HF 1103

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; changing 
  1.3             classification rates; providing an education homestead 
  1.4             credit; requiring certain information on property tax 
  1.5             statement; providing a property tax refund for persons 
  1.6             over 65; requiring referenda to increase levies in 
  1.7             certain instances; providing for a state tax refund in 
  1.8             certain instances; limiting the general education levy 
  1.9             growth rate; appropriating money; amending Minnesota 
  1.10            Statutes 1996, sections 16A.102, by adding a 
  1.11            subdivision; 124A.23, subdivision 1; 273.13, 
  1.12            subdivisions 22, 23, 24, 25, and 31; 275.065, 
  1.13            subdivisions 1, 3, 5a, and 6; 275.07, by adding 
  1.14            subdivisions; 276.04, subdivision 2; and 290A.04, by 
  1.15            adding a subdivision; proposing coding for new law in 
  1.16            Minnesota Statutes, chapters 273; and 275; repealing 
  1.17            Minnesota Statutes 1996, sections 273.13, subdivision 
  1.18            32. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1 
  1.21                    PROPERTY TAX CLASSIFICATION 
  1.22     Section 1.  Minnesota Statutes 1996, section 273.13, 
  1.23  subdivision 22, is amended to read: 
  1.24     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  1.25  23, real estate which is residential and used for homestead 
  1.26  purposes is class 1.  The market value of class 1a property must 
  1.27  be determined based upon the value of the house, garage, and 
  1.28  land.  
  1.29     The first $72,000 of market value of class 1a property has 
  1.30  a net class rate of one percent of its market value and a gross 
  1.31  class rate of 2.17 percent of its market value.  For taxes 
  1.32  payable in 1992, the market value of class 1a property that 
  2.1   exceeds $72,000 but does not exceed $115,000 has a class rate of 
  2.2   two percent of its market value; and the market value of class 
  2.3   1a property that exceeds $115,000 has a class rate of 2.5 
  2.4   percent of its market value.  For taxes payable in 1993 and 
  2.5   thereafter, The market value of class 1a property that exceeds 
  2.6   $72,000 has a class rate of two one percent. 
  2.7      (b) Class 1b property includes homestead real estate or 
  2.8   homestead manufactured homes used for the purposes of a 
  2.9   homestead by 
  2.10     (1) any blind person, or the blind person and the blind 
  2.11  person's spouse; or 
  2.12     (2) any person, hereinafter referred to as "veteran," who: 
  2.13     (i) served in the active military or naval service of the 
  2.14  United States; and 
  2.15     (ii) is entitled to compensation under the laws and 
  2.16  regulations of the United States for permanent and total 
  2.17  service-connected disability due to the loss, or loss of use, by 
  2.18  reason of amputation, ankylosis, progressive muscular 
  2.19  dystrophies, or paralysis, of both lower extremities, such as to 
  2.20  preclude motion without the aid of braces, crutches, canes, or a 
  2.21  wheelchair; and 
  2.22     (iii) has acquired a special housing unit with special 
  2.23  fixtures or movable facilities made necessary by the nature of 
  2.24  the veteran's disability, or the surviving spouse of the 
  2.25  deceased veteran for as long as the surviving spouse retains the 
  2.26  special housing unit as a homestead; or 
  2.27     (3) any person who: 
  2.28     (i) is permanently and totally disabled and 
  2.29     (ii) receives 90 percent or more of total income from 
  2.30     (A) aid from any state as a result of that disability; or 
  2.31     (B) supplemental security income for the disabled; or 
  2.32     (C) workers' compensation based on a finding of total and 
  2.33  permanent disability; or 
  2.34     (D) social security disability, including the amount of a 
  2.35  disability insurance benefit which is converted to an old age 
  2.36  insurance benefit and any subsequent cost of living increases; 
  3.1   or 
  3.2      (E) aid under the federal Railroad Retirement Act of 1937, 
  3.3   United States Code Annotated, title 45, section 228b(a)5; or 
  3.4      (F) a pension from any local government retirement fund 
  3.5   located in the state of Minnesota as a result of that 
  3.6   disability; or 
  3.7      (G) pension, annuity, or other income paid as a result of 
  3.8   that disability from a private pension or disability plan, 
  3.9   including employer, employee, union, and insurance plans and 
  3.10     (iii) has household income as defined in section 290A.03, 
  3.11  subdivision 5, of $50,000 or less; or 
  3.12     (4) any person who is permanently and totally disabled and 
  3.13  whose household income as defined in section 290A.03, 
  3.14  subdivision 5, is 150 percent or less of the federal poverty 
  3.15  level. 
  3.16     Property is classified and assessed under clause (4) only 
  3.17  if the government agency or income-providing source certifies, 
  3.18  upon the request of the homestead occupant, that the homestead 
  3.19  occupant satisfies the disability requirements of this paragraph.
  3.20     Property is classified and assessed pursuant to clause (1) 
  3.21  only if the commissioner of economic security certifies to the 
  3.22  assessor that the homestead occupant satisfies the requirements 
  3.23  of this paragraph.  
  3.24     Permanently and totally disabled for the purpose of this 
  3.25  subdivision means a condition which is permanent in nature and 
  3.26  totally incapacitates the person from working at an occupation 
  3.27  which brings the person an income.  The first $32,000 market 
  3.28  value of class 1b property has a net class rate of .45 .30 
  3.29  percent of its market value and a gross class rate of .87 
  3.30  percent of its market value.  The remaining market value of 
  3.31  class 1b property has a gross or net class rate using the rates 
  3.32  for class 1 or class 2a property, whichever is appropriate, of 
  3.33  similar market value.  
  3.34     (c) Class 1c property is commercial use real property that 
  3.35  abuts a lakeshore line and is devoted to temporary and seasonal 
  3.36  residential occupancy for recreational purposes but not devoted 
  4.1   to commercial purposes for more than 250 days in the year 
  4.2   preceding the year of assessment, and that includes a portion 
  4.3   used as a homestead by the owner, which includes a dwelling 
  4.4   occupied as a homestead by a shareholder of a corporation that 
  4.5   owns the resort or a partner in a partnership that owns the 
  4.6   resort, even if the title to the homestead is held by the 
  4.7   corporation or partnership.  For purposes of this clause, 
  4.8   property is devoted to a commercial purpose on a specific day if 
  4.9   any portion of the property, excluding the portion used 
  4.10  exclusively as a homestead, is used for residential occupancy 
  4.11  and a fee is charged for residential occupancy.  Class 1c 
  4.12  property has a class rate of one .66 percent of total market 
  4.13  value for taxes payable in 1993 and thereafter with the 
  4.14  following limitation:  the area of the property must not exceed 
  4.15  100 feet of lakeshore footage for each cabin or campsite located 
  4.16  on the property up to a total of 800 feet and 500 feet in depth, 
  4.17  measured away from the lakeshore.  
  4.18     Sec. 2.  Minnesota Statutes 1996, section 273.13, 
  4.19  subdivision 23, is amended to read: 
  4.20     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  4.21  land including any improvements that is homesteaded.  The market 
  4.22  value of the house and garage and immediately surrounding one 
  4.23  acre of land has the same class rates as class 1a property under 
  4.24  subdivision 22.  The value of the remaining land including 
  4.25  improvements up to $115,000 has a net class rate of .45 .30 
  4.26  percent of market value and a gross class rate of 1.75 percent 
  4.27  of market value.  The remaining value of class 2a property over 
  4.28  $115,000 of market value that does not exceed 320 acres has a 
  4.29  net class rate of one .67 percent of market value, and a gross 
  4.30  class rate of 2.25 percent of market value.  The remaining 
  4.31  property over the $115,000 market value in excess of 320 acres 
  4.32  has a class rate of 1.5 one percent of market value, and a gross 
  4.33  class rate of 2.25 percent of market value.  
  4.34     (b) Class 2b property is (1) real estate, rural in 
  4.35  character and used exclusively for growing trees for timber, 
  4.36  lumber, and wood and wood products; (2) real estate that is not 
  5.1   improved with a structure and is used exclusively for growing 
  5.2   trees for timber, lumber, and wood and wood products, if the 
  5.3   owner has participated or is participating in a cost-sharing 
  5.4   program for afforestation, reforestation, or timber stand 
  5.5   improvement on that particular property, administered or 
  5.6   coordinated by the commissioner of natural resources; (3) real 
  5.7   estate that is nonhomestead agricultural land; or (4) a landing 
  5.8   area or public access area of a privately owned public use 
  5.9   airport.  Class 2b property has a net class rate of 1.5 one 
  5.10  percent of market value, and a gross class rate of 2.25 percent 
  5.11  of market value.  
  5.12     (c) Agricultural land as used in this section means 
  5.13  contiguous acreage of ten acres or more, primarily used during 
  5.14  the preceding year for agricultural purposes.  Agricultural use 
  5.15  may include pasture, timber, waste, unusable wild land, and land 
  5.16  included in state or federal farm or conservation programs.  
  5.17  "Agricultural purposes" as used in this section means the 
  5.18  raising or cultivation of agricultural products.  Land enrolled 
  5.19  in the Reinvest in Minnesota program under sections 103F.505 to 
  5.20  103F.531 or the federal Conservation Reserve Program as 
  5.21  contained in Public Law Number 99-198, and consisting of a 
  5.22  minimum of ten contiguous acres, shall be classified as 
  5.23  agricultural.  Agricultural classification for property shall be 
  5.24  determined with respect to the use of the whole parcel, and not 
  5.25  based upon the market value of any residential structures on the 
  5.26  parcel or contiguous parcels under the same ownership. 
  5.27     (d) Real estate of less than ten acres used principally for 
  5.28  raising or cultivating agricultural products, shall be 
  5.29  considered as agricultural land, if it is not used primarily for 
  5.30  residential purposes.  
  5.31     (e) The term "agricultural products" as used in this 
  5.32  subdivision includes:  
  5.33     (1) livestock, dairy animals, dairy products, poultry and 
  5.34  poultry products, fur-bearing animals, horticultural and nursery 
  5.35  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  5.36  vegetables, forage, grains, bees, and apiary products by the 
  6.1   owner; 
  6.2      (2) fish bred for sale and consumption if the fish breeding 
  6.3   occurs on land zoned for agricultural use; 
  6.4      (3) the commercial boarding of horses if the boarding is 
  6.5   done in conjunction with raising or cultivating agricultural 
  6.6   products as defined in clause (1); 
  6.7      (4) property which is owned and operated by nonprofit 
  6.8   organizations used for equestrian activities, excluding racing; 
  6.9   and 
  6.10     (5) game birds and waterfowl bred and raised for use on a 
  6.11  shooting preserve licensed under section 97A.115.  
  6.12     (f) If a parcel used for agricultural purposes is also used 
  6.13  for commercial or industrial purposes, including but not limited 
  6.14  to:  
  6.15     (1) wholesale and retail sales; 
  6.16     (2) processing of raw agricultural products or other goods; 
  6.17     (3) warehousing or storage of processed goods; and 
  6.18     (4) office facilities for the support of the activities 
  6.19  enumerated in clauses (1), (2), and (3), 
  6.20  the assessor shall classify the part of the parcel used for 
  6.21  agricultural purposes as class 1b, 2a, or 2b, whichever is 
  6.22  appropriate, and the remainder in the class appropriate to its 
  6.23  use.  The grading, sorting, and packaging of raw agricultural 
  6.24  products for first sale is considered an agricultural purpose.  
  6.25  A greenhouse or other building where horticultural or nursery 
  6.26  products are grown that is also used for the conduct of retail 
  6.27  sales must be classified as agricultural if it is primarily used 
  6.28  for the growing of horticultural or nursery products from seed, 
  6.29  cuttings, or roots and occasionally as a showroom for the retail 
  6.30  sale of those products.  Use of a greenhouse or building only 
  6.31  for the display of already grown horticultural or nursery 
  6.32  products does not qualify as an agricultural purpose.  
  6.33     The assessor shall determine and list separately on the 
  6.34  records the market value of the homestead dwelling and the one 
  6.35  acre of land on which that dwelling is located.  If any farm 
  6.36  buildings or structures are located on this homesteaded acre of 
  7.1   land, their market value shall not be included in this separate 
  7.2   determination.  
  7.3      (g) To qualify for classification under paragraph (b), 
  7.4   clause (4), a privately owned public use airport must be 
  7.5   licensed as a public airport under section 360.018.  For 
  7.6   purposes of paragraph (b), clause (4), "landing area" means that 
  7.7   part of a privately owned public use airport properly cleared, 
  7.8   regularly maintained, and made available to the public for use 
  7.9   by aircraft and includes runways, taxiways, aprons, and sites 
  7.10  upon which are situated landing or navigational aids.  A landing 
  7.11  area also includes land underlying both the primary surface and 
  7.12  the approach surfaces that comply with all of the following:  
  7.13     (i) the land is properly cleared and regularly maintained 
  7.14  for the primary purposes of the landing, taking off, and taxiing 
  7.15  of aircraft; but that portion of the land that contains 
  7.16  facilities for servicing, repair, or maintenance of aircraft is 
  7.17  not included as a landing area; 
  7.18     (ii) the land is part of the airport property; and 
  7.19     (iii) the land is not used for commercial or residential 
  7.20  purposes. 
  7.21  The land contained in a landing area under paragraph (b), clause 
  7.22  (4), must be described and certified by the commissioner of 
  7.23  transportation.  The certification is effective until it is 
  7.24  modified, or until the airport or landing area no longer meets 
  7.25  the requirements of paragraph (b), clause (4).  For purposes of 
  7.26  paragraph (b), clause (4), "public access area" means property 
  7.27  used as an aircraft parking ramp, apron, or storage hangar, or 
  7.28  an arrival and departure building in connection with the airport.
  7.29     Sec. 3.  Minnesota Statutes 1996, section 273.13, 
  7.30  subdivision 24, is amended to read: 
  7.31     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  7.32  property and utility real and personal property, except class 5 
  7.33  property as identified in subdivision 31, clause (1), is class 
  7.34  3a.  It has a class rate of three two percent of the first 
  7.35  $100,000 of market value for taxes payable in 1993 and 
  7.36  thereafter, and 5.06 2.85 percent of the market value over 
  8.1   $100,000.  In the case of state-assessed commercial, industrial, 
  8.2   and utility property owned by one person or entity, only one 
  8.3   parcel has a reduced class rate on the first $100,000 of market 
  8.4   value.  In the case of other commercial, industrial, and utility 
  8.5   property owned by one person or entity, only one parcel in each 
  8.6   county has a reduced class rate on the first $100,000 of market 
  8.7   value, except that: 
  8.8      (1) if the market value of the parcel is less than 
  8.9   $100,000, and additional parcels are owned by the same person or 
  8.10  entity in the same city or town within that county, the reduced 
  8.11  class rate shall be applied up to a combined total market value 
  8.12  of $100,000 for all parcels owned by the same person or entity 
  8.13  in the same city or town within the county; 
  8.14     (2) in the case of grain, fertilizer, and feed elevator 
  8.15  facilities, as defined in section 18C.305, subdivision 1, or 
  8.16  232.21, subdivision 8, the limitation to one parcel per owner 
  8.17  per county for the reduced class rate shall not apply, but there 
  8.18  shall be a limit of $100,000 of preferential value per site of 
  8.19  contiguous parcels owned by the same person or entity.  Only the 
  8.20  value of the elevator portion of each parcel shall qualify for 
  8.21  treatment under this clause.  For purposes of this subdivision, 
  8.22  contiguous parcels include parcels separated only by a railroad 
  8.23  or public road right-of-way; and 
  8.24     (3) in the case of property owned by a nonprofit charitable 
  8.25  organization that qualifies for tax exemption under section 
  8.26  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  8.27  through December 31, 1993, if the property is used as a business 
  8.28  incubator, the limitation to one parcel per owner per county for 
  8.29  the reduced class rate shall not apply, provided that the 
  8.30  reduced rate applies only to the first $100,000 of value per 
  8.31  parcel owned by the organization.  As used in this clause, a 
  8.32  "business incubator" is a facility used for the development of 
  8.33  nonretail businesses, offering access to equipment, space, 
  8.34  services, and advice to the tenant businesses, for the purpose 
  8.35  of encouraging economic development, diversification, and job 
  8.36  creation in the area served by the organization. 
  9.1      To receive the reduced class rate on additional parcels 
  9.2   under clause (1), (2), or (3), the taxpayer must notify the 
  9.3   county assessor that the taxpayer owns more than one parcel that 
  9.4   qualifies under clause (1), (2), or (3). 
  9.5      (b) Employment property defined in section 469.166, during 
  9.6   the period provided in section 469.170, shall constitute class 
  9.7   3b and has a class rate of 2.3 1.5 percent of the first $50,000 
  9.8   of market value and 3.6 2.4 percent of the remainder, except 
  9.9   that for employment property located in a border city enterprise 
  9.10  zone designated pursuant to section 469.168, subdivision 4, 
  9.11  paragraph (c), the class rate of the first $100,000 of market 
  9.12  value and the class rate of the remainder is determined under 
  9.13  paragraph (a), unless the governing body of the city designated 
  9.14  as an enterprise zone determines that a specific parcel shall be 
  9.15  assessed pursuant to the first clause of this sentence.  The 
  9.16  governing body may provide for assessment under the first clause 
  9.17  of the preceding sentence only for property which is located in 
  9.18  an area which has been designated by the governing body for the 
  9.19  receipt of tax reductions authorized by section 469.171, 
  9.20  subdivision 1. 
  9.21     (c) Structures which are (i) located on property classified 
  9.22  as class 3a, (ii) constructed under an initial building permit 
  9.23  issued after January 2, 1996, (iii) located in a transit zone as 
  9.24  defined under section 473.3915, subdivision 3, (iv) located 
  9.25  within the boundaries of a school district, and (v) not 
  9.26  primarily used for retail or transient lodging purposes, shall 
  9.27  have a class rate of four 2.5 percent on that portion of the 
  9.28  market value in excess of $100,000 and any market value under 
  9.29  $100,000 that does not qualify for the three two percent class 
  9.30  rate under paragraph (a).  As used in item (v), a structure is 
  9.31  primarily used for retail or transient lodging purposes if over 
  9.32  50 percent of its square footage is used for those purposes.  
  9.33  The four 2.5 percent rate shall also apply to improvements to 
  9.34  existing structures that meet the requirements of items (i) to 
  9.35  (v) if the improvements are constructed under an initial 
  9.36  building permit issued after January 2, 1996, even if the 
 10.1   remainder of the structure was constructed prior to January 2, 
 10.2   1996.  For the purposes of this paragraph, a structure shall be 
 10.3   considered to be located in a transit zone if any portion of the 
 10.4   structure lies within the zone.  If any property once eligible 
 10.5   for treatment under this paragraph ceases to remain eligible due 
 10.6   to revisions in transit zone boundaries, the property shall 
 10.7   continue to receive treatment under this paragraph for a period 
 10.8   of three years. 
 10.9      Sec. 4.  Minnesota Statutes 1996, section 273.13, 
 10.10  subdivision 25, is amended to read: 
 10.11     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 10.12  estate containing four or more units and used or held for use by 
 10.13  the owner or by the tenants or lessees of the owner as a 
 10.14  residence for rental periods of 30 days or more.  Class 4a also 
 10.15  includes hospitals licensed under sections 144.50 to 144.56, 
 10.16  other than hospitals exempt under section 272.02, and contiguous 
 10.17  property used for hospital purposes, without regard to whether 
 10.18  the property has been platted or subdivided.  Class 4a property 
 10.19  in a city with a population of 5,000 or less, that is (1) 
 10.20  located outside of the metropolitan area, as defined in section 
 10.21  473.121, subdivision 2, or outside any county contiguous to the 
 10.22  metropolitan area, and (2) whose city boundary is at least 15 
 10.23  miles from the boundary of any city with a population greater 
 10.24  than 5,000 has a class rate of 2.3 1.5 percent of market value 
 10.25  for taxes payable in 1996 and thereafter.  All other class 4a 
 10.26  property has a class rate of 3.4 two percent of market value for 
 10.27  taxes payable in 1996 and thereafter.  For purposes of this 
 10.28  paragraph, population has the same meaning given in section 
 10.29  477A.011, subdivision 3. 
 10.30     (b) Class 4b includes: 
 10.31     (1) residential real estate containing less than four 
 10.32  units, other than seasonal residential, and recreational; 
 10.33     (2) manufactured homes not classified under any other 
 10.34  provision; 
 10.35     (3) a dwelling, garage, and surrounding one acre of 
 10.36  property on a nonhomestead farm classified under subdivision 23, 
 11.1   paragraph (b).  
 11.2      Class 4b property has a class rate of 2.8 percent of market 
 11.3   value for taxes payable in 1992, 2.5 percent of market value for 
 11.4   taxes payable in 1993, and 2.3 1.5 percent of market value for 
 11.5   taxes payable in 1994 and thereafter. 
 11.6      (c) Class 4c property includes: 
 11.7      (1) a structure that is:  
 11.8      (i) situated on real property that is used for housing for 
 11.9   the elderly or for low- and moderate-income families as defined 
 11.10  in Title II, as amended through December 31, 1990, of the 
 11.11  National Housing Act or the Minnesota housing finance agency law 
 11.12  of 1971, as amended, or rules promulgated by the agency and 
 11.13  financed by a direct federal loan or federally insured loan made 
 11.14  pursuant to Title II of the Act; or 
 11.15     (ii) situated on real property that is used for housing the 
 11.16  elderly or for low- and moderate-income families as defined by 
 11.17  the Minnesota housing finance agency law of 1971, as amended, or 
 11.18  rules adopted by the agency pursuant thereto and financed by a 
 11.19  loan made by the Minnesota housing finance agency pursuant to 
 11.20  the provisions of the act.  
 11.21     This clause applies only to property of a nonprofit or 
 11.22  limited dividend entity.  Property is classified as class 4c 
 11.23  under this clause for 15 years from the date of the completion 
 11.24  of the original construction or substantial rehabilitation, or 
 11.25  for the original term of the loan.  
 11.26     (2) a structure that is: 
 11.27     (i) situated upon real property that is used for housing 
 11.28  lower income families or elderly or handicapped persons, as 
 11.29  defined in section 8 of the United States Housing Act of 1937, 
 11.30  as amended; and 
 11.31     (ii) owned by an entity which has entered into a housing 
 11.32  assistance payments contract under section 8 which provides 
 11.33  assistance for 100 percent of the dwelling units in the 
 11.34  structure, other than dwelling units intended for management or 
 11.35  maintenance personnel.  Property is classified as class 4c under 
 11.36  this clause for the term of the housing assistance payments 
 12.1   contract, including all renewals, or for the term of its 
 12.2   permanent financing, whichever is shorter; and 
 12.3      (3) a qualified low-income building as defined in section 
 12.4   42(c)(2) of the Internal Revenue Code of 1986, as amended 
 12.5   through December 31, 1990, that (i) receives a low-income 
 12.6   housing credit under section 42 of the Internal Revenue Code of 
 12.7   1986, as amended through December 31, 1990; or (ii) meets the 
 12.8   requirements of that section and receives public financing, 
 12.9   except financing provided under sections 469.174 to 469.179, 
 12.10  which contains terms restricting the rents; or (iii) meets the 
 12.11  requirements of section 273.1317.  Classification pursuant to 
 12.12  this clause is limited to a term of 15 years.  The public 
 12.13  financing received must be from at least one of the following 
 12.14  sources:  government issued bonds exempt from taxes under 
 12.15  section 103 of the Internal Revenue Code of 1986, as amended 
 12.16  through December 31, 1993, the proceeds of which are used for 
 12.17  the acquisition or rehabilitation of the building; programs 
 12.18  under section 221(d)(3), 202, or 236, of Title II of the 
 12.19  National Housing Act; rental housing program funds under Section 
 12.20  8 of the United States Housing Act of 1937 or the market rate 
 12.21  family graduated payment mortgage program funds administered by 
 12.22  the Minnesota housing finance agency that are used for the 
 12.23  acquisition or rehabilitation of the building; public financing 
 12.24  provided by a local government used for the acquisition or 
 12.25  rehabilitation of the building, including grants or loans from 
 12.26  federal community development block grants, HOME block grants, 
 12.27  or residential rental bonds issued under chapter 474A; or other 
 12.28  rental housing program funds provided by the Minnesota housing 
 12.29  finance agency for the acquisition or rehabilitation of the 
 12.30  building. 
 12.31     For all properties described in clauses (1), (2), and (3) 
 12.32  and in paragraph (d), the market value determined by the 
 12.33  assessor must be based on the normal approach to value using 
 12.34  normal unrestricted rents unless the owner of the property 
 12.35  elects to have the property assessed under Laws 1991, chapter 
 12.36  291, article 1, section 55.  If the owner of the property elects 
 13.1   to have the market value determined on the basis of the actual 
 13.2   restricted rents, as provided in Laws 1991, chapter 291, article 
 13.3   1, section 55, the property will be assessed at the rate 
 13.4   provided for class 4a or class 4b property, as appropriate.  
 13.5   Properties described in clauses (1)(ii), (3), and (4) may apply 
 13.6   to the assessor for valuation under Laws 1991, chapter 291, 
 13.7   article 1, section 55.  The land on which these structures are 
 13.8   situated has the class rate given in paragraph (b) if the 
 13.9   structure contains fewer than four units, and the class rate 
 13.10  given in paragraph (a) if the structure contains four or more 
 13.11  units.  This clause applies only to the property of a nonprofit 
 13.12  or limited dividend entity.  
 13.13     (4) a parcel of land, not to exceed one acre, and its 
 13.14  improvements or a parcel of unimproved land, not to exceed one 
 13.15  acre, if it is owned by a neighborhood real estate trust and at 
 13.16  least 60 percent of the dwelling units, if any, on all land 
 13.17  owned by the trust are leased to or occupied by lower income 
 13.18  families or individuals.  This clause does not apply to any 
 13.19  portion of the land or improvements used for nonresidential 
 13.20  purposes.  For purposes of this clause, a lower income family is 
 13.21  a family with an income that does not exceed 65 percent of the 
 13.22  median family income for the area, and a lower income individual 
 13.23  is an individual whose income does not exceed 65 percent of the 
 13.24  median individual income for the area, as determined by the 
 13.25  United States Secretary of Housing and Urban Development.  For 
 13.26  purposes of this clause, "neighborhood real estate trust" means 
 13.27  an entity which is certified by the governing body of the 
 13.28  municipality in which it is located to have the following 
 13.29  characteristics: 
 13.30     (a) it is a nonprofit corporation organized under chapter 
 13.31  317A; 
 13.32     (b) it has as its principal purpose providing housing for 
 13.33  lower income families in a specific geographic community 
 13.34  designated in its articles or bylaws; 
 13.35     (c) it limits membership with voting rights to residents of 
 13.36  the designated community; and 
 14.1      (d) it has a board of directors consisting of at least 
 14.2   seven directors, 60 percent of whom are members with voting 
 14.3   rights and, to the extent feasible, 25 percent of whom are 
 14.4   elected by resident members of buildings owned by the trust; and 
 14.5      (5) except as provided in subdivision 22, paragraph (c), 
 14.6   real property devoted to temporary and seasonal residential 
 14.7   occupancy for recreation purposes, including real property 
 14.8   devoted to temporary and seasonal residential occupancy for 
 14.9   recreation purposes and not devoted to commercial purposes for 
 14.10  more than 250 days in the year preceding the year of 
 14.11  assessment.  For purposes of this clause, property is devoted to 
 14.12  a commercial purpose on a specific day if any portion of the 
 14.13  property is used for residential occupancy, and a fee is charged 
 14.14  for residential occupancy.  Class 4c also includes commercial 
 14.15  use real property used exclusively for recreational purposes in 
 14.16  conjunction with class 4c property devoted to temporary and 
 14.17  seasonal residential occupancy for recreational purposes, up to 
 14.18  a total of two acres, provided the property is not devoted to 
 14.19  commercial recreational use for more than 250 days in the year 
 14.20  preceding the year of assessment and is located within two miles 
 14.21  of the class 4c property with which it is used.  Class 4c 
 14.22  property classified in this clause also includes the remainder 
 14.23  of class 1c resorts.  Owners of real property devoted to 
 14.24  temporary and seasonal residential occupancy for recreation 
 14.25  purposes and all or a portion of which was devoted to commercial 
 14.26  purposes for not more than 250 days in the year preceding the 
 14.27  year of assessment desiring classification as class 1c or 4c, 
 14.28  must submit a declaration to the assessor designating the cabins 
 14.29  or units occupied for 250 days or less in the year preceding the 
 14.30  year of assessment by January 15 of the assessment year.  Those 
 14.31  cabins or units and a proportionate share of the land on which 
 14.32  they are located will be designated class 1c or 4c as otherwise 
 14.33  provided.  The remainder of the cabins or units and a 
 14.34  proportionate share of the land on which they are located will 
 14.35  be designated as class 3a.  The first $100,000 of the market 
 14.36  value of the remainder of the cabins or units and a 
 15.1   proportionate share of the land on which they are located shall 
 15.2   have a class rate of three two percent.  The owner of property 
 15.3   desiring designation as class 1c or 4c property must provide 
 15.4   guest registers or other records demonstrating that the units 
 15.5   for which class 1c or 4c designation is sought were not occupied 
 15.6   for more than 250 days in the year preceding the assessment if 
 15.7   so requested.  The portion of a property operated as a (1) 
 15.8   restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 15.9   facility operated on a commercial basis not directly related to 
 15.10  temporary and seasonal residential occupancy for recreation 
 15.11  purposes shall not qualify for class 1c or 4c; 
 15.12     (6) real property up to a maximum of one acre of land owned 
 15.13  by a nonprofit community service oriented organization; provided 
 15.14  that the property is not used for a revenue-producing activity 
 15.15  for more than six days in the calendar year preceding the year 
 15.16  of assessment and the property is not used for residential 
 15.17  purposes on either a temporary or permanent basis.  For purposes 
 15.18  of this clause, a "nonprofit community service oriented 
 15.19  organization" means any corporation, society, association, 
 15.20  foundation, or institution organized and operated exclusively 
 15.21  for charitable, religious, fraternal, civic, or educational 
 15.22  purposes, and which is exempt from federal income taxation 
 15.23  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 15.24  Revenue Code of 1986, as amended through December 31, 1990.  For 
 15.25  purposes of this clause, "revenue-producing activities" shall 
 15.26  include but not be limited to property or that portion of the 
 15.27  property that is used as an on-sale intoxicating liquor or 3.2 
 15.28  percent malt liquor establishment licensed under chapter 340A, a 
 15.29  restaurant open to the public, bowling alley, a retail store, 
 15.30  gambling conducted by organizations licensed under chapter 349, 
 15.31  an insurance business, or office or other space leased or rented 
 15.32  to a lessee who conducts a for-profit enterprise on the 
 15.33  premises.  Any portion of the property which is used for 
 15.34  revenue-producing activities for more than six days in the 
 15.35  calendar year preceding the year of assessment shall be assessed 
 15.36  as class 3a.  The use of the property for social events open 
 16.1   exclusively to members and their guests for periods of less than 
 16.2   24 hours, when an admission is not charged nor any revenues are 
 16.3   received by the organization shall not be considered a 
 16.4   revenue-producing activity; 
 16.5      (7) post-secondary student housing of not more than one 
 16.6   acre of land that is owned by a nonprofit corporation organized 
 16.7   under chapter 317A and is used exclusively by a student 
 16.8   cooperative, sorority, or fraternity for on-campus housing or 
 16.9   housing located within two miles of the border of a college 
 16.10  campus; and 
 16.11     (8) manufactured home parks as defined in section 327.14, 
 16.12  subdivision 3. 
 16.13     Class 4c property has a class rate of 2.3 1.35 percent of 
 16.14  market value, except that (i) for each parcel of seasonal 
 16.15  residential recreational property not used for commercial 
 16.16  purposes under clause (5) the first $72,000 of market value on 
 16.17  each parcel has a class rate of 1.75 percent for taxes payable 
 16.18  in 1997 and 1.5 percent for taxes payable in 1998 and 
 16.19  thereafter, and the market value of each parcel that exceeds 
 16.20  $72,000 has a class rate of 2.5 percent, and (ii) manufactured 
 16.21  home parks assessed under clause (8) have a class rate of two 
 16.22  1.5 percent for taxes payable in 1996, and thereafter.  
 16.23     (d) Class 4d property includes: 
 16.24     (1) a structure that is: 
 16.25     (i) situated on real property that is used for housing for 
 16.26  the elderly or for low and moderate income families as defined 
 16.27  by the Farmers Home Administration; 
 16.28     (ii) located in a municipality of less than 10,000 
 16.29  population; and 
 16.30     (iii) financed by a direct loan or insured loan from the 
 16.31  Farmers Home Administration.  Property is classified under this 
 16.32  clause for 15 years from the date of the completion of the 
 16.33  original construction or for the original term of the loan.  
 16.34     The class rates in paragraph (c), clauses (1), (2), and (3) 
 16.35  and this clause apply to the properties described in them, only 
 16.36  in proportion to occupancy of the structure by elderly or 
 17.1   handicapped persons or low and moderate income families as 
 17.2   defined in the applicable laws unless construction of the 
 17.3   structure had been commenced prior to January 1, 1984; or the 
 17.4   project had been approved by the governing body of the 
 17.5   municipality in which it is located prior to June 30, 1983; or 
 17.6   financing of the project had been approved by a federal or state 
 17.7   agency prior to June 30, 1983.  For those properties, 4c or 4d 
 17.8   classification is available only for those units meeting the 
 17.9   requirements of section 273.1318. 
 17.10     Classification under this clause is only available to 
 17.11  property of a nonprofit or limited dividend entity. 
 17.12     In the case of a structure financed or refinanced under any 
 17.13  federal or state mortgage insurance or direct loan program 
 17.14  exclusively for housing for the elderly or for housing for the 
 17.15  handicapped, a unit shall be considered occupied so long as it 
 17.16  is actually occupied by an elderly or handicapped person or, if 
 17.17  vacant, is held for rental to an elderly or handicapped person. 
 17.18     (2) For taxes payable in 1992, 1993, and 1994, only, 
 17.19  buildings and appurtenances, together with the land upon which 
 17.20  they are located, leased by the occupant under the community 
 17.21  lending model lease-purchase mortgage loan program administered 
 17.22  by the Federal National Mortgage Association, provided the 
 17.23  occupant's income is no greater than 60 percent of the county or 
 17.24  area median income, adjusted for family size and the building 
 17.25  consists of existing single family or duplex housing.  The lease 
 17.26  agreement must provide for a portion of the lease payment to be 
 17.27  escrowed as a nonrefundable down payment on the housing.  To 
 17.28  qualify under this clause, the taxpayer must apply to the county 
 17.29  assessor by May 30 of each year.  The application must be 
 17.30  accompanied by an affidavit or other proof required by the 
 17.31  assessor to determine qualification under this clause. 
 17.32     (3) Qualifying buildings and appurtenances, together with 
 17.33  the land upon which they are located, leased for a period of up 
 17.34  to five years by the occupant under a lease-purchase program 
 17.35  administered by the Minnesota housing finance agency or a 
 17.36  housing and redevelopment authority authorized under sections 
 18.1   469.001 to 469.047, provided the occupant's income is no greater 
 18.2   than 80 percent of the county or area median income, adjusted 
 18.3   for family size, and the building consists of two or less 
 18.4   dwelling units.  The lease agreement must provide for a portion 
 18.5   of the lease payment to be escrowed as a nonrefundable down 
 18.6   payment on the housing.  The administering agency shall verify 
 18.7   the occupants income eligibility and certify to the county 
 18.8   assessor that the occupant meets the income criteria under this 
 18.9   paragraph.  To qualify under this clause, the taxpayer must 
 18.10  apply to the county assessor by May 30 of each year.  For 
 18.11  purposes of this section, "qualifying buildings and 
 18.12  appurtenances" shall be defined as one or two unit residential 
 18.13  buildings which are unoccupied and have been abandoned and 
 18.14  boarded for at least six months. 
 18.15     Class 4d property has a class rate of two 1.5 percent of 
 18.16  market value except that property classified under clause (3), 
 18.17  shall have the same class rate as class 1a property. 
 18.18     (e) Residential rental property that would otherwise be 
 18.19  assessed as class 4 property under paragraph (a); paragraph (b), 
 18.20  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 18.21  (4), is assessed at the class rate applicable to it under 
 18.22  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 18.23  substandard building under section 273.1316.  Residential rental 
 18.24  property that would otherwise be assessed as class 4 property 
 18.25  under paragraph (d) is assessed at 2.3 percent of market value 
 18.26  if it is found to be a substandard building under section 
 18.27  273.1316. 
 18.28     (f) Class 4e property consists of the residential portion 
 18.29  of any structure located within a city that was converted from 
 18.30  nonresidential use to residential use, provided that: 
 18.31     (1) the structure had formerly been used as a warehouse; 
 18.32     (2) the structure was originally constructed prior to 1940; 
 18.33     (3) the conversion was done after December 31, 1995, but 
 18.34  before January 1, 2003; and 
 18.35     (4) the conversion involved an investment of at least 
 18.36  $25,000 per residential unit. 
 19.1      Class 4e property has a class rate of 2.3 1.5 percent, 
 19.2   provided that a structure is eligible for class 4e 
 19.3   classification only in the 12 assessment years immediately 
 19.4   following the conversion. 
 19.5      Sec. 5.  Minnesota Statutes 1996, section 273.13, 
 19.6   subdivision 31, is amended to read: 
 19.7      Subd. 31.  [CLASS 5.] Class 5 property includes:  
 19.8      (1) tools, implements, and machinery of an electric 
 19.9   generating, transmission, or distribution system or a pipeline 
 19.10  system transporting or distributing water, gas, crude oil, or 
 19.11  petroleum products or mains and pipes used in the distribution 
 19.12  of steam or hot or chilled water for heating or cooling 
 19.13  buildings, which are fixtures; 
 19.14     (2) unmined iron ore and low-grade iron-bearing formations 
 19.15  as defined in section 273.14; and 
 19.16     (3) all other property not otherwise classified. 
 19.17     Class 5 property has a class rate of 5.06 three percent of 
 19.18  market value. 
 19.19     Sec. 6.  [REPEALER.] 
 19.20     Minnesota Statutes 1996, section 273.13, subdivision 32, is 
 19.21  repealed.  
 19.22     Sec. 7.  [EFFECTIVE DATE.] 
 19.23     Sections 1 to 6 are effective for taxes payable in 1997 and 
 19.24  thereafter. 
 19.25                             ARTICLE 2 
 19.26                     EDUCATION HOMESTEAD CREDIT 
 19.27     Section 1.  [273.1382] [EDUCATION HOMESTEAD CREDIT.] 
 19.28     Subdivision 1.  [EDUCATION HOMESTEAD CREDIT.] Each year, 
 19.29  beginning with property taxes payable in 1998, the respective 
 19.30  county auditors shall determine the local tax rate for each 
 19.31  school district for the general education levy certified under 
 19.32  section 124A.23, subdivision 2 or 3.  That rate shall be the 
 19.33  general education homestead credit local tax rate for the 
 19.34  district.  The auditor shall then determine a general education 
 19.35  homestead credit for each homestead within the county by 
 19.36  multiplying the general education homestead credit local tax 
 20.1   rate times the net tax capacity of the homestead for the taxes 
 20.2   payable year.  The amount of general education homestead credit 
 20.3   for a homestead is limited to the maximum credit amounts 
 20.4   specified in subdivision 2.  
 20.5      Subd. 2.  [CREDIT MAXIMUMS.] The maximum general education 
 20.6   homestead credit for a homestead is limited to the following 
 20.7   amounts, based on the assessor's estimated market value of the 
 20.8   homestead for the taxes payable year, as that amount is 
 20.9   otherwise limited by law. 
 20.10            Estimated Market Value          Maximum Credit Amount
 20.11            $0 to $85,000                   $435
 20.12            $85,001 to $90,000              $415
 20.13            $90,001 to $95,000              $400
 20.14            $95,001 to $100,000             $370
 20.15            $100,001 to $105,000            $330
 20.16            $105,001 to $110,000            $290
 20.17            $110,001 to $115,000            $250
 20.18            $115,001 to $120,000            $200
 20.19            $120,001 to $125,000            $175
 20.20            $125,001 to $130,000            $150
 20.21            $130,001 to $140,000            $100
 20.22            $140,001 to $150,000            $50
 20.23     Homesteads with a limited assessor's estimated market value 
 20.24  in excess of $150,000 are not eligible for the general education 
 20.25  homestead credit provided in this section.  
 20.26     Subd. 3.  [PROPERTY TAX STATEMENTS.] The credit amount 
 20.27  under this section for each homestead shall reduce the amount of 
 20.28  property taxes otherwise payable to the county treasurer in that 
 20.29  payable year, and must be separately stated on the property tax 
 20.30  statement as a reduction, which reduction shall be identified as 
 20.31  "general education homestead credit."  The tax statement must 
 20.32  indicate that the credit amount under this section reduces the 
 20.33  "state-determined school district levy" on the property.  
 20.34     Subd. 4.  [CREDIT REIMBURSEMENTS.] (a) The commissioner of 
 20.35  revenue shall determine the tax reductions allowed under this 
 20.36  section for each taxes payable year, and for each school 
 21.1   district based upon a review of the abstracts of tax lists 
 21.2   submitted by the county auditors under section 275.29, and from 
 21.3   any other information which the commissioner deems relevant.  
 21.4   The commissioner of revenue shall generally compute the tax 
 21.5   reductions at the unique taxing jurisdiction level, however the 
 21.6   commissioner may compute the tax reductions at a higher 
 21.7   geographic level if that would have a negligible impact, or if 
 21.8   changes in the composition of unique taxing jurisdictions do not 
 21.9   permit computation at the unique taxing jurisdiction level.  The 
 21.10  commissioner's determinations under this paragraph are not rules.
 21.11     (b) The commissioner of revenue shall certify the total of 
 21.12  the tax reductions granted under this section for each taxes 
 21.13  payable year within each school district to the commissioner of 
 21.14  children, families, and learning on or before August 1 of the 
 21.15  taxes payable year.  The commissioner of children, families, and 
 21.16  learning shall reimburse each affected school district for the 
 21.17  amount of the property tax reductions allowed under this section 
 21.18  as provided in section 273.1392.  The commissioner of children, 
 21.19  families, and learning shall make the reimbursement payments 
 21.20  within the same state fiscal year as certified, including with 
 21.21  each district's initial payment all amounts that would have been 
 21.22  paid up to that date, computed as if the annual reimbursement 
 21.23  amount for the district had been paid as otherwise provided by 
 21.24  law over the full fiscal year.  
 21.25     Subd. 5.  [APPROPRIATION.] An amount sufficient to make the 
 21.26  payments required by this section is annually appropriated from 
 21.27  the general fund to the commissioner of children, families, and 
 21.28  learning.  
 21.29     Sec. 2.  [EFFECTIVE DATE.] 
 21.30     Section 1 is effective for taxes payable, and for credit 
 21.31  reimbursement payments to school districts, in 1998 and 
 21.32  thereafter. 
 21.33                             ARTICLE 3 
 21.34                 SENIOR CITIZEN PROPERTY TAX REFUND 
 21.35     Section 1.  Minnesota Statutes 1996, section 290A.04, is 
 21.36  amended by adding a subdivision to read: 
 22.1      Subd. 2j.  Effective beginning for taxes payable in 1998, a 
 22.2   claimant who is a homeowner is allowed a credit equal to the 
 22.3   excess of the claimant's net property taxes over six percent of 
 22.4   the claimant's household income.  In order to qualify for a 
 22.5   credit under this subdivision, the claimant or the spouse of the 
 22.6   claimant must be at least 65 years of age on December 31 of the 
 22.7   year prior to the year in which the taxes are payable and must 
 22.8   have resided in the homestead for at least ten consecutive years 
 22.9   ending on December 31 of the year prior to the year in which the 
 22.10  taxes are payable.  No payment is allowed if the claimant's 
 22.11  household income exceeds the maximum income for which a claimant 
 22.12  may receive a refund under subdivision 2.  The commissioner of 
 22.13  revenue may require claimants to certify eligibility for the 
 22.14  credit in a form the commissioner prescribes.  For purposes of 
 22.15  this subdivision, "net property taxes" means property taxes 
 22.16  payable after reduction for all state paid aids or credits and 
 22.17  after deduction of the refund for which the claimant qualifies 
 22.18  under subdivisions 2 and 2h. 
 22.19                             ARTICLE 4 
 22.20                          LEVY CONSTRAINTS 
 22.21     Section 1.  Minnesota Statutes 1996, section 124A.23, 
 22.22  subdivision 1, is amended to read: 
 22.23     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 22.24  commissioner shall establish the general education tax rate by 
 22.25  July 1 of each year for levies payable in the following year.  
 22.26  The general education tax capacity rate shall be a rate, rounded 
 22.27  up to the nearest tenth of a percent, that, when applied to the 
 22.28  adjusted net tax capacity for all districts, raises the amount 
 22.29  specified in this subdivision.  The general education tax rate 
 22.30  shall be the rate that raises $1,054,000,000 for fiscal year 
 22.31  1996 and $1,359,000,000 for fiscal year 1997 and later fiscal 
 22.32  years.  Beginning for fiscal year 1999 and thereafter, any 
 22.33  increase in the general education levy is limited to the 
 22.34  percentage increase in equalized limited market value for levies 
 22.35  payable in the following year.  The general education tax rate 
 22.36  may not be changed due to changes or corrections made to a 
 23.1   district's adjusted net tax capacity after the tax rate has been 
 23.2   established.  
 23.3      Sec. 2.  [275.0645] [LEVY CONSTRAINTS; COMPLIANCE.] 
 23.4      Subdivision 1.  [LEVY CONSTRAINTS.] On or before August 1 
 23.5   of each year, the commissioner of revenue shall certify a 
 23.6   specific levy limitation to each county, city, and metropolitan 
 23.7   special taxing district for property taxes payable in the 
 23.8   following year.  The certification shall also notify each 
 23.9   recipient taxing authority that a referendum must be held if the 
 23.10  taxing authority's property tax levy for the following taxes 
 23.11  payable year will exceed the certified levy limitation amount.  
 23.12  For taxes payable in 1998, the levy limitation for each affected 
 23.13  taxing authority is the authority's final certified levy for all 
 23.14  purposes, including bonded indebtedness, for taxes payable in 
 23.15  1997, multiplied by one plus the rate of levy increase adopted 
 23.16  for counties, cities, and special taxing districts respectively 
 23.17  by the legislature under section 16A.102, subdivision 2, for the 
 23.18  calendar year in which the property taxes are payable.  For 
 23.19  taxes payable years after 1998, the levy limitation for each 
 23.20  affected taxing authority is the authority's final certified 
 23.21  levy for all purposes, including bonded indebtedness, for taxes 
 23.22  payable in the prior year multiplied by one plus the rate of 
 23.23  levy increase adopted for counties, cities, and special taxing 
 23.24  districts respectively by the legislature under section 16A.102, 
 23.25  subdivision 2, for the calendar year in which the property taxes 
 23.26  are payable.  Towns and nonmetropolitan special taxing districts 
 23.27  are exempt from this levy limitation.  
 23.28     Subd. 2.  [COMPLIANCE.] Each county, city, or metropolitan 
 23.29  special taxing district which intends to increase its property 
 23.30  tax levy for taxes payable in the following year by an amount 
 23.31  which exceeds the levy limitation certified to it under 
 23.32  subdivision 1 for taxes payable in the following year, must 
 23.33  conduct a referendum on that question on the second Tuesday in 
 23.34  November of the year preceding the year in which the property 
 23.35  taxes are payable.  Approval of the excess levy by the voters is 
 23.36  effective for the following taxes payable year only, unless the 
 24.1   question on the ballot is for the approval of a bond issue, or 
 24.2   unless the question on the ballot specifies the additional years 
 24.3   in which the excess levy will be allowed.  A voter approved 
 24.4   excess levy for a particular taxes payable year is not included 
 24.5   in the computation of the taxing authority's levy limitation 
 24.6   under subdivision 1 for a subsequent taxes payable year.  To the 
 24.7   extent that a voter approved excess levy exceeds the levy 
 24.8   limitation for that taxes payable year multiplied by the rate of 
 24.9   increase in equalized, but nonlimited, taxable market values 
 24.10  within the jurisdiction for the current assessment year, as 
 24.11  compared to the prior assessment year, the voter approved excess 
 24.12  levy will be subject to a 50 percent penalty which will be 
 24.13  deducted from state aids, or from levy proceeds, under the 
 24.14  procedures in section 275.07, subdivision 6. 
 24.15     Sec. 3.  Minnesota Statutes 1996, section 275.065, 
 24.16  subdivision 1, is amended to read: 
 24.17     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 24.18  law or charter to the contrary, on or before September 15, each 
 24.19  taxing authority, other than a school district, shall adopt a 
 24.20  proposed budget and shall certify to the county auditor the 
 24.21  proposed or, in the case of a town, the final property tax levy 
 24.22  for taxes payable in the following year. 
 24.23     (b) On or before September 30, each school district shall 
 24.24  certify to the county auditor the proposed property tax levy for 
 24.25  taxes payable in the following year.  The school district may 
 24.26  certify the proposed levy as: 
 24.27     (1) a specific dollar amount; or 
 24.28     (2) an amount equal to the maximum levy limitation 
 24.29  certified by the commissioner of children, families, and 
 24.30  learning to the county auditor according to section 124.918, 
 24.31  subdivision 1. 
 24.32     (c) If the board of estimate and taxation or any similar 
 24.33  board that establishes maximum tax levies for taxing 
 24.34  jurisdictions within a first class city certifies the maximum 
 24.35  property tax levies for funds under its jurisdiction by charter 
 24.36  to the county auditor by September 15, the city shall be deemed 
 25.1   to have certified its levies for those taxing jurisdictions. 
 25.2      (d) For purposes of this section, "taxing authority" 
 25.3   includes all home rule and statutory cities, towns, counties, 
 25.4   school districts, and special taxing districts as defined in 
 25.5   section 275.066.  Intermediate school districts that levy a tax 
 25.6   under chapter 124 or 136D, joint powers boards established under 
 25.7   sections 124.491 to 124.495, and common school districts No. 
 25.8   323, Franconia, and No. 815, Prinsburg, are also special taxing 
 25.9   districts for purposes of this section.  
 25.10     (e) Any county, city, or metropolitan special taxing 
 25.11  district that will be holding a referendum under section 
 25.12  275.0645, on an increase in its levy above the levy limitation 
 25.13  established in that section, must include the amount of the 
 25.14  proposed excess levy in the proposed total levy certified under 
 25.15  this subdivision. 
 25.16     Sec. 4.  Minnesota Statutes 1996, section 275.065, 
 25.17  subdivision 3, is amended to read: 
 25.18     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 25.19  county auditor shall prepare and the county treasurer shall 
 25.20  deliver after November 10 and on or before November 24 October 
 25.21  31 each year, by first class mail to each taxpayer at the 
 25.22  address listed on the county's current year's assessment roll, a 
 25.23  notice of proposed property taxes and, in the case of a town, 
 25.24  final property taxes.  
 25.25     (b) The commissioner of revenue shall prescribe the form of 
 25.26  the notice. 
 25.27     (c) The notice must inform taxpayers that it contains the 
 25.28  amount of property taxes each taxing authority other than a town 
 25.29  proposes to collect for taxes payable the following year and, 
 25.30  for a town, the amount of its final levy.  It must clearly state 
 25.31  that each taxing authority, including regional library districts 
 25.32  established under section 134.201, and including the 
 25.33  metropolitan taxing districts as defined in paragraph (i), but 
 25.34  excluding all other special taxing districts and towns, will 
 25.35  hold a public meeting to receive public testimony on the 
 25.36  proposed budget and proposed or final property tax levy, or, in 
 26.1   case of a school district, on the current budget and proposed 
 26.2   property tax levy.  It must clearly state the time and place of 
 26.3   each taxing authority's meeting and an address where comments 
 26.4   will be received by mail.  
 26.5      (d) The notice must state for each parcel: 
 26.6      (1) the market value of the property as determined under 
 26.7   section 273.11, and used for computing property taxes payable in 
 26.8   the following year and for taxes payable in the current year; 
 26.9   and, in the case of residential property, whether the property 
 26.10  is classified as homestead or nonhomestead.  The notice must 
 26.11  clearly inform taxpayers of the years to which the market values 
 26.12  apply and that the values are final values; 
 26.13     (2) by county, city or town, state-determined school 
 26.14  district levy, school district excess referenda levy, remaining 
 26.15  school district levy, regional library district, if in 
 26.16  existence, the total of the metropolitan special taxing 
 26.17  districts as defined in paragraph (i) and the sum of the 
 26.18  remaining special taxing districts, and as a total of the taxing 
 26.19  authorities, including all special taxing districts, the 
 26.20  proposed or, for a town, final net tax on the property for taxes 
 26.21  payable the following year and the actual tax for taxes payable 
 26.22  the current year.  For the purposes of this subdivision, 
 26.23  "state-determined school district levy" means the levy certified 
 26.24  under section 124A.23, subdivision 2 or 3.  If a school district 
 26.25  has certified under section 124A.03, subdivision 2, that a 
 26.26  referendum will be held in the school district at the November 
 26.27  general election, the county auditor must note next to the 
 26.28  school district's proposed amount that a referendum is pending 
 26.29  and that, if approved by the voters, the tax amount may be 
 26.30  higher than shown on the notice.  For the purposes of this 
 26.31  subdivision, "school district excess referenda levy" means 
 26.32  school district taxes for operating purposes approved at 
 26.33  referendums, including those taxes based on net tax capacity as 
 26.34  well as those based on market value.  "School district excess 
 26.35  referenda levy" does not include school district taxes for 
 26.36  capital expenditures approved at referendums or school district 
 27.1   taxes to pay for the debt service on bonds approved at 
 27.2   referenda.  In the case of the city of Minneapolis, the levy for 
 27.3   the Minneapolis library board and the levy for Minneapolis park 
 27.4   and recreation shall be listed separately from the remaining 
 27.5   amount of the city's levy.  In the case of a parcel where tax 
 27.6   increment or the fiscal disparities areawide tax under chapter 
 27.7   276A or 473F applies, the proposed tax levy on the captured 
 27.8   value or the proposed tax levy on the tax capacity subject to 
 27.9   the areawide tax must each be stated separately and not included 
 27.10  in the sum of the special taxing districts; and 
 27.11     (3) the increase or decrease in the amounts in clause (2) 
 27.12  from taxes payable in the current year to proposed or, for a 
 27.13  town, final taxes payable the following year, expressed as a 
 27.14  dollar amount and as a percentage. 
 27.15     (e) The notice must clearly state that the proposed or 
 27.16  final taxes do not include the following: 
 27.17     (1) special assessments; 
 27.18     (2) levies approved by the voters after the date the 
 27.19  proposed taxes are certified, including bond referenda, school 
 27.20  district levy referenda, and levy limit increase referenda; 
 27.21     (3) amounts necessary to pay cleanup or other costs due to 
 27.22  a natural disaster occurring after the date the proposed taxes 
 27.23  are certified; 
 27.24     (4) amounts necessary to pay tort judgments against the 
 27.25  taxing authority that become final after the date the proposed 
 27.26  taxes are certified; and 
 27.27     (5) the contamination tax imposed on properties which 
 27.28  received market value reductions for contamination. 
 27.29     (f) Except as provided in subdivision 7, failure of the 
 27.30  county auditor to prepare or the county treasurer to deliver the 
 27.31  notice as required in this section does not invalidate the 
 27.32  proposed or final tax levy or the taxes payable pursuant to the 
 27.33  tax levy. 
 27.34     (g) If the notice the taxpayer receives under this section 
 27.35  lists the property as nonhomestead and the homeowner provides 
 27.36  satisfactory documentation to the county assessor that the 
 28.1   property is owned and used as the owner's homestead, the 
 28.2   assessor shall reclassify the property to homestead for taxes 
 28.3   payable in the following year. 
 28.4      (h) In the case of class 4 residential property used as a 
 28.5   residence for lease or rental periods of 30 days or more, the 
 28.6   taxpayer must either: 
 28.7      (1) mail or deliver a copy of the notice of proposed 
 28.8   property taxes to each tenant, renter, or lessee; or 
 28.9      (2) post a copy of the notice in a conspicuous place on the 
 28.10  premises of the property.  
 28.11     The notice must be mailed or posted by the taxpayer by 
 28.12  November 27 or within three days of receipt of the notice, 
 28.13  whichever is later.  A taxpayer may notify the county treasurer 
 28.14  of the address of the taxpayer, agent, caretaker, or manager of 
 28.15  the premises to which the notice must be mailed in order to 
 28.16  fulfill the requirements of this paragraph. 
 28.17     (i) For purposes of this subdivision, subdivisions 5a and 
 28.18  6, "metropolitan special taxing districts" means the following 
 28.19  taxing districts in the seven-county metropolitan area that levy 
 28.20  a property tax for any of the specified purposes listed below: 
 28.21     (1) metropolitan council under section 473.132, 473.167, 
 28.22  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 28.23     (2) metropolitan airports commission under section 473.667, 
 28.24  473.671, or 473.672; and 
 28.25     (3) metropolitan mosquito control commission under section 
 28.26  473.711. 
 28.27     For purposes of this section, any levies made by the 
 28.28  regional rail authorities in the county of Anoka, Carver, 
 28.29  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 28.30  398A shall be included with the appropriate county's levy and 
 28.31  shall be discussed at that county's public hearing. 
 28.32     (j) For taxes levied in 1996, payable in 1997 only, in the 
 28.33  case of a statutory or home rule charter city or town that 
 28.34  exercises the local levy option provided in section 473.388, 
 28.35  subdivision 7, the notice of its proposed taxes may include a 
 28.36  statement of the amount by which its proposed tax increase for 
 29.1   taxes payable in 1997 is attributable to its exercise of that 
 29.2   option, together with a statement that the levy of the 
 29.3   metropolitan council was decreased by a similar amount because 
 29.4   of the exercise of that option. 
 29.5      Sec. 5.  Minnesota Statutes 1996, section 275.065, 
 29.6   subdivision 5a, is amended to read: 
 29.7      Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
 29.8   population of more than 2,500, county, a metropolitan special 
 29.9   taxing district as defined in subdivision 3, paragraph (i), a 
 29.10  regional library district established under section 134.201, or 
 29.11  school district shall advertise in a newspaper a notice of its 
 29.12  intent to adopt a budget and property tax levy or, in the case 
 29.13  of a school district, to review its current budget and proposed 
 29.14  property taxes payable in the following year, at a public 
 29.15  hearing.  The notice must be published not less than two 
 29.16  business days nor more than six business days before the hearing.
 29.17     The advertisement must be at least one-eighth page in size 
 29.18  of a standard-size or a tabloid-size newspaper.  The 
 29.19  advertisement must not be placed in the part of the newspaper 
 29.20  where legal notices and classified advertisements appear.  The 
 29.21  advertisement must be published in an official newspaper of 
 29.22  general circulation in the taxing authority.  The newspaper 
 29.23  selected must be one of general interest and readership in the 
 29.24  community, and not one of limited subject matter.  The 
 29.25  advertisement must appear in a newspaper that is published at 
 29.26  least once per week.  
 29.27     For purposes of this section, the metropolitan special 
 29.28  taxing district's advertisement must only be published in the 
 29.29  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 29.30     (b) The advertisement must be in the following form, except 
 29.31  that the notice for a school district may include references to 
 29.32  the current budget in regard to proposed property taxes. 
 29.33                             "NOTICE OF
 29.34                      PROPOSED PROPERTY TAXES
 29.35             (City/County/School District/Metropolitan
 29.36                  Special Taxing District/Regional
 30.1                    Library District) of .........
 30.2   The governing body of ........ will soon hold budget hearings 
 30.3   and vote on the property taxes for (city/county/metropolitan 
 30.4   special taxing district/regional library district services that 
 30.5   will be provided in 199_/school district services that will be 
 30.6   provided in 199_ and 199_). 
 30.7                      NOTICE OF PUBLIC HEARING:
 30.8   All concerned citizens are invited to attend a public hearing 
 30.9   and express their opinions on the proposed (city/county/school 
 30.10  district/metropolitan special taxing district/regional library 
 30.11  district) budget and property taxes, or in the case of a school 
 30.12  district, its current budget and proposed property taxes, 
 30.13  payable in the following year.  The hearing will be held on 
 30.14  (Month/Day/Year) at (Time) at (Location, Address)." 
 30.15     (c) A city with a population of over 500 but not more than 
 30.16  2,500 must advertise according to the provisions of paragraph 
 30.17  (a), or by posted notice as defined in section 645.12, 
 30.18  subdivision 1.  If posted, the advertisement must be posted at 
 30.19  the time provided in paragraph (a).  It must be in the form 
 30.20  required in paragraph (b). 
 30.21     (d) For purposes of this subdivision, the population of a 
 30.22  city is the most recent population as determined by the state 
 30.23  demographer under section 4A.02. 
 30.24     (e) The commissioner of revenue, subject to the approval of 
 30.25  the chairs of the house and senate tax committees, shall 
 30.26  prescribe the form and format of the advertisement. 
 30.27     (f) For calendar year 1993, each taxing authority required 
 30.28  to publish an advertisement must include on the advertisement a 
 30.29  statement that information on the increases or decreases of the 
 30.30  total budget, including employee and independent contractor 
 30.31  compensation in the prior year, current year, and proposed 
 30.32  budget year will be discussed at the hearing. 
 30.33     (g) Notwithstanding paragraph (f), for 1993, the 
 30.34  commissioner of revenue shall prescribe the form, format, and 
 30.35  content of an advertisement comparing current and proposed 
 30.36  expense budgets for the metropolitan council, the metropolitan 
 31.1   airports commission, and the metropolitan mosquito control 
 31.2   commission.  The expense budget must include occupancy, 
 31.3   personnel, contractual and capital improvement expenses.  The 
 31.4   form, format, and content of the advertisement must be approved 
 31.5   by the chairs of the house and senate tax committees prior to 
 31.6   publication. 
 31.7      Sec. 6.  Minnesota Statutes 1996, section 275.065, 
 31.8   subdivision 6, is amended to read: 
 31.9      Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 31.10  Between November 29 and December 20, the governing bodies of a 
 31.11  city that has a population over 500, county, metropolitan 
 31.12  special taxing districts as defined in subdivision 3, paragraph 
 31.13  (i), and regional library districts shall each hold a public 
 31.14  hearing to discuss and seek public comment on its final budget 
 31.15  and property tax levy for taxes payable in the following year, 
 31.16  and the governing body of the school district shall hold a 
 31.17  public hearing to review its current budget and proposed 
 31.18  property tax levy for taxes payable in the following year.  The 
 31.19  metropolitan special taxing districts shall be required to hold 
 31.20  only a single joint public hearing, the location of which will 
 31.21  be determined by the affected metropolitan agencies. 
 31.22     At a subsequent hearing, each county, school district, 
 31.23  city, and metropolitan special taxing district may amend its 
 31.24  proposed property tax levy and must adopt a final property tax 
 31.25  levy.  Each county, city, and metropolitan special taxing 
 31.26  district may also amend its proposed budget and must adopt a 
 31.27  final budget at the subsequent hearing.  A school district is 
 31.28  not required to adopt its final budget at the subsequent 
 31.29  hearing.  The subsequent hearing of a taxing authority must be 
 31.30  held on a date subsequent to the date of the taxing authority's 
 31.31  initial public hearing, or subsequent to the date of its 
 31.32  continuation hearing if a continuation hearing is held.  The 
 31.33  subsequent hearing may be held at a regularly scheduled board or 
 31.34  council meeting or at a special meeting scheduled for the 
 31.35  purposes of the subsequent hearing.  The subsequent hearing of a 
 31.36  taxing authority does not have to be coordinated by the county 
 32.1   auditor to prevent a conflict with an initial hearing, a 
 32.2   continuation hearing, or a subsequent hearing of any other 
 32.3   taxing authority.  All subsequent hearings must be held prior to 
 32.4   five working days after December 20 of the levy year. 
 32.5      The time and place of the subsequent hearing must be 
 32.6   announced at the initial public hearing or at the continuation 
 32.7   hearing. 
 32.8      The property tax levy certified under section 275.07 by a 
 32.9   city, county, metropolitan special taxing district, regional 
 32.10  library district, or school district must not exceed the 
 32.11  proposed levy determined under subdivision 1, except by an 
 32.12  amount up to the sum of the following amounts: 
 32.13     (1) the amount of a school district levy whose voters 
 32.14  approved a referendum to increase taxes under section 124.82, 
 32.15  subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 
 32.16  2, after the proposed levy was certified; 
 32.17     (2) the amount of a city or county levy approved by the 
 32.18  voters after the proposed levy was certified; 
 32.19     (3) the amount of a levy to pay principal and interest on 
 32.20  bonds approved by the voters under section 475.58 after the 
 32.21  proposed levy was certified; 
 32.22     (4) the amount of a levy to pay costs due to a natural 
 32.23  disaster occurring after the proposed levy was certified, if 
 32.24  that amount is approved by the commissioner of revenue under 
 32.25  subdivision 6a; 
 32.26     (5) the amount of a levy to pay tort judgments against a 
 32.27  taxing authority that become final after the proposed levy was 
 32.28  certified, if the amount is approved by the commissioner of 
 32.29  revenue under subdivision 6a; 
 32.30     (6) the amount of an increase in levy limits certified to 
 32.31  the taxing authority by the commissioner of children, families, 
 32.32  and learning or the commissioner of revenue after the proposed 
 32.33  levy was certified; and 
 32.34     (7) the amount required under section 124.755. 
 32.35     At the hearing under this subdivision, (i) the percentage 
 32.36  increase in property taxes proposed by the taxing authority, if 
 33.1   any, and the specific purposes for which property tax revenues 
 33.2   are being increased, (ii) the amount of the total budget, and 
 33.3   its components, (iii) revenues and expenditures, by type and 
 33.4   amount, and (iv) changes in the budget, as compared to the 
 33.5   current year's budget, must be discussed.  
 33.6      During the discussion, the governing body shall hear 
 33.7   comments regarding a proposed increase and explain the reasons 
 33.8   for the proposed increase.  The public shall be allowed to speak 
 33.9   and to ask questions.  At the subsequent hearing held as 
 33.10  provided in this subdivision, the governing body, other than the 
 33.11  governing body of a school district, shall adopt its final 
 33.12  property tax levy prior to adopting its final budget. 
 33.13     If the hearing is not completed on its scheduled date, the 
 33.14  taxing authority must announce, prior to adjournment of the 
 33.15  hearing, the date, time, and place for the continuation of the 
 33.16  hearing.  The continued hearing must be held at least five 
 33.17  business days but no more than 14 business days after the 
 33.18  original hearing. 
 33.19     The hearing must be held after 5:00 p.m. if scheduled on a 
 33.20  day other than Saturday.  No hearing may be held on a Sunday.  
 33.21  The governing body of a county shall hold a hearing on the 
 33.22  second Tuesday in December each year, and may hold additional 
 33.23  hearings on other dates before December 20 if necessary for the 
 33.24  convenience of county residents.  If the county needs a 
 33.25  continuation of its hearing, the continued hearing shall be held 
 33.26  on the third Tuesday in December.  If the third Tuesday in 
 33.27  December falls on December 21, the county's continuation hearing 
 33.28  shall be held on Monday, December 20.  The county auditor shall 
 33.29  provide for the coordination of hearing dates for all cities and 
 33.30  school districts within the county. 
 33.31     The metropolitan special taxing districts shall hold a 
 33.32  joint public hearing on the first Monday of December.  A 
 33.33  continuation hearing, if necessary, shall be held on the second 
 33.34  Monday of December. 
 33.35     By August 10, each school board and the board of the 
 33.36  regional library district shall certify to the county auditors 
 34.1   of the counties in which the school district or regional library 
 34.2   district is located the dates on which it elects to hold its 
 34.3   hearings and any continuations.  If a school board or regional 
 34.4   library district does not certify the dates by August 10, the 
 34.5   auditor will assign the hearing date.  The dates elected or 
 34.6   assigned must not conflict with the hearing dates of the county 
 34.7   or the metropolitan special taxing districts.  By August 20, the 
 34.8   county auditor shall notify the clerks of the cities within the 
 34.9   county of the dates on which school districts and regional 
 34.10  library districts have elected to hold their hearings.  At the 
 34.11  time a city certifies its proposed levy under subdivision 1 it 
 34.12  shall certify the dates on which it elects to hold its hearings 
 34.13  and any continuations.  For its initial hearing and for the 
 34.14  subsequent hearing at which the final property tax levy will be 
 34.15  adopted, the city must not select dates that conflict with the 
 34.16  county hearing dates, metropolitan special taxing district 
 34.17  dates, or with those elected by or assigned to the school 
 34.18  districts or regional library district in which the city is 
 34.19  located.  For continuation hearings, the city may select dates 
 34.20  that conflict with other taxing authorities' dates if the city 
 34.21  deems it necessary. 
 34.22     The county hearing dates and the city, metropolitan special 
 34.23  taxing district, regional library district, and school district 
 34.24  hearing dates must be designated on the notices required under 
 34.25  subdivision 3.  The continuation dates need not be stated on the 
 34.26  notices.  
 34.27     This subdivision does not apply to towns and special taxing 
 34.28  districts other than regional library districts and metropolitan 
 34.29  special taxing districts. 
 34.30     Notwithstanding the requirements of this section, the 
 34.31  employer is required to meet and negotiate over employee 
 34.32  compensation as provided for in chapter 179A.  
 34.33     Sec. 7.  Minnesota Statutes 1996, section 275.07, is 
 34.34  amended by adding a subdivision to read: 
 34.35     Subd. 5.  [LEVY REDUCTION.] If a county, city, or 
 34.36  metropolitan special taxing district certifies a levy under 
 35.1   subdivision 1 that would exceed the levy limitation certified to 
 35.2   that taxing authority by the commissioner of revenue under 
 35.3   section 275.0645, subdivision 1, for the taxes payable year, and 
 35.4   if the excess levy was not approved by the voters at a 
 35.5   referendum held on the second Tuesday in November preceding the 
 35.6   levy certification date under subdivision 1, the county auditor 
 35.7   will reduce the amount of the final certified levy so that it 
 35.8   does not exceed that taxing authority's levy limitation, as 
 35.9   certified by the commissioner.  
 35.10     Sec. 8.  Minnesota Statutes 1996, section 275.07, is 
 35.11  amended by adding a subdivision to read: 
 35.12     Subd. 6.  [AID REDUCTION.] If a county, city, or 
 35.13  metropolitan special taxing district certifies a levy under 
 35.14  subdivision 1 that would exceed the levy limitation certified to 
 35.15  that taxing authority by the commissioner of revenue under 
 35.16  section 275.0645, subdivision 1, for the taxes payable year, and 
 35.17  if the excess levy was approved by the voters at a referendum 
 35.18  held on the second Tuesday in November preceding the levy 
 35.19  certification date under subdivision 1, the commissioner of 
 35.20  revenue will reduce the amount of local government aid, 
 35.21  homestead and agricultural credit aid, county criminal justice 
 35.22  aid, and family preservation aid, to be paid to the taxing 
 35.23  authority by such an amount that the total reduction equals 50 
 35.24  percent of the amount by which the total levy exceeds the 
 35.25  certified levy limitation for the payable year times one plus 
 35.26  the rate of increase in equalized, but nonlimited, taxable 
 35.27  market value within the jurisdiction for the current assessment 
 35.28  year as compared to the prior assessment year.  One-half of the 
 35.29  reduction amount shall be deducted from payments made in July of 
 35.30  the property taxes payable year, and one-half of the reduction 
 35.31  amount shall be deducted from payments made in December of the 
 35.32  property taxes payable year.  If the taxing authority's amount 
 35.33  of local government aid, homestead and agricultural credit aid, 
 35.34  county criminal justice aid, and family preservation aid payable 
 35.35  in the year that a voter approved excess levy is collected is 
 35.36  less than the reduction amount, the commissioner of revenue 
 36.1   shall certify an amount to the commissioner of transportation to 
 36.2   be deducted from transportation aids payable that year, or an 
 36.3   amount to the commissioner of human services to be deducted from 
 36.4   community social service aids payable in that year, so that the 
 36.5   total reduction amount is deducted from state aids.  If the 
 36.6   state aids listed in this subdivision, otherwise to be paid to 
 36.7   the taxing authority in the property taxes payable year, do not 
 36.8   equal the reduction amount for that year, the commissioner of 
 36.9   revenue shall certify to the county auditor the amount by which 
 36.10  the reduction amount exceeds the otherwise scheduled state aid 
 36.11  payments.  That amount shall be proportionately deducted by the 
 36.12  county auditor from the property tax distributions to the taxing 
 36.13  authority resulting from the excess levy.  The amounts deducted 
 36.14  from property tax collections shall be forwarded to the 
 36.15  commissioner of revenue for deposit in the general fund of the 
 36.16  state treasury.  
 36.17     Sec. 9.  Minnesota Statutes 1996, section 276.04, 
 36.18  subdivision 2, is amended to read: 
 36.19     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 36.20  shall provide for the printing of the tax statements.  The 
 36.21  commissioner of revenue shall prescribe the form of the property 
 36.22  tax statement and its contents.  The statement must contain a 
 36.23  tabulated statement of the dollar amount due to each taxing 
 36.24  authority from the parcel of real property for which a 
 36.25  particular tax statement is prepared.  The dollar amounts due 
 36.26  the county, township or municipality, the total of the 
 36.27  metropolitan special taxing districts as defined in section 
 36.28  275.065, subdivision 3, paragraph (i), state-determined school 
 36.29  district levy, school district excess referenda levy, remaining 
 36.30  school district levy, and the total of other voter approved 
 36.31  referenda levies based on market value under section 275.61 must 
 36.32  be separately stated.  The amounts due all other special taxing 
 36.33  districts, if any, may be aggregated.  For the purposes of this 
 36.34  subdivision, "state-determined school district levy" means the 
 36.35  levy certified under section 124A.23, subdivision 2 or 3.  For 
 36.36  the purposes of this subdivision, "school district excess 
 37.1   referenda levy" means school district taxes for operating 
 37.2   purposes approved at referenda, including those taxes based on 
 37.3   net tax capacity as well as those based on market value.  
 37.4   "School district excess referenda levy" does not include school 
 37.5   district taxes for capital expenditures approved at referendums 
 37.6   or school district taxes to pay for the debt service on bonds 
 37.7   approved at referenda.  The amount of the tax on contamination 
 37.8   value imposed under sections 270.91 to 270.98, if any, must also 
 37.9   be separately stated.  The dollar amounts, including the dollar 
 37.10  amount of any special assessments, may be rounded to the nearest 
 37.11  even whole dollar.  For purposes of this section whole 
 37.12  odd-numbered dollars may be adjusted to the next higher 
 37.13  even-numbered dollar.  The amount of market value excluded under 
 37.14  section 273.11, subdivision 16, if any, must also be listed on 
 37.15  the tax statement.  The statement shall include the following 
 37.16  sentence, printed in upper case letters in boldface print:  "THE 
 37.17  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 37.18  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 37.19  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 37.20     (b) The property tax statements for manufactured homes and 
 37.21  sectional structures taxed as personal property shall contain 
 37.22  the same information that is required on the tax statements for 
 37.23  real property.  
 37.24     (c) Real and personal property tax statements must contain 
 37.25  the following information in the order given in this paragraph.  
 37.26  The information must contain the current year tax information in 
 37.27  the right column with the corresponding information for the 
 37.28  previous year in a column on the left: 
 37.29     (1) the property's estimated market value under section 
 37.30  273.11, subdivision 1; 
 37.31     (2) the property's taxable market value after reductions 
 37.32  under section 273.11, subdivisions 1a and 16; 
 37.33     (3) the property's gross tax, calculated by multiplying the 
 37.34  property's gross tax capacity times the total local tax rate and 
 37.35  adding to the result the sum of the aids enumerated in clause 
 37.36  (4); 
 38.1      (4) a total of the following aids: 
 38.2      (i) education aids payable under chapters 124 and 124A; 
 38.3      (ii) local government aids for cities, towns, and counties 
 38.4   under chapter 477A; and 
 38.5      (iii) disparity reduction aid under section 273.1398; 
 38.6      (5) for homestead residential and agricultural properties, 
 38.7   the homestead and agricultural credit aid apportioned to the 
 38.8   property.  This amount is obtained by multiplying the total 
 38.9   local tax rate by the difference between the property's gross 
 38.10  and net tax capacities under section 273.13.  This amount must 
 38.11  be separately stated and identified as "homestead and 
 38.12  agricultural credit."  For purposes of comparison with the 
 38.13  previous year's amount for the statement for taxes payable in 
 38.14  1990, the statement must show the homestead credit for taxes 
 38.15  payable in 1989 under section 273.13, and the agricultural 
 38.16  credit under section 273.132 for taxes payable in 1989; 
 38.17     (6) any credits received under sections 273.119; 273.123; 
 38.18  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 38.19  473H.10, except that the amount of credit received under section 
 38.20  273.135 must be separately stated and identified as "taconite 
 38.21  tax relief"; and 
 38.22     (7) the net tax payable in the manner required in paragraph 
 38.23  (a). 
 38.24     (d) If the county uses envelopes for mailing property tax 
 38.25  statements and if the county agrees, a taxing district may 
 38.26  include a notice with the property tax statement notifying 
 38.27  taxpayers when the taxing district will begin its budget 
 38.28  deliberations for the current year, and encouraging taxpayers to 
 38.29  attend the hearings.  If the county allows notices to be 
 38.30  included in the envelope containing the property tax statement, 
 38.31  and if more than one taxing district relative to a given 
 38.32  property decides to include a notice with the tax statement, the 
 38.33  county treasurer or auditor must coordinate the process and may 
 38.34  combine the information on a single announcement.  
 38.35     The commissioner of revenue shall certify to the county 
 38.36  auditor the actual or estimated aids enumerated in clauses (3) 
 39.1   and (4) that local governments will receive in the following 
 39.2   year.  In the case of a county containing a city of the first 
 39.3   class, for taxes levied in 1991, and for all counties for taxes 
 39.4   levied in 1992 and thereafter, the commissioner must certify 
 39.5   this amount by September 1.  
 39.6      Sec. 10.  [EFFECTIVE DATE.] 
 39.7      Sections 2 to 9 are effective for taxes levied in 1997, 
 39.8   payable in 1998, and thereafter. 
 39.9                              ARTICLE 5 
 39.10                STATE TAX REFUND OF EXCESS REVENUES 
 39.11     Section 1.  Minnesota Statutes 1996, section 16A.102, is 
 39.12  amended by adding a subdivision to read: 
 39.13     Subd. 4.  [STATE TAX REFUND.] As a part of each forecast of 
 39.14  state revenue and expenditures that is prepared under section 
 39.15  16A.103 in February of the first year of a biennium, the 
 39.16  commissioner of finance shall determine the percentage of 
 39.17  Minnesota personal income that was collected in state taxes and 
 39.18  other state revenues for the previous biennium.  If that 
 39.19  percentage exceeds the target maximum percentage adopted by the 
 39.20  legislature under subdivision 2 by more than two-tenths of one 
 39.21  percentage point, then an individual income tax refund is 
 39.22  required.  The first five-hundredths of one percentage point 
 39.23  excess amount shall be deposited into the state budget reserve 
 39.24  account.  The refunded amount shall equal the excess greater 
 39.25  than five-hundredths of one percentage point and shall be 
 39.26  refunded to individual income taxpayers pro rata based on the 
 39.27  individual income tax imposed by chapter 290 less all the 
 39.28  credits allowed by chapter 290 other than the credits for 
 39.29  withholding taxes allowed by section 290.92, subdivision 12, for 
 39.30  the year for which the forecast was made.  If the February 
 39.31  forecast shows a percentage equal to or less than two-tenths of 
 39.32  one percentage point then that excess amount shall be deposited 
 39.33  into the state budget reserve account. 
 39.34     Sec. 2.  [EFFECTIVE DATE.] 
 39.35     Section 1 is effective the day following final enactment.