1.1 	A bill for an act
1.2 	relating to taxation; abolishing levy limits; eliminating truth-in-taxation hearing 
1.3 	requirements and temporarily suspending advertising requirements; modifying 
1.4 	publication correction requirements; increasing the property tax amount for 
1.5 	which installment payments may be made;amending Minnesota Statutes 
1.6 	2008, sections 123B.10, subdivision 1; 275.065, subdivisions 3, 5a, 6; 275.16; 
1.7 	275.62, subdivision 1; 279.01, subdivision 1; 279.10; 375.194, subdivision 
1.8 	5; 383A.75, subdivision 3; 446A.086, subdivision 8; 465.719, subdivision 9; 
1.9 	473.13, subdivision 1; 473.167, subdivision 3; 473.249, subdivision 1; 473.253, 
1.10 	subdivision 1; repealing Minnesota Statutes 2008, sections 275.065, subdivisions 
1.11 	6b, 6c, 8, 9, 10; 275.70; 275.71; 275.72; 275.73; 275.74; 275.75.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
1.14 		Subdivision 1.Budgets; form of notification. (a) Every board must publish revenue 
1.15 	and expenditure budgets for the current year and the actual revenues, expenditures, fund 
1.16 	balances for the prior year and projected fund balances for the current year in a form 
1.17 	prescribed by the commissioner within one week of the acceptance of the final audit by 
1.18 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
1.19 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
1.20 	(b) A school board annually must notify the public of its revenue, expenditures, fund 
1.21 	balances, and other relevant budget information. The board must include the budget 
1.22 	information required by this section in the materials provided as a part of its truth in 
1.23 	taxation hearing, post the materials in a conspicuous place on the district's official Web 
1.24 	site, including a link to the district's school report card on the Department of Education's 
1.25 	Web site, and publish the information in a qualified newspaper of general circulation 
1.26 	in the district.

2.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
2.2 	thereafter.

2.3 	Sec. 2. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:
2.4 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
2.5 	and the county treasurer shall deliver after November 10 and on or before November 24 
2.6 	each year, by first class mail to each taxpayer at the address listed on the county's current 
2.7 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
2.8 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
2.9 	instead of on paper or by ordinary mail.
2.10 	(b) The commissioner of revenue shall prescribe the form of the notice.
2.11 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
2.12 	each taxing authority proposes to collect for taxes payable the following year. In the 
2.13 	case of a town, or in the case of the state general tax, the final tax amount will be its 
2.14 	proposed tax. In the case of taxing authorities required to hold a public meeting under 
2.15 	subdivision 6, the notice must clearly state that each taxing authority, including regional 
2.16 	library districts established under section 134.201, and including the metropolitan taxing 
2.17 	districts as defined in paragraph (i), but excluding all other special taxing districts and 
2.18 	towns, will hold a public meeting to receive public testimony on the proposed budget and 
2.19 	proposed or final property tax levy, or, in case of a school district, on the current budget 
2.20 	and proposed property tax levy.The notice must clearly state for each city, county, school 
2.21 	district, regional library authority established under section 134.201, and metropolitan 
2.22 	taxing districts as defined in paragraph (i), the time and place of the taxing authorities' 
2.23 	regularly scheduled meetings in which the budget and levy will be discussed and the final 
2.24 	budget and levy determined. The taxing authorities must provide the county auditor with 
2.25 	the information to be included in the notice. It must clearly state the time and place of 
2.26 	each taxing authority's meeting, provide a telephone number for the taxing authority that 
2.27 	taxpayers may call if they have questions related to the notice, and an address where 
2.28 	comments will be received by mail.
2.29 	(d) The notice must state for each parcel:
2.30 	(1) the market value of the property as determined under section 273.11, and used 
2.31 	for computing property taxes payable in the following year and for taxes payable in the 
2.32 	current year as each appears in the records of the county assessor on November 1 of the 
2.33 	current year; and, in the case of residential property, whether the property is classified as 
2.34 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
2.35 	which the market values apply and that the values are final values;
3.1 	(2) the items listed below, shown separately by county, city or town, and state general 
3.2 	tax, net of the residential and agricultural homestead credit under section 273.1384, voter 
3.3 	approved school levy, other local school levy, and the sum of the special taxing districts, 
3.4 	and as a total of all taxing authorities:
3.5 	(i) the actual tax for taxes payable in the current year; and
3.6 	(ii) the proposed tax amount.
3.7 	If the county levy under clause (2) includes an amount for a lake improvement 
3.8 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
3.9 	purpose must be separately stated from the remaining county levy amount.
3.10 	In the case of a town or the state general tax, the final tax shall also be its proposed 
3.11 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
3.12 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
3.13 	be held in the school district at the November general election, the county auditor must 
3.14 	note next to the school district's proposed amount that a referendum is pending and that, if 
3.15 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
3.16 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
3.17 	listed separately from the remaining amount of the city's levy. In the case of the city of 
3.18 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
3.19 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
3.20 	under section 134.07 may be listed separately from the remaining amount of the county's 
3.21 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
3.22 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
3.23 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
3.24 	separately and not included in the sum of the special taxing districts; and
3.25 	(3) the increase or decrease between the total taxes payable in the current year and 
3.26 	the total proposed taxes, expressed as a percentage.
3.27 	For purposes of this section, the amount of the tax on homesteads qualifying under 
3.28 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
3.29 	of property tax before subtraction of the deferred property tax amount.
3.30 	(e) The notice must clearly state that the proposed or final taxes do not include 
3.31 	the following:
3.32 	(1) special assessments;
3.33 	(2) levies approved by the voters after the date the proposed taxes are certified, 
3.34 	including bond referenda and school district levy referenda;
3.35 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
3.36 	Monday in November of the levy year as provided under section 275.73;
4.1 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
4.2 	occurring after the date the proposed taxes are certified;
4.3 	(5) (4) amounts necessary to pay tort judgments against the taxing authority that 
4.4 	become final after the date the proposed taxes are certified; and
4.5 	(6) (5) the contamination tax imposed on properties which received market value 
4.6 	reductions for contamination.
4.7 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
4.8 	the county treasurer to deliver the notice as required in this section does not invalidate the 
4.9 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
4.10 	(g) If the notice the taxpayer receives under this section lists the property as 
4.11 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
4.12 	applicable deadline, and the property qualifies for the homestead classification in that 
4.13 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
4.14 	in the following year.
4.15 	(h) In the case of class 4 residential property used as a residence for lease or rental 
4.16 	periods of 30 days or more, the taxpayer must either:
4.17 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
4.18 	renter, or lessee; or
4.19 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
4.20 	The notice must be mailed or posted by the taxpayer by November 27 or within 
4.21 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
4.22 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
4.23 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
4.24 	(i) For purposes of this subdivision, subdivisions and subdivision 5a and 6, 
4.25 	"metropolitan special taxing districts" means the following taxing districts in the 
4.26 	seven-county metropolitan area that levy a property tax for any of the specified purposes 
4.27 	listed below:
4.28 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
4.29 	473.446, 473.521, 473.547, or 473.834;
4.30 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
4.31 	and 
4.32 	(3) Metropolitan Mosquito Control Commission under section 473.711.
4.33 	For purposes of this section, any levies made by the regional rail authorities in the 
4.34 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
4.35 	398A shall be included with the appropriate county's levy and shall be discussed at that 
4.36 	county's public hearing.
5.1 	(j) The governing body of a county, city, or school district may, with the consent 
5.2 	of the county board, include supplemental information with the statement of proposed 
5.3 	property taxes about the impact of state aid increases or decreases on property tax 
5.4 	increases or decreases and on the level of services provided in the affected jurisdiction. 
5.5 	This supplemental information may include information for the following year, the current 
5.6 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
5.7 	body of the county, city, or school district. It may include only information regarding:
5.8 	(1) the impact of inflation as measured by the implicit price deflator for state and 
5.9 	local government purchases;
5.10 	(2) population growth and decline;
5.11 	(3) state or federal government action; and
5.12 	(4) other financial factors that affect the level of property taxation and local services 
5.13 	that the governing body of the county, city, or school district may deem appropriate to 
5.14 	include.
5.15 	The information may be presented using tables, written narrative, and graphic 
5.16 	representations and may contain instruction toward further sources of information or 
5.17 	opportunity for comment.

5.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
5.19 	thereafter.

5.20 	Sec. 3. Minnesota Statutes 2008, section 275.065, subdivision 5a, is amended to read:
5.21 		Subd. 5a.Public advertisement. (a) Except for property taxes levied in 2009 and 
5.22 	2010, a city that has a population of more than 2,500, county, a metropolitan special taxing 
5.23 	district as defined in subdivision 3, paragraph (i), a regional library district established 
5.24 	under section 134.201, or school district shall advertise in a newspaper a notice of its 
5.25 	intent to adopt a budget and property tax levy or, in the case of a school district, to review 
5.26 	its current budget and proposed property taxes payable in the following year, at a public 
5.27 	hearing, if a public hearing is required under subdivision 6. The notice must be published 
5.28 	not less than two business days nor more than six business days before the hearing.
5.29 	The advertisement must be at least one-eighth page in size of a standard-size or a 
5.30 	tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper 
5.31 	where legal notices and classified advertisements appear. The advertisement must be 
5.32 	published in an official newspaper of general circulation in the taxing authority. The 
5.33 	newspaper selected must be one of general interest and readership in the community, and 
5.34 	not one of limited subject matter. The advertisement must appear in a newspaper that is 
5.35 	published at least once per week.
6.1 	For purposes of this section, the metropolitan special taxing district's advertisement 
6.2 	must only be published in the Minneapolis Star and Tribune and the Saint Paul Pioneer 
6.3 	Press.
6.4 	In addition to other requirements, a county and a city having a population of 
6.5 	more than 2,500 must show in the public advertisement required under this subdivision 
6.6 	the current local tax rate, the proposed local tax rate if no property tax levy increase 
6.7 	is adopted, and the proposed rate if the proposed levy is adopted. For purposes of this 
6.8 	subdivision, "local tax rate" means the city's or county's net tax capacity levy divided by 
6.9 	the city's or county's taxable net tax capacity.
6.10 	(b) Subject to the provisions of paragraph (g), the advertisement for school districts, 
6.11 	metropolitan special taxing districts, and regional library districts must be in the following 
6.12 	form, except that the notice for a school district may include references to the current 
6.13 	budget in regard to proposed property taxes.
6.14 	"NOTICE OF
6.15 	PROPOSED PROPERTY TAXES
6.16 	(School District/Metropolitan
6.17 	Special Taxing District/Regional
6.18 	Library District) of .........
6.19 	The governing body of ........ will soon hold budget hearings and vote on the property 
6.20 	taxes for (metropolitan special taxing district/regional library district services that will be 
6.21 	provided in (year)/school district services that will be provided in (year) and (year)).
6.22 	NOTICE OF PUBLIC HEARING:
6.23 	All concerned citizens are invited to attend a public hearing and express their opinions 
6.24 	on the proposed (school district/metropolitan special taxing district/regional library 
6.25 	district) budget and property taxes, or in the case of a school district, its current budget 
6.26 	and proposed property taxes, payable in the following year. The hearing will be held on 
6.27 	(Month/Day/Year) at (Time) at (Location, Address)."
6.28 	(c) Subject to the provisions of paragraph (g), the advertisement for cities and 
6.29 	counties must be in the following form.
6.30 	"NOTICE OF PROPOSED
6.31 	TOTAL BUDGET AND PROPERTY TAXES
6.32 	The (city/county) governing body or board of commissioners will hold a public hearing to 
6.33 	discuss the budget and to vote on the amount of property taxes to collect for services the 
6.34 	(city/county) will provide in (year).
6.35 	SPENDING: The total budget amounts below compare (city's/county's) (year) total actual 
6.36 	budget with the amount the (city/county) proposes to spend in (year).

7.1
7.2	(Year) Total Actual
Budget
	Proposed (Year) Budget
	Change from 
(Year)-(Year)
	
7.3		$
........			$
........			.....%
		
7.4 	TAXES: The property tax amounts below compare that portion of the current budget 
7.5 	levied in property taxes in (city/county) for (year) with the property taxes the (city/county) 
7.6 	proposes to collect in (year). 

7.7
7.8	(Year) Property Taxes
	Proposed (Year) Property
Taxes
	Change from 
(Year)-(Year)
	
7.9		$
........			$
........			.....%
		
7.10 	LOCAL TAX RATE COMPARISON: The current local tax rate, the local tax rate if no tax 
7.11 	levy increase is adopted, and the proposed local tax rate if the proposed levy is adopted.

7.12
7.13	(Year) Tax Rate
	(Year) Tax Rate if NO 
Levy Increase
	(Year) Proposed Tax
Rate
	
7.14		........
			........
			........
		
7.15 	ATTEND THE PUBLIC HEARING
7.16 	All (city/county) residents are invited to attend the public hearing of the (city/county) to 
7.17 	express your opinions on the budget and the proposed amount of (year) property taxes. 
7.18 	The hearing will be held on:
7.19 	(Month/Day/Year/Time)
7.20 	(Location/Address)
7.21 	If the discussion of the budget cannot be completed, a time and place for continuing the 
7.22 	discussion will be announced at the hearing. You are also invited to send your written 
7.23 	comments to:
7.24 	(City/County)
7.25 	(Location/Address)"
7.26 	(d) For purposes of this subdivision, the budget amounts listed on the advertisement 
7.27 	mean:
7.28 	(1) for cities, the total government fund expenditures, as defined by the state auditor 
7.29 	under section 471.6965, less any expenditures for improvements or services that are 
7.30 	specially assessed or charged under chapter 429, 430, 435, or the provisions of any other 
7.31 	law or charter; and
7.32 	(2) for counties, the total government fund expenditures, as defined by the state 
7.33 	auditor under section 375.169, less any expenditures for direct payments to recipients or 
7.34 	providers for the human service aids listed below:
7.35 	(i) Minnesota family investment program under chapters 256J and 256K;
7.36 	(ii) medical assistance under sections 256B.041, subdivision 5, and 256B.19, 
7.37 	subdivision 1;
8.1 	(iii) general assistance medical care under section 256D.03, subdivision 6;
8.2 	(iv) general assistance under section 256D.03, subdivision 2;
8.3 	(v) Minnesota supplemental aid under section 256D.36, subdivision 1;
8.4 	(vi) preadmission screening under section 256B.0911, and alternative care grants 
8.5 	under section  256B.0913;
8.6 	(vii) general assistance medical care claims processing, medical transportation and 
8.7 	related costs under section 256D.03, subdivision 4;
8.8 	(viii) medical transportation and related costs under section 256B.0625, subdivisions 
8.9 	17 to 18a;
8.10 	(ix) group residential housing under section 256I.05, subdivision 8, transferred 
8.11 	from programs in clauses (iv) and (v); or
8.12 	(x) any successor programs to those listed in clauses (i) to (ix).
8.13 	(e) A city with a population of over 500 but not more than 2,500 that is required to 
8.14 	hold a public hearing under subdivision 6 must advertise by posted notice as defined in 
8.15 	section 645.12, subdivision 1. The advertisement must be posted at the time provided in 
8.16 	paragraph (a). It must be in the form required in paragraph (b).
8.17 	(f) For purposes of this subdivision, the population of a city is the most recent 
8.18 	population as determined by the state demographer under section 4A.02.
8.19 	(g) The commissioner of revenue shall annually prescribe the specific form and 
8.20 	format of the advertisements required under this subdivision, including such details as 
8.21 	font size and style, and spacing for the required items. The commissioner may prescribe 
8.22 	alternate and additional language for the advertisement for a taxing authority or for groups 
8.23 	of taxing authorities. At least two weeks before November 29 each year, the commissioner 
8.24 	shall provide a copy of the prescribed advertisements to the chairs of the committees of 
8.25 	the house of representatives and the senate with jurisdiction over taxes.

8.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.27 	Sec. 4. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
8.28 		Subd. 6.Public hearing; Adoption of budget and levy. (a) For purposes of this 
8.29 	section, the following terms shall have the meanings given:
8.30 	(1) "Initial hearing" means the first and primary hearing held to discuss the taxing 
8.31 	authority's proposed budget and proposed property tax levy for taxes payable in the 
8.32 	following year, or, for school districts, the current budget and the proposed property tax 
8.33 	levy for taxes payable in the following year.
8.34 	(2) "Continuation hearing" means a hearing held to complete the initial hearing, if 
8.35 	the initial hearing is not completed on its scheduled date.
9.1 	(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final 
9.2 	property tax levy, and, in the case of taxing authorities other than school districts, the final 
9.3 	budget, for taxes payable in the following year.
9.4 	(b) Between November 29 and December 20, the governing bodies of a city that has a 
9.5 	population over 500, county, metropolitan special taxing districts as defined in subdivision 
9.6 	3, paragraph (i), and regional library districts shall each hold an initial public hearing 
9.7 	to discuss and seek public comment on its final budget and property tax levy for taxes 
9.8 	payable in the following year, and the governing body of the school district shall hold an 
9.9 	initial public hearing to review its current budget and proposed property tax levy for taxes 
9.10 	payable in the following year. The metropolitan special taxing districts shall be required to 
9.11 	hold only a single joint initial public hearing, the location of which will be determined by 
9.12 	the affected metropolitan agencies. A city, county, metropolitan special taxing district as 
9.13 	defined in subdivision 3, paragraph (i), regional library district established under section 
9.14 	134.201, or school district is not required to hold a public hearing under this subdivision 
9.15 	unless its proposed property tax levy for taxes payable in the following year, as certified 
9.16 	under subdivision 1, has increased over its final property tax levy for taxes payable in the 
9.17 	current year by a percentage that is greater than the percentage increase in the implicit 
9.18 	price deflator for government consumption expenditures and gross investment for state 
9.19 	and local governments prepared by the Bureau of Economic Analysts of the United States 
9.20 	Department of Commerce for the 12-month period ending March 31 of the current year.
9.21 	(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than 
9.22 	Saturday. No initial hearing may be held on a Sunday.
9.23 	(d) At the initial hearing under this subdivision, the percentage increase in property 
9.24 	taxes proposed by the taxing authority, if any, and the specific purposes for which property 
9.25 	tax revenues are being increased must be discussed. During the discussion, the governing 
9.26 	body shall hear comments regarding a proposed increase and explain the reasons for the 
9.27 	proposed increase. The public shall be allowed to speak and to ask questions. At the public 
9.28 	hearing, the school district must also provide and discuss information on the distribution 
9.29 	of its revenues by revenue source, and the distribution of its spending by program area.
9.30 	(e) If the initial hearing is not completed on its scheduled date, the taxing authority 
9.31 	must announce, prior to adjournment of the hearing, the date, time, and place for the 
9.32 	continuation of the hearing. The continuation hearing must be held at least five business 
9.33 	days but no more than 14 business days after the initial hearing. A continuation hearing 
9.34 	may not be held later than December 20 except as provided in paragraphs (f) and (g). 
9.35 	A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than 
9.36 	Saturday. No continuation hearing may be held on a Sunday.
10.1 	(f) The governing body of a county shall hold its initial hearing on the first Thursday 
10.2 	in December each year, and may hold additional initial hearings on other dates before 
10.3 	December 20 if necessary for the convenience of county residents. If the county needs a 
10.4 	continuation of its hearing, the continuation hearing shall be held on the third Tuesday 
10.5 	in December. If the third Tuesday in December falls on December 21, the county's 
10.6 	continuation hearing shall be held on Monday, December 20.
10.7 	(g) The metropolitan special taxing districts shall hold a joint initial public hearing 
10.8 	on the first Wednesday of December. A continuation hearing, if necessary, shall be held on 
10.9 	the second Wednesday of December even if that second Wednesday is after December 10.
10.10 	(h) The county auditor shall provide for the coordination of initial and continuation 
10.11 	hearing dates for all school districts and cities within the county to prevent conflicts under 
10.12 	clauses (i) and (j).
10.13 	(i) By August 10, each school board and the board of the regional library district 
10.14 	shall certify to the county auditors of the counties in which the school district or regional 
10.15 	library district is located the dates on which it elects to hold its initial hearing and any 
10.16 	continuation hearing. If a school board or regional library district does not certify these 
10.17 	dates by August 10, the auditor will assign the initial and continuation hearing dates. The 
10.18 	dates elected or assigned must not conflict with the initial and continuation hearing dates 
10.19 	of the county or the metropolitan special taxing districts.
10.20 	(j) By August 20, the county auditor shall notify the clerks of the cities within the 
10.21 	county of the dates on which school districts and regional library districts have elected to 
10.22 	hold their initial and continuation hearings. At the time a city certifies its proposed levy 
10.23 	under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and 
10.24 	any continuation hearing. Until September 15, the first and second Mondays of December 
10.25 	are reserved for the use of the cities. If a city does not certify its hearing dates by 
10.26 	September 15, the auditor shall assign the initial and continuation hearing dates. The dates 
10.27 	elected or assigned for the initial hearing must not conflict with the initial hearing dates 
10.28 	of the county, metropolitan special taxing districts, regional library districts, or school 
10.29 	districts within which the city is located. To the extent possible, the dates of the city's 
10.30 	continuation hearing should not conflict with the continuation hearing dates of the county, 
10.31 	metropolitan special taxing districts, regional library districts, or school districts within 
10.32 	which the city is located. This paragraph does not apply to cities of 500 population or less.
10.33 	(k) The county initial hearing date and the city, metropolitan special taxing district, 
10.34 	regional library district, and school district initial hearing dates must be designated on 
10.35 	the notices required under subdivision 3. The continuation hearing dates need not be 
10.36 	stated on the notices.
11.1 	(l) At a subsequent hearing, each county, school district, city over 500 population, 
11.2 	and metropolitan special taxing district may amend its proposed property tax levy 
11.3 	and must adopt a final property tax levy. Each county, city over 500 population, and 
11.4 	metropolitan special taxing district may also amend its proposed budget and must adopt a 
11.5 	final budget at the subsequent hearing. The final property tax levy must be adopted prior 
11.6 	to adopting the final budget. A school district is not required to adopt its final budget at the 
11.7 	subsequent hearing. The subsequent hearing of a taxing authority must be held on a date 
11.8 	subsequent to the date of the taxing authority's initial public hearing. If a continuation 
11.9 	hearing is held, the subsequent hearing must be held either immediately following the 
11.10 	continuation hearing or on a date subsequent to the continuation hearing. The subsequent 
11.11 	hearing may be held at a regularly scheduled board or council meeting or at a special 
11.12 	meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing 
11.13 	of a taxing authority does not have to be coordinated by the county auditor to prevent a 
11.14 	conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any 
11.15 	other taxing authority. All subsequent hearings must be held prior to five working days 
11.16 	after December 20 of the levy year. The date, time, and place of the subsequent hearing 
11.17 	must be announced at the initial public hearing or at the continuation hearing.
11.18 	(m) (a) The property tax levy certified under section 275.07 by a city of any 
11.19 	population, county, metropolitan special taxing district, regional library district, or school 
11.20 	district must not exceed the proposed levy determined under subdivision 1, except by an 
11.21 	amount up to the sum of the following amounts:
11.22 	(1) the amount of a school district levy whose voters approved a referendum to 
11.23 	increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after 
11.24 	the proposed levy was certified;
11.25 	(2) the amount of a city or county levy approved by the voters after the proposed 
11.26 	levy was certified;
11.27 	(3) the amount of a levy to pay principal and interest on bonds approved by the 
11.28 	voters under section 475.58 after the proposed levy was certified;
11.29 	(4) the amount of a levy to pay costs due to a natural disaster occurring after the 
11.30 	proposed levy was certified, if that amount is approved by the commissioner of revenue 
11.31 	under subdivision 6a;
11.32 	(5) the amount of a levy to pay tort judgments against a taxing authority that become 
11.33 	final after the proposed levy was certified, if the amount is approved by the commissioner 
11.34 	of revenue under subdivision 6a;
12.1 	(6) the amount of an increase in levy limits certified to the taxing authority by the 
12.2 	commissioner of education or the commissioner of revenue after the proposed levy was 
12.3 	certified; and
12.4 	(7) the amount required under section 126C.55.
12.5 	(n) (b) This subdivision does not apply to towns and special taxing districts other 
12.6 	than regional library districts and metropolitan special taxing districts.
12.7 	(o) (c) Notwithstanding the requirements of this section, the employer is required to 
12.8 	meet and negotiate over employee compensation as provided for in chapter 179A.

12.9 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
12.10 	thereafter.

12.11 	Sec. 5. Minnesota Statutes 2008, section 275.16, is amended to read:
12.12 	275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.
12.13 	If any such municipality shall return to the county auditor a levy greater than 
12.14 	permitted by chapters 123A, 123B, 124D, 126C, and 136C, and sections 275.124 to 
12.15 	275.16, and 275.70 to 275.74, such county auditor shall extend only such amount of 
12.16 	taxes as the limitations herein prescribed will permit; provided, if such levy shall include 
12.17 	any levy for the payment of bonded indebtedness or judgments, such levies for bonded 
12.18 	indebtedness or judgments shall be extended in full, and the remainder of the levies shall 
12.19 	be reduced so that the total thereof, including levies for bonds and judgments, shall not 
12.20 	exceed such amount as the limitations herein prescribed will permit.

12.21 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable 
12.22 	in 2010, and thereafter.

12.23 	Sec. 6. Minnesota Statutes 2008, section 275.62, subdivision 1, is amended to read:
12.24 		Subdivision 1.Report on taxes levied. The commissioner of revenue shall establish 
12.25 	procedures for the annual reporting of local government levies. Each local governmental 
12.26 	unit shall submit a report to the commissioner by December 30 of the year in which the 
12.27 	tax is levied. The report shall include, but is not limited to, information on the amount of 
12.28 	the tax levied by the governmental unit for the following purposes:
12.29 	(1) social services and related programs, which include taxes levied for the purposes 
12.30 	defined in Minnesota Statutes 1991 Supplement, section 275.50, subdivision 5, clauses 
12.31 	(a), (j), and (v);  
12.32 	(2) the amounts levied for each of the purposes listed in Minnesota Statutes 2008, 
12.33 	section 275.70, subdivision 5; and  
13.1 	(3) other levies, which include the taxes levied for all purposes not included in 
13.2 	clause (1), (2), or (3).

13.3 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable 
13.4 	in 2010, and thereafter.

13.5 	Sec. 7. Minnesota Statutes 2008, section 279.01, subdivision 1, is amended to read:
13.6 		Subdivision 1. Due dates; penalties. Except as provided in subdivision 3 or 4, on 
13.7 	May 16 or 21 days after the postmark date on the envelope containing the property tax 
13.8 	statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid 
13.9 	taxes on real estate on the current lists in the hands of the county treasurer. The penalty is 
13.10 	at a rate of two percent on homestead property until May 31 and four percent on June 1. 
13.11 	The penalty on nonhomestead property is at a rate of four percent until May 31 and eight 
13.12 	percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after 
13.13 	the postmark date on the envelope containing the property tax statements, whichever is 
13.14 	later, on commercial use real property used for seasonal residential recreational purposes 
13.15 	and classified as class 1c or 4c, and on other commercial use real property classified as 
13.16 	class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 
13.17 	class 3a property is earned during the months of May, June, July, and August. In order for 
13.18 	the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 
13.19 	or 21 days after the postmark date on the envelope containing the property tax statement, 
13.20 	whichever is later, without penalty, the owner of the property must attach an affidavit to the 
13.21 	payment attesting to compliance with the income provision of this subdivision. Thereafter, 
13.22 	for both homestead and nonhomestead property, on the first day of each month beginning 
13.23 	July 1, up to and including October 1 following, an additional penalty of one percent for 
13.24 	each month accrues and is charged on all such unpaid taxes provided that if the due date 
13.25 	was extended beyond May 15 as the result of any delay in mailing property tax statements 
13.26 	no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is 
13.27 	not paid by the extended due date, then all penalties that would have accrued if the due 
13.28 	date had been May 15 shall be charged. When the taxes against any tract or lot exceed 
13.29 	$50 $250, one-half thereof may be paid prior to May 16 or 21 days after the postmark 
13.30 	date on the envelope containing the property tax statement, whichever is later; and, if so 
13.31 	paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 
13.32 	16 following, without penalty; but, if not so paid, then a penalty of two percent accrues 
13.33 	thereon for homestead property and a penalty of four percent on nonhomestead property. 
13.34 	Thereafter, for homestead property, on the first day of November an additional penalty of 
13.35 	four percent accrues and on the first day of December following, an additional penalty of 
14.1 	two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 
14.2 	property, on the first day of November and December following, an additional penalty of 
14.3 	four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 
14.4 	such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 
14.5 	containing the property tax statement, whichever is later, the same may be paid at any time 
14.6 	prior to October 16, with accrued penalties to the date of payment added, and thereupon 
14.7 	no penalty attaches to the remaining one-half until October 16 following. 
14.8 	This section applies to payment of personal property taxes assessed against 
14.9 	improvements to leased property, except as provided by section 277.01, subdivision 3. 
14.10 	A county may provide by resolution that in the case of a property owner that has 
14.11 	multiple tracts or parcels with aggregate taxes exceeding $50 $250, payments may be 
14.12 	made in installments as provided in this subdivision. 
14.13 	The county treasurer may accept payments of more or less than the exact amount of 
14.14 	a tax installment due. Payments must be applied first to the oldest installment that is due 
14.15 	but which has not been fully paid. If the accepted payment is less than the amount due, 
14.16 	payments must be applied first to the penalty accrued for the year or the installment being 
14.17 	paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 
14.18 	payment required as a condition for filing an appeal under section 278.03 or any other law, 
14.19 	nor does it affect the order of payment of delinquent taxes under section 280.39. 

14.20 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
14.21 	thereafter.

14.22 	Sec. 8. Minnesota Statutes 2008, section 279.10, is amended to read:
14.23 	279.10 PUBLICATION CORRECTED.
14.24 	Immediately after preparing forms for printing such notice and list, and at least five 
14.25 	days before the first day for the publication thereof, every such publisher shall furnish 
14.26 	proof of the proposed publication to the county auditor for correction. When such the copy 
14.27 	has been corrected, the auditor shall return the same it to the printer, who shall publish it 
14.28 	as corrected. On the first day on which such the notice and list are published, the publisher 
14.29 	shall mail a copy of the newspaper containing the same the notice and list to the auditor. If 
14.30 	during the publication of the notice and list, or within ten days after the last publication 
14.31 	thereof, the auditor shall discover discovers that such the publication is invalid contains an 
14.32 	error, the auditor shall forthwith direct the publisher to republish the same as corrected
14.33 	publish the correct information for an additional period of two weeks. The auditor does 
14.34 	not have to direct the publisher to republish the entire list. The publisher, if not neglectful, 
15.1 	shall be is entitled to the same compensation as allowed by law for the original publication
15.2 	of the corrected information, but shall receive no further compensation therefor if such
15.3 	the republication is necessary by reason of the neglect of the publisher.

15.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.5 	Sec. 9. Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:
15.6 		Subd. 5.Determination of county tax rate. The eligible county's proposed and 
15.7 	final tax rates shall be determined by dividing the certified levy by the total taxable net tax 
15.8 	capacity, without regard to any abatements granted under this section. The county board 
15.9 	shall make available the estimated amount of the abatement at the public hearing under 
15.10 	section 275.065, subdivision 6.

15.11 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
15.12 	thereafter.

15.13 	Sec. 10. Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:
15.14 		Subd. 3.Duties. The committee is authorized to and shall meet from time to time 
15.15 	to make appropriate recommendations for the efficient and effective use of property tax 
15.16 	dollars raised by the jurisdictions for programs, buildings, and operations. In addition, 
15.17 	the committee shall:
15.18 	(1) identify trends and factors likely to be driving budget outcomes over the next 
15.19 	five years with recommendations for how the jurisdictions should manage those trends 
15.20 	and factors to increase efficiency and effectiveness;
15.21 	(2) agree, by October 1 of each year, on the appropriate level of overall property tax 
15.22 	levy for the three jurisdictions and publicly report such to the governing bodies of each 
15.23 	jurisdiction for ratification or modification by resolution; and
15.24 	(3) plan for the joint truth-in-taxation hearings under section 275.065, subdivision 
15.25 	8; and  
15.26 	(4) identify, by December 31 of each year, areas of the budget to be targeted in the 
15.27 	coming year for joint review to improve services or achieve efficiencies.
15.28 	In carrying out its duties, the committee shall consult with public employees of 
15.29 	each jurisdiction and with other stakeholders of the city, county, and school district, as 
15.30 	appropriate.

15.31 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
15.32 	thereafter.

16.1 	Sec. 11. Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:
16.2 		Subd. 8.Tax levy for repayment. (a) With the approval of the authority, a 
16.3 	governmental unit may levy in the year the state makes a payment under this section an 
16.4 	amount up to the amount necessary to provide funds for the repayment of the amount paid 
16.5 	by the state plus interest through the date of estimated repayment by the governmental 
16.6 	unit. The proceeds of this levy may be used only for this purpose unless they exceed the 
16.7 	amount actually due. Any excess must be used to repay other state payments made under 
16.8 	this section or must be deposited in the debt redemption fund of the governmental unit. 
16.9 	The amount of aids to be reduced to repay the state are decreased by the amount levied.
16.10 	(b) If the state is not repaid in full for a payment made under this section by 
16.11 	November 30 of the calendar year following the year in which the state makes the 
16.12 	payment, the authority shall require the governmental unit to certify a property tax levy in 
16.13 	an amount up to the amount necessary to provide funds for repayment of the amount paid 
16.14 	by the state plus interest through the date of estimated repayment by the governmental unit. 
16.15 	To prevent undue hardship, the authority may allow the governmental unit to certify the 
16.16 	levy over a five-year period. The proceeds of the levy may be used only for this purpose 
16.17 	unless they are in excess of the amount actually due, in which case the excess must be used 
16.18 	to repay other state payments made under this section or must be deposited in the debt 
16.19 	redemption fund of the governmental unit. If the authority orders the governmental unit to 
16.20 	levy, the amount of aids reduced to repay the state are decreased by the amount levied.
16.21 	(c) A levy under this subdivision is an increase in the levy limits of the governmental 
16.22 	unit for purposes of section 275.065, subdivision 6, and must be explained as a specific 
16.23 	increase at the meeting required under that provision.

16.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
16.25 	thereafter.

16.26 	Sec. 12. Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:
16.27 		Subd. 9.Application of other laws. A corporation created by a political subdivision 
16.28 	under this section must comply with every law that applies to the political subdivision, 
16.29 	as if the corporation is a part of the political subdivision, unless the resolution ratifying 
16.30 	creation of the corporation specifically exempts the corporation from part or all of a law. 
16.31 	If the resolution exempts the corporation from part or all of a law, the resolution must 
16.32 	make a detailed and specific finding as to why the corporation cannot fulfill its purpose if 
16.33 	the corporation is subject to that law. A corporation may not be exempted from chapter 
16.34 	13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records 
16.35 	management, or chapter 13, the Minnesota Government Data Practices Act. Any affected 
17.1 	or interested person may bring an action in district court to void the resolution on the 
17.2 	grounds that the findings are not sufficiently detailed and specific, or that the corporation 
17.3 	can fulfill its purpose if it is subject to the law from which the resolution exempts the 
17.4 	corporation. Laws that apply to a political subdivision that also apply to a corporation 
17.5 	created by a political subdivision under this subdivision include, but are not limited to:  
17.6 	(1) chapter 13D, the Minnesota Open Meeting Law;
17.7 	(2) chapter 13, the Minnesota Government Data Practices Act;
17.8 	(3) section 471.345, the Uniform Municipal Contracting Law;  
17.9 	(4) sections 43A.17, limiting the compensation of employees based on the governor's 
17.10 	salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722, 
17.11 	governing severance pay;  
17.12 	(5) section 275.065, providing for truth-in-taxation hearings. If any tax revenues of 
17.13 	the political subdivision will be appropriated to the corporation, the corporation's annual 
17.14 	operating and capital budgets must be included in the truth-in-taxation hearing of the 
17.15 	political subdivision that created the corporation;  
17.16 	(6) if the corporation issues debt, its debt is included in the political subdivision's 
17.17 	debt limit if it would be included if issued by the political subdivision, and issuance of the 
17.18 	debt is subject to the election and other requirements of chapter 475 and section 471.69;  
17.19 	(7) (6) section 471.895, prohibiting acceptance of gifts from interested parties, and 
17.20 	sections 471.87 to 471.89, relating to interests in contracts;  
17.21 	(8) (7) chapter 466, relating to municipal tort liability;
17.22 	(9) (8) chapter 118A, requiring deposit insurance or bond or pledged collateral for 
17.23 	deposits;
17.24 	(10) (9) chapter 118A, restricting investments;
17.25 	(11) (10) section 471.346, requiring ownership of vehicles to be identified;  
17.26 	(12) (11) sections 471.38 to 471.41, requiring claims to be in writing, itemized, and 
17.27 	approved by the governing board before payment can be made; and  
17.28 	(13) (12) the corporation cannot make advances of pay, make or guarantee loans to 
17.29 	employees, or provide in-kind benefits unless authorized by law.

17.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
17.31 	thereafter.

17.32 	Sec. 13. Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:
17.33 		Subdivision 1.Budget. (a) On or before December 20 of each year, the council, 
17.34 	after the public hearing required in section 275.065, shall adopt a final budget covering its 
17.35 	anticipated receipts and disbursements for the ensuing year and shall decide upon the total 
18.1 	amount necessary to be raised from ad valorem tax levies to meet its budget. The budget 
18.2 	shall state in detail the expenditures for each program to be undertaken, including the 
18.3 	expenses for salaries, consultant services, overhead, travel, printing, and other items. The 
18.4 	budget shall state in detail the capital expenditures of the council for the budget year, based 
18.5 	on a five-year capital program adopted by the council and transmitted to the legislature. 
18.6 	After adoption of the budget and no later than five working days after December 20, the 
18.7 	council shall certify to the auditor of each metropolitan county the share of the tax to be 
18.8 	levied within that county, which must be an amount bearing the same proportion to the 
18.9 	total levy agreed on by the council as the net tax capacity of the county bears to the net tax 
18.10 	capacity of the metropolitan area. The maximum amount of any levy made for the purpose 
18.11 	of this chapter may not exceed the limits set by the statute authorizing the levy.  
18.12 	(b) Each even-numbered year the council shall prepare for its transit programs a 
18.13 	financial plan for the succeeding three calendar years, in half-year segments. The financial 
18.14 	plan must contain schedules of user charges and any changes in user charges planned or 
18.15 	anticipated by the council during the period of the plan. The financial plan must contain a 
18.16 	proposed request for state financial assistance for the succeeding biennium.
18.17 	(c) In addition, the budget must show for each year:
18.18 	(1) the estimated operating revenues from all sources including funds on hand at the 
18.19 	beginning of the year, and estimated expenditures for costs of operation, administration, 
18.20 	maintenance, and debt service;
18.21 	(2) capital improvement funds estimated to be on hand at the beginning of the year 
18.22 	and estimated to be received during the year from all sources and estimated cost of capital 
18.23 	improvements to be paid out or expended during the year, all in such detail and form as 
18.24 	the council may prescribe; and
18.25 	(3) the estimated source and use of pass-through funds.

18.26 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
18.27 	thereafter.

18.28 	Sec. 14. Minnesota Statutes 2008, section 473.167, subdivision 3, is amended to read:
18.29 		Subd. 3.Tax. The council may levy a tax on all taxable property in the metropolitan 
18.30 	area, as defined in section 473.121, to provide funds for loans made pursuant to 
18.31 	subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified 
18.32 	by the council, levied, and collected in the manner provided by section 473.13. The tax 
18.33 	shall be in addition to that authorized by section 473.249 and any other law and shall not 
18.34 	affect the amount or rate of taxes which may be levied by the council or any metropolitan 
18.35 	agency or local governmental unit. The amount of the levy shall be as determined and 
19.1 	certified by the council, provided that the tax levied by the Metropolitan Council for the 
19.2 	right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004 
19.3 	and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in 
19.4 	2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's 
19.5 	property tax levy limitation under this subdivision for the previous year, multiplied by 
19.6 	(2) one plus a percentage equal to the growth in the implicit price deflator as defined 
19.7 	in section 275.70 275.025, subdivision 2.  

19.8 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable 
19.9 	in 2010, and thereafter.

19.10 	Sec. 15. Minnesota Statutes 2008, section 473.249, subdivision 1, is amended to read:
19.11 		Subdivision 1.Indexed limit. (a) The Metropolitan Council may levy a tax on all 
19.12 	taxable property in the metropolitan area defined in section 473.121 to provide funds for 
19.13 	the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other 
19.14 	responsibilities of the council as provided by law. This tax for general purposes shall be 
19.15 	levied and collected in the manner provided by section 473.13.  
19.16 	(b) The property tax levied by the Metropolitan Council for general purposes shall 
19.17 	not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable 
19.18 	in 2005.
19.19 	(c) The property tax levy limitation for general purposes for taxes payable in 2006 
19.20 	and subsequent years shall not exceed the product of: (1) the Metropolitan Council's 
19.21 	property tax levy limitation for general purposes for the previous year determined under 
19.22 	this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit 
19.23 	price deflator as defined in section 275.70 275.025, subdivision 2.  

19.24 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable 
19.25 	in 2010, and thereafter.

19.26 	Sec. 16. Minnesota Statutes 2008, section 473.253, subdivision 1, is amended to read:
19.27 		Subdivision 1.Sources of funds. The council shall credit to the livable communities 
19.28 	demonstration account the revenues provided in this subdivision. This tax shall be levied 
19.29 	and collected in the manner provided by section 473.13. The levy shall not exceed the 
19.30 	following amount for the years specified:  
19.31 	(1) for taxes payable in 2004 and 2005, $8,259,070; and
19.32 	(2) for taxes payable in 2006 and subsequent years, the product of (i) the property 
19.33 	tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a 
20.1 	percentage equal to the growth in the implicit price deflator as defined in section 275.70
20.2 	275.025, subdivision 2.  

20.3 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable 
20.4 	in 2010, and thereafter.

20.5 	Sec. 17.  REPEALER.
 20.6 	(a) Minnesota Statutes 2008, section 275.065, subdivisions 6b, 6c, 8, 9, and 10, are 
20.7 	repealed.
20.8 	(b) Minnesota Statutes 2008, sections 275.70; 275.71; 275.72; 275.73; 275.74; 
20.9 	and 275.75, are repealed.

20.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
20.11 	thereafter.