HF 992

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; providing for use of
household income for computing property taxes on
homesteads; appropriating money; amending Minnesota
Statutes 2004, sections 126C.01, subdivision 3;
127A.48, by adding a subdivision; 273.13, subdivisions
22, 23, by adding a subdivision; 275.065, subdivision
3; 275.08, subdivision 1a; 276.017, subdivision 1;
276.02; 276.03; 276.04, subdivisions 2, 3; 276.09;
proposing coding for new law in Minnesota Statutes,
chapters 273; 477A; repealing Minnesota Statutes 2004,
section 273.1384, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 126C.01,
subdivision 3, is amended to read:

Subd. 3.

Referendum market value.

new text begin (a) Except as provided
in paragraph (b), new text end "referendum market value" means the market
value of all taxable property, excluding property classified as
class 2, noncommercial 4c(1), or 4c(4) under section 273.13.
The portion of class 2a property consisting of the house,
garage, and surrounding one acre of land of an agricultural
homestead is included in referendum market value. Any class of
property, or any portion of a class of property, that is
included in the definition of referendum market value and that
has a class rate of less than one percent under section 273.13
shall have a referendum market value equal to its net tax
capacity multiplied by 100.

new text begin (b) For any property or portion thereof where the net tax
capacity is determined under section 273.13, subdivision 34,
referendum market value means net tax capacity multiplied by a
factor of 100.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 127A.48, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Homestead property. new text end

new text begin If the net tax capacity of
homestead property is determined under section 273.13,
subdivision 34, its adjusted net tax capacity is deemed to be
equal to the net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 3.

new text begin [273.128] ASSESSMENT OF HOMESTEAD PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Homestead list to commissioner of
revenue. new text end

new text begin By March 1 of each assessment year, the county
assessor shall provide a list of all homesteads in the county to
the commissioner of revenue, in a form prescribed by the
commissioner, providing the legal description and address of
each homestead, the names and Social Security numbers of all
owners of the homestead, and all taxing jurisdictions whose
boundaries contain the homestead.
new text end

new text begin Subd. 2. new text end

new text begin Income reporting form sent to homeowner. new text end

new text begin By
March 1 of each year, the assessor shall mail a form prescribed
by the commissioner of revenue to each homestead. The form
shall solicit from the owner of the homestead the name and
income of each occupant of the home, excluding minors with no
income, using the income definition contained in section
290A.03, along with any identifying information required by the
commissioner. Upon completion, the homeowner is required to
submit the form to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Verification; report of tax capacity to county.
new text end

new text begin The commissioner of revenue shall verify the information
provided by the homeowner and may adjust the incomes as reported
by the homeowner for assessor omissions. By July 1 of the
assessment year, the commissioner shall calculate the net tax
capacity and referendum market value of each homestead, and
report to the county auditor the aggregate amount of net tax
capacity and referendum market value of all homestead properties
for each taxing jurisdiction within the county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 4.

Minnesota Statutes 2004, section 273.13,
subdivision 22, is amended to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision
23 and in paragraphs (b) and (c), real estate which is
residential and used for homestead purposes is class 1a. In the
case of a duplex or triplex in which one of the units is used
for homestead purposes, the entire property is deemed to be used
for homestead purposes. The deleted text begin market value deleted text end new text begin tax capacity new text end of class
1a property must be determined deleted text begin based upon the value of the
house, garage, and land deleted text end new text begin as provided under subdivision 34 new text end .

deleted text begin The first $500,000 of market value of class 1a property has
a net class rate of one percent of its market value; and the
market value of class 1a property that exceeds $500,000 has a
class rate of 1.25 percent of its market value.
deleted text end

(b) Class 1b property includes homestead real estate or
homestead manufactured homes used for the purposes of a
homestead by

(1) any person who is blind as defined in section 256D.35,
or the blind person and the blind person's spouse; or

(2) any person, hereinafter referred to as "veteran," who:

(i) served in the active military or naval service of the
United States; and

(ii) is entitled to compensation under the laws and
regulations of the United States for permanent and total
service-connected disability due to the loss, or loss of use, by
reason of amputation, ankylosis, progressive muscular
dystrophies, or paralysis, of both lower extremities, such as to
preclude motion without the aid of braces, crutches, canes, or a
wheelchair; and

(iii) has acquired a special housing unit with special
fixtures or movable facilities made necessary by the nature of
the veteran's disability, or the surviving spouse of the
deceased veteran for as long as the surviving spouse retains the
special housing unit as a homestead; or

(3) any person who is permanently and totally disabled.

Property is classified and assessed under clause (3) only
if the government agency or income-providing source certifies,
upon the request of the homestead occupant, that the homestead
occupant satisfies the disability requirements of this paragraph.

Property is classified and assessed pursuant to clause (1)
only if the commissioner of revenue certifies to the assessor
that the homestead occupant satisfies the requirements of this
paragraph.

Permanently and totally disabled for the purpose of this
subdivision means a condition which is permanent in nature and
totally incapacitates the person from working at an occupation
which brings the person an income. The deleted text begin first $32,000 market
value of class 1b property has a net class rate of .45 percent
of its market value deleted text end new text begin tax capacity of class 1b property shall be
determined as provided under subdivision 34 new text end . The remaining
market value of class 1b property has a class rate using the
rates for class 1a or class 2a property, whichever is
appropriate, of similar market value.

(c) Class 1c property is commercial use real property that
abuts a lakeshore line and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted
to commercial purposes for more than 250 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner, which includes a dwelling
occupied as a homestead by a shareholder of a corporation that
owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the
resort even if the title to the homestead is held by the
corporation, partnership, or limited liability company. For
purposes of this clause, property is devoted to a commercial
purpose on a specific day if any portion of the property,
excluding the portion used exclusively as a homestead, is used
for residential occupancy and a fee is charged for residential
occupancy. deleted text begin The first $500,000 of market value of deleted text end Class 1c
property deleted text begin has a class rate of one percent, and the remaining
market value of class 1c property has a class rate of one
percent, with the following limitation: the area of the
property must not exceed deleted text end new text begin is limited to new text end 100 feet of lakeshore
footage for each cabin or campsite located on the property up to
a total of 800 feet and 500 feet in depth, measured away from
the lakeshore. If any portion of the class 1c resort property
is classified as class 4c under subdivision 25, the entire
property must meet the requirements of subdivision 25, paragraph
(d), clause (1), to qualify for class 1c treatment under this
paragraph. new text begin The tax capacity of class 1c property shall be
determined under subdivision 34.
new text end

(d) Class 1d property includes structures that meet all of
the following criteria:

(1) the structure is located on property that is classified
as agricultural property under section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm
workers during the time when they work on that farm, and the
occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of
farm equipment and produce does not disqualify the property from
classification under this paragraph;

(3) the structure meets all applicable health and safety
requirements for the appropriate season; and

(4) the structure is not salable as residential property
because it does not comply with local ordinances relating to
location in relation to streets or roads.

The new text begin first $500,000 of new text end market value of class 1d property has
deleted text begin the same class rates as class 1a property under paragraph (a) deleted text end new text begin a
net class rate of one percent, and the market value of class 1d
property tax that exceeds $500,000 has a class rate of 1.25
percent new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 5.

Minnesota Statutes 2004, section 273.13,
subdivision 23, is amended to read:

Subd. 23.

Class 2.

(a) Class 2a property is agricultural
land including any improvements that is homesteaded. The deleted text begin market
value deleted text end new text begin tax capacity new text end of the house and garage and immediately
surrounding one acre of land deleted text begin has the same class rates deleted text end new text begin is
determined in the same way new text end as class 1a property under
subdivision deleted text begin 22 deleted text end new text begin 34 new text end . The value of the remaining land including
improvements up to and including $600,000 market value has a net
class rate of 0.55 percent of market value. The remaining
property over $600,000 market value has a class rate of one
percent of market value.

(b) Class 2b property is (1) real estate, rural in
character and used exclusively for growing trees for timber,
lumber, and wood and wood products; (2) real estate that is not
improved with a structure and is used exclusively for growing
trees for timber, lumber, and wood and wood products, if the
owner has participated or is participating in a cost-sharing
program for afforestation, reforestation, or timber stand
improvement on that particular property, administered or
coordinated by the commissioner of natural resources; (3) real
estate that is nonhomestead agricultural land; or (4) a landing
area or public access area of a privately owned public use
airport. Class 2b property has a net class rate of one percent
of market value.

(c) Agricultural land as used in this section means
contiguous acreage of ten acres or more, used during the
preceding year for agricultural purposes. "Agricultural
purposes" as used in this section means the raising or
cultivation of agricultural products. "Agricultural purposes"
also includes enrollment in the Reinvest in Minnesota program
under sections 103F.501 to 103F.535 or the federal Conservation
Reserve Program as contained in Public Law 99-198 if the
property was classified as agricultural (i) under this
subdivision for the assessment year 2002 or (ii) in the year
prior to its enrollment. Contiguous acreage on the same parcel,
or contiguous acreage on an immediately adjacent parcel under
the same ownership, may also qualify as agricultural land, but
only if it is pasture, timber, waste, unusable wild land, or
land included in state or federal farm programs. Agricultural
classification for property shall be determined excluding the
house, garage, and immediately surrounding one acre of land, and
shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same
ownership.

(d) Real estate, excluding the house, garage, and
immediately surrounding one acre of land, of less than ten acres
which is exclusively and intensively used for raising or
cultivating agricultural products, shall be considered as
agricultural land.

Land shall be classified as agricultural even if all or a
portion of the agricultural use of that property is the leasing
to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative
for qualifying under section 273.111.

The property classification under this section supersedes,
for property tax purposes only, any locally administered
agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(e) The term "agricultural products" as used in this
subdivision includes production for sale of:

(1) livestock, dairy animals, dairy products, poultry and
poultry products, fur-bearing animals, horticultural and nursery
stock, fruit of all kinds, vegetables, forage, grains, bees, and
apiary products by the owner;

(2) fish bred for sale and consumption if the fish breeding
occurs on land zoned for agricultural use;

(3) the commercial boarding of horses if the boarding is
done in conjunction with raising or cultivating agricultural
products as defined in clause (1);

(4) property which is owned and operated by nonprofit
organizations used for equestrian activities, excluding racing;

(5) game birds and waterfowl bred and raised for use on a
shooting preserve licensed under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, and not sold for
timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed
by the Minnesota Department of Agriculture under chapter 28A as
a food processor.

(f) If a parcel used for agricultural purposes is also used
for commercial or industrial purposes, including but not limited
to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities
enumerated in clauses (1), (2), and (3),

the assessor shall classify the part of the parcel used for
agricultural purposes as class 1b, 2a, or 2b, whichever is
appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural
products for first sale is considered an agricultural purpose.
A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail
sales must be classified as agricultural if it is primarily used
for the growing of horticultural or nursery products from seed,
cuttings, or roots and occasionally as a showroom for the retail
sale of those products. Use of a greenhouse or building only
for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.

The assessor shall determine and list separately on the
records the market value of the homestead dwelling and the one
acre of land on which that dwelling is located. If any farm
buildings or structures are located on this homesteaded acre of
land, their market value shall not be included in this separate
determination.

(g) To qualify for classification under paragraph (b),
clause (4), a privately owned public use airport must be
licensed as a public airport under section 360.018. For
purposes of paragraph (b), clause (4), "landing area" means that
part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use
by aircraft and includes runways, taxiways, aprons, and sites
upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and
the approach surfaces that comply with all of the following:

(i) the land is properly cleared and regularly maintained
for the primary purposes of the landing, taking off, and taxiing
of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is
not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential
purposes.

The land contained in a landing area under paragraph (b), clause
(4), must be described and certified by the commissioner of
transportation. The certification is effective until it is
modified, or until the airport or landing area no longer meets
the requirements of paragraph (b), clause (4). For purposes of
paragraph (b), clause (4), "public access area" means property
used as an aircraft parking ramp, apron, or storage hangar, or
an arrival and departure building in connection with the airport.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 6.

Minnesota Statutes 2004, section 273.13, is
amended by adding a subdivision to read:

new text begin Subd. 34. new text end

new text begin Tax capacity; homestead property. new text end

new text begin The tax
capacity of class 1a, 1b, or 1c property, and that portion of
class 2a property consisting of the house, garage, and
surrounding one acre of land, is equal to 1.5 percent of the
household income of all persons residing in the homestead, as
defined under section 290A.03, for the calendar year immediately
preceding the year in which the tax is levied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 7.

Minnesota Statutes 2004, section 275.065,
subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) new text begin In the
case of property that is not classified as homestead, new text end the county
auditor shall prepare and the county treasurer shall deliver
after November 10 and on or before November 24 each year, by
first class mail to each taxpayer at the address listed on the
county's current year's assessment roll, a notice of proposed
property taxes.

(b) The commissioner of revenue shall prescribe the form of
the notice new text begin , and shall prepare and deliver the notice according
to the procedures specified in paragraph (a) in the case of
property which is partially or wholly classified as homestead new text end .

(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to
collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax
amount will be its proposed tax. In the case of taxing
authorities required to hold a public meeting under subdivision
6, the notice must clearly state that each taxing authority,
including regional library districts established under section
134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing
districts and towns, will hold a public meeting to receive
public testimony on the proposed budget and proposed or final
property tax levy, or, in case of a school district, on the
current budget and proposed property tax levy. It must clearly
state the time and place of each taxing authority's meeting, a
telephone number for the taxing authority that taxpayers may
call if they have questions related to the notice, and an
address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under
section 273.11, and used for computing property taxes payable in
the following year and for taxes payable in the current year as
each appears in the records of the county assessor on November 1
of the current year; and, in the case of residential property,
whether the property is classified as homestead or
nonhomestead. The notice must clearly inform taxpayers of the
years to which the market values apply and that the values are
final values;

(2) the items listed below, shown separately by county,
city or town, and state general tax, net of the residential and
agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of
the special taxing districts, and as a total of all taxing
authorities:

(i) the actual tax for taxes payable in the current year;
and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for
a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final
tax shall also be its proposed tax unless the town changes its
levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision
9, that a referendum will be held in the school district at the
November general election, the county auditor must note next to
the school district's proposed amount that a referendum is
pending and that, if approved by the voters, the tax amount may
be higher than shown on the notice. In the case of the city of
Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed
separately from the remaining amount of the city's levy. In the
case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of
the city's levy. In the case of a parcel where tax increment or
the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide
tax must each be stated separately and not included in the sum
of the special taxing districts; and

(3) the increase or decrease between the total taxes
payable in the current year and the total proposed taxes,
expressed as a percentage.

For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax
amount.

(e) The notice must clearly state that the proposed or
final taxes do not include the following:

(1) special assessments;

(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda and
school district levy referenda;

(3) a levy limit increase approved by the voters by the
first Tuesday after the first Monday in November of the levy
year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;

(5) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and

(6) the contamination tax imposed on properties which
received market value reductions for contamination.

(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.

(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory
documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the
homestead classification in that assessment year, the assessor
shall reclassify the property to homestead for taxes payable in
the following year.

(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:

(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the
premises of the property.

The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
the premises to which the notice must be mailed in order to
fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and
6, "metropolitan special taxing districts" means the following
taxing districts in the seven-county metropolitan area that levy
a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667,
473.671, or 473.672; and

(3) Metropolitan Mosquito Control Commission under section
473.711.

For purposes of this section, any levies made by the
regional rail authorities in the county of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and
shall be discussed at that county's public hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 8.

Minnesota Statutes 2004, section 275.08,
subdivision 1a, is amended to read:

Subd. 1a.

Computation of tax capacity.

For deleted text begin taxes payable
in 1989, the county auditor shall compute the gross tax capacity
for each parcel according to the class rates specified in
section 273.13. The gross tax capacity will be the appropriate
class rate multiplied by the parcel's market value. For taxes
payable in 1990 and subsequent years deleted text end new text begin all property which does not
qualify for homestead classification new text end , the county auditor shall
compute the deleted text begin net deleted text end tax capacity for each parcel deleted text begin according to deleted text end new text begin by
multiplying new text end the new text begin appropriate new text end class rates specified in section
273.13 deleted text begin . The net tax capacity will be the appropriate class rate
multiplied deleted text end by the parcel's market value. new text begin For all properties
wholly or partially qualifying for homestead classification, the
commissioner of revenue shall compute the tax capacity for each
parcel. The county assessor shall provide the commissioner with
sufficient information to compute the net tax capacity for all
portions of the property where the tax capacity is not
determined under section 273.13, subdivision 34.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 9.

Minnesota Statutes 2004, section 276.017,
subdivision 1, is amended to read:

Subdivision 1.

Date of mailing or receipt.

When a
payment described in this section is required to be made deleted text begin to a
county deleted text end on or before the prescribed date, the payment is timely
if received deleted text begin by the county deleted text end on or before a prescribed date, or if
mailed on or before that date. This section applies to the
payment of current or delinquent real or personal property
taxes, any other amount shown as payable on a property tax
statement, and all related penalties, interest, or costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 10.

Minnesota Statutes 2004, section 276.02, is
amended to read:

276.02 deleted text begin TREASURER TO BE COLLECTOR deleted text end new text begin COLLECTIONS new text end .

new text begin Subdivision 1. new text end

new text begin County treasurer. new text end

new text begin Except as provided in
subdivision 2, new text end the county treasurer shall collect all taxes
extended on the tax lists of the county and the fines,
forfeitures, or penalties received by any person or officer for
the use of the county. The treasurer shall collect the taxes
according to law and credit them to the proper funds. This
section does not apply to fines and penalties accruing to
municipal corporations for the violation of their ordinances
that are recoverable before a city justice.

new text begin Subd. 2. new text end

new text begin Commissioner of revenue. new text end

new text begin The commissioner of
revenue shall collect taxes on all properties wholly or
partially classified as homestead, including any fines,
forfeitures, and penalties resulting from taxes levied on such
properties.
new text end

new text begin Subd. 3. new text end

new text begin Payments. new text end

Taxes, fines, interest, and penalties
must be paid with United States currency or by check or money
order drawn on a bank or other financial institution in the
United States. The county board may by resolution authorize the
treasurer to impose a charge for any dishonored checks.

The county board may, by resolution, authorize the
treasurer and/or other designees to accept payments of real
property taxes by credit card provided that a fee is charged for
its use. The fee charged must be commensurate with the costs
assessed by the card issuer. If a credit card transaction under
this section is subsequently voided or otherwise reversed, the
lien of real property taxes under section 272.31 is revived and
attaches in the manner and time provided in that section as
though the credit card transaction had never occurred, and the
voided or reversed credit card transaction shall not impair the
right of a lienholder under section 272.31 to enforce the lien
in its favor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 11.

Minnesota Statutes 2004, section 276.03, is
amended to read:

276.03 deleted text begin TREASURER TO COLLECT deleted text end new text begin COLLECTION OF new text end LOCAL
ASSESSMENTS.

new text begin The commissioner of revenue, or new text end a county treasurer
authorized by law to collect local assessments made or levied by
a city new text begin , new text end shall collect all assessments for local improvements
made or levied and certified deleted text begin to the treasurer deleted text end by the city
against any specific tract or parcel of land. The assessment
must be collected at the same time as taxes levied against that
tract or parcel of land.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 12.

Minnesota Statutes 2004, section 276.04,
subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) new text begin In the case of
all properties which do not qualify for homestead
classification, new text end the treasurer shall provide for the printing of
the tax statements. new text begin In the case of all properties wholly or
partially qualifying for homestead classification, the
commissioner of revenue shall provide for the printing of the
tax statements. new text end The commissioner of revenue shall prescribe the
form of the property tax statement and its contents. The
statement must contain a tabulated statement of the dollar
amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax
statement is prepared. The dollar amounts attributable to the
county, the state tax, the voter approved school tax, the other
local school tax, the township or municipality, and the total of
the metropolitan special taxing districts as defined in section
275.065, subdivision 3, paragraph (i), must be separately
stated. The amounts due all other special taxing districts, if
any, may be aggregated. If the county levy under this paragraph
includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for
that purpose must be separately stated from the remaining county
levy amount. The amount of the tax on homesteads qualifying
under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before
subtraction of the deferred property tax amount. The amount of
the tax on contamination value imposed under sections 270.91 to
270.98, if any, must also be separately stated. The dollar
amounts, including the dollar amount of any special assessments,
may be rounded to the nearest even whole dollar. For purposes
of this section whole odd-numbered dollars may be adjusted to
the next higher even-numbered dollar. The amount of market
value excluded under section 273.11, subdivision 16, if any,
must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and
sectional structures taxed as personal property shall contain
the same information that is required on the tax statements for
real property.

(c) new text begin Except as provided in paragraph (d), new text end real and personal
property tax statements must contain the following information
in the order given in this paragraph. The information must
contain the current year tax information in the right column
with the corresponding information for the previous year in a
column on the left:

(1) the property's estimated market value under section
273.11, subdivision 1;

(2) the property's taxable market value after reductions
under section 273.11, subdivisions 1a and 16;

(3) the property's gross tax, calculated by adding the
property's total property tax to the sum of the aids enumerated
in clause (4);

(4) a total of the following aids:

(i) education aids payable under chapters 122A, 123A, 123B,
124D, 125A, 126C, and 127A;

(ii) local government aids for cities, towns, and counties
under chapter 477A; and

(iii) disparity reduction aid under section 273.1398;

(5) for homestead residential and agricultural properties,
the credits under section 273.1384;

(6) any credits received under sections 273.119; 273.123;
273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
473H.10, except that the amount of credit received under section
273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph
(a).

(d) new text begin Real and personal property tax statements for
properties which are wholly or partially classified as homestead
must contain the property's household income, along with the
information required under paragraph (c), except that clauses
(1) and (2) shall only apply to the portion, if any, of the
property where the net tax capacity is not determined under
section 273.13, subdivision 34. The information must contain
the current year tax information in the right column with the
corresponding information for the previous year in a column on
the left.
new text end

new text begin (e) new text end If the county uses envelopes for mailing property tax
statements and if the county agrees, a taxing district may
include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget
deliberations for the current year, and encouraging taxpayers to
attend the hearings. If the county allows notices to be
included in the envelope containing the property tax statement,
and if more than one taxing district relative to a given
property decides to include a notice with the tax statement, the
county treasurer or auditor must coordinate the process and may
combine the information on a single announcement.

The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clause (4)
that local governments will receive in the following year. The
commissioner must certify this amount by January 1 of each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 13.

Minnesota Statutes 2004, section 276.04,
subdivision 3, is amended to read:

Subd. 3.

Mailing of tax statements.

new text begin The commissioner of
revenue, in the case of property wholly or partially classified
as homestead, or new text end the county treasurer new text begin , in the case of all other
properties, new text end shall mail to taxpayers statements of their personal
property taxes due not later than deleted text begin April 15 for property taxes
payable in 1990 and deleted text end March 31 deleted text begin thereafter deleted text end , except in the case of
manufactured homes and sectional structures taxed as personal
property. Statements of the real property taxes due shall be
mailed not later than deleted text begin April 15 for property taxes payable in
1990 and deleted text end March 31 deleted text begin thereafter deleted text end . The validity of the tax shall not
be affected by failure of the treasurer to mail the statement.
The taxpayer is defined as the owner who is responsible for the
payment of the tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 14.

Minnesota Statutes 2004, section 276.09, is
amended to read:

276.09 SETTLEMENT BETWEEN AUDITOR AND TREASURER.

On the later of May 20 of each year or 26 calendar days
after the postmark date on the envelopes containing real or
personal property tax statements, the new text begin commissioner of revenue
and the new text end county treasurer shall make full settlement with the
county auditor of all receipts collected for all purposes, from
the date of the last settlement up to and including each day
mentioned. The county auditor shall, within 30 days after the
settlement, send an abstract of it to the state auditor in the
form prescribed by the state auditor. At the settlement the
treasurer shall make complete returns of the receipts on the
current tax list, showing the amount collected on account of the
several funds included in the list.

Settlement of receipts from the later of May 20 or the
actual settlement date to December 31 of each year must be made
as provided in section 276.111.

For purposes of this section, "receipts" includes all tax
payments received deleted text begin by the county treasurer deleted text end on or before the
settlement date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end

Sec. 15.

new text begin [477A.09] SUPPLEMENTAL AID.
new text end

new text begin Subdivision 1. new text end

new text begin Determination of tax base loss. new text end

new text begin For taxes
payable in 2006, the commissioner of revenue shall determine the
change in net tax capacity and referendum market value in each
taxing jurisdiction in the state under sections 1 to 6. For
each jurisdiction whose net tax capacity or referendum market
value was reduced, the commissioner shall determine the revenue
loss attributable to the reduction by multiplying the amount
lost by the jurisdiction's tax capacity tax rate or referendum
market value tax rate for taxes payable in 2005.
new text end

new text begin Subd. 2. new text end

new text begin Aid amount. new text end

new text begin Each jurisdiction which was found
to have lost net tax capacity or referendum market value in
subdivision 1 shall be entitled to an annual aid payment. The
payment shall be equal to the aid appropriation under
subdivision 3 multiplied by the proportionate share of the
jurisdiction's loss as determined under subdivision 1, relative
to the loss of all jurisdictions in the state determined under
subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Notification. new text end

new text begin Each jurisdiction shall be
notified of its aid amount by August 1 of each assessment year.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation; payment. new text end

new text begin The sum of $280,000,000
is annually appropriated from the general fund to make the
payments required under this section. The aid amounts payable
to jurisdictions other than school districts is appropriated to
the commissioner of revenue; payments shall be made in the
manner described under section 477A.015. The aid amounts
payable to school districts are appropriated to the commissioner
of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids
payable in 2006 and subsequent years.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 273.1384, subdivision 1,
is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006 and subsequent years.
new text end