HF 240

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; reducing the class 
  1.3             rates for noncommercial seasonal residential 
  1.4             recreational property; amending Minnesota Statutes 
  1.5             1994, sections 273.13, subdivision 25; and 273.1398, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 273.13, 
  1.9   subdivision 25, is amended to read: 
  1.10     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  1.11  estate containing four or more units and used or held for use by 
  1.12  the owner or by the tenants or lessees of the owner as a 
  1.13  residence for rental periods of 30 days or more.  Class 4a also 
  1.14  includes hospitals licensed under sections 144.50 to 144.56, 
  1.15  other than hospitals exempt under section 272.02, and contiguous 
  1.16  property used for hospital purposes, without regard to whether 
  1.17  the property has been platted or subdivided.  Class 4a property 
  1.18  has a class rate of 3.5 percent of market value for taxes 
  1.19  payable in 1992, and 3.4 percent of market value for taxes 
  1.20  payable in 1993 and thereafter. 
  1.21     (b) Class 4b includes: 
  1.22     (1) residential real estate containing less than four 
  1.23  units, other than seasonal residential, and recreational; 
  1.24     (2) manufactured homes not classified under any other 
  1.25  provision; 
  1.26     (3) a dwelling, garage, and surrounding one acre of 
  2.1   property on a nonhomestead farm classified under subdivision 23, 
  2.2   paragraph (b).  
  2.3      Class 4b property has a class rate of 2.8 percent of market 
  2.4   value for taxes payable in 1992, 2.5 percent of market value for 
  2.5   taxes payable in 1993, and 2.3 percent of market value for taxes 
  2.6   payable in 1994 and thereafter. 
  2.7      (c) Class 4c property includes: 
  2.8      (1) a structure that is:  
  2.9      (i) situated on real property that is used for housing for 
  2.10  the elderly or for low- and moderate-income families as defined 
  2.11  in Title II, as amended through December 31, 1990, of the 
  2.12  National Housing Act or the Minnesota housing finance agency law 
  2.13  of 1971, as amended, or rules promulgated by the agency and 
  2.14  financed by a direct federal loan or federally insured loan made 
  2.15  pursuant to Title II of the Act; or 
  2.16     (ii) situated on real property that is used for housing the 
  2.17  elderly or for low- and moderate-income families as defined by 
  2.18  the Minnesota housing finance agency law of 1971, as amended, or 
  2.19  rules adopted by the agency pursuant thereto and financed by a 
  2.20  loan made by the Minnesota housing finance agency pursuant to 
  2.21  the provisions of the act.  
  2.22     This clause applies only to property of a nonprofit or 
  2.23  limited dividend entity.  Property is classified as class 4c 
  2.24  under this clause for 15 years from the date of the completion 
  2.25  of the original construction or substantial rehabilitation, or 
  2.26  for the original term of the loan.  
  2.27     (2) a structure that is: 
  2.28     (i) situated upon real property that is used for housing 
  2.29  lower income families or elderly or handicapped persons, as 
  2.30  defined in section 8 of the United States Housing Act of 1937, 
  2.31  as amended; and 
  2.32     (ii) owned by an entity which has entered into a housing 
  2.33  assistance payments contract under section 8 which provides 
  2.34  assistance for 100 percent of the dwelling units in the 
  2.35  structure, other than dwelling units intended for management or 
  2.36  maintenance personnel.  Property is classified as class 4c under 
  3.1   this clause for the term of the housing assistance payments 
  3.2   contract, including all renewals, or for the term of its 
  3.3   permanent financing, whichever is shorter; and 
  3.4      (3) a qualified low-income building as defined in section 
  3.5   42(c)(2) of the Internal Revenue Code of 1986, as amended 
  3.6   through December 31, 1990, that (i) receives a low-income 
  3.7   housing credit under section 42 of the Internal Revenue Code of 
  3.8   1986, as amended through December 31, 1990; or (ii) meets the 
  3.9   requirements of that section and receives public financing, 
  3.10  except financing provided under sections 469.174 to 469.179, 
  3.11  which contains terms restricting the rents; or (iii) meets the 
  3.12  requirements of section 273.1317.  Classification pursuant to 
  3.13  this clause is limited to a term of 15 years.  The public 
  3.14  financing received must be from at least one of the following 
  3.15  sources:  government issued bonds exempt from taxes under 
  3.16  section 103 of the Internal Revenue Code of 1986, as amended 
  3.17  through December 31, 1993, the proceeds of which are used for 
  3.18  the acquisition or rehabilitation of the building; programs 
  3.19  under section 221(d)(3), 202, or 236, of Title II of the 
  3.20  National Housing Act; rental housing program funds under Section 
  3.21  8 of the United States Housing Act of 1937 or the market rate 
  3.22  family graduated payment mortgage program funds administered by 
  3.23  the Minnesota housing finance agency that are used for the 
  3.24  acquisition or rehabilitation of the building; public financing 
  3.25  provided by a local government used for the acquisition or 
  3.26  rehabilitation of the building, including grants or loans from 
  3.27  federal community development block grants, HOME block grants, 
  3.28  or residential rental bonds issued under chapter 474A; or other 
  3.29  rental housing program funds provided by the Minnesota housing 
  3.30  finance agency for the acquisition or rehabilitation of the 
  3.31  building. 
  3.32     For all properties described in clauses (1), (2), and (3) 
  3.33  and in paragraph (d), the market value determined by the 
  3.34  assessor must be based on the normal approach to value using 
  3.35  normal unrestricted rents unless the owner of the property 
  3.36  elects to have the property assessed under Laws 1991, chapter 
  4.1   291, article 1, section 55.  If the owner of the property elects 
  4.2   to have the market value determined on the basis of the actual 
  4.3   restricted rents, as provided in Laws 1991, chapter 291, article 
  4.4   1, section 55, the property will be assessed at the rate 
  4.5   provided for class 4a or class 4b property, as appropriate.  
  4.6   Properties described in clauses (1)(ii), (3), and (4) may apply 
  4.7   to the assessor for valuation under Laws 1991, chapter 291, 
  4.8   article 1, section 55.  The land on which these structures are 
  4.9   situated has the class rate given in paragraph (b) if the 
  4.10  structure contains fewer than four units, and the class rate 
  4.11  given in paragraph (a) if the structure contains four or more 
  4.12  units.  This clause applies only to the property of a nonprofit 
  4.13  or limited dividend entity.  
  4.14     (4) a parcel of land, not to exceed one acre, and its 
  4.15  improvements or a parcel of unimproved land, not to exceed one 
  4.16  acre, if it is owned by a neighborhood real estate trust and at 
  4.17  least 60 percent of the dwelling units, if any, on all land 
  4.18  owned by the trust are leased to or occupied by lower income 
  4.19  families or individuals.  This clause does not apply to any 
  4.20  portion of the land or improvements used for nonresidential 
  4.21  purposes.  For purposes of this clause, a lower income family is 
  4.22  a family with an income that does not exceed 65 percent of the 
  4.23  median family income for the area, and a lower income individual 
  4.24  is an individual whose income does not exceed 65 percent of the 
  4.25  median individual income for the area, as determined by the 
  4.26  United States Secretary of Housing and Urban Development.  For 
  4.27  purposes of this clause, "neighborhood real estate trust" means 
  4.28  an entity which is certified by the governing body of the 
  4.29  municipality in which it is located to have the following 
  4.30  characteristics: 
  4.31     (a) it is a nonprofit corporation organized under chapter 
  4.32  317A; 
  4.33     (b) it has as its principal purpose providing housing for 
  4.34  lower income families in a specific geographic community 
  4.35  designated in its articles or bylaws; 
  4.36     (c) it limits membership with voting rights to residents of 
  5.1   the designated community; and 
  5.2      (d) it has a board of directors consisting of at least 
  5.3   seven directors, 60 percent of whom are members with voting 
  5.4   rights and, to the extent feasible, 25 percent of whom are 
  5.5   elected by resident members of buildings owned by the trust; and 
  5.6      (5) except as provided in subdivision 22, paragraph (c), 
  5.7   real property devoted to temporary and seasonal residential 
  5.8   occupancy for recreation purposes, including real property 
  5.9   devoted to temporary and seasonal residential occupancy for 
  5.10  recreation purposes and not devoted to commercial purposes for 
  5.11  more than 250 days in the year preceding the year of 
  5.12  assessment.  For purposes of this clause, property is devoted to 
  5.13  a commercial purpose on a specific day if any portion of the 
  5.14  property is used for residential occupancy, and a fee is charged 
  5.15  for residential occupancy.  Class 4c also includes commercial 
  5.16  use real property used exclusively for recreational purposes in 
  5.17  conjunction with class 4c property devoted to temporary and 
  5.18  seasonal residential occupancy for recreational purposes, up to 
  5.19  a total of two acres, provided the property is not devoted to 
  5.20  commercial recreational use for more than 250 days in the year 
  5.21  preceding the year of assessment and is located within two miles 
  5.22  of the class 4c property with which it is used.  Class 4c 
  5.23  property classified in this clause also includes the remainder 
  5.24  of class 1c resorts.  Owners of real property devoted to 
  5.25  temporary and seasonal residential occupancy for recreation 
  5.26  purposes and all or a portion of which was devoted to commercial 
  5.27  purposes for not more than 250 days in the year preceding the 
  5.28  year of assessment desiring classification as class 1c or 4c, 
  5.29  must submit a declaration to the assessor designating the cabins 
  5.30  or units occupied for 250 days or less in the year preceding the 
  5.31  year of assessment by January 15 of the assessment year.  Those 
  5.32  cabins or units and a proportionate share of the land on which 
  5.33  they are located will be designated class 1c or 4c as otherwise 
  5.34  provided.  The remainder of the cabins or units and a 
  5.35  proportionate share of the land on which they are located will 
  5.36  be designated as class 3a.  The first $100,000 of the market 
  6.1   value of the remainder of the cabins or units and a 
  6.2   proportionate share of the land on which they are located shall 
  6.3   have a class rate of three percent.  The owner of property 
  6.4   desiring designation as class 1c or 4c property must provide 
  6.5   guest registers or other records demonstrating that the units 
  6.6   for which class 1c or 4c designation is sought were not occupied 
  6.7   for more than 250 days in the year preceding the assessment if 
  6.8   so requested.  The portion of a property operated as a (1) 
  6.9   restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
  6.10  facility operated on a commercial basis not directly related to 
  6.11  temporary and seasonal residential occupancy for recreation 
  6.12  purposes shall not qualify for class 1c or 4c; 
  6.13     (6) real property up to a maximum of one acre of land owned 
  6.14  by a nonprofit community service oriented organization; provided 
  6.15  that the property is not used for a revenue-producing activity 
  6.16  for more than six days in the calendar year preceding the year 
  6.17  of assessment and the property is not used for residential 
  6.18  purposes on either a temporary or permanent basis.  For purposes 
  6.19  of this clause, a "nonprofit community service oriented 
  6.20  organization" means any corporation, society, association, 
  6.21  foundation, or institution organized and operated exclusively 
  6.22  for charitable, religious, fraternal, civic, or educational 
  6.23  purposes, and which is exempt from federal income taxation 
  6.24  pursuant to section 501(c)(3), (10), or (19) of the Internal 
  6.25  Revenue Code of 1986, as amended through December 31, 1990.  For 
  6.26  purposes of this clause, "revenue-producing activities" shall 
  6.27  include but not be limited to property or that portion of the 
  6.28  property that is used as an on-sale intoxicating liquor or 3.2 
  6.29  percent malt liquor establishment licensed under chapter 340A, a 
  6.30  restaurant open to the public, bowling alley, a retail store, 
  6.31  gambling conducted by organizations licensed under chapter 349, 
  6.32  an insurance business, or office or other space leased or rented 
  6.33  to a lessee who conducts a for-profit enterprise on the 
  6.34  premises.  Any portion of the property which is used for 
  6.35  revenue-producing activities for more than six days in the 
  6.36  calendar year preceding the year of assessment shall be assessed 
  7.1   as class 3a.  The use of the property for social events open 
  7.2   exclusively to members and their guests for periods of less than 
  7.3   24 hours, when an admission is not charged nor any revenues are 
  7.4   received by the organization shall not be considered a 
  7.5   revenue-producing activity; 
  7.6      (7) post-secondary student housing of not more than one 
  7.7   acre of land that is owned by a nonprofit corporation organized 
  7.8   under chapter 317A and is used exclusively by a student 
  7.9   cooperative, sorority, or fraternity for on-campus housing or 
  7.10  housing located within two miles of the border of a college 
  7.11  campus; and 
  7.12     (8) manufactured home parks as defined in section 327.14, 
  7.13  subdivision 3. 
  7.14     Class 4c property has a class rate of 2.3 percent of market 
  7.15  value, except that (i) each parcel of seasonal residential 
  7.16  recreational property not used for commercial purposes under 
  7.17  clause (5) has a class rate of 2.2 percent of market value for 
  7.18  taxes payable in 1992, and for taxes payable in 1993 and 
  7.19  thereafter, as follows:  the first $72,000 of market value on 
  7.20  each parcel has a class rate of two 1.8 percent for taxes 
  7.21  payable in 1996, 1.6 percent for taxes payable in 1997, and 1.5 
  7.22  percent for taxes payable in 1998 and thereafter, and the market 
  7.23  value of each parcel that exceeds $72,000 has a class rate 
  7.24  of 2.5 2.3 percent for taxes payable in 1996, 2.1 percent for 
  7.25  taxes payable in 1997, and two percent for taxes payable in 1998 
  7.26  and thereafter, and (ii) manufactured home parks assessed under 
  7.27  clause (8) have a class rate of two percent for taxes payable in 
  7.28  1993, 1994, and 1995 only.  
  7.29     (d) Class 4d property includes: 
  7.30     (1) a structure that is: 
  7.31     (i) situated on real property that is used for housing for 
  7.32  the elderly or for low and moderate income families as defined 
  7.33  by the Farmers Home Administration; 
  7.34     (ii) located in a municipality of less than 10,000 
  7.35  population; and 
  7.36     (iii) financed by a direct loan or insured loan from the 
  8.1   Farmers Home Administration.  Property is classified under this 
  8.2   clause for 15 years from the date of the completion of the 
  8.3   original construction or for the original term of the loan.  
  8.4      The class rates in paragraph (c), clauses (1), (2), and (3) 
  8.5   and this clause apply to the properties described in them, only 
  8.6   in proportion to occupancy of the structure by elderly or 
  8.7   handicapped persons or low and moderate income families as 
  8.8   defined in the applicable laws unless construction of the 
  8.9   structure had been commenced prior to January 1, 1984; or the 
  8.10  project had been approved by the governing body of the 
  8.11  municipality in which it is located prior to June 30, 1983; or 
  8.12  financing of the project had been approved by a federal or state 
  8.13  agency prior to June 30, 1983.  For those properties, 4c or 4d 
  8.14  classification is available only for those units meeting the 
  8.15  requirements of section 273.1318. 
  8.16     Classification under this clause is only available to 
  8.17  property of a nonprofit or limited dividend entity. 
  8.18     In the case of a structure financed or refinanced under any 
  8.19  federal or state mortgage insurance or direct loan program 
  8.20  exclusively for housing for the elderly or for housing for the 
  8.21  handicapped, a unit shall be considered occupied so long as it 
  8.22  is actually occupied by an elderly or handicapped person or, if 
  8.23  vacant, is held for rental to an elderly or handicapped person. 
  8.24     (2) For taxes payable in 1992, 1993, and 1994, only, 
  8.25  buildings and appurtenances, together with the land upon which 
  8.26  they are located, leased by the occupant under the community 
  8.27  lending model lease-purchase mortgage loan program administered 
  8.28  by the Federal National Mortgage Association, provided the 
  8.29  occupant's income is no greater than 60 percent of the county or 
  8.30  area median income, adjusted for family size and the building 
  8.31  consists of existing single family or duplex housing.  The lease 
  8.32  agreement must provide for a portion of the lease payment to be 
  8.33  escrowed as a nonrefundable down payment on the housing.  To 
  8.34  qualify under this clause, the taxpayer must apply to the county 
  8.35  assessor by May 30 of each year.  The application must be 
  8.36  accompanied by an affidavit or other proof required by the 
  9.1   assessor to determine qualification under this clause. 
  9.2      (3) Qualifying buildings and appurtenances, together with 
  9.3   the land upon which they are located, leased for a period of up 
  9.4   to five years by the occupant under a lease-purchase program 
  9.5   administered by the Minnesota housing finance agency or a 
  9.6   housing and redevelopment authority authorized under sections 
  9.7   469.001 to 469.047, provided the occupant's income is no greater 
  9.8   than 80 percent of the county or area median income, adjusted 
  9.9   for family size, and the building consists of two or less 
  9.10  dwelling units.  The lease agreement must provide for a portion 
  9.11  of the lease payment to be escrowed as a nonrefundable down 
  9.12  payment on the housing.  The administering agency shall verify 
  9.13  the occupants income eligibility and certify to the county 
  9.14  assessor that the occupant meets the income criteria under this 
  9.15  paragraph.  To qualify under this clause, the taxpayer must 
  9.16  apply to the county assessor by May 30 of each year.  For 
  9.17  purposes of this section, "qualifying buildings and 
  9.18  appurtenances" shall be defined as one or two unit residential 
  9.19  buildings which are unoccupied and have been abandoned and 
  9.20  boarded for at least six months. 
  9.21     Class 4d property has a class rate of two percent of market 
  9.22  value except that property classified under clause (3), shall 
  9.23  have the same class rate as class 1a property. 
  9.24     (e) Residential rental property that would otherwise be 
  9.25  assessed as class 4 property under paragraph (a); paragraph (b), 
  9.26  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
  9.27  (4), is assessed at the class rate applicable to it under 
  9.28  Minnesota Statutes 1988, section 273.13, if it is found to be a 
  9.29  substandard building under section 273.1316.  Residential rental 
  9.30  property that would otherwise be assessed as class 4 property 
  9.31  under paragraph (d) is assessed at 2.3 percent of market value 
  9.32  if it is found to be a substandard building under section 
  9.33  273.1316. 
  9.34     Sec. 2.  Minnesota Statutes 1994, section 273.1398, 
  9.35  subdivision 1, is amended to read: 
  9.36     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
 10.1   terms defined in this subdivision have the meanings given them. 
 10.2      (b) "Unique taxing jurisdiction" means the geographic area 
 10.3   subject to the same set of local tax rates. 
 10.4      (c) "Net tax capacity" means the product of 
 10.5      (i) the appropriate net class rates for the year in which 
 10.6   the aid is payable, except that for aid payable in 1993 the 
 10.7   class rate applicable to class 4a shall be 3.5 percent; and the 
 10.8   class rate applicable to class 4b shall be 2.65 percent; and for 
 10.9   aid payable in 1994 the class rate applicable to class 4b shall 
 10.10  be 2.4 percent and the class rate applicable to class 2a 
 10.11  property over $115,000 market value and less than 320 acres is 
 10.12  1.15 percent; and for aid payable in 1997 the class rate for 
 10.13  class 4c noncommercial seasonal residential recreational 
 10.14  property is 1.8 percent on the first $72,000 of market value and 
 10.15  2.3 percent on the market value of each parcel that exceeds 
 10.16  $72,000, and for aid payable in 1998 the class rate for class 4c 
 10.17  noncommercial seasonal residential recreational property is 1.6 
 10.18  percent on the first $72,000 of market value and 2.1 percent on 
 10.19  the market value of each parcel that exceeds $72,000, and 
 10.20     (ii) estimated market values for the assessment two years 
 10.21  prior to that in which aid is payable.  The exclusion of the 
 10.22  value of the house, garage, and one acre from the first tier of 
 10.23  agricultural homestead property must not be considered in 
 10.24  determining net tax capacity for purposes of this paragraph for 
 10.25  aids payable in 1994.  "Total net tax capacity" means the net 
 10.26  tax capacities for all property within the unique taxing 
 10.27  jurisdiction.  The total net tax capacity used shall be reduced 
 10.28  by the sum of (1) the unique taxing jurisdiction's net tax 
 10.29  capacity of commercial industrial property as defined in section 
 10.30  473F.02, subdivision 3, multiplied by the ratio determined 
 10.31  pursuant to section 473F.08, subdivision 6, for the 
 10.32  municipality, as defined in section 473F.02, subdivision 8, in 
 10.33  which the unique taxing jurisdiction is located, (2) the net tax 
 10.34  capacity of the captured value of tax increment financing 
 10.35  districts as defined in section 469.177, subdivision 2, and (3) 
 10.36  the net tax capacity of transmission lines deducted from a local 
 11.1   government's total net tax capacity under section 273.425.  For 
 11.2   purposes of determining the net tax capacity of property 
 11.3   referred to in clauses (1), (2), and (3), the net tax capacity 
 11.4   shall be multiplied by the ratio of the highest class rate for 
 11.5   class 3a property for taxes payable in the year in which the aid 
 11.6   is payable to the highest class rate for class 3a property in 
 11.7   the prior year.  Net tax capacity cannot be less than zero. 
 11.8      (d) "Previous net tax capacity" means the product of the 
 11.9   appropriate net class rates for the year previous to the year in 
 11.10  which the aid is payable, and estimated market values for the 
 11.11  assessment two years prior to that in which aid is payable.  
 11.12  "Total previous net tax capacity" means the previous net tax 
 11.13  capacities for all property within the unique taxing 
 11.14  jurisdiction.  The total previous net tax capacity shall be 
 11.15  reduced by the sum of (1) the unique taxing jurisdiction's 
 11.16  previous net tax capacity of commercial-industrial property as 
 11.17  defined in section 473F.02, subdivision 3, multiplied by the 
 11.18  ratio determined pursuant to section 473F.08, subdivision 6, for 
 11.19  the municipality, as defined in section 473F.02, subdivision 8, 
 11.20  in which the unique taxing jurisdiction is located, (2) the 
 11.21  previous net tax capacity of the captured value of tax increment 
 11.22  financing districts as defined in section 469.177, subdivision 
 11.23  2, and (3) the previous net tax capacity of transmission lines 
 11.24  deducted from a local government's total net tax capacity under 
 11.25  section 273.425.  Previous net tax capacity cannot be less than 
 11.26  zero. 
 11.27     (e) "Equalized market values" are market values that have 
 11.28  been equalized by dividing the assessor's estimated market value 
 11.29  for the second year prior to that in which the aid is payable by 
 11.30  the assessment sales ratios determined by class in the 
 11.31  assessment sales ratio study conducted by the department of 
 11.32  revenue pursuant to section 124.2131 in the second year prior to 
 11.33  that in which the aid is payable.  The equalized market values 
 11.34  shall equal the unequalized market values divided by the 
 11.35  assessment sales ratio. 
 11.36     (f) "Equalized school levies" means the amounts levied for: 
 12.1      (1) general education under section 124A.23, subdivision 2; 
 12.2      (2) supplemental revenue under section 124A.22, subdivision 
 12.3   8a; 
 12.4      (3) capital expenditure facilities revenue under section 
 12.5   124.243, subdivision 3; 
 12.6      (4) capital expenditure equipment revenue under section 
 12.7   124.244, subdivision 2; 
 12.8      (5) basic transportation under section 124.226, subdivision 
 12.9   1; and 
 12.10     (6) referendum revenue under section 124A.03. 
 12.11     (g) "Current local tax rate" means the quotient derived by 
 12.12  dividing the taxes levied within a unique taxing jurisdiction 
 12.13  for taxes payable in the year prior to that for which aids are 
 12.14  being calculated by the total previous net tax capacity of the 
 12.15  unique taxing jurisdiction.  
 12.16     (h) For purposes of calculating and allocating homestead 
 12.17  and agricultural credit aid authorized pursuant to subdivision 2 
 12.18  and the disparity reduction aid authorized in subdivision 3, 
 12.19  "gross taxes levied on all properties," "gross taxes," or "taxes 
 12.20  levied" means the total net tax capacity based taxes levied on 
 12.21  all properties except that levied on the captured value of tax 
 12.22  increment districts as defined in section 469.177, subdivision 
 12.23  2, and that levied on the portion of commercial industrial 
 12.24  properties' assessed value or gross tax capacity, as defined in 
 12.25  section 473F.02, subdivision 3, subject to the areawide tax as 
 12.26  provided in section 473F.08, subdivision 6, in a unique taxing 
 12.27  jurisdiction.  "Gross taxes" are before any reduction for 
 12.28  disparity reduction aid but "taxes levied" are after any 
 12.29  reduction for disparity reduction aid.  Gross taxes levied or 
 12.30  taxes levied cannot be less than zero.  
 12.31     "Taxes levied" excludes equalized school levies. 
 12.32     (i) "Human services aids" means: 
 12.33     (1) aid to families with dependent children under sections 
 12.34  256.82, subdivision 1, and 256.935, subdivision 1; 
 12.35     (2) medical assistance under sections 256B.041, subdivision 
 12.36  5, and 256B.19, subdivision 1; 
 13.1      (3) general assistance medical care under section 256D.03, 
 13.2   subdivision 6; 
 13.3      (4) general assistance under section 256D.03, subdivision 
 13.4   2; 
 13.5      (5) work readiness under section 256D.03, subdivision 2; 
 13.6      (6) emergency assistance under section 256.871, subdivision 
 13.7   6; 
 13.8      (7) Minnesota supplemental aid under section 256D.36, 
 13.9   subdivision 1; 
 13.10     (8) preadmission screening and alternative care grants; 
 13.11     (9) work readiness services under section 256D.051; 
 13.12     (10) case management services under section 256.736, 
 13.13  subdivision 13; 
 13.14     (11) general assistance claims processing, medical 
 13.15  transportation and related costs; and 
 13.16     (12) medical assistance, medical transportation and related 
 13.17  costs. 
 13.18     (j) "Household adjustment factor" means the number of 
 13.19  households for the second most recent year preceding that in 
 13.20  which the aids are payable divided by the number of households 
 13.21  for the third most recent year.  The household adjustment factor 
 13.22  cannot be less than one.  
 13.23     (k) "Growth adjustment factor" means the household 
 13.24  adjustment factor in the case of counties.  In the case of 
 13.25  cities, towns, school districts, and special taxing districts, 
 13.26  the growth adjustment factor equals one.  The growth adjustment 
 13.27  factor cannot be less than one.  
 13.28     (l) For aid payable in 1992 and subsequent years, 
 13.29  "homestead and agricultural credit base" means the previous 
 13.30  year's certified homestead and agricultural credit aid 
 13.31  determined under subdivision 2 less any permanent aid reduction 
 13.32  in the previous year to homestead and agricultural credit aid 
 13.33  under section 477A.0132, plus, for aid payable in 1992, fiscal 
 13.34  disparity homestead and agricultural credit aid under 
 13.35  subdivision 2b.  
 13.36     (m) "Net tax capacity adjustment" means (1) the total 
 14.1   previous net tax capacity minus the total net tax capacity, 
 14.2   multiplied by (2) the unique taxing jurisdiction's current local 
 14.3   tax rate.  The net tax capacity adjustment cannot be less than 
 14.4   zero. 
 14.5      (n) "Fiscal disparity adjustment" means the difference 
 14.6   between (1) a taxing jurisdiction's fiscal disparity 
 14.7   distribution levy under section 473F.08, subdivision 3, clause 
 14.8   (a), for taxes payable in the year prior to that for which aids 
 14.9   are being calculated, and (2) the same distribution levy 
 14.10  multiplied by the ratio of the highest class rate for class 3 
 14.11  property for taxes payable in the year prior to that for which 
 14.12  aids are being calculated to the highest class rate for class 3 
 14.13  property for taxes payable in the second prior year to that for 
 14.14  which aids are being calculated.  In the case of school 
 14.15  districts, the fiscal disparity distribution levy shall exclude 
 14.16  that part of the levy attributable to equalized school levies. 
 14.17     Sec. 3.  [EFFECTIVE DATE.] 
 14.18     Sections 1 and 2 are effective for taxes levied in 1995 and 
 14.19  thereafter, payable in 1996 and thereafter.