HF 1253

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

  1.1                          A bill for an act 
  1.2             relating to the financing of government in this state; 
  1.3             reducing the general education tax rate; modifying 
  1.4             proposed property tax notices and property tax 
  1.5             statements; providing homestead and agricultural 
  1.6             credit aid for counties and school districts only; 
  1.7             requiring levy increases to be levied against market 
  1.8             value; changing the computation of local government 
  1.9             aids for cities; providing county program reform aid; 
  1.10            providing for statewide negotiation of teachers' 
  1.11            salaries; providing a property tax rebate payable in 
  1.12            1998; appropriating money; amending Minnesota Statutes 
  1.13            1996, sections 124.2131, subdivision 1; 124A.03, 
  1.14            subdivision 1g; 124A.23, subdivisions 1 and 2; 
  1.15            162.081, subdivision 4; 273.1398, subdivisions 1, 2, 
  1.16            and 6; 275.065, subdivision 3; 275.07, subdivision 1a; 
  1.17            276.04, subdivision 2; 473.253, subdivision 1; 
  1.18            473.711, subdivision 2; 477A.011, subdivisions 27, 34, 
  1.19            and by adding subdivisions; 477A.013, subdivisions 8 
  1.20            and 9; and 477A.03, subdivision 2; proposing coding 
  1.21            for new law in Minnesota Statutes, chapters 124; 179A; 
  1.22            275; and 477A; repealing Minnesota Statutes 1996, 
  1.23            section 477A.011, subdivisions 35, 36, and 37. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  Minnesota Statutes 1996, section 124.2131, 
  1.26  subdivision 1, is amended to read: 
  1.27     Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
  1.28  [COMPUTATION.] The department of revenue shall annually conduct 
  1.29  an assessment/sales ratio study of the taxable property in each 
  1.30  school district in accordance with the procedures in paragraphs 
  1.31  (b) and (c).  Based upon the results of this assessment/sales 
  1.32  ratio study, the department of revenue shall determine an 
  1.33  aggregate equalized net tax capacity for the various classes of 
  1.34  taxable property in each school district, which tax capacity 
  2.1   shall be designated as the adjusted net tax capacity.  The 
  2.2   department shall also, based upon the results of the 
  2.3   assessment/sales ratio study, determine the equalized referendum 
  2.4   market value for each school district which shall be designated 
  2.5   as the adjusted referendum market value.  The adjusted net tax 
  2.6   capacities shall be determined using the net tax capacity 
  2.7   percentages in effect for the assessment year following the 
  2.8   assessment year of the study.  The department of revenue shall 
  2.9   make whatever estimates are necessary to account for changes in 
  2.10  the classification system.  The department of revenue may incur 
  2.11  the expense necessary to make the determinations.  The 
  2.12  commissioner of revenue may reimburse any county or governmental 
  2.13  official for requested services performed in ascertaining the 
  2.14  adjusted net tax capacity.  On or before March 15 annually, the 
  2.15  department of revenue shall file with the chair of the tax 
  2.16  committee of the house of representatives and the chair of the 
  2.17  committee on taxes and tax laws of the senate a report of 
  2.18  adjusted net tax capacities.  On or before June 15 annually, the 
  2.19  department of revenue shall file its final report on the 
  2.20  adjusted net tax capacities established by the previous year's 
  2.21  assessments and the current year's net tax capacity percentages 
  2.22  with the commissioner of children, families, and learning and 
  2.23  each county auditor for those school districts for which the 
  2.24  auditor has the responsibility for determination of local tax 
  2.25  rates.  A copy of the report so filed shall be mailed to the 
  2.26  clerk of each district involved and to the county assessor or 
  2.27  supervisor of assessments of the county or counties in which 
  2.28  each district is located. 
  2.29     (b)  [METHODOLOGY.] In making its annual assessment/sales 
  2.30  ratio studies, the department of revenue shall use a methodology 
  2.31  consistent with the most recent Standard on Assessment Ratio 
  2.32  Studies published by the assessment standards committee of the 
  2.33  International Association of Assessing Officers.  The 
  2.34  commissioner of revenue shall supplement this general 
  2.35  methodology with specific procedures necessary for execution of 
  2.36  the study in accordance with other Minnesota laws impacting the 
  3.1   assessment/sales ratio study.  The commissioner shall document 
  3.2   these specific procedures in writing and shall publish the 
  3.3   procedures in the State Register, but these procedures will not 
  3.4   be considered "rules" pursuant to the Minnesota administrative 
  3.5   procedure act.  For purposes of this section, sections 270.12, 
  3.6   subdivision 2, clause (8), and 278.05, subdivision 4, the 
  3.7   commissioner of revenue shall exclude from the assessment/sales 
  3.8   ratio study the sale of any nonagricultural property which does 
  3.9   not contain an improvement, if (1) the statutory basis on which 
  3.10  the property's taxable value as most recently assessed is less 
  3.11  than market value as defined in section 273.11, or (2) the 
  3.12  property has undergone significant physical change or a change 
  3.13  of use since the most recent assessment.  
  3.14     (c)  [AGRICULTURAL LANDS.] For purposes of determining the 
  3.15  adjusted net tax capacity of agricultural lands for the 
  3.16  calculation of adjusted net tax capacities, the market value of 
  3.17  agricultural lands shall be the price for which the property 
  3.18  would sell in an arms length transaction. 
  3.19     (d)  [FORCED SALES.] The commissioner may include forced 
  3.20  sales in the assessment/sales ratio studies if it is determined 
  3.21  by the commissioner that these forced sales indicate true market 
  3.22  value. 
  3.23     (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
  3.24  market value to be used in calculating sales ratios shall be the 
  3.25  value established by the assessor before any stipulations 
  3.26  resulting from appeals by property owners and before any 
  3.27  abatement unless the abatement was granted for the purpose of 
  3.28  correcting mere clerical errors. 
  3.29     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
  3.30  shall be calculated for commercial property and for industrial 
  3.31  property.  These two classes shall be combined only in 
  3.32  jurisdictions in which there is not an adequate sample of sales 
  3.33  in each class. 
  3.34     Sec. 2.  [124.917] [SCHOOL DISTRICT LEVIES.] 
  3.35     Subdivision 1.  [CATEGORICAL PROGRAM LEVY.] "Categorical 
  3.36  program levy" means a district's total levy less the sum of the 
  4.1   district's basic general education program levy under section 
  4.2   124A.23, subdivision 2, debt service levy under section 124.97, 
  4.3   and operating referendum levy under section 124A.03. 
  4.4      Subd. 2.  [CATEGORICAL NET TAX CAPACITY LEVY.] For taxes 
  4.5   payable in 1998 and later, each school district's categorical 
  4.6   net tax capacity levy is equal to the lesser of its categorical 
  4.7   program levy for taxes payable in 1997, or its categorical 
  4.8   program levy for that year. 
  4.9      Subd. 3.  [CATEGORICAL MARKET VALUE LEVY.] For taxes 
  4.10  payable in 1998 and later, a district's categorical market value 
  4.11  levy is equal to the difference between its categorical program 
  4.12  levy under subdivision 1 and its categorical tax capacity levy 
  4.13  under subdivision 2. 
  4.14     Sec. 3.  [124.975] [DEBT LEVY; MARKET VALUE.] 
  4.15     Except as otherwise provided in sections 124A.03 and 
  4.16  124A.0311, a school district levy imposed to pay obligations 
  4.17  approved by the electors under section 475.58 after November 1, 
  4.18  1997, for taxes payable in 1998 or thereafter, must be levied 
  4.19  against the referendum market value of all taxable property as 
  4.20  defined in section 124A.02, subdivision 3b.  A levy subject to 
  4.21  the requirements of this section must be separately certified to 
  4.22  the county auditor under section 275.07. 
  4.23     Sec. 4.  Minnesota Statutes 1996, section 124A.03, 
  4.24  subdivision 1g, is amended to read: 
  4.25     Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
  4.26  year 1996, a district's referendum equalization levy equals the 
  4.27  district's referendum equalization revenue times the lesser of 
  4.28  one or the ratio of the district's adjusted net tax capacity per 
  4.29  actual pupil unit to 100 percent of the equalizing factor as 
  4.30  defined in section 124A.02, subdivision 8. 
  4.31     (b) For fiscal year 1997 and thereafter, a district's 
  4.32  referendum equalization levy for a referendum levied against the 
  4.33  referendum market value of all taxable property as defined in 
  4.34  section 124A.02, subdivision 3b, equals the district's 
  4.35  referendum equalization revenue times the lesser of one or the 
  4.36  ratio of the district's adjusted referendum market value per 
  5.1   actual pupil unit to $476,000. 
  5.2      (c) (b) For fiscal year 1997 and thereafter, a district's 
  5.3   referendum equalization levy for a referendum levied against the 
  5.4   net tax capacity of all taxable property equals the district's 
  5.5   referendum equalization revenue times the lesser of one or the 
  5.6   ratio of the district's adjusted net tax capacity per actual 
  5.7   pupil unit to 100 percent of the equalizing factor for that year.
  5.8      Sec. 5.  Minnesota Statutes 1996, section 124A.23, 
  5.9   subdivision 1, is amended to read: 
  5.10     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] (a) The 
  5.11  commissioner shall establish the general education tax rate 
  5.12  rates by July 1 of each year for levies payable in the following 
  5.13  year.  
  5.14     (b) The total dollar amount raised by the general education 
  5.15  levy is $1,159,000,000 for fiscal year 1999 and later.  The 
  5.16  general education net tax capacity rate shall be a rate, rounded 
  5.17  up to the nearest tenth of a percent, that, when applied to the 
  5.18  adjusted net tax capacity for all districts, raises the amount 
  5.19  specified in this subdivision.  The general education tax rate 
  5.20  shall be the rate that raises $1,054,000,000 for fiscal year 
  5.21  1996 and $1,359,000,000 $1,159,000,000 for fiscal year 1997 1999 
  5.22  and later fiscal years.  Any general education levy amount in 
  5.23  excess of $1,159,000,000 shall be separately specified and 
  5.24  levied against referendum market value. 
  5.25     (c) For fiscal year 1999 and later, the general education 
  5.26  referendum market value rate shall be a rate that, when applied 
  5.27  to the adjusted referendum market value for all districts, 
  5.28  raises a dollar amount equal to the difference between the total 
  5.29  general education levy and $1,159,000,000. 
  5.30     (d) The general education tax rate rates may not be changed 
  5.31  due to changes or corrections made to a district's adjusted net 
  5.32  tax capacity or adjusted referendum market value after the tax 
  5.33  rate has rates have been established.  
  5.34     Sec. 6.  Minnesota Statutes 1996, section 124A.23, 
  5.35  subdivision 2, is amended to read: 
  5.36     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
  6.1   education revenue, excluding supplemental revenue, a district 
  6.2   may levy an amount not to exceed the sum of the general 
  6.3   education tax rate times the adjusted net tax capacity of the 
  6.4   district for the preceding year and the general education 
  6.5   referendum market value tax rate times the adjusted referendum 
  6.6   market value of the district for the preceding year.  If the 
  6.7   amount of the general education levy would exceed the general 
  6.8   education revenue, excluding supplemental revenue, the general 
  6.9   education levy shall be determined according to subdivision 3.  
  6.10     Sec. 7.  Minnesota Statutes 1996, section 162.081, 
  6.11  subdivision 4, is amended to read: 
  6.12     Subd. 4.  [FORMULA FOR DISTRIBUTION TO TOWNS; PURPOSES.] 
  6.13  Money apportioned to a county from the town road account must be 
  6.14  distributed to the treasurer of each town within the county, 
  6.15  according to a distribution formula adopted by the county 
  6.16  board.  The formula must take into account each town's levy for 
  6.17  road and bridge purposes, its population and town road mileage, 
  6.18  and other factors the county board deems advisable in the 
  6.19  interests of achieving equity among the towns.  Distribution of 
  6.20  town road funds to each town treasurer must be made by March 1, 
  6.21  annually, or within 30 days after receipt of payment from the 
  6.22  commissioner.  Distribution of funds to town treasurers in a 
  6.23  county which has not adopted a distribution formula under this 
  6.24  subdivision must be made according to a formula prescribed by 
  6.25  the commissioner by rule.  A formula adopted by a county board 
  6.26  or by the commissioner must provide that a town, in order to be 
  6.27  eligible for distribution of funds from the town road account in 
  6.28  a calendar year, must have levied before the deduction of 
  6.29  homestead and agricultural credit aid certified under section 
  6.30  273.1398, subdivision 2, for taxes payable in the previous year 
  6.31  for road and bridge purposes at least 0.04835 percent of taxable 
  6.32  market value.  For purposes of this eligibility requirement, 
  6.33  taxable market value means taxable market value for taxes 
  6.34  payable two years prior to the aid distribution year.  
  6.35     Money distributed to a town under this subdivision may be 
  6.36  expended by the town only for the construction, reconstruction, 
  7.1   and gravel maintenance of town roads within the town. 
  7.2      Sec. 8.  [179A.155] [TEACHER NEGOTIATIONS.] 
  7.3      Subdivision 1.  [SALARIES AND FRINGE BENEFITS.] The 
  7.4   commissioner of employee relations is the employer of all 
  7.5   teachers in all school districts of the state for purposes of 
  7.6   negotiating salaries and fringe benefits.  Negotiations in this 
  7.7   regard must be conducted according to subdivisions 3 and 4 and 
  7.8   other relevant sections of this chapter. 
  7.9      Subd. 2.  [OTHER TERMS AND CONDITIONS OF EMPLOYMENT.] All 
  7.10  nonsalary and nonfringe benefit provisions that are subjects of 
  7.11  bargaining must be negotiated between the school board and the 
  7.12  exclusive representative of the appropriate unit of teachers 
  7.13  that has been certified according to section 179A.12 or 179A.17. 
  7.14     Subd. 3.  [REGIONAL BARGAINING COUNCILS.] Teachers in all 
  7.15  school districts in the state must be represented for purposes 
  7.16  of negotiating salaries and fringe benefits by a teacher 
  7.17  regional bargaining council.  There shall be a teacher regional 
  7.18  bargaining council established for each of the 11 regions 
  7.19  represented by the educational service cooperatives.  Each 
  7.20  teacher regional bargaining council shall be comprised of seven 
  7.21  members.  The seven members of each council must be apportioned 
  7.22  among the statewide organizations in proportion to the aggregate 
  7.23  number of teachers within the appropriate units for which that 
  7.24  organization or its direct affiliate is the exclusive 
  7.25  representative.  However, any organization representing at least 
  7.26  12 percent of the total number of teachers within the 
  7.27  appropriate teacher units in the applicable region may select at 
  7.28  least one member of the council.  The commissioner shall adopt 
  7.29  rules establishing procedures for the biennial selection of the 
  7.30  councils.  The councils have no authority to negotiate, change, 
  7.31  or abrogate a teacher collective bargaining agreement except in 
  7.32  the area of salaries and fringe benefits. 
  7.33     Subd. 4.  [PROCEDURES.] The commissioner of employee 
  7.34  relations and the council shall begin negotiations before May 2 
  7.35  of an odd-numbered year. 
  7.36     Sec. 9.  Minnesota Statutes 1996, section 273.1398, 
  8.1   subdivision 1, is amended to read: 
  8.2      Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  8.3   terms defined in this subdivision have the meanings given them. 
  8.4      (b) "Unique taxing jurisdiction" means the geographic area 
  8.5   subject to the same set of local tax rates. 
  8.6      (c) "Previous net tax capacity" means the product of the 
  8.7   appropriate net class rates for the year previous to the year in 
  8.8   which the aid is payable, and estimated market values for the 
  8.9   assessment two years prior to that in which aid is payable.  
  8.10  "Total previous net tax capacity" means the previous net tax 
  8.11  capacities for all property within the unique taxing 
  8.12  jurisdiction.  The total previous net tax capacity shall be 
  8.13  reduced by the sum of (1) the unique taxing jurisdiction's 
  8.14  previous net tax capacity of commercial-industrial property as 
  8.15  defined in section 473F.02, subdivision 3, or 276A.02, 
  8.16  subdivision 3, multiplied by the ratio determined pursuant to 
  8.17  section 473F.08, subdivision 6, or 276A.06, subdivision 7, for 
  8.18  the municipality, as defined in section 473F.02, subdivision 8, 
  8.19  or 276A.06, subdivision 7, in which the unique taxing 
  8.20  jurisdiction is located, (2) the previous net tax capacity of 
  8.21  the captured value of tax increment financing districts as 
  8.22  defined in section 469.177, subdivision 2, and (3) the previous 
  8.23  net tax capacity of transmission lines deducted from a local 
  8.24  government's total net tax capacity under section 273.425.  
  8.25  Previous net tax capacity cannot be less than zero. 
  8.26     (d) "Equalized market values" are market values that have 
  8.27  been equalized by dividing the assessor's estimated market value 
  8.28  for the second year prior to that in which the aid is payable by 
  8.29  the assessment sales ratios determined by class in the 
  8.30  assessment sales ratio study conducted by the department of 
  8.31  revenue pursuant to section 124.2131 in the second year prior to 
  8.32  that in which the aid is payable.  The equalized market values 
  8.33  shall equal the unequalized market values divided by the 
  8.34  assessment sales ratio. 
  8.35     (e) "Equalized school levies" means the amounts levied for: 
  8.36     (1) general education under section 124A.23, subdivision 2; 
  9.1      (2) supplemental revenue under section 124A.22, subdivision 
  9.2   8a; 
  9.3      (3) transition revenue under section 124A.22, subdivision 
  9.4   13c; 
  9.5      (4) basic transportation under section 124.226, subdivision 
  9.6   1; and 
  9.7      (5) referendum revenue under section 124A.03. 
  9.8      (f) "Current local tax rate" means the quotient derived by 
  9.9   dividing the taxes levied within a unique taxing jurisdiction 
  9.10  for taxes payable in the year prior to that for which aids are 
  9.11  being calculated by the total previous net tax capacity of the 
  9.12  unique taxing jurisdiction.  
  9.13     (g) For purposes of calculating and allocating homestead 
  9.14  and agricultural credit aid for counties and for school 
  9.15  districts authorized pursuant to subdivision 2 and the disparity 
  9.16  reduction aid authorized in subdivision 3, "gross taxes levied 
  9.17  on all properties," "gross taxes," or "taxes levied" means the 
  9.18  total net tax capacity based taxes levied on all properties 
  9.19  except that levied on the captured value of tax increment 
  9.20  districts as defined in section 469.177, subdivision 2, and that 
  9.21  levied on the portion of commercial industrial properties' 
  9.22  assessed value or gross tax capacity, as defined in section 
  9.23  473F.02, subdivision 3, subject to the areawide tax as provided 
  9.24  in section 473F.08, subdivision 6, in a unique taxing 
  9.25  jurisdiction.  "Gross taxes" are before any reduction for 
  9.26  disparity reduction aid but "taxes levied" are after any 
  9.27  reduction for disparity reduction aid.  Gross taxes levied or 
  9.28  taxes levied cannot be less than zero.  
  9.29     "Taxes levied" excludes equalized school levies. 
  9.30     (h) "Household adjustment factor" means the number of 
  9.31  households for the second most recent year preceding that in 
  9.32  which the aids are payable divided by the number of households 
  9.33  for the third most recent year.  The household adjustment factor 
  9.34  cannot be less than one.  
  9.35     (i) "Growth adjustment factor" means the household 
  9.36  adjustment factor in the case of counties.  In the case of 
 10.1   cities, towns, school districts, and special taxing districts, 
 10.2   the growth adjustment factor equals one.  The growth adjustment 
 10.3   factor cannot be less than one.  
 10.4      (j) "Homestead and agricultural credit base" means the 
 10.5   previous year's certified homestead and agricultural credit aid 
 10.6   determined under subdivision 2 less any permanent aid reduction 
 10.7   in the previous year to homestead and agricultural credit aid.  
 10.8      (k) "Net tax capacity adjustment" means (1) the tax base 
 10.9   differential defined in subdivision 1a, multiplied by (2) the 
 10.10  unique taxing jurisdiction's current local tax rate.  The net 
 10.11  tax capacity adjustment cannot be less than zero. 
 10.12     (l) "Fiscal disparity adjustment" means a taxing 
 10.13  jurisdiction's fiscal disparity distribution levy under section 
 10.14  473F.08, subdivision 3, clause (a), or 276A.06, subdivision 3, 
 10.15  clause (a), for taxes payable in the year prior to that for 
 10.16  which aids are being calculated, multiplied by the ratio of the 
 10.17  tax base differential percent referenced in subdivision 1a for 
 10.18  the highest class rate for class 3 property for taxes payable in 
 10.19  the year prior to that for which aids are being calculated to 
 10.20  the highest class rate for class 3 property for taxes payable in 
 10.21  the second prior year to that for which aids are being 
 10.22  calculated.  In the case of school districts, the fiscal 
 10.23  disparity distribution levy shall exclude that part of the levy 
 10.24  attributable to equalized school levies. 
 10.25     Sec. 10.  Minnesota Statutes 1996, section 273.1398, 
 10.26  subdivision 2, is amended to read: 
 10.27     Subd. 2.  [HOMESTEAD AND AGRICULTURAL CREDIT AID.] 
 10.28  Homestead and agricultural credit aid for each unique taxing 
 10.29  jurisdiction equals the product of (1) the homestead and 
 10.30  agricultural credit aid base, and (2) the growth adjustment 
 10.31  factor, plus the net tax capacity adjustment and the fiscal 
 10.32  disparity adjustment.  Only counties and school districts shall 
 10.33  receive homestead and agricultural credit aid in 1998 and 
 10.34  thereafter.  
 10.35     Sec. 11.  Minnesota Statutes 1996, section 273.1398, 
 10.36  subdivision 6, is amended to read: 
 11.1      Subd. 6.  [PAYMENT.] The commissioner shall certify the 
 11.2   aids provided in subdivisions 2, 2b, and 3, and 5 before 
 11.3   September 1 of the year preceding the distribution year to the 
 11.4   county auditor of the affected local government.  The aids 
 11.5   provided in subdivisions 2, 2b, subdivision 3, and 5 must be 
 11.6   paid to local governments other than school districts and the 
 11.7   aids provided in subdivision 2 to counties must be paid at the 
 11.8   times provided in section 477A.015 for payment of local 
 11.9   government aid to taxing jurisdictions, except that the first 
 11.10  one-half payment of disparity reduction aid provided in 
 11.11  subdivision 3 must be paid on or before August 31.  The 
 11.12  disparity reduction credit provided in subdivision 4 must be 
 11.13  paid to taxing jurisdictions other than school districts at the 
 11.14  time provided in section 473H.10, subdivision 3.  Aids and 
 11.15  credit reimbursements to school districts must be certified to 
 11.16  the commissioner of children, families, and learning and paid 
 11.17  under section 273.1392.  Except for education districts and 
 11.18  secondary cooperatives that receive revenue according to section 
 11.19  124.575, payment shall not be made to any taxing jurisdiction 
 11.20  that has ceased to levy a property tax.  
 11.21     Sec. 12.  Minnesota Statutes 1996, section 275.065, 
 11.22  subdivision 3, is amended to read: 
 11.23     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 11.24  county auditor shall prepare and the county treasurer shall 
 11.25  deliver after November 10 and on or before November 24 each 
 11.26  year, by first class mail to each taxpayer at the address listed 
 11.27  on the county's current year's assessment roll, a notice of 
 11.28  proposed property taxes and, in the case of a town, final 
 11.29  property taxes.  
 11.30     (b) The commissioner of revenue shall prescribe the form of 
 11.31  the notice. 
 11.32     (c) The notice must inform taxpayers that it contains the 
 11.33  amount of property taxes each taxing authority other than a town 
 11.34  proposes to collect for taxes payable the following year and, 
 11.35  for a town, the amount of its final levy.  It must clearly state 
 11.36  that each taxing authority, including regional library districts 
 12.1   established under section 134.201, and including the 
 12.2   metropolitan taxing districts as defined in paragraph (i), but 
 12.3   excluding all other special taxing districts and towns, will 
 12.4   hold a public meeting to receive public testimony on the 
 12.5   proposed budget and proposed or final property tax levy, or, in 
 12.6   case of a school district, on the current budget and proposed 
 12.7   property tax levy.  It must clearly state the time and place of 
 12.8   each taxing authority's meeting and an address where comments 
 12.9   will be received by mail.  
 12.10     (d) The notice must state for each parcel: 
 12.11     (1) the market value of the property as determined under 
 12.12  section 273.11, and used for computing property taxes payable in 
 12.13  the following year and for taxes payable in the current year; 
 12.14  and, in the case of residential property, whether the property 
 12.15  is classified as homestead or nonhomestead.  The notice must 
 12.16  clearly inform taxpayers of the years to which the market values 
 12.17  apply and that the values are final values; 
 12.18     (2) by county, city or town, state-determined school 
 12.19  district levy, school district excess referenda levy, remaining 
 12.20  school district levy, regional library district, if in 
 12.21  existence, the total of the metropolitan special taxing 
 12.22  districts as defined in paragraph (i) and the sum of the 
 12.23  remaining special taxing districts, and as a total of the taxing 
 12.24  authorities, including all special taxing districts, the 
 12.25  proposed or, for a town, final net tax on the property for taxes 
 12.26  payable the following year and the actual tax for taxes payable 
 12.27  the current year.  For purposes of this subdivision, 
 12.28  "state-determined school district levy" means the levy certified 
 12.29  under section 124A.23, subdivision 2 or 3.  If a school district 
 12.30  has certified under section 124A.03, subdivision 2, that a 
 12.31  referendum will be held in the school district at the November 
 12.32  general election, the county auditor must note next to the 
 12.33  school district's proposed amount that a referendum is pending 
 12.34  and that, if approved by the voters, the tax amount may be 
 12.35  higher than shown on the notice.  For the purposes of this 
 12.36  subdivision, "school district excess referenda levy" means 
 13.1   school district taxes for operating purposes approved at 
 13.2   referendums, including those taxes based on net tax capacity as 
 13.3   well as those based on market value.  "School district excess 
 13.4   referenda levy" does not include school district taxes for 
 13.5   capital expenditures approved at referendums or school district 
 13.6   taxes to pay for the debt service on bonds approved at 
 13.7   referenda.  In the case of the city of Minneapolis, the levy for 
 13.8   the Minneapolis library board and the levy for Minneapolis park 
 13.9   and recreation shall be listed separately from the remaining 
 13.10  amount of the city's levy.  In the case of a parcel where tax 
 13.11  increment or the fiscal disparities areawide tax under chapter 
 13.12  276A or 473F applies, the proposed tax levy on the captured 
 13.13  value or the proposed tax levy on the tax capacity subject to 
 13.14  the areawide tax must each be stated separately and not included 
 13.15  in the sum of the special taxing districts; and 
 13.16     (3) the increase or decrease in the amounts in clause (2) 
 13.17  from taxes payable in the current year to proposed or, for a 
 13.18  town, final taxes payable the following year, expressed as a 
 13.19  dollar amount and as a percentage. 
 13.20     (e) The notice must clearly state that the proposed or 
 13.21  final taxes do not include the following: 
 13.22     (1) special assessments; 
 13.23     (2) levies approved by the voters after the date the 
 13.24  proposed taxes are certified, including bond referenda, school 
 13.25  district levy referenda, and levy limit increase referenda; 
 13.26     (3) amounts necessary to pay cleanup or other costs due to 
 13.27  a natural disaster occurring after the date the proposed taxes 
 13.28  are certified; 
 13.29     (4) amounts necessary to pay tort judgments against the 
 13.30  taxing authority that become final after the date the proposed 
 13.31  taxes are certified; and 
 13.32     (5) the contamination tax imposed on properties which 
 13.33  received market value reductions for contamination. 
 13.34     (f) Except as provided in subdivision 7, failure of the 
 13.35  county auditor to prepare or the county treasurer to deliver the 
 13.36  notice as required in this section does not invalidate the 
 14.1   proposed or final tax levy or the taxes payable pursuant to the 
 14.2   tax levy. 
 14.3      (g) If the notice the taxpayer receives under this section 
 14.4   lists the property as nonhomestead and the homeowner provides 
 14.5   satisfactory documentation to the county assessor that the 
 14.6   property is owned and used as the owner's homestead, the 
 14.7   assessor shall reclassify the property to homestead for taxes 
 14.8   payable in the following year. 
 14.9      (h) In the case of class 4 residential property used as a 
 14.10  residence for lease or rental periods of 30 days or more, the 
 14.11  taxpayer must either: 
 14.12     (1) mail or deliver a copy of the notice of proposed 
 14.13  property taxes to each tenant, renter, or lessee; or 
 14.14     (2) post a copy of the notice in a conspicuous place on the 
 14.15  premises of the property.  
 14.16     The notice must be mailed or posted by the taxpayer by 
 14.17  November 27 or within three days of receipt of the notice, 
 14.18  whichever is later.  A taxpayer may notify the county treasurer 
 14.19  of the address of the taxpayer, agent, caretaker, or manager of 
 14.20  the premises to which the notice must be mailed in order to 
 14.21  fulfill the requirements of this paragraph. 
 14.22     (i) For purposes of this subdivision, subdivisions 5a and 
 14.23  6, "metropolitan special taxing districts" means the following 
 14.24  taxing districts in the seven-county metropolitan area that levy 
 14.25  a property tax for any of the specified purposes listed below: 
 14.26     (1) metropolitan council under section 473.132, 473.167, 
 14.27  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 14.28     (2) metropolitan airports commission under section 473.667, 
 14.29  473.671, or 473.672; and 
 14.30     (3) metropolitan mosquito control commission under section 
 14.31  473.711. 
 14.32     For purposes of this section, any levies made by the 
 14.33  regional rail authorities in the county of Anoka, Carver, 
 14.34  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 14.35  398A shall be included with the appropriate county's levy and 
 14.36  shall be discussed at that county's public hearing. 
 15.1      (j) For taxes levied in 1996, payable in 1997 only, in the 
 15.2   case of a statutory or home rule charter city or town that 
 15.3   exercises the local levy option provided in section 473.388, 
 15.4   subdivision 7, the notice of its proposed taxes may include a 
 15.5   statement of the amount by which its proposed tax increase for 
 15.6   taxes payable in 1997 is attributable to its exercise of that 
 15.7   option, together with a statement that the levy of the 
 15.8   metropolitan council was decreased by a similar amount because 
 15.9   of the exercise of that option.  
 15.10     Sec. 13.  Minnesota Statutes 1996, section 275.07, 
 15.11  subdivision 1a, is amended to read: 
 15.12     Subd. 1a.  [APPLICATION OF LIMITATIONS.] Any limitation 
 15.13  upon the amount that may be levied by a local taxing 
 15.14  jurisdiction shall apply to the sum of the levy as certified 
 15.15  under subdivision 1 plus the certified homestead and 
 15.16  agricultural credit aid amount under section 273.1398, 
 15.17  subdivision 2, and the county program reform aid amount under 
 15.18  section 477A.0123, unless the commissioner of revenue certifies 
 15.19  to the county auditor that the limitation applies to the levy 
 15.20  under subdivision 1 only. 
 15.21     Sec. 14.  [275.071] [MARKET VALUE TAX.] 
 15.22     That portion of any county's, city's, town's, or special 
 15.23  taxing district's levy which exceeds the jurisdiction's levy for 
 15.24  taxes payable in 1997 shall be levied against the referendum 
 15.25  market value of the jurisdiction, as defined in section 124A.02, 
 15.26  subdivision 3b.  When the jurisdiction reports its levy to the 
 15.27  county auditor under section 275.07, it must separately identify 
 15.28  the portion to be levied against net tax capacity and the 
 15.29  portion to be levied against market value. 
 15.30     Sec. 15.  Minnesota Statutes 1996, section 276.04, 
 15.31  subdivision 2, is amended to read: 
 15.32     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 15.33  shall provide for the printing of the tax statements.  The 
 15.34  commissioner of revenue shall prescribe the form of the property 
 15.35  tax statement and its contents.  The statement must contain a 
 15.36  tabulated statement of the dollar amount due to each taxing 
 16.1   authority from the parcel of real property for which a 
 16.2   particular tax statement is prepared.  The dollar amounts due 
 16.3   the county, township or municipality, the total of the 
 16.4   metropolitan special taxing districts as defined in section 
 16.5   275.065, subdivision 3, paragraph (i), state-determined school 
 16.6   district levy, school district excess referenda levy, remaining 
 16.7   school district levy, and the total of other voter approved 
 16.8   referenda levies based on market value under section 275.61 must 
 16.9   be separately stated.  The amounts due all other special taxing 
 16.10  districts, if any, may be aggregated.  For purposes of this 
 16.11  subdivision, "state-determined school district levy" means the 
 16.12  levy certified under section 124A.23, subdivision 2 or 3.  For 
 16.13  the purposes of this subdivision, "school district excess 
 16.14  referenda levy" means school district taxes for operating 
 16.15  purposes approved at referenda, including those taxes based on 
 16.16  net tax capacity as well as those based on market value.  
 16.17  "School district excess referenda levy" does not include school 
 16.18  district taxes for capital expenditures approved at referendums 
 16.19  or school district taxes to pay for the debt service on bonds 
 16.20  approved at referenda.  The amount of the tax on contamination 
 16.21  value imposed under sections 270.91 to 270.98, if any, must also 
 16.22  be separately stated.  The dollar amounts, including the dollar 
 16.23  amount of any special assessments, may be rounded to the nearest 
 16.24  even whole dollar.  For purposes of this section whole 
 16.25  odd-numbered dollars may be adjusted to the next higher 
 16.26  even-numbered dollar.  The amount of market value excluded under 
 16.27  section 273.11, subdivision 16, if any, must also be listed on 
 16.28  the tax statement.  The statement shall include the following 
 16.29  sentence, printed in upper case letters in boldface print:  "THE 
 16.30  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 16.31  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 16.32  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 16.33     (b) The property tax statements for manufactured homes and 
 16.34  sectional structures taxed as personal property shall contain 
 16.35  the same information that is required on the tax statements for 
 16.36  real property.  
 17.1      (c) Real and personal property tax statements must contain 
 17.2   the following information in the order given in this paragraph.  
 17.3   The information must contain the current year tax information in 
 17.4   the right column with the corresponding information for the 
 17.5   previous year in a column on the left: 
 17.6      (1) the property's estimated market value under section 
 17.7   273.11, subdivision 1; 
 17.8      (2) the property's taxable market value after reductions 
 17.9   under section 273.11, subdivisions 1a and 16; 
 17.10     (3) the property's gross tax, calculated by multiplying the 
 17.11  property's gross tax capacity times the total local tax rate and 
 17.12  adding to the result the sum of the aids enumerated in clause 
 17.13  (4); 
 17.14     (4) a total of the following aids: 
 17.15     (i) education aids payable under chapters 124 and 124A; 
 17.16     (ii) local government aids for cities, towns, and counties 
 17.17  under chapter 477A; and 
 17.18     (iii) disparity reduction aid under section 273.1398; 
 17.19     (5) for homestead residential and agricultural properties, 
 17.20  the homestead and agricultural credit aid apportioned to the 
 17.21  property.  This amount is obtained by multiplying the total 
 17.22  local tax rate by the difference between the property's gross 
 17.23  and net tax capacities under section 273.13.  This amount must 
 17.24  be separately stated and identified as "homestead and 
 17.25  agricultural credit.;"  For purposes of comparison with the 
 17.26  previous year's amount for the statement for taxes payable in 
 17.27  1990, the statement must show the homestead credit for taxes 
 17.28  payable in 1989 under section 273.13, and the agricultural 
 17.29  credit under section 273.132 for taxes payable in 1989; 
 17.30     (6) any credits received under sections 273.119; 273.123; 
 17.31  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 17.32  473H.10, except that the amount of credit received under section 
 17.33  273.135 must be separately stated and identified as "taconite 
 17.34  tax relief"; and 
 17.35     (7) the net tax payable in the manner required in paragraph 
 17.36  (a). 
 18.1      (d) If the county uses envelopes for mailing property tax 
 18.2   statements and if the county agrees, a taxing district may 
 18.3   include a notice with the property tax statement notifying 
 18.4   taxpayers when the taxing district will begin its budget 
 18.5   deliberations for the current year, and encouraging taxpayers to 
 18.6   attend the hearings.  If the county allows notices to be 
 18.7   included in the envelope containing the property tax statement, 
 18.8   and if more than one taxing district relative to a given 
 18.9   property decides to include a notice with the tax statement, the 
 18.10  county treasurer or auditor must coordinate the process and may 
 18.11  combine the information on a single announcement.  
 18.12     The commissioner of revenue shall certify to the county 
 18.13  auditor the actual or estimated aids enumerated in clauses (3) 
 18.14  and (4) that local governments will receive in the following 
 18.15  year.  In the case of a county containing a city of the first 
 18.16  class, for taxes levied in 1991, and for all counties for taxes 
 18.17  levied in 1992 and thereafter, The commissioner must certify 
 18.18  this amount by September 1.  
 18.19     Sec. 16.  Minnesota Statutes 1996, section 473.253, 
 18.20  subdivision 1, is amended to read: 
 18.21     Subdivision 1.  [SOURCES OF FUNDS.] The council shall 
 18.22  credit to the livable communities demonstration account the 
 18.23  revenues provided in this subdivision.  This tax shall be levied 
 18.24  and collected in the manner provided by section 473.13.  The 
 18.25  levy shall not exceed the following amount for the years 
 18.26  specified:  
 18.27     (a)(1) for taxes payable in 1996, 50 percent of (i) the 
 18.28  metropolitan mosquito control commission's property tax levy for 
 18.29  taxes payable in 1995 multiplied by (ii) an index for market 
 18.30  valuation changes equal to the total market valuation of all 
 18.31  taxable property located within the metropolitan area for the 
 18.32  current taxes payable year divided by the total market valuation 
 18.33  of all taxable property located in the metropolitan area for the 
 18.34  previous taxes payable year; and 
 18.35     (2) for taxes payable in 1997 and subsequent years, the 
 18.36  product of (i) the property tax levy limit under this 
 19.1   subdivision for the previous year multiplied by (ii) an index 
 19.2   for market valuation changes equal to the total market valuation 
 19.3   of all taxable property located within the metropolitan area for 
 19.4   the current taxes payable year divided by the total market 
 19.5   valuation of all taxable property located in the metropolitan 
 19.6   area for the previous taxes payable year. 
 19.7      For the purposes of this subdivision, "total market 
 19.8   valuation" means the total market valuation of all taxable 
 19.9   property within the metropolitan area without valuation 
 19.10  adjustments for fiscal disparities under chapter 473F, tax 
 19.11  increment financing under sections 469.174 to 469.179, and high 
 19.12  voltage transmission lines under section 273.425. 
 19.13     (b) The metropolitan council, for the purposes of the fund, 
 19.14  is considered a unique taxing jurisdiction for purposes of 
 19.15  receiving aid pursuant to section 273.1398.  For aid to be 
 19.16  received in 1996, the fund's homestead and agricultural credit 
 19.17  base shall equal 50 percent of the metropolitan mosquito control 
 19.18  commission's certified homestead and agricultural credit aid for 
 19.19  1995, determined under section 273.1398, subdivision 2, less any 
 19.20  permanent aid reduction under section 477A.0132.  For aid to be 
 19.21  received under section 273.1398 in 1997 and subsequent years, 
 19.22  the fund's homestead and agricultural credit base shall be 
 19.23  determined in accordance with section 273.1398, subdivision 1. 
 19.24     Sec. 17.  Minnesota Statutes 1996, section 473.711, 
 19.25  subdivision 2, is amended to read: 
 19.26     Subd. 2.  [BUDGET; TAX LEVY.] (a) Budget.  The metropolitan 
 19.27  mosquito control commission shall prepare an annual budget.  The 
 19.28  budget may provide for expenditures in an amount not exceeding 
 19.29  the property tax levy limitation determined in this subdivision. 
 19.30     (b) Tax Levy.  The commission may levy a tax on all taxable 
 19.31  property in the district as defined in section 473.702 to 
 19.32  provide funds for the purposes of sections 473.701 to 473.716.  
 19.33  The tax shall not exceed the property tax levy limitation 
 19.34  determined in this subdivision.  A participating county may 
 19.35  agree to levy an additional tax to be used by the commission for 
 19.36  the purposes of sections 473.701 to 473.716 but the sum of the 
 20.1   county's and commission's taxes may not exceed the county's 
 20.2   proportionate share of the property tax levy limitation 
 20.3   determined under this subdivision based on the ratio of its 
 20.4   total net tax capacity to the total net tax capacity of the 
 20.5   entire district as adjusted by section 270.12, subdivision 3.  
 20.6   The auditor of each county in the district shall add the amount 
 20.7   of the levy made by the district to other taxes of the county 
 20.8   for collection by the county treasurer with other taxes.  When 
 20.9   collected, the county treasurer shall make settlement of the tax 
 20.10  with the district in the same manner as other taxes are 
 20.11  distributed to political subdivisions.  No county shall levy any 
 20.12  tax for mosquito, disease vectoring tick, and black gnat 
 20.13  (Simuliidae) control except under this section.  The levy shall 
 20.14  be in addition to other taxes authorized by law. 
 20.15     The property tax levied by the metropolitan mosquito 
 20.16  control commission shall not exceed the following amount for the 
 20.17  years specified: 
 20.18     (i) for taxes payable in 1996, the product of (1) the 
 20.19  commission's property tax levy limitation for taxes payable in 
 20.20  1995 determined under this subdivision minus 50 percent of the 
 20.21  amount actually levied for taxes payable in 1995, multiplied by 
 20.22  (2) an index for market valuation changes equal to the total 
 20.23  market valuation of all taxable property located within the 
 20.24  district for the current taxes payable year divided by the total 
 20.25  market valuation of all taxable property located within the 
 20.26  district for the previous taxes payable year; and 
 20.27     (ii) for taxes payable in 1997 and subsequent years, the 
 20.28  product of (1) the commission's property tax levy limitation for 
 20.29  the previous year determined under this subdivision multiplied 
 20.30  by (2) an index for market valuation changes equal to the total 
 20.31  market valuation of all taxable property located within the 
 20.32  district for the current taxes payable year divided by the total 
 20.33  market valuation of all taxable property located within the 
 20.34  district for the previous taxes payable year. 
 20.35     For the purpose of determining the commission's property 
 20.36  tax levy limitation under this subdivision, "total market 
 21.1   valuation" means the total market valuation of all taxable 
 21.2   property within the district without valuation adjustments for 
 21.3   fiscal disparities (chapter 473F), tax increment financing 
 21.4   (sections 469.174 to 469.179), and high voltage transmission 
 21.5   lines (section 273.425). 
 21.6      (c) Homestead and Agricultural Credit Aid.  For aids 
 21.7   payable in 1996 and subsequent years, the commission's homestead 
 21.8   and agricultural credit aid base under section 273.1398, 
 21.9   subdivision 1, is permanently reduced by 50 percent of the 
 21.10  amount certified to be received in 1995, less any permanent aid 
 21.11  reduction in 1995 under section 477A.0132. 
 21.12     (d) Emergency Tax Levy.  If the commissioner of the 
 21.13  department of health declares a health emergency due to a 
 21.14  threatened or actual outbreak of disease caused by mosquitos, 
 21.15  disease vectoring ticks, or black gnats (Simuliidae), the 
 21.16  commission may levy an additional tax not to exceed $500,000 on 
 21.17  all taxable property in the district to pay for the required 
 21.18  control measures. 
 21.19     (e) (d) Optional County Levy.  A participating county may 
 21.20  levy a tax in an amount to be determined by the county board for 
 21.21  mosquito, disease vectoring tick, and black gnat (Simuliidae) 
 21.22  nuisance control.  If the county levies the tax for nuisance 
 21.23  control, it must contract with the commission to provide for 
 21.24  nuisance control activities within the county.  The levy for 
 21.25  nuisance control shall be in addition to other levies authorized 
 21.26  by law to the county. 
 21.27     Sec. 18.  Minnesota Statutes 1996, section 477A.011, 
 21.28  subdivision 27, is amended to read: 
 21.29     Subd. 27.  [REVENUE BASE.] "Revenue base" means the amount 
 21.30  levied for taxes payable in the previous year, including the 
 21.31  levy on the fiscal disparity distribution under section 276A.06, 
 21.32  subdivision 3, paragraph (a), or 473F.08, subdivision 3, 
 21.33  paragraph (a), and before reduction for the homestead and 
 21.34  agricultural credit and county program reform aid under 
 21.35  section sections 273.1398, subdivision 2, and 477A.0123, 
 21.36  equalization aid under section 477A.013, subdivision 5, and 
 22.1   disparity reduction aid under section 273.1398, subdivision 3; 
 22.2   plus the originally certified local government aid in the 
 22.3   previous year under sections 477A.011, 477A.012, and 477A.013, 
 22.4   except for 477A.013, subdivision 5; and the taconite aids 
 22.5   received in the previous year under sections 298.28 and 298.282. 
 22.6      Sec. 19.  Minnesota Statutes 1996, section 477A.011, is 
 22.7   amended by adding a subdivision to read: 
 22.8      Subd. 32a.  [POVERTY PERCENTAGE.] "Poverty percentage" for 
 22.9   a city is 100 times the ratio of the number of households below 
 22.10  the poverty line to the total number of households in the city 
 22.11  according to the most recent federal census. 
 22.12     Sec. 20.  Minnesota Statutes 1996, section 477A.011, is 
 22.13  amended by adding a subdivision to read: 
 22.14     Subd. 33c.  [CITY DECLINE FACTOR.] "City decline factor" 
 22.15  for a city is the product of the city's (1) pre-1940 housing 
 22.16  percentage, (2) commercial industrial percentage, and (3) 
 22.17  population decline percentage. 
 22.18     Sec. 21.  Minnesota Statutes 1996, section 477A.011, 
 22.19  subdivision 34, is amended to read: 
 22.20     Subd. 34.  [CITY REVENUE NEED.] (a) For a city with a 
 22.21  population equal to or greater than 2,500, "city revenue need" 
 22.22  is the sum of (1) 3.462312 6.110762 times the pre-1940 housing 
 22.23  percentage; plus (2) 2.093826 5.744915 times the commercial 
 22.24  industrial percentage; plus (3) 6.862552 .024686 times the 
 22.25  population city decline percentage factor; plus 
 22.26  (4) .00026 9.784552 times the city population; plus (5) 152.0141 
 22.27  poverty percentage. 
 22.28     (b) For a city with a population less than 2,500, "city 
 22.29  revenue need" is the sum of (1) 1.795919 times the pre-1940 
 22.30  housing percentage; plus (2) 1.562138 times the commercial 
 22.31  industrial percentage; plus (3) 4.177568 times the population 
 22.32  decline percentage; plus (4) 1.04013 times the transformed 
 22.33  population; minus (5) 107.475. 
 22.34     (c) The city revenue need cannot be less than zero. 
 22.35     (d) For calendar year 1995 and subsequent years, the city 
 22.36  revenue need for a city with a population less than 2,500, as 
 23.1   determined in paragraphs (a) to (b) and (c), is multiplied by 
 23.2   the ratio of the annual implicit price deflator for state and 
 23.3   local government purchases, as prepared by the United States 
 23.4   Department of Commerce, for the most recently available year to 
 23.5   the 1993 implicit price deflator for state and local government 
 23.6   purchases. 
 23.7      (e) For calendar year 1999 and subsequent years, the city 
 23.8   revenue need for a city with a population of 2,500 or more, as 
 23.9   determined in paragraphs (a) and (c), is multiplied by the ratio 
 23.10  of the annual implicit price deflator for state and local 
 23.11  government purchases, as prepared by the United States 
 23.12  Department of Commerce, for the most recent available year to 
 23.13  the 1997 implicit price deflator for state and local government 
 23.14  purchases. 
 23.15     Sec. 22.  [477A.0123] [COUNTY PROGRAM REFORM AID.] 
 23.16     Subdivision 1.  [PURPOSE.] County program aid is intended 
 23.17  to provide a financing source for the provision of property tax 
 23.18  relief in incorporated areas through the funding of program 
 23.19  mandates as defined in Minnesota Statutes 1994, section 3.881. 
 23.20     Subd. 2.  [AID ALLOCATION.] Each calendar year, the 
 23.21  commissioner of revenue shall distribute aid paid under this 
 23.22  section as follows:  For aid paid in calendar year 1998, each 
 23.23  county's aid distribution under this section shall equal 20.5 
 23.24  percent of its payable 1998 amount under section 273.1398.  For 
 23.25  aid paid in calendar year 1999 and thereafter, each county shall 
 23.26  receive a distribution equal to 17 percent of the amount payable 
 23.27  for the current year under section 273.1398.  The aid paid to 
 23.28  each county government under this section shall be used to 
 23.29  reduce county levies within incorporated areas only. 
 23.30     Sec. 23.  Minnesota Statutes 1996, section 477A.013, 
 23.31  subdivision 8, is amended to read: 
 23.32     Subd. 8.  [CITY FORMULA AID.] In calendar year 1994 1998 
 23.33  and subsequent years, the formula aid for a city is equal to the 
 23.34  product of (1) the need increase percentage multiplied by the 
 23.35  difference between (1), (2) the city's revenue need multiplied 
 23.36  by its population, and (2) the city's net tax capacity 
 24.1   multiplied by the tax effort rate (3) the square root of the 
 24.2   difference between (i) 4.14 and (ii) the ratio of the city's net 
 24.3   tax capacity to 215.06.  No city may have a formula aid amount 
 24.4   less than zero.  The need increase percentage must be the same 
 24.5   for all cities.  
 24.6      Notwithstanding the prior sentence, in 1995 only, the need 
 24.7   increase percentage for a city shall be twice the need increase 
 24.8   percentage applicable to other cities if:  
 24.9      (1) the city, in 1992 or 1993, transferred an amount from 
 24.10  governmental funds to their sewer and water fund, and 
 24.11     (2) the amount transferred exceeded their net levy for 
 24.12  taxes payable in the year in which the transfer occurred. 
 24.13     The applicable need increase percentage or percentages must 
 24.14  be calculated by the department of revenue so that the total of 
 24.15  the aid under subdivision 9 equals the total amount available 
 24.16  for aid under section 477A.03.  
 24.17     Sec. 24.  Minnesota Statutes 1996, section 477A.013, 
 24.18  subdivision 9, is amended to read: 
 24.19     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
 24.20  1994 1998 and thereafter, each city shall receive an aid 
 24.21  distribution equal to the sum of (1) the city formula aid under 
 24.22  subdivision 8, and (2) its city aid base formula aid, subject to 
 24.23  the limits in paragraphs (b), (c), and (d). 
 24.24     (b) The percentage increase for a first class city in 
 24.25  calendar year 1995 and thereafter 1998 shall not exceed 1-1/2 
 24.26  times the percentage increase in the sum of the aid to all 
 24.27  cities under this section in the current calendar year 1998 
 24.28  compared to the sum of the aid to all cities in the previous 
 24.29  year 1997.  The percentage increase for a city in calendar year 
 24.30  1999 and thereafter shall not exceed 1-1/4 times the percentage 
 24.31  increase in the sum of the aid to all cities under this section 
 24.32  in the current calendar year compared to the sum of the aid to 
 24.33  all cities in the previous year. 
 24.34     (c) In addition to the limitation in paragraph (b), the 
 24.35  total aid for any city, except a first class city, shall not 
 24.36  exceed the sum of (1) ten 17 percent of the city's net levy for 
 25.1   the year prior to the aid distribution plus (2) its total aid in 
 25.2   the previous year before any increases or decreases 
 25.3   under sections 16A.711, subdivision 5, and section 477A.0132. 
 25.4      (d) Notwithstanding paragraph (c), in 1995 only, for cities 
 25.5   which in 1992 or 1993 transferred an amount from governmental 
 25.6   funds to their sewer and water fund in an amount greater than 
 25.7   their net levy for taxes payable in the year in which the 
 25.8   transfer occurred, the total aid shall not exceed the sum of (1) 
 25.9   20 percent of the city's net levy for the year prior to the aid 
 25.10  distribution plus (2) its total aid in the previous year before 
 25.11  any increases or decreases under sections 16A.711, subdivision 
 25.12  5, and 477A.0132.  No city shall receive total aid in any 
 25.13  calendar year that is less than 90 percent of its prior year aid.
 25.14     (e) Notwithstanding paragraphs (a), (b), (c), and (d), if a 
 25.15  city with a population of 2,500 or more has a reduction in its 
 25.16  net tax capacity of 20 percent or more in an assessment year 
 25.17  compared to the previous year, the following limits and minimums 
 25.18  apply: 
 25.19     (1) for aid distributed in the year immediately following 
 25.20  the assessment year of the net tax capacity loss, the aid may 
 25.21  not increase by more than an amount equal to the product of (i) 
 25.22  17 percent plus a percentage equal to the percent loss in net 
 25.23  tax capacity and (ii) the city's net levy for the year prior to 
 25.24  the aid distribution; 
 25.25     (2) for aid distributed in the five years following the 
 25.26  assessment year of the net tax capacity loss, the aid may not be 
 25.27  less than an amount equal to the following: 
 25.28     (i) for the first year, the amount of the net tax capacity 
 25.29  loss multiplied by the city tax rate from the previous year; 
 25.30     (ii) for the second year, 80 percent of the minimum amount 
 25.31  guaranteed in the first year; 
 25.32     (iii) for the third year, 60 percent of the minimum amount 
 25.33  guaranteed in the first year; 
 25.34     (iv) for the fourth year, 40 percent of the minimum amount 
 25.35  guaranteed in the first year; 
 25.36     (v) for the fifth year, 20 percent of the minimum amount 
 26.1   guaranteed in the first year. 
 26.2      A city must notify the commissioner of revenue by July 1 of 
 26.3   the year prior to the first year it would qualify for provisions 
 26.4   under this paragraph in order to be eligible for aid adjustments 
 26.5   under this paragraph.  The city must also furnish the 
 26.6   commissioner with any information needed to administer the 
 26.7   provisions of this paragraph. 
 26.8      Sec. 25.  Minnesota Statutes 1996, section 477A.03, 
 26.9   subdivision 2, is amended to read: 
 26.10     Subd. 2.  [ANNUAL APPROPRIATION.] A sum sufficient to 
 26.11  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 26.12  annually appropriated from the general fund to the commissioner 
 26.13  of revenue.  For aids payable in 1996 1998 and thereafter, the 
 26.14  total aids paid under sections 477A.013, subdivision 9, 
 26.15  477A.0121 and 477A.0122 are the amounts certified to be paid in 
 26.16  the previous year, adjusted for inflation as provided under 
 26.17  subdivision 3.  Aid payments to counties cities under section 
 26.18  477A.0121 477A.013, subdivision 9, are limited 
 26.19  to $20,265,000 $395,844,000 in 1996 1998.  Aid payments to 
 26.20  counties under section 477A.0121 are limited to $27,571,625 in 
 26.21  1997.  For aid payable in 1998 1999 and thereafter, the total 
 26.22  aids paid under section 477A.0121 477A.013, subdivision 9, are 
 26.23  the amounts certified to be paid in the previous year, adjusted 
 26.24  for inflation as provided under subdivision 3. 
 26.25     Sec. 26.  [PROPERTY TAX REBATE.] 
 26.26     Subdivision 1.  [DATA SUBMISSION.] On or before August 1, 
 26.27  1998, each county auditor shall file with the commissioner of 
 26.28  revenue the following information for each parcel of real 
 26.29  property and manufactured home taxed as personal property 
 26.30  located in the county that is subject to a general property tax 
 26.31  for taxes payable in 1998: 
 26.32     (1) the property identification number for each parcel of 
 26.33  real property or manufactured home taxed as personal property 
 26.34  within the county; 
 26.35     (2) the net tax payable on the property after subtraction 
 26.36  of the credits under Minnesota Statutes, section 273.1393; and 
 27.1      (3) the name of the taxpayer of record for the property and 
 27.2   the taxpayer's listed mailing address. 
 27.3      The data must be submitted on the type of electronic data 
 27.4   storage media designated by the commissioner and must be 
 27.5   provided in the sequence, form, and format designated by the 
 27.6   commissioner.  The data submission designation requirements of 
 27.7   the commissioner under this section are not rules subject to 
 27.8   Minnesota Statutes, chapter 14. 
 27.9      Subd. 2.  [CALCULATION AND PAYMENT OF REBATE.] On or before 
 27.10  October 15, 1998, the commissioner of revenue shall determine 
 27.11  and pay to the taxpayer of record for each parcel of real 
 27.12  property and manufactured home taxed as personal property a 
 27.13  rebate of ten percent of the net property tax payable for 1998 
 27.14  after subtraction of the credits under Minnesota Statutes, 
 27.15  section 273.1393.  If the amount calculated under this section 
 27.16  is less than $10 for a parcel or manufactured home, no rebate 
 27.17  shall be paid for that parcel or manufactured home. 
 27.18     Payment shall be made by mail to the taxpayer's listed 
 27.19  mailing address submitted by the county auditor under 
 27.20  subdivision 1. 
 27.21     Subd. 3.  [PROPERTY TAX REFUND.] Any amount paid under this 
 27.22  section shall be disregarded for purposes of determining 
 27.23  property tax refunds under Minnesota Statutes, chapter 290A. 
 27.24     Subd. 4.  [APPROPRIATIONS.] (a) The amount necessary to pay 
 27.25  the tax rebates under this section is appropriated from the 
 27.26  general fund to the commissioner of revenue for fiscal year 1999.
 27.27     (b) $....... is appropriated from the general fund to the 
 27.28  commissioner of revenue for fiscal year 1999 to pay the cost of 
 27.29  administering this section. 
 27.30     (c) $....... is appropriated from the general fund to the 
 27.31  commissioner of revenue for fiscal year 1999 to pay counties for 
 27.32  the costs of compliance with this section.  The commissioner 
 27.33  shall make the payments by August 31, 1998.  The commissioner, 
 27.34  after consultation with the Minnesota association of county 
 27.35  officers shall apportion the available appropriation among the 
 27.36  counties. 
 28.1      Sec. 27.  [REPEALER.] 
 28.2      Minnesota Statutes 1996, section 477A.011, subdivisions 35, 
 28.3   36, and 37, are repealed. 
 28.4      Sec. 28.  [EFFECTIVE DATE.] 
 28.5      Sections 1 to 6 and 12 to 15 are effective for taxes 
 28.6   assessed in 1997, payable in 1998 and thereafter.  
 28.7      Sections 7 and 9 to 11, 16 to 25, and 27 are effective for 
 28.8   aids payable in 1998 and thereafter. 
 28.9      Section 26 is effective for taxes payable in 1998 only.