Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 2294

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14
1.15 1.16 1.17
1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18
2.19 2.20
2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13
4.14 4.15
4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12
5.13 5.14
5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 5.37 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 6.37 6.38 6.39 6.40 6.41 6.42 7.1 7.2 7.3 7.4 7.5
7.6 7.7
7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34
8.1 8.2
8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30
8.31 8.32
8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8
9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25
9.26 9.27
9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4
10.5 10.6
10.7 10.8
10.9 10.10
10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22
10.23
10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2 11.3 11.4 11.5 11.6 11.7
11.8
11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22
11.23
11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10
12.11
12.12 12.13 12.14 12.15 12.16 12.17 12.18
12.19
12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27
12.28 12.29 12.30 12.31 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8
13.9
13.10 13.11 13.12 13.13 13.14 13.15
13.16 13.17
13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9
14.10 14.11
14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26
14.27
14.28 14.29 14.30 14.31 14.32 14.33 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3
18.4
18.5 18.6 18.7 18.8 18.9 18.10 18.11
18.12
18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28
18.29
19.1 19.2
19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16
20.17 20.18
20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5
21.6 21.7

A bill for an act
relating to the financing and operation of state and local government; modifying
property tax provisions, credits, and levies; providing a homestead credit state
refund; increasing property tax refunds; providing a school bond agricultural
credit; adding an income tax bracket and rate; amending Minnesota Statutes
2006, sections 123B.53, subdivisions 4, 5; 123B.54; 126C.01, by adding a
subdivision; 126C.10, subdivision 13a; 126C.17, subdivision 6; 127A.48, by
adding a subdivision; 273.11, subdivision 1a; 273.1384, subdivision 1; 273.1393;
275.065, subdivision 3; 275.07, subdivision 2; 275.08, subdivision 1b; 276.04,
subdivision 2; 290.06, subdivisions 2c, 2d; 290A.03, subdivision 13; 290A.04,
subdivisions 2a, 2h, 3, 4, by adding a subdivision; proposing coding for new
law in Minnesota Statutes, chapter 123B; repealing Minnesota Statutes 2006,
section 290A.04, subdivisions 2, 2b.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HOMESTEAD CREDIT STATE REFUND

HOMEOWNERS AND RENTERS

Section 1.

Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
read:


Subdivision 1.

Residential homestead market value credit.

new text begin(a) new text endEach county
auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead
property within the county equal to 0.4 percent of the first $76,000 of market value
of the property minus .09 percent of the market value in excess of $76,000. The credit
amount may not be less than zero. In the case of an agricultural or resort homestead, only
the market value of the house, garage, and immediately surrounding one acre of land is
eligible in determining the property's homestead credit. In the case of a property that
is classified as part homestead and part nonhomestead, (i) the credit shall apply only
to the homestead portion of the property, but (ii) if a portion of a property is classified
as nonhomestead solely because not all the owners occupy the property, not all the
owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as
if that nonhomestead portion were also in the homestead class and then prorated to the
owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of ownership for
the owner-occupant spouse is one-half of the couple's ownership percentage.

new text begin (b) For property taxes payable in 2008 and thereafter, the county auditor shall
determine the amount of the homestead credit under paragraph (a) and this paragraph.
The county auditor shall report the amount of the credit to the taxpayer on the property
tax statement or in another manner, as authorized by the commissioner of revenue. The
amount of the credit allowed for the property taxes payable year is to be computed as the
following percentage of the credit amount under paragraph (a):
new text end

new text begin (1) for property taxes payable in 2008, 100 percent;
new text end

new text begin (2) for property taxes payable in 2009, 60 percent;
new text end

new text begin (3) for property taxes payable in 2010, 30 percent; and
new text end

new text begin (4) for property taxes payable in 2011 or thereafter, no credit is allowed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable
in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form
of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax statement is prepared. The
dollar amounts attributable to the county, the state tax, the voter approved school tax, the
other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
be separately stated. The amounts due all other special taxing districts, if any, may be
aggregated except that any levies made by the regional rail authorities in the county of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be listed on a separate line directly under the appropriate county's levy. If the county
levy under this paragraph includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County,
if the county levy under this paragraph includes an amount for public library service
under section 134.07, the amount attributable for that purpose may be separated from the
remaining county levy amount. The amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount. The amount of the
tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
The amount of market value excluded under section 273.11, subdivision 16, if any, must
also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a and 16
;

(3) deleted text beginthe property's gross tax, calculated by adding the property's total property tax to
the sum of the aids enumerated in clause (4);
deleted text endnew text begin any items required by the commissioner of
revenue under section 273.1384, subdivision 1, paragraph (b); and
new text end

deleted text begin (4) a total of the following aids:
deleted text end

deleted text begin (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
and 127A;
deleted text end

deleted text begin (ii) local government aids for cities, towns, and counties under sections deleted text begin477A.011deleted text end to
deleted text begin477A.04deleted text end; and
deleted text end

deleted text begin (iii) disparity reduction aid under section deleted text begin273.1398deleted text end;
deleted text end

deleted text begin (5) for homestead residential and agricultural properties, the credits under section
deleted text begin273.1384deleted text end;
deleted text end

deleted text begin (6) any credits received under sections deleted text begin273.119deleted text end; deleted text begin273.123deleted text end; deleted text begin273.135deleted text end; deleted text begin273.1391deleted text end;
deleted text begin273.1398, subdivision 4deleted text end; deleted text begin469.171deleted text end; and deleted text begin473H.10deleted text end, except that the amount of credit received
under section deleted text begin273.135deleted text end must be separately stated and identified as "taconite tax relief"; and
deleted text end

deleted text begin (7)deleted text endnew text begin (4)new text end the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

deleted text begin The commissioner of revenue shall certify to the county auditor the actual or
estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
in the following year. The commissioner must certify this amount by January 1 of each
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property
tax exclusive of special assessments, penalties, and interest payable on a claimant's
homestead after deductions made under sections 273.135, deleted text begin273.1384,deleted text end 273.1391, 273.42,
subdivision 2
, and any other state paid property tax credits in any calendar year, and
after any refund claimed and allowable under section 290A.04, subdivision 2h, that is
first payable in the year that the property tax is payable. new text beginBeginning for property taxes
payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must
not be deducted in computing property taxes payable.
new text endIn the case of a claimant who
makes ground lease payments, "property taxes payable" includes the amount of the
payments directly attributable to the property taxes assessed against the parcel on which
the house is located. No apportionment or reduction of the "property taxes payable" shall
be required for the use of a portion of the claimant's homestead for a business purpose if
the claimant does not deduct any business depreciation expenses for the use of a portion
of the homestead in the determination of federal adjusted gross income. For homesteads
which are manufactured homes as defined in section 273.125, subdivision 8, and for
homesteads which are park trailers taxed as manufactured homes under section 168.012,
subdivision 9
, "property taxes payable" shall also include 19 percent of the gross rent paid
in the preceding year for the site on which the homestead is located. When a homestead
is owned by two or more persons as joint tenants or tenants in common, such tenants
shall determine between them which tenant may claim the property taxes payable on the
homestead. If they are unable to agree, the matter shall be referred to the commissioner of
revenue whose decision shall be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for refund claims based on
property taxes payable in 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:


Subd. 2a.

Renters.

new text begin(a) new text endA claimant whose rent constituting property taxes exceeds
the percentage of the household income stated below must pay an amount equal to the
percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of rent constituting property
taxes. The state refund equals the amount of rent constituting property taxes that remain,
up to the maximum state refund amount shown below.

Household Income
Percent of Income
Percent Paid by
Claimant
Maximum State
Refund
deleted text begin $0 to 3,589
deleted text end
1.0 percent
5 percent
deleted text begin $1,190
deleted text end
new text begin $0 to 4,579
new text end
new text begin $1,500
new text end
deleted text begin 3,590 to 4,779
deleted text end
1.0 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 4,580 to 6,099
new text end
new text begin $1,500
new text end
deleted text begin 4,780 to 5,969
deleted text end
1.1 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 6,100 to 7,619
new text end
new text begin $1,500
new text end
deleted text begin 5,970 to 8,369
deleted text end
1.2 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 7,620 to 10,669
new text end
new text begin $1,500
new text end
deleted text begin 8,370 to 10,759
deleted text end
1.3 percent
15 percent
deleted text begin $1,190
deleted text end
new text begin 10,670 to 13,729
new text end
new text begin $1,500
new text end
deleted text begin 10,760 to 11,949
deleted text end
1.4 percent
15 percent
deleted text begin $1,190
deleted text end
new text begin 13,730 to 15,239
new text end
new text begin $1,500
new text end
deleted text begin 11,950 to 13,139
deleted text end
1.4 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 15,240 to 16,769
new text end
new text begin $1,500
new text end
deleted text begin 13,140 to 15,539
deleted text end
1.5 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 16,770 to 19,829
new text end
new text begin $1,500
new text end
deleted text begin 15,540 to 16,729
deleted text end
1.6 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 19,830 to 21,349
new text end
new text begin $1,500
new text end
deleted text begin 16,730 to 17,919
deleted text end
1.7 percent
25 percent
deleted text begin $1,190
deleted text end
new text begin 21,350 to 22,859
new text end
new text begin $1,500
new text end
deleted text begin 17,920 to 20,319
deleted text end
1.8 percent
25 percent
deleted text begin $1,190
deleted text end
new text begin 22,860 to 25,929
new text end
new text begin $1,500
new text end
deleted text begin 20,320 to 21,509
deleted text end
1.9 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 25,930 to 27,439
new text end
new text begin $1,500
new text end
deleted text begin 21,510 to 22,699
deleted text end
2.0 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 27,440 to 28,959
new text end
new text begin $1,500
new text end
deleted text begin 22,700 to 23,899
deleted text end
2.2 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 28,960 to 30,499
new text end
new text begin $1,500
new text end
deleted text begin 23,900 to 25,089
deleted text end
2.4 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 30,500 to 32,009
new text end
new text begin $1,500
new text end
deleted text begin 25,090 to 26,289
deleted text end
2.6 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 32,010 to 33,539
new text end
new text begin $1,500
new text end
deleted text begin 26,290 to 27,489
deleted text end
2.7 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 33,540 to 35,079
new text end
new text begin $1,500
new text end
deleted text begin 27,490 to 28,679
deleted text end
2.8 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 35,080 to 36,589
new text end
new text begin $1,500
new text end
deleted text begin 28,680 to 29,869
deleted text end
2.9 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 36,590 to 38,109
new text end
new text begin $1,500
new text end
deleted text begin 29,870 to 31,079
deleted text end
3.0 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 38,110 to 39,649
new text end
new text begin $1,500
new text end
deleted text begin 31,080 to 32,269
deleted text end
3.1 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 39,650 to 41,169
new text end
new text begin $1,500
new text end
deleted text begin 32,270 to 33,459
deleted text end
3.2 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 41,170 to 42,689
new text end
new text begin $1,500
new text end
deleted text begin 33,460 to 34,649
deleted text end
3.3 percent
45 percent
deleted text begin $1,080
deleted text end
new text begin 42,690 to 49,729
new text end
new text begin $1,370
new text end
deleted text begin 34,650 to 35,849
deleted text end
3.4 percent
45 percent
deleted text begin $ 960
deleted text end
new text begin 49,730 to 51,459
new text end
new text begin $1,220
new text end
deleted text begin 35,850 to 37,049
deleted text end
3.5 percent
45 percent
deleted text begin $ 830
deleted text end
new text begin 51,460 to 53,189
new text end
new text begin $1,050
new text end
deleted text begin 37,050 to 38,239
deleted text end
3.5 percent
50 percent
deleted text begin $ 720
deleted text end
new text begin 53,190 to 54,899
new text end
new text begin $910
new text end
deleted text begin 38,240 to 39,439
deleted text end
3.5 percent
50 percent
deleted text begin $ 600
deleted text end
new text begin 54,900 to 56,609
new text end
new text begin $760
new text end
deleted text begin 38,440 to 40,629
deleted text end
3.5 percent
50 percent
deleted text begin $ 360
deleted text end
new text begin 56,610 to 58,319
new text end
new text begin $450
new text end
deleted text begin 40,630 to 41,819
deleted text end
3.5 percent
50 percent
deleted text begin $ 120
deleted text end
new text begin 58,320 to 60,000
new text end
new text begin $150
new text end

new text begin (b) new text endThe payment made to a claimant is the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin $41,820deleted text end new text begin$60,000 new text endor more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims filed for rent
paid after December 31, 2006.
new text end

Sec. 5.

Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:


Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a
homestead increase more than 12 percent over the property taxes payable in the prior year
on the same property that is owned and occupied by the same owner on January 2 of both
years, and the amount of that increase is $100 or more, a claimant who is a homeowner
shall be allowed an additional refund equal to 60 percent of the amount of the increase
over the greater of 12 percent of the prior year's property taxes payable or $100. This
subdivision shall not apply to any increase in the gross property taxes payable attributable
to improvements made to the homestead after the assessment date for the prior year's
taxes. This subdivision shall not apply to any increase in the gross property taxes payable
attributable to the termination of valuation exclusions under section 273.11, subdivision
16
new text begin, or to the reduction in and elimination of the homestead market value credit under
section 273.1384, subdivision 1, paragraph (b)
new text end.

The maximum refund allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property
taxes payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential eligibility and assisting the
homeowner, without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes
payable in 2008 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision
to read:


new text begin Subd. 2k. new text end

new text begin Homestead credit state refund. new text end

new text begin (a) A claimant who is a homeowner
is entitled to a state refund of the amount of the property taxes payable in excess of two
percent of the claimant's household income, based on the percentage and maximum for the
appropriate household income level shown below. The refund amount determined from the
table must be reduced further by the amount of the homestead market value credit under
section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.
new text end

new text begin Household Income
new text end
new text begin Refund Percentage
new text end
new text begin Maximum State Refund
new text end
new text begin 0 to $5,399
new text end
new text begin 90 percent
new text end
new text begin $2,500
new text end
new text begin 5,400 to 18,899
new text end
new text begin 85 percent
new text end
new text begin 2,500
new text end
new text begin 18,900 to 26,999
new text end
new text begin 80 percent
new text end
new text begin 2,500
new text end
new text begin 27,000 to 32,399
new text end
new text begin 75 percent
new text end
new text begin 2,500
new text end
new text begin 32,400 to 37,799
new text end
new text begin 70 percent
new text end
new text begin 2,500
new text end
new text begin 37,800 to 45,899
new text end
new text begin 65 percent
new text end
new text begin 2,500
new text end
new text begin 45,900 to 64,699
new text end
new text begin 60 percent
new text end
new text begin 2,500
new text end
new text begin 64,700 to 80,899
new text end
new text begin 55 percent
new text end
new text begin 2,300
new text end
new text begin 80,900 to 94,399
new text end
new text begin 50 percent
new text end
new text begin 2,100
new text end
new text begin 94,400 to 99,299
new text end
new text begin 45 percent
new text end
new text begin 1,900
new text end
new text begin 99,300 to 104,099
new text end
new text begin 40 percent
new text end
new text begin 1,700
new text end
new text begin 104,100 to 115,599
new text end
new text begin 30 percent
new text end
new text begin 1,500
new text end
new text begin 115,600 to 127,199
new text end
new text begin 30 percent
new text end
new text begin 1,250
new text end
new text begin 127,200 to 134,099
new text end
new text begin 25 percent
new text end
new text begin 1,000
new text end
new text begin 134,100 to 138,799
new text end
new text begin 25 percent
new text end
new text begin 750
new text end
new text begin 138,800 to 144,399
new text end
new text begin 25 percent
new text end
new text begin 500
new text end
new text begin 144,400 to 150,000
new text end
new text begin 25 percent
new text end
new text begin 250
new text end

new text begin (b) No payment is allowed under paragraph (a) if the claimant's household income
is more than $150,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims based on
property taxes payable in 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read:


Subd. 3.

Table.

The commissioner of revenue shall construct and make available
to taxpayers a comprehensive table showing the deleted text beginproperty taxes to be paid anddeleted text end refund
allowed at various levels of income deleted text beginand assessmentdeleted text end. The table shall follow the schedule
of income percentages, maximums and other provisions specified in deleted text beginsubdivision 2deleted text endnew text begin this
section
new text end, except that the commissioner may graduate the transition between income
brackets. All refunds shall be computed in accordance with tables prepared and issued
by the commissioner of revenue.

The commissioner shall include on the form an appropriate space or method for the
claimant to identify if the property taxes paid are for a manufactured home, as defined in
section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured
home under section 168.012, subdivision 9.

Sec. 8.

Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:


Subd. 4.

Inflation adjustment.

Beginning for property tax refunds payable in
calendar year deleted text begin2002deleted text endnew text begin 2009new text end, the commissioner shall annually adjust the dollar amounts of
the income thresholds and the maximum refunds under subdivisions deleted text begin2 anddeleted text end 2a new text beginand 2k new text endfor
inflation. The commissioner shall make the inflation adjustments in accordance with
section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision
the percentage increase shall be determined from the year ending on June 30, deleted text begin2000deleted text endnew text begin 2007new text end,
to the year ending on June 30 of the year preceding that in which the refund is payable.
The commissioner shall use the appropriate percentage increase to annually adjust the
income thresholds and maximum refunds under subdivisions deleted text begin2 anddeleted text end 2a new text beginand 2k new text endfor inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up
to the next $10 amount.

The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims based on
property taxes payable in 2009.
new text end

Sec. 9. new text beginHOMESTEAD CREDIT STATE REFUND TRANSITION RESERVE.
new text end

new text begin Subdivision 1. new text end

new text begin Reserve account. new text end

new text begin A homestead credit state refund transition reserve
account is established in the general fund to provide two additional years of transition
funding for the homestead credit state refund.
new text end

new text begin Subd. 2. new text end

new text begin Transfer to account. new text end

new text begin On June 29, 2009, the commissioner of finance
shall transfer $129,000,000 from the general fund to the homestead credit state refund
transition reserve account.
new text end

new text begin Subd. 3. new text end

new text begin Transfer to general fund. new text end

new text begin On July 1, 2009, the commissioner of finance
shall transfer the balance in the homestead credit state refund transition reserve account
to the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Expiration date. new text end

new text begin This section expires July 2, 2009.
new text end

Sec. 10. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes
payable in 2008 and later.
new text end

ARTICLE 2

EDUCATION PROPERTY TAX RELIEF

Section 1.

Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:


Subd. 4.

Debt service equalization revenue.

deleted text begin(a)deleted text end The debt service equalization
revenue of a district equals the deleted text beginsum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.
deleted text end

deleted text begin (b) The first tier debt service equalization revenue of a district equals thedeleted text end greater of
zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent
times the adjustednew text begin debt servicenew text end net tax capacity of the district deleted text beginminus the second tier debt
service equalization revenue of the district
deleted text end.

deleted text begin (c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section deleted text begin123B.59, subdivision 5deleted text end, minus the amount raised by a levy of 25 percent times the
adjusted net tax capacity of the district.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

deleted text begin (a) The equalized debt service levy of a
deleted text end deleted text begin district equals the sum of the first tier equalized debt service levy and the second tier
deleted text end deleted text begin equalized debt service levy.
deleted text end

deleted text begin (b)deleted text end A district's deleted text beginfirst tierdeleted text end equalized debt service levy equals the district's deleted text beginfirst tierdeleted text end debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjustednew text begin debt servicenew text end net tax capacity of the
district for the year before the year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin$3,200deleted text endnew text begin 100 percent of the statewide adjusted net tax capacity equalizing factornew text end.

deleted text begin (c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:
deleted text end

deleted text begin (1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to
deleted text end

deleted text begin (2) $8,000.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.54, is amended to read:


123B.54 DEBT SERVICE new text beginAND SCHOOL BOND AGRICULTURAL CREDIT
new text endAPPROPRIATION.

(a) deleted text begin$21,624,000deleted text endnew text begin $14,813,000new text end in fiscal year 2008 deleted text beginand $20,403,000deleted text endnew text begin, $26,100,000new text end in
fiscal year 2009new text begin, $29,816,000 in fiscal year 2010, and $30,538,000 in fiscal year 2011new text end and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

new text begin (b) $16,200,000 in fiscal year 2009, $18,531,000 in fiscal year 2010, and
$19,242,000 in fiscal year 2011 and each year thereafter are appropriated from the general
fund to the commissioner of education for payment of school bond agricultural credit aid
under section 123B.555.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end The appropriations in deleted text beginparagraphdeleted text endnew text begin paragraphsnew text end (a) new text beginand (b) new text endmust be reduced by
the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 4.

new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2 property under section 273.13, subdivision 23,
except for (1) property consisting of the house, garage, and immediately surrounding one
acre of land of an agricultural homestead, and (2) property classified under section 273.13,
subdivision 23, paragraph (b), clause (4), is eligible to receive the credit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school bond agricultural
credit is equal to 36 percent of the property's eligible net tax capacity multiplied by the
school debt tax rate determined under section 275.08, subdivision 1b.
new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under this section within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted under section 275.29. Any prior year adjustments shall also be certified on
the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
and may make such changes as are deemed necessary, or return the certification to the
county auditor for correction. The credit under this section must be used to reduce the
school district net tax capacity-based property tax as provided in section 273.1393.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school
district to the commissioner of education, who shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Statewide adjusted net tax capacity equalizing factor. new text end

new text begin The statewide
adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total
adjusted net tax capacity of all school districts in the state for the year before the year
the levy is certified by the total number of adjusted pupil units in the state for the fiscal
year preceding the year the levy is certified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin$22,222 for fiscal year
2006, and
deleted text end $10,700 for fiscal deleted text beginyeardeleted text endnew text begin yearsnew text end 2007 and deleted text beginlaterdeleted text endnew text begin 2008, and $21,250 for fiscal year
2009 and later
new text end.

Sec. 7.

Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) deleted text beginFor fiscal year 2003 and later,deleted text end
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin$476,000deleted text endnew text begin 111 percent of
the referendum market value equalizing factor
new text end.

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin$270,000deleted text endnew text begin 60 percent of
the referendum market value equalizing factor
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 8.

Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Adjusted debt service net tax capacity. new text end

new text begin To calculate each district's
adjusted debt service net tax capacity, the commissioner of revenue must recompute
the amounts in this section using an alternative sales ratio comparing the sales price to
the estimated market value of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:


Subd. 1a.

Limited market value.

In the case of all property classified as
agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber,
or noncommercial seasonal residential recreational, the assessor shall compare the value
with the taxable portion of the value determined in the preceding assessment.

For assessment years 2004, 2005, and 2006, the amount of the increase shall not
exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
percent of the difference between the current assessment and the preceding assessment.

For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.

This limitation shall not apply to increases in value due to improvements. For
purposes of this subdivision, the term "assessment" means the value prior to any exclusion
under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year 2008
as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, new text beginexcluding
section new text begin123B.53new text end,
new text end124D, 125A, 126C, 127A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16, shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in section 273.123;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) homestead and agricultural credits as provided in section 273.1384;

new text begin (8) school bond agricultural credit as provided in section 123B.555;
new text end

deleted text begin (8)deleted text end new text begin(9) new text endtaconite homestead credit as provided in section 273.135; and

deleted text begin (9)deleted text end new text begin(10) new text endsupplemental homestead credit as provided in section 273.1391.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 11.

Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the case
of a town, or in the case of the state general tax, the final tax amount will be its proposed
tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
the notice must clearly state that each taxing authority, including regional library districts
established under section 134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the proposed budget and proposed or
final property tax levy, or, in case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of each taxing authority's
meeting, a telephone number for the taxing authority that taxpayers may call if they have
questions related to the notice, and an address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state
general tax, net of the residential and agricultural homestead credit under section 273.1384new text begin
and the school bond agricultural credit under section 123B.555
new text end, voter approved school
levy, other local school levy, and the sum of the special taxing districts, and as a total
of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that,
if approved by the voters, the tax amount may be higher than shown on the notice. In
the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed separately from the remaining
amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
Library Agency must be listed separately from the remaining amount of the city's levy.
In the case of Ramsey County, any amount levied under section 134.07 may be listed
separately from the remaining amount of the county's levy. In the case of a parcel where
tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
subject to the areawide tax must each be stated separately and not included in the sum of
the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
taxing districts" means the following taxing districts in the seven-county metropolitan area
that levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and shall be discussed at that
county's public hearing.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read:


Subd. 2.

School district deleted text beginin more than one countydeleted text endnew text begin levies; special requirementsnew text end.

new text begin(a)
new text endIn school districts lying in more than one county, the clerk shall certify the tax levied to the
auditor of the county in which the administrative offices of the school district are located.

new text begin (b) The clerk shall identify the portion of the school district levy that is levied for the
purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time
that the levy is certified under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read:


Subd. 1b.

Computation of tax rates.

new text begin(a) new text endThe amounts certified to be levied against
net tax capacity under section 275.07 by an individual local government unit shall be
divided by the total net tax capacity of all taxable properties within the local government
unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
multiplied by each property's net tax capacity shall be each property's net tax capacity tax
for that local government unit before reduction by any credits.

new text begin (b) The auditor shall also determine the school debt tax rate for each school district
equal to the school debt levy certified under section 275.07 divided by the total net tax
capacity of all taxable property within the district.
new text end

new text begin (c) new text endAny amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
each property's referendum market value shall be each property's new referendum tax
before reduction by any credits. For the purposes of this subdivision, "referendum market
value" means the market value as defined in section 126C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

ARTICLE 3

INCOME TAX

Section 1.

Minnesota Statutes 2006, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first deleted text begin$25,680deleted text endnew text begin $31,150new text end, 5.35 percent;

(2) On all over deleted text begin$25,680deleted text endnew text begin $31,150new text end, but not over deleted text begin$102,030deleted text endnew text begin $123,750new text end, 7.05 percent;

(3) On all over deleted text begin$102,030deleted text endnew text begin $123,750, but not over $400,000new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $400,000, 9 percentnew text end.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$17,570deleted text endnew text begin $21,310new text end, 5.35 percent;

(2) On all over deleted text begin$17,570deleted text endnew text begin $21,310new text end, but not over deleted text begin$57,710deleted text endnew text begin $69,990new text end, 7.05 percent;

(3) On all over deleted text begin$57,710deleted text endnew text begin $69,990, but not over $226,230new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $226,230, 9 percentnew text end.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$21,630deleted text endnew text begin $26,230new text end, 5.35 percent;

(2) On all over deleted text begin$21,630deleted text endnew text begin $26,230new text end, but not over deleted text begin$86,910deleted text endnew text begin $105,410new text end, 7.05 percent;

(3) On all over deleted text begin$86,910deleted text endnew text begin $105,410, but not over $340,720new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $340,720, 9 percentnew text end.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), and (9),
and reduced by the Minnesota assignable portion of the subtraction for United States
government interest under section 290.01, subdivision 19b, clause (1), and the subtractions
under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), and (16), after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), and (9), and reduced by the
amounts specified in section 290.01, subdivision 19b, clauses (1), (9), (10), (14), (15),
and (16).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 2.

Minnesota Statutes 2006, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, deleted text begin2000deleted text endnew text begin 2007new text end, the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin1999deleted text endnew text begin 2006new text end,
and before January 1, deleted text begin2001deleted text endnew text begin 2008new text end. The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word deleted text begin"1999"deleted text end new text begin"2006" new text endshall be substituted for the word "1992." For
deleted text begin 2001deleted text endnew text begin 2008new text end, the commissioner shall then determine the percent change from the 12 months
ending on August 31, deleted text begin1999deleted text endnew text begin 2006new text end, to the 12 months ending on August 31, deleted text begin2000deleted text endnew text begin 2007new text end, and
in each subsequent year, from the 12 months ending on August 31, deleted text begin1999deleted text endnew text begin 2006new text end, to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end