HF 1089

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property tax; creating a 
  1.3             citizens' investment and local government excellence 
  1.4             program designed to encourage citizen input in the 
  1.5             budget process; giving aids to the cities and counties 
  1.6             who participate in the program; providing for 
  1.7             exemption from certain truth in taxation hearing and 
  1.8             advertising requirements; amending Minnesota Statutes 
  1.9             2002, sections 275.065; 477A.03, subdivision 2; 
  1.10            proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 275. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [275.063] [CITIZENS' INVESTMENT AND LOCAL 
  1.14  GOVERNMENT EXCELLENCE PROGRAM.] 
  1.15     Subdivision 1.  [CITATION; PURPOSE.] This section shall be 
  1.16  called the "citizens' investment and local government excellence 
  1.17  program."  Its goals are to: 
  1.18     (1) enhance public participation in the property tax 
  1.19  system; 
  1.20     (2) educate the public on how property taxes are 
  1.21  determined; 
  1.22     (3) encourage the public to understand the budget process 
  1.23  of their county and city; 
  1.24     (4) encourage the public to become involved in helping 
  1.25  their local officials set spending priorities; and 
  1.26     (5) develop methods to measure local government service 
  1.27  quality improvement and budget efficiency. 
  1.28     Participation in this program by local governments is 
  2.1   voluntary.  However, to compensate local governments for their 
  2.2   costs and as an incentive to participate, local governments that 
  2.3   successfully accomplish the requirements are eligible to receive 
  2.4   a per capita participation aid under this program as contained 
  2.5   in subdivision 5.  For purposes of this section, "local 
  2.6   governments" only means all counties and all statutory and home 
  2.7   rule charter cities.  This program is meant to enhance and work 
  2.8   in conjunction with the public hearings and proposed notices 
  2.9   under section 275.065. 
  2.10     Subd. 2.  [NOTIFICATION TO ALL PROPERTY OWNERS.] (a) 
  2.11  Beginning in calendar year 2004, each participating local 
  2.12  government shall mail a letter between July 15 and July 22 to 
  2.13  all property owners in its taxing jurisdiction.  The letter must 
  2.14  contain the following: 
  2.15     (1) a one- to two-page explanation of the property tax 
  2.16  system prepared by the commissioner of revenue for distribution 
  2.17  under this section; 
  2.18     (2) a timeline and brief explanation of its budget process; 
  2.19     (3) a summary of its previous year's budget and property 
  2.20  tax levy; and 
  2.21     (4) a description, dates, and purposes of the upcoming 
  2.22  citizen budget workshops, which are designed to stress the 
  2.23  importance of citizen input in the budget process and in helping 
  2.24  to establish priorities. 
  2.25     (b) In the case of class 4 residential property used as a 
  2.26  residence for lease or rental periods of 30 days or more, the 
  2.27  property owner, agent, caretaker, or manager of the premises 
  2.28  must either: 
  2.29     (1) mail or deliver a copy of the letter to each tenant, 
  2.30  renter, or lessee; or 
  2.31     (2) post a copy of the letter in a conspicuous place on the 
  2.32  premises of the property. 
  2.33     Subd. 3.  [CITIZEN BUDGET WORKSHOP MEETINGS.] If a local 
  2.34  government has elected to participate in the program under 
  2.35  subdivision 1, it is required to hold at least one citizen 
  2.36  budget workshop meeting.  The meetings must be held sometime 
  3.1   between August 1 through August 25.  The meetings may be held in 
  3.2   the city hall, county courthouse, community centers, senior 
  3.3   citizen centers, libraries, or any other easily accessible 
  3.4   location within the local government's boundaries.  If the 
  3.5   meeting is scheduled at the city hall or county courthouse, and 
  3.6   this workshop is to be held in conjunction with a regularly 
  3.7   scheduled city council or county board meeting, it must be the 
  3.8   first item on the agenda.  The workshop meeting must, at a 
  3.9   minimum, include a discussion of the local government's budget 
  3.10  process, expenditures, and priorities; the proportion of the 
  3.11  total budget that is funded through property taxes; the amount 
  3.12  and type of revenue from state and local sources and the degree 
  3.13  to which those revenues are restricted; the amount and type of 
  3.14  reserves in the past year and the amount needed for cash flow 
  3.15  purposes; changes in any anticipated revenue in the near future; 
  3.16  and the amount of current indebtedness and any new capital 
  3.17  requests. 
  3.18     Except as provided in subdivision 4, to qualify for the 
  3.19  state aid under subdivision 5, there must be minimum attendance 
  3.20  at the budget workshop meetings based on the following schedule: 
  3.21     (1) a city with a population of between one and 2,500, the 
  3.22  greater of ten persons or 2.0 percent; 
  3.23     (2) a county or city with a population of between 2,501 and 
  3.24  10,000, the greater of 50 persons or 1.0 percent; 
  3.25     (3) a county or city with a population of between 10,001 
  3.26  and 20,000, the greater of 100 or 0.75 percent; 
  3.27     (4) a county or city with a population between 20,001 and 
  3.28  100,000, 150 persons plus 0.125 percent of population over 
  3.29  20,000; and 
  3.30     (5) a county or city with a population over 100,000, 250 
  3.31  persons. 
  3.32     For purposes of this section, population of the local 
  3.33  government has the same meaning as defined in section 477A.011, 
  3.34  subdivision 3.  The persons in attendance at the workshop must 
  3.35  be property owners or residents within the local government 
  3.36  conducting the workshop.  A record of attendance must be 
  4.1   maintained by the local government for each of the workshops. 
  4.2      Subd. 4.  [CITIZEN BUDGET ADVISORY COMMITTEE.] The minimum 
  4.3   attendance numbers specified in subdivision 3 may be reduced by 
  4.4   one-half if the local government has established a citizen 
  4.5   budget advisory committee.  For purposes of this section, a 
  4.6   "citizen budget advisory committee" is defined as a 
  4.7   representative group of at least five to 15 property owners or 
  4.8   residents of the local government that has been actively working 
  4.9   with the local government officials throughout the budget 
  4.10  process for the current calendar year. 
  4.11     Subd. 5.  [CITIZEN PARTICIPATION AID.] (a) Beginning in 
  4.12  calendar year 2005 and thereafter, each local government that 
  4.13  has satisfied the requirements under subdivision 2 and 
  4.14  subdivision 3 or 4 for the budget setting cycle for taxes 
  4.15  payable in that year, is eligible for an aid payment under this 
  4.16  section.  In the case of a city with a population under 2,500, 
  4.17  the aid is equal to the city's population, multiplied by $2, to 
  4.18  a maximum of $2,500.  In the case of all cities having a 
  4.19  population of 2,500 or greater and for all counties, the aid is 
  4.20  equal to the city's or county's population, multiplied by $1. 
  4.21     (b) To qualify for the aid under this section, the local 
  4.22  government must certify to the commissioner of revenue by 
  4.23  February 1 of the year in which the aid is to be paid that it 
  4.24  has complied with all requirements under subdivision 2 and 
  4.25  subdivision 3 or 4 for taxes levied in the previous year and 
  4.26  payable in the current year.  The certification shall be in the 
  4.27  form required by the commissioner. 
  4.28     (c) The commissioner of revenue shall make all necessary 
  4.29  calculations and make payments directly to the affected local 
  4.30  governments annually.  The commissioner shall notify the cities 
  4.31  and counties of the amount of aid by June 1 of the year in which 
  4.32  it will be paid.  The payment must be made on or before July 20 
  4.33  of each year. 
  4.34     Subd. 6.  [EXEMPTIONS FROM CERTAIN REQUIREMENTS.] Beginning 
  4.35  in calendar year 2005 and thereafter, each local government that 
  4.36  has satisfied the requirements under subdivision 2 and 
  5.1   subdivision 3 or 4 for the budget setting cycle for taxes 
  5.2   payable in the following year is, for that same year: 
  5.3      (1) exempt from the public hearing requirements in section 
  5.4   275.065, subdivision 6, except that the local government must 
  5.5   list on the notice of proposed taxes under section 275.065, 
  5.6   subdivision 3, the date that the city council or county board 
  5.7   will be adopting its certified levy; and 
  5.8      (2) allowed to reduce the public advertisement under 
  5.9   section 275.065, subdivision 5a, to 1/16 page in size of a 
  5.10  standard-size or a tabloid-size newspaper and is required to 
  5.11  include in that newspaper advertisement only the information 
  5.12  stated in section 275.065, subdivision 5a, on the current and 
  5.13  proposed property tax amounts and percent change. 
  5.14     Subd. 7.  [LOCAL GOVERNMENT EXCELLENCE PROGRAM.] The local 
  5.15  governments, in conjunction with their various local government 
  5.16  associations, shall form working groups to discuss how to 
  5.17  measure service quality improvement and budget efficiency.  The 
  5.18  groups must also explore what additional state incentives may be 
  5.19  provided to local governments to achieve the needed outcomes and 
  5.20  goals.  They must report their findings to the chairs of the 
  5.21  house and senate committees on taxes during the 2006 legislative 
  5.22  session. 
  5.23     Sec. 2.  Minnesota Statutes 2002, section 275.065, is 
  5.24  amended to read: 
  5.25     275.065 [PROPOSED PROPERTY TAXES; NOTICE.] 
  5.26     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
  5.27  law or charter to the contrary, on or before September 15 1, 
  5.28  each taxing authority, other than a school district, shall adopt 
  5.29  a proposed budget and shall certify to the county auditor the 
  5.30  proposed or, in the case of a town, the final property tax levy 
  5.31  for taxes payable in the following year. 
  5.32     (b) On or before September 30 1, each school district shall 
  5.33  certify to the county auditor the proposed property tax levy for 
  5.34  taxes payable in the following year.  The school district shall 
  5.35  certify the proposed levy as: 
  5.36     (1) the state determined school levy amount as prescribed 
  6.1   under section 126C.13, subdivision 2; 
  6.2      (2) voter approved referendum and debt levies; and 
  6.3      (3) the sum of the remaining school levies, or the maximum 
  6.4   levy limitation certified by the commissioner of children, 
  6.5   families, and learning according to section 126C.48, subdivision 
  6.6   1, less the amounts levied under clauses (1) and (2). 
  6.7      (c) If the board of estimate and taxation or any similar 
  6.8   board that establishes maximum tax levies for taxing 
  6.9   jurisdictions within a first class city certifies the maximum 
  6.10  property tax levies for funds under its jurisdiction by charter 
  6.11  to the county auditor by September 15 1, the city shall be 
  6.12  deemed to have certified its levies for those taxing 
  6.13  jurisdictions. 
  6.14     (d) For purposes of this section, "taxing authority" 
  6.15  includes all home rule and statutory cities, towns, counties, 
  6.16  school districts, and special taxing districts as defined in 
  6.17  section 275.066.  Intermediate school districts that levy a tax 
  6.18  under chapter 124 or 136D, joint powers boards established under 
  6.19  sections 123A.44 to 123A.446, and common school districts No. 
  6.20  323, Franconia, and No. 815, Prinsburg, are also special taxing 
  6.21  districts for purposes of this section.  
  6.22     Subd. 1a.  [OVERLAPPING JURISDICTIONS.] In the case of a 
  6.23  taxing authority lying in two or more counties, the home county 
  6.24  auditor shall certify the proposed levy and the proposed local 
  6.25  tax rate to the other county auditor by September 20 5.  The 
  6.26  home county auditor must estimate the levy or rate in preparing 
  6.27  the notices required in subdivision 3, if the other county has 
  6.28  not certified the appropriate information.  If requested by the 
  6.29  home county auditor, the other county auditor must furnish an 
  6.30  estimate to the home county auditor. 
  6.31     Subd. 1c.  [LEVY; SHARED, MERGED, CONSOLIDATED SERVICES.] 
  6.32  If two or more taxing authorities are in the process of 
  6.33  negotiating an agreement for sharing, merging, or consolidating 
  6.34  services between those taxing authorities at the time the 
  6.35  proposed levy is to be certified under subdivision 1, each 
  6.36  taxing authority involved in the negotiation shall certify its 
  7.1   total proposed levy as provided in that subdivision, including a 
  7.2   notification to the county auditor of the specific service 
  7.3   involved in the agreement which is not yet finalized.  The 
  7.4   affected taxing authorities may amend their proposed levies 
  7.5   under subdivision 1 until October September 10 for levy amounts 
  7.6   relating only to the specific service involved. 
  7.7      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  7.8   county auditor shall prepare and the county treasurer shall 
  7.9   deliver after November 10 October 15 and on or before November 
  7.10  October 24 each year, by first class mail to each taxpayer at 
  7.11  the address listed on the county's current year's assessment 
  7.12  roll, a notice of proposed property taxes.  
  7.13     (b) The commissioner of revenue shall prescribe the form of 
  7.14  the notice. 
  7.15     (c) The notice must inform taxpayers that it contains the 
  7.16  amount of property taxes each taxing authority proposes to 
  7.17  collect for taxes payable the following year.  In the case of a 
  7.18  town, or in the case of the state general tax, the final tax 
  7.19  amount will be its proposed tax.  In the case of taxing 
  7.20  authorities required to hold a public meeting under subdivision 
  7.21  6, the notice must clearly state that each taxing authority, 
  7.22  including regional library districts established under section 
  7.23  134.201, and including the metropolitan taxing districts as 
  7.24  defined in paragraph (i), but excluding all other special taxing 
  7.25  districts and towns, will hold a public meeting to receive 
  7.26  public testimony on the proposed budget and proposed or final 
  7.27  property tax levy, or, in case of a school district, on the 
  7.28  current budget and proposed property tax levy.  It must clearly 
  7.29  state the time and place of each taxing authority's meeting, a 
  7.30  telephone number for the taxing authority that taxpayers may 
  7.31  call if they have questions related to the notice, and an 
  7.32  address where comments will be received by mail.  
  7.33     (d) The notice must state for each parcel: 
  7.34     (1) the market value of the property as determined under 
  7.35  section 273.11, and used for computing property taxes payable in 
  7.36  the following year and for taxes payable in the current year as 
  8.1   each appears in the records of the county assessor on November 
  8.2   October 1 of the current year; and, in the case of residential 
  8.3   property, whether the property is classified as homestead or 
  8.4   nonhomestead.  The notice must clearly inform taxpayers of the 
  8.5   years to which the market values apply and that the values are 
  8.6   final values; 
  8.7      (2) the items listed below, shown separately by county, 
  8.8   city or town, and state general tax, net of the residential and 
  8.9   agricultural homestead credit under section 273.1384, voter 
  8.10  approved school levy, other local school levy, and the sum of 
  8.11  the special taxing districts, and as a total of all taxing 
  8.12  authorities:  
  8.13     (i) the actual tax for taxes payable in the current year; 
  8.14     (ii) the tax change due to spending factors, defined as the 
  8.15  proposed tax minus the constant spending tax amount; 
  8.16     (iii) the tax change due to other factors, defined as the 
  8.17  constant spending tax amount minus the actual current year tax; 
  8.18  and 
  8.19     (iv) the proposed tax amount. 
  8.20     If the county levy under clause (2) includes an amount for 
  8.21  a lake improvement district as defined under sections 103B.501 
  8.22  to 103B.581, the amount attributable for that purpose must be 
  8.23  separately stated from the remaining county levy amount.  
  8.24     In the case of a town or the state general tax, the final 
  8.25  tax shall also be its proposed tax unless the town changes its 
  8.26  levy at a special town meeting under section 365.52.  If a 
  8.27  school district has certified under section 126C.17, subdivision 
  8.28  9, that a referendum will be held in the school district at the 
  8.29  November general election, the county auditor must note next to 
  8.30  the school district's proposed amount that a referendum is 
  8.31  pending and that, if approved by the voters, the tax amount may 
  8.32  be higher than shown on the notice.  In the case of the city of 
  8.33  Minneapolis, the levy for the Minneapolis library board and the 
  8.34  levy for Minneapolis park and recreation shall be listed 
  8.35  separately from the remaining amount of the city's levy.  In the 
  8.36  case of the city of St. Paul, the levy for the St. Paul library 
  9.1   agency must be listed separately from the remaining amount of 
  9.2   the city's levy.  In the case of a parcel where tax increment or 
  9.3   the fiscal disparities areawide tax under chapter 276A or 473F 
  9.4   applies, the proposed tax levy on the captured value or the 
  9.5   proposed tax levy on the tax capacity subject to the areawide 
  9.6   tax must each be stated separately and not included in the sum 
  9.7   of the special taxing districts; and 
  9.8      (3) the increase or decrease between the total taxes 
  9.9   payable in the current year and the total proposed taxes, 
  9.10  expressed as a percentage. 
  9.11     For purposes of this section, the amount of the tax on 
  9.12  homesteads qualifying under the senior citizens' property tax 
  9.13  deferral program under chapter 290B is the total amount of 
  9.14  property tax before subtraction of the deferred property tax 
  9.15  amount. 
  9.16     (e) The notice must clearly state that the proposed or 
  9.17  final taxes do not include the following: 
  9.18     (1) special assessments; 
  9.19     (2) levies approved by the voters after the date the 
  9.20  proposed taxes are certified, including bond referenda, school 
  9.21  district levy referenda, and levy limit increase referenda; 
  9.22     (3) amounts necessary to pay cleanup or other costs due to 
  9.23  a natural disaster occurring after the date the proposed taxes 
  9.24  are certified; 
  9.25     (4) amounts necessary to pay tort judgments against the 
  9.26  taxing authority that become final after the date the proposed 
  9.27  taxes are certified; and 
  9.28     (5) the contamination tax imposed on properties which 
  9.29  received market value reductions for contamination. 
  9.30     (f) Except as provided in subdivision 7, failure of the 
  9.31  county auditor to prepare or the county treasurer to deliver the 
  9.32  notice as required in this section does not invalidate the 
  9.33  proposed or final tax levy or the taxes payable pursuant to the 
  9.34  tax levy. 
  9.35     (g) If the notice the taxpayer receives under this section 
  9.36  lists the property as nonhomestead, and satisfactory 
 10.1   documentation is provided to the county assessor by the 
 10.2   applicable deadline, and the property qualifies for the 
 10.3   homestead classification in that assessment year, the assessor 
 10.4   shall reclassify the property to homestead for taxes payable in 
 10.5   the following year. 
 10.6      (h) In the case of class 4 residential property used as a 
 10.7   residence for lease or rental periods of 30 days or more, the 
 10.8   taxpayer must either: 
 10.9      (1) mail or deliver a copy of the notice of proposed 
 10.10  property taxes to each tenant, renter, or lessee; or 
 10.11     (2) post a copy of the notice in a conspicuous place on the 
 10.12  premises of the property.  
 10.13     The notice must be mailed or posted by the taxpayer by 
 10.14  November October 27 or within three days of receipt of the 
 10.15  notice, whichever is later.  A taxpayer may notify the county 
 10.16  treasurer of the address of the taxpayer, agent, caretaker, or 
 10.17  manager of the premises to which the notice must be mailed in 
 10.18  order to fulfill the requirements of this paragraph. 
 10.19     (i) For purposes of this subdivision, subdivisions 5a and 
 10.20  6, "metropolitan special taxing districts" means the following 
 10.21  taxing districts in the seven-county metropolitan area that levy 
 10.22  a property tax for any of the specified purposes listed below: 
 10.23     (1) metropolitan council under section 473.132, 473.167, 
 10.24  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 10.25     (2) metropolitan airports commission under section 473.667, 
 10.26  473.671, or 473.672; and 
 10.27     (3) metropolitan mosquito control commission under section 
 10.28  473.711. 
 10.29     For purposes of this section, any levies made by the 
 10.30  regional rail authorities in the county of Anoka, Carver, 
 10.31  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 10.32  398A shall be included with the appropriate county's levy and 
 10.33  shall be discussed at that county's public hearing. 
 10.34     (j) If a statutory or home rule charter city or a town has 
 10.35  exercised the local levy option provided by section 473.388, 
 10.36  subdivision 7, it may include in the notice of its proposed 
 11.1   taxes the amount of its proposed taxes attributable to its 
 11.2   exercise of the option.  In the first year of the city or town's 
 11.3   exercise of this option, the statement shall include an estimate 
 11.4   of the reduction of the metropolitan council's tax on the parcel 
 11.5   due to exercise of that option.  The metropolitan council's levy 
 11.6   shall be adjusted accordingly. 
 11.7      Subd. 3a.  [CONSTANT SPENDING LEVY AMOUNT.] (a) For 
 11.8   purposes of this section, "constant spending levy amount" for a 
 11.9   county, city, town, or special taxing district means the 
 11.10  property tax levy that the taxing authority would need to levy 
 11.11  so that the sum of (i) its levy, including its fiscal 
 11.12  disparities distribution levy under section 276A.06, subdivision 
 11.13  3, clause (a), or 473F.08, subdivision 3, clause (a), plus (ii) 
 11.14  its property tax aid amounts, would remain constant from the 
 11.15  current year to the proposed year, taking into account the 
 11.16  fiscal disparities distribution levy amounts and the property 
 11.17  tax aid amounts that have been certified for the proposed year.  
 11.18  For the purposes of this paragraph, property tax aids include 
 11.19  homestead and agricultural credit aid under section 273.1398, 
 11.20  subdivision 2, local government aid under section 477A.013, 
 11.21  county criminal justice aid under section 477A.0121, and family 
 11.22  preservation aid under section 477A.0122. 
 11.23     (b) For the state determined school tax, "constant spending 
 11.24  levy amount" is the same as the proposed tax. 
 11.25     (c) For the voter approved school levy, "constant spending 
 11.26  levy amount" is the result of the following computation:  (i) 
 11.27  compute the current year's revenue per pupil in average daily 
 11.28  membership as the ratio of the voter approved referendum and 
 11.29  debt service levy plus aid revenue to the number of pupils in 
 11.30  average daily membership, as estimated at the time of levy 
 11.31  certification the previous December; (ii) compute the proposed 
 11.32  year's levy ratio as ratio of the proposed year's levy 
 11.33  limitation for voter approved referendum and debt service 
 11.34  revenue to the maximum referendum and debt service levy plus aid 
 11.35  revenue for the proposed year, at the time of proposed levy 
 11.36  certification in September; and (iii) compute the "constant 
 12.1   spending levy amount" as the product of the current year's 
 12.2   revenue per pupil from clause (i) times the proposed year's levy 
 12.3   ratio from clause (ii) times the proposed year's pupils in 
 12.4   average daily membership. 
 12.5      (d) For the sum of all other school levies not included in 
 12.6   paragraph (b) or (c), "constant spending levy amount" is the 
 12.7   result of the following computation:  (i) compute the current 
 12.8   year's revenue per pupil in average daily membership as the 
 12.9   ratio of the levy plus associated aid revenue to the number of 
 12.10  pupils in average daily membership, as estimated at the time of 
 12.11  levy certification the previous December; (ii) compute the 
 12.12  proposed year's levy ratio as ratio of the proposed year's levy 
 12.13  limitation to the maximum levy plus associated aid revenue for 
 12.14  the proposed year, estimated at the time of proposed levy 
 12.15  certification in September; and (iii) compute the "constant 
 12.16  spending levy amount" as the product of the current year's 
 12.17  revenue per pupil from clause (i) times the proposed year's levy 
 12.18  ratio from clause (ii) times the proposed year's pupils in 
 12.19  average daily membership. 
 12.20     (e) Each year, the commissioner of children, families, and 
 12.21  learning must compute and report to the county auditor each 
 12.22  school district's constant spending levy amounts by September 30 
 12.23  1.  In no case shall a constant spending levy amount be less 
 12.24  than $0.  For the purposes of this subdivision, school homestead 
 12.25  and agricultural credit aid under section 273.1398, subdivision 
 12.26  2, shall be included in the other school levy category.  For 
 12.27  purposes of this subdivision, the school fiscal disparities 
 12.28  distribution levy shall be apportioned proportionately among 
 12.29  levy categories. 
 12.30     (f) For the tax increment financing tax, and the fiscal 
 12.31  disparities tax, the "constant spending levy amount" is the same 
 12.32  as the proposed tax. 
 12.33     Subd. 4.  [COSTS.] If the reasonable cost of the county 
 12.34  auditor's services and the cost of preparing and mailing the 
 12.35  notice required in this section exceed the amount distributed to 
 12.36  the county by the commissioner of revenue to administer this 
 13.1   section, the taxing authority must reimburse the county for the 
 13.2   excess cost.  The excess cost must be apportioned between taxing 
 13.3   jurisdictions as follows:  
 13.4      (1) one-third is allocated to the county; 
 13.5      (2) one-third is allocated to cities and towns within the 
 13.6   county; and 
 13.7      (3) one-third is allocated to school districts within the 
 13.8   county.  
 13.9      The amounts in clause (2) must be further apportioned among 
 13.10  the cities and towns in the proportion that the number of 
 13.11  parcels in the city and town bears to the number of parcels in 
 13.12  all the cities and towns within the county.  The amount in 
 13.13  clause (3) must be further apportioned among the school 
 13.14  districts in the proportion that the number of parcels in the 
 13.15  school district bears to the number of parcels in all school 
 13.16  districts within the county. 
 13.17     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
 13.18  population of more than 2,500, county, a metropolitan special 
 13.19  taxing district as defined in subdivision 3, paragraph (i), a 
 13.20  regional library district established under section 134.201, or 
 13.21  school district shall advertise in a newspaper a notice of its 
 13.22  intent to adopt a budget and property tax levy or, in the case 
 13.23  of a school district, to review its current budget and proposed 
 13.24  property taxes payable in the following year, at a public 
 13.25  hearing, if a public hearing is required under subdivision 6.  
 13.26  The notice must be published not less than two business days nor 
 13.27  more than six business days before the hearing. 
 13.28     The advertisement must be at least one-eighth page in size 
 13.29  of a standard-size or a tabloid-size newspaper.  The 
 13.30  advertisement must not be placed in the part of the newspaper 
 13.31  where legal notices and classified advertisements appear.  The 
 13.32  advertisement must be published in an official newspaper of 
 13.33  general circulation in the taxing authority.  The newspaper 
 13.34  selected must be one of general interest and readership in the 
 13.35  community, and not one of limited subject matter.  The 
 13.36  advertisement must appear in a newspaper that is published at 
 14.1   least once per week.  
 14.2      For purposes of this section, the metropolitan special 
 14.3   taxing district's advertisement must only be published in the 
 14.4   Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 14.5      In addition to other requirements, a county and a city 
 14.6   having a population of more than 2,500 must show in the public 
 14.7   advertisement required under this subdivision the current local 
 14.8   tax rate, the proposed local tax rate if no property tax levy 
 14.9   increase is adopted, and the proposed rate if the proposed levy 
 14.10  is adopted.  For purposes of this subdivision, "local tax rate" 
 14.11  means the city's or county's net tax capacity levy divided by 
 14.12  the city's or county's taxable net tax capacity.  
 14.13     (b) The advertisement for school districts, metropolitan 
 14.14  special taxing districts, and regional library districts must be 
 14.15  in the following form, except that the notice for a school 
 14.16  district may include references to the current budget in regard 
 14.17  to proposed property taxes.  
 14.18                             "NOTICE OF
 14.19                      PROPOSED PROPERTY TAXES
 14.20                   (School District/Metropolitan
 14.21                  Special Taxing District/Regional
 14.22                   Library District) of .........
 14.23  The governing body of ........ will soon hold budget hearings 
 14.24  and vote on the property taxes for (metropolitan special taxing 
 14.25  district/regional library district services that will be 
 14.26  provided in (year)/school district services that will be 
 14.27  provided in (year) and (year)). 
 14.28                     NOTICE OF PUBLIC HEARING:
 14.29  All concerned citizens are invited to attend a public hearing 
 14.30  and express their opinions on the proposed (school 
 14.31  district/metropolitan special taxing district/regional library 
 14.32  district) budget and property taxes, or in the case of a school 
 14.33  district, its current budget and proposed property taxes, 
 14.34  payable in the following year.  The hearing will be held on 
 14.35  (Month/Day/Year) at (Time) at (Location, Address)." 
 14.36     (c) The advertisement for cities and counties must be in 
 15.1   the following form. 
 15.2                         "NOTICE OF PROPOSED
 15.3                   TOTAL BUDGET AND PROPERTY TAXES
 15.4   The (city/county) governing body or board of commissioners will 
 15.5   hold a public hearing to discuss the budget and to vote on the 
 15.6   amount of property taxes to collect for services the 
 15.7   (city/county) will provide in (year). 
 15.8      
 15.9   SPENDING:  The total budget amounts below compare 
 15.10  (city's/county's) (year) total actual budget with the amount the 
 15.11  (city/county) proposes to spend in (year). 
 15.12     
 15.13  (Year) Total          Proposed (Year)         Change from 
 15.14  Actual Budget         Budget                  (Year)-(Year)
 15.15     
 15.16  $.......              $.......                ...%
 15.17     
 15.18  TAXES:  The property tax amounts below compare that portion of 
 15.19  the current budget levied in property taxes in (city/county) for 
 15.20  (year) with the property taxes the (city/county) proposes to 
 15.21  collect in (year). 
 15.22     
 15.23  (Year) Property       Proposed (Year)          Change from
 15.24  Taxes                 Property Taxes           (Year)-(Year)
 15.25     
 15.26  $.......              $.......                 ...% 
 15.27     
 15.28  LOCAL TAX RATE COMPARISON:  The current local tax rate, the 
 15.29  local tax rate if no tax levy increase is adopted, and the 
 15.30  proposed local tax rate if the proposed levy is adopted. 
 15.31     
 15.32  (Year)                (Year)                       (Year) 
 15.33  Tax Rate              Tax Rate if NO               Proposed 
 15.34                        Levy Increase                Tax Rate 
 15.36  .......               .......                      ....... 
 16.1      
 16.2                      ATTEND THE PUBLIC HEARING
 16.3   All (city/county) residents are invited to attend the public 
 16.4   hearing of the (city/county) to express your opinions on the 
 16.5   budget and the proposed amount of (year) property taxes.  The 
 16.6   hearing will be held on: 
 16.7                        (Month/Day/Year/Time)
 16.8                          (Location/Address)
 16.9   If the discussion of the budget cannot be completed, a time and 
 16.10  place for continuing the discussion will be announced at the 
 16.11  hearing.  You are also invited to send your written comments to: 
 16.12                           (City/County)
 16.13                        (Location/Address)"
 16.14     (d) For purposes of this subdivision, the budget amounts 
 16.15  listed on the advertisement mean: 
 16.16     (1) for cities, the total government fund expenditures, as 
 16.17  defined by the state auditor under section 471.6965, less any 
 16.18  expenditures for improvements or services that are specially 
 16.19  assessed or charged under chapter 429, 430, 435, or the 
 16.20  provisions of any other law or charter; and 
 16.21     (2) for counties, the total government fund expenditures, 
 16.22  as defined by the state auditor under section 375.169, less any 
 16.23  expenditures for direct payments to recipients or providers for 
 16.24  the human service aids listed below: 
 16.25     (i) Minnesota family investment program under chapters 256J 
 16.26  and 256K; 
 16.27     (ii) medical assistance under sections 256B.041, 
 16.28  subdivision 5, and 256B.19, subdivision 1; 
 16.29     (iii) general assistance medical care under section 
 16.30  256D.03, subdivision 6; 
 16.31     (iv) general assistance under section 256D.03, subdivision 
 16.32  2; 
 16.33     (v) emergency assistance under section 256J.48; 
 16.34     (vi) Minnesota supplemental aid under section 256D.36, 
 16.35  subdivision 1; 
 16.36     (vii) preadmission screening under section 256B.0911, and 
 17.1   alternative care grants under section 256B.0913; 
 17.2      (viii) general assistance medical care claims processing, 
 17.3   medical transportation and related costs under section 256D.03, 
 17.4   subdivision 4; 
 17.5      (ix) medical transportation and related costs under section 
 17.6   256B.0625, subdivisions 17 to 18a; 
 17.7      (x) group residential housing under section 256I.05, 
 17.8   subdivision 8, transferred from programs in clauses (iv) and 
 17.9   (vi); or 
 17.10     (xi) any successor programs to those listed in clauses (i) 
 17.11  to (x). 
 17.12     (e) A city with a population of over 500 but not more than 
 17.13  2,500 that is required to hold a public hearing under 
 17.14  subdivision 6 must advertise by posted notice as defined in 
 17.15  section 645.12, subdivision 1.  The advertisement must be posted 
 17.16  at the time provided in paragraph (a).  It must be in the form 
 17.17  required in paragraph (b). 
 17.18     (f) For purposes of this subdivision, the population of a 
 17.19  city is the most recent population as determined by the state 
 17.20  demographer under section 4A.02. 
 17.21     (g) The commissioner of revenue, subject to the approval of 
 17.22  the chairs of the house and senate tax committees, shall 
 17.23  prescribe the form and format of the advertisements required 
 17.24  under this subdivision. 
 17.25     Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 17.26  (a) For purposes of this section, the following terms shall have 
 17.27  the meanings given: 
 17.28     (1) "Initial hearing" means the first and primary hearing 
 17.29  held to discuss the taxing authority's proposed budget and 
 17.30  proposed property tax levy for taxes payable in the following 
 17.31  year, or, for school districts, the current budget and the 
 17.32  proposed property tax levy for taxes payable in the following 
 17.33  year. 
 17.34     (2) "Continuation hearing" means a hearing held to complete 
 17.35  the initial hearing, if the initial hearing is not completed on 
 17.36  its scheduled date. 
 18.1      (3) "Subsequent hearing" means the hearing held to adopt 
 18.2   the taxing authority's final property tax levy, and, in the case 
 18.3   of taxing authorities other than school districts, the final 
 18.4   budget, for taxes payable in the following year. 
 18.5      (b) Between November 29 9 and December 20 1, the governing 
 18.6   bodies of a city that has a population over 500, county, 
 18.7   metropolitan special taxing districts as defined in subdivision 
 18.8   3, paragraph (i), and regional library districts shall each hold 
 18.9   an initial public hearing to discuss and seek public comment on 
 18.10  its final budget and property tax levy for taxes payable in the 
 18.11  following year, and the governing body of the school district 
 18.12  shall hold an initial public hearing to review its current 
 18.13  budget and proposed property tax levy for taxes payable in the 
 18.14  following year.  The metropolitan special taxing districts shall 
 18.15  be required to hold only a single joint initial public hearing, 
 18.16  the location of which will be determined by the affected 
 18.17  metropolitan agencies.  A city, county, metropolitan special 
 18.18  taxing district as defined in subdivision 3, paragraph (i), 
 18.19  regional library district established under section 134.201, or 
 18.20  school district is not required to hold a public hearing under 
 18.21  this subdivision unless its proposed property tax levy for taxes 
 18.22  payable in the following year, as certified under subdivision 1, 
 18.23  has increased over its final property tax levy for taxes payable 
 18.24  in the current year by a percentage that is greater than the 
 18.25  percentage increase in the implicit price deflator for 
 18.26  government consumption expenditures and gross investment for 
 18.27  state and local governments prepared by the Bureau of Economic 
 18.28  Analysts of the United States Department of Commerce for the 
 18.29  12-month period ending March 31 of the current year. 
 18.30     (c) The initial hearing must be held after 5:00 p.m. if 
 18.31  scheduled on a day other than Saturday.  No initial hearing may 
 18.32  be held on a Sunday.  
 18.33     (d) At the initial hearing under this subdivision, the 
 18.34  percentage increase in property taxes proposed by the taxing 
 18.35  authority, if any, and the specific purposes for which property 
 18.36  tax revenues are being increased must be discussed.  During the 
 19.1   discussion, the governing body shall hear comments regarding a 
 19.2   proposed increase and explain the reasons for the proposed 
 19.3   increase.  The public shall be allowed to speak and to ask 
 19.4   questions.  At the public hearing, the school district must also 
 19.5   provide and discuss information on the distribution of its 
 19.6   revenues by revenue source, and the distribution of its spending 
 19.7   by program area.  
 19.8      (e) If the initial hearing is not completed on its 
 19.9   scheduled date, the taxing authority must announce, prior to 
 19.10  adjournment of the hearing, the date, time, and place for the 
 19.11  continuation of the hearing.  The continuation hearing must be 
 19.12  held at least five business days but no more than 14 business 
 19.13  days after the initial hearing.  A continuation hearing may not 
 19.14  be held later than December 20 except as provided in paragraphs 
 19.15  (f) and (g).  A continuation hearing must be held after 5:00 
 19.16  p.m. if scheduled on a day other than Saturday.  No continuation 
 19.17  hearing may be held on a Sunday. 
 19.18     (f) The governing body of a county shall hold its initial 
 19.19  hearing on the first second Thursday in December November each 
 19.20  year, and may hold additional initial hearings on other dates 
 19.21  before December 20 1 if necessary for the convenience of county 
 19.22  residents.  If the county needs a continuation of its hearing, 
 19.23  the continuation hearing shall be held on the third Tuesday 
 19.24  in December.  If the third Tuesday in December falls on December 
 19.25  21, the county's continuation hearing shall be held on Monday, 
 19.26  December 20 November.  
 19.27     (g) The metropolitan special taxing districts shall hold a 
 19.28  joint initial public hearing on the first second Wednesday of 
 19.29  December November.  A continuation hearing, if necessary, shall 
 19.30  be held on the second third Wednesday of December even if that 
 19.31  second Wednesday is after December 10 November. 
 19.32     (h) The county auditor shall provide for the coordination 
 19.33  of initial and continuation hearing dates for all school 
 19.34  districts and cities within the county to prevent conflicts 
 19.35  under clauses (i) and (j). 
 19.36     (i) By August 10, each school board and the board of the 
 20.1   regional library district shall certify to the county auditors 
 20.2   of the counties in which the school district or regional library 
 20.3   district is located the dates on which it elects to hold its 
 20.4   initial hearing and any continuation hearing.  If a school board 
 20.5   or regional library district does not certify these dates by 
 20.6   August 10, the auditor will assign the initial and continuation 
 20.7   hearing dates.  The dates elected or assigned must not conflict 
 20.8   with the initial and continuation hearing dates of the county or 
 20.9   the metropolitan special taxing districts.  
 20.10     (j) By August 20, the county auditor shall notify the 
 20.11  clerks of the cities within the county of the dates on which 
 20.12  school districts and regional library districts have elected to 
 20.13  hold their initial and continuation hearings.  At the time a 
 20.14  city certifies its proposed levy under subdivision 1 it shall 
 20.15  certify the dates on which it elects to hold its initial hearing 
 20.16  and any continuation hearing.  Until September 15, the first and 
 20.17  second Mondays Monday of December are is reserved for the use of 
 20.18  the cities.  If a city does not certify its hearing dates by 
 20.19  September 15, the auditor shall assign the initial and 
 20.20  continuation hearing dates.  The dates elected or assigned for 
 20.21  the initial hearing must not conflict with the initial hearing 
 20.22  dates of the county, metropolitan special taxing districts, 
 20.23  regional library districts, or school districts within which the 
 20.24  city is located.  To the extent possible, the dates of the 
 20.25  city's continuation hearing should not conflict with the 
 20.26  continuation hearing dates of the county, metropolitan special 
 20.27  taxing districts, regional library districts, or school 
 20.28  districts within which the city is located.  This paragraph does 
 20.29  not apply to cities of 500 population or less. 
 20.30     (k) The county initial hearing date and the city, 
 20.31  metropolitan special taxing district, regional library district, 
 20.32  and school district initial hearing dates must be designated on 
 20.33  the notices required under subdivision 3.  The continuation 
 20.34  hearing dates need not be stated on the notices.  
 20.35     (l) At a subsequent hearing, each county, school district, 
 20.36  city over 500 population, and metropolitan special taxing 
 21.1   district may amend its proposed property tax levy and must adopt 
 21.2   a final property tax levy.  Each county, city over 500 
 21.3   population, and metropolitan special taxing district may also 
 21.4   amend its proposed budget and must adopt a final budget at the 
 21.5   subsequent hearing.  The final property tax levy must be adopted 
 21.6   prior to adopting the final budget.  A school district is not 
 21.7   required to adopt its final budget at the subsequent hearing.  
 21.8   The subsequent hearing of a taxing authority must be held on a 
 21.9   date subsequent to the date of the taxing authority's initial 
 21.10  public hearing.  If a continuation hearing is held, the 
 21.11  subsequent hearing must be held either immediately following the 
 21.12  continuation hearing or on a date subsequent to the continuation 
 21.13  hearing.  The subsequent hearing may be held at a regularly 
 21.14  scheduled board or council meeting or at a special meeting 
 21.15  scheduled for the purposes of the subsequent hearing.  The 
 21.16  subsequent hearing of a taxing authority does not have to be 
 21.17  coordinated by the county auditor to prevent a conflict with an 
 21.18  initial hearing, a continuation hearing, or a subsequent hearing 
 21.19  of any other taxing authority.  All subsequent hearings must be 
 21.20  held prior to five working days after December 20 1 of the levy 
 21.21  year.  The date, time, and place of the subsequent hearing must 
 21.22  be announced at the initial public hearing or at the 
 21.23  continuation hearing. 
 21.24     (m) The property tax levy certified under section 275.07 by 
 21.25  a city of any population, county, metropolitan special taxing 
 21.26  district, regional library district, or school district must not 
 21.27  exceed the proposed levy determined under subdivision 1, except 
 21.28  by an amount up to the sum of the following amounts: 
 21.29     (1) the amount of a school district levy whose voters 
 21.30  approved a referendum to increase taxes under section 123B.63, 
 21.31  subdivision 3, or 126C.17, subdivision 9, after the proposed 
 21.32  levy was certified; 
 21.33     (2) the amount of a city or county levy approved by the 
 21.34  voters after the proposed levy was certified; 
 21.35     (3) the amount of a levy to pay principal and interest on 
 21.36  bonds approved by the voters under section 475.58 after the 
 22.1   proposed levy was certified; 
 22.2      (4) the amount of a levy to pay costs due to a natural 
 22.3   disaster occurring after the proposed levy was certified, if 
 22.4   that amount is approved by the commissioner of revenue under 
 22.5   subdivision 6a; 
 22.6      (5) the amount of a levy to pay tort judgments against a 
 22.7   taxing authority that become final after the proposed levy was 
 22.8   certified, if the amount is approved by the commissioner of 
 22.9   revenue under subdivision 6a; 
 22.10     (6) the amount of an increase in levy limits certified to 
 22.11  the taxing authority by the commissioner of children, families, 
 22.12  and learning or the commissioner of revenue after the proposed 
 22.13  levy was certified; and 
 22.14     (7) the amount required under section 126C.55. 
 22.15     (n) This subdivision does not apply to towns and special 
 22.16  taxing districts other than regional library districts and 
 22.17  metropolitan special taxing districts. 
 22.18     (o) Notwithstanding the requirements of this section, the 
 22.19  employer is required to meet and negotiate over employee 
 22.20  compensation as provided for in chapter 179A.  
 22.21     Subd. 6a.  [APPROVAL OF COMMISSIONER.] (a) A taxing 
 22.22  authority may appeal to the commissioner of revenue for 
 22.23  authorization to levy an amount over the amount of the proposed 
 22.24  levy.  The taxing authority must provide evidence satisfactory 
 22.25  to the commissioner that it has incurred costs for the purposes 
 22.26  specified in paragraph (b).  The commissioner may approve an 
 22.27  increase in the taxing authority's levy of up to the amount of 
 22.28  costs incurred or a lesser amount determined by the 
 22.29  commissioner.  The commissioner's decision is final.  
 22.30     (b) A levy addition may be made under paragraph (a) for the 
 22.31  following costs incurred after the proposed levy is certified:  
 22.32  (1) the unreimbursed costs to satisfy judgments rendered against 
 22.33  the taxing authority by a court of competent jurisdiction in a 
 22.34  tort action in excess of $50,000 or ten percent of the current 
 22.35  year's proposed certified levy whichever is less; and (2) the 
 22.36  costs incurred in clean up of a natural disaster.  For purposes 
 23.1   of this subdivision, "natural disaster" includes the occurrence 
 23.2   or threat of widespread or severe damage, injury, or loss of 
 23.3   life or property resulting from causes such as earthquake, fire, 
 23.4   flood, windstorm, wave action, oil spill, water contamination, 
 23.5   air contamination, or drought. 
 23.6      Subd. 6b.  [JOINT PUBLIC HEARINGS.] Notwithstanding any 
 23.7   other provision of law, any city with a population of 10,000 and 
 23.8   over, may conduct a more comprehensive public hearing than is 
 23.9   contained in subdivision 6 by including a board member from the 
 23.10  county, a board member from the school district located within 
 23.11  the city's boundary, and a representative of the metropolitan 
 23.12  council, if the city is in the metropolitan area, as defined in 
 23.13  section 473.121, subdivision 2, at the city's public hearing.  
 23.14  All provisions regarding the public hearings under subdivision 6 
 23.15  are applicable to the joint public hearings under this 
 23.16  subdivision. 
 23.17     Upon the adoption of a resolution by the governing body of 
 23.18  the city to hold a joint hearing, the city shall notify the 
 23.19  county, the school district, and the metropolitan council if the 
 23.20  city is in the metropolitan area, of the decision to hold a 
 23.21  joint public hearing and request a board member from each of 
 23.22  those taxing authorities, and the member or the designee of the 
 23.23  metropolitan council if applicable, to be at the joint hearing.  
 23.24  If the city is located in more than one county, the city may 
 23.25  choose to request a county board member from each county or only 
 23.26  from the county containing the majority of the city's market 
 23.27  value.  If more than one school district is partially or totally 
 23.28  located within the city, the city may choose to request a school 
 23.29  district board member from each school district, or a board 
 23.30  member only from the school district containing the majority of 
 23.31  the city's market value.  If, as a result of requests under this 
 23.32  subdivision, there are not sufficient board members in the 
 23.33  county or the school district to attend the joint hearing, the 
 23.34  county or school district may send a nonelected person working 
 23.35  for its taxing authority to speak on the authority's behalf.  
 23.36  The city may also invite each state senator and representative 
 24.1   who represents the city, or a portion of the city, to come to 
 24.2   the joint hearing. 
 24.3      The primary purpose of the joint hearing is to discuss the 
 24.4   city's budget and property tax levy.  The county and school 
 24.5   district officials, and metropolitan council representative, if 
 24.6   the city is in the metropolitan area, should be prepared to 
 24.7   answer questions relevant to its budget and levy and the effect 
 24.8   that its levy has on the property owners in the city. 
 24.9      If a city conducts a hearing under this subdivision, this 
 24.10  hearing is in lieu of the initial hearing required under 
 24.11  subdivision 6.  However, the city is still required to adopt its 
 24.12  proposed property tax levy at a subsequent hearing as provided 
 24.13  under subdivision 6.  The hearings under this subdivision do not 
 24.14  relieve a county, school district, or the metropolitan council 
 24.15  of the requirement to hold its individual hearing under 
 24.16  subdivision 6. 
 24.17     Subd. 7.  [CERTIFICATION OF COMPLIANCE.] At the time the 
 24.18  taxing authority certifies its tax levy under section 275.07, it 
 24.19  shall certify to the commissioner of revenue its compliance with 
 24.20  this section.  The certification must contain the information 
 24.21  required by the commissioner of revenue to determine compliance 
 24.22  with this section.  If the commissioner determines that the 
 24.23  taxing authority has failed to substantially comply with the 
 24.24  requirements of this section, the commissioner of revenue shall 
 24.25  notify the county auditor.  The decision of the commissioner is 
 24.26  final.  When fixing rates under section 275.08 for a taxing 
 24.27  authority that has not complied with this section, the county 
 24.28  auditor must use the taxing authority's previous year's levy, 
 24.29  plus any additional amounts necessary to pay principal and 
 24.30  interest on general obligation bonds of the taxing authority for 
 24.31  which its taxing powers have been pledged if the bonds were 
 24.32  issued before 1989.  
 24.33     Subd. 8.  [HEARING.] Notwithstanding any other provision of 
 24.34  law, Ramsey county, the city of St. Paul, and independent school 
 24.35  district No. 625 are authorized to and shall hold their initial 
 24.36  public hearing jointly.  The hearing must be held on the second 
 25.1   Tuesday of December November each year.  The advertisement 
 25.2   required in subdivision 5a may be a joint advertisement.  The 
 25.3   hearing is otherwise subject to the requirements of this section.
 25.4      Ramsey county is authorized to hold an additional initial 
 25.5   hearing or hearings as provided under this section, provided 
 25.6   that any additional hearings must not conflict with the initial 
 25.7   or continuation hearing dates of the other taxing districts.  
 25.8   However, if Ramsey county elects not to hold such additional 
 25.9   initial hearing or hearings, the joint initial hearing required 
 25.10  by this subdivision must be held in a St. Paul location 
 25.11  convenient to residents of Ramsey county. 
 25.12     [EFFECTIVE DATE.] This section is effective for proposed 
 25.13  notices and hearings held in 2003 and thereafter, for property 
 25.14  taxes payable in 2004 and thereafter. 
 25.15     Sec. 3.  Minnesota Statutes 2002, section 477A.03, 
 25.16  subdivision 2, is amended to read: 
 25.17     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
 25.18  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 25.19  annually appropriated from the general fund to the commissioner 
 25.20  of revenue.  
 25.21     (b) Aid payments to counties under section 477A.0121 are 
 25.22  limited to $20,265,000 in 1996.  Aid payments to counties under 
 25.23  section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
 25.24  payable in 1998 and thereafter, the total aids paid under 
 25.25  section 477A.0121 are the amounts certified to be paid in the 
 25.26  previous year, adjusted for inflation as provided under 
 25.27  subdivision 3. 
 25.28     (c)(i) For aids payable in 1998 and thereafter, the total 
 25.29  aids paid to counties under section 477A.0122 are the amounts 
 25.30  certified to be paid in the previous year, adjusted for 
 25.31  inflation as provided under subdivision 3. 
 25.32     (ii) Aid payments to counties under section 477A.0122 in 
 25.33  2000 are further increased by an additional $20,000,000 in 2000. 
 25.34     (d) Aid payments to cities in 2002 under section 477A.013, 
 25.35  subdivision 9, are limited to the amounts certified to be paid 
 25.36  in the previous year, adjusted for inflation as provided in 
 26.1   subdivision 3, and increased by $140,000,000.  For aids payable 
 26.2   in 2003, the total aids paid under section 477A.013, subdivision 
 26.3   9, are the amounts certified to be paid in the previous year, 
 26.4   adjusted for inflation as provided under subdivision 3.  For 
 26.5   aids payable in 2004, the total aids paid under section 
 26.6   477A.013, subdivision 9, are the amounts certified to be paid in 
 26.7   the previous year, adjusted for inflation as provided under 
 26.8   subdivision 3, and increased by the amount certified to be paid 
 26.9   in 2003 under section 477A.06.  For aids payable in 2005 and 
 26.10  thereafter, the total aids paid under section 477A.013, 
 26.11  subdivision 9, are the amounts certified to be paid in the 
 26.12  previous year prior to the adjustments under paragraph (f), 
 26.13  adjusted for inflation as provided under subdivision 3, and 
 26.14  adjusted as required under paragraph (f).  The additional amount 
 26.15  authorized under subdivision 4 is not included when calculating 
 26.16  the appropriation limits under this paragraph. 
 26.17     (e) Reimbursements made to counties under section 477A.0123 
 26.18  in calendar year 2005 and thereafter are limited to an amount 
 26.19  equal to the maximum allowed appropriation under this section in 
 26.20  the previous year, multiplied by a percent to be established by 
 26.21  law.  If no percent is established by law, the appropriation is 
 26.22  limited to the total amount appropriated for this purpose in the 
 26.23  previous year. 
 26.24     (f) Beginning with aids payable in 2005, a portion of the 
 26.25  limit on aid payments to cities and counties under section 
 26.26  477A.013, subdivision 9, is retained for paying aid to cities 
 26.27  and counties under section 275.063, subdivision 5.  The retained 
 26.28  portion shall be an amount equal to the sum of total state 
 26.29  population plus the total population in all cities, multiplied 
 26.30  by $1.05.  Any portion of the retained amount that is not 
 26.31  distributed under section 275.063, subdivision 5, in the same 
 26.32  calendar year shall be included in calculating the total aid 
 26.33  payments under section 477A.013, subdivision 9, in the next 
 26.34  calendar year. 
 26.35     [EFFECTIVE DATE.] This section is effective beginning with 
 26.36  aids payable in 2005 and thereafter.