1.1 	A bill for an act
1.2 	relating to taxation; local government; modifying the definition of market value 
1.3 	for tax, debt, and other purposes; appropriating money;amending Minnesota 
1.4 	Statutes 2012, sections 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 
1.5 	69.021, subdivisions 7, 8; 88.51, subdivision 3; 103B.245, subdivision 3; 
1.6 	103B.251, subdivision 8; 103B.635, subdivision 2; 103B.691, subdivision 2; 
1.7 	103D.905, subdivisions 2, 3, 8; 117.025, subdivision 7; 127A.48, subdivision 1; 
1.8 	138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 
1.9 	3; 163.06, subdivision 6; 165.10, subdivision 1; 272.03, by adding subdivisions; 
1.10 	273.032; 273.11, subdivision 1; 273.124, subdivisions 3a, 13; 273.13, subdivision 
1.11 	21b; 273.1398, subdivisions 3, 4; 275.011, subdivision 1; 275.077, subdivision 
1.12 	2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 
1.13 	12, 13, 15; 276A.06, subdivision 10; 287.08; 287.23, subdivision 1; 353G.08, 
1.14 	subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, 
1.15 	subdivision 23; 368.47; 370.01; 373.40, subdivisions 1, 4; 375.167, subdivision 
1.16 	1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 
1.17 	1; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 
1.18 	8; 401.05, subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, 
1.19 	subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 
1.20 	458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 
1.21 	2; 469.053, subdivisions 4, 4a, 6; 469.107, subdivision 1; 469.180, subdivision 
1.22 	2; 469.187; 469.206; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, 
1.23 	subdivision 2; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; 
1.24 	473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, 
1.25 	subdivision 10; 475.521, subdivision 4; 475.53, subdivisions 1, 3, 4; 475.58, 
1.26 	subdivision 2; 475.73, subdivision 1; 477A.011, subdivisions 20, 32; 477A.0124, 
1.27 	subdivision 2; 641.23; 641.24; 645.44, by adding a subdivision; repealing 
1.28 	Minnesota Statutes 2012, sections 273.11, subdivision 1a; 276A.01, subdivision 
1.29 	11; 473F.02, subdivision 13; 477A.011, subdivision 21.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:
1.32 	38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
1.33 	Any Each town, statutory city, or school district in this state, now or hereafter at any 
1.34 	time having a an estimated market value of all its taxable property, exclusive of money and 
2.1 	credits, of more than $105,000,000, and having a county fair located within its corporate 
2.2 	limits, is hereby authorized to aid in defraying may pay part of the expense of improving 
2.3 	any such the fairground, by appropriating and paying over to the treasurer of the county 
2.4 	owning the fairground such sum of money, not exceeding $10,000, for each of the political 
2.5 	subdivisions, as the its governing body of the town, statutory city, or school district may, 
2.6 	by resolution, determine determines to be for the best interest of the political subdivision,.
2.7 	 The sums so appropriated to amounts paid to the county must be used solely for the purpose 
2.8 	of aiding in the improvement of to improve the fairground in such the manner as the county 
2.9 	board of the county shall determine determines to be for the best interest of the county.

2.10 	Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
2.11 		Subd. 2.Eligible recipients. All counties within the state, municipalities that prepare 
2.12 	plans and official controls instead of a county, and districts are eligible for assistance 
2.13 	under the program. Counties and districts may apply for assistance on behalf of other 
2.14 	municipalities. In order to be eligible for financial assistance a county or municipality must 
2.15 	agree to levy at least 0.01209 percent of taxable estimated market value for agricultural 
2.16 	land preservation and conservation activities or otherwise spend the equivalent amount of 
2.17 	local money on those activities, or spend $15,000 of local money, whichever is less.

2.18 	Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
2.19 		Subdivision 1.Definitions. Unless the language or context clearly indicates that 
2.20 	a different meaning is intended, the following words and terms, for the purposes of this 
2.21 	chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
2.22 	(a) "Commissioner" means the commissioner of revenue.
2.23 	(b) "Municipality" means:
2.24 	(1) a home rule charter or statutory city;
2.25 	(2) an organized town;
2.26 	(3) a park district subject to chapter 398;
2.27 	(4) the University of Minnesota;
2.28 	(5) for purposes of the fire state aid program only, an American Indian tribal 
2.29 	government entity located within a federally recognized American Indian reservation;
2.30 	(6) for purposes of the police state aid program only, an American Indian tribal 
2.31 	government with a tribal police department which exercises state arrest powers under 
2.32 	section 626.90, 626.91, 626.92, or 626.93;
2.33 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
2.34 	Commission; and
3.1 	(8) for purposes of the police state aid program only, the Department of Natural 
3.2 	Resources and the Department of Public Safety with respect to peace officers covered 
3.3 	under chapter 352B.
3.4 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
3.5 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
3.6 	leakage and extended coverage premiums received upon risks located or to be performed 
3.7 	in this state less return premiums and dividends.
3.8 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
3.9 	department or a qualified incorporated fire department having a subsidiary volunteer 
3.10 	firefighters' relief association.
3.11 	(e) "Estimated market value" means latest available estimated market value of all 
3.12 	property in a taxing jurisdiction, whether the property is subject to taxation, or exempt 
3.13 	from ad valorem taxation obtained from information which appears on abstracts filed with 
3.14 	the commissioner of revenue or equalized by the State Board of Equalization.
3.15 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
3.16 	commissioner for reporting by each fire and casualty insurer of all premiums received 
3.17 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
3.18 	during the preceding calendar year, with reference to insurance written for insuring against 
3.19 	the perils contained in auto insurance coverages as reported in the Minnesota business 
3.20 	schedule of the annual financial statement which each insurer is required to file with 
3.21 	the commissioner in accordance with the governing laws or rules less return premiums 
3.22 	and dividends.
3.23 	(g) "Peace officer" means any person:
3.24 	(1) whose primary source of income derived from wages is from direct employment 
3.25 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
3.26 	than 30 hours per week;
3.27 	(2) who has been employed for a minimum of six months prior to December 31 
3.28 	preceding the date of the current year's certification under subdivision 2, clause (b);
3.29 	(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
3.30 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
3.31 	authorized to arrest with a warrant; and
3.32 	(5) who is a member of the State Patrol retirement plan or the public employees 
3.33 	police and fire fund.
3.34 	(h) "Full-time equivalent number of peace officers providing contract service" means 
3.35 	the integral or fractional number of peace officers which would be necessary to provide 
4.1 	the contract service if all peace officers providing service were employed on a full-time 
4.2 	basis as defined by the employing unit and the municipality receiving the contract service.
4.3 	(i) "Retirement benefits other than a service pension" means any disbursement 
4.4 	authorized under section 424A.05, subdivision 3, clauses (3) and (4).
4.5 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
4.6 	(1) for the police state aid program and police relief association financial reports:
4.7 	(i) the person who was elected or appointed to the specified position or, in the 
4.8 	absence of the person, another person who is designated by the applicable governing body;
4.9 	(ii) in a park district, the secretary of the board of park district commissioners;
4.10 	(iii) in the case of the University of Minnesota, the official designated by the Board 
4.11 	of Regents;
4.12 	(iv) for the Metropolitan Airports Commission, the person designated by the 
4.13 	commission;
4.14 	(v) for the Department of Natural Resources or the Department of Public Safety, the 
4.15 	respective commissioner;
4.16 	(vi) for a tribal police department which exercises state arrest powers under section 
4.17 	626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American 
4.18 	Indian tribal government; and
4.19 	(2) for the fire state aid program and fire relief association financial reports, the 
4.20 	person who was elected or appointed to the specified position, or, for governmental 
4.21 	entities other than counties, if the governing body of the governmental entity designates 
4.22 	the position to perform the function, the chief financial official of the governmental entity 
4.23 	or the chief administrative official of the governmental entity.
4.24 	(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 
4.25 	retirement plan established by chapter 353G.

4.26 	Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
4.27 		Subd. 7.Apportionment of fire state aid to municipalities and relief associations.
 4.28 	(a) The commissioner shall apportion the fire state aid relative to the premiums reported 
4.29 	on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 
4.30 	and/or firefighters relief association.
4.31 	(b) The commissioner shall calculate an initial fire state aid allocation amount for 
4.32 	each municipality or fire department under paragraph (c) and a minimum fire state aid 
4.33 	allocation amount for each municipality or fire department under paragraph (d). The 
4.34 	municipality or fire department must receive the larger fire state aid amount.
5.1 	(c) The initial fire state aid allocation amount is the amount available for 
5.2 	apportionment as fire state aid under subdivision 5, without inclusion of any additional 
5.3 	funding amount to support a minimum fire state aid amount under section 423A.02, 
5.4 	subdivision 3, allocated one-half in proportion to the population as shown in the last official 
5.5 	statewide federal census for each fire town and one-half in proportion to the estimated 
5.6 	market value of each fire town, including (1) the estimated market value of tax-exempt 
5.7 	property and (2) the estimated market value of natural resources lands receiving in lieu 
5.8 	payments under sections 477A.11 to 477A.14, but excluding the estimated market value 
5.9 	of minerals. In the case of incorporated or municipal fire departments furnishing fire 
5.10 	protection to other cities, towns, or townships as evidenced by valid fire service contracts 
5.11 	filed with the commissioner, the distribution must be adjusted proportionately to take 
5.12 	into consideration the crossover fire protection service. Necessary adjustments must be 
5.13 	made to subsequent apportionments. In the case of municipalities or independent fire 
5.14 	departments qualifying for the aid, the commissioner shall calculate the state aid for the 
5.15 	municipality or relief association on the basis of the population and the estimated market 
5.16 	value of the area furnished fire protection service by the fire department as evidenced by 
5.17 	duly executed and valid fire service agreements filed with the commissioner. If one or 
5.18 	more fire departments are furnishing contracted fire service to a city, town, or township, 
5.19 	only the population and estimated market value of the area served by each fire department 
5.20 	may be considered in calculating the state aid and the fire departments furnishing service 
5.21 	shall enter into an agreement apportioning among themselves the percent of the population 
5.22 	and the estimated market value of each service area. The agreement must be in writing 
5.23 	and must be filed with the commissioner.
5.24 	(d) The minimum fire state aid allocation amount is the amount in addition to the 
5.25 	initial fire state allocation amount that is derived from any additional funding amount 
5.26 	to support a minimum fire state aid amount under section 423A.02, subdivision 3, and 
5.27 	allocated to municipalities with volunteer firefighters relief associations or covered by the 
5.28 	voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 
5.29 	of active volunteer firefighters who are members of the relief association as reported 
5.30 	in the annual financial reporting for the calendar year 1993 to the Office of the State 
5.31 	Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 
5.32 	fire departments with volunteer firefighters relief associations receive in total at least a 
5.33 	minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 
5.34 	30 firefighters. If a relief association is established after calendar year 1993 and before 
5.35 	calendar year 2000, the number of active volunteer firefighters who are members of the 
5.36 	relief association as reported in the annual financial reporting for calendar year 1998 
6.1 	to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 
6.2 	shall be used in this determination. If a relief association is established after calendar 
6.3 	year 1999, the number of active volunteer firefighters who are members of the relief 
6.4 	association as reported in the first annual financial reporting submitted to the Office of 
6.5 	the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 
6.6 	determination. If a relief association is terminated as a result of providing retirement 
6.7 	coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 
6.8 	firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 
6.9 	of the municipality covered by the statewide plan as certified by the executive director of 
6.10 	the Public Employees Retirement Association to the commissioner and the state auditor, 
6.11 	but not to exceed 30 active firefighters, must be used in this determination.
6.12 	(e) Unless the firefighters of the applicable fire department are members of the 
6.13 	voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 
6.14 	be paid to the treasurer of the municipality where the fire department is located and the 
6.15 	treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 
6.16 	the aid to the relief association if the relief association has filed a financial report with the 
6.17 	treasurer of the municipality and has met all other statutory provisions pertaining to the 
6.18 	aid apportionment. If the firefighters of the applicable fire department are members of 
6.19 	the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 
6.20 	must be paid to the executive director of the Public Employees Retirement Association 
6.21 	and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
6.22 	(f) The commissioner may make rules to permit the administration of the provisions 
6.23 	of this section.
6.24 	(g) Any adjustments needed to correct prior misallocations must be made to 
6.25 	subsequent apportionments.

6.26 	Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
6.27 		Subd. 8.Population and estimated market value. (a) In computations relating to 
6.28 	fire state aid requiring the use of population figures, only official statewide federal census 
6.29 	figures are to be used. Increases or decreases in population disclosed by reason of any 
6.30 	special census must not be taken into consideration.
6.31 	(b) In calculations relating to fire state aid requiring the use of estimated market 
6.32 	value property figures, only the latest available estimated market value property figures 
6.33 	may be used.

6.34 	Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
7.1 		Subd. 3.Determination of estimated market value. In determining the net tax 
7.2 	capacity of property within any taxing district the value of the surface of lands within any 
7.3 	auxiliary forest therein, as determined by the county board under the provisions of section 
7.4 	88.48, subdivision 3, shall, for all purposes except the levying of taxes on lands within any 
7.5 	such forest, be deemed the estimated market value thereof.

7.6 	Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
7.7 		Subd. 3.Tax. After adoption of the ordinance under subdivision 2, a local 
7.8 	government unit may annually levy a tax on all taxable property in the district for the 
7.9 	purposes for which the tax district is established. The tax may not exceed 0.02418 percent 
7.10 	of estimated market value on taxable property located in rural towns other than urban 
7.11 	towns, unless allowed by resolution of the town electors. The proceeds of the tax shall 
7.12 	be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve 
7.13 	fund at the time the tax is terminated or the district is dissolved shall be transferred and 
7.14 	irrevocably pledged to the debt service fund of the local unit to be used solely to reduce 
7.15 	tax levies for bonded indebtedness of taxable property in the district.

7.16 	Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
7.17 		Subd. 8.Tax. (a) For the payment of principal and interest on the bonds issued 
7.18 	under subdivision 7 and the payment required under subdivision 6, the county shall 
7.19 	irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property 
7.20 	located within the territory of the watershed management organization or subwatershed 
7.21 	unit for which the bonds are issued. Each year until the reserve for payment of the bonds 
7.22 	is sufficient to retire the bonds, the county shall levy on all taxable property in the territory 
7.23 	of the organization or unit, without respect to any statutory or other limitation on taxes, an 
7.24 	amount of taxes sufficient to pay principal and interest on the bonds and to restore any 
7.25 	deficiencies in reserves required to be maintained for payment of the bonds.
7.26 	(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 
7.27 	percent of taxableestimated market value, unless approved by resolution of the town 
7.28 	electors.
7.29 	(c) If at any time the amounts available from the levy on property in the territory of 
7.30 	the organization are insufficient to pay principal and interest on the bonds when due, the 
7.31 	county shall make payment from any available funds in the county treasury.
7.32 	(d) The amount of any taxes which are required to be levied outside of the territory 
7.33 	of the watershed management organization or unit or taken from the general funds of the 
8.1 	county to pay principal or interest on the bonds shall be reimbursed to the county from 
8.2 	taxes levied within the territory of the watershed management organization or unit.

8.3 	Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
8.4 		Subd. 2.Municipal funding of district. (a) The governing body or board of 
8.5 	supervisors of each municipality in the district must provide the funds necessary to meet 
8.6 	its proportion of the total cost determined by the board, provided the total funding from 
8.7 	all municipalities in the district for the costs shall not exceed an amount equal to .00242 
8.8 	percent of the total taxable estimated market value within the district, unless three-fourths 
8.9 	of the municipalities in the district pass a resolution concurring to the additional costs.
8.10 	(b) The funds must be deposited in the treasury of the district in amounts and at 
8.11 	times as the treasurer of the district requires.

8.12 	Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
8.13 		Subd. 2.Municipal funding of district. (a) The governing body or board of 
8.14 	supervisors of each municipality in the district shall provide the funds necessary to meet its 
8.15 	proportion of the total cost to be borne by the municipalities as finally certified by the board.
8.16 	(b) The municipality's funds may be raised by any means within the authority of 
8.17 	the municipality. The municipalities may each levy a tax not to exceed .02418 percent of 
8.18 	taxable estimated market value on the taxable property located in the district to provide 
8.19 	the funds. The levy shall be within all other limitations provided by law.
8.20 	(c) The funds must be deposited into the treasury of the district in amounts and at 
8.21 	times as the treasurer of the district requires.

8.22 	Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
8.23 		Subd. 2.Organizational expense fund. (a) An organizational expense fund, 
8.24 	consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated
8.25 	 market value, or $60,000, whichever is less. The money in the fund shall be used for 
8.26 	organizational expenses and preparation of the watershed management plan for projects.
8.27 	(b) The managers may borrow from the affected counties up to 75 percent of the 
8.28 	anticipated funds to be collected from the organizational expense fund levy and the 
8.29 	counties affected may make the advancements.
8.30 	(c) The advancement of anticipated funds shall be apportioned among affected 
8.31 	counties in the same ratio as the net tax capacity of the area of the counties within 
8.32 	the watershed district bears to the net tax capacity of the entire watershed district. If a 
9.1 	watershed district is enlarged, an organizational expense fund may be levied against the 
9.2 	area added to the watershed district in the same manner as provided in this subdivision.
9.3 	(d) Unexpended funds collected for the organizational expense may be transferred to 
9.4 	the administrative fund and used for the purposes of the administrative fund.

9.5 	Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
9.6 		Subd. 3.General fund. A general fund, consisting of an ad valorem tax levy, may 
9.7 	not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is 
9.8 	less. The money in the fund shall be used for general administrative expenses and for 
9.9 	the construction or implementation and maintenance of projects of common benefit to 
9.10 	the watershed district. The managers may make an annual levy for the general fund as 
9.11 	provided in section 103D.911. In addition to the annual general levy, the managers may 
9.12 	annually levy a tax not to exceed 0.00798 percent of taxable estimated market value 
9.13 	for a period not to exceed 15 consecutive years to pay the cost attributable to the basic 
9.14 	water management features of projects initiated by petition of a political subdivision 
9.15 	within the watershed district or by petition of at least 50 resident owners whose property 
9.16 	is within the watershed district.

9.17 	Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
9.18 		Subd. 8.Survey and data acquisition fund. (a) A survey and data acquisition fund 
9.19 	is established and used only if other funds are not available to the watershed district to pay 
9.20 	for making necessary surveys and acquiring data.
9.21 	(b) The survey and data acquisition fund consists of the proceeds of a property tax 
9.22 	that can be levied only once every five years. The levy may not exceed 0.02418 percent of 
9.23 	taxable estimated market value.
9.24 	(c) The balance of the survey and data acquisition fund may not exceed $50,000.
9.25 	(d) In a subsequent proceeding for a project where a survey has been made, the 
9.26 	attributable cost of the survey as determined by the managers shall be included as a part of 
9.27 	the cost of the work and the sum shall be repaid to the survey and data acquisition fund.

9.28 	Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
9.29 		Subd. 7.Structurally substandard. "Structurally substandard" means a building:
9.30 	(1) that was inspected by the appropriate local government and cited for one or more 
9.31 	enforceable housing, maintenance, or building code violations;
9.32 	(2) in which the cited building code violations involve one or more of the following:
9.33 	(i) a roof and roof framing element;
10.1 	(ii) support walls, beams, and headers;
10.2 	(iii) foundation, footings, and subgrade conditions;
10.3 	(iv) light and ventilation;
10.4 	(v) fire protection, including egress;
10.5 	(vi) internal utilities, including electricity, gas, and water;
10.6 	(vii) flooring and flooring elements; or
10.7 	(viii) walls, insulation, and exterior envelope;
10.8 	(3) in which the cited housing, maintenance, or building code violations have not 
10.9 	been remedied after two notices to cure the noncompliance; and
10.10 	(4) has uncured housing, maintenance, and building code violations, satisfaction of 
10.11 	which would cost more than 50 percent of the assessor's taxable estimated market value 
10.12 	for the building, excluding land value, as determined under section 273.11 for property 
10.13 	taxes payable in the year in which the condemnation is commenced.
10.14 	A local government is authorized to seek from a judge or magistrate an administrative 
10.15 	warrant to gain access to inspect a specific building in a proposed development or 
10.16 	redevelopment area upon showing of probable cause that a specific code violation has 
10.17 	occurred and that the violation has not been cured, and that the owner has denied the local 
10.18 	government access to the property. Items of evidence that may support a conclusion of 
10.19 	probable cause may include recent fire or police inspections, housing inspection, exterior 
10.20 	evidence of deterioration, or other similar reliable evidence of deterioration in the specific 
10.21 	building.

10.22 	Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
10.23 		Subdivision 1.Computation. The Department of Revenue must annually conduct 
10.24 	an assessment/sales ratio study of the taxable property in each county, city, town, and 
10.25 	school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 
10.26 	results of this assessment/sales ratio study, the Department of Revenue must determine an 
10.27 	aggregate equalized net tax capacity for the various classes of taxable property in each 
10.28 	taxing district, the aggregate of which tax capacity shall be is designated as the adjusted net 
10.29 	tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of 
10.30 	tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution 
10.31 	tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission 
10.32 	lines required to be subtracted from the local tax base under section 273.425; and increased 
10.33 	by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The 
10.34 	adjusted net tax capacities shall be determined using the net tax capacity percentages in 
10.35 	effect for the assessment year following the assessment year of the study. The Department 
11.1 	of Revenue must make whatever estimates are necessary to account for changes in the 
11.2 	classification system. The Department of Revenue may incur the expense necessary to 
11.3 	make the determinations. The commissioner of revenue may reimburse any county or 
11.4 	governmental official for requested services performed in ascertaining the adjusted net tax 
11.5 	capacity. On or before March 15 annually, the Department of Revenue shall file with the 
11.6 	chair of the Tax Committee of the house of representatives and the chair of the Committee 
11.7 	on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school 
11.8 	districts. On or before June 15 annually, the Department of Revenue shall file its final report 
11.9 	on the adjusted net tax capacities for school districts established by the previous year's 
11.10 	assessments and the current year's net tax capacity percentages with the commissioner of 
11.11 	education and each county auditor for those school districts for which the auditor has the 
11.12 	responsibility for determination of local tax rates. A copy of the report so filed shall be 
11.13 	mailed to the clerk of each school district involved and to the county assessor or supervisor 
11.14 	of assessments of the county or counties in which each school district is located.

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

11.16 	Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:
11.17 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 
11.18 	TOWNS.
11.19 	The governing body of any home rule charter or statutory city or town may annually 
11.20 	appropriate from its general fund an amount not to exceed 0.02418 percent of taxable
11.21 	 estimated market value, derived from ad valorem taxes on property or other revenues, to 
11.22 	be paid to the historical society of its respective county to be used for the promotion of 
11.23 	historical work and to aid in defraying the expenses of carrying on the historical work in the 
11.24 	county. No city or town may appropriate any funds for the benefit of any historical society 
11.25 	unless the society is affiliated with and approved by the Minnesota Historical Society.

11.26 	Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
11.27 		Subd. 4.Property tax levy authority. The district's board may levy a tax on the 
11.28 	taxable real and personal property in the district. The ad valorem tax levy may not exceed 
11.29 	0.048 percent of the taxable estimated market value of the district or $400,000, whichever 
11.30 	is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall 
11.31 	certify the levy at the times as provided under section 275.07. The board shall provide the 
11.32 	county with whatever information is necessary to identify the property that is located within 
11.33 	the district. If the boundaries include a part of a parcel, the entire parcel shall be included 
12.1 	in the district. The county auditors must spread, collect, and distribute the proceeds of the 
12.2 	tax at the same time and in the same manner as provided by law for all other property taxes.

12.3 	Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
12.4 		Subd. 3.Computation for rural counties. An amount equal to a levy of 0.01596 
12.5 	percent on each rural county's total taxable estimated market value for the last preceding 
12.6 	calendar year shall be computed and shall be subtracted from the county's total estimated 
12.7 	construction costs. The result thereof shall be the money needs of the county. For the 
12.8 	purpose of this section, "rural counties" means all counties having a population of less 
12.9 	than 175,000.

12.10 	Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
12.11 		Subd. 4.Computation for urban counties. An amount equal to a levy of 0.00967 
12.12 	percent on each urban county's total taxable estimated market value for the last preceding 
12.13 	calendar year shall be computed and shall be subtracted from the county's total estimated 
12.14 	construction costs. The result thereof shall be the money needs of the county. For 
12.15 	the purpose of this section, "urban counties" means all counties having a population 
12.16 	of 175,000 or more.

12.17 	Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
12.18 		Subd. 3.Bridges within certain cities. When the council of any statutory city or 
12.19 	city of the third or fourth class may determine that it is necessary to build or improve any 
12.20 	bridge or bridges, including approaches thereto, and any dam or retaining works connected 
12.21 	therewith, upon or forming a part of streets or highways either wholly or partly within 
12.22 	its limits, the county board shall appropriate one-half of the money as may be necessary 
12.23 	therefor from the county road and bridge fund, not exceeding during any year one-half 
12.24 	the amount of taxes paid into the county road and bridge fund during the preceding year, 
12.25 	on property within the corporate limits of the city. The appropriation shall be made upon 
12.26 	the petition of the council, which petition shall be filed by the council with the county 
12.27 	board prior to the fixing by the board of the annual county tax levy. The county board 
12.28 	shall determine the plans and specifications, shall let all necessary contracts, shall have 
12.29 	charge of construction, and upon its request, warrants in payment thereof shall be issued 
12.30 	by the county auditor, from time to time, as the construction work proceeds. Any unpaid 
12.31 	balance may be paid or advanced by the city. On petition of the council, the appropriations 
12.32 	of the county board, during not to exceed three successive years, may be made to apply 
12.33 	on the construction of the same items and to repay any money advanced by the city in 
13.1 	the construction thereof. None of the provisions of this section shall be construed to 
13.2 	be mandatory as applied to any city whose estimated market value exceeds $2,100 per 
13.3 	capita of its population.

13.4 	Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
13.5 		Subd. 6.Expenditure in certain counties. In any county having not less than 95 
13.6 	nor more than 105 full and fractional townships, and having a an estimated market value 
13.7 	of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,
13.8 	 the county board, by resolution, may expend the funds provided in subdivision 4 in any 
13.9 	organized or unorganized township or portion thereof in such county.

13.10 	Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
13.11 		Subdivision 1.Certain counties may issue and sell. The county board of any 
13.12 	county having no outstanding road and bridge bonds may issue and sell county road bonds 
13.13 	in an amount not exceeding 0.12089 percent of the estimated market value of the taxable 
13.14 	property within the county exclusive of money and credits, for the purpose of constructing, 
13.15 	reconstructing, improving, or maintaining any bridge or bridges on any highway under its 
13.16 	jurisdiction, without submitting the matter to a vote of the electors of the county.

13.17 	Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 
13.18 	to read:
13.19 		Subd. 14.Estimated market value. "Estimated market value" means the assessor's 
13.20 	determination of market value, including the effects of any orders made under section 
13.21 	270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain 
13.22 	uses in determining the total estimated market value for the taxing jurisdiction.

13.23 	Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 
13.24 	to read:
13.25 		Subd. 15.Taxable market value. "Taxable market value" means estimated market 
13.26 	value for the parcel as reduced by market value exclusions, deferments of value, or other 
13.27 	adjustments required by law, that reduce market value before the application of class rates.

13.28 	Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:
13.29 	273.032 MARKET VALUE DEFINITION.
13.30 	(a) Unless otherwise provided, for the purpose of determining any property tax 
13.31 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
14.1 	certificates of indebtedness, or capital notes based on market value, any qualification to 
14.2 	receive state aid based on market value, or any state aid amount based on market value, the 
14.3 	terms "market value," "taxable estimated market value," and "market valuation," whether 
14.4 	equalized or unequalized, mean the total taxable estimated market value of taxable property 
14.5 	within the local unit of government before any of the following or similar adjustments for:
14.6 	(1) the market value exclusions under:
14.7 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
14.8 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
14.9 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
14.10 	properties);
14.11 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
14.12 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
14.13 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
14.14 	caregiver);
14.15 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
14.16 	(2) the deferment of value under:
14.17 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
14.18 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
14.19 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
14.20 	(iv) the rural preserves property tax program, section 273.114; or
14.21 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
14.22 	(3) the adjustments to tax capacity for:
14.23 	(i) tax increment, financing under sections 469.174 to 469.1794;
14.24 	(ii) fiscal disparity, disparities under chapter 276A or 473F; or
14.25 	(iii)  powerline credit, or wind energy values, but after the limited market adjustments 
14.26 	under section 273.11, subdivision 1a, and after the market value exclusions of certain 
14.27 	improvements to homestead property under section 273.11, subdivision 16 under section 
14.28 	273.425.
14.29 	(b) Estimated market value under paragraph (a) also includes the market value 
14.30 	of tax-exempt property if the applicable law specifically provides that the limitation, 
14.31 	qualification, or aid calculation includes tax-exempt property.
14.32 	(c) Unless otherwise provided, "market value," "taxable estimated market value," 
14.33 	and "market valuation" for purposes of this paragraph property tax levy limitations and 
14.34 	calculation of state aid, refer to the taxable estimated market value for the previous 
14.35 	assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of 
14.36 	indebtedness, or capital notes refer to the estimated market value as last finally equalized.
15.1 	For the purpose of determining any net debt limit based on market value, or any limit 
15.2 	on the issuance of bonds, certificates of indebtedness, or capital notes based on market 
15.3 	value, the terms "market value," "taxable market value," and "market valuation," whether 
15.4 	equalized or unequalized, mean the total taxable market value of property within the local 
15.5 	unit of government before any adjustments for tax increment, fiscal disparity, powerline 
15.6 	credit, or wind energy values, but after the limited market value adjustments under section 
15.7 	273.11, subdivision 1a, and after the market value exclusions of certain improvements to 
15.8 	homestead property under section 273.11, subdivision 16. Unless otherwise provided, 
15.9 	"market value," "taxable market value," and "market valuation" for purposes of this 
15.10 	paragraph, mean the taxable market value as last finally equalized.
15.11 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
15.12 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
15.13 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
15.14 	value, the terms "market value," "taxable market value," and "market valuation," whether 
15.15 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

15.16 	Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
15.17 		Subdivision 1.Generally. Except as provided in this section or section 273.17, 
15.18 	subdivision 1, all property shall be valued at its market value. The market value as 
15.19 	determined pursuant to this section shall be stated such that any amount under $100 is 
15.20 	rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 
15.21 	In estimating and determining such value, the assessor shall not adopt a lower or different 
15.22 	standard of value because the same is to serve as a basis of taxation, nor shall the assessor 
15.23 	adopt as a criterion of value the price for which such property would sell at a forced sale, 
15.24 	or in the aggregate with all the property in the town or district; but the assessor shall value 
15.25 	each article or description of property by itself, and at such sum or price as the assessor 
15.26 	believes the same to be fairly worth in money. The assessor shall take into account the 
15.27 	effect on the market value of property of environmental factors in the vicinity of the 
15.28 	property. In assessing any tract or lot of real property, the value of the land, exclusive of 
15.29 	structures and improvements, shall be determined, and also the value of all structures and 
15.30 	improvements thereon, and the aggregate value of the property, including all structures 
15.31 	and improvements, excluding the value of crops growing upon cultivated land. In valuing 
15.32 	real property upon which there is a mine or quarry, it shall be valued at such price as such 
15.33 	property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, 
15.34 	if the material being mined or quarried is not subject to taxation under section 298.015
15.35 	and the mine or quarry is not exempt from the general property tax under section 298.25. 
16.1 	In valuing real property which is vacant, platted property shall be assessed as provided 
16.2 	in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is 
16.3 	taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market 
16.4 	value of such property and not at the value of a leasehold estate in such property, or at 
16.5 	some lesser value than its market value.

16.6 	Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
16.7 		Subd. 3a.Manufactured home park cooperative. (a) When a manufactured home 
16.8 	park is owned by a corporation or association organized under chapter 308A or 308B, 
16.9 	and each person who owns a share or shares in the corporation or association is entitled 
16.10 	to occupy a lot within the park, the corporation or association may claim homestead 
16.11 	treatment for the park. Each lot must be designated by legal description or number, and 
16.12 	each lot is limited to not more than one-half acre of land.
16.13 	(b) The manufactured home park shall be entitled to homestead treatment if all 
16.14 	of the following criteria are met:
16.15 	(1) the occupant or the cooperative corporation or association is paying the ad 
16.16 	valorem property taxes and any special assessments levied against the land and structure 
16.17 	either directly, or indirectly through dues to the corporation or association; and
16.18 	(2) the corporation or association organized under chapter 308A or 308B is wholly 
16.19 	owned by persons having a right to occupy a lot owned by the corporation or association.
16.20 	(c) A charitable corporation, organized under the laws of Minnesota with no 
16.21 	outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) 
16.22 	tax-exempt status, qualifies for homestead treatment with respect to a manufactured home 
16.23 	park if its members hold residential participation warrants entitling them to occupy a lot 
16.24 	in the manufactured home park.
16.25 	(d) "Homestead treatment" under this subdivision means the class rate provided for 
16.26 	class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), 
16.27 	item (ii). The homestead market value credit exclusion under section 273.1384 273.13, 
16.28 	subdivision 35, does not apply and the property taxes assessed against the park shall not 
16.29 	be included in the determination of taxes payable for rent paid under section 290A.03.

16.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and 
16.31 	thereafter.

16.32 	Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
17.1 		Subd. 13.Homestead application. (a) A person who meets the homestead 
17.2 	requirements under subdivision 1 must file a homestead application with the county 
17.3 	assessor to initially obtain homestead classification.
17.4 	(b) The format and contents of a uniform homestead application shall be prescribed 
17.5 	by the commissioner of revenue. The application must clearly inform the taxpayer that 
17.6 	this application must be signed by all owners who occupy the property or by the qualifying 
17.7 	relative and returned to the county assessor in order for the property to receive homestead 
17.8 	treatment.
17.9 	(c) Every property owner applying for homestead classification must furnish to the 
17.10 	county assessor the Social Security number of each occupant who is listed as an owner 
17.11 	of the property on the deed of record, the name and address of each owner who does not 
17.12 	occupy the property, and the name and Social Security number of each owner's spouse who 
17.13 	occupies the property. The application must be signed by each owner who occupies the 
17.14 	property and by each owner's spouse who occupies the property, or, in the case of property 
17.15 	that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
17.16 	If a property owner occupies a homestead, the property owner's spouse may not 
17.17 	claim another property as a homestead unless the property owner and the property owner's 
17.18 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
17.19 	the property qualifies as a homestead under subdivision 1, paragraph (e).
17.20 	Owners or spouses occupying residences owned by their spouses and previously 
17.21 	occupied with the other spouse, either of whom fail to include the other spouse's name 
17.22 	and Social Security number on the homestead application or provide the affidavits or 
17.23 	other proof requested, will be deemed to have elected to receive only partial homestead 
17.24 	treatment of their residence. The remainder of the residence will be classified as 
17.25 	nonhomestead residential. When an owner or spouse's name and Social Security number 
17.26 	appear on homestead applications for two separate residences and only one application is 
17.27 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
17.28 	which the application was signed.
17.29 	The Social Security numbers, state or federal tax returns or tax return information, 
17.30 	including the federal income tax schedule F required by this section, or affidavits or other 
17.31 	proofs of the property owners and spouses submitted under this or another section to 
17.32 	support a claim for a property tax homestead classification are private data on individuals as 
17.33 	defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data 
17.34 	may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the 
17.35 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
18.1 	(d) If residential real estate is occupied and used for purposes of a homestead by a 
18.2 	relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 
18.3 	order for the property to receive homestead status, a homestead application must be filed 
18.4 	with the assessor. The Social Security number of each relative and spouse of a relative 
18.5 	occupying the property shall be required on the homestead application filed under this 
18.6 	subdivision. If a different relative of the owner subsequently occupies the property, the 
18.7 	owner of the property must notify the assessor within 30 days of the change in occupancy. 
18.8 	The Social Security number of a relative or relative's spouse occupying the property 
18.9 	is private data on individuals as defined by section 13.02, subdivision 12, but may be 
18.10 	disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 
18.11 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
18.12 	(e) The homestead application shall also notify the property owners that the 
18.13 	application filed under this section will not be mailed annually and that if the property 
18.14 	is granted homestead status for any assessment year, that same property shall remain 
18.15 	classified as homestead until the property is sold or transferred to another person, or 
18.16 	the owners, the spouse of the owner, or the relatives no longer use the property as their 
18.17 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
18.18 	be timely filed with the county auditor as provided under section 272.115. Failure to 
18.19 	notify the assessor within 30 days that the property has been sold, transferred, or that the 
18.20 	owner, the spouse of the owner, or the relative is no longer occupying the property as a 
18.21 	homestead, shall result in the penalty provided under this subdivision and the property 
18.22 	will lose its current homestead status.
18.23 	(f) If the homestead application is not returned within 30 days, the county will send a 
18.24 	second application to the present owners of record. The notice of proposed property taxes 
18.25 	prepared under section 275.065, subdivision 3, shall reflect the property's classification. If 
18.26 	a homestead application has not been filed with the county by December 15, the assessor 
18.27 	shall classify the property as nonhomestead for the current assessment year for taxes 
18.28 	payable in the following year, provided that the owner may be entitled to receive the 
18.29 	homestead classification by proper application under section 375.192.
18.30 	(g) At the request of the commissioner, each county must give the commissioner a 
18.31 	list that includes the name and Social Security number of each occupant of homestead 
18.32 	property who is the property owner, property owner's spouse, qualifying relative of a 
18.33 	property owner, or a spouse of a qualifying relative. The commissioner shall use the 
18.34 	information provided on the lists as appropriate under the law, including for the detection 
18.35 	of improper claims by owners, or relatives of owners, under chapter 290A.
19.1 	(h) If the commissioner finds that a property owner may be claiming a fraudulent 
19.2 	homestead, the commissioner shall notify the appropriate counties. Within 90 days of 
19.3 	the notification, the county assessor shall investigate to determine if the homestead 
19.4 	classification was properly claimed. If the property owner does not qualify, the county 
19.5 	assessor shall notify the county auditor who will determine the amount of homestead 
19.6 	benefits that had been improperly allowed. For the purpose of this section, "homestead 
19.7 	benefits" means the tax reduction resulting from the classification as a homestead and the 
19.8 	homestead market value exclusion under section 273.13, the taconite homestead credit 
19.9 	under section 273.135, the residential homestead and agricultural homestead credits credit
19.10 	 under section 273.1384, and the supplemental homestead credit under section 273.1391.
19.11 	The county auditor shall send a notice to the person who owned the affected property 
19.12 	at the time the homestead application related to the improper homestead was filed, 
19.13 	demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 
19.14 	of the homestead benefits. The person notified may appeal the county's determination 
19.15 	by serving copies of a petition for review with county officials as provided in section 
19.16 	278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 
19.17 	Court within 60 days of the date of the notice from the county. Procedurally, the appeal 
19.18 	is governed by the provisions in chapter 271 which apply to the appeal of a property tax 
19.19 	assessment or levy, but without requiring any prepayment of the amount in controversy. If 
19.20 	the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 
19.21 	has been filed, the county auditor shall certify the amount of taxes and penalty to the county 
19.22 	treasurer. The county treasurer will add interest to the unpaid homestead benefits and 
19.23 	penalty amounts at the rate provided in section 279.03 for real property taxes becoming 
19.24 	delinquent in the calendar year during which the amount remains unpaid. Interest may be 
19.25 	assessed for the period beginning 60 days after demand for payment was made.
19.26 	If the person notified is the current owner of the property, the treasurer may add the 
19.27 	total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 
19.28 	otherwise payable on the property by including the amounts on the property tax statements 
19.29 	under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 
19.30 	valorem taxes shall include interest accrued through December 31 of the year preceding 
19.31 	the taxes payable year for which the amounts are first added. These amounts, when added 
19.32 	to the property tax statement, become subject to all the laws for the enforcement of real or 
19.33 	personal property taxes for that year, and for any subsequent year.
19.34 	If the person notified is not the current owner of the property, the treasurer may 
19.35 	collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 
19.36 	the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 
20.1 	of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 
20.2 	tax obligations of the person who owned the property at the time the application related to 
20.3 	the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 
20.4 	personal liability for the homestead benefits, penalty, interest, and costs, and instead extend 
20.5 	those amounts on the tax lists against the property as provided in this paragraph to the extent 
20.6 	that the current owner agrees in writing. On all demands, billings, property tax statements, 
20.7 	and related correspondence, the county must list and state separately the amounts of 
20.8 	homestead benefits, penalty, interest and costs being demanded, billed or assessed.
20.9 	(i) Any amount of homestead benefits recovered by the county from the property 
20.10 	owner shall be distributed to the county, city or town, and school district where the 
20.11 	property is located in the same proportion that each taxing district's levy was to the total 
20.12 	of the three taxing districts' levy for the current year. Any amount recovered attributable 
20.13 	to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 
20.14 	deposited in the taconite property tax relief account. Any amount recovered that is 
20.15 	attributable to supplemental homestead credit is to be transmitted to the commissioner of 
20.16 	revenue for deposit in the general fund of the state treasury. The total amount of penalty 
20.17 	collected must be deposited in the county general fund.
20.18 	(j) If a property owner has applied for more than one homestead and the county 
20.19 	assessors cannot determine which property should be classified as homestead, the county 
20.20 	assessors will refer the information to the commissioner. The commissioner shall make 
20.21 	the determination and notify the counties within 60 days.
20.22 	(k) In addition to lists of homestead properties, the commissioner may ask the 
20.23 	counties to furnish lists of all properties and the record owners. The Social Security 
20.24 	numbers and federal identification numbers that are maintained by a county or city 
20.25 	assessor for property tax administration purposes, and that may appear on the lists retain 
20.26 	their classification as private or nonpublic data; but may be viewed, accessed, and used by 
20.27 	the county auditor or treasurer of the same county for the limited purpose of assisting the 
20.28 	commissioner in the preparation of microdata samples under section 270C.12.
20.29 	(l) On or before April 30 each year beginning in 2007, each county must provide the 
20.30 	commissioner with the following data for each parcel of homestead property by electronic 
20.31 	means as defined in section 289A.02, subdivision 8:
20.32 	(i) the property identification number assigned to the parcel for purposes of taxes 
20.33 	payable in the current year;
20.34 	(ii) the name and Social Security number of each occupant of homestead property 
20.35 	who is the property owner, property owner's spouse, qualifying relative of a property 
20.36 	owner, or spouse of a qualifying relative;
21.1 	(iii) the classification of the property under section 273.13 for taxes payable in the 
21.2 	current year and in the prior year;
21.3 	(iv) an indication of whether the property was classified as a homestead for taxes 
21.4 	payable in the current year because of occupancy by a relative of the owner or by a 
21.5 	spouse of a relative;
21.6 	(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
21.7 	current year and the prior year;
21.8 	(vi) the market value of improvements to the property first assessed for tax purposes 
21.9 	for taxes payable in the current year;
21.10 	(vii) the assessor's estimated market value assigned to the property for taxes payable 
21.11 	in the current year and the prior year;
21.12 	(viii) the taxable market value assigned to the property for taxes payable in the 
21.13 	current year and the prior year;
21.14 	(ix) whether there are delinquent property taxes owing on the homestead;
21.15 	(x) the unique taxing district in which the property is located; and
21.16 	(xi) such other information as the commissioner decides is necessary.
21.17 	The commissioner shall use the information provided on the lists as appropriate 
21.18 	under the law, including for the detection of improper claims by owners, or relatives 
21.19 	of owners, under chapter 290A.

21.20 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and 
21.21 	thereafter.

21.22 	Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
21.23 		Subd. 21b.Net tax capacity. (a) Gross tax capacity means the product of the 
21.24 	appropriate gross class rates in this section and market values.
21.25 	(b) Net tax capacity means the product of the appropriate net class rates in this 
21.26 	section and taxable market values.

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

21.28 	Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
21.29 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified for each 
21.30 	taxing district within each unique taxing jurisdiction for taxes payable in the prior year 
21.31 	shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for 
21.32 	taxes payable in the year for which aid is being computed, to (2) its tax capacity using 
21.33 	the class rates for taxes payable in the year prior to that for which aid is being computed, 
22.1 	both based upon taxable market values for taxes payable in the year prior to that for which 
22.2 	aid is being computed. If the commissioner determines that insufficient information is 
22.3 	available to reasonably and timely calculate the numerator in this ratio for the first taxes 
22.4 	payable year that a class rate change or new class rate is effective, the commissioner shall 
22.5 	omit the effects of that class rate change or new class rate when calculating this ratio for 
22.6 	aid payable in that taxes payable year. For aid payable in the year following a year for 
22.7 	which such omission was made, the commissioner shall use in the denominator for the 
22.8 	class that was changed or created, the tax capacity for taxes payable two years prior to that 
22.9 	in which the aid is payable, based on taxable market values for taxes payable in the year 
22.10 	prior to that for which aid is being computed.

22.11 	Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
22.12 		Subd. 4.Disparity reduction credit. (a) Beginning with taxes payable in 1989, 
22.13 	class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property 
22.14 	is located in a border city that has an enterprise zone, as defined in section 469.166; (2) 
22.15 	the property is located in a city with a population greater than 2,500 and less than 35,000 
22.16 	according to the 1980 decennial census; (3) the city is adjacent to a city in another state or 
22.17 	immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city 
22.18 	in the other state has a population of greater than 5,000 and less than 75,000 according to 
22.19 	the 1980 decennial census.
22.20 	(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 
22.21 	property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a 
22.22 	property to 2.3 percent of taxable market value.
22.23 	(c) The county auditor shall annually certify the costs of the credits to the 
22.24 	Department of Revenue. The department shall reimburse local governments for the 
22.25 	property taxes forgone as the result of the credits in proportion to their total levies.

22.26 	Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
22.27 		Subdivision 1.Determination of levy limit. The property tax levied for any 
22.28 	purpose under a special law that is not codified in Minnesota Statutes or a city charter 
22.29 	provision and that is subject to a mill rate limitation imposed by the special law or city 
22.30 	charter provision, excluding levies subject to mill rate limitations that use adjusted 
22.31 	assessed values determined by the commissioner of revenue under section 124.2131, must 
22.32 	not exceed the following amount for the years specified:
22.33 	(a) for taxes payable in 1988, the product of the applicable mill rate limitation 
22.34 	imposed by special law or city charter provision multiplied by the total assessed valuation 
23.1 	of all taxable property subject to the tax as adjusted by the provisions of Minnesota 
23.2 	Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
23.3 	(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for 
23.4 	the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for 
23.5 	market valuation changes equal to the assessment year 1988 total market valuation of all 
23.6 	taxable property subject to the tax divided by the assessment year 1987 total market 
23.7 	valuation of all taxable property subject to the tax; and
23.8 	(c) for taxes payable in 1990 and subsequent years, the product of (1) the property 
23.9 	tax levy limitation for the previous year determined pursuant to this subdivision multiplied 
23.10 	by (2) an index for market valuation changes equal to the total market valuation of all 
23.11 	taxable property subject to the tax for the current assessment year divided by the total 
23.12 	market valuation of all taxable property subject to the tax for the previous assessment year.
23.13 	For the purpose of determining the property tax levy limitation for the taxes payable 
23.14 	year 1988 2014 and subsequent years under this subdivision, "total market valuation" 
23.15 	means the total estimated market valuation value of all taxable property subject to the 
23.16 	tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax 
23.17 	increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)
23.18 	 as provided under section 273.032.

23.19 	Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
23.20 		Subd. 2.Correction of levy amount. The difference between the correct levy and 
23.21 	the erroneous levy shall be added to the township levy for the subsequent levy year; 
23.22 	provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated
23.23 	 market value, the excess shall be added to the township levy for the second and later 
23.24 	subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
23.25 	 estimated market value in any year, until the full amount of the difference has been levied. 
23.26 	The funds collected from the corrected levies shall be used to reimburse the county for the 
23.27 	payment required by subdivision 1.

23.28 	Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
23.29 		Subd. 4.Adjusted levy limit base.  For taxes levied in 2008 through 2010, the 
23.30 	adjusted levy limit base is equal to the levy limit base computed under subdivision 2 
23.31 	or section 275.72, multiplied by:
23.32 	(1) one plus the percentage growth in the implicit price deflator, but the percentage 
23.33 	shall not be less than zero or exceed 3.9 percent;
24.1 	(2) one plus a percentage equal to 50 percent of the percentage increase in the number 
24.2 	of households, if any, for the most recent 12-month period for which data is available; and
24.3 	(3) one plus a percentage equal to 50 percent of the percentage increase in the 
24.4 	taxable estimated market value of the jurisdiction due to new construction of class 3 
24.5 	property, as defined in section 273.13, subdivision 4, except for state-assessed utility and 
24.6 	railroad property, for the most recent year for which data is available.

24.7 	Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
24.8 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing 
24.9 	of the tax statements. The commissioner of revenue shall prescribe the form of the property 
24.10 	tax statement and its contents. The tax statement must not state or imply that property tax 
24.11 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
24.12 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
24.13 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
24.14 	attributable to the county, the state tax, the voter approved school tax, the other local school 
24.15 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
24.16 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. 
24.17 	The amounts due all other special taxing districts, if any, may be aggregated except that 
24.18 	any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, 
24.19 	Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate 
24.20 	line directly under the appropriate county's levy. If the county levy under this paragraph 
24.21 	includes an amount for a lake improvement district as defined under sections 103B.501
24.22 	to 103B.581, the amount attributable for that purpose must be separately stated from the 
24.23 	remaining county levy amount. In the case of Ramsey County, if the county levy under this 
24.24 	paragraph includes an amount for public library service under section 134.07, the amount 
24.25 	attributable for that purpose may be separated from the remaining county levy amount. 
24.26 	The amount of the tax on homesteads qualifying under the senior citizens' property tax 
24.27 	deferral program under chapter 290B is the total amount of property tax before subtraction 
24.28 	of the deferred property tax amount. The amount of the tax on contamination value 
24.29 	imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar 
24.30 	amounts, including the dollar amount of any special assessments, may be rounded to the 
24.31 	nearest even whole dollar. For purposes of this section whole odd-numbered dollars may 
24.32 	be adjusted to the next higher even-numbered dollar. The amount of market value excluded 
24.33 	under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
25.1 	(b) The property tax statements for manufactured homes and sectional structures 
25.2 	taxed as personal property shall contain the same information that is required on the 
25.3 	tax statements for real property.
25.4 	(c) Real and personal property tax statements must contain the following information 
25.5 	in the order given in this paragraph. The information must contain the current year tax 
25.6 	information in the right column with the corresponding information for the previous year 
25.7 	in a column on the left:
25.8 	(1) the property's estimated market value under section 273.11, subdivision 1;
25.9 	(2) the property's homestead market value exclusion under section 273.13, 
25.10 	subdivision 35;
25.11 	(3) the property's taxable market value after reductions under sections 273.11, 
25.12 	subdivisions 1a and 16, and 273.13, subdivision 35 section 272.03, subdivision 15;
25.13 	(4) the property's gross tax, before credits;
25.14 	(5) for homestead agricultural properties, the credit under section 273.1384;
25.15 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
25.16 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 
25.17 	credit received under section 273.135 must be separately stated and identified as "taconite 
25.18 	tax relief"; and
25.19 	(7) the net tax payable in the manner required in paragraph (a).
25.20 	(d) If the county uses envelopes for mailing property tax statements and if the county 
25.21 	agrees, a taxing district may include a notice with the property tax statement notifying 
25.22 	taxpayers when the taxing district will begin its budget deliberations for the current 
25.23 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
25.24 	be included in the envelope containing the property tax statement, and if more than 
25.25 	one taxing district relative to a given property decides to include a notice with the tax 
25.26 	statement, the county treasurer or auditor must coordinate the process and may combine 
25.27 	the information on a single announcement.

25.28 	Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
25.29 		Subd. 10.Adjusted market value. "Adjusted market value" of real and personal 
25.30 	property within a municipality means the assessor's estimated taxable market value, 
25.31 	as defined in section 272.03, of all real and personal property, including the value of 
25.32 	manufactured housing, within the municipality. For purposes of sections 276A.01 to 
25.33 	276A.09, the commissioner of revenue shall annually make determinations and reports 
25.34 	with respect to each municipality which are comparable to those it makes for school 
25.35 	districts, adjusted for sales ratios in a manner similar to the adjustments made to city and 
26.1 	town net tax capacities under section 127A.48, subdivisions 1 to 6, in the same manner 
26.2 	and at the same times prescribed by the subdivision. The commissioner of revenue shall 
26.3 	annually determine, for each municipality, information comparable to that required by 
26.4 	section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes 
26.5 	available. The commissioner of revenue shall then compute the equalized market value of 
26.6 	property within each municipality.

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

26.8 	Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
26.9 		Subd. 12.Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
26.10 	 adjusted market value, determined as of January 2 of any year, divided by its population, 
26.11 	determined as of a date in the same year.

26.12 	Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
26.13 		Subd. 13.Average fiscal capacity. "Average fiscal capacity" of municipalities 
26.14 	means the sum of the valuations adjusted market values of all municipalities, determined 
26.15 	as of January 2 of any year, divided by the sum of their populations, determined as of 
26.16 	a date in the same year.

26.17 	Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
26.18 		Subd. 15.Net tax capacity. "Net tax capacity" means the taxable market value of 
26.19 	real and personal property multiplied by its net tax capacity rates in section 273.13.

26.20 	Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
26.21 		Subd. 10.Adjustment of values for other computations. For the purpose of 
26.22 	computing the amount or rate of any salary, aid, tax, or debt authorized, required, or 
26.23 	limited by any provision of any law or charter, where the authorization, requirement, or 
26.24 	limitation is related to any value or valuation of taxable property within any governmental 
26.25 	unit, the value or net tax capacity fiscal capacity under section 276A.01, subdivision 12, a 
26.26 	municipality's taxable market value must be adjusted to reflect the adjustments reductions
26.27 	 to net tax capacity effected by subdivision 2, clause (a), provided that: (1) in determining 
26.28 	the taxable market value of commercial-industrial property or any class thereof within 
26.29 	a governmental unit for any purpose other than section 276A.05 municipality, (a) the 
26.30 	reduction required by this subdivision is that amount which bears the same proportion to 
26.31 	the amount subtracted from the governmental unit's municipality's net tax capacity pursuant 
26.32 	to subdivision 2, clause (a), as the taxable market value of commercial-industrial property, 
27.1 	or such class thereof, located within the governmental unit municipality bears to the net 
27.2 	tax capacity of commercial-industrial property, or such class thereof, located within the 
27.3 	governmental unit, and (b) the increase required by this subdivision is that amount which 
27.4 	bears the same proportion to the amount added to the governmental unit's net tax capacity 
27.5 	pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, 
27.6 	or such class thereof, located within the governmental unit bears to the net tax capacity of 
27.7 	commercial-industrial property, or such class thereof, located within the governmental unit; 
27.8 	and (2) in determining the market value of real property within a municipality for purposes 
27.9 	of section 276A.05, the adjustment prescribed by clause (1)(a) must be made and that 
27.10 	prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made 
27.11 	to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).

27.12 	Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:
27.13 	287.08 TAX, HOW PAYABLE; RECEIPTS.
27.14 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of 
27.15 	any county in this state in which the real property or some part is located at or before 
27.16 	the time of filing the mortgage for record. The treasurer shall endorse receipt on the 
27.17 	mortgage and the receipt is conclusive proof that the tax has been paid in the amount 
27.18 	stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 
27.19 	form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 
27.20 	mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 
27.21 	registration tax." In either case the receipt must be signed by the treasurer. In case the 
27.22 	treasurer is unable to determine whether a claim of exemption should be allowed, the tax 
27.23 	must be paid as in the case of a taxable mortgage. For documents submitted electronically, 
27.24 	the endorsements and tax amount shall be affixed electronically and no signature by the 
27.25 	treasurer will be required. The actual payment method must be arranged in advance 
27.26 	between the submitter and the receiving county.
27.27 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
27.28 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
27.29 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
27.30 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
27.31 	the tax was paid at any time after the expiration of six months from the time that the 
27.32 	application was submitted. A denial of refund may be appealed within 60 days from 
27.33 	the date of the denial by bringing an action in Tax Court in the county in which the tax 
27.34 	was paid. The action is commenced by the serving of a petition for relief on the county 
27.35 	treasurer, and by filing a copy with the court. The county attorney shall defend the action. 
28.1 	The county treasurer shall notify the treasurer of each county that has or would receive a 
28.2 	portion of the tax as paid.
28.3 	(c) If the county treasurer determines a refund should be paid, or if a refund is 
28.4 	ordered by the court, the county treasurer of each county that actually received a portion 
28.5 	of the tax shall immediately pay a proportionate share of three percent of the refund 
28.6 	using any available county funds. The county treasurer of each county that received, or 
28.7 	would have received, a portion of the tax shall also pay their county's proportionate share 
28.8 	of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 
28.9 	following month using solely the mortgage registry tax funds that would be paid to the 
28.10 	commissioner of revenue on that date under section 287.12. If the funds on hand under 
28.11 	this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 
28.12 	county treasurer of the county in which the action was brought shall file a claim with the 
28.13 	commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of 
28.14 	the refund, and shall pay over the remaining portion upon receipt of a warrant from the 
28.15 	state issued pursuant to the claim.
28.16 	(d) When any mortgage covers real property located in more than one county in this 
28.17 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
28.18 	presented for recording, and the payment must be receipted as provided in paragraph 
28.19 	(a). If the principal debt or obligation secured by such a multiple county mortgage 
28.20 	exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by 
28.21 	the county treasurer receiving it, on or before the 20th day of each month after receipt, 
28.22 	to the county or counties entitled in the ratio that the estimated market value of the real 
28.23 	property covered by the mortgage in each county bears to the estimated market value of 
28.24 	all the real property in this state described in the mortgage. In making the division and 
28.25 	payment the county treasurer shall send a statement giving the description of the real 
28.26 	property described in the mortgage and the estimated market value of the part located in 
28.27 	each county. For this purpose, the treasurer of any county may require the treasurer of 
28.28 	any other county to certify to the former the estimated market valuation value of any tract 
28.29 	of real property in any mortgage.
28.30 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The 
28.31 	mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 
28.32 	mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 
28.33 	the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 
28.34 	amount of the tax collected for that purpose and the mortgagor is relieved of any further 
28.35 	obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

29.1 	Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
29.2 		Subdivision 1.Real property outside county. If any taxable deed or instrument 
29.3 	describes any real property located in more than one county in this state, the total tax must 
29.4 	be paid to the treasurer of the county where the document is first presented for recording, 
29.5 	and the payment must be receipted as provided in section 287.08. If the net consideration 
29.6 	exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the 
29.7 	county treasurer receiving it, on or before the 20th day of each month after receipt, to 
29.8 	the county or counties entitled in the ratio which the estimated market value of the real 
29.9 	property covered by the document in each county bears to the estimated market value of 
29.10 	all the real property in this state described in the document. In making the division and 
29.11 	payment the county treasurer shall send a statement to the other involved counties giving 
29.12 	the description of the real property described in the document and the estimated market 
29.13 	value of the part located in each county. The treasurer of any county may require the 
29.14 	treasurer of any other county to certify to the former the estimated market valuation value
29.15 	 of any parcel of real property for this purpose.

29.16 	Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
29.17 		Subd. 2.Cash flow funding requirement. If the executive director determines that 
29.18 	an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has 
29.19 	insufficient assets to meet the service pensions determined payable from the account, 
29.20 	the executive director shall certify the amount of the potential service pension shortfall 
29.21 	to the municipality or municipalities and the municipality or municipalities shall make 
29.22 	an additional employer contribution to the account within ten days of the certification. 
29.23 	If more than one municipality is associated with the account, unless the municipalities 
29.24 	agree to a different allocation, the municipalities shall allocate the additional employer 
29.25 	contribution one-half in proportion to the population of each municipality and one-half in 
29.26 	proportion to the estimated market value of the property of each municipality.

29.27 	Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
29.28 		Subd. 4.Major purchases: notice, petition, election. Before buying anything 
29.29 	under subdivision 2 that costs more than 0.24177 percent of the estimated market value of 
29.30 	the town, the town must follow this subdivision.
29.31 	The town must publish in its official newspaper the board's resolution to pay for the 
29.32 	property over time. Then a petition for an election on the contract may be filed with the 
29.33 	clerk. The petition must be filed within ten days after the resolution is published. To require 
29.34 	the election the petition must be signed by a number of voters equal to ten percent of the 
30.1 	voters at the last regular town election. The contract then must be approved by a majority of 
30.2 	those voting on the question. The question may be voted on at a regular or special election.

30.3 	Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
30.4 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates 
30.5 	of indebtedness within the debt limits for a town purpose otherwise authorized by law. 
30.6 	The certificates shall be payable in not more than ten years and be issued on the terms and 
30.7 	in the manner as the board may determine. If the amount of the certificates to be issued 
30.8 	exceeds 0.25 percent of the estimated market value of the town, they shall not be issued 
30.9 	for at least ten days after publication in a newspaper of general circulation in the town of 
30.10 	the board's resolution determining to issue them. If within that time, a petition asking for 
30.11 	an election on the proposition signed by voters equal to ten percent of the number of voters 
30.12 	at the last regular town election is filed with the clerk, the certificates shall not be issued 
30.13 	until their issuance has been approved by a majority of the votes cast on the question at 
30.14 	a regular or special election. A tax levy shall be made to pay the principal and interest 
30.15 	on the certificates as in the case of bonds.

30.16 	Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:
30.17 	366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
30.18 	The town board of any town in this state having therein a platted portion on 
30.19 	which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief 
30.20 	association is located may each year levy a tax not to exceed 0.00806 percent of taxable
30.21 	 estimated market value for the benefit of the relief association.

30.22 	Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
30.23 		Subd. 23.Financing purchase of certain equipment. The town board may issue 
30.24 	certificates of indebtedness within debt limits to purchase fire or police equipment or 
30.25 	ambulance equipment or street construction or maintenance equipment. The certificates 
30.26 	shall be payable in not more than five years and be issued on terms and in the manner as the 
30.27 	board may determine. If the amount of the certificates to be issued to finance a purchase 
30.28 	exceeds 0.24177 percent of the estimated market value of the town, excluding money 
30.29 	and credits, they shall not be issued for at least ten days after publication in the official 
30.30 	newspaper of a town board resolution determining to issue them. If before the end of that 
30.31 	time, a petition asking for an election on the proposition signed by voters equal to ten 
30.32 	percent of the number of voters at the last regular town election is filed with the clerk, the 
30.33 	certificates shall not be issued until the proposition of their issuance has been approved by a 
31.1 	majority of the votes cast on the question at a regular or special election. A tax levy shall be 
31.2 	made for the payment of the principal and interest on the certificates as in the case of bonds.

31.3 	Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:
31.4 	368.47 TOWNS MAY BE DISSOLVED.
31.5 	(1) When the voters residing within a town have failed to elect any town officials for 
31.6 	more than ten years continuously;
31.7 	(2) when a town has failed for a period of ten years to exercise any of the powers 
31.8 	and functions of a town;
31.9 	(3) when the estimated market value of a town drops to less than $165,000;
31.10 	(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or 
31.11 	unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 
31.12 	12 percent of its market value; or
31.13 	(5) when the state or federal government has acquired title to 50 percent of the 
31.14 	real estate of a town,
31.15 	which facts, or any of them, may be found and determined by the resolution of the county 
31.16 	board of the county in which the town is located, according to the official records in the 
31.17 	office of the county auditor, the county board by resolution may declare the town, naming 
31.18 	it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
31.19 	In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters 
31.20 	of the town shall express their approval or disapproval. The town clerk shall, upon a 
31.21 	petition signed by a majority of the registered voters of the town, filed with the clerk at 
31.22 	least 60 days before a regular or special town election, give notice at the same time and 
31.23 	in the same manner of the election that the question of dissolution of the town will be 
31.24 	submitted for determination at the election. At the election the question shall be voted 
31.25 	upon by a separate ballot, the terms of which shall be either "for dissolution" or "against 
31.26 	dissolution." The ballot shall be deposited in a separate ballot box and the result of the 
31.27 	voting canvassed, certified, and returned in the same manner and at the same time as 
31.28 	other facts and returns of the election. If a majority of the votes cast at the election are 
31.29 	for dissolution, the town shall be dissolved. If a majority of the votes cast at the election 
31.30 	are against dissolution, the town shall not be dissolved.
31.31 	When a town is dissolved under sections 368.47 to 368.49 the county shall acquire 
31.32 	title to any telephone company or other business conducted by the town. The business 
31.33 	shall be operated by the board of county commissioners until it can be sold. The 
31.34 	subscribers or patrons of the business shall have the first opportunity of purchase. If the 
31.35 	town has any outstanding indebtedness chargeable to the business, the county auditor shall 
32.1 	levy a tax against the property situated in the dissolved town to pay the indebtedness 
32.2 	as it becomes due.

32.3 	Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:
32.4 	370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
32.5 	The boundaries of counties may be changed by taking territory from a county and 
32.6 	attaching it to an adjoining county, and new counties may be established out of territory of 
32.7 	one or more existing counties. A new county shall contain at least 400 square miles and 
32.8 	have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated
32.9 	 market value of at least 35 percent of (i) the total taxable estimated market value of the 
32.10 	existing county, or (ii) the average total taxable estimated market value of the existing 
32.11 	counties, included in the proposition. The determination of the taxable estimated market 
32.12 	value of a county must be made by the commissioner of revenue. An existing county shall 
32.13 	not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a 
32.14 	total taxable estimated market value of less than that required of a new county.
32.15 	No change in the boundaries of any county having an area of more than 2,500 square 
32.16 	miles, whether by the creation of a new county, or otherwise, shall detach from the existing 
32.17 	county any territory within 12 miles of the county seat.

32.18 	Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
32.19 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
32.20 	the meanings given.
32.21 	(a) "Bonds" means an obligation as defined under section 475.51.
32.22 	(b) "Capital improvement" means acquisition or betterment of public lands, 
32.23 	buildings, or other improvements within the county for the purpose of a county courthouse, 
32.24 	administrative building, health or social service facility, correctional facility, jail, law 
32.25 	enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 
32.26 	bridges, and the acquisition of development rights in the form of conservation easements 
32.27 	under chapter 84C. An improvement must have an expected useful life of five years or 
32.28 	more to qualify. "Capital improvement" does not include a recreation or sports facility 
32.29 	building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 
32.30 	swimming pool, exercise room or health spa), unless the building is part of an outdoor 
32.31 	park facility and is incidental to the primary purpose of outdoor recreation.
32.32 	(c) "Metropolitan county" means a county located in the seven-county metropolitan 
32.33 	area as defined in section 473.121 or a county with a population of 90,000 or more.
33.1 	(d) "Population" means the population established by the most recent of the 
33.2 	following (determined as of the date the resolution authorizing the bonds was adopted):
33.3 	(1) the federal decennial census,
33.4 	(2) a special census conducted under contract by the United States Bureau of the 
33.5 	Census, or
33.6 	(3) a population estimate made either by the Metropolitan Council or by the state 
33.7 	demographer under section 4A.02.
33.8 	(e) "Qualified indoor ice arena" means a facility that meets the requirements of 
33.9 	section 373.43.
33.10 	(f) "Tax capacity" means total taxable market value, but does not include captured 
33.11 	market value.

33.12 	Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
33.13 		Subd. 4.Limitations on amount. A county may not issue bonds under this section 
33.14 	if the maximum amount of principal and interest to become due in any year on all the 
33.15 	outstanding bonds issued pursuant to this section (including the bonds to be issued) will 
33.16 	equal or exceed 0.12 percent of taxable the estimated market value of property in the 
33.17 	county. Calculation of the limit must be made using the taxable estimated market value for 
33.18 	the taxes payable year in which the obligations are issued and sold. This section does not 
33.19 	limit the authority to issue bonds under any other special or general law.

33.20 	Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
33.21 		Subdivision 1.Appropriations. Notwithstanding any contrary law, a county board 
33.22 	may appropriate from the general revenue fund to any nonprofit corporation a sum not 
33.23 	to exceed 0.00604 percent of taxable estimated market value to provide legal assistance 
33.24 	to persons who are unable to afford private legal counsel.

33.25 	Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
33.26 		Subd. 3.Courthouse. Each county board may erect, furnish, and maintain a 
33.27 	suitable courthouse. No indebtedness shall be created for a courthouse in excess of an 
33.28 	amount equal to a levy of 0.04030 percent of taxable estimated market value without the 
33.29 	approval of a majority of the voters of the county voting on the question of issuing the 
33.30 	obligation at an election.

33.31 	Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:
33.32 	375.555 FUNDING.
34.1 	To implement the county emergency jobs program, the county board may expend 
34.2 	an amount equal to what would be generated by a levy of 0.01209 percent of taxable
34.3 	 estimated market value. The money to be expended may be from any available funds 
34.4 	not otherwise earmarked.

34.5 	Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:
34.6 	383B.152 BUILDING AND MAINTENANCE FUND.
34.7 	The county board may by resolution levy a tax to provide money which shall be kept 
34.8 	in a fund known as the county reserve building and maintenance fund. Money in the fund 
34.9 	shall be used solely for the construction, maintenance, and equipping of county buildings 
34.10 	that are constructed or maintained by the board. The levy shall not be subject to any limit 
34.11 	fixed by any other law or by any board of tax levy or other corresponding body, but shall 
34.12 	not exceed 0.02215 percent of taxable estimated market value, less the amount required by 
34.13 	chapter 475 to be levied in the year for the payment of the principal of and interest on all 
34.14 	bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.

34.15 	Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:
34.16 	383B.245 LIBRARY LEVY.
34.17 	(a) The county board may levy a tax on the taxable property within the county to 
34.18 	acquire, better, and construct county library buildings and branches and to pay principal 
34.19 	and interest on bonds issued for that purpose.
34.20 	(b) The county board may by resolution adopted by a five-sevenths vote issue and 
34.21 	sell general obligation bonds of the county in the manner provided in sections 475.60 to 
34.22 	475.73. The bonds shall not be subject to the limitations of sections 475.51 to 475.59, 
34.23 	but the maturity years and amounts and interest rates of each series of bonds shall be 
34.24 	fixed so that the maximum amount of principal and interest to become due in any year, 
34.25 	on the bonds of that series and of all outstanding series issued by or for the purposes of 
34.26 	libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value 
34.27 	of all taxable property in the county as last finally equalized before the issuance of the new 
34.28 	series. When the tax levy authorized in this section is collected it shall be appropriated 
34.29 	and credited to a debt service fund for the bonds in amounts required each year in lieu of a 
34.30 	countywide tax levy for the debt service fund under section 475.61.

34.31 	Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
34.32 		Subdivision 1.Levy. To provide funds for the purposes of the Three Rivers Park 
34.33 	District as set forth in its annual budget, in lieu of the levies authorized by any other 
35.1 	special law for such purposes, the Board of Park District Commissioners may levy taxes 
35.2 	on all the taxable property in the county and park district at a rate not exceeding 0.03224 
35.3 	percent of estimated market value. Notwithstanding section 398.16, on or before October 
35.4 	1 of each year, after public hearing, the Board of Park District Commissioners shall adopt 
35.5 	a budget for the ensuing year and shall determine the total amount necessary to be raised 
35.6 	from ad valorem tax levies to meet its budget. The Board of Park District Commissioners 
35.7 	shall submit the budget to the county board. The county board may veto or modify an item 
35.8 	contained in the budget. If the county board determines to veto or to modify an item in the 
35.9 	budget, it must, within 15 days after the budget was submitted by the district board, state 
35.10 	in writing the specific reasons for its objection to the item vetoed or the reason for the 
35.11 	modification. The Park District Board, after consideration of the county board's objections 
35.12 	and proposed modifications, may reapprove a vetoed item or the original version of an item 
35.13 	with respect to which a modification has been proposed, by a two-thirds majority. If the 
35.14 	district board does not reapprove a vetoed item, the item shall be deleted from the budget. 
35.15 	If the district board does not reapprove the original version of a modified item, the item 
35.16 	shall be included in the budget as modified by the county board. After adoption of the final 
35.17 	budget and no later than October 1, the superintendent of the park district shall certify to the 
35.18 	office of the Hennepin County director of tax and public records exercising the functions 
35.19 	of the county auditor the total amount to be raised from ad valorem tax levies to meet its 
35.20 	budget for the ensuing year. The director of tax and public records shall add the amount of 
35.21 	any levy certified by the district to other tax levies on the property of the county within the 
35.22 	district for collection by the director of tax and public records with other taxes. When 
35.23 	collected, the director shall make settlement of such taxes with the district in the same 
35.24 	manner as other taxes are distributed to the other political subdivisions in Hennepin County.

35.25 	Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:
35.26 	383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
35.27 	The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue 
35.28 	and sell general obligation bonds of the county in the manner provided in chapter 475 to 
35.29 	acquire, better, and construct county library buildings. The bonds shall not be subject to the 
35.30 	requirements of sections 475.57 to 475.59. The maturity years and amounts and interest 
35.31 	rates of each series of bonds shall be fixed so that the maximum amount of principal and 
35.32 	interest to become due in any year, on the bonds of that series and of all outstanding series 
35.33 	issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent 
35.34 	of the taxable estimated market value of all taxable property in the county, excluding any 
35.35 	taxable property taxed by any city for the support of any free public library. When the tax 
36.1 	levy authorized in this section is collected, it shall be appropriated and credited to a debt 
36.2 	service fund for the bonds. The tax levy for the debt service fund under section 475.61 
36.3 	shall be reduced by the amount available or reasonably anticipated to be available in the 
36.4 	fund to make payments otherwise payable from the levy pursuant to section 475.61.

36.5 	Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:
36.6 	383E.23 LIBRARY TAX.
36.7 	The Anoka County Board may levy a tax of not more than .01 percent of the taxable
36.8 	 estimated market value of taxable property located within the county excluding any 
36.9 	taxable property taxed by any city for the support of any free public library, to acquire, 
36.10 	better, and construct county library buildings and to pay principal and interest on bonds 
36.11 	issued for that purpose. The tax shall be disregarded in the calculation of levies or limits 
36.12 	on levies provided by section 373.40, or other law.

36.13 	Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:
36.14 	385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
36.15 	When any order or warrant drawn on the treasurer is presented for payment, if there 
36.16 	is money in the treasury for that purpose, the county treasurer shall redeem the same, and 
36.17 	write across the entire face thereof the word "redeemed," the date of the redemption, and 
36.18 	the treasurer's official signature. If there is not sufficient funds in the proper accounts to 
36.19 	pay such orders they shall be numbered and registered in their order of presentation, 
36.20 	and proper endorsement thereof shall be made on such orders and they shall be entitled 
36.21 	to payment in like order. Such orders shall bear interest at not to exceed the rate of six 
36.22 	percent per annum from such date of presentment. The treasurer, as soon as there is 
36.23 	sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the 
36.24 	payment of the orders so presented and registered, and, if entitled to interest, issue to the 
36.25 	original holder a notice that interest will cease in 30 days from the date of such notice; and, 
36.26 	if orders thus entitled to priority of payment are not then presented, the next in order of 
36.27 	registry may be paid until such orders are presented. No interest shall be paid on any order, 
36.28 	except upon a warrant drawn by the county auditor for that purpose, giving the number 
36.29 	and the date of the order on account of which the interest warrant is drawn. In any county 
36.30 	in this state now or hereafter having a an estimated market value of all taxable property, 
36.31 	exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in 
36.32 	order to save payment of interest on county warrants drawn upon a fund in which there 
36.33 	shall be temporarily insufficient money in the treasury to redeem the same, may borrow 
36.34 	temporarily from any other fund in the county treasury in which there is a sufficient balance 
37.1 	to care for the needs of such fund and allow a temporary loan or transfer to any other fund, 
37.2 	and may pay such warrants out of such funds. Any such money so transferred and used in 
37.3 	redeeming such county warrants shall be returned to the fund from which drawn as soon 
37.4 	as money shall come in to the credit of such fund on which any such warrant was drawn 
37.5 	and paid as aforesaid. Any county operating on a cash basis may use a combined form of 
37.6 	warrant or order and check, which, when signed by the chair of the county board and by 
37.7 	the auditor, is an order or warrant for the payment of the claim, and, when countersigned 
37.8 	by the county treasurer, is a check for the payment of the amount thereof.

37.9 	Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
37.10 		Subdivision 1.Continuation of nonconformity; limitations. Except as provided in 
37.11 	subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land 
37.12 	or premises existing at the time of the adoption of an official control under this chapter, 
37.13 	may be continued, although the use or occupation does not conform to the official control. 
37.14 	If the nonconformity or occupancy is discontinued for a period of more than one year, or 
37.15 	any nonconforming building or structure is destroyed by fire or other peril to the extent of 
37.16 	50 percent of its estimated market value, any subsequent use or occupancy of the land or 
37.17 	premises shall be a conforming use or occupancy.

37.18 	Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
37.19 		Subd. 8.Taxation. Before deciding to exercise the power to tax, the authority shall 
37.20 	give six weeks' published notice in all municipalities in the region. If a number of voters 
37.21 	in the region equal to five percent of those who voted for candidates for governor at the 
37.22 	last gubernatorial election present a petition within nine weeks of the first published notice 
37.23 	to the secretary of state requesting that the matter be submitted to popular vote, it shall be 
37.24 	submitted at the next general election. The question prepared shall be:
37.25 	"Shall the regional rail authority have the power to impose a property tax?

37.26		Yes 
........		
37.27		No ........"
		
37.28 	If a majority of those voting on the question approve or if no petition is presented 
37.29 	within the prescribed time the authority may levy a tax at any annual rate not exceeding 
37.30 	0.04835 percent of estimated market value of all taxable property situated within the 
37.31 	municipality or municipalities named in its organization resolution. Its recording officer 
37.32 	shall file, on or before September 15, in the office of the county auditor of each county 
37.33 	in which territory under the jurisdiction of the authority is located a certified copy of the 
37.34 	board of commissioners' resolution levying the tax, and each county auditor shall assess 
38.1 	and extend upon the tax rolls of each municipality named in the organization resolution the 
38.2 	portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 
38.3 	taxable property in that municipality bears to the net tax capacity of taxable property in 
38.4 	all municipalities named in the organization resolution. Collections of the tax shall be 
38.5 	remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 
38.6 	the amount levied for light rail transit purposes under this subdivision shall not exceed 75 
38.7 	percent of the amount levied in 1990 for light rail transit purposes under this subdivision.

38.8 	Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
38.9 		Subd. 3.Leasing. (a) A county or joint powers board of a group of counties 
38.10 	which acquires or constructs and equips or improves facilities under this chapter may, 
38.11 	with the approval of the board of county commissioners of each county, enter into a 
38.12 	lease agreement with a city situated within any of the counties, or a county housing and 
38.13 	redevelopment authority established under chapter 469 or any special law. Under the lease 
38.14 	agreement, the city or county housing and redevelopment authority shall:
38.15 	(1) construct or acquire and equip or improve a facility in accordance with plans 
38.16 	prepared by or at the request of a county or joint powers board of the group of counties 
38.17 	and approved by the commissioner of corrections; and
38.18 	(2) finance the facility by the issuance of revenue bonds.
38.19 	(b) The county or joint powers board of a group of counties may lease the facility 
38.20 	site, improvements, and equipment for a term upon rental sufficient to produce revenue 
38.21 	for the prompt payment of the revenue bonds and all interest accruing on them. Upon 
38.22 	completion of payment, the lessee shall acquire title. The real and personal property 
38.23 	acquired for the facility constitutes a project and the lease agreement constitutes a revenue 
38.24 	agreement as provided in sections 469.152 to 469.165. All proceedings by the city or 
38.25 	county housing and redevelopment authority and the county or joint powers board shall be 
38.26 	as provided in sections 469.152 to 469.165, with the following adjustments:
38.27 	(1) no tax may be imposed upon the property;
38.28 	(2) the approval of the project by the commissioner of employment and economic 
38.29 	development is not required;
38.30 	(3) the Department of Corrections shall be furnished and shall record information 
38.31 	concerning each project as it may prescribe, in lieu of reports required on other projects to 
38.32 	the commissioner of employment and economic development;
38.33 	(4) the rentals required to be paid under the lease agreement shall not exceed in any 
38.34 	year one-tenth of one percent of the estimated market value of property within the county 
38.35 	or group of counties as last equalized before the execution of the lease agreement;
39.1 	(5) the county or group of counties shall provide for payment of all rentals due 
39.2 	during the term of the lease agreement in the manner required in subdivision 4;
39.3 	(6) no mortgage on the facilities shall be granted for the security of the bonds, but 
39.4 	compliance with clause (5) may be enforced as a nondiscretionary duty of the county 
39.5 	or group of counties; and
39.6 	(7) the county or the joint powers board of the group of counties may sublease any 
39.7 	part of the facilities for purposes consistent with their maintenance and operation.

39.8 	Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:
39.9 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
39.10 	(a) Notwithstanding any contrary provision of other law or charter, a home rule 
39.11 	charter city may, by resolution and without public referendum, issue capital notes subject 
39.12 	to the city debt limit to purchase capital equipment.
39.13 	(b) For purposes of this section, "capital equipment" means:
39.14 	(1) public safety equipment, ambulance and other medical equipment, road 
39.15 	construction and maintenance equipment, and other capital equipment; and
39.16 	(2) computer hardware and software, whether bundled with machinery or equipment 
39.17 	or unbundled.
39.18 	(c) The equipment or software must have an expected useful life at least as long 
39.19 	as the term of the notes.
39.20 	(d) The notes shall be payable in not more than ten years and be issued on terms 
39.21 	and in the manner the city determines. The total principal amount of the capital notes 
39.22 	issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of 
39.23 	taxable property in the city for that year.
39.24 	(e) A tax levy shall be made for the payment of the principal and interest on the 
39.25 	notes, in accordance with section 475.61, as in the case of bonds.
39.26 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of 
39.27 	the governing body of the city.
39.28 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
39.29 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
39.30 	limitations applicable to statutory cities pursuant to section 412.301.

39.31 	Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
39.32 		Subd. 2.Contracts. The council shall have power to make such contracts as may 
39.33 	be deemed necessary or desirable to make effective any power possessed by the council. 
39.34 	The city may purchase personal property through a conditional sales contract and real 
40.1 	property through a contract for deed under which contracts the seller is confined to the 
40.2 	remedy of recovery of the property in case of nonpayment of all or part of the purchase 
40.3 	price, which shall be payable over a period of not to exceed five years. When the contract 
40.4 	price of property to be purchased by contract for deed or conditional sales contract 
40.5 	exceeds 0.24177 percent of the estimated market value of the city, the city may not enter 
40.6 	into such a contract for at least ten days after publication in the official newspaper of a 
40.7 	council resolution determining to purchase property by such a contract; and, if before the 
40.8 	end of that time a petition asking for an election on the proposition signed by voters equal 
40.9 	to ten percent of the number of voters at the last regular city election is filed with the clerk, 
40.10 	the city may not enter into such a contract until the proposition has been approved by a 
40.11 	majority of the votes cast on the question at a regular or special election.

40.12 	Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:
40.13 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
40.14 	(a) The council may issue certificates of indebtedness or capital notes subject to the 
40.15 	city debt limits to purchase capital equipment.
40.16 	(b) For purposes of this section, "capital equipment" means:
40.17 	(1) public safety equipment, ambulance and other medical equipment, road 
40.18 	construction and maintenance equipment, and other capital equipment; and
40.19 	(2) computer hardware and software, whether bundled with machinery or equipment 
40.20 	or unbundled.
40.21 	(c) The equipment or software must have an expected useful life at least as long as 
40.22 	the terms of the certificates or notes.
40.23 	(d) Such certificates or notes shall be payable in not more than ten years and shall be 
40.24 	issued on such terms and in such manner as the council may determine.
40.25 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
40.26 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they 
40.27 	shall not be issued for at least ten days after publication in the official newspaper of 
40.28 	a council resolution determining to issue them; and if before the end of that time, a 
40.29 	petition asking for an election on the proposition signed by voters equal to ten percent 
40.30 	of the number of voters at the last regular municipal election is filed with the clerk, such 
40.31 	certificates or notes shall not be issued until the proposition of their issuance has been 
40.32 	approved by a majority of the votes cast on the question at a regular or special election.
40.33 	(f) A tax levy shall be made for the payment of the principal and interest on such 
40.34 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

41.1 	Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
41.2 		Subdivision 1.Ordinance. The governing body of a city may adopt an ordinance 
41.3 	establishing a special service district. Only property that is classified under section 273.13
41.4 	and used for commercial, industrial, or public utility purposes, or is vacant land zoned or 
41.5 	designated on a land use plan for commercial or industrial use and located in the special 
41.6 	service district, may be subject to the charges imposed by the city on the special service 
41.7 	district. Other types of property may be included within the boundaries of the special 
41.8 	service district but are not subject to the levies or charges imposed by the city on the 
41.9 	special service district. If 50 percent or more of the estimated market value of a parcel of 
41.10 	property is classified under section 273.13 as commercial, industrial, or vacant land zoned 
41.11 	or designated on a land use plan for commercial or industrial use, or public utility for the 
41.12 	current assessment year, then the entire taxable market value of the property is subject to a 
41.13 	service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. 
41.14 	The ordinance shall describe with particularity the area within the city to be included in 
41.15 	the district and the special services to be furnished in the district. The ordinance may not 
41.16 	be adopted until after a public hearing has been held on the question. Notice of the hearing 
41.17 	shall include the time and place of hearing, a map showing the boundaries of the proposed 
41.18 	district, and a statement that all persons owning property in the proposed district that 
41.19 	would be subject to a service charge will be given opportunity to be heard at the hearing. 
41.20 	Within 30 days after adoption of the ordinance under this subdivision, the governing body 
41.21 	shall send a copy of the ordinance to the commissioner of revenue.

41.22 	Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
41.23 		Subd. 2.Council approval; special tax levy limitation. The council shall receive 
41.24 	and consider the estimate required in subdivision 1 and the items of cost after notice and 
41.25 	hearing before it or its appropriate committee as it considers necessary or expedient, and 
41.26 	shall approve the estimate, with necessary amendments. The amounts of each item of cost 
41.27 	estimated are then appropriated to operate, maintain, and improve the pedestrian mall 
41.28 	during the next fiscal year. The amount of the special tax to be charged under subdivision 
41.29 	1, clause (3), must not, however, exceed 0.12089 percent of estimated market value of 
41.30 	taxable property in the district. The council shall make any necessary adjustment in costs of 
41.31 	operating and maintaining the district to keep the amount of the tax within this limitation.

41.32 	Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:
41.33 	447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
42.1 	The governing body of a city of the first class owning a hospital may annually levy 
42.2 	a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of 
42.3 	taxable estimated market value.

42.4 	Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:
42.5 	450.19 TOURIST CAMPING GROUNDS.
42.6 	A home rule charter or statutory city or town may establish and maintain public 
42.7 	tourist camping grounds. The governing body thereof may acquire by lease, purchase, or 
42.8 	gift, suitable lands located either within or without the corporate limits for use as public 
42.9 	tourist camping grounds and provide for the equipment, operation, and maintenance 
42.10 	of the same. The amount that may be expended for the maintenance, improvement, or 
42.11 	operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 
42.12 	percent of taxable estimated market value.

42.13 	Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:
42.14 	450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX 
42.15 	LEVY.
42.16 	After the acquisition of any museum, gallery, or school of arts or crafts, the board 
42.17 	of park commissioners of the city in which it is located shall cause to be included in the 
42.18 	annual tax levy upon all the taxable property of the county in which the museum, gallery, 
42.19 	or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. 
42.20 	The board shall certify the levy to the county auditor and it shall be added to, and collected 
42.21 	with and as part of, the general, real, and personal property taxes, with like penalties and 
42.22 	interest, in case of nonpayment and default, and all provisions of law in respect to the 
42.23 	levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in 
42.24 	respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be 
42.25 	paid to the city treasurer of the city in which is located the museum, gallery, or school 
42.26 	of arts or crafts and credited to a fund to be known as the park museum fund, and shall 
42.27 	be used only for the purposes specified in sections 450.23 to 450.25. Any part of the 
42.28 	proceeds of the levy not expended for the purposes specified in section 450.24 may be 
42.29 	used for the erection of new buildings for the same purposes.

42.30 	Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:
42.31 	458A.10 PROPERTY TAX.
43.1 	The commission shall annually levy a tax not to exceed 0.12089 percent of estimated 
43.2 	market value on all the taxable property in the transit area at a rate sufficient to produce 
43.3 	an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the 
43.4 	payment of principal and interest due on any revenue bonds issued pursuant to section 
43.5 	458A.05. Property taxes levied under this section shall be certified by the commission to 
43.6 	the county auditors of the transit area, extended, assessed, and collected in the manner 
43.7 	provided by law for the property taxes levied by the governing bodies of cities. The 
43.8 	proceeds of the taxes levied under this section shall be remitted by the respective county 
43.9 	treasurers to the treasurer of the commission, who shall credit the same to the funds of 
43.10 	the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any 
43.11 	applicable pledges or limitations on account of tax anticipation certificates or other 
43.12 	specific purposes. At any time after making a tax levy under this section and certifying 
43.13 	it to the county auditors, the commission may issue general obligation certificates of 
43.14 	indebtedness in anticipation of the collection of the taxes as provided by section 412.261.

43.15 	Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
43.16 		Subdivision 1.Levy limit. Notwithstanding anything to the contrary contained in 
43.17 	the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, 
43.18 	limiting the amount levied in any one year for general or special purposes, the city council 
43.19 	of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 
43.20 	percent of taxable estimated market value, by ordinance. An ordinance fixing the levy 
43.21 	shall take effect immediately upon its passage and approval. The proceeds of the levy 
43.22 	shall be paid into the city treasury and deposited in the operating fund provided for in 
43.23 	section 458A.24, subdivision 3.

43.24 	Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:
43.25 	465.04 ACCEPTANCE OF GIFTS.
43.26 	Cities of the second, third, or fourth class, having at any time a an estimated
43.27 	 market value of not more than $41,000,000, exclusive of money and credits, as officially 
43.28 	equalized by the commissioner of revenue, either under home rule charter or under the 
43.29 	laws of this state, in addition to all other powers possessed by them, hereby are authorized 
43.30 	and empowered to receive and accept gifts and donations for the use and benefit of 
43.31 	such cities and the inhabitants thereof upon terms and conditions to be approved by the 
43.32 	governing bodies of such cities; and such cities are authorized to comply with and perform 
43.33 	such terms and conditions, which may include payment to the donor or donors of interest 
44.1 	on the value of the gift at not exceeding five percent per annum payable annually or 
44.2 	semiannually, during the remainder of the natural life or lives of such donor or donors.

44.3 	Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
44.4 		Subd. 6.Operation area as taxing district, special tax. All of the territory included 
44.5 	within the area of operation of any authority shall constitute a taxing district for the 
44.6 	purpose of levying and collecting special benefit taxes as provided in this subdivision. All 
44.7 	of the taxable property, both real and personal, within that taxing district shall be deemed 
44.8 	to be benefited by projects to the extent of the special taxes levied under this subdivision. 
44.9 	Subject to the consent by resolution of the governing body of the city in and for which 
44.10 	it was created, an authority may levy a tax upon all taxable property within that taxing 
44.11 	district. The tax shall be extended, spread, and included with and as a part of the general 
44.12 	taxes for state, county, and municipal purposes by the county auditor, to be collected and 
44.13 	enforced therewith, together with the penalty, interest, and costs. As the tax, including any 
44.14 	penalties, interest, and costs, is collected by the county treasurer it shall be accumulated 
44.15 	and kept in a separate fund to be known as the "housing and redevelopment project fund." 
44.16 	The money in the fund shall be turned over to the authority at the same time and in the same 
44.17 	manner that the tax collections for the city are turned over to the city, and shall be expended 
44.18 	only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers 
44.19 	signed by the chair of the authority or an authorized representative. The amount of the 
44.20 	levy shall be an amount approved by the governing body of the city, but shall not exceed 
44.21 	0.0185 percent of taxable estimated market value. The authority shall each year formulate 
44.22 	and file a budget in accordance with the budget procedure of the city in the same manner as 
44.23 	required of executive departments of the city or, if no budgets are required to be filed, by 
44.24 	August 1. The amount of the tax levy for the following year shall be based on that budget.

44.25 	Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
44.26 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the 
44.27 	general obligation of the general jurisdiction governmental unit as additional security for 
44.28 	bonds payable from income or revenues of the project or the authority. The authority 
44.29 	must find that the pledged revenues will equal or exceed 110 percent of the principal and 
44.30 	interest due on the bonds for each year. The proceeds of the bonds must be used for a 
44.31 	qualified housing development project or projects. The obligations must be issued and 
44.32 	sold in the manner and following the procedures provided by chapter 475, except the 
44.33 	obligations are not subject to approval by the electors, and the maturities may extend to 
44.34 	not more than 35 years for obligations sold to finance housing for the elderly and 40 years 
45.1 	for other obligations issued under this subdivision. The authority is the municipality for 
45.2 	purposes of chapter 475.
45.3 	(b) The principal amount of the issue must be approved by the governing body of 
45.4 	the general jurisdiction governmental unit whose general obligation is pledged. Public 
45.5 	hearings must be held on issuance of the obligations by both the authority and the general 
45.6 	jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 
45.7 	than 120 days, before the sale of the obligations.
45.8 	(c) The maximum amount of general obligation bonds that may be issued and 
45.9 	outstanding under this section equals the greater of (1) one-half of one percent of the 
45.10 	taxable estimated market value of the general jurisdiction governmental unit whose 
45.11 	general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty 
45.12 	general obligation bonds, the outstanding general obligation bonds of all cities in the 
45.13 	county or counties issued under this subdivision must be added in calculating the limit 
45.14 	under clause (1).
45.15 	(d) "General jurisdiction governmental unit" means the city in which the housing 
45.16 	development project is located. In the case of a county or multicounty authority, the 
45.17 	county or counties may act as the general jurisdiction governmental unit. In the case of 
45.18 	a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 
45.19 	taxable property in each of the counties.
45.20 	(e) "Qualified housing development project" means a housing development project 
45.21 	providing housing either for the elderly or for individuals and families with incomes not 
45.22 	greater than 80 percent of the median family income as estimated by the United States 
45.23 	Department of Housing and Urban Development for the standard metropolitan statistical 
45.24 	area or the nonmetropolitan county in which the project is located. The project must be 
45.25 	owned for the term of the bonds either by the authority or by a limited partnership or other 
45.26 	entity in which the authority or another entity under the sole control of the authority is 
45.27 	the sole general partner and the partnership or other entity must receive (1) an allocation 
45.28 	from the Department of Management and Budget or an entitlement issuer of tax-exempt 
45.29 	bonding authority for the project and a preliminary determination by the Minnesota 
45.30 	Housing Finance Agency or the applicable suballocator of tax credits that the project 
45.31 	will qualify for four percent low-income housing tax credits or (2) a reservation of nine 
45.32 	percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 
45.33 	suballocator of tax credits for the project. A qualified housing development project may 
45.34 	admit nonelderly individuals and families with higher incomes if:
45.35 	(1) three years have passed since initial occupancy;
46.1 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
46.2 	insufficient revenues, because of changes in population or other unforeseen circumstances 
46.3 	that occurred after the initial finding of adequate revenues; and
46.4 	(3) the authority finds a tax levy or payment from general assets of the general 
46.5 	jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 
46.6 	income individuals or families are not admitted.
46.7 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
46.8 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
46.9 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
46.10 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 
46.11 	after July 1, 1992.

46.12 	Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
46.13 		Subd. 4.Mandatory city levy. A city shall, at the request of the port authority, levy 
46.14 	a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 
46.15 	percent of taxable estimated market value. The amount levied must be paid by the city 
46.16 	treasurer to the treasurer of the port authority, to be spent by the authority.

46.17 	Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
46.18 		Subd. 4a.Seaway port authority levy. A levy made under this subdivision shall 
46.19 	replace the mandatory city levy under subdivision 4. A seaway port authority is a special 
46.20 	taxing district under section 275.066 and may levy a tax in any year for the benefit of the 
46.21 	seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated
46.22 	 market value. The county auditor shall distribute the proceeds of the property tax levy to 
46.23 	the seaway port authority.

46.24 	Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
46.25 		Subd. 6.Discretionary city levy. Upon request of a port authority, the port 
46.26 	authority's city may levy a tax to be spent by and for its port authority. The tax must 
46.27 	enable the port authority to carry out efficiently and in the public interest sections 469.048
46.28 	to 469.068 to create and develop industrial development districts. The levy must not be 
46.29 	more than 0.00282 percent of taxable estimated market value. The county treasurer shall 
46.30 	pay the proceeds of the tax to the port authority treasurer. The money may be spent by 
46.31 	the authority in performance of its duties to create and develop industrial development 
46.32 	districts. In spending the money the authority must judge what best serves the public 
46.33 	interest. The levy in this subdivision is in addition to the levy in subdivision 4.

47.1 	Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
47.2 		Subdivision 1.City tax levy. A city may, at the request of the authority, levy a tax in 
47.3 	any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 
47.4 	taxable estimated market value. The amount levied must be paid by the city treasurer to 
47.5 	the treasurer of the authority, to be spent by the authority.

47.6 	Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
47.7 		Subd. 2.Tax levies. Notwithstanding any law, the county board of any county may 
47.8 	appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 
47.9 	percent of taxable estimated market value to carry out the purposes of this section.

47.10 	Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:
47.11 	469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY 
47.12 	BOARD.
47.13 	Any city of the first class may expend money for city publicity purposes. The city may 
47.14 	levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The proceeds 
47.15 	of the levy shall be expended in the manner and for the city publicity purposes the council 
47.16 	directs. The council may establish and provide for a publicity board or bureau to administer 
47.17 	the fund, subject to the conditions and limitations the council prescribes by ordinance.

47.18 	Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:
47.19 	469.206 HAZARDOUS PROPERTY PENALTY.
47.20 	A city may assess a penalty up to one percent of the estimated market value of 
47.21 	real property, including any building located within the city that the city determines to 
47.22 	be hazardous as defined in section 463.15, subdivision 3. The city shall send a written 
47.23 	notice to the address to which the property tax statement is sent at least 90 days before it 
47.24 	may assess the penalty. If the owner of the property has not paid the penalty or fixed the 
47.25 	property within 90 days after receiving notice of the penalty, the penalty is considered 
47.26 	delinquent and is increased by 25 percent each 60 days the penalty is not paid and the 
47.27 	property remains hazardous. For the purposes of this section, a penalty that is delinquent 
47.28 	is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the 
47.29 	same manner as delinquent property taxes.

48.1 	Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:
48.2 	471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF 
48.3 	CEMETERY.
48.4 	Where a statutory city or town owns and maintains an established cemetery or burial 
48.5 	ground, either within or without the municipal limits, the statutory city or town may, by 
48.6 	mutual agreement with contiguous statutory cities and towns, each having a an estimated
48.7 	 market value of not less than $2,000,000, join together in the maintenance of such public 
48.8 	cemetery or burial ground for the use of the inhabitants of each of such municipalities; and 
48.9 	each such municipality is hereby authorized, by action of its council or governing body, 
48.10 	to levy a tax or make an appropriation for the annual support and maintenance of such 
48.11 	cemetery or burial ground; provided, the amount thus appropriated by each municipality 
48.12 	shall not exceed a total of $10,000 in any one year.

48.13 	Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
48.14 		Subdivision 1.Application. This section applies to each city in which the net tax 
48.15 	capacity of real and personal property consists in part of iron ore or lands containing 
48.16 	taconite or semitaconite and in which the total taxable estimated market value of real 
48.17 	and personal property exceeds $2,500,000.

48.18 	Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
48.19 		Subd. 2.Creation of fund, tax levy. The governing body of the city may create a 
48.20 	permanent improvement and replacement fund to be maintained by an annual tax levy. 
48.21 	The governing body may levy a tax in excess of any charter limitation for the support of 
48.22 	the permanent improvement and replacement fund, but not exceeding the following:
48.23 	(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 
48.24 	per capita or 0.08059 percent of taxable estimated market value;
48.25 	(b) in cities having a population of more than 500 and less than 2500 2,500, the 
48.26 	greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable
48.27 	 estimated market value;
48.28 	(c) in cities having a population of more than 2500 2,500 or more inhabitants, 
48.29 	the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable
48.30 	 estimated market value.

48.31 	Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:
48.32 	471.73 ACCEPTANCE OF PROVISIONS.
49.1 	In the case of any city within the class specified in section471.72 having a an 
49.2 	estimated market value, as defined in section 471.72, in excess of $37,000,000; and in the 
49.3 	case of any statutory city within such class having a an estimated market value, as defined 
49.4 	in section 471.72, of less than $5,000,000; and in the case of any statutory city within such 
49.5 	class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in 
49.6 	the case of any statutory city within such class which is governed by Laws 1929, chapter 
49.7 	208, and has a an estimated market value of less than $83,000,000; and in the case of 
49.8 	any school district within such class having a an estimated market value, as defined in 
49.9 	section 471.72, of more than $54,000,000; and in the case of all towns within said class; 
49.10 	sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the 
49.11 	board of the school district, or the town board of the town shall have adopted a resolution 
49.12 	determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go 
49.13 	upon a cash basis in accordance with the provisions thereof.

49.14 	Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
49.15 		Subd. 2.Chapter 475 applies; exceptions. The Metropolitan Council shall sell and 
49.16 	issue the bonds in the manner provided in chapter 475, and shall have the same powers 
49.17 	and duties as a municipality issuing bonds under that law, except that the approval of a 
49.18 	majority of the electors shall not be required and the net debt limitations shall not apply. 
49.19 	The terms of each series of bonds shall be fixed so that the amount of principal and interest 
49.20 	on all outstanding and undischarged bonds, together with the bonds proposed to be issued, 
49.21 	due in any year shall not exceed 0.01209 percent of estimated market value of all taxable 
49.22 	property in the metropolitan area as last finally equalized prior to a proposed issue. The 
49.23 	bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes 
49.24 	required for their payment shall be levied by the council, shall not affect the amount or rate 
49.25 	of taxes which may be levied by the council for other purposes, shall be spread against all 
49.26 	taxable property in the metropolitan area and shall not be subject to limitation as to rate or 
49.27 	amount. Any taxes certified by the council to the county auditors for collection shall be 
49.28 	reduced by the amount received by the council from the commissioner of management and 
49.29 	budget or the federal government for the purpose of paying the principal and interest on 
49.30 	bonds to which the levy relates. The council shall certify the fact and amount of all money 
49.31 	so received to the county auditors, and the auditors shall reduce the levies previously made 
49.32 	for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.

50.1 	Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:
50.2 	473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL 
50.3 	DISTRICTS.
50.4 	As to any lands to be detached from any school district under the provisions hereof
50.5 	 section 473.625, notwithstanding such prospective the detachment, the estimated market 
50.6 	value of such the detached lands and the net tax capacity of taxable properties now located 
50.7 	therein or thereon shall be and on the lands on the date of the detachment constitute 
50.8 	from and after the date of the enactment hereof a part of the estimated market value of 
50.9 	properties upon the basis of which such used to calculate the net debt limit of the school 
50.10 	district may issue its bonds,. The value of such the lands for such purpose to be and other 
50.11 	taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of 
50.12 	the estimated market value thereof as determined and certified by said the assessor to said
50.13 	 the school district, and it shall be the duty of such the assessor annually on or before the 
50.14 	tenth day of October from and after the passage hereof, to so of each year, shall determine 
50.15 	and certify that value; provided, however, that the value of such the detached lands and 
50.16 	such taxable properties shall never exceed 20 percent of the estimated market value of 
50.17 	all properties constituting and making up the basis aforesaid used to calculate the net 
50.18 	debt limit of the school district.

50.19 	Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
50.20 		Subd. 3.Levy limit. In any budget certified by the commissioners under this section, 
50.21 	the amount included for operation and maintenance shall not exceed an amount which, 
50.22 	when extended against the property taxable therefor under section 473.621, subdivision 5, 
50.23 	will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by 
50.24 	the corporation shall not affect the amount or rate of taxes which may be levied by any other 
50.25 	local government unit within the metropolitan area under the provisions of any charter.

50.26 	Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
50.27 		Subd. 9.Additional taxes. Nothing herein shall prevent the commission from 
50.28 	levying a tax not to exceed 0.00121 percent of estimated market value on taxable property 
50.29 	within its taxing jurisdiction, in addition to any levies found necessary for the debt 
50.30 	service fund authorized by section 473.671. Nothing herein shall prevent the levy and 
50.31 	appropriation for purposes of the commission of any other tax on property or on any 
50.32 	income, transaction, or privilege, when and if authorized by law. All collections of any 
50.33 	taxes so levied shall be included in the revenues appropriated for the purposes referred 
50.34 	to in this section, unless otherwise provided in the law authorizing the levies; but no 
51.1 	covenant as to the continuance or as to the rate and amount of any such levy shall be made 
51.2 	with the holders of the commission's bonds unless specifically authorized by law.

51.3 	Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:
51.4 	473.671 LIMIT OF TAX LEVY.
51.5 	The taxes levied against the property of the metropolitan area in any one year shall 
51.6 	not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied 
51.7 	to pay the principal or interest on any bonds or indebtedness of the city issued under 
51.8 	Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for 
51.9 	payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 
51.10 	500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the 
51.11 	maximum rate allowed to be levied to defray the cost of government under the provisions 
51.12 	of the charter of any city affected by Laws 1943, chapter 500.

51.13 	Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
51.14 		Subd. 2a.Tax levy. (a) The commission may levy a tax on all taxable property in the 
51.15 	district as defined in section 473.702 to provide funds for the purposes of sections 473.701
51.16 	to 473.716. The tax shall not exceed the property tax levy limitation determined in this 
51.17 	subdivision. A participating county may agree to levy an additional tax to be used by the 
51.18 	commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and 
51.19 	commission's taxes may not exceed the county's proportionate share of the property tax levy 
51.20 	limitation determined under this subdivision based on the ratio of its total net tax capacity 
51.21 	to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 
51.22 	3. The auditor of each county in the district shall add the amount of the levy made by the 
51.23 	district to other taxes of the county for collection by the county treasurer with other taxes. 
51.24 	When collected, the county treasurer shall make settlement of the tax with the district in 
51.25 	the same manner as other taxes are distributed to political subdivisions. No county shall 
51.26 	levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control 
51.27 	except under this section. The levy shall be in addition to other taxes authorized by law.
51.28 	(b) The property tax levied by the Metropolitan Mosquito Control Commission shall 
51.29 	not exceed the product of (i) the commission's property tax levy limitation for the previous 
51.30 	year determined under this subdivision multiplied by (ii) an index for market valuation 
51.31 	changes equal to the total estimated market valuation value of all taxable property for the 
51.32 	current tax payable year located within the district plus any area that has been added to the 
51.33 	district since the previous year, divided by the total estimated market valuation value of all 
51.34 	taxable property located within the district for the previous taxes payable year.
52.1 	(c) For the purpose of determining the commission's property tax levy limitation 
52.2 	under this subdivision, "total market valuation" means the total market valuation of all 
52.3 	taxable property within the district without valuation adjustments for fiscal disparities 
52.4 	(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage 
52.5 	transmission lines (section 273.425).

52.6 	Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
52.7 		Subd. 12.Adjusted market value. "Adjusted market value" of real and personal 
52.8 	property within a municipality means the assessor's estimated taxable market value, 
52.9 	as defined in section 272.03, of all real and personal property, including the value of 
52.10 	manufactured housing, within the municipality, adjusted for sales ratios in a manner 
52.11 	similar to the adjustments made to city and town net tax capacities. For purposes 
52.12 	of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make 
52.13 	determinations and reports with respect to each municipality which are comparable to 
52.14 	those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same 
52.15 	manner and at the same times as are prescribed by the subdivisions. The commissioner 
52.16 	of revenue shall annually determine, for each municipality, information comparable to 
52.17 	that required by section 475.53, subdivision 4, for school districts, as soon as practicable 
52.18 	after it becomes available. The commissioner of revenue shall then compute the equalized 
52.19 	market value of property within each municipality using the aggregate sales ratios from 
52.20 	the Department of Revenue's sales ratio study.

52.21 	Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
52.22 		Subd. 14.Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
52.23 	 adjusted market value, determined as of January 2 of any year, divided by its population, 
52.24 	determined as of a date in the same year.

52.25 	Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
52.26 		Subd. 15.Average fiscal capacity. "Average fiscal capacity" of municipalities 
52.27 	means the sum of the valuations adjusted market values of all municipalities, determined 
52.28 	as of January 2 of any year, divided by the sum of their populations, determined as of 
52.29 	a date in the same year.

52.30 	Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
52.31 		Subd. 23.Net tax capacity. "Net tax capacity" means the taxable market value of 
52.32 	real and personal property multiplied by its net tax capacity rates in section 273.13.

53.1 	Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
53.2 		Subd. 10.Adjustment of value or net tax capacity. For the purpose of computing 
53.3 	the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any 
53.4 	provision of any law or charter, where such authorization, requirement, or limitation 
53.5 	is related in any manner to any value or valuation of taxable property within any 
53.6 	governmental unit, such value or net tax capacity fiscal capacity under section 473F.02, 
53.7 	subdivision 14, a municipality's taxable market value shall be adjusted to reflect the 
53.8 	adjustments reductions to net tax capacity effected by subdivision 2, clause (a), provided 
53.9 	that: (1) in determining the taxable market value of commercial-industrial property 
53.10 	or any class thereof within a governmental unit for any purpose other than section 
53.11 	473F.07 municipality, (a) the reduction required by this subdivision shall be that amount 
53.12 	which bears the same proportion to the amount subtracted from the governmental unit's
53.13 	 municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable 
53.14 	market value of commercial-industrial property, or such class thereof, located within the 
53.15 	governmental unit municipality bears to the net tax capacity of commercial-industrial 
53.16 	property, or such class thereof, located within the governmental unit, and (b) the increase 
53.17 	required by this subdivision shall be that amount which bears the same proportion to 
53.18 	the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, 
53.19 	clause (b), as the market value of commercial-industrial property, or such class thereof, 
53.20 	located within the governmental unit bears to the net tax capacity of commercial-industrial 
53.21 	property, or such class thereof, located within the governmental unit; and (2) in determining 
53.22 	the market value of real property within a municipality for purposes of section 473F.07, 
53.23 	the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by 
53.24 	clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to 
53.25 	taxable market value for the increase in net tax capacity under subdivision 2, clause (b).

53.26 	Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
53.27 		Subd. 4.Limitations on amount. A municipality may not issue bonds under this 
53.28 	section if the maximum amount of principal and interest to become due in any year on 
53.29 	all the outstanding bonds issued under this section, including the bonds to be issued, 
53.30 	will equal or exceed 0.16 percent of the taxable estimated market value of property 
53.31 	in the municipality. Calculation of the limit must be made using the taxable estimated
53.32 	 market value for the taxes payable year in which the obligations are issued and sold. In 
53.33 	the case of a municipality with a population of 2,500 or more, the bonds are subject to 
53.34 	the net debt limits under section 475.53. In the case of a shared facility in which more 
53.35 	than one municipality participates, upon compliance by each participating municipality 
54.1 	with the requirements of subdivision 2, the limitations in this subdivision and the net debt 
54.2 	represented by the bonds shall be allocated to each participating municipality in proportion 
54.3 	to its required financial contribution to the financing of the shared facility, as set forth in 
54.4 	the joint powers agreement relating to the shared facility. This section does not limit the 
54.5 	authority to issue bonds under any other special or general law.

54.6 	Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
54.7 		Subdivision 1.Generally. Except as otherwise provided in sections 475.51 to 
54.8 	475.74, no municipality, except a school district or a city of the first class, shall incur or be 
54.9 	subject to a net debt in excess of three percent of the estimated market value of taxable 
54.10 	property in the municipality.

54.11 	Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
54.12 		Subd. 3.Cities first class. Unless its charter permits a greater net debt a city of 
54.13 	the first class may not incur a net debt in excess of two percent of the estimated market 
54.14 	value of all taxable property therein. If the charter of the city permits a net debt of the city 
54.15 	in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 
54.16 	percent of the estimated market value of the taxable property therein.
54.17 	The county auditor, at the time of preparing the tax list of the city, shall compile a 
54.18 	statement setting forth the total net tax capacity and the total estimated market value of 
54.19 	each class of taxable property in such city for such year.

54.20 	Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
54.21 		Subd. 4.School districts. Except as otherwise provided by law, no school district 
54.22 	shall be subject to a net debt in excess of 15 percent of the actual estimated market value of 
54.23 	all taxable property situated within its corporate limits, as computed in accordance with this 
54.24 	subdivision. The county auditor of each county containing taxable real or personal property 
54.25 	situated within any school district shall certify to the district upon request the estimated 
54.26 	market value of all such property. Whenever the commissioner of revenue, in accordance 
54.27 	with section 127A.48, subdivisions 1 to 6, has determined that the net tax capacity of any 
54.28 	district furnished by county auditors is not based upon the adjusted market value of taxable 
54.29 	property in the district exceeds the estimated market value of property within the district, 
54.30 	the commissioner of revenue shall certify to the district upon request the ratio most recently 
54.31 	ascertained to exist between such the estimated market value and the actual adjusted
54.32 	 market value of property within the district., and the actual market value of property 
54.33 	within a district, on which its debt limit under this subdivision is will be based, is (a) the 
55.1 	value certified by the county auditors, or (b) this on the estimated market value divided by 
55.2 	the ratio certified by the commissioner of revenue, whichever results in a higher value.

55.3 	Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
55.4 		Subd. 2.Funding, refunding. Any county, city, town, or school district whose 
55.5 	outstanding gross debt, including all items referred to in section 475.51, subdivision 
55.6 	4, exceed in amount 1.62 percent of its estimated market value may issue bonds under 
55.7 	this subdivision for the purpose of funding or refunding such indebtedness or any part 
55.8 	thereof. A list of the items of indebtedness to be funded or refunded shall be made by the 
55.9 	recording officer and treasurer and filed in the office of the recording officer. The initial 
55.10 	resolution of the governing body shall refer to this subdivision as authority for the issue, 
55.11 	state the amount of bonds to be issued and refer to the list of indebtedness to be funded or 
55.12 	refunded. This resolution shall be published once each week for two successive weeks 
55.13 	in a legal newspaper published in the municipality or if there be no such newspaper, in 
55.14 	a legal newspaper published in the county seat. Such bonds may be issued without the 
55.15 	submission of the question of their issue to the electors unless within ten days after the 
55.16 	second publication of the resolution a petition requesting such election signed by ten or 
55.17 	more voters who are taxpayers of the municipality, shall be filed with the recording officer. 
55.18 	In event such petition is filed, no bonds shall be issued hereunder unless authorized by a 
55.19 	majority of the electors voting on the question.

55.20 	Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
55.21 		Subdivision 1.May purchase these bonds; conditions. Obligations sold under the 
55.22 	provisions of section 475.60 may be purchased by the State Board of Investment if the 
55.23 	obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of 
55.24 	the attorney general as to form and execution of the application therefor, and under rules 
55.25 	as the board may specify, and the state board shall have authority to purchase the same 
55.26 	to an amount not exceeding 3.63 percent of the estimated market value of the taxable 
55.27 	property of the municipality, according to the last preceding assessment. The obligations 
55.28 	shall not run for a shorter period than one year, nor for a longer period than 30 years and 
55.29 	shall bear interest at a rate to be fixed by the state board but not less than two percent per 
55.30 	annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by 
55.31 	virtue thereof, the commissioner of management and budget shall certify to the respective 
55.32 	auditors of the various counties wherein are situated the municipalities issuing the same, 
55.33 	the number, denomination, amount, rate of interest and date of maturity of each obligation.

56.1 	Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to 
56.2 	read:
56.3 		Subd. 20.City net tax capacity. "City net tax capacity" means (1) the net tax 
56.4 	capacity computed using the net tax capacity rates in section 273.13 for taxes payable 
56.5 	in the year of the aid distribution, and the market values, after the exclusion in section 
56.6 	273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) 
56.7 	a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, 
56.8 	paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior 
56.9 	to that for which aids are being calculated. The market value utilized in computing city 
56.10 	net tax capacity shall be reduced by the sum of (1) a city's market value of commercial 
56.11 	industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, 
56.12 	multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph 
56.13 	(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value 
56.14 	of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) 
56.15 	the market value of transmission lines deducted from a city's total net tax capacity under 
56.16 	section 273.425. The city net tax capacity will be computed using equalized market values
56.17 	 the city's adjusted net tax capacity under section 273.1325.

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

56.19 	Sec. 106. Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to 
56.20 	read:
56.21 		Subd. 32.Commercial industrial percentage. "Commercial industrial percentage" 
56.22 	for a city is 100 times the sum of the estimated market values of all real property in the 
56.23 	city classified as class 3 under section 273.13, subdivision 24, excluding public utility 
56.24 	property, to the total estimated market value of all taxable real and personal property in 
56.25 	the city. The estimated market values are the amounts computed before any adjustments 
56.26 	for fiscal disparities under section 276A.06 or 473F.08. The estimated market values 
56.27 	used for this subdivision are not equalized.

56.28 	EFFECTIVE DATE. This section is effective for aids payable in 2014 and thereafter.

56.29 	Sec. 107. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to 
56.30 	read:
56.31 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms 
56.32 	have the meanings given them.
57.1 	(b) "County program aid" means the sum of "county need aid," "county tax base 
57.2 	equalization aid," and "county transition aid."
57.3 	(c) "Age-adjusted population" means a county's population multiplied by the county 
57.4 	age index.
57.5 	(d) "County age index" means the percentage of the population over age 65 within 
57.6 	the county divided by the percentage of the population over age 65 within the state, except 
57.7 	that the age index for any county may not be greater than 1.8 nor less than 0.8.
57.8 	(e) "Population over age 65" means the population over age 65 established as of 
57.9 	July 15 in an aid calculation year by the most recent federal census, by a special census 
57.10 	conducted under contract with the United States Bureau of the Census, by a population 
57.11 	estimate made by the Metropolitan Council, or by a population estimate of the state 
57.12 	demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 
57.13 	date of the count or estimate for the preceding calendar year and which has been certified 
57.14 	to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 
57.15 	to an estimate or count is effective for these purposes only if certified to the commissioner 
57.16 	on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 
57.17 	estimates and counts established as of July 15 in the aid calculation year are subject to 
57.18 	correction within the time periods allowed under section 477A.014.
57.19 	(f) "Part I crimes" means the three-year average annual number of Part I crimes 
57.20 	reported for each county by the Department of Public Safety for the most recent years 
57.21 	available. By July 1 of each year, the commissioner of public safety shall certify to the 
57.22 	commissioner of revenue the number of Part I crimes reported for each county for the 
57.23 	three most recent calendar years available.
57.24 	(g) "Households receiving food stamps" means the average monthly number of 
57.25 	households receiving food stamps for the three most recent years for which data is 
57.26 	available. By July 1 of each year, the commissioner of human services must certify to the 
57.27 	commissioner of revenue the average monthly number of households in the state and in 
57.28 	each county that receive food stamps, for the three most recent calendar years available.
57.29 	(h) "County net tax capacity" means the net tax capacity of the county, computed 
57.30 	analogously to city net tax capacity under section 477A.011, subdivision 20 county's 
57.31 	adjusted net tax capacity under section 273.1325.

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

57.33 	Sec. 108. Minnesota Statutes 2012, section 641.23, is amended to read:
57.34 	641.23 FUNDS; HOW PROVIDED.
58.1 	Before any contract is made for the erection of a county jail, sheriff's residence, or 
58.2 	both, the county board shall either levy a sufficient tax to provide the necessary funds, or 
58.3 	issue county bonds therefor in accordance with the provisions of chapter 475, provided 
58.4 	that no election is required if the amount of all bonds issued for this purpose and interest 
58.5 	on them which are due and payable in any year does not exceed an amount equal to 
58.6 	0.09671 percent of estimated market value of taxable property within the county, as last 
58.7 	determined before the bonds are issued.

58.8 	Sec. 109. Minnesota Statutes 2012, section 641.24, is amended to read:
58.9 	641.24 LEASING.
58.10 	The county may, by resolution of the county board, enter into a lease agreement with 
58.11 	any statutory or home rule charter city situated within the county, or a county housing and 
58.12 	redevelopment authority established pursuant to chapter 469 or any special law whereby 
58.13 	the city or county housing and redevelopment authority will construct a jail or other law 
58.14 	enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the 
58.15 	sheriff and other law enforcement agencies, in accordance with plans prepared by or at 
58.16 	the request of the county board and, when required, approved by the commissioner of 
58.17 	corrections and will finance it by the issuance of revenue bonds, and the county may lease 
58.18 	the site and improvements for a term and upon rentals sufficient to produce revenue for the 
58.19 	prompt payment of the bonds and all interest accruing thereon and, upon completion of 
58.20 	payment, will acquire title thereto. The real and personal property acquired for the jail 
58.21 	shall constitute a project and the lease agreement shall constitute a revenue agreement 
58.22 	as contemplated in chapter 469, and all proceedings shall be taken by the city or county 
58.23 	housing and redevelopment authority and the county in the manner and with the force and 
58.24 	effect provided in chapter 469; provided that:
58.25 	(1) no tax shall be imposed upon or in lieu of a tax upon the property;
58.26 	(2) the approval of the project by the commissioner of commerce shall not be required;
58.27 	(3) the Department of Corrections shall be furnished and shall record such 
58.28 	information concerning each project as it may prescribe;
58.29 	(4) the rentals required to be paid under the lease agreement shall not exceed in any 
58.30 	year one-tenth of one percent of the estimated market value of property within the county, 
58.31 	as last finally equalized before the execution of the agreement;
58.32 	(5) the county board shall provide for the payment of all rentals due during the term 
58.33 	of the lease, in the manner required in section 641.264, subdivision 2;
59.1 	(6) no mortgage on the property shall be granted for the security of the bonds, but 
59.2 	compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the 
59.3 	county board; and
59.4 	(7) the county board may sublease any part of the jail property for purposes consistent 
59.5 	with the maintenance and operation of a county jail or other law enforcement facility.

59.6 	Sec. 110. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision 
59.7 	to read:
59.8 		Subd. 20.Estimated market value. When used in determining or calculating a 
59.9 	limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or 
59.10 	capital note issuance by or for a local government unit, "estimated market value" has the 
59.11 	meaning given in section 273.032.

59.12 	Sec. 111. REVISOR'S INSTRUCTION.
 59.13 	The revisor of statutes shall recodify Minnesota Statutes, section 127.48, 
59.14 	subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all 
59.15 	cross-references to the affected subdivisions accordingly.

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

59.17 	Sec. 112.  REPEALER.
 59.18 	Minnesota Statutes 2012, sections 273.11, subdivision 1a; 276A.01, subdivision 11; 
59.19 	473F.02, subdivision 13; and 477A.011, subdivision 21, are repealed.

59.20 	Sec. 113. EFFECTIVE DATE.
 59.21 	Unless otherwise specifically provided, this act is effective the day following final 
59.22 	enactment for purposes of limits on net debt, the issuance of bonds, certificates of 
59.23 	indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for 
59.24 	all other purposes.