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HF 1561

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to property taxation; providing that 
  1.3             household income rather than market value be used as 
  1.4             the basis for computing property taxes on homestead 
  1.5             properties; appropriating money; amending Minnesota 
  1.6             Statutes 2002, sections 126C.01, subdivision 3; 
  1.7             127A.48, by adding a subdivision; 273.13, subdivisions 
  1.8             22, 23, by adding a subdivision; 275.065, subdivision 
  1.9             3; 275.08, subdivision 1a; 276.017, subdivision 1; 
  1.10            276.02; 276.03; 276.04, subdivisions 2, 3; 276.09; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapters 273, 477A; repealing Minnesota Statutes 2002, 
  1.13            section 273.1384, subdivision 1. 
  1.15     Section 1.  Minnesota Statutes 2002, section 126C.01, 
  1.16  subdivision 3, is amended to read: 
  1.17     Subd. 3.  [REFERENDUM MARKET VALUE.] (a) Except as provided 
  1.18  in paragraph (b), "referendum market value" means the market 
  1.19  value of all taxable property, excluding property classified as 
  1.20  class 2, noncommercial 4c(1), or 4c(4) under section 273.13.  
  1.21  The portion of class 2a property consisting of the house, 
  1.22  garage, and surrounding one acre of land of an agricultural 
  1.23  homestead is included in referendum market value.  Any class of 
  1.24  property, or any portion of a class of property, that is 
  1.25  included in the definition of referendum market value and that 
  1.26  has a class rate of less than one percent under section 273.13 
  1.27  shall have a referendum market value equal to its net tax 
  1.28  capacity multiplied by 100. 
  1.29     (b) For any property or portion thereof where the net tax 
  2.1   capacity is determined under section 273.13, subdivision 35, 
  2.2   referendum market value means net tax capacity multiplied by a 
  2.3   factor of 100. 
  2.4      [EFFECTIVE DATE.] This section is effective for taxes 
  2.5   payable in 2005 and subsequent years. 
  2.6      Sec. 2.  Minnesota Statutes 2002, section 127A.48, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 2a.  [HOMESTEAD PROPERTY.] For property where the net 
  2.9   tax capacity is determined under section 273.13, subdivision 35, 
  2.10  the adjusted net tax capacity is deemed to be equal to the net 
  2.11  tax capacity. 
  2.12     [EFFECTIVE DATE.] This section is effective for taxes 
  2.13  payable in 2005 and subsequent years. 
  2.14     Sec. 3.  [273.128] [ASSESSMENT OF HOMESTEAD PROPERTY.] 
  2.15     Subdivision 1.  [HOMESTEAD LIST TO COMMISSIONER OF 
  2.16  REVENUE.] By March 1 of each assessment year, the county 
  2.17  assessor shall provide a list of all homesteads in the county to 
  2.18  the commissioner of revenue, in a form prescribed by the 
  2.19  commissioner, providing the legal description and address of the 
  2.20  homestead, the names and social security numbers of all owners 
  2.21  of the homestead, and all taxing jurisdictions whose boundaries 
  2.22  contain the homestead. 
  2.24  March 1 of each year, the assessor shall mail a form prescribed 
  2.25  by the commissioner of revenue to each homestead.  The form 
  2.26  shall solicit from the owner of the homestead the name and 
  2.27  income of each occupant of the home, excluding minors with no 
  2.28  income, using the income definition contained in section 
  2.29  290A.03, along with such identifying information as may be 
  2.30  required by the commissioner.  Upon completion, the homeowner is 
  2.31  required to submit the form to the commissioner of revenue. 
  2.33  The commissioner of revenue shall verify the information 
  2.34  provided by the homeowner, and may adjust the incomes as 
  2.35  reported by the homeowner for assessor omissions.  By July 1 of 
  2.36  the assessment year, the commissioner shall calculate the net 
  3.1   tax capacity and referendum market value of each homestead, and 
  3.2   report to the county auditor the aggregate amount of net tax 
  3.3   capacity and referendum market value of all homestead properties 
  3.4   for each taxing jurisdiction within the county. 
  3.5      [EFFECTIVE DATE.] This section is effective for taxes 
  3.6   payable in 2005 and subsequent years. 
  3.7      Sec. 4.  Minnesota Statutes 2002, section 273.13, 
  3.8   subdivision 22, is amended to read: 
  3.9      Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  3.10  23 and in paragraphs (b) and (c), real estate which is 
  3.11  residential and used for homestead purposes is class 1a.  In the 
  3.12  case of a duplex or triplex in which one of the units is used 
  3.13  for homestead purposes, the entire property is deemed to be used 
  3.14  for homestead purposes.  The market value tax capacity of class 
  3.15  1a property must be determined based upon the value of the 
  3.16  house, garage, and land as provided under subdivision 35.  
  3.17     The first $500,000 of market value of class 1a property has 
  3.18  a net class rate of one percent of its market value; and the 
  3.19  market value of class 1a property that exceeds $500,000 has a 
  3.20  class rate of 1.25 percent of its market value. 
  3.21     (b) Class 1b property includes homestead real estate or 
  3.22  homestead manufactured homes used for the purposes of a 
  3.23  homestead by 
  3.24     (1) any blind person, or the blind person and the blind 
  3.25  person's spouse; or 
  3.26     (2) any person, hereinafter referred to as "veteran," who: 
  3.27     (i) served in the active military or naval service of the 
  3.28  United States; and 
  3.29     (ii) is entitled to compensation under the laws and 
  3.30  regulations of the United States for permanent and total 
  3.31  service-connected disability due to the loss, or loss of use, by 
  3.32  reason of amputation, ankylosis, progressive muscular 
  3.33  dystrophies, or paralysis, of both lower extremities, such as to 
  3.34  preclude motion without the aid of braces, crutches, canes, or a 
  3.35  wheelchair; and 
  3.36     (iii) has acquired a special housing unit with special 
  4.1   fixtures or movable facilities made necessary by the nature of 
  4.2   the veteran's disability, or the surviving spouse of the 
  4.3   deceased veteran for as long as the surviving spouse retains the 
  4.4   special housing unit as a homestead; or 
  4.5      (3) any person who: 
  4.6      (i) is permanently and totally disabled and 
  4.7      (ii) receives 90 percent or more of total household income, 
  4.8   as defined in section 290A.03, subdivision 5, from 
  4.9      (A) aid from any state as a result of that disability; or 
  4.10     (B) supplemental security income for the disabled; or 
  4.11     (C) workers' compensation based on a finding of total and 
  4.12  permanent disability; or 
  4.13     (D) social security disability, including the amount of a 
  4.14  disability insurance benefit which is converted to an old age 
  4.15  insurance benefit and any subsequent cost of living increases; 
  4.16  or 
  4.17     (E) aid under the federal Railroad Retirement Act of 1937, 
  4.18  United States Code Annotated, title 45, section 228b(a)5; or 
  4.19     (F) a pension from any local government retirement fund 
  4.20  located in the state of Minnesota as a result of that 
  4.21  disability; or 
  4.22     (G) pension, annuity, or other income paid as a result of 
  4.23  that disability from a private pension or disability plan, 
  4.24  including employer, employee, union, and insurance plans and 
  4.25     (iii) has household income as defined in section 290A.03, 
  4.26  subdivision 5, of $50,000 or less; or 
  4.27     (4) any person who is permanently and totally disabled and 
  4.28  whose household income as defined in section 290A.03, 
  4.29  subdivision 5, is 275 percent or less of the federal poverty 
  4.30  level. 
  4.31     Property is classified and assessed under clause (4) only 
  4.32  if the government agency or income-providing source certifies, 
  4.33  upon the request of the homestead occupant, that the homestead 
  4.34  occupant satisfies the disability requirements of this paragraph.
  4.35     Property is classified and assessed pursuant to clause (1) 
  4.36  only if the commissioner of economic security certifies to the 
  5.1   assessor that the homestead occupant satisfies the requirements 
  5.2   of this paragraph.  
  5.3      Permanently and totally disabled for the purpose of this 
  5.4   subdivision means a condition which is permanent in nature and 
  5.5   totally incapacitates the person from working at an occupation 
  5.6   which brings the person an income.  The first $32,000 market 
  5.7   value of class 1b property has a net class rate of .45 percent 
  5.8   of its market value.  The remaining market value of class 1b 
  5.9   property has a class rate using the rates for class 1a or class 
  5.10  2a property, whichever is appropriate, of similar market 
  5.11  value tax capacity of class 1b property shall be determined as 
  5.12  provided under subdivision 35.  
  5.13     (c) Class 1c property is commercial use real property that 
  5.14  abuts a lakeshore line and is devoted to temporary and seasonal 
  5.15  residential occupancy for recreational purposes but not devoted 
  5.16  to commercial purposes for more than 250 days in the year 
  5.17  preceding the year of assessment, and that includes a portion 
  5.18  used as a homestead by the owner, which includes a dwelling 
  5.19  occupied as a homestead by a shareholder of a corporation that 
  5.20  owns the resort or a partner in a partnership that owns the 
  5.21  resort, even if the title to the homestead is held by the 
  5.22  corporation or partnership.  For purposes of this clause, 
  5.23  property is devoted to a commercial purpose on a specific day if 
  5.24  any portion of the property, excluding the portion used 
  5.25  exclusively as a homestead, is used for residential occupancy 
  5.26  and a fee is charged for residential occupancy.  The first 
  5.27  $500,000 of market value of Class 1c property has a class rate 
  5.28  of one percent, and the remaining market value of class 1c 
  5.29  property has a class rate of one percent, with the following 
  5.30  limitation:  the area of the property must not exceed is limited 
  5.31  to 100 feet of lakeshore footage for each cabin or campsite 
  5.32  located on the property up to a total of 800 feet and 500 feet 
  5.33  in depth, measured away from the lakeshore.  If any portion of 
  5.34  the class 1c resort property is classified as class 4c under 
  5.35  subdivision 25, the entire property must meet the requirements 
  5.36  of subdivision 25, paragraph (d), clause (1), to qualify for 
  6.1   class 1c treatment under this paragraph.  The tax capacity of 
  6.2   class 1c property shall be determined under subdivision 35. 
  6.3      (d) Class 1d property includes structures that meet all of 
  6.4   the following criteria: 
  6.5      (1) the structure is located on property that is classified 
  6.6   as agricultural property under section 273.13, subdivision 23; 
  6.7      (2) the structure is occupied exclusively by seasonal farm 
  6.8   workers during the time when they work on that farm, and the 
  6.9   occupants are not charged rent for the privilege of occupying 
  6.10  the property, provided that use of the structure for storage of 
  6.11  farm equipment and produce does not disqualify the property from 
  6.12  classification under this paragraph; 
  6.13     (3) the structure meets all applicable health and safety 
  6.14  requirements for the appropriate season; and 
  6.15     (4) the structure is not salable as residential property 
  6.16  because it does not comply with local ordinances relating to 
  6.17  location in relation to streets or roads. 
  6.18     The first $500,000 of market value of class 1d property has 
  6.19  the same class rates as class 1a property under paragraph (a) a 
  6.20  net class rate of one percent, and the market value of class 1d 
  6.21  property tax that exceeds $500,000 has a class rate of 1.25 
  6.22  percent. 
  6.23     [EFFECTIVE DATE.] This section is effective for taxes 
  6.24  payable in 2005 and subsequent years. 
  6.25     Sec. 5.  Minnesota Statutes 2002, section 273.13, 
  6.26  subdivision 23, is amended to read: 
  6.27     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  6.28  land including any improvements that is homesteaded.  The market 
  6.29  value tax capacity of the house and garage and immediately 
  6.30  surrounding one acre of land has the same class rates is 
  6.31  determined in the same way as class 1a property under 
  6.32  subdivision 22 35.  The value of the remaining land including 
  6.33  improvements up to and including $600,000 market value has a net 
  6.34  class rate of 0.55 percent of market value.  The remaining 
  6.35  property over $600,000 market value has a class rate of one 
  6.36  percent of market value. 
  7.1      (b) Class 2b property is (1) real estate, rural in 
  7.2   character and used exclusively for growing trees for timber, 
  7.3   lumber, and wood and wood products; (2) real estate that is not 
  7.4   improved with a structure and is used exclusively for growing 
  7.5   trees for timber, lumber, and wood and wood products, if the 
  7.6   owner has participated or is participating in a cost-sharing 
  7.7   program for afforestation, reforestation, or timber stand 
  7.8   improvement on that particular property, administered or 
  7.9   coordinated by the commissioner of natural resources; (3) real 
  7.10  estate that is nonhomestead agricultural land; or (4) a landing 
  7.11  area or public access area of a privately owned public use 
  7.12  airport.  Class 2b property has a net class rate of one percent 
  7.13  of market value. 
  7.14     (c) Agricultural land as used in this section means 
  7.15  contiguous acreage of ten acres or more, used during the 
  7.16  preceding year for agricultural purposes.  "Agricultural 
  7.17  purposes" as used in this section means the raising or 
  7.18  cultivation of agricultural products or enrollment in the 
  7.19  Reinvest in Minnesota program under sections 103F.501 to 
  7.20  103F.535 or the federal Conservation Reserve Program as 
  7.21  contained in Public Law Number 99-198.  Contiguous acreage on 
  7.22  the same parcel, or contiguous acreage on an immediately 
  7.23  adjacent parcel under the same ownership, may also qualify as 
  7.24  agricultural land, but only if it is pasture, timber, waste, 
  7.25  unusable wild land, or land included in state or federal farm 
  7.26  programs.  Agricultural classification for property shall be 
  7.27  determined excluding the house, garage, and immediately 
  7.28  surrounding one acre of land, and shall not be based upon the 
  7.29  market value of any residential structures on the parcel or 
  7.30  contiguous parcels under the same ownership. 
  7.31     (d) Real estate, excluding the house, garage, and 
  7.32  immediately surrounding one acre of land, of less than ten acres 
  7.33  which is exclusively and intensively used for raising or 
  7.34  cultivating agricultural products, shall be considered as 
  7.35  agricultural land.  
  7.36     Land shall be classified as agricultural even if all or a 
  8.1   portion of the agricultural use of that property is the leasing 
  8.2   to, or use by another person for agricultural purposes. 
  8.3      Classification under this subdivision is not determinative 
  8.4   for qualifying under section 273.111. 
  8.5      The property classification under this section supersedes, 
  8.6   for property tax purposes only, any locally administered 
  8.7   agricultural policies or land use restrictions that define 
  8.8   minimum or maximum farm acreage. 
  8.9      (e) The term "agricultural products" as used in this 
  8.10  subdivision includes production for sale of:  
  8.11     (1) livestock, dairy animals, dairy products, poultry and 
  8.12  poultry products, fur-bearing animals, horticultural and nursery 
  8.13  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  8.14  vegetables, forage, grains, bees, and apiary products by the 
  8.15  owner; 
  8.16     (2) fish bred for sale and consumption if the fish breeding 
  8.17  occurs on land zoned for agricultural use; 
  8.18     (3) the commercial boarding of horses if the boarding is 
  8.19  done in conjunction with raising or cultivating agricultural 
  8.20  products as defined in clause (1); 
  8.21     (4) property which is owned and operated by nonprofit 
  8.22  organizations used for equestrian activities, excluding racing; 
  8.23     (5) game birds and waterfowl bred and raised for use on a 
  8.24  shooting preserve licensed under section 97A.115; 
  8.25     (6) insects primarily bred to be used as food for animals; 
  8.26     (7) trees, grown for sale as a crop, and not sold for 
  8.27  timber, lumber, wood, or wood products; and 
  8.28     (8) maple syrup taken from trees grown by a person licensed 
  8.29  by the Minnesota department of agriculture under chapter 28A as 
  8.30  a food processor. 
  8.31     (f) If a parcel used for agricultural purposes is also used 
  8.32  for commercial or industrial purposes, including but not limited 
  8.33  to:  
  8.34     (1) wholesale and retail sales; 
  8.35     (2) processing of raw agricultural products or other goods; 
  8.36     (3) warehousing or storage of processed goods; and 
  9.1      (4) office facilities for the support of the activities 
  9.2   enumerated in clauses (1), (2), and (3), 
  9.3   the assessor shall classify the part of the parcel used for 
  9.4   agricultural purposes as class 1b, 2a, or 2b, whichever is 
  9.5   appropriate, and the remainder in the class appropriate to its 
  9.6   use.  The grading, sorting, and packaging of raw agricultural 
  9.7   products for first sale is considered an agricultural purpose.  
  9.8   A greenhouse or other building where horticultural or nursery 
  9.9   products are grown that is also used for the conduct of retail 
  9.10  sales must be classified as agricultural if it is primarily used 
  9.11  for the growing of horticultural or nursery products from seed, 
  9.12  cuttings, or roots and occasionally as a showroom for the retail 
  9.13  sale of those products.  Use of a greenhouse or building only 
  9.14  for the display of already grown horticultural or nursery 
  9.15  products does not qualify as an agricultural purpose.  
  9.16     The assessor shall determine and list separately on the 
  9.17  records the market value of the homestead dwelling and the one 
  9.18  acre of land on which that dwelling is located.  If any farm 
  9.19  buildings or structures are located on this homesteaded acre of 
  9.20  land, their market value shall not be included in this separate 
  9.21  determination.  
  9.22     (g) To qualify for classification under paragraph (b), 
  9.23  clause (4), a privately owned public use airport must be 
  9.24  licensed as a public airport under section 360.018.  For 
  9.25  purposes of paragraph (b), clause (4), "landing area" means that 
  9.26  part of a privately owned public use airport properly cleared, 
  9.27  regularly maintained, and made available to the public for use 
  9.28  by aircraft and includes runways, taxiways, aprons, and sites 
  9.29  upon which are situated landing or navigational aids.  A landing 
  9.30  area also includes land underlying both the primary surface and 
  9.31  the approach surfaces that comply with all of the following:  
  9.32     (i) the land is properly cleared and regularly maintained 
  9.33  for the primary purposes of the landing, taking off, and taxiing 
  9.34  of aircraft; but that portion of the land that contains 
  9.35  facilities for servicing, repair, or maintenance of aircraft is 
  9.36  not included as a landing area; 
 10.1      (ii) the land is part of the airport property; and 
 10.2      (iii) the land is not used for commercial or residential 
 10.3   purposes. 
 10.4   The land contained in a landing area under paragraph (b), clause 
 10.5   (4), must be described and certified by the commissioner of 
 10.6   transportation.  The certification is effective until it is 
 10.7   modified, or until the airport or landing area no longer meets 
 10.8   the requirements of paragraph (b), clause (4).  For purposes of 
 10.9   paragraph (b), clause (4), "public access area" means property 
 10.10  used as an aircraft parking ramp, apron, or storage hangar, or 
 10.11  an arrival and departure building in connection with the airport.
 10.12     [EFFECTIVE DATE.] This section is effective for taxes 
 10.13  payable in 2005 and subsequent years. 
 10.14     Sec. 6.  Minnesota Statutes 2002, section 273.13, is 
 10.15  amended by adding a subdivision to read: 
 10.16     Subd. 35.  [TAX CAPACITY; HOMESTEAD PROPERTY.] The tax 
 10.17  capacity of class 1a, 1b, or 1c property, and that portion of 
 10.18  class 2a property consisting of the house, garage, and 
 10.19  surrounding one acre of land, is equal to 1.5 percent of the 
 10.20  household income of all persons residing in the homestead, as 
 10.21  defined under section 290A.03, for the calendar year immediately 
 10.22  preceding the year in which the tax is levied. 
 10.23     [EFFECTIVE DATE.] This section is effective for taxes 
 10.24  payable in 2005 and subsequent years. 
 10.25     Sec. 7.  Minnesota Statutes 2002, section 275.065, 
 10.26  subdivision 3, is amended to read: 
 10.27     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) In the 
 10.28  case of property that is not classified as homestead, the county 
 10.29  auditor shall prepare and the county treasurer shall deliver 
 10.30  after November 10 and on or before November 24 each year, by 
 10.31  first class mail to each taxpayer at the address listed on the 
 10.32  county's current year's assessment roll, a notice of proposed 
 10.33  property taxes.  
 10.34     (b) The commissioner of revenue shall prescribe the form of 
 10.35  the notice, and shall prepare and deliver the notice according 
 10.36  to the procedures specified in paragraph (a) in the case of 
 11.1   property which is partially or wholly classified as homestead. 
 11.2      (c) The notice must inform taxpayers that it contains the 
 11.3   amount of property taxes each taxing authority proposes to 
 11.4   collect for taxes payable the following year.  In the case of a 
 11.5   town, or in the case of the state general tax, the final tax 
 11.6   amount will be its proposed tax.  In the case of taxing 
 11.7   authorities required to hold a public meeting under subdivision 
 11.8   6, the notice must clearly state that each taxing authority, 
 11.9   including regional library districts established under section 
 11.10  134.201, and including the metropolitan taxing districts as 
 11.11  defined in paragraph (i), but excluding all other special taxing 
 11.12  districts and towns, will hold a public meeting to receive 
 11.13  public testimony on the proposed budget and proposed or final 
 11.14  property tax levy, or, in case of a school district, on the 
 11.15  current budget and proposed property tax levy.  It must clearly 
 11.16  state the time and place of each taxing authority's meeting, a 
 11.17  telephone number for the taxing authority that taxpayers may 
 11.18  call if they have questions related to the notice, and an 
 11.19  address where comments will be received by mail.  
 11.20     (d) The notice must state for each parcel: 
 11.21     (1) the market value of the property as determined under 
 11.22  section 273.11, and used for computing property taxes payable in 
 11.23  the following year and for taxes payable in the current year as 
 11.24  each appears in the records of the county assessor on November 1 
 11.25  of the current year; and, in the case of residential property, 
 11.26  whether the property is classified as homestead or 
 11.27  nonhomestead.  The notice must clearly inform taxpayers of the 
 11.28  years to which the market values apply and that the values are 
 11.29  final values; 
 11.30     (2) the items listed below, shown separately by county, 
 11.31  city or town, and state general tax, net of the residential and 
 11.32  agricultural homestead credit under section 273.1384, voter 
 11.33  approved school levy, other local school levy, and the sum of 
 11.34  the special taxing districts, and as a total of all taxing 
 11.35  authorities:  
 11.36     (i) the actual tax for taxes payable in the current year; 
 12.1      (ii) the tax change due to spending factors, defined as the 
 12.2   proposed tax minus the constant spending tax amount; 
 12.3      (iii) the tax change due to other factors, defined as the 
 12.4   constant spending tax amount minus the actual current year tax; 
 12.5   and 
 12.6      (iv) the proposed tax amount. 
 12.7      If the county levy under clause (2) includes an amount for 
 12.8   a lake improvement district as defined under sections 103B.501 
 12.9   to 103B.581, the amount attributable for that purpose must be 
 12.10  separately stated from the remaining county levy amount.  
 12.11     In the case of a town or the state general tax, the final 
 12.12  tax shall also be its proposed tax unless the town changes its 
 12.13  levy at a special town meeting under section 365.52.  If a 
 12.14  school district has certified under section 126C.17, subdivision 
 12.15  9, that a referendum will be held in the school district at the 
 12.16  November general election, the county auditor must note next to 
 12.17  the school district's proposed amount that a referendum is 
 12.18  pending and that, if approved by the voters, the tax amount may 
 12.19  be higher than shown on the notice.  In the case of the city of 
 12.20  Minneapolis, the levy for the Minneapolis library board and the 
 12.21  levy for Minneapolis park and recreation shall be listed 
 12.22  separately from the remaining amount of the city's levy.  In the 
 12.23  case of the city of St. Paul, the levy for the St. Paul library 
 12.24  agency must be listed separately from the remaining amount of 
 12.25  the city's levy.  In the case of a parcel where tax increment or 
 12.26  the fiscal disparities areawide tax under chapter 276A or 473F 
 12.27  applies, the proposed tax levy on the captured value or the 
 12.28  proposed tax levy on the tax capacity subject to the areawide 
 12.29  tax must each be stated separately and not included in the sum 
 12.30  of the special taxing districts; and 
 12.31     (3) the increase or decrease between the total taxes 
 12.32  payable in the current year and the total proposed taxes, 
 12.33  expressed as a percentage. 
 12.34     For purposes of this section, the amount of the tax on 
 12.35  homesteads qualifying under the senior citizens' property tax 
 12.36  deferral program under chapter 290B is the total amount of 
 13.1   property tax before subtraction of the deferred property tax 
 13.2   amount. 
 13.3      (e) The notice must clearly state that the proposed or 
 13.4   final taxes do not include the following: 
 13.5      (1) special assessments; 
 13.6      (2) levies approved by the voters after the date the 
 13.7   proposed taxes are certified, including bond referenda, school 
 13.8   district levy referenda, and levy limit increase referenda; 
 13.9      (3) amounts necessary to pay cleanup or other costs due to 
 13.10  a natural disaster occurring after the date the proposed taxes 
 13.11  are certified; 
 13.12     (4) amounts necessary to pay tort judgments against the 
 13.13  taxing authority that become final after the date the proposed 
 13.14  taxes are certified; and 
 13.15     (5) the contamination tax imposed on properties which 
 13.16  received market value reductions for contamination. 
 13.17     (f) Except as provided in subdivision 7, failure of the 
 13.18  county auditor to prepare or the county treasurer to deliver the 
 13.19  notice as required in this section does not invalidate the 
 13.20  proposed or final tax levy or the taxes payable pursuant to the 
 13.21  tax levy. 
 13.22     (g) If the notice the taxpayer receives under this section 
 13.23  lists the property as nonhomestead, and satisfactory 
 13.24  documentation is provided to the county assessor by the 
 13.25  applicable deadline, and the property qualifies for the 
 13.26  homestead classification in that assessment year, the assessor 
 13.27  shall reclassify the property to homestead for taxes payable in 
 13.28  the following year. 
 13.29     (h) In the case of class 4 residential property used as a 
 13.30  residence for lease or rental periods of 30 days or more, the 
 13.31  taxpayer must either: 
 13.32     (1) mail or deliver a copy of the notice of proposed 
 13.33  property taxes to each tenant, renter, or lessee; or 
 13.34     (2) post a copy of the notice in a conspicuous place on the 
 13.35  premises of the property.  
 13.36     The notice must be mailed or posted by the taxpayer by 
 14.1   November 27 or within three days of receipt of the notice, 
 14.2   whichever is later.  A taxpayer may notify the county treasurer 
 14.3   of the address of the taxpayer, agent, caretaker, or manager of 
 14.4   the premises to which the notice must be mailed in order to 
 14.5   fulfill the requirements of this paragraph. 
 14.6      (i) For purposes of this subdivision, subdivisions 5a and 
 14.7   6, "metropolitan special taxing districts" means the following 
 14.8   taxing districts in the seven-county metropolitan area that levy 
 14.9   a property tax for any of the specified purposes listed below: 
 14.10     (1) metropolitan council under section 473.132, 473.167, 
 14.11  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 14.12     (2) metropolitan airports commission under section 473.667, 
 14.13  473.671, or 473.672; and 
 14.14     (3) metropolitan mosquito control commission under section 
 14.15  473.711. 
 14.16     For purposes of this section, any levies made by the 
 14.17  regional rail authorities in the county of Anoka, Carver, 
 14.18  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 14.19  398A shall be included with the appropriate county's levy and 
 14.20  shall be discussed at that county's public hearing. 
 14.21     (j) If a statutory or home rule charter city or a town has 
 14.22  exercised the local levy option provided by section 473.388, 
 14.23  subdivision 7, it may include in the notice of its proposed 
 14.24  taxes the amount of its proposed taxes attributable to its 
 14.25  exercise of the option.  In the first year of the city or town's 
 14.26  exercise of this option, the statement shall include an estimate 
 14.27  of the reduction of the metropolitan council's tax on the parcel 
 14.28  due to exercise of that option.  The metropolitan council's levy 
 14.29  shall be adjusted accordingly. 
 14.30     [EFFECTIVE DATE.] This section is effective for taxes 
 14.31  payable in 2005 and subsequent years. 
 14.32     Sec. 8.  Minnesota Statutes 2002, section 275.08, 
 14.33  subdivision 1a, is amended to read: 
 14.34     Subd. 1a.  [COMPUTATION OF TAX CAPACITY.] For taxes payable 
 14.35  in 1989, the county auditor shall compute the gross tax capacity 
 14.36  for each parcel according to the class rates specified in 
 15.1   section 273.13.  The gross tax capacity will be the appropriate 
 15.2   class rate multiplied by the parcel's market value.  For taxes 
 15.3   payable in 1990 and subsequent years all property which does not 
 15.4   qualify for homestead classification, the county auditor shall 
 15.5   compute the net tax capacity for each parcel according to by 
 15.6   multiplying the appropriate class rates specified in section 
 15.7   273.13.  The net tax capacity will be the appropriate class rate 
 15.8   multiplied by the parcel's market value.  For all properties 
 15.9   wholly or partially qualifying for homestead classification, the 
 15.10  commissioner of revenue shall compute the tax capacity for each 
 15.11  parcel.  The county assessor shall provide the commissioner with 
 15.12  sufficient information to compute the net tax capacity for all 
 15.13  portions of the property where the tax capacity is not 
 15.14  determined under section 273.13, subdivision 35. 
 15.15     [EFFECTIVE DATE.] This section is effective for taxes 
 15.16  payable in 2005 and subsequent years. 
 15.17     Sec. 9.  Minnesota Statutes 2002, section 276.017, 
 15.18  subdivision 1, is amended to read: 
 15.19     Subdivision 1.  [DATE OF MAILING OR RECEIPT.] When a 
 15.20  payment described in this section is required to be made to a 
 15.21  county on or before the prescribed date, the payment is timely 
 15.22  if received by the county on or before a prescribed date, or if 
 15.23  mailed on or before that date.  This section applies to the 
 15.24  payment of current or delinquent real or personal property 
 15.25  taxes, any other amount shown as payable on a property tax 
 15.26  statement, and all related penalties, interest, or costs. 
 15.27     [EFFECTIVE DATE.] This section is effective for taxes 
 15.28  payable in 2005 and subsequent years. 
 15.29     Sec. 10.  Minnesota Statutes 2002, section 276.02, is 
 15.30  amended to read: 
 15.32     Subdivision 1.  [COUNTY TREASURER.] Except as provided in 
 15.33  subdivision 2, the county treasurer shall collect all taxes 
 15.34  extended on the tax lists of the county and the fines, 
 15.35  forfeitures, or penalties received by any person or officer for 
 15.36  the use of the county.  The treasurer shall collect the taxes 
 16.1   according to law and credit them to the proper funds.  This 
 16.2   section does not apply to fines and penalties accruing to 
 16.3   municipal corporations for the violation of their ordinances 
 16.4   that are recoverable before a city justice.  
 16.5      Subd. 2.  [COMMISSIONER OF REVENUE.] The commissioner of 
 16.6   revenue shall collect taxes on all properties wholly or 
 16.7   partially classified as homestead, including any fines, 
 16.8   forfeitures, and penalties resulting from taxes levied on such 
 16.9   properties. 
 16.10     Subd. 3.  [PAYMENTS.] Taxes, fines, interest, and penalties 
 16.11  must be paid with United States currency or by check or money 
 16.12  order drawn on a bank or other financial institution in the 
 16.13  United States.  The county board may by resolution authorize the 
 16.14  treasurer to impose a charge for any dishonored checks. 
 16.15     The county board may, by resolution, authorize the 
 16.16  treasurer and/or other designees to accept payments of real 
 16.17  property taxes by credit card provided that a fee is charged for 
 16.18  its use.  The fee charged must be commensurate with the costs 
 16.19  assessed by the card issuer.  If a credit card transaction under 
 16.20  this section is subsequently voided or otherwise reversed, the 
 16.21  lien of real property taxes under section 272.31 is revived and 
 16.22  attaches in the manner and time provided in that section as 
 16.23  though the credit card transaction had never occurred, and the 
 16.24  voided or reversed credit card transaction shall not impair the 
 16.25  right of a lienholder under section 272.31 to enforce the lien 
 16.26  in its favor. 
 16.27     [EFFECTIVE DATE.] This section is effective for taxes 
 16.28  payable in 2005 and subsequent years. 
 16.29     Sec. 11.  Minnesota Statutes 2002, section 276.03, is 
 16.30  amended to read: 
 16.32  ASSESSMENTS.] 
 16.33     The commissioner of revenue, or a county treasurer 
 16.34  authorized by law to collect local assessments made or levied by 
 16.35  a city, shall collect all assessments for local improvements 
 16.36  made or levied and certified to the treasurer by the city 
 17.1   against any specific tract or parcel of land.  The assessment 
 17.2   must be collected at the same time as taxes levied against that 
 17.3   tract or parcel of land.  
 17.4      [EFFECTIVE DATE.] This section is effective for taxes 
 17.5   payable in 2005 and subsequent years. 
 17.6      Sec. 12.  Minnesota Statutes 2002, section 276.04, 
 17.7   subdivision 2, is amended to read: 
 17.8      Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) In the case of 
 17.9   all properties which do not qualify for homestead 
 17.10  classification, the treasurer shall provide for the printing of 
 17.11  the tax statements.  In the case of all properties wholly or 
 17.12  partially qualifying for homestead classification, the 
 17.13  commissioner of revenue shall provide for the printing of the 
 17.14  tax statements.  The commissioner of revenue shall prescribe the 
 17.15  form of the property tax statement and its contents.  The 
 17.16  statement must contain a tabulated statement of the dollar 
 17.17  amount due to each taxing authority and the amount of the state 
 17.18  tax from the parcel of real property for which a particular tax 
 17.19  statement is prepared.  The dollar amounts attributable to the 
 17.20  county, the state tax, the voter approved school tax, the other 
 17.21  local school tax, the township or municipality, and the total of 
 17.22  the metropolitan special taxing districts as defined in section 
 17.23  275.065, subdivision 3, paragraph (i), must be separately 
 17.24  stated.  The amounts due all other special taxing districts, if 
 17.25  any, may be aggregated.  If the county levy under this paragraph 
 17.26  includes an amount for a lake improvement district as defined 
 17.27  under sections 103B.501 to 103B.581, the amount attributable for 
 17.28  that purpose must be separately stated from the remaining county 
 17.29  levy amount.  The amount of the tax on homesteads qualifying 
 17.30  under the senior citizens' property tax deferral program under 
 17.31  chapter 290B is the total amount of property tax before 
 17.32  subtraction of the deferred property tax amount.  The amount of 
 17.33  the tax on contamination value imposed under sections 270.91 to 
 17.34  270.98, if any, must also be separately stated.  The dollar 
 17.35  amounts, including the dollar amount of any special assessments, 
 17.36  may be rounded to the nearest even whole dollar.  For purposes 
 18.1   of this section whole odd-numbered dollars may be adjusted to 
 18.2   the next higher even-numbered dollar.  The amount of market 
 18.3   value excluded under section 273.11, subdivision 16, if any, 
 18.4   must also be listed on the tax statement. 
 18.5      (b) The property tax statements for manufactured homes and 
 18.6   sectional structures taxed as personal property shall contain 
 18.7   the same information that is required on the tax statements for 
 18.8   real property.  
 18.9      (c) Except as provided in paragraph (d), real and personal 
 18.10  property tax statements must contain the following information 
 18.11  in the order given in this paragraph.  The information must 
 18.12  contain the current year tax information in the right column 
 18.13  with the corresponding information for the previous year in a 
 18.14  column on the left: 
 18.15     (1) the property's estimated market value under section 
 18.16  273.11, subdivision 1; 
 18.17     (2) the property's taxable market value after reductions 
 18.18  under section 273.11, subdivisions 1a and 16; 
 18.19     (3) the property's gross tax, calculated by adding the 
 18.20  property's total property tax to the sum of the aids enumerated 
 18.21  in clause (4); 
 18.22     (4) a total of the following aids: 
 18.23     (i) education aids payable under chapters 122A, 123A, 123B, 
 18.24  124D, 125A, 126C, and 127A; 
 18.25     (ii) local government aids for cities, towns, and counties 
 18.26  under chapter 477A; 
 18.27     (iii) disparity reduction aid under section 273.1398; and 
 18.28     (iv) homestead and agricultural credit aid under section 
 18.29  273.1398; 
 18.30     (5) for homestead residential and agricultural properties, 
 18.31  the credits under section 273.1384; 
 18.32     (6) any credits received under sections 273.119; 273.123; 
 18.33  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 18.34  473H.10, except that the amount of credit received under section 
 18.35  273.135 must be separately stated and identified as "taconite 
 18.36  tax relief"; and 
 19.1      (7) the net tax payable in the manner required in paragraph 
 19.2   (a). 
 19.3      (d) Real and personal property tax statements for 
 19.4   properties which are wholly or partially classified as homestead 
 19.5   must contain the property's household income, along with the 
 19.6   information required under paragraph (c), except that clauses (1)
 19.7   and (2) shall only apply to the portion, if any, of the property 
 19.8   where the net tax capacity is not determined under section 
 19.9   273.13, subdivision 35.  The information must contain the 
 19.10  current year tax information in the right column with the 
 19.11  corresponding information for the previous year in a column on 
 19.12  the left. 
 19.13     (e) If the county uses envelopes for mailing property tax 
 19.14  statements and if the county agrees, a taxing district may 
 19.15  include a notice with the property tax statement notifying 
 19.16  taxpayers when the taxing district will begin its budget 
 19.17  deliberations for the current year, and encouraging taxpayers to 
 19.18  attend the hearings.  If the county allows notices to be 
 19.19  included in the envelope containing the property tax statement, 
 19.20  and if more than one taxing district relative to a given 
 19.21  property decides to include a notice with the tax statement, the 
 19.22  county treasurer or auditor must coordinate the process and may 
 19.23  combine the information on a single announcement.  
 19.24     The commissioner of revenue shall certify to the county 
 19.25  auditor the actual or estimated aids enumerated in clause (4) 
 19.26  that local governments will receive in the following year.  The 
 19.27  commissioner must certify this amount by January 1 of each year. 
 19.28     [EFFECTIVE DATE.] This section is effective for taxes 
 19.29  payable in 2005 and subsequent years. 
 19.30     Sec. 13.  Minnesota Statutes 2002, section 276.04, 
 19.31  subdivision 3, is amended to read: 
 19.32     Subd. 3.  [MAILING OF TAX STATEMENTS.] The commissioner of 
 19.33  revenue, in the case of property wholly or partially classified 
 19.34  as homestead, or the county treasurer, in the case of all other 
 19.35  properties, shall mail to taxpayers statements of their personal 
 19.36  property taxes due not later than April 15 for property taxes 
 20.1   payable in 1990 and March 31 thereafter, except in the case of 
 20.2   manufactured homes and sectional structures taxed as personal 
 20.3   property.  Statements of the real property taxes due shall be 
 20.4   mailed not later than April 15 for property taxes payable in 
 20.5   1990 and March 31 thereafter.  The validity of the tax shall not 
 20.6   be affected by failure of the treasurer or commissioner to mail 
 20.7   the statement.  The taxpayer is defined as the owner who is 
 20.8   responsible for the payment of the tax.  
 20.9      [EFFECTIVE DATE.] This section is effective for taxes 
 20.10  payable in 2005 and subsequent years. 
 20.11     Sec. 14.  Minnesota Statutes 2002, section 276.09, is 
 20.12  amended to read: 
 20.14     On the later of May 20 of each year or 26 calendar days 
 20.15  after the postmark date on the envelopes containing real or 
 20.16  personal property tax statements, the commissioner of revenue 
 20.17  and the county treasurer shall make full settlement with the 
 20.18  county auditor of all receipts collected for all purposes, from 
 20.19  the date of the last settlement up to and including each day 
 20.20  mentioned.  The county auditor shall, within 30 days after the 
 20.21  settlement, send an abstract of it to the state auditor in the 
 20.22  form prescribed by the state auditor.  At the settlement the 
 20.23  treasurer shall make complete returns of the receipts on the 
 20.24  current tax list, showing the amount collected on account of the 
 20.25  several funds included in the list. 
 20.26     Settlement of receipts from the later of May 20 or the 
 20.27  actual settlement date to December 31 of each year must be made 
 20.28  as provided in section 276.111. 
 20.29     For purposes of this section, "receipts" includes all tax 
 20.30  payments received by the county treasurer on or before the 
 20.31  settlement date.  
 20.32     [EFFECTIVE DATE.] This section is effective for taxes 
 20.33  payable in 2005 and subsequent years. 
 20.34     Sec. 15.  [477A.08] [SUPPLEMENTAL AID.] 
 20.35     Subdivision 1.  [DETERMINATION OF TAX BASE LOSS.] For taxes 
 20.36  payable in 2005, the commissioner of revenue shall determine the 
 21.1   change in net tax capacity and referendum market value in each 
 21.2   taxing jurisdiction in the state under sections 1 to 6.  For 
 21.3   each jurisdiction whose net tax capacity or referendum market 
 21.4   value was reduced, the commissioner shall determine the revenue 
 21.5   loss attributable to the reduction by multiplying the amount 
 21.6   lost by the jurisdiction's tax capacity tax rate or referendum 
 21.7   market value tax rate for taxes payable in 2004. 
 21.8      Subd. 2.  [AID AMOUNT.] Each jurisdiction which was found 
 21.9   to have lost net tax capacity or referendum market value in 
 21.10  subdivision 1 shall be entitled to an annual aid payment.  The 
 21.11  payment shall be equal to the aid appropriation under 
 21.12  subdivision 3 multiplied by the proportionate share of the 
 21.13  jurisdiction's loss as determined under subdivision 1, relative 
 21.14  to the loss of all jurisdictions in the state determined under 
 21.15  subdivision 1. 
 21.16     Subd. 3.  [NOTIFICATION.] Each jurisdiction shall be 
 21.17  notified of its aid amount by August 1 of each assessment year. 
 21.18     Subd. 4.  [APPROPRIATION; PAYMENT.] The sum of $280,000,000 
 21.19  is annually appropriated from the general fund to make the 
 21.20  payments required under this section.  The aid amounts payable 
 21.21  to jurisdictions other than school districts is appropriated to 
 21.22  the commissioner of revenue; payments shall be made in the 
 21.23  manner described under section 477A.015.  The aid amounts 
 21.24  payable to school districts are appropriated to the commissioner 
 21.25  of children, families, and learning. 
 21.26     [EFFECTIVE DATE.] This section is effective for aids 
 21.27  payable in 2005 and subsequent years. 
 21.28     Sec. 16.  [REPEALER.] 
 21.29     Minnesota Statutes 2002, section 273.1384, subdivision 1, 
 21.30  is repealed. 
 21.31     [EFFECTIVE DATE.] This section is effective for taxes 
 21.32  payable in 2005 and subsequent years.