HF 2120

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

  1.1                          A bill for an act 
  1.2             relating to taxation; proposing an amendment to the 
  1.3             Minnesota Constitution, article XIII, section 1; 
  1.4             prohibiting financing of certain education costs with 
  1.5             local property taxes; providing for school funding; 
  1.6             appropriating money; amending Minnesota Statutes 1996, 
  1.7             sections 124.2131, subdivision 1; 124A.02, subdivision 
  1.8             8; 124A.03, by adding a subdivision; 124A.22, 
  1.9             subdivision 1; 124A.23, subdivision 1; 275.065, 
  1.10            subdivision 3; 275.08, subdivision 1b; 276.04, 
  1.11            subdivision 2; 276A.01, subdivision 5; 276A.06, 
  1.12            subdivision 3; 473F.02, subdivision 5; and 473F.08, 
  1.13            subdivision 3; repealing Minnesota Statutes 1996, 
  1.14            sections 124A.22, subdivisions 4a, 4b, 8a, 8b, 13d, 
  1.15            and 13e; and 124A.23, subdivisions 2, 3, and 4. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                      CONSTITUTIONAL AMENDMENT 
  1.19     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  1.20     An amendment to the Minnesota Constitution, article XIII, 
  1.21  section 1, is proposed to the people.  If the amendment is 
  1.22  adopted, the section will read as follows: 
  1.23     Section 1.  The stability of a republican form of 
  1.24  government depending mainly upon the intelligence of the people, 
  1.25  it is the duty of the legislature to establish a general and 
  1.26  uniform system of public schools.  The legislature shall make 
  1.27  such provisions by taxation or otherwise as will secure a 
  1.28  thorough and efficient system of public schools throughout the 
  1.29  state, but without the use of local property tax revenues.  
  1.30  Local property taxes may be used to fund facilities and 
  2.1   equipment and to secure and pay debt to finance public school 
  2.2   capital facilities.  
  2.3      Sec. 2.  [SUBMISSION TO VOTERS.] 
  2.4      The proposed amendment must be submitted to the people at 
  2.5   the 1998 general election.  The question submitted is:  
  2.6      "Shall the Minnesota Constitution be amended to require 
  2.7   that operating funds for public schools come from sources other 
  2.8   than local property taxes? 
  2.9                                      Yes .......
  2.10                                     No ........"
  2.11     Sec. 3.  [EFFECTIVE DATE.] 
  2.12     If the amendment proposed by section 1 is adopted by the 
  2.13  voters, the amendment is effective July 1, 2000. 
  2.14                             ARTICLE 2
  2.15                        PROPERTY TAX REFORM
  2.16     Section 1.  Minnesota Statutes 1996, section 124.2131, 
  2.17  subdivision 1, is amended to read: 
  2.18     Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
  2.19  [COMPUTATION.] The department of revenue shall annually conduct 
  2.20  an assessment/sales ratio study of the taxable property in each 
  2.21  school district in accordance with the procedures in paragraphs 
  2.22  (b) and (c).  Based upon the results of this assessment/sales 
  2.23  ratio study, the department of revenue shall determine an 
  2.24  aggregate equalized net tax capacity for the various classes of 
  2.25  taxable property in each school district, which tax capacity 
  2.26  shall be designated as the adjusted net tax capacity.  The 
  2.27  adjusted net tax capacities shall be determined using the net 
  2.28  tax capacity percentages in effect for the assessment year 
  2.29  following the assessment year of the study.  The department of 
  2.30  revenue shall make whatever estimates are necessary to account 
  2.31  for changes in the classification system.  The department of 
  2.32  revenue may incur the expense necessary to make the 
  2.33  determinations.  The commissioner of revenue may reimburse any 
  2.34  county or governmental official for requested services performed 
  2.35  in ascertaining the adjusted net tax capacity.  On or before 
  2.36  March 15 annually, the department of revenue shall file with the 
  3.1   chair of the tax committee of the house of representatives and 
  3.2   the chair of the committee on taxes and tax laws of the senate a 
  3.3   report of adjusted net tax capacities.  On or before June 15 
  3.4   annually, the department of revenue shall file its final report 
  3.5   on the adjusted net tax capacities established by the previous 
  3.6   year's assessments and the current year's net tax capacity 
  3.7   percentages with the commissioner of children, families, and 
  3.8   learning and each county auditor for those school districts for 
  3.9   which the auditor has the responsibility for determination of 
  3.10  local tax rates.  A copy of the report so filed shall be mailed 
  3.11  to the clerk of each district involved and to the county 
  3.12  assessor or supervisor of assessments of the county or counties 
  3.13  in which each district is located. 
  3.14     (b)  [METHODOLOGY.] In making its annual assessment/sales 
  3.15  ratio studies, the department of revenue shall use a methodology 
  3.16  consistent with the most recent Standard on Assessment Ratio 
  3.17  Studies published by the assessment standards committee of the 
  3.18  International Association of Assessing Officers.  The 
  3.19  commissioner of revenue shall supplement this general 
  3.20  methodology with specific procedures necessary for execution of 
  3.21  the study in accordance with other Minnesota laws impacting the 
  3.22  assessment/sales ratio study.  The commissioner shall document 
  3.23  these specific procedures in writing and shall publish the 
  3.24  procedures in the State Register, but these procedures will not 
  3.25  be considered "rules" pursuant to the Minnesota administrative 
  3.26  procedure act.  For purposes of this section, sections 270.12, 
  3.27  subdivision 2, clause (8), and 278.05, subdivision 4, the 
  3.28  commissioner of revenue shall exclude from the assessment/sales 
  3.29  ratio study the sale of any nonagricultural property which does 
  3.30  not contain an improvement, if (1) the statutory basis on which 
  3.31  the property's taxable value as most recently assessed is less 
  3.32  than market value as defined in section 273.11, or (2) the 
  3.33  property has undergone significant physical change or a change 
  3.34  of use since the most recent assessment.  
  3.35     (c)  [AGRICULTURAL LANDS.] For purposes of determining the 
  3.36  adjusted net tax capacity of agricultural lands for the 
  4.1   calculation of adjusted net tax capacities, the market value of 
  4.2   agricultural lands shall be the price for which the property 
  4.3   would sell in an arms length transaction. 
  4.4      (d)  [FORCED SALES.] The commissioner may include forced 
  4.5   sales in the assessment/sales ratio studies if it is determined 
  4.6   by the commissioner that these forced sales indicate true market 
  4.7   value. 
  4.8      (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
  4.9   market value to be used in calculating sales ratios shall be the 
  4.10  value established by the assessor before any stipulations 
  4.11  resulting from appeals by property owners and before any 
  4.12  abatement unless the abatement was granted for the purpose of 
  4.13  correcting mere clerical errors. 
  4.14     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
  4.15  shall be calculated for commercial property and for industrial 
  4.16  property.  These two classes shall be combined only in 
  4.17  jurisdictions in which there is not an adequate sample of sales 
  4.18  in each class. 
  4.19     (g)  [HOMESTEAD PROPERTY EXEMPTION.] The value of all 
  4.20  property classified as class 1 or 2a under section 273.13, 
  4.21  subdivisions 22 and 23, shall be excluded from a county's 
  4.22  adjusted net tax capacity for the purpose of determining its 
  4.23  general education statewide levy under section 124A.23, 
  4.24  subdivision 1. 
  4.25     Sec. 2.  Minnesota Statutes 1996, section 124A.02, 
  4.26  subdivision 8, is amended to read: 
  4.27     Subd. 8.  [EQUALIZING FACTOR.] For fiscal year 1999 and 
  4.28  later fiscal years, "equalizing factor" means the ratio, rounded 
  4.29  to the nearest dollar, of the formula allowance to the general 
  4.30  education tax rate for the corresponding year $9,400.  
  4.31     Sec. 3.  Minnesota Statutes 1996, section 124A.03, is 
  4.32  amended by adding a subdivision to read: 
  4.33     Subd. 1j.  [NEW REFERENDA PROHIBITED.] After June 30, 1997, 
  4.34  a school district may not hold an election to approve an 
  4.35  operating referendum under this section, unless the referendum 
  4.36  is to renew referendum authority that was in existence for 
  5.1   property taxes payable in 1997 or 1998, but which is expiring or 
  5.2   has expired.  In the case of a referendum to replace expired 
  5.3   referendum authority, the revenue per pupil unit must be in an 
  5.4   amount equal to or less than the expired referendum authority. 
  5.5      Sec. 4.  Minnesota Statutes 1996, section 124A.22, 
  5.6   subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
  5.8   year 1996, the general education revenue for each district 
  5.9   equals the sum of the district's basic revenue, compensatory 
  5.10  education revenue, training and experience revenue, secondary 
  5.11  sparsity revenue, elementary sparsity revenue, and supplemental 
  5.12  revenue. 
  5.13     (b) For fiscal year years 1997 and thereafter, the general 
  5.14  education revenue for each district equals the sum of the 
  5.15  district's basic revenue, compensatory education revenue, 
  5.16  secondary sparsity revenue, elementary sparsity revenue, 
  5.17  transportation sparsity, total operating capital revenue, 
  5.18  transition revenue, and supplemental revenue. 
  5.19     (c) For fiscal years 1999 and thereafter, general education 
  5.20  revenue is provided in state aid. 
  5.21     Sec. 5.  Minnesota Statutes 1996, section 124A.23, 
  5.22  subdivision 1, is amended to read: 
  5.23     Subdivision 1.  [GENERAL EDUCATION STATEWIDE PROPERTY TAX 
  5.24  RATE.] The commissioner of revenue shall establish the general 
  5.25  education statewide property tax rate by July 1 of each year for 
  5.26  levies payable in the following year.  The general 
  5.27  education statewide property tax capacity rate shall be a rate, 
  5.28  rounded up to the nearest tenth of a percent, that, when applied 
  5.29  to the adjusted net tax capacity for all districts counties, 
  5.30  raises the amount specified in this subdivision.  The general 
  5.31  education statewide property tax rate shall be the rate that 
  5.32  raises $1,054,000,000 for fiscal year 1996 and 
  5.33  $1,359,000,000 $665,000,000 for fiscal year 1997 1999 and later 
  5.34  fiscal years.  The general education tax rate may not be changed 
  5.35  due to changes or corrections made to a district's adjusted net 
  5.36  tax capacity after the tax rate has been established.  The 
  6.1   commissioner of revenue shall calculate the amount that shall be 
  6.2   raised in each county and certify that amount to the county 
  6.3   auditor.  The auditor shall extend the levy against the net tax 
  6.4   capacity in the county, excluding the net tax capacity of 
  6.5   property that is exempt from the general education statewide 
  6.6   property tax under section 275.08, subdivision 1b, paragraph (b).
  6.7      Sec. 6.  Minnesota Statutes 1996, section 275.065, 
  6.8   subdivision 3, is amended to read: 
  6.9      Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  6.10  county auditor shall prepare and the county treasurer shall 
  6.11  deliver after November 10 and on or before November 24 each 
  6.12  year, by first class mail to each taxpayer at the address listed 
  6.13  on the county's current year's assessment roll, a notice of 
  6.14  proposed property taxes and, in the case of a town, final 
  6.15  property taxes.  
  6.16     (b) The commissioner of revenue shall prescribe the form of 
  6.17  the notice. 
  6.18     (c) The notice must inform taxpayers that it contains the 
  6.19  amount of property taxes each taxing authority other than a 
  6.20  town, including the state of Minnesota, proposes to collect for 
  6.21  taxes payable the following year and, for a town, the amount of 
  6.22  its final levy.  In the case of the state of Minnesota or any 
  6.23  town, the amount shown shall be based upon the final rather than 
  6.24  a proposed levy.  It must clearly state that each taxing 
  6.25  authority, including regional library districts established 
  6.26  under section 134.201, and including the metropolitan taxing 
  6.27  districts as defined in paragraph (i), but excluding the state 
  6.28  of Minnesota, all other special taxing districts, and towns, 
  6.29  will hold a public meeting to receive public testimony on the 
  6.30  proposed budget and proposed or final property tax levy, or, in 
  6.31  case of a school district, on the current budget and proposed 
  6.32  property tax levy.  It must clearly state the time and place of 
  6.33  each taxing authority's meeting and an address where comments 
  6.34  will be received by mail.  
  6.35     (d) The notice must state for each parcel: 
  6.36     (1) the market value of the property as determined under 
  7.1   section 273.11, and used for computing property taxes payable in 
  7.2   the following year and for taxes payable in the current year; 
  7.3   and, in the case of residential property, whether the property 
  7.4   is classified as homestead or nonhomestead.  The notice must 
  7.5   clearly inform taxpayers of the years to which the market values 
  7.6   apply and that the values are final values; 
  7.7      (2) by county, city or town, school district excess 
  7.8   referenda levy, remaining school district levy, the general 
  7.9   education statewide property tax, regional library district, if 
  7.10  in existence, the total of the metropolitan special taxing 
  7.11  districts as defined in paragraph (i) and the sum of the 
  7.12  remaining special taxing districts, and as a total of the taxing 
  7.13  authorities, including all special taxing districts, the 
  7.14  proposed or, for a town or for the state, final net tax on the 
  7.15  property for taxes payable the following year and the actual tax 
  7.16  for taxes payable the current year.  If a school district has 
  7.17  certified under section 124A.03, subdivision 2, that a 
  7.18  referendum will be held in the school district at the November 
  7.19  general election, the county auditor must note next to the 
  7.20  school district's proposed amount that a referendum is pending 
  7.21  and that, if approved by the voters, the tax amount may be 
  7.22  higher than shown on the notice.  For the purposes of this 
  7.23  subdivision, "school district excess referenda levy" means 
  7.24  school district taxes for operating purposes approved at 
  7.25  referendums, including those taxes based on net tax capacity as 
  7.26  well as those based on market value.  "School district excess 
  7.27  referenda levy" does not include school district taxes for 
  7.28  capital expenditures approved at referendums or school district 
  7.29  taxes to pay for the debt service on bonds approved at 
  7.30  referenda.  In the case of the city of Minneapolis, the levy for 
  7.31  the Minneapolis library board and the levy for Minneapolis park 
  7.32  and recreation shall be listed separately from the remaining 
  7.33  amount of the city's levy.  In the case of a parcel where tax 
  7.34  increment or the fiscal disparities areawide tax under chapter 
  7.35  276A or 473F applies, the proposed tax levy on the captured 
  7.36  value or the proposed tax levy on the tax capacity subject to 
  8.1   the areawide tax must each be stated separately and not included 
  8.2   in the sum of the special taxing districts; and 
  8.3      (3) the increase or decrease in the amounts in clause (2) 
  8.4   from taxes payable in the current year to proposed or, for a 
  8.5   town, final taxes payable the following year, expressed as a 
  8.6   dollar amount and as a percentage. 
  8.7      (e) The notice must clearly state that the proposed or 
  8.8   final taxes do not include the following: 
  8.9      (1) special assessments; 
  8.10     (2) levies approved by the voters after the date the 
  8.11  proposed taxes are certified, including bond referenda, school 
  8.12  district levy referenda, and levy limit increase referenda; 
  8.13     (3) amounts necessary to pay cleanup or other costs due to 
  8.14  a natural disaster occurring after the date the proposed taxes 
  8.15  are certified; 
  8.16     (4) amounts necessary to pay tort judgments against the 
  8.17  taxing authority that become final after the date the proposed 
  8.18  taxes are certified; and 
  8.19     (5) the contamination tax imposed on properties which 
  8.20  received market value reductions for contamination. 
  8.21     (f) Except as provided in subdivision 7, failure of the 
  8.22  county auditor to prepare or the county treasurer to deliver the 
  8.23  notice as required in this section does not invalidate the 
  8.24  proposed or final tax levy or the taxes payable pursuant to the 
  8.25  tax levy. 
  8.26     (g) If the notice the taxpayer receives under this section 
  8.27  lists the property as nonhomestead and the homeowner provides 
  8.28  satisfactory documentation to the county assessor that the 
  8.29  property is owned and used as the owner's homestead, the 
  8.30  assessor shall reclassify the property to homestead for taxes 
  8.31  payable in the following year. 
  8.32     (h) In the case of class 4 residential property used as a 
  8.33  residence for lease or rental periods of 30 days or more, the 
  8.34  taxpayer must either: 
  8.35     (1) mail or deliver a copy of the notice of proposed 
  8.36  property taxes to each tenant, renter, or lessee; or 
  9.1      (2) post a copy of the notice in a conspicuous place on the 
  9.2   premises of the property.  
  9.3      The notice must be mailed or posted by the taxpayer by 
  9.4   November 27 or within three days of receipt of the notice, 
  9.5   whichever is later.  A taxpayer may notify the county treasurer 
  9.6   of the address of the taxpayer, agent, caretaker, or manager of 
  9.7   the premises to which the notice must be mailed in order to 
  9.8   fulfill the requirements of this paragraph. 
  9.9      (i) For purposes of this subdivision, subdivisions 5a and 
  9.10  6, "metropolitan special taxing districts" means the following 
  9.11  taxing districts in the seven-county metropolitan area that levy 
  9.12  a property tax for any of the specified purposes listed below: 
  9.13     (1) metropolitan council under section 473.132, 473.167, 
  9.14  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  9.15     (2) metropolitan airports commission under section 473.667, 
  9.16  473.671, or 473.672; and 
  9.17     (3) metropolitan mosquito control commission under section 
  9.18  473.711. 
  9.19     For purposes of this section, any levies made by the 
  9.20  regional rail authorities in the county of Anoka, Carver, 
  9.21  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  9.22  398A shall be included with the appropriate county's levy and 
  9.23  shall be discussed at that county's public hearing. 
  9.24     (j) For taxes levied in 1996, payable in 1997 only, in the 
  9.25  case of a statutory or home rule charter city or town that 
  9.26  exercises the local levy option provided in section 473.388, 
  9.27  subdivision 7, the notice of its proposed taxes may include a 
  9.28  statement of the amount by which its proposed tax increase for 
  9.29  taxes payable in 1997 is attributable to its exercise of that 
  9.30  option, together with a statement that the levy of the 
  9.31  metropolitan council was decreased by a similar amount because 
  9.32  of the exercise of that option.  
  9.33     Sec. 7.  Minnesota Statutes 1996, section 275.08, 
  9.34  subdivision 1b, is amended to read: 
  9.35     Subd. 1b.  [COMPUTATION OF TAX RATES.] (a) The amounts 
  9.36  certified to be levied against net tax capacity under section 
 10.1   275.07 by an individual local government unit shall be divided 
 10.2   by the total net tax capacity of all taxable properties within 
 10.3   the local government unit's taxing jurisdiction.  The resulting 
 10.4   ratio, the local government's local tax rate, multiplied by each 
 10.5   property's net tax capacity shall be each property's net tax 
 10.6   capacity tax for that local government unit before reduction by 
 10.7   any credits.  
 10.8      (b) The general education statewide tax under section 
 10.9   124A.23, subdivision 1, shall not be levied on property 
 10.10  classified as class 1 or 2a under section 273.13, subdivisions 
 10.11  22 and 23.  The county auditor shall deduct the net tax capacity 
 10.12  of property qualifying for this exemption before determining a 
 10.13  county's general education statewide tax rate. 
 10.14     (c) Any amount certified to the county auditor to be levied 
 10.15  against market value shall be divided by the total referendum 
 10.16  market value of all taxable properties within the taxing 
 10.17  district.  The resulting ratio, the taxing district's new 
 10.18  referendum tax rate, multiplied by each property's referendum 
 10.19  market value shall be each property's new referendum tax before 
 10.20  reduction by any credits.  For the purposes of this subdivision, 
 10.21  "referendum market value" means the market value as defined in 
 10.22  section 124A.02, subdivision 3b. 
 10.23     Sec. 8.  Minnesota Statutes 1996, section 276.04, 
 10.24  subdivision 2, is amended to read: 
 10.25     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 10.26  shall provide for the printing of the tax statements.  The 
 10.27  commissioner of revenue shall prescribe the form of the property 
 10.28  tax statement and its contents.  The statement must contain a 
 10.29  tabulated statement of the dollar amount due to each taxing 
 10.30  authority from the parcel of real property for which a 
 10.31  particular tax statement is prepared.  The dollar amounts due 
 10.32  the:  (1) county, (2) state of Minnesota (designated as the 
 10.33  general education statewide property tax), (3) school district, 
 10.34  (4) township or municipality, the and (5) total of the 
 10.35  metropolitan special taxing districts as defined in section 
 10.36  275.065, subdivision 3, paragraph (i), school district excess 
 11.1   referenda levy, remaining school district levy, and the total of 
 11.2   other voter approved referenda levies based on market value 
 11.3   under section 275.61 must be separately stated.  The amounts due 
 11.4   all other special taxing districts, if any, may be 
 11.5   aggregated.  For the purposes of this subdivision, "school 
 11.6   district excess referenda levy" means school district taxes for 
 11.7   operating purposes approved at referenda, including those taxes 
 11.8   based on net tax capacity as well as those based on market 
 11.9   value. "School district excess referenda levy" does not include 
 11.10  school district taxes for capital expenditures approved at 
 11.11  referendums or school district taxes to pay for the debt service 
 11.12  on bonds approved at referenda.  The amount of the tax on 
 11.13  contamination value imposed under sections 270.91 to 270.98, if 
 11.14  any, must also be separately stated.  The dollar amounts, 
 11.15  including the dollar amount of any special assessments, may be 
 11.16  rounded to the nearest even whole dollar.  For purposes of this 
 11.17  section whole odd-numbered dollars may be adjusted to the next 
 11.18  higher even-numbered dollar.  The amount of market value 
 11.19  excluded under section 273.11, subdivision 16, if any, must also 
 11.20  be listed on the tax statement.  The statement shall include the 
 11.21  following sentence, printed in upper case letters in boldface 
 11.22  print:  "THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY 
 11.23  TAX REVENUES.  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX 
 11.24  BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF 
 11.25  GOVERNMENT."  
 11.26     (b) The property tax statements for manufactured homes and 
 11.27  sectional structures taxed as personal property shall contain 
 11.28  the same information that is required on the tax statements for 
 11.29  real property.  
 11.30     (c) Real and personal property tax statements must contain 
 11.31  the following information in the order given in this paragraph.  
 11.32  The information must contain the current year tax information in 
 11.33  the right column with the corresponding information for the 
 11.34  previous year in a column on the left: 
 11.35     (1) the property's estimated market value under section 
 11.36  273.11, subdivision 1; 
 12.1      (2) the property's taxable market value after reductions 
 12.2   under section 273.11, subdivisions 1a and 16; 
 12.3      (3) the property's gross tax, calculated by multiplying the 
 12.4   property's gross tax capacity times the total local tax rate and 
 12.5   adding to the result the sum of the aids enumerated in clause 
 12.6   (4); 
 12.7      (4) a total of the following aids: 
 12.8      (i) education aids payable under chapters 124 and 124A; 
 12.9      (ii) local government aids for cities, towns, and counties 
 12.10  under chapter 477A; and 
 12.11     (iii) disparity reduction aid under section 273.1398; 
 12.12     (5) for homestead residential and agricultural properties, 
 12.13  the homestead and agricultural credit aid apportioned to the 
 12.14  property.  This amount is obtained by multiplying the total 
 12.15  local tax rate by the difference between the property's gross 
 12.16  and net tax capacities under section 273.13.  This amount must 
 12.17  be separately stated and identified as "homestead and 
 12.18  agricultural credit."  For purposes of comparison with the 
 12.19  previous year's amount for the statement for taxes payable in 
 12.20  1990, the statement must show the homestead credit for taxes 
 12.21  payable in 1989 under section 273.13, and the agricultural 
 12.22  credit under section 273.132 for taxes payable in 1989; 
 12.23     (6) any credits received under sections 273.119; 273.123; 
 12.24  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 12.25  473H.10, except that the amount of credit received under section 
 12.26  273.135 must be separately stated and identified as "taconite 
 12.27  tax relief"; and 
 12.28     (7) the net tax payable in the manner required in paragraph 
 12.29  (a). 
 12.30     (d) If the county uses envelopes for mailing property tax 
 12.31  statements and if the county agrees, a taxing district may 
 12.32  include a notice with the property tax statement notifying 
 12.33  taxpayers when the taxing district will begin its budget 
 12.34  deliberations for the current year, and encouraging taxpayers to 
 12.35  attend the hearings.  If the county allows notices to be 
 12.36  included in the envelope containing the property tax statement, 
 13.1   and if more than one taxing district relative to a given 
 13.2   property decides to include a notice with the tax statement, the 
 13.3   county treasurer or auditor must coordinate the process and may 
 13.4   combine the information on a single announcement.  
 13.5      The commissioner of revenue shall certify to the county 
 13.6   auditor the actual or estimated aids enumerated in clauses (3) 
 13.7   and (4) that local governments will receive in the following 
 13.8   year.  In the case of a county containing a city of the first 
 13.9   class, for taxes levied in 1991, and for all counties for taxes 
 13.10  levied in 1992 and thereafter, the commissioner must certify 
 13.11  this amount by September 1.  
 13.12     Sec. 9.  Minnesota Statutes 1996, section 276A.01, 
 13.13  subdivision 5, is amended to read: 
 13.14     Subd. 5.  [GOVERNMENTAL UNIT.] "Governmental unit" means a 
 13.15  county, city, town, school district, or other taxing unit or 
 13.16  body, excluding the state of Minnesota, which levies ad valorem 
 13.17  taxes in whole or in part within the area. 
 13.18     Sec. 10.  Minnesota Statutes 1996, section 276A.06, 
 13.19  subdivision 3, is amended to read: 
 13.20     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
 13.21  apportion the levy of each governmental unit in the county in 
 13.22  the manner prescribed by this subdivision.  The auditor shall: 
 13.23     (a) by August 20 of 1997 and each subsequent year, 
 13.24  determine the areawide portion of the levy for each governmental 
 13.25  unit by multiplying the local tax rate of the governmental unit 
 13.26  for the preceding levy year times the distribution value set 
 13.27  forth in subdivision 2, clause (b); and 
 13.28     (b) by September 5 of 1997 and each subsequent year, 
 13.29  determine the local portion of the current year's levy by 
 13.30  subtracting the resulting amount from clause (a) from the 
 13.31  governmental unit's current year's levy. 
 13.32     For property taxes payable in 1998 only, the areawide 
 13.33  portion of a school district's levy shall be reduced by a 
 13.34  percentage equal to the percentage that the general education 
 13.35  levy under section 124A.23 was of the school district's payable 
 13.36  1997 levy.  The commissioner of children, families, and learning 
 14.1   shall certify the general education levy percentage of each 
 14.2   district's payable 1997 levy to the administrative auditor by 
 14.3   July 1, 1998, using the definition of equalized levies found in 
 14.4   section 273.1398, subdivision 1. 
 14.5      Sec. 11.  Minnesota Statutes 1996, section 473F.02, 
 14.6   subdivision 5, is amended to read: 
 14.7      Subd. 5.  [GOVERNMENTAL UNIT.] "Governmental unit" means a 
 14.8   county, city, town, school district, or other taxing unit or 
 14.9   body, excluding the state of Minnesota, which levies ad valorem 
 14.10  taxes in whole or in part within the area. 
 14.11     Sec. 12.  Minnesota Statutes 1996, section 473F.08, 
 14.12  subdivision 3, is amended to read: 
 14.13     Subd. 3.  [APPORTIONMENT OF LEVY.] The county auditor shall 
 14.14  apportion the levy of each governmental unit in the auditor's 
 14.15  county in the manner prescribed by this subdivision.  The 
 14.16  auditor shall: 
 14.17     (a) by August 20, determine the areawide portion of the 
 14.18  levy for each governmental unit by multiplying the local tax 
 14.19  rate of the governmental unit for the preceding levy year times 
 14.20  the distribution value set forth in subdivision 2, clause (b); 
 14.21  and 
 14.22     (b) by September 5, determine the local portion of the 
 14.23  current year's levy by subtracting the resulting amount from 
 14.24  clause (a) from the governmental unit's current year's levy. 
 14.25     For property taxes payable in 1998 only, the areawide 
 14.26  portion of a school district's levy shall be reduced by a 
 14.27  percentage equal to the percentage that the general education 
 14.28  levy under section 124A.23 was of the school district's payable 
 14.29  1997 levy.  The commissioner of children, families, and learning 
 14.30  shall certify the general education levy percentage of each 
 14.31  district's payable 1997 levy to the administrative auditor by 
 14.32  July 1, 1998, using the definition of equalized levies found in 
 14.33  section 273.1398, subdivision 1. 
 14.34     Sec. 13.  [TIF GRANTS; APPROPRIATIONS.] 
 14.35     (a) The commissioner of revenue shall pay grants to 
 14.36  municipalities for deficits in tax increment financing districts 
 15.1   caused by the imposition of a state tax that is not used in 
 15.2   determining tax increment under this act.  Municipalities must 
 15.3   submit applications for the grants in a form prescribed by the 
 15.4   commissioner by no later than March 1 for taxes payable during 
 15.5   the calendar year.  The maximum grant equals the lesser of: 
 15.6      (1) the reduction in the tax increment financing district's 
 15.7   revenues derived from increment resulting from the provisions of 
 15.8   this act; and 
 15.9      (2) the municipality's total available tax increments, 
 15.10  including those from previous years, less the amount due during 
 15.11  the calendar year to pay bonds issued and sold before and 
 15.12  binding contracts entered into before the day following final 
 15.13  enactment of this act. 
 15.14     (b) The amount necessary to make the grants is appropriated 
 15.15  to the commissioner of revenue from the general fund for 
 15.16  purposes of this section. 
 15.17     Sec. 14.  [STATE PROPERTY TAX; PRE-1979 TIF DISTRICTS.] 
 15.18     Notwithstanding any law to the contrary, the state tax 
 15.19  imposed under Minnesota Statutes, section 124A.23, subdivision 
 15.20  1, may not be used to compute the increment for a tax increment 
 15.21  financing district for which certification was requested prior 
 15.22  to August 1, 1979. 
 15.23     Sec. 15.  [BUDGET RESERVE.] 
 15.24     The amount necessary to bring the budget reserve to 
 15.25  $922,000,000 on July 1, 1997, is appropriated from the general 
 15.26  fund to the commissioner of finance for transfer to the budget 
 15.27  reserve on that date. 
 15.28     Sec. 16.  [REPEALER.] 
 15.29     Minnesota Statutes 1996, sections 124A.22, subdivisions 4a, 
 15.30  4b, 8a, 8b, 13d, and 13e; and 124A.23, subdivisions 2, 3, and 4, 
 15.31  are repealed. 
 15.32     Sec. 17.  [EFFECTIVE DATE.] 
 15.33     This article is effective for taxes levied in 1997, payable 
 15.34  in 1998, and subsequent years, and for aids payable in fiscal 
 15.35  year 1999 and subsequent years.