1.1A bill for an act1.2relating 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 12.16PROPERTY TAX2.17    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:2.18    Subd. 2. Allowed commercial and industrial operations.(a) 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; and2.24(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.; and2.27(4) wireless communication installments and related equipment and structure capable
         2.28of providing technology potentially beneficial to farming activities.2.29    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)2.30means existing on August 1, 1989.2.31EFFECTIVE DATE.This section is effective the day following final enactment.2.32    Sec. 2. [103C.333] COUNTY LEVY AUTHORITY.2.33Notwithstanding any other law to the contrary, a county levying a tax under section
         2.34103C.331 shall not include any taxes levied under those authorities in the levy certified
         2.35under section 275.07, subdivision 1, paragraph (a). A county levying under section
         103C.331 3.1shall separately certify that amount, and the auditor shall extend that levy as a
         special taxing 3.2district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).3.3EFFECTIVE DATE.This section is effective for certifications made in 2017 and 3.4thereafter.3.5    Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read:3.6    Subd. 23. Secondary liquid agricultural chemical containment facilities.Secondary 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, berms used by 3.10a reseller to contain agricultural chemical spills from primary storage containers
         and prevent 3.11runoff or leaching of liquid agricultural chemicals as defined in section 18D.01,
         subdivision 3.123, are exempt. For purposes of this subdivision, "reseller" means a person licensed by the 3.13commissioner of agriculture under section 18B.316 or 18C.415.3.14EFFECTIVE DATE.This section is effective beginning with taxes payable in 2016 3.15provided that nothing in this section shall cause property that was classified as
         exempt 3.16property for taxes payable in 2016 to lose its exempt status for taxes payable in
         that year.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; and3.24(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;
         or3.29(iii) in a township that has a population greater than 2,0001,400 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    Subd. 100.Electric generation facility; personal property.(a) Notwithstanding 4.12subdivision 9, clause (a), attached machinery and other personal property that is
         part of an 4.13electric generation facility with more than 35 megawatts and less than 40 megawatts
         of 4.14installed capacity and that meets the requirements of this subdivision is exempt from
         taxation 4.15and payments in lieu of taxation. The facility must:4.16(1) be designed to utilize natural gas as a primary fuel;4.17(2) be owned and operated by a municipal power agency as defined in section 453.52,
         4.18subdivision 8;4.19(3) be located within 800 feet of an existing natural gas pipeline;4.20(4) satisfy a resource deficiency identified in an approved integrated resource plan
         filed 4.21under section 216B.2422;4.22(5) be located outside the metropolitan area as defined under section 473.121, subdivision
         4.232; and4.24(6) have received, by resolution, the approval of the governing bodies of the city
         and 4.25county in which it is located for the exemption of personal property provided by this
         4.26subdivision.4.27(b) Construction of the facility must have been commenced after January 1, 2015, and
         4.28before January 1, 2017. Property eligible for this exemption does not include electric
         4.29transmission lines and interconnections or gas pipelines and interconnections appurtenant
         4.30to the property or the facility.4.31EFFECTIVE DATE.This section is effective the day following final enactment.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 Qualified lands, as defined in this section, 5.4are  exempt from taxation, including the tax under section 
         273.19, qualified lands. "Qualified 5.5lands" for purposes of this section means property land that:5.6    (1) is owned by a county, city, town, or the state; and5.7    (2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial 5.8seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational 5.9residential use.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, noncommercial seasonal-recreational residential, or class 1c 5.14commercial seasonal-recreational residential use are exempt from taxation, including the 5.15tax under section 
         273.19.5.16EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.5.17    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); and5.28(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;
         6.8and6.9(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 similarthe same 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. Wind energy conversion systems that were determined by the commissioner 6.18of commerce to be eligible for a renewable energy production incentive under section
         6.19216C.41 are not under common ownership unless a change in the qualifying owner was
         6.20made to an owner of another wind energy conversion system subsequent to the determination
         6.21by the commissioner of commerce.6.22EFFECTIVE DATE.This section is effective the day following final enactment.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 or county7.2subdivision regulations adopted and filed under section 394.35 or section 
         462.36, subdivision 7.31
         ; and7.4(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.(a) 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 or 7.9designated county planning official:7.10(a) (1) that the municipality's or county's subdivision regulations do not apply;7.11(b) (2) that the subdivision has been approved by the governing body of the municipality7.12or county; or7.13(c) (3) 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 or county 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(b) If any of the conditions for certification by the municipality or county as provided 7.18in this subdivision exist and the municipality or county 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 or designated county planning official, the provisions of subdivision 1 do not 7.21apply.7.22(c) If an unexecuted instrument is presented to the municipality or county and any of 7.23the conditions for certification by the municipality or county as provided in this subdivision 7.24exist, the unexecuted instrument must be certified by the clerk of the municipality or the 7.25designated county planning official.7.26    Subd. 3. Applicability of restrictions.(a) This section does not apply to the exceptions 7.27set forth in section 
         272.12.7.28(b) This section applies only to land within municipalities or counties which choose to 7.29be governed by its provisions. A municipality or county 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.7.33EFFECTIVE DATE.This section is effective the day following final enactment.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; and8.13    (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)., and 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 290A.03.8.25EFFECTIVE DATE.This section is effective beginning with claims for taxes payable 8.26in 2018.8.27    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; and9.7    (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; and9.28    (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) (iii) 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; and11.6    (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; and11.22    (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; and12.7    (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; and12.24    (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; and13.12    (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; and13.29    (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.14.3EFFECTIVE DATE.This section is effective beginning for property taxes payable in 14.42018.14.5    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, including agricultural 14.7property, 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), or (e).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(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
         14.30purposes of this paragraph, "owner" means the grantor of the trust or the surviving
         spouse 14.31of the grantor.14.32(f) For purposes of this subdivision, the following terms have the meanings given
         them:15.1(1) "agricultural property" means the house, garage, other farm buildings and structures,
         15.2and agricultural land;15.3(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
         15.4that the phrases "owned by same person" or "under the same ownership" as used in that
         15.5subdivision mean and include contiguous tax parcels owned by:15.6(i) an individual and a trust of which the individual, the individual's spouse, or
         the 15.7individual's deceased spouse is the grantor; or15.8(ii) different trusts of which the grantors of each trust are any combination of an
         15.9individual, the individual's spouse, or the individual's deceased spouse; and15.10    For purposes of this subdivision, (3) "grantor" is defined as means 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(g) Noncontiguous land is included as part of a homestead under this subdivision,
         only 15.14if the homestead is classified as class 2a, as defined in section 273.13, subdivision
         23, and 15.15the detached land is located in the same township or city, or not farther than four
         townships 15.16or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous
         15.17lands must notify the county assessor that the noncontiguous land is part of the taxpayer's
         15.18homestead, and, if the homestead is located in another county, the taxpayer must also
         notify 15.19the assessor of the other county.15.20EFFECTIVE DATE.This section is effective beginning for property taxes payable in 15.212018.15.22    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; and16.6    (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; and16.18    (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 $10,000. 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; or17.23    (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, or abuts a state trail administered by 18.9the Department of Natural Resources, 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, whether the 18.15title to the homestead is held by the corporation, partnership, or limited liability
         company, 18.16or by a shareholder of a corporation who owns the resort, a partner in a partnership
         who 18.17owns the resort, or a member of a limited liability company who owns the resort. 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; and19.29    (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).19.33EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.20.1    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; or21.15    (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 local, state, 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. For purposes of this section, a 21.29local conservation program means a program administered by a town, statutory or home
         21.30rule charter city, or county, including a watershed district, water management organization,
         21.31or soil and water conservation district, in which landowners voluntarily enroll land
         and 21.32receive incentive payments in exchange for use or other restrictions placed on the
         land. 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; or22.7    (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; or22.15    (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; and23.20    (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; and23.27    (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; and24.23    (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; and25.8    (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.25.31EFFECTIVE DATE.This section is effective beginning with assessment year 2018.26.1    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; and26.15    (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:26.19    (1) nonhomestead residential real estate containing one unit, other than seasonal 26.20residential recreational property, and a single family dwelling, garage,;26.21    (2) single-family dwellings including garages and the surrounding one acre of property 26.22on a nonhomestead farm farms classified under subdivision 23, paragraph (b); and26.23    (3) condominium-type storage units having individual legal descriptions that are not
         26.24used for commercial purposes.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; and28.13    (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; or28.21    (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; and29.3    (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; and30.1    (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; and30.9    (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; and30.12    (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; and30.20    (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; and31.14(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, and (vii) property qualifying for classification under clause (3) that is 31.31owned or operated by a congressionally chartered veterans organization has a classification
         31.32rate of one percent. The commissioner of veterans affairs must provide a list of 31.33congressionally chartered veterans organizations to the commissioner of revenue by
         June 31.3430, 2017, and by January 1, 2018, and each year thereafter.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.32.22EFFECTIVE DATE.This section is effective beginning with taxes assessed in 2017 32.23and payable in 2018.32.24    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); and33.1    (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), and a spouse must notify 33.10the assessor if there is a change in the spouse's marital status, ownership of the
         property, or 33.11use of the property as a permanent residence.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 of the first assessment year for 33.34which the exclusion is sought. For an application received after July 1 of any calendar year, 34.1the exclusion shall become effective for the following assessment year. Except as provided 34.2in paragraph (c), the owner of a property that has been accepted for a valuation exclusion
         34.3must notify the assessor if there is a change in ownership of the property or in the
         use of 34.4the property as a homestead.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; and34.14(4) "veteran" has the meaning given the term in section 
         197.447.34.15(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
         34.16under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to
         the benefit 34.17under paragraph (b), clause (2), for eight taxes payable years or until the spouse
         remarries 34.18or sells, transfers, or otherwise disposes of the property if:34.19(1) the spouse files a first-time application within two years of the death of the
         service 34.20member or by June 1, 2019, whichever is later;34.21(2) upon the death of the veteran, the spouse holds the legal or beneficial title
         to the 34.22homestead and permanently resides there;34.23(3) the veteran met the honorable discharge requirements of paragraph (a); and34.24(4) the United States Department of Veterans Affairs certifies that:34.25(i) the veteran met the total (100 percent) and permanent disability requirement under
         34.26paragraph (b), clause (2); or34.27(ii) the spouse has been awarded dependency and indemnity compensation.34.28(l) 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(m) By July 1, the county veterans service officer must certify the disability rating
         of 35.2each veteran receiving the benefit under paragraph (b) to the assessor.35.3EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.35.4    Sec. 17. [274.132] PROPERTY OVERVALUED.35.5    Subdivision 1.Valuation appeals. Notwithstanding any other law to the contrary, when 35.6the value of a property is reduced by a local, special, or county board of appeal
         and 35.7equalization, the state board of equalization, an order from the Minnesota Tax Court,
         or an 35.8abatement to correct an error in valuation, a property owner may appeal the valuation
         of 35.9the property for the taxes payable year immediately preceding the year for which the
         value 35.10is reduced, provided that the valuation of the property for the immediately preceding
         taxes 35.11payable year was not previously appealed. An appeal under this subdivision may only
         be 35.12taken to the Minnesota Tax Court.35.13    Subd. 2.Credit for overpayment of tax.(a) The county auditor shall credit any refund 35.14determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's
         35.15tax payable on the property according to the following schedule:35.16(1) if the refund is less than 25 percent of the total tax payable on the property
         for the 35.17current year, it shall be credited to the tax payable on the property in the succeeding
         taxes 35.18payable year; or35.19(2) if the refund is 25 percent or more of the total tax payable on the property for
         the 35.20current year, beginning in the succeeding taxes payable year, it shall be credited
         to the tax 35.21payable on the property at a rate of 25 percent of the property taxes due per year
         until 35.22credited in full.35.23(b) The credit under this subdivision shall reduce the tax payable to each jurisdiction
         in 35.24proportion to the total tax payable on the property.35.25EFFECTIVE DATE.This section is effective for appeals, orders, and abatements in 35.262018 and thereafter.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 for commercial-industrial 35.31property is $713,050,000 for taxes payable in 2002 2018 and thereafter. 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. The state general levy for seasonal-recreational property 36.6is $43,130,000 for taxes payable in 2018 and thereafter. 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; and36.16(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.8936.19for 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 $100,000.36.22EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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 excluding:36.27(1) the tax capacity attributable to the first $200,000 of market value of each parcel
         of 36.28commercial-industrial property as defined under section 273.13, subdivision 24, clauses
         (1) 36.29and (2);36.30(2) electric generation attached machinery under class 3; and36.31(3) 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. For purposes of this subdivision, the procedures 37.6for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses
         (1) and 37.7(2), shall apply in determining the portion of a property eligible to be considered
         within the 37.8first $200,000 of market value.37.9EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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 rates to each county auditor that shall be used in spreading taxes.37.19EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.37.20    Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision 37.21to read:37.22    Subd. 5.Underserved municipalities distribution.(a) Any municipality that:37.23(1) lies wholly or partially within the metropolitan area as defined under section
         473.121, 37.24subdivision 2, but outside the transit taxing district as defined under section 473.446,
         37.25subdivision 2; and37.26(2) has a net fiscal disparities contribution equal to or greater than eight percent
         of its 37.27total taxable net tax capacity,37.28is eligible for a distribution from the proceeds of the state general levy imposed
         on taxpayers 37.29within the municipality.37.30(b) The distribution is equal to (1) the municipality's net tax capacity tax rate,
         times (2) 37.31the municipality's net fiscal disparities contribution in excess of eight percent
         of its total 38.1taxable net tax capacity; provided, however, that the distribution may not exceed
         the tax 38.2under this section imposed on taxpayers within the municipality.38.3(c) The distribution under this subdivision must be paid to the qualifying municipality
         38.4at the same time taxes are settled under sections 276.09 to 276.111.38.5(d) For purposes of this subdivision, the following terms have the meanings given.38.6(1) "Municipality" means a home rule or statutory city, or a town, except that in
         the case 38.7of a city that lies only partially within the metropolitan area, municipality means
         the portion 38.8of the city lying within the metropolitan area.38.9(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities
         38.10contribution tax capacity minus its distribution net tax capacity.38.11(3) "Total taxable net tax capacity" means the total net tax capacity of all properties
         in 38.12the municipality under section 273.13 minus (i) the net fiscal disparities contribution,
         and 38.13(ii) the municipality's tax increment captured net tax capacity.38.14EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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, or103B.251, 39.17or 103C.331;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; and39.21    (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 Proof of timely payment. The 39.26postmark or registration mark 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 a delivery service's records or other available evidence except that. The 40.2postmark of a private postage meter or internet stamp 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 (a) When the taxes against 40.9any tract or lot exceed $100, one-half of the amount of tax due must be paid prior
         to May 40.1016, and the remaining one-half must be paid prior to the following October 16. If
         either tax 40.11amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead 40.12property until May 31 and four percent on nonhomestead property. If complete payment 40.13has not been made by the first day of the month following either due date, an additional
         40.14penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four 40.15percent until May 31 homestead property  and eight four 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 nonhomestead property is imposed. Thereafter, 40.26for both homestead and nonhomestead property, on the first day of each subsequent month 40.27beginning July 1, up to and including October 1 following through December, 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 the penalty must not exceed eight percent in the case of homestead property, 41.13or 12 percent in the case of nonhomestead property.41.14(b) If the property tax statement was not postmarked prior to April 25, the first
         half 41.15payment due date in paragraph (a) shall be 21 days from the postmark date of the property
         41.16tax statement, and all penalties referenced in paragraph (a) shall be determined with
         regard 41.17to the later due date.41.18(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
         as 41.19specified in paragraph (a) or (b) for the first half payment shall apply to the entire
         amount 41.20of the tax due.41.21(d) For commercial use real property used for seasonal residential recreational purposes
         41.22and classified as class 1c or 4c, and on other commercial use real property classified
         as class 41.233a, provided that over 60 percent of the gross income earned by the enterprise on
         the class 41.243a property is earned during the months of May, June, July, and August, the first
         half 41.25payment is due prior to June 1. For a class 3a property to qualify for the later due
         date, the 41.26owner of the property must attach an affidavit to the payment attesting to compliance
         with 41.27the income requirements of this paragraph.41.28    (e) 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    (f) 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    (g) 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 
         280.39.42.6EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.42.7    Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:42.8    Subd. 2. Abatement of penalty.(a) 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(b) The county treasurer shall abate the penalty provided for late payment of taxes
         in 42.14the current year if the property tax payment is delivered by mail to the county treasurer
         and 42.15the envelope containing the payment is postmarked by the United States Postal Service
         42.16within one business day of the due date prescribed under this section, but only if
         the property 42.17owner requesting the abatement has not previously received an abatement of penalty
         for 42.18late payment of tax under this paragraph.42.19EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and 42.20thereafter.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, and 42.24class 2b rural vacant land, 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, penalties 42.32shall attach as provided in subdivision 1.43.1If 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 15.43.10EFFECTIVE DATE.(a) Except as provided in paragraph (b), this section is effective 43.11beginning with taxes payable in 2018.43.12(b) For property in the northern forest region, the provisions in this section applicable
         43.13to class 2b rural vacant land are effective beginning with taxes payable in 2019.43.14    Sec. 27. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to 43.15read:43.16    Subd. 1b.Conditions.The county auditor may offer on a voluntary basis financial 43.17literacy counseling as part of entering into a confession of judgment. The county
         auditor 43.18may fund the financial literacy counseling using the fee in subdivision 8. The counseling
         43.19shall not be at taxpayer expense.43.20    Sec. 28. Minnesota Statutes 2016, section 281.17, is amended to read:43.21281.17 PERIOD FOROF REDEMPTION.43.22(a) Except for properties described in paragraphs (b) and (c), or properties for which the 43.23period of redemption has been limited under sections 
         281.173 and 
         281.174, the following 43.24periods for period of 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(b) The period of redemption for all lands located in a targeted neighborhood community43.31as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10, 44.1except homesteaded lands as defined in section 
         273.13, subdivision 22, is one year from 44.2the date of sale.44.3(c) 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(d) In determining the period of redemption, the county must use the property's 44.7classification and homestead classification for the assessment year on which the tax
         judgment 44.8is based. Any change in the property's classification or homestead classification
         after the 44.9assessment year on which the tax judgment is based does not affect the period of redemption.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, county, 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, county, 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. [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.45.25If the county auditor provides notice as required by section 281.23, the state, agency,
         45.26political subdivision, or other entity that becomes the fee owner or manager of a
         property 45.27as a result of forfeiture due to nonpayment of real property taxes is not required
         to expend 45.28public funds to maintain any servitude, agreement, easement, or other encumbrance
         affecting 45.29the property. The fee owner or manager of a property may, at its discretion, spend
         public 45.30funds necessary for the maintenance, security, or management of the property.45.31    Sec. 32. [281.70] LIMITED RIGHT OF ENTRY.45.32    Subdivision 1.Limited right of entry.If premises described in a real estate tax judgment 45.33sale are vacant or unoccupied, the county auditor or a person acting on behalf of
         the county 46.1auditor may, but is not obligated to, enter the premises to protect the premises from
         waste 46.2or trespass until the county auditor is notified that the premises are occupied. An
         affidavit 46.3of the sheriff, the county auditor, or a person acting on behalf of the county auditor
         describing 46.4the premises and stating that the premises are vacant and unoccupied is prima facie
         evidence 46.5of the facts stated in the affidavit. If the affidavit contains a legal description
         of the premises, 46.6the affidavit may be recorded in the office of the county recorder or the registrar
         of titles in 46.7the county where the premises are located.46.8    Subd. 2.Authorized actions.(a) The county auditor may take one or more of the 46.9following actions to protect the premises from waste or trespass:46.10(1) install or change locks on doors and windows;46.11(2) board windows; and46.12(3) other actions to prevent or minimize damage to the premises from the elements,
         46.13vandalism, trespass, or other illegal activities.46.14(b) If the county auditor installs or changes locks on premises under paragraph (a),
         the 46.15county auditor must promptly deliver a key to the premises to the taxpayer or any
         person 46.16lawfully claiming through the taxpayer upon request.46.17    Subd. 3.Costs.Costs incurred by the county auditor in protecting the premises from 46.18waste or trespass under this section may be added to the delinquent taxes due. The
         costs 46.19may bear interest to the extent provided, and interest may be added to the delinquent
         taxes 46.20due.46.21    Subd. 4.Scope.The actions authorized under this section are in addition to, and do not 46.22limit or replace, any other rights or remedies available to the county auditor under
         Minnesota 46.23law.46.24    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:46.25    Subd. 4. Sale:; method,; requirements,; effects.(a) 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(b) 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
         
         549.0947.18or 
         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(c) Notwithstanding subdivision 7, a county board may by resolution provide for the
         47.22listing and sale of individual parcels by other means, including through a real estate
         broker. 47.23However, if the buyer under this paragraph could have repurchased a parcel of property
         47.24under section 282.012 or 282.241, that buyer may not purchase that same parcel of
         property 47.25at the sale under this subdivision for a purchase price less than the sum of all taxes,
         47.26assessments, penalties, interest, and costs due at the time of forfeiture computed
         under 47.27section 282.251, and any special assessments for improvements certified as of the
         date of 47.28sale. This subdivision shall be liberally construed to encourage the sale and utilization
         of 47.29tax-forfeited land in order to eliminate nuisances and dangerous conditions and to
         increase 47.30compliance with land use ordinances.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.(a) 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(b) The commissioner of revenue shall issue an appropriate conveyance in fee upon
         the 48.24receipt of a loan commitment or approval from the county auditor. For purposes of
         this 48.25paragraph, "loan commitment" or "loan approval" means a written commitment or approval
         48.26to make a mortgage loan from a lender approved to make mortgage loans in Minnesota.
         48.27The conveyance shall be issued to the county auditor where the land is located. Upon
         receipt 48.28of the conveyance, the county auditor shall hold the conveyance until such time as
         the 48.29conveyance is requested from a title company licensed to do business in Minnesota.
         If a 48.30request for the conveyance is not made within 45 days of the date the conveyance is
         issued 48.31by the commissioner of revenue, the county auditor shall return the conveyance to
         the 48.32commissioner. The title company making the request for the conveyance shall certify
         to the 48.33county auditor that the conveyance is necessary to close the purchase of the subject
         property 48.34within five days of the request. If the conveyance is delivered to the title company
         and the 48.35closing does not occur within five days of the request, the title company shall immediately
         48.36return the conveyance to the county auditor, and upon receipt, the county auditor
         shall return 49.1the deed to the commissioner of revenue. The commissioner of revenue shall destroy
         all 49.2deeds returned by the county auditor pursuant to this subdivision.49.3    Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to 49.4read:49.5    Subd. 13.Online auction.A county board, or a county auditor if the auditor has been 49.6delegated such authority under section 282.135, may sell tax-forfeited lands through
         an 49.7online auction. When an online auction is used to sell tax-forfeited lands, the county
         auditor 49.8shall post a physical notice of the online auction and shall publish a notice of the
         online 49.9auction on its Web site not less than ten days before the online auction begins, in
         addition 49.10to any other notice required.49.11EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that 49.12occur on or after August 1, 2017.49.13    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(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit
         49.29other persons and entities from becoming a purchaser, either personally or as an agent
         or 49.30attorney for another person or entity, of the properties offered for sale under this
         chapter in 49.31the following circumstances: (1) the person or entity owns another property within
         the 49.32county for which there are delinquent taxes owing; (2) the person or entity has held
         a rental 50.1license in the county and the license has been revoked within the last five years;
         (3) the 50.2person or entity has been the vendee of a contract for purchase of a property offered
         for sale 50.3under this chapter, which contract has been canceled within the last five years; or
         (4) the 50.4person or entity owns another property within the county for which there is an unresolved
         50.5housing code violation, including an unpaid charge or fine.50.6(d) A person prohibited from purchasing property under this section must not directly
         50.7or indirectly have another person purchase it on behalf of the prohibited purchaser
         for the 50.8prohibited purchaser's benefit or gain.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(e) Notwithstanding this subdivision, a county may sell property governed by this
         section 51.14upon written authorization from the commissioner of natural resources. Prior to the
         sale or 51.15conveyance of lands under this subdivision, the county board must give notice of its
         intent 51.16to meet for that purpose as provided in section 282.01, subdivision 1.51.17    Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read:51.18282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS 51.19PERMITTED.51.20(a) 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(b) 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(c) 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. If the county board determines that the sale shall take place as an 52.4online auction under section 282.01, subdivision 13, the notice shall specify the
         auction 52.5Web site and the date of the auction.52.6EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that 52.7occur on or after August 1, 2017.52.8    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 six months 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.52.34EFFECTIVE DATE.This section is effective January 1, 2018.53.1    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 of the state for public purposes. Upon the filing of such the list of 53.6forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding 53.7shall be is started to acquire such lands by the state or some municipal subdivision thereof53.8of the state within one year after the filing of such the list of forfeited lands, the county 53.9board shall withdraw said the list and thereafter, if the property was classified as 53.10nonhomestead at the time of forfeiture, the owner shall have one year not more than six 53.11months in which to repurchase.53.12EFFECTIVE DATE.This section is effective January 1, 2018.53.13    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 including 53.27manufactured homes located in a manufactured home community owned by a cooperative
         53.28organized under chapter 308A or 308B, and 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.54.10EFFECTIVE DATE.This section is effective beginning with claims for taxes payable 54.11in 2018.54.12    Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read:54.13473H.09 EARLY TERMINATION.54.14    Subdivision 1.Public emergency. 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    Subd. 2.Death of owner.(a) Within 365 days of the death of an owner, an owner's 54.21spouse, or other qualifying person, the surviving owner may elect to terminate the
         agricultural 54.22preserve and the covenant allowing the land to be enrolled as an agricultural preserve
         by 54.23notifying the authority on a form provided by the commissioner of agriculture. Termination
         54.24of a covenant under this subdivision must be executed and acknowledged in the manner
         54.25required by law to execute and acknowledge a deed.54.26(b) For purposes of this subdivision, the following definitions apply:54.27(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the decedent 54.28was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
         54.29land and engage in farming under section 500.24 that owned the agricultural preserve;
         and54.30(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a 54.31trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm 54.32land under section 500.24 of which the decedent was a partner, shareholder, or member.55.1(c) When an agricultural preserve is terminated under this subdivision, the property
         is 55.2subject to additional taxes in an amount equal to 50 percent of the taxes actually
         levied 55.3against the property for the current taxes payable year. The additional taxes are
         extended 55.4against the property on the tax list for taxes payable in the current year. The additional
         taxes 55.5must be distributed among the jurisdictions levying taxes on the property in proportion
         to 55.6the current year's taxes.55.7EFFECTIVE DATE.This section is effective July 1, 2017.55.8    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; and55.15(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.; and55.18(4) wireless communication installments and related equipment and structure capable
         55.19of providing technology potentially beneficial to farming activities.55.20(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses 55.21(2) and (3), means existing on August 1, 1987.55.22EFFECTIVE DATE.This section is effective the day following enactment.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; or55.28(ii) after the expiration of the time for redemption on foreclosure of a mortgage,
         or after 55.29termination of contract to convey the property; or55.30(iii) after the expiration of the time for redemption on a real estate tax judgment
         sale;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;
         or56.5(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 dispose of the property or 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; and56.31(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.57.21EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and 57.22is effective the day after the Carlton County Board of Commissioners and its chief
         clerical 57.23officer timely complete their compliance with section 645.021, subdivisions 2 and
         3.57.24    Sec. 47. LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP.57.25    Subdivision 1.Membership.(a) The Legislative Property Tax Reform Working Group 57.26is created and consists of the following members:57.27(1) two representatives appointed by the chair of the tax committee of the house of
         57.28representatives;57.29(2) two representatives appointed by the minority leader of the tax committee of the
         57.30house of representatives;57.31(3) two senators appointed by the chair of the senate tax committee; and58.1(4) two senators appointed by the minority leader of the senate tax committee.58.2(b) Any vacancy shall be filled by appointment of the appointing authority for the
         vacating 58.3member.58.4(c) Members shall be appointed by July 1, 2017.58.5    Subd. 2.Duties.The working group must perform the duties described in section 48.58.6    Subd. 3.First meeting; chair.The first appointee of the chair of the house of 58.7representatives tax committee must convene the initial meeting of the working group
         by 58.8July 21, 2017. The members of the working group must elect a chair and vice-chair
         from 58.9the members of the working group at the first meeting.58.10    Subd. 4.Staff.Legislative staff of the house of representatives and senate shall provide 58.11administrative and research support. The working group may request the assistance
         of staff 58.12from the Department of Revenue and Department of Education as necessary to facilitate
         its 58.13work.58.14    Subd. 5.Report.The working group must submit a report by February 15, 2018, to the 58.15chairs and ranking minority members of the committees in the senate and house of 58.16representatives with primary jurisdiction over taxes, presenting two or more alternatives
         58.17for reform of Minnesota's property tax system.58.18    Subd. 6.Sunset.The working group shall sunset the day following the submission of 58.19the report under subdivision 5.58.20EFFECTIVE DATE.This section is effective the day following final enactment.58.21    Sec. 48. PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX 58.22SYSTEM.58.23The Legislative Property Tax Reform Working Group must develop proposals to 58.24restructure Minnesota's property tax system for legislative consideration. The proposals
         58.25must provide for a system that reduces the complexity and cost of Minnesota's property
         tax 58.26system to increase transparency and understanding for taxpayers and assessors while
         58.27minimizing the number of properties that experience severe tax changes. The proposals
         58.28must include, but are not limited to, a reduction in the number of classifications
         and tiers 58.29in the current property tax system. The proposals may include a transition period
         of up to 58.30five years before the final system elements are fully operational. At least one proposal
         must 58.31be developed where the highest estimated net state cost does not exceed $250,000,000
         in 58.32the first year that the proposal is fully phased in. At least one proposal must be
         developed 59.1where the highest estimated net state cost does not exceed $500,000,000 in the first
         year 59.2that the proposal is fully phased in. Each proposal should estimate the administrative
         cost 59.3savings to county governments and to the state government.59.4EFFECTIVE DATE.This section is effective the day following final enactment.59.5    Sec. 49.  REPEALER.59.6Minnesota Statutes 2016, sections 270C.9901; and 281.22, are repealed.59.7EFFECTIVE DATE.This section is effective the day following final enactment.59.8ARTICLE 259.9TAXPAYER EMPOWERMENT59.10    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 may be held on a date set called by 59.15the board and, except as provided in paragraph (g), must be held on the first Tuesday after
         59.16the first Monday in November in either an even-numbered or odd-numbered year. 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 A referendum may be called by the school board and under this subdivision may 59.22be held:59.23    (1) separately, before an election for the issuance of obligations for the project
         under 59.24chapter 475; or59.25    (2) in conjunction with an election for the issuance of obligations for the project
         under 59.26chapter 475; or59.27    (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    (g) Notwithstanding paragraph (a), a referendum to levy the amount needed to finance
         60.26a district's response to a disaster or emergency may be held on a date set by the
         board. 60.27"Disaster" means a situation that creates an actual or imminent serious threat to
         the health 60.28and safety of persons, or a situation that has resulted or is likely to result in
         catastrophic 60.29loss to property or the environment. "Emergency" means an unforeseen combination of
         60.30circumstances that calls for immediate action to prevent a disaster, identified in
         the 60.31referendum, from developing or occurring.60.32EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 60.33referendum authorized on or after that date.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. The ballot must state the cumulative amount per pupil of any local optional 61.14revenue, board-approved referendum authority, and previous voter-approved referendum
         61.15authority, if any, that the board expects to certify for the next school year. 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.62.15The notice must state the cumulative and individual amounts per pupil of any local
         62.16optional revenue, board-approved referendum authority, and voter-approved referendum
         62.17authority, if any, that the board expects to certify for the next school year.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.63.9EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 63.10referendum authorized on or after that date.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. A special election 63.14on a question may only be held by a city on the first Tuesday after the first Monday
         in 63.15November in either an even-numbered or odd-numbered year. A special election on a
         63.16question held by a town may be held on the same day as the annual town meeting or
         on the 63.17first Tuesday after the first Monday in November in either an even-numbered or 63.18odd-numbered year. 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.63.26EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 63.27referendum authorized on or after that date.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. The special election 63.31on a question may only be held on the first Tuesday after the first Monday in November
         of 63.32either an even-numbered or odd-numbered year. 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; or64.14    (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.64.19EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 64.20referendum authorized on or after that date.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 on the first Tuesday after 64.30the first Monday in November in either an even-numbered or odd-numbered year.64.31EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 64.32referendum authorized on or after that date.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 an election or a special election called for 65.10that purpose held on the first Tuesday after the first Monday in November in either an 65.11even-numbered or odd-numbered year, 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.65.17EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 65.18referendum authorized on or after that date.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; and66.24    (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; and67.9    (3) the increase or decrease between the total taxes payable in the current year and
         the 67.10total proposed taxes, expressed as a percentage.; and67.11    (4) a statement at the top of the notice stating the following: if a county's or city's
         67.12proposed levy for next year is greater than its actual levy for the current year,
         the voters 67.13may have the right to petition for a referendum on next year's levy certification,
         according 67.14to Minnesota Statutes, section 275.80, provided that the final levy that the local
         government 67.15certifies in December of this year is also greater than its levy for the current year.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; and67.30    (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; or68.13    (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; and68.24    (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; and69.7    (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.69.13EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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. If a city or county levy is subject to a referendum 69.22under section 275.80 and the referendum was approved by the voters, the maximum levy
         69.23certified under this section is the proposed levy certified under section 275.065.
         If the 69.24referendum was not approved, the maximum amount of levy that a city or county may
         69.25approve under this section is the maximum alternative levy allowed in section 275.80,
         69.26subdivision 2. The city or county may choose to certify a levy less than the allowed
         maximum 69.27amount. 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.25169.30shall 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.70.6EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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 an election after June 8, 1995 June 30, 70.122017, 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(c) An election under this section must be held on the first Tuesday after the first
         Monday 70.24in November of either an even-numbered or odd-numbered year. This paragraph does not
         70.25apply to an election on levying a tax or issuing debt obligations to finance the local
         70.26government's response to a disaster or emergency. An election for these purposes may
         be 70.27held on a date set by the governing body. "Disaster" means a situation that creates
         an actual 70.28or imminent serious threat to the health and safety of persons, or a situation that
         has resulted 70.29or is likely to result in catastrophic loss to property or the environment. "Emergency"
         means 70.30an unforeseen combination of circumstances that calls for immediate action to prevent
         a 70.31disaster, identified in the referendum, from developing or occurring.71.1(c) (d) 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.71.4EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 71.5referendum authorized on or after that date.71.6    Sec. 10. [275.80] LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.71.7    Subdivision 1.Citation.This section shall be known as the "Property Tax Payers' 71.8Empowerment Act."71.9    Subd. 2.Definitions.(a) For purposes of this section, the following terms have the 71.10meanings given.71.11(b) "General levy" means the total levy certified under section 275.07 by the local
         71.12governmental unit, excluding any levy that was approved by the voters at a general
         or special 71.13election.71.14(c) "Local governmental unit" means a county or a statutory or home rule charter city
         71.15with a population of 500 or greater.71.16(d) "Maximum alternative levy" for taxes levied in a current year by a local governmental
         71.17unit means the sum of (1) its nondebt levy certified two years previous to the current
         year, 71.18and (2) the amount of its proposed levy for the current year levied for the purposes
         listed 71.19in section 275.70, subdivision 5, clauses (1) to (5).71.20(e) "Nondebt levy" means the total levy certified under section 275.07 by the local
         71.21governmental unit, minus any amount levied for the purposes listed in section 275.70,
         71.22subdivision 5, clauses (1) to (5).71.23    Subd. 3.Levy increase; reverse referendum authority.If the certified general levy 71.24exceeds the general levy in the previous year, the voters may petition for a referendum
         on 71.25the levy to be certified for the following year. The county auditor must publish information
         71.26on the right to petition for a referendum as provided in section 276.04, subdivisions
         1 and 71.272. If by June 30, a petition signed by the voters equal in number to ten percent of
         the votes 71.28cast in the last general election requesting a vote on the levy is filed with the
         county auditor, 71.29a question on the levy to be certified for the current year must be placed on the
         ballot at 71.30either the general election or at a special election held on the first Tuesday after
         the first 71.31Monday in November of the current calendar year.72.1    Subd. 4.Prohibition against new debt before the election.Notwithstanding any other 72.2provision of law, ordinance, or local charter provision, a county or city must not
         issue any 72.3new debt or obligation from the time the petition for referendum is filed with the
         county 72.4auditor under subdivision 3 until the day after the referendum required under this
         section 72.5is held, except as allowed in this subdivision. Refunding bonds and bonds that have
         already 72.6received voter approval are exempt from the prohibition in this subdivision. For purposes
         72.7of this subdivision, "obligation" has the meaning given in section 475.51, subdivision
         3.72.8    Subd. 5.Ballot question; consequence of vote.(a) The question submitted to the voters 72.9as required under subdivision 3 shall take the following form:72.10"The governing body of ....... has imposed the following property tax levy in the
         last 72.11two years and is proposing the following maximum levy increase for the coming year:

72.12(previous payable year)(current payable year)(coming payable year)72.13Total levyTotal levyMaximum proposed levy72.14$.......$.......$.......

72.15Shall the governing body of ....... be allowed to impose the maximum proposed levy
         72.16listed above?

72.17Yes 
                     							.....
                     						72.18No 
                     							.....

72.19If the majority of votes cast are "no," its maximum allowed property tax levy for
         the 72.20coming year will be reduced to its maximum alternative levy of ......."72.21(b) If a city is subject to this provision, it will provide the county auditor with
         information 72.22on its proposed levy by September 30 necessary to calculate the maximum alternative
         levy 72.23under subdivision 2.72.24(c) If the majority of votes cast on this question are in the affirmative, the levy
         certified 72.25by the local governmental unit under section 275.07 must be less than or equal to
         its proposed 72.26levy under section 275.065. If the question does not receive sufficient affirmative
         votes, 72.27the levy amount that the local governmental unit certifies under section 275.07 in
         the current 72.28year must be less than or equal to its maximum alternative levy as defined in subdivision
         72.292.72.30EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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. If a city or county is subject to a petition of the 73.6voters due to a general levy increase as provided in section 275.80, the published
         notice 73.7must also include the general levy for the current year and the previous year for
         that city or 73.8county along with the following statement:73.9"Because the governing body of ....... increased its nonvoter-approved levy in the
         current 73.10year, the voters in that jurisdiction have the right to petition for a referendum
         under Minnesota 73.11Statutes, section 275.80, on that jurisdiction's levy amount. To invoke the referendum,
         a 73.12petition signed by voters equal to ten percent of the votes cast in the last general
         election 73.13must be filed with the county auditor by June 30 of the current year."73.14EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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 
         270.9174.3to 
         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"; and74.25    (7) the net tax payable in the manner required in paragraph (a).74.26(d) If a city or county is subject to a petition of the voters due to a general levy
         increase 74.27as provided in section 275.80, the tax statement must also include the general levy
         for the 74.28current year and the previous year for that city or county along with the following
         statement:74.29    "Because the governing body of ....... increased its nonvoter-approved levy in the
         current 74.30year, the voters in that jurisdiction have the right to petition for a referendum
         on that 74.31jurisdiction's levy amount under Minnesota Statutes, section 275.80. To invoke the
         74.32referendum, a petition signed by voters equal to ten percent of the votes cast in
         the last 75.1general election on this issue must be filed with the county auditor by June 30 of
         the current 75.2year."75.3    (d) (e) 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.75.11EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.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 specialan election held on the first Tuesday after the first Monday 75.27in November of either an even-numbered or odd-numbered year.75.28EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 75.29referendum authorized on or after that date.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; and76.6    (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 an election held on the first Tuesday 76.21after the first Monday in November of either an even-numbered or odd-numbered year.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.76.24EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 76.25referendum authorized on or after that date.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 an election or special election called for that purpose held on the first Tuesday 77.2after the first Monday in November of either an even-numbered or odd-numbered year. 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.77.6EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 77.7referendum authorized on or after that date.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 an election77.11held on the first Tuesday after the first Monday in November of either an even-numbered
         77.12or odd-numbered year, 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.77.21EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 77.22referendum authorized on or after that date.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 an election held on the first Tuesday after the first Monday in November of either 77.27an even-numbered or odd-numbered year 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.78.4EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 78.5referendum authorized on or after that date.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 an election held on 78.9the first Tuesday after the first Monday in November of either an even-numbered or
         78.10odd-numbered year 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.78.17EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 78.18referendum authorized on or after that date.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 an election held on the first 78.22Tuesday after the first Monday in November of either an even-numbered or odd-numbered
         78.23year 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.78.27EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 78.28referendum authorized on or after that date.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 an election held on the first Tuesday after 79.1the first Monday in November of either an even-numbered or odd-numbered year 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.79.9EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 79.10referendum authorized on or after that date.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, held on the first Tuesday after the first Monday in November of 79.17either an even-numbered or odd-numbered year and has 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.79.22EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 79.23referendum authorized on or after that date.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 an election held therein on 79.28the first Tuesday after the first Monday in November of either an even-numbered or
         79.29odd-numbered year. 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.80.1EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 80.2referendum authorized on or after that date.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 an election held on the first 80.16Tuesday after the first Monday in November of either an even-numbered or odd-numbered
         80.17year, 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.81.6EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 81.7referendum authorized on or after that date.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 held 81.16on the first Tuesday after the first Monday in November of either an even-numbered
         or 81.17odd-numbered year or the annual 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.81.23EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 81.24referendum authorized on or after that date.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 an election before October 1 82.8of the year for which the levy increase is proposed conducted on the first Tuesday after the 82.9first Monday in November of either an even-numbered or odd-numbered year. If approved
         82.10by the voters, the levy increase may take effect no sooner than the next calendar
         year.82.11EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 82.12referendum authorized on or after that date.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 referendum must be held at a general or special an election held on 82.27the first Tuesday after the first Monday in November of either an even-numbered or
         82.28odd-numbered year. 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.82.30EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 82.31referendum authorized on or after that date.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.83.10EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 83.11referendum authorized on or after that date.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 an election held on the 83.28first Tuesday after the first Monday in November of either an even-numbered or 83.29odd-numbered year 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.83.32EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 83.33referendum authorized on or after that date.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 specialan election held on the first Tuesday 84.6after the first Monday in November of either an even-numbered or odd-numbered year 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.84.10EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 84.11referendum authorized on or after that date.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 held 84.17on the first Tuesday after the first Monday in November of either an even-numbered
         or 84.18odd-numbered year 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.84.24EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 84.25referendum authorized on or after that date.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 an election held 85.5on the first Tuesday after the first Monday in November of either an even-numbered
         or 85.6odd-numbered year.85.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 85.8referendum authorized on or after that date.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 an election held on the first Tuesday after 85.12the first Monday in November of either an even-numbered or odd-numbered year 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.85.16EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 85.17referendum authorized on or after that date.85.18    Sec. 33. Minnesota Statutes 2016, section 475.59, is amended to read:85.19475.59 MANNER OF SUBMISSION; NOTICE.85.20    Subdivision 1.Generally; notice. 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    Subd. 2.Election date.An election to approve issuance of bonds under this section held 86.4by a municipality other than a town must be held on the first Tuesday after the first
         Monday 86.5in November of either an even-numbered or odd-numbered year. An election under this
         86.6section held by a town may be held on the same day as the annual town meeting or on
         the 86.7first Tuesday after the first Monday in November of either an even-numbered or 86.8odd-numbered year.86.9    Subd. 3.Special laws.If a referendum on the issuance of bonds or other debt obligations 86.10authorized in a special law is required, it must be held on a date as provided in
         subdivision 86.112, notwithstanding any provision in the special law authorizing the referendum to
         be held 86.12at any other time.86.13    Subd. 4.Exception for disaster or emergency.Subdivisions 2 and 3, and any other 86.14law requiring an election to approve issuance of bonds or other debt obligations to
         be held 86.15on the first Tuesday after the first Monday in November of either an even-numbered
         or 86.16odd-numbered year, do not apply to issuance of bonds or other debt obligations to
         finance 86.17the municipality's response to an emergency or disaster. "Disaster" means a situation
         that 86.18creates an actual or imminent serious threat to the health and safety of persons,
         or a situation 86.19that has resulted or is likely to result in catastrophic loss to property or the environment.
         86.20"Emergency" means an unforeseen combination of circumstances that calls for immediate
         86.21action to prevent a disaster, identified in the referendum, from developing or occurring.86.22EFFECTIVE DATE.This section is effective August 1, 2017, and applies to any 86.23referendum authorized on or after that date.86.24    Sec. 34.  REPEALER.86.25Minnesota Statutes 2016, section 205.10, subdivision 3, is repealed.86.26EFFECTIVE DATE.This section is effective August 1, 2017.86.27ARTICLE 386.28AIDS, CREDITS, AND REFUNDS86.29    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 six equal monthly installments beginning in July. 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.87.9EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.87.10    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 10, 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.87.20EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.87.21    Sec. 3. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.87.22    Subdivision 1.Eligibility.All class 2a, 2b, and 2c property under section 273.13, 87.23subdivision 23, other than property consisting of the house, garage, and immediately
         87.24surrounding one acre of land of an agricultural homestead, is eligible to receive
         the credit 87.25under this section.87.26    Subd. 2.Credit amount.For each qualifying property, the school building bond 87.27agricultural credit is equal to 50 percent of the property's eligible net tax capacity
         multiplied 87.28by the school debt tax rate determined under section 275.08, subdivision 1b.87.29    Subd. 3.Credit reimbursements.The county auditor shall determine the tax reductions 87.30allowed under this section within the county for each taxes payable year and shall
         certify 87.31that amount to the commissioner of revenue as a part of the abstracts of tax lists
         submitted 87.32under section 275.29. Any prior year adjustments shall also be certified on the abstracts
         of 88.1tax lists. The commissioner shall review the certifications for accuracy, and may
         make such 88.2changes as are deemed necessary, or return the certification to the county auditor
         for 88.3correction. The credit under this section must be used to reduce the school district
         net tax 88.4capacity-based property tax as provided in section 273.1393.88.5    Subd. 4.Payment.The commissioner of revenue shall certify the total of the tax 88.6reductions granted under this section for each taxes payable year within each school
         district 88.7to the commissioner of education, who shall pay the reimbursement amounts to each
         school 88.8district as provided in section 273.1392.88.9    Subd. 5.Appropriation.An amount sufficient to make the payments required by this 88.10section is annually appropriated from the general fund to the commissioner of education.88.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.88.12    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 sections88.17273.1384
          and 273.1387; 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, 10, and 13.88.22EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.88.23    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) the school bond credit as provided in section 273.1387;89.4    (8) agricultural credit as provided in section 
         273.1384;89.5    (8) (9) taconite homestead credit as provided in section 
         273.135;89.6    (9) (10) supplemental homestead credit as provided in section 
         273.1391; and89.7    (10) (11) 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.89.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.89.10    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, school building bond agricultural 90.13credit under section 273.1387, 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; and90.16    (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; and91.1    (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; and91.17    (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; or91.31    (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; and92.11    (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; and92.26    (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.92.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.93.1    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 levies; special requirements.(a) 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(b) The district must identify the portion of the school district levy that is levied
         for debt 93.6service at the time the levy is certified under this section. For the purposes of
         this paragraph, 93.7"levied for debt service" means levies authorized under sections 123B.53, 123B.535,
         and 93.8123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
         reductions 93.9under section 475.61, subdivision 4, excluding debt service amounts necessary for
         repayment 93.10of other postemployment benefits under section 475.52, subdivision 6.93.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.93.12    Sec. 8. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:93.13    Subd. 1b. Computation of tax rates.(a) 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(b) The auditor must also determine the school debt tax rate for each school district
         equal 93.20to (1) the school debt service levy certified under section 275.07, subdivision 2,
         divided by 93.21(2) the total net tax capacity of all taxable property within the district.93.22(c) 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 3.93.28EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.93.29    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 
         270.9194.19to 
         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 credits under section sections95.3273.1384 and 273.1387;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"; and95.8    (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.95.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.95.18    Sec. 10. Minnesota Statutes 2016, section 290A.03, subdivision 11, is amended to read:95.19    Subd. 11. Rent constituting property taxes.(a) "Rent constituting property taxes" 95.20means 17 percent a percentage 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(b) The percentage in paragraph (a) is set by major geographic regions as follows:95.26(1) for the city of Minneapolis, 16.5 percent;95.27(2) for the city of St. Paul, 14 percent;95.28(3) for the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis;
         95.29and Ramsey, excluding the city of St. Paul, 15 percent; and95.30(4) for the remainder of the state, 14 percent.96.1EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017 96.2and following years.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 a percentage of the gross rent paid in the preceding 96.19year for the site on which the homestead is located. The percentage equals the percentage 96.20set under subdivision 11 for the geographic region in which the homestead is located.
         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.96.33EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017 96.34and following years.97.1    Sec. 12. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision 97.2to read:97.3    Subd. 20.Additional border city allocations.(a) In addition to the tax reductions 97.4authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for
         tax 97.5reductions to border city enterprise zones in cities located on the western border
         of  the state. 97.6The commissioner shall allocate this amount among cities on a per capita basis. Allocations
         97.7under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
         97.8and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located
         in 97.9the enterprise zone, but only if the municipality determines that the granting of
         the tax 97.10reduction or offset is necessary to retain a business within or attract a business
         to the zone.97.11(b) The allocations under this subdivision do not cancel or expire, but remain available
         97.12until used by the city.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; plus (5) the sparsity adjustment.97.22    (c) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 97.23410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment. 97.24The city revenue need for a city under this paragraph shall not exceed 630 plus the city's 97.25sparsity adjustment.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.98.10EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 98.11and thereafter.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. For a city with a population 98.16less than 10,000, the sparsity adjustment is 200 for any city with an average population
         98.17density less than 30 per square mile, according to the most recent federal census. The sparsity 98.18adjustment is zero for all other cities.98.19EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 98.20and thereafter.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 2018 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 certified aid in the previous 98.25year before any aid adjustment under subdivision 13, 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) (b) 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) (c) 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. The aid gap percentage must be the same for all cities subject 99.4to paragraph (a). Data used in calculating aids to cities under sections 
         477A.011 to 
         477A.01399.5shall be the most recently available data as of January 1 in the year in which the
         aid is 99.6calculated.99.7EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 99.8and thereafter.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 20142018 and thereafter, each city99.11if a city's certified aid before any aid adjustment under subdivision 13 for the previous
         year 99.12is less than its current unmet need, the city shall receive an aid distribution equal to the sum 99.13of (1) its certified aid in the previous year before any aid adjustment under subdivision
         13, 99.14(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision 99.1513.99.16    (b) For aids payable in 20152018 and thereafter, if a city's certified aid before any aid 99.17adjustment under subdivision 13 for the previous year is equal to or greater than
         its current 99.18unmet need, the total aid for a city must not be less than is equal to the greater of (1) its 99.19unmet need plus any aid adjustment under subdivision 13, or (2) 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. No city may have a total aid 99.22amount less than zero.99.23EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 99.24and thereafter.99.25    Sec. 17. [477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR 99.26OR EXPO.99.27If a county, statutory or home rule charter city, or town makes a payment or contribution
         99.28to Expo2023 or any similar organization with the mission of advocating, promoting,
         or 99.29running a world fair or expo in the state of Minnesota in any year, it must report
         that amount 99.30to the commissioner by January 15 of the year following the year in which the payment
         or 99.31contribution is made. The commissioner shall reduce the aid paid to a county, city,
         or town 99.32under section 477A.014 from the amount certified to the county under section 477A.0124;
         99.33to the city under section 477A.013, subdivision 9; or to the town under section 477A.013,
         100.1subdivision 1, in the calendar year following the year in which the payment or contribution
         100.2was made. The reduction is equal to the amount of the payment or contribution, but
         the aid 100.3paid to any county, city, or town may not be less than zero. Any savings in aid payments
         100.4under this section shall stay in the general fund and shall not be redistributed to
         other 100.5counties, cities, or towns.100.6EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 100.7and thereafter.100.8    Sec. 18. [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED 100.9DIVERSION PROGRAM.100.10    Subdivision 1.Penalty for operating an unauthorized diversion program.100.11Notwithstanding any other law to the contrary, a county or city that operated a pretrial
         100.12diversion program that a court determines was not authorized under section 169.999
         or 100.13another statute or law must have its aid under sections 477A.011 to 477A.03 reduced
         by 100.14the amount of fees paid by participants into the program for the years in which the
         program 100.15operated. A court shall report any order that enjoins a county or city from operating
         a pretrial 100.16diversion program to the commissioner as required under subdivision 2. The commissioner
         100.17shall, with the assistance of the state auditor, determine the amount of fees collected
         under 100.18the diversion program and reduce the county program aid paid to a county or the local
         100.19government aid paid to a city by this amount beginning with the first aid payment
         made 100.20after the reduction amount is determined. No aid payment may be less than zero but
         the 100.21amount of the reduction that cannot be made out of that payment shall be applied to
         future 100.22payments until the total amount has been deducted.100.23    Subd. 2.Court challenge to authority to operate a pretrial diversion program.Any 100.24taxpayer may challenge a city or county operation of a pretrial diversion program
         by filing 100.25a declaratory judgment action or seeking other appropriate relief in the district
         court for the 100.26county where the city is located or in any other court of competent jurisdiction.
         If the court 100.27finds that the county or city has exceeded its authority under law in operating the
         pretrial 100.28diversion program, the court must transmit a copy of the court order to the commissioner
         100.29of revenue.100.30EFFECTIVE DATE.This section is effective the day following final enactment and 100.31applies beginning with the second aid payments under Minnesota Statutes, section 477A.015
         100.32in calendar year 2017.101.1    Sec. 19. ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN 101.22017.101.3(a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
         101.4of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids payable 101.5in 2016 if the following conditions are met:101.6(1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids 101.7payable in 2017, is less than its certified aid for aids payable in 2016; and101.8(2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for
         aids 101.9payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
         101.10subdivision 34, for aids payable in 2017.101.11(b) Any adjustment under this section shall be treated as an aid correction under
         101.12Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
         101.13section shall be used as an affected city's 2017 certified aid amount when calculating
         its 101.14formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable
         in 101.152018.101.16EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017 101.17and 2018.101.18    Sec. 20. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.101.19For a city that incorporated on October 13, 2015, and first qualifies for aid under
         101.20Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified
         aid 101.21for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser
         of (1) 101.2225 percent of its certified levy for taxes payable in 2016, or (2) 50 percent of its
         unmet need 101.23as defined in Minnesota Statutes, section 477A.011, subdivision 43.101.24EFFECTIVE DATE.This section is effective for aids payable in 2018.101.25    Sec. 21. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.101.26Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
         101.27shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         Statutes, 101.28section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
         101.293, provided that the state auditor certifies to the commissioner of revenue that it
         received 101.30audited financial statements from the city for calendar year 2012 by December 31,
         2013. 101.31The commissioner of revenue shall make a payment of $37,473.50 with the first payment
         102.1of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from
         the 102.2general fund to the commissioner of revenue in fiscal year 2018 to make this payment.102.3EFFECTIVE DATE.This section is effective the day following final enactment.102.4    Sec. 22. 2014 AID PENALTY FORGIVENESS.102.5(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         of 102.6Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
         102.7that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         that 102.8the state auditor certifies to the commissioner of revenue that the city complied
         with all 102.9reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3,
         for 102.10calendar years 2013 and 2014 by June 1, 2015.102.11(b) The commissioner of revenue shall make payment to each city no later than July
         20, 102.122017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to
         the 102.13commissioner of revenue to make the payments under this section.102.14EFFECTIVE DATE.This section is effective the day following final enactment.102.15    Sec. 23. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.102.16    Subdivision 1.Abatements authorized.(a) Notwithstanding Minnesota Statutes, section 102.17375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant
         an 102.18abatement of local property taxes for taxes payable in 2017, provided that:102.19(1) the property is classified as 1c, 3a (excluding utility real and personal property),
         102.204c(1), 4c(10), or 4c(11);102.21(2) on or before December 31, 2017, the taxpayer submits a written application to
         the 102.22county auditor in the county in which abatement is sought; and102.23(3) the taxpayer meets qualification requirements established in subdivision 3.102.24    Subd. 2.Appeals.An appeal may not be taken to the Tax Court from any order of the 102.25county board made pursuant to the exercise of the discretionary authority granted
         in this 102.26section.102.27    Subd. 3.Qualification requirements.To qualify for abatements under this section, a 102.28taxpayer must:102.29(1) be located within one of the following municipalities surrounding Lake Mille Lacs:103.1(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
         103.2Roosevelt;103.3(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
         of 103.4Malmo, or township of Lakeside; or103.5(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
         of 103.6East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;103.7(2) document a reduction in gross receipts of five percent or greater between two
         103.8successive calendar years beginning in 2010 or later; and103.9(3) be a business in one of the following industries, as defined within the North
         American 103.10Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
         103.11food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
         103.12historical sites, health and personal care, gas station, general merchandise, business
         and 103.13professional membership, movies, or nonstore retailer, as determined by the county
         in 103.14consultation with the commissioner of employment and economic development.103.15    Subd. 4.State general levy in relief area.The counties of Aitkin, Crow Wing, and 103.16Mille Lacs must refund the state general levy levied upon a property classified as
         1c, 3a 103.17(excluding utility real and personal property), or 4c(1) that is located in the area
         described 103.18by subdivision 3, clause (1), for taxes payable in 2017.103.19    Subd. 5.Certification and transfer of funds.(a) By February 1, 2018, a county granting 103.20a refund as required under subdivision 4 must certify the total amount of state general
         tax 103.21refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
         103.22Lacs County must transfer an amount equal to the amount certified under this paragraph
         to 103.23the county making the certification.103.24(b) By February 1, 2018, a county that has received an application for an abatement
         103.25authorized under subdivision 1 must certify to Mille Lacs County the total amount
         of 103.26abatements for which applications have been received and approved. By March 1, 2018,
         103.27Mille Lacs County must transfer an amount equal to the amount certified under this
         paragraph 103.28to the county making the certification. By April 30, 2018, the county must issue refunds
         of 103.29local property tax amounts to qualified taxpayers.103.30    Subd. 6.Commissioner of revenue; appropriation.An amount sufficient to make the 103.31transfers required under subdivision 5 in fiscal year 2018 is appropriated from the
         general 103.32fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
         103.33appropriation.104.1    Subd. 7.Report to legislature.The commissioner of revenue must make a written report 104.2to the chairs and ranking minority members of the legislative committees with jurisdiction
         104.3over taxes stating the amount of abatements and refunds given under this section by
         taxing 104.4jurisdictions by February 1, 2019. The counties must provide the commissioner with
         the 104.5information necessary to make the report.104.6    Subd. 8.Refund eligibility.Only a taxpayer making all payments of property taxes for 104.7taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.104.8EFFECTIVE DATE.This section is effective the day following final enactment.104.9    Sec. 24. SUPPLEMENTAL PAYMENTS FOR OTHER  NATURAL RESOURCES 104.10LAND.104.11    Subdivision 1.Supplemental payments.For aids payable in calendar years 2017 and 104.122018 only, each county must receive a supplemental aid payment equal to 50 cents per
         acre 104.13for other natural resources land, as defined in Minnesota Statutes, section 477A.11,
         104.14subdivision 4, located in the county. The payment shall be made at the same time as
         payments 104.15under Minnesota Statutes, section 477A.13, and the counties shall distribute this
         payment 104.16as if it was part of the aids subject to the general distribution for that year under
         Minnesota 104.17Statutes, section 477A.014, subdivision 1.104.18    Subd. 2.Appropriation.The amount necessary to make the payments under subdivision 104.191 in each year is appropriated from the general fund to the commissioner of revenue
         for 104.20fiscal years 2018 and 2019 only. The appropriations under this section are onetime
         and not 104.21added to the base budget.104.22EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017 104.23and 2018 only.104.24    Sec. 25. 2017 HOMESTEAD CREDIT REFUND.104.25(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for
         the 104.26homestead credit refund allowed under Minnesota Statutes, section 290A.04, subdivision
         104.272, so as to increase the total amount of refunds based on taxes payable in 2018. The
         104.28commissioner must adjust the schedule by proportionately decreasing the percent of
         tax 104.29above the income threshold paid by the claimant, or the "co-payment percentage," for
         each 104.30income bracket in the schedule so that the increase in refunds projected to be paid
         based on 104.31taxes payable in 2018 equals $58,000,000.105.1(b) The amount necessary to pay the additional amounts required under this section
         is 105.2appropriated from the general fund to the commissioner of revenue in fiscal year 2019.105.3EFFECTIVE DATE.This section is effective for refunds based on taxes payable in 105.42018 only.105.5    Sec. 26. 2017 RENTER PROPERTY TAX REFUND.105.6(a) By October 1, 2017, the commissioner of revenue shall adjust the schedule for
         the 105.7property tax refund for renters allowed under Minnesota Statutes, section 290A.04,
         105.8subdivision 2a, so as to increase the total amount of refunds based on taxes payable
         in 2018. 105.9The commissioner must adjust the schedule by:105.10(1) first proportionately decreasing the percent of income, or the "threshold percentage,"
         105.11for each income bracket in the schedule so that the increase in refunds projected
         to be paid 105.12based on rent paid in 2017 equals $21,000,000; and105.13(2) second proportionately decreasing the percent of tax above the income threshold
         105.14paid by the claimant, or the "co-payment percentage," for each income bracket in the
         schedule 105.15so that the total increase in refunds projected to be paid based on rent paid in 2017
         under 105.16this clause and clause (1) equals $42,000,000.105.17(b) The amount necessary to pay the additional amounts required under this section
         is 105.18appropriated from the general fund to the commissioner of revenue in fiscal year 2019.105.19EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017 105.20only.105.21    Sec. 27.  REPEALER.105.22Minnesota Statutes 2016, section 477A.085, is repealed.105.23EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.105.24ARTICLE 4105.25IN PERPETUITY PAYMENTS ON LAND PURCHASES105.26    Section 1. [11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS.105.27    Subdivision 1.Establishment.The State Board of Investment, when requested by a 105.28county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision
         2, 105.29shall invest the funds deposited by the commissioner of revenue, acting as an agent
         on the 105.30board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2,
         in a 106.1special account for that purpose in the combined investment funds established in section
         106.211A.14, subject to the policy and procedures of the State Board of Investment. Use
         of the 106.3funds is restricted to payments to the commissioner of revenue, acting as an agent
         on behalf 106.4of the counties, for distributions to counties under sections 97A.056, subdivision
         1b, and 106.5116P.045, subdivision 2.106.6    Subd. 2.Account maintenance and investment.The commissioner of revenue may 106.7deposit money into the account on behalf of the counties and may withdraw money from
         106.8the account to make distributions to the counties under sections 97A.056, subdivision
         1b, 106.9and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment
         106.10under each section each year for all counties eligible for a payment in that year.
         The 106.11commissioner shall make one withdrawal annually at a time negotiated with the executive
         106.12director of the State Board of Investment, but no later than November 15, to cover
         106.13distributions to counties under section 477A.30, up to the limit allowed under that
         section. 106.14The transactions must be in the manner required by the executive director of the State
         Board 106.15of Investment. Investment earnings must be credited to the account.106.16EFFECTIVE DATE.This section is effective January 1, 2018.106.17    Sec. 2. Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read:106.18    Subd. 1a. Definitions.For the purpose of(a) The definitions in this subdivision apply 106.19to this section and appropriations from the outdoor heritage fund,.106.20(b) "Land acquisition costs" means acquisition coordination costs, costs of engineering
         106.21services, appraisal fees, attorney fees, taxes, assessments required at the time of
         purchase, 106.22onetime trust fund payments under subdivision 1b, and recording fees.106.23(c) "Land-related property taxes" means property taxes collected on behalf of local
         106.24governments providing land-related services.106.25(d) "Local governments providing land-related services" means counties, townships,
         106.26home rule charter and statutory cities, watershed districts under chapter 103D, sanitary
         106.27districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts
         under 106.28sections 115.61 to 115.67.106.29(e) "Recipient" means the entity responsible for deliverables financed by the outdoor
         106.30heritage fund.106.31(f) "Total payment for the land" means the total price paid for the land including
         land 106.32acquisition costs, but excluding any in-kind services provided by nongovernmental
         entities 106.33at no cost to the state.107.1EFFECTIVE DATE.This section is effective July 1, 2017.107.2    Sec. 3. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to 107.3read:107.4    Subd. 1b.Outdoor heritage trust fund payment account; trust fund payments.(a) 107.5An outdoor heritage trust fund account is created in the special revenue fund. The
         State 107.6Board of Investment must ensure the account is invested under section 11A.24. The
         107.7commissioner of management and budget must credit to the account all money appropriated
         107.8to the account and all money earned by the account. The principal of the account and
         any 107.9unexpended earnings must be invested and reinvested by the State Board of Investment.
         107.10Nothing in this section limits the source of contributions to the account. Money in
         the 107.11account must be used only for the purposes of this subdivision.107.12(b) State land acquired in fee simple in whole or in part with money appropriated
         from 107.13the outdoor heritage fund is eligible for a onetime trust fund payment as provided
         under 107.14this subdivision. The percentage of the total acres acquired in any purchase that
         is eligible 107.15for a trust fund payment under this subdivision is equal to the percentage of the
         total payment 107.16for the land funded from outdoor heritage fund revenues. If the percentage of the
         total 107.17payment for the land from the outdoor heritage fund is ten percent or less, the parcel
         is 107.18ineligible for a payment under this subdivision; if the percentage is 90 percent or
         more, the 107.19entire parcel is eligible for the payment under this subdivision. The commissioner
         of natural 107.20resources must certify to the commissioner of revenue and the county in which land
         eligible 107.21for a payment under this section is purchased the total number of acres purchased,
         the total 107.22payment for the land, and the amount of outdoor heritage fund revenues used for the
         purchase. 107.23The trust fund payment is equal to 30 times the land-related property taxes assessed
         on the 107.24eligible portion of the land in the year prior to the year in which the land is acquired.
         If the 107.25land was acquired from a private party that was exempt from paying property taxes,
         the 107.26payments must be based on 30 times the property taxes assessed on comparable land
         in the 107.27year prior to the year in which the land is acquired. By September 1 each year, the
         county 107.28in which the land is acquired must provide the commissioner of revenue with information
         107.29necessary in a form determined by the commissioner of revenue to make this determination
         107.30for all lands acquired for the 12-month period ending on June 30 of that year. The
         107.31commissioner of revenue must make a trust fund payment on behalf of each county on
         the 107.32same date as the first payment under section 273.1384, subdivision 4, each year for
         all land 107.33acquired in that county in the 12-month period ending on June 30 of that year to the
         State 107.34Board of Investment as required under this paragraph. The money so deposited is money
         107.35paid to the counties and may only be withdrawn for the purposes allowed under section
         108.1477A.30. The commissioner of revenue must inform each county by October 15 each year
         108.2of the amount deposited on the county's behalf with the State Board of Investment
         under 108.3this subdivision.108.4(c) The amount necessary to make the payments required under this subdivision is 108.5annually appropriated from the outdoor heritage trust fund payment account to the
         108.6commissioner of revenue for deposit in the account for county joint trust fund payments
         in 108.7section 11A.237.108.8(d) To receive a trust fund payment under this subdivision, a county board must enter
         108.9into an agreement with the State Board of Investment to allow the commissioner of
         revenue 108.10to make deposits and withdrawals on behalf of the county into and out of the county
         joint 108.11trust fund account under section 11A.237.108.12(e) The portion of land receiving a trust fund payment under this subdivision is not
         108.13eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution
         of 108.14withdrawals from the county joint trust fund account under section 477A.30.108.15(f) If the land for which a payment under this subdivision is made is subsequently
         sold 108.16to another entity and is no longer available for the use for which it was purchased,
         the 108.17original amount of the payment for that land under paragraph (b) must be withdrawn
         by the 108.18commissioner of revenue from the account established under section 11A.237 and returned
         108.19to the outdoor heritage fund. If only a portion of the land is sold and no longer
         available for 108.20the use for which it was purchased, the amount of the original trust fund payment
         returned 108.21is reduced proportionately based on the portion of the original purchase that is sold.
         The 108.22holder of the land must inform the commissioner of revenue and the county in which
         the 108.23land is sold of the sale and provide them with any information necessary to calculate
         the 108.24required withdrawal from the account. The withdrawal is made along with withdrawals
         108.25under section 477A.30 in the calendar year after the year in which the land is sold.108.26EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired 108.27with money appropriated on or after that date.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. 109.5The council recommendations each year on appropriation of money from the outdoor heritage
         109.6fund must include amounts adequate to make the required transfers to the outdoor heritage
         109.7trust fund payment account according to subdivision 1b. 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.110.11EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired 110.12with money appropriated on or after that date.110.13    Sec. 5. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to 110.14read:110.15    Subd. 15a.State acquisition of land; restrictions.The state may not use money from 110.16the outdoor heritage fund to acquire in fee simple in whole or in part any land subject
         to 110.17property taxes or any land owned by a nonprofit organization that was subject to property
         110.18taxes before the land's acquisition by the nonprofit organization if (1) subdivision
         1b is void, 110.19or (2) sufficient funds to cover the onetime trust fund payment required under subdivision
         110.201b have not been appropriated or are not available.110.21EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired 110.22with money appropriated on or after that date.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, except 110.25that the definition in subdivision 6 does not apply to section 116P.045.110.26EFFECTIVE DATE.This section is effective July 1, 2017.110.27    Sec. 7. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 110.28read:110.29    Subd. 4a.Land acquisition costs."Land acquisition costs" means acquisition 110.30coordination costs, costs of engineering services, appraisal fees, attorney fees,
         taxes, 111.1assessments required at the time of purchase, payments under section 116P.045, and
         recording 111.2fees.111.3EFFECTIVE DATE.This section is effective July 1, 2017.111.4    Sec. 8. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 111.5read:111.6    Subd. 4b.Land-related property taxes."Land-related property taxes" means property 111.7taxes collected on behalf of local governments providing land-related services.111.8EFFECTIVE DATE.This section is effective July 1, 2017.111.9    Sec. 9. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to 111.10read:111.11    Subd. 4c.Local governments providing land-related services."Local governments 111.12providing land-related services" means counties, townships, home rule charter and
         statutory 111.13cities, watershed districts under chapter 103D, sanitary districts under sections
         442A.01 to 111.14442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67.111.15EFFECTIVE DATE.This section is effective July 1, 2017.111.16    Sec. 10. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision 111.17to read:111.18    Subd. 4d.Total payment for the land."Total payment for the land" means the total 111.19price paid for the land including land acquisition costs, but excluding any in-kind
         services 111.20provided by nongovernmental entities at no cost to the state.111.21EFFECTIVE DATE.This section is effective July 1, 2017.111.22    Sec. 11. [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND 111.23PAYMENT ACCOUNT.111.24    Subdivision 1.Account created.An environment and natural resources trust fund 111.25payment account is created in the special revenue fund. The State Board of Investment
         must 111.26ensure the account is invested under section 11A.24. The commissioner of management
         111.27and budget must credit to the account all money appropriated to the account and all
         money 111.28earned by the account. The principal of the account and any unexpended earnings must
         be 111.29invested and reinvested by the State Board of Investment. Nothing in this section
         limits the 112.1source of contributions to the account. Money in the account must be used only for
         the 112.2purposes of this section.112.3    Subd. 2.Trust fund payment; appropriation.(a) State land acquired in fee simple in 112.4whole or in part with money appropriated from the environment and natural resources
         trust 112.5fund is eligible for a onetime trust fund payment as provided under this subdivision.
         The 112.6percentage of the total acres acquired in any purchase that is eligible for a trust
         fund payment 112.7under this section is equal to the percentage of the total payment for the land funded
         from 112.8environment and natural resources trust fund revenues. If the percentage of the total
         payment 112.9for the land from the environment and natural resources trust fund is ten percent
         or less, the 112.10parcel is ineligible for a payment under this section; if the percentage is 90 percent
         or more, 112.11the entire parcel is eligible for the payment under this section. The commissioner
         of natural 112.12resources must certify to the commissioner of revenue and the county in which land
         eligible 112.13for a payment under this section is purchased the total number of acres purchased,
         the total 112.14payment for the land, and the amount of environmental and natural resources trust
         fund 112.15revenues used for the purchase. The trust fund payment is equal to 30 times the land-related
         112.16property taxes assessed on the eligible portion of the land in the year prior to the
         year in 112.17which the land is acquired. If the land was acquired from a private party that was
         exempt 112.18from paying property taxes, the payments must be based on 30 times the property taxes
         112.19assessed on comparable land in the year prior to the year in which the land is acquired.
         By 112.20September 1 each year, the county in which the land is acquired must provide the 112.21commissioner of revenue with information necessary in a form determined by the 112.22commissioner of revenue to make this determination for all lands acquired for the
         12-month 112.23period ending on June 30 of that year. The commissioner of revenue must make a trust
         fund 112.24payment on behalf of each county on the same date as the first payment under section
         112.25273.1384, subdivision 4, each year for all land acquired in that county in the 12-month
         112.26period ending on June 30 of that year to the State Board of Investment as required
         under 112.27this section. The money so deposited is money paid to the counties and may only be
         112.28withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue
         112.29must inform each county by October 15 each year of the amount deposited on the county's
         112.30behalf with the State Board of Investment under this subdivision.112.31(b) The amount necessary to make the payments required under this subdivision is 112.32annually appropriated from the environment and natural resources trust fund payment
         112.33account to the commissioner of revenue for deposit in the account for county joint
         trust 112.34fund payments in section 11A.237.113.1(c) If the land for which a payment under this subdivision is made is subsequently
         sold 113.2to another entity and is no longer available for the use for which it was purchased,
         the 113.3original amount of the payment for that land under paragraph (a) must be withdrawn
         by the 113.4commissioner of revenue from the account established under section 11A.237 and returned
         113.5to the environment and natural resources trust fund. If only a portion of the land
         is sold and 113.6no longer available for the use for which it was purchased, the amount of the original
         trust 113.7fund payment returned is reduced proportionately based on the portion of the original
         113.8purchase that is sold. The holder of the land must inform the commissioner of revenue
         and 113.9the county in which the land is sold of the sale and provide them with any information
         113.10necessary to calculate the required withdrawal from the account. The withdrawal is
         made 113.11along with withdrawals under section 477A.30 in the calendar year after the year in
         which 113.12the land is sold.113.13    Subd. 3.County requirements.To receive a trust fund payment under this section, a 113.14county board must enter into an agreement with the State Board of Investment to allow
         the 113.15commissioner of revenue to make deposits and withdrawals on behalf of the county into
         113.16and out of the county joint trust fund account under section 11A.237.113.17    Subd. 4.Ineligible for other payments.Land receiving a trust fund payment under this 113.18section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible
         for 113.19distribution of withdrawals from the county joint trust fund account under section
         477A.30.113.20    Subd. 5.State acquisition of land; restrictions.The state may not use money from the 113.21environment and natural resources trust fund to acquire in fee simple in whole or
         in part 113.22any land subject to property taxes or any land owned by a nonprofit organization that
         was 113.23subject to property taxes before the land's acquisition by the nonprofit organization
         if (1) 113.24subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment
         required 113.25under subdivision 2 have not been appropriated or are not available.113.26EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired 113.27with money appropriated on or after that date.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; and114.11(8) administrative expenses subject to the limits in section 
         116P.09.; and114.12(9) payments to the environment and natural resources trust fund payment account as
         114.13required in section 116P.045.114.14EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired 114.15with money appropriated on or after that date.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) The council must recommend an appropriation of money from the environment and 115.2natural resources trust fund adequate to make the required transfers to the environment
         and 115.3natural resources trust fund payment account according to section 116P.045.115.4(f) Money in the trust fund may not be spent except under an appropriation by law.115.5EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired 115.6with money appropriated on or after that date.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, except land acquired on or after July 1, 2017, receiving trust fund payments from
         115.12the outdoor heritage trust fund payment account or the environment and natural resources
         115.13trust fund payment account, 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; and115.16(3) to address the need to manage state lands held in trust for the local taxing districts.115.17EFFECTIVE DATE.This section is effective the day following final enactment.115.18    Sec. 15. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 115.19to read:115.20    Subd. 9.Environment and natural resources trust fund lands.Notwithstanding any 115.21other provision of law to the contrary, parcels or portions of parcels of land purchased
         on 115.22or after July 1, 2017, and eligible for a trust fund payment under section 116P.045
         are not 115.23included in the definitions of the lands described in subdivisions 3 to 7 and are
         excluded 115.24from payments under sections 477A.11 to 477A.14.115.25EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.115.26    Sec. 16. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 115.27to read:115.28    Subd. 10.Outdoor heritage lands.Notwithstanding any other provision of law to the 115.29contrary, parcels or portions of parcels of land purchased on or after July 1, 2017,
         and 115.30eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included
         116.1in the definitions of the lands described in subdivisions 3 to 7 and are excluded
         from 116.2payments under sections 477A.11 to 477A.14.116.3EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.116.4    Sec. 17. [477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS 116.5AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES 116.6TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS.116.7    Subdivision 1.Commissioner of revenue; withdrawals and payments.No later than 116.8November 15 each year, the commissioner of revenue shall make a withdrawal on behalf
         116.9of all eligible counties from the county joint trust fund account established under
         section 116.1011A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified
         by 116.11the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount
         in that 116.12account as of September 1 of that year as determined by the executive director of
         the State 116.13Board of Investment. The commissioner shall distribute the certified withdrawal amounts
         116.14to each county by November 31. If the amount of the withdrawal is less than the total
         116.15certified withdrawal amounts under subdivision 2, the commissioner shall reduce the
         116.16distribution to each county proportionately.116.17    Subd. 2.Certification of needed withdrawal; distribution of funds.(a) Beginning in 116.18calendar year 2018, by September 1 each year, a county for whom a trust fund payment
         has 116.19been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision
         116.202, shall calculate and certify to the commissioner of revenue the amount of trust
         fund 116.21withdrawals needed under this section. The amount of the withdrawal for each parcel
         of 116.22land for which a county received a trust fund payment under either provision is as
         follows:116.23(1) for the year in which a trust fund payment is made to a county for a parcel of
         land, 116.24the withdrawal for that parcel is equal to:116.25(i) the remaining taxes owed to the local governments providing land-related services
         116.26for taxes spread that year for a parcel acquired between January 1 and June 30; or116.27(ii) the amount of taxes paid to the local governments providing land-related services
         116.28on the parcel in the previous year if the parcel was acquired before January 1 of
         the current 116.29year. The county must distribute the amount by December 15 to all local governments
         116.30providing land-related services based on the location of the parcel and the local
         governments' 116.31share of the total tax; and116.32(2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that
         would 116.33be owed based on the appraised value of the land and the taxes assessed by local governments
         117.1providing land-related services on comparable, privately owned adjacent land. For
         purposes 117.2of this subdivision, "appraised value" is determined in the manner described in section
         117.3477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among
         the 117.4local governments providing land-related services on the same basis as if the funds
         were 117.5taxes on the land received in that year. The county treasurer must pay the allocation
         to all 117.6eligible local governments by December 15 of the year in which the withdrawal is made.
         117.7The county's share of the payment must be deposited in the county general fund.117.8(b) If the distribution to a county under subdivision 1 is less than its total withdrawal
         117.9amounts certified under this subdivision, all distributions under paragraph (a) are
         reduced 117.10proportionately.117.11(c) The local governments receiving a payment under this section must use the money
         117.12to fund land-related services. For purposes of this paragraph, "land-related services"
         means 117.13services used to restore, enhance, and protect the land and its fish and wildlife
         habitat and 117.14provide any other public services benefiting the land and users of the land, including
         access 117.15and services to the public accessing and using the land and direct and indirect capital
         and 117.16operating costs for (1) roads, bridges, and trails; (2) public safety and emergency
         response 117.17services; (3) environmental, recreational, and resource development and management;
         and 117.18(4) similar costs.117.19(d) For purposes of this subdivision, "local governments providing land-related services"
         117.20has the meaning given in section 116P.02, subdivision 4c.117.21EFFECTIVE DATE.This section is effective January 1, 2018, and applies to land 117.22acquired with money appropriated on or after July 1, 2017.117.23    Sec. 18. DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR 117.24APPROPRIATIONS MADE FOR FISCAL YEAR 2018.117.25(a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state
         117.26may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase
         117.27land without appropriating sufficient funds to cover the onetime trust fund payment
         required 117.28under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to
         make 117.29the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for
         all 117.30fiscal year 2018 appropriations for land purchases must be deposited in the outdoor
         heritage 117.31trust fund payment account by August 1, 2018, or the restriction on land acquisition
         under 117.32Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition
         117.33authorized with fiscal year 2018 funds that have not yet been acquired.118.1(b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state
         may 118.2appropriate money in fiscal year 2018 from the environment and natural resources trust
         118.3fund to purchase land without appropriating sufficient funds to cover the onetime
         trust fund 118.4payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount
         118.5necessary to make the payment required under Minnesota Statutes, section 116P.045,
         118.6subdivision 2, for all fiscal year 2018 appropriations for land purchases must be
         deposited 118.7in the environment and natural resources trust fund payment account by August 1, 2018,
         or 118.8the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision
         118.95, applies to any land acquisition authorized with fiscal year 2018 funds that have
         not yet 118.10been acquired.118.11EFFECTIVE DATE.This section is effective the day following final enactment.118.12ARTICLE 5118.13TAX INCREMENT FINANCING118.14    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; or118.20(2) it will result in increased employment in the state; or118.21(3) it will result in preservation and enhancement of the tax base of the state; or118.22(4) it satisfies the requirements of a workforce housing project under section 469.176,
         118.23subdivision 4c, paragraph (d).118.24EFFECTIVE DATE.This section is effective for districts for which the request for 118.25certification was made after June 30, 2017.118.26    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;
         and119.24    (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; and120.17    (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(f) Before or at the time of approval of the tax increment financing plan for a district
         to 120.22be used to fund a workforce housing project under section 469.176, subdivision 4c,
         paragraph 120.23(d), the municipality shall make the following findings and set forth in writing the
         reasons 120.24and supporting facts for each determination:120.25(1) the city is located outside of the metropolitan area, as defined in section 473.121,
         120.26subdivision 2;120.27(2) the average vacancy rate for rental housing located in the municipality and in
         any 120.28statutory or home rule charter city located within 15 miles or less of the boundaries
         of the 120.29municipality has been three percent or less for at least the immediately preceding
         two-year 120.30period;120.31(3) at least one business located in the municipality or within 15 miles of the municipality
         120.32that employs a minimum of 20 full-time equivalent employees in aggregate has provided
         a 121.1written statement to the municipality indicating that the lack of available rental
         housing has 121.2impeded the ability of the business to recruit and hire employees; and121.3(4) the municipality and the development authority intend to use increments from the
         121.4district for the development of rental housing to serve employees of businesses located
         in 121.5the municipality or surrounding area.121.6EFFECTIVE DATE.This section is effective for districts for which the request for 121.7certification was made after June 30, 2017.121.8    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; or121.21    (6) space necessary for and related to the activities listed in clauses (1) to (5); or121.22    (7) a workforce housing project that satisfies the requirements of paragraph (d).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(d) A project qualifies as a workforce housing project under this subdivision if:122.6(1) increments from the district are used exclusively to assist in the acquisition
         of 122.7property; construction of improvements; and provision of loans or subsidies, grants,
         interest 122.8rate subsidies, public infrastructure, and related financing costs for rental housing
         122.9developments in the municipality; and122.10(2) the governing body of the municipality made the findings for the project required
         122.11by section 469.175, subdivision 3, paragraph (f).122.12EFFECTIVE DATE.This section is effective for districts for which the request for 122.13certification was made after June 30, 2017.122.14    Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision 122.15to read:122.16    Subd. 5.Income limits; Minnesota Housing Finance Agency challenge program.122.17For a project receiving a loan or grant from the Minnesota Housing Finance Agency
         challenge 122.18program under section 462A.33, the income limits under section 462A.33 are substituted
         122.19for the applicable income limits for the project under subdivision 2 or 3.122.20EFFECTIVE DATE.This section is effective for districts for which the request for 122.21certification was made after June 30, 2017.122.22    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) to (5).123.4EFFECTIVE DATE.This section is effective the day following final enactment.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 revenue123.19revenues derived from tax increments for paid by properties in 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;
         and124.5    (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; and124.8    (3) be used to:124.9    (i) acquire and prepare the site of the housing;124.10    (ii) acquire, construct, or rehabilitate the housing; or124.11    (iii) make public improvements directly related to the housing; or124.12(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;
         124.15or124.16(B) $200,000 for municipalities located in the metropolitan area, as defined in section
         124.17473.121
         , or $125,000 for all other municipalities; and124.18(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.124.29EFFECTIVE DATE.This section is effective the day following final enactment.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 paid by properties 125.3in the district 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; or125.20(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.125.32EFFECTIVE DATE.This section is effective the day following final enactment.126.1    Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:126.2    Subd. 7. Interfund loans.(a) 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    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         is 126.6earliest, 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    (c) The resolution may generally grant to the municipality or the authority the power to 126.10make interfund loans under one or more tax increment financing plans or for one or
         more 126.11districts. The resolution may be adopted before or after the adoption of the tax increment 126.12financing plan or the creation of the tax increment financing district from which
         the advance 126.13or loan is to be repaid.126.14    (d) The terms and conditions for repayment of the loan must be provided in writing and. 126.15The written terms and conditions may be in any form, but must include, at a minimum, the 126.16principal amount, the interest rate, and maximum term. Written terms may be modified or 126.17amended in writing by the municipality or the authority before the latest decertification
         of 126.18any tax increment financing district from which the interfund loan is to be repaid. 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.126.23Loans or advances may be structured as draw-down or line-of-credit obligations of
         the 126.24lending fund.126.25    (e) The authority shall report in the annual report submitted under section 469.175,
         126.26subdivision 6:126.27    (1) the amount of any interfund loan or advance made in a calendar year; and126.28    (2) any amendment of an interfund loan or advance made in a calendar year.126.29EFFECTIVE DATE.This section is effective the day following final enactment and 126.30applies to all districts, regardless of when the request for certification was made.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, economic development district, 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; and127.18    (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; and128.3    (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; and128.7    (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, 4c, 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) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 128.15extended to nine years.128.16    (j) The city may specify in the tax increment financing plan for any district the
         first year 128.17in which it elects to receive increment, which may be up to eight years following
         approval 128.18of the district.128.19    (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph
         (c), 128.20the city may waive any increment received in 2017 and, if so, it shall not be used
         in 128.21determining the duration limit for any district created under this section.128.22    (l) The authority to approve tax increment financing plans to establish tax increment
         128.23financing districts under this section expires on December 31, 2018 March 20, 2023.128.24EFFECTIVE DATE.This section is effective upon approval by the governing body 128.25of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
         section 128.26645.021.128.27    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; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 129.6010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  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 St. Louis River-U.S. Steel Superfund 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 St. Louis River-U.S. Steel Superfund129.31Site (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(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
         129.34law to the contrary, the Seaway Port Authority of Duluth may establish an interfund
         loan 130.1program before approval of the tax increment financing plan for or the establishment
         of the 130.2district authorized by this section. The authority may make loans under this program.
         The 130.3proceeds of the loans may be used for any permitted use of increments under this law
         or 130.4Minnesota Statutes, section  469.176, for the district and may be repaid with increments
         130.5from the district established under this section. This paragraph applies to any action
         130.6authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.130.7EFFECTIVE DATE.This section is effective the day after the governing body of the 130.8city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 130.9subdivision 3.130.10    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 2020.130.17EFFECTIVE DATE.This section is effective on the day following final enactment 130.18without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph
         130.19(a).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 all or a portion of 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, and may 131.30include any additional property necessary to cause the property included in the tax
         increment 131.31financing district to consist of complete parcels.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; and132.3(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; and132.23(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; and133.12(iii) pay for the administrative expenses of the authority allocable to the district;
         and133.13(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(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
         133.21increments from a soil deficiency district to acquire parcels and for other infrastructure
         costs 133.22either inside or outside of the district, but within the project area, if the acquisition
         or 133.23infrastructure is for a qualified development. For purposes of this paragraph, a development
         133.24is a qualified development only if all of the following requirements are satisfied:133.25(1) the city finds, by resolution, that the land acquisition and infrastructure are
         undertaken 133.26primarily to serve the development;133.27(2) the city has a binding, written commitment and adequate financial assurances from
         133.28the developer that the development will be constructed; and133.29(3) the development does not consist of retail trade or housing improvements.134.1EFFECTIVE DATE.This section is effective upon approval by the governing body 134.2of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
         134.3section 645.021.134.4    Sec. 13. CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.134.5For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the 134.6city of Anoka's Greens of Anoka redevelopment tax increment financing district is
         deemed 134.7to be certified on June 29, 2012, rather than its actual certification date of July
         2, 2012, and 134.8the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply
         as if 134.9the district were certified on that date.134.10EFFECTIVE DATE.This section is effective upon approval by the governing body 134.11of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
         134.12645.021, subdivisions 2 and 3.134.13    Sec. 14. CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.134.14Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         1b, 134.15or any other law to the contrary, the city of Coon Rapids may collect tax increment
         from 134.16District 6-1 Port Riverwalk through December 31, 2038.134.17EFFECTIVE DATE.This section is effective upon compliance by the governing bodies 134.18of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
         134.19the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         134.20subdivision 3.134.21    Sec. 15. CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.134.22The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         134.23must be undertaken within a five-year period from the date of certification of a tax
         increment 134.24financing district, is considered to be met for Tax Increment Financing District No.
         1-12 134.25(Gateway North), administered by the Cottage Grove Economic Development Authority,
         134.26if the activities are undertaken prior to January 1, 2017.134.27EFFECTIVE DATE.This section is effective upon compliance by the chief clerical 134.28officer of the governing body of the city of Cottage Grove with the requirements of
         Minnesota 134.29Statutes, section 645.021, subdivisions 2 and 3.135.1    Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.135.2Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
         3, 135.3the chief clerical officer of the city of Edina may file with the secretary of state
         certificate 135.4of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017,
         and, if 135.5the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
         135.6subdivision 3, are otherwise complied with, the special law is deemed approved, and
         all 135.7actions taken by the city before the effective date of this section in reliance on
         Laws 2014, 135.8chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308,
         article 135.96, section 8, and this act.135.10EFFECTIVE DATE.This section is effective the day following final enactment without 135.11local approval as an amendment to the provisions of Laws 2014, chapter 308, article
         6, 135.12section 8.135.13    Sec. 17. CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.135.14For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the 135.15city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment
         135.16Financing District is deemed to be certified on June 29, 2012, rather than its actual
         135.17certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions
         135.183 and 4, apply as if the district were certified on that date.135.19EFFECTIVE DATE.This section is effective upon approval by the governing body 135.20of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
         135.21645.021, subdivisions 2 and 3.135.22    Sec. 18. CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF 135.23DISTRICT.135.24Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         law 135.25to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in and 135.26for the city of Richfield may elect to extend the duration limit of the redevelopment
         tax 135.27increment financing district known as the Cedar Avenue Tax Increment Financing District
         135.28established by Laws 2005, chapter 152, article 2, section 25, by ten years.135.29EFFECTIVE DATE.This section is effective upon compliance by the city of Richfield, 135.30Hennepin County, and Independent School District No. 280 with the requirements of
         135.31Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2
         and 3.136.1    Sec. 19. CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT.136.2The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         136.3must be undertaken within a five-year period from the date of certification of a tax
         increment 136.4financing district, are considered to be met for the Lyndale Gardens Tax Increment
         Financing 136.5District established by the city of Richfield and the housing and redevelopment authority
         136.6in and for the city of Richfield if the activities are undertaken within eight years
         from the 136.7date of certification.136.8EFFECTIVE DATE.This act is effective upon the city of Richfield's compliance with 136.9the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.136.10    Sec. 20. CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT.136.11Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176,
         136.12the city of Rochester may spend the proceeds from the sale or lease of any property
         purchased 136.13with tax increments derived from tax increment financing district number 36 (Bioscience
         136.14Project) for the costs of operating, maintaining, and improving properties acquired
         with tax 136.15increments from district number 36, including funding and maintaining reserves for
         capital 136.16or operating expenses. Following the close of the third calendar year after decertification
         136.17of that district, any remaining amounts of the proceeds are not subject to restrictions
         that 136.18apply to tax increments under Minnesota Statutes, sections 469.174 to 469.1794.136.19EFFECTIVE DATE.This section is effective the day following final enactment without 136.20local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a).136.21    Sec. 21. CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT 136.22INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.136.23Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing
         body 136.24of the South St. Paul Economic Development Authority, successor to the Housing and
         136.25Redevelopment Authority in and for the city of South St. Paul, may retroactively approve
         136.26a previously established interfund loan for the 4th Avenue Village Tax Increment District
         136.27in the city of South St. Paul if the governing body adopts a resolution approving
         that loan 136.28by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178,
         136.29subdivision 7, are otherwise complied with, the interfund loan authorization is deemed
         to 136.30satisfy Minnesota Statutes, section 469.178, subdivision 7.136.31EFFECTIVE DATE.This section is effective without local approval under Minnesota 136.32Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final
         enactment.137.1    Sec. 22. CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT.137.2For purposes of the Elmwood Village Tax Increment Financing District in the city of
         137.3St. Louis Park, including during the duration extension authorized by Laws 2009, chapter
         137.488, article 5, section 19, the period under Minnesota Statutes, section 469.1763,
         subdivision 137.53, is extended through December 31, 2019, and calendar year 2020 is the first year
         to which 137.6Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted
         137.7percentage of increments that may be expended under Minnesota Statutes, section 469.1763,
         137.8subdivision 2, on activities outside of the district is increased to 45 percent for
         the district.137.9EFFECTIVE DATE.This section is effective upon compliance by the governing body 137.10of the city of St. Louis Park with the requirements of Minnesota Statutes, section
         645.021, 137.11subdivision 3.137.12    Sec. 23. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.137.13(a) For purposes of computing the duration limits under Minnesota Statutes, section
         137.14469.176, subdivision 1b, the housing and redevelopment authority of the city of St.
         Paul 137.15may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
         137.16District. This authority is limited to the first four years of increment or increments
         derived 137.17from taxes payable in 2023, whichever occurs first.137.18(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
         of 137.19applying any limits based on when the district was certified under Minnesota Statutes,
         137.20section 469.176, subdivision 6, or 469.1763, the date of certification for the district
         is deemed 137.21to be January 2 of the property tax assessment year for which increment is first received
         137.22under the waiver.137.23EFFECTIVE DATE.This section is effective July 1, 2017, without local approval 137.24under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).137.25    Sec. 24. WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT 137.26TIF DISTRICT; SPECIAL RULES.137.27(a) If Washington County elects, upon the adoption of a tax increment financing plan
         137.28for a district, the rules under this section apply to one or more tax increment financing
         137.29districts established by the county or the community development agency of the county.
         137.30The area within which the tax increment districts may be created is located in the
         city of 137.31Newport and is south of marked Interstate Highway 494, north of 15th Street extended
         to 137.32the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
         138.161 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock
         Crossing 138.2Project Area" or "project area."138.3(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
         138.4section 469.174, subdivision 10, do not apply to the parcels identified by parcel
         identification 138.5numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, 138.62602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, 138.7260282244024, and 2602822440023, which are deemed substandard for the purpose of 138.8qualifying the district as a redevelopment district.138.9(c) Increments spent outside a district shall only be spent within the project area
         and on 138.10costs described in Minnesota Statutes, section 469.176, subdivision 4j.138.11(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
         138.12subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived
         from tax 138.13increments paid by properties in any district, measured over the life of the district,
         may be 138.14expended on activities outside the district but within the project area. The five-year
         rule 138.15under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit
         is nine 138.16years.138.17(e) The authority to approve a tax increment financing plan and to establish a tax
         138.18increment financing district under this section expires December 31, 2027.138.19(f) The use of revenues for decertification in Minnesota Statutes, section 469.1763,
         138.20subdivision 4, does not apply to the project area.138.21EFFECTIVE DATE.This section is effective and shall retroactively include the 138.22redevelopment district in the project area approved by Washington County on November
         138.238, 2016, upon approval by the governing body of the city of Newport and Washington
         138.24County and upon compliance by the county with Minnesota Statutes, section 645.021,
         138.25subdivision 3.138.26    Sec. 25. CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.138.27(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
         138.28activities must be undertaken within a five-year period from the date of certification
         of a 138.29tax increment financing district, are considered to be met for Tax Increment Financing
         138.30District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments
         from 138.31the district are expended for any project contemplated by the original tax increment
         financing 138.32plan for the district, including, without limitation, a municipal parking ramp within
         the 138.33district.139.1(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not
         139.2apply to the district if the revenues derived from tax increment from the district
         are expended 139.3for any project contemplated by the original tax increment financing plan for the
         district, 139.4including, without limitation, a municipal parking ramp within the district.139.5EFFECTIVE DATE.This section is effective upon compliance by the chief clerical 139.6officer of the governing body of the city of Wayzata with the requirements of Minnesota
         139.7Statutes, section 645.021, subdivisions 2 and 3.139.8ARTICLE 6139.9LOCAL OPTION SALES AND USE TAXES139.10    Section 1. [471.9998] MERCHANT BAGS; PROHIBITION ON FEE OR TAX.139.11Notwithstanding any other provision of law, no political subdivision may impose or
         139.12require the imposition of any fee or tax, other than a local sales tax subject to
         section 139.13297A.99, upon the use of paper, plastic, or reusable bags for packaging of any item
         or good 139.14purchased from a merchant, itinerant vendor, or peddler.139.15EFFECTIVE DATE.This section is effective May 31, 2017. Ordinances existing on 139.16the effective date of this section that would be prohibited under this section are
         invalid as 139.17of the effective date of this section.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 14th Avenue West and the area south of and including Skyline Parkway.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 14th Avenue West and the area south of and including Skyline Parkway, 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.140.21EFFECTIVE DATE.This section is effective the day after the governing body of the 140.22city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 140.23subdivisions 2 and 3.140.24    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 14th Avenue West and the area south of and including Skyline 141.11Parkway.141.12EFFECTIVE DATE.This section is effective the day after the governing body of the 141.13city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 141.14subdivisions 2 and 3.141.15    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.(a) 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    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         141.33by voters at the November 8, 2016, general election, the city may by ordinance also
         use 141.34revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
         142.1plus associated bond costs, to pay all or a portion of the expenses of the following
         capital 142.2projects:142.3    (1) construction and improvements to regional recreational facilities including existing
         142.4hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
         municipal 142.5swimming pool including improvements to make the pool compliant with the Americans
         142.6with Disabilities Act, and indoor regional athletic facilities;142.7    (2) improvements to flood control and the levee system;142.8(3) water quality improvement projects in Blue Earth and Nicollet Counties;142.9(4) expansion of the regional transit building and related multimodal transit 142.10improvements;142.11(5) regional public safety and emergency communications improvements and equipment;
         142.12and142.13(6) matching funds for improvements to publicly owned regional facilities including
         a 142.14historic museum, supportive housing, and a senior center.142.15EFFECTIVE DATE.This section is effective the day after the governing body of the 142.16city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
         142.17645.021, subdivisions 2 and 3.142.18    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 at the earlier of when revenues are sufficient to pay off the bonds, including 142.24interest and all other associated bond costs authorized under subdivision 5, or  December 142.2531, 2022 2038.142.26EFFECTIVE DATE.This section is effective the day following final enactment without 142.27local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.142.28    Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:142.29    Subd. 5. Bonds.(a) 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    (b) The city of Mankato may issue general obligation bonds of the city in an amount
         not 143.7to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
         without 143.8election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or 143.9a tax to pay them. The debt represented by bonds under this paragraph shall not be
         included 143.10in computing any debt limitations applicable to the city of Mankato, and the levy
         of taxes 143.11required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 143.12and shall not be subject to any levy limitation or be included in computing or applying
         any 143.13levy limitation applicable to the city. The city may use tax revenue in excess of
         one year's 143.14principal interest reserve for intended annual bond payments to pay all or a portion
         of the 143.15cost of capital improvements authorized in subdivision 3.143.16EFFECTIVE DATE.This section is effective the day following final enactment without 143.17local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.143.18    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; and143.30    (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(c) As approved by the voters at the November 8, 2016, general election, the proceeds
         144.5under this section may also be used to meet the costs of debt service payments for
         144.6construction of the Hermantown Wellness Center.144.7EFFECTIVE DATE.This section is effective the day after the governing body of the 144.8city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
         section 144.9645.021, subdivisions 2 and 3.144.10    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 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
         144.14first determines that sufficient funds have been received from the tax to fund the
         costs, 144.15including bonds and associated bond costs for the uses specified in subdivision 1. 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.144.18EFFECTIVE DATE.This section is effective the day following final enactment without 144.19local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.144.20    Sec. 9. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:144.21    Subd. 3. Use of revenues.(a) 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    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         144.32by the voters at the November 8, 2016, general election, the city of New Ulm may by
         145.1ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to
         a 145.2maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the
         expenses 145.3of the following capital projects:145.4    (1) constructing an indoor water park and making safety improvements to the existing
         145.5recreational center pool;145.6    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;145.7    (3) constructing a winter multipurpose dome;145.8    (4) making improvements to Johnson Park Grandstand; and145.9    (5) making improvements to the entrance road and parking at Hermann Heights Park.145.10EFFECTIVE DATE.This section is effective the day after the governing body of the 145.11city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         145.12645.021, subdivisions 2 and 3.145.13    Sec. 10. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
         145.14to read:145.15    Subd. 4a.Bonding authority; additional use and extension of tax.As approved by 145.16the voters at the November 8, 2016, general election, and in addition to the bonds
         issued 145.17under subdivision 4, the city of New Ulm may issue general obligation bonds of the
         city in 145.18an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph
         (b). 145.19The debt represented by bonds under this subdivision shall not be included in computing
         145.20any debt limitations applicable to the city of New Ulm, and the levy of taxes required
         by 145.21Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
         and shall 145.22not be subject to any levy limitation or be included in computing or applying any
         levy 145.23limitation applicable to the city.145.24EFFECTIVE DATE.This section is effective the day after the governing body of the 145.25city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         145.26645.021, subdivisions 2 and 3.145.27    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, including the additional use of revenues under 146.1subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
         146.2election, and to prepay or retire at maturity the principal, interest, and premium due on
         any 146.3bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. 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.146.7EFFECTIVE DATE.This section is effective the day after the governing body of the 146.8city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         146.9645.021, subdivisions 2 and 3.146.10    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.(a) 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(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
         146.20law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
         146.21sales and use tax of up to one-half of one percent if approved by the voters at the
         first general 146.22election held after the date of final enactment of this act. The revenues received
         from the 146.23additional tax must be used for the purposes specified in subdivision 3, paragraph
         (b).146.24EFFECTIVE DATE.This section is effective the day after the governing body of the 146.25city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 146.26subdivisions 2 and 3.146.27    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 water quality 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. The Shell Rock River Watershed 147.5District shall appear before the city of Albert Lea City Council on a biannual basis
         to present 147.6a report of its activities, expenditures, and intended uses of the city sales tax
         revenue.147.7EFFECTIVE DATE.This section is effective the day after the governing body of the 147.8city of Albert Lea and its chief clerical officer comply with Minnesota Statutes,
         section 147.9645.021, subdivisions 2 and 3.147.10    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 30 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 $30,000,000. Any funds remaining after 147.16completion of the projects may be placed in the general fund of the city.147.17EFFECTIVE DATE.This section is effective the day after the governing body of the 147.18city of Albert Lea and its chief clerical officer comply with Minnesota Statutes,
         section 147.19645.021, subdivisions 2 and 3.147.20    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, including construction 148.2of indoor regional athletic facilities;148.3    (3) expansion of the North Mankato Taylor Library;148.4    (4) riverfront redevelopment; and148.5    (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 $15,000,000 plus any associated bond costs.148.8    Subd. 2a.Authorization to extend the tax.Notwithstanding Minnesota Statutes, section 148.9297A.99, subdivision 3, the North Mankato city council may, by resolution, extend
         the tax 148.10authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated
         148.11bond costs, to fund the projects in subdivision 2 as approved by the voters at the
         November 148.128, 2016, general election.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(b) The city of North Mankato, pursuant to approval of the voters at the November
         8, 148.202016, referendum extending the tax fee to provide additional revenue to be spent for
         the 148.21projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
         148.22475, to pay capital and administrative expenses for those projects in an amount that
         does 148.23not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes,
         148.24section 475.58, is not required.148.25    (b) (c) 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 at the earlier of December 31, 2038, or when revenues from the taxes first 148.33equal or exceed $15,000,000 plus the additional amount needed to pay costs related
         to 149.1issuance of bonds under subdivision 3, including interest. 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.149.5EFFECTIVE DATE.This section is effective the day after the governing body of the 149.6city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section 149.7645.021, subdivisions 2 and 3.149.8    Sec. 16. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.149.9    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 149.10section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 149.11charter, and as approved by the voters at a special election on March 7, 2016, the
         city of 149.12East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent
         for 149.13the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 149.14provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         149.15collection, and enforcement of the tax authorized under this subdivision.149.16    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 149.17under subdivision 1 must be used by the city of East Grand Forks to pay the costs
         of 149.18collecting and administering the tax and to finance the capital and administrative
         costs of 149.19improvement to the city public swimming pool. Authorized expenses include, but are
         not 149.20limited to, paying construction expenses related to the renovation and the development
         of 149.21these facilities and improvements, and securing and paying debt service on bonds issued
         149.22under subdivision 3 or other obligations issued to finance improvement of the public
         149.23swimming pool in the city of East Grand Forks149.24    Subd. 3.Bonding authority.(a) The city of East Grand Forks may issue bonds under 149.25Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         149.26authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 149.27subdivision may not exceed $2,820,000, plus an amount to be applied to the payment
         of 149.28the costs of issuing the bonds. The bonds may be paid from or secured by any funds
         available 149.29to the city of East Grand Forks, including the tax authorized under subdivision 1.
         The 149.30issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
         275.60 149.31and 275.61.149.32(b) The bonds are not included in computing any debt limitation applicable to the
         city 149.33of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
         to 150.1pay principal and interest on the bonds is not subject to any levy limitation. A separate
         150.2election to approve the bonds under Minnesota Statutes, section 475.58, is not required.150.3    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the later 150.4of: (1) five years after the tax is first imposed; or (2) when the city council determines
         that 150.5$2,820,000 has been received from the tax to pay for the cost of the projects authorized
         150.6under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the 150.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         150.8after payment of all such costs and retirement or redemption of the bonds shall be
         placed 150.9in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 150.10time if the city so determines by ordinance.150.11EFFECTIVE DATE.This section is effective the day after the governing body of the 150.12city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
         150.13section 645.021, subdivisions 2 and 3.150.14    Sec. 17. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.150.15    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 150.16section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 150.17charter, and as approved by the voters at the general election of November 8, 2016,
         the city 150.18of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent
         for 150.19the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 150.20provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         150.21collection, and enforcement of the tax authorized under this subdivision.150.22    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 150.23under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting
         and 150.24administering the tax and to finance the capital and administrative costs of constructing
         and 150.25funding recreational amenities, trails, and a community center. The total that may
         be raised 150.26from the tax to pay for these projects is limited to $15,000,000, plus the costs related
         to the 150.27issuance and paying debt service on bonds for these projects.150.28    Subd. 3.Bonding authority.(a) The city of Fairmont may issue bonds under Minnesota 150.29Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in 150.30subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 150.31not exceed $15,000,000, plus an amount to be applied to the payment of the costs of
         issuing 150.32the bonds. The bonds may be paid from or secured by any funds available to the city
         of 150.33Fairmont, including the tax authorized under subdivision 1. The issuance of bonds
         under 150.34this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.151.1(b) The bonds are not included in computing any debt limitation applicable to the
         city 151.2of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 151.3and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 151.4the bonds under Minnesota Statutes, section 475.58, is not required.151.5    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 151.6earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council
         determines 151.7that $15,000,000, plus an amount sufficient to pay the costs related to issuing the
         bonds 151.8authorized under subdivision 3, including interest on the bonds, has been received
         from the 151.9tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 151.10after payment of all such costs and retirement or redemption of the bonds shall be
         placed 151.11in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 151.12time if the city so determines by ordinance.151.13EFFECTIVE DATE.This section is effective the day after the governing body of the 151.14city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
         151.15645.021, subdivisions 2 and 3.151.16    Sec. 18. CITY OF FERGUS FALLS; TAXES AUTHORIZED.151.17    Subdivision 1.Sales and use tax authorized.Notwithstanding Minnesota Statutes, 151.18section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or
         city 151.19charter, and as approved by the voters at the November 8, 2016, general election,
         the city 151.20of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of
         one 151.21percent for the purposes specified in subdivision 2. Except as otherwise provided
         in this 151.22section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         151.23administration, collection, and enforcement of the tax authorized under this subdivision.151.24    Subd. 2.Use of sales and use tax revenues.The revenues from the tax authorized under 151.25subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting
         and 151.26administering the tax and securing and paying debt service on bonds issued to finance
         all 151.27or part of the costs of the expansion and betterment of the Fergus Falls Public Library
         located 151.28at 205 East Hampden Avenue in the city of Fergus Falls.151.29    Subd. 3.Bonding authority.(a) The city of Fergus Falls may issue bonds under 151.30Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
         151.31authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 151.32subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs
         of 151.33issuing the bonds. The bonds may be paid from or secured by any funds available to
         the 152.1city of Fergus Falls, including the tax authorized under subdivision 1. The issuance
         of bonds 152.2under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.152.3(b) The bonds are not included in computing any debt limitation applicable to the
         city, 152.4and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
         and 152.5interest on the bonds is not subject to any levy limitation. A separate election to
         approve 152.6the bonds under Minnesota Statutes, section 475.58, is not required.152.7    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 152.8earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council
         determines 152.9that $9,800,000 has been received from the tax to pay for the cost of the project
         authorized 152.10under subdivision 2, plus an amount sufficient to pay the costs related to the issuance
         of the 152.11bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         152.12after payment of all such costs and retirement or redemption of the bonds shall be
         placed 152.13in the general fund of the city. The tax imposed under subdivision 1 may expire at
         any 152.14earlier time if the city so determines by ordinance.152.15EFFECTIVE DATE.This section is effective the day after the governing body of the 152.16city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes,
         section 152.17645.021, subdivisions 2 and 3.152.18    Sec. 19. CITY OF MOOSE LAKE; TAXES AUTHORIZED.152.19    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 152.20section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city
         charter, 152.21as approved by the voters at the November 6, 2012, general election, the city of Moose
         Lake 152.22may impose, by ordinance, a sales and use tax of up to one-half of one percent for
         the 152.23purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 152.24provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         152.25collection, and enforcement of the tax authorized under this subdivision.152.26    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 152.27under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
         152.28and administering the tax and to finance the costs of: (1) improvements to the city's
         park 152.29system; (2) street and related infrastructure improvements; and (3) municipal arena
         152.30improvements. Authorized costs include construction and engineering costs and associated
         152.31bond costs.152.32    Subd. 3.Bonding authority.The city of Moose Lake may issue bonds under Minnesota 152.33Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in 153.1subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 153.2not exceed $3,000,000, plus an amount to be applied to the payment of the costs of
         issuing 153.3the bonds. The bonds may be paid from or secured by any funds available to the city
         of 153.4Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds
         under 153.5this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.153.6The bonds are not included in computing any debt limitation applicable to the city
         of 153.7Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 153.8and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 153.9the bonds under Minnesota Statutes, section 475.58, is not required.153.10    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 153.11earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines 153.12that $3,000,000 has been received from the tax to pay for the cost of the projects
         authorized 153.13under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the 153.14bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         153.15after payment of all such costs and retirement or redemption of the bonds shall be
         placed 153.16in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 153.17time if the city so determines by ordinance.153.18EFFECTIVE DATE.This section is effective the day after the governing body of the 153.19city of Moose Lake and its chief clerical officer comply with Minnesota Statutes,
         section 153.20645.021, subdivisions 2 and 3.153.21    Sec. 20. CITY OF NEW LONDON; TAX AUTHORIZED.153.22    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 153.23section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 153.24charter, and as approved by the voters at the general election of November 8, 2016,
         the city 153.25of New London may impose, by ordinance, a sales and use tax of one-half of one percent
         153.26for the purposes specified in subdivision 2. Except as otherwise provided in this
         section, 153.27the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         153.28collection, and enforcement of the tax authorized under this subdivision.153.29    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 153.30under subdivision 1 must be used by the city of New London to pay the costs of collecting
         153.31and administering the tax and to finance the capital and administrative costs of the
         following 153.32projects:153.33(1) construction and equipping of a new library and community room;154.1(2) construction of an ambulance bay at the fire hall; and154.2(3) improvements to the New London Senior Citizen Center.154.3The total that may be raised from the tax to pay for these projects is limited to
         $872,000 154.4plus the costs related to the issuance and paying debt service on bonds for these
         projects.154.5    Subd. 3.Bonding authority.(a) The city of New London may issue bonds under 154.6Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         154.7authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 154.8subdivision may not exceed $872,000, plus an amount to be applied to the payment of
         the 154.9costs of issuing the bonds. The bonds may be paid from or secured by any funds available
         154.10to the city of New London, including the tax authorized under subdivision 1. The issuance
         154.11of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
         and 154.12275.61.154.13(b) The bonds are not included in computing any debt limitation applicable to the
         city 154.14of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to
         pay 154.15principal and interest on the bonds is not subject to any levy limitation. A separate
         election 154.16to approve the bonds under Minnesota Statutes, section 475.58, is not required.154.17    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 154.18earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines 154.19that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
         154.20authorized under subdivision 3, including interest on the bonds, has been received
         from the 154.21tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 154.22after payment of all such costs and retirement or redemption of the bonds shall be
         placed 154.23in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 154.24time if the city so determines by ordinance.154.25EFFECTIVE DATE.This section is effective the day after the governing body of the 154.26city of New London and its chief clerical officer comply with Minnesota Statutes,
         section 154.27645.021, subdivisions 2 and 3.154.28    Sec. 21. CITY OF SLEEPY EYE; LODGING TAX.154.29Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
         154.30ordinance, or city charter, the city council for the city of Sleepy Eye may impose,
         by 154.31ordinance, a tax of up to two percent on the gross receipts subject to the lodging
         tax under 154.32Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         154.33Minnesota Statutes, section 469.190, and the total tax imposed under that section
         and this 155.1provision must not exceed five percent. Revenue from the tax imposed under this section
         155.2may only be used for the same purposes as a tax imposed under Minnesota Statutes,
         section 155.3469.190.155.4EFFECTIVE DATE.This section is effective the day after the governing body of the 155.5city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes,
         section 155.6645.021, subdivisions 2 and 3.155.7    Sec. 22. CITY OF SPICER; TAX AUTHORIZED.155.8    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 155.9section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 155.10charter, and as approved by the voters at the general election of November 8, 2016,
         the city 155.11of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent
         for the 155.12purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 155.13provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         155.14collection, and enforcement of the tax authorized under this subdivision.155.15    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 155.16under subdivision 1 must be used by the city of Spicer to pay the costs of collecting
         and 155.17administering the tax and to finance the capital and administrative costs of the following
         155.18projects:155.19(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
         155.20signals at marked Trunk Highway 23;155.21(2) park and trail capital improvements including signage for bicycle share the road
         155.22improvements and replacement of playground and related facilities; and155.23(3) capital improvements to regional community facilities such as the Dethelfs roof
         and 155.24window replacement and the Pioneerland branch library roof replacement.155.25    Subd. 3.Termination of taxes.The tax imposed under subdivision 1 expires at the 155.26earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027.
         All funds 155.27not used to pay collection and administration costs of the tax must be used for projects
         listed 155.28in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time
         if the 155.29city so determines by ordinance.155.30EFFECTIVE DATE.This section is effective the day after the governing body of the 155.31city of Spicer and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 155.32subdivisions 2 and 3.156.1    Sec. 23. CITY OF WALKER; LOCAL TAXES AUTHORIZED.156.2    Subdivision 1.Sales and use tax authorized.Notwithstanding Minnesota Statutes, 156.3section 477A.016, or any ordinance, city charter, or other provision of law, pursuant
         to the 156.4approval of the voters at the general election on November 6, 2012, the city of Walker
         may 156.5impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified
         in 156.6subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         156.7administration, collection, and enforcement of the taxes authorized under this subdivision.156.8    Subd. 2.Use of revenues.Revenues received from the tax authorized by subdivision 1 156.9must be used to pay all or part of the capital and administrative costs of underground
         utility, 156.10street, curb, gutter, and sidewalk improvements in the city of Walker as outlined
         in the 2012 156.11capital improvement plan of the engineer of the city of Walker.156.12    Subd. 3.Bonding authority.The city of Walker, pursuant to the approval of the voters 156.13at the November 6, 2012, referendum authorizing the imposition of the taxes in this
         section, 156.14may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
         156.15expenses for the projects described in subdivision 2, in an amount that does not exceed
         156.16$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section
         156.17475.58, is not required.156.18    Subd. 4.Termination of tax.(a) The tax authorized under subdivision 1 terminates at 156.19the earlier of:156.20(1) 20 years after the date of initial imposition of the tax; or156.21(2) when the city council determines that sufficient funds have been raised from the
         tax 156.22to finance the capital and administrative costs of the improvements described in subdivision
         156.232, plus the additional amount needed to pay the costs related to issuance of bonds
         under 156.24subdivision 3, including interest on the bonds.156.25(b) Any funds remaining after completion of the projects specified in subdivision
         2 and 156.26retirement or redemption of bonds in subdivision 3 shall be placed in the general
         fund of 156.27the city. The tax imposed under subdivision 1 may expire at an earlier time if the
         city so 156.28determines by ordinance.156.29EFFECTIVE DATE.This section is effective the day after the governing body of the 156.30city of Walker and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 156.31subdivisions 2 and 3.157.1    Sec. 24. CITY OF WINDOM; TAXES AUTHORIZED.157.2    Subdivision 1.Sales and use tax authorized.Notwithstanding Minnesota Statutes, 157.3section 477A.016, or any other provision of law, ordinance, or city charter, as approved
         by 157.4the voters at the general election held on November 8, 2016, the city of Windom may
         impose 157.5by ordinance a sales and use tax of up to one percent for the purposes specified in
         subdivision 157.63. Except as provided in this section, the provisions of Minnesota Statutes, section
         297A.99, 157.7govern the imposition, administration, collection, and enforcement of the tax authorized
         157.8under this subdivision.157.9    Subd. 2.Use of revenues.The proceeds of the tax imposed under this section must be 157.10used to pay for the cost of collecting the tax and to pay all or a portion of the
         expenses of 157.11constructing and improving a fire hall and a public safety facility, including any
         associated 157.12bond costs.157.13    Subd. 3.Bonding authority.The city of Windom, pursuant to the approval of the voters 157.14at the referendum authorizing the imposition of tax in this section, may issue bonds
         under 157.15Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the
         project 157.16described in subdivision 2. A separate election to approve the bonds under Minnesota
         157.17Statutes, section 475.58, is not required.157.18    Subd. 4.Termination of tax.(a) The tax authorized under subdivision 1 terminates at 157.19the earlier of:157.20(1) 15 years after the date of initial imposition of the tax; or157.21(2) when $3,500,000 has been collected.157.22(b) Any funds remaining after completion of the projects specified in subdivision 2 may
         157.23be placed in the general fund of the city. The tax imposed under subdivision 1 may
         expire 157.24at an earlier time if the city so determines by ordinance.157.25EFFECTIVE DATE.This section is effective the day after the governing body of the 157.26city of Windom and its chief clerical officer comply with Minnesota Statutes, section
         157.27645.021, subdivisions 2 and 3.157.28    Sec. 25. CLAY COUNTY; TAX AUTHORIZED.157.29    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 157.30section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance,
         and as 157.31approved by the voters at the November 8, 2016, general election, Clay County may
         impose, 157.32by ordinance, a sales and use tax of up to one-half of one percent for the purposes
         specified 158.1in subdivision 2. Except as otherwise provided in this section, the provisions of
         Minnesota 158.2Statutes, section 297A.99, govern the imposition, administration, collection, and
         enforcement 158.3of the tax authorized under this subdivision.158.4    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 158.5under subdivision 1 must be used by Clay County to pay the costs of collecting and
         158.6administering the tax and to finance the capital and administrative costs of constructing
         and 158.7equipping a new correctional facility, law enforcement center, and related parking
         facility. 158.8Authorized expenses include but are not limited to paying design, development, and
         158.9construction costs related to these facilities and improvements, and securing and
         paying 158.10debt service on bonds issued under subdivision 3 or other obligations issued to finance
         the 158.11facilities listed in this subdivision.158.12    Subd. 3.Bonding authority.Clay County may issue bonds under Minnesota Statutes, 158.13chapter 475, to finance all or a portion of the costs of the facilities authorized
         in subdivision 158.142. The aggregate principal amount of bonds issued under this subdivision may not exceed
         158.15$52,000,000, plus an amount to be applied to the payment of the costs of issuing the
         bonds. 158.16The bonds may be paid from or secured by any funds available to Clay County, including
         158.17the tax authorized under subdivision 1. The issuance of bonds under this subdivision
         is not 158.18subject to Minnesota Statutes, sections 275.60 and 275.61.158.19    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 158.20earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board
         determines 158.21that $52,000,000, plus an amount sufficient to pay the costs related to issuance of
         the bonds 158.22authorized under subdivision 3, including interest on the bonds, has been received
         from the 158.23tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 158.24after payment of all such costs and retirement or redemption of the bonds shall be
         placed 158.25in the general fund of the county. The tax imposed under subdivision 1 may expire
         at an 158.26earlier time if the county so determines by ordinance.158.27EFFECTIVE DATE.This section is effective the day after the governing body of Clay 158.28County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
         158.29subdivisions 2 and 3.158.30    Sec. 26. GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY 158.31DISTRICT; TAXES AUTHORIZED.158.32    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 158.33section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved
         by 158.34the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille
         Lacs 159.1Lake Sanitary District may impose, by majority vote of the governing body of the district,
         159.2a sales and use tax of up to one percent for the purposes specified in subdivision
         2. Except 159.3as otherwise provided in this section, the provisions of Minnesota Statutes, section
         297A.99, 159.4govern the imposition, administration, collection, and enforcement of the tax authorized
         159.5under this subdivision.159.6    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 159.7under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary
         159.8District to pay the costs of collecting and administering the tax and to repay general
         obligation 159.9revenue notes issued or other debt incurred for the construction of the wastewater
         collection 159.10system through the Minnesota Public Facilities Authority, general obligation disposal
         system 159.11bonds issued to finance the expense incurred in financing construction of sewer system
         159.12improvements, and notes payable issued for costs associated with the sewer services
         159.13agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and
         ML 159.14Wastewater Inc., and any other costs associated with system maintenance and improvements,
         159.15including extension of the system to unserved customers as determined by the governing
         159.16body of the district.159.17    Subd. 3.Bonds.The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant 159.18to the approval of the voters at the November 8, 2016, referendum authorizing the
         imposition 159.19of the tax under this section, may issue general obligation disposal system bonds
         for financing 159.20construction of sewer system improvements without a separate election required under
         159.21Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued
         159.22without a separate election is equal to $10,000,000 minus the amount of the tax revenue
         159.23under this section committed to repay other notes as allowed under subdivision 2.159.24    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 159.25earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing
         body of the 159.26Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000
         has 159.27been received from the tax to pay for the costs authorized under subdivision 2. Any
         funds 159.28remaining after payment of all such costs and retirement or redemption of the bonds
         shall 159.29be placed in the general fund of the district. The tax imposed under subdivision 1
         may expire 159.30at an earlier time if the governing body of the district so determines.159.31EFFECTIVE DATE.This section is effective the day after the governing body of the 159.32Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer
         comply 159.33with Minnesota Statutes, section 645.021, subdivisions 2 and 3.160.1    Sec. 27. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.160.2Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
         160.3Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010,
         chapter 160.4389, article 5, sections 1 and 2, and file its approval with the secretary of state
         by January 160.51, 2015. If approved under this paragraph, actions undertaken by the city pursuant
         to the 160.6approval of the voters on November 2, 2010, and otherwise in accordance with those
         laws 160.7are validated.160.8EFFECTIVE DATE.This section is effective the day after the governing body of the 160.9city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 160.10subdivisions 2 and 3.160.11ARTICLE 7160.12PUBLIC FINANCE160.13    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, provided that notes issued for projects that eliminate 160.18R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in
         not more 160.19than 20 years. 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, provided 161.2that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph 161.3(b), clause (2), must be payable in not more than 20 years. 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; and161.26    (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, provided that notes issued for projects that eliminate R-22, 161.33as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
         than 162.120 years. 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; and162.18    (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, provided, however, 162.25that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph 162.26(b), clause (2), must be payable in not more than 20 years.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. [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC 163.6BUILDINGS.163.7    Subdivision 1.Reverse referendum; certain leases.(a) Before executing a qualified 163.8lease, a municipality must publish notice of its intention to execute the lease and
         the date 163.9and time of a hearing to obtain public comment on the matter. The notice must be published
         163.10in the official newspaper of the municipality or in a newspaper of general circulation
         in the 163.11municipality and must include a statement of the amount of the obligations to be issued
         by 163.12the authority and the maximum amount of annual rent to be paid by the municipality
         under 163.13the qualified lease. The notice must be published at least 14, but not more than 28,
         days 163.14before the date of the hearing.163.15(b) A municipality may enter a lease subject to paragraph (a) only upon obtaining
         the 163.16approval of a majority of the voters voting on the question of issuing the obligations,
         if a 163.17petition requesting a vote on the issuance is signed by voters equal to ten percent
         of the 163.18votes cast in the municipality in the last state general election and is filed with
         the county 163.19auditor within 30 days after the public hearing.163.20    Subd. 2.Definitions.(a) For purposes of this section, the following terms have the 163.21meanings given them.163.22(b) "Authority" includes any of the following governmental units, the boundaries of
         163.23which include all or part of the geographic area of the municipality:163.24(1) a housing and redevelopment authority, as defined in section 469.002, subdivision
         163.252;163.26(2) a port authority, as defined in section 469.048;163.27(3) an economic development authority, as established under section 469.091; or163.28(4) an entity established or exercising powers under a special law with powers similar
         163.29to those of an entity described in clauses (1) to (3).163.30(c) "Municipality" means a statutory or home rule charter city, a county, or a town
         163.31described in section 368.01, but does not include a city of the first class, however
         organized, 163.32as defined in section 410.01.164.1(d) "Qualified lease" means a lease for use of public land, all or part of a public
         building, 164.2or other public facilities consisting of real property for a term of three or more
         years as a 164.3lessee if the property to be leased to the municipality was acquired or improved with
         the 164.4proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an
         authority.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    Subd. 1u.Obligations.In addition to other authority in this section, the council may 164.17issue certificates of indebtedness, bonds, or other obligations under this section
         in an amount 164.18not exceeding $126,000,000 for capital expenditures as prescribed in the council's
         transit 164.19capital improvement program and for related costs, including the costs of issuance
         and sale 164.20of the obligations. Of this authorization, after July 1, 2017, the council may issue
         certificates 164.21of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000,
         and 164.22after July 1, 2018, the council may issue certificates of indebtedness, bonds, or
         other 164.23obligations in an additional amount not exceeding $43,900,000.164.24EFFECTIVE DATE.This section is effective the day following final enactment and 164.25applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.164.26    Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 164.27read:164.28    Subd. 6.Limitation; light rail transit.The council is prohibited from expending any 164.29proceeds from certificates of indebtedness, bonds, or other obligations under this
         section 164.30for project development, land acquisition, or construction to (1) establish a light
         rail transit 164.31line; or (2) expand a light rail transit line, including by extending a line or adding
         additional 164.32stops.165.1EFFECTIVE DATE.This section applies to the expenditures made after the day 165.2following final enactment, but does not apply to amounts expended under binding contracts
         165.3entered into before March 25, 2017. This section applies in the counties of Anoka,
         Carver, 165.4Dakota, Hennepin, Ramsey, Scott, and Washington.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; and165.30(9) if the municipality has retained an independent financial advisor municipal adviser, 165.31obligations which the governing body determines shall be sold by private negotiation.166.1ARTICLE 8166.2MISCELLANEOUS166.3    Section 1. [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.166.4(a) Except as provided in paragraph (b), no appropriation or other state money, whether
         166.5in the general or another fund, must be expended or used for any costs related to
         studying 166.6the feasibility of, planning for, designing, engineering, acquiring property or constructing
         166.7facilities for or related to, or development or operation of intercity or interregional
         passenger 166.8rail facilities or operations between the city of Rochester or locations in its metropolitan
         166.9area and any location in the metropolitan area, as defined in section 473.121, subdivision
         166.102.166.11(b) The restrictions under this section do not apply to funds obtained from contributions,
         166.12grants, or other voluntary payments made by nongovernmental entities from private
         sources.166.13EFFECTIVE DATE.This section is effective the day following final enactment.166.14    Sec. 2. [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.166.15(a) If a state official leases, loans, or otherwise makes available state lands, air
         rights, 166.16or any other state property for use in connection with passenger rail facilities,
         as described 166.17in section 16A.1246, the lease or other agreement must include or be secured by a
         security 166.18bond or equivalent guarantee that allows the state to recover any costs it incurs
         in connection 166.19with the rail project from a responsible third party or secure source of capital,
         if the passenger 166.20rail facilities are not constructed, do not go into operation, or are abandoned, whether
         or 166.21not the facilities began operations. The security bond or equivalent guarantee must
         remain 166.22in place for the term of lease, loan, or other agreement that makes state property
         available 166.23for use by the project. These costs include restoring state property to its original
         condition.166.24(b) For purposes of this section, "state official" includes the commissioner, the
         166.25commissioner of transportation, or any other state official with authority to enter
         a lease or 166.26other agreement providing for use by a nonstate entity of state property.166.27EFFECTIVE DATE.This section is effective the day following final enactment.166.28    Sec. 3. [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES 166.29PROHIBITED.166.30Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
         166.31may take property for the development or construction of or for facilities related
         to intercity 167.1or interregional passenger rail facilities or operations between the city of Rochester
         or 167.2locations in its metropolitan area and any location in the metropolitan area, as defined
         in 167.3section 473.121, subdivision 2.167.4EFFECTIVE DATE.This section is effective the day following final enactment.167.5    Sec. 4. Minnesota Statutes 2016, section 216B.36, is amended to read:167.6216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.167.7    Subdivision 1.Municipal authority to regulate public utilities. 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. A fee that raises revenue under a license, permit, 167.15right, or franchise agreement entered into or renewed on or after August 1, 2017,
         is subject 167.16to the requirements of subdivision 2. 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    Subd. 2.Five-year renewal; reverse referendum.(a) A municipality may impose a 168.5fee under subdivision 1 to raise revenue beyond what is needed to defray increased
         municipal 168.6costs due to utility operations for up to a five-year period, following the procedures
         in this 168.7subdivision.168.8(b) The municipality must include in its ordinance or license, permit, or franchise
         168.9agreement with the public utility what constitutes a cost to the city.168.10(c) The municipality must identify in its ordinance or license, permit, or franchise
         168.11agreement the uses of the portion of the fee that is for purposes other than to defray
         city 168.12costs. The municipality must publish a notice that explains:168.13(1) the fee and its intended uses;168.14(2) that the public utility is likely to pass the fee on to customers and how much
         that 168.15may increase customers' utility bills;168.16(3) that alternatives to the revenue-raising portion of the fee are to raise the revenue
         168.17from another source available to the municipality or forego planned uses of the revenue;
         168.18and168.19(4) what revenue raised from another source will cost those paying it.168.20The notice must be published at least once each week for two consecutive weeks in
         the 168.21official publication of the municipality and must remain posted on the municipality's
         Web 168.22site throughout the notice period. The notice must also be sent to all affected ratepayers
         by 168.23either first class mail by the municipality or by including the notice in the affected
         ratepayers' 168.24billings.168.25(d) Following publication and before imposing the fee, the municipality must provide
         168.26an opportunity at its next regular meeting for public comment relating to the issue.
         No 168.27sooner than 90 days after the public comment opportunity, the municipality may proceed
         168.28with imposing the fee, unless a petition is filed as provided in paragraph (e).168.29(e) Within 90 days after the meeting held by the municipality at which public comment
         168.30was accepted, a petition requesting a referendum may be filed with the chief clerical
         officer 168.31of the municipality. The petition must be signed by at least five percent of the registered
         168.32voters in the municipality. The petition must meet the requirements of the secretary
         of state, 168.33as provided in section 204B.071, and any rules adopted to implement that section.
         If the 169.1petition is sufficient, the question of whether the municipality may impose a fee
         that raises 169.2revenue as provided in subdivision 1 must be placed on the ballot at the next general
         election. 169.3If a majority of the voters voting on the question votes in favor of using the fee
         to raise 169.4revenue, the municipality may proceed with imposing the fee.169.5(f) If a license, permit, right, or franchise agreement is entered into or renewed
         before 169.6August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect
         after 169.7August 1, 2022, the municipality must follow the procedures in this subdivision to
         provide 169.8notice, a public hearing, and opportunity for a petition for a referendum by August
         1, 2022.169.9(g) Except as provided in paragraph (f), this subdivision applies to a license, permit,
         169.10right, or franchise agreement entered into or renewed on or after August 1, 2017.169.11EFFECTIVE DATE.This section is effective the day following final enactment.169.12    Sec. 5. [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL 169.13INSURANCE REQUIRED.169.14    Subdivision 1.Scope.(a) This section applies to any person that seeks a federal or state 169.15permit or other formal legal authorization to construct or operate a passenger rail
         project 169.16with an estimated capital cost exceeding $1,000,000,000.169.17(b) This section does not apply to a person whose only action within the scope of
         169.18paragraph (a) is an application for a building permit.169.19    Subd. 2.Definitions.(a) For purposes of this section, unless the context clearly indicates 169.20otherwise, the following definitions apply.169.21(b) "Commissioner" means the commissioner of the Pollution Control Agency.169.22(c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
         169.23guarantee that provides assurance of the project's ability to pay claims for any liability
         under 169.24chapter 115B or similar provisions of common law or federal law resulting from construction
         169.25or operation of the passenger rail project.169.26(d) "Passenger rail project" or "project" means a railroad or a line or lines of a
         railway 169.27located within or partly within Minnesota intended to provide passenger service, regardless
         169.28of whether freight service is also provided, by a common carrier other than a federal
         or state 169.29government unit, a political subdivision of the state, or the National Railroad Passenger
         169.30Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.169.31(e) "Person" includes a corporation, limited liability company, partnership, other
         entity, 169.32or an individual.170.1    Subd. 3.Environmental insurance required.(a) Any person subject to this section 170.2must obtain and maintain insurance that is adequate to cover potential claims and
         meets the 170.3other requirements of this section, as approved by the commissioner under paragraph
         (b). 170.4The insurance must not contain dollar limits on liability, or if it does contain a
         dollar limit 170.5the limit must be not less than a reasonable estimate of the potential exposure of
         the project 170.6for environmental remediation or impairment damages. Any dollar limit must be adjusted
         170.7if the scope, size, or cost of the project increases materially. The insurance must
         cover any 170.8liability incurred during and after the construction and operation of the project
         and must 170.9not contain exclusions, limitations, or other restrictions that are not standard in
         comprehensive 170.10environmental remediation insurance or in environmental impairment insurance, as 170.11applicable.170.12(b) In order to satisfy the requirements of this section, the commissioner must determine
         170.13that the insurance is adequate and that it meets the other requirements of this section.
         The 170.14commissioner may require that the project provide any supporting documentation to
         170.15determine that insurance is adequate and meets the other requirements of this section
         and 170.16that the project has the financial ability to maintain insurance during the project's
         operations.170.17EFFECTIVE DATE.This section is effective for passenger rail projects for which 170.18application for a permit or other formal legal authorization to construct is made
         after the 170.19day following final enactment.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.171.6EFFECTIVE DATE.This section is effective for political contribution refund claims 171.7based on contributions made on or after July 1, 2017.171.8    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, the tax collected shall be forwarded by the county treasurer receiving it to the 172.18commissioner of revenue and the nonstate portion of the tax must be divided and paid over 172.19by the county treasurer receiving it commissioner of revenue, 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 commissioner of revenue 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 commissioner of revenue 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 in 172.28the county.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.172.35EFFECTIVE DATE.This section is effective for tax collected after June 30, 2017.173.1    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.174.1EFFECTIVE DATE.This section is effective for political contribution refund claims 174.2based on contributions made on or after July 1, 2017.174.3    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 201.014.174.7EFFECTIVE DATE.This section is effective for political contribution refund claims 174.8based on contributions made on or after July 1, 2017.174.9    Sec. 10. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:174.10    Subdivision 1. Guaranteed distribution. (a) Except as provided under paragraph (c), 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; or174.19(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; or175.1(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(c) The distribution of the taconite production tax under section 298.28, subdivision 3, 175.6paragraph (a), guaranteed under this section is equal to the amount distributed under
         section 175.7298.28, with respect to 1983 production.175.8EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.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. The amount allocated to the taconite 175.13municipal aid account must be annually increased in the same proportion as the increase
         in 175.14the implicit price deflator as provided in section 298.24, subdivision 1.175.15    (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 $50,000.176.12EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.176.13    Sec. 12. [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL 176.14PROJECTS.176.15(a) Except as provided in paragraph (b), a governmental unit must not spend or use
         any 176.16money for any costs related to studying the feasibility of, planning for, designing,
         176.17engineering, acquiring property or constructing facilities for or related to, or development
         176.18or operation of intercity or interregional passenger rail facilities or operations
         between the 176.19city of Rochester, or locations in its metropolitan area, and any location in the
         metropolitan 176.20area, as defined in section 473.121, subdivision 2.176.21(b) The restrictions under this section do not apply to:176.22(1) funds the governmental unit obtains from contributions, grants, or other voluntary
         176.23payments made by nongovernmental entities from private sources; and176.24(2) expenditures for costs of public infrastructure, including public utilities, parking
         176.25facilities, a multimode transit hub, or similar projects located within the area of
         the 176.26development district, as defined under section 469.40, and reflected in the development
         176.27plan adopted before the enactment of this section, that are intended to serve, and
         that are 176.28made following the completed construction and commencement of operation of privately
         176.29financed and operated intercity or interregional passenger rail facilities.176.30(c) For purposes of this section, "governmental unit" means any of the following,
         located 176.31in development regions 10 and 11, as designated under section 462.385, subdivision
         1:176.32(1) statutory or home rule charter city;176.33(2) county;177.1(3) special taxing district, as defined in section 275.066;177.2(4) metropolitan planning organization; or177.3(5) destination medical center entity, which includes the Destination Medical Center
         177.4Corporation and agency, as those terms are defined in section 469.40, and any successor
         or 177.5related entity.177.6EFFECTIVE DATE.This section is effective the day following final enactment without 177.7local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).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(e) A municipality may not impose a fee to review or investigate a use if the use
         is 178.2allowed without any permit, approval, or amendment to an official control. This limitation
         178.3does not apply to a fee for a review or investigation:178.4(1) of compliance with health and safety requirements; or178.5(2) that results in finding a violation, unless the finding is overturned on appeal
         or a 178.6penalty, fine, or other charge is imposed for the violation.178.7EFFECTIVE DATE.This section is effective August 1, 2017, and applies to fees  178.8imposed on or after that date.178.9    Sec. 14. [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.178.10(a) Except as provided in paragraph (b), the council must not spend or use any money
         178.11for any costs related to studying the feasibility of, planning for, designing, engineering,
         178.12acquiring property or constructing facilities for or related to, or development or
         operation 178.13of intercity or interregional passenger rail facilities or operations between the
         city of 178.14Rochester or locations in its metropolitan area and any location in the metropolitan
         area, as 178.15defined in section 473.121, subdivision 2.178.16(b) The restrictions under this section do not apply to funds the council obtains
         from 178.17contributions, grants, or other voluntary payments made by nongovernmental entities
         from 178.18private sources.178.19EFFECTIVE DATE; APPLICATION.This section is effective the day following 178.20final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
         178.21Scott, and Washington.178.22    Sec. 15. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 178.23TACONITE TAX PROCEEDS.178.24The commissioner of Iron Range resources and rehabilitation may use unspent amounts
         178.25allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19),
         178.26remaining as of May 22, 2016, for the specific purposes identified in that section.
         178.27Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a),
         or any 178.28other law to the contrary, interest accrued on this amount shall also be distributed
         to the 178.29recipient. Amounts under this section are available until expended and do not lapse
         or cancel 178.30under Minnesota Statutes, section 16A.28.178.31EFFECTIVE DATE.This section is effective retroactively from May 22, 2016.179.1    Sec. 16. CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.179.2    Subdivision 1.Authorization.The governing body of the city of Taylors Falls may 179.3designate all or any part of the city as a development zone under Minnesota Statutes,
         section 179.4469.1731.179.5    Subd. 2.Application of general law.(a) Minnesota Statutes, sections 469.1731 to 179.6469.1735, apply to the development zones designated under this section. The governing
         179.7body of the city may exercise the powers granted under Minnesota Statutes, sections
         469.1731 179.8to 469.1735, including powers that apply outside of the zones.179.9(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
         179.10469.1735, subdivision 2, is appropriated to the commissioner of revenue.179.11    Subd. 3.Allocation of state tax reductions.(a) The cumulative total amount of the 179.12state portion of the tax reductions for all years of the program under Minnesota Statutes,
         179.13sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.
         To 179.14provide the authority under this section, the amount of the allocation for border
         cities under 179.15Minnesota Statutes, section 469.169, in this act is reduced by $100,000.179.16(b) This allocation may be used for tax reductions provided in Minnesota Statutes,
         section 179.17469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735,
         179.18subdivision 3, but only if the governing body of the city of Taylors Falls determines
         that 179.19the tax reduction or offset is necessary to enable a business to expand within the
         city or to 179.20attract a business to the city.179.21(c) The commissioner of revenue may waive the limit under this subdivision using the
         179.22same rules and standards provided in Minnesota Statutes, section 469.169, subdivision
         12, 179.23paragraph (b).179.24EFFECTIVE DATE.This section is effective July 1, 2017, and does not require local 179.25approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph
         (a).179.26    Sec. 17.  REPEALER.179.27(a) Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2;
         179.28and 290.06, subdivision 23, and Minnesota Rules, part 4503.1400, subpart 4, are repealed.179.29(b) Minnesota Statutes 2016, section 477A.20, is repealed.179.30EFFECTIVE DATE.Paragraph (a) is effective for contributions made after June 30, 179.312017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the
         day following 179.32final enactment.