HF 603

1st Committee Engrossment - 90th Legislature (2017 - 2018)

Posted on 03/22/2017 10:16 a.m.

1.1A bill for an act 1.2relating to taxation; property and local government; modifying provisions related 1.3to property taxes; taxpayer empowerment; aids, credits, and refunds; in perpetuity 1.4payments on land purchases; tax increment financing; local option sales taxes; 1.5public finance; and miscellaneous tax provisions; modifying property tax 1.6exemptions, classifications, and refunds; allowing a reverse referendum for property 1.7tax levies under certain circumstances; establishing school building bond 1.8agricultural tax credit; modifying state general levy; modifying certain local 1.9government aids; authorizing certain tax increment financing authority; prohibiting 1.10municipalities from taxing paper or plastic bags; modifying county levy authority; 1.11authorizing certain local taxes; restricting rail project expenditures; modifying 1.12provisions related to taconite; repealing political contribution refund; making 1.13technical and conforming changes; requiring a report;amending Minnesota Statutes 1.142016, sections 40A.18, subdivision 2; 97A.056, subdivisions 1a, 3, by adding 1.15subdivisions; 116P.02, subdivision 1, by adding subdivisions; 116P.08, subdivisions 1.161, 4; 123B.63, subdivision 3; 126C.17, subdivision 9; 127A.45, subdivisions 10, 1.1713; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.36; 216B.46; 237.19; 1.18270A.03, subdivision 7; 272.02, subdivisions 23, 86, by adding a subdivision; 1.19272.0213; 272.029, subdivision 2; 272.162; 273.124, subdivisions 3a, 14, 21; 1.20273.125, subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 273.1392; 273.1393; 1.21275.025, subdivisions 1, 2, 4, by adding a subdivision; 275.065, subdivision 3; 1.22275.066; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.017, 1.23subdivision 3; 276.04, subdivisions 1, 2; 279.01, subdivisions 1, 2, 3; 279.37, by 1.24adding a subdivision; 281.17; 281.173, subdivision 2; 281.174, subdivision 3; 1.25282.01, subdivisions 4, 6, by adding a subdivision; 282.016; 282.018, subdivision 1.261; 282.02; 282.241, subdivision 1; 282.322; 287.08; 289A.50, subdivision 1; 1.27290.01, subdivision 6; 290A.03, subdivisions 11, 13; 298.225, subdivision 1; 1.28298.28, subdivision 3; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 1.29412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, 1.303, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 462.353, subdivision 4; 1.31469.053, subdivision 5; 469.101, subdivision 1; 469.107, subdivision 2; 469.169, 1.32by adding a subdivision; 469.174, subdivision 12; 469.175, subdivision 3; 469.176, 1.33subdivision 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, 1.343; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 471.57, subdivision 3; 1.35471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.39, by adding subdivisions; 1.36473H.09; 473H.17, subdivision 1a; 475.59; 475.60, subdivision 2; 477A.011, 1.37subdivisions 34, 45; 477A.013, subdivisions 8, 9; 477A.10; 477A.11, by adding 1.38subdivisions; 504B.285, subdivision 1; 504B.365, subdivision 3; Laws 1980, 1.39chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, 2.1chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; 2.2Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as 2.3amended; article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, 2.4subdivisions 3, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 2.52005, First Special Session chapter 3, article 5, section 38, subdivisions 2, as 2.6amended, 4, as amended; Laws 2008, chapter 154, article 9, section 21, subdivision 2.72; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5, 2.8section 17, as amended; Laws 2014, chapter 308, article 6, sections 8, subdivision 2.91; 9; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A; 2.1016B; 103C; 116P; 117; 222; 273; 274; 275; 281; 416; 459; 471; 473; 477A; 2.11repealing Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, 2.12subdivision 2; 205.10, subdivision 3; 270C.9901; 281.22; 290.06, subdivision 23; 2.13477A.085; 477A.20; Minnesota Rules, part 4503.1400, subpart 4. 2.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.15ARTICLE 1 2.16PROPERTY TAX 2.17    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read: 2.18    Subd. 2. Allowed commercial and industrial operations. new text begin (a) new text end Commercial and industrial 2.19operations are not allowed on land within an agricultural preserve except: 2.20(1) small on-farm commercial or industrial operations normally associated with and 2.21important to farming in the agricultural preserve area; 2.22(2) storage use of existing farm buildings that does not disrupt the integrity of the 2.23agricultural preserve; and 2.24(3) small commercial use of existing farm buildings for trades not disruptive to the 2.25integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 2.26and similar activities that a farm operator might conduct. new text begin ; and new text end 2.27 new text begin (4) wireless communication installments and related equipment and structure capable new text end 2.28 new text begin of providing technology potentially beneficial to farming activities. new text end 2.29     new text begin (b) For purposes of paragraph (a), clauses (2) and (3), new text end "existing" in clauses (2) and (3) 2.30means existing on August 1, 1989. 2.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.32    Sec. 2. new text begin [103C.333] COUNTY LEVY AUTHORITY. new text end 2.33 new text begin Notwithstanding any other law to the contrary, a county levying a tax under section new text end 2.34 new text begin 103C.331 shall not include any taxes levied under those authorities in the levy certified new text end 2.35 new text begin under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331 new text end 3.1 new text begin shall separately certify that amount, and the auditor shall extend that levy as a special taxing new text end 3.2 new text begin district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b). new text end 3.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications made in 2017 and new text end 3.4 new text begin thereafter. new text end 3.5    Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read: 3.6    Subd. 23. new text begin Secondary liquid new text end agricultural new text begin chemical new text end containment facilities. new text begin Secondary new text end 3.7containment tanks, cache basins, and that portion of the structure needed for the containment 3.8facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3, 3.9as required by the commissioner of agriculture under chapter 18B or 18C, new text begin berms used by new text end 3.10 new text begin a reseller to contain agricultural chemical spills from primary storage containers and prevent new text end 3.11 new text begin runoff or leaching of liquid agricultural chemicals as defined in section 18D.01, subdivision new text end 3.12 new text begin 3, new text end are exempt. new text begin For purposes of this subdivision, "reseller" means a person licensed by the new text end 3.13 new text begin commissioner of agriculture under section 18B.316 or 18C.415. new text end 3.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2016 new text end 3.15 new text begin provided that nothing in this section shall cause property that was classified as exempt new text end 3.16 new text begin property for taxes payable in 2016 to lose its exempt status for taxes payable in that year. new text end 3.17    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read: 3.18    Subd. 86. Apprenticeship training facilities. All or a portion of a building used 3.19exclusively for a state-approved apprenticeship program through the Department of Labor 3.20and Industry is exempt if: 3.21(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit 3.22organization or a nonprofit trust; 3.23(2) the program participants receive no compensation; and 3.24(3) it is located: 3.25(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined 3.26by the 2000 federal census; 3.27(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area 3.28that has a population of 7,400 or greater according to the most recent federal census; or 3.29(iii) in a township that has a population greater than 2,000 new text begin 1,400 new text end but less than 3,000 3.30determined by the 2000 federal census and the building was previously used by a school 3.31and was exempt for taxes payable in 2010. 4.1Use of the property for advanced skills training of incumbent workers does not disqualify 4.2the property for the exemption under this subdivision. This exemption includes up to five 4.3acres of the land on which the building is located and associated parking areas on that land, 4.4except that if the building meets the requirements of clause (3), item (iii), then the exemption 4.5includes up to ten acres of land on which the building is located and associated parking 4.6areas on that land. If a parking area associated with the facility is used for the purposes of 4.7the facility and for other purposes, a portion of the parking area shall be exempt in proportion 4.8to the square footage of the facility used for purposes of apprenticeship training. 4.9    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 4.10read: 4.11     new text begin Subd. 100. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 4.12 new text begin subdivision 9, clause (a), attached machinery and other personal property that is part of an new text end 4.13 new text begin electric generation facility with more than 35 megawatts and less than 40 megawatts of new text end 4.14 new text begin installed capacity and that meets the requirements of this subdivision is exempt from taxation new text end 4.15 new text begin and payments in lieu of taxation. The facility must: new text end 4.16 new text begin (1) be designed to utilize natural gas as a primary fuel; new text end 4.17 new text begin (2) be owned and operated by a municipal power agency as defined in section 453.52, new text end 4.18 new text begin subdivision 8; new text end 4.19 new text begin (3) be located within 800 feet of an existing natural gas pipeline; new text end 4.20 new text begin (4) satisfy a resource deficiency identified in an approved integrated resource plan filed new text end 4.21 new text begin under section 216B.2422; new text end 4.22 new text begin (5) be located outside the metropolitan area as defined under section 473.121, subdivision new text end 4.23 new text begin 2; and new text end 4.24 new text begin (6) have received, by resolution, the approval of the governing bodies of the city and new text end 4.25 new text begin county in which it is located for the exemption of personal property provided by this new text end 4.26 new text begin subdivision. new text end 4.27 new text begin (b) Construction of the facility must have been commenced after January 1, 2015, and new text end 4.28 new text begin before January 1, 2017. Property eligible for this exemption does not include electric new text end 4.29 new text begin transmission lines and interconnections or gas pipelines and interconnections appurtenant new text end 4.30 new text begin to the property or the facility. new text end 4.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.1    Sec. 6. Minnesota Statutes 2016, section 272.0213, is amended to read: 5.2272.0213 LEASED SEASONAL-RECREATIONAL LAND. 5.3    (a) A county board may elect, by resolution, to new text begin Qualified lands, as defined in this section, new text end 5.4 new text begin are new text end exempt from taxation, including the tax under section 273.19, qualified lands. "Qualified 5.5lands" for purposes of this section means property new text begin land new text end that: 5.6    (1) is owned by a county, city, town, or the state; new text begin and new text end 5.7    (2) is rented by the entity for noncommercial seasonal-recreational or new text begin , new text end noncommercial 5.8seasonal-recreational residential use; and new text begin , or class 1c commercial seasonal-recreational new text end 5.9 new text begin residential use. new text end 5.10    (3) was rented for the purposes specified in clause (2) and was exempt from taxation 5.11for property taxes payable in 2008. 5.12(b) Lands owned by the federal government and rented for noncommercial 5.13seasonal-recreational or new text begin , new text end noncommercial seasonal-recreational residential new text begin , or class 1c new text end 5.14 new text begin commercial seasonal-recreational residential new text end use are exempt from taxation, including the 5.15tax under section 273.19. 5.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 5.17    Sec. 7. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read: 5.18    Subd. 2. Definitions. (a) For the purposes of this section, the term: 5.19(1) "wind energy conversion system" has the meaning given in section 216C.06, 5.20subdivision 19 , and also includes a substation that is used and owned by one or more wind 5.21energy conversion facilities; 5.22(2) "large scale wind energy conversion system" means a wind energy conversion system 5.23of more than 12 megawatts, as measured by the nameplate capacity of the system or as 5.24combined with other systems as provided in paragraph (b); 5.25(3) "medium scale wind energy conversion system" means a wind energy conversion 5.26system of over two and not more than 12 megawatts, as measured by the nameplate capacity 5.27of the system or as combined with other systems as provided in paragraph (b); and 5.28(4) "small scale wind energy conversion system" means a wind energy conversion system 5.29of two megawatts and under, as measured by the nameplate capacity of the system or as 5.30combined with other systems as provided in paragraph (b). 6.1(b) For systems installed and contracted for after January 1, 2002, the total size of a 6.2wind energy conversion system under this subdivision shall be determined according to this 6.3paragraph. Unless the systems are interconnected with different distribution systems, the 6.4nameplate capacity of one wind energy conversion system shall be combined with the 6.5nameplate capacity of any other wind energy conversion system that is: 6.6(1) located within five miles of the wind energy conversion system; 6.7(2) constructed within the same calendar year as the wind energy conversion system; 6.8and 6.9(3) under common ownership. 6.10In the case of a dispute, the commissioner of commerce shall determine the total size of 6.11the system, and shall draw all reasonable inferences in favor of combining the systems. 6.12(c) In making a determination under paragraph (b), the commissioner of commerce may 6.13determine that two wind energy conversion systems are under common ownership when 6.14the underlying ownership structure contains similar new text begin the same new text end persons or entities, even if the 6.15ownership shares differ between the two systems. Wind energy conversion systems are not 6.16under common ownership solely because the same person or entity provided equity financing 6.17for the systems new text begin . Wind energy conversion systems that were determined by the commissioner new text end 6.18 new text begin of commerce to be eligible for a renewable energy production incentive under section new text end 6.19 new text begin 216C.41 are not under common ownership unless a change in the qualifying owner was new text end 6.20 new text begin made to an owner of another wind energy conversion system subsequent to the determination new text end 6.21 new text begin by the commissioner of commerce new text end . 6.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 6.23    Sec. 8. Minnesota Statutes 2016, section 272.162, is amended to read: 6.24272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS. 6.25    Subdivision 1. Conditions restricting transfer. When a deed or other instrument 6.26conveying a parcel of land is presented to the county auditor for transfer or division under 6.27sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 6.28net tax capacity in the official records and shall not certify the instrument as provided in 6.29section 272.12, if: 6.30(a) The land conveyed is less than a whole parcel of land as charged in the tax lists; 7.1(b) The part conveyed appears within the area of application of municipal new text begin or county new text end 7.2subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36, subdivision 7.31 ; and 7.4(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, 7.5subdivision 12 . 7.6    Subd. 2. Conditions allowing transfer. new text begin (a) new text end Notwithstanding the provisions of subdivision 7.71, the county auditor may transfer or divide the land and its net tax capacity and may certify 7.8the instrument if the instrument contains a certification by the clerk of the municipality new text begin or new text end 7.9 new text begin designated county planning official new text end : 7.10(a) new text begin (1) new text end that the municipality's new text begin or county's new text end subdivision regulations do not apply; 7.11(b) new text begin (2) new text end that the subdivision has been approved by the governing body of the municipality new text begin new text end 7.12 new text begin or county new text end ; or 7.13(c) new text begin (3) new text end that the restrictions on the division of taxes and filing and recording have been 7.14waived by resolution of the governing body of the municipality new text begin or county new text end in the particular 7.15case because compliance would create an unnecessary hardship and failure to comply would 7.16not interfere with the purpose of the regulations. 7.17 new text begin (b) new text end If any of the conditions for certification by the municipality new text begin or county new text end as provided 7.18in this subdivision exist and the municipality new text begin or county new text end does not certify that they exist within 7.1924 hours after the instrument of conveyance has been presented to the clerk of the 7.20municipality new text begin or designated county planning official new text end , the provisions of subdivision 1 do not 7.21apply. 7.22 new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and any of 7.23the conditions for certification by the municipality new text begin or county new text end as provided in this subdivision 7.24exist, the unexecuted instrument must be certified by the clerk of the municipality new text begin or the new text end 7.25 new text begin designated county planning official new text end . 7.26    Subd. 3. Applicability of restrictions. new text begin (a) new text end This section does not apply to the exceptions 7.27set forth in section 272.12. 7.28 new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose to 7.29be governed by its provisions. A municipality new text begin or county new text end may choose to have this section 7.30apply to the property within its boundaries by filing a certified copy of a resolution of its 7.31governing body making that choice with the auditor and recorder of the county in which it 7.32is located. 7.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.1    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read: 8.2    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park 8.3is owned by a corporation or association organized under chapter 308A or 308B, and each 8.4person who owns a share or shares in the corporation or association is entitled to occupy a 8.5lot within the park, the corporation or association may claim homestead treatment for the 8.6park. Each lot must be designated by legal description or number, and each lot is limited to 8.7not more than one-half acre of land. 8.8    (b) The manufactured home park shall be entitled to homestead treatment if all of the 8.9following criteria are met: 8.10    (1) the occupant or the cooperative corporation or association is paying the ad valorem 8.11property taxes and any special assessments levied against the land and structure either 8.12directly, or indirectly through dues to the corporation or association; and 8.13    (2) the corporation or association organized under chapter 308A or 308B is wholly 8.14owned by persons having a right to occupy a lot owned by the corporation or association. 8.15    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding 8.16stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, 8.17qualifies for homestead treatment with respect to a manufactured home park if its members 8.18hold residential participation warrants entitling them to occupy a lot in the manufactured 8.19home park. 8.20    (d) "Homestead treatment" under this subdivision means the classification rate provided 8.21for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause 8.22(5), item (ii). new text begin , and new text end the homestead market value exclusion under section 273.13, subdivision 8.2335, does not apply and the property taxes assessed against the park shall not be included in 8.24the determination of taxes payable for rent paid under section . 8.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with claims for taxes payable new text end 8.26 new text begin in 2018. new text end 8.27    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read: 8.28    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten 8.29acres that is the homestead of its owner must be classified as class 2a under section 273.13, 8.30subdivision 23 , paragraph (a), if: 8.31    (1) the parcel on which the house is located is contiguous on at least two sides to (i) 8.32agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 9.1Service, or (iii) land administered by the Department of Natural Resources on which in lieu 9.2taxes are paid under sections 477A.11 to 477A.14; 9.3    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 9.4acres; 9.5    (3) the noncontiguous land is located not farther than four townships or cities, or a 9.6combination of townships or cities from the homestead; and 9.7    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to 9.8at least 50 percent of the market value of the house, garage, and one acre of land. 9.9    Homesteads initially classified as class 2a under the provisions of this paragraph shall 9.10remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 9.11properties, as long as the homestead remains under the same ownership, the owner owns a 9.12noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 9.13value qualifies under clause (4). Homestead classification under this paragraph is limited 9.14to property that qualified under this paragraph for the 1998 assessment. 9.15    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same 9.16extent as other agricultural homestead property, if all of the following criteria are met: 9.17    (1) the agricultural property consists of at least 40 acres including undivided government 9.18lots and correctional 40's; 9.19    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 9.20or of the owner's spouse, is actively farming the agricultural property, either on the person's 9.21own behalf as an individual or on behalf of a partnership operating a family farm, family 9.22farm corporation, joint family farm venture, or limited liability company of which the person 9.23is a partner, shareholder, or member; 9.24    (3) both the owner of the agricultural property and the person who is actively farming 9.25the agricultural property under clause (2), are Minnesota residents; 9.26    (4) neither the owner nor the spouse of the owner claims another agricultural homestead 9.27in Minnesota; and 9.28    (5) neither the owner nor the person actively farming the agricultural property lives 9.29farther than four townships or cities, or a combination of four townships or cities, from the 9.30agricultural property, except that if the owner or the owner's spouse is required to live in 9.31employer-provided housing, the owner or owner's spouse, whichever is actively farming 9.32the agricultural property, may live more than four townships or cities, or combination of 9.33four townships or cities from the agricultural property. 10.1    The relationship under this paragraph may be either by blood or marriage. 10.2    (ii) Agricultural property held by a trustee under a trust is eligible for agricultural 10.3homestead classification under this paragraph if the qualifications in clause (i) are met, 10.4except that "owner" means the grantor of the trust. 10.5    (iii) Property containing the residence of an owner who owns qualified property under 10.6clause (i) shall be classified as part of the owner's agricultural homestead, if that property 10.7is also used for noncommercial storage or drying of agricultural crops. 10.8(iv) new text begin (iii) new text end As used in this paragraph, "agricultural property" means class 2a property and 10.9any class 2b property that is contiguous to and under the same ownership as the class 2a 10.10property. 10.11    (c) Noncontiguous land shall be included as part of a homestead under section 273.13, 10.12subdivision 23 , paragraph (a), only if the homestead is classified as class 2a and the detached 10.13land is located in the same township or city, or not farther than four townships or cities or 10.14combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 10.15notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 10.16and, if the homestead is located in another county, the taxpayer must also notify the assessor 10.17of the other county. 10.18    (d) Agricultural land used for purposes of a homestead and actively farmed by a person 10.19holding a vested remainder interest in it must be classified as a homestead under section 10.20273.13, subdivision 23 , paragraph (a). If agricultural land is classified class 2a, any other 10.21dwellings on the land used for purposes of a homestead by persons holding vested remainder 10.22interests who are actively engaged in farming the property, and up to one acre of the land 10.23surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 10.24must also be assessed class 2a. 10.25    (e) Agricultural land and buildings that were class 2a homestead property under section 10.26273.13, subdivision 23 , paragraph (a), for the 1997 assessment shall remain classified as 10.27agricultural homesteads for subsequent assessments if: 10.28    (1) the property owner abandoned the homestead dwelling located on the agricultural 10.29homestead as a result of the April 1997 floods; 10.30    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 10.31Wilkin; 11.1    (3) the agricultural land and buildings remain under the same ownership for the current 11.2assessment year as existed for the 1997 assessment year and continue to be used for 11.3agricultural purposes; 11.4    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 11.5of one of the parcels of agricultural land that is owned by the taxpayer; and 11.6    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 11.7and the owner furnishes the assessor any information deemed necessary by the assessor in 11.8verifying the change in dwelling. Further notifications to the assessor are not required if the 11.9property continues to meet all the requirements in this paragraph and any dwellings on the 11.10agricultural land remain uninhabited. 11.11    (f) Agricultural land and buildings that were class 2a homestead property under section 11.12273.13, subdivision 23 , paragraph (a), for the 1998 assessment shall remain classified 11.13agricultural homesteads for subsequent assessments if: 11.14    (1) the property owner abandoned the homestead dwelling located on the agricultural 11.15homestead as a result of damage caused by a March 29, 1998, tornado; 11.16    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 11.17Nicollet, Nobles, or Rice; 11.18    (3) the agricultural land and buildings remain under the same ownership for the current 11.19assessment year as existed for the 1998 assessment year; 11.20    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of 11.21one of the parcels of agricultural land that is owned by the taxpayer; and 11.22    (5) the owner notifies the county assessor that the relocation was due to a March 29, 11.231998, tornado, and the owner furnishes the assessor any information deemed necessary by 11.24the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 11.25owner must notify the assessor by December 1, 1998. Further notifications to the assessor 11.26are not required if the property continues to meet all the requirements in this paragraph and 11.27any dwellings on the agricultural land remain uninhabited. 11.28    (g) Agricultural property of a family farm corporation, joint family farm venture, family 11.29farm limited liability company, or partnership operating a family farm as described under 11.30subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 11.31property, if all of the following criteria are met: 11.32    (1) the property consists of at least 40 acres including undivided government lots and 11.33correctional 40's; 12.1    (2) a shareholder, member, or partner of that entity is actively farming the agricultural 12.2property; 12.3    (3) that shareholder, member, or partner who is actively farming the agricultural property 12.4is a Minnesota resident; 12.5    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 12.6member, or partner claims another agricultural homestead in Minnesota; and 12.7    (5) that shareholder, member, or partner does not live farther than four townships or 12.8cities, or a combination of four townships or cities, from the agricultural property. 12.9    Homestead treatment applies under this paragraph for property leased to a family farm 12.10corporation, joint farm venture, limited liability company, or partnership operating a family 12.11farm if legal title to the property is in the name of an individual who is a member, shareholder, 12.12or partner in the entity. 12.13    (h) To be eligible for the special agricultural homestead under this subdivision, an initial 12.14full application must be submitted to the county assessor where the property is located. 12.15Owners and the persons who are actively farming the property shall be required to complete 12.16only a one-page abbreviated version of the application in each subsequent year provided 12.17that none of the following items have changed since the initial application: 12.18    (1) the day-to-day operation, administration, and financial risks remain the same; 12.19    (2) the owners and the persons actively farming the property continue to live within the 12.20four townships or city criteria and are Minnesota residents; 12.21    (3) the same operator of the agricultural property is listed with the Farm Service Agency; 12.22    (4) a Schedule F or equivalent income tax form was filed for the most recent year; 12.23    (5) the property's acreage is unchanged; and 12.24    (6) none of the property's acres have been enrolled in a federal or state farm program 12.25since the initial application. 12.26    The owners and any persons who are actively farming the property must include the 12.27appropriate Social Security numbers, and sign and date the application. If any of the specified 12.28information has changed since the full application was filed, the owner must notify the 12.29assessor, and must complete a new application to determine if the property continues to 12.30qualify for the special agricultural homestead. The commissioner of revenue shall prepare 12.31a standard reapplication form for use by the assessors. 13.1    (i) Agricultural land and buildings that were class 2a homestead property under section 13.2273.13, subdivision 23 , paragraph (a), for the 2007 assessment shall remain classified 13.3agricultural homesteads for subsequent assessments if: 13.4    (1) the property owner abandoned the homestead dwelling located on the agricultural 13.5homestead as a result of damage caused by the August 2007 floods; 13.6    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 13.7Wabasha, or Winona; 13.8    (3) the agricultural land and buildings remain under the same ownership for the current 13.9assessment year as existed for the 2007 assessment year; 13.10    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of 13.11one of the parcels of agricultural land that is owned by the taxpayer; and 13.12    (5) the owner notifies the county assessor that the relocation was due to the August 2007 13.13floods, and the owner furnishes the assessor any information deemed necessary by the 13.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 13.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor 13.16are not required if the property continues to meet all the requirements in this paragraph and 13.17any dwellings on the agricultural land remain uninhabited. 13.18    (j) Agricultural land and buildings that were class 2a homestead property under section 13.19273.13, subdivision 23 , paragraph (a), for the 2008 assessment shall remain classified as 13.20agricultural homesteads for subsequent assessments if: 13.21    (1) the property owner abandoned the homestead dwelling located on the agricultural 13.22homestead as a result of the March 2009 floods; 13.23    (2) the property is located in the county of Marshall; 13.24    (3) the agricultural land and buildings remain under the same ownership for the current 13.25assessment year as existed for the 2008 assessment year and continue to be used for 13.26agricultural purposes; 13.27    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 13.28of one of the parcels of agricultural land that is owned by the taxpayer; and 13.29    (5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 13.30and the owner furnishes the assessor any information deemed necessary by the assessor in 13.31verifying the change in dwelling. Further notifications to the assessor are not required if the 14.1property continues to meet all the requirements in this paragraph and any dwellings on the 14.2agricultural land remain uninhabited. 14.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for property taxes payable in new text end 14.4 new text begin 2018. new text end 14.5    Sec. 11. Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read: 14.6    Subd. 21. Trust property; homestead. Real or personal property new text begin , including agricultural new text end 14.7 new text begin property, new text end held by a trustee under a trust is eligible for classification as homestead property 14.8if the property satisfies the requirements of paragraph (a), (b), (c), or (d) new text begin , or (e) new text end . 14.9    (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the 14.10property as a homestead. 14.11    (b) A relative or surviving relative of the grantor who meets the requirements of 14.12subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph 14.13(d), in the case of agricultural property, occupies and uses the property as a homestead. 14.14    (c) A family farm corporation, joint farm venture, limited liability company, or partnership 14.15operating a family farm in which the grantor or the grantor's surviving spouse is a 14.16shareholder, member, or partner rents the property; and, either (1) a shareholder, member, 14.17or partner of the corporation, joint farm venture, limited liability company, or partnership 14.18occupies and uses the property as a homestead; or (2) the property is at least 40 acres, 14.19including undivided government lots and correctional 40's, and a shareholder, member, or 14.20partner of the tenant-entity is actively farming the property on behalf of the corporation, 14.21joint farm venture, limited liability company, or partnership. 14.22    (d) A person who has received homestead classification for property taxes payable in 14.232000 on the basis of an unqualified legal right under the terms of the trust agreement to 14.24occupy the property as that person's homestead and who continues to use the property as a 14.25homestead; or, a person who received the homestead classification for taxes payable in 2005 14.26under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or 14.27thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable 14.28in 2005. 14.29 new text begin (e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For new text end 14.30 new text begin purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse new text end 14.31 new text begin of the grantor. new text end 14.32 new text begin (f) For purposes of this subdivision, the following terms have the meanings given them: new text end 15.1 new text begin (1) "agricultural property" means the house, garage, other farm buildings and structures, new text end 15.2 new text begin and agricultural land; new text end 15.3 new text begin (2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except new text end 15.4 new text begin that the phrases "owned by same person" or "under the same ownership" as used in that new text end 15.5 new text begin subdivision mean and include contiguous tax parcels owned by: new text end 15.6 new text begin (i) an individual and a trust of which the individual, the individual's spouse, or the new text end 15.7 new text begin individual's deceased spouse is the grantor; or new text end 15.8 new text begin (ii) different trusts of which the grantors of each trust are any combination of an new text end 15.9 new text begin individual, the individual's spouse, or the individual's deceased spouse; and new text end 15.10    For purposes of this subdivision, new text begin (3) new text end "grantor" is defined as new text begin means new text end the person creating 15.11or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 15.12instrument or through the exercise of a power of appointment. 15.13 new text begin (g) Noncontiguous land is included as part of a homestead under this subdivision, only new text end 15.14 new text begin if the homestead is classified as class 2a, as defined in section 273.13, subdivision 23, and new text end 15.15 new text begin the detached land is located in the same township or city, or not farther than four townships new text end 15.16 new text begin or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous new text end 15.17 new text begin lands must notify the county assessor that the noncontiguous land is part of the taxpayer's new text end 15.18 new text begin homestead, and, if the homestead is located in another county, the taxpayer must also notify new text end 15.19 new text begin the assessor of the other county. new text end 15.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for property taxes payable in new text end 15.21 new text begin 2018. new text end 15.22    Sec. 12. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read: 15.23    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured 15.24home" means a structure transportable in one or more sections, which is built on a permanent 15.25chassis, and designed to be used as a dwelling with or without a permanent foundation when 15.26connected to the required utilities, and contains the plumbing, heating, air conditioning, and 15.27electrical systems in it. Manufactured home includes any accessory structure that is an 15.28addition or supplement to the manufactured home and, when installed, becomes a part of 15.29the manufactured home. 15.30    (b) Except as provided in paragraph (c), a manufactured home that meets each of the 15.31following criteria must be valued and assessed as an improvement to real property, the 15.32appropriate real property classification applies, and the valuation is subject to review and 15.33the taxes payable in the manner provided for real property: 16.1    (1) the owner of the unit holds title to the land on which it is situated; 16.2    (2) the unit is affixed to the land by a permanent foundation or is installed at its location 16.3in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, 16.4and rules adopted under those sections, or is affixed to the land like other real property in 16.5the taxing district; and 16.6    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 16.7by water and sewer facilities comparable to other real property in the taxing district. 16.8    (c) A manufactured home that meets each of the following criteria must be assessed at 16.9the rate provided by the appropriate real property classification but must be treated as 16.10personal property, and the valuation is subject to review and the taxes payable in the manner 16.11provided in this section: 16.12    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is 16.13located in a manufactured home park but is not the homestead of the park owner; 16.14    (2) the unit is affixed to the land by a permanent foundation or is installed at its location 16.15in accordance with the Manufactured Home Building Code contained in sections 327.31 to 16.16327.34 , and the rules adopted under those sections, or is affixed to the land like other real 16.17property in the taxing district; and 16.18    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 16.19by water and sewer facilities comparable to other real property in the taxing district. 16.20    (d) Sectional structures must be valued and assessed as an improvement to real property 16.21if the owner of the structure holds title to the land on which it is located or is a qualifying 16.22lessee of the land under section 273.19. In this paragraph "sectional structure" means a 16.23building or structural unit that has been in whole or substantial part manufactured or 16.24constructed at an off-site location to be wholly or partially assembled on site alone or with 16.25other units and attached to a permanent foundation. 16.26    (e) The commissioner of revenue may adopt rules under the Administrative Procedure 16.27Act to establish additional criteria for the classification of manufactured homes and sectional 16.28structures under this subdivision. 16.29    (f) A storage shed, deck, or similar improvement constructed on property that is leased 16.30or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer 16.31is taxable as provided in this section. In the case of property that is leased or rented as a site 16.32for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered 16.33personal property under this paragraph is taxable only if its total estimated market value is 17.1over $1,000 new text begin $10,000 new text end . The property is taxable as personal property to the lessee of the site 17.2if it is not owned by the owner of the site. The property is taxable as real estate if it is owned 17.3by the owner of the site. As a condition of permitting the owner of the manufactured home, 17.4sectional structure, park trailer, or travel trailer to construct improvements on the leased or 17.5rented site, the owner of the site must obtain the permanent home address of the lessee or 17.6user of the site. The site owner must provide the name and address to the assessor upon 17.7request. 17.8    Sec. 13. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read: 17.9    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 17.10(c), real estate which is residential and used for homestead purposes is class 1a. In the case 17.11of a duplex or triplex in which one of the units is used for homestead purposes, the entire 17.12property is deemed to be used for homestead purposes. The market value of class 1a property 17.13must be determined based upon the value of the house, garage, and land. 17.14    The first $500,000 of market value of class 1a property has a net classification rate of 17.15one percent of its market value; and the market value of class 1a property that exceeds 17.16$500,000 has a classification rate of 1.25 percent of its market value. 17.17    (b) Class 1b property includes homestead real estate or homestead manufactured homes 17.18used for the purposes of a homestead by: 17.19    (1) any person who is blind as defined in section 256D.35, or the blind person and the 17.20blind person's spouse; 17.21    (2) any person who is permanently and totally disabled or by the disabled person and 17.22the disabled person's spouse; or 17.23    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a 17.24property classified under this paragraph for taxes payable in 2008. 17.25    Property is classified and assessed under clause (2) only if the government agency or 17.26income-providing source certifies, upon the request of the homestead occupant, that the 17.27homestead occupant satisfies the disability requirements of this paragraph, and that the 17.28property is not eligible for the valuation exclusion under subdivision 34. 17.29    Property is classified and assessed under paragraph (b) only if the commissioner of 17.30revenue or the county assessor certifies that the homestead occupant satisfies the requirements 17.31of this paragraph. 18.1    Permanently and totally disabled for the purpose of this subdivision means a condition 18.2which is permanent in nature and totally incapacitates the person from working at an 18.3occupation which brings the person an income. The first $50,000 market value of class 1b 18.4property has a net classification rate of .45 percent of its market value. The remaining market 18.5value of class 1b property has a classification rate using the rates for class 1a or class 2a 18.6property, whichever is appropriate, of similar market value. 18.7    (c) Class 1c property is commercial use real and personal property that abuts public 18.8water as defined in section 103G.005, subdivision 15, new text begin or abuts a state trail administered by new text end 18.9 new text begin the Department of Natural Resources, new text end and is devoted to temporary and seasonal residential 18.10occupancy for recreational purposes but not devoted to commercial purposes for more than 18.11250 days in the year preceding the year of assessment, and that includes a portion used as 18.12a homestead by the owner, which includes a dwelling occupied as a homestead by a 18.13shareholder of a corporation that owns the resort, a partner in a partnership that owns the 18.14resort, or a member of a limited liability company that owns the resort even if new text begin , whether new text end the 18.15title to the homestead is held by the corporation, partnership, or limited liability company new text begin , new text end 18.16 new text begin or by a shareholder of a corporation who owns the resort, a partner in a partnership who new text end 18.17 new text begin owns the resort, or a member of a limited liability company who owns the resort new text end . For 18.18purposes of this paragraph, property is devoted to a commercial purpose on a specific day 18.19if any portion of the property, excluding the portion used exclusively as a homestead, is 18.20used for residential occupancy and a fee is charged for residential occupancy. Class 1c 18.21property must contain three or more rental units. A "rental unit" is defined as a cabin, 18.22condominium, townhouse, sleeping room, or individual camping site equipped with water 18.23and electrical hookups for recreational vehicles. Class 1c property must provide recreational 18.24activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 18.25or cross-country ski equipment; provide marina services, launch services, or guide services; 18.26or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 18.27to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 18.28for class 1c even though it may remain available for rent. A camping pad offered for rent 18.29by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 18.30the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 18.31the same owner owns two separate parcels that are located in the same township, and one 18.32of those properties is classified as a class 1c property and the other would be eligible to be 18.33classified as a class 1c property if it was used as the homestead of the owner, both properties 18.34will be assessed as a single class 1c property; for purposes of this sentence, properties are 18.35deemed to be owned by the same owner if each of them is owned by a limited liability 18.36company, and both limited liability companies have the same membership. The portion of 19.1the property used as a homestead is class 1a property under paragraph (a). The remainder 19.2of the property is classified as follows: the first $600,000 of market value is tier I, the next 19.3$1,700,000 of market value is tier II, and any remaining market value is tier III. The 19.4classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 19.5percent. Owners of real and personal property devoted to temporary and seasonal residential 19.6occupancy for recreation purposes in which all or a portion of the property was devoted to 19.7commercial purposes for not more than 250 days in the year preceding the year of assessment 19.8desiring classification as class 1c, must submit a declaration to the assessor designating the 19.9cabins or units occupied for 250 days or less in the year preceding the year of assessment 19.10by January 15 of the assessment year. Those cabins or units and a proportionate share of 19.11the land on which they are located must be designated as class 1c as otherwise provided. 19.12The remainder of the cabins or units and a proportionate share of the land on which they 19.13are located must be designated as class 3a commercial. The owner of property desiring 19.14designation as class 1c property must provide guest registers or other records demonstrating 19.15that the units for which class 1c designation is sought were not occupied for more than 250 19.16days in the year preceding the assessment if so requested. The portion of a property operated 19.17as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 19.18other nonresidential facility operated on a commercial basis not directly related to temporary 19.19and seasonal residential occupancy for recreation purposes does not qualify for class 1c. 19.20    (d) Class 1d property includes structures that meet all of the following criteria: 19.21    (1) the structure is located on property that is classified as agricultural property under 19.22section 273.13, subdivision 23; 19.23    (2) the structure is occupied exclusively by seasonal farm workers during the time when 19.24they work on that farm, and the occupants are not charged rent for the privilege of occupying 19.25the property, provided that use of the structure for storage of farm equipment and produce 19.26does not disqualify the property from classification under this paragraph; 19.27    (3) the structure meets all applicable health and safety requirements for the appropriate 19.28season; and 19.29    (4) the structure is not salable as residential property because it does not comply with 19.30local ordinances relating to location in relation to streets or roads. 19.31    The market value of class 1d property has the same classification rates as class 1a property 19.32under paragraph (a). 19.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 20.1    Sec. 14. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read: 20.2    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land 20.3that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 20.42a land under the same ownership. The market value of the house and garage and immediately 20.5surrounding one acre of land has the same classification rates as class 1a or 1b property 20.6under subdivision 22. The value of the remaining land including improvements up to the 20.7first tier valuation limit of agricultural homestead property has a classification rate of 0.5 20.8percent of market value. The remaining property over the first tier has a classification rate 20.9of one percent of market value. For purposes of this subdivision, the "first tier valuation 20.10limit of agricultural homestead property" and "first tier" means the limit certified under 20.11section 273.11, subdivision 23. 20.12    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 20.13are agricultural land and buildings. Class 2a property has a classification rate of one percent 20.14of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 20.15property must also include any property that would otherwise be classified as 2b, but is 20.16interspersed with class 2a property, including but not limited to sloughs, wooded wind 20.17shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 20.18and other similar land that is impractical for the assessor to value separately from the rest 20.19of the property or that is unlikely to be able to be sold separately from the rest of the property. 20.20    An assessor may classify the part of a parcel described in this subdivision that is used 20.21for agricultural purposes as class 2a and the remainder in the class appropriate to its use. 20.22    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 20.23are unplatted real estate, rural in character and not used for agricultural purposes, including 20.24land used for growing trees for timber, lumber, and wood and wood products, that is not 20.25improved with a structure. The presence of a minor, ancillary nonresidential structure as 20.26defined by the commissioner of revenue does not disqualify the property from classification 20.27under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 20.28a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 20.29assigned to the split parcel containing the structure. Class 2b property has a classification 20.30rate of one percent of market value unless it is part of an agricultural homestead under 20.31paragraph (a), or qualifies as class 2c under paragraph (d). 20.32    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 20.33acres statewide per taxpayer that is being managed under a forest management plan that 20.34meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 21.1management incentive program. It has a classification rate of .65 percent, provided that the 21.2owner of the property must apply to the assessor in order for the property to initially qualify 21.3for the reduced rate and provide the information required by the assessor to verify that the 21.4property qualifies for the reduced rate. If the assessor receives the application and information 21.5before May 1 in an assessment year, the property qualifies beginning with that assessment 21.6year. If the assessor receives the application and information after April 30 in an assessment 21.7year, the property may not qualify until the next assessment year. The commissioner of 21.8natural resources must concur that the land is qualified. The commissioner of natural 21.9resources shall annually provide county assessors verification information on a timely basis. 21.10The presence of a minor, ancillary nonresidential structure as defined by the commissioner 21.11of revenue does not disqualify the property from classification under this paragraph. 21.12    (e) Agricultural land as used in this section means: 21.13    (1) contiguous acreage of ten acres or more, used during the preceding year for 21.14agricultural purposes; or 21.15    (2) contiguous acreage used during the preceding year for an intensive livestock or 21.16poultry confinement operation, provided that land used only for pasturing or grazing does 21.17not qualify under this clause. 21.18    "Agricultural purposes" as used in this section means the raising, cultivation, drying, or 21.19storage of agricultural products for sale, or the storage of machinery or equipment used in 21.20support of agricultural production by the same farm entity. For a property to be classified 21.21as agricultural based only on the drying or storage of agricultural products, the products 21.22being dried or stored must have been produced by the same farm entity as the entity operating 21.23the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest 21.24in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation 21.25Reserve Program as contained in Public Law 99-198 or a similar new text begin local, new text end state new text begin , new text end or federal 21.26conservation program if the property was classified as agricultural (i) under this subdivision 21.27for taxes payable in 2003 because of its enrollment in a qualifying program and the land 21.28remains enrolled or (ii) in the year prior to its enrollment new text begin . For purposes of this section, a new text end 21.29 new text begin local conservation program means a program administered by a town, statutory or home new text end 21.30 new text begin rule charter city, or county, including a watershed district, water management organization, new text end 21.31 new text begin or soil and water conservation district, in which landowners voluntarily enroll land and new text end 21.32 new text begin receive incentive payments in exchange for use or other restrictions placed on the land new text end . 21.33Agricultural classification shall not be based upon the market value of any residential 21.34structures on the parcel or contiguous parcels under the same ownership. 22.1    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 22.2portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 22.3of, a set of contiguous tax parcels under that section that are owned by the same person. 22.4    (f) Agricultural land under this section also includes: 22.5    (1) contiguous acreage that is less than ten acres in size and exclusively used in the 22.6preceding year for raising or cultivating agricultural products; or 22.7    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 22.8contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 22.9used in the preceding year for one or more of the following three uses: 22.10    (i) for an intensive grain drying or storage operation, or for intensive machinery or 22.11equipment storage activities used to support agricultural activities on other parcels of property 22.12operated by the same farming entity; 22.13    (ii) as a nursery, provided that only those acres used intensively to produce nursery stock 22.14are considered agricultural land; or 22.15    (iii) for intensive market farming; for purposes of this paragraph, "market farming" 22.16means the cultivation of one or more fruits or vegetables or production of animal or other 22.17agricultural products for sale to local markets by the farmer or an organization with which 22.18the farmer is affiliated. 22.19    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 22.20described in section 272.193, or all of a set of contiguous tax parcels under that section that 22.21are owned by the same person. 22.22    (g) Land shall be classified as agricultural even if all or a portion of the agricultural use 22.23of that property is the leasing to, or use by another person for agricultural purposes. 22.24    Classification under this subdivision is not determinative for qualifying under section 22.25273.111 . 22.26    (h) The property classification under this section supersedes, for property tax purposes 22.27only, any locally administered agricultural policies or land use restrictions that define 22.28minimum or maximum farm acreage. 22.29    (i) The term "agricultural products" as used in this subdivision includes production for 22.30sale of: 23.1    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 23.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 23.3and apiary products by the owner; 23.4    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for 23.5agricultural use; 23.6    (3) the commercial boarding of horses, which may include related horse training and 23.7riding instruction, if the boarding is done on property that is also used for raising pasture 23.8to graze horses or raising or cultivating other agricultural products as defined in clause (1); 23.9    (4) property which is owned and operated by nonprofit organizations used for equestrian 23.10activities, excluding racing; 23.11    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 23.1297A.105 , provided that the annual licensing report to the Department of Natural Resources, 23.13which must be submitted annually by March 30 to the assessor, indicates that at least 500 23.14birds were raised or used for breeding stock on the property during the preceding year and 23.15that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 23.16shooting preserve licensed under section 97A.115; 23.17    (6) insects primarily bred to be used as food for animals; 23.18    (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 23.19for timber, lumber, wood, or wood products; and 23.20    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 23.21Department of Agriculture under chapter 28A as a food processor. 23.22    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 23.23purposes, including but not limited to: 23.24    (1) wholesale and retail sales; 23.25    (2) processing of raw agricultural products or other goods; 23.26    (3) warehousing or storage of processed goods; and 23.27    (4) office facilities for the support of the activities enumerated in clauses (1), (2), and 23.28(3), 23.29the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 23.302a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 23.31The grading, sorting, and packaging of raw agricultural products for first sale is considered 23.32an agricultural purpose. A greenhouse or other building where horticultural or nursery 24.1products are grown that is also used for the conduct of retail sales must be classified as 24.2agricultural if it is primarily used for the growing of horticultural or nursery products from 24.3seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 24.4Use of a greenhouse or building only for the display of already grown horticultural or nursery 24.5products does not qualify as an agricultural purpose. 24.6    (k) The assessor shall determine and list separately on the records the market value of 24.7the homestead dwelling and the one acre of land on which that dwelling is located. If any 24.8farm buildings or structures are located on this homesteaded acre of land, their market value 24.9shall not be included in this separate determination. 24.10    (l) Class 2d airport landing area consists of a landing area or public access area of a 24.11privately owned public use airport. It has a classification rate of one percent of market value. 24.12To qualify for classification under this paragraph, a privately owned public use airport must 24.13be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 24.14area" means that part of a privately owned public use airport properly cleared, regularly 24.15maintained, and made available to the public for use by aircraft and includes runways, 24.16taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 24.17area also includes land underlying both the primary surface and the approach surfaces that 24.18comply with all of the following: 24.19    (i) the land is properly cleared and regularly maintained for the primary purposes of the 24.20landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 24.21for servicing, repair, or maintenance of aircraft is not included as a landing area; 24.22    (ii) the land is part of the airport property; and 24.23    (iii) the land is not used for commercial or residential purposes. 24.24The land contained in a landing area under this paragraph must be described and certified 24.25by the commissioner of transportation. The certification is effective until it is modified, or 24.26until the airport or landing area no longer meets the requirements of this paragraph. For 24.27purposes of this paragraph, "public access area" means property used as an aircraft parking 24.28ramp, apron, or storage hangar, or an arrival and departure building in connection with the 24.29airport. 24.30    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 24.31being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 24.32located in a county that has elected to opt-out of the aggregate preservation program as 24.33provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 24.34market value. To qualify for classification under this paragraph, the property must be at 25.1least ten contiguous acres in size and the owner of the property must record with the county 25.2recorder of the county in which the property is located an affidavit containing: 25.3    (1) a legal description of the property; 25.4    (2) a disclosure that the property contains a commercial aggregate deposit that is not 25.5actively being mined but is present on the entire parcel enrolled; 25.6    (3) documentation that the conditional use under the county or local zoning ordinance 25.7of this property is for mining; and 25.8    (4) documentation that a permit has been issued by the local unit of government or the 25.9mining activity is allowed under local ordinance. The disclosure must include a statement 25.10from a registered professional geologist, engineer, or soil scientist delineating the deposit 25.11and certifying that it is a commercial aggregate deposit. 25.12    For purposes of this section and section 273.1115, "commercial aggregate deposit" 25.13means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 25.14a construction aggregate; and "actively mined" means the removal of top soil and overburden 25.15in preparation for excavation or excavation of a commercial deposit. 25.16    (n) When any portion of the property under this subdivision or subdivision 22 begins to 25.17be actively mined, the owner must file a supplemental affidavit within 60 days from the 25.18day any aggregate is removed stating the number of acres of the property that is actively 25.19being mined. The acres actively being mined must be (1) valued and classified under 25.20subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 25.21resource preservation property tax program under section 273.1115, if the land was enrolled 25.22in that program. Copies of the original affidavit and all supplemental affidavits must be 25.23filed with the county assessor, the local zoning administrator, and the Department of Natural 25.24Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 25.25time a subsequent portion of the property is actively mined, provided that the minimum 25.26acreage change is five acres, even if the actual mining activity constitutes less than five 25.27acres. 25.28    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 25.29rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 25.30section 14.386 concerning exempt rules do not apply. 25.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2018. new text end 26.1    Sec. 15. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read: 26.2    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units 26.3and used or held for use by the owner or by the tenants or lessees of the owner as a residence 26.4for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 26.5also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 26.6under section 272.02, and contiguous property used for hospital purposes, without regard 26.7to whether the property has been platted or subdivided. The market value of class 4a property 26.8has a classification rate of 1.25 percent. 26.9    (b) Class 4b includes: 26.10    (1) residential real estate containing less than four units that does not qualify as class 26.114bb, other than seasonal residential recreational property; 26.12    (2) manufactured homes not classified under any other provision; 26.13    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 26.14classified under subdivision 23, paragraph (b) containing two or three units; and 26.15    (4) unimproved property that is classified residential as determined under subdivision 26.1633. 26.17    The market value of class 4b property has a classification rate of 1.25 percent. 26.18    (c) Class 4bb includes new text begin : new text end 26.19     new text begin (1) new text end nonhomestead residential real estate containing one unit, other than seasonal 26.20residential recreational property, and a single family dwelling, garage, new text begin ; new text end 26.21     new text begin (2) single-family dwellings including garages new text end and new text begin the new text end surrounding one acre of property 26.22on a nonhomestead farm new text begin farms new text end classified under subdivision 23, paragraph (b) new text begin ; and new text end 26.23     new text begin (3) condominium-type storage units having individual legal descriptions that are not new text end 26.24 new text begin used for commercial purposes new text end . 26.25    Class 4bb property has the same classification rates as class 1a property under subdivision 26.2622. 26.27    Property that has been classified as seasonal residential recreational property at any time 26.28during which it has been owned by the current owner or spouse of the current owner does 26.29not qualify for class 4bb. 26.30    (d) Class 4c property includes: 27.1    (1) except as provided in subdivision 22, paragraph (c), real and personal property 27.2devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 27.3for not more than 250 days in the year preceding the year of assessment. For purposes of 27.4this clause, property is devoted to a commercial purpose on a specific day if any portion of 27.5the property is used for residential occupancy, and a fee is charged for residential occupancy. 27.6Class 4c property under this clause must contain three or more rental units. A "rental unit" 27.7is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 27.8equipped with water and electrical hookups for recreational vehicles. A camping pad offered 27.9for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 27.10under this clause regardless of the term of the rental agreement, as long as the use of the 27.11camping pad does not exceed 250 days. In order for a property to be classified under this 27.12clause, either (i) the business located on the property must provide recreational activities, 27.13at least 40 percent of the annual gross lodging receipts related to the property must be from 27.14business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 27.15bookings by lodging guests during the year must be for periods of at least two consecutive 27.16nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 27.17providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 27.18and must be located in a township or a city with a population of 2,500 or less located outside 27.19the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 27.20of a state trail administered by the Department of Natural Resources. For purposes of item 27.21(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 27.22property also includes commercial use real property used exclusively for recreational 27.23purposes in conjunction with other class 4c property classified under this clause and devoted 27.24to temporary and seasonal residential occupancy for recreational purposes, up to a total of 27.25two acres, provided the property is not devoted to commercial recreational use for more 27.26than 250 days in the year preceding the year of assessment and is located within two miles 27.27of the class 4c property with which it is used. In order for a property to qualify for 27.28classification under this clause, the owner must submit a declaration to the assessor 27.29designating the cabins or units occupied for 250 days or less in the year preceding the year 27.30of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 27.31share of the land on which they are located must be designated class 4c under this clause 27.32as otherwise provided. The remainder of the cabins or units and a proportionate share of 27.33the land on which they are located will be designated as class 3a. The owner of property 27.34desiring designation as class 4c property under this clause must provide guest registers or 27.35other records demonstrating that the units for which class 4c designation is sought were not 27.36occupied for more than 250 days in the year preceding the assessment if so requested. The 28.1portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 28.2or meeting room, and (5) other nonresidential facility operated on a commercial basis not 28.3directly related to temporary and seasonal residential occupancy for recreation purposes 28.4does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 28.5means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 28.6ski equipment; providing marina services, launch services, or guide services; or selling bait 28.7and fishing tackle; 28.8    (2) qualified property used as a golf course if: 28.9    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 28.10but a membership fee may not be required in order to use the property for golfing, and its 28.11green fees for golfing must be comparable to green fees typically charged by municipal 28.12courses; and 28.13    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 28.14    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 28.15the golf course is classified as class 3a property; 28.16    (3) real property up to a maximum of three acres of land owned and used by a nonprofit 28.17community service oriented organization and not used for residential purposes on either a 28.18temporary or permanent basis, provided that: 28.19    (i) the property is not used for a revenue-producing activity for more than six days in 28.20the calendar year preceding the year of assessment; or 28.21    (ii) the organization makes annual charitable contributions and donations at least equal 28.22to the property's previous year's property taxes and the property is allowed to be used for 28.23public and community meetings or events for no charge, as appropriate to the size of the 28.24facility. 28.25    For purposes of this clause: 28.26    (A) "charitable contributions and donations" has the same meaning as lawful gambling 28.27purposes under section 349.12, subdivision 25, excluding those purposes relating to the 28.28payment of taxes, assessments, fees, auditing costs, and utility payments; 28.29    (B) "property taxes" excludes the state general tax; 28.30    (C) a "nonprofit community service oriented organization" means any corporation, 28.31society, association, foundation, or institution organized and operated exclusively for 28.32charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 29.1federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 29.2Revenue Code; and 29.3    (D) "revenue-producing activities" shall include but not be limited to property or that 29.4portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 29.5liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 29.6alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 29.7insurance business, or office or other space leased or rented to a lessee who conducts a 29.8for-profit enterprise on the premises. 29.9    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 29.10use of the property for social events open exclusively to members and their guests for periods 29.11of less than 24 hours, when an admission is not charged nor any revenues are received by 29.12the organization shall not be considered a revenue-producing activity. 29.13    The organization shall maintain records of its charitable contributions and donations 29.14and of public meetings and events held on the property and make them available upon 29.15request any time to the assessor to ensure eligibility. An organization meeting the requirement 29.16under item (ii) must file an application by May 1 with the assessor for eligibility for the 29.17current year's assessment. The commissioner shall prescribe a uniform application form 29.18and instructions; 29.19    (4) postsecondary student housing of not more than one acre of land that is owned by a 29.20nonprofit corporation organized under chapter 317A and is used exclusively by a student 29.21cooperative, sorority, or fraternity for on-campus housing or housing located within two 29.22miles of the border of a college campus; 29.23    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 29.24manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured 29.25home parks as defined in section 327.14, subdivision 3, that are described in section 273.124, 29.26subdivision 3a ; 29.27    (6) real property that is actively and exclusively devoted to indoor fitness, health, social, 29.28recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 29.29located within the metropolitan area as defined in section 473.121, subdivision 2; 29.30    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 29.31section 272.01, subdivision 2, and the land on which it is located, provided that: 29.32    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 29.33Airports Commission, or group thereof; and 30.1    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 30.2premise, prohibits commercial activity performed at the hangar. 30.3    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 30.4filed by the new owner with the assessor of the county where the property is located within 30.560 days of the sale; 30.6    (8) a privately owned noncommercial aircraft storage hangar not exempt under section 30.7272.01, subdivision 2 , and the land on which it is located, provided that: 30.8    (i) the land abuts a public airport; and 30.9    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 30.10restricting the use of the premises, prohibiting commercial use or activity performed at the 30.11hangar; and 30.12    (9) residential real estate, a portion of which is used by the owner for homestead purposes, 30.13and that is also a place of lodging, if all of the following criteria are met: 30.14    (i) rooms are provided for rent to transient guests that generally stay for periods of 14 30.15or fewer days; 30.16    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 30.17the basic room rate; 30.18    (iii) meals are not provided to the general public except for special events on fewer than 30.19seven days in the calendar year preceding the year of the assessment; and 30.20    (iv) the owner is the operator of the property. 30.21    The market value subject to the 4c classification under this clause is limited to five rental 30.22units. Any rental units on the property in excess of five, must be valued and assessed as 30.23class 3a. The portion of the property used for purposes of a homestead by the owner must 30.24be classified as class 1a property under subdivision 22; 30.25    (10) real property up to a maximum of three acres and operated as a restaurant as defined 30.26under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 30.27section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 30.28commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 30.29of its annual gross receipts from business conducted during four consecutive months. Gross 30.30receipts from the sale of alcoholic beverages must be included in determining the property's 30.31qualification under item (ii). The property's primary business must be as a restaurant and 30.32not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 31.1Owners of real property desiring 4c classification under this clause must submit an annual 31.2declaration to the assessor by February 1 of the current assessment year, based on the 31.3property's relevant information for the preceding assessment year; 31.4(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 31.5a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 31.6and devoted to recreational use for marina services. The marina owner must annually provide 31.7evidence to the assessor that it provides services, including lake or river access to the public 31.8by means of an access ramp or other facility that is either located on the property of the 31.9marina or at a publicly owned site that abuts the property of the marina. No more than 800 31.10feet of lakeshore may be included in this classification. Buildings used in conjunction with 31.11a marina for marina services, including but not limited to buildings used to provide food 31.12and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 31.13as class 3a property; and 31.14(12) real and personal property devoted to noncommercial temporary and seasonal 31.15residential occupancy for recreation purposes. 31.16    Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 31.17each parcel of noncommercial seasonal residential recreational property under clause (12) 31.18has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 31.19under clause (5), item (i), have the same classification rate as class 4b property, and the 31.20market value of manufactured home parks assessed under clause (5), item (ii), has a 31.21classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied 31.22by shareholders in the cooperative corporation or association and a classification rate of 31.23one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal 31.24residential recreational property and marina recreational land as described in clause (11), 31.25has a classification rate of one percent for the first $500,000 of market value, and 1.25 31.26percent for the remaining market value, (iv) the market value of property described in clause 31.27(4) has a classification rate of one percent, (v) the market value of property described in 31.28clauses (2), (6), and (10) has a classification rate of 1.25 percent, and (vi) that portion of 31.29the market value of property in clause (9) qualifying for class 4c property has a classification 31.30rate of 1.25 percent new text begin , and (vii) property qualifying for classification under clause (3) that is new text end 31.31 new text begin owned or operated by a congressionally chartered veterans organization has a classification new text end 31.32 new text begin rate of one percent. The commissioner of veterans affairs must provide a list of new text end 31.33 new text begin congressionally chartered veterans organizations to the commissioner of revenue by June new text end 31.34 new text begin 30, 2017, and by January 1, 2018, and each year thereafter new text end . 32.1    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 32.2by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 32.3the units in the building qualify as low-income rental housing units as certified under section 32.4273.128, subdivision 3 , only the proportion of qualifying units to the total number of units 32.5in the building qualify for class 4d. The remaining portion of the building shall be classified 32.6by the assessor based upon its use. Class 4d also includes the same proportion of land as 32.7the qualifying low-income rental housing units are to the total units in the building. For all 32.8properties qualifying as class 4d, the market value determined by the assessor must be based 32.9on the normal approach to value using normal unrestricted rents. 32.10    (f) The first tier of market value of class 4d property has a classification rate of 0.75 32.11percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 32.12For the purposes of this paragraph, the "first tier of market value of class 4d property" means 32.13the market value of each housing unit up to the first tier limit. For the purposes of this 32.14paragraph, all class 4d property value must be assigned to individual housing units. The 32.15first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 32.16adjusted each year by the average statewide change in estimated market value of property 32.17classified as class 4a and 4d under this section for the previous assessment year, excluding 32.18valuation change due to new construction, rounded to the nearest $1,000, provided, however, 32.19that the limit may never be less than $100,000. Beginning with assessment year 2015, the 32.20commissioner of revenue must certify the limit for each assessment year by November 1 32.21of the previous year. 32.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes assessed in 2017 new text end 32.23 new text begin and payable in 2018. new text end 32.24    Sec. 16. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read: 32.25    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of 32.26the market value of property owned by a veteran and serving as the veteran's homestead 32.27under this section is excluded in determining the property's taxable market value if the 32.28veteran has a service-connected disability of 70 percent or more as certified by the United 32.29States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 32.30veteran must have been honorably discharged from the United States armed forces, as 32.31indicated by United States Government Form DD214 or other official military discharge 32.32papers. 32.33    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 32.34except as provided in clause (2); and 33.1    (2) for a total (100 percent) and permanent disability, $300,000 of market value is 33.2excluded. 33.3    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 33.4(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 33.5the legal or beneficial title to the homestead and permanently resides there, the exclusion 33.6shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 33.7for eight additional taxes payable years or until such time as the spouse remarries, or sells, 33.8transfers, or otherwise disposes of the property, whichever comes first. Qualification under 33.9this paragraph requires an annual application under paragraph (h) new text begin , and a spouse must notify new text end 33.10 new text begin the assessor if there is a change in the spouse's marital status, ownership of the property, or new text end 33.11 new text begin use of the property as a permanent residence new text end . 33.12(d) If the spouse of a member of any branch or unit of the United States armed forces 33.13who dies due to a service-connected cause while serving honorably in active service, as 33.14indicated on United States Government Form DD1300 or DD2064, holds the legal or 33.15beneficial title to a homestead and permanently resides there, the spouse is entitled to the 33.16benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 33.17time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 33.18whichever comes first. 33.19(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 33.20classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 33.21family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 33.22for under paragraph (b). 33.23    (f) In the case of an agricultural homestead, only the portion of the property consisting 33.24of the house and garage and immediately surrounding one acre of land qualifies for the 33.25valuation exclusion under this subdivision. 33.26    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible 33.27for the market value exclusion under subdivision 35, or classification under subdivision 22, 33.28paragraph (b). 33.29    (h) To qualify for a valuation exclusion under this subdivision a property owner must 33.30apply to the assessor by July 1 of each assessment year, except that an annual reapplication 33.31is not required once a property has been accepted for a valuation exclusion under paragraph 33.32(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 33.33continues to qualify until there is a change in ownership new text begin of the first assessment year for new text end 33.34 new text begin which the exclusion is sought new text end . For an application received after July 1 of any calendar year, 34.1the exclusion shall become effective for the following assessment year. new text begin Except as provided new text end 34.2 new text begin in paragraph (c), the owner of a property that has been accepted for a valuation exclusion new text end 34.3 new text begin must notify the assessor if there is a change in ownership of the property or in the use of new text end 34.4 new text begin the property as a homestead. new text end 34.5(i) A first-time application by a qualifying spouse for the market value exclusion under 34.6paragraph (d) must be made any time within two years of the death of the service member. 34.7(j) For purposes of this subdivision: 34.8(1) "active service" has the meaning given in section 190.05; 34.9(2) "own" means that the person's name is present as an owner on the property deed; 34.10(3) "primary family caregiver" means a person who is approved by the secretary of the 34.11United States Department of Veterans Affairs for assistance as the primary provider of 34.12personal care services for an eligible veteran under the Program of Comprehensive Assistance 34.13for Family Caregivers, codified as United States Code, title 38, section 1720G; and 34.14(4) "veteran" has the meaning given the term in section 197.447. 34.15(k) new text begin If a veteran dying after December 31, 2011, did not apply for or receive the exclusion new text end 34.16 new text begin under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit new text end 34.17 new text begin under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries new text end 34.18 new text begin or sells, transfers, or otherwise disposes of the property if: new text end 34.19 new text begin (1) the spouse files a first-time application within two years of the death of the service new text end 34.20 new text begin member or by June 1, 2019, whichever is later; new text end 34.21 new text begin (2) upon the death of the veteran, the spouse holds the legal or beneficial title to the new text end 34.22 new text begin homestead and permanently resides there; new text end 34.23 new text begin (3) the veteran met the honorable discharge requirements of paragraph (a); and new text end 34.24 new text begin (4) the United States Department of Veterans Affairs certifies that: new text end 34.25 new text begin (i) the veteran met the total (100 percent) and permanent disability requirement under new text end 34.26 new text begin paragraph (b), clause (2); or new text end 34.27 new text begin (ii) the spouse has been awarded dependency and indemnity compensation. new text end 34.28 new text begin (l) new text end The purpose of this provision of law providing a level of homestead property tax 34.29relief for gravely disabled veterans, their primary family caregivers, and their surviving 34.30spouses is to help ease the burdens of war for those among our state's citizens who bear 34.31those burdens most heavily. 35.1 new text begin (m) By July 1, the county veterans service officer must certify the disability rating of new text end 35.2 new text begin each veteran receiving the benefit under paragraph (b) to the assessor. new text end 35.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 35.4    Sec. 17. new text begin [274.132] PROPERTY OVERVALUED. new text end 35.5     new text begin Subdivision 1. new text end new text begin Valuation appeals. new text end new text begin Notwithstanding any other law to the contrary, when new text end 35.6 new text begin the value of a property is reduced by a local, special, or county board of appeal and new text end 35.7 new text begin equalization, the state board of equalization, an order from the Minnesota Tax Court, or an new text end 35.8 new text begin abatement to correct an error in valuation, a property owner may appeal the valuation of new text end 35.9 new text begin the property for the taxes payable year immediately preceding the year for which the value new text end 35.10 new text begin is reduced, provided that the valuation of the property for the immediately preceding taxes new text end 35.11 new text begin payable year was not previously appealed. An appeal under this subdivision may only be new text end 35.12 new text begin taken to the Minnesota Tax Court. new text end 35.13     new text begin Subd. 2. new text end new text begin Credit for overpayment of tax. new text end new text begin (a) The county auditor shall credit any refund new text end 35.14 new text begin determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's new text end 35.15 new text begin tax payable on the property according to the following schedule: new text end 35.16 new text begin (1) if the refund is less than 25 percent of the total tax payable on the property for the new text end 35.17 new text begin current year, it shall be credited to the tax payable on the property in the succeeding taxes new text end 35.18 new text begin payable year; or new text end 35.19 new text begin (2) if the refund is 25 percent or more of the total tax payable on the property for the new text end 35.20 new text begin current year, beginning in the succeeding taxes payable year, it shall be credited to the tax new text end 35.21 new text begin payable on the property at a rate of 25 percent of the property taxes due per year until new text end 35.22 new text begin credited in full. new text end 35.23 new text begin (b) The credit under this subdivision shall reduce the tax payable to each jurisdiction in new text end 35.24 new text begin proportion to the total tax payable on the property. new text end 35.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for appeals, orders, and abatements in new text end 35.26 new text begin 2018 and thereafter. new text end 35.27    Sec. 18. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read: 35.28    Subdivision 1. Levy amount. The state general levy is levied against 35.29commercial-industrial property and seasonal residential recreational property, as defined 35.30in this section. The state general levy base amount is $592,000,000 new text begin for commercial-industrial new text end 35.31 new text begin property is $713,050,000 new text end for taxes payable in 2002 new text begin 2018 and thereafter new text end . For taxes payable 35.32in subsequent years, the levy base amount is increased each year by multiplying the levy 36.1base amount for the prior year by the sum of one plus the rate of increase, if any, in the 36.2implicit price deflator for government consumption expenditures and gross investment for 36.3state and local governments prepared by the Bureau of Economic Analysts of the United 36.4States Department of Commerce for the 12-month period ending March 31 of the year prior 36.5to the year the taxes are payable. new text begin The state general levy for seasonal-recreational property new text end 36.6 new text begin is $43,130,000 for taxes payable in 2018 and thereafter. new text end The tax under this section is not 36.7treated as a local tax rate under section 469.177 and is not the levy of a governmental unit 36.8under chapters 276A and 473F. 36.9The commissioner shall increase or decrease the preliminary or final rate for a year as 36.10necessary to account for errors and tax base changes that affected a preliminary or final rate 36.11for either of the two preceding years. Adjustments are allowed to the extent that the necessary 36.12information is available to the commissioner at the time the rates for a year must be certified, 36.13and for the following reasons: 36.14(1) an erroneous report of taxable value by a local official; 36.15(2) an erroneous calculation by the commissioner; and 36.16(3) an increase or decrease in taxable value for commercial-industrial or seasonal 36.17residential recreational property reported on the abstracts of tax lists submitted under section 36.18275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 36.19for the same year. 36.20The commissioner may, but need not, make adjustments if the total difference in the tax 36.21levied for the year would be less than $100,000. 36.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 36.23    Sec. 19. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read: 36.24    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, 36.25"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 36.26as class 3 or class 5(1) under section 273.13, except for new text begin excluding: new text end 36.27 new text begin (1) the tax capacity attributable to the first $200,000 of market value of each parcel of new text end 36.28 new text begin commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1) new text end 36.29 new text begin and (2); new text end 36.30 new text begin (2) new text end electric generation attached machinery under class 3 new text begin ; new text end and 36.31 new text begin (3) new text end property described in section 473.625. 37.1County commercial-industrial tax capacity amounts are not adjusted for the captured 37.2net tax capacity of a tax increment financing district under section 469.177, subdivision 2, 37.3the net tax capacity of transmission lines deducted from a local government's total net tax 37.4capacity under section 273.425, or fiscal disparities contribution and distribution net tax 37.5capacities under chapter 276A or 473F. new text begin For purposes of this subdivision, the procedures new text end 37.6 new text begin for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and new text end 37.7 new text begin (2), shall apply in determining the portion of a property eligible to be considered within the new text end 37.8 new text begin first $200,000 of market value. new text end 37.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 37.10    Sec. 20. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read: 37.11    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The 37.12state general tax must be levied by applying a uniform rate to all commercial-industrial tax 37.13capacity and five percent of the state general tax must be levied by applying a uniform rate 37.14to all seasonal residential recreational tax capacity. On or before October 1 each year, the 37.15commissioner of revenue shall certify the preliminary state general levy rates to each county 37.16auditor that must be used to prepare the notices of proposed property taxes for taxes payable 37.17in the following year. By January 1 of each year, the commissioner shall certify the final 37.18state general levy rate new text begin rates new text end to each county auditor that shall be used in spreading taxes. 37.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 37.20    Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision 37.21to read: 37.22     new text begin Subd. 5. new text end new text begin Underserved municipalities distribution. new text end new text begin (a) Any municipality that: new text end 37.23 new text begin (1) lies wholly or partially within the metropolitan area as defined under section 473.121, new text end 37.24 new text begin subdivision 2, but outside the transit taxing district as defined under section 473.446, new text end 37.25 new text begin subdivision 2; and new text end 37.26 new text begin (2) has a net fiscal disparities contribution equal to or greater than eight percent of its new text end 37.27 new text begin total taxable net tax capacity, new text end 37.28 new text begin is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers new text end 37.29 new text begin within the municipality. new text end 37.30 new text begin (b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2) new text end 37.31 new text begin the municipality's net fiscal disparities contribution in excess of eight percent of its total new text end 38.1 new text begin taxable net tax capacity; provided, however, that the distribution may not exceed the tax new text end 38.2 new text begin under this section imposed on taxpayers within the municipality. new text end new text begin new text end 38.3 new text begin (c) The distribution under this subdivision must be paid to the qualifying municipality new text end 38.4 new text begin at the same time taxes are settled under sections 276.09 to 276.111. new text end 38.5 new text begin (d) For purposes of this subdivision, the following terms have the meanings given. new text end 38.6 new text begin (1) "Municipality" means a home rule or statutory city, or a town, except that in the case new text end 38.7 new text begin of a city that lies only partially within the metropolitan area, municipality means the portion new text end 38.8 new text begin of the city lying within the metropolitan area. new text end new text begin new text end 38.9 new text begin (2) "Net fiscal disparities contribution" means a municipality's fiscal disparities new text end 38.10 new text begin contribution tax capacity minus its distribution net tax capacity. new text end 38.11 new text begin (3) "Total taxable net tax capacity" means the total net tax capacity of all properties in new text end 38.12 new text begin the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and new text end 38.13 new text begin (ii) the municipality's tax increment captured net tax capacity. new text end 38.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 38.15    Sec. 22. Minnesota Statutes 2016, section 275.066, is amended to read: 38.16275.066 SPECIAL TAXING DISTRICTS; DEFINITION. 38.17    For the purposes of property taxation and property tax state aids, the term "special taxing 38.18districts" includes the following entities: 38.19    (1) watershed districts under chapter 103D; 38.20    (2) sanitary districts under sections 442A.01 to 442A.29; 38.21    (3) regional sanitary sewer districts under sections 115.61 to 115.67; 38.22    (4) regional public library districts under section 134.201; 38.23    (5) park districts under chapter 398; 38.24    (6) regional railroad authorities under chapter 398A; 38.25    (7) hospital districts under sections 447.31 to 447.38; 38.26    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15; 38.27    (9) Duluth Transit Authority under sections 458A.21 to 458A.37; 38.28    (10) regional development commissions under sections 462.381 to 462.398; 38.29    (11) housing and redevelopment authorities under sections 469.001 to 469.047; 39.1    (12) port authorities under sections 469.048 to 469.068; 39.2    (13) economic development authorities under sections 469.090 to 469.1081; 39.3    (14) Metropolitan Council under sections 473.123 to 473.549; 39.4    (15) Metropolitan Airports Commission under sections 473.601 to 473.679; 39.5    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716; 39.6    (17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 39.7437, section 1; 39.8    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6; 39.9    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 39.101 to 6; 39.11    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 39.12section 39; 39.13    (21) Middle Mississippi River Watershed Management Organization under sections 39.14103B.211 and 103B.241; 39.15    (22) emergency medical services special taxing districts under section 144F.01; 39.16    (23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251 new text begin , new text end 39.17 new text begin or 103C.331 new text end ; 39.18    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 39.19under Laws 2003, First Special Session chapter 21, article 4, section 12; 39.20    (25) an airport authority created under section 360.0426; and 39.21    (26) any other political subdivision of the state of Minnesota, excluding counties, school 39.22districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 39.23county auditor, as determined by the commissioner of revenue. 39.24    Sec. 23. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read: 39.25    Subd. 3. United States Postal Service postmark new text begin Proof of timely payment new text end . The 39.26postmark new text begin or registration mark new text end of the United States Postal Service qualifies as proof of timely 39.27mailing for this section. If the payment is sent by United States registered mail, the date of 39.28registration is the postmark date. If the payment is sent by United States certified mail, the 39.29date of the United States Postal Service postmark on the receipt given to the person presenting 39.30the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also 40.1be established by new text begin a delivery service's records or new text end other available evidence except that new text begin . new text end The 40.2postmark of a private postage meter new text begin or internet stamp new text end may not be used as proof of a timely 40.3mailing made under this section. 40.4    Sec. 24. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read: 40.5    Subdivision 1. Due dates; penalties. Except as provided in subdivisions 3 to 5, on May 40.616 or 21 days after the postmark date on the envelope containing the property tax statement, 40.7whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real 40.8estate on the current lists in the hands of the county treasurer. The new text begin (a) When the taxes against new text end 40.9 new text begin any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May new text end 40.10 new text begin 16, and the remaining one-half must be paid prior to the following October 16. If either tax new text end 40.11 new text begin amount is unpaid as of its due date, a new text end penalty is new text begin imposed new text end at a rate of two percent on homestead 40.12property until May 31 and four new text begin percent on nonhomestead property. If complete payment new text end 40.13 new text begin has not been made by the first day of the month following either due date, an additional new text end 40.14 new text begin penalty of two new text end percent on June 1. The penalty on nonhomestead property is at a rate of four 40.15percent until May 31 new text begin homestead property new text end and eight new text begin four new text end percent on June 1. This penalty 40.16does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope 40.17containing the property tax statements, whichever is later, on commercial use real property 40.18used for seasonal residential recreational purposes and classified as class 1c or 4c, and on 40.19other commercial use real property classified as class 3a, provided that over 60 percent of 40.20the gross income earned by the enterprise on the class 3a property is earned during the 40.21months of May, June, July, and August. In order for the first half of the tax due on class 3a 40.22property to be paid after May 15 and before June 1, or 21 days after the postmark date on 40.23the envelope containing the property tax statement, whichever is later, without penalty, the 40.24owner of the property must attach an affidavit to the payment attesting to compliance with 40.25the income provision of this subdivision new text begin nonhomestead property is imposed new text end . Thereafter, 40.26for both homestead and nonhomestead property, on the first day of each new text begin subsequent new text end month 40.27beginning July 1, up to and including October 1 following new text begin through December new text end , an additional 40.28penalty of one percent for each month accrues and is charged on all such unpaid taxes 40.29provided that if the due date was extended beyond May 15 as the result of any delay in 40.30mailing property tax statements no additional penalty shall accrue if the tax is paid by the 40.31extended due date. If the tax is not paid by the extended due date, then all penalties that 40.32would have accrued if the due date had been May 15 shall be charged. When the taxes 40.33against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21 40.34days after the postmark date on the envelope containing the property tax statement, whichever 40.35is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time 41.1prior to October 16 following, without penalty; but, if not so paid, then a penalty of two 41.2percent accrues thereon for homestead property and a penalty of four percent on 41.3nonhomestead property. Thereafter, for homestead property, on the first day of November 41.4an additional penalty of four percent accrues and on the first day of December following, 41.5an additional penalty of two percent accrues and is charged on all such unpaid taxes. 41.6Thereafter, for nonhomestead property, on the first day of November and December 41.7following, an additional penalty of four percent for each month accrues and is charged on 41.8all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after 41.9the postmark date on the envelope containing the property tax statement, whichever is later, 41.10the same may be paid at any time prior to October 16, with accrued penalties to the date of 41.11payment added, and thereupon no penalty attaches to the remaining one-half until October 41.1216 following new text begin the penalty must not exceed eight percent in the case of homestead property, new text end 41.13 new text begin or 12 percent in the case of nonhomestead property new text end . new text begin new text end 41.14 new text begin (b) If the property tax statement was not postmarked prior to April 25, the first half new text end 41.15 new text begin payment due date in paragraph (a) shall be 21 days from the postmark date of the property new text end 41.16 new text begin tax statement, and all penalties referenced in paragraph (a) shall be determined with regard new text end 41.17 new text begin to the later due date. new text end 41.18 new text begin (c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as new text end 41.19 new text begin specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount new text end 41.20 new text begin of the tax due. new text end 41.21 new text begin (d) For commercial use real property used for seasonal residential recreational purposes new text end 41.22 new text begin and classified as class 1c or 4c, and on other commercial use real property classified as class new text end 41.23 new text begin 3a, provided that over 60 percent of the gross income earned by the enterprise on the class new text end 41.24 new text begin 3a property is earned during the months of May, June, July, and August, the first half new text end 41.25 new text begin payment is due prior to June 1. For a class 3a property to qualify for the later due date, the new text end 41.26 new text begin owner of the property must attach an affidavit to the payment attesting to compliance with new text end 41.27 new text begin the income requirements of this paragraph. new text end 41.28     new text begin (e) new text end This section applies to payment of personal property taxes assessed against 41.29improvements to leased property, except as provided by section 277.01, subdivision 3. 41.30     new text begin (f) new text end A county may provide by resolution that in the case of a property owner that has 41.31multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 41.32installments as provided in this subdivision. 41.33     new text begin (g) new text end The county treasurer may accept payments of more or less than the exact amount of 41.34a tax installment due. Payments must be applied first to the oldest installment that is due 42.1but which has not been fully paid. If the accepted payment is less than the amount due, 42.2payments must be applied first to the penalty accrued for the year or the installment being 42.3paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 42.4payment required as a condition for filing an appeal under section 278.03 or any other law, 42.5nor does it affect the order of payment of delinquent taxes under section 280.39. 42.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 42.7    Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read: 42.8    Subd. 2. Abatement of penalty. new text begin (a) new text end The county board may, with the concurrence of the 42.9county treasurer, delegate to the county treasurer the power to abate the penalty provided 42.10for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 42.11board so elects, the county treasurer may abate the penalty on finding that the imposition 42.12of the penalty would be unjust and unreasonable. 42.13 new text begin (b) The county treasurer shall abate the penalty provided for late payment of taxes in new text end 42.14 new text begin the current year if the property tax payment is delivered by mail to the county treasurer and new text end 42.15 new text begin the envelope containing the payment is postmarked by the United States Postal Service new text end 42.16 new text begin within one business day of the due date prescribed under this section, but only if the property new text end 42.17 new text begin owner requesting the abatement has not previously received an abatement of penalty for new text end 42.18 new text begin late payment of tax under this paragraph. new text end 42.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for property taxes payable in 2018 and new text end 42.20 new text begin thereafter. new text end 42.21    Sec. 26. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read: 42.22    Subd. 3. Agricultural property. (a) In the case of class 1b agricultural homestead, class 42.232a agricultural homestead property, and class 2a agricultural nonhomestead property, new text begin and new text end 42.24 new text begin class 2b rural vacant land, new text end no penalties shall attach to the second one-half property tax 42.25payment as provided in this section if paid by November 15. Thereafter for class 1b 42.26agricultural homestead and class 2a homestead property, on November 16 following, a 42.27penalty of six percent shall accrue and be charged on all such unpaid taxes and on December 42.281 following, an additional two percent shall be charged on all such unpaid taxes. Thereafter 42.29for class 2a agricultural nonhomestead property, on November 16 following, a penalty of 42.30eight percent shall accrue and be charged on all such unpaid taxes and on December 1 42.31following, an additional four percent shall be charged on all such unpaid taxes new text begin , penalties new text end 42.32 new text begin shall attach as provided in subdivision 1 new text end . 43.1If the owner of class 1b agricultural homestead or class 2a agricultural property receives 43.2a consolidated property tax statement that shows only an aggregate of the taxes and special 43.3assessments due on that property and on other property not classified as class 1b agricultural 43.4homestead or class 2a agricultural property, the aggregate tax and special assessments shown 43.5due on the property by the consolidated statement will be due on November 15. 43.6(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b 43.7property that was subject to a second-half due date of November 15 for taxes payable in 43.82009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of 43.9those that would apply as if the second-half due date were November 15. 43.10 new text begin EFFECTIVE DATE. new text end new text begin (a) Except as provided in paragraph (b), this section is effective new text end 43.11 new text begin beginning with taxes payable in 2018. new text end 43.12 new text begin (b) For property in the northern forest region, the provisions in this section applicable new text end 43.13 new text begin to class 2b rural vacant land are effective beginning with taxes payable in 2019. new text end 43.14    Sec. 27. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to 43.15read: 43.16     new text begin Subd. 1b. new text end new text begin Conditions. new text end new text begin The county auditor may offer on a voluntary basis financial new text end 43.17 new text begin literacy counseling as part of entering into a confession of judgment. The county auditor new text end 43.18 new text begin may fund the financial literacy counseling using the fee in subdivision 8. The counseling new text end 43.19 new text begin shall not be at taxpayer expense. new text end 43.20    Sec. 28. Minnesota Statutes 2016, section 281.17, is amended to read: 43.21281.17 PERIOD FOR new text begin OF new text end REDEMPTION. 43.22 new text begin (a) new text end Except for properties new text begin described in paragraphs (b) and (c), or properties new text end for which the 43.23period of redemption has been limited under sections 281.173 and 281.174, the following 43.24periods for new text begin period of new text end redemption apply. 43.25The period of redemption for all lands sold to the state at a tax judgment sale shall be 43.26three years from the date of sale to the state of Minnesota. 43.27The period of redemption for homesteaded lands as defined in section 273.13, subdivision 43.2822 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, 43.29section 4, and sold to the state at a tax judgment sale is three years from the date of sale. 43.30 new text begin (b) new text end The period of redemption for all lands located in a targeted neighborhood new text begin community new text end 43.31as defined in Laws 1987, chapter 386, article 6, section 4 new text begin section 469.201, subdivision 10 new text end , 44.1except homesteaded lands as defined in section 273.13, subdivision 22, is one year from 44.2the date of sale. 44.3 new text begin (c) new text end The period of redemption for all real property constituting a mixed municipal solid 44.4waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 44.5one year from the date of the sale to the state of Minnesota. 44.6 new text begin (d) In determining the period of redemption, the county must use the property's new text end 44.7 new text begin classification and homestead classification for the assessment year on which the tax judgment new text end 44.8 new text begin is based. Any change in the property's classification or homestead classification after the new text end 44.9 new text begin assessment year on which the tax judgment is based does not affect the period of redemption. new text end 44.10    Sec. 29. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read: 44.11    Subd. 2. Summons and complaint. Any city, new text begin county, new text end housing and redevelopment 44.12authority, port authority, or economic development authority, in which the premises are 44.13located may commence an action in district court to reduce the period otherwise allowed 44.14for redemption under this chapter. The action must be commenced by the filing of a 44.15complaint, naming as defendants the record fee owners or the owner's personal representative, 44.16or the owner's heirs as determined by a court of competent jurisdiction, contract for deed 44.17purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records 44.18of the county auditor, the Internal Revenue Service of the United States and the Revenue 44.19Department of the state of Minnesota if tax liens against the owners or contract for deed 44.20purchasers have been recorded or filed; and any other person the plaintiff determines should 44.21be made a party. The action shall be filed in district court for the county in which the premises 44.22are located. The complaint must identify the premises by legal description. The complaint 44.23must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to 44.24section 280.01 has been made, and (3) notice of expiration of the time for redemption has 44.25not been given. 44.26The complaint must request an order reducing the redemption period to five weeks. 44.27When the complaint has been filed, the court shall issue a summons commanding the person 44.28or persons named in the complaint to appear before the court on a day and at a place stated 44.29in the summons. The appearance date shall be not less than 15 nor more than 25 days from 44.30the date of the issuing of the summons. A copy of the filed complaint must be attached to 44.31the summons. 45.1    Sec. 30. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read: 45.2    Subd. 3. Summons and complaint. Any city, new text begin county, new text end housing and redevelopment 45.3authority, port authority, or economic development authority in which the property is located 45.4may commence an action in district court to reduce the period otherwise allowed for 45.5redemption under this chapter from the date of the requested order. The action must be 45.6commenced by the filing of a complaint, naming as defendants the record fee owners or the 45.7owner's personal representative, or the owner's heirs as determined by a court of competent 45.8jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the 45.9taxpayers as shown on the records of the county auditor, the Internal Revenue Service of 45.10the United States and the revenue department of the state of Minnesota if tax liens against 45.11the owners or contract for deed purchasers have been recorded or filed, and any other person 45.12the plaintiff determines should be made a party. The action shall be filed in district court 45.13for the county in which the property is located. The complaint must identify the property 45.14by legal description. The complaint must allege (1) that the property is vacant, (2) that the 45.15tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the 45.16time for redemption has not been given. 45.17The complaint must request an order reducing the redemption period to five weeks. 45.18When the complaint has been filed, the court shall issue a summons commanding the person 45.19or persons named in the complaint to appear before the court on a day and at a place stated 45.20in the summons. The appearance date shall be not less than 15 nor more than 25 days from 45.21the date of the issuing of the summons, except that, when the United States of America is 45.22a party, the date shall be set in accordance with applicable federal law. A copy of the filed 45.23complaint must be attached to the summons. 45.24    Sec. 31. new text begin [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS. new text end 45.25 new text begin If the county auditor provides notice as required by section 281.23, the state, agency, new text end 45.26 new text begin political subdivision, or other entity that becomes the fee owner or manager of a property new text end 45.27 new text begin as a result of forfeiture due to nonpayment of real property taxes is not required to expend new text end 45.28 new text begin public funds to maintain any servitude, agreement, easement, or other encumbrance affecting new text end 45.29 new text begin the property. The fee owner or manager of a property may, at its discretion, spend public new text end 45.30 new text begin funds necessary for the maintenance, security, or management of the property. new text end 45.31    Sec. 32. new text begin [281.70] LIMITED RIGHT OF ENTRY. new text end 45.32     new text begin Subdivision 1. new text end new text begin Limited right of entry. new text end new text begin If premises described in a real estate tax judgment new text end 45.33 new text begin sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county new text end 46.1 new text begin auditor may, but is not obligated to, enter the premises to protect the premises from waste new text end 46.2 new text begin or trespass until the county auditor is notified that the premises are occupied. An affidavit new text end 46.3 new text begin of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing new text end 46.4 new text begin the premises and stating that the premises are vacant and unoccupied is prima facie evidence new text end 46.5 new text begin of the facts stated in the affidavit. If the affidavit contains a legal description of the premises, new text end 46.6 new text begin the affidavit may be recorded in the office of the county recorder or the registrar of titles in new text end 46.7 new text begin the county where the premises are located. new text end 46.8     new text begin Subd. 2. new text end new text begin Authorized actions. new text end new text begin (a) The county auditor may take one or more of the new text end 46.9 new text begin following actions to protect the premises from waste or trespass: new text end 46.10 new text begin (1) install or change locks on doors and windows; new text end 46.11 new text begin (2) board windows; and new text end 46.12 new text begin (3) other actions to prevent or minimize damage to the premises from the elements, new text end 46.13 new text begin vandalism, trespass, or other illegal activities. new text end 46.14 new text begin (b) If the county auditor installs or changes locks on premises under paragraph (a), the new text end 46.15 new text begin county auditor must promptly deliver a key to the premises to the taxpayer or any person new text end 46.16 new text begin lawfully claiming through the taxpayer upon request. new text end 46.17     new text begin Subd. 3. new text end new text begin Costs. new text end new text begin Costs incurred by the county auditor in protecting the premises from new text end 46.18 new text begin waste or trespass under this section may be added to the delinquent taxes due. The costs new text end 46.19 new text begin may bear interest to the extent provided, and interest may be added to the delinquent taxes new text end 46.20 new text begin due. new text end 46.21     new text begin Subd. 4. new text end new text begin Scope. new text end new text begin The actions authorized under this section are in addition to, and do not new text end 46.22 new text begin limit or replace, any other rights or remedies available to the county auditor under Minnesota new text end 46.23 new text begin law. new text end 46.24    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read: 46.25    Subd. 4. Sale: new text begin ; new text end method, new text begin ; new text end requirements, new text begin ; new text end effects. new text begin (a) new text end The sale authorized under 46.26subdivision 3 must be conducted by the county auditor at the county seat of the county in 46.27which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be 46.28conducted in any county facility within the county. The sale must not be for less than the 46.29appraised value except as provided in subdivision 7a. The parcels must be sold for cash 46.30only, unless the county board of the county has adopted a resolution providing for their sale 46.31on terms, in which event the resolution controls with respect to the sale. When the sale is 46.32made on terms other than for cash only (1) a payment of at least ten percent of the purchase 46.33price must be made at the time of purchase, and the balance must be paid in no more than 47.1ten equal annual installments, or (2) the payments must be made in accordance with county 47.2board policy, but in no event may the board require more than 12 installments annually, 47.3and the contract term must not be for more than ten years. Standing timber or timber products 47.4must not be removed from these lands until an amount equal to the appraised value of all 47.5standing timber or timber products on the lands at the time of purchase has been paid by 47.6the purchaser. If a parcel of land bearing standing timber or timber products is sold at public 47.7auction for more than the appraised value, the amount bid in excess of the appraised value 47.8must be allocated between the land and the timber in proportion to their respective appraised 47.9values. In that case, standing timber or timber products must not be removed from the land 47.10until the amount of the excess bid allocated to timber or timber products has been paid in 47.11addition to the appraised value of the land. The purchaser is entitled to immediate possession, 47.12subject to the provisions of any existing valid lease made in behalf of the state. 47.13 new text begin (b) new text end For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 47.14is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 47.15of the purchase price for sales occurring after December 31, 1990, is subject to interest at 47.16the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change 47.17each year on the unpaid balance in the manner provided for rate changes in section 549.09 47.18or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance 47.19on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the 47.20time that the sale occurred. 47.21 new text begin (c) Notwithstanding subdivision 7, a county board may by resolution provide for the new text end 47.22 new text begin listing and sale of individual parcels by other means, including through a real estate broker. new text end 47.23 new text begin However, if the buyer under this paragraph could have repurchased a parcel of property new text end 47.24 new text begin under section 282.012 or 282.241, that buyer may not purchase that same parcel of property new text end 47.25 new text begin at the sale under this subdivision for a purchase price less than the sum of all taxes, new text end 47.26 new text begin assessments, penalties, interest, and costs due at the time of forfeiture computed under new text end 47.27 new text begin section 282.251, and any special assessments for improvements certified as of the date of new text end 47.28 new text begin sale. This subdivision shall be liberally construed to encourage the sale and utilization of new text end 47.29 new text begin tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase new text end 47.30 new text begin compliance with land use ordinances. new text end 47.31    Sec. 34. Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read: 47.32    Subd. 6. Duties of commissioner after sale. new text begin (a) new text end When any sale has been made by the 47.33county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the 47.34commissioner of revenue such information relating to such sale, on such forms as the 48.1commissioner of revenue may prescribe as will enable the commissioner of revenue to 48.2prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is 48.3on terms; and not later than October 31 of each year the county auditor shall submit to the 48.4commissioner of revenue a statement of all instances wherein any payment of principal, 48.5interest, or current taxes on lands held under certificate, due or to be paid during the preceding 48.6calendar years, are still outstanding at the time such certificate is made. When such statement 48.7shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue 48.8may instruct the county board of the county in which the land is located to cancel said 48.9certificate of sale in the manner provided by subdivision 5, provided that upon 48.10recommendation of the county board, and where the circumstances are such that the 48.11commissioner of revenue after investigation is satisfied that the purchaser has made every 48.12effort reasonable to make payment of both the annual installment and said taxes, and that 48.13there has been no willful neglect on the part of the purchaser in meeting these obligations, 48.14then the commissioner of revenue may extend the time for the payment for such period as 48.15the commissioner may deem warranted, not to exceed one year. On payment in full of the 48.16purchase price, appropriate conveyance in fee, in such form as may be prescribed by the 48.17attorney general, shall be issued by the commissioner of revenue, which conveyance must 48.18be recorded by the county and shall have the force and effect of a patent from the state 48.19subject to easements and restrictions of record at the date of the tax judgment sale, including, 48.20but without limitation, permits for telephone and electric power lines either by underground 48.21cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for 48.22gas, liquids, or solids in suspension. 48.23 new text begin (b) The commissioner of revenue shall issue an appropriate conveyance in fee upon the new text end 48.24 new text begin receipt of a loan commitment or approval from the county auditor. For purposes of this new text end 48.25 new text begin paragraph, "loan commitment" or "loan approval" means a written commitment or approval new text end 48.26 new text begin to make a mortgage loan from a lender approved to make mortgage loans in Minnesota. new text end 48.27 new text begin The conveyance shall be issued to the county auditor where the land is located. Upon receipt new text end 48.28 new text begin of the conveyance, the county auditor shall hold the conveyance until such time as the new text end 48.29 new text begin conveyance is requested from a title company licensed to do business in Minnesota. If a new text end 48.30 new text begin request for the conveyance is not made within 45 days of the date the conveyance is issued new text end 48.31 new text begin by the commissioner of revenue, the county auditor shall return the conveyance to the new text end 48.32 new text begin commissioner. The title company making the request for the conveyance shall certify to the new text end 48.33 new text begin county auditor that the conveyance is necessary to close the purchase of the subject property new text end 48.34 new text begin within five days of the request. If the conveyance is delivered to the title company and the new text end 48.35 new text begin closing does not occur within five days of the request, the title company shall immediately new text end 48.36 new text begin return the conveyance to the county auditor, and upon receipt, the county auditor shall return new text end 49.1 new text begin the deed to the commissioner of revenue. The commissioner of revenue shall destroy all new text end 49.2 new text begin deeds returned by the county auditor pursuant to this subdivision. new text end 49.3    Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to 49.4read: 49.5     new text begin Subd. 13. new text end new text begin Online auction. new text end new text begin A county board, or a county auditor if the auditor has been new text end 49.6 new text begin delegated such authority under section 282.135, may sell tax-forfeited lands through an new text end 49.7 new text begin online auction. When an online auction is used to sell tax-forfeited lands, the county auditor new text end 49.8 new text begin shall post a physical notice of the online auction and shall publish a notice of the online new text end 49.9 new text begin auction on its Web site not less than ten days before the online auction begins, in addition new text end 49.10 new text begin to any other notice required. new text end 49.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales of tax-forfeited property that new text end 49.12 new text begin occur on or after August 1, 2017. new text end 49.13    Sec. 36. Minnesota Statutes 2016, section 282.016, is amended to read: 49.14282.016 PROHIBITED PURCHASERS. 49.15(a) A county auditor, county treasurer, county attorney, court administrator of the district 49.16court, county assessor, supervisor of assessments, deputy or clerk or an employee of such 49.17officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must 49.18not become a purchaser, either personally or as an agent or attorney for another person, of 49.19the properties offered for sale under the provisions of this chapter in the county for which 49.20the person performs duties. A person prohibited from purchasing property under this section 49.21must not directly or indirectly have another person purchase it on behalf of the prohibited 49.22purchaser for the prohibited purchaser's benefit or gain. 49.23(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or 49.24commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase 49.25lands owned by that official at the time the state became the absolute owner thereof or (2) 49.26bid upon and purchase forfeited property offered for sale under the alternate sale procedure 49.27described in section 282.01, subdivision 7a. 49.28 new text begin (c) In addition to the persons identified in paragraph (a), a county auditor may prohibit new text end 49.29 new text begin other persons and entities from becoming a purchaser, either personally or as an agent or new text end 49.30 new text begin attorney for another person or entity, of the properties offered for sale under this chapter in new text end 49.31 new text begin the following circumstances: (1) the person or entity owns another property within the new text end 49.32 new text begin county for which there are delinquent taxes owing; (2) the person or entity has held a rental new text end 50.1 new text begin license in the county and the license has been revoked within the last five years; (3) the new text end 50.2 new text begin person or entity has been the vendee of a contract for purchase of a property offered for sale new text end 50.3 new text begin under this chapter, which contract has been canceled within the last five years; or (4) the new text end 50.4 new text begin person or entity owns another property within the county for which there is an unresolved new text end 50.5 new text begin housing code violation, including an unpaid charge or fine. new text end 50.6 new text begin (d) A person prohibited from purchasing property under this section must not directly new text end 50.7 new text begin or indirectly have another person purchase it on behalf of the prohibited purchaser for the new text end 50.8 new text begin prohibited purchaser's benefit or gain. new text end 50.9    Sec. 37. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read: 50.10    Subdivision 1. Land on or adjacent to public waters. (a) All land which is the property 50.11of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether 50.12the land is held in trust for taxing districts, and which borders on or is adjacent to meandered 50.13lakes and other public waters and watercourses, and the live timber growing or being thereon, 50.14is hereby withdrawn from sale except as hereinafter provided. The authority having 50.15jurisdiction over the timber on any such lands may sell the timber as otherwise provided by 50.16law for cutting and removal under such conditions as the authority may prescribe in 50.17accordance with approved, sustained yield forestry practices. The authority having jurisdiction 50.18over the timber shall reserve such timber and impose such conditions as the authority deems 50.19necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features. 50.20Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress 50.21approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject 50.22to like restrictions as are now imposed by that act on federal lands. 50.23(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public 50.24waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary 50.25high-water mark being the waterside boundary thereof, and the land side boundary thereof 50.26being a line drawn parallel to the ordinary high-water mark and two rods distant landward 50.27therefrom, hereby is reserved for public travel thereon, and whatever the conformation of 50.28the shore line or conditions require, the authority having jurisdiction over such lands shall 50.29reserve a wider strip for such purposes. 50.30(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by 50.31the authority having jurisdiction over the land, in the manner otherwise provided by law 50.32for the sale of such lands, if the authority determines that it is in the public interest to do 50.33so. If the authority having jurisdiction over the land is not the commissioner of natural 51.1resources, the land may not be offered for sale without the prior approval of the commissioner 51.2of natural resources. 51.3(d) Where the authority having jurisdiction over lands withdrawn from sale under this 51.4section is not the commissioner of natural resources, the authority may submit proposals 51.5for disposition of the lands to the commissioner. The commissioner of natural resources 51.6shall evaluate the lands and their public benefits and make recommendations on the proposed 51.7dispositions to the committees of the legislature with jurisdiction over natural resources. 51.8The commissioner shall include any recommendations of the commissioner for disposition 51.9of lands withdrawn from sale under this section over which the commissioner has jurisdiction. 51.10The commissioner's recommendations may include a public sale, sale to a private party, 51.11acquisition by the Department of Natural Resources for public purposes, or a cooperative 51.12management agreement with, or transfer to, another unit of government. 51.13 new text begin (e) Notwithstanding this subdivision, a county may sell property governed by this section new text end 51.14 new text begin upon written authorization from the commissioner of natural resources. Prior to the sale or new text end 51.15 new text begin conveyance of lands under this subdivision, the county board must give notice of its intent new text end 51.16 new text begin to meet for that purpose as provided in section 282.01, subdivision 1. new text end 51.17    Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read: 51.18282.02 LIST OF LANDS FOR SALE; NOTICE new text begin ; ONLINE AUCTIONS new text end 51.19 new text begin PERMITTED new text end . 51.20 new text begin (a) new text end Immediately after classification and appraisal of the land, and after approval by the 51.21commissioner of natural resources when required pursuant to section 282.01, subdivision 51.223 , the county board shall provide and file with the county auditor a list of parcels of land to 51.23be offered for sale. This list shall contain a description of the parcels of land and the appraised 51.24value thereof. The auditor shall publish a notice of the intended public sale of such parcels 51.25of land and a copy of the resolution of the county board fixing the terms of the sale, if other 51.26than for cash only, by publication once a week for two weeks in the official newspaper of 51.27the county, the last publication to be not less than ten days previous to the commencement 51.28of the sale. 51.29 new text begin (b) new text end The notice shall include the parcel's description and appraised value. The notice shall 51.30also indicate the amount of any special assessments which may be the subject of a 51.31reassessment or new assessment or which may result in the imposition of a fee or charge 51.32pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall 51.33also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this 51.34section, "owner" means the taxpayer as listed in the records of the county auditor. 52.1 new text begin (c) new text end If the county board of St. Louis or Koochiching Counties determines that the sale 52.2shall take place in a county facility other than the courthouse, the notice shall specify the 52.3facility and its location. new text begin If the county board determines that the sale shall take place as an new text end 52.4 new text begin online auction under section 282.01, subdivision 13, the notice shall specify the auction new text end 52.5 new text begin Web site and the date of the auction. new text end 52.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales of tax-forfeited property that new text end 52.7 new text begin occur on or after August 1, 2017. new text end 52.8    Sec. 39. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read: 52.9    Subdivision 1. Repurchase requirements. The owner at the time of forfeiture, or the 52.10owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes 52.11was given by statute, mortgage, or other agreement, may repurchase any parcel of land 52.12claimed by the state to be forfeited to the state for taxes unless before the time repurchase 52.13is made the parcel is sold under installment payments, or otherwise, by the state as provided 52.14by law, or is under mineral prospecting permit or lease, or proceedings have been commenced 52.15by the state or any of its political subdivisions or by the United States to condemn the parcel 52.16of land. The parcel of land may be repurchased for the sum of all delinquent taxes and 52.17assessments computed under section 282.251, together with penalties, interest, and costs, 52.18that accrued or would have accrued if the parcel of land had not forfeited to the state. Except 52.19for property which was homesteaded on the date of forfeiture, repurchase is permitted during 52.20one year new text begin six months new text end only from the date of forfeiture, and in any case only after the adoption 52.21of a resolution by the board of county commissioners determining that by repurchase undue 52.22hardship or injustice resulting from the forfeiture will be corrected, or that permitting the 52.23repurchase will promote the use of the lands that will best serve the public interest. If the 52.24county board has good cause to believe that a repurchase installment payment plan for a 52.25particular parcel is unnecessary and not in the public interest, the county board may require 52.26as a condition of repurchase that the entire repurchase price be paid at the time of repurchase. 52.27A repurchase is subject to any easement, lease, or other encumbrance granted by the state 52.28before the repurchase, and if the land is located within a restricted area established by any 52.29county under Laws 1939, chapter 340, the repurchase must not be permitted unless the 52.30resolution approving the repurchase is adopted by the unanimous vote of the board of county 52.31commissioners. 52.32The person seeking to repurchase under this section shall pay all maintenance costs 52.33incurred by the county auditor during the time the property was tax-forfeited. 52.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018. new text end 53.1    Sec. 40. Minnesota Statutes 2016, section 282.322, is amended to read: 53.2282.322 FORFEITED LANDS LIST. 53.3The county board of any county may file a list of forfeited lands with the county auditor, 53.4if the board is of the opinion that such lands may be acquired by the state or any municipal 53.5subdivision thereof new text begin of the state new text end for public purposes. Upon the filing of such new text begin the new text end list new text begin of new text end 53.6 new text begin forfeited lands, new text end the county auditor shall withhold said lands from repurchase. If no proceeding 53.7shall be new text begin is new text end started to acquire such lands by the state or some municipal subdivision thereof new text begin new text end 53.8 new text begin of the state new text end within one year after the filing of such new text begin the new text end list new text begin of forfeited lands, new text end the county 53.9board shall withdraw said new text begin the new text end list and thereafter new text begin , if the property was classified as new text end 53.10 new text begin nonhomestead at the time of forfeiture, new text end the owner shall have one year new text begin not more than six new text end 53.11 new text begin months new text end in which to repurchase. 53.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018. new text end 53.13    Sec. 41. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read: 53.14    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax 53.15exclusive of special assessments, penalties, and interest payable on a claimant's homestead 53.16after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 53.17and any other state paid property tax credits in any calendar year, and after any refund 53.18claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 53.19year that the property tax is payable. In the case of a claimant who makes ground lease 53.20payments, "property taxes payable" includes the amount of the payments directly attributable 53.21to the property taxes assessed against the parcel on which the house is located. No 53.22apportionment or reduction of the "property taxes payable" shall be required for the use of 53.23a portion of the claimant's homestead for a business purpose if the claimant does not deduct 53.24any business depreciation expenses for the use of a portion of the homestead in the 53.25determination of federal adjusted gross income. For homesteads which are manufactured 53.26homes as defined in section 273.125, subdivision 8, and for homesteads which are new text begin including new text end 53.27 new text begin manufactured homes located in a manufactured home community owned by a cooperative new text end 53.28 new text begin organized under chapter 308A or 308B, and new text end park trailers taxed as manufactured homes 53.29under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent 53.30of the gross rent paid in the preceding year for the site on which the homestead is located. 53.31When a homestead is owned by two or more persons as joint tenants or tenants in common, 53.32such tenants shall determine between them which tenant may claim the property taxes 53.33payable on the homestead. If they are unable to agree, the matter shall be referred to the 54.1commissioner of revenue whose decision shall be final. Property taxes are considered payable 54.2in the year prescribed by law for payment of the taxes. 54.3In the case of a claim relating to "property taxes payable," the claimant must have owned 54.4and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 54.5property must have been classified as homestead property pursuant to section 273.124, on 54.6or before December 15 of the assessment year to which the "property taxes payable" relate; 54.7or (ii) the claimant must provide documentation from the local assessor that application for 54.8homestead classification has been made on or before December 15 of the year in which the 54.9"property taxes payable" were payable and that the assessor has approved the application. 54.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with claims for taxes payable new text end 54.11 new text begin in 2018. new text end 54.12    Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read: 54.13473H.09 EARLY TERMINATION. 54.14     new text begin Subdivision 1. new text end new text begin Public emergency. new text end Termination of an agricultural preserve earlier than 54.15a date derived through application of section 473H.08 may be permitted only in the event 54.16of a public emergency upon petition from the owner or authority to the governor. The 54.17determination of a public emergency shall be by the governor through executive order 54.18pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 54.19the reasons requiring the action and the date of termination. 54.20     new text begin Subd. 2. new text end new text begin Death of owner. new text end new text begin (a) Within 365 days of the death of an owner, an owner's new text end 54.21 new text begin spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural new text end 54.22 new text begin preserve and the covenant allowing the land to be enrolled as an agricultural preserve by new text end 54.23 new text begin notifying the authority on a form provided by the commissioner of agriculture. Termination new text end 54.24 new text begin of a covenant under this subdivision must be executed and acknowledged in the manner new text end 54.25 new text begin required by law to execute and acknowledge a deed. new text end 54.26 new text begin (b) For purposes of this subdivision, the following definitions apply: new text end 54.27 new text begin (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent new text end 54.28 new text begin was the settlor or a beneficiary of, or member of an entity permitted to own agricultural new text end 54.29 new text begin land and engage in farming under section 500.24 that owned the agricultural preserve; and new text end new text begin new text end 54.30 new text begin (2) "surviving owner" includes the executor of the estate of the decedent, trustee for a new text end 54.31 new text begin trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm new text end 54.32 new text begin land under section 500.24 of which the decedent was a partner, shareholder, or member. new text end 55.1 new text begin (c) When an agricultural preserve is terminated under this subdivision, the property is new text end 55.2 new text begin subject to additional taxes in an amount equal to 50 percent of the taxes actually levied new text end 55.3 new text begin against the property for the current taxes payable year. The additional taxes are extended new text end 55.4 new text begin against the property on the tax list for taxes payable in the current year. The additional taxes new text end 55.5 new text begin must be distributed among the jurisdictions levying taxes on the property in proportion to new text end 55.6 new text begin the current year's taxes. new text end 55.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 55.8    Sec. 43. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read: 55.9    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial 55.10operations are not allowed on land within an agricultural preserve except: 55.11(1) small on-farm commercial or industrial operations normally associated with and 55.12important to farming in the agricultural preserve area; 55.13(2) storage use of existing farm buildings that does not disrupt the integrity of the 55.14agricultural preserve; and 55.15(3) small commercial use of existing farm buildings for trades not disruptive to the 55.16integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 55.17and similar activities that a farm operator might conduct. new text begin ; and new text end 55.18 new text begin (4) wireless communication installments and related equipment and structure capable new text end 55.19 new text begin of providing technology potentially beneficial to farming activities. new text end 55.20(b) new text begin For purposes of paragraph (a), clauses (2) and (3), new text end "existing" in paragraph (a), clauses 55.21(2) and (3), means existing on August 1, 1987. 55.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following enactment. new text end 55.23    Sec. 44. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read: 55.24    Subdivision 1. Grounds. (a) The person entitled to the premises may recover possession 55.25by eviction when: 55.26(1) any person holds over real property: 55.27(i) after a sale of the property on an execution or judgment; or 55.28(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after 55.29termination of contract to convey the property; new text begin or new text end 55.30 new text begin (iii) after the expiration of the time for redemption on a real estate tax judgment sale; new text end 56.1(2) any person holds over real property after termination of the time for which it is 56.2demised or leased to that person or to the persons under whom that person holds possession, 56.3contrary to the conditions or covenants of the lease or agreement under which that person 56.4holds, or after any rent becomes due according to the terms of such lease or agreement; or 56.5(3) any tenant at will holds over after the termination of the tenancy by notice to quit. 56.6(b) A landlord may not commence an eviction action against a tenant or authorized 56.7occupant solely on the basis that the tenant or authorized occupant has been the victim of 56.8any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this 56.9paragraph should be construed to prohibit an eviction action based on a breach of the lease. 56.10    Sec. 45. Minnesota Statutes 2016, section 504B.365, subdivision 3, is amended to read: 56.11    Subd. 3. Removal and storage of property. (a) If the defendant's personal property is 56.12to be stored in a place other than the premises, the officer shall remove all personal property 56.13of the defendant at the expense of the plaintiff. 56.14(b) The defendant must make immediate payment for all expenses of removing personal 56.15property from the premises. If the defendant fails or refuses to do so, the plaintiff has a lien 56.16on all the personal property for the reasonable costs and expenses incurred in removing, 56.17caring for, storing, and transporting it to a suitable storage place. 56.18(c) The plaintiff may enforce the lien by detaining the personal property until paid. If 56.19no payment has been made for 60 days after the execution of the order to vacate, the plaintiff 56.20may new text begin dispose of the property or new text end hold a public sale as provided in sections 514.18 to 514.22. 56.21(d) If the defendant's personal property is to be stored on the premises, the officer shall 56.22enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's 56.23personal property. Section 504B.271 applies to personal property removed under this 56.24paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory to the 56.25defendant's last known address or, if the defendant has provided a different address, to the 56.26address provided. The inventory must be prepared, signed, and dated in the presence of the 56.27officer and must include the following: 56.28(1) a list of the items of personal property and a description of their condition; 56.29(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name and 56.30telephone number of a person authorized to release the personal property; and 56.31(3) the name and badge number of the officer. 56.32(e) The officer must retain a copy of the inventory. 57.1(f) The plaintiff is responsible for the proper removal, storage, and care of the defendant's 57.2personal property and is liable for damages for loss of or injury to it caused by the plaintiff's 57.3failure to exercise the same care that a reasonably careful person would exercise under 57.4similar circumstances. 57.5(g) The plaintiff shall notify the defendant of the date and approximate time the officer 57.6is scheduled to remove the defendant, family, and personal property from the premises. The 57.7notice must be sent by first class mail. In addition, the plaintiff must make a good faith 57.8effort to notify the defendant by telephone. The notice must be mailed as soon as the 57.9information regarding the date and approximate time the officer is scheduled to enforce the 57.10order is known to the plaintiff, except that the scheduling of the officer to enforce the order 57.11need not be delayed because of the notice requirement. The notice must inform the defendant 57.12that the defendant and the defendant's personal property will be removed from the premises 57.13if the defendant has not vacated the premises by the time specified in the notice. 57.14    Sec. 46. Laws 1996, chapter 471, article 3, section 51, is amended to read: 57.15    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY. 57.16    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton 57.17county board of commissioners may levy in and for the unorganized township of Sawyer 57.18an amount up to $1,500 annually for recreational purposes, beginning with taxes payable 57.19in 1997 and ending with taxes payable in 2006. 57.20    Subd. 2. Effective date. This section is effective June 1, 1996, without local approval. 57.21 new text begin EFFECTIVE DATE. new text end new text begin This section applies to taxes payable in 2018 and thereafter, and new text end 57.22 new text begin is effective the day after the Carlton County Board of Commissioners and its chief clerical new text end 57.23 new text begin officer timely complete their compliance with section 645.021, subdivisions 2 and 3. new text end 57.24    Sec. 47. new text begin LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP. new text end 57.25     new text begin Subdivision 1. new text end new text begin Membership. new text end new text begin (a) The Legislative Property Tax Reform Working Group new text end 57.26 new text begin is created and consists of the following members: new text end 57.27 new text begin (1) two representatives appointed by the chair of the tax committee of the house of new text end 57.28 new text begin representatives; new text end 57.29 new text begin (2) two representatives appointed by the minority leader of the tax committee of the new text end 57.30 new text begin house of representatives; new text end 57.31 new text begin (3) two senators appointed by the chair of the senate tax committee; and new text end 58.1 new text begin (4) two senators appointed by the minority leader of the senate tax committee. new text end 58.2 new text begin (b) Any vacancy shall be filled by appointment of the appointing authority for the vacating new text end 58.3 new text begin member. new text end 58.4 new text begin (c) Members shall be appointed by July 1, 2017. new text end 58.5     new text begin Subd. 2. new text end new text begin Duties. new text end new text begin The working group must perform the duties described in section 48. new text end 58.6     new text begin Subd. 3. new text end new text begin First meeting; chair. new text end new text begin The first appointee of the chair of the house of new text end 58.7 new text begin representatives tax committee must convene the initial meeting of the working group by new text end 58.8 new text begin July 21, 2017. The members of the working group must elect a chair and vice-chair from new text end 58.9 new text begin the members of the working group at the first meeting. new text end 58.10     new text begin Subd. 4. new text end new text begin Staff. new text end new text begin Legislative staff of the house of representatives and senate shall provide new text end 58.11 new text begin administrative and research support. The working group may request the assistance of staff new text end 58.12 new text begin from the Department of Revenue and Department of Education as necessary to facilitate its new text end 58.13 new text begin work. new text end 58.14     new text begin Subd. 5. new text end new text begin Report. new text end new text begin The working group must submit a report by February 15, 2018, to the new text end 58.15 new text begin chairs and ranking minority members of the committees in the senate and house of new text end 58.16 new text begin representatives with primary jurisdiction over taxes, presenting two or more alternatives new text end 58.17 new text begin for reform of Minnesota's property tax system. new text end new text begin new text end 58.18     new text begin Subd. 6. new text end new text begin Sunset. new text end new text begin The working group shall sunset the day following the submission of new text end 58.19 new text begin the report under subdivision 5. new text end 58.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 58.21    Sec. 48. new text begin PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX new text end 58.22 new text begin SYSTEM. new text end 58.23 new text begin The Legislative Property Tax Reform Working Group must develop proposals to new text end 58.24 new text begin restructure Minnesota's property tax system for legislative consideration. The proposals new text end 58.25 new text begin must provide for a system that reduces the complexity and cost of Minnesota's property tax new text end 58.26 new text begin system to increase transparency and understanding for taxpayers and assessors while new text end 58.27 new text begin minimizing the number of properties that experience severe tax changes. The proposals new text end 58.28 new text begin must include, but are not limited to, a reduction in the number of classifications and tiers new text end 58.29 new text begin in the current property tax system. The proposals may include a transition period of up to new text end 58.30 new text begin five years before the final system elements are fully operational. At least one proposal must new text end 58.31 new text begin be developed where the highest estimated net state cost does not exceed $250,000,000 in new text end 58.32 new text begin the first year that the proposal is fully phased in. At least one proposal must be developed new text end 59.1 new text begin where the highest estimated net state cost does not exceed $500,000,000 in the first year new text end 59.2 new text begin that the proposal is fully phased in. Each proposal should estimate the administrative cost new text end 59.3 new text begin savings to county governments and to the state government. new text end 59.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.5    Sec. 49. new text begin REPEALER. new text end 59.6 new text begin Minnesota Statutes 2016, sections 270C.9901; and 281.22, new text end new text begin are repealed. new text end 59.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.8ARTICLE 2 59.9TAXPAYER EMPOWERMENT 59.10    Section 1. Minnesota Statutes 2016, section 123B.63, subdivision 3, is amended to read: 59.11    Subd. 3. Capital project levy referendum. (a) A district may levy the local tax rate 59.12approved by a majority of the electors voting on the question to provide funds for an approved 59.13project. The election must take place no more than five years before the estimated date of 59.14commencement of the project. The referendum must new text begin may new text end be held on a date set new text begin called new text end by 59.15the board new text begin and, except as provided in paragraph (g), must be held on the first Tuesday after new text end 59.16 new text begin the first Monday in November in either an even-numbered or odd-numbered year new text end . A district 59.17must meet the requirements of section 123B.71 for projects funded under this section. If a 59.18review and comment is required under section 123B.71, subdivision 8, a referendum for a 59.19project not receiving a positive review and comment by the commissioner must be approved 59.20by at least 60 percent of the voters at the election. 59.21(b) The new text begin A new text end referendum may be called by the school board and new text begin under this subdivision new text end may 59.22be held: 59.23    (1) separately, before an election for the issuance of obligations for the project under 59.24chapter 475; or 59.25    (2) in conjunction with an election for the issuance of obligations for the project under 59.26chapter 475; or 59.27    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital 59.28project levy and the issuance of obligations for the project under chapter 475. Any obligations 59.29authorized for a project may be issued within five years of the date of the election. 59.30    (c) The ballot must provide a general description of the proposed project, state the 59.31estimated total cost of the project, state whether the project has received a positive or negative 60.1review and comment from the commissioner, state the maximum amount of the capital 60.2project levy as a percentage of net tax capacity, state the amount that will be raised by that 60.3local tax rate in the first year it is to be levied, and state the maximum number of years that 60.4the levy authorization will apply. 60.5    The ballot must contain a textual portion with the information required in this section 60.6and a question stating substantially the following: 60.7    "Shall the capital project levy proposed by the board of .......... School District No. .......... 60.8be approved?" 60.9    If approved, the amount provided by the approved local tax rate applied to the net tax 60.10capacity for the year preceding the year the levy is certified may be certified for the number 60.11of years, not to exceed ten, approved. 60.12(d) If the district proposes a new capital project to begin at the time the existing capital 60.13project expires and at the same maximum tax rate, the general description on the ballot may 60.14state that the capital project levy is being renewed and that the tax rate is not being increased 60.15from the previous year's rate. An election to renew authority under this paragraph may be 60.16called at any time that is otherwise authorized by this subdivision. The ballot notice required 60.17under section 275.60 may be modified to read: 60.18"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW 60.19AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO 60.20EXPIRE." 60.21    (e) In the event a conjunctive question proposes to authorize both the capital project 60.22levy and the issuance of obligations for the project, appropriate language authorizing the 60.23issuance of obligations must also be included in the question. 60.24    (f) The district must notify the commissioner of the results of the referendum. 60.25     new text begin (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance new text end 60.26 new text begin a district's response to a disaster or emergency may be held on a date set by the board. new text end 60.27 new text begin "Disaster" means a situation that creates an actual or imminent serious threat to the health new text end 60.28 new text begin and safety of persons, or a situation that has resulted or is likely to result in catastrophic new text end 60.29 new text begin loss to property or the environment. "Emergency" means an unforeseen combination of new text end 60.30 new text begin circumstances that calls for immediate action to prevent a disaster, identified in the new text end 60.31 new text begin referendum, from developing or occurring. new text end 60.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 60.33 new text begin referendum authorized on or after that date. new text end 61.1    Sec. 2. Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read: 61.2    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10, 61.3subdivision 1 , may be increased in the amount approved by the voters of the district at a 61.4referendum called for the purpose. The referendum may be called by the board. The 61.5referendum must be conducted one or two calendar years before the increased levy authority, 61.6if approved, first becomes payable. Only one election to approve an increase may be held 61.7in a calendar year. Unless the referendum is conducted by mail under subdivision 11, 61.8paragraph (a), the referendum must be held on the first Tuesday after the first Monday in 61.9November. The ballot must state the maximum amount of the increased revenue per adjusted 61.10pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 61.11per adjusted pupil unit that differs from year to year over the number of years for which the 61.12increased revenue is authorized or may state that the amount shall increase annually by the 61.13rate of inflation. new text begin The ballot must state the cumulative amount per pupil of any local optional new text end 61.14 new text begin revenue, board-approved referendum authority, and previous voter-approved referendum new text end 61.15 new text begin authority, if any, that the board expects to certify for the next school year. new text end For this purpose, 61.16the rate of inflation shall be the annual inflationary increase calculated under subdivision 61.172, paragraph (b). The ballot may state that existing referendum levy authority is expiring. 61.18In this case, the ballot may also compare the proposed levy authority to the existing expiring 61.19levy authority, and express the proposed increase as the amount, if any, over the expiring 61.20referendum levy authority. The ballot must designate the specific number of years, not to 61.21exceed ten, for which the referendum authorization applies. The ballot, including a ballot 61.22on the question to revoke or reduce the increased revenue amount under paragraph (c), must 61.23abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section 61.24275.60 may be modified to read, in cases of renewing existing levies at the same amount 61.25per pupil as in the previous year: 61.26"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO 61.27EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED 61.28TO EXPIRE." 61.29    The ballot may contain a textual portion with the information required in this subdivision 61.30and a question stating substantially the following: 61.31    "Shall the increase in the revenue proposed by (petition to) the board of ........., School 61.32District No. .., be approved?" 61.33    If approved, an amount equal to the approved revenue per adjusted pupil unit times the 61.34adjusted pupil units for the school year beginning in the year after the levy is certified shall 62.1be authorized for certification for the number of years approved, if applicable, or until 62.2revoked or reduced by the voters of the district at a subsequent referendum. 62.3    (b) The board must prepare and deliver by first class mail at least 15 days but no more 62.4than 30 days before the day of the referendum to each taxpayer a notice of the referendum 62.5and the proposed revenue increase. The board need not mail more than one notice to any 62.6taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 62.7those shown to be owners on the records of the county auditor or, in any county where tax 62.8statements are mailed by the county treasurer, on the records of the county treasurer. Every 62.9property owner whose name does not appear on the records of the county auditor or the 62.10county treasurer is deemed to have waived this mailed notice unless the owner has requested 62.11in writing that the county auditor or county treasurer, as the case may be, include the name 62.12on the records for this purpose. The notice must project the anticipated amount of tax increase 62.13in annual dollars for typical residential homesteads, agricultural homesteads, apartments, 62.14and commercial-industrial property within the school district. 62.15 new text begin The notice must state the cumulative and individual amounts per pupil of any local new text end 62.16 new text begin optional revenue, board-approved referendum authority, and voter-approved referendum new text end 62.17 new text begin authority, if any, that the board expects to certify for the next school year. new text end 62.18    The notice for a referendum may state that an existing referendum levy is expiring and 62.19project the anticipated amount of increase over the existing referendum levy in the first 62.20year, if any, in annual dollars for typical residential homesteads, agricultural homesteads, 62.21apartments, and commercial-industrial property within the district. 62.22    The notice must include the following statement: "Passage of this referendum will result 62.23in an increase in your property taxes." However, in cases of renewing existing levies, the 62.24notice may include the following statement: "Passage of this referendum extends an existing 62.25operating referendum at the same amount per pupil as in the previous year." 62.26    (c) A referendum on the question of revoking or reducing the increased revenue amount 62.27authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke 62.28or reduce the revenue amount must state the amount per adjusted pupil unit by which the 62.29authority is to be reduced. Revenue authority approved by the voters of the district pursuant 62.30to paragraph (a) must be available to the school district at least once before it is subject to 62.31a referendum on its revocation or reduction for subsequent years. Only one revocation or 62.32reduction referendum may be held to revoke or reduce referendum revenue for any specific 62.33year and for years thereafter. 63.1    (d) The approval of 50 percent plus one of those voting on the question is required to 63.2pass a referendum authorized by this subdivision. 63.3    (e) At least 15 days before the day of the referendum, the district must submit a copy of 63.4the notice required under paragraph (b) to the commissioner and to the county auditor of 63.5each county in which the district is located. Within 15 days after the results of the referendum 63.6have been certified by the board, or in the case of a recount, the certification of the results 63.7of the recount by the canvassing board, the district must notify the commissioner of the 63.8results of the referendum. 63.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 63.10 new text begin referendum authorized on or after that date. new text end 63.11    Sec. 3. Minnesota Statutes 2016, section 205.10, subdivision 1, is amended to read: 63.12    Subdivision 1. Questions. Special elections may be held in a city or town on a question 63.13on which the voters are authorized by law or charter to pass judgment. new text begin A special election new text end 63.14 new text begin on a question may only be held by a city on the first Tuesday after the first Monday in new text end 63.15 new text begin November in either an even-numbered or odd-numbered year. A special election on a new text end 63.16 new text begin question held by a town may be held on the same day as the annual town meeting or on the new text end 63.17 new text begin first Tuesday after the first Monday in November in either an even-numbered or new text end 63.18 new text begin odd-numbered year. new text end A special election may be ordered by the governing body of the 63.19municipality on its own motion or, on a question that has not been submitted to the voters 63.20in an election within the previous six months, upon a petition signed by a number of voters 63.21equal to 20 percent of the votes cast at the last municipal general election. A question is 63.22carried only with the majority in its favor required by law or charter. The election officials 63.23for a special election shall be the same as for the most recent municipal general election 63.24unless changed according to law. Otherwise special elections shall be conducted and the 63.25returns made in the manner provided for the municipal general election. 63.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 63.27 new text begin referendum authorized on or after that date. new text end 63.28    Sec. 4. Minnesota Statutes 2016, section 205A.05, subdivision 1, is amended to read: 63.29    Subdivision 1. Questions. (a) Special elections must be held for a school district on a 63.30question on which the voters are authorized by law to pass judgment. new text begin The special election new text end 63.31 new text begin on a question may only be held on the first Tuesday after the first Monday in November of new text end 63.32 new text begin either an even-numbered or odd-numbered year. new text end The school board may on its own motion 63.33call a special election to vote on any matter requiring approval of the voters of a district. 64.1Upon petition filed with the school board of 50 or more voters of the school district or five 64.2percent of the number of voters voting at the preceding school district general election, 64.3whichever is greater, the school board shall by resolution call a special election to vote on 64.4any matter requiring approval of the voters of a district. A question is carried only with the 64.5majority in its favor required by law. The election officials for a special election are the 64.6same as for the most recent school district general election unless changed according to 64.7law. Otherwise, special elections must be conducted and the returns made in the manner 64.8provided for the school district general election. 64.9    (b) A special election may not be held: 64.10    (1) during the 56 days before and the 56 days after a regularly scheduled primary or 64.11general election conducted wholly or partially within the school district; 64.12    (2) on the date of a regularly scheduled town election or annual meeting in March 64.13conducted wholly or partially within the school district; or 64.14    (3) during the 30 days before or the 30 days after a regularly scheduled town election 64.15in March conducted wholly or partially within the school district. 64.16    (c) Notwithstanding any other law to the contrary, the time period in which a special 64.17election must be conducted under any other law may be extended by the school board to 64.18conform with the requirements of this subdivision. 64.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 64.20 new text begin referendum authorized on or after that date. new text end 64.21    Sec. 5. Minnesota Statutes 2016, section 216B.46, is amended to read: 64.22216B.46 MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION. 64.23Any municipality which desires to acquire the property of a public utility as authorized 64.24under the provisions of section 216B.45 may determine to do so by resolution of the 64.25governing body of the municipality taken after a public hearing of which at least 30 days' 64.26published notice shall be given as determined by the governing body. The determination 64.27shall become effective when ratified by a majority of the qualified electors voting on the 64.28question at a special election to be held for that purpose, not less than 60 nor more than 120 64.29days after the resolution of the governing body of the municipality new text begin on the first Tuesday after new text end 64.30 new text begin the first Monday in November in either an even-numbered or odd-numbered year new text end . 64.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 64.32 new text begin referendum authorized on or after that date. new text end 65.1    Sec. 6. Minnesota Statutes 2016, section 237.19, is amended to read: 65.2237.19 MUNICIPAL TELECOMMUNICATIONS SERVICES. 65.3Any municipality shall have the right to own and operate a telephone exchange within 65.4its own borders, subject to the provisions of this chapter. It may construct such plant, or 65.5purchase an existing plant by agreement with the owner, or where it cannot agree with the 65.6owner on price, it may acquire an existing plant by condemnation, as hereinafter provided, 65.7but in no case shall a municipality construct or purchase such a plant or proceed to acquire 65.8an existing plant by condemnation until such action by it is authorized by a majority of the 65.9electors voting upon the proposition at a general new text begin an new text end election or a special election called for 65.10that purpose new text begin held on the first Tuesday after the first Monday in November in either an new text end 65.11 new text begin even-numbered or odd-numbered year new text end , and if the proposal is to construct a new exchange 65.12where an exchange already exists, it shall not be authorized to do so unless 65 percent of 65.13those voting thereon vote in favor of the undertaking. A municipality that owns and operates 65.14a telephone exchange may enter into a joint venture as a partner or shareholder with a 65.15telecommunications organization to provide telecommunications services within its service 65.16area. 65.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 65.18 new text begin referendum authorized on or after that date. new text end 65.19    Sec. 7. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read: 65.20    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and 65.21the county treasurer shall deliver after November 10 and on or before November 24 each 65.22year, by first class mail to each taxpayer at the address listed on the county's current year's 65.23assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 65.24the treasurer may send the notice in electronic form or by electronic mail instead of on paper 65.25or by ordinary mail. 65.26    (b) The commissioner of revenue shall prescribe the form of the notice. 65.27    (c) The notice must inform taxpayers that it contains the amount of property taxes each 65.28taxing authority proposes to collect for taxes payable the following year. In the case of a 65.29town, or in the case of the state general tax, the final tax amount will be its proposed tax. 65.30The notice must clearly state for each city that has a population over 500, county, school 65.31district, regional library authority established under section 134.201, and metropolitan taxing 65.32districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 65.33in which the budget and levy will be discussed and public input allowed, prior to the final 66.1budget and levy determination. The taxing authorities must provide the county auditor with 66.2the information to be included in the notice on or before the time it certifies its proposed 66.3levy under subdivision 1. The public must be allowed to speak at that meeting, which must 66.4occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 66.5number for the taxing authority that taxpayers may call if they have questions related to the 66.6notice and an address where comments will be received by mail, except that no notice 66.7required under this section shall be interpreted as requiring the printing of a personal 66.8telephone number or address as the contact information for a taxing authority. If a taxing 66.9authority does not maintain public offices where telephone calls can be received by the 66.10authority, the authority may inform the county of the lack of a public telephone number and 66.11the county shall not list a telephone number for that taxing authority. 66.12    (d) The notice must state for each parcel: 66.13    (1) the market value of the property as determined under section 273.11, and used for 66.14computing property taxes payable in the following year and for taxes payable in the current 66.15year as each appears in the records of the county assessor on November 1 of the current 66.16year; and, in the case of residential property, whether the property is classified as homestead 66.17or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 66.18values apply and that the values are final values; 66.19    (2) the items listed below, shown separately by county, city or town, and state general 66.20tax, agricultural homestead credit under section 273.1384, voter approved school levy, other 66.21local school levy, and the sum of the special taxing districts, and as a total of all taxing 66.22authorities: 66.23    (i) the actual tax for taxes payable in the current year; and 66.24    (ii) the proposed tax amount. 66.25    If the county levy under clause (2) includes an amount for a lake improvement district 66.26as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 66.27must be separately stated from the remaining county levy amount. 66.28    In the case of a town or the state general tax, the final tax shall also be its proposed tax 66.29unless the town changes its levy at a special town meeting under section 365.52. If a school 66.30district has certified under section 126C.17, subdivision 9, that a referendum will be held 66.31in the school district at the November general election, the county auditor must note next 66.32to the school district's proposed amount that a referendum is pending and that, if approved 66.33by the voters, the tax amount may be higher than shown on the notice. In the case of the 66.34city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 67.1from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 67.2the St. Paul Library Agency must be listed separately from the remaining amount of the 67.3city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 67.4listed separately from the remaining amount of the county's levy. In the case of a parcel 67.5where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 67.6applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 67.7capacity subject to the areawide tax must each be stated separately and not included in the 67.8sum of the special taxing districts; and 67.9    (3) the increase or decrease between the total taxes payable in the current year and the 67.10total proposed taxes, expressed as a percentage. new text begin ; and new text end 67.11     new text begin (4) a statement at the top of the notice stating the following: if a county's or city's new text end 67.12 new text begin proposed levy for next year is greater than its actual levy for the current year, the voters new text end 67.13 new text begin may have the right to petition for a referendum on next year's levy certification, according new text end 67.14 new text begin to Minnesota Statutes, section 275.80, provided that the final levy that the local government new text end 67.15 new text begin certifies in December of this year is also greater than its levy for the current year. new text end 67.16    For purposes of this section, the amount of the tax on homesteads qualifying under the 67.17senior citizens' property tax deferral program under chapter 290B is the total amount of 67.18property tax before subtraction of the deferred property tax amount. 67.19    (e) The notice must clearly state that the proposed or final taxes do not include the 67.20following: 67.21    (1) special assessments; 67.22    (2) levies approved by the voters after the date the proposed taxes are certified, including 67.23bond referenda and school district levy referenda; 67.24    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 67.25in November of the levy year as provided under section 275.73; 67.26    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 67.27after the date the proposed taxes are certified; 67.28    (5) amounts necessary to pay tort judgments against the taxing authority that become 67.29final after the date the proposed taxes are certified; and 67.30    (6) the contamination tax imposed on properties which received market value reductions 67.31for contamination. 68.1    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 68.2county treasurer to deliver the notice as required in this section does not invalidate the 68.3proposed or final tax levy or the taxes payable pursuant to the tax levy. 68.4    (g) If the notice the taxpayer receives under this section lists the property as 68.5nonhomestead, and satisfactory documentation is provided to the county assessor by the 68.6applicable deadline, and the property qualifies for the homestead classification in that 68.7assessment year, the assessor shall reclassify the property to homestead for taxes payable 68.8in the following year. 68.9    (h) In the case of class 4 residential property used as a residence for lease or rental 68.10periods of 30 days or more, the taxpayer must either: 68.11    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 68.12or lessee; or 68.13    (2) post a copy of the notice in a conspicuous place on the premises of the property. 68.14    The notice must be mailed or posted by the taxpayer by November 27 or within three 68.15days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 68.16of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 68.17notice must be mailed in order to fulfill the requirements of this paragraph. 68.18    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 68.19districts" means the following taxing districts in the seven-county metropolitan area that 68.20levy a property tax for any of the specified purposes listed below: 68.21    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 68.22473.521 , 473.547, or 473.834; 68.23    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and 68.24    (3) Metropolitan Mosquito Control Commission under section 473.711. 68.25    For purposes of this section, any levies made by the regional rail authorities in the county 68.26of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 68.27shall be included with the appropriate county's levy. 68.28    (j) The governing body of a county, city, or school district may, with the consent of the 68.29county board, include supplemental information with the statement of proposed property 68.30taxes about the impact of state aid increases or decreases on property tax increases or 68.31decreases and on the level of services provided in the affected jurisdiction. This supplemental 68.32information may include information for the following year, the current year, and for as 69.1many consecutive preceding years as deemed appropriate by the governing body of the 69.2county, city, or school district. It may include only information regarding: 69.3    (1) the impact of inflation as measured by the implicit price deflator for state and local 69.4government purchases; 69.5    (2) population growth and decline; 69.6    (3) state or federal government action; and 69.7    (4) other financial factors that affect the level of property taxation and local services 69.8that the governing body of the county, city, or school district may deem appropriate to 69.9include. 69.10    The information may be presented using tables, written narrative, and graphic 69.11representations and may contain instruction toward further sources of information or 69.12opportunity for comment. 69.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 69.14    Sec. 8. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read: 69.15    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the 69.16taxes voted by cities, counties, school districts, and special districts shall be certified by the 69.17proper authorities to the county auditor on or before five working days after December 20 69.18in each year. A town must certify the levy adopted by the town board to the county auditor 69.19by September 15 each year. If the town board modifies the levy at a special town meeting 69.20after September 15, the town board must recertify its levy to the county auditor on or before 69.21five working days after December 20. new text begin If a city or county levy is subject to a referendum new text end 69.22 new text begin under section 275.80 and the referendum was approved by the voters, the maximum levy new text end 69.23 new text begin certified under this section is the proposed levy certified under section 275.065. If the new text end 69.24 new text begin referendum was not approved, the maximum amount of levy that a city or county may new text end 69.25 new text begin approve under this section is the maximum alternative levy allowed in section 275.80, new text end 69.26 new text begin subdivision 2. The city or county may choose to certify a levy less than the allowed maximum new text end 69.27 new text begin amount. new text end If a city, town, county, school district, or special district fails to certify its levy by 69.28that date, its levy shall be the amount levied by it for the preceding year. 69.29(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251 69.30shall be separately certified by the county to the county auditor on or before five working 69.31days after December 20 in each year. The taxes certified shall not be reduced by the county 69.32auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify 69.33its levy by that date, its levy shall be the amount levied by it for the preceding year. 70.1(ii) For purposes of the proposed property tax notice under section 275.065 and the 70.2property tax statement under section 276.04, for the first year in which the county implements 70.3the provisions of this paragraph, the county auditor shall reduce the county's levy for the 70.4preceding year to reflect any amount levied for water management purposes under clause 70.5(i) included in the county's levy. 70.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 70.7    Sec. 9. Minnesota Statutes 2016, section 275.60, is amended to read: 70.8275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE. 70.9(a) Notwithstanding any general or special law or any charter provisions, but subject to 70.10section 126C.17, subdivision 9, any question submitted to the voters by any local 70.11governmental subdivision at a general or special new text begin an new text end election after June 8, 1995 new text begin June 30, new text end 70.12 new text begin 2017 new text end , authorizing a property tax levy or tax rate increase, including the issuance of debt 70.13obligations payable in whole or in part from property taxes, must include on the ballot the 70.14following notice in boldface type: 70.15"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A 70.16PROPERTY TAX INCREASE." 70.17(b) For purposes of this section and section 275.61, "local governmental subdivision" 70.18includes counties, home rule and statutory cities, towns, school districts, and all special 70.19taxing districts. This statement is in addition to any general or special laws or any charter 70.20provisions that govern the contents of a ballot question and, in the case of a question on the 70.21issuance of debt obligations, may be supplemented by a description of revenues pledged to 70.22payment of the obligations that are intended as the primary source of payment. 70.23 new text begin (c) An election under this section must be held on the first Tuesday after the first Monday new text end 70.24 new text begin in November of either an even-numbered or odd-numbered year. This paragraph does not new text end 70.25 new text begin apply to an election on levying a tax or issuing debt obligations to finance the local new text end 70.26 new text begin government's response to a disaster or emergency. An election for these purposes may be new text end 70.27 new text begin held on a date set by the governing body. "Disaster" means a situation that creates an actual new text end 70.28 new text begin or imminent serious threat to the health and safety of persons, or a situation that has resulted new text end 70.29 new text begin or is likely to result in catastrophic loss to property or the environment. "Emergency" means new text end 70.30 new text begin an unforeseen combination of circumstances that calls for immediate action to prevent a new text end 70.31 new text begin disaster, identified in the referendum, from developing or occurring. new text end 71.1(c) new text begin (d) new text end This section does not apply to a school district bond election if the debt service 71.2payments are to be made entirely from transfers of revenue from the capital fund to the debt 71.3service fund. 71.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 71.5 new text begin referendum authorized on or after that date. new text end 71.6    Sec. 10. new text begin [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED. new text end 71.7     new text begin Subdivision 1. new text end new text begin Citation. new text end new text begin This section shall be known as the "Property Tax Payers' new text end 71.8 new text begin Empowerment Act." new text end 71.9     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the new text end 71.10 new text begin meanings given. new text end 71.11 new text begin (b) "General levy" means the total levy certified under section 275.07 by the local new text end 71.12 new text begin governmental unit, excluding any levy that was approved by the voters at a general or special new text end 71.13 new text begin election. new text end 71.14 new text begin (c) "Local governmental unit" means a county or a statutory or home rule charter city new text end 71.15 new text begin with a population of 500 or greater. new text end 71.16 new text begin (d) "Maximum alternative levy" for taxes levied in a current year by a local governmental new text end 71.17 new text begin unit means the sum of (1) its nondebt levy certified two years previous to the current year, new text end 71.18 new text begin and (2) the amount of its proposed levy for the current year levied for the purposes listed new text end 71.19 new text begin in section 275.70, subdivision 5, clauses (1) to (5). new text end 71.20 new text begin (e) "Nondebt levy" means the total levy certified under section 275.07 by the local new text end 71.21 new text begin governmental unit, minus any amount levied for the purposes listed in section 275.70, new text end 71.22 new text begin subdivision 5, clauses (1) to (5). new text end 71.23     new text begin Subd. 3. new text end new text begin Levy increase; reverse referendum authority. new text end new text begin If the certified general levy new text end 71.24 new text begin exceeds the general levy in the previous year, the voters may petition for a referendum on new text end 71.25 new text begin the levy to be certified for the following year. The county auditor must publish information new text end 71.26 new text begin on the right to petition for a referendum as provided in section 276.04, subdivisions 1 and new text end 71.27 new text begin 2. If by June 30, a petition signed by the voters equal in number to ten percent of the votes new text end 71.28 new text begin cast in the last general election requesting a vote on the levy is filed with the county auditor, new text end 71.29 new text begin a question on the levy to be certified for the current year must be placed on the ballot at new text end 71.30 new text begin either the general election or at a special election held on the first Tuesday after the first new text end 71.31 new text begin Monday in November of the current calendar year. new text end 72.1     new text begin Subd. 4. new text end new text begin Prohibition against new debt before the election. new text end new text begin Notwithstanding any other new text end 72.2 new text begin provision of law, ordinance, or local charter provision, a county or city must not issue any new text end 72.3 new text begin new debt or obligation from the time the petition for referendum is filed with the county new text end 72.4 new text begin auditor under subdivision 3 until the day after the referendum required under this section new text end 72.5 new text begin is held, except as allowed in this subdivision. Refunding bonds and bonds that have already new text end 72.6 new text begin received voter approval are exempt from the prohibition in this subdivision. For purposes new text end 72.7 new text begin of this subdivision, "obligation" has the meaning given in section 475.51, subdivision 3. new text end 72.8     new text begin Subd. 5. new text end new text begin Ballot question; consequence of vote. new text end new text begin (a) The question submitted to the voters new text end 72.9 new text begin as required under subdivision 3 shall take the following form: new text end 72.10 new text begin "The governing body of ....... has imposed the following property tax levy in the last new text end 72.11 new text begin two years and is proposing the following maximum levy increase for the coming year: new text end 72.12 new text begin (previous payable year) new text end new text begin (current payable year) new text end new text begin (coming payable year) new text end 72.13 new text begin Total levy new text end new text begin Total levy new text end new text begin Maximum proposed levy new text end 72.14 new text begin $....... new text end new text begin $....... new text end new text begin $....... new text end 72.15 new text begin Shall the governing body of ....... be allowed to impose the maximum proposed levy new text end 72.16 new text begin listed above? new text end 72.17 new text begin Yes new text end ..... 72.18 new text begin No new text end ..... 72.19 new text begin If the majority of votes cast are "no," its maximum allowed property tax levy for the new text end 72.20 new text begin coming year will be reduced to its maximum alternative levy of ......." new text end 72.21 new text begin (b) If a city is subject to this provision, it will provide the county auditor with information new text end 72.22 new text begin on its proposed levy by September 30 necessary to calculate the maximum alternative levy new text end 72.23 new text begin under subdivision 2. new text end 72.24 new text begin (c) If the majority of votes cast on this question are in the affirmative, the levy certified new text end 72.25 new text begin by the local governmental unit under section 275.07 must be less than or equal to its proposed new text end 72.26 new text begin levy under section 275.065. If the question does not receive sufficient affirmative votes, new text end 72.27 new text begin the levy amount that the local governmental unit certifies under section 275.07 in the current new text end 72.28 new text begin year must be less than or equal to its maximum alternative levy as defined in subdivision new text end 72.29 new text begin 2. new text end 72.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 73.1    Sec. 11. Minnesota Statutes 2016, section 276.04, subdivision 1, is amended to read: 73.2    Subdivision 1. Auditor to publish rates. On receiving the tax lists from the county 73.3auditor, the county treasurer shall, if directed by the county board, give three weeks' published 73.4notice in a newspaper specifying the rates of taxation for all general purposes and the 73.5amounts raised for each specific purpose. new text begin If a city or county is subject to a petition of the new text end 73.6 new text begin voters due to a general levy increase as provided in section 275.80, the published notice new text end 73.7 new text begin must also include the general levy for the current year and the previous year for that city or new text end 73.8 new text begin county along with the following statement: new text end 73.9 new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current new text end 73.10 new text begin year, the voters in that jurisdiction have the right to petition for a referendum under Minnesota new text end 73.11 new text begin Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum, a new text end 73.12 new text begin petition signed by voters equal to ten percent of the votes cast in the last general election new text end 73.13 new text begin must be filed with the county auditor by June 30 of the current year." new text end 73.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 73.15    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read: 73.16    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of 73.17the tax statements. The commissioner of revenue shall prescribe the form of the property 73.18tax statement and its contents. The tax statement must not state or imply that property tax 73.19credits are paid by the state of Minnesota. The statement must contain a tabulated statement 73.20of the dollar amount due to each taxing authority and the amount of the state tax from the 73.21parcel of real property for which a particular tax statement is prepared. The dollar amounts 73.22attributable to the county, the state tax, the voter approved school tax, the other local school 73.23tax, the township or municipality, and the total of the metropolitan special taxing districts 73.24as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 73.25amounts due all other special taxing districts, if any, may be aggregated except that any 73.26levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 73.27Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 73.28under the appropriate county's levy. If the county levy under this paragraph includes an 73.29amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 73.30the amount attributable for that purpose must be separately stated from the remaining county 73.31levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 73.32an amount for public library service under section 134.07, the amount attributable for that 73.33purpose may be separated from the remaining county levy amount. The amount of the tax 73.34on homesteads qualifying under the senior citizens' property tax deferral program under 74.1chapter 290B is the total amount of property tax before subtraction of the deferred property 74.2tax amount. The amount of the tax on contamination value imposed under sections 270.91 74.3to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 74.4amount of any special assessments, may be rounded to the nearest even whole dollar. For 74.5purposes of this section whole odd-numbered dollars may be adjusted to the next higher 74.6even-numbered dollar. The amount of market value excluded under section 273.11, 74.7subdivision 16 , if any, must also be listed on the tax statement. 74.8    (b) The property tax statements for manufactured homes and sectional structures taxed 74.9as personal property shall contain the same information that is required on the tax statements 74.10for real property. 74.11    (c) Real and personal property tax statements must contain the following information 74.12in the order given in this paragraph. The information must contain the current year tax 74.13information in the right column with the corresponding information for the previous year 74.14in a column on the left: 74.15    (1) the property's estimated market value under section 273.11, subdivision 1; 74.16    (2) the property's homestead market value exclusion under section 273.13, subdivision 74.1735; 74.18    (3) the property's taxable market value under section 272.03, subdivision 15; 74.19    (4) the property's gross tax, before credits; 74.20    (5) for homestead agricultural properties, the credit under section 273.1384; 74.21    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 74.22273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 74.23received under section 273.135 must be separately stated and identified as "taconite tax 74.24relief"; and 74.25    (7) the net tax payable in the manner required in paragraph (a). 74.26 new text begin (d) If a city or county is subject to a petition of the voters due to a general levy increase new text end 74.27 new text begin as provided in section 275.80, the tax statement must also include the general levy for the new text end 74.28 new text begin current year and the previous year for that city or county along with the following statement: new text end 74.29     new text begin "Because the governing body of ....... increased its nonvoter-approved levy in the current new text end 74.30 new text begin year, the voters in that jurisdiction have the right to petition for a referendum on that new text end 74.31 new text begin jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the new text end 74.32 new text begin referendum, a petition signed by voters equal to ten percent of the votes cast in the last new text end 75.1 new text begin general election on this issue must be filed with the county auditor by June 30 of the current new text end 75.2 new text begin year." new text end 75.3    (d) new text begin (e) new text end If the county uses envelopes for mailing property tax statements and if the county 75.4agrees, a taxing district may include a notice with the property tax statement notifying 75.5taxpayers when the taxing district will begin its budget deliberations for the current year, 75.6and encouraging taxpayers to attend the hearings. If the county allows notices to be included 75.7in the envelope containing the property tax statement, and if more than one taxing district 75.8relative to a given property decides to include a notice with the tax statement, the county 75.9treasurer or auditor must coordinate the process and may combine the information on a 75.10single announcement. 75.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2018 and thereafter. new text end 75.12    Sec. 13. Minnesota Statutes 2016, section 412.221, subdivision 2, is amended to read: 75.13    Subd. 2. Contracts. The council shall have power to make such contracts as may be 75.14deemed necessary or desirable to make effective any power possessed by the council. The 75.15city may purchase personal property through a conditional sales contract and real property 75.16through a contract for deed under which contracts the seller is confined to the remedy of 75.17recovery of the property in case of nonpayment of all or part of the purchase price, which 75.18shall be payable over a period of not to exceed five years. When the contract price of property 75.19to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent 75.20of the estimated market value of the city, the city may not enter into such a contract for at 75.21least ten days after publication in the official newspaper of a council resolution determining 75.22to purchase property by such a contract; and, if before the end of that time a petition asking 75.23for an election on the proposition signed by voters equal to ten percent of the number of 75.24voters at the last regular city election is filed with the clerk, the city may not enter into such 75.25a contract until the proposition has been approved by a majority of the votes cast on the 75.26question at a regular or special new text begin an new text end election new text begin held on the first Tuesday after the first Monday new text end 75.27 new text begin in November of either an even-numbered or odd-numbered year new text end . 75.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 75.29 new text begin referendum authorized on or after that date. new text end 75.30    Sec. 14. Minnesota Statutes 2016, section 412.301, is amended to read: 75.31412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 76.1    (a) The council may issue certificates of indebtedness or capital notes subject to the city 76.2debt limits to purchase capital equipment. 76.3    (b) For purposes of this section, "capital equipment" means: 76.4    (1) public safety equipment, ambulance and other medical equipment, road construction 76.5and maintenance equipment, and other capital equipment; and 76.6    (2) computer hardware and software, whether bundled with machinery or equipment or 76.7unbundled, together with application development services and training related to the use 76.8of the computer hardware or software. 76.9    (c) The equipment or software must have an expected useful life at least as long as the 76.10terms of the certificates or notes. 76.11    (d) Such certificates or notes shall be payable in not more than ten years and shall be 76.12issued on such terms and in such manner as the council may determine. 76.13    (e) If the amount of the certificates or notes to be issued to finance any such purchase 76.14exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 76.15not be issued for at least ten days after publication in the official newspaper of a council 76.16resolution determining to issue them; and if before the end of that time, a petition asking 76.17for an election on the proposition signed by voters equal to ten percent of the number of 76.18voters at the last regular municipal election is filed with the clerk, such certificates or notes 76.19shall not be issued until the proposition of their issuance has been approved by a majority 76.20of the votes cast on the question at a regular or special new text begin an new text end election new text begin held on the first Tuesday new text end 76.21 new text begin after the first Monday in November of either an even-numbered or odd-numbered year new text end . 76.22    (f) A tax levy shall be made for the payment of the principal and interest on such 76.23certificates or notes, in accordance with section 475.61, as in the case of bonds. 76.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 76.25 new text begin referendum authorized on or after that date. new text end 76.26    Sec. 15. Minnesota Statutes 2016, section 426.19, subdivision 2, is amended to read: 76.27    Subd. 2. Referendum in certain cases. Before the pledge of any such revenues to the 76.28payment of any such bonds, warrants or certificates of indebtedness, except bonds, warrants 76.29or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor 76.30store shall be made, the governing body shall submit to the voters of the city the question 76.31of whether such revenues shall be so pledged and such pledge shall not be binding on the 76.32city until it shall have been approved by a majority of the voters voting on the question at 77.1either a general new text begin an new text end election or special election called for that purpose new text begin held on the first Tuesday new text end 77.2 new text begin after the first Monday in November of either an even-numbered or odd-numbered year new text end . No 77.3election shall be required for pledge of such revenues for payment of bonds, warrants or 77.4certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor 77.5store. 77.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 77.7 new text begin referendum authorized on or after that date. new text end 77.8    Sec. 16. Minnesota Statutes 2016, section 447.045, subdivision 2, is amended to read: 77.9    Subd. 2. Statutory city; on-sale and off-sale store. If the voters of a statutory city 77.10operating an on-sale and off-sale municipal liquor store, at a general or special new text begin an new text end election new text begin new text end 77.11 new text begin held on the first Tuesday after the first Monday in November of either an even-numbered new text end 77.12 new text begin or odd-numbered year new text end , vote in favor of contributing from its liquor dispensary fund toward 77.13the construction of a community hospital, the city council may appropriate not more than 77.14$60,000 from the fund to any incorporated nonprofit hospital association to build a 77.15community hospital in the statutory city. The hospital must be governed by a board including 77.16two or more members of the statutory city council and be open to all residents of the statutory 77.17city on equal terms. This appropriation must not exceed one-half the total cost of construction 77.18of the hospital. The council must not appropriate the money unless the average net earnings 77.19of the on-sale and off-sale municipal liquor store have been at least $10,000 for the last five 77.20completed fiscal years before the date of the appropriation. 77.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 77.22 new text begin referendum authorized on or after that date. new text end 77.23    Sec. 17. Minnesota Statutes 2016, section 447.045, subdivision 3, is amended to read: 77.24    Subd. 3. Statutory city; off-sale or on- and off-sale store. (a) If a statutory city operates 77.25an off-sale, or an on- and off-sale municipal liquor store it may provide for a vote at a general 77.26or special new text begin an new text end election new text begin held on the first Tuesday after the first Monday in November of either new text end 77.27 new text begin an even-numbered or odd-numbered year new text end on the question of contributing from the city liquor 77.28dispensary fund to build, maintain, and operate a community hospital. If the vote is in favor, 77.29the city council may appropriate money from the fund to an incorporated hospital association 77.30for a period of four years. The appropriation must be from the net profits or proceeds of the 77.31municipal liquor store. It must not exceed $4,000 a year for hospital construction and 77.32maintenance or $1,000 a year for operation. The hospital must be open to all residents of 77.33the community on equal terms. 78.1(b) The council must not appropriate the money unless the average net earnings of the 78.2off-sale, or on- and off-sale municipal liquor store have been at least $8,000 for the last two 78.3completed years before the date of the appropriation. 78.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 78.5 new text begin referendum authorized on or after that date. new text end 78.6    Sec. 18. Minnesota Statutes 2016, section 447.045, subdivision 4, is amended to read: 78.7    Subd. 4. Fourth class city operating store. If a city of the fourth class operates a 78.8municipal liquor store, it may provide for a vote at a general or special new text begin an new text end election new text begin held on new text end 78.9 new text begin the first Tuesday after the first Monday in November of either an even-numbered or new text end 78.10 new text begin odd-numbered year new text end on the question of contributing from the profit in the city liquor 78.11dispensary fund to build, equip, and maintain a community hospital within the city limits. 78.12If the vote is in favor, the city council may appropriate not more than $200,000 from profits 78.13in the fund for the purpose. The hospital must be open to all residents of the city on equal 78.14terms. 78.15The city may issue certificates of indebtedness in anticipation of and payable only from 78.16profits from the operation of municipal liquor stores. 78.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 78.18 new text begin referendum authorized on or after that date. new text end 78.19    Sec. 19. Minnesota Statutes 2016, section 447.045, subdivision 6, is amended to read: 78.20    Subd. 6. Statutory city; fourth class. If a fourth class statutory city operates a municipal 78.21liquor store, it may provide for a vote at a general or special new text begin an new text end election new text begin held on the first new text end 78.22 new text begin Tuesday after the first Monday in November of either an even-numbered or odd-numbered new text end 78.23 new text begin year new text end on the question of contributing from the city liquor dispensary fund not more than 78.24$15,000 a year for five years to build and maintain a community hospital. If the vote is in 78.25favor the council may appropriate the money from the fund to an incorporated community 78.26hospital association in the city. 78.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 78.28 new text begin referendum authorized on or after that date. new text end 78.29    Sec. 20. Minnesota Statutes 2016, section 447.045, subdivision 7, is amended to read: 78.30    Subd. 7. Statutory city; any store. If a statutory city operates a municipal liquor store, 78.31it may provide for a vote at a general or special new text begin an new text end election new text begin held on the first Tuesday after new text end 79.1 new text begin the first Monday in November of either an even-numbered or odd-numbered year new text end on the 79.2question of contributing from the statutory city liquor dispensary fund toward the acquisition, 79.3construction, improvement, maintenance, and operation of a community hospital. If the 79.4vote is in favor, the council may appropriate money from time to time out of the net profits 79.5or proceeds of the municipal liquor store to an incorporated nonprofit hospital association 79.6in the statutory city. The hospital association must be governed by a board of directors 79.7elected by donors of $50 or more, who each have one vote. The hospital must be open to 79.8all residents of the community on equal terms. 79.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 79.10 new text begin referendum authorized on or after that date. new text end 79.11    Sec. 21. Minnesota Statutes 2016, section 452.11, is amended to read: 79.12452.11 SUBMISSION TO VOTERS. 79.13No city of the first class shall acquire or construct any public utility under the terms of 79.14sections 452.08 to 452.13 unless the proposition to acquire or construct same has first been 79.15submitted to the qualified electors of the city at a general city election or at a special election 79.16called for that purpose, new text begin held on the first Tuesday after the first Monday in November of new text end 79.17 new text begin either an even-numbered or odd-numbered year new text end and new text begin has new text end been approved by a majority vote 79.18of all electors voting upon the proposition. 79.19The question of issuing public utility certificates as provided in section 452.09 may, at 79.20the option of the council, be submitted at the same election as the question of the acquisition 79.21or construction of the public utility. 79.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 79.23 new text begin referendum authorized on or after that date. new text end 79.24    Sec. 22. Minnesota Statutes 2016, section 455.24, is amended to read: 79.25455.24 SUBMISSION TO VOTERS. 79.26Before incurring any expense under the powers conferred by section 455.23, the approval 79.27of the voters of the city shall first be had at a general or special new text begin an new text end election held therein new text begin on new text end 79.28 new text begin the first Tuesday after the first Monday in November of either an even-numbered or new text end 79.29 new text begin odd-numbered year new text end . If a majority of the voters of the city participating at the election shall 79.30vote in favor of the construction of the system of poles, wires and cables herein authorized 79.31to be made, the council shall proceed with the construction. 80.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 80.2 new text begin referendum authorized on or after that date. new text end 80.3    Sec. 23. Minnesota Statutes 2016, section 455.29, is amended to read: 80.4455.29 MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE. 80.5Except as otherwise restricted by chapter 216B, the governing body, or the commission 80.6or board charged with the operation of the public utilities, if one exists therein, of any 80.7municipality in the state owning and operating an electric light and power plant for the 80.8purpose of the manufacture and sale of electrical power or for the purchase and redistribution 80.9of electrical power, may, upon a two-thirds vote of the governing body, or the commission 80.10or board, in addition to all other powers now possessed by such municipality, sell electricity 80.11to customers, singly or collectively, outside of such municipality, within the state but not 80.12to exceed a distance of 30 miles from the corporate limits of the municipality. Before any 80.13municipality shall have the power to extend its lines and sell electricity outside of the 80.14municipality as provided by sections 455.29 and 455.30, the governing body shall first 80.15submit to the voters of the municipality, at a general or special new text begin an new text end election new text begin held on the first new text end 80.16 new text begin Tuesday after the first Monday in November of either an even-numbered or odd-numbered new text end 80.17 new text begin year new text end , the general principle of going outside the municipality and fixing the maximum amount 80.18of contemplated expenditures reasonably expected to be made for any and all extensions 80.19then or thereafter contemplated. Three weeks' published notice shall be given of such election 80.20as required by law, and if a majority of those voting upon the proposition favors the same, 80.21then the municipality shall thereafter be considered as having chosen to enter the general 80.22business of extending its electric light and power facilities beyond the corporate limits of 80.23the municipality. It shall not be necessary to submit to a vote of the people the question of 80.24any specific enlargement, extension, or improvement of any outside lines; provided the 80.25voters of the municipality have generally elected to exercise the privileges afforded by 80.26sections 455.29 and 455.30, and, provided, that each and any specific extension, enlargement, 80.27or improvement project is within the limit of the maximum expenditure authorized at the 80.28election. In cities operating under a home rule charter, where a vote of the people is not 80.29now required in order to extend electric light and power lines, no election shall be required 80.30under the provisions of any act. At any election held to determine the attitude of the voters 80.31upon this principle, the question shall be simply stated upon the ballot provided therefor, 80.32and shall be substantially in the following form: "Shall the city of ..................... undertake 80.33the general proposition of extending its electric light and power lines beyond the limits of 80.34the municipality, and limit the maximum expenditures for any and all future extensions to 80.35the sum of $....................?" For this purpose every municipality is authorized and empowered 81.1to extend the lines, wires, and fixtures of its plant to such customers and may issue certificates 81.2of indebtedness therefor in an amount not to exceed the actual cost of the extensions and 81.3for a term not to exceed the reasonable life of the extensions. These certificates of 81.4indebtedness shall in no case be made a charge against the municipality, but shall be payable 81.5and paid out of current revenues of the plant other than taxes. 81.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 81.7 new text begin referendum authorized on or after that date. new text end 81.8    Sec. 24. Minnesota Statutes 2016, section 459.06, subdivision 1, is amended to read: 81.9    Subdivision 1. Accept donations. Any county, city, or town may by resolution of its 81.10governing body accept donations of land that the governing body deems to be better adapted 81.11for the production of timber and wood than for any other purpose, for a forest, and may 81.12manage it on forestry principles. The donor of not less than 100 acres of any such land shall 81.13be entitled to have the land perpetually bear the donor's name. The governing body of any 81.14city or town, when funds are available or have been levied therefor, may, when authorized 81.15by a majority vote by ballot of the voters voting at any general or special city election new text begin held new text end 81.16 new text begin on the first Tuesday after the first Monday in November of either an even-numbered or new text end 81.17 new text begin odd-numbered year new text end or new text begin the annual new text end town meeting where the question is properly submitted, 81.18purchase or obtain by condemnation proceedings, and preferably at the sources of streams, 81.19any tract of land for a forest which is better adapted for the production of timber and wood 81.20than for any other purpose, and which is conveniently located for the purpose, and manage 81.21it on forestry principles. The city or town may annually levy a tax on all taxable property 81.22within its boundaries to procure and maintain such forests. 81.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 81.24 new text begin referendum authorized on or after that date. new text end 81.25    Sec. 25. Minnesota Statutes 2016, section 469.053, subdivision 5, is amended to read: 81.26    Subd. 5. Reverse referendum. A city may increase its levy for port authority purposes 81.27under subdivision 4 only as provided in this subdivision. Its city council must first pass a 81.28resolution stating the proposed amount of levy increase. The city must then publish the 81.29resolution together with a notice of public hearing on the resolution for two successive 81.30weeks in its official newspaper or, if none exists, in a newspaper of general circulation in 81.31the city. The hearing must be held two to four weeks after the first publication. After the 81.32hearing, the city council may decide to take no action or may adopt a resolution authorizing 81.33the proposed increase or a lesser increase. A resolution authorizing an increase must be 82.1published in the city's official newspaper or, if none exists, in a newspaper of general 82.2circulation in the city. The resolution is not effective if a petition requesting a referendum 82.3on the resolution is filed with the city clerk within 30 days of publication of the resolution. 82.4The petition must be signed by voters equaling five percent of the votes cast in the city in 82.5the last general election. The resolution is effective if approved by a majority of those voting 82.6on the question. The commissioner of revenue shall prepare a suggested form of referendum 82.7question. The referendum must be held at a special or general new text begin an new text end election before October 1 82.8of the year for which the levy increase is proposed new text begin conducted on the first Tuesday after the new text end 82.9 new text begin first Monday in November of either an even-numbered or odd-numbered year. If approved new text end 82.10 new text begin by the voters, the levy increase may take effect no sooner than the next calendar year new text end . 82.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 82.12 new text begin referendum authorized on or after that date. new text end 82.13    Sec. 26. Minnesota Statutes 2016, section 469.107, subdivision 2, is amended to read: 82.14    Subd. 2. Reverse referendum. A city may increase its levy for economic development 82.15authority purposes under subdivision 1 in the following way. Its city council must first pass 82.16a resolution stating the proposed amount of levy increase. The city must then publish the 82.17resolution together with a notice of public hearing on the resolution for two successive 82.18weeks in its official newspaper or if none exists in a newspaper of general circulation in the 82.19city. The hearing must be held two to four weeks after the first publication. After the hearing, 82.20the city council may decide to take no action or may adopt a resolution authorizing the 82.21proposed increase or a lesser increase. A resolution authorizing an increase must be published 82.22in the city's official newspaper or if none exists in a newspaper of general circulation in the 82.23city. The resolution is not effective if a petition requesting a referendum on the resolution 82.24is filed with the city clerk within 30 days of publication of the resolution. The petition must 82.25be signed by voters equaling five percent of the votes cast in the city in the last general 82.26election. The election new text begin referendum new text end must be held at a general or special new text begin an new text end election new text begin held on new text end 82.27 new text begin the first Tuesday after the first Monday in November of either an even-numbered or new text end 82.28 new text begin odd-numbered year new text end . Notice of the election must be given in the manner required by law. 82.29The notice must state the purpose and amount of the levy. 82.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 82.31 new text begin referendum authorized on or after that date. new text end 83.1    Sec. 27. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read: 83.2    Subdivision 1. Authorization. Notwithstanding section 477A.016 or any other law, a 83.3statutory or home rule charter city may by ordinance, and a town may by the affirmative 83.4vote of the electors at the annual town meeting, or at a special town meeting, impose a tax 83.5of up to three percent on the gross receipts from the furnishing for consideration of lodging 83.6at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing 83.7of it for a continuous period of 30 days or more. A statutory or home rule charter city may 83.8by ordinance impose the tax authorized under this subdivision on the camping site receipts 83.9of a municipal campground. 83.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 83.11 new text begin referendum authorized on or after that date. new text end 83.12    Sec. 28. Minnesota Statutes 2016, section 469.190, subdivision 5, is amended to read: 83.13    Subd. 5. Reverse referendum. If the county board passes a resolution under subdivision 83.144 to impose the tax, the resolution must be published for two successive weeks in a newspaper 83.15of general circulation within the unorganized territory, together with a notice fixing a date 83.16for a public hearing on the proposed tax. 83.17The hearing must be held not less than two weeks nor more than four weeks after the 83.18first publication of the notice. After the public hearing, the county board may determine to 83.19take no further action, or may adopt a resolution authorizing the tax as originally proposed 83.20or approving a lesser rate of tax. The resolution must be published in a newspaper of general 83.21circulation within the unorganized territory. The voters of the unorganized territory may 83.22request a referendum on the proposed tax by filing a petition with the county auditor within 83.2330 days after the resolution is published. The petition must be signed by voters who reside 83.24in the unorganized territory. The number of signatures must equal at least five percent of 83.25the number of persons voting in the unorganized territory in the last general election. If such 83.26a petition is timely filed, the resolution is not effective until it has been submitted to the 83.27voters residing in the unorganized territory at a general or special new text begin an new text end election new text begin held on the new text end 83.28 new text begin first Tuesday after the first Monday in November of either an even-numbered or new text end 83.29 new text begin odd-numbered year new text end and a majority of votes cast on the question of approving the resolution 83.30are in the affirmative. The commissioner of revenue shall prepare a suggested form of 83.31question to be presented at the referendum. 83.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 83.33 new text begin referendum authorized on or after that date. new text end 84.1    Sec. 29. Minnesota Statutes 2016, section 471.57, subdivision 3, is amended to read: 84.2    Subd. 3. May use fund for other purposes upon vote. The council of any municipality 84.3which has established a public works reserve fund by an ordinance designating the specific 84.4improvement or type of capital improvement for which the fund may be used may submit 84.5to the voters of the municipality at any regular or special new text begin an new text end election new text begin held on the first Tuesday new text end 84.6 new text begin after the first Monday in November of either an even-numbered or odd-numbered year new text end the 84.7question of using the fund for some other purpose. If a majority of the votes cast on the 84.8question are in favor of such diversion from the original purpose of the fund, it may be used 84.9for any purpose so approved by the voters. 84.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 84.11 new text begin referendum authorized on or after that date. new text end 84.12    Sec. 30. Minnesota Statutes 2016, section 471.571, subdivision 3, is amended to read: 84.13    Subd. 3. Expenditure from fund, limitation. No expenditure for any one project in 84.14excess of 60 percent of one year's levy or $25,000, whichever is greater, may be made from 84.15such permanent improvement or replacement fund in any year without first obtaining the 84.16approval of a majority of the voters voting at a general or special municipal election new text begin held new text end 84.17 new text begin on the first Tuesday after the first Monday in November of either an even-numbered or new text end 84.18 new text begin odd-numbered year new text end at which the question of making such expenditure has been submitted. 84.19In submitting any proposal to the voters for approval, the amount proposed to be spent and 84.20the purpose thereof shall be stated in the proposal submitted. The proceeds of such levies 84.21may be pledged for the payment of any bonds issued pursuant to law for any purposes 84.22authorized hereby and annual payments upon such bonds or interest may be made without 84.23additional authorization. 84.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 84.25 new text begin referendum authorized on or after that date. new text end 84.26    Sec. 31. Minnesota Statutes 2016, section 471.572, subdivision 2, is amended to read: 84.27    Subd. 2. Tax levy. The governing body of a city may establish, by a two-thirds vote of 84.28all its members, by ordinance or resolution a reserve fund and may annually levy a property 84.29tax for the support of the fund. The proceeds of taxes levied for its support must be paid 84.30into the reserve fund. Any other revenue from a source not required by law to be paid into 84.31another fund for purposes other than those provided for the use of the reserve fund may be 84.32paid into the fund. Before a tax is levied under this section, the city must publish in the 84.33official newspaper of the city an initial resolution authorizing the tax levy. If within ten 85.1days after the publication a petition is filed with the city clerk requesting an election on the 85.2tax levy signed by a number of qualified voters greater than ten percent of the number who 85.3voted in the city at the last general election, the tax may not be levied until the levy has 85.4been approved by a majority of the votes cast on it at a regular or special new text begin an new text end election new text begin held new text end 85.5 new text begin on the first Tuesday after the first Monday in November of either an even-numbered or new text end 85.6 new text begin odd-numbered year new text end . 85.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 85.8 new text begin referendum authorized on or after that date. new text end 85.9    Sec. 32. Minnesota Statutes 2016, section 471.572, subdivision 4, is amended to read: 85.10    Subd. 4. Use of fund for a specific purpose. If the city has established a reserve fund, 85.11it may submit to the voters at a regular or special new text begin an new text end election new text begin held on the first Tuesday after new text end 85.12 new text begin the first Monday in November of either an even-numbered or odd-numbered year new text end the question 85.13of whether use of the fund should be restricted to a specific improvement or type of capital 85.14improvement. If a majority of the votes cast on the question are in favor of the limitation 85.15on the use of the reserve fund, it may be used only for the purpose approved by the voters. 85.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 85.17 new text begin referendum authorized on or after that date. new text end 85.18    Sec. 33. Minnesota Statutes 2016, section 475.59, is amended to read: 85.19475.59 MANNER OF SUBMISSION; NOTICE. 85.20     new text begin Subdivision 1. new text end new text begin Generally; notice. new text end When the governing body of a municipality resolves 85.21to issue bonds for any purpose requiring the approval of the electors, it shall provide for 85.22submission of the proposition of their issuance at a general or special election or town or 85.23school district meeting. Notice of such election or meeting shall be given in the manner 85.24required by law and shall state the maximum amount and the purpose of the proposed issue. 85.25In any school district, the school board or board of education may, according to its judgment 85.26and discretion, submit as a single ballot question or as two or more separate questions in 85.27the notice of election and ballots the proposition of their issuance for any one or more of 85.28the following, stated conjunctively or in the alternative: acquisition or enlargement of sites, 85.29acquisition, betterment, erection, furnishing, equipping of one or more new schoolhouses, 85.30remodeling, repairing, improving, adding to, betterment, furnishing, equipping of one or 85.31more existing schoolhouses. In any city, town, or county, the governing body may, according 85.32to its judgment and discretion, submit as a single ballot question or as two or more separate 85.33questions in the notice of election and ballots the proposition of their issuance, stated 86.1conjunctively or in the alternative, for the acquisition, construction, or improvement of any 86.2facilities at one or more locations. 86.3     new text begin Subd. 2. new text end new text begin Election date. new text end new text begin An election to approve issuance of bonds under this section held new text end 86.4 new text begin by a municipality other than a town must be held on the first Tuesday after the first Monday new text end 86.5 new text begin in November of either an even-numbered or odd-numbered year. An election under this new text end 86.6 new text begin section held by a town may be held on the same day as the annual town meeting or on the new text end 86.7 new text begin first Tuesday after the first Monday in November of either an even-numbered or new text end 86.8 new text begin odd-numbered year. new text end 86.9     new text begin Subd. 3. new text end new text begin Special laws. new text end new text begin If a referendum on the issuance of bonds or other debt obligations new text end 86.10 new text begin authorized in a special law is required, it must be held on a date as provided in subdivision new text end 86.11 new text begin 2, notwithstanding any provision in the special law authorizing the referendum to be held new text end 86.12 new text begin at any other time. new text end 86.13     new text begin Subd. 4. new text end new text begin Exception for disaster or emergency. new text end new text begin Subdivisions 2 and 3, and any other new text end 86.14 new text begin law requiring an election to approve issuance of bonds or other debt obligations to be held new text end 86.15 new text begin on the first Tuesday after the first Monday in November of either an even-numbered or new text end 86.16 new text begin odd-numbered year, do not apply to issuance of bonds or other debt obligations to finance new text end 86.17 new text begin the municipality's response to an emergency or disaster. "Disaster" means a situation that new text end 86.18 new text begin creates an actual or imminent serious threat to the health and safety of persons, or a situation new text end 86.19 new text begin that has resulted or is likely to result in catastrophic loss to property or the environment. new text end 86.20 new text begin "Emergency" means an unforeseen combination of circumstances that calls for immediate new text end 86.21 new text begin action to prevent a disaster, identified in the referendum, from developing or occurring. new text end 86.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to any new text end 86.23 new text begin referendum authorized on or after that date. new text end 86.24    Sec. 34. new text begin REPEALER. new text end 86.25 new text begin Minnesota Statutes 2016, section 205.10, subdivision 3, new text end new text begin is repealed. new text end 86.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017. new text end 86.27ARTICLE 3 86.28AIDS, CREDITS, AND REFUNDS 86.29    Section 1. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read: 86.30    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund 86.31payments for a district nonoperating fund must be made at the current year aid payment 86.32percentage of the estimated entitlement during the fiscal year of the entitlement. This amount 87.1shall be paid in 12 new text begin six new text end equal monthly installments new text begin beginning in July new text end . The amount of the 87.2actual entitlement, after adjustment for actual data, minus the payments made during the 87.3fiscal year of the entitlement must be paid prior to October 31 of the following school year. 87.4The commissioner may make advance payments of debt service equalization aid and 87.5state-paid tax credits for a district's debt service fund earlier than would occur under the 87.6preceding schedule if the district submits evidence showing a serious cash flow problem in 87.7the fund. The commissioner may make earlier payments during the year and, if necessary, 87.8increase the percent of the entitlement paid to reduce the cash flow problem. 87.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with fiscal year 2019. new text end 87.10    Sec. 2. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read: 87.11    Subd. 13. Aid payment percentage. Except as provided in subdivisions new text begin 10, new text end 11, 12, 12a, 87.12and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 87.13120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392, 87.14shall be paid at the current year aid payment percentage of the estimated entitlement during 87.15the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 87.16entitlement for special education aid under section 125A.76 for fiscal year 2014 and later 87.17equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment 87.18payment, according to subdivision 9, must be the amount of the actual entitlement, after 87.19adjustment for actual data, minus the payments made during the fiscal year of the entitlement. 87.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with fiscal year 2019. new text end 87.21    Sec. 3. new text begin [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT. new text end 87.22     new text begin Subdivision 1. new text end new text begin Eligibility. new text end new text begin All class 2a, 2b, and 2c property under section 273.13, new text end 87.23 new text begin subdivision 23, other than property consisting of the house, garage, and immediately new text end 87.24 new text begin surrounding one acre of land of an agricultural homestead, is eligible to receive the credit new text end 87.25 new text begin under this section. new text end 87.26     new text begin Subd. 2. new text end new text begin Credit amount. new text end new text begin For each qualifying property, the school building bond new text end 87.27 new text begin agricultural credit is equal to 50 percent of the property's eligible net tax capacity multiplied new text end 87.28 new text begin by the school debt tax rate determined under section 275.08, subdivision 1b. new text end 87.29     new text begin Subd. 3. new text end new text begin Credit reimbursements. new text end new text begin The county auditor shall determine the tax reductions new text end 87.30 new text begin allowed under this section within the county for each taxes payable year and shall certify new text end 87.31 new text begin that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted new text end 87.32 new text begin under section 275.29. Any prior year adjustments shall also be certified on the abstracts of new text end 88.1 new text begin tax lists. The commissioner shall review the certifications for accuracy, and may make such new text end 88.2 new text begin changes as are deemed necessary, or return the certification to the county auditor for new text end 88.3 new text begin correction. The credit under this section must be used to reduce the school district net tax new text end 88.4 new text begin capacity-based property tax as provided in section new text end new text begin . new text end 88.5     new text begin Subd. 4. new text end new text begin Payment. new text end new text begin The commissioner of revenue shall certify the total of the tax new text end 88.6 new text begin reductions granted under this section for each taxes payable year within each school district new text end 88.7 new text begin to the commissioner of education, who shall pay the reimbursement amounts to each school new text end 88.8 new text begin district as provided in section new text end new text begin . new text end 88.9     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to make the payments required by this new text end 88.10 new text begin section is annually appropriated from the general fund to the commissioner of education. new text end 88.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 88.12    Sec. 4. Minnesota Statutes 2016, section 273.1392, is amended to read: 88.13273.1392 PAYMENT; SCHOOL DISTRICTS. 88.14The amounts of bovine tuberculosis credit reimbursements under section 273.113; 88.15conservation tax credits under section 273.119; disaster or emergency reimbursement under 88.16sections 273.1231 to 273.1235; homestead and agricultural credits under section new text begin sections new text end 88.17273.1384 new text begin and 273.1387 new text end ; aids and credits under section 273.1398; enterprise zone property 88.18credit payments under section 469.171; and metropolitan agricultural preserve reduction 88.19under section 473H.10 for school districts, shall be certified to the Department of Education 88.20by the Department of Revenue. The amounts so certified shall be paid according to section 88.21127A.45 , subdivisions 9 new text begin , 10, new text end and 13. 88.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 88.23    Sec. 5. Minnesota Statutes 2016, section 273.1393, is amended to read: 88.24273.1393 COMPUTATION OF NET PROPERTY TAXES. 88.25    Notwithstanding any other provisions to the contrary, "net" property taxes are determined 88.26by subtracting the credits in the order listed from the gross tax: 88.27    (1) disaster credit as provided in sections 273.1231 to 273.1235; 88.28    (2) powerline credit as provided in section 273.42; 88.29    (3) agricultural preserves credit as provided in section 473H.10; 88.30    (4) enterprise zone credit as provided in section 469.171; 89.1    (5) disparity reduction credit; 89.2    (6) conservation tax credit as provided in section 273.119; 89.3    (7) new text begin the school bond credit as provided in section 273.1387; new text end 89.4     new text begin (8) new text end agricultural credit as provided in section 273.1384; 89.5    (8) new text begin (9) new text end taconite homestead credit as provided in section 273.135; 89.6    (9) new text begin (10) new text end supplemental homestead credit as provided in section 273.1391; and 89.7    (10) new text begin (11) new text end the bovine tuberculosis zone credit, as provided in section 273.113. 89.8    The combination of all property tax credits must not exceed the gross tax amount. 89.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 89.10    Sec. 6. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read: 89.11    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and 89.12the county treasurer shall deliver after November 10 and on or before November 24 each 89.13year, by first class mail to each taxpayer at the address listed on the county's current year's 89.14assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 89.15the treasurer may send the notice in electronic form or by electronic mail instead of on paper 89.16or by ordinary mail. 89.17    (b) The commissioner of revenue shall prescribe the form of the notice. 89.18    (c) The notice must inform taxpayers that it contains the amount of property taxes each 89.19taxing authority proposes to collect for taxes payable the following year. In the case of a 89.20town, or in the case of the state general tax, the final tax amount will be its proposed tax. 89.21The notice must clearly state for each city that has a population over 500, county, school 89.22district, regional library authority established under section 134.201, and metropolitan taxing 89.23districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 89.24in which the budget and levy will be discussed and public input allowed, prior to the final 89.25budget and levy determination. The taxing authorities must provide the county auditor with 89.26the information to be included in the notice on or before the time it certifies its proposed 89.27levy under subdivision 1. The public must be allowed to speak at that meeting, which must 89.28occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 89.29number for the taxing authority that taxpayers may call if they have questions related to the 89.30notice and an address where comments will be received by mail, except that no notice 89.31required under this section shall be interpreted as requiring the printing of a personal 89.32telephone number or address as the contact information for a taxing authority. If a taxing 90.1authority does not maintain public offices where telephone calls can be received by the 90.2authority, the authority may inform the county of the lack of a public telephone number and 90.3the county shall not list a telephone number for that taxing authority. 90.4    (d) The notice must state for each parcel: 90.5    (1) the market value of the property as determined under section 273.11, and used for 90.6computing property taxes payable in the following year and for taxes payable in the current 90.7year as each appears in the records of the county assessor on November 1 of the current 90.8year; and, in the case of residential property, whether the property is classified as homestead 90.9or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 90.10values apply and that the values are final values; 90.11    (2) the items listed below, shown separately by county, city or town, and state general 90.12tax, agricultural homestead credit under section 273.1384, new text begin school building bond agricultural new text end 90.13 new text begin credit under section 273.1387, new text end voter approved school levy, other local school levy, and the 90.14sum of the special taxing districts, and as a total of all taxing authorities: 90.15    (i) the actual tax for taxes payable in the current year; and 90.16    (ii) the proposed tax amount. 90.17    If the county levy under clause (2) includes an amount for a lake improvement district 90.18as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 90.19must be separately stated from the remaining county levy amount. 90.20    In the case of a town or the state general tax, the final tax shall also be its proposed tax 90.21unless the town changes its levy at a special town meeting under section 365.52. If a school 90.22district has certified under section 126C.17, subdivision 9, that a referendum will be held 90.23in the school district at the November general election, the county auditor must note next 90.24to the school district's proposed amount that a referendum is pending and that, if approved 90.25by the voters, the tax amount may be higher than shown on the notice. In the case of the 90.26city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 90.27from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 90.28the St. Paul Library Agency must be listed separately from the remaining amount of the 90.29city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 90.30listed separately from the remaining amount of the county's levy. In the case of a parcel 90.31where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 90.32applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 90.33capacity subject to the areawide tax must each be stated separately and not included in the 90.34sum of the special taxing districts; and 91.1    (3) the increase or decrease between the total taxes payable in the current year and the 91.2total proposed taxes, expressed as a percentage. 91.3    For purposes of this section, the amount of the tax on homesteads qualifying under the 91.4senior citizens' property tax deferral program under chapter 290B is the total amount of 91.5property tax before subtraction of the deferred property tax amount. 91.6    (e) The notice must clearly state that the proposed or final taxes do not include the 91.7following: 91.8    (1) special assessments; 91.9    (2) levies approved by the voters after the date the proposed taxes are certified, including 91.10bond referenda and school district levy referenda; 91.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 91.12in November of the levy year as provided under section 275.73; 91.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 91.14after the date the proposed taxes are certified; 91.15    (5) amounts necessary to pay tort judgments against the taxing authority that become 91.16final after the date the proposed taxes are certified; and 91.17    (6) the contamination tax imposed on properties which received market value reductions 91.18for contamination. 91.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 91.20county treasurer to deliver the notice as required in this section does not invalidate the 91.21proposed or final tax levy or the taxes payable pursuant to the tax levy. 91.22    (g) If the notice the taxpayer receives under this section lists the property as 91.23nonhomestead, and satisfactory documentation is provided to the county assessor by the 91.24applicable deadline, and the property qualifies for the homestead classification in that 91.25assessment year, the assessor shall reclassify the property to homestead for taxes payable 91.26in the following year. 91.27    (h) In the case of class 4 residential property used as a residence for lease or rental 91.28periods of 30 days or more, the taxpayer must either: 91.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 91.30or lessee; or 91.31    (2) post a copy of the notice in a conspicuous place on the premises of the property. 92.1    The notice must be mailed or posted by the taxpayer by November 27 or within three 92.2days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 92.3of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 92.4notice must be mailed in order to fulfill the requirements of this paragraph. 92.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 92.6districts" means the following taxing districts in the seven-county metropolitan area that 92.7levy a property tax for any of the specified purposes listed below: 92.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 92.9473.521 , 473.547, or 473.834; 92.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and 92.11    (3) Metropolitan Mosquito Control Commission under section 473.711. 92.12    For purposes of this section, any levies made by the regional rail authorities in the county 92.13of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 92.14shall be included with the appropriate county's levy. 92.15    (j) The governing body of a county, city, or school district may, with the consent of the 92.16county board, include supplemental information with the statement of proposed property 92.17taxes about the impact of state aid increases or decreases on property tax increases or 92.18decreases and on the level of services provided in the affected jurisdiction. This supplemental 92.19information may include information for the following year, the current year, and for as 92.20many consecutive preceding years as deemed appropriate by the governing body of the 92.21county, city, or school district. It may include only information regarding: 92.22    (1) the impact of inflation as measured by the implicit price deflator for state and local 92.23government purchases; 92.24    (2) population growth and decline; 92.25    (3) state or federal government action; and 92.26    (4) other financial factors that affect the level of property taxation and local services 92.27that the governing body of the county, city, or school district may deem appropriate to 92.28include. 92.29    The information may be presented using tables, written narrative, and graphic 92.30representations and may contain instruction toward further sources of information or 92.31opportunity for comment. 92.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 93.1    Sec. 7. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read: 93.2    Subd. 2. School district in more than one county new text begin levies; special requirements new text end . new text begin (a) new text end In 93.3school districts lying in more than one county, the clerk shall certify the tax levied to the 93.4auditor of the county in which the administrative offices of the school district are located. 93.5 new text begin (b) The district must identify the portion of the school district levy that is levied for debt new text end 93.6 new text begin service at the time the levy is certified under this section. For the purposes of this paragraph, new text end 93.7 new text begin "levied for debt service" means levies authorized under sections 123B.53, 123B.535, and new text end 93.8 new text begin 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions new text end 93.9 new text begin under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment new text end 93.10 new text begin of other postemployment benefits under section 475.52, subdivision 6. new text end 93.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 93.12    Sec. 8. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read: 93.13    Subd. 1b. Computation of tax rates. new text begin (a) new text end The amounts certified to be levied against net 93.14tax capacity under section 275.07 by an individual local government unit shall be divided 93.15by the total net tax capacity of all taxable properties within the local government unit's 93.16taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 93.17each property's net tax capacity shall be each property's net tax capacity tax for that local 93.18government unit before reduction by any credits. 93.19 new text begin (b) The auditor must also determine the school debt tax rate for each school district equal new text end 93.20 new text begin to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by new text end 93.21 new text begin (2) the total net tax capacity of all taxable property within the district. new text end 93.22 new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall 93.23be divided by the total referendum market value of all taxable properties within the taxing 93.24district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 93.25property's referendum market value shall be each property's new referendum tax before 93.26reduction by any credits. For the purposes of this subdivision, "referendum market value" 93.27means the market value as defined in section 126C.01, subdivision 3. 93.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 93.29    Sec. 9. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read: 93.30    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of 93.31the tax statements. The commissioner of revenue shall prescribe the form of the property 93.32tax statement and its contents. The tax statement must not state or imply that property tax 94.1credits are paid by the state of Minnesota. The statement must contain a tabulated statement 94.2of the dollar amount due to each taxing authority and the amount of the state tax from the 94.3parcel of real property for which a particular tax statement is prepared. The dollar amounts 94.4attributable to the county, the state tax, the voter approved school tax, the other local school 94.5tax, the township or municipality, and the total of the metropolitan special taxing districts 94.6as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 94.7amounts due all other special taxing districts, if any, may be aggregated except that any 94.8levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 94.9Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 94.10under the appropriate county's levy. If the county levy under this paragraph includes an 94.11amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 94.12the amount attributable for that purpose must be separately stated from the remaining county 94.13levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 94.14an amount for public library service under section 134.07, the amount attributable for that 94.15purpose may be separated from the remaining county levy amount. The amount of the tax 94.16on homesteads qualifying under the senior citizens' property tax deferral program under 94.17chapter 290B is the total amount of property tax before subtraction of the deferred property 94.18tax amount. The amount of the tax on contamination value imposed under sections 270.91 94.19to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 94.20amount of any special assessments, may be rounded to the nearest even whole dollar. For 94.21purposes of this section whole odd-numbered dollars may be adjusted to the next higher 94.22even-numbered dollar. The amount of market value excluded under section 273.11, 94.23subdivision 16 , if any, must also be listed on the tax statement. 94.24    (b) The property tax statements for manufactured homes and sectional structures taxed 94.25as personal property shall contain the same information that is required on the tax statements 94.26for real property. 94.27    (c) Real and personal property tax statements must contain the following information 94.28in the order given in this paragraph. The information must contain the current year tax 94.29information in the right column with the corresponding information for the previous year 94.30in a column on the left: 94.31    (1) the property's estimated market value under section 273.11, subdivision 1; 94.32    (2) the property's homestead market value exclusion under section 273.13, subdivision 94.3335; 94.34    (3) the property's taxable market value under section 272.03, subdivision 15; 95.1    (4) the property's gross tax, before credits; 95.2    (5) for homestead agricultural properties, the credit new text begin credits new text end under section new text begin sections new text end 95.3273.1384 new text begin and 273.1387 new text end ; 95.4    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 95.5273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 95.6received under section 273.135 must be separately stated and identified as "taconite tax 95.7relief"; and 95.8    (7) the net tax payable in the manner required in paragraph (a). 95.9    (d) If the county uses envelopes for mailing property tax statements and if the county 95.10agrees, a taxing district may include a notice with the property tax statement notifying 95.11taxpayers when the taxing district will begin its budget deliberations for the current year, 95.12and encouraging taxpayers to attend the hearings. If the county allows notices to be included 95.13in the envelope containing the property tax statement, and if more than one taxing district 95.14relative to a given property decides to include a notice with the tax statement, the county 95.15treasurer or auditor must coordinate the process and may combine the information on a 95.16single announcement. 95.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2018. new text end 95.18    Sec. 10. Minnesota Statutes 2016, section 290A.03, subdivision 11, is amended to read: 95.19    Subd. 11. Rent constituting property taxes. new text begin (a) new text end "Rent constituting property taxes" 95.20means 17 percent new text begin a percentage new text end of the gross rent actually paid in cash, or its equivalent, or 95.21the portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the 95.22right of occupancy of the claimant's Minnesota homestead in the calendar year, and which 95.23rent constitutes the basis, in the succeeding calendar year of a claim for relief under this 95.24chapter by the claimant. 95.25 new text begin (b) The percentage in paragraph (a) is set by major geographic regions as follows: new text end 95.26 new text begin (1) for the city of Minneapolis, 16.5 percent; new text end 95.27 new text begin (2) for the city of St. Paul, 14 percent; new text end 95.28 new text begin (3) for the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis; new text end 95.29 new text begin and Ramsey, excluding the city of St. Paul, 15 percent; and new text end 95.30 new text begin (4) for the remainder of the state, 14 percent. new text end 96.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on rent paid in 2017 new text end 96.2 new text begin and following years. new text end 96.3    Sec. 11. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read: 96.4    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax 96.5exclusive of special assessments, penalties, and interest payable on a claimant's homestead 96.6after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 96.7and any other state paid property tax credits in any calendar year, and after any refund 96.8claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 96.9year that the property tax is payable. In the case of a claimant who makes ground lease 96.10payments, "property taxes payable" includes the amount of the payments directly attributable 96.11to the property taxes assessed against the parcel on which the house is located. No 96.12apportionment or reduction of the "property taxes payable" shall be required for the use of 96.13a portion of the claimant's homestead for a business purpose if the claimant does not deduct 96.14any business depreciation expenses for the use of a portion of the homestead in the 96.15determination of federal adjusted gross income. For homesteads which are manufactured 96.16homes as defined in section 273.125, subdivision 8, and for homesteads which are park 96.17trailers taxed as manufactured homes under section 168.012, subdivision 9, "property taxes 96.18payable" shall also include 17 percent new text begin a percentage new text end of the gross rent paid in the preceding 96.19year for the site on which the homestead is located. new text begin The percentage equals the percentage new text end 96.20 new text begin set under subdivision 11 for the geographic region in which the homestead is located. new text end When 96.21a homestead is owned by two or more persons as joint tenants or tenants in common, such 96.22tenants shall determine between them which tenant may claim the property taxes payable 96.23on the homestead. If they are unable to agree, the matter shall be referred to the commissioner 96.24of revenue whose decision shall be final. Property taxes are considered payable in the year 96.25prescribed by law for payment of the taxes. 96.26In the case of a claim relating to "property taxes payable," the claimant must have owned 96.27and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 96.28property must have been classified as homestead property pursuant to section 273.124, on 96.29or before December 15 of the assessment year to which the "property taxes payable" relate; 96.30or (ii) the claimant must provide documentation from the local assessor that application for 96.31homestead classification has been made on or before December 15 of the year in which the 96.32"property taxes payable" were payable and that the assessor has approved the application. 96.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on rent paid in 2017 new text end 96.34 new text begin and following years. new text end 97.1    Sec. 12. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision 97.2to read: 97.3     new text begin Subd. 20. new text end new text begin Additional border city allocations. new text end new text begin (a) In addition to the tax reductions new text end 97.4 new text begin authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax new text end 97.5 new text begin reductions to border city enterprise zones in cities located on the western border of the state. new text end 97.6 new text begin The commissioner shall allocate this amount among cities on a per capita basis. Allocations new text end 97.7 new text begin under this subdivision may be used for tax reductions under sections 469.171, 469.1732, new text end 97.8 new text begin and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in new text end 97.9 new text begin the enterprise zone, but only if the municipality determines that the granting of the tax new text end 97.10 new text begin reduction or offset is necessary to retain a business within or attract a business to the zone. new text end 97.11 new text begin (b) The allocations under this subdivision do not cancel or expire, but remain available new text end 97.12 new text begin until used by the city. new text end 97.13    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read: 97.14    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than 97.1510,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing 97.16percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus 97.17(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664. 97.18    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 97.19revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing 97.20percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population 97.21decline new text begin ; plus (5) the sparsity adjustment new text end . 97.22    (c) For a city with a population less than 2,500, "city revenue need" is the sum of new text begin (1) new text end 97.23410 plus new text begin ; (2) new text end 0.367 times the city's population over 100 new text begin ; plus (3) the sparsity adjustment new text end . 97.24The city revenue need new text begin for a city new text end under this paragraph shall not exceed 630 new text begin plus the city's new text end 97.25 new text begin sparsity adjustment new text end . 97.26    (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 97.27need" equals (1) the transition factor times the city's revenue need calculated in paragraph 97.28(b); plus (2) 630 times the difference between one and the transition factor. For a city with 97.29a population of at least 10,000 but less than 10,500, the "city revenue need" equals (1) the 97.30transition factor times the city's revenue need calculated in paragraph (a); plus (2) the city's 97.31revenue need calculated under the formula in paragraph (b) times the difference between 97.32one and the transition factor. For purposes of this paragraph "transition factor" is 0.2 percent 98.1times the amount that the city's population exceeds the minimum threshold in either of the 98.2first two sentences. 98.3    (e) The city revenue need cannot be less than zero. 98.4    (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as 98.5determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 98.6deflator for government consumption expenditures and gross investment for state and local 98.7governments as prepared by the United States Department of Commerce, for the most 98.8recently available year to the 2013 implicit price deflator for state and local government 98.9purchases. 98.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 98.11 new text begin and thereafter. new text end 98.12    Sec. 14. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read: 98.13    Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the 98.14sparsity adjustment is 100 for any city with an average population density less than 150 per 98.15square mile, according to the most recent federal census, and new text begin . For a city with a population new text end 98.16 new text begin less than 10,000, the sparsity adjustment is 200 for any city with an average population new text end 98.17 new text begin density less than 30 per square mile, according to the most recent federal census. new text end The sparsity 98.18adjustment is zero for all other cities. 98.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 98.20 new text begin and thereafter. new text end 98.21    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read: 98.22    Subd. 8. City formula aid. (a) For aids payable in 2015 new text begin 2018 new text end and thereafter, the formula 98.23aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 98.24of (i) the difference between its unmet need and its formula new text begin certified new text end aid in the previous 98.25year new text begin before any aid adjustment under subdivision 13 new text end , and (ii) the aid gap percentage. 98.26    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 98.27year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 98.28its formula aid is adjusted to equal its unmet need. 98.29    (c) new text begin (b) new text end No city may have a formula aid amount less than zero. The aid gap percentage 98.30must be the same for all cities subject to paragraph (a). 99.1    (d) new text begin (c) new text end The applicable aid gap percentage must be calculated by the Department of 99.2Revenue so that the total of the aid under subdivision 9 equals the total amount available 99.3for aid under section 477A.03. new text begin The aid gap percentage must be the same for all cities subject new text end 99.4 new text begin to paragraph (a). new text end Data used in calculating aids to cities under sections 477A.011 to 477A.013 99.5shall be the most recently available data as of January 1 in the year in which the aid is 99.6calculated. 99.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 99.8 new text begin and thereafter. new text end 99.9    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read: 99.10    Subd. 9. City aid distribution. (a) In calendar year 2014 new text begin 2018 new text end and thereafter, each city 99.11 new text begin if a city's certified aid before any aid adjustment under subdivision 13 for the previous year new text end 99.12 new text begin is less than its current unmet need, the city new text end shall receive an aid distribution equal to the sum 99.13of (1) new text begin its certified aid in the previous year before any aid adjustment under subdivision 13, new text end 99.14 new text begin (2) new text end the city formula aid under subdivision 8, and (2) new text begin (3) new text end its aid adjustment under subdivision 99.1513. 99.16    (b) For aids payable in 2015 new text begin 2018 new text end and thereafter, new text begin if a city's certified aid before any aid new text end 99.17 new text begin adjustment under subdivision 13 for the previous year is equal to or greater than its current new text end 99.18 new text begin unmet need, new text end the total aid for a city must not be less than new text begin is equal to the greater of (1) its new text end 99.19 new text begin unmet need plus any aid adjustment under subdivision 13, or (2) new text end the amount it was certified 99.20to receive in the previous year minus the lesser of $10 multiplied by its population, or five 99.21percent of its net levy in the year prior to the aid distribution. new text begin No city may have a total aid new text end 99.22 new text begin amount less than zero. new text end 99.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 99.24 new text begin and thereafter. new text end 99.25    Sec. 17. new text begin [477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR new text end 99.26 new text begin OR EXPO. new text end 99.27 new text begin If a county, statutory or home rule charter city, or town makes a payment or contribution new text end 99.28 new text begin to Expo2023 or any similar organization with the mission of advocating, promoting, or new text end 99.29 new text begin running a world fair or expo in the state of Minnesota in any year, it must report that amount new text end 99.30 new text begin to the commissioner by January 15 of the year following the year in which the payment or new text end 99.31 new text begin contribution is made. The commissioner shall reduce the aid paid to a county, city, or town new text end 99.32 new text begin under section 477A.014 from the amount certified to the county under section 477A.0124; new text end 99.33 new text begin to the city under section 477A.013, subdivision 9; or to the town under section 477A.013, new text end 100.1 new text begin subdivision 1, in the calendar year following the year in which the payment or contribution new text end 100.2 new text begin was made. The reduction is equal to the amount of the payment or contribution, but the aid new text end 100.3 new text begin paid to any county, city, or town may not be less than zero. Any savings in aid payments new text end 100.4 new text begin under this section shall stay in the general fund and shall not be redistributed to other new text end 100.5 new text begin counties, cities, or towns. new text end 100.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year 2018 new text end 100.7 new text begin and thereafter. new text end 100.8    Sec. 18. new text begin [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED new text end 100.9 new text begin DIVERSION PROGRAM. new text end 100.10     new text begin Subdivision 1. new text end new text begin Penalty for operating an unauthorized diversion program. new text end 100.11 new text begin Notwithstanding any other law to the contrary, a county or city that operated a pretrial new text end 100.12 new text begin diversion program that a court determines was not authorized under section 169.999 or new text end 100.13 new text begin another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by new text end 100.14 new text begin the amount of fees paid by participants into the program for the years in which the program new text end 100.15 new text begin operated. A court shall report any order that enjoins a county or city from operating a pretrial new text end 100.16 new text begin diversion program to the commissioner as required under subdivision 2. The commissioner new text end 100.17 new text begin shall, with the assistance of the state auditor, determine the amount of fees collected under new text end 100.18 new text begin the diversion program and reduce the county program aid paid to a county or the local new text end 100.19 new text begin government aid paid to a city by this amount beginning with the first aid payment made new text end 100.20 new text begin after the reduction amount is determined. No aid payment may be less than zero but the new text end 100.21 new text begin amount of the reduction that cannot be made out of that payment shall be applied to future new text end 100.22 new text begin payments until the total amount has been deducted. new text end 100.23     new text begin Subd. 2. new text end new text begin Court challenge to authority to operate a pretrial diversion program. new text end new text begin Any new text end 100.24 new text begin taxpayer may challenge a city or county operation of a pretrial diversion program by filing new text end 100.25 new text begin a declaratory judgment action or seeking other appropriate relief in the district court for the new text end 100.26 new text begin county where the city is located or in any other court of competent jurisdiction. If the court new text end 100.27 new text begin finds that the county or city has exceeded its authority under law in operating the pretrial new text end 100.28 new text begin diversion program, the court must transmit a copy of the court order to the commissioner new text end 100.29 new text begin of revenue. new text end 100.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 100.31 new text begin applies beginning with the second aid payments under Minnesota Statutes, section 477A.015 new text end 100.32 new text begin in calendar year 2017. new text end 101.1    Sec. 19. new text begin ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN new text end 101.2 new text begin 2017. new text end 101.3 new text begin (a) The amount of aid payable in 2017 to a city shall be increased to equal the amount new text end 101.4 new text begin of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for aids payable new text end 101.5 new text begin in 2016 if the following conditions are met: new text end 101.6 new text begin (1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids new text end 101.7 new text begin payable in 2017, is less than its certified aid for aids payable in 2016; and new text end 101.8 new text begin (2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids new text end 101.9 new text begin payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011, new text end 101.10 new text begin subdivision 34, for aids payable in 2017. new text end 101.11 new text begin (b) Any adjustment under this section shall be treated as an aid correction under new text end 101.12 new text begin Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this new text end 101.13 new text begin section shall be used as an affected city's 2017 certified aid amount when calculating its new text end 101.14 new text begin formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable in new text end 101.15 new text begin 2018. new text end 101.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar years 2017 new text end 101.17 new text begin and 2018. new text end 101.18    Sec. 20. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY. new text end 101.19 new text begin For a city that incorporated on October 13, 2015, and first qualifies for aid under new text end 101.20 new text begin Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid new text end 101.21 new text begin for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser of (1) new text end 101.22 new text begin 25 percent of its certified levy for taxes payable in 2016, or (2) 50 percent of its unmet need new text end 101.23 new text begin as defined in Minnesota Statutes, section 477A.011, subdivision 43. new text end 101.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2018. new text end 101.25    Sec. 21. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO. new text end 101.26 new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo new text end 101.27 new text begin shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, new text end 101.28 new text begin section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision new text end 101.29 new text begin 3, provided that the state auditor certifies to the commissioner of revenue that it received new text end 101.30 new text begin audited financial statements from the city for calendar year 2012 by December 31, 2013. new text end 101.31 new text begin The commissioner of revenue shall make a payment of $37,473.50 with the first payment new text end 102.1 new text begin of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the new text end 102.2 new text begin general fund to the commissioner of revenue in fiscal year 2018 to make this payment. new text end 102.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.4    Sec. 22. new text begin 2014 AID PENALTY FORGIVENESS. new text end 102.5 new text begin (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of new text end 102.6 new text begin Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment new text end 102.7 new text begin that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that new text end 102.8 new text begin the state auditor certifies to the commissioner of revenue that the city complied with all new text end 102.9 new text begin reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for new text end 102.10 new text begin calendar years 2013 and 2014 by June 1, 2015. new text end 102.11 new text begin (b) The commissioner of revenue shall make payment to each city no later than July 20, new text end 102.12 new text begin 2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the new text end 102.13 new text begin commissioner of revenue to make the payments under this section. new text end 102.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.15    Sec. 23. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT. new text end 102.16     new text begin Subdivision 1. new text end new text begin Abatements authorized. new text end new text begin (a) Notwithstanding Minnesota Statutes, section new text end 102.17 new text begin 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an new text end 102.18 new text begin abatement of local property taxes for taxes payable in 2017, provided that: new text end 102.19 new text begin (1) the property is classified as 1c, 3a (excluding utility real and personal property), new text end 102.20 new text begin 4c(1), 4c(10), or 4c(11); new text end 102.21 new text begin (2) on or before December 31, 2017, the taxpayer submits a written application to the new text end 102.22 new text begin county auditor in the county in which abatement is sought; and new text end 102.23 new text begin (3) the taxpayer meets qualification requirements established in subdivision 3. new text end 102.24     new text begin Subd. 2. new text end new text begin Appeals. new text end new text begin An appeal may not be taken to the Tax Court from any order of the new text end 102.25 new text begin county board made pursuant to the exercise of the discretionary authority granted in this new text end 102.26 new text begin section. new text end 102.27     new text begin Subd. 3. new text end new text begin Qualification requirements. new text end new text begin To qualify for abatements under this section, a new text end 102.28 new text begin taxpayer must: new text end 102.29 new text begin (1) be located within one of the following municipalities surrounding Lake Mille Lacs: new text end 103.1 new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township of new text end 103.2 new text begin Roosevelt; new text end 103.3 new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of new text end 103.4 new text begin Malmo, or township of Lakeside; or new text end 103.5 new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of new text end 103.6 new text begin East Side, township of Isle Harbor, township of South Harbor, or township of Kathio; new text end 103.7 new text begin (2) document a reduction in gross receipts of five percent or greater between two new text end 103.8 new text begin successive calendar years beginning in 2010 or later; and new text end 103.9 new text begin (3) be a business in one of the following industries, as defined within the North American new text end 103.10 new text begin Industry Classification System: accommodation, restaurants, bars, amusement and recreation, new text end 103.11 new text begin food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, new text end 103.12 new text begin historical sites, health and personal care, gas station, general merchandise, business and new text end 103.13 new text begin professional membership, movies, or nonstore retailer, as determined by the county in new text end 103.14 new text begin consultation with the commissioner of employment and economic development. new text end 103.15     new text begin Subd. 4. new text end new text begin State general levy in relief area. new text end new text begin The counties of Aitkin, Crow Wing, and new text end 103.16 new text begin Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a new text end 103.17 new text begin (excluding utility real and personal property), or 4c(1) that is located in the area described new text end 103.18 new text begin by subdivision 3, clause (1), for taxes payable in 2017. new text end 103.19     new text begin Subd. 5. new text end new text begin Certification and transfer of funds. new text end new text begin (a) By February 1, 2018, a county granting new text end 103.20 new text begin a refund as required under subdivision 4 must certify the total amount of state general tax new text end 103.21 new text begin refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille new text end 103.22 new text begin Lacs County must transfer an amount equal to the amount certified under this paragraph to new text end 103.23 new text begin the county making the certification. new text end 103.24 new text begin (b) By February 1, 2018, a county that has received an application for an abatement new text end 103.25 new text begin authorized under subdivision 1 must certify to Mille Lacs County the total amount of new text end 103.26 new text begin abatements for which applications have been received and approved. By March 1, 2018, new text end 103.27 new text begin Mille Lacs County must transfer an amount equal to the amount certified under this paragraph new text end 103.28 new text begin to the county making the certification. By April 30, 2018, the county must issue refunds of new text end 103.29 new text begin local property tax amounts to qualified taxpayers. new text end 103.30     new text begin Subd. 6. new text end new text begin Commissioner of revenue; appropriation. new text end new text begin An amount sufficient to make the new text end 103.31 new text begin transfers required under subdivision 5 in fiscal year 2018 is appropriated from the general new text end 103.32 new text begin fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime new text end 103.33 new text begin appropriation. new text end 104.1     new text begin Subd. 7. new text end new text begin Report to legislature. new text end new text begin The commissioner of revenue must make a written report new text end 104.2 new text begin to the chairs and ranking minority members of the legislative committees with jurisdiction new text end 104.3 new text begin over taxes stating the amount of abatements and refunds given under this section by taxing new text end 104.4 new text begin jurisdictions by February 1, 2019. The counties must provide the commissioner with the new text end 104.5 new text begin information necessary to make the report. new text end 104.6     new text begin Subd. 8. new text end new text begin Refund eligibility. new text end new text begin Only a taxpayer making all payments of property taxes for new text end 104.7 new text begin taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5. new text end 104.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 104.9    Sec. 24. new text begin SUPPLEMENTAL PAYMENTS FOR OTHER NATURAL RESOURCES new text end 104.10 new text begin LAND. new text end 104.11     new text begin Subdivision 1. new text end new text begin Supplemental payments. new text end new text begin For aids payable in calendar years 2017 and new text end 104.12 new text begin 2018 only, each county must receive a supplemental aid payment equal to 50 cents per acre new text end 104.13 new text begin for other natural resources land, as defined in Minnesota Statutes, section 477A.11, new text end 104.14 new text begin subdivision 4, located in the county. The payment shall be made at the same time as payments new text end 104.15 new text begin under Minnesota Statutes, section 477A.13, and the counties shall distribute this payment new text end 104.16 new text begin as if it was part of the aids subject to the general distribution for that year under Minnesota new text end 104.17 new text begin Statutes, section 477A.014, subdivision 1. new text end 104.18     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin The amount necessary to make the payments under subdivision new text end 104.19 new text begin 1 in each year is appropriated from the general fund to the commissioner of revenue for new text end 104.20 new text begin fiscal years 2018 and 2019 only. The appropriations under this section are onetime and not new text end 104.21 new text begin added to the base budget. new text end 104.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar years 2017 new text end 104.23 new text begin and 2018 only. new text end 104.24    Sec. 25. new text begin 2017 HOMESTEAD CREDIT REFUND. new text end 104.25 new text begin (a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the new text end 104.26 new text begin homestead credit refund allowed under Minnesota Statutes, section 290A.04, subdivision new text end 104.27 new text begin 2, so as to increase the total amount of refunds based on taxes payable in 2018. The new text end 104.28 new text begin commissioner must adjust the schedule by proportionately decreasing the percent of tax new text end 104.29 new text begin above the income threshold paid by the claimant, or the "co-payment percentage," for each new text end 104.30 new text begin income bracket in the schedule so that the increase in refunds projected to be paid based on new text end 104.31 new text begin taxes payable in 2018 equals $58,000,000. new text end 105.1 new text begin (b) The amount necessary to pay the additional amounts required under this section is new text end 105.2 new text begin appropriated from the general fund to the commissioner of revenue in fiscal year 2019. new text end 105.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on taxes payable in new text end 105.4 new text begin 2018 only. new text end 105.5    Sec. 26. new text begin 2017 RENTER PROPERTY TAX REFUND. new text end 105.6 new text begin (a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for the new text end 105.7 new text begin property tax refund for renters allowed under Minnesota Statutes, section 290A.04, new text end 105.8 new text begin subdivision 2a, so as to increase the total amount of refunds based on taxes payable in 2018. new text end 105.9 new text begin The commissioner must adjust the schedule by: new text end 105.10 new text begin (1) first proportionately decreasing the percent of income, or the "threshold percentage," new text end 105.11 new text begin for each income bracket in the schedule so that the increase in refunds projected to be paid new text end 105.12 new text begin based on rent paid in 2017 equals $21,000,000; and new text end new text begin new text end 105.13 new text begin (2) second proportionately decreasing the percent of tax above the income threshold new text end 105.14 new text begin paid by the claimant, or the "co-payment percentage," for each income bracket in the schedule new text end 105.15 new text begin so that the total increase in refunds projected to be paid based on rent paid in 2017 under new text end 105.16 new text begin this clause and clause (1) equals $42,000,000. new text end 105.17 new text begin (b) The amount necessary to pay the additional amounts required under this section is new text end 105.18 new text begin appropriated from the general fund to the commissioner of revenue in fiscal year 2019. new text end 105.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refunds based on rent paid in 2017 new text end 105.20 new text begin only. new text end 105.21    Sec. 27. new text begin REPEALER. new text end 105.22 new text begin Minnesota Statutes 2016, section 477A.085, new text end new text begin is repealed. new text end 105.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2018. new text end 105.24ARTICLE 4 105.25IN PERPETUITY PAYMENTS ON LAND PURCHASES 105.26    Section 1. new text begin [11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS. new text end 105.27     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin The State Board of Investment, when requested by a new text end 105.28 new text begin county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision 2, new text end 105.29 new text begin shall invest the funds deposited by the commissioner of revenue, acting as an agent on the new text end 105.30 new text begin board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2, in a new text end 106.1 new text begin special account for that purpose in the combined investment funds established in section new text end 106.2 new text begin 11A.14, subject to the policy and procedures of the State Board of Investment. Use of the new text end 106.3 new text begin funds is restricted to payments to the commissioner of revenue, acting as an agent on behalf new text end 106.4 new text begin of the counties, for distributions to counties under sections 97A.056, subdivision 1b, and new text end 106.5 new text begin 116P.045, subdivision 2. new text end 106.6     new text begin Subd. 2. new text end new text begin Account maintenance and investment. new text end new text begin The commissioner of revenue may new text end 106.7 new text begin deposit money into the account on behalf of the counties and may withdraw money from new text end 106.8 new text begin the account to make distributions to the counties under sections 97A.056, subdivision 1b, new text end 106.9 new text begin and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment new text end 106.10 new text begin under each section each year for all counties eligible for a payment in that year. The new text end 106.11 new text begin commissioner shall make one withdrawal annually at a time negotiated with the executive new text end 106.12 new text begin director of the State Board of Investment, but no later than November 15, to cover new text end 106.13 new text begin distributions to counties under section 477A.30, up to the limit allowed under that section. new text end 106.14 new text begin The transactions must be in the manner required by the executive director of the State Board new text end 106.15 new text begin of Investment. Investment earnings must be credited to the account. new text end 106.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018. new text end 106.17    Sec. 2. Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read: 106.18    Subd. 1a. Definitions. For the purpose of new text begin (a) The definitions in this subdivision apply new text end 106.19 new text begin to this section and new text end appropriations from the outdoor heritage fund, new text begin . new text end 106.20 new text begin (b) "Land acquisition costs" means acquisition coordination costs, costs of engineering new text end 106.21 new text begin services, appraisal fees, attorney fees, taxes, assessments required at the time of purchase, new text end 106.22 new text begin onetime trust fund payments under subdivision 1b, and recording fees. new text end 106.23 new text begin (c) "Land-related property taxes" means property taxes collected on behalf of local new text end 106.24 new text begin governments providing land-related services. new text end 106.25 new text begin (d) "Local governments providing land-related services" means counties, townships, new text end 106.26 new text begin home rule charter and statutory cities, watershed districts under chapter 103D, sanitary new text end 106.27 new text begin districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts under new text end 106.28 new text begin sections 115.61 to 115.67. new text end 106.29 new text begin (e) new text end "Recipient" means the entity responsible for deliverables financed by the outdoor 106.30heritage fund. 106.31 new text begin (f) "Total payment for the land" means the total price paid for the land including land new text end 106.32 new text begin acquisition costs, but excluding any in-kind services provided by nongovernmental entities new text end 106.33 new text begin at no cost to the state. new text end 107.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 107.2    Sec. 3. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to 107.3read: 107.4     new text begin Subd. 1b. new text end new text begin Outdoor heritage trust fund payment account; trust fund payments. new text end new text begin (a) new text end 107.5 new text begin An outdoor heritage trust fund account is created in the special revenue fund. The State new text end 107.6 new text begin Board of Investment must ensure the account is invested under section 11A.24. The new text end 107.7 new text begin commissioner of management and budget must credit to the account all money appropriated new text end 107.8 new text begin to the account and all money earned by the account. The principal of the account and any new text end 107.9 new text begin unexpended earnings must be invested and reinvested by the State Board of Investment. new text end 107.10 new text begin Nothing in this section limits the source of contributions to the account. Money in the new text end 107.11 new text begin account must be used only for the purposes of this subdivision. new text end 107.12 new text begin (b) State land acquired in fee simple in whole or in part with money appropriated from new text end 107.13 new text begin the outdoor heritage fund is eligible for a onetime trust fund payment as provided under new text end 107.14 new text begin this subdivision. The percentage of the total acres acquired in any purchase that is eligible new text end 107.15 new text begin for a trust fund payment under this subdivision is equal to the percentage of the total payment new text end 107.16 new text begin for the land funded from outdoor heritage fund revenues. If the percentage of the total new text end 107.17 new text begin payment for the land from the outdoor heritage fund is ten percent or less, the parcel is new text end 107.18 new text begin ineligible for a payment under this subdivision; if the percentage is 90 percent or more, the new text end 107.19 new text begin entire parcel is eligible for the payment under this subdivision. The commissioner of natural new text end 107.20 new text begin resources must certify to the commissioner of revenue and the county in which land eligible new text end 107.21 new text begin for a payment under this section is purchased the total number of acres purchased, the total new text end 107.22 new text begin payment for the land, and the amount of outdoor heritage fund revenues used for the purchase. new text end 107.23 new text begin The trust fund payment is equal to 30 times the land-related property taxes assessed on the new text end 107.24 new text begin eligible portion of the land in the year prior to the year in which the land is acquired. If the new text end 107.25 new text begin land was acquired from a private party that was exempt from paying property taxes, the new text end 107.26 new text begin payments must be based on 30 times the property taxes assessed on comparable land in the new text end 107.27 new text begin year prior to the year in which the land is acquired. By September 1 each year, the county new text end 107.28 new text begin in which the land is acquired must provide the commissioner of revenue with information new text end 107.29 new text begin necessary in a form determined by the commissioner of revenue to make this determination new text end 107.30 new text begin for all lands acquired for the 12-month period ending on June 30 of that year. The new text end 107.31 new text begin commissioner of revenue must make a trust fund payment on behalf of each county on the new text end 107.32 new text begin same date as the first payment under section 273.1384, subdivision 4, each year for all land new text end 107.33 new text begin acquired in that county in the 12-month period ending on June 30 of that year to the State new text end 107.34 new text begin Board of Investment as required under this paragraph. The money so deposited is money new text end 107.35 new text begin paid to the counties and may only be withdrawn for the purposes allowed under section new text end 108.1 new text begin 477A.30. The commissioner of revenue must inform each county by October 15 each year new text end 108.2 new text begin of the amount deposited on the county's behalf with the State Board of Investment under new text end 108.3 new text begin this subdivision. new text end 108.4 new text begin (c) The amount necessary to make the payments required under this subdivision is new text end 108.5 new text begin annually appropriated from the outdoor heritage trust fund payment account to the new text end 108.6 new text begin commissioner of revenue for deposit in the account for county joint trust fund payments in new text end 108.7 new text begin section 11A.237. new text end 108.8 new text begin (d) To receive a trust fund payment under this subdivision, a county board must enter new text end 108.9 new text begin into an agreement with the State Board of Investment to allow the commissioner of revenue new text end 108.10 new text begin to make deposits and withdrawals on behalf of the county into and out of the county joint new text end 108.11 new text begin trust fund account under section 11A.237. new text end 108.12 new text begin (e) The portion of land receiving a trust fund payment under this subdivision is not new text end 108.13 new text begin eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution of new text end 108.14 new text begin withdrawals from the county joint trust fund account under section 477A.30. new text end 108.15 new text begin (f) If the land for which a payment under this subdivision is made is subsequently sold new text end 108.16 new text begin to another entity and is no longer available for the use for which it was purchased, the new text end 108.17 new text begin original amount of the payment for that land under paragraph (b) must be withdrawn by the new text end 108.18 new text begin commissioner of revenue from the account established under section 11A.237 and returned new text end 108.19 new text begin to the outdoor heritage fund. If only a portion of the land is sold and no longer available for new text end 108.20 new text begin the use for which it was purchased, the amount of the original trust fund payment returned new text end 108.21 new text begin is reduced proportionately based on the portion of the original purchase that is sold. The new text end 108.22 new text begin holder of the land must inform the commissioner of revenue and the county in which the new text end 108.23 new text begin land is sold of the sale and provide them with any information necessary to calculate the new text end 108.24 new text begin required withdrawal from the account. The withdrawal is made along with withdrawals new text end 108.25 new text begin under section 477A.30 in the calendar year after the year in which the land is sold. new text end 108.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to land acquired new text end 108.27 new text begin with money appropriated on or after that date. new text end 108.28    Sec. 4. Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read: 108.29    Subd. 3. Council recommendations. (a) The council shall make recommendations to 108.30the legislature on appropriations of money from the outdoor heritage fund that are consistent 108.31with the Constitution and state law and that will achieve the outcomes of existing natural 108.32resource plans, including, but not limited to, the Minnesota Statewide Conservation and 108.33Preservation Plan, that directly relate to the restoration, protection, and enhancement of 109.1wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest 109.2fragmentation, encourage forest consolidation, and expand restored native prairie. In making 109.3recommendations, the council shall consider a range of options that would best restore, 109.4protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife. 109.5 new text begin The council recommendations each year on appropriation of money from the outdoor heritage new text end 109.6 new text begin fund must include amounts adequate to make the required transfers to the outdoor heritage new text end 109.7 new text begin trust fund payment account according to subdivision 1b. new text end The council's recommendations 109.8shall be submitted no later than January 15 each year. The council shall present its 109.9recommendations to the senate and house of representatives committees with jurisdiction 109.10over the environment and natural resources budget by February 15 in odd-numbered years, 109.11and within the first four weeks of the legislative session in even-numbered years. The 109.12council's budget recommendations to the legislature shall be separate from the Department 109.13of Natural Resource's budget recommendations. 109.14    (b) To encourage and support local conservation efforts, the council shall establish a 109.15conservation partners program. Local, regional, state, or national organizations may apply 109.16for matching grants for restoration, protection, and enhancement of wetlands, prairies, 109.17forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation, 109.18encouragement of forest consolidation, and expansion of restored native prairie. 109.19    (c) The council may work with the Clean Water Council to identify projects that are 109.20consistent with both the purpose of the outdoor heritage fund and the purpose of the clean 109.21water fund. 109.22    (d) The council may make recommendations to the Legislative-Citizen Commission on 109.23Minnesota Resources on scientific research that will assist in restoring, protecting, and 109.24enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing 109.25forest fragmentation, encouraging forest consolidation, and expanding restored native prairie. 109.26    (e) Recommendations of the council, including approval of recommendations for the 109.27outdoor heritage fund, require an affirmative vote of at least nine members of the council. 109.28(f) The council may work with the Clean Water Council, the Legislative-Citizen 109.29Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and 109.30water conservation districts, and experts from Minnesota State Colleges and Universities 109.31and the University of Minnesota in developing the council's recommendations. 109.32(g) The council shall develop and implement a process that ensures that citizens and 109.33potential recipients of funds are included throughout the process, including the development 109.34and finalization of the council's recommendations. The process must include a fair, equitable, 110.1and thorough process for reviewing requests for funding and a clear and easily understood 110.2process for ranking projects. 110.3(h) The council shall use the regions of the state based upon the ecological sections and 110.4subsections developed by the Department of Natural Resources and establish objectives for 110.5each region and subregion to achieve the purposes of the fund outlined in the state 110.6constitution. 110.7(i) The council shall develop and submit to the Legislative Coordinating Commission 110.8plans for the first ten years of funding, and a framework for 25 years of funding, consistent 110.9with statutory and constitutional requirements. The council may use existing plans from 110.10other legislative, state, and federal sources, as applicable. 110.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to lands acquired new text end 110.12 new text begin with money appropriated on or after that date. new text end 110.13    Sec. 5. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to 110.14read: 110.15     new text begin Subd. 15a. new text end new text begin State acquisition of land; restrictions. new text end new text begin The state may not use money from new text end 110.16 new text begin the outdoor heritage fund to acquire in fee simple in whole or in part any land subject to new text end 110.17 new text begin property taxes or any land owned by a nonprofit organization that was subject to property new text end 110.18 new text begin taxes before the land's acquisition by the nonprofit organization if (1) subdivision 1b is void, new text end 110.19 new text begin or (2) sufficient funds to cover the onetime trust fund payment required under subdivision new text end 110.20 new text begin 1b have not been appropriated or are not available. new text end 110.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to land acquired new text end 110.22 new text begin with money appropriated on or after that date. new text end 110.23    Sec. 6. Minnesota Statutes 2016, section 116P.02, subdivision 1, is amended to read: 110.24    Subdivision 1. Applicability. The definitions in this section apply to this chapter new text begin , except new text end 110.25 new text begin that the definition in subdivision 6 does not apply to section 116P.045 new text end . 110.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 110.27    Sec. 7. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 110.28read: 110.29     new text begin Subd. 4a. new text end new text begin Land acquisition costs. new text end new text begin "Land acquisition costs" means acquisition new text end 110.30 new text begin coordination costs, costs of engineering services, appraisal fees, attorney fees, taxes, new text end 111.1 new text begin assessments required at the time of purchase, payments under section 116P.045, and recording new text end 111.2 new text begin fees. new text end 111.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 111.4    Sec. 8. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 111.5read: 111.6     new text begin Subd. 4b. new text end new text begin Land-related property taxes. new text end new text begin "Land-related property taxes" means property new text end 111.7 new text begin taxes collected on behalf of local governments providing land-related services. new text end 111.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 111.9    Sec. 9. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 111.10read: 111.11     new text begin Subd. 4c. new text end new text begin Local governments providing land-related services. new text end new text begin "Local governments new text end 111.12 new text begin providing land-related services" means counties, townships, home rule charter and statutory new text end 111.13 new text begin cities, watershed districts under chapter 103D, sanitary districts under sections 442A.01 to new text end 111.14 new text begin 442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67. new text end 111.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 111.16    Sec. 10. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision 111.17to read: 111.18     new text begin Subd. 4d. new text end new text begin Total payment for the land. new text end new text begin "Total payment for the land" means the total new text end 111.19 new text begin price paid for the land including land acquisition costs, but excluding any in-kind services new text end 111.20 new text begin provided by nongovernmental entities at no cost to the state. new text end 111.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 111.22    Sec. 11. new text begin [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND new text end 111.23 new text begin PAYMENT ACCOUNT. new text end 111.24     new text begin Subdivision 1. new text end new text begin Account created. new text end new text begin An environment and natural resources trust fund new text end 111.25 new text begin payment account is created in the special revenue fund. The State Board of Investment must new text end 111.26 new text begin ensure the account is invested under section 11A.24. The commissioner of management new text end 111.27 new text begin and budget must credit to the account all money appropriated to the account and all money new text end 111.28 new text begin earned by the account. The principal of the account and any unexpended earnings must be new text end 111.29 new text begin invested and reinvested by the State Board of Investment. Nothing in this section limits the new text end 112.1 new text begin source of contributions to the account. Money in the account must be used only for the new text end 112.2 new text begin purposes of this section. new text end 112.3     new text begin Subd. 2. new text end new text begin Trust fund payment; appropriation. new text end new text begin (a) State land acquired in fee simple in new text end 112.4 new text begin whole or in part with money appropriated from the environment and natural resources trust new text end 112.5 new text begin fund is eligible for a onetime trust fund payment as provided under this subdivision. The new text end 112.6 new text begin percentage of the total acres acquired in any purchase that is eligible for a trust fund payment new text end 112.7 new text begin under this section is equal to the percentage of the total payment for the land funded from new text end 112.8 new text begin environment and natural resources trust fund revenues. If the percentage of the total payment new text end 112.9 new text begin for the land from the environment and natural resources trust fund is ten percent or less, the new text end 112.10 new text begin parcel is ineligible for a payment under this section; if the percentage is 90 percent or more, new text end 112.11 new text begin the entire parcel is eligible for the payment under this section. The commissioner of natural new text end 112.12 new text begin resources must certify to the commissioner of revenue and the county in which land eligible new text end 112.13 new text begin for a payment under this section is purchased the total number of acres purchased, the total new text end 112.14 new text begin payment for the land, and the amount of environmental and natural resources trust fund new text end 112.15 new text begin revenues used for the purchase. The trust fund payment is equal to 30 times the land-related new text end 112.16 new text begin property taxes assessed on the eligible portion of the land in the year prior to the year in new text end 112.17 new text begin which the land is acquired. If the land was acquired from a private party that was exempt new text end 112.18 new text begin from paying property taxes, the payments must be based on 30 times the property taxes new text end 112.19 new text begin assessed on comparable land in the year prior to the year in which the land is acquired. By new text end 112.20 new text begin September 1 each year, the county in which the land is acquired must provide the new text end 112.21 new text begin commissioner of revenue with information necessary in a form determined by the new text end 112.22 new text begin commissioner of revenue to make this determination for all lands acquired for the 12-month new text end 112.23 new text begin period ending on June 30 of that year. The commissioner of revenue must make a trust fund new text end 112.24 new text begin payment on behalf of each county on the same date as the first payment under section new text end 112.25 new text begin 273.1384, subdivision 4, each year for all land acquired in that county in the 12-month new text end 112.26 new text begin period ending on June 30 of that year to the State Board of Investment as required under new text end 112.27 new text begin this section. The money so deposited is money paid to the counties and may only be new text end 112.28 new text begin withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue new text end 112.29 new text begin must inform each county by October 15 each year of the amount deposited on the county's new text end 112.30 new text begin behalf with the State Board of Investment under this subdivision. new text end 112.31 new text begin (b) The amount necessary to make the payments required under this subdivision is new text end 112.32 new text begin annually appropriated from the environment and natural resources trust fund payment new text end 112.33 new text begin account to the commissioner of revenue for deposit in the account for county joint trust new text end 112.34 new text begin fund payments in section 11A.237. new text end 113.1 new text begin (c) If the land for which a payment under this subdivision is made is subsequently sold new text end 113.2 new text begin to another entity and is no longer available for the use for which it was purchased, the new text end 113.3 new text begin original amount of the payment for that land under paragraph (a) must be withdrawn by the new text end 113.4 new text begin commissioner of revenue from the account established under section 11A.237 and returned new text end 113.5 new text begin to the environment and natural resources trust fund. If only a portion of the land is sold and new text end 113.6 new text begin no longer available for the use for which it was purchased, the amount of the original trust new text end 113.7 new text begin fund payment returned is reduced proportionately based on the portion of the original new text end 113.8 new text begin purchase that is sold. The holder of the land must inform the commissioner of revenue and new text end 113.9 new text begin the county in which the land is sold of the sale and provide them with any information new text end 113.10 new text begin necessary to calculate the required withdrawal from the account. The withdrawal is made new text end 113.11 new text begin along with withdrawals under section 477A.30 in the calendar year after the year in which new text end 113.12 new text begin the land is sold. new text end 113.13     new text begin Subd. 3. new text end new text begin County requirements. new text end new text begin To receive a trust fund payment under this section, a new text end 113.14 new text begin county board must enter into an agreement with the State Board of Investment to allow the new text end 113.15 new text begin commissioner of revenue to make deposits and withdrawals on behalf of the county into new text end 113.16 new text begin and out of the county joint trust fund account under section 11A.237. new text end 113.17     new text begin Subd. 4. new text end new text begin Ineligible for other payments. new text end new text begin Land receiving a trust fund payment under this new text end 113.18 new text begin section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible for new text end 113.19 new text begin distribution of withdrawals from the county joint trust fund account under section 477A.30. new text end 113.20     new text begin Subd. 5. new text end new text begin State acquisition of land; restrictions. new text end new text begin The state may not use money from the new text end 113.21 new text begin environment and natural resources trust fund to acquire in fee simple in whole or in part new text end 113.22 new text begin any land subject to property taxes or any land owned by a nonprofit organization that was new text end 113.23 new text begin subject to property taxes before the land's acquisition by the nonprofit organization if (1) new text end 113.24 new text begin subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment required new text end 113.25 new text begin under subdivision 2 have not been appropriated or are not available. new text end 113.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to land acquired new text end 113.27 new text begin with money appropriated on or after that date. new text end 113.28    Sec. 12. Minnesota Statutes 2016, section 116P.08, subdivision 1, is amended to read: 113.29    Subdivision 1. Expenditures. Money in the trust fund may be spent only for: 113.30(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2; 113.31(2) research that contributes to increasing the effectiveness of protecting or managing 113.32the state's environment or natural resources; 114.1(3) collection and analysis of information that assists in developing the state's 114.2environmental and natural resources policies; 114.3(4) enhancement of public education, awareness, and understanding necessary for the 114.4protection, conservation, restoration, and enhancement of air, land, water, forests, fish, 114.5wildlife, and other natural resources; 114.6(5) capital projects for the preservation and protection of unique natural resources; 114.7(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural 114.8resources that otherwise may be substantially impaired or destroyed in any area of the state; 114.9(7) administrative and investment expenses incurred by the State Board of Investment 114.10in investing deposits to the trust fund; and 114.11(8) administrative expenses subject to the limits in section 116P.09. new text begin ; and new text end 114.12 new text begin (9) payments to the environment and natural resources trust fund payment account as new text end 114.13 new text begin required in section 116P.045. new text end 114.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to lands acquired new text end 114.15 new text begin with money appropriated on or after that date. new text end 114.16    Sec. 13. Minnesota Statutes 2016, section 116P.08, subdivision 4, is amended to read: 114.17    Subd. 4. Legislative recommendations. (a) Funding may be provided only for those 114.18projects that meet the categories established in subdivision 1. 114.19(b) The commission must recommend an annual or biennial legislative bill to make 114.20appropriations from the trust fund for the purposes provided in subdivision 1. The 114.21recommendations must be submitted to the governor for inclusion in the biennial budget 114.22and supplemental budget submitted to the legislature. 114.23(c) The commission may recommend regional block grants for a portion of trust fund 114.24expenditures to partner with existing regional organizations that have strong citizen 114.25involvement, to address unique local needs and capacity, and to leverage all available funding 114.26sources for projects. 114.27(d) The commission may recommend the establishment of an emerging issues account 114.28in its legislative bill for funding emerging issues, which come up unexpectedly, but which 114.29still adhere to the commission's strategic plan, to be approved by the governor after initiation 114.30and recommendation by the commission. 115.1(e) new text begin The council must recommend an appropriation of money from the environment and new text end 115.2 new text begin natural resources trust fund adequate to make the required transfers to the environment and new text end 115.3 new text begin natural resources trust fund payment account according to section 116P.045. new text end 115.4 new text begin (f) new text end Money in the trust fund may not be spent except under an appropriation by law. 115.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and applies to lands acquired new text end 115.6 new text begin with money appropriated on or after that date. new text end 115.7    Sec. 14. Minnesota Statutes 2016, section 477A.10, is amended to read: 115.8477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE. 115.9The purposes of sections 477A.11 to 477A.14 are: 115.10(1) to compensate local units of government for the loss of tax base from state ownership 115.11of land new text begin , except land acquired on or after July 1, 2017, receiving trust fund payments from new text end 115.12 new text begin the outdoor heritage trust fund payment account or the environment and natural resources new text end 115.13 new text begin trust fund payment account, new text end and the need to provide services for state land; 115.14(2) to address the disproportionate impact of state land ownership on local units of 115.15government with a large proportion of state land; and 115.16(3) to address the need to manage state lands held in trust for the local taxing districts. 115.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 115.18    Sec. 15. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 115.19to read: 115.20     new text begin Subd. 9. new text end new text begin Environment and natural resources trust fund lands. new text end new text begin Notwithstanding any new text end 115.21 new text begin other provision of law to the contrary, parcels or portions of parcels of land purchased on new text end 115.22 new text begin or after July 1, 2017, and eligible for a trust fund payment under section 116P.045 are not new text end 115.23 new text begin included in the definitions of the lands described in subdivisions 3 to 7 and are excluded new text end 115.24 new text begin from payments under sections 477A.11 to 477A.14. new text end new text begin new text end 115.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2018. new text end 115.26    Sec. 16. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 115.27to read: 115.28     new text begin Subd. 10. new text end new text begin Outdoor heritage lands. new text end new text begin Notwithstanding any other provision of law to the new text end 115.29 new text begin contrary, parcels or portions of parcels of land purchased on or after July 1, 2017, and new text end 115.30 new text begin eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included new text end 116.1 new text begin in the definitions of the lands described in subdivisions 3 to 7 and are excluded from new text end 116.2 new text begin payments under sections 477A.11 to 477A.14. new text end new text begin new text end 116.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2018. new text end 116.4    Sec. 17. new text begin [477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS new text end 116.5 new text begin AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES new text end 116.6 new text begin TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS. new text end 116.7     new text begin Subdivision 1. new text end new text begin Commissioner of revenue; withdrawals and payments. new text end new text begin No later than new text end 116.8 new text begin November 15 each year, the commissioner of revenue shall make a withdrawal on behalf new text end 116.9 new text begin of all eligible counties from the county joint trust fund account established under section new text end 116.10 new text begin 11A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified by new text end 116.11 new text begin the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount in that new text end 116.12 new text begin account as of September 1 of that year as determined by the executive director of the State new text end 116.13 new text begin Board of Investment. The commissioner shall distribute the certified withdrawal amounts new text end 116.14 new text begin to each county by November 31. If the amount of the withdrawal is less than the total new text end 116.15 new text begin certified withdrawal amounts under subdivision 2, the commissioner shall reduce the new text end 116.16 new text begin distribution to each county proportionately. new text end 116.17     new text begin Subd. 2. new text end new text begin Certification of needed withdrawal; distribution of funds. new text end new text begin (a) Beginning in new text end 116.18 new text begin calendar year 2018, by September 1 each year, a county for whom a trust fund payment has new text end 116.19 new text begin been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision new text end 116.20 new text begin 2, shall calculate and certify to the commissioner of revenue the amount of trust fund new text end 116.21 new text begin withdrawals needed under this section. The amount of the withdrawal for each parcel of new text end 116.22 new text begin land for which a county received a trust fund payment under either provision is as follows: new text end 116.23 new text begin (1) for the year in which a trust fund payment is made to a county for a parcel of land, new text end 116.24 new text begin the withdrawal for that parcel is equal to: new text end 116.25 new text begin (i) the remaining taxes owed to the local governments providing land-related services new text end 116.26 new text begin for taxes spread that year for a parcel acquired between January 1 and June 30; or new text end 116.27 new text begin (ii) the amount of taxes paid to the local governments providing land-related services new text end 116.28 new text begin on the parcel in the previous year if the parcel was acquired before January 1 of the current new text end 116.29 new text begin year. The county must distribute the amount by December 15 to all local governments new text end 116.30 new text begin providing land-related services based on the location of the parcel and the local governments' new text end 116.31 new text begin share of the total tax; and new text end 116.32 new text begin (2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that would new text end 116.33 new text begin be owed based on the appraised value of the land and the taxes assessed by local governments new text end 117.1 new text begin providing land-related services on comparable, privately owned adjacent land. For purposes new text end 117.2 new text begin of this subdivision, "appraised value" is determined in the manner described in section new text end 117.3 new text begin 477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among the new text end 117.4 new text begin local governments providing land-related services on the same basis as if the funds were new text end 117.5 new text begin taxes on the land received in that year. The county treasurer must pay the allocation to all new text end 117.6 new text begin eligible local governments by December 15 of the year in which the withdrawal is made. new text end 117.7 new text begin The county's share of the payment must be deposited in the county general fund. new text end 117.8 new text begin (b) If the distribution to a county under subdivision 1 is less than its total withdrawal new text end 117.9 new text begin amounts certified under this subdivision, all distributions under paragraph (a) are reduced new text end 117.10 new text begin proportionately. new text end 117.11 new text begin (c) The local governments receiving a payment under this section must use the money new text end 117.12 new text begin to fund land-related services. For purposes of this paragraph, "land-related services" means new text end 117.13 new text begin services used to restore, enhance, and protect the land and its fish and wildlife habitat and new text end 117.14 new text begin provide any other public services benefiting the land and users of the land, including access new text end 117.15 new text begin and services to the public accessing and using the land and direct and indirect capital and new text end 117.16 new text begin operating costs for (1) roads, bridges, and trails; (2) public safety and emergency response new text end 117.17 new text begin services; (3) environmental, recreational, and resource development and management; and new text end 117.18 new text begin (4) similar costs. new text end 117.19 new text begin (d) For purposes of this subdivision, "local governments providing land-related services" new text end 117.20 new text begin has the meaning given in section 116P.02, subdivision 4c. new text end 117.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2018, and applies to land new text end 117.22 new text begin acquired with money appropriated on or after July 1, 2017. new text end 117.23    Sec. 18. new text begin DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR new text end 117.24 new text begin APPROPRIATIONS MADE FOR FISCAL YEAR 2018. new text end new text begin new text end 117.25 new text begin (a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state new text end 117.26 new text begin may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase new text end 117.27 new text begin land without appropriating sufficient funds to cover the onetime trust fund payment required new text end 117.28 new text begin under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to make new text end 117.29 new text begin the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for all new text end 117.30 new text begin fiscal year 2018 appropriations for land purchases must be deposited in the outdoor heritage new text end 117.31 new text begin trust fund payment account by August 1, 2018, or the restriction on land acquisition under new text end 117.32 new text begin Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition new text end 117.33 new text begin authorized with fiscal year 2018 funds that have not yet been acquired. new text end 118.1 new text begin (b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state may new text end 118.2 new text begin appropriate money in fiscal year 2018 from the environment and natural resources trust new text end 118.3 new text begin fund to purchase land without appropriating sufficient funds to cover the onetime trust fund new text end 118.4 new text begin payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount new text end 118.5 new text begin necessary to make the payment required under Minnesota Statutes, section 116P.045, new text end 118.6 new text begin subdivision 2, for all fiscal year 2018 appropriations for land purchases must be deposited new text end 118.7 new text begin in the environment and natural resources trust fund payment account by August 1, 2018, or new text end 118.8 new text begin the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision new text end 118.9 new text begin 5, applies to any land acquisition authorized with fiscal year 2018 funds that have not yet new text end 118.10 new text begin been acquired. new text end 118.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 118.12ARTICLE 5 118.13TAX INCREMENT FINANCING 118.14    Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read: 118.15    Subd. 12. Economic development district. "Economic development district" means a 118.16type of tax increment financing district which consists of any project, or portions of a project, 118.17which the authority finds to be in the public interest because: 118.18(1) it will discourage commerce, industry, or manufacturing from moving their operations 118.19to another state or municipality; or 118.20(2) it will result in increased employment in the state; or 118.21(3) it will result in preservation and enhancement of the tax base of the state new text begin ; or new text end 118.22 new text begin (4) it satisfies the requirements of a workforce housing project under section 469.176, new text end 118.23 new text begin subdivision 4c, paragraph (d) new text end . 118.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 118.25 new text begin certification was made after June 30, 2017. new text end 118.26    Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read: 118.27    Subd. 3. Municipality approval. (a) A county auditor shall not certify the original net 118.28tax capacity of a tax increment financing district until the tax increment financing plan 118.29proposed for that district has been approved by the municipality in which the district is 118.30located. If an authority that proposes to establish a tax increment financing district and the 118.31municipality are not the same, the authority shall apply to the municipality in which the 119.1district is proposed to be located and shall obtain the approval of its tax increment financing 119.2plan by the municipality before the authority may use tax increment financing. The 119.3municipality shall approve the tax increment financing plan only after a public hearing 119.4thereon after published notice in a newspaper of general circulation in the municipality at 119.5least once not less than ten days nor more than 30 days prior to the date of the hearing. The 119.6published notice must include a map of the area of the district from which increments may 119.7be collected and, if the project area includes additional area, a map of the project area in 119.8which the increments may be expended. The hearing may be held before or after the approval 119.9or creation of the project or it may be held in conjunction with a hearing to approve the 119.10project. 119.11    (b) Before or at the time of approval of the tax increment financing plan, the municipality 119.12shall make the following findings, and shall set forth in writing the reasons and supporting 119.13facts for each determination: 119.14    (1) that the proposed tax increment financing district is a redevelopment district, a 119.15renewal or renovation district, a housing district, a soils condition district, or an economic 119.16development district; if the proposed district is a redevelopment district or a renewal or 119.17renovation district, the reasons and supporting facts for the determination that the district 119.18meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or 119.19subdivision 10a, must be documented in writing and retained and made available to the 119.20public by the authority until the district has been terminated; 119.21    (2) that, in the opinion of the municipality: 119.22    (i) the proposed development or redevelopment would not reasonably be expected to 119.23occur solely through private investment within the reasonably foreseeable future; and 119.24    (ii) the increased market value of the site that could reasonably be expected to occur 119.25without the use of tax increment financing would be less than the increase in the market 119.26value estimated to result from the proposed development after subtracting the present value 119.27of the projected tax increments for the maximum duration of the district permitted by the 119.28plan. The requirements of this item do not apply if the district is a housing district; 119.29    (3) that the tax increment financing plan conforms to the general plan for the development 119.30or redevelopment of the municipality as a whole; 119.31    (4) that the tax increment financing plan will afford maximum opportunity, consistent 119.32with the sound needs of the municipality as a whole, for the development or redevelopment 119.33of the project by private enterprise; 120.1    (5) that the municipality elects the method of tax increment computation set forth in 120.2section 469.177, subdivision 3, paragraph (b), if applicable. 120.3    (c) When the municipality and the authority are not the same, the municipality shall 120.4approve or disapprove the tax increment financing plan within 60 days of submission by 120.5the authority. When the municipality and the authority are not the same, the municipality 120.6may not amend or modify a tax increment financing plan except as proposed by the authority 120.7pursuant to subdivision 4. Once approved, the determination of the authority to undertake 120.8the project through the use of tax increment financing and the resolution of the governing 120.9body shall be conclusive of the findings therein and of the public need for the financing. 120.10    (d) For a district that is subject to the requirements of paragraph (b), clause (2), item 120.11(ii), the municipality's statement of reasons and supporting facts must include all of the 120.12following: 120.13    (1) an estimate of the amount by which the market value of the site will increase without 120.14the use of tax increment financing; 120.15    (2) an estimate of the increase in the market value that will result from the development 120.16or redevelopment to be assisted with tax increment financing; and 120.17    (3) the present value of the projected tax increments for the maximum duration of the 120.18district permitted by the tax increment financing plan. 120.19    (e) For purposes of this subdivision, "site" means the parcels on which the development 120.20or redevelopment to be assisted with tax increment financing will be located. 120.21 new text begin (f) Before or at the time of approval of the tax increment financing plan for a district to new text end 120.22 new text begin be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph new text end 120.23 new text begin (d), the municipality shall make the following findings and set forth in writing the reasons new text end 120.24 new text begin and supporting facts for each determination: new text end 120.25 new text begin (1) the city is located outside of the metropolitan area, as defined in section 473.121, new text end 120.26 new text begin subdivision 2; new text end 120.27 new text begin (2) the average vacancy rate for rental housing located in the municipality and in any new text end 120.28 new text begin statutory or home rule charter city located within 15 miles or less of the boundaries of the new text end 120.29 new text begin municipality has been three percent or less for at least the immediately preceding two-year new text end 120.30 new text begin period; new text end 120.31 new text begin (3) at least one business located in the municipality or within 15 miles of the municipality new text end 120.32 new text begin that employs a minimum of 20 full-time equivalent employees in aggregate has provided a new text end 121.1 new text begin written statement to the municipality indicating that the lack of available rental housing has new text end 121.2 new text begin impeded the ability of the business to recruit and hire employees; and new text end 121.3 new text begin (4) the municipality and the development authority intend to use increments from the new text end 121.4 new text begin district for the development of rental housing to serve employees of businesses located in new text end 121.5 new text begin the municipality or surrounding area. new text end 121.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 121.7 new text begin certification was made after June 30, 2017. new text end 121.8    Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read: 121.9    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment 121.10from an economic development district may not be used to provide improvements, loans, 121.11subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting 121.12of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities 121.13(determined on the basis of square footage) are used for a purpose other than: 121.14    (1) the manufacturing or production of tangible personal property, including processing 121.15resulting in the change in condition of the property; 121.16    (2) warehousing, storage, and distribution of tangible personal property, excluding retail 121.17sales; 121.18    (3) research and development related to the activities listed in clause (1) or (2); 121.19    (4) telemarketing if that activity is the exclusive use of the property; 121.20    (5) tourism facilities; or 121.21    (6) space necessary for and related to the activities listed in clauses (1) to (5) new text begin ; or new text end 121.22     new text begin (7) a workforce housing project that satisfies the requirements of paragraph (d) new text end . 121.23    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax 121.24increment from an economic development district may be used to provide improvements, 121.25loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 121.26square feet of any separately owned commercial facility located within the municipal 121.27jurisdiction of a small city, if the revenues derived from increments are spent only to assist 121.28the facility directly or for administrative expenses, the assistance is necessary to develop 121.29the facility, and all of the increments, except those for administrative expenses, are spent 121.30only for activities within the district. 122.1    (c) A city is a small city for purposes of this subdivision if the city was a small city in 122.2the year in which the request for certification was made and applies for the rest of the 122.3duration of the district, regardless of whether the city qualifies or ceases to qualify as a 122.4small city. 122.5 new text begin (d) A project qualifies as a workforce housing project under this subdivision if: new text end 122.6 new text begin (1) increments from the district are used exclusively to assist in the acquisition of new text end 122.7 new text begin property; construction of improvements; and provision of loans or subsidies, grants, interest new text end 122.8 new text begin rate subsidies, public infrastructure, and related financing costs for rental housing new text end 122.9 new text begin developments in the municipality; and new text end 122.10 new text begin (2) the governing body of the municipality made the findings for the project required new text end 122.11 new text begin by section 469.175, subdivision 3, paragraph (f). new text end 122.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 122.13 new text begin certification was made after June 30, 2017. new text end 122.14    Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision 122.15to read: 122.16     new text begin Subd. 5. new text end new text begin Income limits; Minnesota Housing Finance Agency challenge program. new text end 122.17 new text begin For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge new text end 122.18 new text begin program under section 462A.33, the income limits under section 462A.33 are substituted new text end 122.19 new text begin for the applicable income limits for the project under subdivision 2 or 3. new text end 122.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 122.21 new text begin certification was made after June 30, 2017. new text end 122.22    Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read: 122.23    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 122.24the meanings given. 122.25(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 122.26correction, removal of hazardous waste or pollution, installation of utilities, construction 122.27of public or private improvements, and other similar activities, but only to the extent that 122.28tax increment revenues may be spent for such purposes under other law. 122.29(c) "Third party" means an entity other than (1) the person receiving the benefit of 122.30assistance financed with tax increments, or (2) the municipality or the development authority 122.31or other person substantially under the control of the municipality. 123.1(d) "Revenues derived from tax increments paid by properties in the district" means only 123.2tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 123.3tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) new text begin to (5) new text end . 123.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 123.5    Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read: 123.6    Subd. 2. Expenditures outside district. (a) For each tax increment financing district, 123.7an amount equal to at least 75 percent of the total revenue derived from tax increments paid 123.8by properties in the district must be expended on activities in the district or to pay bonds, 123.9to the extent that the proceeds of the bonds were used to finance activities in the district or 123.10to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 123.11than redevelopment districts for which the request for certification was made after June 30, 123.121995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 123.13more than 25 percent of the total revenue derived from tax increments paid by properties 123.14in the district may be expended, through a development fund or otherwise, on activities 123.15outside of the district but within the defined geographic area of the project except to pay, 123.16or secure payment of, debt service on credit enhanced bonds. For districts, other than 123.17redevelopment districts for which the request for certification was made after June 30, 1995, 123.18the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue new text begin new text end 123.19 new text begin revenues new text end derived from tax increments for new text begin paid by properties in new text end the district that are expended 123.20on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 123.21calculating the percentages that must be expended within and without the district. 123.22    (b) In the case of a housing district, a housing project, as defined in section 469.174, 123.23subdivision 11 , is an activity in the district. 123.24    (c) All administrative expenses are for activities outside of the district, except that if the 123.25only expenses for activities outside of the district under this subdivision are for the purposes 123.26described in paragraph (d), administrative expenses will be considered as expenditures for 123.27activities in the district. 123.28    (d) The authority may elect, in the tax increment financing plan for the district, to increase 123.29by up to ten percentage points the permitted amount of expenditures for activities located 123.30outside the geographic area of the district under paragraph (a). As permitted by section 123.31469.176, subdivision 4k , the expenditures, including the permitted expenditures under 123.32paragraph (a), need not be made within the geographic area of the project. Expenditures 123.33that meet the requirements of this paragraph are legally permitted expenditures of the district, 124.1notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 124.2under this paragraph, the expenditures must: 124.3    (1) be used exclusively to assist housing that meets the requirement for a qualified 124.4low-income building, as that term is used in section 42 of the Internal Revenue Code; and 124.5    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 124.6Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 124.7Revenue Code; and 124.8    (3) be used to: 124.9    (i) acquire and prepare the site of the housing; 124.10    (ii) acquire, construct, or rehabilitate the housing; or 124.11    (iii) make public improvements directly related to the housing; or 124.12(4) be used to develop housing: 124.13(i) if the market value of the housing does not exceed the lesser of: 124.14(A) 150 percent of the average market value of single-family homes in that municipality; 124.15or 124.16(B) $200,000 for municipalities located in the metropolitan area, as defined in section 124.17473.121 , or $125,000 for all other municipalities; and 124.18(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 124.19of existing structures, site preparation, and pollution abatement on one or more parcels, if 124.20the parcel contains a residence containing one to four family dwelling units that has been 124.21vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 124.227 , but without regard to whether the residence is the owner's principal residence, and only 124.23after the redemption period has expired. 124.24(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 124.25Increments may continue to be expended under this authority after that date, if they are used 124.26to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 124.27December 31, 2016, is considered to be the last date of the five-year period after certification 124.28under that provision. 124.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 125.1    Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read: 125.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments new text begin paid by properties new text end 125.3 new text begin in the district new text end are considered to have been expended on an activity within the district under 125.4subdivision 2 only if one of the following occurs: 125.5(1) before or within five years after certification of the district, the revenues are actually 125.6paid to a third party with respect to the activity; 125.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and 125.8sold to a third party before or within five years after certification, the revenues are spent to 125.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 125.10expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 125.11temporary period within the meaning of the use of that term under section 148(c)(1) of the 125.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 125.13fund; 125.14(3) binding contracts with a third party are entered into for performance of the activity 125.15before or within five years after certification of the district and the revenues are spent under 125.16the contractual obligation; 125.17(4) costs with respect to the activity are paid before or within five years after certification 125.18of the district and the revenues are spent to reimburse a party for payment of the costs, 125.19including interest on unreimbursed costs; or 125.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 125.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 125.222, paragraph (e). 125.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 125.24original refunded bonds meet the requirements of paragraph (a), clause (2). 125.25(c) For a redevelopment district or a renewal and renovation district certified after June 125.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 125.27extended to ten years after certification of the district. For a redevelopment district certified 125.28after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 125.29(a) are extended to eight years after certification of the district. This extension is provided 125.30primarily to accommodate delays in development activities due to unanticipated economic 125.31circumstances. 125.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 126.1    Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read: 126.2    Subd. 7. Interfund loans. new text begin (a) new text end The authority or municipality may advance or loan money 126.3to finance expenditures under section 469.176, subdivision 4, from its general fund or any 126.4other fund under which it has legal authority to do so. 126.5     new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is new text end 126.6 new text begin earliest, new text end the loan or advance must be authorized, by resolution of the governing body or of 126.7the authority, whichever has jurisdiction over the fund from which the advance or loan is 126.8authorized, before money is transferred, advanced, or spent, whichever is earliest. 126.9     new text begin (c) new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power to 126.10make interfund loans under one or more tax increment financing plans or for one or more 126.11districts. new text begin The resolution may be adopted before or after the adoption of the tax increment new text end 126.12 new text begin financing plan or the creation of the tax increment financing district from which the advance new text end 126.13 new text begin or loan is to be repaid. new text end 126.14     new text begin (d) new text end The terms and conditions for repayment of the loan must be provided in writing and new text begin . new text end 126.15 new text begin The written terms and conditions may be in any form, but must new text end include, at a minimum, the 126.16principal amount, the interest rate, and maximum term. new text begin Written terms may be modified or new text end 126.17 new text begin amended in writing by the municipality or the authority before the latest decertification of new text end 126.18 new text begin any tax increment financing district from which the interfund loan is to be repaid. new text end The 126.19maximum rate of interest permitted to be charged is limited to the greater of the rates 126.20specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 126.21unless the written agreement states that the maximum interest rate will fluctuate as the 126.22interest rates specified under section 270C.40 or 549.09 are from time to time adjusted. new text begin new text end 126.23 new text begin Loans or advances may be structured as draw-down or line-of-credit obligations of the new text end 126.24 new text begin lending fund. new text end 126.25     new text begin (e) The authority shall report in the annual report submitted under section 469.175, new text end 126.26 new text begin subdivision 6: new text end 126.27     new text begin (1) the amount of any interfund loan or advance made in a calendar year; and new text end 126.28     new text begin (2) any amendment of an interfund loan or advance made in a calendar year. new text end 126.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 126.30 new text begin applies to all districts, regardless of when the request for certification was made. new text end 127.1    Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read: 127.2    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 127.3financing plan for a district, the rules under this section apply to a redevelopment district, 127.4renewal and renovation district, new text begin economic development district, new text end soil condition district, or 127.5a soil deficiency district established by the city or a development authority of the city in the 127.6project area. 127.7    (b) Prior to or upon the adoption of the first tax increment plan subject to the special 127.8rules under this subdivision, the city must find by resolution that parcels consisting of at 127.9least 80 percent of the acreage of the project area (excluding street and railroad right of 127.10way) are characterized by one or more of the following conditions: 127.11    (1) peat or other soils with geotechnical deficiencies that impair development of 127.12residential or commercial buildings or infrastructure; 127.13    (2) soils or terrain that requires substantial filling in order to permit the development of 127.14commercial or residential buildings or infrastructure; 127.15    (3) landfills, dumps, or similar deposits of municipal or private waste; 127.16    (4) quarries or similar resource extraction sites; 127.17    (5) floodway; and 127.18    (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 127.19subdivision 10 . 127.20    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 127.21characterized by the relevant condition if at least 70 percent of the area of the parcel contains 127.22the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 127.23be characterized by substandard buildings if the buildings occupy at least 30 percent of the 127.24area of the parcel. 127.25    (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 127.26extended to ten years for any district, and section 469.1763, subdivision 4, does not apply 127.27to any district. 127.28    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 127.29(a), not more than 80 percent of the total revenue derived from tax increments paid by 127.30properties in any district (measured over the life of the district) may be expended on activities 127.31outside the district but within the project area. 127.32    (f) For a soil deficiency district: 128.1    (1) increments may be collected through 20 years after the receipt by the authority of 128.2the first increment from the district; and 128.3    (2) except as otherwise provided in this subdivision, increments may be used only to: 128.4    (i) acquire parcels on which the improvements described in item (ii) will occur; 128.5    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 128.6cost of installing public improvements directly caused by the deficiencies; and 128.7    (iii) pay for the administrative expenses of the authority allocable to the district. 128.8    (g) Increments spent for any infrastructure costs, whether inside a district or outside a 128.9district but within the project area, are deemed to satisfy the requirements of paragraph (f) 128.10and Minnesota Statutes, section 469.176, subdivisions 4b new text begin , 4c, new text end and 4j. 128.11    (h) Increments from any district may not be used to pay the costs of landfill closure or 128.12public infrastructure located on the following parcels within the plat known as Burnsville 128.13Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. 128.14    (i) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is new text end 128.15 new text begin extended to nine years. new text end 128.16     new text begin (j) The city may specify in the tax increment financing plan for any district the first year new text end 128.17 new text begin in which it elects to receive increment, which may be up to eight years following approval new text end 128.18 new text begin of the district. new text end 128.19     new text begin (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph (c), new text end 128.20 new text begin the city may waive any increment received in 2017 and, if so, it shall not be used in new text end 128.21 new text begin determining the duration limit for any district created under this section. new text end 128.22     new text begin (l) new text end The authority to approve tax increment financing plans to establish tax increment 128.23financing districts under this section expires on December 31, 2018 new text begin March 20, 2023 new text end . 128.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 128.25 new text begin of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section new text end 128.26 new text begin 645.021. new text end 128.27    Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 128.28382, section 84, is amended to read: 128.29    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 128.30FINANCING DISTRICT; SPECIAL RULES. 129.1(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 129.2the governing body of the city of Duluth approves the plan for the tax increment financing 129.3district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 129.4010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 129.5010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140; new text end 010-2730-00160; 129.6010-2730-00180; 010-2730-00200; 010-2730-00300; new text begin 010-02730-00320; new text end 010-2746-01250; 129.7010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 129.8010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 129.9010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 129.10010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 129.11010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 129.12Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 129.13period from the date of certification of the tax increment financing district, must be 129.14considered to be met if the activities are undertaken within five years after the date all 129.15qualifying parcels are delisted from the Federal Superfund list. 129.16(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 129.17in the sixth year following certification of the district requirement, will begin in the sixth 129.18year following the date all qualifying parcels are delisted from the Federal Superfund list. 129.19(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 129.20satisfied if the action is commenced within four years after the date all qualifying parcels 129.21are delisted from the Federal Superfund list and evidence of the action required is submitted 129.22to the county auditor by February 1 of the fifth year following the year in which all qualifying 129.23parcels are delisted from the Federal Superfund list. 129.24(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 129.25listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 129.26USS new text begin St. Louis River-U.S. Steel Superfund new text end Site (USEPA OU 02) that are included in the 129.27tax increment financing district. 129.28(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 129.29subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels 129.30listed in paragraph (a) and shown as part of the USS new text begin St. Louis River-U.S. Steel Superfund new text end 129.31Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted 129.32status, and if delisted, the delisting date. 129.33 new text begin (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other new text end 129.34 new text begin law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan new text end 130.1 new text begin program before approval of the tax increment financing plan for or the establishment of the new text end 130.2 new text begin district authorized by this section. The authority may make loans under this program. The new text end 130.3 new text begin proceeds of the loans may be used for any permitted use of increments under this law or new text end 130.4 new text begin Minnesota Statutes, section 469.176, for the district and may be repaid with increments new text end 130.5 new text begin from the district established under this section. This paragraph applies to any action new text end 130.6 new text begin authorized by the Seaway Port Authority of Duluth on or after March 25, 2010. new text end 130.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 130.8 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 130.9 new text begin subdivision 3. new text end 130.10    Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read: 130.11    Subdivision 1. Authority to create districts. (a) The governing body of the city of 130.12Edina or its development authority may establish one or more tax increment financing 130.13housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 130.14exist on March 31, 2014. 130.15(b) The authority to request certification of districts under this section expires on June 130.1630, 2017 new text begin 2020 new text end . 130.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective on the day following final enactment new text end 130.18 new text begin without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph new text end 130.19 new text begin (a). new text end 130.20    Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read: 130.21    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT. 130.22    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 130.23the meanings given them. 130.24(b) "City" means the city of Maple Grove. 130.25(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point 130.26130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 130.2723, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 130.28line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 130.29Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 130.30thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 130.31Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 130.32East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 131.1of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 131.2North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 131.3of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 131.4line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 131.5degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 131.624; thence West along said south line to the east right-of-way line of Zachary Lane; thence 131.7North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 131.8Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 131.9Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 131.10South along the east line of said Outlot A and its southerly extension to the south right-of-way 131.11line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 131.12line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 131.13Section 24; thence South along said east line to the north line of the South Half of the 131.14Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 131.15line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 131.16Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 131.17right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 131.18A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 131.19Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 131.20line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 131.21line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 131.22Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 131.23westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 131.24Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 131.25line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 131.26Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 131.27westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 131.28and there terminating, provided that the project area includes the rights-of-way for all present 131.29and future highway interchanges abutting the area described in this paragraph new text begin , and may new text end 131.30 new text begin include any additional property necessary to cause the property included in the tax increment new text end 131.31 new text begin financing district to consist of complete parcels new text end . 131.32(d) "Soil deficiency district" means a type of tax increment financing district consisting 131.33of a portion of the project area in which the city finds by resolution that the following 131.34conditions exist: 132.1(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 132.2the district require substantial filling, grading, or other physical preparation for use; and 132.3(2) the estimated cost of the physical preparation under clause (1), but excluding costs 132.4directly related to roads as defined in Minnesota Statutes, section 160.01, and local 132.5improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 132.6(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 132.7completion of the preparation. 132.8    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 132.9financing plan for a district, the rules under this section apply to a redevelopment district, 132.10renewal and renovation district, soil condition district, or soil deficiency district established 132.11by the city or a development authority of the city in the project area. 132.12(b) Prior to or upon the adoption of the first tax increment plan subject to the special 132.13rules under this subdivision, the city must find by resolution that parcels consisting of at 132.14least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 132.15are characterized by one or more of the following conditions: 132.16(1) peat or other soils with geotechnical deficiencies that impair development of 132.17commercial buildings or infrastructure; 132.18(2) soils or terrain that require substantial filling in order to permit the development of 132.19commercial buildings or infrastructure; 132.20(3) landfills, dumps, or similar deposits of municipal or private waste; 132.21(4) quarries or similar resource extraction sites; 132.22(5) floodway; and 132.23(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 132.24subdivision 10 . 132.25(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 132.26relevant condition if at least 70 percent of the area of the parcel contains the relevant 132.27condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 132.28substandard buildings if substandard buildings occupy at least 30 percent of the area of the 132.29parcel. 132.30(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 132.31extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 132.324 , does not apply to any district. 133.1(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 133.2subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax 133.3increments paid by properties in any district, measured over the life of the district, may be 133.4expended on activities outside the district but within the project area. 133.5(f) For a soil deficiency district: 133.6(1) increments may be collected through 20 years after the receipt by the authority of 133.7the first increment from the district; 133.8(2) increments may be used only to: 133.9(i) acquire parcels on which the improvements described in item (ii) will occur; 133.10(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 133.11cost of installing public improvements directly caused by the deficiencies; and 133.12(iii) pay for the administrative expenses of the authority allocable to the district; and 133.13(3) any parcel acquired with increments from the district must be sold at no less than 133.14their fair market value. 133.15(g) Increments spent for any infrastructure costs, whether inside a district or outside a 133.16district but within the project area, are deemed to satisfy the requirements of Minnesota 133.17Statutes, section 469.176, subdivision 4j. 133.18(h) The authority to approve tax increment financing plans to establish tax increment 133.19financing districts under this section expires June 30, 2020. 133.20 new text begin (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use new text end 133.21 new text begin increments from a soil deficiency district to acquire parcels and for other infrastructure costs new text end 133.22 new text begin either inside or outside of the district, but within the project area, if the acquisition or new text end 133.23 new text begin infrastructure is for a qualified development. For purposes of this paragraph, a development new text end 133.24 new text begin is a qualified development only if all of the following requirements are satisfied: new text end 133.25 new text begin (1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken new text end 133.26 new text begin primarily to serve the development; new text end 133.27 new text begin (2) the city has a binding, written commitment and adequate financial assurances from new text end 133.28 new text begin the developer that the development will be constructed; and new text end 133.29 new text begin (3) the development does not consist of retail trade or housing improvements. new text end 134.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 134.2 new text begin of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes, new text end 134.3 new text begin section 645.021. new text end 134.4    Sec. 13. new text begin CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT. new text end 134.5 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the new text end 134.6 new text begin city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed new text end 134.7 new text begin to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and new text end 134.8 new text begin the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if new text end 134.9 new text begin the district were certified on that date. new text end 134.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 134.11 new text begin of the city of Anoka and upon compliance by the city with Minnesota Statutes, section new text end 134.12 new text begin 645.021, subdivisions 2 and 3. new text end 134.13    Sec. 14. new text begin CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK. new text end 134.14 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, new text end 134.15 new text begin or any other law to the contrary, the city of Coon Rapids may collect tax increment from new text end 134.16 new text begin District 6-1 Port Riverwalk through December 31, 2038. new text end 134.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing bodies new text end 134.18 new text begin of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with new text end 134.19 new text begin the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end 134.20 new text begin subdivision 3. new text end 134.21    Sec. 15. new text begin CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH. new text end 134.22 new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities new text end 134.23 new text begin must be undertaken within a five-year period from the date of certification of a tax increment new text end 134.24 new text begin financing district, is considered to be met for Tax Increment Financing District No. 1-12 new text end 134.25 new text begin (Gateway North), administered by the Cottage Grove Economic Development Authority, new text end 134.26 new text begin if the activities are undertaken prior to January 1, 2017. new text end 134.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the chief clerical new text end 134.28 new text begin officer of the governing body of the city of Cottage Grove with the requirements of Minnesota new text end 134.29 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 135.1    Sec. 16. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW. new text end 135.2 new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, new text end 135.3 new text begin the chief clerical officer of the city of Edina may file with the secretary of state certificate new text end 135.4 new text begin of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017, and, if new text end 135.5 new text begin the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, new text end 135.6 new text begin subdivision 3, are otherwise complied with, the special law is deemed approved, and all new text end 135.7 new text begin actions taken by the city before the effective date of this section in reliance on Laws 2014, new text end 135.8 new text begin chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article new text end 135.9 new text begin 6, section 8, and this act. new text end 135.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 135.11 new text begin local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6, new text end 135.12 new text begin section 8. new text end 135.13    Sec. 17. new text begin CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH. new text end 135.14 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the new text end 135.15 new text begin city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment new text end 135.16 new text begin Financing District is deemed to be certified on June 29, 2012, rather than its actual new text end 135.17 new text begin certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions new text end 135.18 new text begin 3 and 4, apply as if the district were certified on that date. new text end 135.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 135.20 new text begin of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section new text end 135.21 new text begin 645.021, subdivisions 2 and 3. new text end 135.22    Sec. 18. new text begin CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF new text end 135.23 new text begin DISTRICT. new text end 135.24 new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law new text end 135.25 new text begin to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and new text end 135.26 new text begin for the city of Richfield may elect to extend the duration limit of the redevelopment tax new text end 135.27 new text begin increment financing district known as the Cedar Avenue Tax Increment Financing District new text end 135.28 new text begin established by Laws 2005, chapter 152, article 2, section 25, by ten years. new text end 135.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the city of Richfield, new text end 135.30 new text begin Hennepin County, and Independent School District No. 280 with the requirements of new text end 135.31 new text begin Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3. new text end 136.1    Sec. 19. new text begin CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT. new text end 136.2 new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities new text end 136.3 new text begin must be undertaken within a five-year period from the date of certification of a tax increment new text end 136.4 new text begin financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing new text end 136.5 new text begin District established by the city of Richfield and the housing and redevelopment authority new text end 136.6 new text begin in and for the city of Richfield if the activities are undertaken within eight years from the new text end 136.7 new text begin date of certification. new text end 136.8 new text begin EFFECTIVE DATE. new text end new text begin This act is effective upon the city of Richfield's compliance with new text end 136.9 new text begin the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 136.10    Sec. 20. new text begin CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT. new text end 136.11 new text begin Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176, new text end 136.12 new text begin the city of Rochester may spend the proceeds from the sale or lease of any property purchased new text end 136.13 new text begin with tax increments derived from tax increment financing district number 36 (Bioscience new text end 136.14 new text begin Project) for the costs of operating, maintaining, and improving properties acquired with tax new text end 136.15 new text begin increments from district number 36, including funding and maintaining reserves for capital new text end 136.16 new text begin or operating expenses. Following the close of the third calendar year after decertification new text end 136.17 new text begin of that district, any remaining amounts of the proceeds are not subject to restrictions that new text end 136.18 new text begin apply to tax increments under Minnesota Statutes, sections 469.174 to 469.1794. new text end 136.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 136.20 new text begin local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a). new text end 136.21    Sec. 21. new text begin CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT new text end 136.22 new text begin INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT. new text end 136.23 new text begin Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing body new text end 136.24 new text begin of the South St. Paul Economic Development Authority, successor to the Housing and new text end 136.25 new text begin Redevelopment Authority in and for the city of South St. Paul, may retroactively approve new text end 136.26 new text begin a previously established interfund loan for the 4th Avenue Village Tax Increment District new text end 136.27 new text begin in the city of South St. Paul if the governing body adopts a resolution approving that loan new text end 136.28 new text begin by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178, new text end 136.29 new text begin subdivision 7, are otherwise complied with, the interfund loan authorization is deemed to new text end 136.30 new text begin satisfy Minnesota Statutes, section 469.178, subdivision 7. new text end 136.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective without local approval under Minnesota new text end 136.32 new text begin Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final enactment. new text end 137.1    Sec. 22. new text begin CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT. new text end 137.2 new text begin For purposes of the Elmwood Village Tax Increment Financing District in the city of new text end 137.3 new text begin St. Louis Park, including during the duration extension authorized by Laws 2009, chapter new text end 137.4 new text begin 88, article 5, section 19, the period under Minnesota Statutes, section 469.1763, subdivision new text end 137.5 new text begin 3, is extended through December 31, 2019, and calendar year 2020 is the first year to which new text end 137.6 new text begin Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted new text end 137.7 new text begin percentage of increments that may be expended under Minnesota Statutes, section 469.1763, new text end 137.8 new text begin subdivision 2, on activities outside of the district is increased to 45 percent for the district. new text end 137.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing body new text end 137.10 new text begin of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021, new text end 137.11 new text begin subdivision 3. new text end 137.12    Sec. 23. new text begin CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT. new text end 137.13 new text begin (a) For purposes of computing the duration limits under Minnesota Statutes, section new text end 137.14 new text begin 469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul new text end 137.15 new text begin may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing new text end 137.16 new text begin District. This authority is limited to the first four years of increment or increments derived new text end 137.17 new text begin from taxes payable in 2023, whichever occurs first. new text end 137.18 new text begin (b) If the city elects to waive receipt of increment under paragraph (a), for purposes of new text end 137.19 new text begin applying any limits based on when the district was certified under Minnesota Statutes, new text end 137.20 new text begin section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed new text end 137.21 new text begin to be January 2 of the property tax assessment year for which increment is first received new text end 137.22 new text begin under the waiver. new text end 137.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, without local approval new text end 137.24 new text begin under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 137.25    Sec. 24. new text begin WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT new text end 137.26 new text begin TIF DISTRICT; SPECIAL RULES. new text end 137.27 new text begin (a) If Washington County elects, upon the adoption of a tax increment financing plan new text end 137.28 new text begin for a district, the rules under this section apply to one or more tax increment financing new text end 137.29 new text begin districts established by the county or the community development agency of the county. new text end 137.30 new text begin The area within which the tax increment districts may be created is located in the city of new text end 137.31 new text begin Newport and is south of marked Interstate Highway 494, north of 15th Street extended to new text end 137.32 new text begin the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway new text end 138.1 new text begin 61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing new text end 138.2 new text begin Project Area" or "project area." new text end 138.3 new text begin (b) The requirements for qualifying a redevelopment district under Minnesota Statutes, new text end 138.4 new text begin section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification new text end 138.5 new text begin numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, new text end 138.6 new text begin 2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, new text end 138.7 new text begin 260282244024, and 2602822440023, which are deemed substandard for the purpose of new text end 138.8 new text begin qualifying the district as a redevelopment district. new text end 138.9 new text begin (c) Increments spent outside a district shall only be spent within the project area and on new text end 138.10 new text begin costs described in Minnesota Statutes, section 469.176, subdivision 4j. new text end 138.11 new text begin (d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763, new text end 138.12 new text begin subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax new text end 138.13 new text begin increments paid by properties in any district, measured over the life of the district, may be new text end 138.14 new text begin expended on activities outside the district but within the project area. The five-year rule new text end 138.15 new text begin under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine new text end 138.16 new text begin years. new text end 138.17 new text begin (e) The authority to approve a tax increment financing plan and to establish a tax new text end 138.18 new text begin increment financing district under this section expires December 31, 2027. new text end 138.19 new text begin (f) The use of revenues for decertification in Minnesota Statutes, section 469.1763, new text end 138.20 new text begin subdivision 4, does not apply to the project area. new text end 138.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective and shall retroactively include the new text end 138.22 new text begin redevelopment district in the project area approved by Washington County on November new text end 138.23 new text begin 8, 2016, upon approval by the governing body of the city of Newport and Washington new text end 138.24 new text begin County and upon compliance by the county with Minnesota Statutes, section 645.021, new text end 138.25 new text begin subdivision 3. new text end 138.26    Sec. 25. new text begin CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN. new text end 138.27 new text begin (a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that new text end 138.28 new text begin activities must be undertaken within a five-year period from the date of certification of a new text end 138.29 new text begin tax increment financing district, are considered to be met for Tax Increment Financing new text end 138.30 new text begin District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from new text end 138.31 new text begin the district are expended for any project contemplated by the original tax increment financing new text end 138.32 new text begin plan for the district, including, without limitation, a municipal parking ramp within the new text end 138.33 new text begin district. new text end 139.1 new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not new text end 139.2 new text begin apply to the district if the revenues derived from tax increment from the district are expended new text end 139.3 new text begin for any project contemplated by the original tax increment financing plan for the district, new text end 139.4 new text begin including, without limitation, a municipal parking ramp within the district. new text end 139.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the chief clerical new text end 139.6 new text begin officer of the governing body of the city of Wayzata with the requirements of Minnesota new text end 139.7 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 139.8ARTICLE 6 139.9LOCAL OPTION SALES AND USE TAXES 139.10    Section 1. new text begin [471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX. new text end 139.11 new text begin Notwithstanding any other provision of law, no political subdivision may impose or new text end 139.12 new text begin require the imposition of any fee or tax, other than a local sales tax subject to section new text end 139.13 new text begin 297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item or good new text end 139.14 new text begin purchased from a merchant, itinerant vendor, or peddler. new text end 139.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective May 31, 2017. Ordinances existing on new text end 139.16 new text begin the effective date of this section that would be prohibited under this section are invalid as new text end 139.17 new text begin of the effective date of this section. new text end 139.18    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 139.19chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 139.20First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 139.21section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read: 139.22    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 139.23ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 139.24impose an additional sales tax of up to one and three-quarter percent on sales transactions 139.25which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 139.26The imposition of this tax shall not be subject to voter referendum under either state law or 139.27city charter provisions. When the city council determines that the taxes imposed under this 139.28paragraph at a rate of three-quarters of one percent and other sources of revenue produce 139.29revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 139.30issuance and discount costs, issued for capital improvements at the Duluth Entertainment 139.31and Convention Center, which include a new arena, the rate of tax under this subdivision 139.32must be reduced by three-quarters of one percent. 140.1(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 140.2477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 140.3Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 140.4on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 140.5subdivision 3, clause (c). This tax expires when the city council determines that the tax 140.6imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 140.7has produced revenues sufficient to pay the debt service on bonds in a principal amount of 140.8no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 140.9to public facilities to support tourism and recreational activities in that portion of the city 140.10west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline Parkway new text end . 140.11(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 140.12under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 140.13issuance and any premiums. The proceeds may be used to finance capital improvements to 140.14public facilities that support tourism and recreational activities in the portion of the city 140.15west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline Parkway new text end , as 140.16described in paragraph (b). The issuance of the bonds is subject to the provisions of 140.17Minnesota Statutes, chapter 475, except no election shall be required unless required by the 140.18city charter. The bonds shall not be included in computing net debt. The revenues from the 140.19taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 140.20(b), may be pledged to pay principal of and interest on such bonds. 140.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 140.22 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 140.23 new text begin subdivisions 2 and 3. new text end 140.24    Sec. 3. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 140.258, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 140.262014, chapter 308, article 3, section 22, is amended to read: 140.27    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS. 140.28    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 140.29or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 140.30additional tax of one percent upon the gross receipts from the sale of lodging for periods of 140.31less than 30 days in hotels and motels located in the city. The tax shall be collected in the 140.32same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 140.33The imposition of this tax shall not be subject to voter referendum under either state law or 140.34city charter provisions. 141.1(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 141.2477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of 141.3Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 141.4on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 141.5motels located in the city. This tax expires when the city council first determines that the 141.6tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 141.7(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 141.8of no more than $18,000,000, plus issuance and discount costs, to finance capital 141.9improvements to public facilities to support tourism and recreational activities in that portion 141.10of the city west of 34th new text begin 14th new text end Avenue West new text begin and the area south of and including Skyline new text end 141.11 new text begin Parkway new text end . 141.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 141.13 new text begin city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 141.14 new text begin subdivisions 2 and 3. new text end 141.15    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 141.161998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 141.17Laws 2009, chapter 88, article 4, section 14, is amended to read: 141.18    Subd. 3. Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by subdivisions 141.191 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 141.20portion of the expenses of constructing and improving facilities as part of an urban 141.21revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 141.22include, but are not limited to, acquiring property and paying relocation expenses related 141.23to the development of Riverfront 2000 and related facilities, and securing or paying debt 141.24service on bonds or other obligations issued to finance the construction of Riverfront 2000 141.25and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 141.26means a civic-convention center, an arena, a riverfront park, a technology center and related 141.27educational facilities, and all publicly owned real or personal property that the governing 141.28body of the city determines will be necessary to facilitate the use of these facilities, including 141.29but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 141.30includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 141.31Center, for use by Minnesota State University, Mankato. 141.32     new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved new text end 141.33 new text begin by voters at the November 8, 2016, general election, the city may by ordinance also use new text end 141.34 new text begin revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, new text end 142.1 new text begin plus associated bond costs, to pay all or a portion of the expenses of the following capital new text end 142.2 new text begin projects: new text end 142.3     new text begin (1) construction and improvements to regional recreational facilities including existing new text end 142.4 new text begin hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal new text end 142.5 new text begin swimming pool including improvements to make the pool compliant with the Americans new text end 142.6 new text begin with Disabilities Act, and indoor regional athletic facilities; new text end new text begin new text end 142.7     new text begin (2) improvements to flood control and the levee system; new text end 142.8 new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties; new text end new text begin new text end 142.9 new text begin (4) expansion of the regional transit building and related multimodal transit new text end 142.10 new text begin improvements; new text end 142.11 new text begin (5) regional public safety and emergency communications improvements and equipment; new text end 142.12 new text begin and new text end 142.13 new text begin (6) matching funds for improvements to publicly owned regional facilities including a new text end 142.14 new text begin historic museum, supportive housing, and a senior center. new text end 142.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 142.16 new text begin city of Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 142.17 new text begin 645.021, subdivisions 2 and 3. new text end 142.18    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 142.192005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 142.20article 7, section 10, is amended to read: 142.21    Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 142.22granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 142.23expire on new text begin at the earlier of when revenues are sufficient to pay off the bonds, including new text end 142.24 new text begin interest and all other associated bond costs authorized under subdivision 5, or new text end December 142.2531, 2022 new text begin 2038 new text end . 142.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 142.27 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 142.28    Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read: 142.29    Subd. 5. Bonds. new text begin (a) new text end The city of Mankato may issue general obligation bonds of the city 142.30in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 142.31election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 143.1a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 143.2facilities shall not be included in computing any debt limitations applicable to the city of 143.3Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 143.4on the bonds shall not be subject to any levy limitation or be included in computing or 143.5applying any levy limitation applicable to the city. 143.6     new text begin (b) The city of Mankato may issue general obligation bonds of the city in an amount not new text end 143.7 new text begin to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without new text end 143.8 new text begin election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or new text end 143.9 new text begin a tax to pay them. The debt represented by bonds under this paragraph shall not be included new text end 143.10 new text begin in computing any debt limitations applicable to the city of Mankato, and the levy of taxes new text end 143.11 new text begin required by Minnesota Statutes, section new text end new text begin 475.61, new text end new text begin to pay principal of and interest on the bonds, new text end 143.12 new text begin and shall not be subject to any levy limitation or be included in computing or applying any new text end 143.13 new text begin levy limitation applicable to the city. The city may use tax revenue in excess of one year's new text end 143.14 new text begin principal interest reserve for intended annual bond payments to pay all or a portion of the new text end 143.15 new text begin cost of capital improvements authorized in subdivision 3. new text end 143.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 143.17 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 143.18    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 143.192006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 143.20article 4, section 4, is amended to read: 143.21    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 143.22477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 143.23Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 143.24sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 143.25the city. The proceeds of the tax imposed under this section must be used to meet the costs 143.26of: 143.27    (1) extending a sewer interceptor line; 143.28    (2) construction of a booster pump station, reservoirs, and related improvements to the 143.29water system; and 143.30    (3) construction of a building containing a police and fire station and an administrative 143.31services facility. 144.1(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 144.2it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 144.3is approved by the voters at a general election held before December 31, 2012. 144.4 new text begin (c) As approved by the voters at the November 8, 2016, general election, the proceeds new text end 144.5 new text begin under this section may also be used to meet the costs of debt service payments for new text end 144.6 new text begin construction of the Hermantown Wellness Center. new text end 144.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 144.8 new text begin city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section new text end 144.9 new text begin 645.021, subdivisions 2 and 3. new text end 144.10    Sec. 8. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 144.112006, chapter 259, article 3, section 4, is amended to read: 144.12    Subd. 4. Termination. The tax authorized under this section terminates on March 31, 144.132026 new text begin at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council new text end 144.14 new text begin first determines that sufficient funds have been received from the tax to fund the costs, new text end 144.15 new text begin including bonds and associated bond costs for the uses specified in subdivision 1 new text end . Any funds 144.16remaining after completion of the improvements and retirement or redemption of the bonds 144.17may be placed in the general fund of the city. 144.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 144.19 new text begin local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1. new text end 144.20    Sec. 9. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read: 144.21    Subd. 3. Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by subdivisions 144.221 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 144.23construction and improvement of a civic and community center and recreational facilities 144.24to serve all ages, including seniors and youth. Authorized expenses include, but are not 144.25limited to, acquiring property, paying construction and operating expenses related to the 144.26development of an authorized facility, funding facilities replacement reserves, and paying 144.27debt service on bonds or other obligations issued to finance the construction or expansion 144.28of an authorized facility. The capital expenses for all projects authorized under this 144.29subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount 144.30equal to the costs related to issuance of the bonds and funding facilities replacement reserves. 144.31     new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved new text end 144.32 new text begin by the voters at the November 8, 2016, general election, the city of New Ulm may by new text end 145.1 new text begin ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a new text end 145.2 new text begin maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses new text end 145.3 new text begin of the following capital projects: new text end 145.4     new text begin (1) constructing an indoor water park and making safety improvements to the existing new text end 145.5 new text begin recreational center pool; new text end 145.6     new text begin (2) constructing an indoor playground, a wellness center, and a gymnastics facility; new text end 145.7     new text begin (3) constructing a winter multipurpose dome; new text end 145.8     new text begin (4) making improvements to Johnson Park Grandstand; and new text end 145.9     new text begin (5) making improvements to the entrance road and parking at Hermann Heights Park. new text end 145.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 145.11 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 145.12 new text begin 645.021, subdivisions 2 and 3. new text end 145.13    Sec. 10. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision 145.14to read: 145.15     new text begin Subd. 4a. new text end new text begin Bonding authority; additional use and extension of tax. new text end new text begin As approved by new text end 145.16 new text begin the voters at the November 8, 2016, general election, and in addition to the bonds issued new text end 145.17 new text begin under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in new text end 145.18 new text begin an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b). new text end 145.19 new text begin The debt represented by bonds under this subdivision shall not be included in computing new text end 145.20 new text begin any debt limitations applicable to the city of New Ulm, and the levy of taxes required by new text end 145.21 new text begin Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall new text end 145.22 new text begin not be subject to any levy limitation or be included in computing or applying any levy new text end 145.23 new text begin limitation applicable to the city. new text end 145.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 145.25 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 145.26 new text begin 645.021, subdivisions 2 and 3. new text end 145.27    Sec. 11. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read: 145.28    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 145.29when the city council determines that sufficient funds have been received from the taxes to 145.30finance the capital and administrative costs for the acquisition, construction, and improvement 145.31of facilities described in subdivision 3 new text begin , including the additional use of revenues under new text end 146.1 new text begin subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general new text end 146.2 new text begin election new text end , and to prepay or retire at maturity the principal, interest, and premium due on any 146.3bonds issued for the facilities under subdivision 4 new text begin subdivisions 4 and 4a new text end . Any funds remaining 146.4after completion of the project and retirement or redemption of the bonds may be placed in 146.5the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at 146.6an earlier time if the city so determines by ordinance. 146.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 146.8 new text begin city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section new text end 146.9 new text begin 645.021, subdivisions 2 and 3. new text end 146.10    Sec. 12. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 146.112008, chapter 366, article 7, section 12, is amended to read: 146.12    Subdivision 1. Sales and use tax. new text begin (a) new text end Notwithstanding Minnesota Statutes, section 146.13477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city 146.14voters at the first municipal general election held after the date of final enactment of this 146.15act or at a special election held November 2, 1999, the city of Proctor may impose by 146.16ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 146.17subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 146.18administration, collection, and enforcement of the tax authorized under this subdivision. 146.19 new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of new text end 146.20 new text begin law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional new text end 146.21 new text begin sales and use tax of up to one-half of one percent if approved by the voters at the first general new text end 146.22 new text begin election held after the date of final enactment of this act. The revenues received from the new text end 146.23 new text begin additional tax must be used for the purposes specified in subdivision 3, paragraph (b). new text end 146.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 146.25 new text begin city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 146.26 new text begin subdivisions 2 and 3. new text end 146.27    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2, 146.28as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read: 146.29    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be 146.30used to pay for lake new text begin water quality new text end improvement projects as detailed in the Shell Rock River 146.31watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding 146.32any provision of statute, other law, or city charter to the contrary, the city shall transfer all 146.33revenues from the tax imposed under subdivision 1, as soon as they are received, to the 147.1Shell Rock River Watershed District. The city is not required to review the intended uses 147.2of the revenues by the watershed district, nor is the watershed district required to submit to 147.3the city proposed budgets, statements, or invoices explaining the intended uses of the 147.4revenues as a prerequisite for the transfer of the revenues. new text begin The Shell Rock River Watershed new text end 147.5 new text begin District shall appear before the city of Albert Lea City Council on a biannual basis to present new text end 147.6 new text begin a report of its activities, expenditures, and intended uses of the city sales tax revenue. new text end 147.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 147.8 new text begin city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section new text end 147.9 new text begin 645.021, subdivisions 2 and 3. new text end 147.10    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, 147.11as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read: 147.12    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier 147.13of (1) 15 new text begin 30 new text end years after the taxes are first imposed, or (2) when the city council first 147.14determines that the amount of revenues raised to pay for the projects under subdivision 2, 147.15shall meet or exceed the sum of $15,000,000 new text begin $30,000,000 new text end . Any funds remaining after 147.16completion of the projects may be placed in the general fund of the city. 147.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 147.18 new text begin city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section new text end 147.19 new text begin 645.021, subdivisions 2 and 3. new text end 147.20    Sec. 15. Laws 2008, chapter 366, article 7, section 20, is amended to read: 147.21    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED. 147.22    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 147.23section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 147.24approval of the voters on November 7, 2006, the city of North Mankato may impose by 147.25ordinance a sales and use tax of one-half of one percent for the purposes specified in 147.26subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 147.27administration, collection, and enforcement of the taxes authorized under this subdivision. 147.28    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 147.29must be used to pay all or part of the capital costs of the following projects: 147.30    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 147.31project; 148.1    (2) development of regional parks and hiking and biking trails new text begin , including construction new text end 148.2 new text begin of indoor regional athletic facilities new text end ; 148.3    (3) expansion of the North Mankato Taylor Library; 148.4    (4) riverfront redevelopment; and 148.5    (5) lake improvement projects. 148.6    The total amount of revenues from the tax in subdivision 1 that may be used to fund 148.7these projects is $6,000,000 new text begin $15,000,000 new text end plus any associated bond costs. 148.8     new text begin Subd. 2a. new text end new text begin Authorization to extend the tax. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 148.9 new text begin 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax new text end 148.10 new text begin authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated new text end 148.11 new text begin bond costs, to fund the projects in subdivision 2 as approved by the voters at the November new text end 148.12 new text begin 8, 2016, general election. new text end 148.13    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 148.14at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 148.15may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 148.16expenses for the projects described in subdivision 2, in an amount that does not exceed 148.17$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 148.18475.58 , is not required. 148.19 new text begin (b) The city of North Mankato, pursuant to approval of the voters at the November 8, new text end 148.20 new text begin 2016, referendum extending the tax fee to provide additional revenue to be spent for the new text end 148.21 new text begin projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter new text end 148.22 new text begin 475, to pay capital and administrative expenses for those projects in an amount that does new text end 148.23 new text begin not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes, new text end 148.24 new text begin section new text end new text begin , is not required. new text end 148.25    (b) new text begin (c) new text end The debt represented by the bonds is not included in computing any debt limitation 148.26applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 148.27pay principal and interest on the bonds is not subject to any levy limitation. 148.28    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the 148.29city council determines that the amount of revenues received from the taxes to pay for the 148.30projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 148.31needed to pay the costs related to issuance of bonds under subdivision 3, including interest 148.32on the bonds new text begin at the earlier of December 31, 2038, or when revenues from the taxes first new text end 148.33 new text begin equal or exceed $15,000,000 plus the additional amount needed to pay costs related to new text end 149.1 new text begin issuance of bonds under subdivision 3, including interest new text end . Any funds remaining after 149.2completion of the projects and retirement or redemption of the bonds shall be placed in a 149.3capital facilities and equipment replacement fund of the city. The tax imposed under 149.4subdivision 1 may expire at an earlier time if the city so determines by ordinance. 149.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 149.6 new text begin city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section new text end 149.7 new text begin 645.021, subdivisions 2 and 3. new text end 149.8    Sec. 16. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED. new text end 149.9     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 149.10 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 149.11 new text begin charter, and as approved by the voters at a special election on March 7, 2016, the city of new text end 149.12 new text begin East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for new text end 149.13 new text begin the purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 149.14 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 149.15 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 149.16     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 149.17 new text begin under subdivision 1 must be used by the city of East Grand Forks to pay the costs of new text end 149.18 new text begin collecting and administering the tax and to finance the capital and administrative costs of new text end 149.19 new text begin improvement to the city public swimming pool. Authorized expenses include, but are not new text end 149.20 new text begin limited to, paying construction expenses related to the renovation and the development of new text end 149.21 new text begin these facilities and improvements, and securing and paying debt service on bonds issued new text end 149.22 new text begin under subdivision 3 or other obligations issued to finance improvement of the public new text end 149.23 new text begin swimming pool in the city of East Grand Forks new text end 149.24     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of East Grand Forks may issue bonds under new text end 149.25 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities new text end 149.26 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 149.27 new text begin subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of new text end 149.28 new text begin the costs of issuing the bonds. The bonds may be paid from or secured by any funds available new text end 149.29 new text begin to the city of East Grand Forks, including the tax authorized under subdivision 1. The new text end 149.30 new text begin issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 new text end 149.31 new text begin and 275.61. new text end 149.32 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 149.33 new text begin of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to new text end 150.1 new text begin pay principal and interest on the bonds is not subject to any levy limitation. A separate new text end 150.2 new text begin election to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 150.3     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the later new text end 150.4 new text begin of: (1) five years after the tax is first imposed; or (2) when the city council determines that new text end 150.5 new text begin $2,820,000 has been received from the tax to pay for the cost of the projects authorized new text end 150.6 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the new text end 150.7 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 150.8 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 150.9 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 150.10 new text begin time if the city so determines by ordinance. new text end 150.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 150.12 new text begin city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes, new text end 150.13 new text begin section 645.021, subdivisions 2 and 3. new text end 150.14    Sec. 17. new text begin CITY OF FAIRMONT; LOCAL TAX AUTHORIZED. new text end 150.15     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 150.16 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 150.17 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 150.18 new text begin of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for new text end 150.19 new text begin the purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 150.20 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 150.21 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 150.22     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 150.23 new text begin under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and new text end 150.24 new text begin administering the tax and to finance the capital and administrative costs of constructing and new text end 150.25 new text begin funding recreational amenities, trails, and a community center. The total that may be raised new text end 150.26 new text begin from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the new text end 150.27 new text begin issuance and paying debt service on bonds for these projects. new text end 150.28     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Fairmont may issue bonds under Minnesota new text end 150.29 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in new text end 150.30 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 150.31 new text begin not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing new text end 150.32 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 150.33 new text begin Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under new text end 150.34 new text begin this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 151.1 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 151.2 new text begin of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 151.3 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 151.4 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 151.5     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 151.6 new text begin earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines new text end 151.7 new text begin that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds new text end 151.8 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 151.9 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 151.10 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 151.11 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 151.12 new text begin time if the city so determines by ordinance. new text end 151.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 151.14 new text begin city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section new text end 151.15 new text begin 645.021, subdivisions 2 and 3. new text end 151.16    Sec. 18. new text begin CITY OF FERGUS FALLS; TAXES AUTHORIZED. new text end 151.17     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 151.18 new text begin section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city new text end 151.19 new text begin charter, and as approved by the voters at the November 8, 2016, general election, the city new text end 151.20 new text begin of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one new text end 151.21 new text begin percent for the purposes specified in subdivision 2. Except as otherwise provided in this new text end 151.22 new text begin section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, new text end 151.23 new text begin administration, collection, and enforcement of the tax authorized under this subdivision. new text end 151.24     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues from the tax authorized under new text end 151.25 new text begin subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and new text end 151.26 new text begin administering the tax and securing and paying debt service on bonds issued to finance all new text end 151.27 new text begin or part of the costs of the expansion and betterment of the Fergus Falls Public Library located new text end 151.28 new text begin at 205 East Hampden Avenue in the city of Fergus Falls. new text end 151.29     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of Fergus Falls may issue bonds under new text end 151.30 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project new text end 151.31 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 151.32 new text begin subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of new text end 151.33 new text begin issuing the bonds. The bonds may be paid from or secured by any funds available to the new text end 152.1 new text begin city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds new text end 152.2 new text begin under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61. new text end 152.3 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city, new text end 152.4 new text begin and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and new text end 152.5 new text begin interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 152.6 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 152.7     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 152.8 new text begin earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines new text end 152.9 new text begin that $9,800,000 has been received from the tax to pay for the cost of the project authorized new text end 152.10 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the new text end 152.11 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 152.12 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 152.13 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at any new text end 152.14 new text begin earlier time if the city so determines by ordinance. new text end 152.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 152.16 new text begin city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section new text end 152.17 new text begin 645.021, subdivisions 2 and 3. new text end 152.18    Sec. 19. new text begin CITY OF MOOSE LAKE; TAXES AUTHORIZED. new text end 152.19     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 152.20 new text begin section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, new text end 152.21 new text begin as approved by the voters at the November 6, 2012, general election, the city of Moose Lake new text end 152.22 new text begin may impose, by ordinance, a sales and use tax of up to one-half of one percent for the new text end 152.23 new text begin purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 152.24 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 152.25 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 152.26     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 152.27 new text begin under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting new text end 152.28 new text begin and administering the tax and to finance the costs of: (1) improvements to the city's park new text end 152.29 new text begin system; (2) street and related infrastructure improvements; and (3) municipal arena new text end 152.30 new text begin improvements. Authorized costs include construction and engineering costs and associated new text end 152.31 new text begin bond costs. new text end 152.32     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin The city of Moose Lake may issue bonds under Minnesota new text end 152.33 new text begin Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in new text end 153.1 new text begin subdivision 2. The aggregate principal amount of bonds issued under this subdivision may new text end 153.2 new text begin not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing new text end 153.3 new text begin the bonds. The bonds may be paid from or secured by any funds available to the city of new text end 153.4 new text begin Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under new text end 153.5 new text begin this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 153.6 new text begin The bonds are not included in computing any debt limitation applicable to the city of new text end 153.7 new text begin Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal new text end 153.8 new text begin and interest on the bonds is not subject to any levy limitation. A separate election to approve new text end 153.9 new text begin the bonds under Minnesota Statutes, section 475.58, is not required. new text end 153.10     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 153.11 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines new text end 153.12 new text begin that $3,000,000 has been received from the tax to pay for the cost of the projects authorized new text end 153.13 new text begin under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the new text end 153.14 new text begin bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining new text end 153.15 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 153.16 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 153.17 new text begin time if the city so determines by ordinance. new text end 153.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 153.19 new text begin city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section new text end 153.20 new text begin 645.021, subdivisions 2 and 3. new text end 153.21    Sec. 20. new text begin CITY OF NEW LONDON; TAX AUTHORIZED. new text end 153.22     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 153.23 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 153.24 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 153.25 new text begin of New London may impose, by ordinance, a sales and use tax of one-half of one percent new text end 153.26 new text begin for the purposes specified in subdivision 2. Except as otherwise provided in this section, new text end 153.27 new text begin the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 153.28 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 153.29     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 153.30 new text begin under subdivision 1 must be used by the city of New London to pay the costs of collecting new text end 153.31 new text begin and administering the tax and to finance the capital and administrative costs of the following new text end 153.32 new text begin projects: new text end new text begin new text end 153.33 new text begin (1) construction and equipping of a new library and community room; new text end 154.1 new text begin (2) construction of an ambulance bay at the fire hall; and new text end 154.2 new text begin (3) improvements to the New London Senior Citizen Center. new text end 154.3 new text begin The total that may be raised from the tax to pay for these projects is limited to $872,000 new text end 154.4 new text begin plus the costs related to the issuance and paying debt service on bonds for these projects. new text end 154.5     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin (a) The city of New London may issue bonds under new text end 154.6 new text begin Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities new text end 154.7 new text begin authorized in subdivision 2. The aggregate principal amount of bonds issued under this new text end 154.8 new text begin subdivision may not exceed $872,000, plus an amount to be applied to the payment of the new text end 154.9 new text begin costs of issuing the bonds. The bonds may be paid from or secured by any funds available new text end 154.10 new text begin to the city of New London, including the tax authorized under subdivision 1. The issuance new text end 154.11 new text begin of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and new text end 154.12 new text begin 275.61. new text end 154.13 new text begin (b) The bonds are not included in computing any debt limitation applicable to the city new text end 154.14 new text begin of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay new text end 154.15 new text begin principal and interest on the bonds is not subject to any levy limitation. A separate election new text end 154.16 new text begin to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end 154.17     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 154.18 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines new text end 154.19 new text begin that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds new text end 154.20 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 154.21 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 154.22 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 154.23 new text begin in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier new text end 154.24 new text begin time if the city so determines by ordinance. new text end 154.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 154.26 new text begin city of New London and its chief clerical officer comply with Minnesota Statutes, section new text end 154.27 new text begin 645.021, subdivisions 2 and 3. new text end 154.28    Sec. 21. new text begin CITY OF SLEEPY EYE; LODGING TAX. new text end 154.29 new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, new text end 154.30 new text begin ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by new text end 154.31 new text begin ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under new text end 154.32 new text begin Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under new text end 154.33 new text begin Minnesota Statutes, section 469.190, and the total tax imposed under that section and this new text end 155.1 new text begin provision must not exceed five percent. Revenue from the tax imposed under this section new text end 155.2 new text begin may only be used for the same purposes as a tax imposed under Minnesota Statutes, section new text end 155.3 new text begin 469.190. new text end 155.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 155.5 new text begin city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section new text end 155.6 new text begin 645.021, subdivisions 2 and 3. new text end 155.7    Sec. 22. new text begin CITY OF SPICER; TAX AUTHORIZED. new text end 155.8     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 155.9 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city new text end 155.10 new text begin charter, and as approved by the voters at the general election of November 8, 2016, the city new text end 155.11 new text begin of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the new text end 155.12 new text begin purposes specified in subdivision 2. Except as otherwise provided in this section, the new text end 155.13 new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end 155.14 new text begin collection, and enforcement of the tax authorized under this subdivision. new text end 155.15     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 155.16 new text begin under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and new text end 155.17 new text begin administering the tax and to finance the capital and administrative costs of the following new text end 155.18 new text begin projects: new text end new text begin new text end 155.19 new text begin (1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk new text end 155.20 new text begin signals at marked Trunk Highway 23; new text end 155.21 new text begin (2) park and trail capital improvements including signage for bicycle share the road new text end 155.22 new text begin improvements and replacement of playground and related facilities; and new text end 155.23 new text begin (3) capital improvements to regional community facilities such as the Dethelfs roof and new text end 155.24 new text begin window replacement and the Pioneerland branch library roof replacement. new text end 155.25     new text begin Subd. 3. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 155.26 new text begin earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027. All funds new text end 155.27 new text begin not used to pay collection and administration costs of the tax must be used for projects listed new text end 155.28 new text begin in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time if the new text end 155.29 new text begin city so determines by ordinance. new text end 155.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 155.31 new text begin city of Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 155.32 new text begin subdivisions 2 and 3. new text end 156.1    Sec. 23. new text begin CITY OF WALKER; LOCAL TAXES AUTHORIZED. new text end 156.2     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 156.3 new text begin section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the new text end 156.4 new text begin approval of the voters at the general election on November 6, 2012, the city of Walker may new text end 156.5 new text begin impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in new text end 156.6 new text begin subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, new text end 156.7 new text begin administration, collection, and enforcement of the taxes authorized under this subdivision. new text end 156.8     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin Revenues received from the tax authorized by subdivision 1 new text end 156.9 new text begin must be used to pay all or part of the capital and administrative costs of underground utility, new text end 156.10 new text begin street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012 new text end 156.11 new text begin capital improvement plan of the engineer of the city of Walker. new text end 156.12     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin The city of Walker, pursuant to the approval of the voters new text end 156.13 new text begin at the November 6, 2012, referendum authorizing the imposition of the taxes in this section, new text end 156.14 new text begin may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative new text end 156.15 new text begin expenses for the projects described in subdivision 2, in an amount that does not exceed new text end 156.16 new text begin $20,000,000. A separate election to approve the bonds under Minnesota Statutes, section new text end 156.17 new text begin 475.58, is not required. new text end 156.18     new text begin Subd. 4. new text end new text begin Termination of tax. new text end new text begin (a) The tax authorized under subdivision 1 terminates at new text end 156.19 new text begin the earlier of: new text end new text begin new text end 156.20 new text begin (1) 20 years after the date of initial imposition of the tax; or new text end 156.21 new text begin (2) when the city council determines that sufficient funds have been raised from the tax new text end 156.22 new text begin to finance the capital and administrative costs of the improvements described in subdivision new text end 156.23 new text begin 2, plus the additional amount needed to pay the costs related to issuance of bonds under new text end 156.24 new text begin subdivision 3, including interest on the bonds. new text end 156.25 new text begin (b) Any funds remaining after completion of the projects specified in subdivision 2 and new text end 156.26 new text begin retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of new text end 156.27 new text begin the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so new text end 156.28 new text begin determines by ordinance. new text end 156.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 156.30 new text begin city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 156.31 new text begin subdivisions 2 and 3. new text end 157.1    Sec. 24. new text begin CITY OF WINDOM; TAXES AUTHORIZED. new text end 157.2     new text begin Subdivision 1. new text end new text begin Sales and use tax authorized. new text end new text begin Notwithstanding Minnesota Statutes, new text end 157.3 new text begin section 477A.016, or any other provision of law, ordinance, or city charter, as approved by new text end 157.4 new text begin the voters at the general election held on November 8, 2016, the city of Windom may impose new text end 157.5 new text begin by ordinance a sales and use tax of up to one percent for the purposes specified in subdivision new text end 157.6 new text begin 3. Except as provided in this section, the provisions of Minnesota Statutes, section 297A.99, new text end 157.7 new text begin govern the imposition, administration, collection, and enforcement of the tax authorized new text end 157.8 new text begin under this subdivision. new text end 157.9     new text begin Subd. 2. new text end new text begin Use of revenues. new text end new text begin The proceeds of the tax imposed under this section must be new text end 157.10 new text begin used to pay for the cost of collecting the tax and to pay all or a portion of the expenses of new text end 157.11 new text begin constructing and improving a fire hall and a public safety facility, including any associated new text end 157.12 new text begin bond costs. new text end 157.13     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin The city of Windom, pursuant to the approval of the voters new text end 157.14 new text begin at the referendum authorizing the imposition of tax in this section, may issue bonds under new text end 157.15 new text begin Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the project new text end 157.16 new text begin described in subdivision 2. A separate election to approve the bonds under Minnesota new text end 157.17 new text begin Statutes, section 475.58, is not required. new text end 157.18     new text begin Subd. 4. new text end new text begin Termination of tax. new text end new text begin (a) The tax authorized under subdivision 1 terminates at new text end 157.19 new text begin the earlier of: new text end 157.20 new text begin (1) 15 years after the date of initial imposition of the tax; or new text end 157.21 new text begin (2) when $3,500,000 has been collected. new text end 157.22 new text begin (b) new text end new text begin Any funds remaining after completion of the projects specified in subdivision 2 may new text end 157.23 new text begin be placed in the general fund of the city. The tax imposed under subdivision 1 may expire new text end 157.24 new text begin at an earlier time if the city so determines by ordinance. new text end 157.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 157.26 new text begin city of Windom and its chief clerical officer comply with Minnesota Statutes, section new text end 157.27 new text begin 645.021, subdivisions 2 and 3. new text end 157.28    Sec. 25. new text begin CLAY COUNTY; TAX AUTHORIZED. new text end 157.29     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 157.30 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as new text end 157.31 new text begin approved by the voters at the November 8, 2016, general election, Clay County may impose, new text end 157.32 new text begin by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified new text end 158.1 new text begin in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota new text end 158.2 new text begin Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement new text end 158.3 new text begin of the tax authorized under this subdivision. new text end 158.4     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 158.5 new text begin under subdivision 1 must be used by Clay County to pay the costs of collecting and new text end 158.6 new text begin administering the tax and to finance the capital and administrative costs of constructing and new text end 158.7 new text begin equipping a new correctional facility, law enforcement center, and related parking facility. new text end 158.8 new text begin Authorized expenses include but are not limited to paying design, development, and new text end 158.9 new text begin construction costs related to these facilities and improvements, and securing and paying new text end 158.10 new text begin debt service on bonds issued under subdivision 3 or other obligations issued to finance the new text end 158.11 new text begin facilities listed in this subdivision. new text end 158.12     new text begin Subd. 3. new text end new text begin Bonding authority. new text end new text begin Clay County may issue bonds under Minnesota Statutes, new text end 158.13 new text begin chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision new text end 158.14 new text begin 2. The aggregate principal amount of bonds issued under this subdivision may not exceed new text end 158.15 new text begin $52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds. new text end 158.16 new text begin The bonds may be paid from or secured by any funds available to Clay County, including new text end 158.17 new text begin the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not new text end 158.18 new text begin subject to Minnesota Statutes, sections 275.60 and 275.61. new text end 158.19     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 158.20 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines new text end 158.21 new text begin that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds new text end 158.22 new text begin authorized under subdivision 3, including interest on the bonds, has been received from the new text end 158.23 new text begin tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining new text end 158.24 new text begin after payment of all such costs and retirement or redemption of the bonds shall be placed new text end 158.25 new text begin in the general fund of the county. The tax imposed under subdivision 1 may expire at an new text end 158.26 new text begin earlier time if the county so determines by ordinance. new text end 158.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of Clay new text end 158.28 new text begin County and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 158.29 new text begin subdivisions 2 and 3. new text end 158.30    Sec. 26. new text begin GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY new text end 158.31 new text begin DISTRICT; TAXES AUTHORIZED. new text end 158.32     new text begin Subdivision 1. new text end new text begin Sales and use tax authorization. new text end new text begin Notwithstanding Minnesota Statutes, new text end 158.33 new text begin section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by new text end 158.34 new text begin the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs new text end 159.1 new text begin Lake Sanitary District may impose, by majority vote of the governing body of the district, new text end 159.2 new text begin a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except new text end 159.3 new text begin as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, new text end 159.4 new text begin govern the imposition, administration, collection, and enforcement of the tax authorized new text end 159.5 new text begin under this subdivision. new text end 159.6     new text begin Subd. 2. new text end new text begin Use of sales and use tax revenues. new text end new text begin The revenues derived from the tax authorized new text end 159.7 new text begin under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary new text end 159.8 new text begin District to pay the costs of collecting and administering the tax and to repay general obligation new text end 159.9 new text begin revenue notes issued or other debt incurred for the construction of the wastewater collection new text end 159.10 new text begin system through the Minnesota Public Facilities Authority, general obligation disposal system new text end 159.11 new text begin bonds issued to finance the expense incurred in financing construction of sewer system new text end 159.12 new text begin improvements, and notes payable issued for costs associated with the sewer services new text end 159.13 new text begin agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML new text end 159.14 new text begin Wastewater Inc., and any other costs associated with system maintenance and improvements, new text end 159.15 new text begin including extension of the system to unserved customers as determined by the governing new text end 159.16 new text begin body of the district. new text end 159.17     new text begin Subd. 3. new text end new text begin Bonds. new text end new text begin The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant new text end 159.18 new text begin to the approval of the voters at the November 8, 2016, referendum authorizing the imposition new text end 159.19 new text begin of the tax under this section, may issue general obligation disposal system bonds for financing new text end 159.20 new text begin construction of sewer system improvements without a separate election required under new text end 159.21 new text begin Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued new text end 159.22 new text begin without a separate election is equal to $10,000,000 minus the amount of the tax revenue new text end 159.23 new text begin under this section committed to repay other notes as allowed under subdivision 2. new text end 159.24     new text begin Subd. 4. new text end new text begin Termination of taxes. new text end new text begin The tax imposed under subdivision 1 expires at the new text end 159.25 new text begin earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the new text end 159.26 new text begin Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has new text end 159.27 new text begin been received from the tax to pay for the costs authorized under subdivision 2. Any funds new text end 159.28 new text begin remaining after payment of all such costs and retirement or redemption of the bonds shall new text end 159.29 new text begin be placed in the general fund of the district. The tax imposed under subdivision 1 may expire new text end 159.30 new text begin at an earlier time if the governing body of the district so determines. new text end 159.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 159.32 new text begin Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply new text end 159.33 new text begin with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 160.1    Sec. 27. new text begin EFFECTIVE DATE; VALIDATION OF PRIOR ACT. new text end 160.2 new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of new text end 160.3 new text begin Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter new text end 160.4 new text begin 389, article 5, sections 1 and 2, and file its approval with the secretary of state by January new text end 160.5 new text begin 1, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the new text end 160.6 new text begin approval of the voters on November 2, 2010, and otherwise in accordance with those laws new text end 160.7 new text begin are validated. new text end 160.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of the new text end 160.9 new text begin city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, new text end 160.10 new text begin subdivisions 2 and 3. new text end 160.11ARTICLE 7 160.12PUBLIC FINANCE 160.13    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read: 160.14    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of 160.15indebtedness within the debt limits for a town purpose otherwise authorized by law. The 160.16certificates shall be payable in not more than ten years and be issued on the terms and in 160.17the manner as the board may determine new text begin , provided that notes issued for projects that eliminate new text end 160.18 new text begin R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more new text end 160.19 new text begin than 20 years new text end . If the amount of the certificates to be issued exceeds 0.25 percent of the 160.20estimated market value of the town, they shall not be issued for at least ten days after 160.21publication in a newspaper of general circulation in the town of the board's resolution 160.22determining to issue them. If within that time, a petition asking for an election on the 160.23proposition signed by voters equal to ten percent of the number of voters at the last regular 160.24town election is filed with the clerk, the certificates shall not be issued until their issuance 160.25has been approved by a majority of the votes cast on the question at a regular or special 160.26election. A tax levy shall be made to pay the principal and interest on the certificates as in 160.27the case of bonds. 160.28    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read: 160.29    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 160.30without public referendum, issue capital notes within existing debt limits for the purpose 160.31of purchasing ambulance and other medical equipment, road construction or maintenance 160.32equipment, public safety equipment and other capital equipment having an expected useful 160.33life at least equal to the term of the notes issued. The notes shall be payable in not more 161.1than ten years and shall be issued on terms and in a manner as the board determines new text begin , provided new text end 161.2 new text begin that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph new text end 161.3 new text begin (b), clause (2), must be payable in not more than 20 years new text end . The total principal amount of 161.4the notes issued for any fiscal year shall not exceed one percent of the total annual budget 161.5for that year and shall be issued solely for the purchases authorized in this subdivision. A 161.6tax levy shall be made for the payment of the principal and interest on such notes as in the 161.7case of bonds. For purposes of this subdivision, "equipment" includes computer hardware 161.8and software, whether bundled with machinery or equipment or unbundled. For purposes 161.9of this subdivision, the term "medical equipment" includes computer hardware and software 161.10and other intellectual property for use in medical diagnosis, medical procedures, research, 161.11record keeping, billing, and other hospital applications, together with application development 161.12services and training related to the use of the computer hardware and software and other 161.13intellectual property, all without regard to their useful life. For purposes of determining the 161.14amount of capital notes which the county may issue in any year, the budget of the county 161.15and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this 161.16subdivision shall be in addition to obligations issuable under section 373.01, subdivision 161.173 . 161.18    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read: 161.19410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 161.20    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter 161.21city may, by resolution and without public referendum, issue capital notes subject to the 161.22city debt limit to purchase capital equipment. 161.23    (b) For purposes of this section, "capital equipment" means: 161.24    (1) public safety equipment, ambulance and other medical equipment, road construction 161.25and maintenance equipment, and other capital equipment; and 161.26    (2) computer hardware and software, whether bundled with machinery or equipment or 161.27unbundled, together with application development services and training related to the use 161.28of the computer hardware and software. 161.29    (c) The equipment or software must have an expected useful life at least as long as the 161.30term of the notes. 161.31    (d) The notes shall be payable in not more than ten years and be issued on terms and in 161.32the manner the city determines new text begin , provided that notes issued for projects that eliminate R-22, new text end 161.33 new text begin as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than new text end 162.1 new text begin 20 years new text end . The total principal amount of the capital notes issued in a fiscal year shall not 162.2exceed 0.03 percent of the estimated market value of taxable property in the city for that 162.3year. 162.4    (e) A tax levy shall be made for the payment of the principal and interest on the notes, 162.5in accordance with section 475.61, as in the case of bonds. 162.6    (f) Notes issued under this section shall require an affirmative vote of two-thirds of the 162.7governing body of the city. 162.8    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 162.9city may also issue capital notes subject to its debt limit in the manner and subject to the 162.10limitations applicable to statutory cities pursuant to section 412.301. 162.11    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read: 162.12412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 162.13    (a) The council may issue certificates of indebtedness or capital notes subject to the city 162.14debt limits to purchase capital equipment. 162.15    (b) For purposes of this section, "capital equipment" means: 162.16    (1) public safety equipment, ambulance and other medical equipment, road construction 162.17and maintenance equipment, and other capital equipment; and 162.18    (2) computer hardware and software, whether bundled with machinery or equipment or 162.19unbundled, together with application development services and training related to the use 162.20of the computer hardware or software. 162.21    (c) The equipment or software must have an expected useful life at least as long as the 162.22terms of the certificates or notes. 162.23    (d) Such certificates or notes shall be payable in not more than ten years and shall be 162.24issued on such terms and in such manner as the council may determine new text begin , provided, however, new text end 162.25 new text begin that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph new text end 162.26 new text begin (b), clause (2), must be payable in not more than 20 years new text end . 162.27    (e) If the amount of the certificates or notes to be issued to finance any such purchase 162.28exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 162.29not be issued for at least ten days after publication in the official newspaper of a council 162.30resolution determining to issue them; and if before the end of that time, a petition asking 162.31for an election on the proposition signed by voters equal to ten percent of the number of 162.32voters at the last regular municipal election is filed with the clerk, such certificates or notes 163.1shall not be issued until the proposition of their issuance has been approved by a majority 163.2of the votes cast on the question at a regular or special election. 163.3    (f) A tax levy shall be made for the payment of the principal and interest on such 163.4certificates or notes, in accordance with section 475.61, as in the case of bonds. 163.5    Sec. 5. new text begin [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC new text end 163.6 new text begin BUILDINGS. new text end 163.7     new text begin Subdivision 1. new text end new text begin Reverse referendum; certain leases. new text end new text begin (a) Before executing a qualified new text end 163.8 new text begin lease, a municipality must publish notice of its intention to execute the lease and the date new text end 163.9 new text begin and time of a hearing to obtain public comment on the matter. The notice must be published new text end 163.10 new text begin in the official newspaper of the municipality or in a newspaper of general circulation in the new text end 163.11 new text begin municipality and must include a statement of the amount of the obligations to be issued by new text end 163.12 new text begin the authority and the maximum amount of annual rent to be paid by the municipality under new text end 163.13 new text begin the qualified lease. The notice must be published at least 14, but not more than 28, days new text end 163.14 new text begin before the date of the hearing. new text end 163.15 new text begin (b) A municipality may enter a lease subject to paragraph (a) only upon obtaining the new text end 163.16 new text begin approval of a majority of the voters voting on the question of issuing the obligations, if a new text end 163.17 new text begin petition requesting a vote on the issuance is signed by voters equal to ten percent of the new text end 163.18 new text begin votes cast in the municipality in the last state general election and is filed with the county new text end 163.19 new text begin auditor within 30 days after the public hearing. new text end 163.20     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the new text end 163.21 new text begin meanings given them. new text end 163.22 new text begin (b) "Authority" includes any of the following governmental units, the boundaries of new text end 163.23 new text begin which include all or part of the geographic area of the municipality: new text end 163.24 new text begin (1) a housing and redevelopment authority, as defined in section 469.002, subdivision new text end 163.25 new text begin 2; new text end 163.26 new text begin (2) a port authority, as defined in section 469.048; new text end 163.27 new text begin (3) an economic development authority, as established under section 469.091; or new text end new text begin new text end 163.28 new text begin (4) an entity established or exercising powers under a special law with powers similar new text end 163.29 new text begin to those of an entity described in clauses (1) to (3). new text end 163.30 new text begin (c) "Municipality" means a statutory or home rule charter city, a county, or a town new text end 163.31 new text begin described in section 368.01, but does not include a city of the first class, however organized, new text end 163.32 new text begin as defined in section 410.01. new text end 164.1 new text begin (d) "Qualified lease" means a lease for use of public land, all or part of a public building, new text end 164.2 new text begin or other public facilities consisting of real property for a term of three or more years as a new text end 164.3 new text begin lessee if the property to be leased to the municipality was acquired or improved with the new text end 164.4 new text begin proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an authority. new text end 164.5    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read: 164.6    Subdivision 1. Establishment. An economic development authority may create and 164.7define the boundaries of economic development districts at any place or places within the 164.8city, except that the district boundaries must be contiguous, and may use the powers granted 164.9in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a 164.10public hearing on the matter. At least ten days before the hearing, the authority shall publish 164.11notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 164.12shall find that an economic development district is proper and desirable to establish and 164.13develop within the city. 164.14    Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 164.15read: 164.16     new text begin Subd. 1u. new text end new text begin Obligations. new text end new text begin In addition to other authority in this section, the council may new text end 164.17 new text begin issue certificates of indebtedness, bonds, or other obligations under this section in an amount new text end 164.18 new text begin not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit new text end 164.19 new text begin capital improvement program and for related costs, including the costs of issuance and sale new text end 164.20 new text begin of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates new text end 164.21 new text begin of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and new text end 164.22 new text begin after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other new text end 164.23 new text begin obligations in an additional amount not exceeding $43,900,000. new text end 164.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 164.25 new text begin applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end 164.26    Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 164.27read: 164.28     new text begin Subd. 6. new text end new text begin Limitation; light rail transit. new text end new text begin The council is prohibited from expending any new text end 164.29 new text begin proceeds from certificates of indebtedness, bonds, or other obligations under this section new text end 164.30 new text begin for project development, land acquisition, or construction to (1) establish a light rail transit new text end 164.31 new text begin line; or (2) expand a light rail transit line, including by extending a line or adding additional new text end 164.32 new text begin stops. new text end 165.1 new text begin EFFECTIVE DATE. new text end new text begin This section applies to the expenditures made after the day new text end 165.2 new text begin following final enactment, but does not apply to amounts expended under binding contracts new text end 165.3 new text begin entered into before March 25, 2017. This section applies in the counties of Anoka, Carver, new text end 165.4 new text begin Dakota, Hennepin, Ramsey, Scott, and Washington. new text end 165.5    Sec. 9. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read: 165.6    Subd. 2. Requirements waived. The requirements as to public sale shall not apply: 165.7(1) to obligations issued under the provisions of a home rule charter or of a law 165.8specifically authorizing a different method of sale, or authorizing them to be issued in such 165.9manner or on such terms and conditions as the governing body may determine; 165.10(2) to obligations sold by an issuer in an amount not exceeding the total sum of 165.11$1,200,000 in any 12-month period; 165.12(3) to obligations issued by a governing body other than a school board in anticipation 165.13of the collection of taxes or other revenues appropriated for expenditure in a single year, if 165.14sold in accordance with the most favorable of two or more proposals solicited privately; 165.15(4) to obligations sold to any board, department, or agency of the United States of 165.16America or of the state of Minnesota, in accordance with rules or regulations promulgated 165.17by such board, department, or agency; 165.18(5) to obligations issued to fund pension and retirement fund liabilities under section 165.19475.52, subdivision 6 , obligations issued with tender options under section 475.54, 165.20subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision 165.2113 , and any issue of obligations comprised in whole or in part of obligations bearing interest 165.22at a rate or rates which vary periodically referred to in section 475.56; 165.23(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 165.24authorized by law, if the governing body of the municipality, on the advice of bond counsel 165.25or special tax counsel, determines that interest on the obligations cannot be represented to 165.26be excluded from gross income for purposes of federal income taxation; 165.27(7) to obligations issued in the form of an installment purchase contract, lease purchase 165.28agreement, or other similar agreement; 165.29(8) to obligations sold under a bond reinvestment program; and 165.30(9) if the municipality has retained an independent financial advisor new text begin municipal adviser new text end , 165.31obligations which the governing body determines shall be sold by private negotiation. 166.1ARTICLE 8 166.2MISCELLANEOUS 166.3    Section 1. new text begin [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS. new text end 166.4 new text begin (a) Except as provided in paragraph (b), no appropriation or other state money, whether new text end 166.5 new text begin in the general or another fund, must be expended or used for any costs related to studying new text end 166.6 new text begin the feasibility of, planning for, designing, engineering, acquiring property or constructing new text end 166.7 new text begin facilities for or related to, or development or operation of intercity or interregional passenger new text end 166.8 new text begin rail facilities or operations between the city of Rochester or locations in its metropolitan new text end 166.9 new text begin area and any location in the metropolitan area, as defined in section 473.121, subdivision new text end 166.10 new text begin 2. new text end 166.11 new text begin (b) The restrictions under this section do not apply to funds obtained from contributions, new text end 166.12 new text begin grants, or other voluntary payments made by nongovernmental entities from private sources. new text end 166.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 166.14    Sec. 2. new text begin [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS. new text end 166.15 new text begin (a) If a state official leases, loans, or otherwise makes available state lands, air rights, new text end 166.16 new text begin or any other state property for use in connection with passenger rail facilities, as described new text end 166.17 new text begin in section 16A.1246, the lease or other agreement must include or be secured by a security new text end 166.18 new text begin bond or equivalent guarantee that allows the state to recover any costs it incurs in connection new text end 166.19 new text begin with the rail project from a responsible third party or secure source of capital, if the passenger new text end 166.20 new text begin rail facilities are not constructed, do not go into operation, or are abandoned, whether or new text end 166.21 new text begin not the facilities began operations. The security bond or equivalent guarantee must remain new text end 166.22 new text begin in place for the term of lease, loan, or other agreement that makes state property available new text end 166.23 new text begin for use by the project. These costs include restoring state property to its original condition. new text end 166.24 new text begin (b) For purposes of this section, "state official" includes the commissioner, the new text end 166.25 new text begin commissioner of transportation, or any other state official with authority to enter a lease or new text end 166.26 new text begin other agreement providing for use by a nonstate entity of state property. new text end 166.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 166.28    Sec. 3. new text begin [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES new text end 166.29 new text begin PROHIBITED. new text end 166.30 new text begin Notwithstanding section 222.27 or any other law to the contrary, no condemning authority new text end 166.31 new text begin may take property for the development or construction of or for facilities related to intercity new text end 167.1 new text begin or interregional passenger rail facilities or operations between the city of Rochester or new text end 167.2 new text begin locations in its metropolitan area and any location in the metropolitan area, as defined in new text end 167.3 new text begin section 473.121, subdivision 2. new text end 167.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 167.5    Sec. 4. Minnesota Statutes 2016, section 216B.36, is amended to read: 167.6216B.36 MUNICIPAL REGULATORY AND TAXING POWERS. 167.7     new text begin Subdivision 1. new text end new text begin Municipal authority to regulate public utilities. new text end Any public utility 167.8furnishing the utility services enumerated in section 216B.02 or occupying streets, highways, 167.9or other public property within a municipality may be required to obtain a license, permit, 167.10right, or franchise in accordance with the terms, conditions, and limitations of regulatory 167.11acts of the municipality, including the placing of distribution lines and facilities underground. 167.12Under the license, permit, right, or franchise, the utility may be obligated by any municipality 167.13to pay to the municipality fees to raise revenue or defray increased municipal costs accruing 167.14as a result of utility operations, or both. new text begin A fee that raises revenue under a license, permit, new text end 167.15 new text begin right, or franchise agreement entered into or renewed on or after August 1, 2017, is subject new text end 167.16 new text begin to the requirements of subdivision 2. new text end The fee may include but is not limited to a sum of 167.17money based upon gross operating revenues or gross earnings from its operations in the 167.18municipality so long as the public utility shall continue to operate in the municipality, unless 167.19upon request of the public utility it is expressly released from the obligation at any time by 167.20such municipality. Notwithstanding the definition of "public utility" in section 216B.02, 167.21subdivision 4 , a municipality may require payment of a fee under this section by a cooperative 167.22electric association organized under chapter 308A that furnishes utility services within the 167.23municipality. All existing licenses, permits, franchises, and other rights acquired by any 167.24public utility or municipality prior to April 11, 1974, including the payment of existing 167.25franchise fees, shall not be impaired or affected in any respect by the passage of this chapter, 167.26except with respect to matters of rate and service regulation, service area assignments, 167.27securities, and indebtedness that are vested in the jurisdiction of the commission by this 167.28chapter. However, in the event that a court of competent jurisdiction determines, or the 167.29parties by mutual agreement determine, that an existing license, permit, franchise, or other 167.30right has been abrogated or impaired by this chapter, or its execution, the municipality 167.31affected shall impose and the public utility shall collect an excise tax on the utility charges 167.32which from year to year yields an amount which is reasonably equivalent to that amount of 167.33revenue which then would be due as a fee, charges or other thing or service of value to the 167.34municipality under the franchise, license, or permit. The authorization shall be over and 168.1above taxing limitations including, but not limited to, those of section 477A.016. Franchises 168.2granted pursuant to this section shall be exempt from the provisions of chapter 80C. For 168.3purposes of this section, a public utility shall include a cooperative electric association. 168.4     new text begin Subd. 2. new text end new text begin Five-year renewal; reverse referendum. new text end new text begin (a) A municipality may impose a new text end 168.5 new text begin fee under subdivision 1 to raise revenue beyond what is needed to defray increased municipal new text end 168.6 new text begin costs due to utility operations for up to a five-year period, following the procedures in this new text end 168.7 new text begin subdivision. new text end new text begin new text end 168.8 new text begin (b) The municipality must include in its ordinance or license, permit, or franchise new text end 168.9 new text begin agreement with the public utility what constitutes a cost to the city. new text end 168.10 new text begin (c) The municipality must identify in its ordinance or license, permit, or franchise new text end 168.11 new text begin agreement the uses of the portion of the fee that is for purposes other than to defray city new text end 168.12 new text begin costs. The municipality must publish a notice that explains: new text end 168.13 new text begin (1) the fee and its intended uses; new text end 168.14 new text begin (2) that the public utility is likely to pass the fee on to customers and how much that new text end 168.15 new text begin may increase customers' utility bills; new text end 168.16 new text begin (3) that alternatives to the revenue-raising portion of the fee are to raise the revenue new text end 168.17 new text begin from another source available to the municipality or forego planned uses of the revenue; new text end 168.18 new text begin and new text end 168.19 new text begin (4) what revenue raised from another source will cost those paying it. new text end 168.20 new text begin The notice must be published at least once each week for two consecutive weeks in the new text end 168.21 new text begin official publication of the municipality and must remain posted on the municipality's Web new text end 168.22 new text begin site throughout the notice period. The notice must also be sent to all affected ratepayers by new text end 168.23 new text begin either first class mail by the municipality or by including the notice in the affected ratepayers' new text end 168.24 new text begin billings. new text end 168.25 new text begin (d) Following publication and before imposing the fee, the municipality must provide new text end 168.26 new text begin an opportunity at its next regular meeting for public comment relating to the issue. No new text end 168.27 new text begin sooner than 90 days after the public comment opportunity, the municipality may proceed new text end 168.28 new text begin with imposing the fee, unless a petition is filed as provided in paragraph (e). new text end 168.29 new text begin (e) Within 90 days after the meeting held by the municipality at which public comment new text end 168.30 new text begin was accepted, a petition requesting a referendum may be filed with the chief clerical officer new text end 168.31 new text begin of the municipality. The petition must be signed by at least five percent of the registered new text end 168.32 new text begin voters in the municipality. The petition must meet the requirements of the secretary of state, new text end 168.33 new text begin as provided in section 204B.071, and any rules adopted to implement that section. If the new text end 169.1 new text begin petition is sufficient, the question of whether the municipality may impose a fee that raises new text end 169.2 new text begin revenue as provided in subdivision 1 must be placed on the ballot at the next general election. new text end 169.3 new text begin If a majority of the voters voting on the question votes in favor of using the fee to raise new text end 169.4 new text begin revenue, the municipality may proceed with imposing the fee. new text end 169.5 new text begin (f) If a license, permit, right, or franchise agreement is entered into or renewed before new text end 169.6 new text begin August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect after new text end 169.7 new text begin August 1, 2022, the municipality must follow the procedures in this subdivision to provide new text end 169.8 new text begin notice, a public hearing, and opportunity for a petition for a referendum by August 1, 2022. new text end 169.9 new text begin (g) Except as provided in paragraph (f), this subdivision applies to a license, permit, new text end 169.10 new text begin right, or franchise agreement entered into or renewed on or after August 1, 2017. new text end 169.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 169.12    Sec. 5. new text begin [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL new text end 169.13 new text begin INSURANCE REQUIRED. new text end 169.14     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin (a) This section applies to any person that seeks a federal or state new text end 169.15 new text begin permit or other formal legal authorization to construct or operate a passenger rail project new text end 169.16 new text begin with an estimated capital cost exceeding $1,000,000,000. new text end 169.17 new text begin (b) This section does not apply to a person whose only action within the scope of new text end 169.18 new text begin paragraph (a) is an application for a building permit. new text end 169.19     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, unless the context clearly indicates new text end 169.20 new text begin otherwise, the following definitions apply. new text end 169.21 new text begin (b) "Commissioner" means the commissioner of the Pollution Control Agency. new text end 169.22 new text begin (c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent new text end 169.23 new text begin guarantee that provides assurance of the project's ability to pay claims for any liability under new text end 169.24 new text begin chapter 115B or similar provisions of common law or federal law resulting from construction new text end 169.25 new text begin or operation of the passenger rail project. new text end 169.26 new text begin (d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway new text end 169.27 new text begin located within or partly within Minnesota intended to provide passenger service, regardless new text end 169.28 new text begin of whether freight service is also provided, by a common carrier other than a federal or state new text end 169.29 new text begin government unit, a political subdivision of the state, or the National Railroad Passenger new text end 169.30 new text begin Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518. new text end 169.31 new text begin (e) "Person" includes a corporation, limited liability company, partnership, other entity, new text end 169.32 new text begin or an individual. new text end 170.1     new text begin Subd. 3. new text end new text begin Environmental insurance required. new text end new text begin (a) Any person subject to this section new text end 170.2 new text begin must obtain and maintain insurance that is adequate to cover potential claims and meets the new text end 170.3 new text begin other requirements of this section, as approved by the commissioner under paragraph (b). new text end 170.4 new text begin The insurance must not contain dollar limits on liability, or if it does contain a dollar limit new text end 170.5 new text begin the limit must be not less than a reasonable estimate of the potential exposure of the project new text end 170.6 new text begin for environmental remediation or impairment damages. Any dollar limit must be adjusted new text end 170.7 new text begin if the scope, size, or cost of the project increases materially. The insurance must cover any new text end 170.8 new text begin liability incurred during and after the construction and operation of the project and must new text end 170.9 new text begin not contain exclusions, limitations, or other restrictions that are not standard in comprehensive new text end 170.10 new text begin environmental remediation insurance or in environmental impairment insurance, as new text end 170.11 new text begin applicable. new text end 170.12 new text begin (b) In order to satisfy the requirements of this section, the commissioner must determine new text end 170.13 new text begin that the insurance is adequate and that it meets the other requirements of this section. The new text end 170.14 new text begin commissioner may require that the project provide any supporting documentation to new text end 170.15 new text begin determine that insurance is adequate and meets the other requirements of this section and new text end 170.16 new text begin that the project has the financial ability to maintain insurance during the project's operations. new text end 170.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for passenger rail projects for which new text end 170.18 new text begin application for a permit or other formal legal authorization to construct is made after the new text end 170.19 new text begin day following final enactment. new text end 170.20    Sec. 6. Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read: 170.21    Subd. 7. Refund. "Refund" means an individual income tax refund or political 170.22contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to 170.23chapter 290A, or a sustainable forest payment to a claimant under chapter 290C. 170.24For purposes of this chapter, lottery prizes, as set forth in section 349A.08, subdivision 170.258 , and amounts granted to persons by the legislature on the recommendation of the joint 170.26senate-house of representatives Subcommittee on Claims shall be treated as refunds. 170.27In the case of a joint property tax refund payable to spouses under chapter 290A, the 170.28refund shall be considered as belonging to each spouse in the proportion of the total refund 170.29that equals each spouse's proportion of the total income determined under section 290A.03, 170.30subdivision 3 . In the case of a joint income tax refund under chapter 289A, the refund shall 170.31be considered as belonging to each spouse in the proportion of the total refund that equals 170.32each spouse's proportion of the total taxable income determined under section 290.01, 170.33subdivision 29 . The commissioner shall remit the entire refund to the claimant agency, 170.34which shall, upon the request of the spouse who does not owe the debt, determine the amount 171.1of the refund belonging to that spouse and refund the amount to that spouse. For court fines, 171.2fees, and surcharges and court-ordered restitution under section 611A.04, subdivision 2, 171.3the notice provided by the commissioner of revenue under section 270A.07, subdivision 2, 171.4paragraph (b), serves as the appropriate legal notice to the spouse who does not owe the 171.5debt. 171.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for political contribution refund claims new text end 171.7 new text begin based on contributions made on or after July 1, 2017. new text end 171.8    Sec. 7. Minnesota Statutes 2016, section 287.08, is amended to read: 171.9287.08 TAX, HOW PAYABLE; RECEIPTS. 171.10    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 171.11county in this state in which the real property or some part is located at or before the time 171.12of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 171.13the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 171.14any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 171.15be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 171.16taxation the endorsement shall, in substance, be "exempt from registration tax." In either 171.17case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 171.18whether a claim of exemption should be allowed, the tax must be paid as in the case of a 171.19taxable mortgage. For documents submitted electronically, the endorsements and tax amount 171.20shall be affixed electronically and no signature by the treasurer will be required. The actual 171.21payment method must be arranged in advance between the submitter and the receiving 171.22county. 171.23    (b) The county treasurer may refund in whole or in part any mortgage registry tax 171.24overpayment if a written application by the taxpayer is submitted to the county treasurer 171.25within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 171.26of the application, the taxpayer may bring an action in Tax Court in the county in which 171.27the tax was paid at any time after the expiration of six months from the time that the 171.28application was submitted. A denial of refund may be appealed within 60 days from the 171.29date of the denial by bringing an action in Tax Court in the county in which the tax was 171.30paid. The action is commenced by the serving of a petition for relief on the county treasurer, 171.31and by filing a copy with the court. The county attorney shall defend the action. The county 171.32treasurer shall notify the treasurer of each county that has or would receive a portion of the 171.33tax as paid. 172.1    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered 172.2by the court, the county treasurer of each county that actually received a portion of the tax 172.3shall immediately pay a proportionate share of three percent of the refund using any available 172.4county funds. The county treasurer of each county that received, or would have received, 172.5a portion of the tax shall also pay their county's proportionate share of the remaining 97 172.6percent of the court-ordered refund on or before the 20th day of the following month using 172.7solely the mortgage registry tax funds that would be paid to the commissioner of revenue 172.8on that date under section 287.12. If the funds on hand under this procedure are insufficient 172.9to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 172.10which the action was brought shall file a claim with the commissioner of revenue under 172.11section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 172.12remaining portion upon receipt of a warrant from the state issued pursuant to the claim. 172.13    (d) When any mortgage covers real property located in more than one county in this 172.14state the total tax must be paid to the treasurer of the county where the mortgage is first 172.15presented for recording, and the payment must be receipted as provided in paragraph (a). 172.16If the principal debt or obligation secured by such a multiple county mortgage exceeds 172.17$10,000,000, new text begin the tax collected shall be forwarded by the county treasurer receiving it to the new text end 172.18 new text begin commissioner of revenue and new text end the nonstate portion of the tax must be divided and paid over 172.19by the county treasurer receiving it new text begin commissioner of revenue new text end , on or before the 20th day of 172.20each month after receipt, to the county or counties entitled in the ratio that the estimated 172.21market value of the real property covered by the mortgage in each county bears to the 172.22estimated market value of all the real property in this state described in the mortgage. In 172.23making the division and payment the county treasurer new text begin commissioner of revenue new text end shall send 172.24a statement giving the description of the real property described in the mortgage and the 172.25estimated market value of the part located in each county. For this purpose, the treasurer of 172.26any county new text begin commissioner of revenue new text end may require the treasurer of any other county to certify 172.27to the former the estimated market value of any tract of real property in any mortgage new text begin in new text end 172.28 new text begin the county new text end . 172.29    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 172.30may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 172.31collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 172.32has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 172.33collected for that purpose and the mortgagor is relieved of any further obligation to pay the 172.34tax as to the amount collected by the mortgagee for this purpose. 172.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax collected after June 30, 2017. new text end 173.1    Sec. 8. Minnesota Statutes 2016, section 289A.50, subdivision 1, is amended to read: 173.2    Subdivision 1. General right to refund. (a) Subject to the requirements of this section 173.3and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and 173.4who files a written claim for refund will be refunded or credited the overpayment of the tax 173.5determined by the commissioner to be erroneously paid. 173.6(b) The claim must specify the name of the taxpayer, the date when and the period for 173.7which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims 173.8was erroneously paid, the grounds on which a refund is claimed, and other information 173.9relative to the payment and in the form required by the commissioner. An income tax, estate 173.10tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes 173.11a claim for refund. 173.12(c) When, in the course of an examination, and within the time for requesting a refund, 173.13the commissioner determines that there has been an overpayment of tax, the commissioner 173.14shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the 173.15overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer. 173.16If the amount of the overpayment is less than $1, the commissioner is not required to refund. 173.17In these situations, the commissioner does not have to make written findings or serve notice 173.18by mail to the taxpayer. 173.19(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent 173.20care exceeds the tax against which the credit is allowable, the amount of the excess is 173.21considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also 173.22considered an overpayment. The requirements of section 270C.33 do not apply to the 173.23refunding of such an overpayment shown on the original return filed by a taxpayer. 173.24(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, 173.25penalties, and interest reported in the return of the entertainment entity or imposed by section 173.26290.9201 , the excess must be refunded to the entertainment entity. If the excess is less than 173.27$1, the commissioner need not refund that amount. 173.28(f) If the surety deposit required for a construction contract exceeds the liability of the 173.29out-of-state contractor, the commissioner shall refund the difference to the contractor. 173.30(g) An action of the commissioner in refunding the amount of the overpayment does not 173.31constitute a determination of the correctness of the return of the taxpayer. 173.32(h) There is appropriated from the general fund to the commissioner of revenue the 173.33amount necessary to pay refunds allowed under this section. 174.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for political contribution refund claims new text end 174.2 new text begin based on contributions made on or after July 1, 2017. new text end 174.3    Sec. 9. Minnesota Statutes 2016, section 290.01, subdivision 6, is amended to read: 174.4    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to a 174.5tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term 174.6"taxpayer" means an individual eligible to vote in Minnesota under section . 174.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for political contribution refund claims new text end 174.8 new text begin based on contributions made on or after July 1, 2017. new text end 174.9    Sec. 10. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read: 174.10    Subdivision 1. Guaranteed distribution. (a) new text begin Except as provided under paragraph (c), new text end 174.11the distribution of the taconite production tax as provided in section 298.28, subdivisions 174.123 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts: 174.13(1) the amount distributed pursuant to this section and section 298.28, with respect to 174.141983 production if the production for the year prior to the distribution year is no less than 174.1542,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount 174.16of the distributions shall be reduced proportionately at the rate of two percent for each 174.171,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000 174.18tons; or 174.19(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs 174.20(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this 174.21section and section 298.28, with respect to 1983 production; 174.22(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b) 174.23and (d), 75 percent of the amount distributed pursuant to this section and section 298.28, 174.24with respect to 1983 production provided that the aid guarantee for distributions under 174.25section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton 174.26for production years 2014 and thereafter. 174.27(b) The distribution of the taconite production tax as provided in section 298.28, 174.28subdivision 2 , shall equal the following amount: 174.29(1) if the production for the year prior to the distribution year is at least 42,000,000 174.30taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 174.31to 1999 production; or 175.1(2) if the production for the year prior to the distribution year is less than 42,000,000 175.2taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 175.3to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000 175.4tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons. 175.5 new text begin (c) The distribution of the taconite production tax under section new text end new text begin , subdivision 3, new text end 175.6 new text begin paragraph (a), guaranteed under this section is equal to the amount distributed under section new text end 175.7 new text begin 298.28, with respect to 1983 production. new text end 175.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for distributions in 2018 and thereafter. new text end 175.9    Sec. 11. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read: 175.10    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under 175.11subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account 175.12to be distributed as provided in section 298.282. new text begin The amount allocated to the taconite new text end 175.13 new text begin municipal aid account must be annually increased in the same proportion as the increase in new text end 175.14 new text begin the implicit price deflator as provided in section new text end new text begin 298.24, subdivision 1 new text end new text begin . new text end 175.15    (b) An amount must be allocated to towns or cities that is annually certified by the county 175.16auditor of a county containing a taconite tax relief area as defined in section 273.134, 175.17paragraph (b) , within which there is (1) an organized township if, as of January 2, 1982, 175.18more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a 175.19city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city 175.20consists of iron ore. 175.21    (c) The amount allocated under paragraph (b) will be the portion of a township's or city's 175.22certified levy equal to the proportion of (1) the difference between 50 percent of January 175.232, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, 175.24assessed value in the case of a city and its current assessed value to (2) the sum of its current 175.25assessed value plus the difference determined in (1), provided that the amount distributed 175.26shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a 175.27city. For purposes of this limitation, population will be determined according to the 1980 175.28decennial census conducted by the United States Bureau of the Census. If the current assessed 175.29value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, 175.30or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, 175.31assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed 175.32value," when used in reference to years other than 1980 or 1982, means the appropriate net 175.33tax capacities multiplied by 10.2. 176.1    (d) In addition to other distributions under this subdivision, three cents per taxable ton 176.2for distributions in 2009 must be allocated for distribution to towns that are entirely located 176.3within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution 176.4in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent 176.5amount must be annually increased in the same proportion as the increase in the implicit 176.6price deflator as provided in section 298.24, subdivision 1. The amount available under this 176.7paragraph will be distributed to eligible towns on a per capita basis, provided that no town 176.8may receive more than $50,000 in any year under this paragraph. Any amount of the 176.9distribution that exceeds the $50,000 limitation for a town under this paragraph must be 176.10redistributed on a per capita basis among the other eligible towns, to whose distributions 176.11do not exceed $50,000. 176.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for distributions in 2018 and thereafter. new text end 176.13    Sec. 12. new text begin [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL new text end 176.14 new text begin PROJECTS. new text end 176.15 new text begin (a) Except as provided in paragraph (b), a governmental unit must not spend or use any new text end 176.16 new text begin money for any costs related to studying the feasibility of, planning for, designing, new text end 176.17 new text begin engineering, acquiring property or constructing facilities for or related to, or development new text end 176.18 new text begin or operation of intercity or interregional passenger rail facilities or operations between the new text end 176.19 new text begin city of Rochester, or locations in its metropolitan area, and any location in the metropolitan new text end 176.20 new text begin area, as defined in section 473.121, subdivision 2. new text end 176.21 new text begin (b) The restrictions under this section do not apply to: new text end 176.22 new text begin (1) funds the governmental unit obtains from contributions, grants, or other voluntary new text end 176.23 new text begin payments made by nongovernmental entities from private sources; and new text end 176.24 new text begin (2) expenditures for costs of public infrastructure, including public utilities, parking new text end 176.25 new text begin facilities, a multimode transit hub, or similar projects located within the area of the new text end 176.26 new text begin development district, as defined under section 469.40, and reflected in the development new text end 176.27 new text begin plan adopted before the enactment of this section, that are intended to serve, and that are new text end 176.28 new text begin made following the completed construction and commencement of operation of privately new text end 176.29 new text begin financed and operated intercity or interregional passenger rail facilities. new text end 176.30 new text begin (c) For purposes of this section, "governmental unit" means any of the following, located new text end 176.31 new text begin in development regions 10 and 11, as designated under section 462.385, subdivision 1: new text end 176.32 new text begin (1) statutory or home rule charter city; new text end 176.33 new text begin (2) county; new text end 177.1 new text begin (3) special taxing district, as defined in section 275.066; new text end 177.2 new text begin (4) metropolitan planning organization; or new text end 177.3 new text begin (5) destination medical center entity, which includes the Destination Medical Center new text end 177.4 new text begin Corporation and agency, as those terms are defined in section 469.40, and any successor or new text end 177.5 new text begin related entity. new text end 177.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment without new text end 177.7 new text begin local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c). new text end 177.8    Sec. 13. Minnesota Statutes 2016, section 462.353, subdivision 4, is amended to read: 177.9    Subd. 4. Fees. (a) A municipality may prescribe fees sufficient to defray the costs incurred 177.10by it in reviewing, investigating, and administering an application for an amendment to an 177.11official control established pursuant to sections 462.351 to 462.364 or an application for a 177.12permit or other approval required under an official control established pursuant to those 177.13sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance. 177.14Fees must be fair, reasonable, and proportionate and have a nexus to the actual cost of the 177.15service for which the fee is imposed. 177.16(b) A municipality must adopt management and accounting procedures to ensure that 177.17fees are maintained and used only for the purpose for which they are collected. Upon request, 177.18a municipality must explain the basis of its fees. 177.19(c) Except as provided in this paragraph, a fee ordinance or amendment to a fee ordinance 177.20is effective January 1 after its adoption. A municipality may adopt a fee ordinance or an 177.21amendment to a fee ordinance with an effective date other than the next January 1, but the 177.22ordinance or amendment does not apply if an application for final approval has been 177.23submitted to the municipality. 177.24(d) If a dispute arises over a specific fee imposed by a municipality related to a specific 177.25application, the person aggrieved by the fee may appeal under section 462.361, provided 177.26that the appeal must be brought within 60 days after approval of an application under this 177.27section and deposit of the fee into escrow. A municipality must not condition the approval 177.28of any proposed subdivision or development on an agreement to waive the right to challenge 177.29the validity of a fee. An approved application may proceed as if the fee had been paid, 177.30pending a decision on the appeal. This paragraph must not be construed to preclude the 177.31municipality from conditioning approval of any proposed subdivision or development on 177.32an agreement to waive a challenge to the cost associated with municipally installed 177.33improvements of the type described in section 429.021. 178.1 new text begin (e) A municipality may not impose a fee to review or investigate a use if the use is new text end 178.2 new text begin allowed without any permit, approval, or amendment to an official control. This limitation new text end 178.3 new text begin does not apply to a fee for a review or investigation: new text end 178.4 new text begin (1) of compliance with health and safety requirements; or new text end 178.5 new text begin (2) that results in finding a violation, unless the finding is overturned on appeal or a new text end 178.6 new text begin penalty, fine, or other charge is imposed for the violation. new text end 178.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2017, and applies to fees new text end 178.8 new text begin imposed on or after that date. new text end 178.9    Sec. 14. new text begin [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS. new text end 178.10 new text begin (a) Except as provided in paragraph (b), the council must not spend or use any money new text end 178.11 new text begin for any costs related to studying the feasibility of, planning for, designing, engineering, new text end 178.12 new text begin acquiring property or constructing facilities for or related to, or development or operation new text end 178.13 new text begin of intercity or interregional passenger rail facilities or operations between the city of new text end 178.14 new text begin Rochester or locations in its metropolitan area and any location in the metropolitan area, as new text end 178.15 new text begin defined in section 473.121, subdivision 2. new text end 178.16 new text begin (b) The restrictions under this section do not apply to funds the council obtains from new text end 178.17 new text begin contributions, grants, or other voluntary payments made by nongovernmental entities from new text end 178.18 new text begin private sources. new text end 178.19 new text begin EFFECTIVE DATE; APPLICATION. new text end new text begin This section is effective the day following new text end 178.20 new text begin final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, new text end 178.21 new text begin Scott, and Washington. new text end 178.22    Sec. 15. new text begin CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED new text end 178.23 new text begin TACONITE TAX PROCEEDS. new text end 178.24 new text begin The commissioner of Iron Range resources and rehabilitation may use unspent amounts new text end 178.25 new text begin allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19), new text end 178.26 new text begin remaining as of May 22, 2016, for the specific purposes identified in that section. new text end 178.27 new text begin Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any new text end 178.28 new text begin other law to the contrary, interest accrued on this amount shall also be distributed to the new text end 178.29 new text begin recipient. Amounts under this section are available until expended and do not lapse or cancel new text end 178.30 new text begin under Minnesota Statutes, section 16A.28. new text end 178.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from May 22, 2016. new text end 179.1    Sec. 16. new text begin CITY OF TAYLORS FALLS; DEVELOPMENT ZONE. new text end 179.2     new text begin Subdivision 1. new text end new text begin Authorization. new text end new text begin The governing body of the city of Taylors Falls may new text end 179.3 new text begin designate all or any part of the city as a development zone under Minnesota Statutes, section new text end 179.4 new text begin 469.1731. new text end 179.5     new text begin Subd. 2. new text end new text begin Application of general law. new text end new text begin (a) Minnesota Statutes, sections 469.1731 to new text end 179.6 new text begin 469.1735, apply to the development zones designated under this section. The governing new text end 179.7 new text begin body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731 new text end 179.8 new text begin to 469.1735, including powers that apply outside of the zones. new text end 179.9 new text begin (b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section new text end 179.10 new text begin 469.1735, subdivision 2, is appropriated to the commissioner of revenue. new text end 179.11     new text begin Subd. 3. new text end new text begin Allocation of state tax reductions. new text end new text begin (a) The cumulative total amount of the new text end 179.12 new text begin state portion of the tax reductions for all years of the program under Minnesota Statutes, new text end 179.13 new text begin sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000. To new text end 179.14 new text begin provide the authority under this section, the amount of the allocation for border cities under new text end 179.15 new text begin Minnesota Statutes, section 469.169, in this act is reduced by $100,000. new text end 179.16 new text begin (b) This allocation may be used for tax reductions provided in Minnesota Statutes, section new text end 179.17 new text begin 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735, new text end 179.18 new text begin subdivision 3, but only if the governing body of the city of Taylors Falls determines that new text end 179.19 new text begin the tax reduction or offset is necessary to enable a business to expand within the city or to new text end 179.20 new text begin attract a business to the city. new text end 179.21 new text begin (c) The commissioner of revenue may waive the limit under this subdivision using the new text end 179.22 new text begin same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12, new text end 179.23 new text begin paragraph (b). new text end 179.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017, and does not require local new text end 179.25 new text begin approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 179.26    Sec. 17. new text begin REPEALER. new text end 179.27 new text begin (a) new text end new text begin Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2; new text end 179.28 new text begin and 290.06, subdivision 23, new text end new text begin and new text end new text begin Minnesota Rules, part 4503.1400, subpart 4, new text end new text begin are repealed. new text end 179.29 new text begin (b) new text end new text begin Minnesota Statutes 2016, section 477A.20, new text end new text begin is repealed. new text end 179.30 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for contributions made after June 30, new text end 179.31 new text begin 2017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the day following new text end 179.32 new text begin final enactment. new text end