HF 3408

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to the financing of state and local government; making policy, technical, 1.3administrative, enforcement, clarifying, and other changes to property, local 1.4government aid, local, sales and use, lodging, and other taxes, and tax-related 1.5provisions; property tax reform, accountability, value, and efficiency provisions; 1.6tax forfeited lands; emergency debt certificates; special service districts; 1.7agricultural preserves; providing for a fiscal disparities study; providing 1.8appointments; appropriating money;amending Minnesota Statutes 2008, 1.9sections 270.075, subdivisions 1, 2; 270C.87; 270C.94, subdivision 3; 272.0213; 1.10272.025, subdivisions 1, 3; 272.029, subdivisions 4, 7; 273.113, subdivision 1.113; 273.1231, subdivision 1; 273.1232, subdivision 1; 273.124, subdivisions 1, 1.128, 14; 273.13, subdivision 34; 273.1384, by adding a subdivision; 273.1392; 1.13275.71, subdivisions 4, 5; 276.02; 279.01, subdivision 3; 279.025; 279.37, 1.14subdivision 1; 282.01, subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding 1.15subdivisions; 290B.03, by adding a subdivision; 290B.04, subdivisions 3, 4; 1.16290B.05, subdivision 1; 297A.99, subdivision 1; 428A.12; 428A.18, subdivision 1.172; 473H.05, subdivision 1; Minnesota Statutes 2009 Supplement, sections 1.18134.34, subdivision 4; 273.114, subdivision 2; 273.124, subdivision 3a; 273.13, 1.19subdivisions 23, 25; 275.065, subdivision 3; 275.70, subdivision 5, as amended; 1.20276.04, subdivision 2; 279.01, subdivision 1; 290B.03, subdivision 1; 475.755; 1.21477A.011, subdivision 36, as amended; 477A.013, subdivision 8; Laws 2001, 1.22First Special Session chapter 5, article 3, section 50, as amended; Laws 2002, 1.23chapter 377, article 3, section 25, as amended; Laws 2009, chapter 88, article 2, 1.24section 49; article 4, section 23, subdivision 4; proposing coding for new law in 1.25Minnesota Statutes, chapters 6; 270C; 273; repealing Minnesota Statutes 2008, 1.26sections 282.01, subdivisions 9, 10, 11; 383A.76. 1.27BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.28ARTICLE 1 1.29PROPERTY TAXES 1.30    Section 1. Minnesota Statutes 2008, section 270.075, subdivision 1, is amended to read: 1.31    Subdivision 1. Rate of tax. The commissioner shall determine the rate of tax to be 1.32levied and collected against the net tax capacity as determined pursuant to section 270.074, 2.1subdivision 2 new text begin 3 new text end , to generate revenues sufficient to fund the airflight property tax portion 2.2of each year's state airport fund appropriation, as certified to the commissioner by the 2.3commissioner of transportation. new text begin The certification shall be presented to the commissioner new text end 2.4 new text begin prior to December 31 of each year. new text end The property tax portion of the state airport fund 2.5appropriation is the difference between the total fund appropriation and the estimated total 2.6fund revenues from other sources for the state fiscal year in which the tax is payable. If a 2.7levy amount has not been certified by September 1 of a levy year, the commissioner shall 2.8use the last previous certified amount to determine the rate of tax. new text begin The certification by the new text end 2.9 new text begin commissioner of transportation to the commissioner shall state the total fund appropriation new text end 2.10 new text begin and shall list individually the estimated fund revenues. The difference of these amounts new text end 2.11 new text begin shall be shown as the property tax portion of the state airport fund appropriation. new text end 2.12 new text begin If a levy amount has not been certified by December 31 of a levy year, the new text end 2.13 new text begin commissioner shall use the last previous certified amount to determine the rate of tax, and new text end 2.14 new text begin shall notify the chairs and the ranking minority members of the committees of the house new text end 2.15 new text begin of representatives and senate having jurisdiction over the Department of Transportation new text end 2.16 new text begin that a certification was not made under this subdivision. new text end 2.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 2.18 new text begin thereafter. new text end 2.19    Sec. 2. Minnesota Statutes 2008, section 270.075, subdivision 2, is amended to read: 2.20    Subd. 2. Notice of taxes; payment. As soon as practicable and not later than 2.21December new text begin March new text end 1 next following the levy of the tax, the commissioner shall give actual 2.22notice to the airline company of the net tax capacity and of the tax. The taxes imposed 2.23under sections 270.071 to 270.079 shall become due and payable on January new text begin April new text end 1 2.24following the levy thereof. If any tax is not paid on the due date or, if an appeal is made 2.25pursuant to section 270.076, within 60 days after notice of an increased tax, a late payment 2.26penalty of five percent of the unpaid tax shall be assessed. If the tax remains unpaid for 2.27more than 30 days, an additional penalty of five percent of the unpaid tax is imposed for 2.28each additional 30 days or fraction of 30 days that the tax remains unpaid. The penalty 2.29imposed under this section must not exceed the lesser of $25,000 or 25 percent of the 2.30unpaid tax. The unpaid tax and penalty shall bear interest at the rate specified in section 2.31270C.40 from the time such tax should have been paid until paid. All interest and penalties 2.32shall be added to the tax and collected as a part thereof. 2.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 2.34 new text begin thereafter. new text end 3.1    Sec. 3. Minnesota Statutes 2008, section 272.0213, is amended to read: 3.2272.0213 LEASED SEASONAL-RECREATIONAL LAND. 3.3     new text begin (a) new text end A county board may elect, by resolution, to exempt from taxation, including the 3.4tax under section 273.19, qualified lands. "Qualified lands" for purposes of this section 3.5means property that: 3.6    (1) is owned by a county, city, town, new text begin or new text end the state, or the federal governments; 3.7    (2) is rented by the entity for noncommercial seasonal-recreational or noncommercial 3.8seasonal-recreational residential use; and 3.9    (3) was rented for the purposes specified in clause (2) and was exempt from taxation 3.10for property taxes payable in 2008. 3.11 new text begin (b) Lands owned by the federal government and rented for noncommercial new text end 3.12 new text begin seasonal-recreational or noncommercial seasonal-recreational residential use is exempt new text end 3.13 new text begin from taxation, including the tax under section 273.19. new text end 3.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2011. new text end 3.15    Sec. 4. Minnesota Statutes 2008, section 273.1231, subdivision 1, is amended to read: 3.16    Subdivision 1. Applicability. For purposes of sections 273.1231 to new text begin new text end 3.17 new text begin 273.1236 new text end , the following words, terms, and phrases have the meanings given them in this 3.18section unless the language or context clearly indicates that a different meaning is intended. 3.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2010 and new text end 3.20 new text begin thereafter. new text end 3.21    Sec. 5. Minnesota Statutes 2008, section 273.1232, subdivision 1, is amended to read: 3.22    Subdivision 1. Reassessments required. For the purposes of sections 273.1231 to 3.23273.1235 new text begin 273.1236 new text end , the county assessor must reassess all damaged property in a disaster 3.24or emergency area, except that the commissioner of revenue shall reassess all property 3.25for which an application is submitted to the commissioner under section 273.1233 or 3.26273.1235 . As soon as practical, the assessor or commissioner of revenue must report 3.27the reassessed value to the county auditor. 3.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2010 and new text end 3.29 new text begin thereafter. new text end 3.30    Sec. 6. new text begin [273.1236] DISASTER-DAMAGED HOMES; PARTIAL VALUATION new text end 3.31 new text begin EXCLUSION. new text end 4.1 new text begin (a) A homestead property that (1) sustained physical damage from a disaster or new text end 4.2 new text begin emergency resulting in a reassessed market value that is at least $15,000 less than the new text end 4.3 new text begin market value of the property established for the January 2 assessment in the year in which new text end 4.4 new text begin the damage occurred, (2) has been substantially restored or rebuilt by the end of the new text end 4.5 new text begin year following the year in which the damage occurred, (3) has a gross living area after new text end 4.6 new text begin reconstruction that does not exceed 130 percent of the gross living area prior to the disaster new text end 4.7 new text begin or emergency, and (4) has an estimated market value for the assessment year following the new text end 4.8 new text begin year in which the restoration or reconstruction was substantially completed that exceeds new text end 4.9 new text begin its estimated market value established for the January 2 assessment in the year in which new text end 4.10 new text begin the damage occurred by at least $25,000 due to the restoration or reconstruction, is eligible new text end 4.11 new text begin for a valuation exclusion under this section for the two assessment years immediately new text end 4.12 new text begin following the year in which the restoration or reconstruction was completed. new text end 4.13 new text begin (b) The assessor shall determine the difference between the estimated market value new text end 4.14 new text begin established for the January 2 assessment in the year in which the damage occurred and the new text end 4.15 new text begin estimated market value established for the January 2 assessment in the year following the new text end 4.16 new text begin completion of the restoration or reconstruction. new text end 4.17 new text begin (c) In the first assessment year following the restoration or reconstruction, all of the new text end 4.18 new text begin difference identified under paragraph (b) shall be excluded in determining taxable market new text end 4.19 new text begin value. In the second assessment year following the restoration or reconstruction, half of new text end 4.20 new text begin the difference identified under paragraph (b) shall be excluded in determining taxable new text end 4.21 new text begin market value. new text end 4.22 new text begin (d) For the purposes of this section, "gross living area" includes only above-grade new text end 4.23 new text begin living area, and does not include any finished basement living area. new text end 4.24 new text begin (e) Application for the valuation exclusion under this section must be filed by new text end 4.25 new text begin January 2 of the year following the year in which the restoration or reconstruction was new text end 4.26 new text begin substantially completed. The application must be filed with the assessor of the county in new text end 4.27 new text begin which the property is located on the form prescribed by the commissioner of revenue. new text end 4.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2010 and new text end 4.29 new text begin thereafter. The application deadline in paragraph (e) is extended to June 30, 2010, for new text end 4.30 new text begin restoration or reconstruction substantially completed in 2009. new text end 4.31    Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 1, is amended to read: 4.32    Subdivision 1. General rule. (a) Residential real estate that is occupied and used 4.33for the purposes of a homestead by its owner, who must be a Minnesota resident, is 4.34a residential homestead. 5.1    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and 5.2used as a homestead by its owner, who must be a Minnesota resident, is an agricultural 5.3homestead. 5.4    Dates for establishment of a homestead and homestead treatment provided to 5.5particular types of property are as provided in this section. 5.6    Property held by a trustee under a trust is eligible for homestead classification if the 5.7requirements under this chapter are satisfied. 5.8    The assessor shall require proof, as provided in subdivision 13, of the facts upon 5.9which classification as a homestead may be determined. Notwithstanding any other law, 5.10the assessor may at any time require a homestead application to be filed in order to verify 5.11that any property classified as a homestead continues to be eligible for homestead status. 5.12Notwithstanding any other law to the contrary, the Department of Revenue may, upon 5.13request from an assessor, verify whether an individual who is requesting or receiving 5.14homestead classification has filed a Minnesota income tax return as a resident for the most 5.15recent taxable year for which the information is available. 5.16    When there is a name change or a transfer of homestead property, the assessor may 5.17reclassify the property in the next assessment unless a homestead application is filed to 5.18verify that the property continues to qualify for homestead classification. 5.19    (b) For purposes of this section, homestead property shall include property which 5.20is used for purposes of the homestead but is separated from the homestead by a road, 5.21street, lot, waterway, or other similar intervening property. The term "used for purposes 5.22of the homestead" shall include but not be limited to uses for gardens, garages, or other 5.23outbuildings commonly associated with a homestead, but shall not include vacant land 5.24held primarily for future development. In order to receive homestead treatment for 5.25the noncontiguous property, the owner must use the property for the purposes of the 5.26homestead, and must apply to the assessor, both by the deadlines given in subdivision 5.279. After initial qualification for the homestead treatment, additional applications for 5.28subsequent years are not required. 5.29    (c) Residential real estate that is occupied and used for purposes of a homestead by a 5.30relative of the owner is a homestead but only to the extent of the homestead treatment 5.31that would be provided if the related owner occupied the property. For purposes of this 5.32paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, 5.33grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship 5.34may be by blood or marriage. Property that has been classified as seasonal residential 5.35recreational property at any time during which it has been owned by the current owner or 5.36spouse of the current owner will not be reclassified as a homestead unless it is occupied as 6.1a homestead by the owner; this prohibition also applies to property that, in the absence of 6.2this paragraph, would have been classified as seasonal residential recreational property at 6.3the time when the residence was constructed. Neither the related occupant nor the owner 6.4of the property may claim a property tax refund under chapter 290A for a homestead 6.5occupied by a relative. In the case of a residence located on agricultural land, only the 6.6house, garage, and immediately surrounding one acre of land shall be classified as a 6.7homestead under this paragraph, except as provided in paragraph (d). new text begin In the case of new text end 6.8 new text begin nonagricultural property, this paragraph only applies to applications approved before new text end 6.9 new text begin December 16, 2010. new text end 6.10    (d) Agricultural property that is occupied and used for purposes of a homestead by 6.11a relative of the owner, is a homestead, only to the extent of the homestead treatment 6.12that would be provided if the related owner occupied the property, and only if all of the 6.13following criteria are met: 6.14    (1) the relative who is occupying the agricultural property is a son, daughter, brother, 6.15sister, grandson, granddaughter, father, or mother of the owner of the agricultural property 6.16or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner 6.17of the agricultural property; 6.18    (2) the owner of the agricultural property must be a Minnesota resident; 6.19    (3) the owner of the agricultural property must not receive homestead treatment on 6.20any other agricultural property in Minnesota; and 6.21    (4) the owner of the agricultural property is limited to only one agricultural 6.22homestead per family under this paragraph. 6.23    Neither the related occupant nor the owner of the property may claim a property 6.24tax refund under chapter 290A for a homestead occupied by a relative qualifying under 6.25this paragraph. For purposes of this paragraph, "agricultural property" means the house, 6.26garage, other farm buildings and structures, and agricultural land. 6.27    Application must be made to the assessor by the owner of the agricultural property to 6.28receive homestead benefits under this paragraph. The assessor may require the necessary 6.29proof that the requirements under this paragraph have been met. 6.30    (e) In the case of property owned by a property owner who is married, the assessor 6.31must not deny homestead treatment in whole or in part if only one of the spouses occupies 6.32the property and the other spouse is absent due to: (1) marriage dissolution proceedings, 6.33(2) legal separation, (3) employment or self-employment in another location, or (4) other 6.34personal circumstances causing the spouses to live separately, not including an intent to 6.35obtain two homestead classifications for property tax purposes. To qualify under clause 6.36(3), the spouse's place of employment or self-employment must be at least 50 miles distant 7.1from the other spouse's place of employment, and the homesteads must be at least 50 miles 7.2distant from each other. Homestead treatment, in whole or in part, shall not be denied to 7.3the owner's spouse who previously occupied the residence with the owner if the absence 7.4of the owner is due to one of the exceptions provided in this paragraph. 7.5    (f) The assessor must not deny homestead treatment in whole or in part if: 7.6    (1) in the case of a property owner who is not married, the owner is absent due to 7.7residence in a nursing home, boarding care facility, or an elderly assisted living facility 7.8property as defined in section 273.13, subdivision 25a, and the property is not otherwise 7.9occupied; or 7.10    (2) in the case of a property owner who is married, the owner or the owner's spouse 7.11or both are absent due to residence in a nursing home, boarding care facility, or an elderly 7.12assisted living facility property as defined in section 273.13, subdivision 25a, and the 7.13property is not occupied or is occupied only by the owner's spouse. 7.14    (g) If an individual is purchasing property with the intent of claiming it as a 7.15homestead and is required by the terms of the financing agreement to have a relative 7.16shown on the deed as a co-owner, the assessor shall allow a full homestead classification. 7.17This provision only applies to first-time purchasers, whether married or single, or to a 7.18person who had previously been married and is purchasing as a single individual for the 7.19first time. The application for homestead benefits must be on a form prescribed by the 7.20commissioner and must contain the data necessary for the assessor to determine if full 7.21homestead benefits are warranted. 7.22    (h) If residential or agricultural real estate is occupied and used for purposes of a 7.23homestead by a child of a deceased owner and the property is subject to jurisdiction of 7.24probate court, the child shall receive relative homestead classification under paragraph (c) 7.25or (d) to the same extent they would be entitled to it if the owner was still living, until 7.26the probate is completed. For purposes of this paragraph, "child" includes a relationship 7.27by blood or by marriage. 7.28    (i) If a single-family home, duplex, or triplex classified as either residential 7.29homestead or agricultural homestead is also used to provide licensed child care, the 7.30portion of the property used for licensed child care must be classified as a part of the 7.31homestead property. 7.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.33    Sec. 8. Minnesota Statutes 2009 Supplement, section 273.124, subdivision 3a, is 7.34amended to read: 8.1    Subd. 3a. Manufactured home park cooperative. new text begin (a) new text end When a manufactured home 8.2park is owned by a corporation or association organized under chapter 308A or 308B, 8.3and each person who owns a share or shares in the corporation or association is entitled 8.4to occupy a lot within the park, the corporation or association may claim homestead 8.5treatment for each lot occupied by a shareholder new text begin the park new text end . Each lot must be designated 8.6by legal description or number, and each lot is limited to not more than one-half acre of 8.7land for each homestead. 8.8 new text begin (b) new text end The manufactured home park shall be valued and assessed as if it were 8.9homestead property within class 1 new text begin entitled to homestead treatment new text end if all of the following 8.10criteria are met: 8.11(1) the occupant is using the property as a permanent residence; 8.12(2) the occupant or the cooperative new text begin corporation or new text end association is paying the ad 8.13valorem property taxes and any special assessments levied against the land and structure 8.14either directly, or indirectly through dues to the corporation new text begin or association new text end ; and 8.15(3) new text begin (2) new text end the corporation or association organized under chapter 308A or 308B is 8.16wholly owned by persons having a right to occupy a lot owned by the corporation or 8.17association. 8.18 new text begin (c) new text end A charitable corporation, organized under the laws of Minnesota with no 8.19outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) 8.20tax-exempt status, qualifies for homestead treatment with respect to member residents of 8.21the new text begin a new text end manufactured home park who new text begin if its members new text end hold residential participation warrants 8.22entitling them to occupy a lot in the manufactured home park. 8.23 new text begin (d) "Homestead treatment" under this subdivision means the class rate provided for new text end 8.24 new text begin class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), new text end 8.25 new text begin item (ii). The homestead market value credit under section 273.1384 does not apply and new text end 8.26 new text begin the property taxes assessed against the park shall not be included in the determination of new text end 8.27 new text begin taxes payable for rent paid under section 290A.03. new text end 8.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 8.29 new text begin thereafter. new text end 8.30    Sec. 9. Minnesota Statutes 2008, section 273.124, subdivision 8, is amended to read: 8.31    Subd. 8. Homestead owned by or leased to family farm corporation, joint farm 8.32venture, limited liability company, or partnership. (a) Each family farm corporation; 8.33each joint family farm venture; and each limited liability company or partnership which 8.34operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, 8.35paragraph (b), or class 2a assessment for one homestead occupied by a shareholder, 9.1member, or partner thereof who is residing on the land, and actively engaged in farming of 9.2the land owned by the family farm corporation, joint family farm venture, limited liability 9.3company, or partnership. Homestead treatment applies even if legal title to the property is 9.4in the name of the family farm corporation, joint family farm venture, limited liability 9.5company, or partnership, and not in the name of the person residing on it. 9.6"Family farm corporation," "family farm," and "partnership operating a family 9.7farm" have the meanings given in section 500.24, except that the number of allowable 9.8shareholders, members, or partners under this subdivision shall not exceed 12. "Limited 9.9liability company" has the meaning contained in sections 322B.03, subdivision 28, and 9.10500.24, subdivision 2 , paragraphs (l) and (m). "Joint family farm venture" means a 9.11cooperative agreement among two or more farm enterprises authorized to operate a family 9.12farm under section 500.24. 9.13(b) In addition to property specified in paragraph (a), any other residences owned 9.14by family farm corporations, joint family farm ventures, limited liability companies, 9.15or partnerships described in paragraph (a) which are located on agricultural land and 9.16occupied as homesteads by its shareholders, members, or partners who are actively 9.17engaged in farming on behalf of that corporation, joint farm venture, limited liability 9.18company, or partnership must also be assessed as class 2a property or as class 1b property 9.19under section 273.13. 9.20(c) Agricultural property that is owned by a member, partner, or shareholder of a 9.21family farm corporation or joint family farm venture, limited liability company operating 9.22a family farm, or by a partnership operating a family farm and leased to the family farm 9.23corporation, limited liability company, partnership, or joint farm venture, as defined in 9.24paragraph (a), is eligible for classification as class 1b or class 2a under section 273.13, if 9.25the owner is actually residing on the property, and is actually engaged in farming the land 9.26on behalf of that corporation, joint farm venture, limited liability company, or partnership. 9.27This paragraph applies without regard to any legal possession rights of the family farm 9.28corporation, joint family farm venture, limited liability company, or partnership under 9.29the lease. 9.30 new text begin (d) Agricultural property that (1) is owned by a family farm corporation, joint new text end 9.31 new text begin farm venture, limited liability company, or partnership and (2) is contiguous to a class new text end 9.32 new text begin 2a homestead under section 273.13, subdivision 23, or if noncontiguous, is located in new text end 9.33 new text begin the same township or city, or not farther than four townships or cities, or combination new text end 9.34 new text begin thereof from a class 2a homestead, and the class 2a homestead is owned by one of the new text end 9.35 new text begin shareholders, members, or partners; is entitled to receive the first tier homestead class rate new text end 9.36 new text begin up to the first tier maximum market value on any remaining market value not received new text end 10.1 new text begin on the shareholder's, member's, or partner's homestead class 2a property. The owner new text end 10.2 new text begin must notify the county assessor by July 1 that a portion of the market value under this new text end 10.3 new text begin subdivision may be eligible for homestead classification for the current assessment year, new text end 10.4 new text begin for taxes payable in the following year. new text end 10.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2010 and new text end 10.6 new text begin thereafter, for taxes payable in 2011 and thereafter. new text end 10.7    Sec. 10. Minnesota Statutes 2008, section 273.124, subdivision 14, is amended to read: 10.8    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than 10.9ten acres that is the homestead of its owner must be classified as class 2a under section 10.10273.13, subdivision 23 , paragraph (a), if: 10.11    (1) the parcel on which the house is located is contiguous on at least two sides to (i) 10.12agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 10.13Service, or (iii) land administered by the Department of Natural Resources on which in 10.14lieu taxes are paid under sections 477A.11 to 477A.14; 10.15    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 10.1620 acres; 10.17    (3) the noncontiguous land is located not farther than four townships or cities, or a 10.18combination of townships or cities from the homestead; and 10.19    (4) the agricultural use value of the noncontiguous land and farm buildings is equal 10.20to at least 50 percent of the market value of the house, garage, and one acre of land. 10.21    Homesteads initially classified as class 2a under the provisions of this paragraph shall 10.22remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 10.23properties, as long as the homestead remains under the same ownership, the owner owns a 10.24noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 10.25value qualifies under clause (4). Homestead classification under this paragraph is limited 10.26to property that qualified under this paragraph for the 1998 assessment. 10.27    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same 10.28extent as other agricultural homestead property, if all of the following criteria are met: 10.29    (1) the property consists of at least 40 acres including undivided government lots 10.30and correctional 40's; 10.31    (2) the owner, the owner's spouse, the son or daughter of the owner or owner's 10.32spouse, the brother or sister of the owner or owner's spouse, or the grandson or 10.33granddaughter of the owner or the owner's spouse, is actively farming the agricultural 10.34property, either on the person's own behalf as an individual or on behalf of a partnership 11.1operating a family farm, family farm corporation, joint family farm venture, or limited 11.2liability company of which the person is a partner, shareholder, or member; 11.3    (3) both the owner of the agricultural property and the person who is actively 11.4farming the agricultural property under clause (2), are Minnesota residents; 11.5    (4) neither the owner nor the spouse of the owner claims another agricultural 11.6homestead in Minnesota; and 11.7    (5) neither the owner nor the person actively farming the property lives farther 11.8than four townships or cities, or a combination of four townships or cities, from the 11.9agricultural property, except that if the owner or the owner's spouse is required to live in 11.10employer-provided housing, the owner or owner's spouse, whichever is actively farming 11.11the agricultural property, may live more than four townships or cities, or combination of 11.12four townships or cities from the agricultural property. 11.13    The relationship under this paragraph may be either by blood or marriage. 11.14    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead 11.15classification under this paragraph if the qualifications in clause (i) are met, except that 11.16"owner" means the grantor of the trust. 11.17    (iii) Property containing the residence of an owner who owns qualified property 11.18under clause (i) shall be classified as part of the owner's agricultural homestead, if that 11.19property is also used for noncommercial storage or drying of agricultural crops. 11.20    (c) Noncontiguous land shall be included as part of a homestead under section 11.21273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a 11.22and the detached land is located in the same township or city, or not farther than four 11.23townships or cities or combination thereof from the homestead. Any taxpayer of these 11.24noncontiguous lands must notify the county assessor that the noncontiguous land is part of 11.25the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer 11.26must also notify the assessor of the other county. 11.27    (d) Agricultural land used for purposes of a homestead and actively farmed by a 11.28person holding a vested remainder interest in it must be classified as a homestead under 11.29section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, 11.30any other dwellings on the land used for purposes of a homestead by persons holding 11.31vested remainder interests who are actively engaged in farming the property, and up to 11.32one acre of the land surrounding each homestead and reasonably necessary for the use of 11.33the dwelling as a home, must also be assessed class 2a. 11.34    (e) Agricultural land and buildings that were class 2a homestead property under 11.35section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain 11.36classified as agricultural homesteads for subsequent assessments if: 12.1    (1) the property owner abandoned the homestead dwelling located on the agricultural 12.2homestead as a result of the April 1997 floods; 12.3    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, 12.4or Wilkin; 12.5    (3) the agricultural land and buildings remain under the same ownership for the 12.6current assessment year as existed for the 1997 assessment year and continue to be used 12.7for agricultural purposes; 12.8    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 12.9miles of one of the parcels of agricultural land that is owned by the taxpayer; and 12.10    (5) the owner notifies the county assessor that the relocation was due to the 1997 12.11floods, and the owner furnishes the assessor any information deemed necessary by the 12.12assessor in verifying the change in dwelling. Further notifications to the assessor are not 12.13required if the property continues to meet all the requirements in this paragraph and any 12.14dwellings on the agricultural land remain uninhabited. 12.15    (f) Agricultural land and buildings that were class 2a homestead property under 12.16section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain 12.17classified agricultural homesteads for subsequent assessments if: 12.18    (1) the property owner abandoned the homestead dwelling located on the agricultural 12.19homestead as a result of damage caused by a March 29, 1998, tornado; 12.20    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, 12.21LeSueur, Nicollet, Nobles, or Rice; 12.22    (3) the agricultural land and buildings remain under the same ownership for the 12.23current assessment year as existed for the 1998 assessment year; 12.24    (4) the dwelling occupied by the owner is located in this state and is within 50 miles 12.25of one of the parcels of agricultural land that is owned by the taxpayer; and 12.26    (5) the owner notifies the county assessor that the relocation was due to a March 29, 12.271998, tornado, and the owner furnishes the assessor any information deemed necessary by 12.28the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 12.29owner must notify the assessor by December 1, 1998. Further notifications to the assessor 12.30are not required if the property continues to meet all the requirements in this paragraph 12.31and any dwellings on the agricultural land remain uninhabited. 12.32    (g) Agricultural property of a family farm corporation, joint family farm venture, 12.33family farm limited liability company, or partnership operating a family farm as described 12.34under subdivision 8 shall be classified homestead, to the same extent as other agricultural 12.35homestead property, if all of the following criteria are met: 13.1    (1) the property consists of at least 40 acres including undivided government lots 13.2and correctional 40's; 13.3    (2) a shareholder, member, or partner of that entity is actively farming the 13.4agricultural property; 13.5    (3) that shareholder, member, or partner who is actively farming the agricultural 13.6property is a Minnesota resident; 13.7    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 13.8member, or partner claims another agricultural homestead in Minnesota; and 13.9    (5) that shareholder, member, or partner does not live farther than four townships or 13.10cities, or a combination of four townships or cities, from the agricultural property. 13.11    Homestead treatment applies under this paragraph for property leased to a family 13.12farm corporation, joint farm venture, limited liability company, or partnership operating a 13.13family farm if legal title to the property is in the name of an individual who is a member, 13.14shareholder, or partner in the entity. 13.15    (h) To be eligible for the special agricultural homestead under this subdivision, an 13.16initial full application must be submitted to the county assessor where the property is 13.17located. Owners and the persons who are actively farming the property shall be required 13.18to complete only a one-page abbreviated version of the application in each subsequent 13.19year provided that none of the following items have changed since the initial application: 13.20    (1) the day-to-day operation, administration, and financial risks remain the same; 13.21    (2) the owners and the persons actively farming the property continue to live within 13.22the four townships or city criteria and are Minnesota residents; 13.23    (3) the same operator of the agricultural property is listed with the Farm Service 13.24Agency; 13.25    (4) a Schedule F or equivalent income tax form was filed for the most recent year; 13.26    (5) the property's acreage is unchanged; and 13.27    (6) none of the property's acres have been enrolled in a federal or state farm program 13.28since the initial application. 13.29    The owners and any persons who are actively farming the property must include 13.30the appropriate Social Security numbers, and sign and date the application. If any of the 13.31specified information has changed since the full application was filed, the owner must 13.32notify the assessor, and must complete a new application to determine if the property 13.33continues to qualify for the special agricultural homestead. The commissioner of revenue 13.34shall prepare a standard reapplication form for use by the assessors. 14.1    (i) Agricultural land and buildings that were class 2a homestead property under 14.2section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain 14.3classified agricultural homesteads for subsequent assessments if: 14.4    (1) the property owner abandoned the homestead dwelling located on the agricultural 14.5homestead as a result of damage caused by the August 2007 floods; 14.6    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, 14.7Steele, Wabasha, or Winona; 14.8    (3) the agricultural land and buildings remain under the same ownership for the 14.9current assessment year as existed for the 2007 assessment year; 14.10    (4) the dwelling occupied by the owner is located in this state and is within 50 miles 14.11of one of the parcels of agricultural land that is owned by the taxpayer; and 14.12    (5) the owner notifies the county assessor that the relocation was due to the August 14.132007 floods, and the owner furnishes the assessor any information deemed necessary by 14.14the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 14.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor 14.16are not required if the property continues to meet all the requirements in this paragraph 14.17and any dwellings on the agricultural land remain uninhabited. 14.18     new text begin (j) Agricultural land and buildings that were class 2a homestead property under new text end 14.19 new text begin section new text end new text begin 273.13, subdivision 23 new text end new text begin , paragraph (a), for the 2008 assessment shall remain new text end 14.20 new text begin classified as agricultural homesteads for subsequent assessments if: new text end 14.21     new text begin (1) the property owner abandoned the homestead dwelling located on the agricultural new text end 14.22 new text begin homestead as a result of the March 2009 floods; new text end 14.23     new text begin (2) the property is located in the county of Marshall; new text end 14.24     new text begin (3) the agricultural land and buildings remain under the same ownership for the new text end 14.25 new text begin current assessment year as existed for the 2008 assessment year and continue to be used new text end 14.26 new text begin for agricultural purposes; new text end 14.27     new text begin (4) the dwelling occupied by the owner is located in Minnesota and is within 50 new text end 14.28 new text begin miles of one of the parcels of agricultural land that is owned by the taxpayer; and new text end 14.29     new text begin (5) the owner notifies the county assessor that the relocation was due to the 2009 new text end 14.30 new text begin floods, and the owner furnishes the assessor any information deemed necessary by the new text end 14.31 new text begin assessor in verifying the change in dwelling. Further notifications to the assessor are not new text end 14.32 new text begin required if the property continues to meet all the requirements in this paragraph and any new text end 14.33 new text begin dwellings on the agricultural land remain uninhabited. new text end 14.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment years 2010 and 2011, new text end 14.35 new text begin for taxes payable in 2011 and 2012. new text end 15.1    Sec. 11. Minnesota Statutes 2009 Supplement, section 273.13, subdivision 23, is 15.2amended to read: 15.3    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 15.4land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 15.5the class 2a land under the same ownership. The market value of the house and garage 15.6and immediately surrounding one acre of land has the same class rates as class 1a or 1b 15.7property under subdivision 22. The value of the remaining land including improvements 15.8up to the first tier valuation limit of agricultural homestead property has a net class rate 15.9of 0.5 percent of market value. The remaining property over the first tier has a class rate 15.10of one percent of market value. For purposes of this subdivision, the "first tier valuation 15.11limit of agricultural homestead property" and "first tier" means the limit certified under 15.12section 273.11, subdivision 23. 15.13    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 15.14are agricultural land and buildings. Class 2a property has a net class rate of one percent of 15.15market value, unless it is part of an agricultural homestead under paragraph (a). Class 15.162a property must also include any property that would otherwise be classified as 2b, 15.17but is interspersed with class 2a property, including but not limited to sloughs, wooded 15.18wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback 15.19requirement, and other similar land that is impractical for the assessor to value separately 15.20from the rest of the property or that is unlikely to be able to be sold separately from 15.21the rest of the property. 15.22    An assessor may classify the part of a parcel described in this subdivision that is used 15.23for agricultural purposes as class 2a and the remainder in the class appropriate to its use. 15.24    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 15.25that are unplatted real estate, rural in character and not used for agricultural purposes, 15.26including land used for growing trees for timber, lumber, and wood and wood products, 15.27that is not improved with a structure. The presence of a minor, ancillary nonresidential 15.28structure as defined by the commissioner of revenue does not disqualify the property from 15.29classification under this paragraph. Any parcel of 20 acres or more improved with a 15.30structure that is not a minor, ancillary nonresidential structure must be split-classified, and 15.31ten acres must be assigned to the split parcel containing the structure. Class 2b property 15.32has a net class rate of one percent of market value unless it is part of an agricultural 15.33homestead under paragraph (a), or qualifies as class 2c under paragraph (d). 15.34    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 15.35acres statewide per taxpayer that is being managed under a forest management plan that 15.36meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 16.1resource management incentive program. It has a class rate of .65 percent, provided that 16.2the owner of the property must apply to the assessor in order for the property to initially 16.3qualify for the reduced rate and provide the information required by the assessor to verify 16.4that the property qualifies for the reduced rate. If the assessor receives the application 16.5and information before May 1 in an assessment year, the property qualifies beginning 16.6with that assessment year. If the assessor receives the application and information after 16.7April 30 in an assessment year, the property may not qualify until the next assessment 16.8year. The commissioner of natural resources must concur that the land is qualified. The 16.9commissioner of natural resources shall annually provide county assessors verification 16.10information on a timely basis. The presence of a minor, ancillary nonresidential structure 16.11as defined by the commissioner of revenue does not disqualify the property from 16.12classification under this paragraph. 16.13    (e) Agricultural land as used in this section means contiguous acreage of ten 16.14acres or more, used during the preceding year for agricultural purposes. "Agricultural 16.15purposes" as used in this section means the raising, cultivation, drying, or storage of 16.16agricultural products for sale, or the storage of machinery or equipment used in support 16.17of agricultural production by the same farm entity. For a property to be classified as 16.18agricultural based only on the drying or storage of agricultural products, the products 16.19being dried or stored must have been produced by the same farm entity as the entity 16.20operating the drying or storage facility. "Agricultural purposes" also includes enrollment 16.21in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal 16.22Conservation Reserve Program as contained in Public Law 99-198 or a similar state 16.23or federal conservation program if the property was classified as agricultural (i) under 16.24this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. 16.25Agricultural classification shall not be based upon the market value of any residential 16.26structures on the parcel or contiguous parcels under the same ownership. 16.27    (f) Real estate of less than ten acres, which is exclusively or intensively used for 16.28raising or cultivating agricultural products, shall be considered as agricultural land. To 16.29qualify under this paragraph, property that includes a residential structure must be used 16.30intensively for one of the following purposes: 16.31    (i) for drying or storage of grain or storage of machinery or equipment used to 16.32support agricultural activities on other parcels of property operated by the same farming 16.33entity; 16.34    (ii) as a nursery, provided that only those acres used to produce nursery stock are 16.35considered agricultural land; 17.1    (iii) for livestock or poultry confinement, provided that land that is used only for 17.2pasturing and grazing does not qualify; or 17.3    (iv) for market farming; for purposes of this paragraph, "market farming" means the 17.4cultivation of one or more fruits or vegetables or production of animal or other agricultural 17.5products for sale to local markets by the farmer or an organization with which the farmer 17.6is affiliated. new text begin ; or new text end 17.7 new text begin (v) the commercial processing of milk into cheese products from milk produced new text end 17.8 new text begin on the property. new text end 17.9    (g) Land shall be classified as agricultural even if all or a portion of the agricultural 17.10use of that property is the leasing to, or use by another person for agricultural purposes. 17.11    Classification under this subdivision is not determinative for qualifying under 17.12section 273.111. 17.13    (h) The property classification under this section supersedes, for property tax 17.14purposes only, any locally administered agricultural policies or land use restrictions that 17.15define minimum or maximum farm acreage. 17.16    (i) The term "agricultural products" as used in this subdivision includes production 17.17for sale of: 17.18    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 17.19animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 17.20bees, and apiary products by the owner; 17.21    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 17.22for agricultural use; 17.23    (3) the commercial boarding of horses new text begin , which may include related horse training new text end 17.24 new text begin and riding instruction, new text end if the boarding is done in conjunction with new text begin on property that is also new text end 17.25 new text begin used for raising pasture to graze horses or new text end raising or cultivating new text begin other new text end agricultural products 17.26as defined in clause (1); 17.27    (4) property which is owned and operated by nonprofit organizations used for 17.28equestrian activities, excluding racing; 17.29    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 17.30under section 97A.115; 17.31    (6) insects primarily bred to be used as food for animals; 17.32    (7) trees, grown for sale as a crop, including short rotation woody crops, and not 17.33sold for timber, lumber, wood, or wood products; and 17.34    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 17.35Department of Agriculture under chapter 28A as a food processor. new text begin ; and new text end 18.1 new text begin (9) the commercial processing of milk into cheese products from milk produced on new text end 18.2 new text begin the property, provided the property is also the homestead of the property owner. new text end 18.3    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 18.4purposes, including but not limited to: 18.5    (1) wholesale and retail sales; 18.6    (2) processing of raw agricultural products or other goods; 18.7    (3) warehousing or storage of processed goods; and 18.8    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 18.9and (3), 18.10the assessor shall classify the part of the parcel used for agricultural purposes as class 18.111b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 18.12use. The grading, sorting, and packaging of raw agricultural products for first sale is 18.13considered an agricultural purpose. A greenhouse or other building where horticultural 18.14or nursery products are grown that is also used for the conduct of retail sales must be 18.15classified as agricultural if it is primarily used for the growing of horticultural or nursery 18.16products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 18.17those products. Use of a greenhouse or building only for the display of already grown 18.18horticultural or nursery products does not qualify as an agricultural purpose. 18.19    (k) The assessor shall determine and list separately on the records the market value 18.20of the homestead dwelling and the one acre of land on which that dwelling is located. If 18.21any farm buildings or structures are located on this homesteaded acre of land, their market 18.22value shall not be included in this separate determination. 18.23    (l) Class 2d airport landing area consists of a landing area or public access area of 18.24a privately owned public use airport. It has a class rate of one percent of market value. 18.25To qualify for classification under this paragraph, a privately owned public use airport 18.26must be licensed as a public airport under section 360.018. For purposes of this paragraph, 18.27"landing area" means that part of a privately owned public use airport properly cleared, 18.28regularly maintained, and made available to the public for use by aircraft and includes 18.29runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 18.30A landing area also includes land underlying both the primary surface and the approach 18.31surfaces that comply with all of the following: 18.32    (i) the land is properly cleared and regularly maintained for the primary purposes of 18.33the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 18.34facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 18.35    (ii) the land is part of the airport property; and 18.36    (iii) the land is not used for commercial or residential purposes. 19.1The land contained in a landing area under this paragraph must be described and certified 19.2by the commissioner of transportation. The certification is effective until it is modified, 19.3or until the airport or landing area no longer meets the requirements of this paragraph. 19.4For purposes of this paragraph, "public access area" means property used as an aircraft 19.5parking ramp, apron, or storage hangar, or an arrival and departure building in connection 19.6with the airport. 19.7    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 19.8being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 19.9located in a county that has elected to opt-out of the aggregate preservation program as 19.10provided in section 273.1115, subdivision 6. It has a class rate of one percent of market 19.11value. To qualify for classification under this paragraph, the property must be at least 19.12ten contiguous acres in size and the owner of the property must record with the county 19.13recorder of the county in which the property is located an affidavit containing: 19.14    (1) a legal description of the property; 19.15    (2) a disclosure that the property contains a commercial aggregate deposit that is not 19.16actively being mined but is present on the entire parcel enrolled; 19.17    (3) documentation that the conditional use under the county or local zoning 19.18ordinance of this property is for mining; and 19.19    (4) documentation that a permit has been issued by the local unit of government 19.20or the mining activity is allowed under local ordinance. The disclosure must include a 19.21statement from a registered professional geologist, engineer, or soil scientist delineating 19.22the deposit and certifying that it is a commercial aggregate deposit. 19.23    For purposes of this section and section 273.1115, "commercial aggregate deposit" 19.24means a deposit that will yield crushed stone or sand and gravel that is suitable for use 19.25as a construction aggregate; and "actively mined" means the removal of top soil and 19.26overburden in preparation for excavation or excavation of a commercial deposit. 19.27    (n) When any portion of the property under this subdivision or subdivision 22 begins 19.28to be actively mined, the owner must file a supplemental affidavit within 60 days from 19.29the day any aggregate is removed stating the number of acres of the property that is 19.30actively being mined. The acres actively being mined must be (1) valued and classified 19.31under subdivision 24 in the next subsequent assessment year, and (2) removed from the 19.32aggregate resource preservation property tax program under section 273.1115, if the 19.33land was enrolled in that program. Copies of the original affidavit and all supplemental 19.34affidavits must be filed with the county assessor, the local zoning administrator, and the 19.35Department of Natural Resources, Division of Land and Minerals. A supplemental 19.36affidavit must be filed each time a subsequent portion of the property is actively mined, 20.1provided that the minimum acreage change is five acres, even if the actual mining activity 20.2constitutes less than five acres. 20.3(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 20.4not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions 20.5in section 14.386 concerning exempt rules do not apply. 20.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 20.7 new text begin thereafter. new text end 20.8    Sec. 12. Minnesota Statutes 2009 Supplement, section 273.13, subdivision 25, is 20.9amended to read: 20.10    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 20.11units and used or held for use by the owner or by the tenants or lessees of the owner 20.12as a residence for rental periods of 30 days or more, excluding property qualifying for 20.13class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 20.14than hospitals exempt under section 272.02, and contiguous property used for hospital 20.15purposes, without regard to whether the property has been platted or subdivided. The 20.16market value of class 4a property has a class rate of 1.25 percent. 20.17    (b) Class 4b includes: 20.18    (1) residential real estate containing less than four units that does not qualify as class 20.194bb, other than seasonal residential recreational property; 20.20    (2) manufactured homes not classified under any other provision; 20.21    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 20.22farm classified under subdivision 23, paragraph (b) containing two or three units; and 20.23    (4) unimproved property that is classified residential as determined under subdivision 20.2433. 20.25    The market value of class 4b property has a class rate of 1.25 percent. 20.26    (c) Class 4bb includes: 20.27    (1) nonhomestead residential real estate containing one unit, other than seasonal 20.28residential recreational property; and 20.29    (2) a single family dwelling, garage, and surrounding one acre of property on a 20.30nonhomestead farm classified under subdivision 23, paragraph (b). 20.31    Class 4bb property has the same class rates as class 1a property under subdivision 22. 20.32    Property that has been classified as seasonal residential recreational property at 20.33any time during which it has been owned by the current owner or spouse of the current 20.34owner does not qualify for class 4bb. 20.35    (d) Class 4c property includes: 21.1    (1) except as provided in subdivision 22, paragraph (c), real and personal property 21.2devoted to temporary and seasonal residential occupancy for recreation purposes, 21.3including real and personal property devoted to temporary and seasonal residential 21.4occupancy for recreation purposes and not devoted to commercial purposes for more 21.5than 250 days in the year preceding the year of assessment. For purposes of this clause, 21.6property is devoted to a commercial purpose on a specific day if any portion of the 21.7property is used for residential occupancy, and a fee is charged for residential occupancy. 21.8Class 4c property under this clause must contain three or more rental units. A "rental unit" 21.9is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 21.10equipped with water and electrical hookups for recreational vehicles. Class 4c property 21.11under this clause must provide recreational activities such as renting ice fishing houses, 21.12boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 21.13services, launch services, or guide services; or sell bait and fishing tackle. A camping pad 21.14offered for rent by a property that otherwise qualifies for class 4c under this clause is also 21.15class 4c under this clause regardless of the term of the rental agreement, as long as the 21.16use of the camping pad does not exceed 250 days. In order for a property to be classified 21.17as class 4c, seasonal residential recreational for commercial purposes under this clause, 21.18 new text begin (i) new text end at least 40 percent of the annual gross lodging receipts related to the property must be 21.19from business conducted during 90 consecutive days and either (i) new text begin (A) new text end at least 60 percent 21.20of all paid bookings by lodging guests during the year must be for periods of at least 21.21two consecutive nights; or (ii) new text begin (B) new text end at least 20 percent of the annual gross receipts must 21.22be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or 21.23cross-country ski equipment, or charges for marina services, launch services, and guide 21.24services, or the sale of bait and fishing tackle. new text begin ; or (ii) the property contains 20 or fewer new text end 21.25 new text begin rental units, is devoted to temporary residential occupancy for no more than 250 days in new text end 21.26 new text begin the year, is located in a township or a city with a population of 2,500 or less, that is located new text end 21.27 new text begin outside the metropolitan area as defined under section 473.121, subdivision 2, and that new text end 21.28 new text begin contains a portion of a state trail administered by the Department of Natural Resources. new text end 21.29For purposes of this determination, a paid booking of five or more nights shall be counted 21.30as two bookings. Class 4c property classified under this clause also includes commercial 21.31use real property used exclusively for recreational purposes in conjunction with other 21.32class 4c property classified under this clause and devoted to temporary and seasonal 21.33residential occupancy for recreational purposes, up to a total of two acres, provided the 21.34property is not devoted to commercial recreational use for more than 250 days in the year 21.35preceding the year of assessment and is located within two miles of the class 4c property 21.36with which it is used. Owners of real and personal property devoted to temporary and 22.1seasonal residential occupancy for recreation purposes and all or a portion of which was 22.2devoted to commercial purposes for not more than 250 days in the year preceding the 22.3year of assessment desiring classification as class 4c, must submit a declaration to the 22.4assessor designating the cabins or units occupied for 250 days or less in the year preceding 22.5the year of assessment by January 15 of the assessment year. Those cabins or units and 22.6a proportionate share of the land on which they are located must be designated class 22.74c under this clause as otherwise provided. The remainder of the cabins or units and a 22.8proportionate share of the land on which they are located will be designated as class 3a. 22.9The owner of property desiring designation as class 4c property under this clause must 22.10provide guest registers or other records demonstrating that the units for which class 4c 22.11designation is sought were not occupied for more than 250 days in the year preceding the 22.12assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, 22.13(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility 22.14operated on a commercial basis not directly related to temporary and seasonal residential 22.15occupancy for recreation purposes does not qualify for class 4c; 22.16    (2) qualified property used as a golf course if: 22.17    (i) it is open to the public on a daily fee basis. It may charge membership fees or 22.18dues, but a membership fee may not be required in order to use the property for golfing, 22.19and its green fees for golfing must be comparable to green fees typically charged by 22.20municipal courses; and 22.21    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 22.22    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 22.23with the golf course is classified as class 3a property; 22.24    (3) real property up to a maximum of three acres of land owned and used by a 22.25nonprofit community service oriented organization and not used for residential purposes 22.26on either a temporary or permanent basis, provided that: 22.27    (i) the property is not used for a revenue-producing activity for more than six days 22.28in the calendar year preceding the year of assessment; or 22.29    (ii) the organization makes annual charitable contributions and donations at least 22.30equal to the property's previous year's property taxes and the property is allowed to be 22.31used for public and community meetings or events for no charge, as appropriate to the 22.32size of the facility. 22.33    For purposes of this clause, 22.34    (A) "charitable contributions and donations" has the same meaning as lawful 22.35gambling purposes under section 349.12, subdivision 25, excluding those purposes 22.36relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 23.1    (B) "property taxes" excludes the state general tax; 23.2    (C) a "nonprofit community service oriented organization" means any corporation, 23.3society, association, foundation, or institution organized and operated exclusively for 23.4charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 23.5federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 23.6Revenue Code; and 23.7    (D) "revenue-producing activities" shall include but not be limited to property or that 23.8portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 23.9liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 23.10alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 23.11insurance business, or office or other space leased or rented to a lessee who conducts a 23.12for-profit enterprise on the premises. 23.13Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use 23.14of the property for social events open exclusively to members and their guests for periods 23.15of less than 24 hours, when an admission is not charged nor any revenues are received by 23.16the organization shall not be considered a revenue-producing activity. 23.17    The organization shall maintain records of its charitable contributions and donations 23.18and of public meetings and events held on the property and make them available upon 23.19request any time to the assessor to ensure eligibility. An organization meeting the 23.20requirement under item (ii) must file an application by May 1 with the assessor for 23.21eligibility for the current year's assessment. The commissioner shall prescribe a uniform 23.22application form and instructions; 23.23    (4) postsecondary student housing of not more than one acre of land that is owned by 23.24a nonprofit corporation organized under chapter 317A and is used exclusively by a student 23.25cooperative, sorority, or fraternity for on-campus housing or housing located within two 23.26miles of the border of a college campus; 23.27    (5) new text begin (i) new text end manufactured home parks as defined in section 327.14, subdivision 3 new text begin , new text end 23.28 new text begin excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) new text end 23.29 new text begin manufactured home parks as defined in section 327.14, subdivision 3, that are described in new text end 23.30 new text begin section 273.124, subdivision 3a new text end ; 23.31    (6) real property that is actively and exclusively devoted to indoor fitness, health, 23.32social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 23.33and is located within the metropolitan area as defined in section 473.121, subdivision 2; 23.34    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 23.35under section 272.01, subdivision 2, and the land on which it is located, provided that: 24.1    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 24.2Airports Commission, or group thereof; and 24.3    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 24.4leased premise, prohibits commercial activity performed at the hangar. 24.5    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 24.6be filed by the new owner with the assessor of the county where the property is located 24.7within 60 days of the sale; 24.8    (8) a privately owned noncommercial aircraft storage hangar not exempt under 24.9section 272.01, subdivision 2, and the land on which it is located, provided that: 24.10    (i) the land abuts a public airport; and 24.11    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 24.12agreement restricting the use of the premises, prohibiting commercial use or activity 24.13performed at the hangar; and 24.14    (9) residential real estate, a portion of which is used by the owner for homestead 24.15purposes, and that is also a place of lodging, if all of the following criteria are met: 24.16    (i) rooms are provided for rent to transient guests that generally stay for periods 24.17of 14 or fewer days; 24.18    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 24.19in the basic room rate; 24.20    (iii) meals are not provided to the general public except for special events on fewer 24.21than seven days in the calendar year preceding the year of the assessment; and 24.22    (iv) the owner is the operator of the property. 24.23The market value subject to the 4c classification under this clause is limited to five rental 24.24units. Any rental units on the property in excess of five, must be valued and assessed as 24.25class 3a. The portion of the property used for purposes of a homestead by the owner must 24.26be classified as class 1a property under subdivision 22; 24.27    (10) real property up to a maximum of three acres and operated as a restaurant 24.28as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 24.29as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 24.30is either devoted to commercial purposes for not more than 250 consecutive days, or 24.31receives at least 60 percent of its annual gross receipts from business conducted during 24.32four consecutive months. Gross receipts from the sale of alcoholic beverages must be 24.33included in determining the property's qualification under subitem (B). The property's 24.34primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 24.35sales located on the premises must be excluded. Owners of real property desiring 4c 24.36classification under this clause must submit an annual declaration to the assessor by 25.1February 1 of the current assessment year, based on the property's relevant information for 25.2the preceding assessment year; and 25.3(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 25.4as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to 25.5the public and devoted to recreational use for marina services. The marina owner must 25.6annually provide evidence to the assessor that it provides services, including lake or 25.7river access to the public. No more than 800 feet of lakeshore may be included in this 25.8classification. Buildings used in conjunction with a marina for marina services, including 25.9but not limited to buildings used to provide food and beverage services, fuel, boat repairs, 25.10or the sale of bait or fishing tackle, are classified as class 3a property. 25.11    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 25.12parcel of seasonal residential recreational property not used for commercial purposes has 25.13the same class rates as class 4bb property, (ii) manufactured home parks assessed under 25.14clause (5) new text begin , item (i), new text end have the same class rate as class 4b property new text begin , and the market value new text end 25.15 new text begin of manufactured home parks assessed under clause (5), item (ii), has the same class rate new text end 25.16 new text begin as class 4d property new text end , (iii) commercial-use seasonal residential recreational property and 25.17marina recreational land as described in clause (11), has a class rate of one percent for the 25.18first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the 25.19market value of property described in clause (4) has a class rate of one percent, (v) the 25.20market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 25.21percent, and (vi) that portion of the market value of property in clause (9) qualifying for 25.22class 4c property has a class rate of 1.25 percent. 25.23    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 25.24by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 25.25of the units in the building qualify as low-income rental housing units as certified under 25.26section 273.128, subdivision 3, only the proportion of qualifying units to the total number 25.27of units in the building qualify for class 4d. The remaining portion of the building shall be 25.28classified by the assessor based upon its use. Class 4d also includes the same proportion of 25.29land as the qualifying low-income rental housing units are to the total units in the building. 25.30For all properties qualifying as class 4d, the market value determined by the assessor must 25.31be based on the normal approach to value using normal unrestricted rents. 25.32    Class 4d property has a class rate of 0.75 percent. 25.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2010, for taxes new text end 25.34 new text begin payable in 2011 and thereafter. new text end 25.35    Sec. 13. Minnesota Statutes 2008, section 273.13, subdivision 34, is amended to read: 26.1    Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value 26.2of property owned by a veteran or by the veteran and the veteran's spouse qualifying 26.3for homestead classification under subdivision 22 or 23 is excluded in determining the 26.4property's taxable market value if it new text begin either: (1) new text end serves as the homestead of a military 26.5veteran, as defined in section 197.447, who has a service-connected disability of 70 26.6percent or more new text begin , or (2) served as the homestead of a service member at the time of the new text end 26.7 new text begin service member's death due to a service-connected cause while in active service, as new text end 26.8 new text begin defined in section 190.05, subdivision 5 new text end . To qualify for exclusion under this subdivision new text begin new text end 26.9 new text begin clause (1) new text end , the veteran must have been honorably discharged from the United States armed 26.10forces, as indicated by United States Government Form DD214 or other official military 26.11discharge papers, and must be certified by the United States Veterans Administration 26.12as having a service-connected disability. new text begin To qualify for exclusion under clause (2), the new text end 26.13 new text begin surviving spouse must show proof of the service member's death while in active service new text end 26.14 new text begin in any branch or unit of the United States armed forces, as indicated on United States new text end 26.15 new text begin Government Form DD1300 or DD2064. new text end 26.16    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is 26.17excluded, except as provided in clause (2); and 26.18    (2) for a total (100 percent) and permanent disability, new text begin or in the case of a property new text end 26.19 new text begin qualifying under paragraph (a), clause (2), new text end $300,000 of market value is excluded. 26.20    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), 26.21clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 26.22spouse holds the legal or beneficial title to the homestead and permanently resides there, 26.23the exclusion shall carry over to the benefit of the veteran's spouse for one new text begin four new text end additional 26.24assessment year new text begin years new text end or until such time as the spouse sells, transfers, or otherwise 26.25disposes of the property, whichever comes first. 26.26    (d) In the case of an agricultural homestead, only the portion of the property 26.27consisting of the house and garage and immediately surrounding one acre of land qualifies 26.28for the valuation exclusion under this subdivision. 26.29    (e) A property qualifying for a valuation exclusion under this subdivision is not 26.30eligible for the credit under section 273.1384, subdivision 1, or classification under 26.31subdivision 22, paragraph (b). 26.32    (f) To qualify for a valuation exclusion under this subdivision a property owner must 26.33apply to the assessor by July 1 of each assessment year, except that an annual reapplication 26.34is not required once a property has been accepted for a valuation exclusion under paragraph 26.35(b), clause (2), and the property continues to qualify until there is a change in ownership. 27.1 new text begin EFFECTIVE DATE. new text end new text begin The change made to paragraph (a) is effective for deaths new text end 27.2 new text begin occurring the day following final enactment. The change made to paragraph (c) is new text end 27.3 new text begin effective for taxes payable in 2011 and thereafter, and applies to the surviving spouse of new text end 27.4 new text begin any disabled veteran who had previously been assessed under paragraph (c). new text end 27.5    Sec. 14. Minnesota Statutes 2009 Supplement, section 275.065, subdivision 3, is 27.6amended to read: 27.7    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 27.8and the county treasurer shall deliver after November 10 and on or before November 24 27.9each year, by first class mail to each taxpayer at the address listed on the county's current 27.10year's assessment roll, a notice of proposed property taxes. Upon written request by 27.11the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 27.12instead of on paper or by ordinary mail. 27.13    (b) The commissioner of revenue shall prescribe the form of the notice. 27.14    (c) The notice must inform taxpayers that it contains the amount of property taxes 27.15each taxing authority proposes to collect for taxes payable the following year. In the case 27.16of a town, or in the case of the state general tax, the final tax amount will be its proposed 27.17tax. The notice must clearly state for each city, county, school district, regional library 27.18authority established under section 134.201, and metropolitan taxing districts as defined in 27.19paragraph (i), the time and place of the taxing authorities' regularly scheduled meetings in 27.20which the budget and levy will be discussed and the final budget and levy determined, 27.21which must occur after November 24. The taxing authorities must provide the county 27.22auditor with the information to be included in the notice on or before the time it certifies its 27.23proposed levy under subdivision 1. The public must be allowed to speak at the meetings 27.24and the meetings shall not be held before 6:00 p.m. It must provide a telephone number 27.25for the taxing authority that taxpayers may call if they have questions related to the notice 27.26and an address where comments will be received by mail new text begin , except that no notice required new text end 27.27 new text begin under this section shall be interpreted as requiring the printing of a personal telephone new text end 27.28 new text begin number or address as the contact information for a taxing authority. If a taxing authority new text end 27.29 new text begin does not maintain public offices where telephone calls can be received by the authority, the new text end 27.30 new text begin authority may inform the county of the lack of a public telephone number and the county new text end 27.31 new text begin shall not list a telephone number for that taxing authority new text end . 27.32    (d) The notice must state for each parcel: 27.33    (1) the market value of the property as determined under section 273.11, and used 27.34for computing property taxes payable in the following year and for taxes payable in the 27.35current year as each appears in the records of the county assessor on November 1 of the 28.1current year; and, in the case of residential property, whether the property is classified as 28.2homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 28.3which the market values apply and that the values are final values; 28.4    (2) the items listed below, shown separately by county, city or town, and state general 28.5tax, net of the residential and agricultural homestead credit under section 273.1384, voter 28.6approved school levy, other local school levy, and the sum of the special taxing districts, 28.7and as a total of all taxing authorities: 28.8    (i) the actual tax for taxes payable in the current year; and 28.9    (ii) the proposed tax amount. 28.10    If the county levy under clause (2) includes an amount for a lake improvement 28.11district as defined under sections 103B.501 to 103B.581, the amount attributable for that 28.12purpose must be separately stated from the remaining county levy amount. 28.13    In the case of a town or the state general tax, the final tax shall also be its proposed 28.14tax unless the town changes its levy at a special town meeting under section 365.52. If a 28.15school district has certified under section 126C.17, subdivision 9, that a referendum will 28.16be held in the school district at the November general election, the county auditor must 28.17note next to the school district's proposed amount that a referendum is pending and that, if 28.18approved by the voters, the tax amount may be higher than shown on the notice. In the 28.19case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 28.20listed separately from the remaining amount of the city's levy. In the case of the city of 28.21St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 28.22remaining amount of the city's levy. In the case of Ramsey County, any amount levied 28.23under section 134.07 may be listed separately from the remaining amount of the county's 28.24levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 28.25under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 28.26proposed tax levy on the tax capacity subject to the areawide tax must each be stated 28.27separately and not included in the sum of the special taxing districts; and 28.28    (3) the increase or decrease between the total taxes payable in the current year and 28.29the total proposed taxes, expressed as a percentage. 28.30    For purposes of this section, the amount of the tax on homesteads qualifying under 28.31the senior citizens' property tax deferral program under chapter 290B is the total amount 28.32of property tax before subtraction of the deferred property tax amount. 28.33    (e) The notice must clearly state that the proposed or final taxes do not include 28.34the following: 28.35    (1) special assessments; 29.1    (2) levies approved by the voters after the date the proposed taxes are certified, 29.2including bond referenda and school district levy referenda; 29.3    (3) a levy limit increase approved by the voters by the first Tuesday after the first 29.4Monday in November of the levy year as provided under section 275.73; 29.5    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 29.6occurring after the date the proposed taxes are certified; 29.7    (5) amounts necessary to pay tort judgments against the taxing authority that become 29.8final after the date the proposed taxes are certified; and 29.9    (6) the contamination tax imposed on properties which received market value 29.10reductions for contamination. 29.11    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 29.12the county treasurer to deliver the notice as required in this section does not invalidate the 29.13proposed or final tax levy or the taxes payable pursuant to the tax levy. 29.14    (g) If the notice the taxpayer receives under this section lists the property as 29.15nonhomestead, and satisfactory documentation is provided to the county assessor by the 29.16applicable deadline, and the property qualifies for the homestead classification in that 29.17assessment year, the assessor shall reclassify the property to homestead for taxes payable 29.18in the following year. 29.19    (h) In the case of class 4 residential property used as a residence for lease or rental 29.20periods of 30 days or more, the taxpayer must either: 29.21    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 29.22renter, or lessee; or 29.23    (2) post a copy of the notice in a conspicuous place on the premises of the property. 29.24    The notice must be mailed or posted by the taxpayer by November 27 or within 29.25three days of receipt of the notice, whichever is later. A taxpayer may notify the county 29.26treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 29.27which the notice must be mailed in order to fulfill the requirements of this paragraph. 29.28    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 29.29districts" means the following taxing districts in the seven-county metropolitan area that 29.30levy a property tax for any of the specified purposes listed below: 29.31    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 29.32473.446 , 473.521, 473.547, or 473.834; 29.33    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 29.34and 29.35    (3) Metropolitan Mosquito Control Commission under section 473.711. 30.1    For purposes of this section, any levies made by the regional rail authorities in the 30.2county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 30.3398A shall be included with the appropriate county's levy. 30.4    (j) The governing body of a county, city, or school district may, with the consent 30.5of the county board, include supplemental information with the statement of proposed 30.6property taxes about the impact of state aid increases or decreases on property tax 30.7increases or decreases and on the level of services provided in the affected jurisdiction. 30.8This supplemental information may include information for the following year, the current 30.9year, and for as many consecutive preceding years as deemed appropriate by the governing 30.10body of the county, city, or school district. It may include only information regarding: 30.11    (1) the impact of inflation as measured by the implicit price deflator for state and 30.12local government purchases; 30.13    (2) population growth and decline; 30.14    (3) state or federal government action; and 30.15    (4) other financial factors that affect the level of property taxation and local services 30.16that the governing body of the county, city, or school district may deem appropriate to 30.17include. 30.18    The information may be presented using tables, written narrative, and graphic 30.19representations and may contain instruction toward further sources of information or 30.20opportunity for comment. 30.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices prepared in 2010, for new text end 30.22 new text begin taxes payable in 2011 and thereafter. new text end 30.23    Sec. 15. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, as 30.24amended by Laws 2010, chapter 215, article 13, section 3, is amended to read: 30.25    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes 30.26levied by a local governmental unit for the following purposes or in the following manner: 30.27    (1) to pay the costs of the principal and interest on bonded indebtedness or to 30.28reimburse for the amount of liquor store revenues used to pay the principal and interest 30.29due on municipal liquor store bonds in the year preceding the year for which the levy 30.30limit is calculated; 30.31    (2) to pay the costs of principal and interest on certificates of indebtedness issued for 30.32any corporate purpose except for the following: 30.33    (i) tax anticipation or aid anticipation certificates of indebtedness; 30.34    (ii) certificates of indebtedness issued under sections 298.28 and 298.282; 31.1    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of 31.2extraordinary expenditures that result from a public emergency; or 31.3    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or 31.4an insufficiency in other revenue sources; 31.5    (3) to provide for the bonded indebtedness portion of payments made to another 31.6political subdivision of the state of Minnesota; 31.7    (4) to fund payments made to the Minnesota State Armory Building Commission 31.8under section 193.145, subdivision 2, to retire the principal and interest on armory 31.9construction bonds; 31.10    (5) property taxes approved by voters which are levied against the referendum 31.11market value as provided under section 275.61; 31.12    (6) to fund matching requirements needed to qualify for federal or state grants or 31.13programs to the extent that either (i) the matching requirement exceeds the matching 31.14requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 31.15exist prior to 2002; 31.16    (7) to pay the expenses reasonably and necessarily incurred in preparing for or 31.17repairing the effects of natural disaster including the occurrence or threat of widespread 31.18or severe damage, injury, or loss of life or property resulting from natural causes, in 31.19accordance with standards formulated by the Emergency Services Division of the state 31.20Department of Public Safety, as allowed by the commissioner of revenue under section 31.21275.74, subdivision 2 ; 31.22    (8) pay amounts required to correct an error in the levy certified to the county 31.23auditor by a city or county in a levy year, but only to the extent that when added to the 31.24preceding year's levy it is not in excess of an applicable statutory, special law or charter 31.25limitation, or the limitation imposed on the governmental subdivision by sections 275.70 31.26to 275.74 in the preceding levy year; 31.27    (9) to pay an abatement under section 469.1815; 31.28    (10) to pay any costs attributable to increases in the employer contribution rates 31.29under chapter 353, or locally administered pension plans, that are effective after June 31.3030, 2001; 31.31    (11) to pay the operating or maintenance costs of a county jail as authorized in 31.32section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, 31.33subdivision 1 , paragraph (f), to the extent that the county can demonstrate to the 31.34commissioner of revenue that the amount has been included in the county budget as 31.35a direct result of a rule, minimum requirement, minimum standard, or directive of the 31.36Department of Corrections, or to pay the operating or maintenance costs of a regional jail 32.1as authorized in section 641.262. For purposes of this clause, a district court order is 32.2not a rule, minimum requirement, minimum standard, or directive of the Department of 32.3Corrections. If the county utilizes this special levy, except to pay operating or maintenance 32.4costs of a new regional jail facility under sections 641.262 to 641.264 which will not 32.5replace an existing jail facility, any amount levied by the county in the previous levy year 32.6for the purposes specified under this clause and included in the county's previous year's 32.7levy limitation computed under section 275.71, shall be deducted from the levy limit 32.8base under section 275.71, subdivision 2, when determining the county's current year 32.9levy limitation. The county shall provide the necessary information to the commissioner 32.10of revenue for making this determination; 32.11    (12) to pay for operation of a lake improvement district, as authorized under section 32.12103B.555 . If the county utilizes this special levy, any amount levied by the county in the 32.13previous levy year for the purposes specified under this clause and included in the county's 32.14previous year's levy limitation computed under section 275.71 shall be deducted from 32.15the levy limit base under section 275.71, subdivision 2, when determining the county's 32.16current year levy limitation. The county shall provide the necessary information to the 32.17commissioner of revenue for making this determination; 32.18    (13) to repay a state or federal loan used to fund the direct or indirect required 32.19spending by the local government due to a state or federal transportation project or other 32.20state or federal capital project. This authority may only be used if the project is not a 32.21local government initiative; 32.22    (14) to pay for court administration costs as required under section 273.1398, 32.23subdivision 4b , less the (i) county's share of transferred fines and fees collected by the 32.24district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 32.25paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 32.26levied to pay for these costs in the year in which the court financing is transferred to the 32.27state, the amount under this clause is limited to the amount of aid the county is certified to 32.28receive under section 273.1398, subdivision 4a; 32.29    (15) to fund a police or firefighters relief association as required under section 69.77 32.30to the extent that the required amount exceeds the amount levied for this purpose in 2001; 32.31    (16) for purposes of a storm sewer improvement district under section 444.20; 32.32    (17) to pay for the maintenance and support of a city or county society for the 32.33prevention of cruelty to animals under section 343.11, but not to exceed in any year 32.34$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 32.35recent federal census, whichever is greater. If the city or county uses this special levy, any 32.36amount levied by the city or county in the previous levy year for the purposes specified 33.1in this clause and included in the city's or county's previous year's levy limit computed 33.2under section 275.71, must be deducted from the levy limit base under section 275.71, 33.3subdivision 2 , in determining the city's or county's current year levy limit; 33.4    (18) for counties, to pay for the increase in their share of health and human service 33.5costs caused by reductions in federal health and human services grants effective after 33.6September 30, 2007; 33.7    (19) for a city, for the costs reasonably and necessarily incurred for securing, 33.8maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 33.9the commissioner of revenue under section 275.74, subdivision 2. A city must have either 33.10(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 33.11the city or in a zip code area of the city that is at least 50 percent higher than the average 33.12foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 33.13to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 33.14number of foreclosures, as indicated by sheriff sales records, divided by the number of 33.15households in the city in 2007; 33.16    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 33.17lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 33.18to the Federal Highway Administration; 33.19    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire 33.20personnel. If a local governmental unit did not use this special levy in the previous year its 33.21levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 33.22levied for the purposes specified in this clause in the previous year; 33.23    (22) an amount equal to any reductions in the certified aids or credits payable 33.24under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under 33.25section 16A.152 or reductions under another provision of law. The amount of the levy 33.26allowed under this clause is equal to the amount unallotted or reduced in the calendar year 33.27in which the tax is levied unless the unallotment or reduction amount is not known by 33.28September 1 of the levy year, and the local government has not adjusted its levy under 33.29section 275.065, subdivision 6, or 275.07, subdivision 6, in which case the unallotment 33.30or reduction amount may be levied in the following year; 33.31(23) to pay for the difference between one-half of the costs of confining sex offenders 33.32undergoing the civil commitment process and any state payments for this purpose pursuant 33.33to section 253B.185, subdivision 5; 33.34(24) for a county to pay the costs of the first year of maintaining and operating a new 33.35facility or new expansion, either of which contains courts, corrections, dispatch, criminal 33.36investigation labs, or other public safety facilities and for which all or a portion of the 34.1funding for the site acquisition, building design, site preparation, construction, and related 34.2equipment was issued or authorized prior to the imposition of levy limits in 2008. The 34.3levy limit base shall then be increased by an amount equal to the new facility's first full 34.4year's operating costs as described in this clause; and 34.5(25) for the estimated amount of reduction to market value credit reimbursements 34.6under section 273.1384 for credits payable in the year in which the levy is payable. new text begin ; and new text end 34.7 new text begin (26) to pay the estimated costs of all salaries and expenses of county veteran service new text end 34.8 new text begin officers, as provided under section 197.60, subdivision 4. new text end 34.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 34.10 new text begin thereafter. new text end 34.11    Sec. 16. Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read: 34.12    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the 34.13adjusted levy limit base is equal to the levy limit base computed under subdivision 2 34.14or section 275.72, multiplied by: 34.15    (1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price 34.16deflator new text begin , but the percentage shall not be less than zero or exceed 3.9 percent new text end ; 34.17    (2) one plus a percentage equal to 50 percent of the percentage increase in the number 34.18of households, if any, for the most recent 12-month period for which data is available; and 34.19    (3) one plus a percentage equal to 50 percent of the percentage increase in the 34.20taxable market value of the jurisdiction due to new construction of class 3 property, as 34.21defined in section 273.13, subdivision 4, except for state-assessed utility and railroad 34.22property, for the most recent year for which data is available. 34.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes levied in 2010 and thereafter. new text end 34.24    Sec. 17. Minnesota Statutes 2008, section 276.02, is amended to read: 34.25276.02 TREASURER TO BE COLLECTOR. 34.26The county treasurer shall collect all taxes extended on the tax lists of the county 34.27and the fines, forfeitures, or penalties received by any person or officer for the use of 34.28the county. The treasurer shall collect the taxes according to law and credit them to the 34.29proper funds. This section does not apply to fines and penalties accruing to municipal 34.30corporations for the violation of their ordinances that are recoverable before a city justice. 34.31Taxes, fines, interest, and penalties must be paid with United States currency or by check 34.32or new text begin , new text end money order new text begin , or electronic payments, including, but not limited to, automated clearing new text end 34.33 new text begin house transactions and federal wires new text end drawn on a bank or other financial institution in the 35.1United States. The county board may by resolution authorize the treasurer to impose a 35.2charge for any dishonored checks new text begin or electronic payments. The charges for dishonored new text end 35.3 new text begin payment of property taxes may be added to the tax, shall constitute a lien on the property, new text end 35.4 new text begin and when collected shall be distributed to the county new text end . 35.5The county board may, by resolution, authorize the treasurer and/or other designees 35.6to accept payments of real property taxes by credit card provided that a fee is charged for 35.7its use. The fee charged must be commensurate with the costs assessed by the card issuer. 35.8If a credit card transaction under this section is subsequently voided or otherwise reversed, 35.9the lien of real property taxes under section 272.31 is revived and attaches in the manner 35.10and time provided in that section as though the credit card transaction had never occurred, 35.11and the voided or reversed credit card transaction shall not impair the right of a lienholder 35.12under section 272.31 to enforce the lien in its favor. 35.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2011 new text end 35.14 new text begin and thereafter. new text end 35.15    Sec. 18. Minnesota Statutes 2009 Supplement, section 276.04, subdivision 2, is 35.16amended to read: 35.17    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 35.18printing of the tax statements. The commissioner of revenue shall prescribe the form of 35.19the property tax statement and its contents. The tax statement must not state or imply that 35.20property tax credits are paid by the state of Minnesota. The statement must contain a 35.21tabulated statement of the dollar amount due to each taxing authority and the amount of the 35.22state tax from the parcel of real property for which a particular tax statement is prepared. 35.23The dollar amounts attributable to the county, the state tax, the voter approved school tax, 35.24the other local school tax, the township or municipality, and the total of the metropolitan new text begin new text end 35.25 new text begin each new text end special taxing districts new text begin district new text end as defined in section 275.065, subdivision 3, paragraph 35.26(i), must be separately stated. The amounts due all other special taxing districts, if any, 35.27may be aggregated except that any levies made by the regional rail authorities in the 35.28county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 35.29398A shall be listed on a separate line directly under the appropriate county's levy. If the 35.30county levy under this paragraph includes an amount for a lake improvement district as 35.31defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 35.32must be separately stated from the remaining county levy amount. In the case of Ramsey 35.33County, if the county levy under this paragraph includes an amount for public library 35.34service under section 134.07, the amount attributable for that purpose may be separated 35.35from the remaining county levy amount. The amount of the tax on homesteads qualifying 36.1under the senior citizens' property tax deferral program under chapter 290B is the total 36.2amount of property tax before subtraction of the deferred property tax amount. The 36.3amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, 36.4must also be separately stated. The dollar amounts, including the dollar amount of any 36.5special assessments, may be rounded to the nearest even whole dollar. For purposes of this 36.6section whole odd-numbered dollars may be adjusted to the next higher even-numbered 36.7dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, 36.8must also be listed on the tax statement. 36.9    (b) The property tax statements for manufactured homes and sectional structures 36.10taxed as personal property shall contain the same information that is required on the 36.11tax statements for real property. 36.12    (c) Real and personal property tax statements must contain the following information 36.13in the order given in this paragraph. The information must contain the current year tax 36.14information in the right column with the corresponding information for the previous year 36.15in a column on the left: 36.16    (1) the property's estimated market value under section 273.11, subdivision 1; 36.17    (2) the property's taxable market value after reductions under section 273.11, 36.18subdivisions 1a and 16 ; 36.19    (3) the property's gross tax, before credits; 36.20    (4) for homestead residential and agricultural properties, the credits under section 36.21273.1384 ; 36.22    (5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 36.23273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 36.24credit received under section 273.135 must be separately stated and identified as "taconite 36.25tax relief"; and 36.26    (6) the net tax payable in the manner required in paragraph (a). 36.27    (d) If the county uses envelopes for mailing property tax statements and if the county 36.28agrees, a taxing district may include a notice with the property tax statement notifying 36.29taxpayers when the taxing district will begin its budget deliberations for the current 36.30year, and encouraging taxpayers to attend the hearings. If the county allows notices to 36.31be included in the envelope containing the property tax statement, and if more than 36.32one taxing district relative to a given property decides to include a notice with the tax 36.33statement, the county treasurer or auditor must coordinate the process and may combine 36.34the information on a single announcement. 36.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax statements relating to taxes new text end 36.36 new text begin payable in 2012 and thereafter. new text end 37.1    Sec. 19. Minnesota Statutes 2009 Supplement, section 279.01, subdivision 1, is 37.2amended to read: 37.3    Subdivision 1. Due dates; penalties. Except as provided in subdivision 3 or 4, on 37.4May 16 or 21 days after the postmark date on the envelope containing the property tax 37.5statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid 37.6taxes on real estate on the current lists in the hands of the county treasurer. The penalty is 37.7at a rate of two percent on homestead property until May 31 and four percent on June 1. 37.8The penalty on nonhomestead property is at a rate of four percent until May 31 and eight 37.9percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after 37.10the postmark date on the envelope containing the property tax statements, whichever is 37.11later, on commercial use real property used for seasonal residential recreational purposes 37.12and classified as class 1c or 4c, and on other commercial use real property classified as 37.13class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 37.14class 3a property is earned during the months of May, June, July, and August. In order for 37.15the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 37.16or 21 days after the postmark date on the envelope containing the property tax statement, 37.17whichever is later, without penalty, the owner of the property must attach an affidavit to the 37.18payment attesting to compliance with the income provision of this subdivision. Thereafter, 37.19for both homestead and nonhomestead property, on the first day of each month beginning 37.20July 1, up to and including October 1 following, an additional penalty of one percent for 37.21each month accrues and is charged on all such unpaid taxes provided that if the due date 37.22was extended beyond May 15 as the result of any delay in mailing property tax statements 37.23no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is 37.24not paid by the extended due date, then all penalties that would have accrued if the due 37.25date had been May 15 shall be charged. When the taxes against any tract or lot exceed 37.26$250 new text begin $100 new text end , one-half thereof may be paid prior to May 16 or 21 days after the postmark 37.27date on the envelope containing the property tax statement, whichever is later; and, if so 37.28paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 37.2916 following, without penalty; but, if not so paid, then a penalty of two percent accrues 37.30thereon for homestead property and a penalty of four percent on nonhomestead property. 37.31Thereafter, for homestead property, on the first day of November an additional penalty of 37.32four percent accrues and on the first day of December following, an additional penalty of 37.33two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 37.34property, on the first day of November and December following, an additional penalty of 37.35four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 37.36such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 38.1containing the property tax statement, whichever is later, the same may be paid at any time 38.2prior to October 16, with accrued penalties to the date of payment added, and thereupon 38.3no penalty attaches to the remaining one-half until October 16 following. 38.4    This section applies to payment of personal property taxes assessed against 38.5improvements to leased property, except as provided by section 277.01, subdivision 3. 38.6    A county may provide by resolution that in the case of a property owner that has 38.7multiple tracts or parcels with aggregate taxes exceeding $250 new text begin $100 new text end , payments may be 38.8made in installments as provided in this subdivision. 38.9    The county treasurer may accept payments of more or less than the exact amount of 38.10a tax installment due. Payments must be applied first to the oldest installment that is due 38.11but which has not been fully paid. If the accepted payment is less than the amount due, 38.12payments must be applied first to the penalty accrued for the year or the installment being 38.13paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 38.14payment required as a condition for filing an appeal under section 278.03 or any other law, 38.15nor does it affect the order of payment of delinquent taxes under section 280.39. 38.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 38.17 new text begin thereafter. new text end 38.18    Sec. 20. Minnesota Statutes 2008, section 279.025, is amended to read: 38.19279.025 PAYMENT OF DELINQUENT PROPERTY TAXES, SPECIAL 38.20ASSESSMENTS. 38.21Payment of delinquent property tax and related interest and penalties and special 38.22assessments shall be paid with United States currency or by check or new text begin , new text end money order new text begin , or new text end 38.23 new text begin electronic means, including, but not limited to, automated clearing house transactions and new text end 38.24 new text begin federal wires new text end drawn on a bank or other financial institution in the United States. 38.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2011 new text end 38.26 new text begin and thereafter. new text end 38.27    Sec. 21. Minnesota Statutes 2009 Supplement, section 290B.03, subdivision 1, is 38.28amended to read: 38.29    Subdivision 1. Program qualifications. The qualifications for the senior citizens' 38.30property tax deferral program are as follows: 38.31(1) the property must be owned and occupied as a homestead by a person 65 years of 38.32age or older. In the case of a married couple, at least one of the spouses must be at least 65 38.33years old at the time the first property tax deferral is granted, regardless of whether the 39.1property is titled in the name of one spouse or both spouses, or titled in another way that 39.2permits the property to have homestead status, and the other spouse must be at least 62 39.3years of age; 39.4(2) the total household income of the qualifying homeowners, as defined in section 39.5290A.03, subdivision 5 , for the calendar year preceding the year of the initial application 39.6may not exceed $60,000 new text begin $75,000 new text end ; 39.7(3) the homestead must have been owned and occupied as the homestead of at 39.8least one of the qualifying homeowners for at least 15 years prior to the year the initial 39.9application is filed; 39.10(4) there are no state or federal tax liens or judgment liens on the homesteaded 39.11property; 39.12(5) there are no mortgages or other liens on the property that secure future advances, 39.13except for those subject to credit limits that result in compliance with clause (6); and 39.14(6) the total unpaid balances of debts secured by mortgages and other liens on the 39.15property, including unpaid and delinquent special assessments and interest and any 39.16delinquent property taxes, penalties, and interest, but not including property taxes payable 39.17during the year, does not exceed 75 percent of the assessor's estimated market value for 39.18the year. 39.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, and thereafter. new text end 39.20    Sec. 22. Minnesota Statutes 2008, section 290B.03, is amended by adding a 39.21subdivision to read: 39.22     new text begin Subd. 1a. new text end new text begin Special program qualifications; spouse of service member who new text end 39.23 new text begin died while in active service or deceased disabled veteran. new text end new text begin (a) Notwithstanding the new text end 39.24 new text begin requirements of subdivision 1, clauses (1) and (3), but subject to all the other requirements new text end 39.25 new text begin of subdivision 1, homestead property owned and occupied by the spouse of either a service new text end 39.26 new text begin member who died while in active service, or a deceased disabled veteran, is eligible to new text end 39.27 new text begin participate in the program established under this chapter. For purposes of this subdivision, new text end 39.28 new text begin "service member who died while in active service" means a person serving in any branch new text end 39.29 new text begin or unit of the United States armed forces who has died from a service-connected cause new text end 39.30 new text begin while serving in active service, as defined in section 190.05, subdivision 5, as indicated new text end 39.31 new text begin by United States Government Form DD214. For purposes of this subdivision, "deceased new text end 39.32 new text begin disabled veteran" means a deceased disabled veteran who was honorably discharged from new text end 39.33 new text begin the United States armed forces, as indicated by United States Government Form DD214 new text end 39.34 new text begin or other official military discharge papers, and certified by the United States Veterans new text end 40.1 new text begin Administration as having a total (100 percent) and permanent service-connected disability new text end 40.2 new text begin prior to the veteran's death. new text end 40.3 new text begin (b) Applications under this subdivision are exempt from the age requirements under new text end 40.4 new text begin the application process in section 290B.04, subdivision 1. The commissioner may require new text end 40.5 new text begin certifications as are necessary to ensure eligibility under this subdivision. new text end 40.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 and new text end 40.7 new text begin thereafter. new text end 40.8    Sec. 23. Minnesota Statutes 2008, section 290B.04, subdivision 3, is amended to read: 40.9    Subd. 3. Excess-income certification by taxpayer. A taxpayer whose initial 40.10application has been approved under subdivision 2 shall notify the commissioner of 40.11revenue in writing by July 1 if the taxpayer's household income for the preceding calendar 40.12year exceeded $60,000 new text begin $75,000 new text end . The certification must state the homeowner's total 40.13household income for the previous calendar year. No property taxes may be deferred 40.14under this chapter in any year following the year in which a program participant filed 40.15or should have filed an excess-income certification under this subdivision, unless the 40.16participant has filed a resumption of eligibility certification as described in subdivision 4. 40.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, and thereafter. new text end 40.18    Sec. 24. Minnesota Statutes 2008, section 290B.04, subdivision 4, is amended to read: 40.19    Subd. 4. Resumption of eligibility certification by taxpayer. A taxpayer who has 40.20previously filed an excess-income certification under subdivision 3 may resume program 40.21participation if the taxpayer's household income for a subsequent year is $60,000 new text begin $75,000 new text end 40.22or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 40.23the commissioner of revenue in writing by July 1 of the year following a calendar year in 40.24which the taxpayer's household income is $60,000 new text begin $75,000 new text end or less. The certification must 40.25state the taxpayer's total household income for the previous calendar year. Once a taxpayer 40.26resumes participation in the program under this subdivision, participation will continue 40.27until the taxpayer files a subsequent excess-income certification under subdivision 3 or 40.28until participation is terminated under section 290B.08, subdivision 1. 40.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, and thereafter. new text end 40.30    Sec. 25. Minnesota Statutes 2008, section 290B.05, subdivision 1, is amended to read: 40.31    Subdivision 1. Determination by commissioner. The commissioner shall 40.32determine each qualifying homeowner's "annual maximum property tax amount" 41.1following approval of the homeowner's initial application and following the receipt of a 41.2resumption of eligibility certification. The "annual maximum property tax amount" equals 41.3three percent of the homeowner's total household income for the year preceding either the 41.4initial application or the resumption of eligibility certification, whichever is applicable. 41.5Following approval of the initial application, the commissioner shall determine the 41.6qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative 41.7to the appropriate assessment year for any homeowner whose total household income 41.8for the previous year exceeds $60,000 new text begin $75,000 new text end . No tax shall be deferred in any year in 41.9which the homeowner does not meet the program qualifications in section 290B.03. The 41.10maximum allowable total deferral is equal to 75 percent of the assessor's estimated market 41.11value for the year, less the balance of any mortgage loans and other amounts secured by 41.12liens against the property at the time of application, including any unpaid and delinquent 41.13special assessments and interest and any delinquent property taxes, penalties, and interest, 41.14but not including property taxes payable during the year. 41.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, and thereafter. new text end 41.16    Sec. 26. Minnesota Statutes 2008, section 428A.12, is amended to read: 41.17428A.12 PETITION REQUIRED. 41.18No action may be taken under sections 428A.13 and 428A.14 unless owners of 41.1925 new text begin 50 new text end percent or more of the housing units that would be subject to fees in the proposed 41.20housing improvement area file a petition requesting a public hearing on the proposed 41.21action with the city clerk. No action may be taken under section 428A.14 to impose a fee 41.22unless owners of 25 new text begin 50 new text end percent or more of the housing units subject to the proposed 41.23fee file a petition requesting a public hearing on the proposed fee with the city clerk or 41.24other appropriate official. 41.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for petitions filed beginning July new text end 41.26 new text begin 1, 2010. new text end 41.27    Sec. 27. Minnesota Statutes 2008, section 428A.18, subdivision 2, is amended to read: 41.28    Subd. 2. Requirements for veto. If residents of 35 new text begin 45 new text end percent or more of the 41.29housing units in the area subject to the fee file an objection to the ordinance adopted by the 41.30city under section 428A.13 with the city clerk before the effective date of the ordinance, 41.31the ordinance does not become effective. If owners of 35 new text begin 45 new text end percent or more of the housing 41.32units' tax capacity subject to the fee under section 428A.14 file an objection with the city 41.33clerk before the effective date of the resolution, the resolution does not become effective. 42.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning July 1, 2010. new text end 42.2    Sec. 28. Minnesota Statutes 2008, section 473H.05, subdivision 1, is amended to read: 42.3    Subdivision 1. Before March new text begin June new text end 1 for next year's taxes. An owner or owners 42.4of certified long-term agricultural land may apply to the authority with jurisdiction over 42.5the land on forms provided by the commissioner of agriculture for the creation of an 42.6agricultural preserve at any time. Land for which application is received prior to March new text begin new text end 42.7 new text begin June new text end 1 of any year shall be assessed pursuant to section 473H.10 for taxes payable in the 42.8following year. Land for which application is received on or after March new text begin June new text end 1 of any 42.9year shall be assessed pursuant to section 473H.10 in the following year. The application 42.10shall be executed and acknowledged in the manner required by law to execute and 42.11acknowledge a deed and shall contain at least the following information and such other 42.12information as the commissioner deems necessary: 42.13(a) Legal description of the area proposed to be designated and parcel identification 42.14numbers if so designated by the county auditor and the certificate of title number if the 42.15land is registered; 42.16(b) Name and address of owner; 42.17(c) An affidavit by the authority evidencing that the land is certified long-term 42.18agricultural land at the date of application; 42.19(d) A statement by the owner covenanting that the land shall be kept in agricultural 42.20use, and shall be used in accordance with the provisions of sections 473H.02 to 473H.17 42.21which exist on the date of application and providing that the restrictive covenant shall be 42.22binding on the owner or the owner's successor or assignee, and shall run with the land. 42.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 42.24 new text begin except that in 2010 the application date in this section shall be extended to August 1. new text end 42.25    Sec. 29. Minnesota Statutes 2009 Supplement, section 477A.011, subdivision 36, as 42.26amended by Laws 2010, chapter 215, article 13, section 4, is amended to read: 42.27    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, 42.28"city aid base" is zero. 42.29    (b) The city aid base for any city with a population less than 500 is increased by 42.30$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 42.31of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 42.32increased by $40,000 for aids payable in calendar year 1995 only, provided that: 42.33    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; 42.34    (ii) the city portion of the tax capacity rate exceeds 100 percent; and 43.1    (iii) its city aid base is less than $60 per capita. 43.2    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 43.3the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 43.4paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: 43.5    (i) the city has a population in 1994 of 2,500 or more; 43.6    (ii) the city is located in a county, outside of the metropolitan area, which contains a 43.7city of the first class; 43.8    (iii) the city's net tax capacity used in calculating its 1996 aid under section 43.9477A.013 is less than $400 per capita; and 43.10    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 43.11property located in the city is classified as railroad property. 43.12    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 43.13the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 43.14paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: 43.15    (i) the city was incorporated as a statutory city after December 1, 1993; 43.16    (ii) its city aid base does not exceed $5,600; and 43.17    (iii) the city had a population in 1996 of 5,000 or more. 43.18    (e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and 43.19thereafter, and the maximum amount of total aid it may receive under section 477A.013, 43.20subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 2000 only, 43.21provided that: 43.22    (1) the city has a population that is greater than 1,000 and less than 2,500; 43.23    (2) its commercial and industrial percentage for aids payable in 1999 is greater 43.24than 45 percent; and 43.25    (3) the total market value of all commercial and industrial property in the city 43.26for assessment year 1999 is at least 15 percent less than the total market value of all 43.27commercial and industrial property in the city for assessment year 1998. 43.28    (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and 43.29the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 43.30paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: 43.31    (1) the city had a population in 1997 of 2,500 or more; 43.32    (2) the net tax capacity of the city used in calculating its 1999 aid under section 43.33477A.013 is less than $650 per capita; 43.34    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 43.35section 477A.013 is greater than 12 percent; 44.1    (4) the 1999 local government aid of the city under section 477A.013 is less than 44.220 percent of the amount that the formula aid of the city would have been if the need 44.3increase percentage was 100 percent; and 44.4    (5) the city aid base of the city used in calculating aid under section 477A.013 44.5is less than $7 per capita. 44.6    (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and 44.7the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 44.8paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: 44.9    (1) the city has a population in 1997 of 2,000 or more; 44.10    (2) the net tax capacity of the city used in calculating its 1999 aid under section 44.11477A.013 is less than $455 per capita; 44.12    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 44.13greater than $195 per capita; and 44.14    (4) the 1999 local government aid of the city under section 477A.013 is less than 44.1538 percent of the amount that the formula aid of the city would have been if the need 44.16increase percentage was 100 percent. 44.17    (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 44.18the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 44.19paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: 44.20    (1) the city has a population in 1998 that is greater than 200 but less than 500; 44.21    (2) the city's revenue need used in calculating aids payable in 2000 was greater 44.22than $200 per capita; 44.23    (3) the city net tax capacity for the city used in calculating aids available in 2000 44.24was equal to or less than $200 per capita; 44.25    (4) the city aid base of the city used in calculating aid under section 477A.013 44.26is less than $65 per capita; and 44.27    (5) the city's formula aid for aids payable in 2000 was greater than zero. 44.28    (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 44.29the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 44.30paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: 44.31    (1) the city had a population in 1998 that is greater than 200 but less than 500; 44.32    (2) the city's commercial industrial percentage used in calculating aids payable in 44.332000 was less than ten percent; 44.34    (3) more than 25 percent of the city's population was 60 years old or older according 44.35to the 1990 census; 45.1    (4) the city aid base of the city used in calculating aid under section 477A.013 45.2is less than $15 per capita; and 45.3    (5) the city's formula aid for aids payable in 2000 was greater than zero. 45.4    (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and 45.5by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of 45.6total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 45.7increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 45.8only, provided that: 45.9    (1) the net tax capacity of the city used in calculating its 2000 aid under section 45.10477A.013 is less than $810 per capita; 45.11    (2) the population of the city declined more than two percent between 1988 and 1998; 45.12    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 45.13greater than $240 per capita; and 45.14    (4) the city received less than $36 per capita in aid under section 477A.013, 45.15subdivision 9 , for aids payable in 2000. 45.16    (k) The city aid base for a city with a population of 10,000 or more which is located 45.17outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the 45.18maximum amount of total aid it may receive under section 477A.013, subdivision 9, 45.19paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 45.20the lesser of: 45.21    (1)(i) the total population of the city, as determined by the United States Bureau of 45.22the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or 45.23    (2) $2,500,000. 45.24    (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the 45.25maximum amount of total aid it may receive under section 477A.013, subdivision 9, 45.26paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: 45.27    (1) the city is located in the seven-county metropolitan area; 45.28    (2) its population in 2000 is between 10,000 and 20,000; and 45.29    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, 45.30was greater than 25 percent. 45.31    (m) The city aid base for a city is increased by $150,000 in calendar years 2002 to 45.322011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum 45.33amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 45.34also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year 45.352009 only, provided that: 45.36    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; 46.1    (2) its home county is located within the seven-county metropolitan area; 46.2    (3) its pre-1940 housing percentage is less than 15 percent; and 46.3    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 46.4per capita. 46.5    (n) The city aid base for a city is increased by $200,000 beginning in calendar 46.6year 2003 and the maximum amount of total aid it may receive under section 477A.013, 46.7subdivision 9 , paragraph (c), is also increased by $200,000 in calendar year 2003 only, 46.8provided that the city qualified for an increase in homestead and agricultural credit aid 46.9under Laws 1995, chapter 264, article 8, section 18. 46.10    (o) The city aid base for a city is increased by $200,000 in 2004 only and the 46.11maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 46.12also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 46.13dry cask storage facility. 46.14    (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the 46.15maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 46.16by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster 46.17designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by 46.18more than 40 percent between 1990 and 2000. 46.19    (q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the 46.20maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 46.21by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000 46.22and has a state park for which the city provides rescue services and which comprised at 46.23least 14 percent of the total geographic area included within the city boundaries in 2000. 46.24    (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and 46.25the minimum and maximum amount of total aid it may receive under section 477A.013, 46.26subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: 46.27    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 46.28to be placed in trust status as tax-exempt Indian land; 46.29    (2) the placement of the land is being challenged administratively or in court; and 46.30    (3) due to the challenge, the land proposed to be placed in trust is still on the tax 46.31rolls as of May 1, 2006. 46.32    (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and 46.33the minimum and maximum total amount of aid it may receive under this section is also 46.34increased in calendar year 2007 only, provided that: 46.35    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; 46.36    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; 47.1    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 47.2payable in 2006 was greater than 110 percent; and 47.3    (4) it is located in a county where at least 15,000 acres of land are classified as 47.4tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. 47.5    (t) The city aid base for a city is increased by $30,000 in 2009 only, and the 47.6maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 47.7by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than 47.83,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities 47.9and one township in 2002. 47.10    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and 47.11the maximum total aid it may receive under section 477A.013, subdivision 9, is also 47.12increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for 47.13aids payable in 2007 of less than $150 per capita and the city experienced flooding on 47.14March 14, 2007, that resulted in evacuation of at least 40 homes. 47.15    (v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the 47.16maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 47.17by $100,000 in calendar year 2009 only, if the city: 47.18    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical 47.19area; 47.20    (2) has a 2005 population greater than 7,000 but less than 8,000; and 47.21    (3) has a 2005 net tax capacity per capita of less than $500. 47.22    (w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the 47.23maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 47.24increased by $25,000 in calendar year 2009 only, provided that: 47.25    (1) the city is located in the seven-county metropolitan area; 47.26    (2) its population in 2006 is less than 200; and 47.27    (3) the percentage of its housing stock built before 1940, according to the 2000 47.28United States Census, is greater than 40 percent. 47.29    (x) The city aid base is increased by $90,000 in calendar year 2009 only and the 47.30minimum and maximum total amount of aid it may receive under section 477A.013, 47.31subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the 47.32city is located in the seven-county metropolitan area, has a 2006 population between 5,000 47.33and 7,000 and has a 1997 population of over 7,000. 47.34    (y) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if 47.35it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes 47.362006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment 48.1under that paragraph in December 2008 was canceled due to the governor's unallotment. 48.2The payment under this paragraph is not subject to any aid reductions under section 48.3477A.0133 or any future unallotment of the city aid under section 16A.152. 48.4(z) The city aid base and the maximum total aid the city may receive under section 48.5477A.013, subdivision 9 , is increased by $25,000 in calendar year 2010 only if: 48.6(1) the city is a first class city in the seven-county metropolitan area with a 48.7population below 300,000; and 48.8(2) the city has made an equivalent grant to its local growers' association to 48.9reimburse up to $1,000 each for membership fees and retail leases for members of the 48.10association who farm in and around Dakota County and who incurred crop damage as a 48.11result of the hail storm in that area on July 10, 2008. 48.12The payment under this paragraph is not subject to any aid reductions under section 48.13477A.0133 or any future unallotment of the city aid under section 16A.152. 48.14(aa) The city aid base for a city is increased by $106,964 in 2011 only and the 48.15minimum and maximum amount of total aid it may receive under section 477A.013, 48.16subdivision 9 , is also increased by $106,964 in calendar year 2011 only, if the city had a 48.17population as defined in Minnesota Statutes, section 477A.011, subdivision 3, that was in 48.18excess of 1,000 in 2007 and that was less than 1,000 in 2008. 48.19 new text begin (bb) The city aid base for a city is increased by $50,000 in 2011 and 2012 only, and new text end 48.20 new text begin the minimum and maximum amount of total aid it may receive under section 477A.013, new text end 48.21 new text begin subdivision 9, is also increased by $50,000 in calendar year 2011 only, if the city is: new text end 48.22 new text begin (1) located outside of the seven-county metropolitan area; new text end 48.23 new text begin (2) has a 2008 population between 3,000 and 4,000; new text end 48.24 new text begin (3) has a commercial industrial percentage as defined in subdivision 32, for aids new text end 48.25 new text begin payable in 2008 of less than ten percent; and new text end 48.26 new text begin (4) experienced the loss of a major manufacturing facility in the city due to a fire new text end 48.27 new text begin in April 2009. new text end 48.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 48.29 new text begin 2011 and thereafter. new text end 48.30    Sec. 30. Laws 2009, chapter 88, article 2, section 49, is amended to read: 48.31    Sec. 49. TAX ABATEMENT; NEWLY CONSTRUCTED RESIDENTIAL 48.32STRUCTURES IN FLOOD-DAMAGED CITIES. 48.33    Subdivision 1. Eligibility. A residential structure qualifies for a tax abatement 48.34under this section if: 49.1(1) the structure is located in a city that is eligible to designate a development zone 49.2under Minnesota Statutes, section 469.1731; 49.3(2) the structure is located in a county designated as an emergency area under 49.4presidential declaration FEMA-3304-EM; 49.5(3) the structure is located on property classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or 49.64d under Minnesota Statutes, section 273.13; 49.7(4) no part of the structure was in existence prior to January 1, 2009, unless (i) the 49.8structure is located on property classified as 1a, 1b, 2a, 4b, or 4bb; (ii) a building permit 49.9was issued and construction commenced in 2008; and (iii) as of March 26, 2009, the 49.10property was owned by the original builder, was not subject to any form of purchase 49.11contract or agreement, and had never been occupied; and 49.12(5) construction of the structure is commenced prior to December 31, 2010 new text begin 2011 new text end . 49.13For the purposes of this clause, construction is deemed to have been commenced if a 49.14proper building permit has been issued and the mandatory footing or foundation inspection 49.15has been completed. 49.16    Subd. 2. Application. Application for the abatement authorized under this section 49.17must be filed by January 2 of the year following the year in which construction began, 49.18except that those qualifying structures for which construction commenced in 2008 must 49.19file an application no later than January 2, 2010, for assessment years 2010 and 2011. The 49.20application must be filed with the assessor of the county or city in which the property is 49.21located on a form prescribed by the commissioner of revenue. 49.22    Subd. 3. Tax abated. (a) For a property qualifying under subdivision 1 and 49.23classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to (1) $200,000 of market 49.24value, or (2) the entire market value of the structure, whichever is less, shall be abated. 49.25For a property qualifying under subdivision 1 and classified as class 4a or 4d, the tax 49.26attributable to (1) $20,000 of market value per residential unit, or (2) the entire market 49.27value of the structure, whichever is less, shall be abated. 49.28(b) The abatement under paragraph (a) shall be in effect for two taxes payable years, 49.29corresponding to the two assessment years after construction has begun. The abatement 49.30shall not apply to any special assessments that have been levied against the property. 49.31    Subd. 4. Reimbursement. By May 1 of each taxes payable year in which an 49.32abatement has been authorized under this section, the auditor shall report the amount of 49.33taxes abated for each jurisdiction within the county to the commissioner of revenue, on a 49.34form prescribed by the commissioner. On or before September 1 of each taxes payable 49.35year in which an abatement has been authorized under this section, the commissioner of 50.1revenue shall reimburse each local jurisdiction for the amount of taxes abated for the 50.2year under this section. 50.3    Subd. 5. Appropriation. The amount necessary to make the reimbursements 50.4required under this section is annually appropriated to the commissioner of revenue from 50.5the general fund. 50.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 50.7    Sec. 31. Laws 2009, chapter 88, article 2, section 49, the effective date, is amended to 50.8read: 50.9EFFECTIVE DATE.This section is effective for assessment years 2010 to 2012 new text begin new text end 50.10 new text begin 2013 new text end , for taxes payable in 2011 to 2013 new text begin 2014 new text end . 50.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 50.12    Sec. 32. new text begin FISCAL DISPARITIES STUDY. new text end 50.13 new text begin The commissioner of revenue shall conduct a study of the metropolitan revenue new text end 50.14 new text begin distribution program contained in Minnesota Statutes, chapter 473F, commonly known new text end 50.15 new text begin as the fiscal disparities program. By February 1, 2012, the commissioner shall submit a new text end 50.16 new text begin report to the chairs and ranking minority members of the house of representatives and new text end 50.17 new text begin senate tax committees consisting of the findings of the study and identification of issues new text end 50.18 new text begin for policy makers to consider. The study must analyze: new text end 50.19 new text begin (1) the extent to which the benefits of economic growth of the region are shared new text end 50.20 new text begin throughout the region, especially for growth that results from state or regional decisions; new text end 50.21 new text begin (2) the program's impact on the variability of tax rates across jurisdictions of the new text end 50.22 new text begin region; new text end 50.23 new text begin (3) the program's impact on the distribution of homestead property tax burdens new text end 50.24 new text begin across jurisdictions of the region; and new text end 50.25 new text begin (4) the relationship between the impacts of the program and overburden on new text end 50.26 new text begin jurisdictions containing properties that provide regional benefits, specifically the costs new text end 50.27 new text begin those properties impose on their host jurisdictions in excess of their tax payments. new text end 50.28 new text begin The report must include a description of other property tax, aid, and local new text end 50.29 new text begin development programs that interact with the fiscal disparities program. new text end 50.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 50.31    Sec. 33. new text begin FUNDING OF STUDY. new text end 51.1     new text begin Subdivision 1. new text end new text begin Fiscal disparities distribution levy reduction. new text end new text begin For taxes payable new text end 51.2 new text begin in 2011 only, each taxing jurisdiction's distribution levy determined under Minnesota new text end 51.3 new text begin Statutes, section 473F.08, subdivision 3, paragraph (a), must be reduced by a uniform new text end 51.4 new text begin percentage, to be determined by the administrative auditor, such that the total reduction new text end 51.5 new text begin for all jurisdictions is $100,000. new text end 51.6     new text begin Subd. 2. new text end new text begin Supplemental fiscal disparities levy. new text end new text begin For taxes payable in 2011 only, the new text end 51.7 new text begin administrative auditor shall impose a supplemental levy of $100,000 upon the areawide new text end 51.8 new text begin tax base determined under section 473F.07, subdivision 1. This supplemental levy new text end 51.9 new text begin shall be imposed as if it were the levy of a special taxing district administered by the new text end 51.10 new text begin administrative auditor. The administrative auditor must transfer the proceeds of this levy new text end 51.11 new text begin to the commissioner of revenue for deposit in a special account pursuant to Minnesota new text end 51.12 new text begin Statutes, section 270C.15. Money transferred is to be used to pay for the study required new text end 51.13 new text begin under section 32. new text end 51.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2011 only. new text end 51.15    Sec. 34. new text begin THIEF RIVER FALLS AIRPORT AUTHORITY; SPECIAL LEVY new text end 51.16 new text begin AUTHORITY. new text end 51.17 new text begin If an airport authority is established under Minnesota Statutes, section 360.042, that new text end 51.18 new text begin includes the city of Thief River Falls within its boundaries, the authority may exercise new text end 51.19 new text begin its levy authority through a levy on the referendum market value of the area, as defined new text end 51.20 new text begin in Minnesota Statutes, section 126C.01, subdivision 3, in lieu of a levy on the net tax new text end 51.21 new text begin capacity of the area. If an authority exercises its option under this section, the intent to do new text end 51.22 new text begin so must be stated in the joint agreement establishing the authority. new text end 51.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 51.24 new text begin without local approval, as provided by Minnesota Statutes, section 654.023, subdivision 1, new text end 51.25 new text begin paragraph (a). new text end 51.26ARTICLE 2 51.27PROPERTY TAX REFORM, ACCOUNTABILITY, VALUE, AND 51.28EFFICIENCY PROVISIONS 51.29    Section 1. new text begin [6.90] COUNCIL ON LOCAL RESULTS AND INNOVATION. new text end 51.30     new text begin Subdivision 1. new text end new text begin Creation. new text end new text begin The Council on Local Results and Innovation consists of new text end 51.31 new text begin 11 members, as follows: new text end 51.32 new text begin (1) the state auditor; new text end 52.1 new text begin (2) two persons who are not members of the legislature, appointed by the chair of the new text end 52.2 new text begin Property and Local Sales Tax Division of the house of representatives Taxes Committee; new text end 52.3 new text begin (3) two persons who are not members of the legislature, appointed by the designated new text end 52.4 new text begin lead minority member of the Property and Local Sales Tax Division of the house of new text end 52.5 new text begin representatives Taxes Committee; new text end 52.6 new text begin (4) two persons who are not members of the legislature, appointed by the chair of new text end 52.7 new text begin the Taxes Division on Property Taxes of the senate Taxes Committee; new text end 52.8 new text begin (5) two persons who are not members of the legislature, appointed by the designated new text end 52.9 new text begin lead minority member of the Taxes Division on Property Taxes of the senate Taxes new text end 52.10 new text begin Committee; new text end 52.11 new text begin (6) one person who is not a member of the legislature, appointed by the Association new text end 52.12 new text begin of Minnesota Counties; and new text end 52.13 new text begin (7) one person who is not a member of the legislature, appointed by the League new text end 52.14 new text begin of Minnesota Cities. new text end 52.15 new text begin Each appointment under clauses (2) to (5) must include one person with expertise new text end 52.16 new text begin or interest in county government and one person with expertise or interest in city new text end 52.17 new text begin government. The appointing authorities must use their best efforts to ensure that a majority new text end 52.18 new text begin of council members have experience with local performance measurement systems. The new text end 52.19 new text begin membership of the council must include geographically balanced representation as well as new text end 52.20 new text begin representation balanced between large and small jurisdictions. The appointments under new text end 52.21 new text begin clauses (2) to (7) must be made within two months of the date of enactment. new text end 52.22 new text begin Appointees to the council under clauses (2) to (5) serve terms of four years, except new text end 52.23 new text begin that one of each of the initial appointments under clauses (2) to (5) shall serve a term of new text end 52.24 new text begin two years; each appointing agent must designate which appointee is serving the two-year new text end 52.25 new text begin term. Subsequent appointments for members appointed under clauses (2) to (5) must new text end 52.26 new text begin be made by the council, including appointments to replace any appointees who might new text end 52.27 new text begin resign from the council prior to completion of their term. Appointees under clauses (2) to new text end 52.28 new text begin (5) are not eligible to vote on appointing their successor, nor on the successors of other new text end 52.29 new text begin appointees whose terms are expiring contemporaneously. In making appointments, the new text end 52.30 new text begin council shall make all possible efforts to reflect the geographical distribution and meet the new text end 52.31 new text begin qualifications of appointees required of the initial appointees. Subsequent appointments new text end 52.32 new text begin for members appointed under clauses (6) and (7) must be made by the original appointing new text end 52.33 new text begin authority. Appointees to the council under clauses (2) to (7) may serve no more than two new text end 52.34 new text begin consecutive terms. new text end 52.35     new text begin Subd. 2. new text end new text begin Duties. new text end new text begin (a) By February 15, 2011, the council shall develop a standard new text end 52.36 new text begin set of approximately ten performance measures for counties and ten performance new text end 53.1 new text begin measures for cities that will aid residents, taxpayers, and state and local elected officials new text end 53.2 new text begin in determining the efficacy of counties and cities in providing services, and measure new text end 53.3 new text begin residents' opinions of those services. In developing its measures, the council must solicit new text end 53.4 new text begin input from private citizens. Counties and cities that elect to participate in the standard new text end 53.5 new text begin measures system shall report their results to the state auditor under section 6.91, who new text end 53.6 new text begin shall compile the results and make them available to all interested parties by publishing new text end 53.7 new text begin them on the auditor's Web site and report them to the legislative tax committees. Each new text end 53.8 new text begin year after the initial designation of performance measures, the council shall evaluate the new text end 53.9 new text begin usefulness of the standard set of performance measures and may revise the set by adding new text end 53.10 new text begin or removing measures as it deems appropriate. new text end 53.11 new text begin (b) By February 15, 2012, the council shall develop minimum standards for new text end 53.12 new text begin comprehensive performance measurement systems, which may vary by size and type new text end 53.13 new text begin of governing jurisdiction. new text end 53.14 new text begin (c) In addition to its specific duties under paragraphs (a) and (b), the council new text end 53.15 new text begin shall generally promote the use of performance measurement for governmental entities new text end 53.16 new text begin across the state and shall serve as a resource for all governmental entities seeking to new text end 53.17 new text begin implement a system of local performance measurement. The council may highlight and new text end 53.18 new text begin promote systems that are innovative, or are ones that it deems to be best practices of local new text end 53.19 new text begin performance measurement systems across the state and nation. The council should give new text end 53.20 new text begin preference in its recommendations to systems that are results-oriented. The council may, new text end 53.21 new text begin with the cooperation of the state auditor, establish and foster a collaborative network new text end 53.22 new text begin of practitioners of local performance measurement systems. The council may support new text end 53.23 new text begin the Association of Minnesota Counties and the League of Minnesota Cities to seek and new text end 53.24 new text begin receive private funding to provide expert technical assistance to local governments for new text end 53.25 new text begin the purposes of replicating best practices. new text end 53.26     new text begin Subd. 3. new text end new text begin Reports. new text end new text begin (a) The council shall report its initial set of standard performance new text end 53.27 new text begin measures to the Property and Local Sales Tax Division of the house of representatives new text end 53.28 new text begin Taxes Committee and the Taxes Division on Property Taxes of the senate Taxes Committee new text end 53.29 new text begin by February 28, 2011. new text end 53.30 new text begin (b) By February 1 of each subsequent year, the council shall report to the committees new text end 53.31 new text begin with jurisdiction over taxes in the house of representatives and the senate on participation new text end 53.32 new text begin in and results of the performance measurement system, along with any revisions in the new text end 53.33 new text begin standard set of performance measures for the upcoming year. These reports may be made new text end 53.34 new text begin by the state auditor in lieu of the council if agreed to by the auditor and the council. new text end 53.35     new text begin Subd. 4. new text end new text begin Operation of council. new text end new text begin (a) The state auditor shall convene the initial new text end 53.36 new text begin meeting of the council. new text end 54.1 new text begin (b) The chair of the council shall be elected by the members. Once elected, a chair new text end 54.2 new text begin shall serve a term of two years. new text end 54.3 new text begin (c) Members of the council serve without compensation. new text end 54.4 new text begin (d) Council members shall share and rotate responsibilities for administrative new text end 54.5 new text begin support of the council. new text end 54.6 new text begin (e) Chapter 13D does not apply to meetings of the council. Meetings of the council new text end 54.7 new text begin must be open to the public and the council must provide notice of a meeting on the state new text end 54.8 new text begin auditor's Web site at least seven days before the meeting. A meeting of the council occurs new text end 54.9 new text begin when a quorum is present. new text end 54.10 new text begin (f) The council must meet at least two times prior to the initial release of the standard new text end 54.11 new text begin set of measurements. After the initial set has been developed, the council must meet a new text end 54.12 new text begin minimum of once per year. new text end 54.13     new text begin Subd. 5. new text end new text begin Termination. new text end new text begin The council expires on January 1, 2020. new text end 54.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 54.15    Sec. 2. new text begin [6.91] LOCAL PERFORMANCE MEASUREMENT AND REPORTING. new text end 54.16     new text begin Subdivision 1. new text end new text begin Reports of local performance measures. new text end new text begin (a) A county or city new text end 54.17 new text begin that elects to participate in the standard measures program must report its results to its new text end 54.18 new text begin citizens annually through publication, direct mailing, posting on the jurisdiction's Web new text end 54.19 new text begin site, or through a public hearing at which the budget and levy will be discussed and public new text end 54.20 new text begin input allowed. new text end 54.21 new text begin (b) Each year, jurisdictions participating in the local performance measurement new text end 54.22 new text begin and improvement program must file a report with the state auditor by July 1, in a form new text end 54.23 new text begin prescribed by the auditor. All reports must include a declaration that the jurisdiction has new text end 54.24 new text begin complied with, or will have complied with by the end of the year, the requirement in new text end 54.25 new text begin paragraph (a). For jurisdictions participating in the standard measures program, the report new text end 54.26 new text begin shall consist of the jurisdiction's results for the standard set of performance measures new text end 54.27 new text begin under section 6.90, subdivision 2, paragraph (a). In 2012, jurisdictions participating in the new text end 54.28 new text begin comprehensive performance measurement program must submit a resolution approved by new text end 54.29 new text begin its local governing body indicating that it either has implemented or is in the process of new text end 54.30 new text begin implementing a local performance measurement system that meets the minimum standards new text end 54.31 new text begin specified by the council under section 6.90, subdivision 2, paragraph (b). In 2013 and new text end 54.32 new text begin thereafter, jurisdictions participating in the comprehensive performance measurement new text end 54.33 new text begin program must submit a statement approved by its local governing body affirming that new text end 54.34 new text begin it has implemented a local performance measurement system that meets the minimum new text end 54.35 new text begin standards specified by the council under section 6.90, subdivision 2, paragraph (b). new text end 55.1     new text begin Subd. 2. new text end new text begin Benefits of participation. new text end new text begin (a) A county or city that elects to participate new text end 55.2 new text begin in the standard measures program for 2011 is: (1) eligible for per capita reimbursement new text end 55.3 new text begin of $0.14 per capita in 2012, but not to exceed $25,000 for any government entity; and new text end 55.4 new text begin (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if new text end 55.5 new text begin levy limits are in effect. new text end 55.6 new text begin (b) Any county or city that elects to participate in the standard measures program for new text end 55.7 new text begin 2012 is eligible for per capita reimbursement of $0.14 per capita in 2013, but not to exceed new text end 55.8 new text begin $25,000 for any government entity. Any jurisdiction participating in the comprehensive new text end 55.9 new text begin performance measurement program is exempt from levy limits under sections 275.70 to new text end 55.10 new text begin 275.74 for taxes payable in 2013 if levy limits are in effect. new text end 55.11 new text begin (c) Any county or city that elects to participate in the standard measures program for new text end 55.12 new text begin 2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita in new text end 55.13 new text begin the following year, but not to exceed $25,000 for any government entity. Any jurisdiction new text end 55.14 new text begin participating in the comprehensive performance measurement program for 2013 or any new text end 55.15 new text begin year thereafter is exempt from levy limits under sections 275.70 to 275.74 for taxes new text end 55.16 new text begin payable in the following year, if levy limits are in effect. new text end 55.17     new text begin Subd. 3. new text end new text begin Certification of participation. new text end new text begin (a) The state auditor shall certify to new text end 55.18 new text begin the commissioner of revenue by August 1 of each year the counties and cities that are new text end 55.19 new text begin participating in the standard measures program and the comprehensive performance new text end 55.20 new text begin measurement program. new text end 55.21 new text begin (b) The commissioner of revenue shall make per capita aid payments under this new text end 55.22 new text begin section on the second payment date specified in section 477A.015, in the same year that new text end 55.23 new text begin the measurements were reported. new text end 55.24 new text begin (c) The commissioner of revenue shall notify each county and city that is entitled to new text end 55.25 new text begin exemption from levy limits by August 10 of each levy year. new text end 55.26     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin (a) The amount necessary to fund obligations to counties new text end 55.27 new text begin under subdivision 2 is annually appropriated from the general fund to the commissioner of new text end 55.28 new text begin revenue. new text end 55.29 new text begin (b) The amount necessary to fund obligations to cities under subdivision 2 is new text end 55.30 new text begin annually appropriated from the general fund to the commissioner of revenue. new text end 55.31 new text begin (c) The sum of $6,000 in fiscal year 2011 and $2,000 in each fiscal year thereafter is new text end 55.32 new text begin annually appropriated from the general fund to the state auditor to carry out the auditor's new text end 55.33 new text begin responsibilities under sections 6.90 to 6.91. new text end 55.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective December 31, 2010. new text end 56.1    Sec. 3. new text begin [270C.991] PROPERTY TAX SYSTEM BENCHMARKS AND new text end 56.2 new text begin CRITICAL INDICATORS. new text end 56.3     new text begin Subdivision 1. new text end new text begin Purpose. new text end new text begin State policy makers should be provided with the tools to new text end 56.4 new text begin create a more accountable and efficient property tax system. This section provides the new text end 56.5 new text begin principles and available tools necessary to work toward achieving that goal. new text end 56.6     new text begin Subd. 2. new text end new text begin Property tax principles. new text end new text begin To better evaluate the various property tax new text end 56.7 new text begin proposals that come before the legislature, the following basic property tax principles new text end 56.8 new text begin should be taken into consideration. The property taxes proposed should be: new text end 56.9 new text begin (1) transparent and understandable; new text end 56.10 new text begin (2) simple and efficient; new text end 56.11 new text begin (3) equitable; new text end 56.12 new text begin (4) stable and predictable; new text end 56.13 new text begin (5) compliance and accountability; new text end 56.14 new text begin (6) competitive, both nationally and globally; and new text end 56.15 new text begin (7) responsive to economic conditions. new text end 56.16     new text begin Subd. 3. new text end new text begin Major indicators. new text end new text begin There are many different types of indicators available to new text end 56.17 new text begin legislators to evaluate tax legislation. Indicators are useful to have available as benchmarks new text end 56.18 new text begin when legislators are contemplating changes. Each tool has its own limitation, and no one new text end 56.19 new text begin tool is perfect or should be used independently. Some of the tools measure the global new text end 56.20 new text begin characteristics of the entire tax system, while others are only a measure of the property tax new text end 56.21 new text begin impacts and its administration. The following is a list of the available major indicators: new text end 56.22 new text begin (1) property tax principles scale, the components of which are listed in subdivision new text end 56.23 new text begin 2, as they relate to the various features of the property tax system; new text end 56.24 new text begin (2) price of government report, as required under section 16A.102; new text end 56.25 new text begin (3) tax incidence report, as required under section 270C.13; new text end 56.26 new text begin (4) tax expenditure budget and report, as required under section 270C.11; new text end 56.27 new text begin (5) state tax rankings; new text end 56.28 new text begin (6) property tax levy plus aid data, and market value and net tax capacity data, by new text end 56.29 new text begin taxing district for current and past years; new text end 56.30 new text begin (7) effective tax rate (tax as a percent of market value) and the equalized effective new text end 56.31 new text begin tax rate (effective tax rate adjusted for assessment differences); new text end 56.32 new text begin (8) assessment sales ratio study, as required under section 127A.48; new text end 56.33 new text begin (9) "Voss" database, which matches homeowner property taxes and household new text end 56.34 new text begin income; new text end 56.35 new text begin (10) revenue estimates under section 270C.11, subdivision 5, and state fiscal notes new text end 56.36 new text begin under section 477A.03, subdivision 2b; and new text end 57.1 new text begin (11) local impact notes, with improved local analysis as described in subdivision 7. new text end 57.2     new text begin Subd. 4. new text end new text begin Property tax working group. new text end new text begin (a) A property tax working group is new text end 57.3 new text begin established as provided in this subdivision. The goals of the working group are: new text end 57.4 new text begin (1) to investigate ways to simplify the property tax system and make advisory new text end 57.5 new text begin recommendations on ways to make the system more understandable; new text end 57.6 new text begin (2) to reexamine the property tax calendar to determine what changes could be made new text end 57.7 new text begin to shorten the two-year cycle from assessment through property tax collection; and new text end 57.8 new text begin (3) to determine the cost versus the benefits of the various property tax components, new text end 57.9 new text begin including property classifications, credits, aids, exclusions, exemptions, and abatements, new text end 57.10 new text begin and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways. new text end 57.11 new text begin (b) The 13-member working group shall consist of the following members: new text end 57.12 new text begin (1) two state representatives, both appointed by the chair of the house of new text end 57.13 new text begin representatives Taxes Committee, one from the majority party and one from the minority new text end 57.14 new text begin party; new text end 57.15 new text begin (2) two senators, both appointed by the chair of the senate Taxes Committee, one new text end 57.16 new text begin from the majority party and one from the minority party; new text end 57.17 new text begin (3) the commissioner of revenue, or designee; new text end 57.18 new text begin (4) one person, appointed by the Association of Minnesota Counties; new text end 57.19 new text begin (5) one person, appointed by the League of Minnesota Cities; new text end 57.20 new text begin (6) one person, appointed by the Minnesota Association of Townships; new text end 57.21 new text begin (7) one person, appointed by the Minnesota Chamber of Commerce; new text end 57.22 new text begin (8) one person, appointed by the Minnesota Association of Assessing Officers; new text end 57.23 new text begin (9) two homeowners, one who is under 65 years of age, and one who is 65 years of new text end 57.24 new text begin age or older, both appointed by the commissioner of revenue; and new text end 57.25 new text begin (10) one person, appointed by Minnesota's two major farm organizations. new text end 57.26 new text begin The commissioner of revenue shall chair the initial meeting, and the working new text end 57.27 new text begin group shall elect a chair at that initial meeting. The working group will meet at the call new text end 57.28 new text begin of the chair. Members of the working group shall serve without compensation. The new text end 57.29 new text begin commissioner of revenue must provide administrative support to the working group. new text end 57.30 new text begin Chapter 13D does not apply to meetings of the working group. Meetings of the working new text end 57.31 new text begin group must be open to the public and the working group must provide notice of a meeting new text end 57.32 new text begin to potentially interested persons at least seven days before the meeting. A meeting of the new text end 57.33 new text begin council occurs when a quorum is present. new text end 57.34 new text begin (c) The working group shall make its advisory recommendations to the chairs of the new text end 57.35 new text begin house of representatives and senate Taxes Committees on or before February 1, 2012, at new text end 58.1 new text begin which time the working group shall be finished and this subdivision expires. The advisory new text end 58.2 new text begin recommendations should be reviewed by the Taxes Committee under subdivision 5. new text end 58.3     new text begin Subd. 5. new text end new text begin Taxes Committee review and resolution. new text end new text begin On or before March 1, new text end 58.4 new text begin 2012, and every two years thereafter, the house of representatives and senate Taxes new text end 58.5 new text begin Committees must review the major indicators as contained in subdivision 3, and ascertain new text end 58.6 new text begin the accountability and efficiency of the property tax system. The house of representatives new text end 58.7 new text begin and senate Taxes Committees shall prepare a resolution on targets and benchmarks for new text end 58.8 new text begin use during the current biennium. new text end 58.9     new text begin Subd. 6. new text end new text begin Department of Revenue; revenue estimates. new text end new text begin As provided under new text end 58.10 new text begin section 270C.11, subdivision 5, the Department of Revenue is required to prepare an new text end 58.11 new text begin estimate of the effect on the state's tax revenues which result from the passage of a new text end 58.12 new text begin legislative bill establishing, extending, or restricting a tax expenditure. Beginning new text end 58.13 new text begin with the 2011 legislative session, those revenue estimates must also identify how the new text end 58.14 new text begin property tax principles contained in subdivision 2 apply to the proposed tax changes. The new text end 58.15 new text begin commissioner of revenue shall develop a scale for measuring the appropriate principles new text end 58.16 new text begin for each proposed change. The department shall quantify the effects, if possible, or at a new text end 58.17 new text begin minimum, shall identify the relevant factors so that legislators are aware of possible new text end 58.18 new text begin outcomes, including administrative difficulties and cost. The interaction of property tax new text end 58.19 new text begin shifting should be identified and quantified to the degree possible. new text end 58.20     new text begin Subd. 7. new text end new text begin Appropriation. new text end new text begin The sum of $30,000 in fiscal year 2011 and $25,000 in new text end 58.21 new text begin each fiscal year thereafter is appropriated from the general fund to the commissioner of new text end 58.22 new text begin revenue to carry out the commissioner's added responsibilities under subdivision 6. new text end 58.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 58.24    Sec. 4. Minnesota Statutes 2008, section 273.1384, is amended by adding a subdivision 58.25to read: 58.26     new text begin Subd. 3a. new text end new text begin Reimbursement reductions. new text end new text begin (a) Each year, each county's reimbursement new text end 58.27 new text begin under this section shall be reduced by a uniform percentage so that the total reduction in new text end 58.28 new text begin reimbursements equals the sum of: (i) one-half of the amount appropriated under section new text end 58.29 new text begin 6.91, subdivision 4; and (ii) one-half of the total amount appropriated under section new text end 58.30 new text begin 270C.991, subdivision 7. new text end 58.31 new text begin (b) Each year, each city's reimbursement under this section shall be reduced by a new text end 58.32 new text begin uniform percentage so that the total reduction in reimbursements equals the sum of: (i) new text end 58.33 new text begin one-half of the amount appropriated under section 6.91, subdivision 4; and (ii) one-half of new text end 58.34 new text begin the total amount appropriated under section 270C.991, subdivision 7. new text end 59.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2011 and new text end 59.2 new text begin thereafter. new text end 59.3ARTICLE 3 59.4LOCAL SALES TAX 59.5    Section 1. Minnesota Statutes 2008, section 297A.99, subdivision 1, is amended to 59.6read: 59.7    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 59.8impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if 59.9permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision 59.10enacted and imposed the tax before January 1, 1982, and its predecessor provision. 59.11    (b) This section governs the imposition of a general sales tax by the political 59.12subdivision. The provisions of this section preempt the provisions of any special law: 59.13    (1) enacted before June 2, 1997, or 59.14    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 59.15provision from this section's rules by reference. 59.16    (c) This section does not apply to or preempt a sales tax on motor vehicles or a 59.17special excise tax on motor vehicles. 59.18    (d) Until after May 31, 2010 new text begin 2012 new text end , a political subdivision may not advertise, 59.19promote, expend funds, or hold a referendum to support imposing new text begin or extending new text end a local 59.20option sales tax unless it is for extension of an existing tax or the tax was authorized by a 59.21special law enacted prior to May 20, 2008. new text begin For purposes of this section, "extending" a tax new text end 59.22 new text begin means using an existing tax to fund one or more projects or purposes not authorized in the new text end 59.23 new text begin existing special law, or increasing the amount of money allowed to be spent on projects or new text end 59.24 new text begin purposes authorized under the existing special law. new text end 59.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.26    Sec. 2. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, 59.27chapter 88, article 4, section 19, is amended to read: 59.28    Sec. 25. ROCHESTER LODGING TAX. 59.29    Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section 59.30469.190 or 477A.016, or any other law, the city of Rochester may impose an additional 59.31tax of one percent on the gross receipts from the furnishing for consideration of lodging at 59.32a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it 59.33for a continuous period of 30 days or more. 60.1    Subd. 1a. Authorization. Notwithstanding Minnesota Statutes, section 469.190 or 60.2477A.016 , or any other law, and in addition to the tax authorized by subdivision 1, the city 60.3of Rochester may impose an additional tax of one percent on the gross receipts from the 60.4furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or 60.5resort, other than the renting or leasing of it for a continuous period of 30 days or more only 60.6upon the approval of the city governing body of a total financial package for the project. 60.7    Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed 60.8under subdivision 1 must be used by the city to fund a local convention or tourism bureau 60.9for the purpose of marketing and promoting the city as a tourist or convention center. 60.10(b) The gross proceeds from the one percent tax imposed under subdivision 1a shall 60.11be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo 60.12Civic Center and related skyway access, lighting, parking, or landscaping; and (2) for 60.13payment of any principal, interest, or premium on bonds issued to finance the construction, 60.14renovation, improvement, and expansion of the Mayo Civic Center Complex. 60.15     new text begin Subd. 2a. new text end new text begin Bonds. new text end new text begin The city of Rochester may issue general obligation bonds of the new text end 60.16 new text begin city, in one or more series, in the aggregate principal amount not to exceed $43,500,000, new text end 60.17 new text begin to pay for capital and administrative costs for the design, construction, renovation, new text end 60.18 new text begin improvement, and expansion of the Mayo Civic Center Complex, and related skyway, new text end 60.19 new text begin access, lighting, parking, and landscaping. The city may pledge the lodging tax authorized new text end 60.20 new text begin by subdivision 1a and the food and beverage tax authorized under Laws 2009, chapter new text end 60.21 new text begin 88, article 4, section 23, to the payment of the bonds. The debt represented by the bonds new text end 60.22 new text begin is not included in computing any debt limitations applicable to the city, and the levy of new text end 60.23 new text begin taxes required by Minnesota Statutes, section 475.61, to pay the principal of and interest new text end 60.24 new text begin on the bonds is not subject to any levy limitation or included in computing or applying new text end 60.25 new text begin any levy limitation applicable to the city. new text end 60.26    Subd. 3. Expiration of taxing authority. The authority of the city to impose a tax 60.27under subdivision 1a shall expire when the principal and interest on any bonds or other 60.28obligations issued prior to December 31, 2014, to finance the construction, renovation, 60.29improvement, and expansion of the Mayo Civic Center Complex and related skyway 60.30access, lighting, parking, or landscaping have been paid new text begin , including any bonds issued to new text end 60.31 new text begin refund such bonds, new text end or at an earlier time as the city shall, by ordinance, determine. new text begin Any new text end 60.32 new text begin funds remaining after completion of the project and retirement or redemption of the bonds new text end 60.33 new text begin shall be placed in the general fund of the city. new text end 60.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 60.35 new text begin the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section new text end 60.36 new text begin 645.021, subdivisions 2 and 3. new text end 61.1    Sec. 3. Laws 2009, chapter 88, article 4, section 23, subdivision 4, is amended to read: 61.2    Subd. 4. Expiration of taxing authority. The authority granted under subdivision 61.31 to the city to impose a one percent tax on food and beverages shall expire when the 61.4principal and interest on any bonds or other obligations issued prior to December 31, 61.52014, to finance the construction, renovation, improvement, and expansion of the Mayo 61.6Civic Center Complex and related skyway access, lighting, parking, or landscaping new text begin , and new text end 61.7 new text begin any bonds issued to refund such bonds, new text end have been paid or at an earlier time as the city 61.8shall, by ordinance, determine. new text begin Any funds remaining after completion of the project and new text end 61.9 new text begin retirement or redemption of the bonds shall be placed in the general fund of the city. new text end 61.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 61.11 new text begin the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section new text end 61.12 new text begin 645.021, subdivisions 2 and 3. new text end 61.13    Sec. 4. new text begin CITY OF DETROIT LAKES; LOCAL TAXES AUTHORIZED. new text end 61.14     new text begin Subdivision 1. new text end new text begin Food and beverage tax authorized. new text end new text begin Notwithstanding Minnesota new text end 61.15 new text begin Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the new text end 61.16 new text begin city of Detroit Lakes may, by ordinance, impose a sales tax of one-half of one percent new text end 61.17 new text begin on the gross receipts of all food and beverages by a restaurant or place of refreshment, new text end 61.18 new text begin as defined by resolution of the city, that is located within the city. For purposes of this new text end 61.19 new text begin section, "food and beverages" include retail on-sale of intoxicating liquor and fermented new text end 61.20 new text begin malt beverages. new text end 61.21     new text begin Subd. 2. new text end new text begin Entertainment tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 61.22 new text begin 477A.016, or any ordinance, city charter, or other provision of law, the city of Detroit new text end 61.23 new text begin Lakes may, by ordinance, impose a tax of one-half of one percent on the gross receipts new text end 61.24 new text begin on admission to an entertainment event located within the city. For purposes of this new text end 61.25 new text begin section, "entertainment event" means any event for which persons pay money in order to new text end 61.26 new text begin be admitted to the premises and to be entertained, including, but not limited to, theaters, new text end 61.27 new text begin concerts, and sporting events. new text end 61.28     new text begin Subd. 3. new text end new text begin Use of proceeds from authorized taxes. new text end new text begin The proceeds of the taxes new text end 61.29 new text begin imposed under subdivisions 1 and 2 must be used by the city to pay all or a portion of the new text end 61.30 new text begin expenses of the following projects: new text end 61.31 new text begin (1) control of flowering rush infestation; new text end 61.32 new text begin (2) construction and improvement of bike trail facilities; new text end 61.33 new text begin (3) parking improvements near public facilities; and new text end 61.34 new text begin (4) redevelopment of the area returned to the city as a result of realignment of new text end 61.35 new text begin Highway 10. new text end 62.1     new text begin Subd. 4. new text end new text begin Expiration of taxing authority. new text end new text begin The taxes authorized under subdivisions 1 new text end 62.2 new text begin and 2 expire when the governing body of the city determines that sufficient revenues have new text end 62.3 new text begin been raised to finance the projects in subdivision 3, including the amount to prepay to retire new text end 62.4 new text begin at maturity the principal, interest, and premium due on any bonds issued for the projects. new text end 62.5     new text begin Subd. 5. new text end new text begin Collection, administration, and enforcement. new text end new text begin The city may enter into new text end 62.6 new text begin an agreement with the commissioner of revenue to administer, collect, and enforce the new text end 62.7 new text begin taxes under subdivisions 1 and 2. If the commissioner agrees to collect the tax, the new text end 62.8 new text begin provisions of Minnesota Statutes, section 297A.99, related to collection, administration, new text end 62.9 new text begin and enforcement apply. new text end 62.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 62.11 new text begin the city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, new text end 62.12 new text begin section 645.021, subdivisions 2 and 3. new text end 62.13    Sec. 5. new text begin CITY OF MARSHALL; SALES AND USE TAX. new text end 62.14     new text begin Subdivision 1. new text end new text begin Authorization. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 62.15 new text begin 297A.99, subdivisions 1, 2, and 3, or 477A.016, or any other law, ordinance, or city new text end 62.16 new text begin charter, the city of Marshall, if imposed within two years of the date of final enactment of new text end 62.17 new text begin this section, may impose any or all of the taxes described in this section. new text end 62.18     new text begin Subd. 2. new text end new text begin Bonds. new text end new text begin (a) The city of Marshall may issue bonds under Minnesota Statutes, new text end 62.19 new text begin chapter 475, to finance all or a portion of the costs of the new and existing facilities of the new text end 62.20 new text begin Minnesota Emergency Response and Industry Training Center and all or part of the costs new text end 62.21 new text begin of the facilities of the Southwest Minnesota Regional Amateur Sports Center, and may new text end 62.22 new text begin issue bonds to refund bonds previously issued. Authorized expenses include, but are not new text end 62.23 new text begin limited to, acquiring property, predesign, design, and paying construction, furnishing, and new text end 62.24 new text begin equipment costs related to these facilities. The aggregate principal amount of bonds issued new text end 62.25 new text begin under this subdivision may not exceed $17,290,000, plus an amount to be applied to the new text end 62.26 new text begin payment of the costs of issuing the bonds. The bonds may be paid from or secured by new text end 62.27 new text begin any funds available to the city of Marshall. new text end 62.28 new text begin (b) The bonds are not included in computing any debt limitation applicable to the new text end 62.29 new text begin city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay new text end 62.30 new text begin principal and interest on the bonds, is not subject to any levy limitation. A separate new text end 62.31 new text begin election to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 62.32     new text begin Subd. 3. new text end new text begin Lodging tax. new text end new text begin The city of Marshall may impose by ordinance a tax of up to new text end 62.33 new text begin 1-1/2 percent on the gross receipts subject to the lodging tax under Minnesota Statutes, new text end 62.34 new text begin section 469.190, for the purposes specified in subdivision 4. This lodging tax is in addition new text end 62.35 new text begin to any tax imposed under Minnesota Statutes, section 469.190, and may be imposed new text end 63.1 new text begin within a tax district defined by the city council, which may include areas of the city of new text end 63.2 new text begin Marshall which are not contiguous. new text end 63.3     new text begin Subd. 4. new text end new text begin Use of lodging tax revenues. new text end new text begin The revenues derived from the tax imposed new text end 63.4 new text begin under subdivision 3 must be used by the city of Marshall to pay the costs of collecting new text end 63.5 new text begin and administering the lodging tax, to pay all or part of the operating costs of the new and new text end 63.6 new text begin existing facilities of the Minnesota Emergency Response and Industry Training Center, new text end 63.7 new text begin including the payment of debt service on bonds issued under subdivision 2, and to pay new text end 63.8 new text begin all or part of the operating costs of the facilities of the Southwest Minnesota Regional new text end 63.9 new text begin Amateur Sports Center, including the payment of debt service on bonds issued under new text end 63.10 new text begin subdivision 2. new text end 63.11     new text begin Subd. 5. new text end new text begin Food and beverages tax. new text end new text begin The city of Marshall may impose by ordinance new text end 63.12 new text begin an additional sales tax of up to 1-1/2 percent on all sales of food and beverages primarily new text end 63.13 new text begin for consumption on the premises by restaurants and places of refreshment that occur new text end 63.14 new text begin in the city of Marshall. The provisions of Minnesota Statutes, section 297A.99, new text end 63.15 new text begin except subdivisions 1, 2, and 3, govern the imposition, administration, collection, and new text end 63.16 new text begin enforcement of the tax authorized under this subdivision. new text end 63.17     new text begin Subd. 6. new text end new text begin Use of food and beverages tax. new text end new text begin The revenues derived from the tax new text end 63.18 new text begin imposed under subdivision 5 must be used by the city of Marshall to pay the costs of new text end 63.19 new text begin collecting and administering the food and beverages tax, to pay all or part of the operating new text end 63.20 new text begin costs of the new and existing facilities of the Minnesota Emergency Response and new text end 63.21 new text begin Industry Training Center, including the payment of debt service on bonds issued under new text end 63.22 new text begin subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest new text end 63.23 new text begin Minnesota Regional Amateur Sports Center, including the payment of debt service on new text end 63.24 new text begin bonds issued under subdivision 2. new text end 63.25     new text begin Subd. 7. new text end new text begin Termination of taxes. new text end new text begin The taxes imposed under subdivisions 3 and 5 new text end 63.26 new text begin expire at the earlier of (1) 30 years after the tax is first imposed, or (2) when the city new text end 63.27 new text begin council determines that the amount of revenues received from the taxes to pay for the new text end 63.28 new text begin capital, operating, and administrative costs of the facilities under subdivisions 2, 4, new text end 63.29 new text begin and 6 first equals or exceeds the amount authorized to be spent for the facilities plus new text end 63.30 new text begin the additional amount needed to pay the costs related to issuance of the bonds under new text end 63.31 new text begin subdivision 2, including interest on the bonds. Any funds remaining after payment of all new text end 63.32 new text begin the costs and retirement or redemption of the bonds must be placed in the general fund of new text end 63.33 new text begin the city. The taxes imposed under subdivisions 3 and 5 may expire at an earlier time if the new text end 63.34 new text begin city so determines by ordinance. new text end 64.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 64.2 new text begin governing body of the city of Marshall with Minnesota Statutes, section 645.021, new text end 64.3 new text begin subdivision 3. new text end 64.4    Sec. 6. new text begin GIANTS RIDGE RECREATION AREA TAXING AUTHORITY. new text end 64.5     new text begin Subdivision 1. new text end new text begin Additional taxes authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 64.6 new text begin section 477A.016, or any other law, ordinance, or charter provision to the contrary, the new text end 64.7 new text begin city of Biwabik, upon approval both by its governing body and by the vote of at least new text end 64.8 new text begin seven members of the Iron Range Resources and Rehabilitation Board, may impose any or new text end 64.9 new text begin all of the taxes described in this section. new text end 64.10     new text begin Subd. 2. new text end new text begin Use of proceeds. new text end new text begin The proceeds of any taxes imposed under this section, new text end 64.11 new text begin less refunds and costs of collection, must be deposited into the Iron Range Resources and new text end 64.12 new text begin Rehabilitation Board account enterprise fund created under the provisions of Minnesota new text end 64.13 new text begin Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the new text end 64.14 new text begin commissioner of the Iron Range Resources and Rehabilitation Board, upon approval by new text end 64.15 new text begin the vote of at least seven members of the Iron Range Resources and Rehabilitation Board, new text end 64.16 new text begin to pay costs for the construction, renovation, improvement, expansion, and maintenance new text end 64.17 new text begin of public recreational facilities located in those portions of the city within the Giants new text end 64.18 new text begin Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, subdivision 7, or new text end 64.19 new text begin to pay any principal, interest, or premium on any bond issued to finance the construction, new text end 64.20 new text begin renovation, improvement, or expansion of such public recreational facilities. new text end 64.21     new text begin Subd. 3. new text end new text begin Lodging tax. new text end new text begin The city of Biwabik, upon approval both by its governing new text end 64.22 new text begin body and by the vote of at least seven members of the Iron Range Resources and new text end 64.23 new text begin Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the new text end 64.24 new text begin gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This new text end 64.25 new text begin tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may new text end 64.26 new text begin be imposed only on gross lodging receipts generated within the Giants Ridge Recreation new text end 64.27 new text begin Area as defined in Minnesota Statutes, section 298.22, subdivision 7. new text end 64.28     new text begin Subd. 4. new text end new text begin Admissions and recreation tax. new text end new text begin (a) The city of Biwabik, upon approval new text end 64.29 new text begin both by its governing body and by the vote of at least seven members of the Iron Range new text end 64.30 new text begin Resources and Rehabilitation Board, may impose, by ordinance, a tax of not more than five new text end 64.31 new text begin percent on admission receipts to entertainment and recreational facilities and on receipts new text end 64.32 new text begin from the rental of recreation equipment, at sites within the Giants Ridge Recreation Area as new text end 64.33 new text begin defined in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota new text end 64.34 new text begin Statutes, section 297A.99, except for subdivisions 2 and 3, govern the imposition, new text end 64.35 new text begin administration, collection, and enforcement of the tax authorized in this subdivision. new text end 65.1 new text begin (b) If the city imposes the tax under paragraph (a), it must include in the ordinance new text end 65.2 new text begin an exemption for purchases of season tickets or passes. new text end 65.3     new text begin Subd. 5. new text end new text begin Food and beverage tax. new text end new text begin The city of Biwabik, upon approval both by its new text end 65.4 new text begin governing body and by the vote of at least seven members of the Iron Range Resources new text end 65.5 new text begin and Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more new text end 65.6 new text begin than one percent on sales of food and beverages primarily for consumption on or off new text end 65.7 new text begin the premises by restaurants and places of refreshment as defined by resolution of the new text end 65.8 new text begin city within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section new text end 65.9 new text begin 298.22, subdivision 7. The provisions of Minnesota Statutes, section 297A.99, except for new text end 65.10 new text begin subdivisions 2 and 3, govern the imposition, administration, collection, and enforcement new text end 65.11 new text begin of the tax authorized in this subdivision. new text end 65.12 new text begin EFFECTIVE DATE. new text end new text begin This section shall be effective the day after compliance with new text end 65.13 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3, by the governing body of the new text end 65.14 new text begin city of Biwabik. Notwithstanding Minnesota Statutes, section 645.021, subdivision 3, the new text end 65.15 new text begin city may comply with Minnesota Statutes, section 645.021, at any time before January new text end 65.16 new text begin 1, 2012. new text end 65.17ARTICLE 4 65.18PROPERTY TAXES - TECHNICAL 65.19    Section 1. Minnesota Statutes 2009 Supplement, section 134.34, subdivision 4, is 65.20amended to read: 65.21    Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library 65.22basic system support grant shall not be made to a regional public library system for a 65.23participating city or county which decreases the dollar amount provided for support for 65.24operating purposes of public library service below the amount provided by it for the 65.25second, or third preceding year, whichever is less. For purposes of this subdivision and 65.26subdivision 1, any funds provided under section 473.757, subdivision 2, for extending 65.27library hours of operation shall not be considered amounts provided by a city or county for 65.28support for operating purposes of public library service. This subdivision shall not apply 65.29to participating cities or counties where the adjusted net tax capacity of that city or county 65.30has decreased, if the dollar amount of the reduction in support is not greater than the dollar 65.31amount by which support would be decreased if the reduction in support were made in 65.32direct proportion to the decrease in adjusted net tax capacity. 65.33(b) For calendar year 2009 and later, in any calendar year in which a city's or 65.34county's aid under sections 477A.011 to 477A.014 or credits new text begin credit reimbursement new text end under 66.1section 273.1384 is reduced after the city or county has certified its levy payable in that 66.2year, it may reduce its local support by the lesser of: 66.3(1) ten percent; or 66.4(2) a percent equal to the ratio of the aid and credit new text begin reimbursement new text end reductions to the 66.5city's or county's revenue base, based on aids certified for the current calendar year. For 66.6calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and 66.7credit new text begin reimbursement new text end reductions under the December 2008 unallotment, as well as any 66.8aid and credit new text begin reimbursement new text end reductions in calendar year 2009. For pay 2009 only, the 66.9commissioner of revenue will calculate the reductions under this paragraph and certify 66.10them to the commissioner of education within 15 days of May 17, 2009. 66.11(c) For taxes payable in 2010 and later, in any payable year in which the total 66.12amounts certified for city or county aids under sections 477A.011 to 477A.014 are less 66.13than the total amounts paid under those sections in the previous calendar year, a city or 66.14county may reduce its local support by the lesser of: 66.15(1) ten percent; or 66.16(2) a percent equal to the ratio of: 66.17(i) the difference between (A) the sum of the aid it was paid under sections 477A.011 66.18to 477A.014 and the credits new text begin credit reimbursement new text end it received under section 66.19 new text begin 273.1384 new text end in the previous calendar year and (B) the sum of the aid it is certified to be paid 66.20in the current calendar year under sections 477A.011 to 477A.014 and the credits new text begin credit new text end 66.21 new text begin reimbursement new text end estimated to be paid under section new text begin new text end ; to 66.22(ii) its revenue base for the previous year, based on aids actually paid in the previous 66.23calendar year. The commissioner of revenue shall calculate the percent aid cut for each 66.24county and city under this paragraph and certify the percentage cuts to the commissioner 66.25of education by August 1 of the year prior to the year in which the reduced aids and credits 66.26 new text begin credit reimbursements new text end are to be paid. The percentage of reduction related to reductions to 66.27credits new text begin credit reimbursements new text end under section 273.1384 shall be based on the best estimation 66.28available as of July 30. 66.29(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its 66.30support for public libraries below the minimum level specified in subdivision 1. 66.31(e) For purposes of this subdivision, "revenue base" means the sum of: 66.32(1) its levy for taxes payable in the current calendar year, including the levy on 66.33the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), 66.34or 473F.08, subdivision 3, paragraph (a); 66.35(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and 66.36(3) its taconite aid in the current calendar year under sections 298.28 and 298.282. 67.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for support in calendar new text end 67.2 new text begin year 2009 and thereafter and for library grants paid in fiscal year 2010 and thereafter. new text end 67.3    Sec. 2. Minnesota Statutes 2008, section 270C.87, is amended to read: 67.4270C.87 REVISION OF MINNESOTA ASSESSORS' MANUAL. 67.5In accordance with the provisions of section new text begin new text end , the commissioner 67.6shall periodically revise the Minnesota assessors' manual. 67.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.8    Sec. 3. Minnesota Statutes 2008, section 270C.94, subdivision 3, is amended to read: 67.9    Subd. 3. Failure to appraise. When an assessor has failed to properly appraise at 67.10least one-fifth of the parcels of property in a district or county as provided in section 67.11273.01 , the commissioner shall new text begin may new text end appoint a special assessor and deputy assessor 67.12as necessary and cause a reappraisal to be made of the property due for reassessment 67.13in accordance with law. 67.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 67.15    Sec. 4. Minnesota Statutes 2008, section 272.025, subdivision 1, is amended to read: 67.16    Subdivision 1. Statement of exemption. (a) Except in the case of churches and 67.17houses of worship, property solely used for educational purposes by academies, colleges, 67.18universities or seminaries of learning, property owned by the state of Minnesota or any 67.19political subdivision thereof, and property exempt from taxation under section 272.02, 67.20subdivisions 9, 10, 13, 15, 18, 20, and 22 to 26 new text begin 25 new text end , and at the times provided in subdivision 67.213, a taxpayer claiming an exemption from taxation on property described in section 67.22272.02, subdivisions 1 to 33 , shall new text begin must new text end file a statement of exemption with the assessor of 67.23the assessment district in which the property is located. 67.24(b) A taxpayer claiming an exemption from taxation on property described in section 67.25272.02, subdivision 10 , shall new text begin must new text end file a statement of exemption with the commissioner 67.26of revenue, on or before February 15 of each year for which the taxpayer claims an 67.27exemption. 67.28(c) In case of sickness, absence or other disability or for good cause, the assessor 67.29 new text begin or the commissioner new text end may extend the time for filing the statement of exemption for a 67.30period not to exceed 60 days. 67.31(d) The commissioner of revenue shall prescribe the form and contents of the 67.32statement of exemption. 68.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2012 and new text end 68.2 new text begin thereafter. new text end 68.3    Sec. 5. Minnesota Statutes 2008, section 272.025, subdivision 3, is amended to read: 68.4    Subd. 3. Filing dates. new text begin (a) new text end The statement required by subdivision 1, paragraph 68.5(a), must be filed with the assessor by February 1 of the assessment year, however, any 68.6taxpayer who has filed the statement required by subdivision 1 more than 12 months prior 68.7to February 1, 1983, or February 1 of each third year after 1983, shall file a statement by 68.8February 1, 1983, and by February 1 of each third year thereafter. 68.9 new text begin (b) For churches and houses of worship, and property solely used for educational new text end 68.10 new text begin purposes by academies, colleges, universities, or seminaries of learning, no statement is new text end 68.11 new text begin required after the statement filed for the assessment year in which the exemption began. new text end 68.12 new text begin (c) This section does not apply to existing churches and houses of worship, and new text end 68.13 new text begin property solely used for educational purposes by academies, colleges, universities, or new text end 68.14 new text begin seminaries of learning that were exempt for taxes payable in 2011. new text end 68.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2012 and new text end 68.16 new text begin thereafter. new text end 68.17    Sec. 6. Minnesota Statutes 2008, section 272.029, subdivision 4, is amended to read: 68.18    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax 68.19under subdivision 3 shall file a report with the commissioner of revenue annually on or 68.20before February 1 detailing the amount of electricity in kilowatt-hours that was produced 68.21by the wind energy conversion system for the previous calendar year. The commissioner 68.22shall prescribe the form of the report. The report must contain the information required 68.23by the commissioner to determine the tax due to each county under this section for the 68.24current year. If an owner of a wind energy conversion system subject to taxation under 68.25this section fails to file the report by the due date, the commissioner of revenue shall 68.26determine the tax based upon the nameplate capacity of the system multiplied by a 68.27capacity factor of 40 new text begin 60 new text end percent. 68.28(b) On or before February 28, the commissioner of revenue shall notify the owner of 68.29the wind energy conversion systems of the tax due to each county for the current year and 68.30shall certify to the county auditor of each county in which the systems are located the tax 68.31due from each owner for the current year. 68.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with reports due on new text end 68.33 new text begin February 1, 2011, and thereafter. new text end 69.1    Sec. 7. Minnesota Statutes 2008, section 272.029, subdivision 7, is amended to read: 69.2    Subd. 7. Exemption. The tax imposed under this section does not apply to 69.3electricity produced by wind energy conversion systems located in a job opportunity 69.4building zone, designated under section , for the duration of the zone. The 69.5exemption applies beginning for the first calendar year after designation of the zone 69.6and applies to each calendar year that begins during the designation of the zone. new text begin The new text end 69.7 new text begin exemption only applies if the owner of the system is a qualified business under section new text end 69.8 new text begin 469.310, subdivision 11, who has entered into a business subsidy agreement that covers new text end 69.9 new text begin the land on which the system is situated. new text end 69.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 69.11    Sec. 8. Minnesota Statutes 2008, section 273.113, subdivision 3, is amended to read: 69.12    Subd. 3. Reimbursement for lost revenue. The county auditor shall certify 69.13to the commissioner of revenue, as part of the abstracts of tax lists required to be filed 69.14with the commissioner under section 275.29, the amount of tax lost to the county from 69.15the property tax credit under subdivision 2. Any prior year adjustments must also be 69.16certified in the abstracts of tax lists. The commissioner of revenue shall review the 69.17certifications to determine their accuracy. The commissioner may make the changes 69.18in the certification that are considered necessary or return a certification to the county 69.19auditor for corrections. The commissioner shall reimburse each taxing district new text begin , other than new text end 69.20 new text begin school districts, new text end for the taxes lost. The payments must be made at the time provided in 69.21section 473H.10 for payment to taxing jurisdictions in the same proportion that the ad 69.22valorem tax is distributed. new text begin Reimbursements to school districts must be made as provided new text end 69.23 new text begin in section 273.1392. new text end The amount necessary to make the reimbursements under this section 69.24is annually appropriated from the general fund to the commissioner of revenue. 69.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxes payable in new text end 69.26 new text begin 2009 and thereafter. new text end 69.27    Sec. 9. Minnesota Statutes 2009 Supplement, section 273.114, subdivision 2, is 69.28amended to read: 69.29    Subd. 2. Requirements. Class 2a or 2b property that had been assessed under 69.30Minnesota Statutes 2006, section 273.111, or that is part of an agricultural homestead 69.31under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is entitled to 69.32valuation and tax deferment under this section if: 69.33(1) the land consists of at least ten acres; 70.1(2) a conservation management plan for the land must be prepared by an approved 70.2plan writer and implemented during the period in which the land is subject to valuation 70.3and deferment under this section; 70.4(3) the land must be enrolled for a minimum of ten years; and 70.5(4) there are no delinquent property taxes on the land. new text begin ; and new text end 70.6Real estate may new text begin (5) the property is new text end not be new text begin also new text end enrolled for valuation and deferment 70.7under this section and section 273.111, new text begin or new text end 273.112, or 273.117, or chapter 290C, 70.8concurrently new text begin or 473H new text end . 70.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.10    Sec. 10. Minnesota Statutes 2008, section 273.1392, is amended to read: 70.11273.1392 PAYMENT; SCHOOL DISTRICTS. 70.12The amounts of new text begin bovine tuberculosis credit reimbursements under section 273.113; new text end 70.13conservation tax credits under section 273.119; disaster or emergency reimbursement 70.14under sections 273.1231 to 273.1235; homestead and agricultural credits under section 70.15273.1384 ; aids and credits under section 273.1398; wetlands reimbursement under 70.16section 275.295; enterprise zone property credit payments under section 469.171; and 70.17metropolitan agricultural preserve reduction under section 473H.10 for school districts, 70.18shall be certified to the Department of Education by the Department of Revenue. The 70.19amounts so certified shall be paid according to section 127A.45, subdivisions 9 and 13. 70.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxes payable in new text end 70.21 new text begin 2009 and thereafter. new text end 70.22    Sec. 11. Minnesota Statutes 2009 Supplement, section 275.065, subdivision 3, is 70.23amended to read: 70.24    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 70.25and the county treasurer shall deliver after November 10 and on or before November 24 70.26each year, by first class mail to each taxpayer at the address listed on the county's current 70.27year's assessment roll, a notice of proposed property taxes. Upon written request by 70.28the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 70.29instead of on paper or by ordinary mail. 70.30    (b) The commissioner of revenue shall prescribe the form of the notice. 70.31    (c) The notice must inform taxpayers that it contains the amount of property taxes 70.32each taxing authority proposes to collect for taxes payable the following year. In the 70.33case of a town, or in the case of the state general tax, the final tax amount will be its 71.1proposed tax. The notice must clearly state for each city new text begin that has a population over 500 new text end , 71.2county, school district, regional library authority established under section 134.201, and 71.3metropolitan taxing districts as defined in paragraph (i), the time and place of the new text begin a meeting new text end 71.4 new text begin for each new text end taxing authorities' regularly scheduled meetings new text begin authority new text end in which the budget 71.5and levy will be discussed and new text begin public input allowed, prior to new text end the final budget and levy 71.6determined, which must occur after November 24 new text begin determination new text end . The taxing authorities 71.7must provide the county auditor with the information to be included in the notice on or 71.8before the time it certifies its proposed levy under subdivision 1. The public must be 71.9allowed to speak at the meetings and the meetings shall new text begin that meeting, which must occur new text end 71.10 new text begin after November 24 and must new text end not be held before 6:00 p.m. It must provide a telephone 71.11number for the taxing authority that taxpayers may call if they have questions related to 71.12the notice and an address where comments will be received by mail. 71.13    (d) The notice must state for each parcel: 71.14    (1) the market value of the property as determined under section 273.11, and used 71.15for computing property taxes payable in the following year and for taxes payable in the 71.16current year as each appears in the records of the county assessor on November 1 of the 71.17current year; and, in the case of residential property, whether the property is classified as 71.18homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 71.19which the market values apply and that the values are final values; 71.20    (2) the items listed below, shown separately by county, city or town, and state general 71.21tax, net of the residential and agricultural homestead credit under section 273.1384, voter 71.22approved school levy, other local school levy, and the sum of the special taxing districts, 71.23and as a total of all taxing authorities: 71.24    (i) the actual tax for taxes payable in the current year; and 71.25    (ii) the proposed tax amount. 71.26    If the county levy under clause (2) includes an amount for a lake improvement 71.27district as defined under sections 103B.501 to 103B.581, the amount attributable for that 71.28purpose must be separately stated from the remaining county levy amount. 71.29    In the case of a town or the state general tax, the final tax shall also be its proposed 71.30tax unless the town changes its levy at a special town meeting under section 365.52. If a 71.31school district has certified under section 126C.17, subdivision 9, that a referendum will 71.32be held in the school district at the November general election, the county auditor must 71.33note next to the school district's proposed amount that a referendum is pending and that, if 71.34approved by the voters, the tax amount may be higher than shown on the notice. In the 71.35case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 71.36listed separately from the remaining amount of the city's levy. In the case of the city of 72.1St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 72.2remaining amount of the city's levy. In the case of Ramsey County, any amount levied 72.3under section 134.07 may be listed separately from the remaining amount of the county's 72.4levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 72.5under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 72.6proposed tax levy on the tax capacity subject to the areawide tax must each be stated 72.7separately and not included in the sum of the special taxing districts; and 72.8    (3) the increase or decrease between the total taxes payable in the current year and 72.9the total proposed taxes, expressed as a percentage. 72.10    For purposes of this section, the amount of the tax on homesteads qualifying under 72.11the senior citizens' property tax deferral program under chapter 290B is the total amount 72.12of property tax before subtraction of the deferred property tax amount. 72.13    (e) The notice must clearly state that the proposed or final taxes do not include 72.14the following: 72.15    (1) special assessments; 72.16    (2) levies approved by the voters after the date the proposed taxes are certified, 72.17including bond referenda and school district levy referenda; 72.18    (3) a levy limit increase approved by the voters by the first Tuesday after the first 72.19Monday in November of the levy year as provided under section 275.73; 72.20    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 72.21occurring after the date the proposed taxes are certified; 72.22    (5) amounts necessary to pay tort judgments against the taxing authority that become 72.23final after the date the proposed taxes are certified; and 72.24    (6) the contamination tax imposed on properties which received market value 72.25reductions for contamination. 72.26    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 72.27the county treasurer to deliver the notice as required in this section does not invalidate the 72.28proposed or final tax levy or the taxes payable pursuant to the tax levy. 72.29    (g) If the notice the taxpayer receives under this section lists the property as 72.30nonhomestead, and satisfactory documentation is provided to the county assessor by the 72.31applicable deadline, and the property qualifies for the homestead classification in that 72.32assessment year, the assessor shall reclassify the property to homestead for taxes payable 72.33in the following year. 72.34    (h) In the case of class 4 residential property used as a residence for lease or rental 72.35periods of 30 days or more, the taxpayer must either: 73.1    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 73.2renter, or lessee; or 73.3    (2) post a copy of the notice in a conspicuous place on the premises of the property. 73.4    The notice must be mailed or posted by the taxpayer by November 27 or within 73.5three days of receipt of the notice, whichever is later. A taxpayer may notify the county 73.6treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 73.7which the notice must be mailed in order to fulfill the requirements of this paragraph. 73.8    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 73.9districts" means the following taxing districts in the seven-county metropolitan area that 73.10levy a property tax for any of the specified purposes listed below: 73.11    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 73.12473.446 , 473.521, 473.547, or 473.834; 73.13    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 73.14and 73.15    (3) Metropolitan Mosquito Control Commission under section 473.711. 73.16    For purposes of this section, any levies made by the regional rail authorities in the 73.17county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 73.18398A shall be included with the appropriate county's levy. 73.19    (j) The governing body of a county, city, or school district may, with the consent 73.20of the county board, include supplemental information with the statement of proposed 73.21property taxes about the impact of state aid increases or decreases on property tax 73.22increases or decreases and on the level of services provided in the affected jurisdiction. 73.23This supplemental information may include information for the following year, the current 73.24year, and for as many consecutive preceding years as deemed appropriate by the governing 73.25body of the county, city, or school district. It may include only information regarding: 73.26    (1) the impact of inflation as measured by the implicit price deflator for state and 73.27local government purchases; 73.28    (2) population growth and decline; 73.29    (3) state or federal government action; and 73.30    (4) other financial factors that affect the level of property taxation and local services 73.31that the governing body of the county, city, or school district may deem appropriate to 73.32include. 73.33    The information may be presented using tables, written narrative, and graphic 73.34representations and may contain instruction toward further sources of information or 73.35opportunity for comment. 74.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxes payable in new text end 74.2 new text begin 2010 and thereafter. new text end 74.3    Sec. 12. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, as 74.4amended by Laws 2010, chapter 215, article 13, section 3, is amended to read: 74.5    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes 74.6levied by a local governmental unit for the following purposes or in the following manner: 74.7    (1) to pay the costs of the principal and interest on bonded indebtedness or to 74.8reimburse for the amount of liquor store revenues used to pay the principal and interest 74.9due on municipal liquor store bonds in the year preceding the year for which the levy 74.10limit is calculated; 74.11    (2) to pay the costs of principal and interest on certificates of indebtedness issued for 74.12any corporate purpose except for the following: 74.13    (i) tax anticipation or aid anticipation certificates of indebtedness; 74.14    (ii) certificates of indebtedness issued under sections 298.28 and 298.282; 74.15    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of 74.16extraordinary expenditures that result from a public emergency; or 74.17    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 74.18insufficiency in other revenue sources new text begin , provided that nothing in this subdivision limits the new text end 74.19 new text begin special levy authorized under section 475.755 new text end ; 74.20    (3) to provide for the bonded indebtedness portion of payments made to another 74.21political subdivision of the state of Minnesota; 74.22    (4) to fund payments made to the Minnesota State Armory Building Commission 74.23under section 193.145, subdivision 2, to retire the principal and interest on armory 74.24construction bonds; 74.25    (5) property taxes approved by voters which are levied against the referendum 74.26market value as provided under section 275.61; 74.27    (6) to fund matching requirements needed to qualify for federal or state grants or 74.28programs to the extent that either (i) the matching requirement exceeds the matching 74.29requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 74.30exist prior to 2002; 74.31    (7) to pay the expenses reasonably and necessarily incurred in preparing for or 74.32repairing the effects of natural disaster including the occurrence or threat of widespread 74.33or severe damage, injury, or loss of life or property resulting from natural causes, in 74.34accordance with standards formulated by the Emergency Services Division of the state 75.1Department of Public Safety, as allowed by the commissioner of revenue under section 75.2275.74, subdivision 2 ; 75.3    (8) pay amounts required to correct an error in the levy certified to the county 75.4auditor by a city or county in a levy year, but only to the extent that when added to the 75.5preceding year's levy it is not in excess of an applicable statutory, special law or charter 75.6limitation, or the limitation imposed on the governmental subdivision by sections 275.70 75.7to 275.74 in the preceding levy year; 75.8    (9) to pay an abatement under section 469.1815; 75.9    (10) to pay any costs attributable to increases in the employer contribution rates 75.10under chapter 353, or locally administered pension plans, that are effective after June 75.1130, 2001; 75.12    (11) to pay the operating or maintenance costs of a county jail as authorized in 75.13section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, 75.14subdivision 1 , paragraph (f), to the extent that the county can demonstrate to the 75.15commissioner of revenue that the amount has been included in the county budget as 75.16a direct result of a rule, minimum requirement, minimum standard, or directive of the 75.17Department of Corrections, or to pay the operating or maintenance costs of a regional jail 75.18as authorized in section 641.262. For purposes of this clause, a district court order is 75.19not a rule, minimum requirement, minimum standard, or directive of the Department of 75.20Corrections. If the county utilizes this special levy, except to pay operating or maintenance 75.21costs of a new regional jail facility under sections 641.262 to 641.264 which will not 75.22replace an existing jail facility, any amount levied by the county in the previous levy year 75.23for the purposes specified under this clause and included in the county's previous year's 75.24levy limitation computed under section 275.71, shall be deducted from the levy limit 75.25base under section 275.71, subdivision 2, when determining the county's current year 75.26levy limitation. The county shall provide the necessary information to the commissioner 75.27of revenue for making this determination; 75.28    (12) to pay for operation of a lake improvement district, as authorized under section 75.29103B.555 . If the county utilizes this special levy, any amount levied by the county in the 75.30previous levy year for the purposes specified under this clause and included in the county's 75.31previous year's levy limitation computed under section 275.71 shall be deducted from 75.32the levy limit base under section 275.71, subdivision 2, when determining the county's 75.33current year levy limitation. The county shall provide the necessary information to the 75.34commissioner of revenue for making this determination; 75.35    (13) to repay a state or federal loan used to fund the direct or indirect required 75.36spending by the local government due to a state or federal transportation project or other 76.1state or federal capital project. This authority may only be used if the project is not a 76.2local government initiative; 76.3    (14) to pay for court administration costs as required under section 273.1398, 76.4subdivision 4b , less the (i) county's share of transferred fines and fees collected by the 76.5district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 76.6paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 76.7levied to pay for these costs in the year in which the court financing is transferred to the 76.8state, the amount under this clause is limited to the amount of aid the county is certified to 76.9receive under section 273.1398, subdivision 4a; 76.10    (15) to fund a police or firefighters relief association as required under section 69.77 76.11to the extent that the required amount exceeds the amount levied for this purpose in 2001; 76.12    (16) for purposes of a storm sewer improvement district under section 444.20; 76.13    (17) to pay for the maintenance and support of a city or county society for the 76.14prevention of cruelty to animals under section 343.11, but not to exceed in any year 76.15$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 76.16recent federal census, whichever is greater. If the city or county uses this special levy, any 76.17amount levied by the city or county in the previous levy year for the purposes specified 76.18in this clause and included in the city's or county's previous year's levy limit computed 76.19under section 275.71, must be deducted from the levy limit base under section 275.71, 76.20subdivision 2 , in determining the city's or county's current year levy limit; 76.21    (18) for counties, to pay for the increase in their share of health and human service 76.22costs caused by reductions in federal health and human services grants effective after 76.23September 30, 2007; 76.24    (19) for a city, for the costs reasonably and necessarily incurred for securing, 76.25maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 76.26the commissioner of revenue under section 275.74, subdivision 2. A city must have either 76.27(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 76.28the city or in a zip code area of the city that is at least 50 percent higher than the average 76.29foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 76.30to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 76.31number of foreclosures, as indicated by sheriff sales records, divided by the number of 76.32households in the city in 2007; 76.33    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 76.34lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 76.35to the Federal Highway Administration; 77.1    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire 77.2personnel. If a local governmental unit did not use this special levy in the previous year its 77.3levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 77.4levied for the purposes specified in this clause in the previous year; 77.5    (22) an amount equal to any reductions in the certified aids or credits new text begin credit new text end 77.6 new text begin reimbursements new text end payable under sections 477A.011 to 477A.014, and section 273.1384, due 77.7to unallotment under section 16A.152 or reductions under another provision of law. The 77.8amount of the levy allowed under this clause new text begin for each year new text end is equal new text begin limited new text end to the amount 77.9unallotted or reduced in new text begin from the aids and credit reimbursements certified for payment in new text end 77.10 new text begin the year following new text end the calendar year in which the tax new text begin levy new text end is levied new text begin certified new text end unless the 77.11unallotment or reduction amount is not known by September 1 of the levy new text begin certification new text end 77.12year, and the local government has not adjusted its levy under section 275.065, subdivision 77.136 , or 275.07, subdivision 6, in which case the new text begin that new text end unallotment or reduction amount may 77.14be levied in the following year; 77.15(23) to pay for the difference between one-half of the costs of confining sex offenders 77.16undergoing the civil commitment process and any state payments for this purpose pursuant 77.17to section 253B.185, subdivision 5; 77.18(24) for a county to pay the costs of the first year of maintaining and operating a new 77.19facility or new expansion, either of which contains courts, corrections, dispatch, criminal 77.20investigation labs, or other public safety facilities and for which all or a portion of the 77.21funding for the site acquisition, building design, site preparation, construction, and related 77.22equipment was issued or authorized prior to the imposition of levy limits in 2008. The 77.23levy limit base shall then be increased by an amount equal to the new facility's first full 77.24year's operating costs as described in this clause; and 77.25(25) for the estimated amount of reduction to market value credit reimbursements 77.26under section 273.1384 for credits payable in the year in which the levy is payable. 77.27    Sec. 13. Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to read: 77.28    Subd. 5. Property tax levy limit. new text begin (a) new text end For taxes levied in 2008 through 2010, the 77.29property tax levy limit for a local governmental unit is equal to its adjusted levy limit 77.30base determined under subdivision 4 plus any additional levy authorized under section 77.31275.73 , which is levied against net tax capacity, reduced by the sum of (i) the total amount 77.32of aids and reimbursements that the local governmental unit is certified to receive under 77.33sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and 298.282 77.34including any aid which was required to be placed in a special fund for expenditure in 77.35the next succeeding year, (iii) estimated payments to the local governmental unit under 78.1section 272.029, adjusted for any error in estimation in the preceding year, and (iv) aids 78.2under section 477A.16. 78.3 new text begin (b) If an aid, payment, or other amount used in paragraph (a) to reduce a local new text end 78.4 new text begin government unit's levy limit is reduced by an unallotment under section 16A.152, the new text end 78.5 new text begin amount of the aid, payment, or other amount prior to the unallotment is used in the new text end 78.6 new text begin computations in paragraph (a). In order for a local government unit to levy outside of its new text end 78.7 new text begin limit to offset the reduction in revenues attributable to an unallotment, it must do so under, new text end 78.8 new text begin and to the extent authorized by, a special levy authorization. new text end 78.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxes payable in new text end 78.10 new text begin 2010 and thereafter. new text end 78.11    Sec. 14. Minnesota Statutes 2008, section 279.01, subdivision 3, is amended to read: 78.12    Subd. 3. Agricultural property. In the case of class 1b agricultural homestead, new text begin and new text end 78.13class 2a agricultural homestead new text begin and 2b new text end property, and class 2b(3) agricultural nonhomestead 78.14property, no penalties shall attach to the second one-half property tax payment as provided 78.15in this section if paid by November 15. Thereafter for class 1b agricultural homestead and 78.16class 2a new text begin and 2b new text end homestead property, on November 16 following, a penalty of six percent 78.17shall accrue and be charged on all such unpaid taxes and on December 1 following, an 78.18additional two percent shall be charged on all such unpaid taxes. Thereafter for class 2b(3) 78.19agricultural new text begin 2a and 2b new text end nonhomestead property, on November 16 following, a penalty of 78.20eight percent shall accrue and be charged on all such unpaid taxes and on December 1 78.21following, an additional four percent shall be charged on all such unpaid taxes. 78.22If the owner of class 1b agricultural homestead, new text begin or new text end class 2a, or class 2b(3) 78.23agricultural new text begin or 2b new text end property receives a consolidated property tax statement that shows 78.24only an aggregate of the taxes and special assessments due on that property and on other 78.25property not classified as class 1b agricultural homestead, new text begin or new text end class 2a, or class 2b(3) 78.26agricultural new text begin or 2b new text end property, the aggregate tax and special assessments shown due on the 78.27property by the consolidated statement will be due on November 15. 78.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 78.29    Sec. 15. Minnesota Statutes 2008, section 279.37, subdivision 1, is amended to read: 78.30    Subdivision 1. Composition into one item. Delinquent taxes upon any parcel of real 78.31estate may be composed into one item or amount by confession of judgment at any time 78.32prior to the forfeiture of the parcel of land to the state for taxes, for the aggregate amount 78.33of all the taxes, costs, penalties, and interest accrued against the parcel, as provided in this 79.1section. Taxes upon property which, for the previous year's assessment, was classified 79.2as mineral property, employment property, or commercial or industrial property are only 79.3eligible to be composed into any confession of judgment under this section as provided in 79.4subdivision 1a. Delinquent taxes for property that has been reclassified from 4bb to 4b 79.5under section 273.1319 may not be composed into a confession of judgment under this 79.6subdivision. Delinquent taxes on unimproved land are eligible to be composed into a 79.7confession of judgment only if the land is classified new text begin under section 273.13 new text end as homestead, 79.8agricultural, or timberland new text begin rural vacant land, or managed forest land, new text end in the previous year 79.9or is eligible for installment payment under subdivision 1a. The entire parcel is eligible 79.10for the ten-year installment plan as provided in subdivision 2 if 25 percent or more of the 79.11market value of the parcel is eligible for confession of judgment under this subdivision. 79.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 79.13    Sec. 16. Minnesota Statutes 2009 Supplement, section 475.755, is amended to read: 79.14475.755 EMERGENCY DEBT CERTIFICATES. 79.15(a) If at any time during a fiscal year the receipts of a local government are 79.16reasonably expected to be reduced below the amount provided in the local government's 79.17budget when the final property tax levy to be collected during the fiscal year was certified 79.18and the receipts are insufficient to meet the expenses incurred or to be incurred during the 79.19fiscal year, the governing body of the local government may authorize and sell certificates 79.20of indebtedness to mature within two years or less from the end of the fiscal year in which 79.21the certificates are issued. The maximum principal amount of the certificates that it may 79.22issue in a fiscal year is limited to the expected reduction in receipts plus the cost of 79.23issuance. The certificates may be issued in the manner and on the terms the governing 79.24body determines by resolution. 79.25(b) The governing body of the local government shall levy taxes for the payment of 79.26principal and interest on the certificates in accordance with section 475.61. 79.27(c) The certificates are not to be included in the net debt of the issuing local 79.28government. 79.29    (d) To the extent that a local government issues certificates under this section to fund 79.30an unallotment or other reduction in its state aid, the local government may new text begin must new text end not use a 79.31 new text begin the new text end special levy new text begin authority new text end for the aid reduction new text begin reductions new text end under section 275.70, subdivision 79.325 , clause (22), or a similar or successor provision. This provision does not affect the status 79.33of the new text begin , but must instead use the special levy authority for the repayment of indebtedness new text end 80.1 new text begin under section 275.70, subdivision 5, clause (2), in order to new text end levy under section 475.61 to 80.2pay new text begin fund repayment of new text end the certificates as new text begin with new text end a levy that is not subject to levy limits. 80.3(e) For purposes of this section, the following terms have the meanings given: 80.4(1) "Local government" means a statutory or home rule charter city, a town, or 80.5a county. 80.6(2) "Receipts" includes the following amounts scheduled to be received by the 80.7local government for the fiscal year from: 80.8(i) taxes; 80.9(ii) aid payments previously certified by the state to be paid to the local government; 80.10(iii) state reimbursement payments for property tax credits; and 80.11(iv) any other source. 80.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxes payable in new text end 80.13 new text begin 2010 and thereafter. new text end 80.14    Sec. 17. Minnesota Statutes 2009 Supplement, section 477A.013, subdivision 8, 80.15is amended to read: 80.16    Subd. 8. City formula aid. (a) In calendar year 2009, the formula aid for a city 80.17is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need 80.18increase percentage multiplied by its unmet need. 80.19    (b) In calendar year 2010 and subsequent years, The formula aid for a city is equal 80.20to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 80.21percentage multiplied by the average of its unmet need for the most recently available 80.22two years. 80.23No city may have a formula aid amount less than zero. The need increase percentage 80.24must be the same for all cities. 80.25    The applicable need increase percentage must be calculated by the Department of 80.26Revenue so that the total of the aid under subdivision 9 equals the total amount available 80.27for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating 80.28aid to cities under sections to will be based on the data available for 80.29calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, 80.30Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the 80.31most recently available data as of January 1 in the year in which the aid is calculated except 80.32as provided in section 477A.011, subdivisions 3 and 35 new text begin that the data used to compute "net new text end 80.33 new text begin levy" in subdivision 9 is the data most recently available at the time of the aid computation new text end . 80.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aid payable in 2010 and thereafter. new text end 81.1    Sec. 18. Laws 2001, First Special Session chapter 5, article 3, section 50, the effective 81.2date, as amended by Laws 2009, chapter 86, article 1, section 87, is amended to read: 81.3EFFECTIVE DATE.Clause (22) of this section is effective for taxes levied in 2002, 81.4payable in 2003, through taxes levied in 2011, payable in 2012 new text begin and thereafter new text end . Clause (23) 81.5of this section is effective for taxes levied in 2001, payable in 2002, and thereafter. 81.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 81.7ARTICLE 5 81.8CONDITIONAL USE DEEDS 81.9    Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read: 81.10    Subdivision 1. Classification as conservation or nonconservation. It is the 81.11general policy of this state to encourage the best use of tax-forfeited lands, recognizing new text begin new text end 81.12 new text begin (a) When acting on behalf of the state under laws allowing the county board to classify new text end 81.13 new text begin and manage tax-forfeited lands held by the state in trust for the local units as provided in new text end 81.14 new text begin section 281.25, the county board has the discretion to decide new text end that some lands in public 81.15ownership should be retained and managed for public benefits while other lands should be 81.16returned to private ownership. Parcels of land becoming the property of the state in trust 81.17under law declaring the forfeiture of lands to the state for taxes must be classified by the 81.18county board of the county in which the parcels lie as conservation or nonconservation. In 81.19making the classification the board shall consider the present use of adjacent lands, the 81.20productivity of the soil, the character of forest or other growth, accessibility of lands 81.21to established roads, schools, and other public services, their peculiar suitability or 81.22desirability for particular uses new text begin , new text end and the suitability of the forest resources on the land for 81.23multiple use, new text begin and new text end sustained yield management. The classification, furthermore, must new text begin : (1) new text end 81.24encourage and foster a mode of land utilization that will facilitate the economical and 81.25adequate provision of transportation, roads, water supply, drainage, sanitation, education, 81.26and recreation; new text begin (2) new text end facilitate reduction of governmental expenditures; new text begin (3) new text end conserve and 81.27develop the natural resources; and new text begin (4) new text end foster and develop agriculture and other industries 81.28in the districts and places best suited to them. 81.29In making the classification the county board may use information made available 81.30by any office or department of the federal, state, or local governments, or by any other 81.31person or agency possessing pertinent information at the time the classification is made. 81.32The lands may be reclassified from time to time as the county board considers necessary 81.33or desirable, except for conservation lands held by the state free from any trust in favor of 81.34any taxing district. 82.1If the lands are located within the boundaries of an organized town, with taxable 82.2valuation in excess of $20,000, or incorporated municipality, the classification or 82.3reclassification and sale must first be approved by the town board of the town or the 82.4governing body of the municipality in which the lands are located. The town board of 82.5the town or the governing body of the municipality is considered to have approved 82.6the classification or reclassification and sale if the county board is not notified of the 82.7disapproval of the classification or reclassification and sale within 60 days of the date the 82.8request for approval was transmitted to the town board of the town or governing body 82.9of the municipality. If the town board or governing body desires to acquire any parcel 82.10lying in the town or municipality by procedures authorized in this section, it must file a 82.11written application with the county board to withhold the parcel from public sale. The 82.12application must be filed within 60 days of the request for classification or reclassification 82.13and sale. The county board shall then withhold the parcel from public sale for six months. 82.14A municipality or governmental subdivision shall pay maintenance costs incurred by 82.15the county during the six-month period while the property is withheld from public sale, 82.16provided the property is not offered for public sale after the six-month period. A clerical 82.17error made by county officials does not serve to eliminate the request of the town board 82.18or governing body if the board or governing body has forwarded the application to the 82.19county auditor. If the town board or governing body of the municipality fails to submit an 82.20application and a resolution of the board or governing body to acquire the property within 82.21the withholding period, the county may offer the property for sale upon the expiration of 82.22the withholding period. 82.23 new text begin (b) Whenever the county board deems it appropriate, the board may hold a meeting new text end 82.24 new text begin for the purpose of reclassifying tax-forfeited land that has not been sold or released from new text end 82.25 new text begin the trust. The criteria and procedures for reclassification are the same as those required for new text end 82.26 new text begin an initial classification. new text end 82.27 new text begin (c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands, new text end 82.28 new text begin the county board must give notice of its intent to meet for that purpose as provided in this new text end 82.29 new text begin paragraph. The notice must be given no more than 90 days and no less than 60 days before new text end 82.30 new text begin the date of the meeting; provided that if the meeting is rescheduled, notice of the new new text end 82.31 new text begin date, time, and location must be given at least 14 days before the date of the rescheduled new text end 82.32 new text begin meeting. The notice must be posted on a Web site. The notice must also be mailed or new text end 82.33 new text begin otherwise delivered to each person who has filed a request for notice of special meetings new text end 82.34 new text begin with the public body, regardless of whether the matter is considered at a regular or special new text end 82.35 new text begin meeting. The notice must be mailed or delivered at least 60 days before the date of the new text end 82.36 new text begin meeting. If the meeting is rescheduled, notice of the new date, time, and location must be new text end 83.1 new text begin mailed or delivered at least 14 days before the date of the rescheduled meeting. The public new text end 83.2 new text begin body shall publish the notice once, at least 30 days before the meeting, in a newspaper of new text end 83.3 new text begin general circulation within the area of the public body's authority. The board must also mail new text end 83.4 new text begin a notice by electronic means to each person who requests notice of meetings dealing with new text end 83.5 new text begin this subject and who agrees as provided in chapter 325L to accept notice that is mailed new text end 83.6 new text begin by electronic means. Receipt of actual notice under the conditions specified in section new text end 83.7 new text begin 13D.04, subdivision 7, satisfies the notice requirements of this paragraph. new text end 83.8 new text begin The board may classify or reclassify tax-forfeited lands at any regular or special new text end 83.9 new text begin meeting, as those terms are defined in chapter 13D and may conduct only this business, or new text end 83.10 new text begin this business as well as other business or activities at the meeting. new text end 83.11 new text begin (d) At the meeting, the county board must allow any person or agency possessing new text end 83.12 new text begin pertinent information to make or submit comments and recommendations about the new text end 83.13 new text begin pending classification or reclassification. In addition, representatives of governmental new text end 83.14 new text begin entities in attendance must be allowed to describe plans, ideas, or projects that may new text end 83.15 new text begin involve use or acquisition of the property by that or another governmental entity. The new text end 83.16 new text begin county board must solicit and consider any relevant components of current municipal or new text end 83.17 new text begin metropolitan comprehensive land use plans that incorporate the area in which the land new text end 83.18 new text begin is located. After allowing testimony, the board may classify, reclassify, or delay taking new text end 83.19 new text begin action on any parcel or parcels. In order for a state agency or a governmental subdivision new text end 83.20 new text begin of the state to preserve its right to request a purchase or other acquisition of a forfeited new text end 83.21 new text begin parcel, it may, at any time following forfeiture, file a written request to withhold the parcel new text end 83.22 new text begin from sale or lease to others under the provisions of subdivision 1a. new text end 83.23 new text begin (e) When classifying, reclassifying, appraising, and selling lands under this chapter, new text end 83.24 new text begin the county board may designate the tracts as assessed and acquired, or may by resolution new text end 83.25 new text begin provide for the subdivision of the tracts into smaller units or for the grouping of several new text end 83.26 new text begin tracts into one tract when the subdivision or grouping is deemed advantageous for new text end 83.27 new text begin conservation or sale purposes. This paragraph does not authorize the county board to new text end 83.28 new text begin subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld new text end 83.29 new text begin from sale under section 282.018, subdivision 1. new text end 83.30 new text begin (f) A county board may by resolution elect to use the classification and new text end 83.31 new text begin reclassification procedures provided in paragraphs (g), (h), and (i), instead of the new text end 83.32 new text begin procedures provided in paragraphs (b), (c), and (d). Once an election is made under this new text end 83.33 new text begin paragraph, it is effective for a minimum of five years. new text end 83.34 new text begin (g) The classification or reclassification of tax-forfeited land that has not been sold or new text end 83.35 new text begin released from the trust may be made by the county board using information made available new text end 84.1 new text begin to it by any office or department of the federal, state, or local governments, or by any other new text end 84.2 new text begin person or agency possessing pertinent information at the time the classification is made. new text end 84.3 new text begin (h) If the lands are located within the boundaries of an organized town or new text end 84.4 new text begin incorporated municipality, a classification or reclassification and sale must first be new text end 84.5 new text begin approved by the town board of the town or the governing body of the municipality in new text end 84.6 new text begin which the lands are located. The town board of the town or the governing body of the new text end 84.7 new text begin municipality is considered to have approved the classification or reclassification and sale new text end 84.8 new text begin if the county board is not notified of the disapproval of the classification or reclassification new text end 84.9 new text begin and sale within 60 days of the date the request for approval was transmitted to the town new text end 84.10 new text begin board of the town or governing body of the municipality. If the town board or governing new text end 84.11 new text begin body disapproves of the classification or reclassification and sale, the county board must new text end 84.12 new text begin follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must new text end 84.13 new text begin additionally cause to be published in a newspaper a notice of the date, time, location, and new text end 84.14 new text begin purpose of the required meeting. new text end 84.15 new text begin (i) If a town board or a governing body of a municipality or a park and recreation new text end 84.16 new text begin board in a city of the first class desires to acquire any parcel lying in the town or new text end 84.17 new text begin municipality by procedures authorized in this section, it may file a written request under new text end 84.18 new text begin subdivision 1a, paragraph (a). new text end 84.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 84.20    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read: 84.21    Subd. 1a. Conveyance; generally new text begin to public entities new text end . new text begin (a) Upon written request new text end 84.22 new text begin from a state agency or a governmental subdivision of the state, a parcel of unsold new text end 84.23 new text begin tax-forfeited land must be withheld from sale or lease to others for a maximum of six new text end 84.24 new text begin months. The request must be submitted to the county auditor. Upon receipt, the county new text end 84.25 new text begin auditor must withhold the parcel from sale or lease to any other party for six months, and new text end 84.26 new text begin must confirm the starting date of the six-month withholding period to the requesting new text end 84.27 new text begin agency or subdivision. If the request is from a governmental subdivision of the state, the new text end 84.28 new text begin governmental subdivision must pay the maintenance costs incurred by the county during new text end 84.29 new text begin the period the parcel is withheld. The county board may approve a sale or conveyance to new text end 84.30 new text begin the requesting party during the withholding period. A conveyance of the property to the new text end 84.31 new text begin requesting party terminates the withholding period. new text end 84.32 new text begin A governmental subdivision of the state must not make, and a county auditor must new text end 84.33 new text begin not act upon, a second request to withhold a parcel from sale or lease within 18 months new text end 84.34 new text begin of a previous request for that parcel. A county may reject a request made under this new text end 84.35 new text begin paragraph if the request is made more than 30 days after the county has given notice to the new text end 85.1 new text begin requesting state agency or governmental subdivision of the state that the county intends to new text end 85.2 new text begin sell or otherwise dispose of the property. new text end 85.3 new text begin (b) new text end new text begin Nonconservation new text end tax-forfeited lands may be sold new text begin by the county board, for new text end 85.4 new text begin their market value as determined new text end by the county board new text begin , new text end to an organized or incorporated 85.5governmental subdivision of the state for any public purpose for which the subdivision is 85.6authorized to acquire property or new text begin . When the term "market value" is used in this section, it new text end 85.7 new text begin means an estimate of the full and actual market value of the parcel as determined by the new text end 85.8 new text begin county board, but in making this determination, the board and the persons employed by or new text end 85.9 new text begin under contract with the board in order to perform, conduct, or assist in the determination, new text end 85.10 new text begin are exempt from the licensure requirements of chapter 82B. new text end 85.11 new text begin (c) Nonconservation tax-forfeited lands new text end may be released from the trust in favor of the 85.12taxing districts on application of new text begin to the county board by new text end a state agency for an authorized 85.13use at not less than their new text begin market new text end value as determined by the county board. 85.14 new text begin (d) Nonconservation tax-forfeited lands may be sold by the county board to an new text end 85.15 new text begin organized or incorporated governmental subdivision of the state or state agency for less new text end 85.16 new text begin than their market value if: new text end 85.17 new text begin (1) the county board determines that a sale at a reduced price is in the public interest new text end 85.18 new text begin because a reduced price is necessary to provide an incentive to correct the blighted new text end 85.19 new text begin conditions that make the lands undesirable in the open market, or the reduced price will new text end 85.20 new text begin lead to the development of affordable housing; and new text end 85.21 new text begin (2) the governmental subdivision or state agency has documented its specific plans new text end 85.22 new text begin for correcting the blighted conditions or developing affordable housing, and the specific new text end 85.23 new text begin law or laws that empower it to acquire real property in furtherance of the plans. new text end 85.24 new text begin If the sale under this paragraph is to a governmental subdivision of the state, the new text end 85.25 new text begin commissioner of revenue must convey the property on behalf of the state by quit claim new text end 85.26 new text begin deed. If the sale under this paragraph is to a state agency, the commissioner must issue a new text end 85.27 new text begin conveyance document that releases the property from the trust in favor of the taxing new text end 85.28 new text begin districts. new text end 85.29 new text begin (e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts new text end 85.30 new text begin may be conveyed by new text end the commissioner of revenue may convey by deed in the name 85.31of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a 85.32governmental subdivision for an authorized public use, if an application is submitted to 85.33the commissioner which includes a statement of facts as to the use to be made of the tract 85.34and the need therefor and the new text begin favorable new text end recommendation of the county board. new text begin For the new text end 85.35 new text begin purposes of this paragraph, "authorized public use" means a use that allows an indefinite new text end 85.36 new text begin segment of the public to physically use and enjoy the property in numbers appropriate new text end 86.1 new text begin to its size and use, or is for a public service facility. Authorized public uses as defined new text end 86.2 new text begin in this paragraph are limited to: new text end 86.3 new text begin (1) a road, or right-of-way for a road; new text end 86.4 new text begin (2) a park that is both available to, and accessible by, the public that contains new text end 86.5 new text begin amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters; new text end 86.6 new text begin (3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along new text end 86.7 new text begin with a reasonable amount of surrounding land maintained in its natural state; new text end 86.8 new text begin (4) transit facilities for buses, light rail transit, commuter rail or passenger rail, new text end 86.9 new text begin including transit ways, park-and-ride lots, transit stations, maintenance and garage new text end 86.10 new text begin facilities, and other facilities related to a public transit system; new text end 86.11 new text begin (5) public beaches or boat launches; new text end 86.12 new text begin (6) public parking; new text end 86.13 new text begin (7) civic recreation or conference facilities; and new text end 86.14 new text begin (8) public service facilities such as fire halls, police stations, lift stations, water new text end 86.15 new text begin towers, sanitation facilities, water treatment facilities, and administrative offices. new text end 86.16 new text begin No monetary compensation or consideration is required for the conveyance, except as new text end 86.17 new text begin provided in subdivision 1g, but the conveyance is subject to the conditions provided in new text end 86.18 new text begin law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d. new text end 86.19 new text begin (f) The commissioner of revenue shall convey a parcel of nonconservation new text end 86.20 new text begin tax-forfeited land to a local governmental subdivision of the state by quit claim deed new text end 86.21 new text begin on behalf of the state upon the favorable recommendation of the county board if the new text end 86.22 new text begin governmental subdivision has certified to the board that prior to forfeiture the subdivision new text end 86.23 new text begin was entitled to the parcel under a written development agreement or instrument, but new text end 86.24 new text begin the conveyance failed to occur prior to forfeiture. No compensation or consideration is new text end 86.25 new text begin required for, and no conditions attach to, the conveyance. new text end 86.26 new text begin (g) The commissioner of revenue shall convey a parcel of nonconservation new text end 86.27 new text begin tax-forfeited land to the association of a common interest community by quit claim deed new text end 86.28 new text begin upon the favorable recommendation of the county board if the association certifies to the new text end 86.29 new text begin board that prior to forfeiture the association was entitled to the parcel under a written new text end 86.30 new text begin agreement, but the conveyance failed to occur prior to forfeiture. No compensation or new text end 86.31 new text begin consideration is required for, and no conditions attach to, the conveyance. new text end 86.32 new text begin (h) Conservation tax-forfeited land may be sold to a governmental subdivision of the new text end 86.33 new text begin state for less than its market value for either: (1) creation or preservation of wetlands; new text end 86.34 new text begin (2) drainage or storage of storm water under a storm water management plan; or (3) new text end 86.35 new text begin preservation, or restoration and preservation, of the land in its natural state. The deed must new text end 86.36 new text begin contain a restrictive covenant limiting the use of the land to one of these purposes for new text end 87.1 new text begin 30 years or until the property is reconveyed back to the state in trust. At any time, the new text end 87.2 new text begin governmental subdivision may reconvey the property to the state in trust for the taxing new text end 87.3 new text begin districts. The deed of reconveyance is subject to approval by the commissioner of revenue. new text end 87.4 new text begin No part of a purchase price determined under this paragraph shall be refunded upon a new text end 87.5 new text begin reconveyance, but the amount paid for a conveyance under this paragraph may be taken new text end 87.6 new text begin into account by the county board when setting the terms of a future sale of the same new text end 87.7 new text begin property to the same governmental subdivision under paragraph (b) or (d). If the lands new text end 87.8 new text begin are unplatted and located outside of an incorporated municipality and the commissioner new text end 87.9 new text begin of natural resources determines there is a mineral use potential, the sale is subject to the new text end 87.10 new text begin approval of the commissioner of natural resources. new text end 87.11 new text begin (i) A park and recreation board in a city of the first class is a governmental new text end 87.12 new text begin subdivision for the purposes of this section. new text end 87.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 87.14    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read: 87.15    Subd. 1b. Conveyance; targeted neighborhood lands. (a) Notwithstanding 87.16subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as 87.17defined in section 469.201, subdivision 10 new text begin community in a city of the first class new text end , the 87.18commissioner of revenue shall convey by new text begin quit claim new text end deed in the name of the state any tract 87.19of tax-forfeited land held in trust in favor of the taxing districts, to a political subdivision 87.20 new text begin of the state new text end that submits an application to the commissioner of revenue and the new text begin favorable new text end 87.21recommendation of the county board. new text begin For purposes of this subdivision, the term "targeted new text end 87.22 new text begin community" has the meaning given in section 469.201, subdivision 10, except that the new text end 87.23 new text begin land must be located within a first class city. new text end 87.24(b) The application under paragraph (a) must include a statement of facts as to the 87.25use to be made of the tract, the need therefor, and a resolution, adopted by the governing 87.26body of the political subdivision, finding that the conveyance of a tract of tax-forfeited 87.27land to the political subdivision is necessary to provide for the redevelopment of land as 87.28productive taxable property. Deeds of conveyance issued under paragraph (a) are not 87.29conditioned on continued use of the property for the use stated in the application. 87.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 87.31    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read: 87.32    Subd. 1c. Deed of conveyance; form; approvals. The deed of conveyance for 87.33property conveyed for a new text begin an authorized new text end public use new text begin under the authorities in subdivision new text end 88.1 new text begin 1a, paragraph (e), new text end must be on a form approved by the attorney general and must be 88.2conditioned on continued use for the purpose stated in the application new text begin as provided in this new text end 88.3 new text begin section. These deeds are conditional use deeds that convey a defeasible estate. Reversion new text end 88.4 new text begin of the estate occurs by operation of law and without the requirement for any affirmative new text end 88.5 new text begin act by or on behalf of the state when there is a failure to put the property to the approved new text end 88.6 new text begin authorized public use for which it was conveyed, or an abandonment of that use, except as new text end 88.7 new text begin provided in subdivision 1d new text end . 88.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 88.9    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read: 88.10    Subd. 1d. Reverter for failure to use; conveyance to state. new text begin (a) new text end If after three years 88.11from the date of the conveyance a governmental subdivision to which tax-forfeited land 88.12has been conveyed for a specified new text begin an authorized new text end public use as provided in this section new text begin new text end 88.13 new text begin subdivision 1a, paragraph (e), new text end fails to put the land to that use, or abandons that use, the 88.14governing body of the subdivision may, new text begin must: (1) new text end with the approval of the county board, 88.15purchase the property for an authorized public purpose at the present appraised new text begin market new text end 88.16value as determined by the county board. In that case, the commissioner of revenue shall, 88.17upon proper written application approved by the county board, issue an appropriate deed 88.18to the subdivisions free of a use restriction and reverter. The governing body may also new text begin , or new text end 88.19 new text begin (2) new text end authorize the proper officers to convey the land, or the part of the land not required for 88.20an authorized public use, to the state of Minnesota. new text begin in trust for the taxing districts. If the new text end 88.21 new text begin governing body purchases the property under clause (1), the commissioner of revenue new text end 88.22 new text begin shall, upon proper application submitted by the county auditor, convey the property on new text end 88.23 new text begin behalf of the state by quit claim deed to the subdivision free of a use restriction and the new text end 88.24 new text begin possibility of reversion or defeasement. If the governing body decides to reconvey the new text end 88.25 new text begin property to the state under this clause, new text end the officers shall execute a deed of conveyance 88.26immediately. The conveyance is subject to the approval of the commissioner and its form 88.27must be approved by the attorney general. A sale, lease, transfer, or other conveyance 88.28of tax-forfeited lands by a housing and redevelopment authority, a port authority, an 88.29economic development authority, or a city as authorized by chapter 469 is not an 88.30abandonment of use and the lands shall not be reconveyed to the state nor shall they 88.31revert to the state. A certificate made by a housing and redevelopment authority, a port 88.32authority, an economic development authority, or a city referring to a conveyance by it 88.33and stating that the conveyance has been made as authorized by chapter 469 may be filed 88.34with the county recorder or registrar of titles, and the rights of reverter in favor of the state 88.35provided by subdivision 1e will then terminate. No vote of the people is required for the 89.1conveyance. new text begin For the purposes of this paragraph, there is no failure to put the land to the new text end 89.2 new text begin authorized public use and no abandonment of that use if a formal plan of the governmental new text end 89.3 new text begin subdivision, including, but not limited to, a comprehensive plan or land use plan that new text end 89.4 new text begin shows an intended future use of the land for the authorized public use. new text end 89.5 new text begin (b) Property held by a governmental subdivision of the state under a conditional use new text end 89.6 new text begin deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue on or new text end 89.7 new text begin after January 1, 2007, may be acquired by that governmental subdivision after 15 years new text end 89.8 new text begin from the date of the conveyance if the commissioner determines upon written application new text end 89.9 new text begin from the subdivision that the subdivision has in fact put the property to the authorized new text end 89.10 new text begin public use for which it was conveyed, and the subdivision has made a finding that it new text end 89.11 new text begin has no current plans to change the use of the lands. Prior to conveying the property, the new text end 89.12 new text begin commissioner shall inquire whether the county board where the land is located objects to a new text end 89.13 new text begin conveyance of the property to the subdivision without conditions and without further act new text end 89.14 new text begin by or obligation of the subdivision. If the county does not object within 60 days, and the new text end 89.15 new text begin commissioner makes a favorable determination, the commissioner shall issue a quit claim new text end 89.16 new text begin deed on behalf of the state unconditionally conveying the property to the governmental new text end 89.17 new text begin subdivision. For purposes of this paragraph, demonstration of an intended future use new text end 89.18 new text begin for the authorized public use in a formal plan of the governmental subdivision does not new text end 89.19 new text begin constitute use for that authorized public use. new text end 89.20 new text begin (c) Property held by a governmental subdivision of the state under a conditional new text end 89.21 new text begin use deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue new text end 89.22 new text begin before January 1, 2007, is released from the use restriction and possibility of reversion on new text end 89.23 new text begin January 1, 2022, if the county board records a resolution describing the land and citing new text end 89.24 new text begin this paragraph. The county board may authorize the county treasurer to deduct the amount new text end 89.25 new text begin of the recording fees from future settlements of property taxes to the subdivision. new text end 89.26 new text begin (d) All property conveyed under a conditional use deed executed under subdivision new text end 89.27 new text begin 1a, paragraph (e), by the commissioner of revenue is released from the use restriction and new text end 89.28 new text begin reverter, and any use restriction or reverter for which no declaration of reversion has been new text end 89.29 new text begin recorded with the county recorder or registrar of titles, as appropriate, is nullified on the new text end 89.30 new text begin later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or new text end 89.31 new text begin (3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens new text end 89.32 new text begin related to the appeal is recorded in the office of the county recorder or registrar of titles, new text end 89.33 new text begin as appropriate, prior to January 1, 2015. new text end 89.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 90.1    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision 90.2to read: 90.3     new text begin Subd. 1g. new text end new text begin Conditional use deed fees. new text end new text begin (a) A governmental subdivision of the state new text end 90.4 new text begin applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee new text end 90.5 new text begin of $250 to the commissioner of revenue along with the application. If the application is new text end 90.6 new text begin denied, the commissioner shall refund $150 of the application fee. new text end 90.7 new text begin (b) The proceeds from the fees must be deposited in a Department of Revenue new text end 90.8 new text begin conditional use deed revolving fund. The sums deposited into the revolving fund are new text end 90.9 new text begin appropriated to the commissioner of revenue for the purpose of making the refunds new text end 90.10 new text begin described in this subdivision, and administering conditional use deed laws. new text end 90.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications received by the new text end 90.12 new text begin commissioner after June 30, 2010. new text end 90.13    Sec. 7. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision 90.14to read: 90.15     new text begin Subd. 1h. new text end new text begin Conveyance; form. new text end new text begin The instruments of conveyance executed and issued new text end 90.16 new text begin by the commissioner of revenue under subdivision 1a, paragraphs (c), (d), (e), (f), (g), new text end 90.17 new text begin and (h), and subdivision 1d, paragraph (b), must be on a form approved by the attorney new text end 90.18 new text begin general and are prima facie evidence of the facts stated therein and that the execution and new text end 90.19 new text begin issuance of the conveyance complies with the applicable laws. new text end 90.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for deeds executed by the new text end 90.21 new text begin commissioner of revenue after June 30, 2010. new text end 90.22    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read: 90.23    Subd. 2. Conservation lands; county board supervision. new text begin (a) new text end Lands classified as 90.24conservation lands, unless reclassified as nonconservation lands, sold to a governmental 90.25subdivision of the state, designated as lands primarily suitable for forest production and 90.26sold as hereinafter provided, or released from the trust in favor of the taxing districts, as 90.27herein provided, will new text begin must new text end be held under the supervision of the county board of the county 90.28within which such new text begin the new text end parcels lie. new text begin and must not be conveyed or sold unless the lands are: new text end 90.29The county board may, by resolution duly adopted, declare lands classified as 90.30conservation lands as primarily suitable for timber production and as lands which should 90.31be placed in private ownership for such purposes. If such action be approved by the 90.32commissioner of natural resources, the lands so designated, or any part thereof, may be 90.33sold by the county board in the same manner as provided for the sale of lands classified as 91.1nonconservation lands. Such county action and the approval of the commissioner shall be 91.2limited to lands lying within areas zoned for restricted uses under the provisions of Laws 91.31939, chapter 340, or any amendments thereof. 91.4 new text begin (1) reclassified as nonconservation lands; new text end 91.5 new text begin (2) conveyed to a governmental subdivision of the state under subdivision 1a; new text end 91.6 new text begin (3) released from the trust in favor of the taxing districts as provided in paragraph new text end 91.7 new text begin (b); or new text end 91.8 new text begin (4) conveyed or sold under the authority of another general or special law. new text end 91.9 new text begin (b) new text end The county board may, by resolution duly adopted, resolve that certain lands 91.10classified as conservation lands shall be devoted to conservation uses and may submit 91.11such new text begin a new text end resolution to the commissioner of natural resources. If, upon investigation, 91.12the commissioner of natural resources determines that the lands covered by such new text begin the new text end 91.13resolution, or any part thereof, can be managed and developed for conservation purposes, 91.14the commissioner shall make a certificate describing the lands and reciting the acceptance 91.15thereof on behalf of the state for such purposes. The commissioner shall transmit the 91.16certificate to the county auditor, who shall note the same upon the auditor's records and 91.17record the same with the county recorder. The title to all lands so accepted shall be held 91.18by the state free from any trust in favor of any and all taxing districts and such new text begin the new text end lands 91.19shall be devoted thereafter to the purposes of forestry, water conservation, flood control, 91.20parks, game refuges, controlled game management areas, public shooting grounds, or 91.21other public recreational or conservation uses, and managed, controlled, and regulated 91.22for such purposes under the jurisdiction of the commissioner of natural resources and 91.23the divisions of the department. 91.24 new text begin (c) All proceeds derived from the sale of timber, lease of crops of hay, or other new text end 91.25 new text begin revenue from lands under the jurisdiction of the commissioner of natural resources shall new text end 91.26 new text begin be credited to the general fund of the state. new text end 91.27In case new text begin (d) If new text end the commissioner of natural resources shall determine new text begin determines new text end that 91.28any tract of land so held new text begin acquired new text end by the state new text begin under paragraph (b) new text end and situated within or 91.29adjacent to the boundaries of any governmental subdivision of the state is suitable for use 91.30by such new text begin the new text end subdivision for any authorized public purpose, the commissioner may convey 91.31such new text begin the new text end tract by deed in the name of the state to such new text begin the new text end subdivision upon the filing 91.32with the commissioner of a resolution adopted by a majority vote of all the members 91.33of the governing body thereof, stating the purpose for which the land is desired. The 91.34deed of conveyance shall be upon a form approved by the attorney general new text begin and must be new text end 91.35conditioned upon continued use for the purpose stated in the resolution. All proceeds 91.36derived from the sale of timber, lease of hay stumpage, or other revenue from such 92.1lands under the jurisdiction of the natural resources commissioner shall be paid into the 92.2general fund of the state. 92.3 new text begin (e) new text end The county auditor, with the approval of the county board, may lease conservation 92.4lands remaining under the jurisdiction new text begin supervision new text end of the county board and sell timber 92.5and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived 92.6therefrom shall be distributed in the same manner as provided in section 282.04. 92.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 92.8    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read: 92.9    Subd. 3. Nonconservation lands; appraisal and sale. new text begin (a) new text end All parcels of land 92.10classified as nonconservation, except those which may be reserved, shall be sold as 92.11provided, if it is determined, by the county board of the county in which the parcels lie, 92.12that it is advisable to do so, having in mind their accessibility, their proximity to existing 92.13public improvements, and the effect of their sale and occupancy on the public burdens. 92.14Any parcels of land proposed to be sold shall be first appraised by the county board of 92.15the county in which the parcels lie. The parcels may be reappraised whenever the county 92.16board deems it necessary to carry out the intent of sections 282.01 to 282.13. 92.17 new text begin (b) new text end In an appraisal the value of the land and any standing timber on it shall be 92.18separately determined. No parcel of land containing any standing timber may be sold until 92.19the appraised value of the timber on it and the sale of the land have been approved by the 92.20commissioner of natural resources. The commissioner shall base review of a proposed 92.21sale on the policy and considerations specified in subdivision 1. The decision of the 92.22commissioner shall be in writing and shall state the reasons for it. The commissioner's 92.23decision is exempt from the rulemaking provisions of chapter 14 and section 14.386 92.24does not apply. The county may appeal the decision of the commissioner in accordance 92.25with chapter 14. 92.26 new text begin (c) new text end In any county in which a state forest or any part of it is located, the county 92.27auditor shall submit to the commissioner at least 60 days before the first publication of the 92.28list of lands to be offered for sale a list of all lands included on the list which are situated 92.29outside of any incorporated municipality. If, at any time before the opening of the sale, the 92.30commissioner notifies the county auditor in writing that there is standing timber on any 92.31parcel of such land, the parcel shall not be sold unless the requirements of this section 92.32respecting the separate appraisal of the timber and the approval of the appraisal by the 92.33commissioner have been complied with. The commissioner may waive the requirement 92.34of the 60-day notice as to any parcel of land which has been examined and the timber 92.35value approved as required by this section. 93.1 new text begin (d) new text end If any public improvement is made by a municipality after any parcel of land has 93.2been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in 93.3whole or in part against the property benefited by it, the clerk of the municipality shall 93.4certify to the county auditor, immediately upon the determination of the assessments for 93.5the improvement, the total amount that would have been assessed against the parcel of land 93.6if it had been subject to assessment; or if the public improvement is made, petitioned for, 93.7ordered in or assessed, whether the improvement is completed in whole or in part, at any 93.8time between the appraisal and the sale of the parcel of land, the cost of the improvement 93.9shall be included as a separate item and added to the appraised value of the parcel of land 93.10at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land 93.11from lien for the special benefit conferred upon it by reason of the public improvement 93.12until the cost of it, including penalties, if any, is paid. The county board shall determine 93.13the amount, if any, by which the value of the parcel was enhanced by the improvement and 93.14include the amount as a separate item in fixing the appraised value for the purpose of sale. 93.15In classifying, appraising, and selling the lands, the county board may designate the tracts 93.16as assessed and acquired, or may by resolution provide for the subdivision of the tracts into 93.17smaller units or for the grouping of several tracts into one tract when the subdivision or 93.18grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger 93.19tract must be classified and appraised as such before being offered for sale. If any such 93.20lands have once been classified, the board of county commissioners, in its discretion, may, 93.21by resolution, authorize the sale of the smaller tract or larger tract without reclassification. 93.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 93.23    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read: 93.24    Subd. 4. Sale: method, requirements, effects. The sale new text begin authorized under new text end 93.25 new text begin subdivision 3 new text end must be conducted by the county auditor at the county seat of the county in 93.26which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may 93.27be conducted in any county facility within the county. new text begin The sale must not be for less than new text end 93.28 new text begin the appraised value except as provided in subdivision 7a. new text end The parcels must be sold for 93.29cash only and at not less than the appraised value, unless the county board of the county 93.30has adopted a resolution providing for their sale on terms, in which event the resolution 93.31controls with respect to the sale. When the sale is made on terms other than for cash only 93.32(1) a payment of at least ten percent of the purchase price must be made at the time of 93.33purchase, and the balance must be paid in no more than ten equal annual installments, or 93.34(2) the payments must be made in accordance with county board policy, but in no event 93.35may the board require more than 12 installments annually, and the contract term must not 94.1be for more than ten years. Standing timber or timber products must not be removed from 94.2these lands until an amount equal to the appraised value of all standing timber or timber 94.3products on the lands at the time of purchase has been paid by the purchaser. If a parcel of 94.4land bearing standing timber or timber products is sold at public auction for more than 94.5the appraised value, the amount bid in excess of the appraised value must be allocated 94.6between the land and the timber in proportion to their respective appraised values. In that 94.7case, standing timber or timber products must not be removed from the land until the 94.8amount of the excess bid allocated to timber or timber products has been paid in addition 94.9to the appraised value of the land. The purchaser is entitled to immediate possession, 94.10subject to the provisions of any existing valid lease made in behalf of the state. 94.11For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 94.12is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 94.13of the purchase price for sales occurring after December 31, 1990, is subject to interest 94.14at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to 94.15change each year on the unpaid balance in the manner provided for rate changes in section 94.16549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract 94.17balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale 94.18at the time that the sale occurred. 94.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 94.20    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read: 94.21    Subd. 7. County sales; notice, purchase price, disposition. The sale must 94.22commence at the time determined by the county board of the county in which the parcels 94.23are located. The county auditor shall offer the parcels of land in order in which they 94.24appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum 94.25less than the appraised value, until all of the parcels of land have been offered. Then the 94.26county auditor shall sell any remaining parcels to anyone offering to pay the appraised 94.27value, except that if the person could have repurchased a parcel of property under section 94.28282.012 or 282.241, that person may not purchase that same parcel of property at the sale 94.29under this subdivision for a purchase price less than the sum of all taxes, assessments, 94.30penalties, interest, and costs due at the time of forfeiture computed under section 282.251, 94.31and any special assessments for improvements certified as of the date of sale. The sale 94.32must continue until all the parcels are sold or until the county board orders a reappraisal or 94.33withdraws any or all of the parcels from sale. The list of lands may be added to and the 94.34added lands may be sold at any time by publishing the descriptions and appraised values. 94.35The added lands must be: (1) parcels of land that have become forfeited and classified 95.1as nonconservation since the commencement of any prior sale; (2) parcels new text begin classified as new text end 95.2 new text begin nonconservation new text end that have been reappraised; (3) parcels that have been reclassified as 95.3nonconservation; or (4) other parcels that are subject to sale but were omitted from the 95.4existing list for any reason. The descriptions and appraised values must be published in 95.5the same manner as provided for the publication of the original list. Parcels added to the 95.6list must first be offered for sale to the highest bidder before they are sold at appraised 95.7value. All parcels of land not offered for immediate sale, as well as parcels that are offered 95.8and not immediately sold, continue to be held in trust by the state for the taxing districts 95.9interested in each of the parcels, under the supervision of the county board. Those parcels 95.10may be used for public purposes until sold, as directed by the county board. 95.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 95.12    Sec. 12. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read: 95.13    Subd. 7a. City sales; alternate procedures. Land located in a home rule charter 95.14or statutory city, or in a town which cannot be improved because of noncompliance with 95.15local ordinances regarding minimum area, shape, frontage or access may be sold by the 95.16county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale 95.17will encourage the approval of sale of the land by the city or town and promote its return 95.18to the tax rolls. If the physical characteristics of the land indicate that its highest and best 95.19use will be achieved by combining it with an adjoining parcel and the city or town has not 95.20adopted a local ordinance governing minimum area, shape, frontage, or access, the land 95.21may also be sold pursuant to this subdivision. If the property consists of an undivided 95.22interest in land or land and improvements, the property may also be sold to the other 95.23owners under this subdivision. The sale of land pursuant to this subdivision shall be 95.24subject to any conditions imposed by the county board pursuant to section 282.03. The 95.25governing body of the city or town may recommend to the county board conditions to be 95.26imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining 95.27the land to be sold. The county auditor shall conduct the sale by sealed bid or may select 95.28another means of sale. The land shall be sold to the highest bidder but in no event shall the 95.29land new text begin and may new text end be sold for less than its appraised value. All owners of land adjoining the 95.30land to be sold shall be given a written notice at least 30 days prior to the sale. 95.31This subdivision shall be liberally construed to encourage the sale and utilization 95.32of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase 95.33compliance with land use ordinances. 95.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 96.1    Sec. 13. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision 96.2to read: 96.3     new text begin Subd. 12. new text end new text begin Notice; public hearing for use change. new text end new text begin If a governmental subdivision new text end 96.4 new text begin that acquired a parcel for public use under this section later determines to change the use, new text end 96.5 new text begin it must hold a public hearing on the proposed use change. The governmental subdivision new text end 96.6 new text begin must mail written notice of the proposed use change and the public hearing to each owner new text end 96.7 new text begin of property that is within 400 feet of the parcel at least ten days and no more than 60 days new text end 96.8 new text begin before it holds the hearing. The notice must identify: (1) the parcel, (2) its current use, new text end 96.9 new text begin (3) the proposed use, (4) the date, time, and place of the public hearing, and (5) where new text end 96.10 new text begin to submit written comments on the proposal and that the public is invited to testify at new text end 96.11 new text begin the public hearing. new text end 96.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010, and applies to a change new text end 96.13 new text begin in use of a parcel acquired under Minnesota Statutes, section 282.01, whether acquired by new text end 96.14 new text begin the governmental subdivision before or after the effective date of this section. new text end 96.15    Sec. 14. new text begin REPEALER. new text end 96.16 new text begin Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76, new text end new text begin new text end 96.17 new text begin are repealed. new text end 96.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end