<a id="pl.1.3"></a><var>1.3</var>local sales and use, tax increment financing, aggregate material, and other <br/>
<a id="pl.1.4"></a><var>1.4</var>taxes and tax-related provisions; making changes to the green acres and rural <br/>
<a id="pl.1.5"></a><var>1.5</var>preserve programs; authorizing border city development zone powers and local <br/>
<a id="pl.1.6"></a><var>1.6</var>taxes; modifying regional railroad authority provisions; repealing sustainable <br/>
<a id="pl.1.7"></a><var>1.7</var>forest resource management incentive; authorizing grants to local governments <br/>
<a id="pl.1.8"></a><var>1.8</var>for cooperation, consolidation, and service innovation; requiring reports; <br/>
<a id="pl.1.9"></a><var>1.9</var>appropriating money;amending Minnesota Statutes 2010, sections 97A.061, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivisions 1, 3; 270A.03, subdivision 7; 272.02, by adding a subdivision; <br/>
<a id="pl.1.11"></a><var>1.11</var>273.111, subdivision 9, by adding a subdivision; 273.114, subdivisions 2, 5, 6; <br/>
<a id="pl.1.12"></a><var>1.12</var>273.121, subdivision 1; 273.13, subdivisions 21b, 25, 34; 273.1384, subdivisions <br/>
<a id="pl.1.13"></a><var>1.13</var>1, 3, 4; 273.1393; 273.1398, subdivision 3; 275.025, subdivision 3; 275.066; <br/>
<a id="pl.1.14"></a><var>1.14</var>275.08, subdivisions 1a, 1d; 276.04, subdivision 2; 279.01, subdivision 1; <br/>
<a id="pl.1.15"></a><var>1.15</var>289A.50, subdivision 1; 290.01, subdivision 6; 290A.03, subdivisions 11, <br/>
<a id="pl.1.16"></a><var>1.16</var>13; 290A.04, subdivisions 2, 4; 297A.99, subdivision 1; 298.75, by adding <br/>
<a id="pl.1.17"></a><var>1.17</var>a subdivision; 398A.04, subdivision 8; 398A.07, subdivision 2; 469.1763, <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivision 2; 473.757, subdivisions 2, 11; 477A.011, by adding subdivisions; <br/>
<a id="pl.1.19"></a><var>1.19</var>477A.0124, by adding a subdivision; 477A.013, subdivisions 8, 9, by adding <br/>
<a id="pl.1.20"></a><var>1.20</var>a subdivision; 477A.03; 477A.11, subdivision 1; 477A.12, subdivision 1; <br/>
<a id="pl.1.21"></a><var>1.21</var>477A.14, subdivision 1; 477A.17; Laws 1996, chapter 471, article 2, section <br/>
<a id="pl.1.22"></a><var>1.22</var>29, subdivision 1, as amended; Laws 1998, chapter 389, article 8, section <br/>
<a id="pl.1.23"></a><var>1.23</var>43, subdivisions 3, as amended, 4, as amended, 5, as amended; Laws 2008, <br/>
<a id="pl.1.24"></a><var>1.24</var>chapter 366, article 7, section 19, subdivision 3; Laws 2010, chapter 389, article <br/>
<a id="pl.1.25"></a><var>1.25</var>7, section 22; proposing coding for new law in Minnesota Statutes, chapters <br/>
<a id="pl.1.26"></a><var>1.26</var>275; 373; repealing Minnesota Statutes 2010, sections 10A.322, subdivision 4; <br/>
<a id="pl.1.27"></a><var>1.27</var>13.4967, subdivision 2; 273.114, subdivision 1; 273.1384, subdivision 6; 279.01, <br/>
<a id="pl.1.28"></a><var>1.28</var>subdivision 4; 290.06, subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04; <br/>
<a id="pl.1.29"></a><var>1.29</var>290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; <br/>
<a id="pl.1.30"></a><var>1.30</var>290C.12; 290C.13; 477A.145.<br/>
<a id="pl.1.31"></a><var>1.31</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.3"></a><var>2.3</var>    Section 1. Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to <br/>
<a id="pl.2.4"></a><var>2.4</var>read:<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 2.  <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.2.6"></a><var>2.6</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br/>
<a id="pl.2.7"></a><var>2.7</var>increments paid by properties in the district must be expended on activities in the district <br/>
<a id="pl.2.8"></a><var>2.8</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br/>
<a id="pl.2.9"></a><var>2.9</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.2.10"></a><var>2.10</var>For districts, other than redevelopment districts for which the request for certification <br/>
<a id="pl.2.11"></a><var>2.11</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br/>
<a id="pl.2.12"></a><var>2.12</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br/>
<a id="pl.2.13"></a><var>2.13</var>increments paid by properties in the district may be expended, through a development fund <br/>
<a id="pl.2.14"></a><var>2.14</var>or otherwise, on activities outside of the district but within the defined geographic area of <br/>
<a id="pl.2.15"></a><var>2.15</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.2.16"></a><var>2.16</var>For districts, other than redevelopment districts for which the request for certification was <br/>
<a id="pl.2.17"></a><var>2.17</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br/>
<a id="pl.2.18"></a><var>2.18</var>20 percent. The revenue derived from tax increments for the district that are expended on <br/>
<a id="pl.2.19"></a><var>2.19</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.2.20"></a><var>2.20</var>calculating the percentages that must be expended within and without the district. <br/>
<a id="pl.2.21"></a><var>2.21</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision 11
         </statute_ref>, is an activity in the district. <br/>
<a id="pl.2.23"></a><var>2.23</var>    (c) All administrative expenses are for activities outside of the district, except that <br/>
<a id="pl.2.24"></a><var>2.24</var>if the only expenses for activities outside of the district under this subdivision are for <br/>
<a id="pl.2.25"></a><var>2.25</var>the purposes described in paragraph (d), administrative expenses will be considered as <br/>
<a id="pl.2.26"></a><var>2.26</var>expenditures for activities in the district. <br/>
<a id="pl.2.27"></a><var>2.27</var>    (d) The authority may elect, in the tax increment financing plan for the district, <br/>
<a id="pl.2.28"></a><var>2.28</var>to increase by up to ten percentage points the permitted amount of expenditures for <br/>
<a id="pl.2.29"></a><var>2.29</var>activities located outside the geographic area of the district under paragraph (a). As <br/>
<a id="pl.2.30"></a><var>2.30</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.2.31"></a><var>2.31</var>expenditures under paragraph (a), need not be made within the geographic area of the <br/>
<a id="pl.2.32"></a><var>2.32</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br/>
<a id="pl.2.33"></a><var>2.33</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br/>
<a id="pl.2.34"></a><var>2.34</var>To qualify for the increase under this paragraph, the expenditures must: <br/>
<a id="pl.3.1"></a><var>3.1</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified <br/>
<a id="pl.3.2"></a><var>3.2</var>low-income building, as that term is used in section 42 of the Internal Revenue Code; and<br/>
<a id="pl.3.3"></a><var>3.3</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of <br/>
<a id="pl.3.4"></a><var>3.4</var>the Internal Revenue Code, less the amount of any credit allowed under section 42 of <br/>
<a id="pl.3.5"></a><var>3.5</var>the Internal Revenue Code; and <br/>
<a id="pl.3.6"></a><var>3.6</var>    (3) be used to: <br/>
<a id="pl.3.7"></a><var>3.7</var>    (i) acquire and prepare the site of the housing; <br/>
<a id="pl.3.8"></a><var>3.8</var>    (ii) acquire, construct, or rehabilitate the housing; or <br/>
<a id="pl.3.9"></a><var>3.9</var>    (iii) make public improvements directly related to the housing.; or<br/>
<a id="pl.3.10"></a><var>3.10</var>(4) be used to develop housing:<br/>
<a id="pl.3.11"></a><var>3.11</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.3.12"></a><var>3.12</var>(A) 150 percent of the average market of single-family homes in that municipality; or<br/>
<a id="pl.3.13"></a><var>3.13</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.3.14"></a><var>3.14</var>section 473.121, or $125,000 for all other municipalities; and<br/>
<a id="pl.3.15"></a><var>3.15</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br/>
<a id="pl.3.16"></a><var>3.16</var>demolition of existing structures, site preparation, and pollution abatement on one or <br/>
<a id="pl.3.17"></a><var>3.17</var>more parcels, if the parcel:<br/>
<a id="pl.3.18"></a><var>3.18</var>(A) contains a residence containing one to four family dwelling units that has been <br/>
<a id="pl.3.19"></a><var>3.19</var>vacant for six or more months;<br/>
<a id="pl.3.20"></a><var>3.20</var>(B) contains a residence containing one to four family dwelling units that is <br/>
<a id="pl.3.21"></a><var>3.21</var>structurally substandard, as defined in section 469.174, subdivision 10;<br/>
<a id="pl.3.22"></a><var>3.22</var>(C) is in foreclosure as defined in section 325N.10, subdivision 7, but without regard <br/>
<a id="pl.3.23"></a><var>3.23</var>to whether the residence is the owner's principal residence, and a notice of pendency of the <br/>
<a id="pl.3.24"></a><var>3.24</var>foreclosure has been recorded under section 580.032, except a notice of pendency is not <br/>
<a id="pl.3.25"></a><var>3.25</var>required for a delinquency or default that relates to a contract for deed payment; or<br/>
<a id="pl.3.26"></a><var>3.26</var>(D) is a vacant site, if the authority uses the parcel in connection with the <br/>
<a id="pl.3.27"></a><var>3.27</var>development or redevelopment of a parcel qualifying under subitems (A) to (C).<br/>
<a id="pl.3.28"></a><var>3.28</var>    (e) For a district created within a biotechnology and health sciences industry zone <br/>
<a id="pl.3.29"></a><var>3.29</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br/>
<a id="pl.3.30"></a><var>3.30</var>such a zone, tax increment derived from such a district may be expended outside of the <br/>
<a id="pl.3.31"></a><var>3.31</var>district but within the zone only for expenditures required for the construction of public <br/>
<a id="pl.3.32"></a><var>3.32</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br/>
<a id="pl.3.33"></a><var>3.33</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br/>
<a id="pl.3.34"></a><var>3.34</var>considered as expenditures for activities within the district. <br/>
<a id="pl.3.35"></a><var>3.35</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.3.36"></a><var>3.36</var>Increments may continue to be expended under this authority after that date, if they are <br/>
<a id="pl.4.1"></a><var>4.1</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br/>
<a id="pl.4.2"></a><var>4.2</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br/>
<a id="pl.4.3"></a><var>4.3</var>certification under that provision.<br/>
<a id="pl.4.4"></a><var>4.4</var><b>EFFECTIVE DATE.</b>This section is effective for any district that is subject to the <br/>
<a id="pl.4.5"></a><var>4.5</var>provisions of section 469.1763, regardless of when the request for certification of the <br/>
<a id="pl.4.6"></a><var>4.6</var>district was made.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 2. Laws 2010, chapter 389, article 7, section 22, is amended to read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Sec. 22. <b>CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; </b><br/>
<a id="pl.4.9"></a><var>4.9</var><b>SPECIAL RULES.</b><br/>
<a id="pl.4.10"></a><var>4.10</var>(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax <br/>
<a id="pl.4.11"></a><var>4.11</var>increment financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.4.12"></a><var>4.12</var>tax increment financing district established by the city or an authority of the city. The <br/>
<a id="pl.4.13"></a><var>4.13</var>redevelopment tax increment district includes parcels within the area bounded on the east <br/>
<a id="pl.4.14"></a><var>4.14</var>by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama <br/>
<a id="pl.4.15"></a><var>4.15</var>Street, on the west by Llama Street, and on the south by a line running parallel to and <br/>
<a id="pl.4.16"></a><var>4.16</var>600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels <br/>
<a id="pl.4.17"></a><var>4.17</var>28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka <br/>
<a id="pl.4.18"></a><var>4.18</var>County Regional Park property in its entirety. A parcel within this area that is included in <br/>
<a id="pl.4.19"></a><var>4.19</var>a tax increment financing district that was certified before the date of enactment of this act <br/>
<a id="pl.4.20"></a><var>4.20</var>may be included in the district created under this act if the initial district is decertified.<br/>
<a id="pl.4.21"></a><var>4.21</var>(b) The requirements for qualifying a redevelopment tax increment district under <br/>
<a id="pl.4.22"></a><var>4.22</var>Minnesota Statutes, section 
         <statute_ref>469.174, subdivision 10</statute_ref>, do not apply to the parcels located <br/>
<a id="pl.4.23"></a><var>4.23</var>within the district.<br/>
<a id="pl.4.24"></a><var>4.24</var>(c) In addition to the costs permitted by Minnesota Statutes, section 
         <statute_ref>469.176, <br/>
<a id="pl.4.25"></a><var>4.25</var>subdivision 4j
         </statute_ref>, does not apply to the district. Eligible expenditures within the district <br/>
<a id="pl.4.26"></a><var>4.26</var>include but are not limited to (1) the city's share of the costs necessary to provide for <br/>
<a id="pl.4.27"></a><var>4.27</var>the construction of the Northstar Transit Station and related infrastructure, including <br/>
<a id="pl.4.28"></a><var>4.28</var>structured parking, a pedestrian overpass, and roadway improvements, (2) the cost of <br/>
<a id="pl.4.29"></a><var>4.29</var>land acquired by the city or the housing and redevelopment authority in and for the city <br/>
<a id="pl.4.30"></a><var>4.30</var>of Ramsey within the district prior to the establishment of the district, and (3) the cost <br/>
<a id="pl.4.31"></a><var>4.31</var>of public improvements installed within the tax increment financing district prior to the <br/>
<a id="pl.4.32"></a><var>4.32</var>establishment of the district.<br/>
<a id="pl.4.33"></a><var>4.33</var>(d) The requirement of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that <br/>
<a id="pl.4.34"></a><var>4.34</var>activities must be undertaken within a five-year period from the date of certification of a <br/>
<a id="pl.5.1"></a><var>5.1</var>tax increment financing district, is considered to be met for the district if the activities <br/>
<a id="pl.5.2"></a><var>5.2</var>were undertaken within ten years from the date of certification of the district.<br/>
<a id="pl.5.3"></a><var>5.3</var>(e) Except for administrative expenses, the in-district percentage for purposes of <br/>
<a id="pl.5.4"></a><var>5.4</var>the restriction on pooling under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, for <br/>
<a id="pl.5.5"></a><var>5.5</var>this district is 100 percent.<br/>
<a id="pl.5.6"></a><var>5.6</var>(f) The four-year period under Minnesota Statutes, section 469.176, subdivision <br/>
<a id="pl.5.7"></a><var>5.7</var>6, is extended to six years for the district.<br/>
<a id="pl.5.8"></a><var>5.8</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.5.9"></a><var>5.9</var>body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes, <br/>
<a id="pl.5.10"></a><var>5.10</var>section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.11"></a><var>5.11</var>    Sec. 3. <b>CITY OF LINO LAKES; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.5.12"></a><var>5.12</var>    Subdivision 1. <b>Duration of district.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.5.13"></a><var>5.13</var>Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax <br/>
<a id="pl.5.14"></a><var>5.14</var>increments from tax increment financing district no. 1-10 through December 31, 2023, <br/>
<a id="pl.5.15"></a><var>5.15</var>subject to the conditions in subdivision 2.<br/>
<a id="pl.5.16"></a><var>5.16</var>    Subd. 2. <b>Conditions for extension.</b> All tax increments remaining in the account <br/>
<a id="pl.5.17"></a><var>5.17</var>for the district after February 1, 2011, and all tax increments collected thereafter, must <br/>
<a id="pl.5.18"></a><var>5.18</var>be used only to pay debt service on bonds issued to finance the interchange of Anoka <br/>
<a id="pl.5.19"></a><var>5.19</var>County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public <br/>
<a id="pl.5.20"></a><var>5.20</var>improvements serving the development known as Legacy at Woods Edge, and any bonds <br/>
<a id="pl.5.21"></a><var>5.21</var>issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and <br/>
<a id="pl.5.22"></a><var>5.22</var>469.1763 do not apply to expenditures made under this section.<br/>
<a id="pl.5.23"></a><var>5.23</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.5.24"></a><var>5.24</var>body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.5.25"></a><var>5.25</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.26"></a><var>5.26</var>    Sec. 4. <b>CITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.</b><br/>
<a id="pl.5.27"></a><var>5.27</var>    Subdivision 1. <b>Authorization.</b> The governing body of the city of Taylors Falls may <br/>
<a id="pl.5.28"></a><var>5.28</var>designate all or any part of the city as a border city development zone.<br/>
<a id="pl.5.29"></a><var>5.29</var>    Subd. 2. <b>Application of general law.</b> (a) Minnesota Statutes, sections 469.1731 to <br/>
<a id="pl.5.30"></a><var>5.30</var>469.1735, apply to the border city development zones designated under this section. The <br/>
<a id="pl.5.31"></a><var>5.31</var>governing body of the city may exercise the powers granted under Minnesota Statutes, <br/>
<a id="pl.5.32"></a><var>5.32</var>sections 469.1731 to 469.1735, including powers that apply outside of the zones.<br/>
<a id="pl.6.1"></a><var>6.1</var>(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section <br/>
<a id="pl.6.2"></a><var>6.2</var>469.1735, subdivision 2, is appropriated to the commissioner of revenue.<br/>
<a id="pl.6.3"></a><var>6.3</var>    Subd. 3. <b>Allocation of state tax reductions.</b> (a) The cumulative total amount of the <br/>
<a id="pl.6.4"></a><var>6.4</var>state portion of the tax reductions for all years of the program under Minnesota Statutes, <br/>
<a id="pl.6.5"></a><var>6.5</var>sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.<br/>
<a id="pl.6.6"></a><var>6.6</var>(b) This allocation may be used for tax reductions provided in Minnesota Statutes, <br/>
<a id="pl.6.7"></a><var>6.7</var>section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section <br/>
<a id="pl.6.8"></a><var>6.8</var>469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls <br/>
<a id="pl.6.9"></a><var>6.9</var>determines that the tax reduction or offset is necessary to enable a business to expand <br/>
<a id="pl.6.10"></a><var>6.10</var>within the city or to attract a business to the city.<br/>
<a id="pl.6.11"></a><var>6.11</var>(c) The commissioner of revenue may waive the limit under this subdivision using <br/>
<a id="pl.6.12"></a><var>6.12</var>the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision <br/>
<a id="pl.6.13"></a><var>6.13</var>12, paragraph (b).<br/>
<a id="pl.6.14"></a><var>6.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.6.17"></a><var>6.17</var>    Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to <br/>
<a id="pl.6.18"></a><var>6.18</var>read:<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subdivision 1. <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.6.20"></a><var>6.20</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, (3) if <br/>
<a id="pl.6.21"></a><var>6.21</var>permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision <br/>
<a id="pl.6.22"></a><var>6.22</var>enacted and imposed the tax before January 1, 1982, and its predecessor provision.<br/>
<a id="pl.6.23"></a><var>6.23</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.6.24"></a><var>6.24</var>subdivision. The provisions of this section preempt the provisions of any special law:<br/>
<a id="pl.6.25"></a><var>6.25</var>    (1) enacted before June 2, 1997, or<br/>
<a id="pl.6.26"></a><var>6.26</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.6.27"></a><var>6.27</var>provision from this section's rules by reference.<br/>
<a id="pl.6.28"></a><var>6.28</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.6.29"></a><var>6.29</var>special excise tax on motor vehicles.<br/>
<a id="pl.6.30"></a><var>6.30</var>    (d) Until after May 31, 2010 2013, a political subdivision may not advertise, <br/>
<a id="pl.6.31"></a><var>6.31</var>promote, expend funds, or hold a referendum to support imposing a local option sales tax <br/>
<a id="pl.6.32"></a><var>6.32</var>unless it is for extension of an existing tax or the tax was authorized by a special law <br/>
<a id="pl.6.33"></a><var>6.33</var>enacted prior to May 20, 2008 May 24, 2011.<br/>
<a id="pl.6.34"></a><var>6.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.7.1"></a><var>7.1</var>    Sec. 2. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision <br/>
<a id="pl.7.2"></a><var>7.2</var>to read:<br/>
<a id="pl.7.3"></a><var>7.3</var>    Subd. 12. <b>Tax may be imposed; Pope County.</b> (a) If Pope County does not <br/>
<a id="pl.7.4"></a><var>7.4</var>impose a tax under this section and approves imposition of the tax under this subdivision, <br/>
<a id="pl.7.5"></a><var>7.5</var>Glenwood Township in Pope County may impose the aggregate materials tax under this <br/>
<a id="pl.7.6"></a><var>7.6</var>section.<br/>
<a id="pl.7.7"></a><var>7.7</var>    (b) For purposes of exercising the powers contained in this section, the "township" is <br/>
<a id="pl.7.8"></a><var>7.8</var>deemed to be the "county."<br/>
<a id="pl.7.9"></a><var>7.9</var>    (c) All provisions in this section apply to Glenwood Township, except that all <br/>
<a id="pl.7.10"></a><var>7.10</var>proceeds of the tax must be retained by the township and used for the purposes described <br/>
<a id="pl.7.11"></a><var>7.11</var>in subdivision 7.<br/>
<a id="pl.7.12"></a><var>7.12</var>    (d) If Pope County imposes an aggregate materials tax under this section, the tax <br/>
<a id="pl.7.13"></a><var>7.13</var>imposed by Glenwood Township under this subdivision is repealed on the effective date <br/>
<a id="pl.7.14"></a><var>7.14</var>of the Pope County tax.<br/>
<a id="pl.7.15"></a><var>7.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.7.16"></a><var>7.16</var>of Glenwood Township and its chief clerical officer comply with section 645.021, <br/>
<a id="pl.7.17"></a><var>7.17</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.7.18"></a><var>7.18</var>    Sec. 3. Minnesota Statutes 2010, section 473.757, subdivision 2, is amended to read:<br/>
<a id="pl.7.19"></a><var>7.19</var>    Subd. 2. <b>Youth sports; library.</b> To the extent funds are available from collections <br/>
<a id="pl.7.20"></a><var>7.20</var>of the tax authorized by subdivision 10 after payment each year of debt service on the <br/>
<a id="pl.7.21"></a><var>7.21</var>bonds authorized and issued under subdivision 9 and payments for the purposes described <br/>
<a id="pl.7.22"></a><var>7.22</var>in subdivision 1, the county may also authorize, by resolution, and expend or make <br/>
<a id="pl.7.23"></a><var>7.23</var>grants to the authority and to other governmental units and nonprofit organizations in an <br/>
<a id="pl.7.24"></a><var>7.24</var>aggregate amount of up to $4,000,000 annually, increased by up to 1.5 percent annually <br/>
<a id="pl.7.25"></a><var>7.25</var>to fund equally: (1) youth activities and youth and amateur sports within Hennepin <br/>
<a id="pl.7.26"></a><var>7.26</var>County; and (2) the cost of extending the hours of operation of Hennepin County libraries <br/>
<a id="pl.7.27"></a><var>7.27</var>and Minneapolis public libraries.<br/>
<a id="pl.7.28"></a><var>7.28</var>The money provided under this subdivision is intended to supplement and not <br/>
<a id="pl.7.29"></a><var>7.29</var>supplant county expenditures for these purposes as of May 27, 2006.<br/>
<a id="pl.7.30"></a><var>7.30</var>Hennepin County must provide reports to the chairs of the committees and budget <br/>
<a id="pl.7.31"></a><var>7.31</var>divisions in the senate and the house of representatives that have jurisdiction over <br/>
<a id="pl.7.32"></a><var>7.32</var>education policy and funding, describing the uses of the money provided under this <br/>
<a id="pl.7.33"></a><var>7.33</var>subdivision. The first report must be made by January 15, 2009, and subsequent reports <br/>
<a id="pl.7.34"></a><var>7.34</var>must be made on January 15 of each subsequent odd-numbered year.<br/>
<a id="pl.8.1"></a><var>8.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.8.2"></a><var>8.2</var>    Sec. 4. Minnesota Statutes 2010, section 473.757, subdivision 11, is amended to read:<br/>
<a id="pl.8.3"></a><var>8.3</var>    Subd. 11. <b>Uses of tax.</b> (a) Revenues received from the tax imposed under <br/>
<a id="pl.8.4"></a><var>8.4</var>subdivision 10 may be used:<br/>
<a id="pl.8.5"></a><var>8.5</var>(1) to pay costs of collection;<br/>
<a id="pl.8.6"></a><var>8.6</var>(2) to pay or reimburse or secure the payment of any principal of, premium, or <br/>
<a id="pl.8.7"></a><var>8.7</var>interest on bonds issued in accordance with this act;<br/>
<a id="pl.8.8"></a><var>8.8</var>(3) to pay costs and make expenditures and grants described in this section, including <br/>
<a id="pl.8.9"></a><var>8.9</var>financing costs related to them;<br/>
<a id="pl.8.10"></a><var>8.10</var>(4) to maintain reserves for the foregoing purposes deemed reasonable and <br/>
<a id="pl.8.11"></a><var>8.11</var>appropriate by the county;<br/>
<a id="pl.8.12"></a><var>8.12</var>(5) to pay for operating costs of the ballpark authority other than the cost of <br/>
<a id="pl.8.13"></a><var>8.13</var>operating or maintaining the ballpark; and<br/>
<a id="pl.8.14"></a><var>8.14</var>(6) to make expenditures and grants for youth activities and amateur sports and <br/>
<a id="pl.8.15"></a><var>8.15</var>extension of library hours as described in subdivision 2;<br/>
<a id="pl.8.16"></a><var>8.16</var>and for no other purpose.<br/>
<a id="pl.8.17"></a><var>8.17</var>(b) Revenues from the tax designated for use under paragraph (a), clause (5), must <br/>
<a id="pl.8.18"></a><var>8.18</var>be deposited in the operating fund of the ballpark authority.<br/>
<a id="pl.8.19"></a><var>8.19</var>(c) After completion of the ballpark and public infrastructure, the tax revenues not <br/>
<a id="pl.8.20"></a><var>8.20</var>required for current payments of the expenditures described in paragraph (a), clauses (1) to <br/>
<a id="pl.8.21"></a><var>8.21</var>(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for <br/>
<a id="pl.8.22"></a><var>8.22</var>payment of future obligations under grants or other commitments for future expenditures <br/>
<a id="pl.8.23"></a><var>8.23</var>which are permitted by this section paragraph (a), clauses (1) to (5), but no additional tax <br/>
<a id="pl.8.24"></a><var>8.24</var>revenues may be deposited in the fund when its balance exceeds $20,000,000. Upon the <br/>
<a id="pl.8.25"></a><var>8.25</var>redemption or defeasance of the bonds and the establishment of reserves adequate to meet <br/>
<a id="pl.8.26"></a><var>8.26</var>such future obligations, the taxes shall terminate and shall not be reimposed.<br/>
<a id="pl.8.27"></a><var>8.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.8.28"></a><var>8.28</var>    Sec. 5. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by <br/>
<a id="pl.8.29"></a><var>8.29</var>Laws 2006, chapter 259, article 3, section 3, is amended to read:<br/>
<a id="pl.8.30"></a><var>8.30</var>    Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, <br/>
<a id="pl.8.31"></a><var>8.31</var>section 477A.016, or any other contrary provision of law, ordinance, or city charter, the <br/>
<a id="pl.8.32"></a><var>8.32</var>city of Hermantown may, by ordinance, impose an additional sales tax of up to one <br/>
<a id="pl.8.33"></a><var>8.33</var>percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that <br/>
<a id="pl.9.1"></a><var>9.1</var>occur within the city. The proceeds of the tax imposed under this section must be used to <br/>
<a id="pl.9.2"></a><var>9.2</var>meet the costs of:<br/>
<a id="pl.9.3"></a><var>9.3</var>    (1) extending a sewer interceptor line; <br/>
<a id="pl.9.4"></a><var>9.4</var>    (2) construction of a booster pump station, reservoirs, and related improvements <br/>
<a id="pl.9.5"></a><var>9.5</var>to the water system; and<br/>
<a id="pl.9.6"></a><var>9.6</var>    (3) construction of a building containing a police and fire station and an <br/>
<a id="pl.9.7"></a><var>9.7</var>administrative services facility.<br/>
<a id="pl.9.8"></a><var>9.8</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph <br/>
<a id="pl.9.9"></a><var>9.9</var>(a), it may increase the tax to one percent to fund the purposes under paragraph (a) <br/>
<a id="pl.9.10"></a><var>9.10</var>provided it is approved by the voters at a general election held before December 31, 2012.<br/>
<a id="pl.9.11"></a><var>9.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following compliance by the <br/>
<a id="pl.9.12"></a><var>9.12</var>city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.9.13"></a><var>9.13</var>    Sec. 6. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br/>
<a id="pl.9.14"></a><var>9.14</var>Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:<br/>
<a id="pl.9.15"></a><var>9.15</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br/>
<a id="pl.9.16"></a><var>9.16</var>subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and <br/>
<a id="pl.9.17"></a><var>9.17</var>administering the taxes and to pay for the following projects:<br/>
<a id="pl.9.18"></a><var>9.18</var>    (1) transportation infrastructure improvements including regional highway and <br/>
<a id="pl.9.19"></a><var>9.19</var>airport improvements;<br/>
<a id="pl.9.20"></a><var>9.20</var>    (2) improvements to the civic center complex;<br/>
<a id="pl.9.21"></a><var>9.21</var>    (3) a municipal water, sewer, and storm sewer project necessary to improve regional <br/>
<a id="pl.9.22"></a><var>9.22</var>ground water quality; and<br/>
<a id="pl.9.23"></a><var>9.23</var>    (4) construction of a regional recreation and sports center and other higher education <br/>
<a id="pl.9.24"></a><var>9.24</var>facilities available for both community and student use.<br/>
<a id="pl.9.25"></a><var>9.25</var>    (b) The total amount of capital expenditures or bonds for these projects listed in <br/>
<a id="pl.9.26"></a><var>9.26</var>paragraph (a) that may be paid from the revenues raised from the taxes authorized in this <br/>
<a id="pl.9.27"></a><var>9.27</var>section may not exceed $111,500,000. The total amount of capital expenditures or bonds <br/>
<a id="pl.9.28"></a><var>9.28</var>for the project in clause (4) that may be paid from the revenues raised from the taxes <br/>
<a id="pl.9.29"></a><var>9.29</var>authorized in this section may not exceed $28,000,000.<br/>
<a id="pl.9.30"></a><var>9.30</var>(c) In addition to the projects authorized in paragraph (a) and not subject to the <br/>
<a id="pl.9.31"></a><var>9.31</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br/>
<a id="pl.9.32"></a><var>9.32</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br/>
<a id="pl.9.33"></a><var>9.33</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br/>
<a id="pl.9.34"></a><var>9.34</var>(1) $17,000,000 for capital expenditures and bonds for the following Olmsted <br/>
<a id="pl.9.35"></a><var>9.35</var>County transportation infrastructure improvements:<br/>
<a id="pl.10.1"></a><var>10.1</var>(i) County State Aid Highway 34 reconstruction;<br/>
<a id="pl.10.2"></a><var>10.2</var>(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; <br/>
<a id="pl.10.3"></a><var>10.3</var>(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 <br/>
<a id="pl.10.4"></a><var>10.4</var>interchange;<br/>
<a id="pl.10.5"></a><var>10.5</var>(iv) widening of County State Aid Highway 22 West Circle Drive; and <br/>
<a id="pl.10.6"></a><var>10.6</var>(v) 60th Avenue Northwest corridor preservation;<br/>
<a id="pl.10.7"></a><var>10.7</var>(2) $30,000,000 for city transportation projects including:<br/>
<a id="pl.10.8"></a><var>10.8</var>(i) Trunk Highway 52 and 65th Street interchange;<br/>
<a id="pl.10.9"></a><var>10.9</var>(ii) NW transportation corridor acquisition; <br/>
<a id="pl.10.10"></a><var>10.10</var>(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br/>
<a id="pl.10.11"></a><var>10.11</var>(iv) Trunk Highway 14 and Trunk Highway 63 intersection;<br/>
<a id="pl.10.12"></a><var>10.12</var>(v) Southeast transportation corridor acquisition;<br/>
<a id="pl.10.13"></a><var>10.13</var>(vi) Rochester International Airport expansion; and <br/>
<a id="pl.10.14"></a><var>10.14</var>(vii) a transit operations center bus facility;<br/>
<a id="pl.10.15"></a><var>10.15</var>(3) $14,000,000 for the Minnesota Rochester academic and complementary facilities;<br/>
<a id="pl.10.16"></a><var>10.16</var>(4) $6,500,000 for the Rochester Community Center and Technical College/Winona <br/>
<a id="pl.10.17"></a><var>10.17</var>State University career technical education and science and math facilities;<br/>
<a id="pl.10.18"></a><var>10.18</var>(5) $6,000,000 for the Rochester Community Center and Technical College regional <br/>
<a id="pl.10.19"></a><var>10.19</var>recreation facilities at University Center Rochester;<br/>
<a id="pl.10.20"></a><var>10.20</var>(6) $20,000,000 for the Destination Medical Community Initiative; and<br/>
<a id="pl.10.21"></a><var>10.21</var>(7) $8,000,000 for the regional public safety and 911 dispatch center facilities.<br/>
<a id="pl.10.22"></a><var>10.22</var>(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 <br/>
<a id="pl.10.23"></a><var>10.23</var>and 2 may be used to fund transportation improvements related to a railroad bypass that <br/>
<a id="pl.10.24"></a><var>10.24</var>would divert traffic from the city of Rochester.<br/>
<a id="pl.10.25"></a><var>10.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.10.26"></a><var>10.26</var>    Sec. 7. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by <br/>
<a id="pl.10.27"></a><var>10.27</var>Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.10.29"></a><var>10.29</var>Statutes, chapter 475, to finance the capital expenditure and improvement projects. <br/>
<a id="pl.10.30"></a><var>10.30</var>An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.10.31"></a><var>10.31</var>475.58
         </statute_ref>, may be held in combination with the election to authorize imposition of the tax <br/>
<a id="pl.10.32"></a><var>10.32</var>under subdivision 1. Whether to permit imposition of the tax and issuance of bonds <br/>
<a id="pl.10.33"></a><var>10.33</var>may be posed to the voters as a single question. The question must state that the sales <br/>
<a id="pl.10.34"></a><var>10.34</var>tax revenues are pledged to pay the bonds, but that the bonds are general obligations <br/>
<a id="pl.10.35"></a><var>10.35</var>and will be guaranteed by the city's property taxes. An election to approve up to an <br/>
<a id="pl.11.1"></a><var>11.1</var>additional $40,000,000 of bonds under Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, may be held <br/>
<a id="pl.11.2"></a><var>11.2</var>in combination with the election to authorize extension of the tax under subdivision 5, <br/>
<a id="pl.11.3"></a><var>11.3</var>paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58, <br/>
<a id="pl.11.4"></a><var>11.4</var>in an amount not to exceed $101,500,000 plus an amount equal to the costs of issuance <br/>
<a id="pl.11.5"></a><var>11.5</var>of the bonds, may be held in combination with the election to authorize the extension of <br/>
<a id="pl.11.6"></a><var>11.6</var>the tax under subdivision 5, paragraph (c).<br/>
<a id="pl.11.7"></a><var>11.7</var>    (b) The city may shall enter into an agreement with Olmsted County under which the <br/>
<a id="pl.11.8"></a><var>11.8</var>city and the county agree to jointly undertake and finance certain roadway infrastructure <br/>
<a id="pl.11.9"></a><var>11.9</var>improvements. The agreement may shall provide that the city will make available to the <br/>
<a id="pl.11.10"></a><var>11.10</var>county a portion of the sales tax revenues collected pursuant to the authority granted in <br/>
<a id="pl.11.11"></a><var>11.11</var>this section and the bonding authority provided in this subdivision. The county may, <br/>
<a id="pl.11.12"></a><var>11.12</var>pursuant to the agreement, issue its general obligation bonds in a principal amount not <br/>
<a id="pl.11.13"></a><var>11.13</var>exceeding the amount authorized by its agreement with the city payable primarily from <br/>
<a id="pl.11.14"></a><var>11.14</var>the sales tax revenues from the city under the agreement. The county's bonds must be <br/>
<a id="pl.11.15"></a><var>11.15</var>issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that <br/>
<a id="pl.11.16"></a><var>11.16</var>no election is required for the issuance of the bonds and the bonds are not included in <br/>
<a id="pl.11.17"></a><var>11.17</var>the net debt of the county.<br/>
<a id="pl.11.18"></a><var>11.18</var>    (b) (c) The issuance of bonds under this subdivision is not subject to Minnesota <br/>
<a id="pl.11.19"></a><var>11.19</var>Statutes, section 
         <statute_ref>275.60</statute_ref>.<br/>
<a id="pl.11.20"></a><var>11.20</var>    (c) (d)  The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.11.21"></a><var>11.21</var>city, and the levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay principal of <br/>
<a id="pl.11.22"></a><var>11.22</var>and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.11.23"></a><var>11.23</var>    (e) The aggregate principal amount of bonds, plus the aggregate of the taxes used <br/>
<a id="pl.11.24"></a><var>11.24</var>directly to pay eligible capital expenditures and improvements for projects listed in <br/>
<a id="pl.11.25"></a><var>11.25</var>subdivision 3, paragraph (a), may not exceed $111,500,000, plus an amount equal to the <br/>
<a id="pl.11.26"></a><var>11.26</var>costs related to issuance of the bonds. The aggregate principal amount of bonds plus the <br/>
<a id="pl.11.27"></a><var>11.27</var>aggregate of the taxes used directly to pay the costs of eligible projects under subdivision <br/>
<a id="pl.11.28"></a><var>11.28</var>3, paragraph (c), may not exceed $101,500,000 plus an amount equal to the costs of <br/>
<a id="pl.11.29"></a><var>11.29</var>issuance of the bonds.<br/>
<a id="pl.11.30"></a><var>11.30</var>    (d) (f) The taxes may be pledged to and used for the payment of the bonds and <br/>
<a id="pl.11.31"></a><var>11.31</var>any bonds issued to refund them, only if the bonds and any refunding bonds are general <br/>
<a id="pl.11.32"></a><var>11.32</var>obligations of the city.<br/>
<a id="pl.11.33"></a><var>11.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.11.34"></a><var>11.34</var>    Sec. 8. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by <br/>
<a id="pl.11.35"></a><var>11.35</var>Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:<br/>
<a id="pl.12.1"></a><var>12.1</var>    Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and <br/>
<a id="pl.12.2"></a><var>12.2</var>2 expire at the later of (1) December 31, 2009, or (2) when the city council determines <br/>
<a id="pl.12.3"></a><var>12.3</var>that sufficient funds have been received from the taxes to finance the first $71,500,000 <br/>
<a id="pl.12.4"></a><var>12.4</var>of capital expenditures and bonds for the projects authorized in subdivision 3, including <br/>
<a id="pl.12.5"></a><var>12.5</var>the amount to prepay or retire at maturity the principal, interest, and premium due on any <br/>
<a id="pl.12.6"></a><var>12.6</var>bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed <br/>
<a id="pl.12.7"></a><var>12.7</var>in paragraph (b). Any funds remaining after completion of the project and retirement or <br/>
<a id="pl.12.8"></a><var>12.8</var>redemption of the bonds shall also be used to fund the projects under subdivision 3. The <br/>
<a id="pl.12.9"></a><var>12.9</var>taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so <br/>
<a id="pl.12.10"></a><var>12.10</var>determines by ordinance.<br/>
<a id="pl.12.11"></a><var>12.11</var>    (b) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref> and 
         <statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.12.12"></a><var>12.12</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.12.13"></a><var>12.13</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, <br/>
<a id="pl.12.14"></a><var>12.14</var>if approved by the voters of the city at a special election in 2005 or the general election in <br/>
<a id="pl.12.15"></a><var>12.15</var>2006. The question put to the voters must indicate that an affirmative vote would allow <br/>
<a id="pl.12.16"></a><var>12.16</var>up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 <br/>
<a id="pl.12.17"></a><var>12.17</var>of bonds to be issued above the amount authorized in the June 23, 1998, referendum for <br/>
<a id="pl.12.18"></a><var>12.18</var>the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are <br/>
<a id="pl.12.19"></a><var>12.19</var>extended under this paragraph, the taxes expire when the city council determines that <br/>
<a id="pl.12.20"></a><var>12.20</var>sufficient funds have been received from the taxes to finance the projects and to prepay <br/>
<a id="pl.12.21"></a><var>12.21</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.12.22"></a><var>12.22</var>projects under subdivision 4. Any funds remaining after completion of the project and <br/>
<a id="pl.12.23"></a><var>12.23</var>retirement or redemption of the bonds may be placed in the general fund of the city.<br/>
<a id="pl.12.24"></a><var>12.24</var>(c) Notwithstanding Minnesota Statutes, sections 
<statute_ref>297A.99</statute_ref> and 
<statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.12.25"></a><var>12.25</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.12.26"></a><var>12.26</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city <br/>
<a id="pl.12.27"></a><var>12.27</var>council determines that sufficient funds have been received from the taxes to finance <br/>
<a id="pl.12.28"></a><var>12.28</var>$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3, <br/>
<a id="pl.12.29"></a><var>12.29</var>paragraph (a), plus an amount equal to the costs of issuance of the bonds and including <br/>
<a id="pl.12.30"></a><var>12.30</var>the amount to prepay or retire at maturity the principal, interest, and premiums due on <br/>
<a id="pl.12.31"></a><var>12.31</var>any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the <br/>
<a id="pl.12.32"></a><var>12.32</var>voters of the city at the general election in 2012. If the election to authorize the additional <br/>
<a id="pl.12.33"></a><var>12.33</var>$101,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is <br/>
<a id="pl.12.34"></a><var>12.34</var>placed on the general election ballot in 2012, the city may continue to collect the taxes <br/>
<a id="pl.12.35"></a><var>12.35</var>authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the <br/>
<a id="pl.12.36"></a><var>12.36</var>voters must indicate that an affirmative vote would allow sales tax revenues be raised for <br/>
<a id="pl.13.1"></a><var>13.1</var>an extended period of time and an additional $101,500,000 of bonds plus an amount <br/>
<a id="pl.13.2"></a><var>13.2</var>equal to the costs of issuance of the bonds, to be issued above the amount authorized in <br/>
<a id="pl.13.3"></a><var>13.3</var>the previous elections required under paragraphs (a) and (b) for the projects and amounts <br/>
<a id="pl.13.4"></a><var>13.4</var>specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended <br/>
<a id="pl.13.5"></a><var>13.5</var>under this paragraph, the taxes expire when the city council determines that $101,500,000 <br/>
<a id="pl.13.6"></a><var>13.6</var>has been received from the taxes to finance the projects plus an amount sufficient to <br/>
<a id="pl.13.7"></a><var>13.7</var>prepay or retire at maturity the principal, interest, and premium due on any bonds issued <br/>
<a id="pl.13.8"></a><var>13.8</var>for the projects under subdivision 4, including any bonds issued to refund the bonds. Any <br/>
<a id="pl.13.9"></a><var>13.9</var>funds remaining after completion of the projects and retirement or redemption of the <br/>
<a id="pl.13.10"></a><var>13.10</var>bonds may be placed in the general fund of the city.<br/>
<a id="pl.13.11"></a><var>13.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.13.12"></a><var>13.12</var>governing body of the city of Rochester with Minnesota Statutes, section 645.021, <br/>
<a id="pl.13.13"></a><var>13.13</var>subdivision 3.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.13.14"></a><var>13.14</var>    Sec. 9. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to read:<br/>
<a id="pl.13.15"></a><var>13.15</var>    Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 297A.99, <br/>
<a id="pl.13.16"></a><var>13.16</var>subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be <br/>
<a id="pl.13.17"></a><var>13.17</var>used to pay for the costs of acquisition, construction, improvement, and development of <br/>
<a id="pl.13.18"></a><var>13.18</var>a regional parks, bicycle trails, park land, open space, and pedestrian bridge walkways, <br/>
<a id="pl.13.19"></a><var>13.19</var>as described in the city improvement plan adopted by the city council by resolution on <br/>
<a id="pl.13.20"></a><var>13.20</var>December 12, 2006, and land and buildings for a community and recreation center. The <br/>
<a id="pl.13.21"></a><var>13.21</var>total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund <br/>
<a id="pl.13.22"></a><var>13.22</var>these projects is $12,000,000 plus any associated bond costs.<br/>
<a id="pl.13.23"></a><var>13.23</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.13.24"></a><var>13.24</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.13.25"></a><var>13.25</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.13.26"></a><var>13.26</var>    Sec. 10. <b>CITY OF CLOQUET; TAXES AUTHORIZED.</b><br/>
<a id="pl.13.27"></a><var>13.27</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.13.28"></a><var>13.28</var>297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.13.29"></a><var>13.29</var>charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, or at <br/>
<a id="pl.13.30"></a><var>13.30</var>a special election held for this purpose, the city of Cloquet may impose by ordinance a <br/>
<a id="pl.13.31"></a><var>13.31</var>sales and use tax of up to one-half of one percent for the purposes specified in subdivision <br/>
<a id="pl.13.32"></a><var>13.32</var>3.  Except as provided in this section, the provisions of Minnesota Statutes, section <br/>
<a id="pl.14.1"></a><var>14.1</var>297A.99, govern the imposition, administration, collection, and enforcement of the tax <br/>
<a id="pl.14.2"></a><var>14.2</var>authorized under this subdivision.<br/>
<a id="pl.14.3"></a><var>14.3</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.14.4"></a><var>14.4</var>297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.14.5"></a><var>14.5</var>charter, the city of Cloquet may impose by ordinance, for the purposes specified in <br/>
<a id="pl.14.6"></a><var>14.6</var>subdivision 3, an excise tax of up to $20 per motor vehicle, as defined by ordinance, <br/>
<a id="pl.14.7"></a><var>14.7</var>purchased or acquired from any person engaged within the city in the business of selling <br/>
<a id="pl.14.8"></a><var>14.8</var>motor vehicles at retail.<br/>
<a id="pl.14.9"></a><var>14.9</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.14.10"></a><var>14.10</var>1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the <br/>
<a id="pl.14.11"></a><var>14.11</var>following projects:<br/>
<a id="pl.14.12"></a><var>14.12</var>    (1) $4,500,000 for construction and completion of park improvement projects, <br/>
<a id="pl.14.13"></a><var>14.13</var>including St. Louis River riverfront improvements; Veteran's Park construction and <br/>
<a id="pl.14.14"></a><var>14.14</var>improvements; improvements to the Hilltop Park soccer complex and Braun Park baseball <br/>
<a id="pl.14.15"></a><var>14.15</var>complex; capital equipment and building and grounds improvements at the Pine Valley <br/>
<a id="pl.14.16"></a><var>14.16</var>Park/Pine Valley Hockey Arena/Cloquet Area Recreation Center; and development of <br/>
<a id="pl.14.17"></a><var>14.17</var>pedestrian trails within the city;<br/>
<a id="pl.14.18"></a><var>14.18</var>    (2) $5,800,00 for extension of utilities and the construction of all improvements <br/>
<a id="pl.14.19"></a><var>14.19</var>associated with the development of property adjacent to Highway 33 and Interstate <br/>
<a id="pl.14.20"></a><var>14.20</var>Highway 35, including payment of all debt service on bonds issued for these; and<br/>
<a id="pl.14.21"></a><var>14.21</var>(3) $6,200,000 for engineering and construction of infrastructure improvements, <br/>
<a id="pl.14.22"></a><var>14.22</var>including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as <br/>
<a id="pl.14.23"></a><var>14.23</var>part of the city's comprehensive land use plan.<br/>
<a id="pl.14.24"></a><var>14.24</var>    Authorized expenses include, but are not limited to, acquiring property and paying <br/>
<a id="pl.14.25"></a><var>14.25</var>construction expenses related to these improvements, and paying debt service on bonds or <br/>
<a id="pl.14.26"></a><var>14.26</var>other obligations issued to finance acquisition and construction of these improvements.<br/>
<a id="pl.14.27"></a><var>14.27</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.14.28"></a><var>14.28</var>Statutes, chapter 475, to pay capital and administrative expenses for the improvements <br/>
<a id="pl.14.29"></a><var>14.29</var>described in subdivision 3 in an amount that does not exceed $16,500,000. An election to <br/>
<a id="pl.14.30"></a><var>14.30</var>approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.14.31"></a><var>14.31</var>    (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, <br/>
<a id="pl.14.32"></a><var>14.32</var>sections 275.60 and 275.61.<br/>
<a id="pl.14.33"></a><var>14.33</var>    (c) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.14.34"></a><var>14.34</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br/>
<a id="pl.14.35"></a><var>14.35</var>475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 5. <b>Termination of taxes.</b> The taxes imposed under subdivisions 1 and 2 <br/>
<a id="pl.15.2"></a><var>15.2</var>expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount <br/>
<a id="pl.15.3"></a><var>15.3</var>of revenues received from the taxes to finance the improvements described in subdivision <br/>
<a id="pl.15.4"></a><var>15.4</var>3 first equals or exceeds $16,500,000, plus the additional amount needed to pay the costs <br/>
<a id="pl.15.5"></a><var>15.5</var>related to issuance of bonds under subdivision 4, including interest on the bonds. Any <br/>
<a id="pl.15.6"></a><var>15.6</var>funds remaining after completion of the project and retirement or redemption of the bonds <br/>
<a id="pl.15.7"></a><var>15.7</var>may be placed in the general fund of the city.  The taxes imposed under subdivisions 1 and <br/>
<a id="pl.15.8"></a><var>15.8</var>2 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.15.9"></a><var>15.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.15.10"></a><var>15.10</var>the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes, <br/>
<a id="pl.15.11"></a><var>15.11</var>section 645.021, subdivisions 2 and 3. <br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.15.12"></a><var>15.12</var>    Sec. 11. <b>CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.</b><br/>
<a id="pl.15.13"></a><var>15.13</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.15.14"></a><var>15.14</var>297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.15.15"></a><var>15.15</var>charter, as approved by the voters at the November 2, 2010 general election, the city <br/>
<a id="pl.15.16"></a><var>15.16</var>of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.15.17"></a><var>15.17</var>percent for the purposes specified in subdivision 2.  Except as provided in this section, the <br/>
<a id="pl.15.18"></a><var>15.18</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.15.19"></a><var>15.19</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.15.20"></a><var>15.20</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivision <br/>
<a id="pl.15.21"></a><var>15.21</var>1 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay for <br/>
<a id="pl.15.22"></a><var>15.22</var>all or part of the costs of the acquisition and betterment of a regional community ice arena <br/>
<a id="pl.15.23"></a><var>15.23</var>facility. Authorized expenses include, but are not limited to, acquiring property, predesign, <br/>
<a id="pl.15.24"></a><var>15.24</var>design, and paying construction, furnishing, and equipment costs related to the facility and <br/>
<a id="pl.15.25"></a><var>15.25</var>paying debt service on bonds or other obligations issued by the Fergus Falls Port Authority <br/>
<a id="pl.15.26"></a><var>15.26</var>to finance the facility. The amount of revenues from the tax imposed under subdivision 1 <br/>
<a id="pl.15.27"></a><var>15.27</var>that may be used to finance the facility and any associated costs is limited to $6,600,000.<br/>
<a id="pl.15.28"></a><var>15.28</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under this section expires when <br/>
<a id="pl.15.29"></a><var>15.29</var>the Fergus Falls City Council determines that sufficient funds have been received from <br/>
<a id="pl.15.30"></a><var>15.30</var>the taxes to finance the facility and to prepay or retire at maturity the principal, interest, <br/>
<a id="pl.15.31"></a><var>15.31</var>and premium due on any bonds, including refunding bonds, issued by the Fergus Falls <br/>
<a id="pl.15.32"></a><var>15.32</var>Port Authority for the facility. Any funds remaining after completion of the facility and <br/>
<a id="pl.15.33"></a><var>15.33</var>retirement or redemption of the bonds may be placed in the general fund of the city of <br/>
<a id="pl.15.34"></a><var>15.34</var>Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the <br/>
<a id="pl.15.35"></a><var>15.35</var>city so determines by ordinance.<br/>
<a id="pl.16.1"></a><var>16.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.16.2"></a><var>16.2</var>of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota <br/>
<a id="pl.16.3"></a><var>16.3</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.16.4"></a><var>16.4</var>    Sec. 12. <b>CITY OF HUTCHINSON; TAXES AUTHORIZED.</b><br/>
<a id="pl.16.5"></a><var>16.5</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.16.6"></a><var>16.6</var>477A.016, or any other provision of law, ordinance, or city charter, as approved by <br/>
<a id="pl.16.7"></a><var>16.7</var>the voters at a referendum held at the 2010 general election, the city of Hutchinson <br/>
<a id="pl.16.8"></a><var>16.8</var>may impose by ordinance a sales and use tax of up to one-half of one percent for the <br/>
<a id="pl.16.9"></a><var>16.9</var>purposes specified in subdivision 3. Except as otherwise provided in this section, <br/>
<a id="pl.16.10"></a><var>16.10</var>Minnesota Statutes, section 297A.99, governs the imposition, administration, collection, <br/>
<a id="pl.16.11"></a><var>16.11</var>and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section <br/>
<a id="pl.16.12"></a><var>16.12</var>297A.99, subdivision 1, paragraph (d), does not apply to this section.<br/>
<a id="pl.16.13"></a><var>16.13</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.16.14"></a><var>16.14</var>477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson <br/>
<a id="pl.16.15"></a><var>16.15</var>may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up <br/>
<a id="pl.16.16"></a><var>16.16</var>to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person <br/>
<a id="pl.16.17"></a><var>16.17</var>engaged within the city in the business of selling motor vehicles at retail.<br/>
<a id="pl.16.18"></a><var>16.18</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from the taxes authorized by this <br/>
<a id="pl.16.19"></a><var>16.19</var>section must be used to pay the cost of collecting and administering the tax and to finance <br/>
<a id="pl.16.20"></a><var>16.20</var>the costs of constructing the water treatment facility and renovating the wastewater <br/>
<a id="pl.16.21"></a><var>16.21</var>treatment facility in the city of Hutchinson. Authorized costs include, but are not limited <br/>
<a id="pl.16.22"></a><var>16.22</var>to, construction and engineering costs of the projects and associated bond costs.<br/>
<a id="pl.16.23"></a><var>16.23</var>    Subd. 4. <b>Termination of tax.</b> The taxes authorized under subdivisions 1 and 2 <br/>
<a id="pl.16.24"></a><var>16.24</var>terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or <br/>
<a id="pl.16.25"></a><var>16.25</var>(2) when the Hutchinson City Council determines that the amount of revenues raised is <br/>
<a id="pl.16.26"></a><var>16.26</var>sufficient to pay for the projects under subdivision 3, plus the amount needed to finance <br/>
<a id="pl.16.27"></a><var>16.27</var>the capital and administrative costs for the projects specified in subdivision 3, and to repay <br/>
<a id="pl.16.28"></a><var>16.28</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.16.29"></a><var>16.29</var>projects. Any funds remaining after completion of the projects specified in subdivision <br/>
<a id="pl.16.30"></a><var>16.30</var>3 and retirement or redemption of the associated bonds may be placed in the general <br/>
<a id="pl.16.31"></a><var>16.31</var>fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier <br/>
<a id="pl.16.32"></a><var>16.32</var>time if the city so determines by ordinance. <br/>
<a id="pl.16.33"></a><var>16.33</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.16.34"></a><var>16.34</var>governing body of the city of Hutchinson with Minnesota Statutes, section 645.021, <br/>
<a id="pl.16.35"></a><var>16.35</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.17.1"></a><var>17.1</var>    Sec. 13. <b>CITY OF LANESBORO; SALES AND USE TAX AUTHORIZED.</b><br/>
<a id="pl.17.2"></a><var>17.2</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.17.3"></a><var>17.3</var>sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, <br/>
<a id="pl.17.4"></a><var>17.4</var>or city charter, as approved by the voters at the November 2, 2010, general election, the <br/>
<a id="pl.17.5"></a><var>17.5</var>city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.17.6"></a><var>17.6</var>percent for the purposes specified in subdivision 2. Except as provided in this section, <br/>
<a id="pl.17.7"></a><var>17.7</var>the provisions of Minnesota Statutes, section 297A.99, govern the imposition of the tax <br/>
<a id="pl.17.8"></a><var>17.8</var>authorized under this subdivision.<br/>
<a id="pl.17.9"></a><var>17.9</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized under <br/>
<a id="pl.17.10"></a><var>17.10</var>subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax <br/>
<a id="pl.17.11"></a><var>17.11</var>and to pay for all or a part of the improvements to city streets and utility systems, and the <br/>
<a id="pl.17.12"></a><var>17.12</var>betterment of city municipal buildings consisting of (i) street and utility improvements to <br/>
<a id="pl.17.13"></a><var>17.13</var>Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street, <br/>
<a id="pl.17.14"></a><var>17.14</var>Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250 <br/>
<a id="pl.17.15"></a><var>17.15</var>and 16; (ii) improvements to utility systems consisting of wastewater treatment facility <br/>
<a id="pl.17.16"></a><var>17.16</var>improvements and electric utility improvements to the Lanesboro High Hazard Dam; and <br/>
<a id="pl.17.17"></a><var>17.17</var>(iii) improvements to the Lanesboro community center, library, and city hall, including <br/>
<a id="pl.17.18"></a><var>17.18</var>paying debt service on bonds or other obligations issued to fund these projects under <br/>
<a id="pl.17.19"></a><var>17.19</var>subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be <br/>
<a id="pl.17.20"></a><var>17.20</var>used to fund these projects is $800,000 plus any associated bond costs.<br/>
<a id="pl.17.21"></a><var>17.21</var>    Subd. 3. <b>Bonding authority.</b> The city of Lanesboro may issue bonds under <br/>
<a id="pl.17.22"></a><var>17.22</var>Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the <br/>
<a id="pl.17.23"></a><var>17.23</var>projects authorized in subdivision 2. An election to approve the bonds under Minnesota <br/>
<a id="pl.17.24"></a><var>17.24</var>Statutes, section 475.58, is not required. The issuance of bonds under this subdivision <br/>
<a id="pl.17.25"></a><var>17.25</var>is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not <br/>
<a id="pl.17.26"></a><var>17.26</var>included in computing any debt limitation applicable to the city and the levy of taxes <br/>
<a id="pl.17.27"></a><var>17.27</var>under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is <br/>
<a id="pl.17.28"></a><var>17.28</var>not subject to any levy limitation.<br/>
<a id="pl.17.29"></a><var>17.29</var>The aggregate principal amount of the bonds plus the aggregate of the taxes used <br/>
<a id="pl.17.30"></a><var>17.30</var>directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus <br/>
<a id="pl.17.31"></a><var>17.31</var>an amount equal to the costs related to issuance of the bonds and capitalized interest. <br/>
<a id="pl.17.32"></a><var>17.32</var>The taxes authorized in subdivision 1 may be pledged and used for payments of <br/>
<a id="pl.17.33"></a><var>17.33</var>the bonds and bonds issued to refund them, only if the bonds and any refunding bonds <br/>
<a id="pl.17.34"></a><var>17.34</var>are general obligations of the city.<br/>
<a id="pl.17.35"></a><var>17.35</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed under subdivision 1 expires when <br/>
<a id="pl.17.36"></a><var>17.36</var>the Lanesboro City Council determines that sufficient funds have been raised from the <br/>
<a id="pl.18.1"></a><var>18.1</var>taxes to finance the projects authorized under subdivision 2 and to prepay or retire at <br/>
<a id="pl.18.2"></a><var>18.2</var>maturity the principal, interest, and premium due on any bonds issued under subdivision 3. <br/>
<a id="pl.18.3"></a><var>18.3</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.18.4"></a><var>18.4</var>bonds may be placed in the general fund of the city. The tax imposed under subdivision 1 <br/>
<a id="pl.18.5"></a><var>18.5</var>may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.18.6"></a><var>18.6</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.18.7"></a><var>18.7</var>the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.18.8"></a><var>18.8</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.18.9"></a><var>18.9</var>    Sec. 14. <b>CITY OF MARSHALL; SALES AND USE TAX.</b><br/>
<a id="pl.18.10"></a><var>18.10</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.18.11"></a><var>18.11</var>297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, <br/>
<a id="pl.18.12"></a><var>18.12</var>the city of Marshall, if approved by the voters at a general election held within two <br/>
<a id="pl.18.13"></a><var>18.13</var>years of the date of final enactment of this section, may impose the tax authorized under <br/>
<a id="pl.18.14"></a><var>18.14</var>subdivision 2. Two separate ballot questions must be presented to the voters, one for each <br/>
<a id="pl.18.15"></a><var>18.15</var>of the two facility projects named in subdivision 3.<br/>
<a id="pl.18.16"></a><var>18.16</var>    Subd. 2. <b>Sales and use tax authorized.</b> The city of Marshall may impose by <br/>
<a id="pl.18.17"></a><var>18.17</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified in <br/>
<a id="pl.18.18"></a><var>18.18</var>subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions <br/>
<a id="pl.18.19"></a><var>18.19</var>1 and 2, govern the imposition, administration, collection, and enforcement of the tax <br/>
<a id="pl.18.20"></a><var>18.20</var>authorized under this subdivision.<br/>
<a id="pl.18.21"></a><var>18.21</var>    Subd. 3. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax <br/>
<a id="pl.18.22"></a><var>18.22</var>authorized under subdivision 2 must be used by the city of Marshall to pay the costs of <br/>
<a id="pl.18.23"></a><var>18.23</var>collecting and administering the sales and use tax and to pay all or part of the costs of the <br/>
<a id="pl.18.24"></a><var>18.24</var>new and existing facilities of the Minnesota Emergency Response and Industry Training <br/>
<a id="pl.18.25"></a><var>18.25</var>Center and all or part of the costs of the new facilities of the Southwest Minnesota <br/>
<a id="pl.18.26"></a><var>18.26</var>Regional Amateur Sports Center. Authorized expenses include, but are not limited to, <br/>
<a id="pl.18.27"></a><var>18.27</var>acquiring property, predesign, design, and paying construction, furnishing, and equipment <br/>
<a id="pl.18.28"></a><var>18.28</var>costs related to these facilities and paying debt service on bonds or other obligations issued <br/>
<a id="pl.18.29"></a><var>18.29</var>by the city of Marshall under subdivision 4 to finance the capital costs of these facilities.<br/>
<a id="pl.18.30"></a><var>18.30</var>    Subd. 4. <b>Bonds.</b> (a) If the imposition of a sales and use tax is approved by the voters, <br/>
<a id="pl.18.31"></a><var>18.31</var>the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all <br/>
<a id="pl.18.32"></a><var>18.32</var>or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds <br/>
<a id="pl.18.33"></a><var>18.33</var>to refund bonds previously issued. The aggregate principal amount of bonds issued under <br/>
<a id="pl.18.34"></a><var>18.34</var>this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment <br/>
<a id="pl.19.1"></a><var>19.1</var>of the costs of issuing the bonds. The bonds may be paid from or secured by any funds <br/>
<a id="pl.19.2"></a><var>19.2</var>available to the city of Marshall, including the tax authorized under subdivision 2. <br/>
<a id="pl.19.3"></a><var>19.3</var>(b) The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.19.4"></a><var>19.4</var>city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay <br/>
<a id="pl.19.5"></a><var>19.5</var>principal and interest on the bonds, is not subject to any levy limitation. A separate <br/>
<a id="pl.19.6"></a><var>19.6</var>election to approve the bonds under Minnesota Statutes, section 475.58, is not required. <br/>
<a id="pl.19.7"></a><var>19.7</var>    Subd. 5. <b>Termination of taxes.</b> The tax imposed under subdivision 2 expires at the <br/>
<a id="pl.19.8"></a><var>19.8</var>earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines <br/>
<a id="pl.19.9"></a><var>19.9</var>that the amount of revenues received from the tax to pay for the capital and administrative <br/>
<a id="pl.19.10"></a><var>19.10</var>costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to <br/>
<a id="pl.19.11"></a><var>19.11</var>be spent for the facilities plus the additional amount needed to pay the costs related to <br/>
<a id="pl.19.12"></a><var>19.12</var>issuance of the bonds under subdivision 4, including interest on the bonds. Any funds <br/>
<a id="pl.19.13"></a><var>19.13</var>remaining after payment of all such costs and retirement or redemption of the bonds shall <br/>
<a id="pl.19.14"></a><var>19.14</var>be placed in the general fund of the city. The tax imposed under subdivision 2 may expire <br/>
<a id="pl.19.15"></a><var>19.15</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.19.16"></a><var>19.16</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.19.17"></a><var>19.17</var>governing body of the city of Marshall with Minnesota Statutes, section 645.021, <br/>
<a id="pl.19.18"></a><var>19.18</var>subdivision 3.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.19.19"></a><var>19.19</var>    Sec. 15. <b>CITY OF MEDFORD; SALES AND USE TAX.</b><br/>
<a id="pl.19.20"></a><var>19.20</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.19.21"></a><var>19.21</var>sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, <br/>
<a id="pl.19.22"></a><var>19.22</var>or city charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, <br/>
<a id="pl.19.23"></a><var>19.23</var>at the next general election, the city of Medford may impose by ordinance a sales and use <br/>
<a id="pl.19.24"></a><var>19.24</var>tax of one-half of one percent for the purposes specified in subdivision 2. Except as <br/>
<a id="pl.19.25"></a><var>19.25</var>otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, <br/>
<a id="pl.19.26"></a><var>19.26</var>govern the imposition, administration, collection, and enforcement of the tax authorized <br/>
<a id="pl.19.27"></a><var>19.27</var>under this subdivision.<br/>
<a id="pl.19.28"></a><var>19.28</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section must <br/>
<a id="pl.19.29"></a><var>19.29</var>be used by the city of Medford to pay the costs of collecting and administering the tax <br/>
<a id="pl.19.30"></a><var>19.30</var>and to repay loans received from the Minnesota Public Facilities Authority since 2007 <br/>
<a id="pl.19.31"></a><var>19.31</var>that were used to finance $4,200,000 of improvements to the city's water and wastewater <br/>
<a id="pl.19.32"></a><var>19.32</var>systems.<br/>
<a id="pl.19.33"></a><var>19.33</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under this section expires at the <br/>
<a id="pl.19.34"></a><var>19.34</var>earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Medford <br/>
<a id="pl.19.35"></a><var>19.35</var>City Council determines that the amount of revenues received from the tax equals or <br/>
<a id="pl.20.1"></a><var>20.1</var>exceeds the sum of loans made to the city by the Minnesota Public Facilities Authority <br/>
<a id="pl.20.2"></a><var>20.2</var>as described in subdivision 2, including interest on the loans. Any funds remaining <br/>
<a id="pl.20.3"></a><var>20.3</var>after completion of the repayment of the loans may be placed in the general fund of the <br/>
<a id="pl.20.4"></a><var>20.4</var>city. The tax imposed under subdivision 1 may expire at an earlier time if the city so <br/>
<a id="pl.20.5"></a><var>20.5</var>determines by ordinance.<br/>
<a id="pl.20.6"></a><var>20.6</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.20.7"></a><var>20.7</var>governing body of the city of Medford with Minnesota Statutes, section 645.021, <br/>
<a id="pl.20.8"></a><var>20.8</var>subdivision 3.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.20.9"></a><var>20.9</var>    Sec. 16. <b>REPORT ON THE USE OF ZIP CODES IN COLLECTING AND </b><br/>
<a id="pl.20.10"></a><var>20.10</var><b>REMITTING LOCAL SALES TAXES.</b><br/>
<a id="pl.20.11"></a><var>20.11</var>    Subdivision 1. <b>Report to the legislature.</b> By March 1, 2012, the commissioner <br/>
<a id="pl.20.12"></a><var>20.12</var>of revenue shall provide a report to the chairs and ranking minority members of the <br/>
<a id="pl.20.13"></a><var>20.13</var>legislative committees with jurisdiction over local sales taxes reporting on the current use <br/>
<a id="pl.20.14"></a><var>20.14</var>of zip codes for the purposes of collecting and remitting local sales taxes, problems with <br/>
<a id="pl.20.15"></a><var>20.15</var>the current system, and suggestions for improvements.<br/>
<a id="pl.20.16"></a><var>20.16</var>    Subd. 2. <b>Contents of the report.</b> The report shall include the following information:<br/>
<a id="pl.20.17"></a><var>20.17</var>(1) the current status of the department's development of a system that allows <br/>
<a id="pl.20.18"></a><var>20.18</var>vendors to identify the correct local sales tax based on a street address and the five-digit <br/>
<a id="pl.20.19"></a><var>20.19</var>zip code, as described in Minnesota Statutes, section 297A.99, subdivision 10, including a <br/>
<a id="pl.20.20"></a><var>20.20</var>list of cities and townships that impose a local sales tax or do not impose a local sales tax <br/>
<a id="pl.20.21"></a><var>20.21</var>but share a zip code with a jurisdiction in which a local sales tax is imposed for which the <br/>
<a id="pl.20.22"></a><var>20.22</var>system has not been developed;<br/>
<a id="pl.20.23"></a><var>20.23</var>(2) a priority list and timeline for developing the required system outlined in <br/>
<a id="pl.20.24"></a><var>20.24</var>Minnesota Statutes, section 297A.99, subdivision 10, for the cities and townships <br/>
<a id="pl.20.25"></a><var>20.25</var>identified in clause (1);<br/>
<a id="pl.20.26"></a><var>20.26</var>(3) the compliance by businesses with the requirement in Minnesota Statutes, section <br/>
<a id="pl.20.27"></a><var>20.27</var>297A.99, subdivision 10, that the tax be collected on the lowest combined rate within the <br/>
<a id="pl.20.28"></a><var>20.28</var>zip code for cities and townships identified in clause (1); <br/>
<a id="pl.20.29"></a><var>20.29</var>(4) the accuracy of the crediting and remittance of local sales taxes to the appropriate <br/>
<a id="pl.20.30"></a><var>20.30</var>taxing jurisdiction when two contiguous cities with different local sales tax authority <br/>
<a id="pl.20.31"></a><var>20.31</var>share a zip code; and <br/>
<a id="pl.20.32"></a><var>20.32</var>(5) recommendations for administrative or statutory changes to improve the accurate <br/>
<a id="pl.20.33"></a><var>20.33</var>collection and allocation of local sales tax revenues collected by the Department of <br/>
<a id="pl.20.34"></a><var>20.34</var>Revenue.<br/>
<a id="pl.21.1"></a><var>21.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.21.4"></a><var>21.4</var>    Section 1. Minnesota Statutes 2010, section 272.02, is amended by adding a <br/>
<a id="pl.21.5"></a><var>21.5</var>subdivision to read:<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 95. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.21.7"></a><var>21.7</var>subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other <br/>
<a id="pl.21.8"></a><var>21.8</var>personal property that is part of a multiple reciprocating engine electric generation facility <br/>
<a id="pl.21.9"></a><var>21.9</var>that adds more than 20 and less than 30 megawatts of installed capacity at a site where <br/>
<a id="pl.21.10"></a><var>21.10</var>there is presently more than ten megawatts and fewer than 15 megawatts of installed <br/>
<a id="pl.21.11"></a><var>21.11</var>capacity and that meets the requirements of this subdivision is exempt from taxation and <br/>
<a id="pl.21.12"></a><var>21.12</var>from payments in lieu of taxation. At the time of construction, the facility must:<br/>
<a id="pl.21.13"></a><var>21.13</var>(1) be designed to utilize natural gas as a primary fuel;<br/>
<a id="pl.21.14"></a><var>21.14</var>(2) be owned and operated by a municipal power agency as defined in section <br/>
<a id="pl.21.15"></a><var>21.15</var>453.52, subdivision 8;<br/>
<a id="pl.21.16"></a><var>21.16</var>(3) be located within one mile of an existing natural gas pipeline;<br/>
<a id="pl.21.17"></a><var>21.17</var>(4) be designed to have black start capability and to furnish emergency backup <br/>
<a id="pl.21.18"></a><var>21.18</var>power service to the city in which it is located;<br/>
<a id="pl.21.19"></a><var>21.19</var>(5) satisfy a resource deficiency identified in an approved integrated resource plan <br/>
<a id="pl.21.20"></a><var>21.20</var>filed under section 216B.2422; and <br/>
<a id="pl.21.21"></a><var>21.21</var>(6) have received, by resolution, the approval of the governing bodies of the city <br/>
<a id="pl.21.22"></a><var>21.22</var>and county in which it is located for the exemption of personal property provided by <br/>
<a id="pl.21.23"></a><var>21.23</var>this subdivision.<br/>
<a id="pl.21.24"></a><var>21.24</var>(b) Construction of the facility must be commenced after December 31, 2011, and <br/>
<a id="pl.21.25"></a><var>21.25</var>before January 1, 2015. Property eligible for this exemption does not include (i) electric <br/>
<a id="pl.21.26"></a><var>21.26</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.21.27"></a><var>21.27</var>to the property or the facility; or (ii) property located on the site on the enactment date <br/>
<a id="pl.21.28"></a><var>21.28</var>of this subdivision.<br/>
<a id="pl.21.29"></a><var>21.29</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2012, taxes <br/>
<a id="pl.21.30"></a><var>21.30</var>payable in 2013, and thereafter.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.21.31"></a><var>21.31</var>    Sec. 2. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:<br/>
<a id="pl.21.32"></a><var>21.32</var>    Subdivision 1. <b>Notice.</b> Any county assessor or city assessor having the powers of a <br/>
<a id="pl.21.33"></a><var>21.33</var>county assessor, valuing or classifying taxable real property shall in each year notify those <br/>
<a id="pl.22.1"></a><var>22.1</var>persons whose property is to be included on the assessment roll that year if the person's <br/>
<a id="pl.22.2"></a><var>22.2</var>address is known to the assessor, otherwise the occupant of the property. The notice shall <br/>
<a id="pl.22.3"></a><var>22.3</var>be in writing and shall be sent by ordinary mail at least ten days before the meeting of <br/>
<a id="pl.22.4"></a><var>22.4</var>the local board of appeal and equalization under section 
         <statute_ref>274.01</statute_ref> or the review process <br/>
<a id="pl.22.5"></a><var>22.5</var>established under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>. Upon written request by the owner of the <br/>
<a id="pl.22.6"></a><var>22.6</var>property, the assessor may send the notice in electronic form or by electronic mail instead <br/>
<a id="pl.22.7"></a><var>22.7</var>of on paper or by ordinary mail. It shall contain: (1) the market value for the current and <br/>
<a id="pl.22.8"></a><var>22.8</var>prior assessment, (2) the limited market value under section 
<statute_ref>273.11, subdivision 1a</statute_ref>, for <br/>
<a id="pl.22.9"></a><var>22.9</var>the current and prior assessment, (3) the qualifying amount of any improvements under <br/>
<a id="pl.22.10"></a><var>22.10</var>section 
         <statute_ref>273.11, subdivision 16</statute_ref>, for the current assessment, (4) (3) the market value subject <br/>
<a id="pl.22.11"></a><var>22.11</var>to taxation after subtracting the amount of any qualifying improvements for the current <br/>
<a id="pl.22.12"></a><var>22.12</var>assessment, (5) (4) the classification of the property for the current and prior assessment, <br/>
<a id="pl.22.13"></a><var>22.13</var>(6) a note that if the property is homestead and at least 45 years old, improvements made <br/>
<a id="pl.22.14"></a><var>22.14</var>to the property may be eligible for a valuation exclusion under section 
<statute_ref>273.11, subdivision <br/>
<a id="pl.22.15"></a><var>22.15</var>16
</statute_ref>, (7) (5) the assessor's office address, and (8) (6) the dates, places, and times set for the <br/>
<a id="pl.22.16"></a><var>22.16</var>meetings of the local board of appeal and equalization, the review process established <br/>
<a id="pl.22.17"></a><var>22.17</var>under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>, and the county board of appeal and equalization. If <br/>
<a id="pl.22.18"></a><var>22.18</var>the classification of the property has changed between the current and prior assessments, a <br/>
<a id="pl.22.19"></a><var>22.19</var>specific note to that effect shall be prominently listed on the statement. The commissioner <br/>
<a id="pl.22.20"></a><var>22.20</var>of revenue shall specify the form of the notice. The assessor shall attach to the assessment <br/>
<a id="pl.22.21"></a><var>22.21</var>roll a statement that the notices required by this section have been mailed. Any assessor <br/>
<a id="pl.22.22"></a><var>22.22</var>who is not provided sufficient funds from the assessor's governing body to provide such <br/>
<a id="pl.22.23"></a><var>22.23</var>notices, may make application to the commissioner of revenue to finance such notices. <br/>
<a id="pl.22.24"></a><var>22.24</var>The commissioner of revenue shall conduct an investigation and, if satisfied that the <br/>
<a id="pl.22.25"></a><var>22.25</var>assessor does not have the necessary funds, issue a certification to the commissioner <br/>
<a id="pl.22.26"></a><var>22.26</var>of management and budget of the amount necessary to provide such notices. The <br/>
<a id="pl.22.27"></a><var>22.27</var>commissioner of management and budget shall issue a warrant for such amount and shall <br/>
<a id="pl.22.28"></a><var>22.28</var>deduct such amount from any state payment to such county or municipality. The necessary <br/>
<a id="pl.22.29"></a><var>22.29</var>funds to make such payments are hereby appropriated. Failure to receive the notice shall in <br/>
<a id="pl.22.30"></a><var>22.30</var>no way affect the validity of the assessment, the resulting tax, the procedures of any board <br/>
<a id="pl.22.31"></a><var>22.31</var>of review or equalization, or the enforcement of delinquent taxes by statutory means.<br/>
<a id="pl.22.32"></a><var>22.32</var><b>EFFECTIVE DATE.</b>This section is effective for notifications for taxes payable in <br/>
<a id="pl.22.33"></a><var>22.33</var>2013 and thereafter.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.22.34"></a><var>22.34</var>    Sec. 3. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.23.1"></a><var>23.1</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.23.2"></a><var>23.2</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.23.3"></a><var>23.3</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.23.4"></a><var>23.4</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.23.5"></a><var>23.5</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.23.6"></a><var>23.6</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.23.7"></a><var>23.7</var>market value of class 4a property has a class rate of 1.25 percent.<br/>
<a id="pl.23.8"></a><var>23.8</var>    (b) Class 4b includes:<br/>
<a id="pl.23.9"></a><var>23.9</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.23.10"></a><var>23.10</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.23.11"></a><var>23.11</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.23.12"></a><var>23.12</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.23.13"></a><var>23.13</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.23.14"></a><var>23.14</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.23.15"></a><var>23.15</var>33.<br/>
<a id="pl.23.16"></a><var>23.16</var>    The market value of class 4b property has a class rate of 1.25 percent.<br/>
<a id="pl.23.17"></a><var>23.17</var>    (c) Class 4bb includes:<br/>
<a id="pl.23.18"></a><var>23.18</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.23.19"></a><var>23.19</var>residential recreational property; and<br/>
<a id="pl.23.20"></a><var>23.20</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.23.21"></a><var>23.21</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br/>
<a id="pl.23.22"></a><var>23.22</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22.<br/>
<a id="pl.23.23"></a><var>23.23</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.23.24"></a><var>23.24</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.23.25"></a><var>23.25</var>owner does not qualify for class 4bb.<br/>
<a id="pl.23.26"></a><var>23.26</var>    (d) Class 4c property includes:<br/>
<a id="pl.23.27"></a><var>23.27</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property <br/>
<a id="pl.23.28"></a><var>23.28</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.23.29"></a><var>23.29</var>purposes, including real and personal property devoted to temporary and seasonal <br/>
<a id="pl.23.30"></a><var>23.30</var>residential occupancy for recreation purposes and not devoted to commercial purposes for <br/>
<a id="pl.23.31"></a><var>23.31</var>not more than 250 days in the year preceding the year of assessment. For purposes of this <br/>
<a id="pl.23.32"></a><var>23.32</var>clause, property is devoted to a commercial purpose on a specific day if any portion of the <br/>
<a id="pl.23.33"></a><var>23.33</var>property is used for residential occupancy, and a fee is charged for residential occupancy. <br/>
<a id="pl.23.34"></a><var>23.34</var>Class 4c property under this clause must contain three or more rental units. A "rental unit" <br/>
<a id="pl.23.35"></a><var>23.35</var>is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site <br/>
<a id="pl.23.36"></a><var>23.36</var>equipped with water and electrical hookups for recreational vehicles. Class 4c property <br/>
<a id="pl.24.1"></a><var>24.1</var>under this clause must provide recreational activities such as renting ice fishing houses, <br/>
<a id="pl.24.2"></a><var>24.2</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.24.3"></a><var>24.3</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping pad <br/>
<a id="pl.24.4"></a><var>24.4</var>offered for rent by a property that otherwise qualifies for class 4c under this clause is also <br/>
<a id="pl.24.5"></a><var>24.5</var>class 4c under this clause regardless of the term of the rental agreement, as long as the use <br/>
<a id="pl.24.6"></a><var>24.6</var>of the camping pad does not exceed 250 days. In order for a property to be classified as <br/>
<a id="pl.24.7"></a><var>24.7</var>class 4c, seasonal residential recreational for commercial purposes under this clause, either <br/>
<a id="pl.24.8"></a><var>24.8</var>(i) the business located on the property must provide recreational activities, at least 40 <br/>
<a id="pl.24.9"></a><var>24.9</var>percent of the annual gross lodging receipts related to the property must be from business <br/>
<a id="pl.24.10"></a><var>24.10</var>conducted during 90 consecutive days,  and either (i) (A) at least 60 percent of all paid <br/>
<a id="pl.24.11"></a><var>24.11</var>bookings by lodging guests during the year must be for periods of at least two consecutive <br/>
<a id="pl.24.12"></a><var>24.12</var>nights; or (ii) (B) at least 20 percent of the annual gross receipts must be from charges <br/>
<a id="pl.24.13"></a><var>24.13</var>for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski <br/>
<a id="pl.24.14"></a><var>24.14</var>equipment, or charges for marina services, launch services, and guide services, or the sale <br/>
<a id="pl.24.15"></a><var>24.15</var>of bait and fishing tackle providing recreational activities, or (ii) the business must contain <br/>
<a id="pl.24.16"></a><var>24.16</var>20 or fewer rental units, and must be located in a township or a city with a population of <br/>
<a id="pl.24.17"></a><var>24.17</var>2,500 or less located outside the metropolitan area, as defined under section 473.121, <br/>
<a id="pl.24.18"></a><var>24.18</var>subdivision 2, that contains a portion of a state trail administered by the Department of <br/>
<a id="pl.24.19"></a><var>24.19</var>Natural Resources. For purposes of this determination item (i)(A), a paid booking of <br/>
<a id="pl.24.20"></a><var>24.20</var>five or more nights shall be counted as two bookings. Class 4c property classified under <br/>
<a id="pl.24.21"></a><var>24.21</var>this clause also includes commercial use real property used exclusively for recreational <br/>
<a id="pl.24.22"></a><var>24.22</var>purposes in conjunction with other class 4c property classified under this clause and <br/>
<a id="pl.24.23"></a><var>24.23</var>devoted to temporary and seasonal residential occupancy for recreational purposes, up to a <br/>
<a id="pl.24.24"></a><var>24.24</var>total of two acres, provided the property is not devoted to commercial recreational use for <br/>
<a id="pl.24.25"></a><var>24.25</var>more than 250 days in the year preceding the year of assessment and is located within two <br/>
<a id="pl.24.26"></a><var>24.26</var>miles of the class 4c property with which it is used. Owners of real and personal property <br/>
<a id="pl.24.27"></a><var>24.27</var>devoted to temporary and seasonal residential occupancy for recreation purposes and all <br/>
<a id="pl.24.28"></a><var>24.28</var>or a portion of which was devoted to commercial purposes for not more than 250 days in <br/>
<a id="pl.24.29"></a><var>24.29</var>the year preceding the year of assessment desiring classification as class 4c, In order for a <br/>
<a id="pl.24.30"></a><var>24.30</var>property to qualify for classification under this clause, the owner must submit a declaration <br/>
<a id="pl.24.31"></a><var>24.31</var>to the assessor designating the cabins or units occupied for 250 days or less in the year <br/>
<a id="pl.24.32"></a><var>24.32</var>preceding the year of assessment by January 15 of the assessment year. Those cabins or <br/>
<a id="pl.24.33"></a><var>24.33</var>units and a proportionate share of the land on which they are located must be designated <br/>
<a id="pl.24.34"></a><var>24.34</var>class 4c under this clause as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.24.35"></a><var>24.35</var>a proportionate share of the land on which they are located will be designated as class 3a. <br/>
<a id="pl.24.36"></a><var>24.36</var>The owner of property desiring designation as class 4c property under this clause must <br/>
<a id="pl.25.1"></a><var>25.1</var>provide guest registers or other records demonstrating that the units for which class 4c <br/>
<a id="pl.25.2"></a><var>25.2</var>designation is sought were not occupied for more than 250 days in the year preceding the <br/>
<a id="pl.25.3"></a><var>25.3</var>assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, <br/>
<a id="pl.25.4"></a><var>25.4</var>(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility <br/>
<a id="pl.25.5"></a><var>25.5</var>operated on a commercial basis not directly related to temporary and seasonal residential <br/>
<a id="pl.25.6"></a><var>25.6</var>occupancy for recreation purposes does not qualify for class 4c. For the purposes of this <br/>
<a id="pl.25.7"></a><var>25.7</var>paragraph, "recreational activities" means renting ice fishing houses, boats and motors, <br/>
<a id="pl.25.8"></a><var>25.8</var>snowmobiles, downhill or cross-country ski equipment; providing marina services, launch <br/>
<a id="pl.25.9"></a><var>25.9</var>services, or guide services; or selling bait and fishing tackle;<br/>
<a id="pl.25.10"></a><var>25.10</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.25.11"></a><var>25.11</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.25.12"></a><var>25.12</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.25.13"></a><var>25.13</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.25.14"></a><var>25.14</var>municipal courses; and<br/>
<a id="pl.25.15"></a><var>25.15</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.25.16"></a><var>25.16</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.25.17"></a><var>25.17</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.25.18"></a><var>25.18</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.25.19"></a><var>25.19</var>nonprofit community service oriented organization and not used for residential purposes <br/>
<a id="pl.25.20"></a><var>25.20</var>on either a temporary or permanent basis, provided that:<br/>
<a id="pl.25.21"></a><var>25.21</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.25.22"></a><var>25.22</var>in the calendar year preceding the year of assessment; or<br/>
<a id="pl.25.23"></a><var>25.23</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.25.24"></a><var>25.24</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.25.25"></a><var>25.25</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.25.26"></a><var>25.26</var>size of the facility.<br/>
<a id="pl.25.27"></a><var>25.27</var>    For purposes of this clause,<br/>
<a id="pl.25.28"></a><var>25.28</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.25.29"></a><var>25.29</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.25.30"></a><var>25.30</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.25.31"></a><var>25.31</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.25.32"></a><var>25.32</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.25.33"></a><var>25.33</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.25.34"></a><var>25.34</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.25.35"></a><var>25.35</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.25.36"></a><var>25.36</var>Revenue Code; and<br/>
<a id="pl.26.1"></a><var>26.1</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.26.2"></a><var>26.2</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.26.3"></a><var>26.3</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.26.4"></a><var>26.4</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.26.5"></a><var>26.5</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.26.6"></a><var>26.6</var>for-profit enterprise on the premises.<br/>
<a id="pl.26.7"></a><var>26.7</var>Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use <br/>
<a id="pl.26.8"></a><var>26.8</var>of the property for social events open exclusively to members and their guests for periods <br/>
<a id="pl.26.9"></a><var>26.9</var>of less than 24 hours, when an admission is not charged nor any revenues are received by <br/>
<a id="pl.26.10"></a><var>26.10</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.26.11"></a><var>26.11</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.26.12"></a><var>26.12</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.26.13"></a><var>26.13</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.26.14"></a><var>26.14</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.26.15"></a><var>26.15</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.26.16"></a><var>26.16</var>application form and instructions;<br/>
<a id="pl.26.17"></a><var>26.17</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.26.18"></a><var>26.18</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.26.19"></a><var>26.19</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.26.20"></a><var>26.20</var>miles of the border of a college campus;<br/>
<a id="pl.26.21"></a><var>26.21</var>    (5) (i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br/>
<a id="pl.26.22"></a><var>26.22</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br/>
<a id="pl.26.23"></a><var>26.23</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br/>
<a id="pl.26.24"></a><var>26.24</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br/>
<a id="pl.26.25"></a><var>26.25</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.26.26"></a><var>26.26</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.26.27"></a><var>26.27</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.26.28"></a><var>26.28</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.26.29"></a><var>26.29</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.26.30"></a><var>26.30</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.26.31"></a><var>26.31</var>Airports Commission, or group thereof; and<br/>
<a id="pl.26.32"></a><var>26.32</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.26.33"></a><var>26.33</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.26.34"></a><var>26.34</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.26.35"></a><var>26.35</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.26.36"></a><var>26.36</var>within 60 days of the sale;<br/>
<a id="pl.27.1"></a><var>27.1</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.27.2"></a><var>27.2</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.27.3"></a><var>27.3</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.27.4"></a><var>27.4</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.27.5"></a><var>27.5</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.27.6"></a><var>27.6</var>performed at the hangar; and<br/>
<a id="pl.27.7"></a><var>27.7</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.27.8"></a><var>27.8</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.27.9"></a><var>27.9</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.27.10"></a><var>27.10</var>of 14 or fewer days;<br/>
<a id="pl.27.11"></a><var>27.11</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.27.12"></a><var>27.12</var>in the basic room rate;<br/>
<a id="pl.27.13"></a><var>27.13</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.27.14"></a><var>27.14</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.27.15"></a><var>27.15</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.27.16"></a><var>27.16</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.27.17"></a><var>27.17</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.27.18"></a><var>27.18</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.27.19"></a><var>27.19</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.27.20"></a><var>27.20</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.27.21"></a><var>27.21</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.27.22"></a><var>27.22</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.27.23"></a><var>27.23</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.27.24"></a><var>27.24</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.27.25"></a><var>27.25</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.27.26"></a><var>27.26</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.27.27"></a><var>27.27</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.27.28"></a><var>27.28</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.27.29"></a><var>27.29</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.27.30"></a><var>27.30</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.27.31"></a><var>27.31</var>the preceding assessment year; and<br/>
<a id="pl.27.32"></a><var>27.32</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br/>
<a id="pl.27.33"></a><var>27.33</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br/>
<a id="pl.27.34"></a><var>27.34</var>the public and devoted to recreational use for marina services. The marina owner must <br/>
<a id="pl.27.35"></a><var>27.35</var>annually provide evidence to the assessor that it provides services, including lake or river <br/>
<a id="pl.27.36"></a><var>27.36</var>access to the public by means of an access ramp or other facility that is either located on <br/>
<a id="pl.28.1"></a><var>28.1</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br/>
<a id="pl.28.2"></a><var>28.2</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br/>
<a id="pl.28.3"></a><var>28.3</var>in conjunction with a marina for marina services, including but not limited to buildings <br/>
<a id="pl.28.4"></a><var>28.4</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br/>
<a id="pl.28.5"></a><var>28.5</var>tackle, are classified as class 3a property; and<br/>
<a id="pl.28.6"></a><var>28.6</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.28.7"></a><var>28.7</var>residential occupancy for recreation purposes.<br/>
<a id="pl.28.8"></a><var>28.8</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) <br/>
<a id="pl.28.9"></a><var>28.9</var>each parcel of noncommercial seasonal residential recreational property not used for <br/>
<a id="pl.28.10"></a><var>28.10</var>commercial purposes under clause (12)  has the same class rates as class 4bb property, (ii) <br/>
<a id="pl.28.11"></a><var>28.11</var>manufactured home parks assessed under clause (5), item (i), have the same class rate <br/>
<a id="pl.28.12"></a><var>28.12</var>as class 4b property, and the market value of manufactured home parks assessed under <br/>
<a id="pl.28.13"></a><var>28.13</var>clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent <br/>
<a id="pl.28.14"></a><var>28.14</var>of the lots in the park are occupied by shareholders in the cooperative corporation or <br/>
<a id="pl.28.15"></a><var>28.15</var>association and a class rate of one percent if 50 percent or less of the lots are so occupied, <br/>
<a id="pl.28.16"></a><var>28.16</var>(iii) commercial-use seasonal residential recreational property and marina recreational <br/>
<a id="pl.28.17"></a><var>28.17</var>land as described in clause (11), has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.28.18"></a><var>28.18</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.28.19"></a><var>28.19</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.28.20"></a><var>28.20</var>property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) <br/>
<a id="pl.28.21"></a><var>28.21</var>that portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.28.22"></a><var>28.22</var>has a class rate of 1.25 percent.<br/>
<a id="pl.28.23"></a><var>28.23</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.28.24"></a><var>28.24</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.28.25"></a><var>28.25</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.28.26"></a><var>28.26</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.28.27"></a><var>28.27</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.28.28"></a><var>28.28</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.28.29"></a><var>28.29</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.28.30"></a><var>28.30</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.28.31"></a><var>28.31</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.28.32"></a><var>28.32</var>    Class 4d property has a class rate of 0.75 percent.<br/>
<a id="pl.28.33"></a><var>28.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.28.34"></a><var>28.34</var>thereafter.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.28.35"></a><var>28.35</var>    Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.29.1"></a><var>29.1</var>    Subd. 34. <b>Homestead of disabled veteran</b><b> or family caregiver</b><b>.</b> (a) All or a portion <br/>
<a id="pl.29.2"></a><var>29.2</var>of the market value of property owned by a veteran or by the veteran and the and serving <br/>
<a id="pl.29.3"></a><var>29.3</var>as the veteran's spouse qualifying for homestead classification under subdivision 22 or 23, <br/>
<a id="pl.29.4"></a><var>29.4</var>is excluded in determining the property's taxable market value if it serves as the homestead <br/>
<a id="pl.29.5"></a><var>29.5</var>of a military veteran, as defined in section 
<statute_ref>197.447</statute_ref>, who has a service-connected disability <br/>
<a id="pl.29.6"></a><var>29.6</var>of 70 percent or more as certified by the United States Department of Veterans Affairs. <br/>
<a id="pl.29.7"></a><var>29.7</var>To qualify for exclusion under this subdivision, the veteran must have been honorably <br/>
<a id="pl.29.8"></a><var>29.8</var>discharged from the United States armed forces, as indicated by United States Government <br/>
<a id="pl.29.9"></a><var>29.9</var>Form DD214 or other official military discharge papers, and must be certified by the <br/>
<a id="pl.29.10"></a><var>29.10</var>United States Veterans Administration as having a service-connected disability.<br/>
<a id="pl.29.11"></a><var>29.11</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.29.12"></a><var>29.12</var>excluded, except as provided in clause (2); and<br/>
<a id="pl.29.13"></a><var>29.13</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.29.14"></a><var>29.14</var>excluded.<br/>
<a id="pl.29.15"></a><var>29.15</var>    (c) If:<br/>
<a id="pl.29.16"></a><var>29.16</var>(1) a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.29.17"></a><var>29.17</var>clause (2),; or<br/>
<a id="pl.29.18"></a><var>29.18</var>(2) a member of any branch or unit of the United States armed forces who dies due <br/>
<a id="pl.29.19"></a><var>29.19</var>to a service-connected cause while serving honorably in active service, as indicated on <br/>
<a id="pl.29.20"></a><var>29.20</var>United States Government Form DD1300 or DD2064; <br/>
<a id="pl.29.21"></a><var>29.21</var>predeceases the veteran's or service member's spouse, and if upon the death of the veteran <br/>
<a id="pl.29.22"></a><var>29.22</var>or service member the spouse holds the legal or beneficial title to the homestead and <br/>
<a id="pl.29.23"></a><var>29.23</var>permanently resides there, the exclusion shall carry over to the benefit of the veteran's <br/>
<a id="pl.29.24"></a><var>29.24</var>spouse for one additional assessment year the current taxes payable year and for five <br/>
<a id="pl.29.25"></a><var>29.25</var>additional taxes payable years or until such time as the spouse remarries, or sells, transfers, <br/>
<a id="pl.29.26"></a><var>29.26</var>or otherwise disposes of the property, whichever comes first.<br/>
<a id="pl.29.27"></a><var>29.27</var>(d) A surviving spouse qualifying for a market valuation exclusion under paragraph <br/>
<a id="pl.29.28"></a><var>29.28</var>(c), clause (2), is eligible for the same level of benefit as that described in paragraph <br/>
<a id="pl.29.29"></a><var>29.29</var>(b), clause (2).<br/>
<a id="pl.29.30"></a><var>29.30</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own <br/>
<a id="pl.29.31"></a><var>29.31</var>property classified as homestead in the state of Minnesota, then the homestead of the <br/>
<a id="pl.29.32"></a><var>29.32</var>veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran <br/>
<a id="pl.29.33"></a><var>29.33</var>would otherwise qualify for under paragraph (b).<br/>
<a id="pl.29.34"></a><var>29.34</var>    (d) (f) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.29.35"></a><var>29.35</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.29.36"></a><var>29.36</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.30.1"></a><var>30.1</var>    (e) (g) A property qualifying for a valuation exclusion under this subdivision is <br/>
<a id="pl.30.2"></a><var>30.2</var>not eligible for the credit under section 
         <statute_ref>273.1384, subdivision 1</statute_ref>, or classification under <br/>
<a id="pl.30.3"></a><var>30.3</var>subdivision 22, paragraph (b).<br/>
<a id="pl.30.4"></a><var>30.4</var>    (f) (h) To qualify for a valuation exclusion under this subdivision a property owner <br/>
<a id="pl.30.5"></a><var>30.5</var>must apply to the assessor by July 1 of each assessment year, except that an annual <br/>
<a id="pl.30.6"></a><var>30.6</var>reapplication is not required once a property has been accepted for a valuation exclusion <br/>
<a id="pl.30.7"></a><var>30.7</var>under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and <br/>
<a id="pl.30.8"></a><var>30.8</var>the property continues to qualify until there is a change in ownership.<br/>
<a id="pl.30.9"></a><var>30.9</var>(i) A first-time application by a qualifying spouse for the market value exclusion <br/>
<a id="pl.30.10"></a><var>30.10</var>under paragraph (c), clause (2), may be made at any time during the year of or year <br/>
<a id="pl.30.11"></a><var>30.11</var>following the death of the veteran or service member who predeceased the spouse.<br/>
<a id="pl.30.12"></a><var>30.12</var>(j) For purposes of this subdivision:<br/>
<a id="pl.30.13"></a><var>30.13</var>(1) "active service" has the meaning given in section 190.05;<br/>
<a id="pl.30.14"></a><var>30.14</var>(2) "own" means that the person's name is present as an owner on the property deed;<br/>
<a id="pl.30.15"></a><var>30.15</var>(3) "primary family caregiver" means a person who is approved by the secretary of <br/>
<a id="pl.30.16"></a><var>30.16</var>the United States Department of Veterans Affairs for assistance as the primary provider <br/>
<a id="pl.30.17"></a><var>30.17</var>of personal care services for an eligible veteran under the Program of Comprehensive <br/>
<a id="pl.30.18"></a><var>30.18</var>Assistance for Family Caregivers, as established by Public Law 111–163 and codified as <br/>
<a id="pl.30.19"></a><var>30.19</var>United States Code, title 38, section 1720G, as amended by Congress at any time; and<br/>
<a id="pl.30.20"></a><var>30.20</var>(4) "veteran" has the meaning given the term in section 197.447.<br/>
<a id="pl.30.21"></a><var>30.21</var>(k) The purpose of this provision of law providing a level of homestead property tax <br/>
<a id="pl.30.22"></a><var>30.22</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving <br/>
<a id="pl.30.23"></a><var>30.23</var>spouses is to help ease the burdens of war for those among our state's citizens who bear <br/>
<a id="pl.30.24"></a><var>30.24</var>those burdens most heavily.<br/>
<a id="pl.30.25"></a><var>30.25</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2011 and <br/>
<a id="pl.30.26"></a><var>30.26</var>thereafter, for taxes payable in 2012 and thereafter.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.30.27"></a><var>30.27</var>    Sec. 5. Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:<br/>
<a id="pl.30.28"></a><var>30.28</var>    Subd. 3. <b>Seasonal residential recreational tax capacity.</b> For the purposes of this <br/>
<a id="pl.30.29"></a><var>30.29</var>section, "seasonal residential recreational tax capacity" means the tax capacity of tier III <br/>
<a id="pl.30.30"></a><var>30.30</var>of class 1c under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and all class 4c(1) and, 4c(3)(ii), and <br/>
<a id="pl.30.31"></a><var>30.31</var>4c(12) property under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, except that the first $76,000 of <br/>
<a id="pl.30.32"></a><var>30.32</var>market value of each noncommercial class 4c(1) 4c(12) property has a tax capacity for this <br/>
<a id="pl.30.33"></a><var>30.33</var>purpose equal to 40 percent of its tax capacity under section 
         <statute_ref>273.13</statute_ref>.<br/>
<a id="pl.31.1"></a><var>31.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.31.2"></a><var>31.2</var>thereafter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.31.3"></a><var>31.3</var>    Sec. 6. Minnesota Statutes 2010, section 275.066, is amended to read:<br/>
<a id="pl.31.4"></a><var>31.4</var><b>275.066 SPECIAL TAXING DISTRICTS; DEFINITION.</b><br/>
<a id="pl.31.5"></a><var>31.5</var>    For the purposes of property taxation and property tax state aids, the term "special <br/>
<a id="pl.31.6"></a><var>31.6</var>taxing districts" includes the following entities:<br/>
<a id="pl.31.7"></a><var>31.7</var>    (1) watershed districts under chapter 103D;<br/>
<a id="pl.31.8"></a><var>31.8</var>    (2) sanitary districts under sections 
         <statute_ref>115.18</statute_ref> to 
         <statute_ref>115.37</statute_ref>;<br/>
<a id="pl.31.9"></a><var>31.9</var>    (3) regional sanitary sewer districts under sections 
         <statute_ref>115.61</statute_ref> to 
         <statute_ref>115.67</statute_ref>;<br/>
<a id="pl.31.10"></a><var>31.10</var>    (4) regional public library districts under section 
         <statute_ref>134.201</statute_ref>;<br/>
<a id="pl.31.11"></a><var>31.11</var>    (5) park districts under chapter 398;<br/>
<a id="pl.31.12"></a><var>31.12</var>    (6) regional railroad authorities under chapter 398A;<br/>
<a id="pl.31.13"></a><var>31.13</var>    (7) hospital districts under sections 
         <statute_ref>447.31</statute_ref> to 
         <statute_ref>447.38</statute_ref>;<br/>
<a id="pl.31.14"></a><var>31.14</var>    (8) (7) St. Cloud Metropolitan Transit Commission under sections 
         <statute_ref>458A.01</statute_ref> to <br/>
<statute_ref><a id="pl.31.15"></a><var>31.15</var>458A.15
         </statute_ref>;<br/>
<a id="pl.31.16"></a><var>31.16</var>    (9) (8) Duluth Transit Authority under sections 
         <statute_ref>458A.21</statute_ref> to 
         <statute_ref>458A.37</statute_ref>;<br/>
<a id="pl.31.17"></a><var>31.17</var>    (10) (9) regional development commissions under sections 
         <statute_ref>462.381</statute_ref> to 
         <statute_ref>462.398</statute_ref>;<br/>
<a id="pl.31.18"></a><var>31.18</var>    (11) (10) housing and redevelopment authorities under sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>;<br/>
<a id="pl.31.19"></a><var>31.19</var>    (12) (11) port authorities under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>;<br/>
<a id="pl.31.20"></a><var>31.20</var>    (13) (12) economic development authorities under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.1081</statute_ref>;<br/>
<a id="pl.31.21"></a><var>31.21</var>    (14) (13) Metropolitan Council under sections 
         <statute_ref>473.123</statute_ref> to 
         <statute_ref>473.549</statute_ref>;<br/>
<a id="pl.31.22"></a><var>31.22</var>    (15) (14) Metropolitan Airports Commission under sections 
         <statute_ref>473.601</statute_ref> to 
         <statute_ref>473.680</statute_ref>;<br/>
<a id="pl.31.23"></a><var>31.23</var>    (16) (15) Metropolitan Mosquito Control Commission under sections 
         <statute_ref>473.701</statute_ref> to <br/>
<statute_ref><a id="pl.31.24"></a><var>31.24</var>473.716
         </statute_ref>;<br/>
<a id="pl.31.25"></a><var>31.25</var>    (17) (16) Morrison County Rural Development Financing Authority under Laws <br/>
<a id="pl.31.26"></a><var>31.26</var>1982, chapter 437, section 1;<br/>
<a id="pl.31.27"></a><var>31.27</var>    (18) (17) Croft Historical Park District under Laws 1984, chapter 502, article 13, <br/>
<a id="pl.31.28"></a><var>31.28</var>section 6;<br/>
<a id="pl.31.29"></a><var>31.29</var>    (19) (18) East Lake County Medical Clinic District under Laws 1989, chapter 211, <br/>
<a id="pl.31.30"></a><var>31.30</var>sections 1 to 6;<br/>
<a id="pl.31.31"></a><var>31.31</var>    (20) (19) Floodwood Area Ambulance District under Laws 1993, chapter 375, <br/>
<a id="pl.31.32"></a><var>31.32</var>article 5, section 39;<br/>
<a id="pl.31.33"></a><var>31.33</var>    (21) (20) Middle Mississippi River Watershed Management Organization under <br/>
<a id="pl.31.34"></a><var>31.34</var>sections 
         <statute_ref>103B.211</statute_ref> and 
         <statute_ref>103B.241</statute_ref>;<br/>
<a id="pl.31.35"></a><var>31.35</var>    (22) (21) emergency medical services special taxing districts under section 144F.01;<br/>
<a id="pl.32.1"></a><var>32.1</var>    (23) (22) a county levying under the authority of section 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, <br/>
<a id="pl.32.2"></a><var>32.2</var>or 
         <statute_ref>103B.251</statute_ref>;<br/>
<a id="pl.32.3"></a><var>32.3</var>    (24) (23) Southern St. Louis County Special Taxing District; Chris Jensen Nursing <br/>
<a id="pl.32.4"></a><var>32.4</var>Home under Laws 2003, First Special Session chapter 21, article 4, section 12;<br/>
<a id="pl.32.5"></a><var>32.5</var>    (25) (24) an airport authority created under section 
         <statute_ref>360.0426</statute_ref>; and<br/>
<a id="pl.32.6"></a><var>32.6</var>    (26) (25) any other political subdivision of the state of Minnesota, excluding <br/>
<a id="pl.32.7"></a><var>32.7</var>counties, school districts, cities, and towns, that has the power to adopt and certify a <br/>
<a id="pl.32.8"></a><var>32.8</var>property tax levy to the county auditor, as determined by the commissioner of revenue.<br/>
<a id="pl.32.9"></a><var>32.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.32.10"></a><var>32.10</var>thereafter.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.32.11"></a><var>32.11</var>    Sec. 7. <b>[275.761] MAINTENANCE OF EFFORT REQUIREMENTS </b><br/>
<a id="pl.32.12"></a><var>32.12</var><b>SUSPENDED.</b><br/>
<a id="pl.32.13"></a><var>32.13</var>(a) Notwithstanding any law to the contrary and except as provided in paragraphs <br/>
<a id="pl.32.14"></a><var>32.14</var>(b) and (c), all maintenance of effort requirements for counties, including but not limited <br/>
<a id="pl.32.15"></a><var>32.15</var>to those under sections 116L.872, 134.34, 245.4835, 245.4932, 245.714, 256F.10, and <br/>
<a id="pl.32.16"></a><var>32.16</var>256F.13, are suspended.<br/>
<a id="pl.32.17"></a><var>32.17</var>(b) This section does not permit a county to suspend compliance with maintenance <br/>
<a id="pl.32.18"></a><var>32.18</var>of effort requirements to the extent that the suspension  would:<br/>
<a id="pl.32.19"></a><var>32.19</var>(1) require the state to expend additional money or incur additional costs; or<br/>
<a id="pl.32.20"></a><var>32.20</var>(2) cause a reduction in the receipt by the state or the county of federal funds.<br/>
<a id="pl.32.21"></a><var>32.21</var>(c) The commissioner of management and budget may determine the maintenance <br/>
<a id="pl.32.22"></a><var>32.22</var>of effort requirements that are not permitted, in whole or in part, to be suspended under <br/>
<a id="pl.32.23"></a><var>32.23</var>paragraph (b). The commissioner shall publish these determinations on the department's <br/>
<a id="pl.32.24"></a><var>32.24</var>Web site and no county may suspend compliance with a maintenance of effort requirement <br/>
<a id="pl.32.25"></a><var>32.25</var>that the commissioner determines is not subject to suspension.<br/>
<a id="pl.32.26"></a><var>32.26</var><b>EFFECTIVE DATE.</b>This section is effective for maintenance of effort <br/>
<a id="pl.32.27"></a><var>32.27</var>requirements in calendar years 2012 and 2013.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.32.28"></a><var>32.28</var>    Sec. 8. Minnesota Statutes 2010, section 279.01, subdivision 1, is amended to read:<br/>
<a id="pl.32.29"></a><var>32.29</var>    Subdivision 1. <b>Due dates; penalties.</b> Except as provided in subdivision 3 or 4, on <br/>
<a id="pl.32.30"></a><var>32.30</var>May 16 or 21 days after the postmark date on the envelope containing the property tax <br/>
<a id="pl.32.31"></a><var>32.31</var>statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid <br/>
<a id="pl.32.32"></a><var>32.32</var>taxes on real estate on the current lists in the hands of the county treasurer. The penalty is <br/>
<a id="pl.32.33"></a><var>32.33</var>at a rate of two percent on homestead property until May 31 and four percent on June 1. <br/>
<a id="pl.33.1"></a><var>33.1</var>The penalty on nonhomestead property is at a rate of four percent until May 31 and eight <br/>
<a id="pl.33.2"></a><var>33.2</var>percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after <br/>
<a id="pl.33.3"></a><var>33.3</var>the postmark date on the envelope containing the property tax statements, whichever is <br/>
<a id="pl.33.4"></a><var>33.4</var>later, on commercial use real property used for seasonal residential recreational purposes <br/>
<a id="pl.33.5"></a><var>33.5</var>and classified as class 1c or 4c, and on other commercial use real property classified as <br/>
<a id="pl.33.6"></a><var>33.6</var>class 3a, provided that over 60 percent of the gross income earned by the enterprise on the <br/>
<a id="pl.33.7"></a><var>33.7</var>class 3a property is earned during the months of May, June, July, and August. In order <br/>
<a id="pl.33.8"></a><var>33.8</var>for the first half of the tax due on class 3a property to be paid after May 15 and before <br/>
<a id="pl.33.9"></a><var>33.9</var>June 1, or 21 days after the postmark date on the envelope containing the property tax <br/>
<a id="pl.33.10"></a><var>33.10</var>statement, whichever is later, without penalty, the owner of the property must attach <br/>
<a id="pl.33.11"></a><var>33.11</var>an affidavit to the payment attesting to compliance with the income provision of this <br/>
<a id="pl.33.12"></a><var>33.12</var>subdivision. Thereafter, for both homestead and nonhomestead property, on the first day <br/>
<a id="pl.33.13"></a><var>33.13</var>of each month beginning July 1, up to and including October 1 following, an additional <br/>
<a id="pl.33.14"></a><var>33.14</var>penalty of one percent for each month accrues and is charged on all such unpaid taxes <br/>
<a id="pl.33.15"></a><var>33.15</var>provided that if the due date was extended beyond May 15 as the result of any delay in <br/>
<a id="pl.33.16"></a><var>33.16</var>mailing property tax statements no additional penalty shall accrue if the tax is paid by the <br/>
<a id="pl.33.17"></a><var>33.17</var>extended due date. If the tax is not paid by the extended due date, then all penalties that <br/>
<a id="pl.33.18"></a><var>33.18</var>would have accrued if the due date had been May 15 shall be charged. When the taxes <br/>
<a id="pl.33.19"></a><var>33.19</var>against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or <br/>
<a id="pl.33.20"></a><var>33.20</var>21 days after the postmark date on the envelope containing the property tax statement, <br/>
<a id="pl.33.21"></a><var>33.21</var>whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be <br/>
<a id="pl.33.22"></a><var>33.22</var>paid at any time prior to October 16 following, without penalty; but, if not so paid, then <br/>
<a id="pl.33.23"></a><var>33.23</var>a penalty of two percent accrues thereon for homestead property and a penalty of four <br/>
<a id="pl.33.24"></a><var>33.24</var>percent on nonhomestead property. Thereafter, for homestead property, on the first day <br/>
<a id="pl.33.25"></a><var>33.25</var>of November an additional penalty of four two percent accrues and on the first day of <br/>
<a id="pl.33.26"></a><var>33.26</var>December following, an additional penalty of two percent accrues and is charged on all <br/>
<a id="pl.33.27"></a><var>33.27</var>such unpaid taxes. Thereafter, for nonhomestead property, on the first day of November <br/>
<a id="pl.33.28"></a><var>33.28</var>and December following, an additional penalty of four percent for each month accrues <br/>
<a id="pl.33.29"></a><var>33.29</var>and is charged on all such unpaid taxes. If one-half of such taxes are not paid prior to <br/>
<a id="pl.33.30"></a><var>33.30</var>May 16 or 21 days after the postmark date on the envelope containing the property tax <br/>
<a id="pl.33.31"></a><var>33.31</var>statement, whichever is later, the same may be paid at any time prior to October 16, with <br/>
<a id="pl.33.32"></a><var>33.32</var>accrued penalties to the date of payment added, and thereupon no penalty attaches to the <br/>
<a id="pl.33.33"></a><var>33.33</var>remaining one-half until October 16 following.<br/>
<a id="pl.33.34"></a><var>33.34</var>    This section applies to payment of personal property taxes assessed against <br/>
<a id="pl.33.35"></a><var>33.35</var>improvements to leased property, except as provided by section 
         <statute_ref>277.01, subdivision 3</statute_ref>.<br/>
<a id="pl.34.1"></a><var>34.1</var>    A county may provide by resolution that in the case of a property owner that has <br/>
<a id="pl.34.2"></a><var>34.2</var>multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in <br/>
<a id="pl.34.3"></a><var>34.3</var>installments as provided in this subdivision.<br/>
<a id="pl.34.4"></a><var>34.4</var>    The county treasurer may accept payments of more or less than the exact amount of <br/>
<a id="pl.34.5"></a><var>34.5</var>a tax installment due. Payments must be applied first to the oldest installment that is due <br/>
<a id="pl.34.6"></a><var>34.6</var>but which has not been fully paid. If the accepted payment is less than the amount due, <br/>
<a id="pl.34.7"></a><var>34.7</var>payments must be applied first to the penalty accrued for the year or the installment being <br/>
<a id="pl.34.8"></a><var>34.8</var>paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum <br/>
<a id="pl.34.9"></a><var>34.9</var>payment required as a condition for filing an appeal under section 
         <statute_ref>278.03</statute_ref> or any other law, <br/>
<a id="pl.34.10"></a><var>34.10</var>nor does it affect the order of payment of delinquent taxes under section 
         <statute_ref>280.39</statute_ref>.<br/>
<a id="pl.34.11"></a><var>34.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.34.12"></a><var>34.12</var>thereafter.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.34.13"></a><var>34.13</var>    Sec. 9. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:<br/>
<a id="pl.34.14"></a><var>34.14</var>    Subd. 8. <b>Taxation.</b> Before deciding to exercise the power to tax, the authority shall <br/>
<a id="pl.34.15"></a><var>34.15</var>give six weeks' published notice in all municipalities in the region. If a number of voters <br/>
<a id="pl.34.16"></a><var>34.16</var>in the region equal to five percent of those who voted for candidates for governor at the <br/>
<a id="pl.34.17"></a><var>34.17</var>last gubernatorial election present a petition within nine weeks of the first published notice <br/>
<a id="pl.34.18"></a><var>34.18</var>to the secretary of state requesting that the matter be submitted to popular vote, it shall be <br/>
<a id="pl.34.19"></a><var>34.19</var>submitted at the next general election. The question prepared shall be:<br/>
<a id="pl.34.20"></a><var>34.20</var>"Shall the regional rail authority have the power to impose a property tax?<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="12.5"/>
<col width="12.5"/>
<tr>
<td><a id="pl.34.21"></a><var>34.21</var><br/>
</td>
<td></td>
<td>Yes <br/>
<span>
                     							.....
                     						</span></td>
<td></td>
</tr>
<tr>
<td><a id="pl.34.22"></a><var>34.22</var><br/>
</td>
<td></td>
<td>No <span>
                     							.....
                     						</span>"<br/>
</td>
<td></td>
</tr>
</table><a id="pl.34.23"></a><var>34.23</var>If a majority of those voting on the question approve or if no petition is presented <br/>
<a id="pl.34.24"></a><var>34.24</var>within the prescribed time the authority may levy a tax at any annual rate not exceeding <br/>
<a id="pl.34.25"></a><var>34.25</var>0.04835 percent of market value of all taxable property situated within the municipality <br/>
<a id="pl.34.26"></a><var>34.26</var>or municipalities named in its organization resolution. Its recording officer shall file, All <br/>
<a id="pl.34.27"></a><var>34.27</var>taxes imposed for the support of the authority must be imposed by the county board and <br/>
<a id="pl.34.28"></a><var>34.28</var>included in the county budget for all purposes, including levy limits, if any. If the authority <br/>
<a id="pl.34.29"></a><var>34.29</var>consists of more than one county, the authority must determine the total levy request and <br/>
<a id="pl.34.30"></a><var>34.30</var>apportion it among the member counties as provided in the joint resolution organizing the <br/>
<a id="pl.34.31"></a><var>34.31</var>authority. On or before September 15, in the office of the county auditor of each county <br/>
<a id="pl.34.32"></a><var>34.32</var>in which territory under the jurisdiction of the authority is located a certified copy of the <br/>
<a id="pl.34.33"></a><var>34.33</var>board of commissioners' resolution levying the tax, and each county auditor shall assess <br/>
<a id="pl.34.34"></a><var>34.34</var>and extend upon the tax rolls of each municipality named in the organization resolution the <br/>
<a id="pl.34.35"></a><var>34.35</var>portion of the tax that bears the same ratio to the whole amount that the net tax capacity of <br/>
<a id="pl.35.1"></a><var>35.1</var>taxable property in that municipality bears to the net tax capacity of taxable property in <br/>
<a id="pl.35.2"></a><var>35.2</var>all municipalities named in the organization resolution. Collections of the tax shall be <br/>
<a id="pl.35.3"></a><var>35.3</var>remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, <br/>
<a id="pl.35.4"></a><var>35.4</var>the amount levied for light rail transit purposes under this subdivision shall not exceed 75 <br/>
<a id="pl.35.5"></a><var>35.5</var>percent of the amount levied in 1990 for light rail transit purposes under this subdivision.<br/>
<a id="pl.35.6"></a><var>35.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.35.7"></a><var>35.7</var>thereafter.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.35.8"></a><var>35.8</var>    Sec. 10. Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:<br/>
<a id="pl.35.9"></a><var>35.9</var>    Subd. 2. <b>Security.</b> Bonds may be made payable exclusively from the revenues from <br/>
<a id="pl.35.10"></a><var>35.10</var>one or more projects, or from one or more revenue producing contracts, or from the <br/>
<a id="pl.35.11"></a><var>35.11</var>authority's revenues generally, including but not limited to specified taxes which the <br/>
<a id="pl.35.12"></a><var>35.12</var>county may levy on behalf of the authority may levy or which a particular municipality <br/>
<a id="pl.35.13"></a><var>35.13</var>may agree to levy for a specified purpose, and may be additionally secured by a pledge <br/>
<a id="pl.35.14"></a><var>35.14</var>of any grant, subsidy, or contribution from any public agency, including but not limited <br/>
<a id="pl.35.15"></a><var>35.15</var>to a participating municipality, or any income or revenues from any source. They may <br/>
<a id="pl.35.16"></a><var>35.16</var>be secured by a mortgage or deed of trust of the whole or any part of the property of the <br/>
<a id="pl.35.17"></a><var>35.17</var>authority. They shall be payable solely from the revenues, funds, and property pledged or <br/>
<a id="pl.35.18"></a><var>35.18</var>mortgaged for their payment. No commissioner, officer, employee, agent, or trustee of the <br/>
<a id="pl.35.19"></a><var>35.19</var>authority shall be liable personally on its bonds or be subject to any personal liability or <br/>
<a id="pl.35.20"></a><var>35.20</var>accountability by reason of their issuance. Neither the state nor Only a county or other <br/>
<a id="pl.35.21"></a><var>35.21</var>municipality except the authority may pledge its faith and credit or taxing power or shall <br/>
<a id="pl.35.22"></a><var>35.22</var>be obligated in any manner for the payment of the bonds or interest on them, except as <br/>
<a id="pl.35.23"></a><var>35.23</var>specifically provided by agreement under section 
         <statute_ref>398A.06</statute_ref>; but nothing herein shall affect <br/>
<a id="pl.35.24"></a><var>35.24</var>the obligation of the state or municipality to perform any contract made by it with the <br/>
<a id="pl.35.25"></a><var>35.25</var>authority, and when the authority's rights under a contract with the state or a municipality <br/>
<a id="pl.35.26"></a><var>35.26</var>are pledged by the authority for the security of its bonds, the holders or a bond trustee <br/>
<a id="pl.35.27"></a><var>35.27</var>may enforce the rights as a third-party beneficiary. All bonds shall be negotiable within <br/>
<a id="pl.35.28"></a><var>35.28</var>the meaning and for the purposes of the Uniform Commercial Code, subject only to any <br/>
<a id="pl.35.29"></a><var>35.29</var>registration requirement. In the case of bonds issued by a regional rail authority prior to <br/>
<a id="pl.35.30"></a><var>35.30</var>June 1, 2011, to which the authority's levy was pledged, the county must levy whatever <br/>
<a id="pl.35.31"></a><var>35.31</var>tax is necessary to fulfill the authority's pledge under the bonds.<br/>
<a id="pl.35.32"></a><var>35.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.35.33"></a><var>35.33</var>thereafter.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 11. <b> REPEALER.</b><br/>
<a id="pl.36.2"></a><var>36.2</var>Minnesota Statutes 2010, section 279.01, subdivision 4, is repealed.<br/>
<a id="pl.36.3"></a><var>36.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.36.4"></a><var>36.4</var>thereafter.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.36.7"></a><var>36.7</var>    Section 1. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to <br/>
<a id="pl.36.8"></a><var>36.8</var>read:<br/>
<a id="pl.36.9"></a><var>36.9</var>    Subdivision 1. <b>Applicability; amount.</b> (a) The commissioner shall annually make a <br/>
<a id="pl.36.10"></a><var>36.10</var>payment to each county having public hunting areas and game refuges. Money to make <br/>
<a id="pl.36.11"></a><var>36.11</var>the payments is annually appropriated for that purpose from the general fund. Except as <br/>
<a id="pl.36.12"></a><var>36.12</var>provided in paragraph (b), this section does not apply to state trust fund land and other <br/>
<a id="pl.36.13"></a><var>36.13</var>state land not purchased for game refuge or public hunting purposes. Except as provided <br/>
<a id="pl.36.14"></a><var>36.14</var>in paragraph (b), the payment shall be the greatest of:<br/>
<a id="pl.36.15"></a><var>36.15</var>(1) 35 29.75 percent of the gross receipts from all special use permits and leases of <br/>
<a id="pl.36.16"></a><var>36.16</var>land acquired for public hunting and game refuges;<br/>
<a id="pl.36.17"></a><var>36.17</var>(2) 50 42.5 cents per acre on land purchased actually used for public hunting or <br/>
<a id="pl.36.18"></a><var>36.18</var>game refuges; or<br/>
<a id="pl.36.19"></a><var>36.19</var>(3) three-fourths of one .6375 percent of the appraised value of purchased land <br/>
<a id="pl.36.20"></a><var>36.20</var>actually used for public hunting and game refuges.<br/>
<a id="pl.36.21"></a><var>36.21</var>(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as <br/>
<a id="pl.36.22"></a><var>36.22</var>determined under section 
         <statute_ref>477A.12, subdivision 1</statute_ref>, paragraph (a), clause (1), multiplied <br/>
<a id="pl.36.23"></a><var>36.23</var>by the number of acres of land in the county that are owned by another state agency for <br/>
<a id="pl.36.24"></a><var>36.24</var>military purposes and designated as a game refuge under section 
         <statute_ref>97A.085</statute_ref>.<br/>
<a id="pl.36.25"></a><var>36.25</var>(c) The payment must be reduced by the amount paid under subdivision 3 for <br/>
<a id="pl.36.26"></a><var>36.26</var>croplands managed for wild geese.<br/>
<a id="pl.36.27"></a><var>36.27</var>(d) The appraised value is the purchase price for five years after acquisition. <br/>
<a id="pl.36.28"></a><var>36.28</var>The appraised value shall be determined by the county assessor every five years after <br/>
<a id="pl.36.29"></a><var>36.29</var>acquisition.<br/>
<a id="pl.36.30"></a><var>36.30</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.36.31"></a><var>36.31</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.36.32"></a><var>36.32</var>    Sec. 2. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:<br/>
<a id="pl.37.1"></a><var>37.1</var>    Subd. 3. <b>Goose management croplands.</b> (a) The commissioner shall make a <br/>
<a id="pl.37.2"></a><var>37.2</var>payment on July 1 of each year to each county where the state owns more than 1,000 acres <br/>
<a id="pl.37.3"></a><var>37.3</var>of crop land, for wild goose management purposes. The payment shall be equal to 85 <br/>
<a id="pl.37.4"></a><var>37.4</var>percent of the taxes assessed on comparable, privately owned, adjacent land. Money to <br/>
<a id="pl.37.5"></a><var>37.5</var>make the payments is annually appropriated for that purpose from the general fund. The <br/>
<a id="pl.37.6"></a><var>37.6</var>county treasurer shall allocate and distribute the payment as provided in subdivision 2.<br/>
<a id="pl.37.7"></a><var>37.7</var>(b) The land used for goose management under this subdivision is exempt from <br/>
<a id="pl.37.8"></a><var>37.8</var>taxation as provided in sections 
         <statute_ref>272.01</statute_ref> and 
         <statute_ref>273.19</statute_ref>.<br/>
<a id="pl.37.9"></a><var>37.9</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.37.10"></a><var>37.10</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.37.11"></a><var>37.11</var>    Sec. 3. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:<br/>
<a id="pl.37.12"></a><var>37.12</var>    Subd. 7. <b>Refund.</b> "Refund" means an individual income tax refund or political <br/>
<a id="pl.37.13"></a><var>37.13</var>contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to <br/>
<a id="pl.37.14"></a><var>37.14</var>chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.<br/>
<a id="pl.37.15"></a><var>37.15</var>For purposes of this chapter, lottery prizes, as set forth in section 
         <statute_ref>349A.08, <br/>
<a id="pl.37.16"></a><var>37.16</var>subdivision 8
         </statute_ref>, and amounts granted to persons by the legislature on the recommendation <br/>
<a id="pl.37.17"></a><var>37.17</var>of the joint senate-house of representatives Subcommittee on Claims shall be treated <br/>
<a id="pl.37.18"></a><var>37.18</var>as refunds.<br/>
<a id="pl.37.19"></a><var>37.19</var>In the case of a joint property tax refund payable to spouses under chapter 290A, <br/>
<a id="pl.37.20"></a><var>37.20</var>the refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.37.21"></a><var>37.21</var>refund that equals each spouse's proportion of the total income determined under section <br/>
<statute_ref><a id="pl.37.22"></a><var>37.22</var>290A.03, subdivision 3
         </statute_ref>. In the case of a joint income tax refund under chapter 289A, the <br/>
<a id="pl.37.23"></a><var>37.23</var>refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.37.24"></a><var>37.24</var>refund that equals each spouse's proportion of the total taxable income determined under <br/>
<a id="pl.37.25"></a><var>37.25</var>section 
         <statute_ref>290.01, subdivision 29</statute_ref>. The commissioner shall remit the entire refund to the <br/>
<a id="pl.37.26"></a><var>37.26</var>claimant agency, which shall, upon the request of the spouse who does not owe the debt, <br/>
<a id="pl.37.27"></a><var>37.27</var>determine the amount of the refund belonging to that spouse and refund the amount to <br/>
<a id="pl.37.28"></a><var>37.28</var>that spouse. For court fines, fees, and surcharges and court-ordered restitution under <br/>
<a id="pl.37.29"></a><var>37.29</var>section 
         <statute_ref>611A.04, subdivision 2</statute_ref>, the notice provided by the commissioner of revenue under <br/>
<a id="pl.37.30"></a><var>37.30</var>section 
         <statute_ref>270A.07, subdivision 2</statute_ref>, paragraph (b), serves as the appropriate legal notice <br/>
<a id="pl.37.31"></a><var>37.31</var>to the spouse who does not owe the debt.<br/>
<a id="pl.37.32"></a><var>37.32</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.37.33"></a><var>37.33</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.38.1"></a><var>38.1</var>    Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:<br/>
<a id="pl.38.2"></a><var>38.2</var>    Subd. 21b. <b>Tax capacity.</b> (a) Gross tax capacity means the product of the <br/>
<a id="pl.38.3"></a><var>38.3</var>appropriate gross class rates in this section and market values.<br/>
<a id="pl.38.4"></a><var>38.4</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br/>
<a id="pl.38.5"></a><var>38.5</var>section and market values, minus the property's tax capacity reduction determined under <br/>
<a id="pl.38.6"></a><var>38.6</var>section 273.1384, subdivision 1, if applicable.<br/>
<a id="pl.38.7"></a><var>38.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.38.8"></a><var>38.8</var>thereafter.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.38.9"></a><var>38.9</var>    Sec. 5. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:<br/>
<a id="pl.38.10"></a><var>38.10</var>    Subdivision 1. <b>Residential homestead market value </b><b>credit</b><b> tax capacity </b><br/>
<a id="pl.38.11"></a><var>38.11</var><b>reduction</b><b>.</b> Each county auditor shall determine a homestead credit tax capacity reduction <br/>
<a id="pl.38.12"></a><var>38.12</var>for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of <br/>
<a id="pl.38.13"></a><var>38.13</var>the first $76,000 of market value of the property minus .09 percent of the market value <br/>
<a id="pl.38.14"></a><var>38.14</var>in excess of $76,000. The credit tax capacity reduction amount may not be less than <br/>
<a id="pl.38.15"></a><var>38.15</var>zero. In the case of an agricultural or resort homestead, only the market value of the <br/>
<a id="pl.38.16"></a><var>38.16</var>house, garage, and immediately surrounding one acre of land is eligible in determining <br/>
<a id="pl.38.17"></a><var>38.17</var>the property's homestead credit tax capacity reduction. In the case of a property that is <br/>
<a id="pl.38.18"></a><var>38.18</var>classified as part homestead and part nonhomestead, (i) the credit tax capacity reduction <br/>
<a id="pl.38.19"></a><var>38.19</var>shall apply only to the homestead portion of the property, but (ii) if a portion of a property <br/>
<a id="pl.38.20"></a><var>38.20</var>is classified as nonhomestead solely because not all the owners occupy the property, not <br/>
<a id="pl.38.21"></a><var>38.21</var>all the owners have qualifying relatives occupying the property, or solely because not all <br/>
<a id="pl.38.22"></a><var>38.22</var>the spouses of owners occupy the property, the credit tax capacity reduction amount shall <br/>
<a id="pl.38.23"></a><var>38.23</var>be initially computed as if that nonhomestead portion were also in the homestead class and <br/>
<a id="pl.38.24"></a><var>38.24</var>then prorated to the owner-occupant's percentage of ownership. For the purpose of this <br/>
<a id="pl.38.25"></a><var>38.25</var>section, when an owner-occupant's spouse does not occupy the property, the percentage of <br/>
<a id="pl.38.26"></a><var>38.26</var>ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.38.27"></a><var>38.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.38.28"></a><var>38.28</var>thereafter.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.38.29"></a><var>38.29</var>    Sec. 6. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:<br/>
<a id="pl.38.30"></a><var>38.30</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.38.31"></a><var>38.31</var>reductions allowed under this section subdivision 2 within the county for each taxes <br/>
<a id="pl.38.32"></a><var>38.32</var>payable year and shall certify that amount to the commissioner of revenue as a part of the <br/>
<a id="pl.38.33"></a><var>38.33</var>abstracts of tax lists submitted by the county auditors under section 
         <statute_ref>275.29</statute_ref>. Any prior <br/>
<a id="pl.39.1"></a><var>39.1</var>year adjustments shall also be certified on the abstracts of tax lists. The commissioner <br/>
<a id="pl.39.2"></a><var>39.2</var>shall review the certifications for accuracy, and may make such changes as are deemed <br/>
<a id="pl.39.3"></a><var>39.3</var>necessary, or return the certification to the county auditor for correction. The credits <br/>
<a id="pl.39.4"></a><var>39.4</var>credit under this section must be used to proportionately reduce the net tax capacity-based <br/>
<a id="pl.39.5"></a><var>39.5</var>property tax payable to each local taxing jurisdiction as provided in section 
         <statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.39.6"></a><var>39.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.39.7"></a><var>39.7</var>thereafter.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.39.8"></a><var>39.8</var>    Sec. 7. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:<br/>
<a id="pl.39.9"></a><var>39.9</var>    Subd. 4. <b>Payment.</b> (a) The commissioner of revenue shall reimburse each local <br/>
<a id="pl.39.10"></a><var>39.10</var>taxing jurisdiction, other than school districts, for the tax reductions granted under this <br/>
<a id="pl.39.11"></a><var>39.11</var>section subdivision 2 in two equal installments on October 31 and December 26 of the <br/>
<a id="pl.39.12"></a><var>39.12</var>taxes payable year for which the reductions are granted, including in each payment <br/>
<a id="pl.39.13"></a><var>39.13</var>the prior year adjustments certified on the abstracts for that taxes payable year. The <br/>
<a id="pl.39.14"></a><var>39.14</var>reimbursements related to tax increments shall be issued in one installment each year on <br/>
<a id="pl.39.15"></a><var>39.15</var>December 26.<br/>
<a id="pl.39.16"></a><var>39.16</var>(b) The commissioner of revenue shall certify the total of the tax reductions granted <br/>
<a id="pl.39.17"></a><var>39.17</var>under this section subdivision 2 for each taxes payable year within each school district to <br/>
<a id="pl.39.18"></a><var>39.18</var>the commissioner of the Department of Education and the commissioner of education shall <br/>
<a id="pl.39.19"></a><var>39.19</var>pay the reimbursement amounts to each school district as provided in section 
         <statute_ref>273.1392</statute_ref>.<br/>
<a id="pl.39.20"></a><var>39.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.39.21"></a><var>39.21</var>thereafter.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.39.22"></a><var>39.22</var>    Sec. 8. Minnesota Statutes 2010, section 273.1393, is amended to read:<br/>
<a id="pl.39.23"></a><var>39.23</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.39.24"></a><var>39.24</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.39.25"></a><var>39.25</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.39.26"></a><var>39.26</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br/>
<a id="pl.39.27"></a><var>39.27</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.39.28"></a><var>39.28</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.39.29"></a><var>39.29</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.39.30"></a><var>39.30</var>    (5) disparity reduction credit;<br/>
<a id="pl.39.31"></a><var>39.31</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.39.32"></a><var>39.32</var>    (7) homestead and agricultural credits credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.39.33"></a><var>39.33</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.40.1"></a><var>40.1</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391; and<br/>
</statute_ref><a id="pl.40.2"></a><var>40.2</var>    (10) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br/>
<a id="pl.40.3"></a><var>40.3</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.40.4"></a><var>40.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.40.5"></a><var>40.5</var>thereafter.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.40.6"></a><var>40.6</var>    Sec. 9. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.40.7"></a><var>40.7</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified each year <br/>
<a id="pl.40.8"></a><var>40.8</var>for each taxing district within each unique taxing jurisdiction for taxes payable in the prior <br/>
<a id="pl.40.9"></a><var>40.9</var>year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class <br/>
<a id="pl.40.10"></a><var>40.10</var>rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity <br/>
<a id="pl.40.11"></a><var>40.11</var>using the class rates for taxes payable in the year prior to that for which aid is being <br/>
<a id="pl.40.12"></a><var>40.12</var>computed, both based upon market values for taxes payable in the year prior to that for <br/>
<a id="pl.40.13"></a><var>40.13</var>which aid is being computed. If the commissioner determines that insufficient information <br/>
<a id="pl.40.14"></a><var>40.14</var>is available to reasonably and timely calculate the numerator in this ratio for the first taxes <br/>
<a id="pl.40.15"></a><var>40.15</var>payable year that a class rate change or new class rate is effective, the commissioner <br/>
<a id="pl.40.16"></a><var>40.16</var>shall omit the effects of that class rate change or new class rate when calculating this <br/>
<a id="pl.40.17"></a><var>40.17</var>ratio for aid payable in that taxes payable year. For aid payable in the year following a <br/>
<a id="pl.40.18"></a><var>40.18</var>year for which such omission was made, the commissioner shall use in the denominator <br/>
<a id="pl.40.19"></a><var>40.19</var>for the class that was changed or created, the tax capacity for taxes payable two years <br/>
<a id="pl.40.20"></a><var>40.20</var>prior to that in which the aid is payable, based on market values for taxes payable in the <br/>
<a id="pl.40.21"></a><var>40.21</var>year prior to that for which aid is being computed is 50 percent of the amount certified <br/>
<a id="pl.40.22"></a><var>40.22</var>for taxes payable in 2011.<br/>
<a id="pl.40.23"></a><var>40.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.40.24"></a><var>40.24</var>thereafter.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.40.25"></a><var>40.25</var>    Sec. 10. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:<br/>
<a id="pl.40.26"></a><var>40.26</var>    Subd. 1a. <b>Computation of tax capacity.</b> For taxes payable in 1989, the county <br/>
<a id="pl.40.27"></a><var>40.27</var>auditor shall compute the gross tax capacity for each parcel according to the class rates <br/>
<a id="pl.40.28"></a><var>40.28</var>specified in section 
<statute_ref>273.13</statute_ref>. The gross tax capacity will be the appropriate class rate <br/>
<a id="pl.40.29"></a><var>40.29</var>multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years, <br/>
<a id="pl.40.30"></a><var>40.30</var>The county auditor shall compute the net tax capacity for each parcel according to the <br/>
<a id="pl.40.31"></a><var>40.31</var>class rates specified in as defined under section 
         <statute_ref>273.13</statute_ref>, subdivision 21b. The net tax <br/>
<a id="pl.40.32"></a><var>40.32</var>capacity will be the appropriate class rate multiplied by the parcel's market value. <br/>
<a id="pl.41.1"></a><var>41.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.41.2"></a><var>41.2</var>thereafter.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.41.3"></a><var>41.3</var>    Sec. 11. Minnesota Statutes 2010, section 275.08, subdivision 1d, is amended to read:<br/>
<a id="pl.41.4"></a><var>41.4</var>    Subd. 1d. <b>Additional adjustment.</b> If, after computing each local government's <br/>
<a id="pl.41.5"></a><var>41.5</var>adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the <br/>
<a id="pl.41.6"></a><var>41.6</var>auditor finds that the total adjusted local tax rate of all local governments combined is <br/>
<a id="pl.41.7"></a><var>41.7</var>less than 90 105 percent of gross tax capacity for taxes payable in 1989 and 90 percent <br/>
<a id="pl.41.8"></a><var>41.8</var>of net tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase <br/>
<a id="pl.41.9"></a><var>41.9</var>each local government's adjusted local tax rate proportionately so the total adjusted local <br/>
<a id="pl.41.10"></a><var>41.10</var>tax rate of all local governments combined equals 90 105 percent. The total amount <br/>
<a id="pl.41.11"></a><var>41.11</var>of the increase in tax resulting from the increased local tax rates must not exceed the <br/>
<a id="pl.41.12"></a><var>41.12</var>amount of disparity aid allocated to the unique taxing district under section 
         <statute_ref>273.1398</statute_ref>. The <br/>
<a id="pl.41.13"></a><var>41.13</var>auditor shall certify to the Department of Revenue the difference between the disparity <br/>
<a id="pl.41.14"></a><var>41.14</var>aid originally allocated under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>, and the amount necessary <br/>
<a id="pl.41.15"></a><var>41.15</var>to reduce the total adjusted local tax rate of all local governments combined to 90 105 <br/>
<a id="pl.41.16"></a><var>41.16</var>percent. Each local government's disparity reduction aid payment under section 
         <statute_ref>273.1398, <br/>
<a id="pl.41.17"></a><var>41.17</var>subdivision 6
         </statute_ref>, must be reduced accordingly. <br/>
<a id="pl.41.18"></a><var>41.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.41.19"></a><var>41.19</var>thereafter.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.41.20"></a><var>41.20</var>    Sec. 12. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.41.21"></a><var>41.21</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.41.22"></a><var>41.22</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.41.23"></a><var>41.23</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.41.24"></a><var>41.24</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.41.25"></a><var>41.25</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.41.26"></a><var>41.26</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.41.27"></a><var>41.27</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.41.28"></a><var>41.28</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.41.29"></a><var>41.29</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.41.30"></a><var>41.30</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.41.31"></a><var>41.31</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.41.32"></a><var>41.32</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.41.33"></a><var>41.33</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.41.34"></a><var>41.34</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.42.1"></a><var>42.1</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.42.2"></a><var>42.2</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.42.3"></a><var>42.3</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.42.4"></a><var>42.4</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.42.5"></a><var>42.5</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.42.6"></a><var>42.6</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.42.7"></a><var>42.7</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.42.8"></a><var>42.8</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br/>
<a id="pl.42.9"></a><var>42.9</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.42.10"></a><var>42.10</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.42.11"></a><var>42.11</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.42.12"></a><var>42.12</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.42.13"></a><var>42.13</var>must also be listed on the tax statement.<br/>
<a id="pl.42.14"></a><var>42.14</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.42.15"></a><var>42.15</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.42.16"></a><var>42.16</var>tax statements for real property.<br/>
<a id="pl.42.17"></a><var>42.17</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.42.18"></a><var>42.18</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.42.19"></a><var>42.19</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.42.20"></a><var>42.20</var>in a column on the left:<br/>
<a id="pl.42.21"></a><var>42.21</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.42.22"></a><var>42.22</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.42.23"></a><var>42.23</var>subdivisions 1a and 16
         </statute_ref>;<br/>
<a id="pl.42.24"></a><var>42.24</var>    (3) the property's gross tax, before credits;<br/>
<a id="pl.42.25"></a><var>42.25</var>    (4) for homestead residential and agricultural properties, the credits credit under <br/>
<a id="pl.42.26"></a><var>42.26</var>section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.42.27"></a><var>42.27</var>    (5) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.42.28"></a><var>42.28</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.42.29"></a><var>42.29</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.42.30"></a><var>42.30</var>tax relief"; and<br/>
<a id="pl.42.31"></a><var>42.31</var>    (6) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.42.32"></a><var>42.32</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.42.33"></a><var>42.33</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.42.34"></a><var>42.34</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.42.35"></a><var>42.35</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.42.36"></a><var>42.36</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.43.1"></a><var>43.1</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.43.2"></a><var>43.2</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.43.3"></a><var>43.3</var>the information on a single announcement.<br/>
<a id="pl.43.4"></a><var>43.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.43.5"></a><var>43.5</var>thereafter.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.43.6"></a><var>43.6</var>    Sec. 13. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:<br/>
<a id="pl.43.7"></a><var>43.7</var>    Subdivision 1. <b>General right to refund.</b> (a) Subject to the requirements of this <br/>
<a id="pl.43.8"></a><var>43.8</var>section and section 
         <statute_ref>289A.40</statute_ref>, a taxpayer who has paid a tax in excess of the taxes lawfully <br/>
<a id="pl.43.9"></a><var>43.9</var>due and who files a written claim for refund will be refunded or credited the overpayment <br/>
<a id="pl.43.10"></a><var>43.10</var>of the tax determined by the commissioner to be erroneously paid.<br/>
<a id="pl.43.11"></a><var>43.11</var>(b) The claim must specify the name of the taxpayer, the date when and the period <br/>
<a id="pl.43.12"></a><var>43.12</var>for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer <br/>
<a id="pl.43.13"></a><var>43.13</var>claims was erroneously paid, the grounds on which a refund is claimed, and other <br/>
<a id="pl.43.14"></a><var>43.14</var>information relative to the payment and in the form required by the commissioner. An <br/>
<a id="pl.43.15"></a><var>43.15</var>income tax, estate tax, or corporate franchise tax return, or amended return claiming an <br/>
<a id="pl.43.16"></a><var>43.16</var>overpayment constitutes a claim for refund.<br/>
<a id="pl.43.17"></a><var>43.17</var>(c) When, in the course of an examination, and within the time for requesting a <br/>
<a id="pl.43.18"></a><var>43.18</var>refund, the commissioner determines that there has been an overpayment of tax, the <br/>
<a id="pl.43.19"></a><var>43.19</var>commissioner shall refund or credit the overpayment to the taxpayer and no demand <br/>
<a id="pl.43.20"></a><var>43.20</var>is necessary. If the overpayment exceeds $1, the amount of the overpayment must <br/>
<a id="pl.43.21"></a><var>43.21</var>be refunded to the taxpayer. If the amount of the overpayment is less than $1, the <br/>
<a id="pl.43.22"></a><var>43.22</var>commissioner is not required to refund. In these situations, the commissioner does not <br/>
<a id="pl.43.23"></a><var>43.23</var>have to make written findings or serve notice by mail to the taxpayer.<br/>
<a id="pl.43.24"></a><var>43.24</var>(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent <br/>
<a id="pl.43.25"></a><var>43.25</var>care exceeds the tax against which the credit is allowable, the amount of the excess is <br/>
<a id="pl.43.26"></a><var>43.26</var>considered an overpayment. The refund allowed by section 
<statute_ref>290.06, subdivision 23</statute_ref>, is also <br/>
<a id="pl.43.27"></a><var>43.27</var>considered an overpayment. The requirements of section 
         <statute_ref>270C.33</statute_ref> do not apply to the <br/>
<a id="pl.43.28"></a><var>43.28</var>refunding of such an overpayment shown on the original return filed by a taxpayer.<br/>
<a id="pl.43.29"></a><var>43.29</var>(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, <br/>
<a id="pl.43.30"></a><var>43.30</var>penalties, and interest reported in the return of the entertainment entity or imposed by <br/>
<a id="pl.43.31"></a><var>43.31</var>section 
         <statute_ref>290.9201</statute_ref>, the excess must be refunded to the entertainment entity. If the excess is <br/>
<a id="pl.43.32"></a><var>43.32</var>less than $1, the commissioner need not refund that amount.<br/>
<a id="pl.43.33"></a><var>43.33</var>(f) If the surety deposit required for a construction contract exceeds the liability of <br/>
<a id="pl.43.34"></a><var>43.34</var>the out-of-state contractor, the commissioner shall refund the difference to the contractor.<br/>
<a id="pl.44.1"></a><var>44.1</var>(g) An action of the commissioner in refunding the amount of the overpayment does <br/>
<a id="pl.44.2"></a><var>44.2</var>not constitute a determination of the correctness of the return of the taxpayer.<br/>
<a id="pl.44.3"></a><var>44.3</var>(h) There is appropriated from the general fund to the commissioner of revenue the <br/>
<a id="pl.44.4"></a><var>44.4</var>amount necessary to pay refunds allowed under this section.<br/>
<a id="pl.44.5"></a><var>44.5</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.44.6"></a><var>44.6</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.44.7"></a><var>44.7</var>    Sec. 14. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:<br/>
<a id="pl.44.8"></a><var>44.8</var>    Subd. 6. <b>Taxpayer.</b> The term "taxpayer" means any person or corporation subject to <br/>
<a id="pl.44.9"></a><var>44.9</var>a tax imposed by this chapter. For purposes of section 
<statute_ref>290.06, subdivision 23</statute_ref>, the term <br/>
<a id="pl.44.10"></a><var>44.10</var>"taxpayer" means an individual eligible to vote in Minnesota under section 
<statute_ref>201.014</statute_ref>.<br/>
<a id="pl.44.11"></a><var>44.11</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.44.12"></a><var>44.12</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.44.13"></a><var>44.13</var>    Sec. 15. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:<br/>
<a id="pl.44.14"></a><var>44.14</var>    Subd. 11. <b>Rent constituting property taxes.</b> "Rent constituting property taxes" <br/>
<a id="pl.44.15"></a><var>44.15</var>means 19 12 percent of the gross rent actually paid in cash, or its equivalent, or the portion <br/>
<a id="pl.44.16"></a><var>44.16</var>of rent paid in lieu of property taxes, in any calendar year by a claimant for the right <br/>
<a id="pl.44.17"></a><var>44.17</var>of occupancy of the claimant's Minnesota homestead in the calendar year, and which <br/>
<a id="pl.44.18"></a><var>44.18</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief under this <br/>
<a id="pl.44.19"></a><var>44.19</var>chapter by the claimant.<br/>
<a id="pl.44.20"></a><var>44.20</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.44.21"></a><var>44.21</var>2010 and following years.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.44.22"></a><var>44.22</var>    Sec. 16. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.44.23"></a><var>44.23</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.44.24"></a><var>44.24</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br/>
<a id="pl.44.25"></a><var>44.25</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.44.26"></a><var>44.26</var>and any other state paid property tax credits in any calendar year, and after any refund <br/>
<a id="pl.44.27"></a><var>44.27</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.44.28"></a><var>44.28</var>the year that the property tax is payable. In the case of a claimant who makes ground <br/>
<a id="pl.44.29"></a><var>44.29</var>lease payments, "property taxes payable" includes the amount of the payments directly <br/>
<a id="pl.44.30"></a><var>44.30</var>attributable to the property taxes assessed against the parcel on which the house is located. <br/>
<a id="pl.44.31"></a><var>44.31</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br/>
<a id="pl.44.32"></a><var>44.32</var>use of a portion of the claimant's homestead for a business purpose if the claimant does not <br/>
<a id="pl.45.1"></a><var>45.1</var>deduct any business depreciation expenses for the use of a portion of the homestead in the <br/>
<a id="pl.45.2"></a><var>45.2</var>determination of federal adjusted gross income. For homesteads which are manufactured <br/>
<a id="pl.45.3"></a><var>45.3</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.45.4"></a><var>45.4</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property <br/>
<a id="pl.45.5"></a><var>45.5</var>taxes payable" shall also include 19 12 percent of the gross rent paid in the preceding <br/>
<a id="pl.45.6"></a><var>45.6</var>year for the site on which the homestead is located. When a homestead is owned by <br/>
<a id="pl.45.7"></a><var>45.7</var>two or more persons as joint tenants or tenants in common, such tenants shall determine <br/>
<a id="pl.45.8"></a><var>45.8</var>between them which tenant may claim the property taxes payable on the homestead. If <br/>
<a id="pl.45.9"></a><var>45.9</var>they are unable to agree, the matter shall be referred to the commissioner of revenue <br/>
<a id="pl.45.10"></a><var>45.10</var>whose decision shall be final. Property taxes are considered payable in the year prescribed <br/>
<a id="pl.45.11"></a><var>45.11</var>by law for payment of the taxes.<br/>
<a id="pl.45.12"></a><var>45.12</var>In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.45.13"></a><var>45.13</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.45.14"></a><var>45.14</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.45.15"></a><var>45.15</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.45.16"></a><var>45.16</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.45.17"></a><var>45.17</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.45.18"></a><var>45.18</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.45.19"></a><var>45.19</var>approved the application.<br/>
<a id="pl.45.20"></a><var>45.20</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.45.21"></a><var>45.21</var>2010 and following years.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.45.22"></a><var>45.22</var>    Sec. 17. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:<br/>
<a id="pl.45.23"></a><var>45.23</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.45.24"></a><var>45.24</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.45.25"></a><var>45.25</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.45.26"></a><var>45.26</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.45.27"></a><var>45.27</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.45.28"></a><var>45.28</var>refund amount shown below.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="7.5"/>
<col width="5"/>
<tr>
<td><a id="pl.45.29"></a><var>45.29</var><br/>
<a id="pl.45.30"></a><var>45.30</var><br/>
<a id="pl.45.31"></a><var>45.31</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="center">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.45.32"></a><var>45.32</var><br/>
</td>
<td align="right">$0 to 1,189<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.33"></a><var>45.33</var><br/>
</td>
<td align="right">1,190 to 2,379<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.34"></a><var>45.34</var><br/>
</td>
<td align="right">2,380 to 3,589<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.35"></a><var>45.35</var><br/>
</td>
<td align="right">3,590 to 4,789<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.45.36"></a><var>45.36</var><br/>
</td>
<td align="right">4,790 to 5,979<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.1"></a><var>46.1</var><br/>
</td>
<td align="right">5,980 to 8,369<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.2"></a><var>46.2</var><br/>
</td>
<td align="right">8,370 to 9,559<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.3"></a><var>46.3</var><br/>
</td>
<td align="right">9,560 to 10,759<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.4"></a><var>46.4</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.5"></a><var>46.5</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.6"></a><var>46.6</var><br/>
</td>
<td align="right">13,140 to 14,349<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.7"></a><var>46.7</var><br/>
</td>
<td align="right">14,350 to 16,739<br/>
</td>
<td align="center">2.1 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.8"></a><var>46.8</var><br/>
</td>
<td align="right">16,740 to 17,929<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.9"></a><var>46.9</var><br/>
</td>
<td align="right">17,930 to 19,119<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.10"></a><var>46.10</var><br/>
</td>
<td align="right">19,120 to 20,319<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.11"></a><var>46.11</var><br/>
</td>
<td align="right">20,320 to 25,099<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.12"></a><var>46.12</var><br/>
</td>
<td align="right">25,100 to 28,679<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.13"></a><var>46.13</var><br/>
</td>
<td align="right">28,680 to 35,849<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.14"></a><var>46.14</var><br/>
</td>
<td align="right">35,850 to 41,819<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.15"></a><var>46.15</var><br/>
</td>
<td align="right">41,820 to 47,799<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.16"></a><var>46.16</var><br/>
</td>
<td align="right">47,800 to 53,779<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,110<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.17"></a><var>46.17</var><br/>
</td>
<td align="right">53,780 to 59,749<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">990<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.18"></a><var>46.18</var><br/>
</td>
<td align="right">59,750 to 65,729<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">870<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.19"></a><var>46.19</var><br/>
</td>
<td align="right">65,730 to 69,319<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">740<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.20"></a><var>46.20</var><br/>
</td>
<td align="right">69,320 to 71,719<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">610<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.21"></a><var>46.21</var><br/>
</td>
<td align="right">71,720 to 74,619<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.22"></a><var>46.22</var><br/>
</td>
<td align="right">74,620 to 77,519<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">370<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="7.5"/>
<col width="5"/>
<tr>
<td><a id="pl.46.23"></a><var>46.23</var><br/>
<a id="pl.46.24"></a><var>46.24</var><br/>
<a id="pl.46.25"></a><var>46.25</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="center">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.46.26"></a><var>46.26</var><br/>
</td>
<td align="right">$0 to 1,549<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.27"></a><var>46.27</var><br/>
</td>
<td align="right">1,550 to 3,089<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.28"></a><var>46.28</var><br/>
</td>
<td align="right">3,090 to 4,669<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.29"></a><var>46.29</var><br/>
</td>
<td align="right">4,670 to 6,229<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.30"></a><var>46.30</var><br/>
</td>
<td align="right">6,230 to 7,769<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.31"></a><var>46.31</var><br/>
</td>
<td align="right">7,770 to 10,879<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.32"></a><var>46.32</var><br/>
</td>
<td align="right">10,880 to 12,429<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.33"></a><var>46.33</var><br/>
</td>
<td align="right">12,430 to 13,989<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.34"></a><var>46.34</var><br/>
</td>
<td align="right">13,990 to 15,539<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.35"></a><var>46.35</var><br/>
</td>
<td align="right">15,540 to 17,079<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.36"></a><var>46.36</var><br/>
</td>
<td align="right">17,080 to 18,659<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.37"></a><var>46.37</var><br/>
</td>
<td align="right">18,660 to 21,759<br/>
</td>
<td align="center">2.1 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.38"></a><var>46.38</var><br/>
</td>
<td align="right">21,760 to 23,309<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.39"></a><var>46.39</var><br/>
</td>
<td align="right">23,310 to 24,859<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.40"></a><var>46.40</var><br/>
</td>
<td align="right">24,860 to 26,419<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.41"></a><var>46.41</var><br/>
</td>
<td align="right">26,420 to 32,629<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">3,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.42"></a><var>46.42</var><br/>
</td>
<td align="right">32,630 to 37,279<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.46.43"></a><var>46.43</var><br/>
</td>
<td align="right">37,280 to 46,609<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.1"></a><var>47.1</var><br/>
</td>
<td align="right">46,610 to 49,999<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.2"></a><var>47.2</var><br/>
</td>
<td align="right">50,000 to 54,999<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.3"></a><var>47.3</var><br/>
</td>
<td align="right">55,000 to 59,999<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.4"></a><var>47.4</var><br/>
</td>
<td align="right">60,000 to 64,999<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.47.5"></a><var>47.5</var><br/>
</td>
<td align="right">65,000 to 69,999<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500<br/>
</td>
</tr>
</table><a id="pl.47.6"></a><var>47.6</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.47.7"></a><var>47.7</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.47.8"></a><var>47.8</var>$77,520 $70,000 or more.<br/>
<a id="pl.47.9"></a><var>47.9</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.47.10"></a><var>47.10</var>taxes payable in 2012.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.47.11"></a><var>47.11</var>    Sec. 18. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.47.12"></a><var>47.12</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.47.13"></a><var>47.13</var>calendar year 2002, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.47.14"></a><var>47.14</var>income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. <br/>
<a id="pl.47.15"></a><var>47.15</var>The commissioner shall make the inflation adjustments in accordance with section 1(f) of <br/>
<a id="pl.47.16"></a><var>47.16</var>the Internal Revenue Code, except that for purposes of this subdivision the percentage <br/>
<a id="pl.47.17"></a><var>47.17</var>increase shall be determined as provided in this subdivision.<br/>
<a id="pl.47.18"></a><var>47.18</var>(b) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.47.19"></a><var>47.19</var>refunds under subdivision 2 for inflation, the percentage increase shall be determined from <br/>
<a id="pl.47.20"></a><var>47.20</var>the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that <br/>
<a id="pl.47.21"></a><var>47.21</var>in which the refund is payable.<br/>
<a id="pl.47.22"></a><var>47.22</var>(c) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.47.23"></a><var>47.23</var>refunds under subdivision 2a for inflation, the percentage increase shall be determined <br/>
<a id="pl.47.24"></a><var>47.24</var>from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding <br/>
<a id="pl.47.25"></a><var>47.25</var>that in which the refund is payable. <br/>
<a id="pl.47.26"></a><var>47.26</var>(d) The commissioner shall use the appropriate percentage increase to annually <br/>
<a id="pl.47.27"></a><var>47.27</var>adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for <br/>
<a id="pl.47.28"></a><var>47.28</var>inflation without regard to whether or not the income tax brackets are adjusted for inflation <br/>
<a id="pl.47.29"></a><var>47.29</var>in that year. The commissioner shall round the thresholds and the maximum amounts, <br/>
<a id="pl.47.30"></a><var>47.30</var>as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall <br/>
<a id="pl.47.31"></a><var>47.31</var>round it up to the next $10 amount.<br/>
<a id="pl.47.32"></a><var>47.32</var>(e) The commissioner shall annually announce the adjusted refund schedule at the <br/>
<a id="pl.47.33"></a><var>47.33</var>same time provided under section 
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under <br/>
<a id="pl.47.34"></a><var>47.34</var>this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.48.1"></a><var>48.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning for refunds based on <br/>
<a id="pl.48.2"></a><var>48.2</var>taxes payable in 2013.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.48.3"></a><var>48.3</var>    Sec. 19. <b>[373.51] ALTERNATIVE PROCESS FOR CONSOLIDATION.</b><br/>
<a id="pl.48.4"></a><var>48.4</var>Notwithstanding the provisions relating to petitions in sections 371.02 and 371.03, <br/>
<a id="pl.48.5"></a><var>48.5</var>two or more counties may begin the process for consolidation by filing with the secretary <br/>
<a id="pl.48.6"></a><var>48.6</var>of state a resolution unanimously adopted by the board of each affected county to seek <br/>
<a id="pl.48.7"></a><var>48.7</var>voter approval for consolidation of the counties following the procedures in chapter 371. <br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.48.8"></a><var>48.8</var>    Sec. 20. Minnesota Statutes 2010, section 477A.011, is amended by adding a <br/>
<a id="pl.48.9"></a><var>48.9</var>subdivision to read:<br/>
<a id="pl.48.10"></a><var>48.10</var>    Subd. 1c. <b>First class city.</b> "First class city" means a city of the first class as of <br/>
<a id="pl.48.11"></a><var>48.11</var>2009 as defined in section 410.01.<br/>
<a id="pl.48.12"></a><var>48.12</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.48.13"></a><var>48.13</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.48.14"></a><var>48.14</var>    Sec. 21. Minnesota Statutes 2010, section 477A.011, is amended by adding a <br/>
<a id="pl.48.15"></a><var>48.15</var>subdivision to read:<br/>
<a id="pl.48.16"></a><var>48.16</var>    Subd. 1d. <b>Suburb.</b> "Suburb" means a city located in the seven-county metropolitan <br/>
<a id="pl.48.17"></a><var>48.17</var>area as defined in section 473.121, subdivision 2, that is not a first class city.<br/>
<a id="pl.48.18"></a><var>48.18</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.48.19"></a><var>48.19</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.48.20"></a><var>48.20</var>    Sec. 22. Minnesota Statutes 2010, section 477A.0124, is amended by adding a <br/>
<a id="pl.48.21"></a><var>48.21</var>subdivision to read:<br/>
<a id="pl.48.22"></a><var>48.22</var>    Subd. 6. <b>Aid payments in 2011 and 2012.</b> Notwithstanding total aids calculated or <br/>
<a id="pl.48.23"></a><var>48.23</var>certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall <br/>
<a id="pl.48.24"></a><var>48.24</var>receive an aid distribution under this section equal to the lesser of (1) the total amount of <br/>
<a id="pl.48.25"></a><var>48.25</var>aid it received under this section in 2010 after the reductions under sections 477A.0133 <br/>
<a id="pl.48.26"></a><var>48.26</var>and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under <br/>
<a id="pl.48.27"></a><var>48.27</var>subdivisions 3 to 5.<br/>
<a id="pl.48.28"></a><var>48.28</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.48.29"></a><var>48.29</var>2011 and 2012.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.48.30"></a><var>48.30</var>    Sec. 23. Minnesota Statutes 2010, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.49.1"></a><var>49.1</var>    Subd. 8. <b>City formula aid.</b>  The formula aid for a city is equal to the sum of (1) its <br/>
<a id="pl.49.2"></a><var>49.2</var>city jobs base, (2) its small city aid base, and (3) the need increase percentage multiplied <br/>
<a id="pl.49.3"></a><var>49.3</var>by the average of its unmet need for the most recently available two years.<br/>
<a id="pl.49.4"></a><var>49.4</var>No city may have a formula aid amount less than zero. The need increase percentage must <br/>
<a id="pl.49.5"></a><var>49.5</var>be the same for all cities. For first class cities, the formula aid is 25 percent of its base <br/>
<a id="pl.49.6"></a><var>49.6</var>aid as defined in subdivision 11, paragraph (a), for aids payable in 2013 and zero for aids <br/>
<a id="pl.49.7"></a><var>49.7</var>payable in 2014 and thereafter. For suburbs, the formula aid is 50 percent of its base aid as <br/>
<a id="pl.49.8"></a><var>49.8</var>defined in subdivision 11, paragraph (a), for aids payable in 2013 and thereafter.<br/>
<a id="pl.49.9"></a><var>49.9</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.49.10"></a><var>49.10</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.49.11"></a><var>49.11</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. Data used in calculating aids to cities under sections <br/>
<statute_ref><a id="pl.49.12"></a><var>49.12</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the most recently available data as of January 1 in the <br/>
<a id="pl.49.13"></a><var>49.13</var>year in which the aid is calculated except that the data used to compute "net levy" in <br/>
<a id="pl.49.14"></a><var>49.14</var>subdivision 9 is the data most recently available at the time of the aid computation.<br/>
<a id="pl.49.15"></a><var>49.15</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.49.16"></a><var>49.16</var>2013 and thereafter.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.49.17"></a><var>49.17</var>    Sec. 24. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.49.18"></a><var>49.18</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.49.19"></a><var>49.19</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.49.20"></a><var>49.20</var>subdivision 8, and (2) its city aid base.<br/>
<a id="pl.49.21"></a><var>49.21</var>    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any <br/>
<a id="pl.49.22"></a><var>49.22</var>city shall mean the amount of aid it was certified to receive for aids payable in 2010 <br/>
<a id="pl.49.23"></a><var>49.23</var>2012 under this section minus the amount of its aid reduction under section 
<statute_ref>477A.0134</statute_ref> <br/>
<a id="pl.49.24"></a><var>49.24</var>subdivision 11. For aids payable in 2012 2014 and thereafter, the total aid in the previous <br/>
<a id="pl.49.25"></a><var>49.25</var>year for any city means the amount of aid it was certified to receive under this section in <br/>
<a id="pl.49.26"></a><var>49.26</var>the previous payable year.<br/>
<a id="pl.49.27"></a><var>49.27</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.49.28"></a><var>49.28</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.49.29"></a><var>49.29</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.49.30"></a><var>49.30</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.49.31"></a><var>49.31</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.49.32"></a><var>49.32</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.49.33"></a><var>49.33</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.49.34"></a><var>49.34</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.50.1"></a><var>50.1</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.50.2"></a><var>50.2</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.50.3"></a><var>50.3</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.50.4"></a><var>50.4</var>previous year unless its total aid in calendar year 2008 was aid under section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.50.5"></a><var>50.5</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.50.6"></a><var>50.6</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.50.7"></a><var>50.7</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.50.8"></a><var>50.8</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.50.9"></a><var>50.9</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.50.10"></a><var>50.10</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.50.11"></a><var>50.11</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.50.12"></a><var>50.12</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.50.13"></a><var>50.13</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.50.14"></a><var>50.14</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.50.15"></a><var>50.15</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.50.16"></a><var>50.16</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.50.17"></a><var>50.17</var>(g) Notwithstanding paragraphs (a) to (f), the total aid for a first class city or a <br/>
<a id="pl.50.18"></a><var>50.18</var>suburb is its formula aid under subdivision 8.<br/>
<a id="pl.50.19"></a><var>50.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.50.20"></a><var>50.20</var>2013 and thereafter.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.50.21"></a><var>50.21</var>    Sec. 25. Minnesota Statutes 2010, section 477A.013, is amended by adding a <br/>
<a id="pl.50.22"></a><var>50.22</var>subdivision to read:<br/>
<a id="pl.50.23"></a><var>50.23</var>    Subd. 11. <b>Aid payments in 2011 and 2012.</b> (a) For purposes of this subdivision, <br/>
<a id="pl.50.24"></a><var>50.24</var>"base aid" means the lesser of (1) the total amount of aid it received under this section in <br/>
<a id="pl.50.25"></a><var>50.25</var>2010, after the reductions under sections 477A.0133 and 477A.0134 and reduced by the <br/>
<a id="pl.50.26"></a><var>50.26</var>amount of payments under section 477A.011, subdivision 36, paragraphs (y) and (z), or <br/>
<a id="pl.50.27"></a><var>50.27</var>(2) the amount it was certified to receive in 2011 under subdivision 9, minus any aid base <br/>
<a id="pl.50.28"></a><var>50.28</var>adjustment under section 477A.011, subdivision 36, paragraph (aa).<br/>
<a id="pl.50.29"></a><var>50.29</var>(b) Notwithstanding aids calculated or certified for aids payable in 2011 under <br/>
<a id="pl.50.30"></a><var>50.30</var>subdivision 9, in 2011 each city shall receive an aid distribution under this section as <br/>
<a id="pl.50.31"></a><var>50.31</var>follows:<br/>
<a id="pl.50.32"></a><var>50.32</var>(1) for a first class city, 75 percent of its base aid as defined in paragraph (a);<br/>
<a id="pl.50.33"></a><var>50.33</var>(2) for a suburb, the amount it is certified to receive in 2011 under subdivision 9; and<br/>
<a id="pl.50.34"></a><var>50.34</var>(3) for any other city, the amount it is certified to receive in 2011 under subdivision 9.<br/>
<a id="pl.51.1"></a><var>51.1</var>(c) Notwithstanding aids calculated or certified for aids payable in 2012 under <br/>
<a id="pl.51.2"></a><var>51.2</var>subdivision 9, in 2012 each city shall receive an aid distribution under this section as <br/>
<a id="pl.51.3"></a><var>51.3</var>follows:<br/>
<a id="pl.51.4"></a><var>51.4</var>(1) for a first class city, 50 percent of its base aid as defined in paragraph (a);<br/>
<a id="pl.51.5"></a><var>51.5</var>(2) for a suburb, 75 percent of its base aid as defined in paragraph (a); and<br/>
<a id="pl.51.6"></a><var>51.6</var>(3) for any other city, its base aid as defined under paragraph (a).<br/>
<a id="pl.51.7"></a><var>51.7</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years <br/>
<a id="pl.51.8"></a><var>51.8</var>2011 and 2012.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.51.9"></a><var>51.9</var>    Sec. 26. Minnesota Statutes 2010, section 477A.03, is amended to read:<br/>
<a id="pl.51.10"></a><var>51.10</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.51.11"></a><var>51.11</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.51.12"></a><var>51.12</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.51.13"></a><var>51.13</var>commissioner of revenue.<br/>
<a id="pl.51.14"></a><var>51.14</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2013 only, the total aid paid under section <br/>
<a id="pl.51.15"></a><var>51.15</var>477A.013, subdivision 9, is $309,859,403. For aids payable in 2011 2014 and thereafter, <br/>
<a id="pl.51.16"></a><var>51.16</var>the total aid paid under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $527,100,646 $274,377,734.<br/>
<a id="pl.51.17"></a><var>51.17</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2011 2013 and thereafter, the total aid <br/>
<a id="pl.51.18"></a><var>51.18</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $96,395,000 $78,218,000. Each <br/>
<a id="pl.51.19"></a><var>51.19</var>calendar year, $500,000 shall be retained by the commissioner of revenue to make <br/>
<a id="pl.51.20"></a><var>51.20</var>reimbursements to the commissioner of management and budget for payments made <br/>
<a id="pl.51.21"></a><var>51.21</var>under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall be in addition to the <br/>
<a id="pl.51.22"></a><var>51.22</var>payments authorized under section 
<statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 <br/>
<a id="pl.51.23"></a><var>51.23</var>and subsequent years, The amount shall be deducted from the appropriation under <br/>
<a id="pl.51.24"></a><var>51.24</var>this paragraph. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.51.25"></a><var>51.25</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.51.26"></a><var>51.26</var>reimbursement in a year shall be included in the next distribution of county need aid <br/>
<a id="pl.51.27"></a><var>51.27</var>that is certified to the county auditors for the purpose of property tax reduction for the <br/>
<a id="pl.51.28"></a><var>51.28</var>next taxes payable year.<br/>
<a id="pl.51.29"></a><var>51.29</var>    (b) For aids payable in 2011 2013 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.51.30"></a><var>51.30</var>477A.0124, subdivision 4
         </statute_ref>, is $101,309,575 $83,133,000. The commissioner of <br/>
<a id="pl.51.31"></a><var>51.31</var>management and budget shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.51.32"></a><var>51.32</var>of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in fiscal year <br/>
<a id="pl.51.33"></a><var>51.33</var>2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.51.34"></a><var>51.34</var>revenue for the cost of preparation of local impact notes for school districts as required by <br/>
<a id="pl.52.1"></a><var>52.1</var>section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.52.2"></a><var>52.2</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.52.3"></a><var>52.3</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.52.4"></a><var>52.4</var>management and budget and the commissioner of education for the preparation of local <br/>
<a id="pl.52.5"></a><var>52.5</var>impact notes.<br/>
<a id="pl.52.6"></a><var>52.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.52.7"></a><var>52.7</var>2012 and thereafter.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.52.8"></a><var>52.8</var>    Sec. 27. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:<br/>
<a id="pl.52.9"></a><var>52.9</var>    Subdivision 1. <b>Terms.</b> For the purpose of sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.145</statute_ref> 477A.14, <br/>
<a id="pl.52.10"></a><var>52.10</var>the terms defined in this section have the meanings given them. <br/>
<a id="pl.52.11"></a><var>52.11</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.52.12"></a><var>52.12</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.52.13"></a><var>52.13</var>    Sec. 28. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.52.14"></a><var>52.14</var>    Subdivision 1. <b>Types of land; payments.</b> (a) As an offset for expenses incurred <br/>
<a id="pl.52.15"></a><var>52.15</var>by counties and towns in support of natural resources lands, the following amounts are <br/>
<a id="pl.52.16"></a><var>52.16</var>annually appropriated to the commissioner of natural resources from the general fund for <br/>
<a id="pl.52.17"></a><var>52.17</var>transfer to the commissioner of revenue. The commissioner of revenue shall pay the <br/>
<a id="pl.52.18"></a><var>52.18</var>transferred funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.145</statute_ref> 477A.14. <br/>
<a id="pl.52.19"></a><var>52.19</var>The amounts are:<br/>
<a id="pl.52.20"></a><var>52.20</var>(1) for acquired natural resources land, $3, as adjusted for inflation under section <br/>
<a id="pl.52.21"></a><var>52.21</var><statute_ref>477A.145</statute_ref>, $4.363 multiplied by the total number of acres of acquired natural resources <br/>
<a id="pl.52.22"></a><var>52.22</var>land or, at the county's option three-fourths of one 0.6375 percent of the appraised value of <br/>
<a id="pl.52.23"></a><var>52.23</var>all acquired natural resources land in the county, whichever is greater;<br/>
<a id="pl.52.24"></a><var>52.24</var>(2) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.091 multiplied by <br/>
<a id="pl.52.25"></a><var>52.25</var>the number of acres of county-administered other natural resources land;<br/>
<a id="pl.52.26"></a><var>52.26</var>(3) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.091 multiplied by <br/>
<a id="pl.52.27"></a><var>52.27</var>the total number of acres of land utilization project land; and<br/>
<a id="pl.52.28"></a><var>52.28</var>(4) 37.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, 54.5 cents multiplied <br/>
<a id="pl.52.29"></a><var>52.29</var>by the number of acres of commissioner-administered other natural resources land located <br/>
<a id="pl.52.30"></a><var>52.30</var>in each county as of July 1 of each year prior to the payment year.<br/>
<a id="pl.52.31"></a><var>52.31</var>(b) The amount determined under paragraph (a), clause (1), is payable for land <br/>
<a id="pl.52.32"></a><var>52.32</var>that is acquired from a private owner and owned by the Department of Transportation <br/>
<a id="pl.52.33"></a><var>52.33</var>for the purpose of replacing wetland losses caused by transportation projects, but only <br/>
<a id="pl.53.1"></a><var>53.1</var>if the county contains more than 500 acres of such land at the time the certification is <br/>
<a id="pl.53.2"></a><var>53.2</var>made under subdivision 2.<br/>
<a id="pl.53.3"></a><var>53.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.53.4"></a><var>53.4</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.53.5"></a><var>53.5</var>    Sec. 29. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:<br/>
<a id="pl.53.6"></a><var>53.6</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivision 2 or in <br/>
<a id="pl.53.7"></a><var>53.7</var>section 
         <statute_ref>97A.061, subdivision 5</statute_ref>, 40 percent of the total payment to the county shall be <br/>
<a id="pl.53.8"></a><var>53.8</var>deposited in the county general revenue fund to be used to provide property tax levy <br/>
<a id="pl.53.9"></a><var>53.9</var>reduction. The remainder shall be distributed by the county in the following priority:<br/>
<a id="pl.53.10"></a><var>53.10</var>(a) 37.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>,  54.5 cents for <br/>
<a id="pl.53.11"></a><var>53.11</var>each acre of county-administered other natural resources land shall be deposited in a <br/>
<a id="pl.53.12"></a><var>53.12</var>resource development fund to be created within the county treasury for use in resource <br/>
<a id="pl.53.13"></a><var>53.13</var>development, forest management, game and fish habitat improvement, and recreational <br/>
<a id="pl.53.14"></a><var>53.14</var>development and maintenance of county-administered other natural resources land. Any <br/>
<a id="pl.53.15"></a><var>53.15</var>county receiving less than $5,000 annually for the resource development fund may elect to <br/>
<a id="pl.53.16"></a><var>53.16</var>deposit that amount in the county general revenue fund;<br/>
<a id="pl.53.17"></a><var>53.17</var>(b) From the funds remaining, within 30 days of receipt of the payment to the <br/>
<a id="pl.53.18"></a><var>53.18</var>county, the county treasurer shall pay each organized township 30 cents, as adjusted for <br/>
<a id="pl.53.19"></a><var>53.19</var>inflation under section 
<statute_ref>477A.145</statute_ref>, 43.6 cents for each acre of acquired natural resources <br/>
<a id="pl.53.20"></a><var>53.20</var>land and each acre of land described in section 
         <statute_ref>477A.12, subdivision 1</statute_ref>, paragraph (b), and <br/>
<a id="pl.53.21"></a><var>53.21</var>7.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, 10.9 cents for each acre of <br/>
<a id="pl.53.22"></a><var>53.22</var>other natural resources land and each acre of land utilization project land located within its <br/>
<a id="pl.53.23"></a><var>53.23</var>boundaries. Payments for natural resources lands not located in an organized township <br/>
<a id="pl.53.24"></a><var>53.24</var>shall be deposited in the county general revenue fund. Payments to counties and townships <br/>
<a id="pl.53.25"></a><var>53.25</var>pursuant to this paragraph shall be used to provide property tax levy reduction, except <br/>
<a id="pl.53.26"></a><var>53.26</var>that of the payments for natural resources lands not located in an organized township, the <br/>
<a id="pl.53.27"></a><var>53.27</var>county may allocate the amount determined to be necessary for maintenance of roads in <br/>
<a id="pl.53.28"></a><var>53.28</var>unorganized townships. Provided that, if the total payment to the county pursuant to <br/>
<a id="pl.53.29"></a><var>53.29</var>section 
         <statute_ref>477A.12</statute_ref> is not sufficient to fully fund the distribution provided for in this clause, <br/>
<a id="pl.53.30"></a><var>53.30</var>the amount available shall be distributed to each township and the county general revenue <br/>
<a id="pl.53.31"></a><var>53.31</var>fund on a pro rata basis; and<br/>
<a id="pl.53.32"></a><var>53.32</var>(c) Any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.53.33"></a><var>53.33</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.53.34"></a><var>53.34</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.54.1"></a><var>54.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.54.2"></a><var>54.2</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.30.0"></a><a id="pl.54.3"></a><var>54.3</var>    Sec. 30. Minnesota Statutes 2010, section 477A.17, is amended to read:<br/>
<a id="pl.54.4"></a><var>54.4</var><b>477A.17 LAKE VERMILION STATE PARK AND SOUDAN </b><br/>
<a id="pl.54.5"></a><var>54.5</var><b>UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.</b><br/>
<a id="pl.54.6"></a><var>54.6</var>    (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under <br/>
<a id="pl.54.7"></a><var>54.7</var>section 
         <statute_ref>477A.12, subdivision </statute_ref>1, clause (1), the county shall receive an annual payment for <br/>
<a id="pl.54.8"></a><var>54.8</var>land acquired for Lake Vermilion State Park, established in section 
         <statute_ref>85.012, subdivision <br/>
</statute_ref><a id="pl.54.9"></a><var>54.9</var>38a, and land within the boundary of Soudan Underground Mine State Park, established <br/>
<a id="pl.54.10"></a><var>54.10</var>in section 
         <statute_ref>85.012, subdivision 53a</statute_ref>, equal to 1.5 1.275 percent of the appraised value of <br/>
<a id="pl.54.11"></a><var>54.11</var>the land.<br/>
<a id="pl.54.12"></a><var>54.12</var>    (b) For the purposes of this section, the appraised value of the land acquired for <br/>
<a id="pl.54.13"></a><var>54.13</var>Lake Vermilion State Park for the first five years after acquisition shall be the purchase <br/>
<a id="pl.54.14"></a><var>54.14</var>price of the land, plus the value of any portion of the land that is acquired by donation. <br/>
<a id="pl.54.15"></a><var>54.15</var>The appraised value must be redetermined by the county assessor every five years after <br/>
<a id="pl.54.16"></a><var>54.16</var>the land is acquired.<br/>
<a id="pl.54.17"></a><var>54.17</var>    (c) The annual payments under this section shall be distributed to the taxing <br/>
<a id="pl.54.18"></a><var>54.18</var>jurisdictions containing the property as follows: one-third to the school districts; one-third <br/>
<a id="pl.54.19"></a><var>54.19</var>to the town; and one-third to the county. The payment to school districts is not a county <br/>
<a id="pl.54.20"></a><var>54.20</var>apportionment under section 
         <statute_ref>127A.34</statute_ref> and is not subject to aid recapture. Each of those <br/>
<a id="pl.54.21"></a><var>54.21</var>taxing jurisdictions may use the payments for their general purposes.<br/>
<a id="pl.54.22"></a><var>54.22</var>    (d) Except as provided in this section, the payments shall be made as provided <br/>
<a id="pl.54.23"></a><var>54.23</var>in sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.13</statute_ref>.<br/>
<a id="pl.54.24"></a><var>54.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.54.25"></a><var>54.25</var>2011 and thereafter.<br/>
<br/>
<a id="bill.4.31.0"></a><a id="pl.54.26"></a><var>54.26</var>    Sec. 31. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.</b><br/>
<a id="pl.54.27"></a><var>54.27</var>In administering sections 15 and 16 for claims for refunds submitted using 19 <br/>
<a id="pl.54.28"></a><var>54.28</var>percent of gross rent as rent constituting property taxes under prior law, the commissioner <br/>
<a id="pl.54.29"></a><var>54.29</var>shall recalculate and pay the refund amounts using 12 percent of gross rent. The <br/>
<a id="pl.54.30"></a><var>54.30</var>commissioner shall notify the claimant that the recalculation was mandated by action <br/>
<a id="pl.54.31"></a><var>54.31</var>of the 2011 Legislature.<br/>
<a id="pl.54.32"></a><var>54.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.32.0"></a><a id="pl.55.1"></a><var>55.1</var>    Sec. 32. <b>CREDIT REDUCTIONS AND LIMITATION; COUNTIES AND </b><br/>
<a id="pl.55.2"></a><var>55.2</var><b>CITIES.</b><br/>
<a id="pl.55.3"></a><var>55.3</var>    In 2011, the market value credit reimbursement payment to each county and city <br/>
<a id="pl.55.4"></a><var>55.4</var>authorized under Minnesota Statutes, section 273.1384, subdivision 4, may not exceed the <br/>
<a id="pl.55.5"></a><var>55.5</var>reimbursement payment received by the county or city for taxes payable in 2010. <br/>
<a id="pl.55.6"></a><var>55.6</var><b>EFFECTIVE DATE.</b>This section is effective for credit reimbursements in 2011.<br/>
<br/>
<a id="bill.4.33.0"></a><a id="pl.55.7"></a><var>55.7</var>    Sec. 33. <b>PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.</b><br/>
<a id="pl.55.8"></a><var>55.8</var>For the purposes of the property tax statements required under Minnesota Statutes, <br/>
<a id="pl.55.9"></a><var>55.9</var>section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown <br/>
<a id="pl.55.10"></a><var>55.10</var>for the previous year is the gross tax minus the residential homestead market value credit.<br/>
<a id="pl.55.11"></a><var>55.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 only.<br/>
<br/>
<a id="bill.4.34.0"></a><a id="pl.55.12"></a><var>55.12</var>    Sec. 34. <b>COOPERATION, CONSOLIDATION, INNOVATION GRANTS.</b><br/>
<a id="pl.55.13"></a><var>55.13</var>    Subdivision 1. <b>Definition.</b> For the purposes of this section, "local government" <br/>
<a id="pl.55.14"></a><var>55.14</var>means a town, county, or home rule charter or statutory city.<br/>
<a id="pl.55.15"></a><var>55.15</var>    Subd. 2. <b>Grants.</b> The commissioner of administration may make a cooperation, <br/>
<a id="pl.55.16"></a><var>55.16</var>consolidation, and service innovation grant to a local government that is participating with <br/>
<a id="pl.55.17"></a><var>55.17</var>at least one other local government in planning for or implementing provision of services <br/>
<a id="pl.55.18"></a><var>55.18</var>cooperatively or in planning and implementing consolidation of services, functions, or <br/>
<a id="pl.55.19"></a><var>55.19</var>governance. The grants shall be made on a first-come first-served basis. The commissioner <br/>
<a id="pl.55.20"></a><var>55.20</var>shall determine the form and content of the application and grant agreements. At a <br/>
<a id="pl.55.21"></a><var>55.21</var>minimum, an application must contain a resolution adopted by the governing body of each <br/>
<a id="pl.55.22"></a><var>55.22</var>participating local government supporting the cooperation, consolidation, or innovation <br/>
<a id="pl.55.23"></a><var>55.23</var>effort that identifies the services and functions the local government is considering <br/>
<a id="pl.55.24"></a><var>55.24</var>providing cooperatively with one or more other local governments or that identifies the <br/>
<a id="pl.55.25"></a><var>55.25</var>functions the local governments seek to consolidate. The maximum grant amount is <br/>
<a id="pl.55.26"></a><var>55.26</var>$100,000 per local government.<br/>
<a id="pl.55.27"></a><var>55.27</var>    Subd. 3. <b>Report.</b> The commissioner of administration must report to the governor <br/>
<a id="pl.55.28"></a><var>55.28</var>and legislative committees with jurisdiction over local government governance and local <br/>
<a id="pl.55.29"></a><var>55.29</var>government taxes and finance on the cooperation and consolidation grants made and <br/>
<a id="pl.55.30"></a><var>55.30</var>how the money was used, what services and functions have been provided by local <br/>
<a id="pl.55.31"></a><var>55.31</var>governments in cooperation with each other, what programs or governance structures have <br/>
<a id="pl.55.32"></a><var>55.32</var>been proposed for consolidation or consolidated, and what impediments remain that <br/>
<a id="pl.56.1"></a><var>56.1</var>prevent cooperation, consolidation, and service innovation. An interim report is due <br/>
<a id="pl.56.2"></a><var>56.2</var>February 1, 2012, and a final report is due December 15, 2012.<br/>
<a id="pl.56.3"></a><var>56.3</var>    Subd. 4. <b>Appropriation.</b> $....... is appropriated from the general fund to the <br/>
<a id="pl.56.4"></a><var>56.4</var>commissioner of administration for the biennium ending June 30, 2013, to make grants to <br/>
<a id="pl.56.5"></a><var>56.5</var>counties as provided in this section.<br/>
<br/>
<a id="bill.4.35.0"></a><a id="pl.56.6"></a><var>56.6</var>    Sec. 35. <b> REPEALER.</b><br/>
<a id="pl.56.7"></a><var>56.7</var>(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivision <br/>
<a id="pl.56.8"></a><var>56.8</var>2; are repealed.<br/>
<a id="pl.56.9"></a><var>56.9</var>(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.<br/>
<a id="pl.56.10"></a><var>56.10</var>(c) Minnesota Statutes 2010, sections 273.1384, subdivision 6; and 477A.145, are <br/>
<a id="pl.56.11"></a><var>56.11</var>repealed.<br/>
<a id="pl.56.12"></a><var>56.12</var>(d) Minnesota Statutes 2010, sections 290C.01; 290C.02; 290C.03; 290C.04; <br/>
<a id="pl.56.13"></a><var>56.13</var>290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12; <br/>
<a id="pl.56.14"></a><var>56.14</var>and 290C.13, are repealed.<br/>
<a id="pl.56.15"></a><var>56.15</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.56.16"></a><var>56.16</var>Paragraph (b) is effective for refund claims based on contributions made after June 30, <br/>
<a id="pl.56.17"></a><var>56.17</var>2011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d) is <br/>
<a id="pl.56.18"></a><var>56.18</var>effective July 1, 2011, and the covenants under the program are void on that date. No later <br/>
<a id="pl.56.19"></a><var>56.19</var>than 60 days after enactment of this section, the commissioner of revenue shall issue a <br/>
<a id="pl.56.20"></a><var>56.20</var>document to each enrollee immediately releasing the land from the covenant as provided <br/>
<a id="pl.56.21"></a><var>56.21</var>in Minnesota Statutes 2010, section 290C.04, paragraph (c).<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.56.24"></a><var>56.24</var>    Section 1. Minnesota Statutes 2010, section 273.111, is amended by adding a <br/>
<a id="pl.56.25"></a><var>56.25</var>subdivision to read:<br/>
<a id="pl.56.26"></a><var>56.26</var>    Subd. 2a. <b>Purpose.</b> The legislature finds that it is in the interest of the state to <br/>
<a id="pl.56.27"></a><var>56.27</var>encourage and preserve farms by mitigating the property tax impact of increasing land <br/>
<a id="pl.56.28"></a><var>56.28</var>values due to nonagricultural economic forces.<br/>
<a id="pl.56.29"></a><var>56.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.56.30"></a><var>56.30</var>    Sec. 2. Minnesota Statutes 2010, section 273.111, subdivision 9, is amended to read:<br/>
<a id="pl.56.31"></a><var>56.31</var>    Subd. 9. <b>Additional taxes.</b> (a) Except as provided in paragraph (b), when real <br/>
<a id="pl.56.32"></a><var>56.32</var>property which is being, or has been valued and assessed under this section no longer <br/>
<a id="pl.57.1"></a><var>57.1</var>qualifies under subdivision 3, the portion no longer qualifying shall be subject to additional <br/>
<a id="pl.57.2"></a><var>57.2</var>taxes, in the amount equal to the difference between the taxes determined in accordance <br/>
<a id="pl.57.3"></a><var>57.3</var>with subdivision 4, and the amount determined under subdivision 5. Provided, however, <br/>
<a id="pl.57.4"></a><var>57.4</var>that the amount determined under subdivision 5 shall not be greater than it would have <br/>
<a id="pl.57.5"></a><var>57.5</var>been had the actual bona fide sale price of the real property at an arm's-length transaction <br/>
<a id="pl.57.6"></a><var>57.6</var>been used in lieu of the market value determined under subdivision 5. Such additional <br/>
<a id="pl.57.7"></a><var>57.7</var>taxes shall be extended against the property on the tax list for the current year, provided, <br/>
<a id="pl.57.8"></a><var>57.8</var>however, that no interest or penalties shall be levied on such additional taxes if timely <br/>
<a id="pl.57.9"></a><var>57.9</var>paid, and provided further, that such additional taxes shall only be levied with respect to <br/>
<a id="pl.57.10"></a><var>57.10</var>(1) the last three years that the said property has been valued and assessed under this <br/>
<a id="pl.57.11"></a><var>57.11</var>section, for property originally enrolled on or before May 1, 2012, or (2) the last five years <br/>
<a id="pl.57.12"></a><var>57.12</var>that the property has been valued and assessed under this section, for property originally <br/>
<a id="pl.57.13"></a><var>57.13</var>enrolled after May 1, 2012.<br/>
<a id="pl.57.14"></a><var>57.14</var>(b) Real property that has been valued and assessed under this section prior to <br/>
<a id="pl.57.15"></a><var>57.15</var>May 29, 2008, and that ceases to qualify under this section after May 28, 2008, and is <br/>
<a id="pl.57.16"></a><var>57.16</var>withdrawn from the program before August 16, 2010, is not subject to additional taxes <br/>
<a id="pl.57.17"></a><var>57.17</var>under this subdivision or subdivision 3, paragraph (c). If additional taxes have been <br/>
<a id="pl.57.18"></a><var>57.18</var>paid under this subdivision with respect to property described in this paragraph prior to <br/>
<a id="pl.57.19"></a><var>57.19</var>April 3, 2009, the county must repay the property owner in the manner prescribed by the <br/>
<a id="pl.57.20"></a><var>57.20</var>commissioner of revenue.<br/>
<a id="pl.57.21"></a><var>57.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.57.22"></a><var>57.22</var>    Sec. 3. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:<br/>
<a id="pl.57.23"></a><var>57.23</var>    Subd. 2. <b>Requirements.</b> Class 2a or 2b property that had been assessed properly <br/>
<a id="pl.57.24"></a><var>57.24</var>enrolled under Minnesota Statutes 2006, section 273.111 for taxes payable in 2008, or that <br/>
<a id="pl.57.25"></a><var>57.25</var>is part of an agricultural homestead under Minnesota Statutes, section 273.13, subdivision <br/>
<a id="pl.57.26"></a><var>57.26</var>23, paragraph (a), at least a portion of which is enrolled under section 273.111, is entitled <br/>
<a id="pl.57.27"></a><var>57.27</var>to valuation and tax deferment under this section if:<br/>
<a id="pl.57.28"></a><var>57.28</var>(1) the land consists of at least ten acres property is contiguous to class 2a property <br/>
<a id="pl.57.29"></a><var>57.29</var>enrolled under section 273.111 under the same ownership;<br/>
<a id="pl.57.30"></a><var>57.30</var>(2) a conservation assessment plan for the land must be prepared by an approved <br/>
<a id="pl.57.31"></a><var>57.31</var>plan writer and implemented during the period in which the land is subject to valuation <br/>
<a id="pl.57.32"></a><var>57.32</var>and deferment under this section;<br/>
<a id="pl.57.33"></a><var>57.33</var>(3) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.57.34"></a><var>57.34</var>(4) (2) there are no delinquent property taxes on the land; and<br/>
<a id="pl.58.1"></a><var>58.1</var>(5) (3) the property is not also enrolled for valuation and deferment under section <br/>
<a id="pl.58.2"></a><var>58.2</var>273.111 or 273.112, or chapter 290C or 473H.<br/>
<a id="pl.58.3"></a><var>58.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.58.4"></a><var>58.4</var>thereafter.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.58.5"></a><var>58.5</var>    Sec. 4. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:<br/>
<a id="pl.58.6"></a><var>58.6</var>    Subd. 5. <b>Application </b><b>and covenant agreement</b><b>.</b> (a) Application for deferment <br/>
<a id="pl.58.7"></a><var>58.7</var>of taxes and assessment under this section shall be filed by May 1 of the year prior to <br/>
<a id="pl.58.8"></a><var>58.8</var>the year in which the taxes are payable. Any application filed under this subdivision <br/>
<a id="pl.58.9"></a><var>58.9</var>and granted shall continue in effect for subsequent years until the termination of the <br/>
<a id="pl.58.10"></a><var>58.10</var>covenant agreement under paragraph (b) property is withdrawn or no longer qualifies. The <br/>
<a id="pl.58.11"></a><var>58.11</var>application must be filed with the assessor of the taxing district in which the real property <br/>
<a id="pl.58.12"></a><var>58.12</var>is located on the form prescribed by the commissioner of revenue. The assessor may <br/>
<a id="pl.58.13"></a><var>58.13</var>require proof by affidavit or otherwise that the property qualifies under subdivision 2.<br/>
<a id="pl.58.14"></a><var>58.14</var>    (b) The owner of the property must sign a covenant agreement that is filed with the <br/>
<a id="pl.58.15"></a><var>58.15</var>county recorder and recorded in the county where the property is located. The covenant <br/>
<a id="pl.58.16"></a><var>58.16</var>agreement must include all of the following:<br/>
<a id="pl.58.17"></a><var>58.17</var>    (1) legal description of the area to which the covenant applies;<br/>
<a id="pl.58.18"></a><var>58.18</var>    (2) name and address of the owner;<br/>
<a id="pl.58.19"></a><var>58.19</var>    (3) a statement that the land described in the covenant must be kept as rural preserve <br/>
<a id="pl.58.20"></a><var>58.20</var>land, which meets the requirements of subdivision 2, for the duration of the covenant;<br/>
<a id="pl.58.21"></a><var>58.21</var>    (4) a statement that the landowner may terminate the covenant agreement by <br/>
<a id="pl.58.22"></a><var>58.22</var>notifying the county assessor in writing three years in advance of the date of proposed <br/>
<a id="pl.58.23"></a><var>58.23</var>termination, provided that the notice of intent to terminate may not be given at any time <br/>
<a id="pl.58.24"></a><var>58.24</var>before the land has been subject to the covenant for a period of five years;<br/>
<a id="pl.58.25"></a><var>58.25</var>    (5) a statement that the covenant is binding on the owner or the owner's successor or <br/>
<a id="pl.58.26"></a><var>58.26</var>assigns and runs with the land; and<br/>
<a id="pl.58.27"></a><var>58.27</var>    (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as <br/>
<a id="pl.58.28"></a><var>58.28</var>described in subdivision 2.<br/>
<a id="pl.58.29"></a><var>58.29</var>(c) After a covenant under this section has been terminated, the land that had been <br/>
<a id="pl.58.30"></a><var>58.30</var>subject to the covenant is ineligible for subsequent valuation under this section for a <br/>
<a id="pl.58.31"></a><var>58.31</var>period of three years after the termination.<br/>
<a id="pl.58.32"></a><var>58.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.58.33"></a><var>58.33</var>thereafter.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.59.1"></a><var>59.1</var>    Sec. 5. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:<br/>
<a id="pl.59.2"></a><var>59.2</var>    Subd. 6. <b>Additional taxes.</b> Upon termination of a covenant agreement in <br/>
<a id="pl.59.3"></a><var>59.3</var>subdivision 5, paragraph (b), the land to which the covenant applied When real property <br/>
<a id="pl.59.4"></a><var>59.4</var>that is being or has been valued and assessed under this section no longer qualifies under <br/>
<a id="pl.59.5"></a><var>59.5</var>subdivision 2, the portion no longer qualifying shall be subject to additional taxes in <br/>
<a id="pl.59.6"></a><var>59.6</var>the amount equal to the difference between the taxes determined in accordance with <br/>
<a id="pl.59.7"></a><var>59.7</var>subdivision 3 and the amount determined under subdivision 4, provided that the amount <br/>
<a id="pl.59.8"></a><var>59.8</var>determined under subdivision 4 shall not be greater than it would have been had the actual <br/>
<a id="pl.59.9"></a><var>59.9</var>bona fide sale price of the real property at an arm's-length transaction been used in lieu of <br/>
<a id="pl.59.10"></a><var>59.10</var>the market value determined under subdivision 4. The additional taxes shall be extended <br/>
<a id="pl.59.11"></a><var>59.11</var>against the property on the tax list for the current year, provided that no interest or penalties <br/>
<a id="pl.59.12"></a><var>59.12</var>shall be levied on the additional taxes if timely paid and that the additional taxes shall only <br/>
<a id="pl.59.13"></a><var>59.13</var>be levied with respect to the current year plus (1) two prior years that the property has <br/>
<a id="pl.59.14"></a><var>59.14</var>been valued and assessed under this section, for property that had been enrolled under <br/>
<a id="pl.59.15"></a><var>59.15</var>this section or section 273.111 on or before May 1, 2012, or (2) four prior years that the <br/>
<a id="pl.59.16"></a><var>59.16</var>property had been valued and assessed under this section, for all other property.<br/>
<a id="pl.59.17"></a><var>59.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.59.18"></a><var>59.18</var>thereafter.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.59.19"></a><var>59.19</var>    Sec. 6. <b>LAND REMOVED FROM PROGRAM.</b><br/>
<a id="pl.59.20"></a><var>59.20</var>(a) Any class 2a land that had been properly enrolled in the Minnesota Agricultural <br/>
<a id="pl.59.21"></a><var>59.21</var>Property Tax Law under Minnesota Statutes 2006, section 273.111, and that was removed <br/>
<a id="pl.59.22"></a><var>59.22</var>from the program between May 21, 2008, and the effective date of this paragraph must be <br/>
<a id="pl.59.23"></a><var>59.23</var>reinstated to the program at the request of the owner provided that the request is made <br/>
<a id="pl.59.24"></a><var>59.24</var>prior to September 1, 2011.<br/>
<a id="pl.59.25"></a><var>59.25</var>(b) Any class 2b land that had been properly enrolled in the Minnesota Agricultural <br/>
<a id="pl.59.26"></a><var>59.26</var>Property Tax Law under Minnesota Statutes, section 273.111, and that was removed from <br/>
<a id="pl.59.27"></a><var>59.27</var>the program between May 21, 2008, and the effective date of this paragraph, and that <br/>
<a id="pl.59.28"></a><var>59.28</var>applies for enrollment in the rural preserve program under Minnesota Statutes, section <br/>
<a id="pl.59.29"></a><var>59.29</var>273.114, prior to September 1, 2011, shall be allowed to apply as if it had been enrolled <br/>
<a id="pl.59.30"></a><var>59.30</var>under Minnesota Statutes, section 273.111, immediately prior to application for enrollment <br/>
<a id="pl.59.31"></a><var>59.31</var>under Minnesota Statutes, section 273.114.<br/>
<a id="pl.59.32"></a><var>59.32</var>(c) If additional taxes, as defined under Minnesota Statutes, section 273.111, <br/>
<a id="pl.59.33"></a><var>59.33</var>subdivision 9, have been paid by a property owner prior to the effective date of this <br/>
<a id="pl.59.34"></a><var>59.34</var>paragraph for property being enrolled or reenrolled under paragraph (a) or (b), the county <br/>
<a id="pl.59.35"></a><var>59.35</var>must repay the property owner in the manner prescribed by the commissioner of revenue.<br/>
<a id="pl.60.1"></a><var>60.1</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (b) are effective the day following final <br/>
<a id="pl.60.2"></a><var>60.2</var>enactment for taxes payable in 2012 and thereafter. Paragraph (c) is effective the day <br/>
<a id="pl.60.3"></a><var>60.3</var>following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.60.4"></a><var>60.4</var>    Sec. 7. <b>COVENANTS TERMINATED.</b><br/>
<a id="pl.60.5"></a><var>60.5</var>Any covenants entered into in order to comply with the requirements of Minnesota <br/>
<a id="pl.60.6"></a><var>60.6</var>Statutes 2010, section 273.114, subdivision 5, are terminated.<br/>
<a id="pl.60.7"></a><var>60.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.60.8"></a><var>60.8</var>    Sec. 8. <b>STUDY REQUIRED.</b><br/>
<a id="pl.60.9"></a><var>60.9</var>The commissioner of revenue, in consultation with the Minnesota Association of <br/>
<a id="pl.60.10"></a><var>60.10</var>Assessing Officers, the Department of Applied Economics at the University of Minnesota, <br/>
<a id="pl.60.11"></a><var>60.11</var>and representatives of major farm groups within the state of Minnesota, must explore <br/>
<a id="pl.60.12"></a><var>60.12</var>alternative methods for determining the taxable value of tillable and nontillable land <br/>
<a id="pl.60.13"></a><var>60.13</var>enrolled in the green acres program under Minnesota Statutes, section 273.111, and the <br/>
<a id="pl.60.14"></a><var>60.14</var>rural preserves program under Minnesota Statutes, section 273.114. The commissioner <br/>
<a id="pl.60.15"></a><var>60.15</var>must make a report to the legislature by February 15, 2012, describing the methodologies <br/>
<a id="pl.60.16"></a><var>60.16</var>intended to be used for assessment year 2012 and thereafter.<br/>
<a id="pl.60.17"></a><var>60.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.60.18"></a><var>60.18</var>    Sec. 9. <b> REPEALER.</b><br/>
<a id="pl.60.19"></a><var>60.19</var>Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.<br/>
<a id="pl.60.20"></a><var>60.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>