1.1A bill for an act1.2relating to property taxation; modifying the definition of income for the property 1.3tax refund; decreasing the threshold percentage for the homestead credit refund 1.4for homeowners and the property tax refund for renters; increasing the maximum 1.5refunds for renters; changing property tax aids and credits; imposing an insurance 1.6surcharge; modifying pension aids; providing pension funding; changing 1.7provisions of the Sustainable Forest Incentive Act; modifying definitions for 1.8property taxes; providing exemptions; creating joint entertainment facilities 1.9coordination; providing reimbursement for certain property tax abatement; 1.10authorizing economic development powers; imposing a tax on extraction and 1.11processing of fracturing sand; providing a taconite production tax grant for water 1.12supply improvements; authorizing taconite production tax bonds for grants to 1.13school districts; authorizing local sales taxes; modifying the definition of market 1.14value for tax, debt, and other purposes; making policy and technical changes to 1.15property tax provisions; requiring a study and report on the Iron Range fiscal 1.16disparities program; requiring a study and report on certain property used in 1.17business and production; appropriating money;amending Minnesota Statutes 1.182012, sections 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, 1.19subdivisions 7, 8, by adding a subdivision; 88.51, subdivision 3; 103B.102, 1.20subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.335; 1.21103B.3369, subdivision 5; 103B.635, subdivision 2; 103B.691, subdivision 2; 1.22103C.501, subdivision 4; 103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1.231; 117.025, subdivision 7; 123A.455, subdivision 1; 127A.48, subdivision 1; 1.24138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 1.253; 163.06, subdivision 6; 165.10, subdivision 1; 270.077; 270.41, subdivision 1.265; 270C.34, subdivision 1; 272.01, subdivision 2; 272.02, subdivision 97, by 1.27adding subdivisions; 272.03, subdivision 9, by adding subdivisions; 273.032; 1.28273.11, subdivision 1, by adding a subdivision; 273.114, subdivision 6; 1.29273.124, subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, 1.30subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 1.31275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4; 276.04, 1.32subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 1.33279.01, subdivision 1, by adding a subdivision; 279.02; 279.06, subdivision 1.341; 287.05, by adding a subdivision; 287.08; 287.23, subdivision 1; 290A.03, 1.35subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, 1.36subdivision 6; 290C.05; 290C.07; 298.01, subdivision 3; 298.018; 298.28, 1.37subdivisions 4, 6, 9a; 298.75, subdivision 2; 353G.08, subdivision 2; 365.025, 1.38subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 1.39370.01; 373.01, subdivision 1; 373.40, subdivisions 1, 4; 375.167, subdivision 2.11; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 2.21; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 2.38; 401.05, subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, 2.4subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 2.5458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 2.6469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 2.7469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, by 2.8adding a subdivision; 469.180, subdivision 2; 469.187; 469.190, subdivision 7, 2.9by adding a subdivision; 469.206; 471.24; 471.571, subdivisions 1, 2; 471.73; 2.10473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667, subdivision 2.119; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 2.12473F.08, subdivision 10, by adding a subdivision; 475.521, subdivision 4; 2.13475.53, subdivisions 1, 3, 4; 475.58, subdivision 2; 475.73, subdivision 1; 2.14477A.011, subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, 2.15subdivision 2; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.03, 2.16subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding 2.17a subdivision; Laws 1988, chapter 645, section 3, as amended; Laws 1993, 2.18chapter 375, article 9, section 46, subdivision 2, as amended; Laws 1999, chapter 2.19243, article 6, section 11; Laws 2005, First Special Session chapter 3, article 5, 2.20section 37, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 2.2134, as amended; article 7, section 19, subdivision 3, as amended; Laws 2010, 2.22chapter 389, article 1, section 12; article 5, section 6, subdivisions 4, 6; proposing 2.23coding for new law in Minnesota Statutes, chapters 116C; 287; 290A; 297I; 2.24proposing coding for new law as Minnesota Statutes, chapter 297J; repealing 2.25Minnesota Statutes 2012, sections 272.69; 273.11, subdivisions 1a, 22; 276A.01, 2.26subdivision 11; 383A.80, subdivision 4; 383B.80, subdivision 4; 428A.101; 2.27428A.21; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 2.2833, 36, 39, 40, 41, 42; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; 2.29Laws 2006, chapter 259, article 11, section 3, as amended.2.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.31ARTICLE 12.32HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX REFUND2.33    Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:2.34    Subd. 3. Income. (1) "Income" means the sum of the following:2.35    (a) federal adjusted gross income as defined in the Internal Revenue Code; and2.36    (b) the sum of the following amounts to the extent not included in clause (a):2.37    (i) all nontaxable income;2.38    (ii) the amount of a passive activity loss that is not disallowed as a result of section 2.39469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity 2.40loss carryover allowed under section 469(b) of the Internal Revenue Code;2.41    (iii) an amount equal to the total of any discharge of qualified farm indebtedness 2.42of a solvent individual excluded from gross income under section 108(g) of the Internal 2.43Revenue Code;2.44    (iv) cash public assistance and relief;3.1    (v) any pension or annuity (including railroad retirement benefits, all payments 3.2received under the federal Social Security Act, Supplemental Security Income, and 3.3veterans benefits), which was not exclusively funded by the claimant or spouse, or which 3.4was funded exclusively by the claimant or spouse and which funding payments were 3.5excluded from federal adjusted gross income in the years when the payments were made;3.6    (vi) interest received from the federal or a state government or any instrumentality 3.7or political subdivision thereof;3.8    (vii) workers' compensation;3.9    (viii) nontaxable strike benefits;3.10    (ix) the gross amounts of payments received in the nature of disability income or 3.11sick pay as a result of accident, sickness, or other disability, whether funded through 3.12insurance or otherwise;3.13    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 3.141986, as amended through December 31, 1995;3.15    (xi) contributions made by the claimant to an individual retirement account, 3.16including a qualified voluntary employee contribution; simplified employee pension plan; 3.17self-employed retirement plan; cash or deferred arrangement plan under section 401(k) 3.18of the Internal Revenue Code; or deferred compensation plan under section 457 of the 3.19Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base 3.20amount for the claimant and spouse;3.21    (xii) to the extent not included in federal adjusted gross income, distributions received 3.22by the claimant or spouse from a traditional or Roth style retirement account or plan;3.23    (xiii) nontaxable scholarship or fellowship grants;3.24    (xiii) (xiv) the amount of deduction allowed under section 199 of the Internal 3.25Revenue Code;3.26    (xiv) (xv) the amount of deduction allowed under section 220 or 223 of the Internal 3.27Revenue Code;3.28    (xv) (xvi) the amount of tuition expenses required to be added to income under 3.29section 
         290.01, subdivision 19a, clause (12);3.30    (xvi) (xvii) the amount deducted for certain expenses of elementary and secondary 3.31school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and3.32    (xvii) (xviii) unemployment compensation.3.33    In the case of an individual who files an income tax return on a fiscal year basis, the 3.34term "federal adjusted gross income" shall mean federal adjusted gross income reflected 3.35in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be 4.1reduced by the amount of a net operating loss carryback or carryforward or a capital loss 4.2carryback or carryforward allowed for the year.4.3    (2) "Income" does not include:4.4    (a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;4.5    (b) amounts of any pension or annuity which was exclusively funded by the claimant 4.6or spouse and which funding payments were not excluded from federal adjusted gross 4.7income in the years when the payments were made;4.8    (c) to the extent included in federal adjusted gross income, amounts contributed by 4.9the claimant or spouse to a traditional or Roth style retirement account or plan, but not 4.10to exceed the retirement base amount reduced by the amount of contributions excluded 4.11from federal adjusted gross income, but not less than zero;4.12    (d) surplus food or other relief in kind supplied by a governmental agency;4.13    (d) (e) relief granted under this chapter;4.14    (e) (f) child support payments received under a temporary or final decree of 4.15dissolution or legal separation; or4.16    (f) (g) restitution payments received by eligible individuals and excludable interest 4.17as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 4.182001, Public Law 107-16.4.19    (3) The sum of the following amounts may be subtracted from income:4.20    (a) for the claimant's first dependent, the exemption amount multiplied by 1.4;4.21    (b) for the claimant's second dependent, the exemption amount multiplied by 1.3;4.22    (c) for the claimant's third dependent, the exemption amount multiplied by 1.2;4.23    (d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;4.24    (e) for the claimant's fifth dependent, the exemption amount; and4.25    (f) if the claimant or claimant's spouse was disabled or attained the age of 65 4.26on or before December 31 of the year for which the taxes were levied or rent paid, the 4.27exemption amount.4.28    For purposes of this subdivision, the "exemption amount" means the exemption 4.29amount under section 151(d) of the Internal Revenue Code for the taxable year for which 4.30the income is reported; and "retirement base amount" means the deductible amount for 4.31the taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal 4.32Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal 4.33Revenue Code, without regard to whether the claimant or spouse claimed a deduction.4.34EFFECTIVE DATE.This section is effective beginning with refunds based on 4.35property taxes payable in 2014 and rent paid in 2013.5.1    Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:5.2    Subd. 2. Homeowners; homestead credit refund. A claimant whose property 5.3taxes payable are in excess of the percentage of the household income stated below shall 5.4pay an amount equal to the percent of income shown for the appropriate household 5.5income level along with the percent to be paid by the claimant of the remaining amount 5.6of property taxes payable. The state refund equals the amount of property taxes payable 5.7that remain, up to the state refund amount shown below.

5.85.95.10Household IncomePercent of IncomePercent Paid byClaimantMaximum StateRefund5.11$0 to 1,5491.0 percent15 percent$2,4605.121,550 to 3,0891.1 percent15 percent$2,4605.133,090 to 4,6691.2 percent15 percent$2,4605.144,670 to 6,2291.3 percent20 percent$2,4605.156,230 to 7,7691.4 percent20 percent$2,4605.167,770 to 10,8791.5 percent20 percent$2,4605.1710,880 to 12,4291.6 percent20 percent$2,4605.1812,430 to 13,9891.7 percent20 percent$2,4605.1913,990 to 15,5391.8 percent20 percent$2,4605.2015,540 to 17,0791.9 percent25 percent$2,4605.2117,080 to 18,6592.0 percent25 percent$2,4605.2218,660 to 21,7592.1 percent25 percent$2,4605.2321,760 to 23,3092.2 percent30 percent$2,4605.2423,310 to 24,8592.3 percent30 percent$2,4605.2524,860 to 26,4192.4 percent30 percent$2,4605.2626,420 to 32,6292.5 percent35 percent$2,4605.2732,630 to 37,2792.6 percent35 percent$2,4605.2837,280 to 46,6092.7 percent35 percent$2,0005.2946,610 to 54,3692.8 percent35 percent$2,0005.3054,370 to 62,1392.8 percent40 percent$1,7505.3162,140 to 69,9093.0 percent40 percent$1,4405.3269,910 to 77,6793.0 percent40 percent$1,2905.3377,680 to 85,4493.0 percent40 percent$1,1305.3485,450 to 90,1193.5 percent45 percent$9605.3590,120 to 93,2393.5 percent45 percent$7905.3693,240 to 97,0093.5 percent50 percent$6505.3797,010 to 100,7793.5 percent50 percent$480

5.385.395.40Household IncomePercent of IncomePercent Paid byClaimantMaximum StateRefund5.41$0 to 1,6191.0 percent15 percent$2,5805.421,620 to 3,2291.1 percent15 percent$2,5806.13,230 to 4,8891.2 percent15 percent$2,5806.24,890 to 6,5191.3 percent20 percent$2,5806.36,520 to 8,1291.4 percent20 percent$2,5806.48,130 to 11,3891.5 percent20 percent$2,5806.511,390 to 13,0091.6 percent20 percent$2,5806.613,010 to 14,6491.7 percent20 percent$2,5806.714,650 to 16,2691.8 percent20 percent$2,5806.816,270 to 17,8791.9 percent25 percent$2,5806.917,880 to 22,7792.0 percent25 percent$2,5806.1022,780 to 24,3992.0 percent30 percent$2,5806.1124,400 to 27,6592.0 percent30 percent$2,5806.1227,660 to 39,0292.0 percent35 percent$2,5806.1339,030 to 56,9192.0 percent35 percent$2,0906.1456,920 to 65,0492.0 percent40 percent$1,8306.1565,050 to 73,1892.1 percent40 percent$1,5106.1673,190 to 81,3192.2 percent40 percent$1,3506.1781,320 to 89,4492.3 percent40 percent$1,1806.1889,450 to 94,3392.4 percent45 percent$1,0006.1994,340 to 97,6092.5 percent45 percent$8306.2097,610 to 101,5592.5 percent50 percent$6806.21101,560 to 105,4992.5 percent50 percent$500

6.22    The payment made to a claimant shall be the amount of the state refund calculated 6.23under this subdivision. No payment is allowed if the claimant's household income is 6.24$100,780 $105,500 or more.6.25EFFECTIVE DATE.This section is effective for refund claims based on taxes 6.26payable in 2014 and thereafter.6.27    Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:6.28    Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the 6.29percentage of the household income stated below must pay an amount equal to the percent 6.30of income shown for the appropriate household income level along with the percent to 6.31be paid by the claimant of the remaining amount of rent constituting property taxes. The 6.32state refund equals the amount of rent constituting property taxes that remain, up to the 6.33maximum state refund amount shown below.

6.346.356.36Household IncomePercent of IncomePercent Paid by
                  		ClaimantMaximum 
                  		State
                  		Refund6.37$0 to 3,5891.0 percent5 percent$1,1906.383,590 to 4,7791.0 percent10 percent$1,1907.14,780 to 5,9691.1 percent10 percent$1,1907.25,970 to 8,3691.2 percent10 percent$1,1907.38,370 to 10,7591.3 percent15 percent$1,1907.410,760 to 11,9491.4 percent15 percent$1,1907.511,950 to 13,1391.4 percent20 percent$1,1907.613,140 to 15,5391.5 percent20 percent$1,1907.715,540 to 16,7291.6 percent20 percent$1,1907.816,730 to 17,9191.7 percent25 percent$1,1907.917,920 to 20,3191.8 percent25 percent$1,1907.1020,320 to 21,5091.9 percent30 percent$1,1907.1121,510 to 22,6992.0 percent30 percent$1,1907.1222,700 to 23,8992.2 percent30 percent$1,1907.1323,900 to 25,0892.4 percent30 percent$1,1907.1425,090 to 26,2892.6 percent35 percent$1,1907.1526,290 to 27,4892.7 percent35 percent$1,1907.1627,490 to 28,6792.8 percent35 percent$1,1907.1728,680 to 29,8692.9 percent40 percent$1,1907.1829,870 to 31,0793.0 percent40 percent$1,1907.1931,080 to 32,2693.1 percent40 percent$1,1907.2032,270 to 33,4593.2 percent40 percent$1,1907.2133,460 to 34,6493.3 percent45 percent$1,0807.2234,650 to 35,8493.4 percent45 percent$9607.2335,850 to 37,0493.5 percent45 percent$8307.2437,050 to 38,2393.5 percent50 percent$7207.2538,240 to 39,4393.5 percent50 percent$6007.2638,440 to 40,6293.5 percent50 percent$3607.2740,630 to 41,8193.5 percent50 percent$120

7.28$0 to 4,9091.0 percent5 percent$2,0007.294,910 to 6,5291.0 percent10 percent$2,0007.306,530 to 8,1591.1 percent10 percent$1,9507.318,160 to 11,4391.2 percent10 percent$1,9007.3211,440 to 14,7091.3 percent15 percent$1,8507.3314,710 to 16,3391.4 percent15 percent$1,8007.3416,340 to 17,9591.4 percent20 percent$1,7507.3517,960 to 21,2391.5 percent20 percent$1,7007.3621,240 to 22,8691.6 percent20 percent$1,6507.3722,870 to 24,4991.7 percent25 percent$1,6507.3824,500 to 27,7791.8 percent25 percent$1,6507.3927,780 to 29,3991.9 percent30 percent$1,6507.4029,400 to 34,2992.0 percent30 percent$1,6507.4134,300 to 39,1992.0 percent35 percent$1,6507.4239,200 to 45,7392.0 percent40 percent$1,6507.4345,740 to 47,3692.0 percent45 percent$1,5008.147,370 to 49,0092.0 percent45 percent$1,3508.249,010 to 50,6492.0 percent45 percent$1,1508.350,650 to 52,2692.0 percent50 percent$1,0008.452,270 to 53,9092.0 percent50 percent$9008.553,910 to 55,5392.0 percent50 percent$5008.655,540 to 57,1692.0 percent50 percent$200

8.7    The payment made to a claimant is the amount of the state refund calculated under 8.8this subdivision. No payment is allowed if the claimant's household income is $41,8208.9 $57,170 or more.8.10EFFECTIVE DATE.This section is effective for claims based on rent paid in 8.112013 and following years.8.12    Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:8.13    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in 8.14calendar year 2002, the commissioner shall annually adjust the dollar amounts of the 8.15income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. 8.16The commissioner shall make the inflation adjustments in accordance with section 1(f) of 8.17the Internal Revenue Code, except that for purposes of this subdivision the percentage 8.18increase shall be determined as provided in this subdivision.8.19    (b) In adjusting the dollar amounts of the income thresholds and the maximum 8.20refunds under subdivision 2 for inflation, the percentage increase shall be determined 8.21from the year ending on June 30, 2011 2013, to the year ending on June 30 of the year 8.22preceding that in which the refund is payable.8.23    (c) In adjusting the dollar amounts of the income thresholds and the maximum 8.24refunds under subdivision 2a for inflation, the percentage increase shall be determined 8.25from the year ending on June 30, 2000 2013, to the year ending on June 30 of the year 8.26preceding that in which the refund is payable.8.27    (d) The commissioner shall use the appropriate percentage increase to annually 8.28adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for 8.29inflation without regard to whether or not the income tax brackets are adjusted for inflation 8.30in that year. The commissioner shall round the thresholds and the maximum amounts, 8.31as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall 8.32round it up to the next $10 amount.8.33    (e) The commissioner shall annually announce the adjusted refund schedule at the 8.34same time provided under section 
         290.06. The determination of the commissioner under 8.35this subdivision is not a rule under the Administrative Procedure Act.9.1EFFECTIVE DATE.This section is effective for refund claims based on taxes 9.2payable in 2014 and rent paid in 2013 and following years.9.3    Sec. 5. [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.9.4    Subdivision 1.Notification of eligibility.(a) By August 1, 2014, the commissioner 9.5shall notify, in writing or electronically, individual homeowners whom the commissioner 9.6determines likely will be eligible for a homestead credit refund under this chapter for 9.7that property taxes payable year. In determining whether to notify a homeowner, the 9.8commissioner shall consider the property tax information available to the commissioner 9.9under paragraph (b) and the most recent income information available to the commissioner 9.10from filing under this chapter for the prior year or under chapter 290 for the current or 9.11prior year. The notification must include information on how to file for the homestead 9.12credit refund and the range of potential homestead credit refunds that the homeowner 9.13could qualify to receive. The notification requirement under this section does not apply 9.14to a homeowner who has already filed for the homestead credit refund for the current 9.15or prior year.9.16    (b) By May 15, 2014, each county auditor shall transmit to the commissioner 9.17of revenue the following information for each property classified as a residential or 9.18agricultural homestead under section 273.13, subdivision 22 or 23:9.19    (1) the property taxes payable;9.20    (2) the name and address of the owner;9.21    (3) the Social Security number or numbers of the owners; and9.22    (4) any other information the commissioner deems necessary or useful to carry 9.23out the provisions of this section.9.24The information must be provided in the form and manner prescribed by the commissioner.9.25    Subd. 2.Report.By March 15, 2015, the commissioner must provide written 9.26reports to the chairs and ranking minority members of the legislative committees with 9.27jurisdiction over taxes, in compliance with Minnesota Statutes, sections 3.195 and 3.197. 9.28The report must provide information on the number and dollar amount of homeowner 9.29property tax refund claims based on taxes payable in 2014, including:9.30    (i) the number and dollar amount of claims projected for homestead credit refunds 9.31based on taxes payable in 2014 prior to enactment of the notification requirement in 9.32this section;9.33    (ii) the number of notifications issued as provided in this section, including the 9.34number issued by county;10.1    (iii) the number and dollar amount of claims for homestead credit refunds based on 10.2taxes payable in 2014 processed through December 31, 2014; and10.3    (iv) a description of any outreach efforts undertaken by the commissioner for 10.4homestead credit refunds based on taxes payable in 2014, in addition to the notification 10.5required in this section.10.6EFFECTIVE DATE.This section is effective for refund claims based on property 10.7taxes payable in 2014.10.8ARTICLE 210.9PROPERTY TAX AIDS AND CREDITS10.10    Section 1. Minnesota Statutes 2012, section 69.021, is amended by adding a 10.11subdivision to read:10.12    Subd. 12.Surcharge aid accounts.(a) A surcharge fire pension aid account is 10.13established in the special revenue fund to receive amounts as provided under section 10.14297I.07, subdivision 3, clause (1). The commissioner shall administer the account and 10.15allocate money in the account as follows:10.16    (1) 17.342 percent as supplemental state pension funding paid to the executive 10.17director of the Public Employees Retirement Association for deposit in the public 10.18employees police and fire retirement fund established by section 353.65, subdivision 1;10.19    (2) 8.658 percent to municipalities employing firefighters with retirement coverage 10.20by the public employees police and fire retirement plan, allocated in proportion to the 10.21relationship that the preceding December 31 number of firefighters employed by each 10.22municipality who have public employees police and fire retirement plan coverage bears to 10.23the total preceding December 31 number of municipal firefighters covered by the public 10.24employees police and fire retirement plan; and10.25    (3) 74 percent for municipalities other than the municipalities receiving a 10.26disbursement under clause (2) which qualified to receive fire state aid in that calendar year, 10.27allocated in proportion to the most recent amount of fire state aid paid under subdivision 7 10.28for the municipality bears to the most recent total fire state aid for all municipalities other 10.29than the municipalities receiving a disbursement under clause (2) paid under subdivision 10.307, with the allocated amount for fire departments participating in the voluntary statewide 10.31lump-sum volunteer firefighter retirement plan paid to the executive director of the Public 10.32Employees Retirement Association for deposit in the fund established by section 353G.02, 10.33subdivision 3, and credited to the respective account and with the balance paid to the 11.1treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of 11.2the applicable volunteer firefighter relief association for deposit in its special fund.11.3    (b) A surcharge police pension aid account is established in the special revenue 11.4fund to receive amounts as provided by section 297I.07, subdivision 3, clause (2). The 11.5commissioner shall administer the account and allocate money in the account as follows:11.6    (1) one-third to be distributed as police state aid as provided under subdivision 7a; and11.7    (2) two-thirds to be apportioned, on the basis of the number of active police officers 11.8certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:11.9    (i) the executive director of the Public Employees Retirement Association for 11.10deposit as a supplemental state pension funding aid in the public employees police and fire 11.11retirement fund established by section 353.65, subdivision 1; and11.12    (ii) the executive director of the Minnesota State Retirement System for deposit as a 11.13supplemental state pension funding aid in the state patrol retirement fund.11.14    (c) On or before September 1, annually, the executive director of the Public 11.15Employees Retirement Association shall report to the commissioner the following:11.16    (1) the municipalities which employ firefighters with retirement coverage by the 11.17public employees police and fire retirement plan;11.18    (2) the number of firefighters with public employees police and fire retirement plan 11.19employed by each municipality;11.20    (3) the fire departments covered by the voluntary statewide lump-sum volunteer 11.21firefighter retirement plan; and11.22    (4) any other information requested by the commissioner to administer the surcharge 11.23fire pension aid account.11.24    (d) For this subdivision, (i) the number of firefighters employed by a municipality 11.25who have public employees police and fire retirement plan coverage means the number 11.26of firefighters with public employees police and fire retirement plan coverage that were 11.27employed by the municipality for not less than 30 hours per week for a minimum of six 11.28months prior to December 31 preceding the date of the payment under this section and, if 11.29the person was employed for less than the full year, prorated to the number of full months 11.30employed; and, (ii) the number of active police officers certified for police state aid receipt 11.31under section 69.011, subdivisions 2 and 2b means, for each municipality, the number of 11.32police officers meeting the definition of peace officer in section 69.011, subdivision 1, 11.33counted as provided and limited by section 69.011, subdivisions 2 and 2b.11.34    (e) The payments under this section shall be made on October 1 each year, based 11.35on the amount in the surcharge fire pension aid account and the amount in the surcharge 11.36police pension aid account on the preceding June 30, with interest at 1 percent for each 12.1month, or portion of a month, that the amount remains unpaid after October 1. The 12.2amounts necessary to make the payments under this subdivision are annually appropriated 12.3to the commissioner from the surcharge fire and police pension aid accounts. Any 12.4necessary adjustments shall be made to subsequent payments.12.5    (f) The provisions of this chapter that prevent municipalities and relief associations 12.6from being eligible for, or receiving state aid under this chapter until the applicable 12.7financial reporting requirements have been complied with, apply to the amounts payable 12.8to municipalities and relief associations under this subdivision.12.9    (g) The amounts necessary to make the payments under this subdivision are 12.10appropriated to the commissioner from the respective accounts in the special revenue fund.12.11EFFECTIVE DATE.This section is effective beginning in the fiscal year beginning 12.12July 1, 2013.12.13    Sec. 2. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:12.14    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 12.15contiguous acres for which the owner has implemented a forest management plan that was 12.16prepared or updated within the past ten years by an approved plan writer. For purposes of 12.17this subdivision, acres are considered to be contiguous even if they are separated by a road, 12.18waterway, railroad track, or other similar intervening property. At least 50 percent of the 12.19contiguous acreage must meet the definition of forest land in section 
         88.01, subdivision 7. 12.20For the purposes of sections 
         290C.01 to 
         290C.11, forest land does not include the following:12.21    (i) land used for residential or agricultural purposes,;12.22    (ii) land enrolled in the reinvest in Minnesota program, a state or federal conservation 12.23reserve or easement reserve program under sections 
         103F.501 to 
         103F.531, the Minnesota 12.24agricultural property tax law under section 
         273.111, or land subject to agricultural land 12.25preservation controls or restrictions as defined in section 
         40A.02 or under the Metropolitan 12.26Agricultural Preserves Act under chapter 473H, or;12.27    (iii) land subject to a conservation easement funded under section 97A.056 or a 12.28comparable permanent easement conveyed to a governmental or nonprofit entity; or12.29    (iv) land improved with a structure, pavement, sewer, campsite, or any road, other 12.30than a township road, used for purposes not prescribed in the forest management plan.12.31EFFECTIVE DATE.This section is effective for payments made beginning in 12.32calendar year 2014.13.1    Sec. 3. Minnesota Statutes 2012, section 290C.05, is amended to read:13.2290C.05 ANNUAL CERTIFICATION.13.3    On or before July 1 of each year, beginning with the year after the original claimant 13.4has received an approved application, the commissioner shall send each claimant enrolled 13.5under the sustainable forest incentive program a certification form. For purposes of this 13.6section, the original claimant is the person that filed the first application under section 13.7290C.04
          to enroll the land in the program. The claimant must sign the certification, 13.8attesting that the requirements and conditions for continued enrollment in the program are 13.9currently being met, and must return the signed certification form, along with a copy of 13.10the property tax statement for the property taxes payable on the enrolled property for the 13.11calendar year and any other information the commissioner deems necessary to determine 13.12whether the property is qualified under section 290C.02, subdivision 6, or the amount of 13.13the payment under section 290C.07, paragraph (a), clause (2), to the commissioner by 13.14August 15 of that same year. If the claimant does not return an annual certification form 13.15by the due date, the provisions in section 
         290C.11 apply.13.16EFFECTIVE DATE.This section is effective for payments made beginning in 13.17calendar year 2014.13.18    Sec. 4. Minnesota Statutes 2012, section 290C.07, is amended to read:13.19290C.07 CALCULATION OF INCENTIVE PAYMENT.13.20    (a) An approved claimant under the sustainable forest incentive program is eligible 13.21to receive an annual payment. The payment shall be equal to the lesser of (1) $7 per acre13.22 or (2) one-half of the property tax payable for the calendar year for each acre enrolled in 13.23the sustainable forest incentive program.13.24    (b) The annual payment for each Social Security number or state or federal business 13.25tax identification number must not exceed $100,000.13.26EFFECTIVE DATE.This section is effective for payments made beginning in 13.27calendar year 2014.13.28    Sec. 5. [297I.07] SURCHARGE ON HOMEOWNERS AND AUTO POLICIES.13.29    Subdivision 1.Surcharge on policies.(a) Each licensed insurer engaged in writing 13.30insurance shall collect a surcharge equal to $5 per calendar year for each policy issued 13.31or renewed during that calendar year for:13.32    (1) homeowners insurance authorized in section 60A.06, subdivision 1, clause 13.33(1)(c); and14.1    (2) automobile insurance as defined in section 65B.14, subdivision 2.14.2    (b) The surcharge amount collected under this subdivision must not be considered 14.3premium for any other purpose. The surcharge amount must be separately stated on either a 14.4billing or policy declaration or document containing similar information sent to an insured.14.5    Subd. 2.Collection and administration.The commissioner shall administer the 14.6surcharge imposed by this section in the same manner as the taxes imposed by this chapter.14.7    Subd. 3.Deposit of revenues.The commissioner shall deposit revenues from the 14.8surcharge under this section as follows:14.9    (1) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause 14.10(1), in a surcharge fire pension aid account in the special revenue fund; and14.11    (2) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause 14.12(2), in a surcharge police pension aid account in the special revenue fund.14.13    Subd. 4.Surcharge termination.The surcharge imposed under subdivision 14.141 ends on the December 31 next following the actuarial valuation date on which the 14.15assets of the retirement plan on a market value equals or exceeds 90 percent of the total 14.16actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation 14.17prepared under section 356.215 and the Standards for Actuarial Work promulgated by the 14.18Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan 14.19or the public employees police and fire retirement plan, whichever occurs last.14.20EFFECTIVE DATE.This section is effective for policies issued after June 30, 2013.14.21    Sec. 6. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:14.22    Subd. 30. Pre-1940 housing percentage.(a) Except as provided in paragraph (b), 14.23"pre-1940 housing percentage" for a city is 100 times the most recent federal census count 14.24by the United States Bureau of the Census of all housing units in the city built before 14.251940, divided by the total number of all housing units in the city. Housing units includes 14.26both occupied and vacant housing units as defined by the federal census.14.27    (b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal 14.28to 100 times the 1990 federal census count of all housing units in the city built before 14.291940, divided by the most recent count by the United States Bureau of the Census of all 14.30housing units in the city. Housing units includes both occupied and vacant housing units 14.31as defined by the federal census.14.32EFFECTIVE DATE.This section is effective for aids payable in calendar year 14.332014 and thereafter.15.1    Sec. 7. Minnesota Statutes 2012, section 477A.011, is amended by adding a 15.2subdivision to read:15.3    Subd. 30a.Percent of housing built between 1940 and 1970."Percent of housing 15.4built between 1940 and 1970" is equal to 100 times the most recent count by the United 15.5States Bureau of the Census of all housing units in the city built after 1939 but before 15.61970, divided by the total number of all housing units in the city. Housing units includes 15.7both occupied and vacant housing units as defined by the federal census.15.8EFFECTIVE DATE.This section is effective for aids payable in calendar year 15.92014 and thereafter.15.10    Sec. 8. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:15.11    Subd. 34. City revenue need. (a) For a city with a population equal to or greater 15.12than 2,500 10,000, "city revenue need" is the greater of 285 or 1.15 times the sum of (1) 15.135.0734098 4.59 times the pre-1940 housing percentage; plus (2) 19.141678 times the 15.14population decline percentage 0.622 times the percent of housing built between 1940 and 15.151970; plus (3) 2504.06334 times the road accidents factor 169.415 times the jobs per 15.16capita; plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638 15.17times the household size 307.664.15.18    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, 15.19"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 15.20housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak 15.21population decline.15.22    (b) (c) For a city with a population less than 2,500, "city revenue need" is the sum of 15.23(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 15.24industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 15.251.206 times the transformed population; minus (5) 62.772 410 plus 0.367 times the city's 15.26population over 100. The city revenue need under this paragraph shall not exceed 630.15.27    (c) (d) For a city with a population of at least 2,500 or more and a population in one 15.28of the most recently available five years that was less than 2,500, "city revenue need" 15.29is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its 15.30transition factor; plus (2) its city revenue need calculated under the formula in paragraph 15.31(b) multiplied by the difference between one and its transition factor. For purposes of this 15.32paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that 15.33the city's population estimate has been 2,500 or more. This provision only applies for aids 15.34payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. 15.35It applies to any city for aids payable in 2009 and thereafter but less than 3,000, the "city 16.1revenue need" equals (1) the transition factor times the city's revenue need calculated in 16.2paragraph (b) plus (2) 630 times the difference between one and the transition factor. For 16.3a city with a population of at least 10,000 but less than 10,500, the "city revenue need" 16.4equals (1) the transition factor times the city's revenue need calculated in paragraph (a) 16.5plus (2) the city's revenue need calculated under the formula in paragraph (b) times the 16.6difference between one and the transition factor. For purposes of this paragraph "transition 16.7factor" is 0.2 percent times the amount that the city's population exceeds the minimum 16.8threshold in either of the first two sentences.16.9    (d) (e) The city revenue need cannot be less than zero.16.10    (e) (f) For calendar year 2005 2015 and subsequent years, the city revenue need for 16.11a city, as determined in paragraphs (a) to (d) (e), is multiplied by the ratio of the annual 16.12implicit price deflator for government consumption expenditures and gross investment for 16.13state and local governments as prepared by the United States Department of Commerce, 16.14for the most recently available year to the 2003 2013 implicit price deflator for state 16.15and local government purchases.16.16EFFECTIVE DATE.This section is effective for aids payable in calendar year 16.172014 and thereafter.16.18    Sec. 9. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:16.19    Subd. 42. City jobs base Jobs per capita.(a) "City jobs base" for a city with a 16.20population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of 16.21jobs per capita in the city, and (3) its population. For cities with a population less than 16.225,000, the city jobs base is equal to zero. For a city receiving aid under subdivision 36, 16.23paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of 16.24aid received under that paragraph or $1,000,000. No city's city jobs base may exceed 16.25$4,725,000 under this paragraph.16.26    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as 16.27determined in paragraph (a), is multiplied by the ratio of the appropriation under section 16.28477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under 16.29that section for aids payable in 2009.16.30    (c) For purposes of this subdivision, "Jobs per capita in the city" means (1) the 16.31average annual number of employees in the city based on the data from the Quarterly 16.32Census of Employment and Wages, as reported by the Department of Employment and 16.33Economic Development, for the most recent calendar year available as of May 1, 200816.34 November 1 of every odd-numbered year, divided by (2) the city's population for the 16.35same calendar year as the employment data. The commissioner of the Department of 17.1Employment and Economic Development shall certify to the city the average annual 17.2number of employees for each city by June 1, 2008 January 15, of every even-numbered 17.3year beginning with January 15, 2014. A city may challenge an estimate under this 17.4paragraph by filing its specific objection, including the names of employers that it feels 17.5may have misreported data, in writing with the commissioner by June 20, 2008 December 17.61 of every odd-numbered year. The commissioner shall make every reasonable effort 17.7to address the specific objection and adjust the data as necessary. The commissioner 17.8shall certify the estimates of the annual employment to the commissioner of revenue by 17.9July 15, 2008 January 15 of all even-numbered years, including any estimates still under 17.10objection. For aids payable in 2014, "jobs per capita" shall be based on the annual number 17.11of employees and population for calendar year 2010 without additional review.17.12EFFECTIVE DATE.This section is effective for aids payable in calendar year 17.132014 and thereafter.17.14    Sec. 10. Minnesota Statutes 2012, section 477A.011, is amended by adding a 17.15subdivision to read:17.16    Subd. 44.Peak population decline."Peak population decline" is equal to 100 17.17times the difference between one and the ratio of the city's current population, to the 17.18highest city population reported in a federal census from the 1970 census or later. "Peak 17.19population decline" shall not be less than zero.17.20EFFECTIVE DATE.This section is effective for aids payable in calendar year 17.212014 and thereafter.17.22    Sec. 11. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:17.23    Subd. 8. City formula aid.(a) For aids payable in 2014 only, the formula aid for 17.24a city is equal to the lesser of its unmet need or the sum of (1) its 2013 certified aid and 17.25(2) the product of (i) the difference between its unmet need and its 2013 certified aid 17.26and (ii) the aid gap percentage.17.27    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to 17.28the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 17.29percentage multiplied by the average of its unmet need for the most recently available two 17.30years formula aid in the previous year and (2) the product of (i) the difference between 17.31its unmet need and its certified aid in the previous year under subdivision 9, and (ii) 17.32the aid gap percentage.18.1No city may have a formula aid amount less than zero. The need increase aid gap18.2 percentage must be the same for all cities.18.3    The applicable need increase aid gap percentage must be calculated by the 18.4Department of Revenue so that the total of the aid under subdivision 9 equals the total 18.5amount available for aid under section 
         477A.03. Data used in calculating aids to cities 18.6under sections 
         477A.011 to 
         477A.013 shall be the most recently available data as of 18.7January 1 in the year in which the aid is calculated except that the data used to compute "net 18.8levy" in subdivision 9 is the data most recently available at the time of the aid computation.18.9EFFECTIVE DATE.This section is effective for aids payable in calendar year 18.102014 and thereafter.18.11    Sec. 12. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:18.12    Subd. 9. City aid distribution. (a) In calendar year 2013 2014 and thereafter, each 18.13city shall receive an aid distribution equal to the sum of (1) the city formula aid under 18.14subdivision 8, and (2) its city aid base aid adjustment under subdivision 13.18.15    (b) For aids payable in 2013 and 2014 only, the total aid in the previous year for 18.16any city shall mean the amount of aid it was certified to receive for aids payable in 2012 18.17under this section. For aids payable in 2015 and thereafter, the total aid in the previous 18.18year for any city means the amount of aid it was certified to receive under this section in 18.19the previous payable year.18.20    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed 18.21the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution 18.22plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total 18.23aid for any city with a population of 2,500 or more may not be less than its total aid under 18.24this section in the previous year minus the lesser of $10 multiplied by its population, or ten 18.25percent of its net levy in the year prior to the aid distribution.18.26    (d) (b) For aids payable in 2014 only, the total aid for a city may not be less than the 18.27amount it was certified to receive in 2013. For aids payable in 2010 2015 and thereafter, 18.28the total aid for a city with a population less than 2,500 must not be less than the amount 18.29it was certified to receive in the previous year minus the lesser of $10 multiplied by its 18.30population, or five percent of its 2003 certified aid amount. For aids payable in 2009 only, 18.31the total aid for a city with a population less than 2,500 must not be less than what it 18.32received under this section in the previous year unless its total aid in calendar year 2008 18.33was aid under section 477A.011, subdivision 36, paragraph (s), in which case its minimum 18.34aid is zero its net levy in the year prior to the aid distribution.19.1    (e) A city's aid loss under this section may not exceed $300,000 in any year in 19.2which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or 19.3greater than the appropriation under that subdivision in the previous year, unless the 19.4city has an adjustment in its city net tax capacity under the process described in section 19.5469.174, subdivision 28.19.6    (f) If a city's net tax capacity used in calculating aid under this section has decreased 19.7in any year by more than 25 percent from its net tax capacity in the previous year due to 19.8property becoming tax-exempt Indian land, the city's maximum allowed aid increase 19.9under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 19.10year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 19.11resulting from the property becoming tax exempt.19.12EFFECTIVE DATE.This section is effective for aids payable in calendar year 19.132014 and thereafter.19.14    Sec. 13. Minnesota Statutes 2012, section 477A.013, is amended by adding a 19.15subdivision to read:19.16    Subd. 13.Certified aid adjustments.(a) A city that received an aid base increase 19.17under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall 19.18have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids 19.19payable in 2014 through 2018.19.20    (b) A city that received a temporary aid increase under Minnesota Statutes 2012, 19.21section 477A.011, subdivision 36, paragraph (m), (v), or (w), shall have its total aid under 19.22subdivision 9 decreased by the amount of its aid base increase under those paragraphs in 19.23calendar year 2013.19.24    Sec. 14. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:19.25    Subd. 2a. Cities. For aids payable in 2013 2014 and thereafter, the total aid paid 19.26under section 
         477A.013, subdivision 9, is $426,438,012 $486,438,012, multiplied by the 19.27inflation adjustment under subdivision 6.19.28EFFECTIVE DATE.This section is effective for aids payable in calendar year 19.292014 and thereafter.19.30    Sec. 15. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:19.31    Subd. 2b. Counties. (a) For aids payable in 2013 2014 and thereafter, the total aid 19.32payable under section 
         477A.0124, subdivision 3, is $80,795,000 $95,795,000. Each 20.1calendar year, $500,000 of this appropriation shall be retained by the commissioner 20.2of revenue to make reimbursements to the commissioner of management and budget 20.3for payments made under section 
         611.27. For calendar year 2004, the amount shall 20.4be in addition to the payments authorized under section 477A.0124, subdivision 1. 20.5For calendar year 2005 and subsequent years, the amount shall be deducted from the 20.6appropriation under this paragraph. The reimbursements shall be to defray the additional 20.7costs associated with court-ordered counsel under section 
         611.27. Any retained amounts 20.8not used for reimbursement in a year shall be included in the next distribution of county 20.9need aid that is certified to the county auditors for the purpose of property tax reduction 20.10for the next taxes payable year.20.11    (b) For aids payable in 2013 2014 and thereafter, the total aid under section 20.12477A.0124, subdivision 4
         , is $84,909,575 $99,909,575. The commissioner of management 20.13and budget shall bill the commissioner of revenue for the cost of preparation of local impact 20.14notes as required by section 
         3.987, not to exceed $207,000 in each fiscal year 2004 and 20.15thereafter. The commissioner of education shall bill the commissioner of revenue for the 20.16cost of preparation of local impact notes for school districts as required by section 
         3.987, 20.17not to exceed $7,000 in each fiscal year 2004 and thereafter. The commissioner of revenue 20.18shall deduct the amounts billed under this paragraph from the appropriation under this 20.19paragraph. The amounts deducted are appropriated to the commissioner of management 20.20and budget and the commissioner of education for the preparation of local impact notes.20.21EFFECTIVE DATE.This section is effective for aid payable in 2014 and thereafter.20.22    Sec. 16. Minnesota Statutes 2012, section 477A.03, is amended by adding a 20.23subdivision to read:20.24    Subd. 6.Inflation adjustment.In 2015 and thereafter, the amount paid under 20.25subdivision 2a shall be increased by an amount equal to one plus the sum of (1) the 20.26percentage increase in the implicit price deflator for government expenditures and gross 20.27investment for state and local government purchases as prepared by the United States 20.28Department of Commerce, for the 12-month period ending March 31 of the previous 20.29calendar year, and (2) the percentage increase in total city population for the most recently 20.30available years as of January 15 of the current year. The percentage increase in this 20.31subdivision shall not be less than 2.5 percent or greater than five percent.20.32EFFECTIVE DATE.This section is effective for aids payable in calendar year 20.332014 and thereafter.21.1    Sec. 17.  REPEALER.21.2(a) Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33, 21.336, 39, 40, 41, and 42; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, are 21.4repealed.21.5(b) Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter 21.6154, article 1, section 4, is repealed.21.7EFFECTIVE DATE.This section is effective for aids payable in calendar year 21.82014 and thereafter.21.9ARTICLE 321.10PROPERTY TAXES21.11    Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to 21.12read:21.13    Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall 21.14evaluate performance, financial, and activity information for each local water management 21.15entity. The board shall evaluate the entities' progress in accomplishing their adopted plans 21.16on a regular basis as determined by the board based on budget and operations of the local 21.17water management entity, but not less than once every five ten years. The board shall 21.18maintain a summary of local water management entity performance on the board's Web site. 21.19Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis 21.20of local water management entity performance to the chairs of the house of representatives 21.21and senate committees having jurisdiction over environment and natural resources policy.21.22    Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:21.23103B.335 TAX LEVY AUTHORITY.21.24    Subdivision 1. Local water planning and management. The governing body of 21.25any county, municipality, or township may levy a tax in an amount required to implement 21.26sections 
         103B.301 to 
         103B.355 or a comprehensive watershed management plan as 21.27defined in section 103B.3363.21.28    Subd. 2. Priority programs; conservation and watershed districts. A county 21.29may levy amounts necessary to pay the reasonable increased costs to soil and water 21.30conservation districts and watershed districts of administering and implementing priority 21.31programs identified in an approved and adopted plan or a comprehensive watershed 21.32management plan as defined in section 103B.3363.22.1    Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:22.2    Subd. 5. Financial assistance. A base grant may be awarded to a county that 22.3provides a match utilizing a water implementation tax or other local source. A water 22.4implementation tax that a county intends to use as a match to the base grant must be 22.5levied at a rate sufficient to generate a minimum amount determined by the board. 22.6The board may award performance-based grants to local units of government that are 22.7responsible for implementing elements of applicable portions of watershed management 22.8plans, comprehensive plans, local water management plans, or comprehensive watershed 22.9management plans, developed or amended, adopted and approved, according to chapter 22.10103B, 103C, or 103D. Upon request by a local government unit, the board may also 22.11award performance-based grants to local units of government to carry out TMDL 22.12implementation plans as provided in chapter 114D, if the TMDL implementation plan has 22.13been incorporated into the local water management plan according to the procedures for 22.14approving comprehensive plans, watershed management plans, local water management 22.15plans, or comprehensive watershed management plans under chapter 103B, 103C, or 22.16103D, or if the TMDL implementation plan has undergone a public review process. 22.17Notwithstanding section 
         16A.41, the board may award performance-based grants on an 22.18advanced basis. The fee authorized in section 40A.152 may be used as a local match 22.19or as a supplement to state funding to accomplish implementation of comprehensive 22.20plans, watershed management plans, local water management plans, or comprehensive 22.21watershed management plans under chapter 103B, 103C, or 103D.22.22    Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:22.23    Subd. 4. Cost-sharing funds. (a) The state board shall allocate at least 70 percent 22.24of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality 22.25problems or water quantity problems due to altered hydrology. The areas must be selected 22.26based on the statewide priorities established by the state board. 22.27    (b) The allocated funds must be used for conservation practices for high priority 22.28problems identified in the comprehensive and annual work plans of the districts, for 22.29the technical assistance portion of the grant funds to leverage federal or other nonstate 22.30funds, or to address high-priority needs identified in local water management plans or 22.31comprehensive watershed management plans.22.32    (b) The remaining cost-sharing funds may be allocated to districts as follows:22.33    (1) for technical and administrative assistance, not more than 20 percent of the 22.34funds; and23.1    (2) for conservation practices for lower priority erosion, sedimentation, or water 23.2quality problems.23.3    Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:23.4    Subdivision 1. Authority. Each statutory or home rule charter city, town, or 23.5county that has planning and zoning authority under sections 
         366.10 to 
         366.19, 
         394.2123.6to 
         394.37, or 
         462.351 to 
         462.365 is encouraged to adopt a soil loss ordinance. The soil 23.7loss ordinance must use the soil loss tolerance for each soil series described in the United 23.8States SoilNatural Resources Conservation Service Field Office Technical Guide, or 23.9another method approved by the Board of Water and Soil Resources, to determine the 23.10soil loss limits, but the soil loss limits must be attainable by the best practicable soil 23.11conservation practice. Ordinances adopted by local governments within the metropolitan 23.12area defined in section 473.121 must be consistent with local water management plans 23.13adopted under section 103B.235 a comprehensive plan, local water management plan, or 23.14watershed management plan developed or amended, adopted and approved, according 23.15to chapter 103B, 103C, or 103D.23.16    Sec. 6. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision 23.17to read:23.18    Subd. 98.Certain property owned by an Indian tribe.(a) Property is exempt that:23.19    (1) was classified as 3a under section 273.13, subdivision 24, for taxes payable 23.20in 2013;23.21    (2) is located in a city of the first class with a population greater than 300,000 as of 23.22the 2010 federal census;23.23    (3) is owned and occupied directly or indirectly by a federally recognized Indian 23.24tribe within the state of Minnesota; and23.25    (4) is used exclusively for tribal purposes or institutions of public charity as defined 23.26in subdivision 7.23.27    (b) For purposes of this subdivision, a "tribal purpose" is a public purpose as defined 23.28in subdivision 8 and includes noncommercial tribal government activities. Property 23.29that qualifies for the exemption under this subdivision is limited to no more than two 23.30contiguous parcels and structures that do not exceed in the aggregate 20,000 square feet. 23.31Property acquired for single-family housing, market-rate apartments, agriculture, or 23.32forestry does not qualify for this exemption. The exemption created by this subdivision 23.33expires with taxes payable in 2024.23.34EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.24.1    Sec. 7. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision 24.2to read:24.3    Subd. 99.Public entertainment facility; property tax exemption; special 24.4assessment.Any real or personal property acquired, owned, leased, controlled, used, 24.5or occupied by a first class city for the primary purpose of providing an arena for a 24.6professional basketball team is declared to be acquired, owned, leased, controlled, used, 24.7and occupied for public, governmental, and municipal purposes, and is exempt from ad 24.8valorem taxation by the state or any political subdivision of the state, provided that the 24.9properties are subject to special assessments levied by a political subdivision for a local 24.10improvement in amounts proportionate to and not exceeding the special benefit received 24.11by the properties from the improvement. In determining the special benefit received by 24.12the properties, no possible use of any of the properties in any manner different from their 24.13intended use for providing a professional basketball arena at the time may be considered. 24.14Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property subject 24.15to a lease or use agreement between the city and another person for uses related to the 24.16purposes of the operation of the arena is exempt from taxation regardless of the length of 24.17the lease or use agreement. This section, insofar as it provides an exemption or special 24.18treatment, does not apply to any real property that is leased for residential, business, or 24.19commercial development, or to a restaurant that is open for general business more than 24.20200 days a year, or for other purposes different from those necessary to the provision 24.21and operation of the arena.24.22EFFECTIVE DATE.This section is effective beginning with assessment year 2013.24.23    Sec. 8. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision 24.24to read:24.25    Subd. 100.Public entertainment facility; property tax exemption; special 24.26assessment.Any real or personal property acquired, owned, leased, controlled, used, 24.27or occupied by a first class city for the primary purpose of providing a ball park for a 24.28minor league baseball team is declared to be acquired, owned, leased, controlled, used, 24.29and occupied for public, governmental, and municipal purposes, and is exempt from ad 24.30valorem taxation by the state or any political subdivision of the state, provided that the 24.31properties are subject to special assessments levied by a political subdivision for a local 24.32improvement in amounts proportionate to and not exceeding the special benefit received 24.33by the properties from the improvement. In determining the special benefit received by 24.34the properties, no possible use of any of the properties in any manner different from 24.35their intended use for providing a minor league ballpark at the time may be considered. 25.1Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property 25.2subject to a lease or use agreement between the city and another person for uses related to 25.3the purposes of the operation of the ballpark and related parking facilities is exempt from 25.4taxation regardless of the length of the lease or use agreement. This section, insofar as it 25.5provides an exemption or special treatment, does not apply to any real property that is 25.6leased for residential, business, or commercial development or other purposes different 25.7from those necessary to the provision and operation of the ball park.25.8EFFECTIVE DATE.This section is effective beginning with assessment year 2013.25.9    Sec. 9. Minnesota Statutes 2012, section 273.11, is amended by adding a subdivision to 25.10read:25.11    Subd. 24.Valuation limit for class 4d property.Notwithstanding the provisions of 25.12subdivision 1, the taxable value of any property classified as class 4d under section 273.13, 25.13subdivision 25, is limited as provided under this section. For assessment year 2013, the 25.14value may not exceed $100,000 times the number of dwelling units. For subsequent years, 25.15the limit is adjusted each year by the average statewide change in estimated market value 25.16of property classified as class 4a and 4d under section 273.13, subdivision 25, for the 25.17previous assessment year, excluding valuation change due to new construction, rounded to 25.18the nearest $1,000. Beginning with assessment year 2014, the commissioner of revenue 25.19must certify the limit for each assessment year by November 1 of the previous year.25.20EFFECTIVE DATE.This section is effective beginning with assessment year 2013.25.21    Sec. 10. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:25.22    Subdivision 1. Due dates; penalties. Except as provided in subdivision subdivisions25.23 3 or 4 to 5, on May 16 or 21 days after the postmark date on the envelope containing the 25.24property tax statement, whichever is later, a penalty accrues and thereafter is charged upon 25.25all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The 25.26penalty is at a rate of two percent on homestead property until May 31 and four percent on 25.27June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and 25.28eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days 25.29after the postmark date on the envelope containing the property tax statements, whichever 25.30is later, on commercial use real property used for seasonal residential recreational purposes 25.31and classified as class 1c or 4c, and on other commercial use real property classified as 25.32class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 25.33class 3a property is earned during the months of May, June, July, and August. In order for 26.1the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 26.2or 21 days after the postmark date on the envelope containing the property tax statement, 26.3whichever is later, without penalty, the owner of the property must attach an affidavit 26.4to the payment attesting to compliance with the income provision of this subdivision. 26.5Thereafter, for both homestead and nonhomestead property, on the first day of each month 26.6beginning July 1, up to and including October 1 following, an additional penalty of one 26.7percent for each month accrues and is charged on all such unpaid taxes provided that if the 26.8due date was extended beyond May 15 as the result of any delay in mailing property tax 26.9statements no additional penalty shall accrue if the tax is paid by the extended due date. If 26.10the tax is not paid by the extended due date, then all penalties that would have accrued if 26.11the due date had been May 15 shall be charged. When the taxes against any tract or lot 26.12exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark 26.13date on the envelope containing the property tax statement, whichever is later; and, if so 26.14paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 26.1516 following, without penalty; but, if not so paid, then a penalty of two percent accrues 26.16thereon for homestead property and a penalty of four percent on nonhomestead property. 26.17Thereafter, for homestead property, on the first day of November an additional penalty of 26.18four percent accrues and on the first day of December following, an additional penalty of 26.19two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 26.20property, on the first day of November and December following, an additional penalty of 26.21four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 26.22such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 26.23containing the property tax statement, whichever is later, the same may be paid at any time 26.24prior to October 16, with accrued penalties to the date of payment added, and thereupon 26.25no penalty attaches to the remaining one-half until October 16 following.26.26    This section applies to payment of personal property taxes assessed against 26.27improvements to leased property, except as provided by section 
         277.01, subdivision 3.26.28    A county may provide by resolution that in the case of a property owner that has 26.29multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 26.30installments as provided in this subdivision.26.31    The county treasurer may accept payments of more or less than the exact amount of 26.32a tax installment due. Payments must be applied first to the oldest installment that is due 26.33but which has not been fully paid. If the accepted payment is less than the amount due, 26.34payments must be applied first to the penalty accrued for the year or the installment being 26.35paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 27.1payment required as a condition for filing an appeal under section 
         278.03 or any other law, 27.2nor does it affect the order of payment of delinquent taxes under section 
         280.39.27.3    Sec. 11. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision 27.4to read:27.5    Subd. 5.Federal active service exception.In the case of a homestead property 27.6owned by an individual who is on federal active service, as defined in section 190.05, 27.7subdivision 5c, as a member of the National Guard or a reserve component, a six-month 27.8grace period is granted for complying with the due dates imposed by subdivision 1. During 27.9this period, no late fees or penalties shall accrue against the property. The due date for 27.10property taxes owed under this chapter for an individual covered by this subdivision shall 27.11be November 16 for taxes due on May 16, and April 16 of the following year for taxes due 27.12on October 16. A taxpayer making a payment under this subdivision must accompany 27.13the payment with a signed copy of the taxpayer's orders or form DD214 showing the 27.14dates of active service which clearly indicate that the taxpayer was in active service as a 27.15member of the National Guard or a reserve component on the date the payment was due. 27.16This grace period applies to all homestead property owned by individuals on federal active 27.17service, as herein defined, for all of that property's due dates which fall on a day that is 27.18included in the taxpayer's federal active service.27.19    Sec. 12. Minnesota Statutes 2012, section 279.02, is amended to read:27.20279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.27.21    Subdivision 1.Delinquent property; rates. On the first business day in January, of 27.22each year, the county treasurer shall return the tax lists on hand to the county auditor, who 27.23shall compare the same with the statements receipted for by the treasurer on file in the 27.24auditor's office and each tract or lot of real property against which the taxes, or any part 27.25thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty 27.26of two percent on the amount of the original tax remaining unpaid shall immediately 27.27accrue and thereafter be charged upon all such delinquent taxes; and any auditor who 27.28shall make out and deliver any statement of delinquent taxes without including therein 27.29the penalties imposed by law, and any treasurer who shall receive payment of such taxes 27.30without including in such payment all items as shown on the auditor's statement, shall be 27.31liable to the county for the amounts of any items omitted.27.32    Subd. 2.Federal active service exception.Notwithstanding subdivision 1, a 27.33homestead property owned by an individual who is on federal active service, as defined 27.34in section 190.05, subdivision 5c, as a member of the National Guard or a reserve 28.1component, shall not be deemed delinquent under this section if the due dates imposed 28.2under section 279.01 fall on a day in which the individual was on federal active service.28.3    Sec. 13. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision 28.4to read:28.5    Subd. 10.Hennepin and Ramsey Counties.For properties located in Hennepin 28.6and Ramsey Counties, the county may impose an additional mortgage registry tax as 28.7defined in sections 383A.80 and 383B.80.28.8EFFECTIVE DATE.This section is effective the day following final enactment.28.9    Sec. 14. [287.40] HENNEPIN AND RAMSEY COUNTIES.28.10    For properties located in Hennepin and Ramsey Counties, the county may impose an 28.11additional deed tax as defined in sections 383A.80 and 383B.80.28.12EFFECTIVE DATE.This section is effective the day following final enactment.28.13    Sec. 15. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, 28.14article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter 28.15154, article 2, section 30, is amended to read:28.16    Sec. 3. TAX; PAYMENT OF EXPENSES.28.17    (a) The tax levied by the hospital district under Minnesota Statutes, section 
         447.34, 28.18must not be levied at a rate that exceeds the amount authorized to be levied under that 28.19section. The proceeds of the tax may be used for all purposes of the hospital district, 28.20except as provided in paragraph (b).28.21    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used 28.22solely by the Cook ambulance service and the Orr ambulance service for the purpose of 28.23capital expenditures as it relates to:28.24    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance 28.25service and not;28.26    (2) attached and portable equipment for use in and for the ambulances; and28.27    (3) parts and replacement parts for maintenance and repair of the ambulances.28.28The money may not be used for administrative, operation,  or salary expenses.28.29    (c) The part of the levy referred to in paragraph (b) must be administered by the 28.30Cook Hospital and passed on in equal amounts directly to the Cook area ambulance 28.31service board and the city of Orr to be held in trust until funding for a new ambulance is 29.1needed by either the Cook ambulance service or the Orr ambulance service used for the 29.2purposes in paragraph (b).29.3    Sec. 16. Laws 1999, chapter 243, article 6, section 11, is amended to read:29.4    Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.29.5    Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the 29.6Carlton county board of commissioners may annually levy in and for the unorganized 29.7township territory of Sawyer an amount up to $1,000 annually for cemetery purposes, 29.8beginning with taxes payable in 2000 and ending with taxes payable in 2009.29.9    Subd. 2.Effective date.This section is effective June 1, 1999, without local 29.10approval.29.11EFFECTIVE DATE; LOCAL APPROVAL.This section applies to taxes 29.12payable in 2014 and thereafter, and is effective the day after the Carlton county board 29.13of commissioners and its chief clerical officer timely complete their compliance with 29.14Minnesota Statutes, section 645.021, subdivisions 2 and 3.29.15    Sec. 17. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to 29.16read:29.17EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable in 29.182009, and is repealed effective for taxes levied in 2013 2018, payable in 2014 2019, 29.19and thereafter.29.20EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.29.21    Sec. 18. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to 29.22read:29.23EFFECTIVE DATE.This section is effective for assessment years year 2010 and 29.242011, for taxes payable in 2011 and 2012 thereafter.29.25EFFECTIVE DATE.This section is effective for assessment year 2012 and 29.26thereafter.29.27    Sec. 19. MINNEAPOLIS AND ST. PAUL; ENTERTAINMENT FACILITIES 29.28COORDINATION.30.1    (a) On or before January 1, 2015, the cities of St. Paul and Minneapolis shall establish 30.2a joint governing structure to coordinate and provide for joint marketing, promotion, and 30.3scheduling of conventions and events at the Target Center and Xcel Energy Center.30.4    (b) On or before February 1, 2014, the cities of St. Paul and Minneapolis, and 30.5representatives from the primary professional sports team tenant of each facility, shall also 30.6study and report to the legislature on creating a joint governing structure to provide for 30.7joint administration, financing, and operations of the facilities and the possible effects of 30.8joint governance on the finances of each facility and each city. The study under this 30.9paragraph must:30.10    (1) examine the current finances of each facility, including past and projected costs 30.11and revenues; projected capital improvements; and the current and projected impact 30.12of each facility on the city's general fund;30.13    (2) determine the impacts of joint governance on the future finances of each facility 30.14and city;30.15    (3) examine the inclusion of other entertainment venues in the joint governance, and 30.16the impact the inclusion of those facilities would have on all the facilities within the joint 30.17governing structure and the cities in which they are located; and30.18    (4) consider the amount of city, regional, and state funding, if any, that would be 30.19required to fund and operate the facilities under a joint governing structure.30.20    (c) In considering joint governing structures under paragraph (b), the study shall 30.21specifically consider the feasibility of joining the Target Center and the Xcel Energy 30.22Center, and possibly other venues, to the Minnesota Sports Facilities Authority under 30.23Minnesota Statutes, section 473J.08. 30.24    (d) Representatives of the cities and the primary professional sports team tenants 30.25of each facility shall meet within 30 days of the effective date of this section to begin 30.26implementation of this section.30.27EFFECTIVE DATE.This section is effective the day following final enactment 30.28upon compliance with the provisions of Minnesota Statutes, section 645.021, subdivisions 30.292 and 3, by the governing bodies of the cities of St. Paul and Minneapolis and their chief 30.30clerical officers, and provided that, notwithstanding the time limits under Minnesota 30.31Statutes, section 645.021, subdivision 3, the certificates of approval are filed with the 30.32secretary of state within 30 days after enactment of this act.30.33    Sec. 20. MORATORIUM ON CHANGES IN ASSESSMENT PRACTICE.31.1    (a) An assessor may not deviate from current practices or policies used generally in 31.2assessing or determining the taxable status of property used in the production of biofuels, 31.3wine, beer, distilled beverages, or dairy products.31.4    (b) An assessor may not change the taxable status of any existing property involved 31.5in the industrial processes identified in paragraph (a), unless the change is made as a result 31.6of a change in use of the property, or to correct an error. For currently taxable properties, 31.7the assessor may change the estimated market value of the property.31.8EFFECTIVE DATE.This section is effective for assessment year 2013 only.31.9    Sec. 21. STUDY AND REPORT ON CERTAIN PROPERTY USED IN 31.10BUSINESS AND PRODUCTION.31.11In order to provide the legislature with information on the assessment of property 31.12used in business and production activities, the commissioner of revenue must study the 31.13impact of the exception contained in Minnesota Statutes, section 272.03, subdivision 31.141(c)(iii). The commissioner must report a summary of findings and recommendations to 31.15the chairs and ranking minority members of the taxes committees of the senate and house 31.16of representatives by February 1, 2014.31.17EFFECTIVE DATE.This section is effective the day following final enactment.31.18    Sec. 22. REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS.31.19    Subdivision 1.Reimbursement.The commissioner of revenue shall reimburse 31.20taxing jurisdictions for property tax abatements granted in Hennepin County under Laws 31.212011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits 31.22contained in that section. The reimbursements must be made to each taxing jurisdiction 31.23pursuant to the certification of the Hennepin County auditor.31.24    Subd. 2.Appropriation.The amount necessary, not to exceed $400,000, is 31.25appropriated to the commissioner of revenue from the general fund to make the payments 31.26required under this section. This appropriation does not cancel but is available until June 31.2730, 2014.31.28EFFECTIVE DATE.This section is effective the day following final enactment.31.29    Sec. 23.  REPEALER.31.30(a) Minnesota Statutes 2012, sections 428A.101; and 428A.21, are repealed.31.31(b) Minnesota Statutes 2012, sections 383A.80, subdivision 4; and 383B.80, 31.32subdivision 4, are repealed.32.1EFFECTIVE DATE.This section is effective the day following final enactment, 32.2and paragraph (b) reinstates the authority for Hennepin and Ramsey Counties to impose 32.3the additional mortgage registry and deed tax effective for deeds and mortgages executed 32.4on or after July 1, 2013.32.5ARTICLE 432.6ECONOMIC DEVELOPMENT32.7    Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:32.8    Subd. 5. Exception; parking facilities. Notwithstanding section 
         469.068, the 32.9Bloomington port authority need not require competitive bidding with respect to a 32.10structured parking facility or other public improvements constructed in conjunction with, 32.11and directly above or below, or adjacent and integrally related to, a development and 32.12financed with the proceeds of tax increment or, revenue bonds, or other funds of the 32.13port authority and the city of Bloomington.32.14EFFECTIVE DATE.This section is effective upon compliance of the governing 32.15body of the city of Bloomington with the requirements of Minnesota Statutes, section 32.16645.021, subdivision 3.32.17    Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision 32.18to read:32.19    Subd. 19.Additional border city allocation; 2013.(a) In addition to the tax 32.20reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000 32.21for tax reductions to border city enterprise zones in cities located on the western border 32.22of the state. The commissioner shall allocate this amount among cities on a per capita 32.23basis. Allocations made under this subdivision may be used for tax reductions under 32.24section 469.171, or for other offsets of taxes imposed on or remitted by businesses located 32.25in the enterprise zone, but only if the municipality determines that the granting of the tax 32.26reduction or offset is necessary to retain a business within or attract a business to the zone. 32.27The city alternatively may elect to use any portion of the allocation under this paragraph 32.28for tax reductions under section 469.1732 or 469.1734.32.29    (b) The commissioner shall allocate $750,000 for tax reductions under section 32.30469.1732 or 469.1734 to cities with border city enterprise zones located on the western 32.31border of the state. The commissioner shall allocate this amount among the cities on a per 32.32capita basis. The city alternatively may elect to use any portion of the allocation provided 32.33in this paragraph for tax reductions under section 469.171.33.1EFFECTIVE DATE.This section is effective July 1, 2013.33.2    Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:33.3    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment 33.4from an economic development district may not be used to provide improvements, loans, 33.5subsidies, grants, interest rate subsidies, or assistance in any form to developments 33.6consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and 33.7facilities (determined on the basis of square footage) are used for a purpose other than:33.8    (1) the manufacturing or production of tangible personal property, including 33.9processing resulting in the change in condition of the property;33.10    (2) warehousing, storage, and distribution of tangible personal property, excluding 33.11retail sales;33.12    (3) research and development related to the activities listed in clause (1) or (2);33.13    (4) telemarketing if that activity is the exclusive use of the property;33.14    (5) tourism facilities; or33.15    (6) qualified border retail facilities; or33.16    (7) space necessary for and related to the activities listed in clauses (1) to (6) (5).33.17    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax 33.18increment from an economic development district may be used to provide improvements, 33.19loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 33.20square feet of any separately owned commercial facility located within the municipal 33.21jurisdiction of a small city, if the revenues derived from increments are spent only to 33.22assist the facility directly or for administrative expenses, the assistance is necessary to 33.23develop the facility, and all of the increments, except those for administrative expenses, 33.24are spent only for activities within the district.33.25    (c) A city is a small city for purposes of this subdivision if the city was a small city 33.26in the year in which the request for certification was made and applies for the rest of 33.27the duration of the district, regardless of whether the city qualifies or ceases to qualify 33.28as a small city.33.29    (d) Notwithstanding the requirements of paragraph (a) and the finding requirements 33.30of section 469.174, subdivision 12, tax increments from an economic development district 33.31may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or 33.32assistance in any form to developments consisting of buildings and ancillary facilities, if 33.33all the following conditions are met:33.34    (1) the municipality finds that the project will create or retain jobs in this state, 33.35including construction jobs, and that construction of the project would not have 34.1commenced before July 1, 2012, without the authority providing assistance under the 34.2provisions of this paragraph;34.3    (2) construction of the project begins no later than July 1, 2012;34.4    (3) the request for certification of the district is made no later than June 30, 2012; and34.5    (4) for development of housing under this paragraph, the construction must begin 34.6before January 1, 2012.34.7    The provisions of this paragraph may not be used to assist housing that is developed 34.8to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, 34.9if construction of the project begins later than July 1, 2011.34.10EFFECTIVE DATE.This section is effective for districts for which the request for 34.11certification was made after June 30, 2012.34.12    Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:34.13    Subd. 4g. General government use prohibited. (a) Tax increments may not be 34.14used to circumvent existing levy limit law.34.15    (b) No tax increment from any district may be used for the acquisition, construction, 34.16renovation, operation, or maintenance of a building to be used primarily and regularly 34.17for conducting the business of a municipality, county, school district, or any other local 34.18unit of government or the state or federal government. This provision does not prohibit 34.19the use of revenues derived from tax increments for the construction or renovation of 34.20a parking structure.34.21    (c)(1) Tax increments may not be used to pay for the cost of public improvements, 34.22equipment, or other items, if:34.23    (i) the improvements, equipment, or other items are located outside of the area of the 34.24tax increment financing district from which the increments were collected; and34.25    (ii) the improvements, equipment, or items that (A) primarily serve a decorative or 34.26aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than 34.27100 percent as a result of the selection of materials, design, or type as compared with more 34.28commonly used materials, designs, or types for similar improvements, equipment, or items.34.29    (2) The provisions of this paragraph do not apply to expenditures related to the 34.30rehabilitation of historic structures that are:34.31    (i) individually listed on the National Register of Historic Places; or34.32    (ii) a contributing element to a historic district listed on the National Register 34.33of Historic Places.35.1EFFECTIVE DATE.This section is effective the day following final enactment for 35.2all tax increment financing districts, regardless of when the request for certification was 35.3made, but applies only to amounts spent after final enactment.35.4    Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:35.5    Subd. 6. Action required. (a) If, after four years from the date of certification of 35.6the original net tax capacity of the tax increment financing district pursuant to section 35.7469.177
         , no demolition, rehabilitation, or renovation of property or other site preparation, 35.8including qualified improvement of a street adjacent to a parcel but not installation 35.9of utility service including sewer or water systems, has been commenced on a parcel 35.10located within a tax increment financing district by the authority or by the owner of the 35.11parcel in accordance with the tax increment financing plan, no additional tax increment 35.12may be taken from that parcel, and the original net tax capacity of that parcel shall be 35.13excluded from the original net tax capacity of the tax increment financing district. If the 35.14authority or the owner of the parcel subsequently commences demolition, rehabilitation, 35.15or renovation or other site preparation on that parcel including qualified improvement of 35.16a street adjacent to that parcel, in accordance with the tax increment financing plan, the 35.17authority shall certify to the county auditor that the activity has commenced, and the 35.18county auditor shall certify the net tax capacity thereof as most recently certified by the 35.19commissioner of revenue and add it to the original net tax capacity of the tax increment 35.20financing district. The county auditor must enforce the provisions of this subdivision. The 35.21authority must submit to the county auditor evidence that the required activity has taken 35.22place for each parcel in the district. The evidence for a parcel must be submitted by 35.23February 1 of the fifth year following the year in which the parcel was certified as included 35.24in the district. For purposes of this subdivision, qualified improvements of a street are 35.25limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) 35.26substantial reconstruction or rebuilding of an existing street.35.27    (b) For districts which were certified on or after January 1, 2005, and before April 35.2820, 2009, the four-year period under paragraph (a) is increased to six years deemed to end 35.29on December 31, 2016.35.30EFFECTIVE DATE.This section is effective the day following final enactment 35.31and applies to districts certified on or after January 1, 2006, and before April 20, 2009.35.32    Sec. 6. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision 35.33to read:36.1    Subd. 1d.Original net tax capacity adjustment; homestead market value 36.2exclusion.(a) Upon approval by the municipality, by resolution, the authority may elect 36.3to reduce the net tax capacity of a qualified district by the amount of the tax capacity 36.4attributable to the market value exclusion under section 273.13, subdivision 35. The 36.5amount of the reduction may not reduce the original net tax capacity below zero.36.6    (b) For purposes of this subdivision, a qualified district means a tax increment 36.7financing district that satisfies the following conditions:36.8    (1) for taxes payable in 2011, the authority received a homestead market value credit 36.9reimbursement under section 273.1384 for the district of $10,000 or more;36.10    (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from 36.11the market value exclusion for the district was equal to or greater than 1.75 percent of the 36.12district's captured tax capacity; and36.13    (3) either (i) the authority is permitted to expend increments on activities under the 36.14provisions of section 469.1763, subdivision 3, or an equivalent provision of special law 36.15on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012 36.16exceeded the amount of debt service payments due during calendar year 2012 on bonds 36.17issued under section 469.178 to which the district's increments are pledged.36.18The calculation of the amount under clause (2) must reflect any adjustments to original 36.19net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead 36.20market value exclusion.36.21    (c) The authority must notify the county auditor of its election under this section no 36.22later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for 36.23taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning 36.24for taxes payable in 2015.36.25EFFECTIVE DATE.This section is effective the day following final enactment 36.26and applies to all tax increment financing districts regardless of when the request for 36.27certification was made.36.28    Sec. 7. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision 36.29to read:36.30    Subd. 3c.Mall of America.(a) When computing the net tax capacity under section 36.31473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax 36.32Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington.36.33    (b) Notwithstanding the provisions of subdivision 2, paragraph (a), the 36.34commercial-industrial contribution percentage for the city of Bloomington is the 37.1contribution net tax capacity divided by the total net tax capacity of commercial-industrial 37.2property in the city, excluding any commercial-industrial property that is captured tax 37.3capacity of Tax Increment Financing Districts No. 1-C and No. 1-G.37.4    (c) The property taxes to be paid on commercial-industrial tax capacity that is 37.5included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and 37.6No. 1-G in the city of Bloomington must be determined as described in subdivision 6, 37.7except that the portion of the tax that is based on the areawide tax rate is to be treated 37.8as tax increment under section 469.176.37.9    (d) The provisions of this subdivision take effect only if the clerk of the city of 37.10Bloomington certifies to the Hennepin County auditor that the city has entered into a 37.11binding written agreement with the Metropolitan Council to repair and restore, or to 37.12replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.37.13    (e) This subdivision expires on the earliest of the following dates:37.14    (1) when the tax increment financing districts have been decertified in 2024 or 2034, 37.15as provided by section 10, subdivision 2 or 4; or37.16    (2) on January 1, 2014, if the city clerk fails to make the certification provided in 37.17paragraph (d).37.18EFFECTIVE DATE.This section is effective beginning for property taxes payable 37.19in 2014.37.20    Sec. 8. Laws 2008, chapter 366, article 5, section 26, is amended to read:37.21    Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR 37.22RULE.37.23    (a) The requirements of Minnesota Statutes, section 
         469.1763, subdivision 3, that 37.24activities must be undertaken within a five-year period from the date of certification of 37.25a tax increment financing district, are increased to a ten-year 15-year period for the 37.26Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 37.27Bloomington Central Station.37.28    (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any 37.29other law to the contrary, the city of Bloomington and its port authority may extend the 37.30duration limits of the district for a period through December 31, 2039.37.31    (c) Effective for taxes payable in 2014, tax increment for the district must be 37.32computed using the current local tax rate, notwithstanding the provisions of Minnesota 37.33Statutes, section 469.177, subdivision 1a.38.1EFFECTIVE DATE.Paragraphs (a) and (c) are effective upon compliance by 38.2the governing body of the city of Bloomington with the requirements of Minnesota 38.3Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by 38.4the governing bodies of the city of Bloomington, Hennepin County, and Independent 38.5School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782, 38.6subdivision 2, and 645.021, subdivision 3.38.7    Sec. 9. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, 38.8chapter 88, article 5, section 11, is amended to read:38.9    Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY PARCELS 38.10DEEMED OCCUPIED. 38.11    (a) The provisions of this section apply to redevelopment tax increment financing 38.12districts created by the Housing and Redevelopment Authority in and for the city of 38.13Oakdale in the areas comprised of the parcels with the following parcel identification 38.14numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; 38.153102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; 38.163102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2) 38.172902921330001 and 2902921330005.38.18    (b) For a district subject to this section, the Housing and Redevelopment Authority 38.19may, when requesting certification of the original tax capacity of the district under 38.20Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district 38.21be certified as the tax capacity of the land.38.22    (c) The authority to request certification of a district under this section expires on 38.23July 1, 2013.38.24    (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056, 38.253102921320057, 3102921320061, and 3102921330004 are deemed to meet the 38.26requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), 38.27notwithstanding any contrary provisions of that paragraph, if the following conditions 38.28are met:38.29    (1) a building located on any part of each of the specified parcels was demolished after 38.30the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution 38.31under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);38.32    (2) the building was removed either by the authority, by a developer under a 38.33development agreement with the Housing and Redevelopment Authority for the city of 38.34Oakdale, or by the owner of the property without entering into a development agreement 38.35with the Housing and Redevelopment Authority for the city of Oakdale; and39.1    (3) the request for certification of the parcel as part of a district is filed with the 39.2county auditor by December 31, 2017.39.3    (b) The provisions of this section allow an election by the Housing and 39.4Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under 39.5paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174, 39.6subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).39.7EFFECTIVE DATE.This section is effective upon compliance by the governing 39.8body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, 39.9subdivision 3.39.10    Sec. 10. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.39.11    Subdivision 1.Addition of property to Tax Increment Financing District 39.12No. 1-G.(a) Notwithstanding the provisions of Minnesota Statutes, section 469.175, 39.13subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority 39.14of the city of Bloomington and the city of Bloomington may elect to eliminate the real 39.15property north of the existing building line on Lot 1, Block 1, Mall of America 7th 39.16Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C 39.17within Industrial Development District No. 1 Airport South in the city of Bloomington, 39.18Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G 39.19to include that property. 39.20    (b) If the city elects to transfer parcels under this authority, the county auditor shall 39.21transfer the original tax capacity of the affected parcels from Tax Increment Financing 39.22District No. 1-C to Tax Increment Financing District No. 1-G.39.23    Subd. 2.Authority to extend duration limit; computation of increment.(a) 39.24Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article 39.251, section 8, or any other law to the contrary, the city of Bloomington and its port authority 39.26may extend the duration limits of Tax Increment Financing Districts No. 1-C and No. 39.271-G through December 31, 2033.39.28    (b) Effective for property taxes payable in 2017 through 2033, the captured tax 39.29capacity of Tax Increment Financing District No. 1-C must be included in computing the 39.30tax rates of each local taxing district and the tax increment equals only the amount of tax 39.31computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).39.32    (c) Effective for property taxes payable in 2019 through 2033, the captured tax 39.33capacity of Tax Increment Financing District No. 1-G must be included in computing the 39.34tax rates of each local taxing district and the tax increment for the district equals only 40.1the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision 40.23c, paragraph (c).40.3    Subd. 3.Treatment of increment.Increments received under the provisions 40.4of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08, 40.5subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No. 40.61-G, notwithstanding any law to the contrary, and without regard to whether they are 40.7attributable to captured tax capacity of Tax Increment Financing District No. 1-C.40.8    Subd. 4.Condition.The authority under this section expires and Tax Increment 40.9Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024 40.10and thereafter, if the total estimated market value of improvements for parcels located in 40.11Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000 40.12by taxes payable in 2023.40.13EFFECTIVE DATE.This section is effective upon compliance of the governing 40.14body of the city of Bloomington with the requirements of Minnesota Statutes, section 40.15645.021, subdivision 3, but only if the city enters into a binding written agreement with 40.16the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge 40.17for use by bicycle commuters and  recreational users. This section is effective without 40.18approval of the county and school district under Minnesota Statutes, section 469.1782, 40.19subdivision 2. The legislature finds that the county and school district are not "affected 40.20local government units" within the meaning of Minnesota Statutes, section 469.1782, 40.21because the provision allowing extended collection of increment by the tax increment 40.22financing districts does not affect their tax bases and tax rates dissimilarly to other counties 40.23and school districts in the metropolitan area.40.24    Sec. 11. ST. CLOUD; TAX INCREMENT FINANCING.40.25    The request for certification of Tax Increment Financing District No. 2, commonly 40.26referred to as the Norwest District, in the city of St. Cloud is deemed to have been made 40.27on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment 40.28for that district must be treated for purposes of any law as revenue of a tax increment 40.29financing district for which the request for certification was made during that time period.40.30EFFECTIVE DATE.This section is effective upon approval by the governing 40.31body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, 40.32subdivision 3.41.1    Sec. 12. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX 41.2INCREMENT FINANCING DISTRICT.41.3    Subdivision 1.Authorization.Notwithstanding the provisions of any other law, 41.4the Dakota County Community Development Agency may establish a redevelopment tax 41.5increment financing district comprised of the properties that were:41.6    (1) included in the CDA 10 Robert and South Street district in the city of West 41.7St. Paul; and41.8    (2) not decertified before July 1, 2012.41.9The district created under this section terminates no later than December 31, 2018.41.10    Subd. 2.Special rules.The requirements for qualifying a redevelopment district 41.11under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located 41.12within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the 41.13district. The original tax capacity of the district is $93,239.41.14    Subd. 3.Authorized expenditures.Tax increment from the district may be 41.15expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469, 41.16within the redevelopment area that includes the district, provided that the boundaries of 41.17the redevelopment area may not be expanded to add new area after April 1, 2013. All 41.18expenditures for eligible activities are deemed to be activities within the district under 41.19Minnesota Statutes, section 469.1763, subdivisions 2 to 4.41.20    Subd. 4.Adjusted net tax capacity.The captured tax capacity of the district must 41.21be included in the adjusted net tax capacity of the city, county, and school district for the 41.22purposes of determining local government aid, education aid, and county program aid. 41.23The county auditor shall report to the commissioner of revenue the amount of the captured 41.24tax capacity for the district at the time the assessment abstracts are filed.41.25EFFECTIVE DATE.This section is effective upon compliance by the governing 41.26body of the Dakota County Community Development Agency with the requirements of 41.27Minnesota Statutes, section 645.021, subdivision 3.41.28    Sec. 13. CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT 41.29EXTENSION.41.30    Subdivision 1.Duration of district.Notwithstanding the provisions of Minnesota 41.31Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the 41.32contrary, the city of Glencoe may collect tax increments from Tax Increment Financing 41.33District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to 41.34the conditions in subdivision 2.42.1    Subd. 2.Exclusive use of revenues.(a) All tax increments derived from Tax 42.2Increment Financing District No. 4 (McLeod County District No. 007) that are collected 42.3after December 31, 2013, must be used only to pay debt service on or to defease bonds that 42.4were outstanding on January 1, 2013 and that were issued to finance improvements serving:42.5    (1) Tax Increment Financing District No. 14 (McLeod County District No. 033) 42.6(Downtown);42.7    (2) Tax Increment Financing District No. 15 (McLeod County District No. 035) 42.8(Industrial Park); and42.9    (3) benefited properties as further described in proceedings related to the city's series 42.102007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.42.11    (b) Increments may also be used to pay debt service on or to defease bonds issued to 42.12refund the bonds described in paragraph (a), if the refunding bonds do not increase the 42.13present value of debt service due on the refunded bonds when the refunding is closed.42.14    (c) When the bonds described in paragraphs (a) and (b) have been paid or defeased, 42.15the district must be decertified and any remaining increment returned to the city, county, 42.16and school district as provided in Minnesota Statutes, section 469.176, subdivision 2, 42.17paragraph (c), clause (4).42.18EFFECTIVE DATE.This section is effective upon compliance by the governing 42.19bodies of the city of Glencoe, McLeod County, and Independent School District No. 42.202859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 42.21645.021, subdivision 3.42.22    Sec. 14. CITY OF ELY; TAX INCREMENT FINANCING.42.23    Subdivision 1.Extension of district.Notwithstanding Minnesota Statutes, section 42.24469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect 42.25tax increment from Tax Increment Financing District No. 1 through December 31, 42.262021. Increments from the district may only be used to pay binding obligations and 42.27administrative expenses.42.28    Subd. 2.Binding obligations.For purposes of this section, "binding obligations" 42.29means the binding contractual or debt obligation of Tax Increment Financing District 42.30No. 1 entered into before January 1, 2013.42.31    Subd. 3.Expenditures outside district.Notwithstanding Minnesota Statutes, 42.32section 469.1763, subdivision 2, the governing body of the city of Ely may elect to 42.33transfer revenues derived from increments from its Tax Increment Financing District No. 42.343 to the tax increment account established under Minnesota Statutes, section 469.177, 43.1subdivision 5, for Tax Increment Financing District No. 1. The amount that may be 43.2transferred is limited to the lesser of:43.3    (1) $168,000; or43.4    (2) the total amount due on binding obligations and outstanding on that date, less the 43.5amount of increment collected by Tax Increment Financing District No. 1 after December 43.631, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred 43.7after December 31, 2012.43.8EFFECTIVE DATE.This section is effective upon approval by the governing 43.9bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with 43.10the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 43.11subdivision 3. 43.12    Sec. 15. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING 43.13DISTRICT; SPECIAL RULES.43.14    (a) If the city of Maplewood elects, upon the adoption of a tax increment financing 43.15plan for a district, the rules under this section apply to one or more redevelopment 43.16tax increment financing districts established by the city or the economic development 43.17authority of the city. The area within which the redevelopment tax increment districts may 43.18be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a 43.19part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is 43.20the "3M Renovation and Retention Project Area" or "project area."43.21    (b) The requirements for qualifying redevelopment tax increment districts under 43.22Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is 43.23deemed eligible for inclusion in a redevelopment tax increment district.43.24    (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 43.254j, does not apply to the parcel.43.26    (d) The expenditures outside district rule under Minnesota Statutes, section 43.27469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes, 43.28section 469.1763, subdivision 3, is extended to ten years; and expenditures must only 43.29be made within the project area.43.30    (e) If, after one year from the date of certification of the original net tax capacity 43.31of the tax increment district, no demolition, rehabilitation, or renovation of property has 43.32been commenced on a parcel located within the tax increment district, no additional tax 43.33increment may be taken from that parcel, and the original net tax capacity of the parcel 43.34shall be excluded from the original net tax capacity of the tax increment district. If 3M 43.35Company subsequently commences demolition, rehabilitation, or renovation, the authority 44.1shall certify to the county auditor that the activity has commenced, and the county auditor 44.2shall certify the net tax capacity thereof as most recently certified by the commissioner 44.3of revenue and add it to the original net tax capacity of the tax increment district. The 44.4authority must submit to the county auditor evidence that the required activity has taken 44.5place for each parcel in the district.44.6    (f) The authority to approve a tax increment financing plan and to establish a tax 44.7increment financing district under this section expires December 31, 2018.44.8EFFECTIVE DATE.This section is effective upon approval by the governing 44.9body of the city of Maplewood and upon compliance with Minnesota Statutes, section 44.10645.021, subdivision 3.44.11    Sec. 16. CITY OF MINNEAPOLIS; STREETCAR FINANCING.44.12    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 44.13have the meanings given them.44.14    (b) "City" means the city of Minneapolis.44.15    (c) "County" means Hennepin County.44.16    (d) "District" means the areas certified by the city under subdivision 2 for collection 44.17of value capture taxes.44.18    (e) "Project area" means the area including one city block on either side of a streetcar 44.19line designated by the city to serve the downtown and adjacent neighborhoods of the city.44.20    Subd. 2.Authority to establish district.(a) The governing body of the city may, by 44.21resolution, establish a value capture district consisting of some or all of the taxable parcels 44.22located within one or more of the following areas of the city, as described in the resolution:44.23    (1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south, 44.24First Avenue South on the east, and 14th Street East on the north;44.25    (2) the area bounded by Spruce Place on the west, 14th Street West on the south, 44.26LaSalle Avenue on the east, and Grant Street West on the north;44.27    (3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on 44.28the south, Marquette Avenue on the east, and Fourth Street South on the north; and44.29    (4) the area bounded by First Avenue North on the west, Washington Avenue on the 44.30south, Hennepin Avenue on the east, and Second Street North on the north.44.31    (b) The city may establish the district and the project area only after holding a public 44.32hearing on its proposed creation after publishing notice of the hearing and the proposal at 44.33least once not less than ten days nor more than 30 days before the date of the hearing.45.1    Subd. 3.Calculation of value capture district; administrative provisions.(a) If 45.2the city establishes a value capture district under subdivision 2, the city shall request the 45.3county auditor to certify the district for calculation of the district's tax revenues.45.4    (b) For purposes of calculating the tax revenues of the district, the county auditor 45.5shall treat the district as if it were a request for certification of a tax increment financing 45.6district under the provisions of Minnesota Statutes, section 469.177, and shall calculate 45.7the tax revenues of the district for each year of its duration under subdivision 4 as equaling 45.8the amount of tax increment under Minnesota Statutes, section 469.177, except that the 45.9current total tax rate, excluding the state general tax rate, must be used in the calculation, 45.10rather than a certified original tax rate. The city shall provide the county auditor with the 45.11necessary information to certify the district, including the option for calculating revenues 45.12derived from the areawide tax rate under Minnesota Statutes, chapter 473F.45.13    (c) The county auditor shall pay to the city at the same times provided for settlement 45.14of taxes and payment of tax increments the tax revenues of the district. The city must use 45.15the tax revenues as provided under subdivision 4.45.16    Subd. 4.Permitted uses of district tax revenues.(a) In addition to paying for 45.17reasonable administrative costs of the district, the city may spend tax revenues of the 45.18district for property acquisition, improvements, and equipment to be used for operations 45.19within the project area, along with related costs, for:45.20    (1) planning, design, and engineering services related to the construction of the 45.21streetcar line;45.22    (2) acquiring property for, constructing, and installing a streetcar line;45.23    (3) acquiring and maintaining equipment and rolling stock and related facilities, such 45.24as maintenance facilities, which need not be located in the project area;45.25    (4) acquiring, constructing, or improving transit stations; and45.26    (5) acquiring or improving public space, including the construction and installation 45.27of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings 45.28related to the streetcar line.45.29    (b) The city may issue bonds or other obligations under Minnesota Statutes, chapter 45.30475, without an election, to fund acquisition or improvement of property of a capital 45.31nature authorized by this section, including any costs of issuance. The city may also issue 45.32bonds or other obligations to refund those bonds or obligations. Payment of principal 45.33and interest on the bonds or other obligations issued under this paragraph is a permitted 45.34use of the district's tax revenues.45.35    (c) Tax revenues of the district may not be used for the operation of the streetcar line.46.1    Subd. 5.Duration of the district.A district established under this section is limited 46.2to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues 46.3equal to the amount of the capital costs permitted under subdivision 4 or the amount needed 46.4to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.46.5EFFECTIVE DATE.This section is effective the day following final enactment.46.6ARTICLE 546.7MINING TAXES46.8    Section 1. [116C.99] SILICA SAND MINING ACCOUNT.46.9    A silica sand mining account is created in the special revenue fund. Money in the 46.10account is available for development of model standards, technical assistance to counties 46.11and other governments, other assistance to counties, and other purposes as appropriated 46.12by law.46.13    Sec. 2. [297J.01] DEFINITIONS.46.14    Subdivision 1.Scope.Unless otherwise defined in this chapter, or unless the 46.15context clearly indicates otherwise, the terms used in this chapter have the meaning given 46.16them in this section. The definitions in this section are for tax administration purposes 46.17and apply to this chapter.46.18    Subd. 2.Commissioner."Commissioner" means the commissioner of revenue or a 46.19person to whom the commissioner has delegated functions.46.20    Subd. 3.Mining."Mining" means excavating and mining of silica sand by any 46.21process, including digging, excavating, drilling, blasting, tunneling, dredging, stripping, 46.22or by shaft.46.23    Subd. 4.Person."Person" means an individual, fiduciary, estate, trust, partnership, 46.24or corporation.46.25    Subd. 5.Processing."Processing" means washing, cleaning, screening, crushing, 46.26filtering, sorting, stockpiling, and storing silica sand at the mining site or at any other site.46.27    Subd. 6.Silica sand."Silica sand" means well-rounded, sand-sized grains of quartz 46.28(silica dioxide) with very few impurities in terms of other minerals. Specifically, silica 46.29sand for the purpose of this section is commercially valuable for use in the hydraulic 46.30fracturing of shale to obtain oil and natural gas. Silica sand does not include common 46.31rock, stone, aggregate, gravel, sand with a low quartz level, or silica compounds recovered 46.32as a by-product of metallic mining.47.1    Subd. 7.Temporary storage."Temporary storage" means the storage of stockpiles 47.2of silica sand that have been transported and are awaiting further transport.47.3    Subd. 8.Ton."Ton" means 2,000 pounds.47.4    Subd. 9.Transporting."Transporting" means hauling silica sand, by any carrier:47.5    (1) from the mining site to a processing or transfer site; or47.6    (2) from a processing or storage site to a rail, barge, or transfer site for shipment.47.7    Subd. 10.Year."Year" means a calendar year.47.8EFFECTIVE DATE.This section is effective the day following final enactment.47.9    Sec. 3. [297J.02] TAX IMPOSED.47.10    Subdivision 1.Mining tax; rate.A tax is imposed on any person who mines silica 47.11sand from within the state. The tax equals 40 cents per cubic yard of fracturing sand 47.12extracted. The volume includes any material removed from the extraction site prior to 47.13washing.47.14    Subd. 2.Processing tax; rate.A tax is imposed on any person engaged in 47.15processing silica sand within the state. The rate of tax imposed is three percent of the 47.16market value of the silica sand processed. Market value is determined based on the sale 47.17price of the processed silica sand.47.18    Subd. 3.Return and remittance.Taxes imposed by this section are due and 47.19payable to the commissioner when the silica sand return is required to be filed. Silica sand 47.20returns must be filed on a form prescribed by the commissioner. Silica sand returns and 47.21taxes imposed under this section must be filed with the commissioner on or before the 47.2220th day of the month following the close of the previous calendar month.47.23    Subd. 4.Proceeds of taxes.Revenue received from taxes under this chapter, as 47.24well as all related penalties, interest, fees, and miscellaneous sources of revenue, must be 47.25deposited by the commissioner in the state treasury and credited as follows:47.26    (1) $2,000,000 in fiscal year 2014, $2,690,000 in fiscal year 2015, and $2,000,000 in 47.27each fiscal year thereafter must be credited to the silica sand mining account in the special 47.28revenue fund under section 116C.99; and47.29    (2) the balance of revenues derived from taxes, penalties, interest, fees, and 47.30miscellaneous sources of income are credited to the general fund.47.31    Subd. 5.Personal debt.The tax imposed by this section, and interest and penalties 47.32imposed with respect to it, are a personal debt of the person required to file a return from 47.33the time the liability for it arises, irrespective of when the time for payment of the liability 47.34occurs. The debt must, in the case of the executor or administrator of the estate of a 47.35decedent and in the case of a fiduciary, be that of the person in the person's official or 48.1fiduciary capacity only unless the person has voluntarily distributed the assets held in that 48.2capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which 48.3event the person is personally liable for any deficiency.48.4    Subd. 6.Refunds; appropriation.A person who has paid to the commissioner 48.5an amount of tax under this chapter for a period in excess of the amount legally due 48.6for that period, may file with the commissioner a claim for a refund of the excess. The 48.7amount necessary to pay the refunds under this subdivision is appropriated from the 48.8general fund to the commissioner.48.9EFFECTIVE DATE.This section is effective the day following final enactment.48.10    Sec. 4. [297J.03] REGISTRATION; REPORTING; FILING REQUIREMENTS.48.11    Subdivision 1.Registration.A person who extracts or processes silica sand within 48.12the state must register with the commissioner, on a form prescribed by the commissioner, 48.13for a silica sand identification number. The commissioner shall issue the applicant a 48.14registration number. A registration number is not assignable and is valid only for the 48.15person in whose name it is issued.48.16    Subd. 2.Reporting.(a) A person who extracts or processes silica sand in this state 48.17must file a report showing the amount of silica sand extracted or processed monthly on or 48.18before the 20th day of the month following the month in which the silica sand was extracted 48.19or processed. The commissioner may inspect the premises, books, and records, of a person 48.20subject to the silica sand tax during the normal business hours of the person extracting or 48.21processing silica sand. A person violating this section is guilty of a misdemeanor.48.22    (b) A person shall keep at each place of business complete and accurate records 48.23for that place of business, including records of silica sand extracted or processed in the 48.24state. Scale records, sales records, or any other records of tons of silica sand extracted 48.25or processed in this state, produced or maintained by the person extracting or processing 48.26silica sand, must be retained by the person extracting or processing silica sand in this 48.27state. Books, records, invoices, and other papers and documents required by this section 48.28must be kept for a period of at least 3-1/2 years after the date of the monthly silica sand 48.29report unless the commissioner of revenue authorizes, in writing, their destruction or 48.30disposal at an earlier date.48.31    Subd. 3.Extensions.If, in the commissioner's judgment, good cause exists, the 48.32commissioner may extend the time for filing reports under this section and silica sand 48.33returns under section 297J.02 and for paying taxes under section 297J.02 for not more 48.34than six months.49.1EFFECTIVE DATE.This section is effective the day following final enactment.49.2    Sec. 5. [297J.04] LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.49.3    Subdivision 1.Assessment.Except as otherwise provided in this chapter, the 49.4amount of taxes assessable must be assessed within 3-1/2 years after the date the return is 49.5filed, whether or not the return is filed on or after the date prescribed. A return must not be 49.6treated as filed until it is in processible form. A return is in processible form if it is filed 49.7on a permitted form and contains sufficient data to identify the taxpayer and permit the 49.8mathematical verification of the tax liability shown on the return. For purposes of this 49.9section, a return filed before the last day prescribed by law for filing is considered to 49.10be filed on the last day.49.11    Subd. 2.False or fraudulent return.Notwithstanding subdivision 1, the tax may be 49.12assessed at any time if a false or fraudulent return is filed or if a taxpayer fails to file a return.49.13    Subd. 3.Omission in excess of 25 percent.Additional taxes may be assessed 49.14within 6-1/2 years after the due date of the return or the date the return was filed, 49.15whichever is later, if the taxpayer omits from a return taxes in excess of 25 percent of 49.16the taxes reported in the return.49.17    Subd. 4.Time limit on refunds.Unless otherwise provided in this chapter, a claim 49.18for a refund of an overpayment of tax must be filed within 3-1/2 years from the date 49.19prescribed for filing the silica sand tax return. Interest on refunds must be computed at 49.20the rate specified in section 270C.405 from the date of payment to the date the refund is 49.21paid or credited. For purposes of this subdivision, the date of payment is the later of the 49.22date the tax was finally due or was paid.49.23    Subd. 5.Bankruptcy; suspension of time.The time during which a tax must be 49.24assessed or collection proceedings begun is suspended during the period from the date of a 49.25filing of a petition in bankruptcy until 30 days after either: (1) notice to the commissioner 49.26that the bankruptcy proceedings have been closed or dismissed; or (2) the automatic stay 49.27has been ended or has expired, whichever occurs first. The suspension of the statute of 49.28limitations under this subdivision applies to the person the petition in bankruptcy is filed 49.29against, and all other persons who may also be wholly or partially liable for the tax.49.30    Subd. 6.Extension agreement.If, before the expiration of time prescribed in 49.31subdivisions 1 and 4 for the assessment of tax or the filing of a claim for refund, both the 49.32commissioner and the taxpayer have consented in writing to the assessment or filing of a 49.33claim for refund after that time, the tax may be assessed or the claim for refund filed at any 49.34time before the expiration of the agreed upon period. The period may be extended by later 49.35agreements in writing before the expiration of the period previously agreed upon.50.1EFFECTIVE DATE.This section is effective the day following final enactment50.2    Sec. 6. [297J.05] CIVIL PENALTIES.50.3    Subdivision 1.Penalty for failure to pay tax.If a tax is not paid within the time 50.4specified for payment, a penalty is added to the amount required to be shown as tax. The 50.5penalty is five percent of the unpaid tax if the failure is for not more than 30 days, with 50.6an additional penalty of five percent of the amount of tax remaining unpaid during each 50.7additional 30 days or fraction of 30 days during which the failure continues, not exceeding 50.815 percent in the aggregate. For purposes of this subdivision, if the taxpayer has not filed 50.9a return, the time specified for payment is the final date a return should have been filed.50.10    Subd. 2.Penalty for failure to make and file return.If a taxpayer fails to make 50.11and file a return within the time prescribed or an extension, a penalty is added to the tax. 50.12The penalty is five percent of the amount of tax not paid on or before the date prescribed 50.13for payment of the tax.50.14    Subd. 3.Penalty for intentional disregard of law or rules.If part of an additional 50.15assessment is due to negligence or intentional disregard of the provisions of this chapter or 50.16rules of the commissioner of revenue (but without intent to defraud), there is added to the 50.17tax an amount equal to ten percent of the additional assessment.50.18    Subd. 4.Penalty for false or fraudulent return; evasion.If a person files a false 50.19or fraudulent return, or attempts in any manner to evade or defeat a tax or payment of 50.20tax, there is imposed on the person a penalty equal to 50 percent of the tax found due 50.21for the period to which the return related, less amounts paid by the person on the basis 50.22of the false or fraudulent return.50.23    Subd. 5.Penalty for repeated failures to file returns or pay taxes.If there is a 50.24pattern by a person of repeated failures to timely file returns or timely pay taxes, and 50.25written notice is given that a penalty will be imposed if such failures continue, a penalty 50.26of 25 percent of the amount of tax not timely paid as a result of each such subsequent 50.27failure is added to the tax. The penalty can be abated under the abatement authority in 50.28section 270C.34.50.29    Subd. 6.Payment of penalties.The penalties imposed by this section must be 50.30collected and paid in the same manner as taxes. These penalties are in addition to criminal 50.31penalties imposed by this chapter.50.32EFFECTIVE DATE.This section is effective the day following final enactment.50.33    Sec. 7. [297J.07] INTEREST.51.1    Subdivision 1.Rate.If an interest assessment is required under this section, interest 51.2is computed at the rate specified in section 270C.40.51.3    Subd. 2.Late payment.If a tax is not paid within the time specified by law for 51.4payment, the unpaid tax bears interest from the date the tax should have been paid until 51.5the date the tax is paid.51.6    Subd. 3.Extensions.If an extension of time for payment has been granted, interest 51.7must be paid from the date the payment should have been made if no extension had been 51.8granted, until the date the tax is paid.51.9    Subd. 4.Additional assessments.If a taxpayer is liable for additional taxes because 51.10of a redetermination by the commissioner, or for any other reason, the additional taxes 51.11bear interest from the time the tax should have been paid, without regard to any extension 51.12allowed, until the date the tax is paid.51.13    Subd. 5.Erroneous refunds.In the case of an erroneous refund, interest accrues 51.14from the date the refund was paid unless the erroneous refund results from a mistake of 51.15the department, then no interest or penalty is imposed unless the deficiency assessment is 51.16not satisfied within 60 days of the order.51.17    Subd. 6.Interest on judgments.Notwithstanding section 549.09, if judgment is 51.18entered in favor of the commissioner with regard to any tax, the judgment bears interest 51.19at the rate specified in section 270C.40 from the date the judgment is entered until the 51.20date of payment.51.21    Subd. 7.Interest on penalties.A penalty imposed under section 297J.05, 51.22subdivision 1, 2, 3, 4, or 5, bears interest from the date the return or payment was required 51.23to be filed or paid, including any extensions, to the date of payment of the penalty.51.24EFFECTIVE DATE.This section is effective the day following final enactment.51.25    Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:51.26    Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided 51.27in paragraph (d), less the amount that would have been computed under Minnesota 51.28Statutes 2008, section 
         126C.21, subdivision 4, for the current year for that district, must be 51.29allocated to qualifying school districts to be distributed, based upon the certification of the 51.30commissioner of revenue, under paragraphs (b), (c), and (f).51.31    (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 51.32the lands from which taconite was mined or quarried were located or within which the 51.33concentrate was produced. The distribution must be based on the apportionment formula 51.34prescribed in subdivision 2.52.1    (ii) Four cents per taxable ton from each taconite facility must be distributed to 52.2each affected school district for deposit in a fund dedicated to building maintenance 52.3and repairs, as follows:52.4    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent 52.5School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 52.6districts;52.7    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to 52.8Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 52.9districts;52.10    (3) proceeds from the Mittal Steel Company and Minntac or their successors are 52.11distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 52.122711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;52.13    (4) proceeds from the Northshore Mining Company or its successor are distributed 52.14to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 52.15or their successor districts; and52.16    (5) proceeds from United Taconite or its successor are distributed to Independent 52.17School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 52.18successor districts.52.19    Revenues that are required to be distributed to more than one district shall be 52.20apportioned according to the number of pupil units identified in section 
         126C.05, 52.21subdivision 1
         , enrolled in the second previous year.52.22    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), 52.23shall be distributed to a group of school districts comprised of those school districts which 52.24qualify as a tax relief area under section 
         273.134, paragraph (b), or in which there is a 52.25qualifying municipality as defined by section 
         273.134, paragraph (a), in direct proportion 52.26to school district indexes as follows: for each school district, its pupil units determined 52.27under section 
         126C.05 for the prior school year shall be multiplied by the ratio of the 52.28average adjusted net tax capacity per pupil unit for school districts receiving aid under 52.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 52.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 52.31Each district shall receive that portion of the distribution which its index bears to the sum 52.32of the indices for all school districts that receive the distributions.52.33    (ii) Notwithstanding clause (i), each school district that receives a distribution 52.34under sections 
         298.018; 
         298.23 to 
         298.28, exclusive of any amount received under this 52.35clause; 
         298.34 to 
         298.39; 
         298.391 to 
         298.396; 
         298.405; or any law imposing a tax on 52.36severed mineral values after reduction for any portion distributed to cities and towns 53.1under section 
         126C.48, subdivision 8, paragraph (5), that is less than the amount of its 53.2levy reduction under section 
         126C.48, subdivision 8, for the second year prior to the 53.3year of the distribution shall receive a distribution equal to the difference; the amount 53.4necessary to make this payment shall be derived from proportionate reductions in the 53.5initial distribution to other school districts under clause (i). If there are insufficient tax 53.6proceeds to make the distribution provided under this paragraph in any year, money must 53.7be transferred from the taconite property tax relief account in subdivision 6, to the extent 53.8of the shortfall in the distribution.53.9    (d) Any school district described in paragraph (c) where a levy increase pursuant to 53.10section 
         126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, 53.11shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the 53.12pupil units identified in section 
         126C.05, subdivision 1, enrolled in the second previous 53.13year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent 53.14times the district's taxable net tax capacity in the second previous year.53.15    If the total amount provided by paragraph (d) is insufficient to make the payments 53.16herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 53.17so as not to exceed the funds available. Any amounts received by a qualifying school 53.18district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 53.19education aid which the district receives pursuant to section 
         126C.13 or the permissible 53.20levies of the district. Any amount remaining after the payments provided in this paragraph 53.21shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 53.22deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 53.23economic protection trust fund as provided in subdivision 11.53.24    Each district receiving money according to this paragraph shall reserve the lesser of 53.25the amount received under this paragraph or $25 times the number of pupil units served 53.26in the district. It may use the money for early childhood programs or for outcome-based 53.27learning programs that enhance the academic quality of the district's curriculum. The 53.28outcome-based learning programs must be approved by the commissioner of education.53.29    (e) There shall be distributed to any school district the amount which the school 53.30district was entitled to receive under section 
         298.32 in 1975.53.31    (f) Four cents per taxable ton must be distributed to qualifying school districts 53.32according to the distribution specified in paragraph (b), clause (ii), and two cents per taxable 53.33ton must be distributed according to the distribution specified in paragraph (c). These 53.34amounts are not subject to sections 
         126C.21, subdivision 4, and 
         126C.48, subdivision 8.53.35EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.54.1    Sec. 9. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:54.2    Subd. 6. Property tax relief. (a) In 2002 2014 and thereafter, 33.9 35.3 cents per 54.3taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or 54.4section 
         298.2961, subdivision 5, must be allocated to St. Louis County acting as the 54.5counties' fiscal agent, to be distributed as provided in sections 
         273.134 to 
         273.136.54.6    (b) If an electric power plant owned by and providing the primary source of power 54.7for a taxpayer mining and concentrating taconite is located in a county other than the 54.8county in which the mining and the concentrating processes are conducted, .1875 cent per 54.9taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.54.10    (c) If an electric power plant owned by and providing the primary source of power 54.11for a taxpayer mining and concentrating taconite is located in a school district other than 54.12a school district in which the mining and concentrating processes are conducted, .4541 54.13cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to 54.14the school district.54.15EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.54.16    Sec. 10. Minnesota Statutes 2012, section 298.28, subdivision 9a, is amended to read:54.17    Subd. 9a. Taconite economic development fund. (a) 30.1 20.4 cents per ton 54.18for distributions in 2002 2014 and thereafter must be paid to the taconite economic 54.19development fund. No distribution shall be made under this paragraph in 2004 or any 54.20subsequent year in which total industry production falls below 30 million tons. Distribution 54.21shall only be made to a taconite producer's fund under section 
         298.227 if the producer 54.22timely pays its tax under section 
         298.24 by the dates provided under section 
         298.27, or 54.23pursuant to the due dates provided by an administrative agreement with the commissioner.54.24    (b) An amount equal to 50 percent of the tax under section 
         298.24 for concentrate 54.25sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including 54.26crushed pellets shall be paid to the taconite economic development fund. The amount 54.27paid shall not exceed $700,000 annually for all companies. If the initial amount to be 54.28paid to the fund exceeds this amount, each company's payment shall be prorated so the 54.29total does not exceed $700,000.54.30EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.54.31    Sec. 11. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:54.32    Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), A county that 54.33imposes the aggregate production tax, as defined in this section, shall impose upon every 55.1operator a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate 55.2material excavated in the county except that the county board may decide not to impose 55.3this tax if it determines that in the previous year operators removed less than 20,000 tons 55.4or 14,000 cubic yards of aggregate material from that county. A county may impose upon 55.5every operator an additional production tax of up to 21.5 cents per cubic yard or 15 cents 55.6per ton of aggregate material excavated in the county. The tax shall not be imposed on 55.7aggregate material excavated in the county until the aggregate material is transported from 55.8the extraction site or sold, whichever occurs first. When aggregate material is stored in a 55.9stockpile within the state of Minnesota and a public highway, road or street is not used 55.10for transporting the aggregate material, the tax shall not be imposed until either when the 55.11aggregate material is sold, or when it is transported from the stockpile site, or when it is 55.12used from the stockpile, whichever occurs first.55.13    (b) Except as provided in paragraph (e), A county that imposes the aggregate 55.14production tax under paragraph (a), as defined in this section, shall impose upon every 55.15importer a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate 55.16material imported into the county. A county may impose upon every importer an 55.17additional production tax of up to 21.5 cents per cubic yard or 15 cents per ton of 55.18aggregate material imported into the county. The tax shall be imposed when the aggregate 55.19material is imported from the extraction site or sold. When imported aggregate material is 55.20stored in a stockpile within the state of Minnesota and a public highway, road, or street is 55.21not used for transporting the aggregate material, the tax shall be imposed either when the 55.22aggregate material is sold, when it is transported from the stockpile site, or when it is used 55.23from the stockpile, whichever occurs first. The tax shall be imposed on an importer when 55.24the aggregate material is imported into the county that imposes the tax.55.25    (c) If the aggregate material is transported directly from the extraction site to a 55.26waterway, railway, or another mode of transportation other than a highway, road or street, 55.27the tax imposed by this section shall be apportioned equally between the county where the 55.28aggregate material is extracted and the county to which the aggregate material is originally 55.29transported. If that destination is not located in Minnesota, then the county where the 55.30aggregate material was extracted shall receive all of the proceeds of the tax.55.31    (d) A county, city, or town that receives revenue under this section is prohibited 55.32from imposing any additional host community fees on aggregate production within that 55.33county, city, or town.55.34    (e) A county that borders two other states and that is not contiguous to a county 55.35that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) 56.1at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires 56.2December 31, 2014.56.3EFFECTIVE DATE.This section is effective the day following final enactment.56.4    Sec. 12. 2013 DISTRIBUTION ONLY.56.5For the 2013 distribution, a special fund is established to receive $3,700,000 of the 56.6amount that otherwise would be distributed under Minnesota Statutes, section 298.28, 56.7subdivision 6, and this amount must be paid as follows:56.8(1) $2,000,000 to the city of Hibbing for improvements to the city's water supply 56.9system; and56.10(2) $1,700,000 to the city of Mountain Iron for the cost of moving utilities required 56.11as a result of actions undertaken by United States Steel Corporation.56.12EFFECTIVE DATE.This section is effective for the 2013 distribution, all of which 56.13must be made in the August 2013 payment.56.14    Sec. 13. IRON RANGE RESOURCES AND REHABILITATION 56.15COMMISSIONER; BONDS AUTHORIZED.56.16    Subdivision 1.Issuance; purpose.Notwithstanding any provision of Minnesota 56.17Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 56.18rehabilitation may issue revenue bonds in a principal amount of $38,000,000 in one or more 56.19series, and bonds to refund those bonds. The proceeds of the bonds must be used to make 56.20grants to school districts located in the taconite tax relief area defined in Minnesota Statutes, 56.21section 273.134, or the taconite assistance area defined in Minnesota Statutes, section 56.22273.1341, to be used by the school districts to pay for building projects, such as energy 56.23efficiency, technology, infrastructure, health, safety, and maintenance improvements.56.24    Subd. 2.Appropriation.(a) There is annually appropriated from the distribution of 56.25taconite production tax revenues under Minnesota Statues, section 298.28, prior to the 56.26calculation of the amount of the remainder under Minnesota Statutes, section 298.28, 56.27subdivision 11, an amount sufficient to pay when due the principal and interest on the 56.28bonds issued pursuant to subdivision 1. The appropriation under this section must not 56.29exceed an amount equal to ten cents per taxable ton.56.30    (b) If in any year the amount available under paragraph (a) is insufficient to pay 56.31principal and interest due on the bonds in that year, an additional amount is appropriated 56.32from the Douglas J. Johnson fund to make up the deficiency. 57.1    (c) The appropriation under this subdivision terminates upon payment or maturity of 57.2the last of the bonds issued under this section.57.3    Subd. 3.Credit enhancement.The bonds issued under this section are "debt 57.4obligations" and the commissioner of Iron Range resources and rehabilitation is a "district" 57.5for purposes of Minnesota Statutes, section 126C.55, provided that advances made under 57.6Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes, 57.7section 126C.55, subdivisions 4 to 7.57.8EFFECTIVE DATE.This section is effective the day following final enactment and 57.9applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.57.10    Sec. 14. IRON RANGE FISCAL DISPARITIES STUDY.57.11    Subdivision 1.Study required.The commissioner of revenue shall conduct a study 57.12of the tax relief area revenue distribution program contained in Minnesota Statutes, chapter 57.13276A, commonly known as the Iron Range fiscal disparities program. By February 1, 57.142015, the commissioner shall submit a report to the chairs and ranking minority members 57.15of the house of representatives and senate tax committees consisting of the findings of the 57.16study and identification of issues for policy makers to consider. The study must analyze:57.17    (1) the extent to which the benefits of the economic growth in the region are shared 57.18throughout the region, especially for growth that results from state or regional decisions;57.19    (2) the program's impact on the variability of tax rates across jurisdictions of the 57.20region;57.21    (3) the program's impact on the distribution of homestead property tax burdens 57.22across jurisdictions of the region; and57.23    (4) the relationship between the impacts of the program and overburden on 57.24jurisdictions containing properties that provide regional benefits, specifically the costs 57.25those properties impose on their host jurisdictions in excess of their tax payments. The 57.26report must include a description of other property tax, aid, and local development 57.27programs that interact with the fiscal disparities program.57.28    Subd. 2.Funds transfer from fiscal disparities levy.For taxes payable in 2014 57.29only, $75,000 must be added to St. Louis County's areawide levy as otherwise determined 57.30under Minnesota Statutes, section 276A.06, subdivision 5. Upon receipt of the proceeds of 57.31this levy, St. Louis County must transfer this money to the commissioner of management 57.32and budget for deposit into an account in the special revenue fund. One-half of the 57.33proceeds of the levy must be transferred prior to June 30, 2014.57.34    Subd. 3.Appropriation.$37,500 in fiscal year 2014 and $37,500 in fiscal year 57.352015 are appropriated from the account in the special revenue fund established under 58.1subdivision 2 to the commissioner of revenue to pay for the study required by this section. 58.2Any amounts remaining in the account in the special revenue fund on June 30, 2015, must 58.3be distributed to St. Louis County for the purposes of reducing the areawide tax rate 58.4for taxes payable in 2016.58.5EFFECTIVE DATE.This section is effective July 1, 2013.58.6ARTICLE 658.7LOCAL SALES TAXES58.8    Section 1. Minnesota Statutes 2012, section 469.190, is amended by adding a 58.9subdivision to read:58.10    Subd. 1a.Tax base; locally collected taxes.A tax imposed on the gross receipts 58.11from lodging under this section or under a special law applies to the same base as taxes 58.12collected by the commissioner of revenue under subdivision 7 and section 270C.171.58.13EFFECTIVE DATE.This section is effective the day following final enactment. 58.14In enacting this section, the legislature confirms its original intent in enacting Minnesota 58.15Statutes, section 469.190, its predecessor provisions, and any special laws authorizing 58.16political subdivisions to impose lodging taxes, and that those taxes were and are intended 58.17to apply to the entire consideration paid to obtain access to transient lodging, including 58.18ancillary or related services, such as services provided by accommodation intermediaries 58.19as defined in Minnesota Statutes, section 297A.61, and similar services. The provisions of 58.20this section must not be interpreted to imply a narrower construction of the tax base under 58.21lodging tax provisions of Minnesota law prior to the enactment of this section.58.22    Sec. 2. Minnesota Statutes 2012, section 469.190, subdivision 7, is amended to read:58.23    Subd. 7. Collection.(a) The statutory or home rule charter city may agree with the 58.24commissioner of revenue that a tax imposed pursuant to this section shall be collected 58.25by the commissioner together with the tax imposed by chapter 297A, and subject to the 58.26same interest, penalties, and other rules and that its proceeds, less the cost of collection, 58.27shall be remitted to the city.58.28    (b) If a tax imposed under this section or under a special law is not collected by 58.29the commissioner of revenue, the local government imposing the tax may only require 58.30an accommodations intermediary, as defined in section 297A.61, subdivision 47, to file 58.31and remit the tax related to accommodations intermediary services once in every calendar 58.32year. The local government must inform the tax intermediary of the date when the return 58.33and remittance is due.59.1EFFECTIVE DATE.This section is effective for sales and purchases made after 59.2June 30, 2013.59.3    Sec. 3. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by 59.4Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 59.530, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First 59.6Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4, 59.7section 15, is amended to read:59.8    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 59.91 may only be used by the city to pay the cost of collecting the tax, and, except as provided in 59.10paragraph (e), to pay for the following projects or to secure or pay any principal, premium, 59.11or interest on bonds issued in accordance with subdivision 3 for the following projects.59.12    (a) To pay all or a portion of the capital expenses of construction, equipment and 59.13acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, 59.14including the demolition of the existing arena and the construction and equipping of a 59.15new arena.59.16    (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be 59.17spent for:59.18    (1) capital projects to further residential, cultural, commercial, and economic 59.19development in both downtown St. Paul and St. Paul neighborhoods; and59.20    (2) capital and operating expenses of cultural organizations in the city, provided 59.21that the amount spent under this clause must equal ten percent of the total amount spent 59.22under this paragraph in any year.59.23    (c) The amount apportioned under paragraph (b) shall be no less than 60 percent 59.24of the revenues derived from the tax each year, except to the extent that a portion of that 59.25amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) 59.26prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 59.271998, but only if the city council determines that 40 percent of the revenues derived from 59.28the tax together with other revenues pledged to the payment of the bonds, including the 59.29proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.59.30    (d) If in any year more than 40 percent of the revenue derived from the tax authorized 59.31by subdivision 1 is used to pay debt service on the bonds issued for the purposes of 59.32paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment 59.33that exceeds 40 percent of the revenue must be determined for that year. In any year when 59.3440 percent of the revenue produced by the sales tax exceeds the amount required to pay 59.35debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the 60.1amount of the excess must be made available for capital projects to further residential, 60.2cultural, commercial, and economic development in the neighborhoods and downtown 60.3until the cumulative amounts determined for all years under the preceding sentence have 60.4been made available under this sentence. The amount made available as reimbursement in 60.5the preceding sentence is not included in the 60 percent determined under paragraph (c).60.6    (e) In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be 60.7used to pay the principal of bonds issued for capital projects of the city. After December 60.831, 2014, revenue from the tax imposed under subdivision 1 may not be used for this 60.9purpose. If the amount necessary to meet obligations under paragraphs (a) and (d) are less 60.10than 40 percent of the revenue from the tax in any year, the city may place the difference 60.11between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d) 60.12in an economic development fund to be used for any economic development purposes.60.13    (f) By January 15 of each year, the mayor and the city council must report to the 60.14legislature on the use of sales tax revenues during the preceding one-year period.60.15EFFECTIVE DATE.This section is effective the day after compliance by the 60.16governing body of the city of St. Paul with Minnesota Statutes, section 645.021, 60.17subdivisions 2 and 3.60.18    Sec. 4. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 2, 60.19is amended to read:60.20    Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by 60.21subdivision 1 by the city of St. Cloud must be used for the cost of collecting and 60.22administering the tax and to pay all or part of the capital or administrative costs of the 60.23development, acquisition, construction, improvement, and securing and paying debt 60.24service on bonds or other obligations issued to finance the following regional projects as 60.25approved by the voters and specifically detailed in the referendum authorizing the tax or 60.26extending the tax:60.27    (1) St. Cloud Regional Airport;60.28    (2) regional transportation improvements;60.29    (3) regional community and aquatics and recreation centers and facilities;60.30    (4) regional public libraries; and 60.31    (5) acquisition and improvement of regional park land and open space.60.32    (b) Revenues received from the tax authorized by subdivision 1 by the cities of St. 60.33Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of 60.34collecting and administering the tax and to pay all or part of the capital or administrative 60.35costs of the development, acquisition, construction, improvement, and securing and paying 61.1debt service on bonds or other obligations issued to fund the projects specifically approved 61.2by the voters at the referendum authorizing the tax or extending the tax. The portion of 61.3revenues from the city going to fund the regional airport or regional library located in the 61.4city of St. Cloud will be as required under the applicable joint powers agreement.61.5    (c) The use of revenues received from the taxes authorized in subdivision 1 for 61.6projects allowed under paragraphs (a) and (b) are limited to the amount authorized for 61.7each project under the enabling referendum.61.8EFFECTIVE DATE.This section is effective for a city that approves it the day 61.9after compliance by the governing body of that city with Minnesota Statutes, section 61.10645.021, subdivision 3.61.11    Sec. 5. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 4, 61.12is amended to read:61.13    Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud, 61.14St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the 61.15city council determines that sufficient funds have been collected from the tax to retire or 61.16redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no 61.17later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99, 61.18subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under 61.19subdivision 1 through December 31, 2038, if approved under the referendum authorizing 61.20the tax under subdivision 1 or if approved by voters of the city at a general election held 61.21no later than November 6, 2018.61.22EFFECTIVE DATE.This section is effective for a city that approves it the day 61.23after compliance by the governing body of that city with Minnesota Statutes, section 61.24645.021, subdivision 3.61.25    Sec. 6. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by 61.26Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:61.27    Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section 
         297A.99, 61.28subdivision 3
         , paragraph (b), the proceeds of the tax imposed under this section shall be 61.29used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside 61.30Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring 61.31Street Park; improvements to and extension of the River County Bike Trail; acquisition,61.32 and construction, improvement, and development of regional parks, bicycle trails, park 61.33land, open space, andof a pedestrian walkways, as described in the city improvement 62.1plan adopted by the city council by resolution on December 12, 2006, and walkway 62.2over Interstate 94 and State Highway 24; and the acquisition of land and construction of 62.3buildings for a community and recreation center. The total amount of revenues from the 62.4taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 62.5plus any associated bond costs.62.6EFFECTIVE DATE.This section is effective the day after compliance by the 62.7governing body of the city of Clearwater with Minnesota Statutes, section 645.021, 62.8subdivisions 2 and 3.62.9    Sec. 7. Laws 2010, chapter 389, article 5, section 6, subdivision 4, is amended to read:62.10    Subd. 4. Use of lodging tax revenues. The revenues derived from the tax imposed 62.11under subdivision 3 must be used by the city of Marshall to pay the costs of collecting 62.12and administering the lodging tax, to pay all or part of the operating costs of the new and 62.13existing facilities of the Minnesota Emergency Response and Industry Training Center, 62.14including the payment of debt service on bonds issued under subdivision 2, and to pay 62.15all or part of the operating costs of the facilities of the Southwest Minnesota Regional 62.16Amateur Sports Center, including the payment of debt service on bonds issued under 62.17subdivision 2. Authorized expenses include, but are not limited to, acquiring property; 62.18predesign; design; and paying construction, furnishing, and equipment costs related to 62.19these facilities and paying debt service on bonds or other obligations issued by the city.62.20EFFECTIVE DATE.This section is effective the day following final enactment.62.21    Sec. 8. Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read:62.22    Subd. 6. Use of food and beverages tax. The revenues derived from the tax 62.23imposed under subdivision 5 must be used by the city of Marshall to pay the costs of 62.24collecting and administering the food and beverages tax, to pay all or part of the operating 62.25costs of the new and existing facilities of the Minnesota Emergency Response and 62.26Industry Training Center, including the payment of debt service on bonds issued under 62.27subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest 62.28Minnesota Regional Amateur Sports Center, including the payment of debt service on 62.29bonds issued under subdivision 2. Authorized expenses for each organization include, 62.30but are not limited to, acquiring property; predesign; design; and paying construction, 62.31furnishing, and equipment costs related to these facilities and paying debt service on 62.32bonds or other obligations issued by the city.62.33EFFECTIVE DATE.This section is effective the day following final enactment.63.1    Sec. 9. VALIDATION OF PRIOR ACT; AUTHORIZATION AND IMPOSITION.63.2    (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city 63.3of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by 63.4Laws 201l, First Special Session chapter 7, article 4, section 9, and file its approval with 63.5the secretary of state by June 15, 2013. If approved as authorized under this paragraph, 63.6actions undertaken by the city pursuant to the approval of the voters on November 6, 2012, 63.7and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended 63.8by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated.63.9    (b) Notwithstanding the time limit on the imposition of tax under Laws 2010, 63.10chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special 63.11Session chapter 7, article 4, section 9, and subject to local approval under paragraph (a), 63.12the city of Marshall may impose the tax on or before July 1, 2013.63.13EFFECTIVE DATE.This section is effective the day following final enactment.63.14    Sec. 10. CITY OF PROCTOR; VALIDATION OF PRIOR ACT.63.15    Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 63.16Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and 63.17Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary 63.18of state by January 1, 2014. If approved under this paragraph, actions undertaken by 63.19the city pursuant to the approval of the voters on November 2, 2010, and otherwise in 63.20accordance with those laws are validated.63.21EFFECTIVE DATE.This section is effective the day following final enactment.63.22    Sec. 11. CITY OF BEMIDJI; LOCAL TAXES AUTHORIZED.63.23    Subdivision 1.Food and beverage tax authorized.Notwithstanding Minnesota 63.24Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the 63.25city of Bemidji may, by ordinance, impose a sales tax of up to one percent on the gross 63.26receipts of all food and beverages sold by a restaurant or place of refreshment located 63.27within the city. For purposes of this section, "food and beverages" include retail on-sale of 63.28intoxicating liquor and fermented malt beverages.63.29    Subd. 2.Lodging tax.Notwithstanding Minnesota Statutes, section 469.190 or 63.30477A.016, or any other provision of law, ordinance, or city charter, the city of Bemidji 63.31may impose, by ordinance, a tax of up to one percent on the gross receipts for the 63.32furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or 63.33resort, other than for the renting or leasing of it for a continuous period of 30 days or more.64.1    Subd. 3.Use of proceeds from authorized taxes.The proceeds of the taxes 64.2imposed under subdivisions 1 and 2 must only be used by the city to fund the costs of 64.3operation, maintenance, and capital replacement costs for the Sanford Center.64.4    Subd. 4.Collection, administration, and enforcement.The city may enter into 64.5an agreement with the commissioner of revenue to administer, collect, and enforce the 64.6taxes under subdivisions 1 and 2. If the commissioner agrees to collect the tax, the 64.7provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 64.8and enforcement, and Minnesota Statutes, section 270C.171, apply.64.9EFFECTIVE DATE.This section is effective the day after the governing body of 64.10the city of Bemidji and its chief clerical officer comply with Minnesota Statutes, section 64.11645.021, subdivisions 2 and 3.64.12ARTICLE 764.13MARKET VALUE DEFINITIONS64.14    Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:64.1538.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.64.16    Any Each town, statutory city, or school district in this state, now or hereafter at any 64.17time having a an estimated market value of all its taxable property, exclusive of money and 64.18credits, of more than $105,000,000, and having a county fair located within its corporate 64.19limits, is hereby authorized to aid in defraying may pay part of the expense of improving 64.20any such the fairground, by appropriating and paying over to the treasurer of the county 64.21owning the fairground such sum of money, not exceeding $10,000, for each of the political 64.22subdivisions, as the its governing body of the town, statutory city, or school district may, 64.23by resolution, determine determines to be for the best interest of the political subdivision,.64.24 The sums so appropriated to amounts paid to the county must be used solely for the purpose 64.25of aiding in the improvement of to improve the fairground in such the manner as the county 64.26board of the county shall determine determines to be for the best interest of the county.64.27    Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:64.28    Subd. 2. Eligible recipients. All counties within the state, municipalities that prepare 64.29plans and official controls instead of a county, and districts are eligible for assistance 64.30under the program. Counties and districts may apply for assistance on behalf of other 64.31municipalities. In order to be eligible for financial assistance a county or municipality must 64.32agree to levy at least 0.01209 percent of taxable estimated market value for agricultural 65.1land preservation and conservation activities or otherwise spend the equivalent amount of 65.2local money on those activities, or spend $15,000 of local money, whichever is less.65.3    Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:65.4    Subdivision 1. Definitions. Unless the language or context clearly indicates that 65.5a different meaning is intended, the following words and terms, for the purposes of this 65.6chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:65.7    (a) "Commissioner" means the commissioner of revenue.65.8    (b) "Municipality" means:65.9    (1) a home rule charter or statutory city;65.10    (2) an organized town;65.11    (3) a park district subject to chapter 398;65.12    (4) the University of Minnesota;65.13    (5) for purposes of the fire state aid program only, an American Indian tribal 65.14government entity located within a federally recognized American Indian reservation;65.15    (6) for purposes of the police state aid program only, an American Indian tribal 65.16government with a tribal police department which exercises state arrest powers under 65.17section 
         626.90, 
         626.91, 
         626.92, or 
         626.93;65.18    (7) for purposes of the police state aid program only, the Metropolitan Airports 65.19Commission; and65.20    (8) for purposes of the police state aid program only, the Department of Natural 65.21Resources and the Department of Public Safety with respect to peace officers covered 65.22under chapter 352B.65.23    (c) "Minnesota Firetown Premium Report" means a form prescribed by the 65.24commissioner containing space for reporting by insurers of fire, lightning, sprinkler 65.25leakage and extended coverage premiums received upon risks located or to be performed 65.26in this state less return premiums and dividends.65.27    (d) "Firetown" means the area serviced by any municipality having a qualified fire 65.28department or a qualified incorporated fire department having a subsidiary volunteer 65.29firefighters' relief association.65.30    (e) "Estimated market value" means latest available estimated market value of all 65.31property in a taxing jurisdiction, whether the property is subject to taxation, or exempt 65.32from ad valorem taxation obtained from information which appears on abstracts filed with 65.33the commissioner of revenue or equalized by the State Board of Equalization.65.34    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 65.35commissioner for reporting by each fire and casualty insurer of all premiums received 66.1upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 66.2during the preceding calendar year, with reference to insurance written for insuring against 66.3the perils contained in auto insurance coverages as reported in the Minnesota business 66.4schedule of the annual financial statement which each insurer is required to file with 66.5the commissioner in accordance with the governing laws or rules less return premiums 66.6and dividends.66.7    (g) "Peace officer" means any person:66.8    (1) whose primary source of income derived from wages is from direct employment 66.9by a municipality or county as a law enforcement officer on a full-time basis of not less 66.10than 30 hours per week;66.11    (2) who has been employed for a minimum of six months prior to December 31 66.12preceding the date of the current year's certification under subdivision 2, clause (b);66.13    (3) who is sworn to enforce the general criminal laws of the state and local ordinances;66.14    (4) who is licensed by the Peace Officers Standards and Training Board and is 66.15authorized to arrest with a warrant; and66.16    (5) who is a member of the State Patrol retirement plan or the public employees 66.17police and fire fund.66.18    (h) "Full-time equivalent number of peace officers providing contract service" means 66.19the integral or fractional number of peace officers which would be necessary to provide 66.20the contract service if all peace officers providing service were employed on a full-time 66.21basis as defined by the employing unit and the municipality receiving the contract service.66.22    (i) "Retirement benefits other than a service pension" means any disbursement 66.23authorized under section 
         424A.05, subdivision 3, clauses (3) and (4).66.24    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:66.25    (1) for the police state aid program and police relief association financial reports:66.26    (i) the person who was elected or appointed to the specified position or, in the 66.27absence of the person, another person who is designated by the applicable governing body;66.28    (ii) in a park district, the secretary of the board of park district commissioners;66.29    (iii) in the case of the University of Minnesota, the official designated by the Board 66.30of Regents;66.31    (iv) for the Metropolitan Airports Commission, the person designated by the 66.32commission;66.33    (v) for the Department of Natural Resources or the Department of Public Safety, the 66.34respective commissioner;67.1    (vi) for a tribal police department which exercises state arrest powers under section 67.2626.90
         , 
         626.91, 
         626.92, or 
         626.93, the person designated by the applicable American 67.3Indian tribal government; and67.4    (2) for the fire state aid program and fire relief association financial reports, the 67.5person who was elected or appointed to the specified position, or, for governmental 67.6entities other than counties, if the governing body of the governmental entity designates 67.7the position to perform the function, the chief financial official of the governmental entity 67.8or the chief administrative official of the governmental entity.67.9    (k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 67.10retirement plan established by chapter 353G.67.11    Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:67.12    Subd. 7. Apportionment of fire state aid to municipalities and relief associations.67.13    (a) The commissioner shall apportion the fire state aid relative to the premiums reported 67.14on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 67.15and/or firefighters relief association.67.16    (b) The commissioner shall calculate an initial fire state aid allocation amount for 67.17each municipality or fire department under paragraph (c) and a minimum fire state aid 67.18allocation amount for each municipality or fire department under paragraph (d). The 67.19municipality or fire department must receive the larger fire state aid amount.67.20    (c) The initial fire state aid allocation amount is the amount available for 67.21apportionment as fire state aid under subdivision 5, without inclusion of any additional 67.22funding amount to support a minimum fire state aid amount under section 
         423A.02, 67.23subdivision 3
         , allocated one-half in proportion to the population as shown in the last official 67.24statewide federal census for each fire town and one-half in proportion to the estimated 67.25market value of each fire town, including (1) the estimated market value of tax-exempt 67.26property and (2) the estimated market value of natural resources lands receiving in lieu 67.27payments under sections 
         477A.11 to 
         477A.14, but excluding the estimated market value 67.28of minerals. In the case of incorporated or municipal fire departments furnishing fire 67.29protection to other cities, towns, or townships as evidenced by valid fire service contracts 67.30filed with the commissioner, the distribution must be adjusted proportionately to take 67.31into consideration the crossover fire protection service. Necessary adjustments must be 67.32made to subsequent apportionments. In the case of municipalities or independent fire 67.33departments qualifying for the aid, the commissioner shall calculate the state aid for the 67.34municipality or relief association on the basis of the population and the estimated market 67.35value of the area furnished fire protection service by the fire department as evidenced by 68.1duly executed and valid fire service agreements filed with the commissioner. If one or 68.2more fire departments are furnishing contracted fire service to a city, town, or township, 68.3only the population and estimated market value of the area served by each fire department 68.4may be considered in calculating the state aid and the fire departments furnishing service 68.5shall enter into an agreement apportioning among themselves the percent of the population 68.6and the estimated market value of each service area. The agreement must be in writing 68.7and must be filed with the commissioner.68.8    (d) The minimum fire state aid allocation amount is the amount in addition to the 68.9initial fire state allocation amount that is derived from any additional funding amount 68.10to support a minimum fire state aid amount under section 
         423A.02, subdivision 3, and 68.11allocated to municipalities with volunteer firefighters relief associations or covered by the 68.12voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 68.13of active volunteer firefighters who are members of the relief association as reported 68.14in the annual financial reporting for the calendar year 1993 to the Office of the State 68.15Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 68.16fire departments with volunteer firefighters relief associations receive in total at least a 68.17minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 68.1830 firefighters. If a relief association is established after calendar year 1993 and before 68.19calendar year 2000, the number of active volunteer firefighters who are members of the 68.20relief association as reported in the annual financial reporting for calendar year 1998 68.21to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 68.22shall be used in this determination. If a relief association is established after calendar 68.23year 1999, the number of active volunteer firefighters who are members of the relief 68.24association as reported in the first annual financial reporting submitted to the Office of 68.25the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 68.26determination. If a relief association is terminated as a result of providing retirement 68.27coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 68.28firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 68.29of the municipality covered by the statewide plan as certified by the executive director of 68.30the Public Employees Retirement Association to the commissioner and the state auditor, 68.31but not to exceed 30 active firefighters, must be used in this determination.68.32    (e) Unless the firefighters of the applicable fire department are members of the 68.33voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 68.34be paid to the treasurer of the municipality where the fire department is located and the 68.35treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 68.36the aid to the relief association if the relief association has filed a financial report with the 69.1treasurer of the municipality and has met all other statutory provisions pertaining to the 69.2aid apportionment. If the firefighters of the applicable fire department are members of 69.3the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 69.4must be paid to the executive director of the Public Employees Retirement Association 69.5and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.69.6    (f) The commissioner may make rules to permit the administration of the provisions 69.7of this section.69.8    (g) Any adjustments needed to correct prior misallocations must be made to 69.9subsequent apportionments.69.10    Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:69.11    Subd. 8. Population and estimated market value. (a) In computations relating to 69.12fire state aid requiring the use of population figures, only official statewide federal census 69.13figures are to be used. Increases or decreases in population disclosed by reason of any 69.14special census must not be taken into consideration.69.15    (b) In calculations relating to fire state aid requiring the use of estimated market 69.16value property figures, only the latest available estimated market value property figures 69.17may be used.69.18    Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:69.19    Subd. 3. Determination of estimated market value. In determining the net tax 69.20capacity of property within any taxing district the value of the surface of lands within any 69.21auxiliary forest therein, as determined by the county board under the provisions of section 69.2288.48, subdivision 3
         , shall, for all purposes except the levying of taxes on lands within any 69.23such forest, be deemed the estimated market value thereof.69.24    Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:69.25    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local 69.26government unit may annually levy a tax on all taxable property in the district for the 69.27purposes for which the tax district is established. The tax may not exceed 0.02418 percent 69.28of estimated market value on taxable property located in rural towns other than urban 69.29towns, unless allowed by resolution of the town electors. The proceeds of the tax shall 69.30be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve 69.31fund at the time the tax is terminated or the district is dissolved shall be transferred and 69.32irrevocably pledged to the debt service fund of the local unit to be used solely to reduce 69.33tax levies for bonded indebtedness of taxable property in the district.70.1    Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:70.2    Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued 70.3under subdivision 7 and the payment required under subdivision 6, the county shall 70.4irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property 70.5located within the territory of the watershed management organization or subwatershed 70.6unit for which the bonds are issued. Each year until the reserve for payment of the bonds 70.7is sufficient to retire the bonds, the county shall levy on all taxable property in the territory 70.8of the organization or unit, without respect to any statutory or other limitation on taxes, an 70.9amount of taxes sufficient to pay principal and interest on the bonds and to restore any 70.10deficiencies in reserves required to be maintained for payment of the bonds.70.11    (b) The tax levied on rural towns other than urban towns may not exceed 0.02418 70.12percent of taxableestimated market value, unless approved by resolution of the town 70.13electors.70.14    (c) If at any time the amounts available from the levy on property in the territory of 70.15the organization are insufficient to pay principal and interest on the bonds when due, the 70.16county shall make payment from any available funds in the county treasury.70.17    (d) The amount of any taxes which are required to be levied outside of the territory 70.18of the watershed management organization or unit or taken from the general funds of the 70.19county to pay principal or interest on the bonds shall be reimbursed to the county from 70.20taxes levied within the territory of the watershed management organization or unit.70.21    Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:70.22    Subd. 2. Municipal funding of district. (a) The governing body or board of 70.23supervisors of each municipality in the district must provide the funds necessary to meet 70.24its proportion of the total cost determined by the board, provided the total funding from 70.25all municipalities in the district for the costs shall not exceed an amount equal to .00242 70.26percent of the total taxable estimated market value within the district, unless three-fourths 70.27of the municipalities in the district pass a resolution concurring to the additional costs.70.28    (b) The funds must be deposited in the treasury of the district in amounts and at 70.29times as the treasurer of the district requires.70.30    Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:70.31    Subd. 2. Municipal funding of district. (a) The governing body or board of 70.32supervisors of each municipality in the district shall provide the funds necessary to meet its 70.33proportion of the total cost to be borne by the municipalities as finally certified by the board.71.1    (b) The municipality's funds may be raised by any means within the authority of 71.2the municipality. The municipalities may each levy a tax not to exceed .02418 percent of 71.3taxable estimated market value on the taxable property located in the district to provide 71.4the funds. The levy shall be within all other limitations provided by law.71.5    (c) The funds must be deposited into the treasury of the district in amounts and at 71.6times as the treasurer of the district requires.71.7    Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:71.8    Subd. 2. Organizational expense fund. (a) An organizational expense fund, 71.9consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated71.10 market value, or $60,000, whichever is less. The money in the fund shall be used for 71.11organizational expenses and preparation of the watershed management plan for projects.71.12    (b) The managers may borrow from the affected counties up to 75 percent of the 71.13anticipated funds to be collected from the organizational expense fund levy and the 71.14counties affected may make the advancements.71.15    (c) The advancement of anticipated funds shall be apportioned among affected 71.16counties in the same ratio as the net tax capacity of the area of the counties within 71.17the watershed district bears to the net tax capacity of the entire watershed district. If a 71.18watershed district is enlarged, an organizational expense fund may be levied against the 71.19area added to the watershed district in the same manner as provided in this subdivision.71.20    (d) Unexpended funds collected for the organizational expense may be transferred to 71.21the administrative fund and used for the purposes of the administrative fund.71.22    Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:71.23    Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may 71.24not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is 71.25less. The money in the fund shall be used for general administrative expenses and for 71.26the construction or implementation and maintenance of projects of common benefit to 71.27the watershed district. The managers may make an annual levy for the general fund as 71.28provided in section 
         103D.911. In addition to the annual general levy, the managers may 71.29annually levy a tax not to exceed 0.00798 percent of taxable estimated market value 71.30for a period not to exceed 15 consecutive years to pay the cost attributable to the basic 71.31water management features of projects initiated by petition of a political subdivision 71.32within the watershed district or by petition of at least 50 resident owners whose property 71.33is within the watershed district.72.1    Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:72.2    Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund 72.3is established and used only if other funds are not available to the watershed district to pay 72.4for making necessary surveys and acquiring data.72.5    (b) The survey and data acquisition fund consists of the proceeds of a property tax 72.6that can be levied only once every five years. The levy may not exceed 0.02418 percent of 72.7taxable estimated market value.72.8    (c) The balance of the survey and data acquisition fund may not exceed $50,000.72.9    (d) In a subsequent proceeding for a project where a survey has been made, the 72.10attributable cost of the survey as determined by the managers shall be included as a part of 72.11the cost of the work and the sum shall be repaid to the survey and data acquisition fund.72.12    Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:72.13    Subd. 7. Structurally substandard. "Structurally substandard" means a building:72.14    (1) that was inspected by the appropriate local government and cited for one or more 72.15enforceable housing, maintenance, or building code violations;72.16    (2) in which the cited building code violations involve one or more of the following:72.17    (i) a roof and roof framing element;72.18    (ii) support walls, beams, and headers;72.19    (iii) foundation, footings, and subgrade conditions;72.20    (iv) light and ventilation;72.21    (v) fire protection, including egress;72.22    (vi) internal utilities, including electricity, gas, and water;72.23    (vii) flooring and flooring elements; or72.24    (viii) walls, insulation, and exterior envelope;72.25    (3) in which the cited housing, maintenance, or building code violations have not 72.26been remedied after two notices to cure the noncompliance; and72.27    (4) has uncured housing, maintenance, and building code violations, satisfaction of 72.28which would cost more than 50 percent of the assessor's taxable estimated market value 72.29for the building, excluding land value, as determined under section 
         273.11 for property 72.30taxes payable in the year in which the condemnation is commenced.72.31A local government is authorized to seek from a judge or magistrate an administrative 72.32warrant to gain access to inspect a specific building in a proposed development or 72.33redevelopment area upon showing of probable cause that a specific code violation has 72.34occurred and that the violation has not been cured, and that the owner has denied the local 72.35government access to the property. Items of evidence that may support a conclusion of 73.1probable cause may include recent fire or police inspections, housing inspection, exterior 73.2evidence of deterioration, or other similar reliable evidence of deterioration in the specific 73.3building.73.4    Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:73.5    Subdivision 1. Computation. The Department of Revenue must annually conduct 73.6an assessment/sales ratio study of the taxable property in each county, city, town, and 73.7school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 73.8results of this assessment/sales ratio study, the Department of Revenue must determine an 73.9aggregate equalized net tax capacity for the various classes of taxable property in each 73.10taxing district, the aggregate of which tax capacity shall be is designated as the adjusted net 73.11tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of 73.12tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution 73.13tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission 73.14lines required to be subtracted from the local tax base under section 273.425; and increased 73.15by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The 73.16adjusted net tax capacities shall be determined using the net tax capacity percentages in 73.17effect for the assessment year following the assessment year of the study. The Department 73.18of Revenue must make whatever estimates are necessary to account for changes in the 73.19classification system. The Department of Revenue may incur the expense necessary to 73.20make the determinations. The commissioner of revenue may reimburse any county or 73.21governmental official for requested services performed in ascertaining the adjusted net tax 73.22capacity. On or before March 15 annually, the Department of Revenue shall file with the 73.23chair of the Tax Committee of the house of representatives and the chair of the Committee 73.24on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school 73.25districts. On or before June 15 annually, the Department of Revenue shall file its final report 73.26on the adjusted net tax capacities for school districts established by the previous year's 73.27assessments and the current year's net tax capacity percentages with the commissioner of 73.28education and each county auditor for those school districts for which the auditor has the 73.29responsibility for determination of local tax rates. A copy of the report so filed shall be 73.30mailed to the clerk of each school district involved and to the county assessor or supervisor 73.31of assessments of the county or counties in which each school district is located.73.32EFFECTIVE DATE.This section is effective the day following final enactment.74.1    Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:74.2138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 74.3TOWNS.74.4    The governing body of any home rule charter or statutory city or town may annually 74.5appropriate from its general fund an amount not to exceed 0.02418 percent of taxable74.6 estimated market value, derived from ad valorem taxes on property or other revenues, to 74.7be paid to the historical society of its respective county to be used for the promotion of 74.8historical work and to aid in defraying the expenses of carrying on the historical work in the 74.9county. No city or town may appropriate any funds for the benefit of any historical society 74.10unless the society is affiliated with and approved by the Minnesota Historical Society.74.11    Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:74.12    Subd. 4. Property tax levy authority. The district's board may levy a tax on the 74.13taxable real and personal property in the district. The ad valorem tax levy may not exceed 74.140.048 percent of the taxable estimated market value of the district or $400,000, whichever 74.15is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall 74.16certify the levy at the times as provided under section 
         275.07. The board shall provide the 74.17county with whatever information is necessary to identify the property that is located within 74.18the district. If the boundaries include a part of a parcel, the entire parcel shall be included 74.19in the district. The county auditors must spread, collect, and distribute the proceeds of the 74.20tax at the same time and in the same manner as provided by law for all other property taxes.74.21    Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:74.22    Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596 74.23percent on each rural county's total taxable estimated market value for the last preceding 74.24calendar year shall be computed and shall be subtracted from the county's total estimated 74.25construction costs. The result thereof shall be the money needs of the county. For the 74.26purpose of this section, "rural counties" means all counties having a population of less 74.27than 175,000.74.28    Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:74.29    Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967 74.30percent on each urban county's total taxable estimated market value for the last preceding 74.31calendar year shall be computed and shall be subtracted from the county's total estimated 74.32construction costs. The result thereof shall be the money needs of the county. For 75.1the purpose of this section, "urban counties" means all counties having a population 75.2of 175,000 or more.75.3    Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:75.4    Subd. 3. Bridges within certain cities. When the council of any statutory city or 75.5city of the third or fourth class may determine that it is necessary to build or improve any 75.6bridge or bridges, including approaches thereto, and any dam or retaining works connected 75.7therewith, upon or forming a part of streets or highways either wholly or partly within 75.8its limits, the county board shall appropriate one-half of the money as may be necessary 75.9therefor from the county road and bridge fund, not exceeding during any year one-half 75.10the amount of taxes paid into the county road and bridge fund during the preceding year, 75.11on property within the corporate limits of the city. The appropriation shall be made upon 75.12the petition of the council, which petition shall be filed by the council with the county 75.13board prior to the fixing by the board of the annual county tax levy. The county board 75.14shall determine the plans and specifications, shall let all necessary contracts, shall have 75.15charge of construction, and upon its request, warrants in payment thereof shall be issued 75.16by the county auditor, from time to time, as the construction work proceeds. Any unpaid 75.17balance may be paid or advanced by the city. On petition of the council, the appropriations 75.18of the county board, during not to exceed three successive years, may be made to apply 75.19on the construction of the same items and to repay any money advanced by the city in 75.20the construction thereof. None of the provisions of this section shall be construed to 75.21be mandatory as applied to any city whose estimated market value exceeds $2,100 per 75.22capita of its population.75.23    Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:75.24    Subd. 6. Expenditure in certain counties. In any county having not less than 95 75.25nor more than 105 full and fractional townships, and having a an estimated market value 75.26of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,75.27 the county board, by resolution, may expend the funds provided in subdivision 4 in any 75.28organized or unorganized township town or unorganized territory or portion thereof in 75.29such county.75.30    Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:75.31    Subdivision 1. Certain counties may issue and sell. The county board of any 75.32county having no outstanding road and bridge bonds may issue and sell county road bonds 75.33in an amount not exceeding 0.12089 percent of the estimated market value of the taxable 76.1property within the county exclusive of money and credits, for the purpose of constructing, 76.2reconstructing, improving, or maintaining any bridge or bridges on any highway under its 76.3jurisdiction, without submitting the matter to a vote of the electors of the county.76.4    Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 76.5to read:76.6    Subd. 14.Estimated market value."Estimated market value" means the assessor's 76.7determination of market value, including the effects of any orders made under section 76.8270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain 76.9uses in determining the total estimated market value for the taxing jurisdiction.76.10    Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 76.11to read:76.12    Subd. 15.Taxable market value."Taxable market value" means estimated market 76.13value for the parcel as reduced by market value exclusions, deferments of value, or other 76.14adjustments required by law, that reduce market value before the application of class rates.76.15    Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:76.16273.032 MARKET VALUE DEFINITION.76.17    (a) Unless otherwise provided, for the purpose of determining any property tax 76.18levy limitation based on market value or any limit on net debt, the issuance of bonds, 76.19certificates of indebtedness, or capital notes based on market value, any qualification to 76.20receive state aid based on market value, or any state aid amount based on market value, the 76.21terms "market value," "taxable estimated market value," and "market valuation," whether 76.22equalized or unequalized, mean the total taxable estimated market value of taxable property 76.23within the local unit of government before any of the following or similar adjustments for:76.24    (1) the market value exclusions under:76.25    (i) section 273.11, subdivisions 14a and 14c (vacant platted land);76.26    (ii) section 273.11, subdivision 16 (certain improvements to homestead property);76.27    (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 76.28properties);76.29    (iv) section 273.11, subdivision 21 (homestead property damaged by mold);76.30    (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);76.31    (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 76.32caregiver);76.33    (vii) section 273.13, subdivision 35 (homestead market value exclusion); or77.1    (2) the deferment of value under:77.2    (i) the Minnesota Agricultural Property Tax Law, section 273.111;77.3    (ii) the Aggregate Resource Preservation Law, section 273.1115;77.4    (iii) the Minnesota Open Space Property Tax Law, section 273.112;77.5    (iv) the rural preserves property tax program, section 273.114; or77.6    (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or77.7    (3) the adjustments to tax capacity for:77.8    (i) tax increment, financing under sections 469.174 to 469.1794;77.9    (ii) fiscal disparity, disparities under chapter 276A or 473F; or77.10    (iii)  powerline credit, or wind energy values, but after the limited market adjustments 77.11under section 273.11, subdivision 1a, and after the market value exclusions of certain 77.12improvements to homestead property under section 273.11, subdivision 16 under section 77.13273.425.77.14    (b) Estimated market value under paragraph (a) also includes the market value 77.15of tax-exempt property if the applicable law specifically provides that the limitation, 77.16qualification, or aid calculation includes tax-exempt property.77.17    (c) Unless otherwise provided, "market value," "taxable estimated market value," 77.18and "market valuation" for purposes of this paragraph property tax levy limitations and 77.19calculation of state aid, refer to the taxable estimated market value for the previous 77.20assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of 77.21indebtedness, or capital notes refer to the estimated market value as last finally equalized.77.22    For the purpose of determining any net debt limit based on market value, or any limit 77.23on the issuance of bonds, certificates of indebtedness, or capital notes based on market 77.24value, the terms "market value," "taxable market value," and "market valuation," whether 77.25equalized or unequalized, mean the total taxable market value of property within the local 77.26unit of government before any adjustments for tax increment, fiscal disparity, powerline 77.27credit, or wind energy values, but after the limited market value adjustments under section 77.28273.11, subdivision 1a, and after the market value exclusions of certain improvements to 77.29homestead property under section 273.11, subdivision 16. Unless otherwise provided, 77.30"market value," "taxable market value," and "market valuation" for purposes of this 77.31paragraph, mean the taxable market value as last finally equalized.77.32    (d) For purposes of a provision of a home rule charter or of any special law that is not 77.33codified in the statutes and that imposes a levy limitation based on market value or any limit 77.34on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 77.35value, the terms "market value," "taxable market value," and "market valuation," whether 77.36equalized or unequalized, mean "estimated market value" as defined in paragraph (a).78.1    Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:78.2    Subdivision 1. Generally. Except as provided in this section or section 
         273.17, 78.3subdivision 1
         , all property shall be valued at its market value. The market value as 78.4determined pursuant to this section shall be stated such that any amount under $100 is 78.5rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 78.6In estimating and determining such value, the assessor shall not adopt a lower or different 78.7standard of value because the same is to serve as a basis of taxation, nor shall the assessor 78.8adopt as a criterion of value the price for which such property would sell at a forced sale, 78.9or in the aggregate with all the property in the town or district; but the assessor shall value 78.10each article or description of property by itself, and at such sum or price as the assessor 78.11believes the same to be fairly worth in money. The assessor shall take into account the 78.12effect on the market value of property of environmental factors in the vicinity of the 78.13property. In assessing any tract or lot of real property, the value of the land, exclusive of 78.14structures and improvements, shall be determined, and also the value of all structures and 78.15improvements thereon, and the aggregate value of the property, including all structures 78.16and improvements, excluding the value of crops growing upon cultivated land. In valuing 78.17real property upon which there is a mine or quarry, it shall be valued at such price as such 78.18property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, 78.19if the material being mined or quarried is not subject to taxation under section 
         298.01578.20and the mine or quarry is not exempt from the general property tax under section 
         298.25. 78.21In valuing real property which is vacant, platted property shall be assessed as provided 78.22in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is 78.23taxable under section 
         272.01, subdivision 2, or 
         273.19, shall be valued at the market 78.24value of such property and not at the value of a leasehold estate in such property, or at 78.25some lesser value than its market value.78.26    Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:78.27    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home 78.28park is owned by a corporation or association organized under chapter 308A or 308B, 78.29and each person who owns a share or shares in the corporation or association is entitled 78.30to occupy a lot within the park, the corporation or association may claim homestead 78.31treatment for the park. Each lot must be designated by legal description or number, and 78.32each lot is limited to not more than one-half acre of land.78.33    (b) The manufactured home park shall be entitled to homestead treatment if all 78.34of the following criteria are met:79.1    (1) the occupant or the cooperative corporation or association is paying the ad 79.2valorem property taxes and any special assessments levied against the land and structure 79.3either directly, or indirectly through dues to the corporation or association; and79.4    (2) the corporation or association organized under chapter 308A or 308B is wholly 79.5owned by persons having a right to occupy a lot owned by the corporation or association.79.6    (c) A charitable corporation, organized under the laws of Minnesota with no 79.7outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) 79.8tax-exempt status, qualifies for homestead treatment with respect to a manufactured home 79.9park if its members hold residential participation warrants entitling them to occupy a lot 79.10in the manufactured home park.79.11    (d) "Homestead treatment" under this subdivision means the class rate provided for 79.12class 4c property classified under section 
         273.13, subdivision 25, paragraph (d), clause (5), 79.13item (ii). The homestead market value credit exclusion under section 
         273.1384 273.13, 79.14subdivision 35, does not apply and the property taxes assessed against the park shall not 79.15be included in the determination of taxes payable for rent paid under section 
         290A.03.79.16EFFECTIVE DATE.This section is effective for taxes payable in 2013 and 79.17thereafter.79.18    Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:79.19    Subd. 13. Homestead application. (a) A person who meets the homestead 79.20requirements under subdivision 1 must file a homestead application with the county 79.21assessor to initially obtain homestead classification.79.22    (b) The format and contents of a uniform homestead application shall be prescribed 79.23by the commissioner of revenue. The application must clearly inform the taxpayer that 79.24this application must be signed by all owners who occupy the property or by the qualifying 79.25relative and returned to the county assessor in order for the property to receive homestead 79.26treatment.79.27    (c) Every property owner applying for homestead classification must furnish to the 79.28county assessor the Social Security number of each occupant who is listed as an owner 79.29of the property on the deed of record, the name and address of each owner who does not 79.30occupy the property, and the name and Social Security number of each owner's spouse who 79.31occupies the property. The application must be signed by each owner who occupies the 79.32property and by each owner's spouse who occupies the property, or, in the case of property 79.33that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.79.34    If a property owner occupies a homestead, the property owner's spouse may not 79.35claim another property as a homestead unless the property owner and the property owner's 80.1spouse file with the assessor an affidavit or other proof required by the assessor stating that 80.2the property qualifies as a homestead under subdivision 1, paragraph (e).80.3    Owners or spouses occupying residences owned by their spouses and previously 80.4occupied with the other spouse, either of whom fail to include the other spouse's name 80.5and Social Security number on the homestead application or provide the affidavits or 80.6other proof requested, will be deemed to have elected to receive only partial homestead 80.7treatment of their residence. The remainder of the residence will be classified as 80.8nonhomestead residential. When an owner or spouse's name and Social Security number 80.9appear on homestead applications for two separate residences and only one application is 80.10signed, the owner or spouse will be deemed to have elected to homestead the residence for 80.11which the application was signed.80.12    The Social Security numbers, state or federal tax returns or tax return information, 80.13including the federal income tax schedule F required by this section, or affidavits or other 80.14proofs of the property owners and spouses submitted under this or another section to 80.15support a claim for a property tax homestead classification are private data on individuals as 80.16defined by section 
         13.02, subdivision 12, but, notwithstanding that section, the private data 80.17may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the 80.18Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.80.19    (d) If residential real estate is occupied and used for purposes of a homestead by a 80.20relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 80.21order for the property to receive homestead status, a homestead application must be filed 80.22with the assessor. The Social Security number of each relative and spouse of a relative 80.23occupying the property shall be required on the homestead application filed under this 80.24subdivision. If a different relative of the owner subsequently occupies the property, the 80.25owner of the property must notify the assessor within 30 days of the change in occupancy. 80.26The Social Security number of a relative or relative's spouse occupying the property 80.27is private data on individuals as defined by section 
         13.02, subdivision 12, but may be 80.28disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 80.29Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.80.30    (e) The homestead application shall also notify the property owners that the 80.31application filed under this section will not be mailed annually and that if the property 80.32is granted homestead status for any assessment year, that same property shall remain 80.33classified as homestead until the property is sold or transferred to another person, or 80.34the owners, the spouse of the owner, or the relatives no longer use the property as their 80.35homestead. Upon the sale or transfer of the homestead property, a certificate of value must 80.36be timely filed with the county auditor as provided under section 
         272.115. Failure to 81.1notify the assessor within 30 days that the property has been sold, transferred, or that the 81.2owner, the spouse of the owner, or the relative is no longer occupying the property as a 81.3homestead, shall result in the penalty provided under this subdivision and the property 81.4will lose its current homestead status.81.5    (f) If the homestead application is not returned within 30 days, the county will send a 81.6second application to the present owners of record. The notice of proposed property taxes 81.7prepared under section 
         275.065, subdivision 3, shall reflect the property's classification. If 81.8a homestead application has not been filed with the county by December 15, the assessor 81.9shall classify the property as nonhomestead for the current assessment year for taxes 81.10payable in the following year, provided that the owner may be entitled to receive the 81.11homestead classification by proper application under section 
         375.192.81.12    (g) At the request of the commissioner, each county must give the commissioner a 81.13list that includes the name and Social Security number of each occupant of homestead 81.14property who is the property owner, property owner's spouse, qualifying relative of a 81.15property owner, or a spouse of a qualifying relative. The commissioner shall use the 81.16information provided on the lists as appropriate under the law, including for the detection 81.17of improper claims by owners, or relatives of owners, under chapter 290A.81.18    (h) If the commissioner finds that a property owner may be claiming a fraudulent 81.19homestead, the commissioner shall notify the appropriate counties. Within 90 days of 81.20the notification, the county assessor shall investigate to determine if the homestead 81.21classification was properly claimed. If the property owner does not qualify, the county 81.22assessor shall notify the county auditor who will determine the amount of homestead 81.23benefits that had been improperly allowed. For the purpose of this section, "homestead 81.24benefits" means the tax reduction resulting from the classification as a homestead and the 81.25homestead market value exclusion under section 
         273.13, the taconite homestead credit 81.26under section 
         273.135, the residential homestead and agricultural homestead credits credit81.27 under section 
         273.1384, and the supplemental homestead credit under section 
         273.1391.81.28    The county auditor shall send a notice to the person who owned the affected property 81.29at the time the homestead application related to the improper homestead was filed, 81.30demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 81.31of the homestead benefits. The person notified may appeal the county's determination 81.32by serving copies of a petition for review with county officials as provided in section 81.33278.01
          and filing proof of service as provided in section 
         278.01 with the Minnesota Tax 81.34Court within 60 days of the date of the notice from the county. Procedurally, the appeal 81.35is governed by the provisions in chapter 271 which apply to the appeal of a property tax 81.36assessment or levy, but without requiring any prepayment of the amount in controversy. If 82.1the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 82.2has been filed, the county auditor shall certify the amount of taxes and penalty to the county 82.3treasurer. The county treasurer will add interest to the unpaid homestead benefits and 82.4penalty amounts at the rate provided in section 
         279.03 for real property taxes becoming 82.5delinquent in the calendar year during which the amount remains unpaid. Interest may be 82.6assessed for the period beginning 60 days after demand for payment was made.82.7    If the person notified is the current owner of the property, the treasurer may add the 82.8total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 82.9otherwise payable on the property by including the amounts on the property tax statements 82.10under section 
         276.04, subdivision 3. The amounts added under this paragraph to the ad 82.11valorem taxes shall include interest accrued through December 31 of the year preceding 82.12the taxes payable year for which the amounts are first added. These amounts, when added 82.13to the property tax statement, become subject to all the laws for the enforcement of real or 82.14personal property taxes for that year, and for any subsequent year.82.15    If the person notified is not the current owner of the property, the treasurer may 82.16collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 82.17the powers granted in sections 
         277.20 and 
         277.21 without exclusion, to enforce payment 82.18of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 82.19tax obligations of the person who owned the property at the time the application related to 82.20the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 82.21personal liability for the homestead benefits, penalty, interest, and costs, and instead extend 82.22those amounts on the tax lists against the property as provided in this paragraph to the extent 82.23that the current owner agrees in writing. On all demands, billings, property tax statements, 82.24and related correspondence, the county must list and state separately the amounts of 82.25homestead benefits, penalty, interest and costs being demanded, billed or assessed.82.26    (i) Any amount of homestead benefits recovered by the county from the property 82.27owner shall be distributed to the county, city or town, and school district where the 82.28property is located in the same proportion that each taxing district's levy was to the total 82.29of the three taxing districts' levy for the current year. Any amount recovered attributable 82.30to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 82.31deposited in the taconite property tax relief account. Any amount recovered that is 82.32attributable to supplemental homestead credit is to be transmitted to the commissioner of 82.33revenue for deposit in the general fund of the state treasury. The total amount of penalty 82.34collected must be deposited in the county general fund.82.35    (j) If a property owner has applied for more than one homestead and the county 82.36assessors cannot determine which property should be classified as homestead, the county 83.1assessors will refer the information to the commissioner. The commissioner shall make 83.2the determination and notify the counties within 60 days.83.3    (k) In addition to lists of homestead properties, the commissioner may ask the 83.4counties to furnish lists of all properties and the record owners. The Social Security 83.5numbers and federal identification numbers that are maintained by a county or city 83.6assessor for property tax administration purposes, and that may appear on the lists retain 83.7their classification as private or nonpublic data; but may be viewed, accessed, and used by 83.8the county auditor or treasurer of the same county for the limited purpose of assisting the 83.9commissioner in the preparation of microdata samples under section 
         270C.12.83.10    (l) On or before April 30 each year beginning in 2007, each county must provide the 83.11commissioner with the following data for each parcel of homestead property by electronic 83.12means as defined in section 
         289A.02, subdivision 8:83.13    (i) the property identification number assigned to the parcel for purposes of taxes 83.14payable in the current year;83.15    (ii) the name and Social Security number of each occupant of homestead property 83.16who is the property owner, property owner's spouse, qualifying relative of a property 83.17owner, or spouse of a qualifying relative;83.18    (iii) the classification of the property under section 
         273.13 for taxes payable in the 83.19current year and in the prior year;83.20    (iv) an indication of whether the property was classified as a homestead for taxes 83.21payable in the current year because of occupancy by a relative of the owner or by a 83.22spouse of a relative;83.23    (v) the property taxes payable as defined in section 
         290A.03, subdivision 13, for the 83.24current year and the prior year;83.25    (vi) the market value of improvements to the property first assessed for tax purposes 83.26for taxes payable in the current year;83.27    (vii) the assessor's estimated market value assigned to the property for taxes payable 83.28in the current year and the prior year;83.29    (viii) the taxable market value assigned to the property for taxes payable in the 83.30current year and the prior year;83.31    (ix) whether there are delinquent property taxes owing on the homestead;83.32    (x) the unique taxing district in which the property is located; and83.33    (xi) such other information as the commissioner decides is necessary.83.34    The commissioner shall use the information provided on the lists as appropriate 83.35under the law, including for the detection of improper claims by owners, or relatives 83.36of owners, under chapter 290A.84.1EFFECTIVE DATE.This section is effective for taxes payable in 2013 and 84.2thereafter.84.3    Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:84.4    Subd. 21b. Net tax capacity.(a) Gross tax capacity means the product of the 84.5appropriate gross class rates in this section and market values.84.6    (b) Net tax capacity means the product of the appropriate net class rates in this 84.7section and taxable market values.84.8EFFECTIVE DATE.This section is effective the day following final enactment.84.9    Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:84.10    Subd. 3. Disparity reduction aid.  The amount of disparity aid certified for each 84.11taxing district within each unique taxing jurisdiction for taxes payable in the prior year 84.12shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for 84.13taxes payable in the year for which aid is being computed, to (2) its tax capacity using 84.14the class rates for taxes payable in the year prior to that for which aid is being computed, 84.15both based upon taxable market values for taxes payable in the year prior to that for which 84.16aid is being computed. If the commissioner determines that insufficient information is 84.17available to reasonably and timely calculate the numerator in this ratio for the first taxes 84.18payable year that a class rate change or new class rate is effective, the commissioner shall 84.19omit the effects of that class rate change or new class rate when calculating this ratio for 84.20aid payable in that taxes payable year. For aid payable in the year following a year for 84.21which such omission was made, the commissioner shall use in the denominator for the 84.22class that was changed or created, the tax capacity for taxes payable two years prior to that 84.23in which the aid is payable, based on taxable market values for taxes payable in the year 84.24prior to that for which aid is being computed.84.25    Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:84.26    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, 84.27class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property 84.28is located in a border city that has an enterprise zone, as defined in section 
         469.166; (2) 84.29the property is located in a city with a population greater than 2,500 and less than 35,000 84.30according to the 1980 decennial census; (3) the city is adjacent to a city in another state or 84.31immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city 84.32in the other state has a population of greater than 5,000 and less than 75,000 according to 84.33the 1980 decennial census.85.1    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 85.2property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a 85.3property to 2.3 percent of taxable market value.85.4    (c) The county auditor shall annually certify the costs of the credits to the 85.5Department of Revenue. The department shall reimburse local governments for the 85.6property taxes forgone as the result of the credits in proportion to their total levies.85.7    Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:85.8    Subdivision 1. Determination of levy limit. The property tax levied for any 85.9purpose under a special law that is not codified in Minnesota Statutes or a city charter 85.10provision and that is subject to a mill rate limitation imposed by the special law or city 85.11charter provision, excluding levies subject to mill rate limitations that use adjusted 85.12assessed values determined by the commissioner of revenue under section 
         124.2131, must 85.13not exceed the following amount for the years specified:85.14    (a) for taxes payable in 1988, the product of the applicable mill rate limitation 85.15imposed by special law or city charter provision multiplied by the total assessed valuation 85.16of all taxable property subject to the tax as adjusted by the provisions of Minnesota 85.17Statutes 1986, sections 
         272.64; 
         273.13, subdivision 7a; and 
         275.49;85.18    (b) for taxes payable in 1989, the product of (1) the property tax levy limitation for 85.19the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for 85.20market valuation changes equal to the assessment year 1988 total market valuation of all 85.21taxable property subject to the tax divided by the assessment year 1987 total market 85.22valuation of all taxable property subject to the tax; and85.23    (c) for taxes payable in 1990 and subsequent years, the product of (1) the property 85.24tax levy limitation for the previous year determined pursuant to this subdivision multiplied 85.25by (2) an index for market valuation changes equal to the total market valuation of all 85.26taxable property subject to the tax for the current assessment year divided by the total 85.27market valuation of all taxable property subject to the tax for the previous assessment year.85.28    For the purpose of determining the property tax levy limitation for the taxes payable 85.29year 1988 2014 and subsequent years under this subdivision, "total market valuation" 85.30means the total estimated market valuation value of all taxable property subject to the 85.31tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax 85.32increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)85.33 as provided under section 273.032.85.34    Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:86.1    Subd. 2. Correction of levy amount. The difference between the correct levy and 86.2the erroneous levy shall be added to the township levy for the subsequent levy year; 86.3provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated86.4 market value, the excess shall be added to the township levy for the second and later 86.5subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable86.6 estimated market value in any year, until the full amount of the difference has been levied. 86.7The funds collected from the corrected levies shall be used to reimburse the county for the 86.8payment required by subdivision 1.86.9    Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:86.10    Subd. 4. Adjusted levy limit base.  For taxes levied in 2008 through 2010, the 86.11adjusted levy limit base is equal to the levy limit base computed under subdivision 2 86.12or section 
         275.72, multiplied by:86.13    (1) one plus the percentage growth in the implicit price deflator, but the percentage 86.14shall not be less than zero or exceed 3.9 percent;86.15    (2) one plus a percentage equal to 50 percent of the percentage increase in the number 86.16of households, if any, for the most recent 12-month period for which data is available; and86.17    (3) one plus a percentage equal to 50 percent of the percentage increase in the 86.18taxable estimated market value of the jurisdiction due to new construction of class 3 86.19property, as defined in section 
         273.13, subdivision 4, except for state-assessed utility and 86.20railroad property, for the most recent year for which data is available.86.21    Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:86.22    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing 86.23of the tax statements. The commissioner of revenue shall prescribe the form of the property 86.24tax statement and its contents. The tax statement must not state or imply that property tax 86.25credits are paid by the state of Minnesota. The statement must contain a tabulated statement 86.26of the dollar amount due to each taxing authority and the amount of the state tax from the 86.27parcel of real property for which a particular tax statement is prepared. The dollar amounts 86.28attributable to the county, the state tax, the voter approved school tax, the other local school 86.29tax, the township or municipality, and the total of the metropolitan special taxing districts 86.30as defined in section 
         275.065, subdivision 3, paragraph (i), must be separately stated. 86.31The amounts due all other special taxing districts, if any, may be aggregated except that 86.32any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, 86.33Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate 86.34line directly under the appropriate county's levy. If the county levy under this paragraph 87.1includes an amount for a lake improvement district as defined under sections 
         103B.50187.2to 
         103B.581, the amount attributable for that purpose must be separately stated from the 87.3remaining county levy amount. In the case of Ramsey County, if the county levy under this 87.4paragraph includes an amount for public library service under section 
         134.07, the amount 87.5attributable for that purpose may be separated from the remaining county levy amount. 87.6The amount of the tax on homesteads qualifying under the senior citizens' property tax 87.7deferral program under chapter 290B is the total amount of property tax before subtraction 87.8of the deferred property tax amount. The amount of the tax on contamination value 87.9imposed under sections 
         270.91 to 
         270.98, if any, must also be separately stated. The dollar 87.10amounts, including the dollar amount of any special assessments, may be rounded to the 87.11nearest even whole dollar. For purposes of this section whole odd-numbered dollars may 87.12be adjusted to the next higher even-numbered dollar. The amount of market value excluded 87.13under section 
         273.11, subdivision 16, if any, must also be listed on the tax statement.87.14    (b) The property tax statements for manufactured homes and sectional structures 87.15taxed as personal property shall contain the same information that is required on the 87.16tax statements for real property.87.17    (c) Real and personal property tax statements must contain the following information 87.18in the order given in this paragraph. The information must contain the current year tax 87.19information in the right column with the corresponding information for the previous year 87.20in a column on the left:87.21    (1) the property's estimated market value under section 
         273.11, subdivision 1;87.22    (2) the property's homestead market value exclusion under section 
         273.13, 87.23subdivision 35;87.24    (3) the property's taxable market value after reductions under sections 273.11, 87.25subdivisions 1a and 16, and 273.13, subdivision 35 section 272.03, subdivision 15;87.26    (4) the property's gross tax, before credits;87.27    (5) for homestead agricultural properties, the credit under section 
         273.1384;87.28    (6) any credits received under sections 
         273.119; 
         273.1234 or 
         273.1235; 
         273.135; 87.29273.1391
         ; 
         273.1398, subdivision 4; 
         469.171; and 
         473H.10, except that the amount of 87.30credit received under section 
         273.135 must be separately stated and identified as "taconite 87.31tax relief"; and87.32    (7) the net tax payable in the manner required in paragraph (a).87.33    (d) If the county uses envelopes for mailing property tax statements and if the county 87.34agrees, a taxing district may include a notice with the property tax statement notifying 87.35taxpayers when the taxing district will begin its budget deliberations for the current 87.36year, and encouraging taxpayers to attend the hearings. If the county allows notices to 88.1be included in the envelope containing the property tax statement, and if more than 88.2one taxing district relative to a given property decides to include a notice with the tax 88.3statement, the county treasurer or auditor must coordinate the process and may combine 88.4the information on a single announcement.88.5    Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:88.6    Subd. 10. Adjusted market value. "Adjusted market value" of real and personal 88.7property within a municipality means the assessor's estimated taxable market value, 88.8as defined in section 272.03, of all real and personal property, including the value of 88.9manufactured housing, within the municipality. For purposes of sections 276A.01 to 88.10276A.09, the commissioner of revenue shall annually make determinations and reports 88.11with respect to each municipality which are comparable to those it makes for school 88.12districts, adjusted for sales ratios in a manner similar to the adjustments made to city and 88.13town net tax capacities under section 
         127A.48, subdivisions 1 to 6, in the same manner 88.14and at the same times prescribed by the subdivision. The commissioner of revenue shall 88.15annually determine, for each municipality, information comparable to that required by 88.16section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes 88.17available. The commissioner of revenue shall then compute the equalized market value of 88.18property within each municipality.88.19EFFECTIVE DATE.This section is effective the day following final enactment.88.20    Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:88.21    Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation88.22 adjusted market value, determined as of January 2 of any year, divided by its population, 88.23determined as of a date in the same year.88.24    Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:88.25    Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities 88.26means the sum of the valuations adjusted market values of all municipalities, determined 88.27as of January 2 of any year, divided by the sum of their populations, determined as of 88.28a date in the same year.88.29    Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:88.30    Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of 88.31real and personal property multiplied by its net tax capacity rates in section 
         273.13.89.1    Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:89.2    Subd. 10. Adjustment of values for other computations. For the purpose of 89.3computing the amount or rate of any salary, aid, tax, or debt authorized, required, or 89.4limited by any provision of any law or charter, where the authorization, requirement, or 89.5limitation is related to any value or valuation of taxable property within any governmental 89.6unit, the value or net tax capacity fiscal capacity under section 276A.01, subdivision 12, a 89.7municipality's taxable market value must be adjusted to reflect the adjustments reductions89.8 to net tax capacity effected by subdivision 2, clause (a), provided that: (1) in determining 89.9the taxable market value of commercial-industrial property or any class thereof within 89.10a governmental unit for any purpose other than section 276A.05 municipality, (a) the 89.11reduction required by this subdivision is that amount which bears the same proportion to 89.12the amount subtracted from the governmental unit's municipality's net tax capacity pursuant 89.13to subdivision 2, clause (a), as the taxable market value of commercial-industrial property, 89.14or such class thereof, located within the governmental unit municipality bears to the net 89.15tax capacity of commercial-industrial property, or such class thereof, located within the 89.16governmental unit, and (b) the increase required by this subdivision is that amount which 89.17bears the same proportion to the amount added to the governmental unit's net tax capacity 89.18pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, 89.19or such class thereof, located within the governmental unit bears to the net tax capacity of 89.20commercial-industrial property, or such class thereof, located within the governmental unit; 89.21and (2) in determining the market value of real property within a municipality for purposes 89.22of section 276A.05, the adjustment prescribed by clause (1)(a) must be made and that 89.23prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made 89.24to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).89.25    Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:89.26287.08 TAX, HOW PAYABLE; RECEIPTS.89.27    (a) The tax imposed by sections 
         287.01 to 
         287.12 must be paid to the treasurer of 89.28any county in this state in which the real property or some part is located at or before 89.29the time of filing the mortgage for record. The treasurer shall endorse receipt on the 89.30mortgage and the receipt is conclusive proof that the tax has been paid in the amount 89.31stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 89.32form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 89.33mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 89.34registration tax." In either case the receipt must be signed by the treasurer. In case the 89.35treasurer is unable to determine whether a claim of exemption should be allowed, the tax 90.1must be paid as in the case of a taxable mortgage. For documents submitted electronically, 90.2the endorsements and tax amount shall be affixed electronically and no signature by the 90.3treasurer will be required. The actual payment method must be arranged in advance 90.4between the submitter and the receiving county.90.5    (b) The county treasurer may refund in whole or in part any mortgage registry tax 90.6overpayment if a written application by the taxpayer is submitted to the county treasurer 90.7within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 90.8of the application, the taxpayer may bring an action in Tax Court in the county in which 90.9the tax was paid at any time after the expiration of six months from the time that the 90.10application was submitted. A denial of refund may be appealed within 60 days from 90.11the date of the denial by bringing an action in Tax Court in the county in which the tax 90.12was paid. The action is commenced by the serving of a petition for relief on the county 90.13treasurer, and by filing a copy with the court. The county attorney shall defend the action. 90.14The county treasurer shall notify the treasurer of each county that has or would receive a 90.15portion of the tax as paid.90.16    (c) If the county treasurer determines a refund should be paid, or if a refund is 90.17ordered by the court, the county treasurer of each county that actually received a portion 90.18of the tax shall immediately pay a proportionate share of three percent of the refund 90.19using any available county funds. The county treasurer of each county that received, or 90.20would have received, a portion of the tax shall also pay their county's proportionate share 90.21of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 90.22following month using solely the mortgage registry tax funds that would be paid to the 90.23commissioner of revenue on that date under section 
         287.12. If the funds on hand under 90.24this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 90.25county treasurer of the county in which the action was brought shall file a claim with the 90.26commissioner of revenue under section 
         16A.48 for the remaining portion of 97 percent of 90.27the refund, and shall pay over the remaining portion upon receipt of a warrant from the 90.28state issued pursuant to the claim.90.29    (d) When any mortgage covers real property located in more than one county in this 90.30state the total tax must be paid to the treasurer of the county where the mortgage is first 90.31presented for recording, and the payment must be receipted as provided in paragraph 90.32(a). If the principal debt or obligation secured by such a multiple county mortgage 90.33exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by 90.34the county treasurer receiving it, on or before the 20th day of each month after receipt, 90.35to the county or counties entitled in the ratio that the estimated market value of the real 90.36property covered by the mortgage in each county bears to the estimated market value of 91.1all the real property in this state described in the mortgage. In making the division and 91.2payment the county treasurer shall send a statement giving the description of the real 91.3property described in the mortgage and the estimated market value of the part located in 91.4each county. For this purpose, the treasurer of any county may require the treasurer of 91.5any other county to certify to the former the estimated market valuation value of any tract 91.6of real property in any mortgage.91.7    (e) The mortgagor must pay the tax imposed by sections 
         287.01 to 
         287.12. The 91.8mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 91.9mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 91.10the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 91.11amount of the tax collected for that purpose and the mortgagor is relieved of any further 91.12obligation to pay the tax as to the amount collected by the mortgagee for this purpose.91.13    Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:91.14    Subdivision 1. Real property outside county. If any taxable deed or instrument 91.15describes any real property located in more than one county in this state, the total tax must 91.16be paid to the treasurer of the county where the document is first presented for recording, 91.17and the payment must be receipted as provided in section 
         287.08. If the net consideration 91.18exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the 91.19county treasurer receiving it, on or before the 20th day of each month after receipt, to 91.20the county or counties entitled in the ratio which the estimated market value of the real 91.21property covered by the document in each county bears to the estimated market value of 91.22all the real property in this state described in the document. In making the division and 91.23payment the county treasurer shall send a statement to the other involved counties giving 91.24the description of the real property described in the document and the estimated market 91.25value of the part located in each county. The treasurer of any county may require the 91.26treasurer of any other county to certify to the former the estimated market valuation value91.27 of any parcel of real property for this purpose.91.28    Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:91.29    Subd. 2. Cash flow funding requirement. If the executive director determines that 91.30an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has 91.31insufficient assets to meet the service pensions determined payable from the account, 91.32the executive director shall certify the amount of the potential service pension shortfall 91.33to the municipality or municipalities and the municipality or municipalities shall make 91.34an additional employer contribution to the account within ten days of the certification. 92.1If more than one municipality is associated with the account, unless the municipalities 92.2agree to a different allocation, the municipalities shall allocate the additional employer 92.3contribution one-half in proportion to the population of each municipality and one-half in 92.4proportion to the estimated market value of the property of each municipality.92.5    Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:92.6    Subd. 4. Major purchases: notice, petition, election. Before buying anything 92.7under subdivision 2 that costs more than 0.24177 percent of the estimated market value of 92.8the town, the town must follow this subdivision.92.9    The town must publish in its official newspaper the board's resolution to pay for the 92.10property over time. Then a petition for an election on the contract may be filed with the 92.11clerk. The petition must be filed within ten days after the resolution is published. To require 92.12the election the petition must be signed by a number of voters equal to ten percent of the 92.13voters at the last regular town election. The contract then must be approved by a majority of 92.14those voting on the question. The question may be voted on at a regular or special election.92.15    Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:92.16    Subdivision 1. Certificates of indebtedness. The town board may issue certificates 92.17of indebtedness within the debt limits for a town purpose otherwise authorized by law. 92.18The certificates shall be payable in not more than ten years and be issued on the terms and 92.19in the manner as the board may determine. If the amount of the certificates to be issued 92.20exceeds 0.25 percent of the estimated market value of the town, they shall not be issued 92.21for at least ten days after publication in a newspaper of general circulation in the town of 92.22the board's resolution determining to issue them. If within that time, a petition asking for 92.23an election on the proposition signed by voters equal to ten percent of the number of voters 92.24at the last regular town election is filed with the clerk, the certificates shall not be issued 92.25until their issuance has been approved by a majority of the votes cast on the question at 92.26a regular or special election. A tax levy shall be made to pay the principal and interest 92.27on the certificates as in the case of bonds.92.28    Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:92.29366.27 FIREFIGHTERS' RELIEF; TAX LEVY.92.30    The town board of any town in this state having therein a platted portion on 92.31which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief 92.32association is located may each year levy a tax not to exceed 0.00806 percent of taxable92.33 estimated market value for the benefit of the relief association.93.1    Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:93.2    Subd. 23. Financing purchase of certain equipment. The town board may issue 93.3certificates of indebtedness within debt limits to purchase fire or police equipment or 93.4ambulance equipment or street construction or maintenance equipment. The certificates 93.5shall be payable in not more than five years and be issued on terms and in the manner as the 93.6board may determine. If the amount of the certificates to be issued to finance a purchase 93.7exceeds 0.24177 percent of the estimated market value of the town, excluding money 93.8and credits, they shall not be issued for at least ten days after publication in the official 93.9newspaper of a town board resolution determining to issue them. If before the end of that 93.10time, a petition asking for an election on the proposition signed by voters equal to ten 93.11percent of the number of voters at the last regular town election is filed with the clerk, the 93.12certificates shall not be issued until the proposition of their issuance has been approved by a 93.13majority of the votes cast on the question at a regular or special election. A tax levy shall be 93.14made for the payment of the principal and interest on the certificates as in the case of bonds.93.15    Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:93.16368.47 TOWNS MAY BE DISSOLVED.93.17    (1) When the voters residing within a town have failed to elect any town officials for 93.18more than ten years continuously;93.19    (2) when a town has failed for a period of ten years to exercise any of the powers 93.20and functions of a town;93.21    (3) when the estimated market value of a town drops to less than $165,000;93.22    (4) when the tax delinquency of a town, exclusive of taxes that are delinquent or 93.23unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 93.2412 percent of its market value; or93.25    (5) when the state or federal government has acquired title to 50 percent of the 93.26real estate of a town,93.27which facts, or any of them, may be found and determined by the resolution of the county 93.28board of the county in which the town is located, according to the official records in the 93.29office of the county auditor, the county board by resolution may declare the town, naming 93.30it, dissolved and no longer entitled to exercise any of the powers or functions of a town.93.31    In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters 93.32of the town shall express their approval or disapproval. The town clerk shall, upon a 93.33petition signed by a majority of the registered voters of the town, filed with the clerk at 93.34least 60 days before a regular or special town election, give notice at the same time and 93.35in the same manner of the election that the question of dissolution of the town will be 94.1submitted for determination at the election. At the election the question shall be voted 94.2upon by a separate ballot, the terms of which shall be either "for dissolution" or "against 94.3dissolution." The ballot shall be deposited in a separate ballot box and the result of the 94.4voting canvassed, certified, and returned in the same manner and at the same time as 94.5other facts and returns of the election. If a majority of the votes cast at the election are 94.6for dissolution, the town shall be dissolved. If a majority of the votes cast at the election 94.7are against dissolution, the town shall not be dissolved.94.8    When a town is dissolved under sections 
         368.47 to 
         368.49 the county shall acquire 94.9title to any telephone company or other business conducted by the town. The business 94.10shall be operated by the board of county commissioners until it can be sold. The 94.11subscribers or patrons of the business shall have the first opportunity of purchase. If the 94.12town has any outstanding indebtedness chargeable to the business, the county auditor shall 94.13levy a tax against the property situated in the dissolved town to pay the indebtedness 94.14as it becomes due.94.15    Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:94.16370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.94.17    The boundaries of counties may be changed by taking territory from a county and 94.18attaching it to an adjoining county, and new counties may be established out of territory of 94.19one or more existing counties. A new county shall contain at least 400 square miles and 94.20have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated94.21 market value of at least 35 percent of (i) the total taxable estimated market value of the 94.22existing county, or (ii) the average total taxable estimated market value of the existing 94.23counties, included in the proposition. The determination of the taxable estimated market 94.24value of a county must be made by the commissioner of revenue. An existing county shall 94.25not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a 94.26total taxable estimated market value of less than that required of a new county.94.27    No change in the boundaries of any county having an area of more than 2,500 square 94.28miles, whether by the creation of a new county, or otherwise, shall detach from the existing 94.29county any territory within 12 miles of the county seat.94.30    Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:94.31    Subdivision 1. Definitions. For purposes of this section, the following terms have 94.32the meanings given.94.33    (a) "Bonds" means an obligation as defined under section 
         475.51.95.1    (b) "Capital improvement" means acquisition or betterment of public lands, 95.2buildings, or other improvements within the county for the purpose of a county courthouse, 95.3administrative building, health or social service facility, correctional facility, jail, law 95.4enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 95.5bridges, and the acquisition of development rights in the form of conservation easements 95.6under chapter 84C. An improvement must have an expected useful life of five years or 95.7more to qualify. "Capital improvement" does not include a recreation or sports facility 95.8building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 95.9swimming pool, exercise room or health spa), unless the building is part of an outdoor 95.10park facility and is incidental to the primary purpose of outdoor recreation.95.11    (c) "Metropolitan county" means a county located in the seven-county metropolitan 95.12area as defined in section 
         473.121 or a county with a population of 90,000 or more.95.13    (d) "Population" means the population established by the most recent of the 95.14following (determined as of the date the resolution authorizing the bonds was adopted):95.15    (1) the federal decennial census,95.16    (2) a special census conducted under contract by the United States Bureau of the 95.17Census, or95.18    (3) a population estimate made either by the Metropolitan Council or by the state 95.19demographer under section 
         4A.02.95.20    (e) "Qualified indoor ice arena" means a facility that meets the requirements of 95.21section 
         373.43.95.22    (f) "Tax capacity" means total taxable market value, but does not include captured 95.23market value.95.24    Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:95.25    Subd. 4. Limitations on amount. A county may not issue bonds under this section 95.26if the maximum amount of principal and interest to become due in any year on all the 95.27outstanding bonds issued pursuant to this section (including the bonds to be issued) will 95.28equal or exceed 0.12 percent of taxable the estimated market value of property in the 95.29county. Calculation of the limit must be made using the taxable estimated market value for 95.30the taxes payable year in which the obligations are issued and sold. This section does not 95.31limit the authority to issue bonds under any other special or general law.95.32    Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:95.33    Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board 95.34may appropriate from the general revenue fund to any nonprofit corporation a sum not 96.1to exceed 0.00604 percent of taxable estimated market value to provide legal assistance 96.2to persons who are unable to afford private legal counsel.96.3    Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:96.4    Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a 96.5suitable courthouse. No indebtedness shall be created for a courthouse in excess of an 96.6amount equal to a levy of 0.04030 percent of taxable estimated market value without the 96.7approval of a majority of the voters of the county voting on the question of issuing the 96.8obligation at an election.96.9    Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:96.10375.555 FUNDING.96.11    To implement the county emergency jobs program, the county board may expend 96.12an amount equal to what would be generated by a levy of 0.01209 percent of taxable96.13 estimated market value. The money to be expended may be from any available funds 96.14not otherwise earmarked.96.15    Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:96.16383B.152 BUILDING AND MAINTENANCE FUND.96.17    The county board may by resolution levy a tax to provide money which shall be kept 96.18in a fund known as the county reserve building and maintenance fund. Money in the fund 96.19shall be used solely for the construction, maintenance, and equipping of county buildings 96.20that are constructed or maintained by the board. The levy shall not be subject to any limit 96.21fixed by any other law or by any board of tax levy or other corresponding body, but shall 96.22not exceed 0.02215 percent of taxable estimated market value, less the amount required by 96.23chapter 475 to be levied in the year for the payment of the principal of and interest on all 96.24bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.96.25    Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:96.26383B.245 LIBRARY LEVY.96.27    (a) The county board may levy a tax on the taxable property within the county to 96.28acquire, better, and construct county library buildings and branches and to pay principal 96.29and interest on bonds issued for that purpose.96.30    (b) The county board may by resolution adopted by a five-sevenths vote issue and 96.31sell general obligation bonds of the county in the manner provided in sections 
         475.60 to 97.1475.73
         . The bonds shall not be subject to the limitations of sections 
         475.51 to 
         475.59, 97.2but the maturity years and amounts and interest rates of each series of bonds shall be 97.3fixed so that the maximum amount of principal and interest to become due in any year, 97.4on the bonds of that series and of all outstanding series issued by or for the purposes of 97.5libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value 97.6of all taxable property in the county as last finally equalized before the issuance of the new 97.7series. When the tax levy authorized in this section is collected it shall be appropriated 97.8and credited to a debt service fund for the bonds in amounts required each year in lieu of a 97.9countywide tax levy for the debt service fund under section 
         475.61.97.10    Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:97.11    Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park 97.12District as set forth in its annual budget, in lieu of the levies authorized by any other 97.13special law for such purposes, the Board of Park District Commissioners may levy taxes 97.14on all the taxable property in the county and park district at a rate not exceeding 0.03224 97.15percent of estimated market value. Notwithstanding section 
         398.16, on or before October 97.161 of each year, after public hearing, the Board of Park District Commissioners shall adopt 97.17a budget for the ensuing year and shall determine the total amount necessary to be raised 97.18from ad valorem tax levies to meet its budget. The Board of Park District Commissioners 97.19shall submit the budget to the county board. The county board may veto or modify an item 97.20contained in the budget. If the county board determines to veto or to modify an item in the 97.21budget, it must, within 15 days after the budget was submitted by the district board, state 97.22in writing the specific reasons for its objection to the item vetoed or the reason for the 97.23modification. The Park District Board, after consideration of the county board's objections 97.24and proposed modifications, may reapprove a vetoed item or the original version of an item 97.25with respect to which a modification has been proposed, by a two-thirds majority. If the 97.26district board does not reapprove a vetoed item, the item shall be deleted from the budget. 97.27If the district board does not reapprove the original version of a modified item, the item 97.28shall be included in the budget as modified by the county board. After adoption of the final 97.29budget and no later than October 1, the superintendent of the park district shall certify to the 97.30office of the Hennepin County director of tax and public records exercising the functions 97.31of the county auditor the total amount to be raised from ad valorem tax levies to meet its 97.32budget for the ensuing year. The director of tax and public records shall add the amount of 97.33any levy certified by the district to other tax levies on the property of the county within the 97.34district for collection by the director of tax and public records with other taxes. When 98.1collected, the director shall make settlement of such taxes with the district in the same 98.2manner as other taxes are distributed to the other political subdivisions in Hennepin County.98.3    Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:98.4383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.98.5    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue 98.6and sell general obligation bonds of the county in the manner provided in chapter 475 to 98.7acquire, better, and construct county library buildings. The bonds shall not be subject to the 98.8requirements of sections 475.57 to 475.59. The maturity years and amounts and interest 98.9rates of each series of bonds shall be fixed so that the maximum amount of principal and 98.10interest to become due in any year, on the bonds of that series and of all outstanding series 98.11issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent 98.12of the taxable estimated market value of all taxable property in the county, excluding any 98.13taxable property taxed by any city for the support of any free public library. When the tax 98.14levy authorized in this section is collected, it shall be appropriated and credited to a debt 98.15service fund for the bonds. The tax levy for the debt service fund under section 475.61 98.16shall be reduced by the amount available or reasonably anticipated to be available in the 98.17fund to make payments otherwise payable from the levy pursuant to section 475.61.98.18    Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:98.19383E.23 LIBRARY TAX.98.20    The Anoka County Board may levy a tax of not more than .01 percent of the taxable98.21 estimated market value of taxable property located within the county excluding any 98.22taxable property taxed by any city for the support of any free public library, to acquire, 98.23better, and construct county library buildings and to pay principal and interest on bonds 98.24issued for that purpose. The tax shall be disregarded in the calculation of levies or limits 98.25on levies provided by section 373.40, or other law.98.26    Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:98.27385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.98.28    When any order or warrant drawn on the treasurer is presented for payment, if there 98.29is money in the treasury for that purpose, the county treasurer shall redeem the same, and 98.30write across the entire face thereof the word "redeemed," the date of the redemption, and 98.31the treasurer's official signature. If there is not sufficient funds in the proper accounts to 98.32pay such orders they shall be numbered and registered in their order of presentation, 99.1and proper endorsement thereof shall be made on such orders and they shall be entitled 99.2to payment in like order. Such orders shall bear interest at not to exceed the rate of six 99.3percent per annum from such date of presentment. The treasurer, as soon as there is 99.4sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the 99.5payment of the orders so presented and registered, and, if entitled to interest, issue to the 99.6original holder a notice that interest will cease in 30 days from the date of such notice; and, 99.7if orders thus entitled to priority of payment are not then presented, the next in order of 99.8registry may be paid until such orders are presented. No interest shall be paid on any order, 99.9except upon a warrant drawn by the county auditor for that purpose, giving the number 99.10and the date of the order on account of which the interest warrant is drawn. In any county 99.11in this state now or hereafter having a an estimated market value of all taxable property, 99.12exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in 99.13order to save payment of interest on county warrants drawn upon a fund in which there 99.14shall be temporarily insufficient money in the treasury to redeem the same, may borrow 99.15temporarily from any other fund in the county treasury in which there is a sufficient balance 99.16to care for the needs of such fund and allow a temporary loan or transfer to any other fund, 99.17and may pay such warrants out of such funds. Any such money so transferred and used in 99.18redeeming such county warrants shall be returned to the fund from which drawn as soon 99.19as money shall come in to the credit of such fund on which any such warrant was drawn 99.20and paid as aforesaid. Any county operating on a cash basis may use a combined form of 99.21warrant or order and check, which, when signed by the chair of the county board and by 99.22the auditor, is an order or warrant for the payment of the claim, and, when countersigned 99.23by the county treasurer, is a check for the payment of the amount thereof.99.24    Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:99.25    Subdivision 1. Continuation of nonconformity; limitations. Except as provided in 99.26subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land 99.27or premises existing at the time of the adoption of an official control under this chapter, 99.28may be continued, although the use or occupation does not conform to the official control. 99.29If the nonconformity or occupancy is discontinued for a period of more than one year, or 99.30any nonconforming building or structure is destroyed by fire or other peril to the extent of 99.3150 percent of its estimated market value, any subsequent use or occupancy of the land or 99.32premises shall be a conforming use or occupancy.99.33    Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:100.1    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall 100.2give six weeks' published notice in all municipalities in the region. If a number of voters 100.3in the region equal to five percent of those who voted for candidates for governor at the 100.4last gubernatorial election present a petition within nine weeks of the first published notice 100.5to the secretary of state requesting that the matter be submitted to popular vote, it shall be 100.6submitted at the next general election. The question prepared shall be:100.7    "Shall the regional rail authority have the power to impose a property tax?

100.8Yes 
                     							.....
                     						100.9No 
                     							.....
                     						"

100.10    If a majority of those voting on the question approve or if no petition is presented 100.11within the prescribed time the authority may levy a tax at any annual rate not exceeding 100.120.04835 percent of estimated market value of all taxable property situated within the 100.13municipality or municipalities named in its organization resolution. Its recording officer 100.14shall file, on or before September 15, in the office of the county auditor of each county 100.15in which territory under the jurisdiction of the authority is located a certified copy of the 100.16board of commissioners' resolution levying the tax, and each county auditor shall assess 100.17and extend upon the tax rolls of each municipality named in the organization resolution the 100.18portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 100.19taxable property in that municipality bears to the net tax capacity of taxable property in 100.20all municipalities named in the organization resolution. Collections of the tax shall be 100.21remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 100.22the amount levied for light rail transit purposes under this subdivision shall not exceed 75 100.23percent of the amount levied in 1990 for light rail transit purposes under this subdivision.100.24    Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:100.25    Subd. 3. Leasing. (a) A county or joint powers board of a group of counties 100.26which acquires or constructs and equips or improves facilities under this chapter may, 100.27with the approval of the board of county commissioners of each county, enter into a 100.28lease agreement with a city situated within any of the counties, or a county housing and 100.29redevelopment authority established under chapter 469 or any special law. Under the lease 100.30agreement, the city or county housing and redevelopment authority shall:100.31    (1) construct or acquire and equip or improve a facility in accordance with plans 100.32prepared by or at the request of a county or joint powers board of the group of counties 100.33and approved by the commissioner of corrections; and100.34    (2) finance the facility by the issuance of revenue bonds.101.1    (b) The county or joint powers board of a group of counties may lease the facility 101.2site, improvements, and equipment for a term upon rental sufficient to produce revenue 101.3for the prompt payment of the revenue bonds and all interest accruing on them. Upon 101.4completion of payment, the lessee shall acquire title. The real and personal property 101.5acquired for the facility constitutes a project and the lease agreement constitutes a revenue 101.6agreement as provided in sections 
         469.152 to 
         469.165. All proceedings by the city or 101.7county housing and redevelopment authority and the county or joint powers board shall be 101.8as provided in sections 
         469.152 to 
         469.165, with the following adjustments:101.9    (1) no tax may be imposed upon the property;101.10    (2) the approval of the project by the commissioner of employment and economic 101.11development is not required;101.12    (3) the Department of Corrections shall be furnished and shall record information 101.13concerning each project as it may prescribe, in lieu of reports required on other projects to 101.14the commissioner of employment and economic development;101.15    (4) the rentals required to be paid under the lease agreement shall not exceed in any 101.16year one-tenth of one percent of the estimated market value of property within the county 101.17or group of counties as last equalized before the execution of the lease agreement;101.18    (5) the county or group of counties shall provide for payment of all rentals due 101.19during the term of the lease agreement in the manner required in subdivision 4;101.20    (6) no mortgage on the facilities shall be granted for the security of the bonds, but 101.21compliance with clause (5) may be enforced as a nondiscretionary duty of the county 101.22or group of counties; and101.23    (7) the county or the joint powers board of the group of counties may sublease any 101.24part of the facilities for purposes consistent with their maintenance and operation.101.25    Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:101.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.101.27    (a) Notwithstanding any contrary provision of other law or charter, a home rule 101.28charter city may, by resolution and without public referendum, issue capital notes subject 101.29to the city debt limit to purchase capital equipment.101.30    (b) For purposes of this section, "capital equipment" means:101.31    (1) public safety equipment, ambulance and other medical equipment, road 101.32construction and maintenance equipment, and other capital equipment; and101.33    (2) computer hardware and software, whether bundled with machinery or equipment 101.34or unbundled.102.1    (c) The equipment or software must have an expected useful life at least as long 102.2as the term of the notes.102.3    (d) The notes shall be payable in not more than ten years and be issued on terms 102.4and in the manner the city determines. The total principal amount of the capital notes 102.5issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of 102.6taxable property in the city for that year.102.7    (e) A tax levy shall be made for the payment of the principal and interest on the 102.8notes, in accordance with section 
         475.61, as in the case of bonds.102.9    (f) Notes issued under this section shall require an affirmative vote of two-thirds of 102.10the governing body of the city.102.11    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 102.12city may also issue capital notes subject to its debt limit in the manner and subject to the 102.13limitations applicable to statutory cities pursuant to section 
         412.301.102.14    Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:102.15    Subd. 2. Contracts. The council shall have power to make such contracts as may 102.16be deemed necessary or desirable to make effective any power possessed by the council. 102.17The city may purchase personal property through a conditional sales contract and real 102.18property through a contract for deed under which contracts the seller is confined to the 102.19remedy of recovery of the property in case of nonpayment of all or part of the purchase 102.20price, which shall be payable over a period of not to exceed five years. When the contract 102.21price of property to be purchased by contract for deed or conditional sales contract 102.22exceeds 0.24177 percent of the estimated market value of the city, the city may not enter 102.23into such a contract for at least ten days after publication in the official newspaper of a 102.24council resolution determining to purchase property by such a contract; and, if before the 102.25end of that time a petition asking for an election on the proposition signed by voters equal 102.26to ten percent of the number of voters at the last regular city election is filed with the clerk, 102.27the city may not enter into such a contract until the proposition has been approved by a 102.28majority of the votes cast on the question at a regular or special election.102.29    Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:102.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.102.31    (a) The council may issue certificates of indebtedness or capital notes subject to the 102.32city debt limits to purchase capital equipment.102.33    (b) For purposes of this section, "capital equipment" means:103.1    (1) public safety equipment, ambulance and other medical equipment, road 103.2construction and maintenance equipment, and other capital equipment; and103.3    (2) computer hardware and software, whether bundled with machinery or equipment 103.4or unbundled.103.5    (c) The equipment or software must have an expected useful life at least as long as 103.6the terms of the certificates or notes.103.7    (d) Such certificates or notes shall be payable in not more than ten years and shall be 103.8issued on such terms and in such manner as the council may determine.103.9    (e) If the amount of the certificates or notes to be issued to finance any such purchase 103.10exceeds 0.25 percent of the estimated market value of taxable property in the city, they 103.11shall not be issued for at least ten days after publication in the official newspaper of 103.12a council resolution determining to issue them; and if before the end of that time, a 103.13petition asking for an election on the proposition signed by voters equal to ten percent 103.14of the number of voters at the last regular municipal election is filed with the clerk, such 103.15certificates or notes shall not be issued until the proposition of their issuance has been 103.16approved by a majority of the votes cast on the question at a regular or special election.103.17    (f) A tax levy shall be made for the payment of the principal and interest on such 103.18certificates or notes, in accordance with section 
         475.61, as in the case of bonds.103.19    Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:103.20    Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance 103.21establishing a special service district. Only property that is classified under section 
         273.13103.22and used for commercial, industrial, or public utility purposes, or is vacant land zoned or 103.23designated on a land use plan for commercial or industrial use and located in the special 103.24service district, may be subject to the charges imposed by the city on the special service 103.25district. Other types of property may be included within the boundaries of the special 103.26service district but are not subject to the levies or charges imposed by the city on the 103.27special service district. If 50 percent or more of the estimated market value of a parcel of 103.28property is classified under section 
         273.13 as commercial, industrial, or vacant land zoned 103.29or designated on a land use plan for commercial or industrial use, or public utility for the 103.30current assessment year, then the entire taxable market value of the property is subject to a 103.31service charge based on net tax capacity for purposes of sections 
         428A.01 to 
         428A.10. 103.32The ordinance shall describe with particularity the area within the city to be included in 103.33the district and the special services to be furnished in the district. The ordinance may not 103.34be adopted until after a public hearing has been held on the question. Notice of the hearing 103.35shall include the time and place of hearing, a map showing the boundaries of the proposed 104.1district, and a statement that all persons owning property in the proposed district that 104.2would be subject to a service charge will be given opportunity to be heard at the hearing. 104.3Within 30 days after adoption of the ordinance under this subdivision, the governing body 104.4shall send a copy of the ordinance to the commissioner of revenue.104.5    Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:104.6    Subd. 2. Council approval; special tax levy limitation. The council shall receive 104.7and consider the estimate required in subdivision 1 and the items of cost after notice and 104.8hearing before it or its appropriate committee as it considers necessary or expedient, and 104.9shall approve the estimate, with necessary amendments. The amounts of each item of cost 104.10estimated are then appropriated to operate, maintain, and improve the pedestrian mall 104.11during the next fiscal year. The amount of the special tax to be charged under subdivision 104.121, clause (3), must not, however, exceed 0.12089 percent of estimated market value of 104.13taxable property in the district. The council shall make any necessary adjustment in costs of 104.14operating and maintaining the district to keep the amount of the tax within this limitation.104.15    Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:104.16447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.104.17    The governing body of a city of the first class owning a hospital may annually levy 104.18a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of 104.19taxable estimated market value.104.20    Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:104.21450.19 TOURIST CAMPING GROUNDS.104.22    A home rule charter or statutory city or town may establish and maintain public 104.23tourist camping grounds. The governing body thereof may acquire by lease, purchase, or 104.24gift, suitable lands located either within or without the corporate limits for use as public 104.25tourist camping grounds and provide for the equipment, operation, and maintenance 104.26of the same. The amount that may be expended for the maintenance, improvement, or 104.27operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 104.28percent of taxable estimated market value.104.29    Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:104.30450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX 104.31LEVY.105.1    After the acquisition of any museum, gallery, or school of arts or crafts, the board 105.2of park commissioners of the city in which it is located shall cause to be included in the 105.3annual tax levy upon all the taxable property of the county in which the museum, gallery, 105.4or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. 105.5The board shall certify the levy to the county auditor and it shall be added to, and collected 105.6with and as part of, the general, real, and personal property taxes, with like penalties and 105.7interest, in case of nonpayment and default, and all provisions of law in respect to the 105.8levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in 105.9respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be 105.10paid to the city treasurer of the city in which is located the museum, gallery, or school 105.11of arts or crafts and credited to a fund to be known as the park museum fund, and shall 105.12be used only for the purposes specified in sections 
         450.23 to 
         450.25. Any part of the 105.13proceeds of the levy not expended for the purposes specified in section 
         450.24 may be 105.14used for the erection of new buildings for the same purposes.105.15    Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:105.16458A.10 PROPERTY TAX.105.17    The commission shall annually levy a tax not to exceed 0.12089 percent of estimated 105.18market value on all the taxable property in the transit area at a rate sufficient to produce 105.19an amount necessary for the purposes of sections 
         458A.01 to 
         458A.15, other than the 105.20payment of principal and interest due on any revenue bonds issued pursuant to section 105.21458A.05
         . Property taxes levied under this section shall be certified by the commission to 105.22the county auditors of the transit area, extended, assessed, and collected in the manner 105.23provided by law for the property taxes levied by the governing bodies of cities. The 105.24proceeds of the taxes levied under this section shall be remitted by the respective county 105.25treasurers to the treasurer of the commission, who shall credit the same to the funds of 105.26the commission for use for the purposes of sections 
         458A.01 to 
         458A.15 subject to any 105.27applicable pledges or limitations on account of tax anticipation certificates or other 105.28specific purposes. At any time after making a tax levy under this section and certifying 105.29it to the county auditors, the commission may issue general obligation certificates of 105.30indebtedness in anticipation of the collection of the taxes as provided by section 
         412.261.105.31    Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:105.32    Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in 105.33the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, 105.34limiting the amount levied in any one year for general or special purposes, the city council 106.1of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 106.2percent of taxable estimated market value, by ordinance. An ordinance fixing the levy 106.3shall take effect immediately upon its passage and approval. The proceeds of the levy 106.4shall be paid into the city treasury and deposited in the operating fund provided for in 106.5section 
         458A.24, subdivision 3.106.6    Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:106.7465.04 ACCEPTANCE OF GIFTS.106.8    Cities of the second, third, or fourth class, having at any time a an estimated106.9 market value of not more than $41,000,000, exclusive of money and credits, as officially 106.10equalized by the commissioner of revenue, either under home rule charter or under the 106.11laws of this state, in addition to all other powers possessed by them, hereby are authorized 106.12and empowered to receive and accept gifts and donations for the use and benefit of 106.13such cities and the inhabitants thereof upon terms and conditions to be approved by the 106.14governing bodies of such cities; and such cities are authorized to comply with and perform 106.15such terms and conditions, which may include payment to the donor or donors of interest 106.16on the value of the gift at not exceeding five percent per annum payable annually or 106.17semiannually, during the remainder of the natural life or lives of such donor or donors.106.18    Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:106.19    Subd. 6. Operation area as taxing district, special tax. All of the territory included 106.20within the area of operation of any authority shall constitute a taxing district for the 106.21purpose of levying and collecting special benefit taxes as provided in this subdivision. All 106.22of the taxable property, both real and personal, within that taxing district shall be deemed 106.23to be benefited by projects to the extent of the special taxes levied under this subdivision. 106.24Subject to the consent by resolution of the governing body of the city in and for which 106.25it was created, an authority may levy a tax upon all taxable property within that taxing 106.26district. The tax shall be extended, spread, and included with and as a part of the general 106.27taxes for state, county, and municipal purposes by the county auditor, to be collected and 106.28enforced therewith, together with the penalty, interest, and costs. As the tax, including any 106.29penalties, interest, and costs, is collected by the county treasurer it shall be accumulated 106.30and kept in a separate fund to be known as the "housing and redevelopment project fund." 106.31The money in the fund shall be turned over to the authority at the same time and in the same 106.32manner that the tax collections for the city are turned over to the city, and shall be expended 106.33only for the purposes of sections 
         469.001 to 
         469.047. It shall be paid out upon vouchers 106.34signed by the chair of the authority or an authorized representative. The amount of the 107.1levy shall be an amount approved by the governing body of the city, but shall not exceed 107.20.0185 percent of taxable estimated market value. The authority shall each year formulate 107.3and file a budget in accordance with the budget procedure of the city in the same manner as 107.4required of executive departments of the city or, if no budgets are required to be filed, by 107.5August 1. The amount of the tax levy for the following year shall be based on that budget.107.6    Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:107.7    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the 107.8general obligation of the general jurisdiction governmental unit as additional security for 107.9bonds payable from income or revenues of the project or the authority. The authority 107.10must find that the pledged revenues will equal or exceed 110 percent of the principal and 107.11interest due on the bonds for each year. The proceeds of the bonds must be used for a 107.12qualified housing development project or projects. The obligations must be issued and 107.13sold in the manner and following the procedures provided by chapter 475, except the 107.14obligations are not subject to approval by the electors, and the maturities may extend to 107.15not more than 35 years for obligations sold to finance housing for the elderly and 40 years 107.16for other obligations issued under this subdivision. The authority is the municipality for 107.17purposes of chapter 475.107.18    (b) The principal amount of the issue must be approved by the governing body of 107.19the general jurisdiction governmental unit whose general obligation is pledged. Public 107.20hearings must be held on issuance of the obligations by both the authority and the general 107.21jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 107.22than 120 days, before the sale of the obligations.107.23    (c) The maximum amount of general obligation bonds that may be issued and 107.24outstanding under this section equals the greater of (1) one-half of one percent of the 107.25taxable estimated market value of the general jurisdiction governmental unit whose 107.26general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty 107.27general obligation bonds, the outstanding general obligation bonds of all cities in the 107.28county or counties issued under this subdivision must be added in calculating the limit 107.29under clause (1).107.30    (d) "General jurisdiction governmental unit" means the city in which the housing 107.31development project is located. In the case of a county or multicounty authority, the 107.32county or counties may act as the general jurisdiction governmental unit. In the case of 107.33a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 107.34taxable property in each of the counties.108.1    (e) "Qualified housing development project" means a housing development project 108.2providing housing either for the elderly or for individuals and families with incomes not 108.3greater than 80 percent of the median family income as estimated by the United States 108.4Department of Housing and Urban Development for the standard metropolitan statistical 108.5area or the nonmetropolitan county in which the project is located. The project must be 108.6owned for the term of the bonds either by the authority or by a limited partnership or other 108.7entity in which the authority or another entity under the sole control of the authority is 108.8the sole general partner and the partnership or other entity must receive (1) an allocation 108.9from the Department of Management and Budget or an entitlement issuer of tax-exempt 108.10bonding authority for the project and a preliminary determination by the Minnesota 108.11Housing Finance Agency or the applicable suballocator of tax credits that the project 108.12will qualify for four percent low-income housing tax credits or (2) a reservation of nine 108.13percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 108.14suballocator of tax credits for the project. A qualified housing development project may 108.15admit nonelderly individuals and families with higher incomes if:108.16    (1) three years have passed since initial occupancy;108.17    (2) the authority finds the project is experiencing unanticipated vacancies resulting in 108.18insufficient revenues, because of changes in population or other unforeseen circumstances 108.19that occurred after the initial finding of adequate revenues; and108.20    (3) the authority finds a tax levy or payment from general assets of the general 108.21jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 108.22income individuals or families are not admitted.108.23    (f) The authority may issue bonds to refund bonds issued under this subdivision in 108.24accordance with section 
         475.67. The finding of the adequacy of pledged revenues required 108.25by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 108.26issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 108.27after July 1, 1992.108.28    Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:108.29    Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy 108.30a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 108.31percent of taxable estimated market value. The amount levied must be paid by the city 108.32treasurer to the treasurer of the port authority, to be spent by the authority.108.33    Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:109.1    Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall 109.2replace the mandatory city levy under subdivision 4. A seaway port authority is a special 109.3taxing district under section 
         275.066 and may levy a tax in any year for the benefit of the 109.4seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated109.5 market value. The county auditor shall distribute the proceeds of the property tax levy to 109.6the seaway port authority.109.7    Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:109.8    Subd. 6. Discretionary city levy. Upon request of a port authority, the port 109.9authority's city may levy a tax to be spent by and for its port authority. The tax must 109.10enable the port authority to carry out efficiently and in the public interest sections 
         469.048109.11to 
         469.068 to create and develop industrial development districts. The levy must not be 109.12more than 0.00282 percent of taxable estimated market value. The county treasurer shall 109.13pay the proceeds of the tax to the port authority treasurer. The money may be spent by 109.14the authority in performance of its duties to create and develop industrial development 109.15districts. In spending the money the authority must judge what best serves the public 109.16interest. The levy in this subdivision is in addition to the levy in subdivision 4.109.17    Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:109.18    Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in 109.19any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 109.20taxable estimated market value. The amount levied must be paid by the city treasurer to 109.21the treasurer of the authority, to be spent by the authority.109.22    Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:109.23    Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may 109.24appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 109.25percent of taxable estimated market value to carry out the purposes of this section.109.26    Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:109.27469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY 109.28BOARD.109.29    Any city of the first class may expend money for city publicity purposes. The city may 109.30levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The proceeds 109.31of the levy shall be expended in the manner and for the city publicity purposes the council 110.1directs. The council may establish and provide for a publicity board or bureau to administer 110.2the fund, subject to the conditions and limitations the council prescribes by ordinance.110.3    Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:110.4469.206 HAZARDOUS PROPERTY PENALTY.110.5    A city may assess a penalty up to one percent of the estimated market value of 110.6real property, including any building located within the city that the city determines to 110.7be hazardous as defined in section 
         463.15, subdivision 3. The city shall send a written 110.8notice to the address to which the property tax statement is sent at least 90 days before it 110.9may assess the penalty. If the owner of the property has not paid the penalty or fixed the 110.10property within 90 days after receiving notice of the penalty, the penalty is considered 110.11delinquent and is increased by 25 percent each 60 days the penalty is not paid and the 110.12property remains hazardous. For the purposes of this section, a penalty that is delinquent 110.13is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the 110.14same manner as delinquent property taxes.110.15    Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:110.16471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF 110.17CEMETERY.110.18    Where a statutory city or town owns and maintains an established cemetery or burial 110.19ground, either within or without the municipal limits, the statutory city or town may, by 110.20mutual agreement with contiguous statutory cities and towns, each having a an estimated110.21 market value of not less than $2,000,000, join together in the maintenance of such public 110.22cemetery or burial ground for the use of the inhabitants of each of such municipalities; and 110.23each such municipality is hereby authorized, by action of its council or governing body, 110.24to levy a tax or make an appropriation for the annual support and maintenance of such 110.25cemetery or burial ground; provided, the amount thus appropriated by each municipality 110.26shall not exceed a total of $10,000 in any one year.110.27    Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:110.28    Subdivision 1. Application. This section applies to each city in which the net tax 110.29capacity of real and personal property consists in part of iron ore or lands containing 110.30taconite or semitaconite and in which the total taxable estimated market value of real 110.31and personal property exceeds $2,500,000.110.32    Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:111.1    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a 111.2permanent improvement and replacement fund to be maintained by an annual tax levy. 111.3The governing body may levy a tax in excess of any charter limitation for the support of 111.4the permanent improvement and replacement fund, but not exceeding the following:111.5    (a) in cities having a population of not more than 500 inhabitants, the lesser of $20 111.6per capita or 0.08059 percent of taxable estimated market value;111.7    (b) in cities having a population of more than 500 and less than 2500 2,500, the 111.8greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable111.9 estimated market value;111.10    (c) in cities having a population of more than 2500 2,500 or more inhabitants, 111.11the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable111.12 estimated market value.111.13    Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:111.14471.73 ACCEPTANCE OF PROVISIONS.111.15    In the case of any city within the class specified in section471.72 having a an 111.16estimated market value, as defined in section 471.72, in excess of $37,000,000; and in the 111.17case of any statutory city within such class having a an estimated market value, as defined 111.18in section 471.72, of less than $5,000,000; and in the case of any statutory city within such 111.19class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in 111.20the case of any statutory city within such class which is governed by Laws 1929, chapter 111.21208, and has a an estimated market value of less than $83,000,000; and in the case of 111.22any school district within such class having a an estimated market value, as defined in 111.23section 471.72, of more than $54,000,000; and in the case of all towns within said class; 111.24sections 
         471.71 to 
         471.83 apply only if the governing body of the city or statutory city, the 111.25board of the school district, or the town board of the town shall have adopted a resolution 111.26determining to issue bonds under the provisions of sections 
         471.71 to 
         471.83 or to go 111.27upon a cash basis in accordance with the provisions thereof.111.28    Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:111.29    Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and 111.30issue the bonds in the manner provided in chapter 475, and shall have the same powers 111.31and duties as a municipality issuing bonds under that law, except that the approval of a 111.32majority of the electors shall not be required and the net debt limitations shall not apply. 111.33The terms of each series of bonds shall be fixed so that the amount of principal and interest 111.34on all outstanding and undischarged bonds, together with the bonds proposed to be issued, 112.1due in any year shall not exceed 0.01209 percent of estimated market value of all taxable 112.2property in the metropolitan area as last finally equalized prior to a proposed issue. The 112.3bonds shall be secured in accordance with section 
         475.61, subdivision 1, and any taxes 112.4required for their payment shall be levied by the council, shall not affect the amount or rate 112.5of taxes which may be levied by the council for other purposes, shall be spread against all 112.6taxable property in the metropolitan area and shall not be subject to limitation as to rate or 112.7amount. Any taxes certified by the council to the county auditors for collection shall be 112.8reduced by the amount received by the council from the commissioner of management and 112.9budget or the federal government for the purpose of paying the principal and interest on 112.10bonds to which the levy relates. The council shall certify the fact and amount of all money 112.11so received to the county auditors, and the auditors shall reduce the levies previously made 112.12for the bonds in the manner and to the extent provided in section 
         475.61, subdivision 3.112.13    Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:112.14473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL 112.15DISTRICTS.112.16    As to any lands to be detached from any school district under the provisions hereof112.17 section 473.625, notwithstanding such prospective the detachment, the estimated market 112.18value of such the detached lands and the net tax capacity of taxable properties now located 112.19therein or thereon shall be and on the lands on the date of the detachment constitute 112.20from and after the date of the enactment hereof a part of the estimated market value of 112.21properties upon the basis of which such used to calculate the net debt limit of the school 112.22district may issue its bonds,. The value of such the lands for such purpose to be and other 112.23taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of 112.24the estimated market value thereof as determined and certified by said the assessor to said112.25 the school district, and it shall be the duty of such the assessor annually on or before the 112.26tenth day of October from and after the passage hereof, to so of each year, shall determine 112.27and certify that value; provided, however, that the value of such the detached lands and 112.28such taxable properties shall never exceed 20 percent of the estimated market value of 112.29all properties constituting and making up the basis aforesaid used to calculate the net 112.30debt limit of the school district.112.31    Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:112.32    Subd. 3. Levy limit. In any budget certified by the commissioners under this section, 112.33the amount included for operation and maintenance shall not exceed an amount which, 112.34when extended against the property taxable therefor under section 
         473.621, subdivision 5, 113.1will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by 113.2the corporation shall not affect the amount or rate of taxes which may be levied by any other 113.3local government unit within the metropolitan area under the provisions of any charter.113.4    Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:113.5    Subd. 9. Additional taxes. Nothing herein shall prevent the commission from 113.6levying a tax not to exceed 0.00121 percent of estimated market value on taxable property 113.7within its taxing jurisdiction, in addition to any levies found necessary for the debt 113.8service fund authorized by section 
         473.671. Nothing herein shall prevent the levy and 113.9appropriation for purposes of the commission of any other tax on property or on any 113.10income, transaction, or privilege, when and if authorized by law. All collections of any 113.11taxes so levied shall be included in the revenues appropriated for the purposes referred 113.12to in this section, unless otherwise provided in the law authorizing the levies; but no 113.13covenant as to the continuance or as to the rate and amount of any such levy shall be made 113.14with the holders of the commission's bonds unless specifically authorized by law.113.15    Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:113.16473.671 LIMIT OF TAX LEVY.113.17    The taxes levied against the property of the metropolitan area in any one year shall 113.18not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied 113.19to pay the principal or interest on any bonds or indebtedness of the city issued under 113.20Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for 113.21payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 113.22500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the 113.23maximum rate allowed to be levied to defray the cost of government under the provisions 113.24of the charter of any city affected by Laws 1943, chapter 500.113.25    Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:113.26    Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the 113.27district as defined in section 
         473.702 to provide funds for the purposes of sections 
         473.701113.28to 
         473.716. The tax shall not exceed the property tax levy limitation determined in this 113.29subdivision. A participating county may agree to levy an additional tax to be used by the 113.30commission for the purposes of sections 
         473.701 to 
         473.716 but the sum of the county's and 113.31commission's taxes may not exceed the county's proportionate share of the property tax levy 113.32limitation determined under this subdivision based on the ratio of its total net tax capacity 113.33to the total net tax capacity of the entire district as adjusted by section 
         270.12, subdivision 114.13
         . The auditor of each county in the district shall add the amount of the levy made by the 114.2district to other taxes of the county for collection by the county treasurer with other taxes. 114.3When collected, the county treasurer shall make settlement of the tax with the district in 114.4the same manner as other taxes are distributed to political subdivisions. No county shall 114.5levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control 114.6except under this section. The levy shall be in addition to other taxes authorized by law.114.7    (b) The property tax levied by the Metropolitan Mosquito Control Commission shall 114.8not exceed the product of (i) the commission's property tax levy limitation for the previous 114.9year determined under this subdivision multiplied by (ii) an index for market valuation 114.10changes equal to the total estimated market valuation value of all taxable property for the 114.11current tax payable year located within the district plus any area that has been added to the 114.12district since the previous year, divided by the total estimated market valuation value of all 114.13taxable property located within the district for the previous taxes payable year.114.14    (c) For the purpose of determining the commission's property tax levy limitation 114.15under this subdivision, "total market valuation" means the total market valuation of all 114.16taxable property within the district without valuation adjustments for fiscal disparities 114.17(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage 114.18transmission lines (section 273.425).114.19    Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:114.20    Subd. 12. Adjusted market value. "Adjusted market value" of real and personal 114.21property within a municipality means the assessor's estimated taxable market value, 114.22as defined in section 272.03, of all real and personal property, including the value of 114.23manufactured housing, within the municipality, adjusted for sales ratios in a manner 114.24similar to the adjustments made to city and town net tax capacities. For purposes 114.25of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make 114.26determinations and reports with respect to each municipality which are comparable to 114.27those it makes for school districts under section 
         127A.48, subdivisions 1 to 6, in the same 114.28manner and at the same times as are prescribed by the subdivisions. The commissioner 114.29of revenue shall annually determine, for each municipality, information comparable to 114.30that required by section 475.53, subdivision 4, for school districts, as soon as practicable 114.31after it becomes available. The commissioner of revenue shall then compute the equalized 114.32market value of property within each municipality using the aggregate sales ratios from 114.33the Department of Revenue's sales ratio study.114.34    Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:115.1    Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation115.2 adjusted market value, determined as of January 2 of any year, divided by its population, 115.3determined as of a date in the same year.115.4    Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:115.5    Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities 115.6means the sum of the valuations adjusted market values of all municipalities, determined 115.7as of January 2 of any year, divided by the sum of their populations, determined as of 115.8a date in the same year.115.9    Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:115.10    Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of 115.11real and personal property multiplied by its net tax capacity rates in section 
         273.13.115.12    Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:115.13    Subd. 10. Adjustment of value or net tax capacity. For the purpose of computing 115.14the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any 115.15provision of any law or charter, where such authorization, requirement, or limitation 115.16is related in any manner to any value or valuation of taxable property within any 115.17governmental unit, such value or net tax capacity fiscal capacity under section 473F.02, 115.18subdivision 14, a municipality's taxable market value shall be adjusted to reflect the 115.19adjustments reductions to net tax capacity effected by subdivision 2, clause (a), provided 115.20that: (1) in determining the taxable market value of commercial-industrial property 115.21or any class thereof within a governmental unit for any purpose other than section 115.22473F.07 municipality, (a) the reduction required by this subdivision shall be that amount 115.23which bears the same proportion to the amount subtracted from the governmental unit's115.24 municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable 115.25market value of commercial-industrial property, or such class thereof, located within the 115.26governmental unit municipality bears to the net tax capacity of commercial-industrial 115.27property, or such class thereof, located within the governmental unit, and (b) the increase 115.28required by this subdivision shall be that amount which bears the same proportion to 115.29the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, 115.30clause (b), as the market value of commercial-industrial property, or such class thereof, 115.31located within the governmental unit bears to the net tax capacity of commercial-industrial 115.32property, or such class thereof, located within the governmental unit; and (2) in determining 115.33the market value of real property within a municipality for purposes of section 473F.07, 116.1the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by 116.2clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to 116.3taxable market value for the increase in net tax capacity under subdivision 2, clause (b).116.4    Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:116.5    Subd. 4. Limitations on amount. A municipality may not issue bonds under this 116.6section if the maximum amount of principal and interest to become due in any year on 116.7all the outstanding bonds issued under this section, including the bonds to be issued, 116.8will equal or exceed 0.16 percent of the taxable estimated market value of property 116.9in the municipality. Calculation of the limit must be made using the taxable estimated116.10 market value for the taxes payable year in which the obligations are issued and sold. In 116.11the case of a municipality with a population of 2,500 or more, the bonds are subject to 116.12the net debt limits under section 
         475.53. In the case of a shared facility in which more 116.13than one municipality participates, upon compliance by each participating municipality 116.14with the requirements of subdivision 2, the limitations in this subdivision and the net debt 116.15represented by the bonds shall be allocated to each participating municipality in proportion 116.16to its required financial contribution to the financing of the shared facility, as set forth in 116.17the joint powers agreement relating to the shared facility. This section does not limit the 116.18authority to issue bonds under any other special or general law.116.19    Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:116.20    Subdivision 1. Generally. Except as otherwise provided in sections 
         475.51 to 116.21475.74
         , no municipality, except a school district or a city of the first class, shall incur or be 116.22subject to a net debt in excess of three percent of the estimated market value of taxable 116.23property in the municipality.116.24    Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:116.25    Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of 116.26the first class may not incur a net debt in excess of two percent of the estimated market 116.27value of all taxable property therein. If the charter of the city permits a net debt of the city 116.28in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 116.29percent of the estimated market value of the taxable property therein.116.30    The county auditor, at the time of preparing the tax list of the city, shall compile a 116.31statement setting forth the total net tax capacity and the total estimated market value of 116.32each class of taxable property in such city for such year.117.1    Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:117.2    Subd. 4. School districts. Except as otherwise provided by law, no school district 117.3shall be subject to a net debt in excess of 15 percent of the actual estimated market value of 117.4all taxable property situated within its corporate limits, as computed in accordance with this 117.5subdivision. The county auditor of each county containing taxable real or personal property 117.6situated within any school district shall certify to the district upon request the estimated 117.7market value of all such property. Whenever the commissioner of revenue, in accordance 117.8with section 
         127A.48, subdivisions 1 to 6, has determined that the net tax capacity of any 117.9district furnished by county auditors is not based upon the adjusted market value of taxable 117.10property in the district exceeds the estimated market value of property within the district, 117.11the commissioner of revenue shall certify to the district upon request the ratio most recently 117.12ascertained to exist between such the estimated market value and the actual adjusted117.13 market value of property within the district., and the actual market value of property 117.14within a district, on which its debt limit under this subdivision is will be based, is (a) the 117.15value certified by the county auditors, or (b) this on the estimated market value divided by 117.16the ratio certified by the commissioner of revenue, whichever results in a higher value.117.17    Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:117.18    Subd. 2. Funding, refunding. Any county, city, town, or school district whose 117.19outstanding gross debt, including all items referred to in section 
         475.51, subdivision 117.204
         , exceed in amount 1.62 percent of its estimated market value may issue bonds under 117.21this subdivision for the purpose of funding or refunding such indebtedness or any part 117.22thereof. A list of the items of indebtedness to be funded or refunded shall be made by the 117.23recording officer and treasurer and filed in the office of the recording officer. The initial 117.24resolution of the governing body shall refer to this subdivision as authority for the issue, 117.25state the amount of bonds to be issued and refer to the list of indebtedness to be funded or 117.26refunded. This resolution shall be published once each week for two successive weeks 117.27in a legal newspaper published in the municipality or if there be no such newspaper, in 117.28a legal newspaper published in the county seat. Such bonds may be issued without the 117.29submission of the question of their issue to the electors unless within ten days after the 117.30second publication of the resolution a petition requesting such election signed by ten or 117.31more voters who are taxpayers of the municipality, shall be filed with the recording officer. 117.32In event such petition is filed, no bonds shall be issued hereunder unless authorized by a 117.33majority of the electors voting on the question.117.34    Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:118.1    Subdivision 1. May purchase these bonds; conditions. Obligations sold under the 118.2provisions of section 
         475.60 may be purchased by the State Board of Investment if the 118.3obligations meet the requirements of section 
         11A.24, subdivision 2, upon the approval of 118.4the attorney general as to form and execution of the application therefor, and under rules 118.5as the board may specify, and the state board shall have authority to purchase the same 118.6to an amount not exceeding 
         3.63 percent of the estimated market value of the taxable 118.7property of the municipality, according to the last preceding assessment. The obligations 118.8shall not run for a shorter period than one year, nor for a longer period than 30 years and 118.9shall bear interest at a rate to be fixed by the state board but not less than two percent per 118.10annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by 118.11virtue thereof, the commissioner of management and budget shall certify to the respective 118.12auditors of the various counties wherein are situated the municipalities issuing the same, 118.13the number, denomination, amount, rate of interest and date of maturity of each obligation.118.14    Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to 118.15read:118.16    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax 118.17capacity computed using the net tax capacity rates in section 273.13 for taxes payable 118.18in the year of the aid distribution, and the market values, after the exclusion in section 118.19273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) 118.20a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, 118.21paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior 118.22to that for which aids are being calculated. The market value utilized in computing city 118.23net tax capacity shall be reduced by the sum of (1) a city's market value of commercial 118.24industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, 118.25multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph 118.26(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value 118.27of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) 118.28the market value of transmission lines deducted from a city's total net tax capacity under 118.29section 273.425. The city net tax capacity will be computed using equalized market values118.30 the city's adjusted net tax capacity under section 273.1325.118.31EFFECTIVE DATE.This section is effective the day following final enactment.118.32    Sec. 106. Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to 118.33read:119.1    Subd. 32. Commercial industrial percentage. "Commercial industrial percentage" 119.2for a city is 100 times the sum of the estimated market values of all real property in the 119.3city classified as class 3 under section 
         273.13, subdivision 24, excluding public utility 119.4property, to the total estimated market value of all taxable real and personal property in 119.5the city. The estimated market values are the amounts computed before any adjustments 119.6for fiscal disparities under section 
         276A.06 or 
         473F.08. The estimated market values 119.7used for this subdivision are not equalized.119.8EFFECTIVE DATE.This section is effective for aids payable in 2014 and thereafter.119.9    Sec. 107. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to 119.10read:119.11    Subd. 2. Definitions. (a) For the purposes of this section, the following terms 119.12have the meanings given them.119.13    (b) "County program aid" means the sum of "county need aid," "county tax base 119.14equalization aid," and "county transition aid."119.15    (c) "Age-adjusted population" means a county's population multiplied by the county 119.16age index.119.17    (d) "County age index" means the percentage of the population over age 65 within 119.18the county divided by the percentage of the population over age 65 within the state, except 119.19that the age index for any county may not be greater than 1.8 nor less than 0.8.119.20    (e) "Population over age 65" means the population over age 65 established as of 119.21July 15 in an aid calculation year by the most recent federal census, by a special census 119.22conducted under contract with the United States Bureau of the Census, by a population 119.23estimate made by the Metropolitan Council, or by a population estimate of the state 119.24demographer made pursuant to section 
         4A.02, whichever is the most recent as to the stated 119.25date of the count or estimate for the preceding calendar year and which has been certified 119.26to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 119.27to an estimate or count is effective for these purposes only if certified to the commissioner 119.28on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 119.29estimates and counts established as of July 15 in the aid calculation year are subject to 119.30correction within the time periods allowed under section 
         477A.014.119.31    (f) "Part I crimes" means the three-year average annual number of Part I crimes 119.32reported for each county by the Department of Public Safety for the most recent years 119.33available. By July 1 of each year, the commissioner of public safety shall certify to the 119.34commissioner of revenue the number of Part I crimes reported for each county for the 119.35three most recent calendar years available.120.1    (g) "Households receiving food stamps" means the average monthly number of 120.2households receiving food stamps for the three most recent years for which data is 120.3available. By July 1 of each year, the commissioner of human services must certify to the 120.4commissioner of revenue the average monthly number of households in the state and in 120.5each county that receive food stamps, for the three most recent calendar years available.120.6    (h) "County net tax capacity" means the net tax capacity of the county, computed 120.7analogously to city net tax capacity under section 477A.011, subdivision 20 county's 120.8adjusted net tax capacity under section 273.1325.120.9EFFECTIVE DATE.This section is effective the day following final enactment.120.10    Sec. 108. Minnesota Statutes 2012, section 641.23, is amended to read:120.11641.23 FUNDS; HOW PROVIDED.120.12    Before any contract is made for the erection of a county jail, sheriff's residence, or 120.13both, the county board shall either levy a sufficient tax to provide the necessary funds, or 120.14issue county bonds therefor in accordance with the provisions of chapter 475, provided 120.15that no election is required if the amount of all bonds issued for this purpose and interest 120.16on them which are due and payable in any year does not exceed an amount equal to 120.170.09671 percent of estimated market value of taxable property within the county, as last 120.18determined before the bonds are issued.120.19    Sec. 109. Minnesota Statutes 2012, section 641.24, is amended to read:120.20641.24 LEASING.120.21    The county may, by resolution of the county board, enter into a lease agreement with 120.22any statutory or home rule charter city situated within the county, or a county housing and 120.23redevelopment authority established pursuant to chapter 469 or any special law whereby 120.24the city or county housing and redevelopment authority will construct a jail or other law 120.25enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the 120.26sheriff and other law enforcement agencies, in accordance with plans prepared by or at 120.27the request of the county board and, when required, approved by the commissioner of 120.28corrections and will finance it by the issuance of revenue bonds, and the county may lease 120.29the site and improvements for a term and upon rentals sufficient to produce revenue for the 120.30prompt payment of the bonds and all interest accruing thereon and, upon completion of 120.31payment, will acquire title thereto. The real and personal property acquired for the jail 120.32shall constitute a project and the lease agreement shall constitute a revenue agreement 120.33as contemplated in chapter 469, and all proceedings shall be taken by the city or county 121.1housing and redevelopment authority and the county in the manner and with the force and 121.2effect provided in chapter 469; provided that:121.3    (1) no tax shall be imposed upon or in lieu of a tax upon the property;121.4    (2) the approval of the project by the commissioner of commerce shall not be required;121.5    (3) the Department of Corrections shall be furnished and shall record such 121.6information concerning each project as it may prescribe;121.7    (4) the rentals required to be paid under the lease agreement shall not exceed in any 121.8year one-tenth of one percent of the estimated market value of property within the county, 121.9as last finally equalized before the execution of the agreement;121.10    (5) the county board shall provide for the payment of all rentals due during the term 121.11of the lease, in the manner required in section 
         641.264, subdivision 2;121.12    (6) no mortgage on the property shall be granted for the security of the bonds, but 121.13compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the 121.14county board; and121.15    (7) the county board may sublease any part of the jail property for purposes consistent 121.16with the maintenance and operation of a county jail or other law enforcement facility.121.17    Sec. 110. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision 121.18to read:121.19    Subd. 20.Estimated market value.When used in determining or calculating a 121.20limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or 121.21capital note issuance by or for a local government unit, "estimated market value" has the 121.22meaning given in section 273.032.121.23    Sec. 111. REVISOR'S INSTRUCTION.121.24    The revisor of statutes shall recodify Minnesota Statutes, section 127.48, 121.25subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all 121.26cross-references to the affected subdivisions accordingly.121.27EFFECTIVE DATE.This section is effective the day following final enactment.121.28    Sec. 112.  REPEALER.121.29Minnesota Statutes 2012, sections 273.11, subdivision 1a; 276A.01, subdivision 11; 121.30473F.02, subdivision 13; and 477A.011, subdivision 21, are repealed.121.31    Sec. 113. EFFECTIVE DATE.122.1    Unless otherwise specifically provided, this article is effective the day following 122.2final enactment for purposes of limits on net debt, the issuance of bonds, certificates of 122.3indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for 122.4all other purposes.122.5ARTICLE 8122.6DEPARTMENT OF REVENUE PROPERTY AND MINERALS PROVISIONS122.7    Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to 122.8read:122.9    Subdivision 1. Definitions. "Split residential property parcel" means a parcel of 122.10real estate that is located within the boundaries of more than one school district and that 122.11is classified as residential property under:122.12    (1) section 
         273.13, subdivision 22, paragraph (a) or (b);122.13    (2) section 
         273.13, subdivision 25, paragraph (b), clause (1); or122.14    (3) section 
         273.13, subdivision 25, paragraph (c), clause (1).122.15EFFECTIVE DATE.This section is effective for taxes payable in 2014 and 122.16thereafter.122.17    Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read:122.18270.077 TAXES CREDITED TO STATE AIRPORTS FUND.122.19    All taxes levied under sections 
         270.071 to 
         270.079 must be collected by the 122.20commissioner and credited to the state airports fund created in section 
         360.017.122.21EFFECTIVE DATE.This section is effective the day following final enactment.122.22    Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:122.23    Subd. 5. Prohibited activity. A licensed assessor or other person employed by an 122.24assessment jurisdiction or contracting with an assessment jurisdiction for the purpose 122.25of valuing or classifying property for property tax purposes is prohibited from making 122.26appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report 122.27as defined in section 
         82B.021, subdivisions 2, 4, 6, and 7, on any property within the 122.28assessment jurisdiction where the individual is employed or performing the duties of the 122.29assessor under contract. Violation of this prohibition shall result in immediate revocation 122.30of the individual's license to assess property for property tax purposes. This prohibition 122.31must not be construed to prohibit an individual from carrying out any duties required 123.1for the proper assessment of property for property tax purposes or performing duties 123.2enumerated in section 
         273.061, subdivision 7 or 8. If a formal resolution has been adopted 123.3by the governing body of a governmental unit, which specifies the purposes for which 123.4such work will be done, this prohibition does not apply to appraisal activities undertaken 123.5on behalf of and at the request of the governmental unit that has employed or contracted 123.6with the individual. The resolution may only allow appraisal activities which are related to 123.7condemnations, right-of-way acquisitions, land exchanges, or special assessments.123.8EFFECTIVE DATE.This section is effective the day following final enactment.123.9    Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:123.10    Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any 123.11penalty or interest that is imposed by a law administered by the commissioner, or imposed 123.12by section 
         270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late 123.13payment of tax or late filing of a return, or any part of an additional tax charge under 123.14section 
         289A.25, subdivision 2, or 
         289A.26, subdivision 4, if the failure to timely pay the 123.15tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located 123.16in a presidentially declared disaster or in a presidentially declared state of emergency area 123.17or in an area declared to be in a state of emergency by the governor under section 
         12.31.123.18    (b) The commissioner shall abate any part of a penalty or additional tax charge 123.19under section 
         289A.25, subdivision 2, or 
         289A.26, subdivision 4, attributable to erroneous 123.20advice given to the taxpayer in writing by an employee of the department acting in 123.21an official capacity, if the advice:123.22    (1) was reasonably relied on and was in response to a specific written request of the 123.23taxpayer; and123.24    (2) was not the result of failure by the taxpayer to provide adequate or accurate 123.25information.123.26EFFECTIVE DATE.This section is effective the day following final enactment.123.27    Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:123.28    Subd. 2. Exempt property used by private entity for profit. (a) When any real or 123.29personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is 123.30leased, loaned, or otherwise made available and used by a private individual, association, 123.31or corporation in connection with a business conducted for profit, there shall be imposed a 123.32tax, for the privilege of so using or possessing such real or personal property, in the same 123.33amount and to the same extent as though the lessee or user was the owner of such property.124.1    (b) The tax imposed by this subdivision shall not apply to:124.2    (1) property leased or used as a concession in or relative to the use in whole 124.3or part of a public park, market, fairgrounds, port authority, economic development 124.4authority established under chapter 469, municipal auditorium, municipal parking facility, 124.5municipal museum, or municipal stadium;124.6    (2) property of an airport owned by a city, town, county, or group thereof which is:124.7    (i) leased to or used by any person or entity including a fixed base operator; and124.8    (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 124.9services, or facilities to the airport or general public;124.10the exception from taxation provided in this clause does not apply to:124.11    (i) property located at an airport owned or operated by the Metropolitan Airports 124.12Commission or by a city of over 50,000 population according to the most recent federal 124.13census or such a city's airport authority; or124.14    (ii) hangars leased by a private individual, association, or corporation in connection 124.15with a business conducted for profit other than an aviation-related business;124.16    (3) property constituting or used as a public pedestrian ramp or concourse in 124.17connection with a public airport;124.18    (4) property constituting or used as a passenger check-in area or ticket sale counter, 124.19boarding area, or luggage claim area in connection with a public airport but not the 124.20airports owned or operated by the Metropolitan Airports Commission or cities of over 124.2150,000 population or an airport authority therein. Real estate owned by a municipality 124.22in connection with the operation of a public airport and leased or used for agricultural 124.23purposes is not exempt;124.24    (5) property leased, loaned, or otherwise made available to a private individual, 124.25corporation, or association under a cooperative farming agreement made pursuant to 124.26section 
         97A.135; or124.27    (6) property leased, loaned, or otherwise made available to a private individual, 124.28corporation, or association under section 
         272.68, subdivision 4.124.29    (c) Taxes imposed by this subdivision are payable as in the case of personal property 124.30taxes and shall be assessed to the lessees or users of real or personal property in the same 124.31manner as taxes assessed to owners of real or personal property, except that such taxes 124.32shall not become a lien against the property. When due, the taxes shall constitute a debt due 124.33from the lessee or user to the state, township, city, county, and school district for which the 124.34taxes were assessed and shall be collected in the same manner as personal property taxes. 124.35If property subject to the tax imposed by this subdivision is leased or used jointly by two or 124.36more persons, each lessee or user shall be jointly and severally liable for payment of the tax.125.1    (d) The tax on real property of the federal government, the state or any of its political 125.2subdivisions that is leased by, loaned, or otherwise made available to a private individual, 125.3association, or corporation and becomes taxable under this subdivision or other provision 125.4of law must be assessed and collected as a personal property assessment. The taxes do 125.5not become a lien against the real property.125.6EFFECTIVE DATE.This section is effective the day following final enactment.125.7    Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:125.8    Subd. 97. Property used in business of mining subject to net proceeds tax. The 125.9following property used in the business of mining that is subject to the net proceeds tax 125.10under section 
         298.015 is exempt:125.11    (1) deposits of ores, metals, and minerals and the lands in which they are contained;125.12    (2) all real and personal property used in mining, quarrying, producing, or refining 125.13ores, minerals, or metals, including lands occupied by or used in connection with the 125.14mining, quarrying, production, or ore refining facilities; and125.15    (3) concentrate or direct reduced ore.125.16    This exemption applies for each year that a person subject to tax under section 125.17298.015
          uses the property for mining, quarrying, producing, or refining ores, metals, or 125.18minerals.125.19EFFECTIVE DATE.This section is effective the day following final enactment.125.20    Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:125.21    Subd. 9. Person. "Person" includes means an individual, association, estate, trust, 125.22partnership, firm, company, or corporation.125.23EFFECTIVE DATE.This section is effective the day following final enactment.125.24    Sec. 8. Minnesota Statutes 2012, section 273.032, is amended to read:125.25273.032 MARKET VALUE DEFINITION.125.26    For the purpose of determining any property tax levy limitation based on market 125.27value, any qualification to receive state aid based on market value, or any state aid amount 125.28based on market value, the terms "market value," "taxable market value," and "market 125.29valuation," whether equalized or unequalized, mean the total taxable market value of 125.30property within the local unit of government before any adjustments for tax increment, 125.31fiscal disparity, powerline credit, or wind energy values, but after the limited market 126.1adjustments under section 273.11, subdivision 1a, and after the market value exclusions of 126.2certain improvements to homestead property under section 
         273.11, subdivision 16. Unless 126.3otherwise provided, "market value," "taxable market value," and "market valuation" for 126.4purposes of this paragraph, refer to the taxable market value for the previous assessment 126.5year.126.6    For the purpose of determining any net debt limit based on market value, or any limit 126.7on the issuance of bonds, certificates of indebtedness, or capital notes based on market 126.8value, the terms "market value," "taxable market value," and "market valuation," whether 126.9equalized or unequalized, mean the total taxable market value of property within the local 126.10unit of government before any adjustments for tax increment, fiscal disparity, powerline 126.11credit, or wind energy values, but after the limited market value adjustments under section 126.12273.11, subdivision 1a, and after the market value exclusions of certain improvements to 126.13homestead property under section 
         273.11, subdivision 16. Unless otherwise provided, 126.14"market value," "taxable market value," and "market valuation" for purposes of this 126.15paragraph, mean the taxable market value as last finally equalized.126.16EFFECTIVE DATE.This section is effective the day following final enactment.126.17    Sec. 9. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:126.18    Subd. 6. Additional taxes.(a) When real property which is being, or has been 126.19valued and assessed under this section is sold, transferred, or no longer qualifies under 126.20subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to 126.21additional taxes in the amount equal to the difference between the taxes determined in 126.22accordance with subdivision 3 and the amount determined under subdivision 4, provided 126.23that the amount determined under subdivision 4 shall not be greater than it would have 126.24been had the actual bona fide sale price of the real property at an arm's-length transaction 126.25been used in lieu of the market value determined under subdivision 4. The additional taxes 126.26shall be extended against the property on the tax list for taxes payable in the current year, 126.27provided that no interest or penalties shall be levied on the additional taxes if timely paid 126.28and provided that the additional taxes shall only be levied with respect to the current year 126.29plus two prior years that the property has been valued and assessed under this section.126.30    (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not 126.31be extended against the property if the new owner submits a successful application under 126.32this section by the later of May 1 of the current year or 30 days after the sale or transfer.126.33    (c) For the purposes of this section, the following events do not constitute a sale or 126.34transfer for property that qualified under subdivision 2 prior to the event:127.1    (1) death of a property owner when the surviving owners retain ownership of the 127.2property;127.3    (2) divorce of a married couple when one of the spouses retains ownership of the 127.4property;127.5    (3) marriage of a single property owner when that owner retains ownership of the 127.6property in whole or in part;127.7    (4) the organization or reorganization of a farm ownership entity that is not prohibited 127.8from owning agricultural land in this state under section 500.24, if all owners maintain the 127.9same beneficial interest both before and after the organization or reorganization; and127.10    (5) transfer of the property to a trust or trustee, provided that the individual owners 127.11of the property are the grantors of the trust and they maintain the same beneficial interest 127.12both before and after placement of the property in trust.127.13EFFECTIVE DATE.This section is effective the day following final enactment.127.14    Sec. 10. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:127.15    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 127.16land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 127.17the class 2a land under the same ownership. The market value of the house and garage 127.18and immediately surrounding one acre of land has the same class rates as class 1a or 1b 127.19property under subdivision 22. The value of the remaining land including improvements 127.20up to the first tier valuation limit of agricultural homestead property has a net class rate 127.21of 0.5 percent of market value. The remaining property over the first tier has a class rate 127.22of one percent of market value. For purposes of this subdivision, the "first tier valuation 127.23limit of agricultural homestead property" and "first tier" means the limit certified under 127.24section 
         273.11, subdivision 23.127.25    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 127.26are agricultural land and buildings. Class 2a property has a net class rate of one percent of 127.27market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 127.28property must also include any property that would otherwise be classified as 2b, but is 127.29interspersed with class 2a property, including but not limited to sloughs, wooded wind 127.30shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 127.31and other similar land that is impractical for the assessor to value separately from the rest of 127.32the property or that is unlikely to be able to be sold separately from the rest of the property.127.33    An assessor may classify the part of a parcel described in this subdivision that is used 127.34for agricultural purposes as class 2a and the remainder in the class appropriate to its use.128.1    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 128.2that are unplatted real estate, rural in character and not used for agricultural purposes, 128.3including land used for growing trees for timber, lumber, and wood and wood products, 128.4that is not improved with a structure. The presence of a minor, ancillary nonresidential 128.5structure as defined by the commissioner of revenue does not disqualify the property from 128.6classification under this paragraph. Any parcel of 20 acres or more improved with a 128.7structure that is not a minor, ancillary nonresidential structure must be split-classified, and 128.8ten acres must be assigned to the split parcel containing the structure. Class 2b property 128.9has a net class rate of one percent of market value unless it is part of an agricultural 128.10homestead under paragraph (a), or qualifies as class 2c under paragraph (d).128.11    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 128.12acres statewide per taxpayer that is being managed under a forest management plan that 128.13meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 128.14resource management incentive program. It has a class rate of .65 percent, provided that 128.15the owner of the property must apply to the assessor in order for the property to initially 128.16qualify for the reduced rate and provide the information required by the assessor to verify 128.17that the property qualifies for the reduced rate. If the assessor receives the application 128.18and information before May 1 in an assessment year, the property qualifies beginning 128.19with that assessment year. If the assessor receives the application and information after 128.20April 30 in an assessment year, the property may not qualify until the next assessment 128.21year. The commissioner of natural resources must concur that the land is qualified. The 128.22commissioner of natural resources shall annually provide county assessors verification 128.23information on a timely basis. The presence of a minor, ancillary nonresidential structure 128.24as defined by the commissioner of revenue does not disqualify the property from 128.25classification under this paragraph.128.26    (e) Agricultural land as used in this section means:128.27    (1) contiguous acreage of ten acres or more, used during the preceding year for 128.28agricultural purposes.; or128.29    (2) contiguous acreage used during the preceding year for an intensive livestock or 128.30poultry confinement operation, provided that land used only for pasturing or grazing 128.31does not qualify under this clause.128.32    "Agricultural purposes" as used in this section means the raising, cultivation, drying, 128.33or storage of agricultural products for sale, or the storage of machinery or equipment 128.34used in support of agricultural production by the same farm entity. For a property to be 128.35classified as agricultural based only on the drying or storage of agricultural products, 128.36the products being dried or stored must have been produced by the same farm entity as 129.1the entity operating the drying or storage facility. "Agricultural purposes" also includes 129.2enrollment in the Reinvest in Minnesota program under sections 
         103F.501 to 
         103F.535 or 129.3the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar 129.4state or federal conservation program if the property was classified as agricultural (i) 129.5under this subdivision for the assessment year 2002 taxes payable in 2003 because of its 129.6enrollment in a qualifying program and the land remains enrolled or (ii) in the year prior 129.7to its enrollment. Agricultural classification shall not be based upon the market value of 129.8any residential structures on the parcel or contiguous parcels under the same ownership.129.9    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 129.10portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 129.11of, a set of contiguous tax parcels under that section that are owned by the same person.129.12    (f) Real estate of Agricultural land under this section also includes:129.13    (1) contiguous acreage that is less than ten acres, which is in size and exclusively or 129.14intensively used in the preceding year for raising or cultivating agricultural products, shall 129.15be considered as agricultural land. To qualify under this paragraph, property that includes 129.16a residential structure must be used intensively for one of the following purposes:; or129.17    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if 129.18the contiguous acreage exclusive of the house, garage, and surrounding one acre of land 129.19was used in the preceding year for one or more of the following three uses:129.20    (i) for an intensive grain drying or storage of grain operation, or for intensive 129.21machinery or equipment storage of machinery or equipment activities used to support 129.22agricultural activities on other parcels of property operated by the same farming entity;129.23    (ii) as a nursery, provided that only those acres used intensively to produce nursery 129.24stock are considered agricultural land; or129.25    (iii) for livestock or poultry confinement, provided that land that is used only for 129.26pasturing and grazing does not qualify; or129.27    (iv) (iii) for intensive market farming; for purposes of this paragraph, "market 129.28farming" means the cultivation of one or more fruits or vegetables or production of animal 129.29or other agricultural products for sale to local markets by the farmer or an organization 129.30with which the farmer is affiliated.129.31    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 129.32described in section 272.193, or all of a set of contiguous tax parcels under that section 129.33that are owned by the same person.129.34    (g) Land shall be classified as agricultural even if all or a portion of the agricultural 129.35use of that property is the leasing to, or use by another person for agricultural purposes.130.1    Classification under this subdivision is not determinative for qualifying under 130.2section 
         273.111.130.3    (h) The property classification under this section supersedes, for property tax 130.4purposes only, any locally administered agricultural policies or land use restrictions that 130.5define minimum or maximum farm acreage.130.6    (i) The term "agricultural products" as used in this subdivision includes production 130.7for sale of:130.8    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 130.9animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 130.10bees, and apiary products by the owner;130.11    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 130.12for agricultural use;130.13    (3) the commercial boarding of horses, which may include related horse training and 130.14riding instruction, if the boarding is done on property that is also used for raising pasture 130.15to graze horses or raising or cultivating other agricultural products as defined in clause (1);130.16    (4) property which is owned and operated by nonprofit organizations used for 130.17equestrian activities, excluding racing;130.18    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under 130.19section 
         97A.105, provided that the annual licensing report to the Department of Natural 130.20Resources, which must be submitted annually by March 30 to the assessor, indicates 130.21that at least 500 birds were raised or used for breeding stock on the property during the 130.22preceding year and that the owner provides a copy of the owner's most recent schedule F; 130.23or (ii) for use on a shooting preserve licensed under section 
         97A.115;130.24    (6) insects primarily bred to be used as food for animals;130.25    (7) trees, grown for sale as a crop, including short rotation woody crops, and not 130.26sold for timber, lumber, wood, or wood products; and130.27    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 130.28Department of Agriculture under chapter 28A as a food processor.130.29    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 130.30purposes, including but not limited to:130.31    (1) wholesale and retail sales;130.32    (2) processing of raw agricultural products or other goods;130.33    (3) warehousing or storage of processed goods; and130.34    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 130.35and (3),131.1the assessor shall classify the part of the parcel used for agricultural purposes as class 131.21b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 131.3use. The grading, sorting, and packaging of raw agricultural products for first sale is 131.4considered an agricultural purpose. A greenhouse or other building where horticultural 131.5or nursery products are grown that is also used for the conduct of retail sales must be 131.6classified as agricultural if it is primarily used for the growing of horticultural or nursery 131.7products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 131.8those products. Use of a greenhouse or building only for the display of already grown 131.9horticultural or nursery products does not qualify as an agricultural purpose.131.10    (k) The assessor shall determine and list separately on the records the market value 131.11of the homestead dwelling and the one acre of land on which that dwelling is located. If 131.12any farm buildings or structures are located on this homesteaded acre of land, their market 131.13value shall not be included in this separate determination.131.14    (l) Class 2d airport landing area consists of a landing area or public access area of 131.15a privately owned public use airport. It has a class rate of one percent of market value. 131.16To qualify for classification under this paragraph, a privately owned public use airport 131.17must be licensed as a public airport under section 
         360.018. For purposes of this paragraph, 131.18"landing area" means that part of a privately owned public use airport properly cleared, 131.19regularly maintained, and made available to the public for use by aircraft and includes 131.20runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 131.21A landing area also includes land underlying both the primary surface and the approach 131.22surfaces that comply with all of the following:131.23    (i) the land is properly cleared and regularly maintained for the primary purposes of 131.24the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 131.25facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;131.26    (ii) the land is part of the airport property; and131.27    (iii) the land is not used for commercial or residential purposes.131.28The land contained in a landing area under this paragraph must be described and certified 131.29by the commissioner of transportation. The certification is effective until it is modified, 131.30or until the airport or landing area no longer meets the requirements of this paragraph. 131.31For purposes of this paragraph, "public access area" means property used as an aircraft 131.32parking ramp, apron, or storage hangar, or an arrival and departure building in connection 131.33with the airport.131.34    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 131.35being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 131.36located in a county that has elected to opt-out of the aggregate preservation program as 132.1provided in section 
         273.1115, subdivision 6. It has a class rate of one percent of market 132.2value. To qualify for classification under this paragraph, the property must be at least 132.3ten contiguous acres in size and the owner of the property must record with the county 132.4recorder of the county in which the property is located an affidavit containing:132.5    (1) a legal description of the property;132.6    (2) a disclosure that the property contains a commercial aggregate deposit that is not 132.7actively being mined but is present on the entire parcel enrolled;132.8    (3) documentation that the conditional use under the county or local zoning 132.9ordinance of this property is for mining; and132.10    (4) documentation that a permit has been issued by the local unit of government 132.11or the mining activity is allowed under local ordinance. The disclosure must include a 132.12statement from a registered professional geologist, engineer, or soil scientist delineating 132.13the deposit and certifying that it is a commercial aggregate deposit.132.14    For purposes of this section and section 
         273.1115, "commercial aggregate deposit" 132.15means a deposit that will yield crushed stone or sand and gravel that is suitable for use 132.16as a construction aggregate; and "actively mined" means the removal of top soil and 132.17overburden in preparation for excavation or excavation of a commercial deposit.132.18    (n) When any portion of the property under this subdivision or subdivision 22 begins 132.19to be actively mined, the owner must file a supplemental affidavit within 60 days from 132.20the day any aggregate is removed stating the number of acres of the property that is 132.21actively being mined. The acres actively being mined must be (1) valued and classified 132.22under subdivision 24 in the next subsequent assessment year, and (2) removed from the 132.23aggregate resource preservation property tax program under section 
         273.1115, if the 132.24land was enrolled in that program. Copies of the original affidavit and all supplemental 132.25affidavits must be filed with the county assessor, the local zoning administrator, and the 132.26Department of Natural Resources, Division of Land and Minerals. A supplemental 132.27affidavit must be filed each time a subsequent portion of the property is actively mined, 132.28provided that the minimum acreage change is five acres, even if the actual mining activity 132.29constitutes less than five acres.132.30    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 132.31not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions 132.32in section 
         14.386 concerning exempt rules do not apply.132.33EFFECTIVE DATE.This section is effective for taxes payable in 2014 and 132.34thereafter.132.35    Sec. 11. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:133.1    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 133.2units and used or held for use by the owner or by the tenants or lessees of the owner 133.3as a residence for rental periods of 30 days or more, excluding property qualifying for 133.4class 4d. Class 4a also includes hospitals licensed under sections 
         144.50 to 
         144.56, other 133.5than hospitals exempt under section 
         272.02, and contiguous property used for hospital 133.6purposes, without regard to whether the property has been platted or subdivided. The 133.7market value of class 4a property has a class rate of 1.25 percent.133.8    (b) Class 4b includes:133.9    (1) residential real estate containing less than four units that does not qualify as class 133.104bb, other than seasonal residential recreational property;133.11    (2) manufactured homes not classified under any other provision;133.12    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 133.13farm classified under subdivision 23, paragraph (b) containing two or three units; and133.14    (4) unimproved property that is classified residential as determined under subdivision 133.1533.133.16    The market value of class 4b property has a class rate of 1.25 percent.133.17    (c) Class 4bb includes:133.18    (1) nonhomestead residential real estate containing one unit, other than seasonal 133.19residential recreational property; and133.20    (2) a single family dwelling, garage, and surrounding one acre of property on a 133.21nonhomestead farm classified under subdivision 23, paragraph (b).133.22    Class 4bb property has the same class rates as class 1a property under subdivision 22.133.23    Property that has been classified as seasonal residential recreational property at 133.24any time during which it has been owned by the current owner or spouse of the current 133.25owner does not qualify for class 4bb.133.26    (d) Class 4c property includes:133.27    (1) except as provided in subdivision 22, paragraph (c), real and personal property 133.28devoted to commercial temporary and seasonal residential occupancy for recreation 133.29purposes, for not more than 250 days in the year preceding the year of assessment. For 133.30purposes of this clause, property is devoted to a commercial purpose on a specific day 133.31if any portion of the property is used for residential occupancy, and a fee is charged for 133.32residential occupancy. Class 4c property under this clause must contain three or more 133.33rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, 133.34or individual camping site equipped with water and electrical hookups for recreational 133.35vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 133.364c under this clause is also class 4c under this clause regardless of the term of the rental 134.1agreement, as long as the use of the camping pad does not exceed 250 days. In order for a 134.2property to be classified under this clause, either (i) the business located on the property 134.3must provide recreational activities, at least 40 percent of the annual gross lodging receipts 134.4related to the property must be from business conducted during 90 consecutive days, 134.5and either (A) at least 60 percent of all paid bookings by lodging guests during the year 134.6must be for periods of at least two consecutive nights; or (B) at least 20 percent of the 134.7annual gross receipts must be from charges for providing recreational activities, or (ii) the 134.8business must contain 20 or fewer rental units, and must be located in a township or a city 134.9with a population of 2,500 or less located outside the metropolitan area, as defined under 134.10section 
         473.121, subdivision 2, that contains a portion of a state trail administered by the 134.11Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or 134.12more nights shall be counted as two bookings. Class 4c property also includes commercial 134.13use real property used exclusively for recreational purposes in conjunction with other class 134.144c property classified under this clause and devoted to temporary and seasonal residential 134.15occupancy for recreational purposes, up to a total of two acres, provided the property is 134.16not devoted to commercial recreational use for more than 250 days in the year preceding 134.17the year of assessment and is located within two miles of the class 4c property with which 134.18it is used. In order for a property to qualify for classification under this clause, the owner 134.19must submit a declaration to the assessor designating the cabins or units occupied for 250 134.20days or less in the year preceding the year of assessment by January 15 of the assessment 134.21year. Those cabins or units and a proportionate share of the land on which they are located 134.22must be designated class 4c under this clause as otherwise provided. The remainder of the 134.23cabins or units and a proportionate share of the land on which they are located will be 134.24designated as class 3a. The owner of property desiring designation as class 4c property 134.25under this clause must provide guest registers or other records demonstrating that the units 134.26for which class 4c designation is sought were not occupied for more than 250 days in the 134.27year preceding the assessment if so requested. The portion of a property operated as a 134.28(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 134.29nonresidential facility operated on a commercial basis not directly related to temporary and 134.30seasonal residential occupancy for recreation purposes does not qualify for class 4c. For 134.31the purposes of this paragraph, "recreational activities" means renting ice fishing houses, 134.32boats and motors, snowmobiles, downhill or cross-country ski equipment; providing 134.33marina services, launch services, or guide services; or selling bait and fishing tackle;134.34    (2) qualified property used as a golf course if:134.35    (i) it is open to the public on a daily fee basis. It may charge membership fees or 134.36dues, but a membership fee may not be required in order to use the property for golfing, 135.1and its green fees for golfing must be comparable to green fees typically charged by 135.2municipal courses; and135.3    (ii) it meets the requirements of section 
         273.112, subdivision 3, paragraph (d).135.4    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 135.5with the golf course is classified as class 3a property;135.6    (3) real property up to a maximum of three acres of land owned and used by a 135.7nonprofit community service oriented organization and not used for residential purposes 135.8on either a temporary or permanent basis, provided that:135.9    (i) the property is not used for a revenue-producing activity for more than six days 135.10in the calendar year preceding the year of assessment; or135.11    (ii) the organization makes annual charitable contributions and donations at least 135.12equal to the property's previous year's property taxes and the property is allowed to be 135.13used for public and community meetings or events for no charge, as appropriate to the 135.14size of the facility.135.15    For purposes of this clause:135.16    (A) "charitable contributions and donations" has the same meaning as lawful 135.17gambling purposes under section 
         349.12, subdivision 25, excluding those purposes 135.18relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;135.19    (B) "property taxes" excludes the state general tax;135.20    (C) a "nonprofit community service oriented organization" means any corporation, 135.21society, association, foundation, or institution organized and operated exclusively for 135.22charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 135.23federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 135.24Revenue Code; and135.25    (D) "revenue-producing activities" shall include but not be limited to property or that 135.26portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 135.27liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 135.28alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 135.29insurance business, or office or other space leased or rented to a lessee who conducts a 135.30for-profit enterprise on the premises.135.31Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use 135.32of the property for social events open exclusively to members and their guests for periods 135.33of less than 24 hours, when an admission is not charged nor any revenues are received by 135.34the organization shall not be considered a revenue-producing activity.135.35    The organization shall maintain records of its charitable contributions and donations 135.36and of public meetings and events held on the property and make them available upon 136.1request any time to the assessor to ensure eligibility. An organization meeting the 136.2requirement under item (ii) must file an application by May 1 with the assessor for 136.3eligibility for the current year's assessment. The commissioner shall prescribe a uniform 136.4application form and instructions;136.5    (4) postsecondary student housing of not more than one acre of land that is owned by 136.6a nonprofit corporation organized under chapter 317A and is used exclusively by a student 136.7cooperative, sorority, or fraternity for on-campus housing or housing located within two 136.8miles of the border of a college campus;136.9    (5)(i) manufactured home parks as defined in section 
         327.14, subdivision 3, 136.10excluding manufactured home parks described in section 
         273.124, subdivision 3a, and (ii) 136.11manufactured home parks as defined in section 
         327.14, subdivision 3, that are described in 136.12section 
         273.124, subdivision 3a;136.13    (6) real property that is actively and exclusively devoted to indoor fitness, health, 136.14social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 136.15and is located within the metropolitan area as defined in section 
         473.121, subdivision 2;136.16    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 136.17under section 
         272.01, subdivision 2, and the land on which it is located, provided that:136.18    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 136.19Airports Commission, or group thereof; and136.20    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 136.21leased premise, prohibits commercial activity performed at the hangar.136.22    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 136.23be filed by the new owner with the assessor of the county where the property is located 136.24within 60 days of the sale;136.25    (8) a privately owned noncommercial aircraft storage hangar not exempt under 136.26section 
         272.01, subdivision 2, and the land on which it is located, provided that:136.27    (i) the land abuts a public airport; and136.28    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 136.29agreement restricting the use of the premises, prohibiting commercial use or activity 136.30performed at the hangar; and136.31    (9) residential real estate, a portion of which is used by the owner for homestead 136.32purposes, and that is also a place of lodging, if all of the following criteria are met:136.33    (i) rooms are provided for rent to transient guests that generally stay for periods 136.34of 14 or fewer days;136.35    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 136.36in the basic room rate;137.1    (iii) meals are not provided to the general public except for special events on fewer 137.2than seven days in the calendar year preceding the year of the assessment; and137.3    (iv) the owner is the operator of the property.137.4The market value subject to the 4c classification under this clause is limited to five rental 137.5units. Any rental units on the property in excess of five, must be valued and assessed as 137.6class 3a. The portion of the property used for purposes of a homestead by the owner must 137.7be classified as class 1a property under subdivision 22;137.8    (10) real property up to a maximum of three acres and operated as a restaurant 137.9as defined under section 
         157.15, subdivision 12, provided it: (A) is located on a lake 137.10as defined under section 
         103G.005, subdivision 15, paragraph (a), clause (3); and (B) 137.11is either devoted to commercial purposes for not more than 250 consecutive days, or 137.12receives at least 60 percent of its annual gross receipts from business conducted during 137.13four consecutive months. Gross receipts from the sale of alcoholic beverages must be 137.14included in determining the property's qualification under subitem (B). The property's 137.15primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 137.16sales located on the premises must be excluded. Owners of real property desiring 4c 137.17classification under this clause must submit an annual declaration to the assessor by 137.18February 1 of the current assessment year, based on the property's relevant information for 137.19the preceding assessment year;137.20    (11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 137.21as a marina, as defined in section 
         86A.20, subdivision 5, which is made accessible to 137.22the public and devoted to recreational use for marina services. The marina owner must 137.23annually provide evidence to the assessor that it provides services, including lake or river 137.24access to the public by means of an access ramp or other facility that is either located on 137.25the property of the marina or at a publicly owned site that abuts the property of the marina. 137.26No more than 800 feet of lakeshore may be included in this classification. Buildings used 137.27in conjunction with a marina for marina services, including but not limited to buildings 137.28used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing 137.29tackle, are classified as class 3a property; and137.30    (12) real and personal property devoted to noncommercial temporary and seasonal 137.31residential occupancy for recreation purposes.137.32    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 137.33parcel of noncommercial seasonal residential recreational property under clause (12) 137.34has the same class rates as class 4bb property, (ii) manufactured home parks assessed 137.35under clause (5), item (i), have the same class rate as class 4b property, and the market 137.36value of manufactured home parks assessed under clause (5), item (ii), has the same class 138.1rate as class 4d property if more than 50 percent of the lots in the park are occupied by 138.2shareholders in the cooperative corporation or association and a class rate of one percent if 138.350 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential 138.4recreational property and marina recreational land as described in clause (11), has a 138.5class rate of one percent for the first $500,000 of market value, and 1.25 percent for the 138.6remaining market value, (iv) the market value of property described in clause (4) has a 138.7class rate of one percent, (v) the market value of property described in clauses (2), (6), and 138.8(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property 138.9in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.138.10    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 138.11by the Housing Finance Agency under section 
         273.128, subdivision 3. If only a portion 138.12of the units in the building qualify as low-income rental housing units as certified under 138.13section 
         273.128, subdivision 3, only the proportion of qualifying units to the total number 138.14of units in the building qualify for class 4d. The remaining portion of the building shall be 138.15classified by the assessor based upon its use. Class 4d also includes the same proportion of 138.16land as the qualifying low-income rental housing units are to the total units in the building. 138.17For all properties qualifying as class 4d, the market value determined by the assessor must 138.18be based on the normal approach to value using normal unrestricted rents.138.19    Class 4d property has a class rate of 0.75 percent.138.20EFFECTIVE DATE.This section is effective for taxes payable in 2014 and 138.21thereafter.138.22    Sec. 12. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:138.23    Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or 138.244, tax-exempt property held under a lease for a term of at least one year, and not taxable 138.25under section 
         272.01, subdivision 2, or under a contract for the purchase thereof, shall be 138.26considered, for all purposes of taxation, as the property of the person holding it. In this 138.27subdivision, "tax-exempt property" means property owned by the United States, the state138.28 or any of its political subdivisions, a school, or any religious, scientific, or benevolent 138.29society or institution, incorporated or unincorporated, or any corporation whose property 138.30is not taxed in the same manner as other property. This subdivision does not apply to 138.31property exempt from taxation under section 
         272.01, subdivision 2, paragraph (b), clauses 138.32(2), (3), and (4), or to property exempt from taxation under section 
         272.0213.138.33EFFECTIVE DATE.This section is effective the day following final enactment.139.1    Sec. 13. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:139.2    Subd. 4. Administrative appeals. (a) Companies that submit the reports under 139.3section 
         270.82 or 
         273.371 by the date specified in that section, or by the date specified by 139.4the commissioner in an extension, may appeal administratively to the commissioner prior 139.5to bringing an action in court by submitting.139.6    (b) Companies that must submit reports under section 270.82 must submit a written 139.7request with to the commissioner for a conference within ten days after the date of the 139.8commissioner's valuation certification or notice to the company, or by May June 15, 139.9whichever is earlier.139.10    (c) Companies that submit reports under section 273.371 must submit a written 139.11request to the commissioner for a conference within ten days after the date of the 139.12commissioner's valuation certification or notice to the company, or by July 1, whichever 139.13is earlier.139.14    (d) The commissioner shall conduct the conference upon the commissioner's entire 139.15files and records and such further information as may be offered. The conference must 139.16be held no later than 20 days after the date of the commissioner's valuation certification 139.17or notice to the company, or by the date specified by the commissioner in an extension. 139.18Within 60 days after the conference the commissioner shall make a final determination of 139.19the matter and shall notify the company promptly of the determination. The conference 139.20is not a contested case hearing.139.21    (b) (e) In addition to the opportunity for a conference under paragraph (a), the 139.22commissioner shall also provide the railroad and utility companies the opportunity to 139.23discuss any questions or concerns relating to the values established by the commissioner 139.24through certification or notice in a less formal manner. This does not change or modify 139.25the deadline for requesting a conference under paragraph (a), the deadline in section 139.26271.06
          for appealing an order of the commissioner, or the deadline in section 
         278.01 for 139.27appealing property taxes in court.139.28EFFECTIVE DATE.This section is effective beginning with assessment year 2014.139.29    Sec. 14. Minnesota Statutes 2012, section 273.39, is amended to read:139.30273.39 RURAL AREA.139.31    As used in sections 
         273.39 to 
         273.41, the term "rural area" shall be deemed to mean 139.32any area of the state not included within the boundaries of any incorporated statutory 139.33city or home rule charter city, and such term shall be deemed to include both farm and 139.34nonfarm population thereof.140.1EFFECTIVE DATE.This section is effective the day following final enactment.140.2    Sec. 15. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:140.3    Subdivision 1. List and notice. Within five days after the filing of such list, the 140.4court administrator shall return a copy thereof to the county auditor, with a notice prepared 140.5and signed by the court administrator, and attached thereto, which may be substantially in 140.6the following form:

140.7State of Minnesota)140.8) ss.140.9County of 
                     							.....
                     						)140.10District Court140.11
                     							.....
                     						Judicial District.

140.12    The state of Minnesota, to all persons, companies, or corporations who have or claim 140.13any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of 140.14land described in the list hereto attached:140.15    The list of taxes and penalties on real property for the county of ............................... 140.16remaining delinquent on the first Monday in January, ......., has been filed in the office of 140.17the court administrator of the district court of said county, of which that hereto attached is a 140.18copy. Therefore, you, and each of you, are hereby required to file in the office of said court 140.19administrator, on or before the 20th day after the publication of this notice and list, your 140.20answer, in writing, setting forth any objection or defense you may have to the taxes, or any 140.21part thereof, upon any parcel of land described in the list, in, to, or on which you have or 140.22claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will 140.23be entered against such parcel of land for the taxes on such list appearing against it, and 140.24for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to 140.25the state of Minnesota on the second Monday in May, ....... The period of redemption for 140.26all lands sold to the state at a tax judgment sale shall be three years from the date of sale to 140.27the state of Minnesota if the land is within an incorporated area unless it is:140.28    (a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22;140.29    (b) homesteaded agricultural land as defined in section 273.13, subdivision 23, 140.30paragraph (a);140.31    (c) seasonal residential recreational land as defined in section 273.13, subdivisions 140.3222, paragraph (c), and 25, paragraph (d), clause (1), in which event the period of 140.33redemption is five years from the date of sale to the state of Minnesota;140.34    (d) abandoned property and pursuant to section 281.173 a court order has been 140.35entered shortening the redemption period to five weeks; or141.1    (e) vacant property as described under section 281.174, subdivision 2, and for which 141.2a court order is entered shortening the redemption period under section 281.174.141.3    The period of redemption for all other lands sold to the state at a tax judgment sale 141.4shall be five years from the date of sale.141.5    Inquiries as to the proceedings set forth above can be made to the county auditor of 141.6..... county whose address is ......

141.7(Signed) 
                     							.....
                     						,141.8141.9Court Administrator of the District Court of the
                  		County of 
                     							.....
                     						141.10(Here insert list.)

141.11    The notice must contain a narrative description of the various periods to redeem 141.12specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the 141.13commissioner of revenue under subdivision 2.141.14    The list referred to in the notice shall be substantially in the following form:141.15    List of real property for the county of ......................., on which taxes remain 141.16delinquent on the first Monday in January, .......141.17Town of (Fairfield),141.18Township (40), Range (20),

141.19141.20141.21141.22141.23141.24141.25141.26Names (and Current 
                  		Filed Addresses) for 
                  		the Taxpayers and Fee 
                  		Owners and in Addition 
                  		Those Parties Who Have 
                  		Filed Their Addresses 
                  		Pursuant to section 276.041Subdivision of
                  		SectionSectionTax Parcel
                  		NumberTotal Tax 
                  		and Penalty141.27$ cts.141.28141.29John Jones (825 Fremont 
                  		Fairfield, MN 55000)S.E. 1/4 of S.W. 1/410231012.20142.1142.2142.3142.4142.5142.6142.7142.8142.9142.10142.11142.12142.13142.14142.15142.16142.17142.18142.19Bruce Smith (2059 Hand 
                  		Fairfield, MN 55000) 
                  		and Fairfield State 
                  		Bank (100 Main Street 
                  		Fairfield, MN 55000)That part of N.E. 1/4 
                  		of S.W. 1/4 desc. as 
                  		follows: Beg. at the 
                  		S.E. corner of said N.E. 
                  		1/4 of S.W. 1/4; thence 
                  		N. along the E. line of 
                  		said N.E. 1/4 of S.W. 
                  		1/4 a distance of 600 
                  		ft.; thence W. parallel 
                  		with the S. line of said 
                  		N.E. 1/4 of S.W. 1/4 
                  		a distance of 600 ft.; 
                  		thence S. parallel with 
                  		said E. line a distance of 
                  		600 ft. to S. line of said 
                  		N.E. 1/4 of S.W. 1/4; 
                  		thence E. along said S. 
                  		line a distance of 600 ft. 
                  		to the point of beg.21332113.15

142.20    As to platted property, the form of heading shall conform to circumstances and be 142.21substantially in the following form:142.22City of (Smithtown)142.23Brown's Addition, or Subdivision

142.24142.25142.26142.27142.28142.29142.30142.31Names (and Current 
                  		Filed Addresses) for 
                  		the Taxpayers and Fee 
                  		Owners and in Addition 
                  		Those Parties Who Have 
                  		Filed Their Addresses 
                  		Pursuant to section 276.041LotBlockTax Parcel
                  		NumberTotal Tax
                  		and Penalty142.32$ cts.142.33142.34John Jones (825 Fremont 
                  		Fairfield, MN 55000)159582432.20142.35142.36142.37142.38142.39Bruce Smith (2059 Hand 
                  		Fairfield, MN 55000) 
                  		and Fairfield State 
                  		Bank (100 Main Street 
                  		Fairfield, MN 55000)169582443.15

142.40    The names, descriptions, and figures employed in parentheses in the above forms are 142.41merely for purposes of illustration.142.42    The name of the town, township, range or city, and addition or subdivision, as the 142.43case may be, shall be repeated at the head of each column of the printed lists as brought 142.44forward from the preceding column.142.45    Errors in the list shall not be deemed to be a material defect to affect the validity 142.46of the judgment and sale.143.1EFFECTIVE DATE.This section is effective for lists and notices required after 143.2December 31, 2013.143.3    Sec. 16. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:143.4    Subd. 2. Approval; recording. The commissioner shall approve all initial 143.5applications that qualify under this chapter and shall notify qualifying homeowners on or 143.6before December 1. The commissioner may investigate the facts or require confirmation 143.7in regard to an application. The commissioner shall record or file a notice of qualification 143.8for deferral, including the names of the qualifying homeowners and a legal description 143.9of the property, in the office of the county recorder, or registrar of titles, whichever is 143.10applicable, in the county where the qualifying property is located. The notice must state 143.11that it serves as a notice of lien and that it includes deferrals under this section for future 143.12years. The commissioner shall prescribe the form of the notice. Execution of the notice 143.13by the original or facsimile signature of the commissioner or a delegate entitles them to 143.14be recorded, and no other attestation, certification, or acknowledgment is necessary. The 143.15homeowner shall pay the recording or filing fees for the notice, which, notwithstanding 143.16section 
         357.18, shall be paid by the homeowner at the time of satisfaction of the lien.143.17EFFECTIVE DATE.This section is effective for notices that are both executed 143.18and recorded after June 30, 2013.143.19    Sec. 17. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:143.20    Subd. 3. Occupation tax; other ores.  Every person engaged in the business of 143.21mining, refining, or producing ores, metals, or minerals in this state, except iron ore or 143.22taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided 143.23in this subdivision. For purposes of this subdivision, mining includes the application of 143.24hydrometallurgical processes. Hydrometallurgical processes are processes that extract 143.25the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and 143.26recover the ore, metal, or mineral. The tax is determined in the same manner as the tax 143.27imposed by section 
         290.02, except that sections 
         290.05, subdivision 1, clause (a), 
         290.17, 143.28subdivision 4
         , and 
         290.191, subdivision 2, do not apply, and the occupation tax must 143.29be computed by applying to taxable income the rate of 2.45 percent. A person subject 143.30to occupation tax under this section shall apportion its net income on the basis of the 143.31percentage obtained by taking the sum of:143.32    (1) 75 percent of the percentage which the sales made within this state in connection 143.33with the trade or business during the tax period are of the total sales wherever made in 143.34connection with the trade or business during the tax period;144.1    (2) 12.5 percent of the percentage which the total tangible property used by the 144.2taxpayer in this state in connection with the trade or business during the tax period is of 144.3the total tangible property, wherever located, used by the taxpayer in connection with the 144.4trade or business during the tax period; and144.5    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 144.6in this state or paid in respect to labor performed in this state in connection with the trade 144.7or business during the tax period are of the taxpayer's total payrolls paid or incurred in 144.8connection with the trade or business during the tax period.144.9    The tax is in addition to all other taxes.144.10EFFECTIVE DATE.This section is effective the day following final enactment.144.11    Sec. 18. Minnesota Statutes 2012, section 298.018, is amended to read:144.12298.018 DISTRIBUTION OF PROCEEDS.144.13    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid 144.14under sections 
         298.015 and 
         298.016 on ores, metals, or minerals and energy resources144.15 mined or extracted within the taconite assistance area defined in section 
         273.1341, shall 144.16be allocated as follows:144.17    (1) five percent to the city or town within which the minerals or energy resources 144.18are mined or extracted;144.19    (2) ten percent to the taconite municipal aid account to be distributed as provided 144.20in section 
         298.282;144.21    (3) ten percent to the school district within which the minerals or energy resources 144.22are mined or extracted;144.23    (4) 20 percent to a group of school districts comprised of those school districts 144.24wherein the mineral or energy resource was mined or extracted or in which there is a 144.25qualifying municipality as defined by section 
         273.134, paragraph (b), in direct proportion 144.26to school district indexes as follows: for each school district, its pupil units determined 144.27under section 
         126C.05 for the prior school year shall be multiplied by the ratio of the 144.28average adjusted net tax capacity per pupil unit for school districts receiving aid under 144.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 144.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 144.31Each district shall receive that portion of the distribution which its index bears to the sum 144.32of the indices for all school districts that receive the distributions;144.33    (5) 20 percent to the county within which the minerals or energy resources are 144.34mined or extracted;145.1    (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be 145.2distributed as provided in sections 
         273.134 to 
         273.136;145.3    (7) five percent to the Iron Range Resources and Rehabilitation Board for the 145.4purposes of section 
         298.22;145.5    (8) five percent to the Douglas J. Johnson economic protection trust fund; and145.6    (9) five percent to the taconite environmental protection fund.145.7    The proceeds of the tax shall be distributed on July 15 each year.145.8    Subd. 2. Outside taconite assistance area. The proceeds of the tax paid under 145.9sections 
         298.015 and 
         298.016 on ores, metals, or minerals and energy resources mined 145.10or extracted outside of the taconite assistance area defined in section 
         273.1341, shall 145.11be deposited in the general fund.145.12EFFECTIVE DATE.This section is effective the day following final enactment.145.13    Sec. 19. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:145.14    Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic 145.15and corporate and may:145.16    (1) Sue and be sued.145.17    (2) Acquire and hold real and personal property for the use of the county, and lands 145.18sold for taxes as provided by law.145.19    (3) Purchase and hold for the benefit of the county real estate sold by virtue of 145.20judicial proceedings, to which the county is a party.145.21    (4) Sell, lease, and convey real or personal estate owned by the county, and give 145.22contracts or options to sell, lease, or convey it, and make orders respecting it as deemed 145.23conducive to the interests of the county's inhabitants.145.24    (5) Make all contracts and do all other acts in relation to the property and concerns 145.25of the county necessary to the exercise of its corporate powers.145.26    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease 145.27of a residence acquired for the furtherance of an approved capital improvement project, nor 145.28any contract or option for it, shall be valid, without first advertising for bids or proposals in 145.29the official newspaper of the county for three consecutive weeks and once in a newspaper 145.30of general circulation in the area where the property is located. The notice shall state the 145.31time and place of considering the proposals, contain a legal description of any real estate, 145.32and a brief description of any personal property. Leases that do not exceed $15,000 for any 145.33one year may be negotiated and are not subject to the competitive bid procedures of this 145.34section. All proposals estimated to exceed $15,000 in any one year shall be considered at 146.1the time set for the bid opening, and the one most favorable to the county accepted, but the 146.2county board may, in the interest of the county, reject any or all proposals.146.3    (c) Sales of personal property the value of which is estimated to be $15,000 or 146.4more shall be made only after advertising for bids or proposals in the county's official 146.5newspaper, on the county's Web site, or in a recognized industry trade journal. At the same 146.6time it posts on its Web site or publishes in a trade journal, the county must publish in the 146.7official newspaper, either as part of the minutes of a regular meeting of the county board 146.8or in a separate notice, a summary of all requests for bids or proposals that the county 146.9advertises on its Web site or in a trade journal. After publication in the official newspaper, 146.10on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by 146.11the electronic selling process authorized in section 
         471.345, subdivision 17. Sales of 146.12personal property the value of which is estimated to be less than $15,000 may be made 146.13either on competitive bids or in the open market, in the discretion of the county board. 146.14"Web site" means a specific, addressable location provided on a server connected to the 146.15Internet and hosting World Wide Web pages and other files that are generally accessible 146.16on the Internet all or most of a day.146.17    (d) Notwithstanding anything to the contrary herein, the county may, when acquiring 146.18real property for county highway right-of-way, exchange parcels of real property of 146.19substantially similar or equal value without advertising for bids. The estimated values for 146.20these parcels shall be determined by the county assessor.146.21    (e) Notwithstanding anything in this section to the contrary, the county may, when 146.22acquiring real property for purposes other than county highway right-of-way, exchange 146.23parcels of real property of substantially similar or equal value without advertising for 146.24bids. The estimated values for these parcels must be determined by the county assessor 146.25or a private appraisal performed by a licensed Minnesota real estate appraiser. For the 146.26purpose of determining for the county the estimated values of parcels proposed to be 146.27exchanged, the county assessor need not be licensed under chapter 82B. Before giving 146.28final approval to any exchange of land, the county board shall hold a public hearing on 146.29the exchange. At least two weeks before the hearing, the county auditor shall post a 146.30notice in the auditor's office and the official newspaper of the county of the hearing that 146.31contains a description of the lands affected.146.32    (f) If real estate or personal property remains unsold after advertising for and 146.33consideration of bids or proposals the county may employ a broker to sell the property. 146.34The broker may sell the property for not less than 90 percent of its appraised market value 146.35as determined by the county. The broker's fee shall be set by agreement with the county but 146.36may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.147.1    (g) A county or its agent may rent a county-owned residence acquired for the 147.2furtherance of an approved capital improvement project subject to the conditions set 147.3by the county board and not subject to the conditions for lease otherwise provided by 147.4paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).147.5    (h) In no case shall lands be disposed of without there being reserved to the county 147.6all iron ore and other valuable minerals in and upon the lands, with right to explore for, 147.7mine and remove the iron ore and other valuable minerals, nor shall the minerals and 147.8mineral rights be disposed of, either before or after disposition of the surface rights, 147.9otherwise than by mining lease, in similar general form to that provided by section 
         93.20 147.10for mining leases affecting state lands. The lease shall be for a term not exceeding 50 147.11years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 147.122,240 pounds, and fix a minimum amount of royalty payable during each year, whether 147.13mineral is removed or not. Prospecting options for mining leases may be granted for 147.14periods not exceeding one year. The options shall require, among other things, periodical 147.15showings to the county board of the results of exploration work done.147.16    (i) Notwithstanding anything in this subdivision to the contrary, the county may, 147.17when selling real property owned in fee simple that cannot be improved because of 147.18noncompliance with local ordinances regarding minimum area, shape, frontage, or access, 147.19proceed to sell the nonconforming parcel without advertising for bid. At the county's 147.20discretion, the real property may be restricted to sale to adjoining landowners or may be 147.21sold to any other interested party. The property shall be sold to the highest bidder, but in no 147.22case shall the property be sold for less than 90 percent of its fair market value as determined 147.23by the county assessor. All owners of land adjoining the land to be sold shall be given a 147.24written notice at least 30 days before the sale. This paragraph shall be liberally construed to 147.25encourage the sale of nonconforming real property and promote its return to the tax roles.147.26EFFECTIVE DATE.This section is effective the day following final enactment.147.27    Sec. 20.  REPEALER.147.28Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, are 147.29repealed.147.30EFFECTIVE DATE.This section is effective the day following final enactment.