var>41.10</var>this paragraph. For purposes of this paragraph, "agricultural property" means the house, <br/>
<a id="pl.41.11"></a><var>41.11</var>garage, other farm buildings and structures, and agricultural land.<br/>
<a id="pl.41.12"></a><var>41.12</var>    Application must be made to the assessor by the owner of the agricultural property to <br/>
<a id="pl.41.13"></a><var>41.13</var>receive homestead benefits under this paragraph. The assessor may require the necessary <br/>
<a id="pl.41.14"></a><var>41.14</var>proof that the requirements under this paragraph have been met.<br/>
<a id="pl.41.15"></a><var>41.15</var>    (e) In the case of property owned by a property owner who is married, the assessor <br/>
<a id="pl.41.16"></a><var>41.16</var>must not deny homestead treatment in whole or in part if only one of the spouses occupies <br/>
<a id="pl.41.17"></a><var>41.17</var>the property and the other spouse is absent due to: (1) marriage dissolution proceedings, <br/>
<a id="pl.41.18"></a><var>41.18</var>(2) legal separation, (3) employment or self-employment in another location, or (4) other <br/>
<a id="pl.41.19"></a><var>41.19</var>personal circumstances causing the spouses to live separately, not including an intent to <br/>
<a id="pl.41.20"></a><var>41.20</var>obtain two homestead classifications for property tax purposes. To qualify under clause <br/>
<a id="pl.41.21"></a><var>41.21</var>(3), the spouse's place of employment or self-employment must be at least 50 miles distant <br/>
<a id="pl.41.22"></a><var>41.22</var>from the other spouse's place of employment, and the homesteads must be at least 50 miles <br/>
<a id="pl.41.23"></a><var>41.23</var>distant from each other. Homestead treatment, in whole or in part, shall not be denied to <br/>
<a id="pl.41.24"></a><var>41.24</var>the owner's spouse who previously occupied the residence with the owner if the absence <br/>
<a id="pl.41.25"></a><var>41.25</var>of the owner is due to one of the exceptions provided in this paragraph.<br/>
<a id="pl.41.26"></a><var>41.26</var>    (f) The assessor must not deny homestead treatment in whole or in part if:<br/>
<a id="pl.41.27"></a><var>41.27</var>    (1) in the case of a property owner who is not married, the owner is absent due to <br/>
<a id="pl.41.28"></a><var>41.28</var>residence in a nursing home, boarding care facility, or an elderly assisted living facility <br/>
<a id="pl.41.29"></a><var>41.29</var>property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the property is not otherwise <br/>
<a id="pl.41.30"></a><var>41.30</var>occupied; or<br/>
<a id="pl.41.31"></a><var>41.31</var>    (2) in the case of a property owner who is married, the owner or the owner's spouse <br/>
<a id="pl.41.32"></a><var>41.32</var>or both are absent due to residence in a nursing home, boarding care facility, or an elderly <br/>
<a id="pl.41.33"></a><var>41.33</var>assisted living facility property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the <br/>
<a id="pl.41.34"></a><var>41.34</var>property is not occupied or is occupied only by the owner's spouse.<br/>
<a id="pl.41.35"></a><var>41.35</var>    (g) If an individual is purchasing property with the intent of claiming it as a <br/>
<a id="pl.41.36"></a><var>41.36</var>homestead and is required by the terms of the financing agreement to have a relative <br/>
<a id="pl.42.1"></a><var>42.1</var>shown on the deed as a co-owner, the assessor shall allow a full homestead classification. <br/>
<a id="pl.42.2"></a><var>42.2</var>This provision only applies to first-time purchasers, whether married or single, or to a <br/>
<a id="pl.42.3"></a><var>42.3</var>person who had previously been married and is purchasing as a single individual for the <br/>
<a id="pl.42.4"></a><var>42.4</var>first time. The application for homestead benefits must be on a form prescribed by the <br/>
<a id="pl.42.5"></a><var>42.5</var>commissioner and must contain the data necessary for the assessor to determine if full <br/>
<a id="pl.42.6"></a><var>42.6</var>homestead benefits are warranted.<br/>
<a id="pl.42.7"></a><var>42.7</var>    (h) If residential or agricultural real estate is occupied and used for purposes of a <br/>
<a id="pl.42.8"></a><var>42.8</var>homestead by a child of a deceased owner and the property is subject to jurisdiction of <br/>
<a id="pl.42.9"></a><var>42.9</var>probate court, the child shall receive relative homestead classification under paragraph (c) <br/>
<a id="pl.42.10"></a><var>42.10</var>or (d) to the same extent they would be entitled to it if the owner was still living, until <br/>
<a id="pl.42.11"></a><var>42.11</var>the probate is completed. For purposes of this paragraph, "child" includes a relationship <br/>
<a id="pl.42.12"></a><var>42.12</var>by blood or by marriage.<br/>
<a id="pl.42.13"></a><var>42.13</var>    (i) If a single-family home, duplex, or triplex classified as either residential <br/>
<a id="pl.42.14"></a><var>42.14</var>homestead or agricultural homestead is also used to provide licensed child care, the <br/>
<a id="pl.42.15"></a><var>42.15</var>portion of the property used for licensed child care must be classified as a part of the <br/>
<a id="pl.42.16"></a><var>42.16</var>homestead property.<br/>
<a id="pl.42.17"></a><var>42.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.42.18"></a><var>42.18</var>    Sec. 11. Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:<br/>
<a id="pl.42.19"></a><var>42.19</var>    Subd. 14. <b>Agricultural homesteads; special provisions.</b> (a) Real estate of less than <br/>
<a id="pl.42.20"></a><var>42.20</var>ten acres that is the homestead of its owner must be classified as class 2a under section <br/>
<statute_ref><a id="pl.42.21"></a><var>42.21</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), if:<br/>
<a id="pl.42.22"></a><var>42.22</var>    (1) the parcel on which the house is located is contiguous on at least two sides to (i) <br/>
<a id="pl.42.23"></a><var>42.23</var>agricultural land, (ii) land owned or administered by the United States Fish and Wildlife <br/>
<a id="pl.42.24"></a><var>42.24</var>Service, or (iii) land administered by the Department of Natural Resources on which in <br/>
<a id="pl.42.25"></a><var>42.25</var>lieu taxes are paid under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>;<br/>
<a id="pl.42.26"></a><var>42.26</var>    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least <br/>
<a id="pl.42.27"></a><var>42.27</var>20 acres;<br/>
<a id="pl.42.28"></a><var>42.28</var>    (3) the noncontiguous land is located not farther than four townships or cities, or a <br/>
<a id="pl.42.29"></a><var>42.29</var>combination of townships or cities from the homestead; and<br/>
<a id="pl.42.30"></a><var>42.30</var>    (4) the agricultural use value of the noncontiguous land and farm buildings is equal <br/>
<a id="pl.42.31"></a><var>42.31</var>to at least 50 percent of the market value of the house, garage, and one acre of land.<br/>
<a id="pl.42.32"></a><var>42.32</var>    Homesteads initially classified as class 2a under the provisions of this paragraph shall <br/>
<a id="pl.42.33"></a><var>42.33</var>remain classified as class 2a, irrespective of subsequent changes in the use of adjoining <br/>
<a id="pl.42.34"></a><var>42.34</var>properties, as long as the homestead remains under the same ownership, the owner owns a <br/>
<a id="pl.42.35"></a><var>42.35</var>noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use <br/>
<a id="pl.43.1"></a><var>43.1</var>value qualifies under clause (4). Homestead classification under this paragraph is limited <br/>
<a id="pl.43.2"></a><var>43.2</var>to property that qualified under this paragraph for the 1998 assessment.<br/>
<a id="pl.43.3"></a><var>43.3</var>    (b)(i) Agricultural property consisting of at least 40 acres, incorporating government <br/>
<a id="pl.43.4"></a><var>43.4</var>lots and correctional 40's,  shall be classified as the owner's homestead, to the same extent <br/>
<a id="pl.43.5"></a><var>43.5</var>as other agricultural homestead property, if all of the following criteria are met:<br/>
<a id="pl.43.6"></a><var>43.6</var>    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's <br/>
<a id="pl.43.7"></a><var>43.7</var>spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively <br/>
<a id="pl.43.8"></a><var>43.8</var>farming the agricultural property, either on the person's own behalf as an individual or <br/>
<a id="pl.43.9"></a><var>43.9</var>on behalf of a partnership operating a family farm, family farm corporation, joint family <br/>
<a id="pl.43.10"></a><var>43.10</var>farm venture, or limited liability company of which the person is a partner, shareholder, or <br/>
<a id="pl.43.11"></a><var>43.11</var>member;<br/>
<a id="pl.43.12"></a><var>43.12</var>    (2) both the owner of the agricultural property and the person who is actively <br/>
<a id="pl.43.13"></a><var>43.13</var>farming the agricultural property under clause (1), are Minnesota residents;<br/>
<a id="pl.43.14"></a><var>43.14</var>    (3) neither the owner nor the spouse of the owner claims another agricultural <br/>
<a id="pl.43.15"></a><var>43.15</var>homestead in Minnesota; and<br/>
<a id="pl.43.16"></a><var>43.16</var>    (4) neither the owner nor and the person actively farming the property lives farther <br/>
<a id="pl.43.17"></a><var>43.17</var>than four townships or cities, or a combination of four townships or cities, from the <br/>
<a id="pl.43.18"></a><var>43.18</var>agricultural property must live either in the county where the agricultural property is <br/>
<a id="pl.43.19"></a><var>43.19</var>located or in a county contiguous to the county where the agricultural property is located, <br/>
<a id="pl.43.20"></a><var>43.20</var>except that if the owner or the owner's spouse is required to live in employer-provided <br/>
<a id="pl.43.21"></a><var>43.21</var>housing, the owner or owner's spouse, whichever is actively farming the agricultural <br/>
<a id="pl.43.22"></a><var>43.22</var>property, may live more than four townships or cities, or combination of four townships <br/>
<a id="pl.43.23"></a><var>43.23</var>or cities further from the agricultural property than in the county or county contiguous <br/>
<a id="pl.43.24"></a><var>43.24</var>to the property.<br/>
<a id="pl.43.25"></a><var>43.25</var>    The relationship under this paragraph may be either by blood or marriage.<br/>
<a id="pl.43.26"></a><var>43.26</var>    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead <br/>
<a id="pl.43.27"></a><var>43.27</var>classification under this paragraph if the qualifications in clause (i) are met, except that <br/>
<a id="pl.43.28"></a><var>43.28</var>"owner" means the grantor of the trust.<br/>
<a id="pl.43.29"></a><var>43.29</var>    (iii) Property containing the residence of an owner who owns qualified property <br/>
<a id="pl.43.30"></a><var>43.30</var>under clause (i) shall be classified as part of the owner's agricultural homestead, if that <br/>
<a id="pl.43.31"></a><var>43.31</var>property is also used for noncommercial storage or drying of agricultural crops.<br/>
<a id="pl.43.32"></a><var>43.32</var>    (c) Noncontiguous land shall be included as part of a homestead under section <br/>
<statute_ref><a id="pl.43.33"></a><var>43.33</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), only if the homestead is classified as class 2a <br/>
<a id="pl.43.34"></a><var>43.34</var>and the detached land is located in the same township or city, or not farther than four <br/>
<a id="pl.43.35"></a><var>43.35</var>townships or cities or combination thereof from county or in a county contiguous to the <br/>
<a id="pl.43.36"></a><var>43.36</var>homestead. Any taxpayer of these noncontiguous lands must notify the county assessor <br/>
<a id="pl.44.1"></a><var>44.1</var>that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is <br/>
<a id="pl.44.2"></a><var>44.2</var>located in another county, the taxpayer must also notify the assessor of the other county.<br/>
<a id="pl.44.3"></a><var>44.3</var>    (d) Agricultural land used for purposes of a homestead and actively farmed by a <br/>
<a id="pl.44.4"></a><var>44.4</var>person holding a vested remainder interest in it must be classified as a homestead under <br/>
<a id="pl.44.5"></a><var>44.5</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a). If agricultural land is classified class 2a, <br/>
<a id="pl.44.6"></a><var>44.6</var>any other dwellings on the land used for purposes of a homestead by persons holding <br/>
<a id="pl.44.7"></a><var>44.7</var>vested remainder interests who are actively engaged in farming the property, and up to <br/>
<a id="pl.44.8"></a><var>44.8</var>one acre of the land surrounding each homestead and reasonably necessary for the use of <br/>
<a id="pl.44.9"></a><var>44.9</var>the dwelling as a home, must also be assessed class 2a.<br/>
<a id="pl.44.10"></a><var>44.10</var>    (e) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.44.11"></a><var>44.11</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1997 assessment shall remain <br/>
<a id="pl.44.12"></a><var>44.12</var>classified as agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.44.13"></a><var>44.13</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.44.14"></a><var>44.14</var>homestead as a result of the April 1997 floods;<br/>
<a id="pl.44.15"></a><var>44.15</var>    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, <br/>
<a id="pl.44.16"></a><var>44.16</var>or Wilkin;<br/>
<a id="pl.44.17"></a><var>44.17</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.44.18"></a><var>44.18</var>current assessment year as existed for the 1997 assessment year and continue to be used <br/>
<a id="pl.44.19"></a><var>44.19</var>for agricultural purposes;<br/>
<a id="pl.44.20"></a><var>44.20</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 <br/>
<a id="pl.44.21"></a><var>44.21</var>miles of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.44.22"></a><var>44.22</var>    (5) the owner notifies the county assessor that the relocation was due to the 1997 <br/>
<a id="pl.44.23"></a><var>44.23</var>floods, and the owner furnishes the assessor any information deemed necessary by the <br/>
<a id="pl.44.24"></a><var>44.24</var>assessor in verifying the change in dwelling. Further notifications to the assessor are not <br/>
<a id="pl.44.25"></a><var>44.25</var>required if the property continues to meet all the requirements in this paragraph and any <br/>
<a id="pl.44.26"></a><var>44.26</var>dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.44.27"></a><var>44.27</var>    (f) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.44.28"></a><var>44.28</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1998 assessment shall remain <br/>
<a id="pl.44.29"></a><var>44.29</var>classified agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.44.30"></a><var>44.30</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.44.31"></a><var>44.31</var>homestead as a result of damage caused by a March 29, 1998, tornado;<br/>
<a id="pl.44.32"></a><var>44.32</var>    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, <br/>
<a id="pl.44.33"></a><var>44.33</var>LeSueur, Nicollet, Nobles, or Rice;<br/>
<a id="pl.44.34"></a><var>44.34</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.44.35"></a><var>44.35</var>current assessment year as existed for the 1998 assessment year;<br/>
<a id="pl.45.1"></a><var>45.1</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.45.2"></a><var>45.2</var>of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.45.3"></a><var>45.3</var>    (5) the owner notifies the county assessor that the relocation was due to a March 29, <br/>
<a id="pl.45.4"></a><var>45.4</var>1998, tornado, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.45.5"></a><var>45.5</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the <br/>
<a id="pl.45.6"></a><var>45.6</var>owner must notify the assessor by December 1, 1998. Further notifications to the assessor <br/>
<a id="pl.45.7"></a><var>45.7</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.45.8"></a><var>45.8</var>and any dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.45.9"></a><var>45.9</var>    (g) Agricultural property consisting of at least 40 acres, incorporating government <br/>
<a id="pl.45.10"></a><var>45.10</var>lots and correctional 40's,  of a family farm corporation, joint family farm venture, family <br/>
<a id="pl.45.11"></a><var>45.11</var>farm limited liability company, or partnership operating a family farm as described under <br/>
<a id="pl.45.12"></a><var>45.12</var>subdivision 8 shall be classified homestead, to the same extent as other agricultural <br/>
<a id="pl.45.13"></a><var>45.13</var>homestead property, if all of the following criteria are met:<br/>
<a id="pl.45.14"></a><var>45.14</var>    (1) a shareholder, member, or partner of that entity is actively farming the <br/>
<a id="pl.45.15"></a><var>45.15</var>agricultural property;<br/>
<a id="pl.45.16"></a><var>45.16</var>    (2) that shareholder, member, or partner who is actively farming the agricultural <br/>
<a id="pl.45.17"></a><var>45.17</var>property is a Minnesota resident;<br/>
<a id="pl.45.18"></a><var>45.18</var>    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder, <br/>
<a id="pl.45.19"></a><var>45.19</var>member, or partner claims another agricultural homestead in Minnesota; and<br/>
<a id="pl.45.20"></a><var>45.20</var>    (4) that shareholder, member, or partner does not live farther than four townships <br/>
<a id="pl.45.21"></a><var>45.21</var>or cities, or a combination of four townships or cities, from the agricultural property <br/>
<a id="pl.45.22"></a><var>45.22</var>lives in the county where the agricultural property is located or in a county contiguous to <br/>
<a id="pl.45.23"></a><var>45.23</var>the county where the property is located.<br/>
<a id="pl.45.24"></a><var>45.24</var>    Homestead treatment applies under this paragraph for property leased to a family <br/>
<a id="pl.45.25"></a><var>45.25</var>farm corporation, joint farm venture, limited liability company, or partnership operating a <br/>
<a id="pl.45.26"></a><var>45.26</var>family farm if legal title to the property is in the name of an individual who is a member, <br/>
<a id="pl.45.27"></a><var>45.27</var>shareholder, or partner in the entity.<br/>
<a id="pl.45.28"></a><var>45.28</var>    (h) To be eligible for the special agricultural homestead under this subdivision, an <br/>
<a id="pl.45.29"></a><var>45.29</var>initial full application must be submitted to the county assessor where the property is <br/>
<a id="pl.45.30"></a><var>45.30</var>located. Owners and the persons who are actively farming the property shall be required <br/>
<a id="pl.45.31"></a><var>45.31</var>to complete only a one-page abbreviated version of the application in each subsequent <br/>
<a id="pl.45.32"></a><var>45.32</var>year provided that none of the following items have changed since the initial application:<br/>
<a id="pl.45.33"></a><var>45.33</var>    (1) the day-to-day operation, administration, and financial risks remain the same;<br/>
<a id="pl.45.34"></a><var>45.34</var>    (2) the owners and the persons actively farming the property continue to live within <br/>
<a id="pl.45.35"></a><var>45.35</var>the four townships or city criteria  the county or a contiguous county and are Minnesota <br/>
<a id="pl.45.36"></a><var>45.36</var>residents;<br/>
<a id="pl.46.1"></a><var>46.1</var>    (3) the same operator of the agricultural property is listed with the Farm Service <br/>
<a id="pl.46.2"></a><var>46.2</var>Agency;<br/>
<a id="pl.46.3"></a><var>46.3</var>    (4) a Schedule F or equivalent income tax form was filed for the most recent year;<br/>
<a id="pl.46.4"></a><var>46.4</var>    (5) the property's acreage is unchanged; and<br/>
<a id="pl.46.5"></a><var>46.5</var>    (6) none of the property's acres have been enrolled in a federal or state farm program <br/>
<a id="pl.46.6"></a><var>46.6</var>since the initial application.<br/>
<a id="pl.46.7"></a><var>46.7</var>    The owners and any persons who are actively farming the property must include <br/>
<a id="pl.46.8"></a><var>46.8</var>the appropriate Social Security numbers, and sign and date the application. If any of the <br/>
<a id="pl.46.9"></a><var>46.9</var>specified information has changed since the full application was filed, the owner must <br/>
<a id="pl.46.10"></a><var>46.10</var>notify the assessor, and must complete a new application to determine if the property <br/>
<a id="pl.46.11"></a><var>46.11</var>continues to qualify for the special agricultural homestead. The commissioner of revenue <br/>
<a id="pl.46.12"></a><var>46.12</var>shall prepare a standard reapplication form for use by the assessors.<br/>
<a id="pl.46.13"></a><var>46.13</var><b>EFFECTIVE DATE.</b>The portion of this section relating to the 40 acres requirement <br/>
<a id="pl.46.14"></a><var>46.14</var>is effective for assessment year 2007, taxes payable in 2008 and thereafter. The remaining <br/>
<a id="pl.46.15"></a><var>46.15</var>portion relating to contiguous counties is effective for assessment year 2008 and thereafter, <br/>
<a id="pl.46.16"></a><var>46.16</var>taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.46.17"></a><var>46.17</var>    Sec. 12. Minnesota Statutes 2006, section 273.128, subdivision 1, is amended to read:<br/>
<a id="pl.46.18"></a><var>46.18</var>    Subdivision 1. <b>Requirement</b><b> Requirements</b><b>.</b> Low-income rental property In order <br/>
<a id="pl.46.19"></a><var>46.19</var>to be classified as class 4d low-income rental housing under section 
         <statute_ref>273.13, subdivision <br/>
<a id="pl.46.20"></a><var>46.20</var>25
         </statute_ref>, is entitled to valuation under this section if the property must meet the requirements of <br/>
<a id="pl.46.21"></a><var>46.21</var>subdivision 4, if applicable, and at least 75 20 percent of the units in the rental housing <br/>
<a id="pl.46.22"></a><var>46.22</var>property must meet any of the following qualifications:<br/>
<a id="pl.46.23"></a><var>46.23</var>    (1) the units are subject to a housing assistance payments contract under Section 8 <br/>
<a id="pl.46.24"></a><var>46.24</var>of the United States Housing Act of 1937, as amended;<br/>
<a id="pl.46.25"></a><var>46.25</var>    (2) the units are rent-restricted and income-restricted units of a qualified low-income <br/>
<a id="pl.46.26"></a><var>46.26</var>housing project receiving tax credits under section 42(g) of the Internal Revenue Code of <br/>
<a id="pl.46.27"></a><var>46.27</var>1986, as amended;<br/>
<a id="pl.46.28"></a><var>46.28</var>    (3) the units are financed by the Rural Housing Service of the United States <br/>
<a id="pl.46.29"></a><var>46.29</var>Department of Agriculture and receive payments under the rental assistance program <br/>
<a id="pl.46.30"></a><var>46.30</var>pursuant to section 521(a) of the Housing Act of 1949, as amended; or<br/>
<a id="pl.46.31"></a><var>46.31</var>    (4) the units are subject to rent and income restrictions under the terms of financial <br/>
<a id="pl.46.32"></a><var>46.32</var>assistance provided to the rental housing property by the federal government or the <br/>
<a id="pl.46.33"></a><var>46.33</var>state of Minnesota, or a local unit of government,  as evidenced by a document recorded <br/>
<a id="pl.46.34"></a><var>46.34</var>against the property.<br/>
<a id="pl.47.1"></a><var>47.1</var>    The restrictions must require assisted units to be occupied by residents whose <br/>
<a id="pl.47.2"></a><var>47.2</var>household income at the time of initial occupancy does not exceed 60 percent of the <br/>
<a id="pl.47.3"></a><var>47.3</var>greater of area or state median income, adjusted for family size, as determined by the <br/>
<a id="pl.47.4"></a><var>47.4</var>United States Department of Housing and Urban Development. The restriction must also <br/>
<a id="pl.47.5"></a><var>47.5</var>require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of <br/>
<a id="pl.47.6"></a><var>47.6</var>area or state median income, adjusted for family size, as determined by the United States <br/>
<a id="pl.47.7"></a><var>47.7</var>Department of Housing and Urban Development.<br/>
<a id="pl.47.8"></a><var>47.8</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes levied in 2007, <br/>
<a id="pl.47.9"></a><var>47.9</var>payable in 2008, and thereafter.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.47.10"></a><var>47.10</var>    Sec. 13. Minnesota Statutes 2006, section 273.128, is amended by adding a subdivision <br/>
<a id="pl.47.11"></a><var>47.11</var>to read:<br/>
<a id="pl.47.12"></a><var>47.12</var>    Subd. 4. <b>Participation in crime-free multihousing program.</b> (a) In addition <br/>
<a id="pl.47.13"></a><var>47.13</var>to the requirements in subdivision 1, if the property qualifies under paragraph (b), the <br/>
<a id="pl.47.14"></a><var>47.14</var>owners or managers must complete the three phases of the city's or county's crime-free <br/>
<a id="pl.47.15"></a><var>47.15</var>multihousing program and the qualifying property must be annually certified by the police <br/>
<a id="pl.47.16"></a><var>47.16</var>or sheriff as participating in the program. If a qualifying property is not certified within <br/>
<a id="pl.47.17"></a><var>47.17</var>one year after it is first determined to be a qualifying property under paragraph (b), or does <br/>
<a id="pl.47.18"></a><var>47.18</var>not annually maintain its certification in the program, the city or county shall notify the <br/>
<a id="pl.47.19"></a><var>47.19</var>property owner that the qualifying property must comply with the requirements of this <br/>
<a id="pl.47.20"></a><var>47.20</var>subdivision to maintain its classification as class 4d property. If a qualifying property is <br/>
<a id="pl.47.21"></a><var>47.21</var>not in compliance within one year after receiving the notice from the city or county, the <br/>
<a id="pl.47.22"></a><var>47.22</var>city or county shall issue a second notice and require the owners to enter into a plan to <br/>
<a id="pl.47.23"></a><var>47.23</var>achieve compliance within one year. If, upon expiration of the one-year time period, <br/>
<a id="pl.47.24"></a><var>47.24</var>the qualifying property has not been certified by the police or sheriff as completing the <br/>
<a id="pl.47.25"></a><var>47.25</var>program, the city or county shall notify the commissioner of the Housing Finance Agency <br/>
<a id="pl.47.26"></a><var>47.26</var>and the commissioner shall remove the property from the list of class 4d properties <br/>
<a id="pl.47.27"></a><var>47.27</var>certified to the county or city assessor under subdivision 3. Once removed from the list, <br/>
<a id="pl.47.28"></a><var>47.28</var>the property is not eligible for class 4d classification until it complies with this subdivision <br/>
<a id="pl.47.29"></a><var>47.29</var>and its compliance has been certified to the Housing Finance Agency by the city or county. <br/>
<a id="pl.47.30"></a><var>47.30</var>Certification to the Housing Finance Agency must be made by May 15 to be effective for <br/>
<a id="pl.47.31"></a><var>47.31</var>taxes payable in the following year.<br/>
<a id="pl.47.32"></a><var>47.32</var>    (b) A property is a qualifying property for purposes of this subdivision's requirements <br/>
<a id="pl.47.33"></a><var>47.33</var>if it satisfies each of the following requirements:<br/>
<a id="pl.47.34"></a><var>47.34</var>    (1) the property is located in a city or county that offers a crime-free multihousing <br/>
<a id="pl.47.35"></a><var>47.35</var>program through its city police or county sheriff;<br/>
<a id="pl.48.1"></a><var>48.1</var>    (2) over the preceding two-year period, the number of police or sheriff calls to <br/>
<a id="pl.48.2"></a><var>48.2</var>the property exceeded the city's or county's average number of calls for multiunit rental <br/>
<a id="pl.48.3"></a><var>48.3</var>properties for the period by at least 25 percent, adjusted for the number of rental units;<br/>
<a id="pl.48.4"></a><var>48.4</var>    (3) the police or sheriff department has requested, in writing, the owners or managers <br/>
<a id="pl.48.5"></a><var>48.5</var>of the property to enroll in the crime-free multihousing program and the owners or <br/>
<a id="pl.48.6"></a><var>48.6</var>managers refused or failed to enroll within 60 days after the request, or failed to complete <br/>
<a id="pl.48.7"></a><var>48.7</var>phases one and three within 90 days and all three phases of the program within a one-year <br/>
<a id="pl.48.8"></a><var>48.8</var>time period; and<br/>
<a id="pl.48.9"></a><var>48.9</var>    (4) the governing body of the city or county, by resolution, determines the property <br/>
<a id="pl.48.10"></a><var>48.10</var>is a qualifying property under clauses (1) to (3).<br/>
<a id="pl.48.11"></a><var>48.11</var>    (c) Low-income qualifying rental housing property classified as class 4d property for <br/>
<a id="pl.48.12"></a><var>48.12</var>taxes payable in 2007 must meet the requirements of this section by May 15, 2010.<br/>
<a id="pl.48.13"></a><var>48.13</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes levied in 2007, <br/>
<a id="pl.48.14"></a><var>48.14</var>payable in 2008, and thereafter.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.48.15"></a><var>48.15</var>    Sec. 14. Minnesota Statutes 2006, section 273.13, subdivision 22, is amended to read:<br/>
<a id="pl.48.16"></a><var>48.16</var>    Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) <br/>
<a id="pl.48.17"></a><var>48.17</var>and (c), real estate which is residential and used for homestead purposes is class 1a. In the <br/>
<a id="pl.48.18"></a><var>48.18</var>case of a duplex or triplex in which one of the units is used for homestead purposes, the <br/>
<a id="pl.48.19"></a><var>48.19</var>entire property is deemed to be used for homestead purposes. The market value of class 1a <br/>
<a id="pl.48.20"></a><var>48.20</var>property must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.48.21"></a><var>48.21</var>    The first $500,000 of market value of class 1a property has a net class rate of <br/>
<a id="pl.48.22"></a><var>48.22</var>one percent of its market value; and the market value of class 1a property that exceeds <br/>
<a id="pl.48.23"></a><var>48.23</var>$500,000 has a class rate of 1.25 percent of its market value.<br/>
<a id="pl.48.24"></a><var>48.24</var>    (b) Class 1b property includes homestead real estate or homestead manufactured <br/>
<a id="pl.48.25"></a><var>48.25</var>homes used for the purposes of a homestead by<br/>
<a id="pl.48.26"></a><var>48.26</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and <br/>
<a id="pl.48.27"></a><var>48.27</var>the blind person's spouse; or<br/>
<a id="pl.48.28"></a><var>48.28</var>    (2) any person, hereinafter referred to as "veteran," who:<br/>
<a id="pl.48.29"></a><var>48.29</var>    (i) served in the active military or naval service of the United States; and<br/>
<a id="pl.48.30"></a><var>48.30</var>    (ii) is entitled to compensation under the laws and regulations of the United States <br/>
<a id="pl.48.31"></a><var>48.31</var>for permanent and total service-connected disability due to the loss, or loss of use, by <br/>
<a id="pl.48.32"></a><var>48.32</var>reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both <br/>
<a id="pl.48.33"></a><var>48.33</var>lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or <br/>
<a id="pl.48.34"></a><var>48.34</var>a wheelchair; and<br/>
<a id="pl.49.1"></a><var>49.1</var>    (iii) has acquired a special housing unit with special fixtures or movable facilities <br/>
<a id="pl.49.2"></a><var>49.2</var>made necessary by the nature of the veteran's disability, or the surviving spouse of the <br/>
<a id="pl.49.3"></a><var>49.3</var>deceased veteran for as long as the surviving spouse retains the special housing unit <br/>
<a id="pl.49.4"></a><var>49.4</var>as a homestead; or<br/>
<a id="pl.49.5"></a><var>49.5</var>    (3) any person who is permanently and totally disabled.<br/>
<a id="pl.49.6"></a><var>49.6</var>    Property is classified and assessed under clause (3) only if the government agency or <br/>
<a id="pl.49.7"></a><var>49.7</var>income-providing source certifies, upon the request of the homestead occupant, that the <br/>
<a id="pl.49.8"></a><var>49.8</var>homestead occupant satisfies the disability requirements of this paragraph.<br/>
<a id="pl.49.9"></a><var>49.9</var>    Property is classified and assessed pursuant to clause (1) only if the commissioner of <br/>
<a id="pl.49.10"></a><var>49.10</var>revenue certifies to the assessor that the homestead occupant satisfies the requirements of <br/>
<a id="pl.49.11"></a><var>49.11</var>this paragraph.<br/>
<a id="pl.49.12"></a><var>49.12</var>    Permanently and totally disabled for the purpose of this subdivision means a <br/>
<a id="pl.49.13"></a><var>49.13</var>condition which is permanent in nature and totally incapacitates the person from working <br/>
<a id="pl.49.14"></a><var>49.14</var>at an occupation which brings the person an income. The first $32,000 $50,000 market <br/>
<a id="pl.49.15"></a><var>49.15</var>value of class 1b property has a net class rate of .45 percent of its market value. The <br/>
<a id="pl.49.16"></a><var>49.16</var>remaining market value of class 1b property has a class rate using the rates for class 1a or <br/>
<a id="pl.49.17"></a><var>49.17</var>class 2a property, whichever is appropriate, of similar market value.<br/>
<a id="pl.49.18"></a><var>49.18</var>    (c) Class 1c property is commercial use real and personal property that abuts <br/>
<a id="pl.49.19"></a><var>49.19</var>a lakeshore line public water as defined in section 103G.005, subdivision 15, and is <br/>
<a id="pl.49.20"></a><var>49.20</var>devoted to temporary and seasonal residential occupancy for recreational purposes but <br/>
<a id="pl.49.21"></a><var>49.21</var>not devoted to commercial purposes for more than 250 days in the year preceding the <br/>
<a id="pl.49.22"></a><var>49.22</var>year of assessment, and that includes a portion used as a homestead by the owner, which <br/>
<a id="pl.49.23"></a><var>49.23</var>includes a dwelling occupied as a homestead by a shareholder of a corporation that owns <br/>
<a id="pl.49.24"></a><var>49.24</var>the resort, a partner in a partnership that owns the resort, or a member of a limited liability <br/>
<a id="pl.49.25"></a><var>49.25</var>company that owns the resort even if the title to the homestead is held by the corporation, <br/>
<a id="pl.49.26"></a><var>49.26</var>partnership, or limited liability company. For purposes of this clause, property is devoted <br/>
<a id="pl.49.27"></a><var>49.27</var>to a commercial purpose on a specific day if any portion of the property, excluding the <br/>
<a id="pl.49.28"></a><var>49.28</var>portion used exclusively as a homestead, is used for residential occupancy and a fee is <br/>
<a id="pl.49.29"></a><var>49.29</var>charged for residential occupancy. Class 1c property must contain three or more rental <br/>
<a id="pl.49.30"></a><var>49.30</var>units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, <br/>
<a id="pl.49.31"></a><var>49.31</var>or individual camping site equipped with water and electrical hookups for recreational <br/>
<a id="pl.49.32"></a><var>49.32</var>vehicles. Class 1c property must provide recreational activities such as the rental of ice <br/>
<a id="pl.49.33"></a><var>49.33</var>fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; <br/>
<a id="pl.49.34"></a><var>49.34</var>provide marina services, launch services, or guide services; or sell bait and fishing tackle. <br/>
<a id="pl.49.35"></a><var>49.35</var>Any unit in which the right to use the property is transferred to an individual or entity <br/>
<a id="pl.49.36"></a><var>49.36</var>by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even <br/>
<a id="pl.50.1"></a><var>50.1</var>though it may remain available for rent. A camping pad offered for rent by a property <br/>
<a id="pl.50.2"></a><var>50.2</var>that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental <br/>
<a id="pl.50.3"></a><var>50.3</var>agreement, as long as the use of the camping pad does not exceed 250 days. The portion of <br/>
<a id="pl.50.4"></a><var>50.4</var>the property used as a homestead is class 1a property under paragraph (a). The remainder <br/>
<a id="pl.50.5"></a><var>50.5</var>of the property is classified as follows: the first $500,000 $600,000 of market value is tier <br/>
<a id="pl.50.6"></a><var>50.6</var>I, the next $1,700,000 of market value is tier II, and any remaining market value is tier <br/>
<a id="pl.50.7"></a><var>50.7</var>III. The class rates for class 1c are: tier I, 0.55 0.50 percent; tier II, 1.0 percent; and tier <br/>
<a id="pl.50.8"></a><var>50.8</var>III, 1.25 percent. If a class 1c resort property has any market value in tier III, the entire <br/>
<a id="pl.50.9"></a><var>50.9</var>property must meet the requirements of subdivision 25, paragraph (d), clause (1), to <br/>
<a id="pl.50.10"></a><var>50.10</var>qualify for class 1c treatment under this paragraph. Owners of real and personal property <br/>
<a id="pl.50.11"></a><var>50.11</var>devoted to temporary and seasonal residential occupancy for recreation purposes in which <br/>
<a id="pl.50.12"></a><var>50.12</var>all or a portion of the property was devoted to commercial purposes for not more than 250 <br/>
<a id="pl.50.13"></a><var>50.13</var>days in the year preceding the year of assessment desiring classification as class 1c, must <br/>
<a id="pl.50.14"></a><var>50.14</var>submit a declaration to the assessor designating the cabins or units occupied for 250 days <br/>
<a id="pl.50.15"></a><var>50.15</var>or less in the year preceding the year of assessment by January 15 of the assessment year. <br/>
<a id="pl.50.16"></a><var>50.16</var>Those cabins or units and a proportionate share of the land on which they are located must <br/>
<a id="pl.50.17"></a><var>50.17</var>be designated as class 1c as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.50.18"></a><var>50.18</var>a proportionate share of the land on which they are located must be designated as class <br/>
<a id="pl.50.19"></a><var>50.19</var>3a commercial. The owner of property desiring designation as class 1c property must <br/>
<a id="pl.50.20"></a><var>50.20</var>provide guest registers or other records demonstrating that the units for which class 1c <br/>
<a id="pl.50.21"></a><var>50.21</var>designation is sought were not occupied for more than 250 days in the year preceding the <br/>
<a id="pl.50.22"></a><var>50.22</var>assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, <br/>
<a id="pl.50.23"></a><var>50.23</var>(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility <br/>
<a id="pl.50.24"></a><var>50.24</var>operated on a commercial basis not directly related to temporary and seasonal residential <br/>
<a id="pl.50.25"></a><var>50.25</var>occupancy for recreation purposes does not qualify for class 1c.<br/>
<a id="pl.50.26"></a><var>50.26</var>    (d) Class 1d property includes structures that meet all of the following criteria:<br/>
<a id="pl.50.27"></a><var>50.27</var>    (1) the structure is located on property that is classified as agricultural property under <br/>
<a id="pl.50.28"></a><var>50.28</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br/>
<a id="pl.50.29"></a><var>50.29</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time <br/>
<a id="pl.50.30"></a><var>50.30</var>when they work on that farm, and the occupants are not charged rent for the privilege of <br/>
<a id="pl.50.31"></a><var>50.31</var>occupying the property, provided that use of the structure for storage of farm equipment <br/>
<a id="pl.50.32"></a><var>50.32</var>and produce does not disqualify the property from classification under this paragraph;<br/>
<a id="pl.50.33"></a><var>50.33</var>    (3) the structure meets all applicable health and safety requirements for the <br/>
<a id="pl.50.34"></a><var>50.34</var>appropriate season; and<br/>
<a id="pl.50.35"></a><var>50.35</var>    (4) the structure is not salable as residential property because it does not comply <br/>
<a id="pl.50.36"></a><var>50.36</var>with local ordinances relating to location in relation to streets or roads.<br/>
<a id="pl.51.1"></a><var>51.1</var>    The market value of class 1d property has the same class rates as class 1a property <br/>
<a id="pl.51.2"></a><var>51.2</var>under paragraph (a).<br/>
<a id="pl.51.3"></a><var>51.3</var><b>EFFECTIVE DATE.</b>The portion of this section increasing the market value of <br/>
<a id="pl.51.4"></a><var>51.4</var>the first tier of class 1c resorts and striking the language relating to class 1b veterans' <br/>
<a id="pl.51.5"></a><var>51.5</var>homesteads is effective for assessment year 2007 and thereafter, for taxes payable in 2008 <br/>
<a id="pl.51.6"></a><var>51.6</var>and thereafter. The remaining portion of this section relating to class 1c resorts is effective <br/>
<a id="pl.51.7"></a><var>51.7</var>for the assessment year 2008, for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.51.8"></a><var>51.8</var>    Sec. 15. Minnesota Statutes 2006, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.51.9"></a><var>51.9</var>    Subd. 23. <b>Class 2.</b> (a) Class 2a property is agricultural land including any <br/>
<a id="pl.51.10"></a><var>51.10</var>improvements that is homesteaded. The market value of the house and garage and <br/>
<a id="pl.51.11"></a><var>51.11</var>immediately surrounding one acre of land has the same class rates as class 1a property <br/>
<a id="pl.51.12"></a><var>51.12</var>under subdivision 22. The value of the remaining land including improvements up to the <br/>
<a id="pl.51.13"></a><var>51.13</var>first tier valuation limit of agricultural homestead property has a net class rate of 0.55 0.50 <br/>
<a id="pl.51.14"></a><var>51.14</var>percent of market value. The remaining property over the first tier has a class rate of one <br/>
<a id="pl.51.15"></a><var>51.15</var>percent of market value. For purposes of this subdivision, the "first tier valuation limit of <br/>
<a id="pl.51.16"></a><var>51.16</var>agricultural homestead property" and "first tier" means the limit certified under section <br/>
<statute_ref><a id="pl.51.17"></a><var>51.17</var>273.11
         </statute_ref>, subdivision 23.<br/>
<a id="pl.51.18"></a><var>51.18</var>    (b) Class 2b property is (1) unplatted real estate, rural in character and used <br/>
<a id="pl.51.19"></a><var>51.19</var>exclusively for growing trees for timber, lumber, and wood and wood products; (2) <br/>
<a id="pl.51.20"></a><var>51.20</var>real estate, that is not improved with a structure and is used exclusively for growing <br/>
<a id="pl.51.21"></a><var>51.21</var>trees for timber, lumber, and wood and wood products, if the owner has participated or <br/>
<a id="pl.51.22"></a><var>51.22</var>is participating in a cost-sharing program for afforestation, reforestation, or timber stand <br/>
<a id="pl.51.23"></a><var>51.23</var>improvement on that particular property, administered or coordinated by the commissioner <br/>
<a id="pl.51.24"></a><var>51.24</var>of natural resources; (3), and that consists of at least ten acres, including land used for <br/>
<a id="pl.51.25"></a><var>51.25</var>growing trees for timber, lumber, and wood products, but not including land used for <br/>
<a id="pl.51.26"></a><var>51.26</var>agricultural purposes, provided that the presence of a minor, ancillary nonresidential <br/>
<a id="pl.51.27"></a><var>51.27</var>structure does not disqualify property from the classification under this clause; (2) real <br/>
<a id="pl.51.28"></a><var>51.28</var>estate that is nonhomestead agricultural land; or (4) (3) a landing area or public access <br/>
<a id="pl.51.29"></a><var>51.29</var>area of a privately owned public use airport. Class 2b property has a net class rate of one <br/>
<a id="pl.51.30"></a><var>51.30</var>percent of market value.<br/>
<a id="pl.51.31"></a><var>51.31</var>    (c) Agricultural land as used in this section means contiguous acreage of ten acres or <br/>
<a id="pl.51.32"></a><var>51.32</var>more, used during the preceding year for agricultural purposes. "Agricultural purposes" as <br/>
<a id="pl.51.33"></a><var>51.33</var>used in this section means the raising or cultivation of agricultural products. "Agricultural <br/>
<a id="pl.51.34"></a><var>51.34</var>purposes" also includes enrollment in the Reinvest in Minnesota program under sections <br/>
<statute_ref><a id="pl.51.35"></a><var>51.35</var>103F.501
         </statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal Conservation Reserve Program as contained in Public <br/>
<a id="pl.52.1"></a><var>52.1</var>Law 99-198 if the property was classified as agricultural (i) under this subdivision for <br/>
<a id="pl.52.2"></a><var>52.2</var>the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage <br/>
<a id="pl.52.3"></a><var>52.3</var>on the same parcel, or contiguous acreage on an immediately adjacent parcel under the <br/>
<a id="pl.52.4"></a><var>52.4</var>same ownership, may also qualify as agricultural land, but only if it is pasture, timber, <br/>
<a id="pl.52.5"></a><var>52.5</var>waste, unusable wild land, or land included in state or federal farm programs. Agricultural <br/>
<a id="pl.52.6"></a><var>52.6</var>classification for property shall be determined excluding the house, garage, and <br/>
<a id="pl.52.7"></a><var>52.7</var>immediately surrounding one acre of land, and shall not be based upon the market value of <br/>
<a id="pl.52.8"></a><var>52.8</var>any residential structures on the parcel or contiguous parcels under the same ownership. <br/>
<a id="pl.52.9"></a><var>52.9</var>    (d) Real estate, excluding the house, garage, and immediately surrounding one acre <br/>
<a id="pl.52.10"></a><var>52.10</var>of land, of less than ten acres which is exclusively and intensively used for raising or <br/>
<a id="pl.52.11"></a><var>52.11</var>cultivating agricultural products, shall be considered as agricultural land.<br/>
<a id="pl.52.12"></a><var>52.12</var>    Land shall be classified as agricultural even if all or a portion of the agricultural use <br/>
<a id="pl.52.13"></a><var>52.13</var>of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.52.14"></a><var>52.14</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.52.15"></a><var>52.15</var>section 
         <statute_ref>273.111</statute_ref>. <br/>
<a id="pl.52.16"></a><var>52.16</var>    The property classification under this section supersedes, for property tax purposes <br/>
<a id="pl.52.17"></a><var>52.17</var>only, any locally administered agricultural policies or land use restrictions that define <br/>
<a id="pl.52.18"></a><var>52.18</var>minimum or maximum farm acreage.<br/>
<a id="pl.52.19"></a><var>52.19</var>    (e) The term "agricultural products" as used in this subdivision includes production <br/>
<a id="pl.52.20"></a><var>52.20</var>for sale of:<br/>
<a id="pl.52.21"></a><var>52.21</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.52.22"></a><var>52.22</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.52.23"></a><var>52.23</var>bees, and apiary products by the owner;<br/>
<a id="pl.52.24"></a><var>52.24</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.52.25"></a><var>52.25</var>for agricultural use;<br/>
<a id="pl.52.26"></a><var>52.26</var>    (3) the commercial boarding of horses if the boarding is done in conjunction with <br/>
<a id="pl.52.27"></a><var>52.27</var>raising or cultivating agricultural products as defined in clause (1);<br/>
<a id="pl.52.28"></a><var>52.28</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.52.29"></a><var>52.29</var>equestrian activities, excluding racing;<br/>
<a id="pl.52.30"></a><var>52.30</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.52.31"></a><var>52.31</var>under section 
         <statute_ref>97A.115</statute_ref>; <br/>
<a id="pl.52.32"></a><var>52.32</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.52.33"></a><var>52.33</var>    (7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood <br/>
<a id="pl.52.34"></a><var>52.34</var>products; and<br/>
<a id="pl.52.35"></a><var>52.35</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.52.36"></a><var>52.36</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.53.1"></a><var>53.1</var>    (f) If a parcel used for agricultural purposes is also used for commercial or industrial <br/>
<a id="pl.53.2"></a><var>53.2</var>purposes, including but not limited to:<br/>
<a id="pl.53.3"></a><var>53.3</var>    (1) wholesale and retail sales;<br/>
<a id="pl.53.4"></a><var>53.4</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.53.5"></a><var>53.5</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.53.6"></a><var>53.6</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.53.7"></a><var>53.7</var>and (3),<br/>
<a id="pl.53.8"></a><var>53.8</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.53.9"></a><var>53.9</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.53.10"></a><var>53.10</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.53.11"></a><var>53.11</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.53.12"></a><var>53.12</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.53.13"></a><var>53.13</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.53.14"></a><var>53.14</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.53.15"></a><var>53.15</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.53.16"></a><var>53.16</var>horticultural or nursery products does not qualify as an agricultural purpose.<br/>
<a id="pl.53.17"></a><var>53.17</var>    The assessor shall determine and list separately on the records the market value of <br/>
<a id="pl.53.18"></a><var>53.18</var>the homestead dwelling and the one acre of land on which that dwelling is located. If any <br/>
<a id="pl.53.19"></a><var>53.19</var>farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.53.20"></a><var>53.20</var>value shall not be included in this separate determination.<br/>
<a id="pl.53.21"></a><var>53.21</var>    (g) To qualify for classification under paragraph (b), clause (4) (3), a privately <br/>
<a id="pl.53.22"></a><var>53.22</var>owned public use airport must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For <br/>
<a id="pl.53.23"></a><var>53.23</var>purposes of paragraph (b), clause (4) (3), "landing area" means that part of a privately <br/>
<a id="pl.53.24"></a><var>53.24</var>owned public use airport properly cleared, regularly maintained, and made available to the <br/>
<a id="pl.53.25"></a><var>53.25</var>public for use by aircraft and includes runways, taxiways, aprons, and sites upon which <br/>
<a id="pl.53.26"></a><var>53.26</var>are situated landing or navigational aids. A landing area also includes land underlying <br/>
<a id="pl.53.27"></a><var>53.27</var>both the primary surface and the approach surfaces that comply with all of the following: <br/>
<a id="pl.53.28"></a><var>53.28</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.53.29"></a><var>53.29</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.53.30"></a><var>53.30</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.53.31"></a><var>53.31</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.53.32"></a><var>53.32</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.53.33"></a><var>53.33</var>The land contained in a landing area under paragraph (b), clause (4) (3), must be described <br/>
<a id="pl.53.34"></a><var>53.34</var>and certified by the commissioner of transportation. The certification is effective until <br/>
<a id="pl.53.35"></a><var>53.35</var>it is modified, or until the airport or landing area no longer meets the requirements of <br/>
<a id="pl.53.36"></a><var>53.36</var>paragraph (b), clause (4) (3). For purposes of paragraph (b), clause (4) (3), "public access <br/>
<a id="pl.54.1"></a><var>54.1</var>area" means property used as an aircraft parking ramp, apron, or storage hangar, or an <br/>
<a id="pl.54.2"></a><var>54.2</var>arrival and departure building in connection with the airport.<br/>
<a id="pl.54.3"></a><var>54.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.54.4"></a><var>54.4</var>thereafter, for taxes payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.54.5"></a><var>54.5</var>    Sec. 16. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:<br/>
<a id="pl.54.6"></a><var>54.6</var>    Subd. 24. <b>Class 3.</b> (a) Commercial and industrial property and utility real and <br/>
<a id="pl.54.7"></a><var>54.7</var>personal property is class 3a.<br/>
<a id="pl.54.8"></a><var>54.8</var>    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility <br/>
<a id="pl.54.9"></a><var>54.9</var>real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent <br/>
<a id="pl.54.10"></a><var>54.10</var>of the remaining market value. In the case of contiguous parcels of property owned by the <br/>
<a id="pl.54.11"></a><var>54.11</var>same person or entity, only the value equal to the first-tier value of the contiguous parcels <br/>
<a id="pl.54.12"></a><var>54.12</var>qualifies for the reduced class rate, except that contiguous parcels owned by the same <br/>
<a id="pl.54.13"></a><var>54.13</var>person or entity shall be eligible for the first-tier value class rate on each separate business <br/>
<a id="pl.54.14"></a><var>54.14</var>operated by the owner of the property, provided the business is housed in a separate <br/>
<a id="pl.54.15"></a><var>54.15</var>structure. For the purposes of this subdivision, the first tier means the first $150,000 of <br/>
<a id="pl.54.16"></a><var>54.16</var>market value. Real property owned in fee by a utility for transmission line right-of-way <br/>
<a id="pl.54.17"></a><var>54.17</var>shall be classified at the class rate for the higher tier.<br/>
<a id="pl.54.18"></a><var>54.18</var>    For purposes of this subdivision, parcels are considered to be contiguous even if <br/>
<a id="pl.54.19"></a><var>54.19</var>they are separated from each other by a road, street, waterway, or other similar intervening <br/>
<a id="pl.54.20"></a><var>54.20</var>type of property. Connections between parcels that consist of power lines or pipelines do <br/>
<a id="pl.54.21"></a><var>54.21</var>not cause the parcels to be contiguous. Property owners who have contiguous parcels of <br/>
<a id="pl.54.22"></a><var>54.22</var>property that constitute separate businesses that may qualify for the first-tier class rate shall <br/>
<a id="pl.54.23"></a><var>54.23</var>notify the assessor by July 1, for treatment beginning in the following taxes payable year.<br/>
<a id="pl.54.24"></a><var>54.24</var>    (2) All Personal property that is: (i) part of an electric generation, transmission, or <br/>
<a id="pl.54.25"></a><var>54.25</var>distribution system; or (ii), including tools, implements, and machinery, has a class rate <br/>
<a id="pl.54.26"></a><var>54.26</var>of 3.0 percent. <br/>
<a id="pl.54.27"></a><var>54.27</var>    (3) Personal property that is either: (i) part of a pipeline system transporting <br/>
<a id="pl.54.28"></a><var>54.28</var>or distributing water, gas, crude oil, or petroleum products; and (iii) not described in <br/>
<a id="pl.54.29"></a><var>54.29</var>clause (3), and all, including tools, implements, and machinery, or (ii) part of an electric <br/>
<a id="pl.54.30"></a><var>54.30</var>transmission or distribution system, including tools, implements, and machinery, has a <br/>
<a id="pl.54.31"></a><var>54.31</var>class rate of 2.25 percent. <br/>
<a id="pl.54.32"></a><var>54.32</var>    (4) Railroad operating property has a class rate as provided under clause (1) for <br/>
<a id="pl.54.33"></a><var>54.33</var>the first tier of market value and the remaining market value. In the case of multiple <br/>
<a id="pl.54.34"></a><var>54.34</var>parcels in one county that are owned by one person or entity, only one first tier amount <br/>
<a id="pl.54.35"></a><var>54.35</var>is eligible for the reduced rate.<br/>
<a id="pl.55.1"></a><var>55.1</var>    (3) The entire market value of personal property that is: (i) tools, implements, and <br/>
<a id="pl.55.2"></a><var>55.2</var>machinery of an electric generation, transmission, or distribution system; (ii) tools, <br/>
<a id="pl.55.3"></a><var>55.3</var>implements, and machinery of a pipeline system transporting or distributing water, gas, <br/>
<a id="pl.55.4"></a><var>55.4</var>crude oil, or petroleum products; or (iii) the (5) Personal property consisting of  mains <br/>
<a id="pl.55.5"></a><var>55.5</var>and pipes used in the distribution of steam or hot or chilled water for heating or cooling <br/>
<a id="pl.55.6"></a><var>55.6</var>buildings, has a class rate as provided under clause (1) for the remaining market value <br/>
<a id="pl.55.7"></a><var>55.7</var>in excess of the first tier.<br/>
<a id="pl.55.8"></a><var>55.8</var>    (b) Employment property defined in section 
         <statute_ref>469.166</statute_ref>, during the period provided <br/>
<a id="pl.55.9"></a><var>55.9</var>in section 
         <statute_ref>469.170</statute_ref>, shall constitute class 3b. The class rates for class 3b property are <br/>
<a id="pl.55.10"></a><var>55.10</var>determined under paragraph (a). <br/>
<a id="pl.55.11"></a><var>55.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2007, payable <br/>
<a id="pl.55.12"></a><var>55.12</var>in 2008, and thereafter.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.55.13"></a><var>55.13</var>    Sec. 17. Minnesota Statutes 2006, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.55.14"></a><var>55.14</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.55.15"></a><var>55.15</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.55.16"></a><var>55.16</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.55.17"></a><var>55.17</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.55.18"></a><var>55.18</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.55.19"></a><var>55.19</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.55.20"></a><var>55.20</var>market value of class 4a property has a class rate of 1.25 percent.<br/>
<a id="pl.55.21"></a><var>55.21</var>    (b) Class 4b includes:<br/>
<a id="pl.55.22"></a><var>55.22</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.55.23"></a><var>55.23</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.55.24"></a><var>55.24</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.55.25"></a><var>55.25</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.55.26"></a><var>55.26</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.55.27"></a><var>55.27</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.55.28"></a><var>55.28</var>33.<br/>
<a id="pl.55.29"></a><var>55.29</var>    The market value of class 4b property has a class rate of 1.25 percent.<br/>
<a id="pl.55.30"></a><var>55.30</var>    (c) Class 4bb includes:<br/>
<a id="pl.55.31"></a><var>55.31</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.55.32"></a><var>55.32</var>residential recreational property; and<br/>
<a id="pl.55.33"></a><var>55.33</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.55.34"></a><var>55.34</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br/>
<a id="pl.55.35"></a><var>55.35</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22.<br/>
<a id="pl.56.1"></a><var>56.1</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.56.2"></a><var>56.2</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.56.3"></a><var>56.3</var>owner does not qualify for class 4bb.<br/>
<a id="pl.56.4"></a><var>56.4</var>    (d) Class 4c property includes:<br/>
<a id="pl.56.5"></a><var>56.5</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.56.6"></a><var>56.6</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.56.7"></a><var>56.7</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.56.8"></a><var>56.8</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.56.9"></a><var>56.9</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.56.10"></a><var>56.10</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.56.11"></a><var>56.11</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.56.12"></a><var>56.12</var>for residential occupancy. Class 4c property must contain three or more rental units. A <br/>
<a id="pl.56.13"></a><var>56.13</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.56.14"></a><var>56.14</var>camping site equipped with water and electrical hookups for recreational vehicles. Class <br/>
<a id="pl.56.15"></a><var>56.15</var>4c property must provide recreational activities such as renting ice fishing houses, boats <br/>
<a id="pl.56.16"></a><var>56.16</var>and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.56.17"></a><var>56.17</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping <br/>
<a id="pl.56.18"></a><var>56.18</var>pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c <br/>
<a id="pl.56.19"></a><var>56.19</var>regardless of the term of the rental agreement, as long as the use of the camping pad <br/>
<a id="pl.56.20"></a><var>56.20</var>does not exceed 250 days. In order for a property to be classified as class 4c, seasonal <br/>
<a id="pl.56.21"></a><var>56.21</var>residential recreational for commercial purposes, at least 40 percent of the annual gross <br/>
<a id="pl.56.22"></a><var>56.22</var>lodging receipts related to the property must be from business conducted during 90 <br/>
<a id="pl.56.23"></a><var>56.23</var>consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests <br/>
<a id="pl.56.24"></a><var>56.24</var>during the year must be for periods of at least two consecutive nights; or (ii) at least 20 <br/>
<a id="pl.56.25"></a><var>56.25</var>percent of the annual gross receipts must be from charges for rental of fish houses, boats <br/>
<a id="pl.56.26"></a><var>56.26</var>and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina <br/>
<a id="pl.56.27"></a><var>56.27</var>services, launch services, and guide services, or the sale of bait and fishing tackle. For <br/>
<a id="pl.56.28"></a><var>56.28</var>purposes of this determination, a paid booking of five or more nights shall be counted as <br/>
<a id="pl.56.29"></a><var>56.29</var>two bookings. Class 4c also includes commercial use real property used exclusively <br/>
<a id="pl.56.30"></a><var>56.30</var>for recreational purposes in conjunction with class 4c property devoted to temporary <br/>
<a id="pl.56.31"></a><var>56.31</var>and seasonal residential occupancy for recreational purposes, up to a total of two acres, <br/>
<a id="pl.56.32"></a><var>56.32</var>provided the property is not devoted to commercial recreational use for more than 250 <br/>
<a id="pl.56.33"></a><var>56.33</var>days in the year preceding the year of assessment and is located within two miles of the <br/>
<a id="pl.56.34"></a><var>56.34</var>class 4c property with which it is used. Owners of real and personal property devoted to <br/>
<a id="pl.56.35"></a><var>56.35</var>temporary and seasonal residential occupancy for recreation purposes and all or a portion <br/>
<a id="pl.56.36"></a><var>56.36</var>of which was devoted to commercial purposes for not more than 250 days in the year <br/>
<a id="pl.57.1"></a><var>57.1</var>preceding the year of assessment desiring classification as class 1c or 4c, must submit a <br/>
<a id="pl.57.2"></a><var>57.2</var>declaration to the assessor designating the cabins or units occupied for 250 days or less in <br/>
<a id="pl.57.3"></a><var>57.3</var>the year preceding the year of assessment by January 15 of the assessment year. Those <br/>
<a id="pl.57.4"></a><var>57.4</var>cabins or units and a proportionate share of the land on which they are located will must be <br/>
<a id="pl.57.5"></a><var>57.5</var>designated class 1c or 4c as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.57.6"></a><var>57.6</var>a proportionate share of the land on which they are located will be designated as class 3a. <br/>
<a id="pl.57.7"></a><var>57.7</var>The owner of property desiring designation as class 1c or 4c property must provide guest <br/>
<a id="pl.57.8"></a><var>57.8</var>registers or other records demonstrating that the units for which class 1c or 4c designation <br/>
<a id="pl.57.9"></a><var>57.9</var>is sought were not occupied for more than 250 days in the year preceding the assessment if <br/>
<a id="pl.57.10"></a><var>57.10</var>so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, <br/>
<a id="pl.57.11"></a><var>57.11</var>(4) conference center or meeting room, and (4) (5) other nonresidential facility operated <br/>
<a id="pl.57.12"></a><var>57.12</var>on a commercial basis not directly related to temporary and seasonal residential occupancy <br/>
<a id="pl.57.13"></a><var>57.13</var>for recreation purposes shall does not qualify for class 1c or 4c;<br/>
<a id="pl.57.14"></a><var>57.14</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.57.15"></a><var>57.15</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.57.16"></a><var>57.16</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.57.17"></a><var>57.17</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.57.18"></a><var>57.18</var>municipal courses; and<br/>
<a id="pl.57.19"></a><var>57.19</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.57.20"></a><var>57.20</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.57.21"></a><var>57.21</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.57.22"></a><var>57.22</var>    (3) real property up to a maximum of one acre three acres of land owned and used <br/>
<a id="pl.57.23"></a><var>57.23</var>by a nonprofit community service oriented organization; provided that and that is not used <br/>
<a id="pl.57.24"></a><var>57.24</var>for residential purposes on either a temporary or permanent basis, qualifies for class 4c <br/>
<a id="pl.57.25"></a><var>57.25</var>provided that it meets either of the following:<br/>
<a id="pl.57.26"></a><var>57.26</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.57.27"></a><var>57.27</var>in the calendar year preceding the year of assessment and the property is not used for <br/>
<a id="pl.57.28"></a><var>57.28</var>residential purposes on either a temporary or permanent basis; or<br/>
<a id="pl.57.29"></a><var>57.29</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.57.30"></a><var>57.30</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.57.31"></a><var>57.31</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.57.32"></a><var>57.32</var>size of the facility. <br/>
<a id="pl.57.33"></a><var>57.33</var>    For purposes of this clause, <br/>
<a id="pl.57.34"></a><var>57.34</var>(A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.57.35"></a><var>57.35</var>gambling purposes under section 349.12, subdivision 25, excluding those purposes <br/>
<a id="pl.57.36"></a><var>57.36</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.58.1"></a><var>58.1</var>(B) "property taxes" excludes the state general tax;<br/>
<a id="pl.58.2"></a><var>58.2</var>(C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.58.3"></a><var>58.3</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.58.4"></a><var>58.4</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.58.5"></a><var>58.5</var>federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue <br/>
<a id="pl.58.6"></a><var>58.6</var>Code of 1986, as amended through December 31, 1990. For purposes of this clause,; and<br/>
<a id="pl.58.7"></a><var>58.7</var>(D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.58.8"></a><var>58.8</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.58.9"></a><var>58.9</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.58.10"></a><var>58.10</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.58.11"></a><var>58.11</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.58.12"></a><var>58.12</var>for-profit enterprise on the premises. <br/>
<a id="pl.58.13"></a><var>58.13</var>Any portion of the property qualifying under item (i) which is used for revenue-producing <br/>
<a id="pl.58.14"></a><var>58.14</var>activities for more than six days in the calendar year preceding the year of assessment <br/>
<a id="pl.58.15"></a><var>58.15</var>shall be assessed as class 3a. The use of the property for social events open exclusively <br/>
<a id="pl.58.16"></a><var>58.16</var>to members and their guests for periods of less than 24 hours, when an admission is <br/>
<a id="pl.58.17"></a><var>58.17</var>not charged nor any revenues are received by the organization shall not be considered a <br/>
<a id="pl.58.18"></a><var>58.18</var>revenue-producing activity;.<br/>
<a id="pl.58.19"></a><var>58.19</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.58.20"></a><var>58.20</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.58.21"></a><var>58.21</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.58.22"></a><var>58.22</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.58.23"></a><var>58.23</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.58.24"></a><var>58.24</var>application form and instructions;<br/>
<a id="pl.58.25"></a><var>58.25</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.58.26"></a><var>58.26</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.58.27"></a><var>58.27</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.58.28"></a><var>58.28</var>miles of the border of a college campus;<br/>
<a id="pl.58.29"></a><var>58.29</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>;<br/>
<a id="pl.58.30"></a><var>58.30</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.58.31"></a><var>58.31</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.58.32"></a><var>58.32</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.58.33"></a><var>58.33</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.58.34"></a><var>58.34</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.58.35"></a><var>58.35</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.58.36"></a><var>58.36</var>Airports Commission, or group thereof; and<br/>
<a id="pl.59.1"></a><var>59.1</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.59.2"></a><var>59.2</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.59.3"></a><var>59.3</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.59.4"></a><var>59.4</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.59.5"></a><var>59.5</var>within 60 days of the sale;<br/>
<a id="pl.59.6"></a><var>59.6</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.59.7"></a><var>59.7</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.59.8"></a><var>59.8</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.59.9"></a><var>59.9</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.59.10"></a><var>59.10</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.59.11"></a><var>59.11</var>performed at the hangar; and<br/>
<a id="pl.59.12"></a><var>59.12</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.59.13"></a><var>59.13</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.59.14"></a><var>59.14</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.59.15"></a><var>59.15</var>of 14 or fewer days;<br/>
<a id="pl.59.16"></a><var>59.16</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.59.17"></a><var>59.17</var>in the basic room rate;<br/>
<a id="pl.59.18"></a><var>59.18</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.59.19"></a><var>59.19</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.59.20"></a><var>59.20</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.59.21"></a><var>59.21</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.59.22"></a><var>59.22</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.59.23"></a><var>59.23</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.59.24"></a><var>59.24</var>be classified as class 1a property under subdivision 22.<br/>
<a id="pl.59.25"></a><var>59.25</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.59.26"></a><var>59.26</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.59.27"></a><var>59.27</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.59.28"></a><var>59.28</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.59.29"></a><var>59.29</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.59.30"></a><var>59.30</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.59.31"></a><var>59.31</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.59.32"></a><var>59.32</var>property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that <br/>
<a id="pl.59.33"></a><var>59.33</var>portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.59.34"></a><var>59.34</var>has a class rate of 1.25 percent.<br/>
<a id="pl.59.35"></a><var>59.35</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.59.36"></a><var>59.36</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.60.1"></a><var>60.1</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.60.2"></a><var>60.2</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.60.3"></a><var>60.3</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.60.4"></a><var>60.4</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.60.5"></a><var>60.5</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.60.6"></a><var>60.6</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.60.7"></a><var>60.7</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.60.8"></a><var>60.8</var>    Class 4d property has a class rate of 0.75 percent.<br/>
<a id="pl.60.9"></a><var>60.9</var><b>EFFECTIVE DATE.</b>The portion of this section relating to class 4c resorts in <br/>
<a id="pl.60.10"></a><var>60.10</var>paragraph (d), clause (1), is effective for assessment year 2008 and thereafter, for taxes <br/>
<a id="pl.60.11"></a><var>60.11</var>payable in 2009 and thereafter. The portion of this section relating to nonprofit community <br/>
<a id="pl.60.12"></a><var>60.12</var>service oriented organizations is effective for assessment year 2007 and thereafter, for <br/>
<a id="pl.60.13"></a><var>60.13</var>taxes payable in 2008 and thereafter, except that the application date in paragraph (d), <br/>
<a id="pl.60.14"></a><var>60.14</var>clause (3), item (ii), for the 2007 assessment is extended to September 1, 2007.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.60.15"></a><var>60.15</var>    Sec. 18. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:<br/>
<a id="pl.60.16"></a><var>60.16</var>    Subd. 33. <b>Classification of unimproved property.</b> (a) All real property that is not <br/>
<a id="pl.60.17"></a><var>60.17</var>improved with a structure must be classified according to its current use.<br/>
<a id="pl.60.18"></a><var>60.18</var>    (b) Except as provided in subdivision 23, paragraph (b), clause (1), real property that <br/>
<a id="pl.60.19"></a><var>60.19</var>is not improved with a structure and for which there is no identifiable current use must be <br/>
<a id="pl.60.20"></a><var>60.20</var>classified according to its highest and best use permitted under the local zoning ordinance. <br/>
<a id="pl.60.21"></a><var>60.21</var>If the ordinance permits more than one use, the land must be classified according to the <br/>
<a id="pl.60.22"></a><var>60.22</var>highest and best use permitted under the ordinance. If no such ordinance exists, the <br/>
<a id="pl.60.23"></a><var>60.23</var>assessor shall consider the most likely potential use of the unimproved land based upon <br/>
<a id="pl.60.24"></a><var>60.24</var>the use made of surrounding land or land in proximity to the unimproved land.<br/>
<a id="pl.60.25"></a><var>60.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.60.26"></a><var>60.26</var>thereafter, for taxes payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.60.27"></a><var>60.27</var>    Sec. 19. Minnesota Statutes 2006, section 273.13, is amended by adding a subdivision <br/>
<a id="pl.60.28"></a><var>60.28</var>to read:<br/>
<a id="pl.60.29"></a><var>60.29</var>    Subd. 34. <b>Homestead of disabled veteran.</b> (a) All or a portion of the market value <br/>
<a id="pl.60.30"></a><var>60.30</var>of property qualifying for homestead classification under subdivision 22 or 23 is excluded <br/>
<a id="pl.60.31"></a><var>60.31</var>in determining the property's taxable market value if it serves as the homestead of a <br/>
<a id="pl.60.32"></a><var>60.32</var>military veteran, as defined in section 197.447, who has a service-connected disability of <br/>
<a id="pl.60.33"></a><var>60.33</var>50 percent or more. To qualify for exclusion under this subdivision, the veteran must have <br/>
<a id="pl.61.1"></a><var>61.1</var>been honorably discharged from the United States armed forces, as indicated by United <br/>
<a id="pl.61.2"></a><var>61.2</var>States Government Form DD214 or other official military discharge papers, and must be <br/>
<a id="pl.61.3"></a><var>61.3</var>certified by the United States Veterans Administration as having a service-connected <br/>
<a id="pl.61.4"></a><var>61.4</var>disability. <br/>
<a id="pl.61.5"></a><var>61.5</var>    (b)(1) For a disability rating of at least 50 percent but less than 70 percent, $100,000 <br/>
<a id="pl.61.6"></a><var>61.6</var>of market value is excluded;<br/>
<a id="pl.61.7"></a><var>61.7</var>    (2) for a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.61.8"></a><var>61.8</var>excluded, except as provided in clause (3); and<br/>
<a id="pl.61.9"></a><var>61.9</var>    (3) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.61.10"></a><var>61.10</var>excluded.<br/>
<a id="pl.61.11"></a><var>61.11</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.61.12"></a><var>61.12</var>clause (3), predeceases the veteran's spouse, and if upon the death of the veteran the <br/>
<a id="pl.61.13"></a><var>61.13</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br/>
<a id="pl.61.14"></a><var>61.14</var>the exclusion shall carry over to the benefit of the veteran's spouse until such time as the <br/>
<a id="pl.61.15"></a><var>61.15</var>spouse sells, transfers, or otherwise disposes of the property.<br/>
<a id="pl.61.16"></a><var>61.16</var>    (d) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.61.17"></a><var>61.17</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.61.18"></a><var>61.18</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.61.19"></a><var>61.19</var>    (e) A property qualifying for a valuation exclusion under this subdivision is not <br/>
<a id="pl.61.20"></a><var>61.20</var>eligible for the credit under section 273.1384, subdivision 1.<br/>
<a id="pl.61.21"></a><var>61.21</var>    (f) To qualify for a valuation exclusion under this subdivision a property owner must <br/>
<a id="pl.61.22"></a><var>61.22</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication <br/>
<a id="pl.61.23"></a><var>61.23</var>is not required once a property has been accepted for a valuation exclusion under paragraph <br/>
<a id="pl.61.24"></a><var>61.24</var>(b), clause (3), and the property continues to qualify until there is a change in ownership.<br/>
<a id="pl.61.25"></a><var>61.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2007 and <br/>
<a id="pl.61.26"></a><var>61.26</var>thereafter, for taxes payable in 2008 and thereafter.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.61.27"></a><var>61.27</var>    Sec. 20. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision <br/>
<a id="pl.61.28"></a><var>61.28</var>to read:<br/>
<a id="pl.61.29"></a><var>61.29</var>    Subd. 3b. <b>Supplemental notice of proposed levy increases.</b> (a) If a city that has <br/>
<a id="pl.61.30"></a><var>61.30</var>a population of more than 2,500 or a county proposes a levy increase greater than the <br/>
<a id="pl.61.31"></a><var>61.31</var>threshold increase calculated under paragraph (b), it shall prepare and deliver by first class <br/>
<a id="pl.61.32"></a><var>61.32</var>mail a supplemental proposed property tax notice to each property taxpayer in the taxing <br/>
<a id="pl.61.33"></a><var>61.33</var>jurisdiction, as described in this subdivision.<br/>
<a id="pl.61.34"></a><var>61.34</var>    (b) The threshold increase in the proposed property tax levy is equal to the levy in <br/>
<a id="pl.61.35"></a><var>61.35</var>the previous year, multiplied by the sum of (1) one percent, (2) the percentage growth, <br/>
<a id="pl.62.1"></a><var>62.1</var>if any, in the population in the taxing jurisdiction for the most recent available year, (3) <br/>
<a id="pl.62.2"></a><var>62.2</var>the percentage increase in the total market value in the taxing jurisdiction due to new <br/>
<a id="pl.62.3"></a><var>62.3</var>construction of commercial and industrial property, and (4) the percentage increase in the <br/>
<a id="pl.62.4"></a><var>62.4</var>implicit price deflator for government consumption expenditures and gross investment for <br/>
<a id="pl.62.5"></a><var>62.5</var>state and local governments as prepared by the United States Department of Commerce <br/>
<a id="pl.62.6"></a><var>62.6</var>for the most recent 12-month period ending March of the levy year.<br/>
<a id="pl.62.7"></a><var>62.7</var>    (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy for <br/>
<a id="pl.62.8"></a><var>62.8</var>the previous year, (2) its threshold levy increase indicating that this increase is calculated <br/>
<a id="pl.62.9"></a><var>62.9</var>to reflect reasonable growth adjusting for population increases, increased demand from <br/>
<a id="pl.62.10"></a><var>62.10</var>new business, and inflation, (3) the proposed property tax increase, and (4) the amount the <br/>
<a id="pl.62.11"></a><var>62.11</var>proposed increase exceeds the threshold increase. The notice must contain a description of <br/>
<a id="pl.62.12"></a><var>62.12</var>why the jurisdiction needs to raise property taxes above the threshold amount and how the <br/>
<a id="pl.62.13"></a><var>62.13</var>taxing jurisdiction plans to spend the additional revenue.<br/>
<a id="pl.62.14"></a><var>62.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year <br/>
<a id="pl.62.15"></a><var>62.15</var>2007 and thereafter.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.62.16"></a><var>62.16</var>    Sec. 21. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision <br/>
<a id="pl.62.17"></a><var>62.17</var>to read:<br/>
<a id="pl.62.18"></a><var>62.18</var>    Subd. 6c. <b>Joint public hearing; nonmetropolitan county, cities, and school </b><br/>
<a id="pl.62.19"></a><var>62.19</var><b>districts.</b> (a) Notwithstanding any other provision of law, the county board may hold a <br/>
<a id="pl.62.20"></a><var>62.20</var>joint hearing with the governing bodies of all taxing authorities located wholly or partially <br/>
<a id="pl.62.21"></a><var>62.21</var>within the county that are required to hold a public hearing under this section, excluding <br/>
<a id="pl.62.22"></a><var>62.22</var>special taxing districts. The primary purpose of the joint hearing is for taxpayer efficiency <br/>
<a id="pl.62.23"></a><var>62.23</var>by allowing taxpayers to come to a single public hearing to discuss the budgets and <br/>
<a id="pl.62.24"></a><var>62.24</var>proposed property tax levies of most taxing authorities that impact the taxes on their <br/>
<a id="pl.62.25"></a><var>62.25</var>property.<br/>
<a id="pl.62.26"></a><var>62.26</var>    (b) This subdivision applies only to counties located outside the metropolitan area <br/>
<a id="pl.62.27"></a><var>62.27</var>as defined under section 
<statute_ref>473.121</statute_ref>, subdivision 2. If a city or school district is located <br/>
<a id="pl.62.28"></a><var>62.28</var>partially within the metropolitan area, that taxing jurisdiction may participate in its <br/>
<a id="pl.62.29"></a><var>62.29</var>nonmetropolitan county's joint hearing, if it so chooses.<br/>
<a id="pl.62.30"></a><var>62.30</var>    (c) Upon the adoption of a resolution by the county board to hold a joint public <br/>
<a id="pl.62.31"></a><var>62.31</var>hearing, the county shall notify each city with a population over 500 and each school <br/>
<a id="pl.62.32"></a><var>62.32</var>district located wholly or partially within the county of its intention to hold the joint <br/>
<a id="pl.62.33"></a><var>62.33</var>hearing and ask each of the taxing authorities if it would like to participate. Participation <br/>
<a id="pl.62.34"></a><var>62.34</var>is voluntary, and participation in the joint hearing is in lieu of the requirement for the <br/>
<a id="pl.62.35"></a><var>62.35</var>governing body to hold a separate public hearing under subdivision 6. If a participating <br/>
<a id="pl.63.1"></a><var>63.1</var>city or school district is located in more than one county, the hearing under this subdivision <br/>
<a id="pl.63.2"></a><var>63.2</var>is in lieu of the requirement to hold a separate public hearing if 75 percent or more <br/>
<a id="pl.63.3"></a><var>63.3</var>of that city or school district's previous year's net tax capacity is in the county where <br/>
<a id="pl.63.4"></a><var>63.4</var>the hearing is held.<br/>
<a id="pl.63.5"></a><var>63.5</var>    (d) The initial joint hearing must be held on the first Thursday in December. The <br/>
<a id="pl.63.6"></a><var>63.6</var>county may hold an additional joint hearing on another date before December 20 if the <br/>
<a id="pl.63.7"></a><var>63.7</var>majority of the participating taxing authorities want an additional hearing.<br/>
<a id="pl.63.8"></a><var>63.8</var>    The county board shall obtain a meeting space to hold the joint hearing, preferably <br/>
<a id="pl.63.9"></a><var>63.9</var>at a public building such as the courthouse, school, or community center. The location <br/>
<a id="pl.63.10"></a><var>63.10</var>shall be as centrally located within the county as possible. The meeting shall generally be <br/>
<a id="pl.63.11"></a><var>63.11</var>structured in the following general manner:<br/>
<a id="pl.63.12"></a><var>63.12</var>    (1) the first 30 to 60 minutes must be devoted to discussion of the county's budget <br/>
<a id="pl.63.13"></a><var>63.13</var>and levy;<br/>
<a id="pl.63.14"></a><var>63.14</var>    (2) the next 30 to 60 minutes must be devoted to discussion of the city's budget and <br/>
<a id="pl.63.15"></a><var>63.15</var>levy, with each city's discussion held in a separate room, preferably in the same building;<br/>
<a id="pl.63.16"></a><var>63.16</var>    (3) the next 30 to 60 minutes must be devoted to discussion of the school district's <br/>
<a id="pl.63.17"></a><var>63.17</var>levy, with each school district's discussion held in a separate room, preferably in the <br/>
<a id="pl.63.18"></a><var>63.18</var>same building; and<br/>
<a id="pl.63.19"></a><var>63.19</var>    (4) during the last 30 minutes the governing bodies must reassemble in a joint <br/>
<a id="pl.63.20"></a><var>63.20</var>meeting to entertain any follow-up questions that have arisen from the separate discussions.<br/>
<a id="pl.63.21"></a><var>63.21</var>    The county shall attempt to keep the total public hearing to within three hours.<br/>
<a id="pl.63.22"></a><var>63.22</var>    (e) In lieu of the public advertisement requirement in subdivision 5a, the county shall <br/>
<a id="pl.63.23"></a><var>63.23</var>have a single advertisement listing the county, each city with a population of over 500, and <br/>
<a id="pl.63.24"></a><var>63.24</var>each school district participating in the joint public hearing listing. Any taxing authority <br/>
<a id="pl.63.25"></a><var>63.25</var>participating under this subdivision is exempt from the separate public advertisement <br/>
<a id="pl.63.26"></a><var>63.26</var>requirement under subdivision 5a. The cost of the joint hearing advertisement shall be <br/>
<a id="pl.63.27"></a><var>63.27</var>apportioned in the same manner provided in subdivision 4. The notice must be published <br/>
<a id="pl.63.28"></a><var>63.28</var>not less than two business days nor more than six business days before the hearing. The <br/>
<a id="pl.63.29"></a><var>63.29</var>newspaper selected must be one of general interest and readership in the community, and <br/>
<a id="pl.63.30"></a><var>63.30</var>not one of limited subject matter. The advertisement must appear in a newspaper that is <br/>
<a id="pl.63.31"></a><var>63.31</var>published at least once per week. The advertisement must be in the following form:<br/>

<a id="pl.63.36"></a><var>63.36</var>property taxes in the county, cities, and school districts for (year) with the property <br/>
<a id="pl.64.1"></a><var>64.1</var>taxes the county, cities, and school districts propose to collect in (year) for those taxing <br/>
<a id="pl.64.2"></a><var>64.2</var>authorities participating in the joint public hearing.<br/>
<table width="100%">
<tr>
<td><a id="pl.64.3"></a><var>64.3</var><br/>
<a id="pl.64.4"></a><var>64.4</var><br/>
</td>
<td align="left" valign="bottom">Taxing Authority<br/>
</td>
<td align="left" valign="bottom">(Year) Property <br/>
Taxes<br/>
</td>
<td align="left" valign="bottom">Proposed (Year) <br/>
Property Taxes<br/>
</td>
<td align="left" valign="bottom">Change (Year) - <br/>
(Year)<br/>
</td>
</tr>
<tr>
<td><a id="pl.64.5"></a><var>64.5</var><br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">...%<br/>
</td>
</tr>
<tr>
<td><a id="pl.64.6"></a><var>64.6</var><br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">...%<br/>
</td>
</tr>
<tr>
<td><a id="pl.64.7"></a><var>64.7</var><br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">$.......<br/>
</td>
<td align="left" valign="bottom">...%<br/>
</td>
</tr>
</table>

<a id="pl.64.10"></a><var>64.10</var>districts to express your opinions on the proposed amount of (year) property taxes. The <br/>
<a id="pl.64.11"></a><var>64.11</var>hearing will be held on:<br/>

<a id="pl.64.15"></a><var>64.15</var>for that hearing will be announced at this hearing. You are also invited to send your <br/>
<a id="pl.64.16"></a><var>64.16</var>written comments to the county auditor. If the comments relate to the city or school <br/>
<a id="pl.64.17"></a><var>64.17</var>district's levy, please identify that on the envelope so the county auditor can direct the <br/>
<a id="pl.64.18"></a><var>64.18</var>correspondence to the right jurisdiction."<br/>
<a id="pl.64.19"></a><var>64.19</var>    The formal adoption of the taxing authority's levy must not be made at the joint <br/>
<a id="pl.64.20"></a><var>64.20</var>public hearing held under this subdivision. The formal adoption must be made at one of <br/>
<a id="pl.64.21"></a><var>64.21</var>the regularly scheduled meetings of the taxing authority's governing body. However, the <br/>
<a id="pl.64.22"></a><var>64.22</var>property tax levy amount that is subsequently adopted cannot exceed the amount shown to <br/>
<a id="pl.64.23"></a><var>64.23</var>taxpayers at the joint public hearing.<br/>
<a id="pl.64.24"></a><var>64.24</var><b>EFFECTIVE DATE.</b>This section is effective for hearings held in 2007 and <br/>
<a id="pl.64.25"></a><var>64.25</var>thereafter.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.64.26"></a><var>64.26</var>    Sec. 22. Minnesota Statutes 2006, section 278.05, subdivision 6, is amended to read:<br/>
<a id="pl.64.27"></a><var>64.27</var>    Subd. 6. <b>Dismissal of petition; exclusion of certain evidence.</b> (a) In cases where <br/>
<a id="pl.64.28"></a><var>64.28</var>the petitioner contests the valuation of income-producing property, information, including <br/>
<a id="pl.64.29"></a><var>64.29</var>income and expense figures in the form of (1) year-end financial statements for the <br/>
<a id="pl.64.30"></a><var>64.30</var>year prior to the assessment date, (2) year-end financial statements for the year of the <br/>
<a id="pl.64.31"></a><var>64.31</var>assessment date, and (3) rent rolls on the assessment date including tenant name, lease start <br/>
<a id="pl.64.32"></a><var>64.32</var>and end dates, option terms, base rent, square footage leased and vacant space, verified net <br/>
<a id="pl.64.33"></a><var>64.33</var>rentable areas in the form of net rentable square footage of the building or buildings, and <br/>
<a id="pl.64.34"></a><var>64.34</var>anticipated income and expenses in the form of proposed budgets for the year subsequent <br/>
<a id="pl.64.35"></a><var>64.35</var>to the year of the assessment date, for income-producing property must be provided to <br/>
<a id="pl.65.1"></a><var>65.1</var>the county assessor no later than 60 days after the applicable filing deadline contained <br/>
<a id="pl.65.2"></a><var>65.2</var>in section 
         <statute_ref>278.01, subdivision 1</statute_ref> or 4. Failure to provide the information required in this <br/>
<a id="pl.65.3"></a><var>65.3</var>paragraph shall result in the dismissal of the petition, unless (1) the failure to provide it was <br/>
<a id="pl.65.4"></a><var>65.4</var>due to the unavailability of the evidence at the time that the information was due, or (2) <br/>
<a id="pl.65.5"></a><var>65.5</var>the petitioner was not aware of or informed of the requirement to provide the information. <br/>
<a id="pl.65.6"></a><var>65.6</var>If the petitioner proves that the requirements under clause (2) are met, the petitioner has <br/>
<a id="pl.65.7"></a><var>65.7</var>an additional 30 days to provide the information from the time the petitioner became <br/>
<a id="pl.65.8"></a><var>65.8</var>aware of or was informed of the requirement to provide the information, otherwise the <br/>
<a id="pl.65.9"></a><var>65.9</var>petition shall be dismissed.<br/>
<a id="pl.65.10"></a><var>65.10</var>    (b) Provided that the information as contained in paragraph (a) is timely submitted to <br/>
<a id="pl.65.11"></a><var>65.11</var>the county assessor, the county assessor shall furnish the petitioner at least five days before <br/>
<a id="pl.65.12"></a><var>65.12</var>the hearing under this chapter with the property's appraisal, if any, which will be presented <br/>
<a id="pl.65.13"></a><var>65.13</var>to the court at the hearing. The petitioner shall furnish to the county assessor at least five <br/>
<a id="pl.65.14"></a><var>65.14</var>days before the hearing under this chapter with the property's appraisal, if any, which <br/>
<a id="pl.65.15"></a><var>65.15</var>will be presented to the court at the hearing. An appraisal of the petitioner's property <br/>
<a id="pl.65.16"></a><var>65.16</var>done by or for the county shall not be admissible as evidence if the county assessor does <br/>
<a id="pl.65.17"></a><var>65.17</var>not comply with the provisions in this paragraph. The petition shall be dismissed if the <br/>
<a id="pl.65.18"></a><var>65.18</var>petitioner does not comply with the provisions in this paragraph.<br/>
<a id="pl.65.19"></a><var>65.19</var><b>EFFECTIVE DATE.</b>This section is effective for petitions filed beginning July <br/>
<a id="pl.65.20"></a><var>65.20</var>1, 2007.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.65.21"></a><var>65.21</var>    Sec. 23. Minnesota Statutes 2006, section 279.01, is amended by adding a subdivision <br/>
<a id="pl.65.22"></a><var>65.22</var>to read:<br/>
<a id="pl.65.23"></a><var>65.23</var>    Subd. 5. <b>Homestead property; monthly payment option.</b> (a) In the case of class <br/>
<a id="pl.65.24"></a><var>65.24</var>1, 1c, or 2a homestead property as defined in section 273.13, a homeowner may apply <br/>
<a id="pl.65.25"></a><var>65.25</var>to make payments in eight equal monthly installments on the 15th day of each month <br/>
<a id="pl.65.26"></a><var>65.26</var>from May through December. A homeowner desiring to utilize this option must apply <br/>
<a id="pl.65.27"></a><var>65.27</var>to the county by April 15 of the year that the taxes are payable, following procedures <br/>
<a id="pl.65.28"></a><var>65.28</var>established by the county. <br/>
<a id="pl.65.29"></a><var>65.29</var>    (b) Each county must establish procedures allowing homeowners the option of <br/>
<a id="pl.65.30"></a><var>65.30</var>paying the current year's property taxes on a monthly basis. The procedures must address <br/>
<a id="pl.65.31"></a><var>65.31</var>how homeowners apply to participate in the program, how taxpayers can make payments, <br/>
<a id="pl.65.32"></a><var>65.32</var>including the possibility of automatic bank withdrawals, how and whether the taxpayer is <br/>
<a id="pl.65.33"></a><var>65.33</var>notified of each payment due date, whether to require annual applications, how to modify <br/>
<a id="pl.65.34"></a><var>65.34</var>the property tax settlement process, and any other procedures the county board deems <br/>
<a id="pl.66.1"></a><var>66.1</var>necessary to implement this subdivision. The proposed procedures must be submitted to <br/>
<a id="pl.66.2"></a><var>66.2</var>the commissioner of revenue by November 1, 2007. The commissioner must review the <br/>
<a id="pl.66.3"></a><var>66.3</var>procedures and approve them or notify the county of changes that must be made to the <br/>
<a id="pl.66.4"></a><var>66.4</var>proposed procedures by January 1, 2008.<br/>
<a id="pl.66.5"></a><var>66.5</var>    (c) The application procedure must be included in the property tax statement mailing.<br/>
<a id="pl.66.6"></a><var>66.6</var>    (d) Penalties on unpaid taxes on property under the monthly payment program <br/>
<a id="pl.66.7"></a><var>66.7</var>must be computed by equating the number of days that any of the monthly payments are <br/>
<a id="pl.66.8"></a><var>66.8</var>overdue to the penalty for the corresponding number of days after May 15 that a payment <br/>
<a id="pl.66.9"></a><var>66.9</var>is overdue under subdivision 1.<br/>
<a id="pl.66.10"></a><var>66.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.66.11"></a><var>66.11</var>thereafter.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.66.12"></a><var>66.12</var>    Sec. 24. Minnesota Statutes 2006, section 279.37, subdivision 1a, is amended to read:<br/>
<a id="pl.66.13"></a><var>66.13</var>    Subd. 1a. <b>Class 3a property.</b> (a) The delinquent taxes upon a parcel of property <br/>
<a id="pl.66.14"></a><var>66.14</var>which was classified class 3a, for the previous year's assessment and had a total market <br/>
<a id="pl.66.15"></a><var>66.15</var>value of $200,000 $500,000 or less for that same assessment shall be eligible to be <br/>
<a id="pl.66.16"></a><var>66.16</var>composed into a confession of judgment. Property qualifying under this subdivision <br/>
<a id="pl.66.17"></a><var>66.17</var>shall be subject to the same provisions as provided in this section except as provided <br/>
<a id="pl.66.18"></a><var>66.18</var>in paragraphs (b) to (d).<br/>
<a id="pl.66.19"></a><var>66.19</var>    (b) Current year taxes and penalty due at the time the confession of judgment <br/>
<a id="pl.66.20"></a><var>66.20</var>is entered must be paid.<br/>
<a id="pl.66.21"></a><var>66.21</var>    (c) The down payment must include all special assessments due in the current tax <br/>
<a id="pl.66.22"></a><var>66.22</var>year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties, <br/>
<a id="pl.66.23"></a><var>66.23</var>and interest accrued against the parcel. The balance remaining is payable in four equal <br/>
<a id="pl.66.24"></a><var>66.24</var>annual installments.<br/>
<a id="pl.66.25"></a><var>66.25</var>    (d) The amounts entered in judgment bear interest at the rate provided in section <br/>
<statute_ref><a id="pl.66.26"></a><var>66.26</var>279.03, subdivision 1a
         </statute_ref>, commencing with the date the judgment is entered. The interest <br/>
<a id="pl.66.27"></a><var>66.27</var>rate is subject to change each year on the unpaid balance in the manner provided in section <br/>
<statute_ref><a id="pl.66.28"></a><var>66.28</var>279.03, subdivision 1a
         </statute_ref>. <br/>
<a id="pl.66.29"></a><var>66.29</var><b>EFFECTIVE DATE.</b>This section is effective for confessions of judgment entered <br/>
<a id="pl.66.30"></a><var>66.30</var>into July 1, 2007, and thereafter.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.66.31"></a><var>66.31</var>    Sec. 25. Minnesota Statutes 2006, section 289A.08, subdivision 13, is amended to read:<br/>
<a id="pl.66.32"></a><var>66.32</var>    Subd. 13. <b>Long and short forms; local use tax instructions</b><b>; property tax refund </b><br/>
<a id="pl.66.33"></a><var>66.33</var><b>information</b><b>.</b> (a) The commissioner shall provide a long form individual income tax <br/>
<a id="pl.67.1"></a><var>67.1</var>return and may provide a short form individual income tax return. The returns shall be in <br/>
<a id="pl.67.2"></a><var>67.2</var>a form that is consistent with the provisions of chapter 290, notwithstanding any other <br/>
<a id="pl.67.3"></a><var>67.3</var>law to the contrary. The nongame wildlife checkoff provided in section 
         <statute_ref>290.431</statute_ref> and the <br/>
<a id="pl.67.4"></a><var>67.4</var>dependent care credit provided in section 
         <statute_ref>290.067</statute_ref> must be included on the short form. <br/>
<a id="pl.67.5"></a><var>67.5</var>    (b) The commissioner must provide information on local use taxes in the individual <br/>
<a id="pl.67.6"></a><var>67.6</var>income tax instruction booklet. The commissioner must provide this information in the <br/>
<a id="pl.67.7"></a><var>67.7</var>same section of the booklet that provides information on the state use tax.<br/>
<a id="pl.67.8"></a><var>67.8</var>    (c) The commissioner must refer to the property tax refunds allowed under chapter <br/>
<a id="pl.67.9"></a><var>67.9</var>290A on the front cover of the individual income tax instruction booklet, as well as <br/>
<a id="pl.67.10"></a><var>67.10</var>information within the booklet on income eligibility for the homestead and renter refunds, <br/>
<a id="pl.67.11"></a><var>67.11</var>and maximum refund amounts allowed in the current year.<br/>
<a id="pl.67.12"></a><var>67.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.67.13"></a><var>67.13</var>    Sec. 26. Minnesota Statutes 2006, section 289A.40, subdivision 4, is amended to read:<br/>
<a id="pl.67.14"></a><var>67.14</var>    Subd. 4. <b>Property tax refund claims.</b> A property tax refund claim under chapter <br/>
<a id="pl.67.15"></a><var>67.15</var>290A is not allowed if the initial claim is filed more than (1) one year after the original <br/>
<a id="pl.67.16"></a><var>67.16</var>due date for filing the claim for refunds under section 290A.04, subdivision 2h; or (2) two <br/>
<a id="pl.67.17"></a><var>67.17</var>years after the original due date for filing the claim for refunds under section 290A.04, <br/>
<a id="pl.67.18"></a><var>67.18</var>subdivisions 2, 2a, and 2k.<br/>
<a id="pl.67.19"></a><var>67.19</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2006 <br/>
<a id="pl.67.20"></a><var>67.20</var>and thereafter and rent paid in 2005 and thereafter.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.67.21"></a><var>67.21</var>    Sec. 27. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:<br/>
<a id="pl.67.22"></a><var>67.22</var>    Subdivision 1. <b>Program qualifications.</b> The qualifications for the senior citizens' <br/>
<a id="pl.67.23"></a><var>67.23</var>property tax deferral program are as follows:<br/>
<a id="pl.67.24"></a><var>67.24</var>    (1) the property must be owned and occupied as a homestead by a person 65 years of <br/>
<a id="pl.67.25"></a><var>67.25</var>age or older. In the case of a married couple, both only one of the spouses must be at least <br/>
<a id="pl.67.26"></a><var>67.26</var>65 years old at the time the first property tax deferral is granted, regardless of whether the <br/>
<a id="pl.67.27"></a><var>67.27</var>property is titled in the name of one spouse or both spouses, or titled in another way that <br/>
<a id="pl.67.28"></a><var>67.28</var>permits the property to have homestead status;<br/>
<a id="pl.67.29"></a><var>67.29</var>    (2) the total household income of the qualifying homeowners homeowner, or in the <br/>
<a id="pl.67.30"></a><var>67.30</var>case of a married couple, the qualifying homeowner and spouse, as defined in section <br/>
<statute_ref><a id="pl.67.31"></a><var>67.31</var>290A.03, subdivision 5
         </statute_ref>, for the calendar year preceding the year of the initial application <br/>
<a id="pl.67.32"></a><var>67.32</var>may not exceed $60,000 $75,000; <br/>
<a id="pl.68.1"></a><var>68.1</var>    (3) the homestead must have been owned and occupied as the homestead of at <br/>
<a id="pl.68.2"></a><var>68.2</var>least one of the qualifying homeowners for at least 15 years prior to the year the initial <br/>
<a id="pl.68.3"></a><var>68.3</var>application is filed;<br/>
<a id="pl.68.4"></a><var>68.4</var>    (4) there are no state or federal tax liens or judgment liens on the homesteaded <br/>
<a id="pl.68.5"></a><var>68.5</var>property;<br/>
<a id="pl.68.6"></a><var>68.6</var>    (5) there are no mortgages or other liens on the property that secure future advances, <br/>
<a id="pl.68.7"></a><var>68.7</var>except for those subject to credit limits that result in compliance with clause (6); and<br/>
<a id="pl.68.8"></a><var>68.8</var>    (6) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.68.9"></a><var>68.9</var>property, including unpaid and delinquent special assessments and interest and any <br/>
<a id="pl.68.10"></a><var>68.10</var>delinquent property taxes, penalties, and interest, but not including property taxes payable <br/>
<a id="pl.68.11"></a><var>68.11</var>during the year, does not exceed 75 percent of the assessor's estimated market value for <br/>
<a id="pl.68.12"></a><var>68.12</var>the year.<br/>
<a id="pl.68.13"></a><var>68.13</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.68.14"></a><var>68.14</var>July 1, 2007.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.68.15"></a><var>68.15</var>    Sec. 28. Minnesota Statutes 2006, section 290B.03, subdivision 2, is amended to read:<br/>
<a id="pl.68.16"></a><var>68.16</var>    Subd. 2. <b>Qualifying homestead; defined.</b> Qualifying homestead property is defined <br/>
<a id="pl.68.17"></a><var>68.17</var>as the dwelling occupied as the homeowner's principal residence and so much of the land <br/>
<a id="pl.68.18"></a><var>68.18</var>surrounding it as is reasonably necessary for use of the dwelling as a home and any other <br/>
<a id="pl.68.19"></a><var>68.19</var>property used for purposes of a homestead as defined in section 
         <statute_ref>273.13, subdivisions <br/>
<a id="pl.68.20"></a><var>68.20</var>22 and 23
         </statute_ref>, but not to exceed one acre. The homestead may be part of a multidwelling <br/>
<a id="pl.68.21"></a><var>68.21</var>building and the land on which it is built.  Property is not qualifying homestead property if <br/>
<a id="pl.68.22"></a><var>68.22</var>a person or entity other than the applicant or the applicant's spouse holds an interest in the <br/>
<a id="pl.68.23"></a><var>68.23</var>property as the vendor under a contract for deed or as a remainderperson.<br/>
<a id="pl.68.24"></a><var>68.24</var><b>EFFECTIVE DATE.</b>This section is effective for applications submitted on or <br/>
<a id="pl.68.25"></a><var>68.25</var>after January 1, 2007.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.68.26"></a><var>68.26</var>    Sec. 29. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:<br/>
<a id="pl.68.27"></a><var>68.27</var>    Subd. 3. <b>Excess-income certification by taxpayer.</b> A taxpayer whose initial <br/>
<a id="pl.68.28"></a><var>68.28</var>application has been approved under subdivision 2 shall notify the commissioner of <br/>
<a id="pl.68.29"></a><var>68.29</var>revenue in writing by July 1 if the taxpayer's household income for the preceding calendar <br/>
<a id="pl.68.30"></a><var>68.30</var>year exceeded $60,000 $75,000. The certification must state the homeowner's total <br/>
<a id="pl.68.31"></a><var>68.31</var>household income for the previous calendar year. No property taxes may be deferred <br/>
<a id="pl.68.32"></a><var>68.32</var>under this chapter in any year following the year in which a program participant filed or <br/>
<a id="pl.68.33"></a><var>68.33</var>should have filed an excess-income certification under this subdivision showing income in <br/>
<a id="pl.69.1"></a><var>69.1</var>excess of the maximum allowed, unless the participant has filed a resumption of eligibility <br/>
<a id="pl.69.2"></a><var>69.2</var>certification as described in subdivision 4.<br/>
<a id="pl.69.3"></a><var>69.3</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.69.4"></a><var>69.4</var>July 1, 2007.<br/>
<br/>
<a id="bill.4.30.0"></a><a id="pl.69.5"></a><var>69.5</var>    Sec. 30. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:<br/>
<a id="pl.69.6"></a><var>69.6</var>    Subd. 4. <b>Resumption of eligibility certification by taxpayer.</b> A taxpayer who has <br/>
<a id="pl.69.7"></a><var>69.7</var>previously filed an excess-income certification under subdivision 3 may resume program <br/>
<a id="pl.69.8"></a><var>69.8</var>participation if the taxpayer's household income for a subsequent year is $60,000 $75,000 <br/>
<a id="pl.69.9"></a><var>69.9</var>or less. If the taxpayer chooses to resume program participation, the taxpayer must notify <br/>
<a id="pl.69.10"></a><var>69.10</var>the commissioner of revenue in writing by July 1 of the year following a calendar year in <br/>
<a id="pl.69.11"></a><var>69.11</var>which the taxpayer's household income is $60,000 $75,000 or less. The certification must <br/>
<a id="pl.69.12"></a><var>69.12</var>state the taxpayer's total household income for the previous calendar year. Once a taxpayer <br/>
<a id="pl.69.13"></a><var>69.13</var>resumes participation in the program under this subdivision, participation will continue <br/>
<a id="pl.69.14"></a><var>69.14</var>until the taxpayer files a subsequent excess-income certification under subdivision 3 or <br/>
<a id="pl.69.15"></a><var>69.15</var>until participation is terminated under section 
         <statute_ref>290B.08, subdivision 1</statute_ref>. <br/>
<a id="pl.69.16"></a><var>69.16</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed on or after <br/>
<a id="pl.69.17"></a><var>69.17</var>July 1, 2007.<br/>
<br/>
<a id="bill.4.31.0"></a><a id="pl.69.18"></a><var>69.18</var>    Sec. 31. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:<br/>
<a id="pl.69.19"></a><var>69.19</var>    Subdivision 1. <b>Determination by commissioner.</b> The commissioner shall <br/>
<a id="pl.69.20"></a><var>69.20</var>determine each qualifying homeowner's "annual maximum property tax amount" <br/>
<a id="pl.69.21"></a><var>69.21</var>following approval of the homeowner's initial application and following the receipt of a <br/>
<a id="pl.69.22"></a><var>69.22</var>resumption of eligibility certification. The "annual maximum property tax amount" equals <br/>
<a id="pl.69.23"></a><var>69.23</var>three percent of the homeowner's total household income for the year preceding either the <br/>
<a id="pl.69.24"></a><var>69.24</var>initial application or the resumption of eligibility certification, whichever is applicable. <br/>
<a id="pl.69.25"></a><var>69.25</var>Following approval of the initial application, the commissioner shall determine the <br/>
<a id="pl.69.26"></a><var>69.26</var>qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative <br/>
<a id="pl.69.27"></a><var>69.27</var>to the appropriate assessment year for any homeowner whose total household income <br/>
<a id="pl.69.28"></a><var>69.28</var>for the previous year exceeds $60,000 $75,000. No tax shall be deferred in any year in <br/>
<a id="pl.69.29"></a><var>69.29</var>which the homeowner does not meet the program qualifications in section 
         <statute_ref>290B.03</statute_ref>. The <br/>
<a id="pl.69.30"></a><var>69.30</var>maximum allowable total deferral is equal to 75 percent of the assessor's estimated market <br/>
<a id="pl.69.31"></a><var>69.31</var>value for the year, less the balance of any mortgage loans and other amounts secured by <br/>
<a id="pl.69.32"></a><var>69.32</var>liens against the property at the time of application, including any unpaid and delinquent <br/>
<a id="pl.70.1"></a><var>70.1</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.70.2"></a><var>70.2</var>but not including property taxes payable during the year. <br/>
<a id="pl.70.3"></a><var>70.3</var><b>EFFECTIVE DATE.</b>This section is effective for applications received on or after <br/>
<a id="pl.70.4"></a><var>70.4</var>July 1, 2007.<br/>
<br/>
<a id="bill.4.32.0"></a><a id="pl.70.5"></a><var>70.5</var>    Sec. 32. Minnesota Statutes 2006, section 290B.07, is amended to read:<br/>
<a id="pl.70.6"></a><var>70.6</var><b>290B.07 LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.70.7"></a><var>70.7</var>    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.70.8"></a><var>70.8</var>or special assessments and interest deferred under this chapter is deemed a loan from the <br/>
<a id="pl.70.9"></a><var>70.9</var>state to the program participant. The commissioner must compute the interest as provided <br/>
<a id="pl.70.10"></a><var>70.10</var>in section 
<statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed five percent, and maintain records of <br/>
<a id="pl.70.11"></a><var>70.11</var>the total deferred amount and interest for each participant. Interest shall accrue beginning <br/>
<a id="pl.70.12"></a><var>70.12</var>September 1 of the payable year for which the taxes are deferred, provided that no interest <br/>
<a id="pl.70.13"></a><var>70.13</var>shall be charged on (1) deferred property tax amounts on applications filed on or after <br/>
<a id="pl.70.14"></a><var>70.14</var>July 1, 2007, or (2) deferred property taxes beginning with taxes payable in 2008 on <br/>
<a id="pl.70.15"></a><var>70.15</var>applications filed prior to July 1, 2007. Any deferral made under this chapter shall not <br/>
<a id="pl.70.16"></a><var>70.16</var>be construed as delinquent property taxes.<br/>
<a id="pl.70.17"></a><var>70.17</var>    The lien created under section 
         <statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.70.18"></a><var>70.18</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.70.19"></a><var>70.19</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.70.20"></a><var>70.20</var>has the same priority as any other lien under section 
         <statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.70.21"></a><var>70.21</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<statute_ref><a id="pl.70.22"></a><var>70.22</var>290B.04, subdivision 2
         </statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.70.23"></a><var>70.23</var>seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser <br/>
<a id="pl.70.24"></a><var>70.24</var>or an assignee of the purchaser, has priority over deferred taxes and interest on deferred <br/>
<a id="pl.70.25"></a><var>70.25</var>taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred <br/>
<a id="pl.70.26"></a><var>70.26</var>taxes and interest for future years has the same priority as the lien for deferred taxes and <br/>
<a id="pl.70.27"></a><var>70.27</var>interest for the first year, which is always higher in priority than any mortgages or other <br/>
<a id="pl.70.28"></a><var>70.28</var>liens filed, recorded, or created after the notice recorded or filed under section 
         <statute_ref>290B.04, <br/>
<a id="pl.70.29"></a><var>70.29</var>subdivision 2
         </statute_ref>. The county treasurer or auditor shall maintain records of the deferred <br/>
<a id="pl.70.30"></a><var>70.30</var>portion and shall list the amount of deferred taxes for the year and the cumulative deferral <br/>
<a id="pl.70.31"></a><var>70.31</var>and interest for all previous years as a lien against the property. In any certification of <br/>
<a id="pl.70.32"></a><var>70.32</var>unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes <br/>
<a id="pl.70.33"></a><var>70.33</var>payable in the current year, deferred taxes and interest, and delinquent taxes. Payment <br/>
<a id="pl.70.34"></a><var>70.34</var>of the deferred portion becomes due and owing at the time specified in section 
         <statute_ref>290B.08</statute_ref>. <br/>
<a id="pl.71.1"></a><var>71.1</var>Upon receipt of the payment, the commissioner shall issue a receipt for it to the person <br/>
<a id="pl.71.2"></a><var>71.2</var>making the payment upon request and shall notify the auditor of the county in which the <br/>
<a id="pl.71.3"></a><var>71.3</var>parcel is located, within ten days, identifying the parcel to which the payment applies. <br/>
<a id="pl.71.4"></a><var>71.4</var>Upon receipt by the commissioner of revenue of collected funds in the amount of the <br/>
<a id="pl.71.5"></a><var>71.5</var>deferral, the state's loan to the program participant is deemed paid in full.<br/>
<a id="pl.71.6"></a><var>71.6</var>    (b) If property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.71.7"></a><var>71.7</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.71.8"></a><var>71.8</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<statute_ref><a id="pl.71.9"></a><var>71.9</var>290B.08
         </statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.71.10"></a><var>71.10</var>canceled by the county auditor as provided in section 
         <statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.71.11"></a><var>71.11</var>any other law to the contrary, any proceeds from a subsequent sale of the property under <br/>
<a id="pl.71.12"></a><var>71.12</var>chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale <br/>
<a id="pl.71.13"></a><var>71.13</var>fund for any direct costs of selling the property or any costs directly related to preparing <br/>
<a id="pl.71.14"></a><var>71.14</var>the property for sale, and then to reimburse the state for the amount of the canceled lien. <br/>
<a id="pl.71.15"></a><var>71.15</var>Within 90 days of the receipt of any sale proceed to which the state is entitled under these <br/>
<a id="pl.71.16"></a><var>71.16</var>provisions, the county auditor must pay those funds to the commissioner of revenue by <br/>
<a id="pl.71.17"></a><var>71.17</var>warrant for deposit in the general fund. No other deposit, use, distribution, or release of <br/>
<a id="pl.71.18"></a><var>71.18</var>gross sale proceeds or receipts may be made by the county until payments sufficient <br/>
<a id="pl.71.19"></a><var>71.19</var>to fully reimburse the state for the canceled lien amount have been transmitted to the <br/>
<a id="pl.71.20"></a><var>71.20</var>commissioner.<br/>
<a id="pl.71.21"></a><var>71.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2007.<br/>
<br/>
<a id="bill.4.33.0"></a><a id="pl.71.22"></a><var>71.22</var>    Sec. 33. <b>[290D.01] CITATION.</b><br/>
<a id="pl.71.23"></a><var>71.23</var>    This program shall be named the "seasonal recreational property tax deferral <br/>
<a id="pl.71.24"></a><var>71.24</var>program."<br/>
<a id="pl.71.25"></a><var>71.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2007.<br/>
<br/>
<a id="bill.4.34.0"></a><a id="pl.71.26"></a><var>71.26</var>    Sec. 34. <b>[290D.02] TERMS.</b><br/>
<a id="pl.71.27"></a><var>71.27</var>    Subdivision 1. <b>Terms.</b> For purposes of sections 290D.01 to 290D.08, the terms <br/>
<a id="pl.71.28"></a><var>71.28</var>defined in this section have the meanings given them.<br/>
<a id="pl.71.29"></a><var>71.29</var>    Subd. 2. <b>Primary property owner.</b> "Primary property owner" means a person who <br/>
<a id="pl.71.30"></a><var>71.30</var>(1) has been the owner, or one of the owners, of the eligible property for at least 15 years <br/>
<a id="pl.71.31"></a><var>71.31</var>prior to the year the application is filed under section 290D.04; and (2) applies for the <br/>
<a id="pl.71.32"></a><var>71.32</var>deferral of property taxes under section 290D.04.<br/>
<a id="pl.72.1"></a><var>72.1</var>    Subd. 3. <b>Secondary property owner.</b> "Secondary property owner" means any <br/>
<a id="pl.72.2"></a><var>72.2</var>person, other than the primary property owner, who has been an owner of the eligible <br/>
<a id="pl.72.3"></a><var>72.3</var>property for at least 15 years prior to the year the initial application is filed for deferral <br/>
<a id="pl.72.4"></a><var>72.4</var>of property taxes under section 290D.04.<br/>
<a id="pl.72.5"></a><var>72.5</var>    Subd. 4. <b>Eligible property.</b> "Eligible property" means a parcel of property or <br/>
<a id="pl.72.6"></a><var>72.6</var>contiguous parcels of property under the same ownership classified as noncommercial <br/>
<a id="pl.72.7"></a><var>72.7</var>seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.<br/>
<a id="pl.72.8"></a><var>72.8</var>    Subd. 5. <b>Base property tax amount.</b> "Base property tax amount" means the total <br/>
<a id="pl.72.9"></a><var>72.9</var>property taxes levied by all taxing jurisdictions, including special assessments, on the <br/>
<a id="pl.72.10"></a><var>72.10</var>eligible property in the year prior to the year that the initial application is approved under <br/>
<a id="pl.72.11"></a><var>72.11</var>section 290D.04 and payable in the year of the application.<br/>
<a id="pl.72.12"></a><var>72.12</var>    Subd. 6. <b>Special assessments.</b> "Special assessments" means any assessment, fee, or <br/>
<a id="pl.72.13"></a><var>72.13</var>other charge that may be made by law, and that appears on the property tax statement for <br/>
<a id="pl.72.14"></a><var>72.14</var>the property for collection under the laws applicable to the enforcement of real estate taxes.<br/>
<a id="pl.72.15"></a><var>72.15</var>    Subd. 7. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.72.16"></a><var>72.16</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.72.17"></a><var>72.17</var>and thereafter.<br/>
<br/>
<a id="bill.4.35.0"></a><a id="pl.72.18"></a><var>72.18</var>    Sec. 35. <b>[290D.03] QUALIFICATIONS FOR DEFERRAL.</b><br/>
<a id="pl.72.19"></a><var>72.19</var>    In order for an eligible property to qualify for treatment under this program:<br/>
<a id="pl.72.20"></a><var>72.20</var>    (1) the eligible property must have been owned solely by the primary property owner, <br/>
<a id="pl.72.21"></a><var>72.21</var>or jointly with others, for at least 15 years prior to the year the initial application is filed;<br/>
<a id="pl.72.22"></a><var>72.22</var>    (2) there must be no state or federal tax liens or judgment liens on the eligible <br/>
<a id="pl.72.23"></a><var>72.23</var>property;<br/>
<a id="pl.72.24"></a><var>72.24</var>    (3) there must be no mortgages or other liens on the eligible property that secure <br/>
<a id="pl.72.25"></a><var>72.25</var>future advances, except for those subject to credit limits that result in compliance with <br/>
<a id="pl.72.26"></a><var>72.26</var>clause (4); and<br/>
<a id="pl.72.27"></a><var>72.27</var>    (4) the total unpaid balances of debts secured by mortgages and other liens on the <br/>
<a id="pl.72.28"></a><var>72.28</var>eligible property, including unpaid and delinquent special assessments and interest and <br/>
<a id="pl.72.29"></a><var>72.29</var>any delinquent property taxes, penalties, and interest, but not including property taxes <br/>
<a id="pl.72.30"></a><var>72.30</var>payable during the year, must not exceed 60 percent of the assessor's estimated market <br/>
<a id="pl.72.31"></a><var>72.31</var>value for the current assessment year.<br/>
<a id="pl.72.32"></a><var>72.32</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.72.33"></a><var>72.33</var>and thereafter.<br/>
<br/>
<a id="bill.4.36.0"></a><a id="pl.73.1"></a><var>73.1</var>    Sec. 36. <b>[290D.04] APPLICATION FOR DEFERRAL.</b><br/>
<a id="pl.73.2"></a><var>73.2</var>    Subdivision 1. <b>Initial application.</b> (a) A primary owner of a property meeting <br/>
<a id="pl.73.3"></a><var>73.3</var>the qualifications under section 
<statute_ref>290D.03</statute_ref> may apply to the commissioner for deferral <br/>
<a id="pl.73.4"></a><var>73.4</var>of taxes on the eligible property. Applications are due on or before July 1 for deferral <br/>
<a id="pl.73.5"></a><var>73.5</var>of any taxes payable in the following year. The application, which must be prescribed <br/>
<a id="pl.73.6"></a><var>73.6</var>by the commissioner, shall include the following items and any other information the <br/>
<a id="pl.73.7"></a><var>73.7</var>commissioner deems necessary: <br/>
<a id="pl.73.8"></a><var>73.8</var>    (1) the name, address, and Social Security number of the primary property owner <br/>
<a id="pl.73.9"></a><var>73.9</var>and secondary property owners, if any;<br/>
<a id="pl.73.10"></a><var>73.10</var>    (2) a copy of the property tax statement for the current taxes payable year for the <br/>
<a id="pl.73.11"></a><var>73.11</var>eligible property;<br/>
<a id="pl.73.12"></a><var>73.12</var>    (3) the initial year of ownership of the primary property owner and any second <br/>
<a id="pl.73.13"></a><var>73.13</var>property owners of the eligible property;<br/>
<a id="pl.73.14"></a><var>73.14</var>    (4) information on any mortgage loans or other amounts secured by mortgages or <br/>
<a id="pl.73.15"></a><var>73.15</var>other liens against the eligible property, for which purpose the commissioner may require <br/>
<a id="pl.73.16"></a><var>73.16</var>the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the <br/>
<a id="pl.73.17"></a><var>73.17</var>balance owing on the mortgage loan provided by the mortgage holder. The commissioner <br/>
<a id="pl.73.18"></a><var>73.18</var>may require the appropriate documents in connection with obtaining and confirming <br/>
<a id="pl.73.19"></a><var>73.19</var>information on unpaid amounts secured by other liens; and<br/>
<a id="pl.73.20"></a><var>73.20</var>    (5) the signatures of the primary property owner and all other owners, if any, stating <br/>
<a id="pl.73.21"></a><var>73.21</var>that each owner agrees to enroll the eligible property in the program to defer property <br/>
<a id="pl.73.22"></a><var>73.22</var>taxes under this chapter.<br/>
<a id="pl.73.23"></a><var>73.23</var>    The application must state that program participation is voluntary. The application <br/>
<a id="pl.73.24"></a><var>73.24</var>must also state that program participation includes authorization for the annual deferred <br/>
<a id="pl.73.25"></a><var>73.25</var>amount. The deferred property tax calculated by the county and the cumulative deferred <br/>
<a id="pl.73.26"></a><var>73.26</var>property tax amount is public data.<br/>
<a id="pl.73.27"></a><var>73.27</var>    (b) As part of the initial application process, if the property is abstract property, the <br/>
<a id="pl.73.28"></a><var>73.28</var>commissioner may require the applicant to obtain at the applicant's cost a report prepared <br/>
<a id="pl.73.29"></a><var>73.29</var>by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens, <br/>
<a id="pl.73.30"></a><var>73.30</var>judgments, and state and federal tax lien notices which were recorded on or after the date <br/>
<a id="pl.73.31"></a><var>73.31</var>of that last deed with respect to the eligible property or to the applicant.<br/>
<a id="pl.73.32"></a><var>73.32</var>    The certificate or report need not include references to any documents filed or <br/>
<a id="pl.73.33"></a><var>73.33</var>recorded more than 40 years prior to the date of the certification or report. The certification <br/>
<a id="pl.73.34"></a><var>73.34</var>or report must be as of a date not more than 30 days prior to submission of the application <br/>
<a id="pl.73.35"></a><var>73.35</var>under this section.<br/>
<a id="pl.74.1"></a><var>74.1</var>    The commissioner may also require the county recorder or county registrar of the <br/>
<a id="pl.74.2"></a><var>74.2</var>county where the eligible property is located to provide copies of recorded documents <br/>
<a id="pl.74.3"></a><var>74.3</var>related to the applicant of the eligible property, for which the recorder or registrar shall <br/>
<a id="pl.74.4"></a><var>74.4</var>not charge a fee. The commissioner may use any information available to determine or <br/>
<a id="pl.74.5"></a><var>74.5</var>verify eligibility under this section.<br/>
<a id="pl.74.6"></a><var>74.6</var>    Subd. 2. <b>Approval; recording.</b> The commissioner shall approve all initial <br/>
<a id="pl.74.7"></a><var>74.7</var>applications that qualify under this chapter and shall notify the primary property owner on <br/>
<a id="pl.74.8"></a><var>74.8</var>or before December 1. The commissioner may investigate the facts or require confirmation <br/>
<a id="pl.74.9"></a><var>74.9</var>in regard to an application. The commissioner shall record or file a notice of qualification <br/>
<a id="pl.74.10"></a><var>74.10</var>for deferral, including the names of the primary and any secondary property owners and a <br/>
<a id="pl.74.11"></a><var>74.11</var>legal description of the eligible property, in the office of the county recorder, or registrar of <br/>
<a id="pl.74.12"></a><var>74.12</var>titles, whichever is applicable, in the county where the eligible property is located. The <br/>
<a id="pl.74.13"></a><var>74.13</var>notice must state that it serves as a notice of lien and that it includes deferrals under this <br/>
<a id="pl.74.14"></a><var>74.14</var>section for future years. The primary property owner shall pay the recording or filing fees <br/>
<a id="pl.74.15"></a><var>74.15</var>for the notice, which, notwithstanding section 
<statute_ref>357.18</statute_ref>, shall be paid by that owner at the <br/>
<a id="pl.74.16"></a><var>74.16</var>time of satisfaction of the lien.<br/>
<a id="pl.74.17"></a><var>74.17</var>    Subd. 3. <b>Penalty for failure; investigations.</b> (a) The commissioner shall assess <br/>
<a id="pl.74.18"></a><var>74.18</var>a penalty equal to 20 percent of the property taxes improperly deferred in the case of a <br/>
<a id="pl.74.19"></a><var>74.19</var>false application. The commissioner shall assess a penalty equal to 50 percent of the <br/>
<a id="pl.74.20"></a><var>74.20</var>property taxes improperly deferred if the taxpayer knowingly filed a false application. The <br/>
<a id="pl.74.21"></a><var>74.21</var>commissioner shall assess penalties under this section through the issuance of an order <br/>
<a id="pl.74.22"></a><var>74.22</var>under the provisions of chapter 270C. Persons affected by a commissioner's order issued <br/>
<a id="pl.74.23"></a><var>74.23</var>under this section may appeal as provided in chapter 270C.<br/>
<a id="pl.74.24"></a><var>74.24</var>    (b) The commissioner may conduct investigations related to initial applications <br/>
<a id="pl.74.25"></a><var>74.25</var>required under this chapter within the period ending 3-1/2 years from the due date of <br/>
<a id="pl.74.26"></a><var>74.26</var>the application.<br/>
<a id="pl.74.27"></a><var>74.27</var>    Subd. 4. <b>Annual certification to commissioner.</b> Annually on or before July 1, <br/>
<a id="pl.74.28"></a><var>74.28</var>the primary property owner must certify to the commissioner that the person continues <br/>
<a id="pl.74.29"></a><var>74.29</var>to qualify as a primary property owner. If the primary owner has died or has transferred <br/>
<a id="pl.74.30"></a><var>74.30</var>the property in the preceding year, a certification may be filed by the primary owner's <br/>
<a id="pl.74.31"></a><var>74.31</var>spouse, or by one of the secondary owners, provided that the person is currently an <br/>
<a id="pl.74.32"></a><var>74.32</var>owner of the property. In this case, the primary owner's spouse or the secondary owner <br/>
<a id="pl.74.33"></a><var>74.33</var>shall be considered the primary owner from that point forward. If neither the primary <br/>
<a id="pl.74.34"></a><var>74.34</var>owner, the primary owner's spouse, or a secondary owner is eligible to file the required <br/>
<a id="pl.74.35"></a><var>74.35</var>annual certification for the property, the property's participation in the program shall be <br/>
<a id="pl.74.36"></a><var>74.36</var>terminated, and the procedures in section 290D.07 apply.<br/>
<a id="pl.75.1"></a><var>75.1</var>    Subd. 5. <b>Annual notice to primary property owner.</b> Annually, on or before <br/>
<a id="pl.75.2"></a><var>75.2</var>September 1, the commissioner shall notify each primary property owner, in writing, of <br/>
<a id="pl.75.3"></a><var>75.3</var>the total cumulative deferred taxes and accrued interest on the qualifying property as of <br/>
<a id="pl.75.4"></a><var>75.4</var>that date.<br/>
<a id="pl.75.5"></a><var>75.5</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.75.6"></a><var>75.6</var>and thereafter.<br/>
<br/>
<a id="bill.4.37.0"></a><a id="pl.75.7"></a><var>75.7</var>    Sec. 37. <b>[290D.05] DEFERRED PROPERTY TAX AMOUNT.</b><br/>
<a id="pl.75.8"></a><var>75.8</var>    Subdivision 1. <b>Calculation of deferred property tax amount.</b> Each year after <br/>
<a id="pl.75.9"></a><var>75.9</var>the county auditor has determined the final property tax rates under section 275.08, the <br/>
<a id="pl.75.10"></a><var>75.10</var>"deferred property tax amount" must be calculated on each eligible property. The deferred <br/>
<a id="pl.75.11"></a><var>75.11</var>property tax amount is equal to 50 percent of the amount of the difference between (1) the <br/>
<a id="pl.75.12"></a><var>75.12</var>total amount of property taxes and special assessments levied upon the eligible property <br/>
<a id="pl.75.13"></a><var>75.13</var>for the current year by all taxing jurisdictions and (2) the eligible property's base property <br/>
<a id="pl.75.14"></a><var>75.14</var>tax amount. Any tax attributable to new improvements made to the eligible property after <br/>
<a id="pl.75.15"></a><var>75.15</var>the initial application has been approved under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, must be <br/>
<a id="pl.75.16"></a><var>75.16</var>excluded in determining the deferred property tax amount. The eligible property's total <br/>
<a id="pl.75.17"></a><var>75.17</var>current year's tax less the deferred property tax amount for the current year must be listed <br/>
<a id="pl.75.18"></a><var>75.18</var>on the property tax statement and is the amount due to the county under chapter 276. <br/>
<a id="pl.75.19"></a><var>75.19</var>Reference that the property is enrolled in the seasonal recreational property tax deferral <br/>
<a id="pl.75.20"></a><var>75.20</var>program under this chapter and a state lien has been recorded must be clearly printed on <br/>
<a id="pl.75.21"></a><var>75.21</var>the statement.<br/>
<a id="pl.75.22"></a><var>75.22</var>    Subd. 2. <b>Certification to commissioner.</b> The county auditor shall annually, on or <br/>
<a id="pl.75.23"></a><var>75.23</var>before April 15, certify to the commissioner the property tax deferral amounts determined <br/>
<a id="pl.75.24"></a><var>75.24</var>under this section for each eligible property in the county. The commissioner shall <br/>
<a id="pl.75.25"></a><var>75.25</var>prescribe the information that is necessary to identify the eligible properties.<br/>
<a id="pl.75.26"></a><var>75.26</var>    Subd. 3. <b>Limitation on total amount of deferred taxes.</b> The total amount of <br/>
<a id="pl.75.27"></a><var>75.27</var>deferred taxes and interest on a property, when added to (1) the balance owed on any <br/>
<a id="pl.75.28"></a><var>75.28</var>mortgages on the property at the time of initial application; (2) other amounts secured by <br/>
<a id="pl.75.29"></a><var>75.29</var>liens on the property at the time of the initial application; and (3) any unpaid and delinquent <br/>
<a id="pl.75.30"></a><var>75.30</var>special assessments and interest and any delinquent property taxes, penalties, and interest, <br/>
<a id="pl.75.31"></a><var>75.31</var>but not including property taxes payable during the year, must not exceed 60 percent of <br/>
<a id="pl.75.32"></a><var>75.32</var>the assessor's estimated market value of the property for the current assessment year.<br/>
<a id="pl.75.33"></a><var>75.33</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.75.34"></a><var>75.34</var>and thereafter.<br/>
<br/>
<a id="bill.4.38.0"></a><a id="pl.76.1"></a><var>76.1</var>    Sec. 38. <b>[290D.06] LIEN; DEFERRED PORTION.</b><br/>
<a id="pl.76.2"></a><var>76.2</var>    (a) Payment by the state to the county treasurer of property taxes, penalties, interest, <br/>
<a id="pl.76.3"></a><var>76.3</var>or special assessments and interest, deferred under this chapter is deemed a loan from the <br/>
<a id="pl.76.4"></a><var>76.4</var>state to the program participant. The commissioner shall compute the interest as provided <br/>
<a id="pl.76.5"></a><var>76.5</var>in section 
<statute_ref>270C.40, subdivision 5</statute_ref>, but not to exceed two percent over the maximum <br/>
<a id="pl.76.6"></a><var>76.6</var>interest rate provided in section 290B.07, paragraph (a), and maintain records of the total <br/>
<a id="pl.76.7"></a><var>76.7</var>deferred amount and interest for each participant. Interest accrues beginning September 1 <br/>
<a id="pl.76.8"></a><var>76.8</var>of the payable year for which the taxes are deferred. Any deferral made under this chapter <br/>
<a id="pl.76.9"></a><var>76.9</var>must not be construed as delinquent property taxes.<br/>
<a id="pl.76.10"></a><var>76.10</var>    The lien created under section 
<statute_ref>272.31</statute_ref> continues to secure payment by the taxpayer, <br/>
<a id="pl.76.11"></a><var>76.11</var>or by the taxpayer's successors or assigns, of the amount deferred, including interest, with <br/>
<a id="pl.76.12"></a><var>76.12</var>respect to all years for which amounts are deferred. The lien for deferred taxes and interest <br/>
<a id="pl.76.13"></a><var>76.13</var>has the same priority as any other lien under section 
<statute_ref>272.31</statute_ref>, except that liens, including <br/>
<a id="pl.76.14"></a><var>76.14</var>mortgages, recorded or filed prior to the recording or filing of the notice under section <br/>
<a id="pl.76.15"></a><var>76.15</var><statute_ref>290D.04, subdivision 2</statute_ref>, have priority over the lien for deferred taxes and interest. A <br/>
<a id="pl.76.16"></a><var>76.16</var>seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an <br/>
<a id="pl.76.17"></a><var>76.17</var>assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes, <br/>
<a id="pl.76.18"></a><var>76.18</var>regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes <br/>
<a id="pl.76.19"></a><var>76.19</var>and interest for future years has the same priority as the lien for deferred taxes and interest <br/>
<a id="pl.76.20"></a><var>76.20</var>for the first year, which is always higher in priority than any mortgages or other liens filed, <br/>
<a id="pl.76.21"></a><var>76.21</var>recorded, or created after the notice recorded or filed under section 
<statute_ref>290D.04, subdivision <br/>
<a id="pl.76.22"></a><var>76.22</var>2
</statute_ref>. The county treasurer or auditor shall maintain records of the deferred portion and shall <br/>
<a id="pl.76.23"></a><var>76.23</var>list the amount of deferred taxes for the year and the cumulative deferral and interest for <br/>
<a id="pl.76.24"></a><var>76.24</var>all previous years as a lien against the eligible property. In any certification of unpaid <br/>
<a id="pl.76.25"></a><var>76.25</var>taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in <br/>
<a id="pl.76.26"></a><var>76.26</var>the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred <br/>
<a id="pl.76.27"></a><var>76.27</var>portion becomes due and owing at the time specified in section 
<statute_ref>290D.07</statute_ref>. Upon receipt of <br/>
<a id="pl.76.28"></a><var>76.28</var>the payment, the commissioner shall issue a receipt to the person making the payment <br/>
<a id="pl.76.29"></a><var>76.29</var>upon request and shall notify the auditor of the county in which the parcel is located, <br/>
<a id="pl.76.30"></a><var>76.30</var>within ten days, identifying the parcel to which the payment applies. Upon receipt by the <br/>
<a id="pl.76.31"></a><var>76.31</var>commissioner of collected funds in the amount of the deferral, the state's loan to the <br/>
<a id="pl.76.32"></a><var>76.32</var>program participant is deemed paid in full.<br/>
<a id="pl.76.33"></a><var>76.33</var>    (b) If eligible property for which taxes have been deferred under this chapter forfeits <br/>
<a id="pl.76.34"></a><var>76.34</var>under chapter 281 for nonpayment of a nondeferred property tax amount, or because <br/>
<a id="pl.76.35"></a><var>76.35</var>of nonpayment of amounts previously deferred following a termination under section <br/>
<a id="pl.76.36"></a><var>76.36</var><statute_ref>290D.07</statute_ref>, the lien for the taxes deferred under this chapter, plus interest and costs, shall be <br/>
<a id="pl.77.1"></a><var>77.1</var>canceled by the county auditor as provided in section 
<statute_ref>282.07</statute_ref>. However, notwithstanding <br/>
<a id="pl.77.2"></a><var>77.2</var>any other law to the contrary, any proceeds from a subsequent sale of the eligible property <br/>
<a id="pl.77.3"></a><var>77.3</var>under chapter 282 or another law, must be used to first reimburse the county's forfeited <br/>
<a id="pl.77.4"></a><var>77.4</var>tax sale fund for any direct costs of selling the eligible property or any costs directly <br/>
<a id="pl.77.5"></a><var>77.5</var>related to preparing the eligible property for sale, and then to reimburse the state for <br/>
<a id="pl.77.6"></a><var>77.6</var>the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to <br/>
<a id="pl.77.7"></a><var>77.7</var>which the state is entitled under these provisions, the county auditor must pay those funds <br/>
<a id="pl.77.8"></a><var>77.8</var>to the commissioner by warrant for deposit in the general fund. No other deposit, use, <br/>
<a id="pl.77.9"></a><var>77.9</var>distribution, or release of gross sale proceeds or receipts may be made by the county until <br/>
<a id="pl.77.10"></a><var>77.10</var>payments sufficient to fully reimburse the state for the canceled lien amount have been <br/>
<a id="pl.77.11"></a><var>77.11</var>transmitted to the commissioner.<br/>
<a id="pl.77.12"></a><var>77.12</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.77.13"></a><var>77.13</var>and thereafter.<br/>
<br/>
<a id="bill.4.39.0"></a><a id="pl.77.14"></a><var>77.14</var>    Sec. 39. <b>[290D.07] TERMINATION OF DEFERRAL; PAYMENT OF </b><br/>
<a id="pl.77.15"></a><var>77.15</var><b>DEFERRED TAXES.</b><br/>
<a id="pl.77.16"></a><var>77.16</var>    Subdivision 1. <b>Termination.</b> (a) The deferral of taxes granted under this chapter <br/>
<a id="pl.77.17"></a><var>77.17</var>terminates when one of the following occurs:<br/>
<a id="pl.77.18"></a><var>77.18</var>    (1) the eligible property is sold or transferred to someone other than the primary <br/>
<a id="pl.77.19"></a><var>77.19</var>owner's spouse or a secondary owner;<br/>
<a id="pl.77.20"></a><var>77.20</var>    (2) the death of the primary owner, or in the case of a married couple, after the <br/>
<a id="pl.77.21"></a><var>77.21</var>death of both spouses, provided that there is not a secondary owner eligible to become <br/>
<a id="pl.77.22"></a><var>77.22</var>the primary owner;<br/>
<a id="pl.77.23"></a><var>77.23</var>    (3) the primary property owner notifies the commissioner, in writing, that all owners, <br/>
<a id="pl.77.24"></a><var>77.24</var>including any secondary property owners, desire to discontinue the deferral; or<br/>
<a id="pl.77.25"></a><var>77.25</var>    (4) the eligible property no longer qualifies under section 290D.03.<br/>
<a id="pl.77.26"></a><var>77.26</var>    (b) An eligible property is not terminated from the program because no deferred <br/>
<a id="pl.77.27"></a><var>77.27</var>property tax amount is determined for any given year after the eligible property's initial <br/>
<a id="pl.77.28"></a><var>77.28</var>enrollment into the program.<br/>
<a id="pl.77.29"></a><var>77.29</var>    (c) An eligible property is not terminated from the program if the eligible property <br/>
<a id="pl.77.30"></a><var>77.30</var>subsequently becomes the homestead of one or more of the property owners and the <br/>
<a id="pl.77.31"></a><var>77.31</var>property and the owners qualify for, and are immediately enrolled in, the senior deferral <br/>
<a id="pl.77.32"></a><var>77.32</var>program under chapter 290B.<br/>
<a id="pl.77.33"></a><var>77.33</var>    Subd. 2. <b>Payment upon termination.</b> Upon the termination of the deferral under <br/>
<a id="pl.77.34"></a><var>77.34</var>subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments <br/>
<a id="pl.77.35"></a><var>77.35</var>and interest, plus the recording or filing fees under this subdivision and section 
<statute_ref>290D.04, <br/>
<a id="pl.78.1"></a><var>78.1</var>subdivision 2
</statute_ref>, becomes due and payable to the commissioner within 90 days of termination <br/>
<a id="pl.78.2"></a><var>78.2</var>of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2), <br/>
<a id="pl.78.3"></a><var>78.3</var>and within one year of termination of the deferral for terminations under subdivision 1, <br/>
<a id="pl.78.4"></a><var>78.4</var>paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely <br/>
<a id="pl.78.5"></a><var>78.5</var>paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor <br/>
<a id="pl.78.6"></a><var>78.6</var>of the county in which the parcel is located, identifying the parcel to which the payment <br/>
<a id="pl.78.7"></a><var>78.7</var>applies and shall remit the recording or filing fees under this subdivision and section <br/>
<a id="pl.78.8"></a><var>78.8</var><statute_ref>290D.04, subdivision 2</statute_ref>, to the auditor. A notice of termination of deferral, containing the <br/>
<a id="pl.78.9"></a><var>78.9</var>legal description and the recording or filing data for the notice of qualification for deferral <br/>
<a id="pl.78.10"></a><var>78.10</var>under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, shall be prepared and recorded or filed by the <br/>
<a id="pl.78.11"></a><var>78.11</var>county auditor in the same office in which the notice of qualification for deferral under <br/>
<a id="pl.78.12"></a><var>78.12</var>section 
<statute_ref>290D.04, subdivision 2</statute_ref>, was recorded or filed, and the county auditor shall mail a <br/>
<a id="pl.78.13"></a><var>78.13</var>copy of the notice of termination to the property owner. The property owner shall pay the <br/>
<a id="pl.78.14"></a><var>78.14</var>recording or filing fees. Upon recording or filing of the notice of termination of deferral, <br/>
<a id="pl.78.15"></a><var>78.15</var>the notice of qualification for deferral under section 
<statute_ref>290D.04, subdivision 2</statute_ref>, and the lien <br/>
<a id="pl.78.16"></a><var>78.16</var>created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien, <br/>
<a id="pl.78.17"></a><var>78.17</var>forfeiture, and other rules for the collection of ad valorem property taxes apply. <br/>
<a id="pl.78.18"></a><var>78.18</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.78.19"></a><var>78.19</var>and thereafter.<br/>
<br/>
<a id="bill.4.40.0"></a><a id="pl.78.20"></a><var>78.20</var>    Sec. 40. <b>[290D.08] STATE REIMBURSEMENT.</b><br/>
<a id="pl.78.21"></a><var>78.21</var>    Subdivision 1. <b>Determination; payment.</b> The county auditor shall determine the <br/>
<a id="pl.78.22"></a><var>78.22</var>total current year's deferred amount of property tax under this chapter in the county, and <br/>
<a id="pl.78.23"></a><var>78.23</var>submit those amounts as part of the abstracts of tax lists submitted by the county auditors <br/>
<a id="pl.78.24"></a><var>78.24</var>under section 
<statute_ref>275.29</statute_ref>. The commissioner may make changes in the abstracts of tax lists as <br/>
<a id="pl.78.25"></a><var>78.25</var>deemed necessary. The commissioner, after such review, shall pay the deferred amount of <br/>
<a id="pl.78.26"></a><var>78.26</var>property tax to each county treasurer on or before August 31. <br/>
<a id="pl.78.27"></a><var>78.27</var>    The county treasurer shall distribute as part of the October settlement the funds <br/>
<a id="pl.78.28"></a><var>78.28</var>received as if they had been collected as part of the property tax.<br/>
<a id="pl.78.29"></a><var>78.29</var>    Subd. 2. <b>Appropriation.</b> An amount sufficient to pay the total amount of property <br/>
<a id="pl.78.30"></a><var>78.30</var>tax determined under subdivision 1, plus any amounts paid under section 
<statute_ref>290D.04, <br/>
<a id="pl.78.31"></a><var>78.31</var>subdivision 4
</statute_ref>, is annually appropriated from the general fund to the commissioner.<br/>
<a id="pl.78.32"></a><var>78.32</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed July 1, 2008, <br/>
<a id="pl.78.33"></a><var>78.33</var>and thereafter.<br/>
<br/>
<a id="bill.4.41.0"></a><a id="pl.79.1"></a><var>79.1</var>    Sec. 41. Minnesota Statutes 2006, section 298.75, is amended by adding a subdivision <br/>
<a id="pl.79.2"></a><var>79.2</var>to read:<br/>
<a id="pl.79.3"></a><var>79.3</var>    Subd. 11. <b>Tax may be imposed; Otter Tail County.</b> (a) If Otter Tail County <br/>
<a id="pl.79.4"></a><var>79.4</var>does not impose a tax under this section and approves imposition of the tax under this <br/>
<a id="pl.79.5"></a><var>79.5</var>subdivision, the town of Scambler in Otter Tail County may impose the aggregate <br/>
<a id="pl.79.6"></a><var>79.6</var>materials tax under this section.<br/>
<a id="pl.79.7"></a><var>79.7</var>    (b) For purposes of exercising the powers contained in this section, the "town" is <br/>
<a id="pl.79.8"></a><var>79.8</var>deemed to be the "county."<br/>
<a id="pl.79.9"></a><var>79.9</var>    (c) All provisions in this section apply to the town of Scambler, except that in lieu of <br/>
<a id="pl.79.10"></a><var>79.10</var>the tax proceeds under subdivision 7, all proceeds of the tax must be retained by the town.<br/>
<a id="pl.79.11"></a><var>79.11</var>    (d) If Otter Tail County imposes an aggregate materials tax under this section, the <br/>
<a id="pl.79.12"></a><var>79.12</var>tax imposed by the town of Scambler under this subdivision is repealed on the effective <br/>
<a id="pl.79.13"></a><var>79.13</var>date of the Otter Tail County tax.<br/>
<a id="pl.79.14"></a><var>79.14</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.79.15"></a><var>79.15</var>of the town of Scambler and its chief clerical officer comply with section 645.021, <br/>
<a id="pl.79.16"></a><var>79.16</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.42.0"></a><a id="pl.79.17"></a><var>79.17</var>    Sec. 42. Minnesota Statutes 2006, section 435.193, is amended to read:<br/>
<a id="pl.79.18"></a><var>79.18</var><b>435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS </b><b>OR</b><b>,</b><b> </b><br/>
<a id="pl.79.19"></a><var>79.19</var><b>DISABLED</b><b>, OR MILITARY PERSONS</b><b>.</b><br/>
<a id="pl.79.20"></a><var>79.20</var>    (a) Notwithstanding the provisions of any law to the contrary, any county, statutory <br/>
<a id="pl.79.21"></a><var>79.21</var>or home rule charter city, or town, making a special assessment may, at its discretion, defer <br/>
<a id="pl.79.22"></a><var>79.22</var>the payment of that assessment for any homestead property:<br/>
<a id="pl.79.23"></a><var>79.23</var>    (1) owned by a person 65 years of age or older or retired by virtue of a permanent <br/>
<a id="pl.79.24"></a><var>79.24</var>and total disability for whom it would be a hardship to make the payments; or<br/>
<a id="pl.79.25"></a><var>79.25</var>    (2) owned by a person who is a member of the Minnesota National Guard or other <br/>
<a id="pl.79.26"></a><var>79.26</var>military reserves who is ordered into active military service, as defined in section 190.05, <br/>
<a id="pl.79.27"></a><var>79.27</var>subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a <br/>
<a id="pl.79.28"></a><var>79.28</var>hardship to make the payments.<br/>
<a id="pl.79.29"></a><var>79.29</var>    (b) Any county, statutory or home rule charter city, or town electing to defer <br/>
<a id="pl.79.30"></a><var>79.30</var>special assessments shall adopt an ordinance or resolution establishing standards and <br/>
<a id="pl.79.31"></a><var>79.31</var>guidelines for determining the existence of a hardship and for determining the existence of <br/>
<a id="pl.79.32"></a><var>79.32</var>a disability, but nothing herein shall be construed to prohibit the determination of hardship <br/>
<a id="pl.79.33"></a><var>79.33</var>on the basis of exceptional and unusual circumstances not covered by the standards and <br/>
<a id="pl.80.1"></a><var>80.1</var>guidelines where the determination is made in a nondiscriminatory manner and does not <br/>
<a id="pl.80.2"></a><var>80.2</var>give the applicant an unreasonable preference or advantage over other applicants.<br/>
<a id="pl.80.3"></a><var>80.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.80.4"></a><var>80.4</var>and applies to any special assessment for which payment is due on or after that date.<br/>
<br/>
<a id="bill.4.43.0"></a><a id="pl.80.5"></a><var>80.5</var>    Sec. 43. Minnesota Statutes 2006, section 469.1813, subdivision 1a, is amended to <br/>
<a id="pl.80.6"></a><var>80.6</var>read:<br/>
<a id="pl.80.7"></a><var>80.7</var>    Subd. 1a. <b>Use of term.</b> (a) As used in this section and sections 
         <statute_ref>469.1814</statute_ref> and <br/>
<statute_ref><a id="pl.80.8"></a><var>80.8</var>469.1815
         </statute_ref>, "abatement" includes a deferral of taxes with abatement of interest and penalties <br/>
<a id="pl.80.9"></a><var>80.9</var>unless the context indicates otherwise. The abatement may include delinquent taxes, <br/>
<a id="pl.80.10"></a><var>80.10</var>interest, and penalties.<br/>
<a id="pl.80.11"></a><var>80.11</var>    (b) Computation of duration limits under this section must include each taxes <br/>
<a id="pl.80.12"></a><var>80.12</var>payable year for which delinquent taxes are abated.<br/>
<a id="pl.80.13"></a><var>80.13</var><b>EFFECTIVE DATE.</b>This section is effective for abatements granted after <br/>
<a id="pl.80.14"></a><var>80.14</var>December 31, 2006.<br/>
<br/>
<a id="bill.4.44.0"></a><a id="pl.80.15"></a><var>80.15</var>    Sec. 44. Minnesota Statutes 2006, section 473F.01, subdivision 2, is amended to read:<br/>
<a id="pl.80.16"></a><var>80.16</var>    Subd. 2. <b>Use of proceeds.</b> Except as provided in section 
<statute_ref>473F.08, subdivision 3a</statute_ref>, <br/>
<a id="pl.80.17"></a><var>80.17</var>The proceeds from the areawide tax imposed under this chapter must be used by a local <br/>
<a id="pl.80.18"></a><var>80.18</var>governmental unit in the same manner and for the same purposes as the proceeds from <br/>
<a id="pl.80.19"></a><var>80.19</var>other ad valorem taxes levied by the local governmental unit. <br/>
<a id="pl.80.20"></a><var>80.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.80.21"></a><var>80.21</var>thereafter.<br/>
<br/>
<a id="bill.4.45.0"></a><a id="pl.80.22"></a><var>80.22</var>    Sec. 45. Minnesota Statutes 2006, section 473F.08, subdivision 5, is amended to read:<br/>
<a id="pl.80.23"></a><var>80.23</var>    Subd. 5. <b>Areawide tax rate.</b> On or before August 25 of each year, the county auditor <br/>
<a id="pl.80.24"></a><var>80.24</var>shall certify to the administrative auditor that portion of the levy of each governmental <br/>
<a id="pl.80.25"></a><var>80.25</var>unit determined under subdivisions 3, clause (a), 3a, and 3b. The administrative auditor <br/>
<a id="pl.80.26"></a><var>80.26</var>shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of <br/>
<a id="pl.80.27"></a><var>80.27</var>such levies from the areawide net tax capacity. On or before September 1 of each year, the <br/>
<a id="pl.80.28"></a><var>80.28</var>administrative auditor shall certify the areawide tax rate to each of the county auditors.<br/>
<a id="pl.80.29"></a><var>80.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.80.30"></a><var>80.30</var>thereafter.<br/>
<br/>
<a id="bill.4.46.0"></a><a id="pl.81.1"></a><var>81.1</var>    Sec. 46. Minnesota Statutes 2006, section 473F.08, subdivision 7a, is amended to read:<br/>
<a id="pl.81.2"></a><var>81.2</var>    Subd. 7a. <b>Certification of values; payment.</b> The administrative auditor shall <br/>
<a id="pl.81.3"></a><var>81.3</var>determine for each county the difference between the total levy on distribution value <br/>
<a id="pl.81.4"></a><var>81.4</var>pursuant to subdivisions 3, clause (a), 3a, and 3b, within the county and the total tax on <br/>
<a id="pl.81.5"></a><var>81.5</var>contribution value pursuant to subdivision 6, within the county. On or before May 16 of <br/>
<a id="pl.81.6"></a><var>81.6</var>each year, the administrative auditor shall certify the differences so determined to each <br/>
<a id="pl.81.7"></a><var>81.7</var>county auditor. In addition, the administrative auditor shall certify to those county auditors <br/>
<a id="pl.81.8"></a><var>81.8</var>for whose county the total tax on contribution value exceeds the total levy on distribution <br/>
<a id="pl.81.9"></a><var>81.9</var>value the settlement the county is to make to the other counties of the excess of the total tax <br/>
<a id="pl.81.10"></a><var>81.10</var>on contribution value over the total levy on distribution value in the county. On or before <br/>
<a id="pl.81.11"></a><var>81.11</var>June 15 and November 15 of each year, each county treasurer in a county having a total tax <br/>
<a id="pl.81.12"></a><var>81.12</var>on contribution value in excess of the total levy on distribution value shall pay one-half of <br/>
<a id="pl.81.13"></a><var>81.13</var>the excess to the other counties in accordance with the administrative auditors certification.<br/>
<a id="pl.81.14"></a><var>81.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.81.15"></a><var>81.15</var>thereafter.<br/>
<br/>
<a id="bill.4.47.0"></a><a id="pl.81.16"></a><var>81.16</var>    Sec. 47. <b>FISCAL DISPARITIES STUDY.</b><br/>
<a id="pl.81.17"></a><var>81.17</var>    Subdivision 1. <b>Study required.</b> The commissioner of revenue shall conduct a study <br/>
<a id="pl.81.18"></a><var>81.18</var>of the metropolitan revenue distribution program contained in Minnesota Statutes, chapter <br/>
<a id="pl.81.19"></a><var>81.19</var>473F, commonly known as the fiscal disparities program. On or before February 1, 2008, <br/>
<a id="pl.81.20"></a><var>81.20</var>the commissioner shall make a report to the chairs of the house of representatives and <br/>
<a id="pl.81.21"></a><var>81.21</var>senate tax committees consisting of the findings of the study and any recommendations <br/>
<a id="pl.81.22"></a><var>81.22</var>resulting from the study.<br/>
<a id="pl.81.23"></a><var>81.23</var>    The study must consider to what extent the program is meeting the following goals, <br/>
<a id="pl.81.24"></a><var>81.24</var>and what changes could be made to the program in the furtherance of meeting those goals:<br/>
<a id="pl.81.25"></a><var>81.25</var>    (1) reducing the extent to which the property tax encourages development patterns <br/>
<a id="pl.81.26"></a><var>81.26</var>that do not make cost-effective use of public infrastructure or impose other high public <br/>
<a id="pl.81.27"></a><var>81.27</var>costs;<br/>
<a id="pl.81.28"></a><var>81.28</var>    (2) ensuring that the benefits of economic growth of the region are shared throughout <br/>
<a id="pl.81.29"></a><var>81.29</var>the region, especially for growth that results from state and/or regional decisions;<br/>
<a id="pl.81.30"></a><var>81.30</var>    (3) improving the ability of each jurisdiction within the region to deliver services at <br/>
<a id="pl.81.31"></a><var>81.31</var>a level commensurate with its tax effort;<br/>
<a id="pl.81.32"></a><var>81.32</var>    (4) compensating jurisdictions containing properties that provide regional benefits <br/>
<a id="pl.81.33"></a><var>81.33</var>for the costs those properties impose on their host jurisdictions in excess of their tax <br/>
<a id="pl.81.34"></a><var>81.34</var>payments;<br/>
<a id="pl.82.1"></a><var>82.1</var>    (5) promoting a fair distribution of property tax burdens across jurisdictions of <br/>
<a id="pl.82.2"></a><var>82.2</var>the region; and<br/>
<a id="pl.82.3"></a><var>82.3</var>    (6) reducing the economic losses that result from competition among communities <br/>
<a id="pl.82.4"></a><var>82.4</var>for commercial-industrial tax base.<br/>
<a id="pl.82.5"></a><var>82.5</var>    Subd. 2. <b>Appropriation.</b> $150,000 is appropriated to the commissioner of revenue <br/>
<a id="pl.82.6"></a><var>82.6</var>from the general fund in fiscal year 2008 to conduct the study required under subdivision 1.<br/>
<a id="pl.82.7"></a><var>82.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2007.<br/>
<br/>
<a id="bill.4.48.0"></a><a id="pl.82.8"></a><var>82.8</var>    Sec. 48. <b>IMPROVING PUBLIC AWARENESS AND PARTICIPATION IN </b><br/>
<a id="pl.82.9"></a><var>82.9</var><b>PROPERTY TAX RELIEF PROGRAMS.</b><br/>
<a id="pl.82.10"></a><var>82.10</var>    The commissioner of revenue, in consultation with county officials, shall undertake <br/>
<a id="pl.82.11"></a><var>82.11</var>to improve the public's awareness of and participation in property tax refund programs, <br/>
<a id="pl.82.12"></a><var>82.12</var>including the regular program for homeowners and renters and the additional property <br/>
<a id="pl.82.13"></a><var>82.13</var>tax refund program, the senior citizen's property tax deferral program, and the seasonal <br/>
<a id="pl.82.14"></a><var>82.14</var>recreational property tax deferral program.<br/>
<a id="pl.82.15"></a><var>82.15</var>    The commissioner shall consider options for improving public awareness, including, <br/>
<a id="pl.82.16"></a><var>82.16</var>but not limited to:<br/>
<a id="pl.82.17"></a><var>82.17</var>    (i) direct mailings to homeowners;<br/>
<a id="pl.82.18"></a><var>82.18</var>    (ii) an insert in the property tax statement;<br/>
<a id="pl.82.19"></a><var>82.19</var>    (iii) more prominent and direct references to the programs on the property tax <br/>
<a id="pl.82.20"></a><var>82.20</var>statement;<br/>
<a id="pl.82.21"></a><var>82.21</var>    (iv) notification on the property tax statement envelopes or folders;<br/>
<a id="pl.82.22"></a><var>82.22</var>    (v) public service announcements, including print, broadcast, and Internet; and<br/>
<a id="pl.82.23"></a><var>82.23</var>    (vi)  information and handouts at the truth in taxation hearings.<br/>
<a id="pl.82.24"></a><var>82.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.49.0"></a><a id="pl.82.25"></a><var>82.25</var>    Sec. 49. <b>TRUTH IN TAXATION PROGRAM; COSTS AND PARTICIPATION </b><br/>
<a id="pl.82.26"></a><var>82.26</var><b>STUDY.</b><br/>
<a id="pl.82.27"></a><var>82.27</var>    The commissioner of revenue shall prepare a study of the costs of the truth in <br/>
<a id="pl.82.28"></a><var>82.28</var>taxation program under Minnesota Statutes, section 275.065, and the level of taxpayer <br/>
<a id="pl.82.29"></a><var>82.29</var>participation in the hearings required under Minnesota Statutes, section 275.065, <br/>
<a id="pl.82.30"></a><var>82.30</var>subdivision 6. In determining the costs, the commissioner shall ascertain the costs of <br/>
<a id="pl.82.31"></a><var>82.31</var>the preparation and mailing of the notice under Minnesota Statutes, section 275.065, <br/>
<a id="pl.82.32"></a><var>82.32</var>subdivision 3, the advertisement under Minnesota Statutes, section 275.065, subdivision <br/>
<a id="pl.82.33"></a><var>82.33</var>5a, and any costs associated with the hearings required under Minnesota Statutes, section <br/>
<a id="pl.83.1"></a><var>83.1</var>275.065, subdivision 6. The report must also make recommendations for ways to increase <br/>
<a id="pl.83.2"></a><var>83.2</var>taxpayer participation in the local government budget process, including but not limited to <br/>
<a id="pl.83.3"></a><var>83.3</var>the truth-in-taxation process. The report must be delivered by January 15, 2008, to the <br/>
<a id="pl.83.4"></a><var>83.4</var>legislature as provided for in Minnesota Statutes, section 3.195. The report must also be <br/>
<a id="pl.83.5"></a><var>83.5</var>provided to the chairs of the senate and house of representatives committees and divisions <br/>
<a id="pl.83.6"></a><var>83.6</var>with jurisdiction over property taxes.<br/>
<a id="pl.83.7"></a><var>83.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.50.0"></a><a id="pl.83.8"></a><var>83.8</var>    Sec. 50. <b> REPEALER.</b><br/>
<a id="pl.83.9"></a><var>83.9</var>Minnesota Statutes 2006, section 473F.08, subdivision 3a, is repealed.<br/>
<a id="pl.83.10"></a><var>83.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2008 and <br/>
<a id="pl.83.11"></a><var>83.11</var>thereafter.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.83.14"></a><var>83.14</var>    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to <br/>
<a id="pl.83.15"></a><var>83.15</var>read:<br/>
<a id="pl.83.16"></a><var>83.16</var>    Subdivision 1. <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.83.17"></a><var>83.17</var>impose a general sales tax if permitted by special law enacted prior to January 1, 2008, or <br/>
<a id="pl.83.18"></a><var>83.18</var>if the political subdivision enacted and imposed the tax before the effective date of section <br/>
<statute_ref><a id="pl.83.19"></a><var>83.19</var>477A.016
         </statute_ref> and its predecessor provision. <br/>
<a id="pl.83.20"></a><var>83.20</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.83.21"></a><var>83.21</var>subdivision. The provisions of this section preempt the provisions of any special law:<br/>
<a id="pl.83.22"></a><var>83.22</var>    (1) enacted before June 2, 1997, or<br/>
<a id="pl.83.23"></a><var>83.23</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.83.24"></a><var>83.24</var>provision from this section's rules by reference.<br/>
<a id="pl.83.25"></a><var>83.25</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.83.26"></a><var>83.26</var>special excise tax on motor vehicles.<br/>
<a id="pl.83.27"></a><var>83.27</var>    (d) No political subdivision may use its funds to advertise, promote, or hold a <br/>
<a id="pl.83.28"></a><var>83.28</var>referendum to support imposing a general sales tax unless authorized by a special law <br/>
<a id="pl.83.29"></a><var>83.29</var>enacted prior to January 1, 2008.<br/>
<a id="pl.83.30"></a><var>83.30</var>    (e) No political subdivision may seek the authority to impose a general sales tax <br/>
<a id="pl.83.31"></a><var>83.31</var>after January 1, 2008.<br/>
<a id="pl.83.32"></a><var>83.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.84.1"></a><var>84.1</var>    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br/>
<a id="pl.84.2"></a><var>84.2</var>chapter 291, article 8, section 22, and Laws 1998, chapter 389, article 8, section 25, and <br/>
<a id="pl.84.3"></a><var>84.3</var>Laws 2003, First Special Session chapter 21, article 8, section 11, is amended to read:<br/>
<a id="pl.84.4"></a><var>84.4</var>    Subd. 2. Notwithstanding Minnesota Statutes, Section 
         <statute_ref>477A.016</statute_ref>, or any other law, <br/>
<a id="pl.84.5"></a><var>84.5</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, <br/>
<a id="pl.84.6"></a><var>84.6</var>impose an additional sales tax of up to one and one-half two and one-quarter percent on <br/>
<a id="pl.84.7"></a><var>84.7</var>sales transactions which are described in Minnesota Statutes 2000, Section 
         <statute_ref>297A.01</statute_ref>, <br/>
<a id="pl.84.8"></a><var>84.8</var>Subdivision 3, Clause (c). When the city council determines that the taxes imposed <br/>
<a id="pl.84.9"></a><var>84.9</var>under this subdivision and under Laws 1998, chapter 389, article 8, section 26 at a rate <br/>
<a id="pl.84.10"></a><var>84.10</var>of one-half of one percent have produced revenue sufficient to pay (1) the debt service <br/>
<a id="pl.84.11"></a><var>84.11</var>on bonds in a principal amount of $8,000,000 issued for capital improvements to the <br/>
<a id="pl.84.12"></a><var>84.12</var>Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds <br/>
<a id="pl.84.13"></a><var>84.13</var>originally issued in the principal amount of $4,970,000 to finance capital improvements <br/>
<a id="pl.84.14"></a><var>84.14</var>to the Great Lakes Aquarium since the imposition of the taxes at the rate of one and <br/>
<a id="pl.84.15"></a><var>84.15</var>one-half percent, the rate of the tax under this subdivision is reduced to by one-half of <br/>
<a id="pl.84.16"></a><var>84.16</var>one percent. The imposition of this tax shall not be subject to voter referendum under <br/>
<a id="pl.84.17"></a><var>84.17</var>either state law or city charter provisions. When the city council determines that the taxes <br/>
<a id="pl.84.18"></a><var>84.18</var>imposed under this subdivision at a rate of three-quarters of one percent and other sources <br/>
<a id="pl.84.19"></a><var>84.19</var>of revenue produce revenue sufficient to pay debt service on bonds in the principal amount <br/>
<a id="pl.84.20"></a><var>84.20</var>of $37,931,000 plus issuance and discount costs, issued for capital improvements at the <br/>
<a id="pl.84.21"></a><var>84.21</var>Duluth Entertainment and Convention Center, which include a new arena, the rate of tax <br/>
<a id="pl.84.22"></a><var>84.22</var>under this subdivision must be reduced by three-quarters of one percent.<br/>
<a id="pl.84.23"></a><var>84.23</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.84.24"></a><var>84.24</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.84.25"></a><var>84.25</var><statute_ref>645.021</statute_ref>, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.84.26"></a><var>84.26</var>    Sec. 3. Laws 2005, First Special Session chapter 3, article 5, section 39, is amended to <br/>
<a id="pl.84.27"></a><var>84.27</var>read:<br/>
<a id="pl.84.28"></a><var>84.28</var>    Sec. 39. <b>CITY OF BEMIDJI.</b><br/>
<a id="pl.84.29"></a><var>84.29</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.84.30"></a><var>84.30</var>section 
         <statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city charter, pursuant to the <br/>
<a id="pl.84.31"></a><var>84.31</var>approval of the city voters at the general election held on November 5, 2002, and at the <br/>
<a id="pl.84.32"></a><var>84.32</var>general election held November 7, 2006, the city of Bemidji may impose by ordinance <br/>
<a id="pl.84.33"></a><var>84.33</var>a sales and use tax of one-half of one percent for the purposes specified in subdivision <br/>
<a id="pl.84.34"></a><var>84.34</var>2. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br/>
<a id="pl.84.35"></a><var>84.35</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.85.1"></a><var>85.1</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by <br/>
<a id="pl.85.2"></a><var>85.2</var>subdivision 1 must be used for the cost of collecting and administering the tax and to pay <br/>
<a id="pl.85.3"></a><var>85.3</var>for the projects listed in this subdivision:<br/>
<a id="pl.85.4"></a><var>85.4</var>    (1) To pay all or part of the capital or administrative costs of the acquisition, <br/>
<a id="pl.85.5"></a><var>85.5</var>construction, and improvement of parks and trails within the city, as provided for in the <br/>
<a id="pl.85.6"></a><var>85.6</var>city of Bemidji's parks, open space, and trail system plan, adopted by the Bemidji City <br/>
<a id="pl.85.7"></a><var>85.7</var>Council on November 21, 2001. Authorized expenses include, but are not limited to, <br/>
<a id="pl.85.8"></a><var>85.8</var>acquiring property, paying construction expenses related to the development of these <br/>
<a id="pl.85.9"></a><var>85.9</var>facilities and improvements, and securing and paying debt service on bonds or other <br/>
<a id="pl.85.10"></a><var>85.10</var>obligations issued to finance acquisition, construction, improvement, or development of <br/>
<a id="pl.85.11"></a><var>85.11</var>parks and trails within the city of Bemidji.<br/>
<a id="pl.85.12"></a><var>85.12</var>    (2) To pay all or part of the city's share of costs of up to $50,000,000 plus any <br/>
<a id="pl.85.13"></a><var>85.13</var>associated bond costs, for acquisition, design, and construction of a regional event center. <br/>
<a id="pl.85.14"></a><var>85.14</var>Authorized expenses include, but are not limited to, acquiring property, paying demolition <br/>
<a id="pl.85.15"></a><var>85.15</var>and construction expenses, improving associated infrastructure, and purchasing furniture, <br/>
<a id="pl.85.16"></a><var>85.16</var>fixtures, and equipment for the regional event center, and securing and paying debt service <br/>
<a id="pl.85.17"></a><var>85.17</var>on bonds or other obligations issued to finance the regional event center project.<br/>
<a id="pl.85.18"></a><var>85.18</var>    Subd. 3. <b>Bonds.</b> (a) Pursuant to the approval of the city voters at the general <br/>
<a id="pl.85.19"></a><var>85.19</var>election held on November 5, 2002, the city of Bemidji may issue, without an additional <br/>
<a id="pl.85.20"></a><var>85.20</var>election, general obligation bonds of the city in an amount not to exceed $9,826,000 to <br/>
<a id="pl.85.21"></a><var>85.21</var>pay capital and administrative expenses for the acquisition, construction, improvement, <br/>
<a id="pl.85.22"></a><var>85.22</var>and development of parks and trails as specified in subdivision 2. The debt represented by <br/>
<a id="pl.85.23"></a><var>85.23</var>the bonds must not be included in computing any debt limitations applicable to the city, <br/>
<a id="pl.85.24"></a><var>85.24</var>and the levy of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay the principal <br/>
<a id="pl.85.25"></a><var>85.25</var>of any interest on the bonds must not be subject to any levy limitations or be included in <br/>
<a id="pl.85.26"></a><var>85.26</var>computing or applying any levy limitation applicable to the city.<br/>
<a id="pl.85.27"></a><var>85.27</var>    (b) Pursuant to the approval of the city voters at the general election held on <br/>
<a id="pl.85.28"></a><var>85.28</var>November 7, 2006, the city of Bemidji may issue, without an additional election, general <br/>
<a id="pl.85.29"></a><var>85.29</var>obligation bonds of the city in an amount not to exceed $50,000,000 to pay capital and <br/>
<a id="pl.85.30"></a><var>85.30</var>administrative expenses for the acquisition, construction, improvement, and development <br/>
<a id="pl.85.31"></a><var>85.31</var>of the regional event center specified in subdivision 2. The debt represented by the bonds <br/>
<a id="pl.85.32"></a><var>85.32</var>must not be included in computing any debt limitations applicable to the city, and the levy <br/>
<a id="pl.85.33"></a><var>85.33</var>of taxes required by Minnesota Statutes, section 
<statute_ref>475.61</statute_ref>, to pay the principal of any interest <br/>
<a id="pl.85.34"></a><var>85.34</var>on the bonds must not be subject to any levy limitations or be included in computing or <br/>
<a id="pl.85.35"></a><var>85.35</var>applying any levy limitation applicable to the city.<br/>
<a id="pl.86.1"></a><var>86.1</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed under subdivision 1 expires <br/>
<a id="pl.86.2"></a><var>86.2</var>when the Bemidji City Council determines that the amount described in subdivision 3, <br/>
<a id="pl.86.3"></a><var>86.3</var>paragraph (a), has been received from the tax to finance the capital and administrative <br/>
<a id="pl.86.4"></a><var>86.4</var>costs for acquisition, construction, improvement, and development of parks and trails and <br/>
<a id="pl.86.5"></a><var>86.5</var>to repay or retire at maturity the principal, interest, and premium due on any bonds issued <br/>
<a id="pl.86.6"></a><var>86.6</var>for the park and trail improvements under subdivision 3, paragraph (a), plus the earlier <br/>
<a id="pl.86.7"></a><var>86.7</var>of (1) 30 years, or (2) when the city council first determines that the additional revenues <br/>
<a id="pl.86.8"></a><var>86.8</var>received from the extension of the tax equals or exceeds the amount authorized to be spent <br/>
<a id="pl.86.9"></a><var>86.9</var>for the regional event center under subdivision 2, clause (2). Any funds remaining after <br/>
<a id="pl.86.10"></a><var>86.10</var>completion of the park and trail improvements authorized projects and retirement or <br/>
<a id="pl.86.11"></a><var>86.11</var>redemption of the bonds may be placed in the general fund of the city. The tax imposed <br/>
<a id="pl.86.12"></a><var>86.12</var>under subdivision 1 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.86.13"></a><var>86.13</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.86.14"></a><var>86.14</var>governing body of the city of Bemidji and its chief clerical officer with Minnesota <br/>
<a id="pl.86.15"></a><var>86.15</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.86.16"></a><var>86.16</var>    Sec. 4. <b>CITY OF CROOKSTON; TAXES AUTHORIZED.</b><br/>
<a id="pl.86.17"></a><var>86.17</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.86.18"></a><var>86.18</var>477A.016, or any other provision of law, ordinance, or city charter, if approved by the <br/>
<a id="pl.86.19"></a><var>86.19</var>voters at the next general election or a special election prior to December 31, 2008, the <br/>
<a id="pl.86.20"></a><var>86.20</var>city of Crookston may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.86.21"></a><var>86.21</var>percent for the purpose specified in subdivision 2. Except as provided in this section, the <br/>
<a id="pl.86.22"></a><var>86.22</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.86.23"></a><var>86.23</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.86.24"></a><var>86.24</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivision <br/>
<a id="pl.86.25"></a><var>86.25</var>1 must be used by the city to pay the cost of collecting the taxes and to pay all or part of the <br/>
<a id="pl.86.26"></a><var>86.26</var>capital and administrative costs for the reconstruction of public facilities that need to be <br/>
<a id="pl.86.27"></a><var>86.27</var>relocated in conjunction with the city's flood control project. Authorized expenses include, <br/>
<a id="pl.86.28"></a><var>86.28</var>but are not limited to, acquiring property and paying construction expenses related to these <br/>
<a id="pl.86.29"></a><var>86.29</var>facilities and improvements, and paying debt service on bonds or other obligations issued <br/>
<a id="pl.86.30"></a><var>86.30</var>to finance acquisition, development, and construction of these facilities and improvements. <br/>
<a id="pl.86.31"></a><var>86.31</var>The total amount of revenues that the city may raise under subdivision 1 to finance these <br/>
<a id="pl.86.32"></a><var>86.32</var>projects is limited to no more than $10,000,000 plus any associated bond costs.<br/>
<a id="pl.86.33"></a><var>86.33</var>    Subd. 3. <b>Bonding authority.</b> Pursuant to the approval of the city voters to impose <br/>
<a id="pl.86.34"></a><var>86.34</var>the tax authorized under subdivision 1, the city may issue, without an additional election, <br/>
<a id="pl.86.35"></a><var>86.35</var>general obligation bonds of the city in an amount not to exceed $10,000,000 to pay <br/>
<a id="pl.87.1"></a><var>87.1</var>capital and administrative expenses for the projects described in subdivision 2. The debt <br/>
<a id="pl.87.2"></a><var>87.2</var>represented by the bonds is not included in computing any debt limitation applicable to the <br/>
<a id="pl.87.3"></a><var>87.3</var>city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of <br/>
<a id="pl.87.4"></a><var>87.4</var>and interest on the bonds is not subject to any levy limitation or be included in computing <br/>
<a id="pl.87.5"></a><var>87.5</var>or applying any levy limitation applicable to the city.<br/>
<a id="pl.87.6"></a><var>87.6</var>    Subd. 4. <b>Termination of taxes.</b> The taxes imposed under subdivision 1 expire when <br/>
<a id="pl.87.7"></a><var>87.7</var>the Crookston city council determines that the amount of revenues received from the taxes <br/>
<a id="pl.87.8"></a><var>87.8</var>to finance the project described in subdivision 2 first equals or exceeds the amount spent <br/>
<a id="pl.87.9"></a><var>87.9</var>directly on the projects in subdivision 2, plus the additional amount needed to pay the <br/>
<a id="pl.87.10"></a><var>87.10</var>costs related to issuance of bonds under subdivision 3, including interest on the bonds. <br/>
<a id="pl.87.11"></a><var>87.11</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.87.12"></a><var>87.12</var>bonds may be placed in the general fund of the city. The taxes imposed under subdivision <br/>
<a id="pl.87.13"></a><var>87.13</var>1 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.87.14"></a><var>87.14</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.87.15"></a><var>87.15</var>the city of Crookston and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.87.16"></a><var>87.16</var>645.021, subdivisions 2 and 3. <br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.87.17"></a><var>87.17</var>    Sec. 5. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.87.18"></a><var>87.18</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.87.19"></a><var>87.19</var>section 477A.016, or any other provision of law, ordinance, or city charter pursuant to <br/>
<a id="pl.87.20"></a><var>87.20</var>the approval of the voters on November 7, 2006, and pursuant to Minnesota Statutes, <br/>
<a id="pl.87.21"></a><var>87.21</var>section 297A.99, the city of North Mankato may impose by ordinance a sales and use tax <br/>
<a id="pl.87.22"></a><var>87.22</var>of one-half of one percent for the purposes specified in subdivision 2. The provisions of <br/>
<a id="pl.87.23"></a><var>87.23</var>Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, <br/>
<a id="pl.87.24"></a><var>87.24</var>and enforcement of the taxes authorized under this subdivision. <br/>
<a id="pl.87.25"></a><var>87.25</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by <br/>
<a id="pl.87.26"></a><var>87.26</var>subdivision 1 must be used to pay all or part of the capital costs of the following projects: <br/>
<a id="pl.87.27"></a><var>87.27</var>    (1) the local share of the Trunk Highway 14/County State Aid Highway 41 <br/>
<a id="pl.87.28"></a><var>87.28</var>interchange project;<br/>
<a id="pl.87.29"></a><var>87.29</var>    (2) development of regional parks and hiking and biking trails;<br/>
<a id="pl.87.30"></a><var>87.30</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.87.31"></a><var>87.31</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.87.32"></a><var>87.32</var>    (5) lake improvement projects.<br/>
<a id="pl.87.33"></a><var>87.33</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund <br/>
<a id="pl.87.34"></a><var>87.34</var>these projects is $6,000,000 plus any associated bond costs.<br/>
<a id="pl.88.1"></a><var>88.1</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the <br/>
<a id="pl.88.2"></a><var>88.2</var>voters at the November 7, 2006, referendum authorizing the imposition of the taxes in <br/>
<a id="pl.88.3"></a><var>88.3</var>this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and <br/>
<a id="pl.88.4"></a><var>88.4</var>administrative expenses for the projects described in subdivision 2, in an amount that <br/>
<a id="pl.88.5"></a><var>88.5</var>does not exceed $6,000,000. A separate election to approve the bonds under Minnesota <br/>
<a id="pl.88.6"></a><var>88.6</var>Statutes, section 475.58, is not required.<br/>
<a id="pl.88.7"></a><var>88.7</var>    (b) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.88.8"></a><var>88.8</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br/>
<a id="pl.88.9"></a><var>88.9</var>475.61, to pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.88.10"></a><var>88.10</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires <br/>
<a id="pl.88.11"></a><var>88.11</var>when the city council determines that the amount of revenues received from the taxes <br/>
<a id="pl.88.12"></a><var>88.12</var>to pay for the projects under subdivision 2 first equals or exceeds $6,000,000 plus the <br/>
<a id="pl.88.13"></a><var>88.13</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.88.14"></a><var>88.14</var>3, including interest on the bonds. Any funds remaining after completion of the projects <br/>
<a id="pl.88.15"></a><var>88.15</var>and retirement or redemption of the bonds must be placed in a capital facilities and <br/>
<a id="pl.88.16"></a><var>88.16</var>equipment replacement fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.88.17"></a><var>88.17</var>at an earlier time if the city so determines by ordinance. <br/>
<a id="pl.88.18"></a><var>88.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.88.19"></a><var>88.19</var>governing body of the city of North Mankato with Minnesota Statutes, section 645.021, <br/>
<a id="pl.88.20"></a><var>88.20</var>subdivision 3.<br/>