HF 157

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; replacing certain school district levies with state;
modifying computation of the credits; increasing property tax refunds for
homeowners and renters; increasing eligibility for senior deferral; increasing aids
to cities and counties; appropriating money; amending Minnesota Statutes 2006,
sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 126C.10,
subdivisions 13a, 29; 126C.17, subdivision 6; 126C.44; 273.1384, subdivisions 1,
2, by adding subdivisions; 290A.04, subdivisions 2, 2a; 290B.03, subdivision 1;
477A.013, subdivision 9; 477A.03, subdivisions 2a, 2b, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) $3,200 ... percent of the statewide adjusted net tax capacity equalizing factor.

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) $8,000 ... percent of the statewide adjusted net tax capacity equalizing factor.

Sec. 2.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:

Subd. 2a.

Adjusted net tax capacity equalizing factor.

The adjusted net tax
capacity equalizing factor equals the quotient derived by dividing the total adjusted net
tax capacity of all school districts in the state for the year before the year the levy is
certified by the total number of adjusted marginal cost pupil units in the state for the
current school year.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 3.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:

Subd. 3a.

Referendum market value equalizing factor.

The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum market
value of all school districts in the state for the year before the year the levy is certified by
the total number of resident marginal cost pupil units in the state for the current school year.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 4.

Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital ...
percent of the statewide adjusted net tax capacity equalizing factor. The operating capital
equalizing factor equals $22,222 for fiscal year 2006, and $10,700 for fiscal year 2007
and later.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 5.

Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:

Subd. 29.

Equity levy.

To obtain equity revenue for fiscal year 2005 and later, a
district may levy an amount not more than the product of its equity revenue, as calculated
in subdivision 24, paragraphs (a) through (..), for the fiscal year times the lesser of one or
the ratio of its referendum market value per resident marginal cost pupil unit to $476,000
... percent of the referendum market value equalizing factor.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 6.

Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:

Subd. 6.

Referendum equalization levy.

(a) For fiscal year 2003 and later,
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to $476,000 ... percent of
the referendum market value equalizing factor.

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to $270,000 ... percent of
the referendum market value equalizing factor.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 7.

Minnesota Statutes 2006, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

Subdivision 1.

Revenue.

Each district may make a levy on all taxable property
located within the district for the purposes specified in this section. The maximum amount
which may be levied for all costs under this section shall be equal to Safe school revenue
equals $27 multiplied by the district's adjusted marginal cost pupil units for the school year.

Subd. 2.

Levy.

A school district's safe schools levy equals its safe school revenue
times the lesser of one or the ratio of the district's adjusted net tax capacity per adjusted
marginal cost pupil unit to ... percent of the adjusted net tax capacity equalizing factor.

Subd. 3.

Aid.

A school district's safe schools aid equals the difference between its
safe schools revenue and its safe schools levy.

Subd. 4.

Revenue uses.

The proceeds of the levy must be reserved and used for
directly funding the following purposes or for reimbursing the cities and counties who
contract with the district for the following purposes: (1) to pay the costs incurred for the
salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; or
(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, and
violence prevention measures taken by the school district. For expenditures under clause
(1), the district must initially attempt to contract for services to be provided by peace
officers or sheriffs with the police department of each city or the sheriff's department
of the county within the district containing the school receiving the services. If a local
police department or a county sheriff's department does not wish to provide the necessary
services, the district may contract for these services with any other police or sheriff's
department located entirely or partially within the school district's boundaries.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008.

Sec. 8.

Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to read:

Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit for each class 1a, 1b, and 2a homestead property within
the county equal to 0.4 percent of the first $76,000 of market value of the property up to
the residential homestead market value credit valuation limit under subdivision 5 minus
.09 percent of the market value in excess of $76,000 the limit. The credit amount may
not be less than zero. In the case of an agricultural or resort homestead, only the market
value of the house, garage, and immediately surrounding one acre of land is eligible in
determining the property's homestead credit. In the case of a property that is classified as
part homestead and part nonhomestead, (i) the credit shall apply only to the homestead
portion of the property, but (ii) if a portion of a property is classified as nonhomestead
solely because not all the owners occupy the property, not all the owners have qualifying
relatives occupying the property, or solely because not all the spouses of owners occupy
the property, the credit amount shall be initially computed as if that nonhomestead portion
were also in the homestead class and then prorated to the owner-occupant's percentage
of ownership. For the purpose of this section, when an owner-occupant's spouse does
not occupy the property, the percentage of ownership for the owner-occupant spouse is
one-half of the couple's ownership percentage.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008 and
thereafter.

Sec. 9.

Minnesota Statutes 2006, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural homestead market value credit.

Property classified
as class 2a agricultural homestead is eligible for an agricultural credit. The credit is
computed using the property's agricultural credit market value, defined for this purpose
as the property's class 2a market value excluding the market value of the house, garage,
and immediately surrounding one acre of land. The credit is equal to 0.3 percent of the
first $115,000 of the property's agricultural credit market value up to the agricultural
homestead market value credit valuation limit under subdivision 6 minus .05 percent of
the property's agricultural credit market value in excess of $115,000 the limit, subject to a
maximum reduction of $115. In the case of property that is classified in part as class 2a
agricultural homestead and in part as class 2b nonhomestead farm land solely because not
all the owners occupy or farm the property, not all the owners have qualifying relatives
occupying or farming the property, or solely because not all the spouses of owners occupy
the property, the credit must be initially computed as if that nonhomestead agricultural
land was also classified as class 2a agricultural homestead and then prorated to the
owner-occupant's percentage of ownership.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008 and
thereafter.

Sec. 10.

Minnesota Statutes 2006, section 273.1384, is amended by adding a
subdivision to read:

Subd. 5.

Residential homestead market value credit valuation limit.

(a)
Beginning with assessment year 2007, the commissioner of revenue shall annually
certify the residential homestead market value credit valuation limit as the product of (i)
$76,000, and (ii) the ratio of the statewide average taxable market value of a residential
homestead in the preceding assessment year to the statewide average taxable market
value of a residential homestead for assessment year 2005. The limit must be rounded to
the nearest $1,000.

(b) The commissioner shall certify the limit by January 2 of each assessment year,
except that for assessment year 2007, the commissioner shall certify the limit by June
1, 2007.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008 and
thereafter.

Sec. 11.

Minnesota Statutes 2006, section 273.1384, is amended by adding a
subdivision to read:

Subd. 6.

Agricultural homestead market value credit valuation limit.

(a)
Beginning with assessment year 2007, the commissioner of revenue shall annually certify
the agricultural homestead market value credit valuation limit as the product of (i)
$115,000, and (ii) the ratio of the statewide average taxable market value of agricultural
property per acre of deeded farm land in the preceding assessment year to the statewide
average taxable market value of agricultural property per acre of deeded farm land for
assessment year 2005. The limit must be rounded to the nearest $1,000.

(b) For the purposes of this subdivision, "agricultural property" means all class 2
property under section 273.13, subdivision 23, except (1) timberland, (2) a landing area
or public access area of a privately owned public use airport, and (3) property consisting
of the house, garage, and immediately surrounding one acre of land of an agricultural
homestead.

(c) The commissioner shall certify the limit by January 2 of each assessment year,
except that for assessment year 2007 the commissioner shall certify the limit by June
1, 2007.

EFFECTIVE DATE.

This section is effective for taxes payable in 2008 and
thereafter.

Sec. 12.

Minnesota Statutes 2006, section 290A.04, subdivision 2, is amended to read:

Subd. 2.

Homeowners.

(a) A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 1,189	1.0 percent	15 percent	$1,450
$0 to $1,519			$1,850
1,190 to 2,379	1.1 percent	15 percent	$1,450
1,520 to 3,029			$1,850
2,380 to 3,589	1.2 percent	15 percent	$1,410
3,030 to 4,579			$1,790
3,590 to 4,789	1.3 percent	20 percent	$1,410
4,580 to 6,119			$1,790
4,790 to 5,979	1.4 percent	20 percent	$1,360
6,120 to 7,639			$1,730
5,980 to 8,369	1.5 percent	20 percent	$1,360
7,640 to 10,679			$1,730
8,370 to 9,559	1.6 percent	25 percent	$1,310
10,680 to 12,209			$1,670
9,560 to 10,759	1.7 percent	25 percent	$1,310
12,210 to 13,739			$1,670
10,760 to 11,949	1.8 percent	25 percent	$1,260
13,740 to 15,259			$1,600
11,950 to 13,139	1.9 percent	30 percent	$1,260
15,260 to 16,779			$1,600
13,140 to 14,349	2.0 percent	30 percent	$1,210
16,780 to 18,319			$1,540
14,350 to 16,739	2.1 percent	30 percent	$1,210
18,320 to 21,379			$1,540
16,740 to 17,929	2.2 percent	35 percent	$1,160
21,380 to 22,899			$1,480
17,930 to 19,119	2.3 percent	35 percent	$1,160
22,900 to 24,409			$1,480
19,120 to 20,319	2.4 percent	35 percent	$1,110
24,410 to 25,949			$1,410
20,320 to 25,099	2.5 percent	40 percent	$1,110
25,950 to 32,049			$1,410
25,100 to 28,679	2.6 percent	40 percent	$1,070
32,050 to 36,629			$1,360
28,680 to 35,849	2.7 percent	40 percent	$1,070
36,630 to 45,779			$1,360
35,850 to 41,819	2.8 percent	45 percent	$ 970
45,780 to 53,409			$1,230
41,820 to 47,799	3.0 percent	45 percent	$ 970
53,410 to 61,049			$1,230
47,800 to 53,779	3.2 percent	45 percent	$ 870
61,050 to 68,679			$1,110
53,780 to 59,749	3.5 percent	50 percent	$ 780
68,680 to 76,309			$990
59,750 to 65,729	4.0 percent	50 percent	$ 680
76,310 to 83,939			$870
65,730 to 69,319	4.0 percent	50 percent	$ 580
83,940 to 88,529			$740
69,320 to 71,719	4.0 percent	50 percent	$ 480
88,530 to 91,589			$610
71,720 to 74,619	4.0 percent	50 percent	$ 390
91,590 to 95,299			$500
74,620 to 77,519	4.0 percent	50 percent	$ 290
95,300 to 98,999			$370

(b) The payment made to a claimant shall be the amount of the state refund
calculated under this subdivision. No payment is allowed if the claimant's household
income is $77,520 $99,000 or more.

EFFECTIVE DATE.

This section is effective beginning for claims filed based on
property taxes payable in 2008.

Sec. 13.

Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:

Subd. 2a.

Renters.

(a) A claimant whose rent constituting property taxes exceeds
the percentage of the household income stated below must pay an amount equal to the
percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of rent constituting property
taxes. The state refund equals the amount of rent constituting property taxes that remain,
up to the maximum state refund amount shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
$0 to 3,589	1.0 percent	5 percent	$1,190
$0 to 4,579			$1,500
3,590 to 4,779	1.0 percent	10 percent	$1,190
4,580 to 6,099			$1,500
4,780 to 5,969	1.1 percent	10 percent	$1,190
6,100 to 7,619			$1,500
5,970 to 8,369	1.2 percent	10 percent	$1,190
7,620 to 10,669			$1,500
8,370 to 10,759	1.3 percent	15 percent	$1,190
10,670 to 13,729			$1,500
10,760 to 11,949	1.4 percent	15 percent	$1,190
13,730 to 15,239			$1,500
11,950 to 13,139	1.4 percent	20 percent	$1,190
15,240 to 16,769			$1,500
13,140 to 15,539	1.5 percent	20 percent	$1,190
16,770 to 19,829			$1,500
15,540 to 16,729	1.6 percent	20 percent	$1,190
19,830 to 21,349			$1,500
16,730 to 17,919	1.7 percent	25 percent	$1,190
21,350 to 22,859			$1,500
17,920 to 20,319	1.8 percent	25 percent	$1,190
22,860 to 25,929			$1,500
20,320 to 21,509	1.9 percent	30 percent	$1,190
25,930 to 27,439			$1,500
21,510 to 22,699	2.0 percent	30 percent	$1,190
27,440 to 28,959			$1,500
22,700 to 23,899	2.2 percent	30 percent	$1,190
28,960 to 30,499			$1,500
23,900 to 25,089	2.4 percent	30 percent	$1,190
30,500 to 32,009			$1,500
25,090 to 26,289	2.6 percent	35 percent	$1,190
32,010 to 33,539			$1,500
26,290 to 27,489	2.7 percent	35 percent	$1,190
33,540 to 35,079			$1,500
27,490 to 28,679	2.8 percent	35 percent	$1,190
35,080 to 36,589			$1,500
28,680 to 29,869	2.9 percent	40 percent	$1,190
36,590 to 38,109			$1,500
29,870 to 31,079	3.0 percent	40 percent	$1,190
38,110 to 39,649			$1,500
31,080 to 32,269	3.1 percent	40 percent	$1,190
39,650 to 41,169			$1,500
32,270 to 33,459	3.2 percent	40 percent	$1,190
41,170 to 42,689			$1,500
33,460 to 34,649	3.3 percent	45 percent	$1,080
42,690 to 44,209			$1,370
34,650 to 35,849	3.4 percent	45 percent	$ 960
44,210 to 45,739			$1,220
35,850 to 37,049	3.5 percent	45 percent	$ 830
45,740 to 47,279			$1,050
37,050 to 38,239	3.5 percent	50 percent	$ 720
47,280 to 48,789			$910
38,240 to 39,439	3.5 percent	50 percent	$ 600
48,790 to 50,319			$760
38,440 to 40,629	3.5 percent	50 percent	$ 360
50,320 to 51,839			$450
40,630 to 41,819	3.5 percent	50 percent	$ 120
51,840 to 53,359			$150

(b) The payment made to a claimant is the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
$41,820 $53,360 or more.

EFFECTIVE DATE.

This section is effective beginning for claims filed for rent
paid after December 31, 2006.

Sec. 14.

Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:

Subdivision 1.

Program qualifications.

The qualifications for the senior citizens'
property tax deferral program are as follows:

(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, both one of the spouses must be at least 65
years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status;

(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed $60,000 the maximum income under section 290A.04, subdivision 2,
paragraph (b), permitting a claimant to be eligible for a property tax refund for property
taxes payable in the calendar year;

(3) the homestead must have been owned and occupied as the homestead of at
least one of the qualifying homeowners for at least 15 years prior to the year the initial
application is filed;

(4) there are no state or federal tax liens or judgment liens on the homesteaded
property;

(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and

(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any
delinquent property taxes, penalties, and interest, but not including property taxes payable
during the year, does not exceed 75 percent of the assessor's estimated market value for
the year.

EFFECTIVE DATE.

This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.

Sec. 15.

Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read:

Subd. 9.

City aid distribution.

(a) In calendar year 2002 and thereafter, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, and (2) its city aid base.

(b) For aids payable in 2005 and thereafter 2008, the total aid for any city shall
not exceed the sum of (1) ten ... percent of the city's net levy for the year prior to the
aid distribution plus (2) its total aid in the previous year. For aids payable in 2009 and
thereafter, the total aid for any city must not exceed the sum of (1) ... percent of the city's
net levy for the year prior to the aid distribution plus (2) its total aid in the previous year.
For aids payable in 2005 and thereafter, the total aid for any city with a population of
2,500 or more may not decrease from its total aid under this section in the previous year by
an amount greater than ten percent of its net levy in the year prior to the aid distribution.

(c) For aids payable in 2004 only, the total aid for a city with a population less
than 2,500 may not be less than the amount it was certified to receive in 2003 minus the
greater of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special
Session chapter 21, article 5, or (2) five percent of its 2003 aid amount. For aids payable
in 2005 and thereafter, the total aid for a city with a population less than 2,500 must not be
less than the amount it was certified to receive in the previous year minus five percent
of its 2003 certified aid amount.

(d) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.

EFFECTIVE DATE.

This section is effective beginning with aids payable in 2008.

Sec. 16.

Minnesota Statutes 2006, section 477A.03, subdivision 2a, is amended to read:

Subd. 2a.

Cities.

For aids payable in 2004, the total aids paid under section
477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the
total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. For
aids payable in 2006 and thereafter 2007, the total aids paid under section 477A.013,
subdivision 9, is are limited to $485,052,000. For aids payable in 2008, the total aids paid
under section 477A.013, subdivision 9, are limited to $........ For aids payable in 2009
and thereafter, the total aids payable under section 477A.013, subdivision 9, are limited
to the amount paid under that subdivision in the previous year, adjusted for inflation as
provided in subdivision 5.

EFFECTIVE DATE.

This section is effective beginning with aids payable in 2008.

Sec. 17.

Minnesota Statutes 2006, section 477A.03, subdivision 2b, is amended to read:

Subd. 2b.

Counties.

(a) For aids payable in calendar year 2005 and thereafter
2008, the total aids paid to counties under section 477A.0124, subdivision 3, are limited
to $100,500,000 $....... For aids payable in 2009 and thereafter, the total aids paid to
counties under section 477A.0124, subdivision 3, are limited to the amount paid under
that subdivision in the previous year, adjusted for inflation as provided in subdivision 5.
Each calendar year, $500,000 shall be retained by the commissioner of revenue to make
reimbursements to the commissioner of finance for payments made under section 611.27.
For calendar year 2004, the amount shall be in addition to the payments authorized
under section 477A.0124, subdivision 1. For calendar year 2005 2008 and subsequent
years, the amount shall be deducted from the appropriation under this paragraph. The
reimbursements shall be to defray the additional costs associated with court-ordered
counsel under section 611.27. Any retained amounts not used for reimbursement in a year
shall be included in the next distribution of county need aid that is certified to the county
auditors for the purpose of property tax reduction for the next taxes payable year.

(b) For aids payable in 2005 2008, the total aids under section 477A.0124,
subdivision 4, are limited to $105,000,000 $...,.... For aids payable in 2006 2009 and
thereafter, the total aid under section 477A.0124, subdivision 4, is limited to $105,132,923
$...,.... The commissioner of finance shall bill the commissioner of revenue for the cost of
preparation of local impact notes as required by section 3.987, not to exceed $207,000 in
fiscal year 2004 and thereafter. The commissioner of education shall bill the commissioner
of revenue for the cost of preparation of local impact notes for school districts as
required by section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The
commissioner of revenue shall deduct the amounts billed under this paragraph from
the appropriation under this paragraph. The amounts deducted are appropriated to the
commissioner of finance and the commissioner of education for the preparation of local
impact notes.

EFFECTIVE DATE.

This section is effective beginning with aids payable in 2008.

Sec. 18.

Minnesota Statutes 2006, section 477A.03, is amended by adding a
subdivision to read:

Subd. 5.

Inflation adjustment.

In 2009 and thereafter, the amount paid under each
subdivision adjusted for inflation is increased by an amount equal to:

(1) the amount certified to be paid under that subdivision in the previous year
multiplied by

(2) the percentage increase in the implicit price deflator for state and local
government consumption expenditures and gross investment, prepared by the Bureau of
Economic Analysis of the United States Department of Commerce for the 12-month
period ending March 31 of the previous year. The percentage increase used in this
subdivision must be no less than 2.5 percent and no greater than 5.0 percent.

EFFECTIVE DATE.

This section is effective beginning with aids payable in 2008.