HF 2415

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; reducing the general education 
  1.3             tax rate; reducing class rates on certain properties; 
  1.4             providing a market value homestead credit; eliminating 
  1.5             the education homestead credit and education 
  1.6             agricultural credit; amending Minnesota Statutes 2000, 
  1.7             sections 126C.13, subdivision 1; 273.13, subdivisions 
  1.8             22, 23, 24, 25, 31; 273.1392; 273.1393; 276.04, 
  1.9             subdivision 2; 290A.03, subdivision 13; proposing 
  1.10            coding for new law in Minnesota Statutes, chapter 273; 
  1.11            repealing Minnesota Statutes 2000, sections 273.13, 
  1.12            subdivision 24a; 273.1382. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 126C.13, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
  1.17  commissioner must establish the general education tax rate by 
  1.18  July 1 of each year for levies payable in the following year.  
  1.19  The general education tax capacity rate must be a rate, rounded 
  1.20  up to the nearest hundredth of a percent, that, when applied to 
  1.21  the adjusted net tax capacity for all districts, raises the 
  1.22  amount specified in this subdivision.  The general education tax 
  1.23  rate must be the rate that raises $1,330,000,000 $1,230,000,000 
  1.24  for fiscal year 2001 2003, and later fiscal years.  The general 
  1.25  education tax rate may not be changed due to changes or 
  1.26  corrections made to a district's adjusted net tax capacity after 
  1.27  the tax rate has been established.  
  1.28     [EFFECTIVE DATE.] This section is effective for taxes 
  1.29  payable in 2002 and thereafter. 
  2.1      Sec. 2.  Minnesota Statutes 2000, section 273.13, 
  2.2   subdivision 22, is amended to read: 
  2.3      Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  2.4   23, real estate which is residential and used for homestead 
  2.5   purposes is class 1.  The market value of class 1a property must 
  2.6   be determined based upon the value of the house, garage, and 
  2.7   land.  
  2.8      The first $76,000 of market value of class 1a property has 
  2.9   a net class rate of one percent of its market value; and the 
  2.10  market value of class 1a property that exceeds $76,000 has a 
  2.11  class rate of 1.65 1.5 percent of its market value.  
  2.12     (b) Class 1b property includes homestead real estate or 
  2.13  homestead manufactured homes used for the purposes of a 
  2.14  homestead by 
  2.15     (1) any blind person, or the blind person and the blind 
  2.16  person's spouse; or 
  2.17     (2) any person, hereinafter referred to as "veteran," who: 
  2.18     (i) served in the active military or naval service of the 
  2.19  United States; and 
  2.20     (ii) is entitled to compensation under the laws and 
  2.21  regulations of the United States for permanent and total 
  2.22  service-connected disability due to the loss, or loss of use, by 
  2.23  reason of amputation, ankylosis, progressive muscular 
  2.24  dystrophies, or paralysis, of both lower extremities, such as to 
  2.25  preclude motion without the aid of braces, crutches, canes, or a 
  2.26  wheelchair; and 
  2.27     (iii) has acquired a special housing unit with special 
  2.28  fixtures or movable facilities made necessary by the nature of 
  2.29  the veteran's disability, or the surviving spouse of the 
  2.30  deceased veteran for as long as the surviving spouse retains the 
  2.31  special housing unit as a homestead; or 
  2.32     (3) any person who: 
  2.33     (i) is permanently and totally disabled and 
  2.34     (ii) receives 90 percent or more of total household income, 
  2.35  as defined in section 290A.03, subdivision 5, from 
  2.36     (A) aid from any state as a result of that disability; or 
  3.1      (B) supplemental security income for the disabled; or 
  3.2      (C) workers' compensation based on a finding of total and 
  3.3   permanent disability; or 
  3.4      (D) social security disability, including the amount of a 
  3.5   disability insurance benefit which is converted to an old age 
  3.6   insurance benefit and any subsequent cost of living increases; 
  3.7   or 
  3.8      (E) aid under the federal Railroad Retirement Act of 1937, 
  3.9   United States Code Annotated, title 45, section 228b(a)5; or 
  3.10     (F) a pension from any local government retirement fund 
  3.11  located in the state of Minnesota as a result of that 
  3.12  disability; or 
  3.13     (G) pension, annuity, or other income paid as a result of 
  3.14  that disability from a private pension or disability plan, 
  3.15  including employer, employee, union, and insurance plans and 
  3.16     (iii) has household income as defined in section 290A.03, 
  3.17  subdivision 5, of $50,000 or less; or 
  3.18     (4) any person who is permanently and totally disabled and 
  3.19  whose household income as defined in section 290A.03, 
  3.20  subdivision 5, is 275 percent or less of the federal poverty 
  3.21  level. 
  3.22     Property is classified and assessed under clause (4) only 
  3.23  if the government agency or income-providing source certifies, 
  3.24  upon the request of the homestead occupant, that the homestead 
  3.25  occupant satisfies the disability requirements of this paragraph.
  3.26     Property is classified and assessed pursuant to clause (1) 
  3.27  only if the commissioner of economic security certifies to the 
  3.28  assessor that the homestead occupant satisfies the requirements 
  3.29  of this paragraph.  
  3.30     Permanently and totally disabled for the purpose of this 
  3.31  subdivision means a condition which is permanent in nature and 
  3.32  totally incapacitates the person from working at an occupation 
  3.33  which brings the person an income.  The first $32,000 market 
  3.34  value of class 1b property has a net class rate of .45 percent 
  3.35  of its market value.  The remaining market value of class 1b 
  3.36  property has a net class rate using the rates for class 1 or 
  4.1   class 2a property, whichever is appropriate, of similar market 
  4.2   value.  
  4.3      (c) Class 1c property is commercial use real property that 
  4.4   abuts a lakeshore line and is devoted to temporary and seasonal 
  4.5   residential occupancy for recreational purposes but not devoted 
  4.6   to commercial purposes for more than 250 days in the year 
  4.7   preceding the year of assessment, and that includes a portion 
  4.8   used as a homestead by the owner, which includes a dwelling 
  4.9   occupied as a homestead by a shareholder of a corporation that 
  4.10  owns the resort or a partner in a partnership that owns the 
  4.11  resort, even if the title to the homestead is held by the 
  4.12  corporation or partnership.  For purposes of this clause, 
  4.13  property is devoted to a commercial purpose on a specific day if 
  4.14  any portion of the property, excluding the portion used 
  4.15  exclusively as a homestead, is used for residential occupancy 
  4.16  and a fee is charged for residential occupancy.  Class 1c 
  4.17  property has a class rate of one percent of total market value 
  4.18  with the following limitation:  the area of the property must 
  4.19  not exceed 100 feet of lakeshore footage for each cabin or 
  4.20  campsite located on the property up to a total of 800 feet and 
  4.21  500 feet in depth, measured away from the lakeshore.  If any 
  4.22  portion of the class 1c resort property is classified as class 
  4.23  4c under subdivision 25, the entire property must meet the 
  4.24  requirements of subdivision 25, paragraph (d), clause (1), to 
  4.25  qualify for class 1c treatment under this paragraph. 
  4.26     (d) Class 1d property includes structures that meet all of 
  4.27  the following criteria: 
  4.28     (1) the structure is located on property that is classified 
  4.29  as agricultural property under section 273.13, subdivision 23; 
  4.30     (2) the structure is occupied exclusively by seasonal farm 
  4.31  workers during the time when they work on that farm, and the 
  4.32  occupants are not charged rent for the privilege of occupying 
  4.33  the property, provided that use of the structure for storage of 
  4.34  farm equipment and produce does not disqualify the property from 
  4.35  classification under this paragraph; 
  4.36     (3) the structure meets all applicable health and safety 
  5.1   requirements for the appropriate season; and 
  5.2      (4) the structure is not salable as residential property 
  5.3   because it does not comply with local ordinances relating to 
  5.4   location in relation to streets or roads. 
  5.5      The market value of class 1d property has the same class 
  5.6   rates as class 1a property under paragraph (a). 
  5.7      [EFFECTIVE DATE.] This section is effective for taxes 
  5.8   payable in 2002 and thereafter. 
  5.9      Sec. 3.  Minnesota Statutes 2000, section 273.13, 
  5.10  subdivision 23, is amended to read: 
  5.11     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  5.12  land including any improvements that is homesteaded.  The market 
  5.13  value of the house and garage and immediately surrounding one 
  5.14  acre of land has the same class rates as class 1a property under 
  5.15  subdivision 22.  The value of the remaining land including 
  5.16  improvements up to $115,000 has a net class rate of 0.35 percent 
  5.17  of market value.  The value of class 2a property over $115,000 
  5.18  of market value up to and including $600,000 market value has a 
  5.19  net class rate of 0.8 .75 percent of market value.  The 
  5.20  remaining property over $600,000 market value has a class rate 
  5.21  of 1.20 one percent of market value. 
  5.22     (b) Class 2b property is (1) real estate, rural in 
  5.23  character and used exclusively for growing trees for timber, 
  5.24  lumber, and wood and wood products; (2) real estate that is not 
  5.25  improved with a structure and is used exclusively for growing 
  5.26  trees for timber, lumber, and wood and wood products, if the 
  5.27  owner has participated or is participating in a cost-sharing 
  5.28  program for afforestation, reforestation, or timber stand 
  5.29  improvement on that particular property, administered or 
  5.30  coordinated by the commissioner of natural resources; (3) real 
  5.31  estate that is nonhomestead agricultural land; or (4) a landing 
  5.32  area or public access area of a privately owned public use 
  5.33  airport.  Class 2b property has a net class rate of 1.20 one 
  5.34  percent of market value. 
  5.35     (c) Agricultural land as used in this section means 
  5.36  contiguous acreage of ten acres or more, used during the 
  6.1   preceding year for agricultural purposes.  "Agricultural 
  6.2   purposes" as used in this section means the raising or 
  6.3   cultivation of agricultural products or enrollment in the 
  6.4   Reinvest in Minnesota program under sections 103F.501 to 
  6.5   103F.535 or the federal Conservation Reserve Program as 
  6.6   contained in Public Law Number 99-198.  Contiguous acreage on 
  6.7   the same parcel, or contiguous acreage on an immediately 
  6.8   adjacent parcel under the same ownership, may also qualify as 
  6.9   agricultural land, but only if it is pasture, timber, waste, 
  6.10  unusable wild land, or land included in state or federal farm 
  6.11  programs.  Agricultural classification for property shall be 
  6.12  determined excluding the house, garage, and immediately 
  6.13  surrounding one acre of land, and shall not be based upon the 
  6.14  market value of any residential structures on the parcel or 
  6.15  contiguous parcels under the same ownership. 
  6.16     (d) Real estate, excluding the house, garage, and 
  6.17  immediately surrounding one acre of land, of less than ten acres 
  6.18  which is exclusively and intensively used for raising or 
  6.19  cultivating agricultural products, shall be considered as 
  6.20  agricultural land.  
  6.21     Land shall be classified as agricultural even if all or a 
  6.22  portion of the agricultural use of that property is the leasing 
  6.23  to, or use by another person for agricultural purposes. 
  6.24     Classification under this subdivision is not determinative 
  6.25  for qualifying under section 273.111. 
  6.26     The property classification under this section supersedes, 
  6.27  for property tax purposes only, any locally administered 
  6.28  agricultural policies or land use restrictions that define 
  6.29  minimum or maximum farm acreage. 
  6.30     (e) The term "agricultural products" as used in this 
  6.31  subdivision includes production for sale of:  
  6.32     (1) livestock, dairy animals, dairy products, poultry and 
  6.33  poultry products, fur-bearing animals, horticultural and nursery 
  6.34  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  6.35  vegetables, forage, grains, bees, and apiary products by the 
  6.36  owner; 
  7.1      (2) fish bred for sale and consumption if the fish breeding 
  7.2   occurs on land zoned for agricultural use; 
  7.3      (3) the commercial boarding of horses if the boarding is 
  7.4   done in conjunction with raising or cultivating agricultural 
  7.5   products as defined in clause (1); 
  7.6      (4) property which is owned and operated by nonprofit 
  7.7   organizations used for equestrian activities, excluding racing; 
  7.8      (5) game birds and waterfowl bred and raised for use on a 
  7.9   shooting preserve licensed under section 97A.115; 
  7.10     (6) insects primarily bred to be used as food for animals; 
  7.11  and 
  7.12     (7) trees, grown for sale as a crop, and not sold for 
  7.13  timber, lumber, wood, or wood products. 
  7.14     (f) If a parcel used for agricultural purposes is also used 
  7.15  for commercial or industrial purposes, including but not limited 
  7.16  to:  
  7.17     (1) wholesale and retail sales; 
  7.18     (2) processing of raw agricultural products or other goods; 
  7.19     (3) warehousing or storage of processed goods; and 
  7.20     (4) office facilities for the support of the activities 
  7.21  enumerated in clauses (1), (2), and (3), 
  7.22  the assessor shall classify the part of the parcel used for 
  7.23  agricultural purposes as class 1b, 2a, or 2b, whichever is 
  7.24  appropriate, and the remainder in the class appropriate to its 
  7.25  use.  The grading, sorting, and packaging of raw agricultural 
  7.26  products for first sale is considered an agricultural purpose.  
  7.27  A greenhouse or other building where horticultural or nursery 
  7.28  products are grown that is also used for the conduct of retail 
  7.29  sales must be classified as agricultural if it is primarily used 
  7.30  for the growing of horticultural or nursery products from seed, 
  7.31  cuttings, or roots and occasionally as a showroom for the retail 
  7.32  sale of those products.  Use of a greenhouse or building only 
  7.33  for the display of already grown horticultural or nursery 
  7.34  products does not qualify as an agricultural purpose.  
  7.35     The assessor shall determine and list separately on the 
  7.36  records the market value of the homestead dwelling and the one 
  8.1   acre of land on which that dwelling is located.  If any farm 
  8.2   buildings or structures are located on this homesteaded acre of 
  8.3   land, their market value shall not be included in this separate 
  8.4   determination.  
  8.5      (g) To qualify for classification under paragraph (b), 
  8.6   clause (4), a privately owned public use airport must be 
  8.7   licensed as a public airport under section 360.018.  For 
  8.8   purposes of paragraph (b), clause (4), "landing area" means that 
  8.9   part of a privately owned public use airport properly cleared, 
  8.10  regularly maintained, and made available to the public for use 
  8.11  by aircraft and includes runways, taxiways, aprons, and sites 
  8.12  upon which are situated landing or navigational aids.  A landing 
  8.13  area also includes land underlying both the primary surface and 
  8.14  the approach surfaces that comply with all of the following:  
  8.15     (i) the land is properly cleared and regularly maintained 
  8.16  for the primary purposes of the landing, taking off, and taxiing 
  8.17  of aircraft; but that portion of the land that contains 
  8.18  facilities for servicing, repair, or maintenance of aircraft is 
  8.19  not included as a landing area; 
  8.20     (ii) the land is part of the airport property; and 
  8.21     (iii) the land is not used for commercial or residential 
  8.22  purposes. 
  8.23  The land contained in a landing area under paragraph (b), clause 
  8.24  (4), must be described and certified by the commissioner of 
  8.25  transportation.  The certification is effective until it is 
  8.26  modified, or until the airport or landing area no longer meets 
  8.27  the requirements of paragraph (b), clause (4).  For purposes of 
  8.28  paragraph (b), clause (4), "public access area" means property 
  8.29  used as an aircraft parking ramp, apron, or storage hangar, or 
  8.30  an arrival and departure building in connection with the airport.
  8.31     [EFFECTIVE DATE.] This section is effective for taxes 
  8.32  payable in 2002 and thereafter. 
  8.33     Sec. 4.  Minnesota Statutes 2000, section 273.13, 
  8.34  subdivision 24, is amended to read: 
  8.35     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  8.36  property and utility real and personal property is class 3a.  
  9.1      (1) Except as otherwise provided, each parcel of 
  9.2   commercial, industrial, or utility real property has a class 
  9.3   rate of 2.4 1.5 percent of the first tier of market value, and 
  9.4   3.4 2.5 percent of the remaining market value.  In the case of 
  9.5   contiguous parcels of property owned by the same person or 
  9.6   entity, only the value equal to the first-tier value of the 
  9.7   contiguous parcels qualifies for the reduced class rate, except 
  9.8   that contiguous parcels owned by the same person or entity shall 
  9.9   be eligible for the first-tier value class rate on each separate 
  9.10  business operated by the owner of the property, provided the 
  9.11  business is housed in a separate structure.  For the purposes of 
  9.12  this subdivision, the first tier means the 
  9.13  first $150,000 $250,000 of market value.  Real property owned in 
  9.14  fee by a utility for transmission line right-of-way shall be 
  9.15  classified at the class rate for the higher tier.  
  9.16     For purposes of this subdivision, parcels are considered to 
  9.17  be contiguous even if they are separated from each other by a 
  9.18  road, street, waterway, or other similar intervening type of 
  9.19  property.  Connections between parcels that consist of power 
  9.20  lines or pipelines do not cause the parcels to be contiguous.  
  9.21  Property owners who have contiguous parcels of property that 
  9.22  constitute separate businesses that may qualify for the 
  9.23  first-tier class rate shall notify the assessor by July 1, for 
  9.24  treatment beginning in the following taxes payable year.  
  9.25     (2) Personal property that is:  (i) part of an electric 
  9.26  generation, transmission, or distribution system; or (ii) part 
  9.27  of a pipeline system transporting or distributing water, gas, 
  9.28  crude oil, or petroleum products; and (iii) not described in 
  9.29  clause (3), has a class rate as provided under clause (1) for 
  9.30  the first tier of market value and the remaining market value.  
  9.31  In the case of multiple parcels in one county that are owned by 
  9.32  one person or entity, only one first tier amount is eligible for 
  9.33  the reduced rate.  
  9.34     (3) The entire market value of personal property that is:  
  9.35  (i) tools, implements, and machinery of an electric generation, 
  9.36  transmission, or distribution system; (ii) tools, implements, 
 10.1   and machinery of a pipeline system transporting or distributing 
 10.2   water, gas, crude oil, or petroleum products; or (iii) the mains 
 10.3   and pipes used in the distribution of steam or hot or chilled 
 10.4   water for heating or cooling buildings, has a class rate as 
 10.5   provided under clause (1) for the remaining market value in 
 10.6   excess of the first tier. 
 10.7      (b) Employment property defined in section 469.166, during 
 10.8   the period provided in section 469.170, shall constitute class 
 10.9   3b.  The class rates for class 3b property are determined under 
 10.10  paragraph (a). 
 10.11     (c)(1) Subject to the limitations of clause (2), structures 
 10.12  which are (i) located on property classified as class 3a, (ii) 
 10.13  constructed under an initial building permit issued after 
 10.14  January 2, 1996, (iii) located in a transit zone as defined 
 10.15  under section 473.3915, subdivision 3, (iv) located within the 
 10.16  boundaries of a school district, and (v) not primarily used for 
 10.17  retail or transient lodging purposes, shall have a class rate 
 10.18  equal to the lesser of 2.975 percent or the class rate of the 
 10.19  second tier of the commercial property rate under paragraph (a) 
 10.20  on any portion of the market value that does not qualify for the 
 10.21  first tier class rate under paragraph (a).  As used in item (v), 
 10.22  a structure is primarily used for retail or transient lodging 
 10.23  purposes if over 50 percent of its square footage is used for 
 10.24  those purposes.  A class rate equal to the lesser of 2.975 
 10.25  percent or the class rate of the second tier of the commercial 
 10.26  property class rate under paragraph (a) shall also apply to 
 10.27  improvements to existing structures that meet the requirements 
 10.28  of items (i) to (v) if the improvements are constructed under an 
 10.29  initial building permit issued after January 2, 1996, even if 
 10.30  the remainder of the structure was constructed prior to January 
 10.31  2, 1996.  For the purposes of this paragraph, a structure shall 
 10.32  be considered to be located in a transit zone if any portion of 
 10.33  the structure lies within the zone.  If any property once 
 10.34  eligible for treatment under this paragraph ceases to remain 
 10.35  eligible due to revisions in transit zone boundaries, the 
 10.36  property shall continue to receive treatment under this 
 11.1   paragraph for a period of three years. 
 11.2      (2) This clause applies to any structure qualifying for the 
 11.3   transit zone reduced class rate under clause (1) on January 2, 
 11.4   1999, or any structure meeting any of the qualification criteria 
 11.5   in item (i) and otherwise qualifying for the transit zone 
 11.6   reduced class rate under clause (1).  Such a structure continues 
 11.7   to receive the transit zone reduced class rate until the 
 11.8   occurrence of one of the events in item (ii).  Property 
 11.9   qualifying under item (i)(D), that is located outside of a city 
 11.10  of the first class, qualifies for the transit zone reduced class 
 11.11  rate as provided in that item.  Property qualifying under item 
 11.12  (i)(E) qualifies for the transit zone reduced class rate as 
 11.13  provided in that item. 
 11.14     (i) A structure qualifies for the rate in this clause if it 
 11.15  is: 
 11.16     (A) property for which a building permit was issued before 
 11.17  December 31, 1998; or 
 11.18     (B) property for which a building permit was issued before 
 11.19  June 30, 2001, if: 
 11.20     (I) at least 50 percent of the land on which the structure 
 11.21  is to be built has been acquired or is the subject of signed 
 11.22  purchase agreements or signed options as of March 15, 1998, by 
 11.23  the entity that proposes construction of the project or an 
 11.24  affiliate of the entity; 
 11.25     (II) signed agreements have been entered into with one 
 11.26  entity or with affiliated entities to lease for the account of 
 11.27  the entity or affiliated entities at least 50 percent of the 
 11.28  square footage of the structure or the owner of the structure 
 11.29  will occupy at least 50 percent of the square footage of the 
 11.30  structure; and 
 11.31     (III) one of the following requirements is met: 
 11.32     the project proposer has submitted the completed data 
 11.33  portions of an environmental assessment worksheet by December 
 11.34  31, 1998; or 
 11.35     a notice of determination of adequacy of an environmental 
 11.36  impact statement has been published by April 1, 1999; or 
 12.1      an alternative urban areawide review has been completed by 
 12.2   April 1, 1999; or 
 12.3      (C) property for which a building permit is issued before 
 12.4   July 30, 1999, if: 
 12.5      (I) at least 50 percent of the land on which the structure 
 12.6   is to be built has been acquired or is the subject of signed 
 12.7   purchase agreements as of March 31, 1998, by the entity that 
 12.8   proposes construction of the project or an affiliate of the 
 12.9   entity; 
 12.10     (II) a signed agreement has been entered into between the 
 12.11  building developer and a tenant to lease for its own account at 
 12.12  least 200,000 square feet of space in the building; 
 12.13     (III) a signed letter of intent is entered into by July 1, 
 12.14  1998, between the building developer and the tenant to lease the 
 12.15  space for its own account; and 
 12.16     (IV) the environmental review process required by state law 
 12.17  was commenced by December 31, 1998; 
 12.18     (D) property for which an irrevocable letter of credit with 
 12.19  a housing and redevelopment authority was signed before December 
 12.20  31, 1998.  The structure shall receive the transit zone reduced 
 12.21  class rate during construction and for the duration of time that 
 12.22  the original tenants remain in the building.  Any unoccupied net 
 12.23  leasable square footage that is not leased within 36 months 
 12.24  after the certificate of occupancy has been issued for the 
 12.25  building shall not be eligible to receive the reduced class 
 12.26  rate.  This reduced class rate applies only if a qualifying 
 12.27  entity continues to own the property; 
 12.28     (E) property, located in a city of the first class, and for 
 12.29  which the building permits for the excavation, the parking ramp, 
 12.30  and the office tower were issued prior to April 1, 1999, shall 
 12.31  receive the reduced class rate during construction and for the 
 12.32  first five assessment years immediately following its initial 
 12.33  occupancy provided that, when completed, at least 25 percent of 
 12.34  the net leasable square footage must be occupied by a qualifying 
 12.35  entity each year during this time period.  In order to receive 
 12.36  the reduced class rate on the structure in any subsequent 
 13.1   assessment years, at least 50 percent of the rentable square 
 13.2   footage must be occupied by a qualifying entity.  This reduced 
 13.3   class rate applies only if a qualifying entity continues to own 
 13.4   the property. 
 13.5      (ii) A structure specified by this clause, other than a 
 13.6   structure qualifying under clause (i)(D) or (E), shall continue 
 13.7   to receive the transit zone reduced class rate until the 
 13.8   occurrence of one of the following events: 
 13.9      (A) if the structure upon initial occupancy will be owner 
 13.10  occupied by the entity initially constructing the structure or 
 13.11  an affiliated entity, the structure receives the reduced class 
 13.12  rate until the structure ceases to be at least 50 percent 
 13.13  occupied by the entity or an affiliated entity, provided, if the 
 13.14  portion of the structure occupied by that entity or an affiliate 
 13.15  of the entity is less than 85 percent, the transit zone class 
 13.16  rate reduction for the portion of structure not so occupied 
 13.17  terminates upon the leasing of such space to any nonaffiliated 
 13.18  entity; or 
 13.19     (B) if the structure is leased by a single entity or 
 13.20  affiliated entity at the time of initial occupancy, the 
 13.21  structure shall receive the reduced class rate until the 
 13.22  structure ceases to be at least 50 percent occupied by the 
 13.23  entity or an affiliated entity, provided, if the portion of the 
 13.24  structure occupied by that entity or an affiliate of the entity 
 13.25  is less than 85 percent, the transit zone class rate reduction 
 13.26  for the portion of structure not so occupied shall terminate 
 13.27  upon the leasing of such space to any nonaffiliated entity; or 
 13.28     (C) if the structure meets the criteria in item (i)(C), the 
 13.29  structure shall receive the reduced class rate until the 
 13.30  expiration of the initial lease term of the applicable tenants. 
 13.31     Percentages occupied or leased shall be determined based 
 13.32  upon net leasable square footage in the structure.  The assessor 
 13.33  shall allocate the value of the structure in the same fashion as 
 13.34  provided in the general law for portions of any structure 
 13.35  receiving and not receiving the transit tax class reduction as a 
 13.36  result of this clause. 
 14.1      (3) For purposes of paragraph (c), "qualifying entity" 
 14.2   means the entity owning the property on September 1, 2000, or an 
 14.3   affiliate of an entity that owned the property on September 1, 
 14.4   2000. 
 14.5      [EFFECTIVE DATE.] This section is effective for taxes 
 14.6   payable in 2002 and thereafter. 
 14.7      Sec. 5.  Minnesota Statutes 2000, section 273.13, 
 14.8   subdivision 25, is amended to read: 
 14.9      Subd. 25.  [CLASS 4.] (a) Class 4a is includes: 
 14.10     (1) residential real estate containing four two or more 
 14.11  units and used or held for use by the owner or by the tenants or 
 14.12  lessees of the owner as a residence for rental periods of 30 
 14.13  days or more. Class 4a also includes, other than seasonal 
 14.14  residential and recreational; 
 14.15     (2) hospitals licensed under sections 144.50 to 144.56, 
 14.16  other than hospitals exempt under section 272.02, and contiguous 
 14.17  property used for hospital purposes, without regard to whether 
 14.18  the property has been platted or subdivided.; Class 4a property 
 14.19  in a city with a population of 5,000 or less, that is (1) 
 14.20  located outside of the metropolitan area, as defined in section 
 14.21  473.121, subdivision 2, or outside any county contiguous to the 
 14.22  metropolitan area, and (2) whose city boundary is at least 15 
 14.23  miles from the boundary of any city with a population greater 
 14.24  than 5,000 has a class rate of 2.15 percent of market value.  
 14.25  All other class 4a property has a class rate of 2.4 percent of 
 14.26  market value.  For purposes of this paragraph, population has 
 14.27  the same meaning given in section 477A.011, subdivision 3. 
 14.28     (b) Class 4b includes: 
 14.29     (1) residential real estate containing less than four units 
 14.30  that does not qualify as class 4bb, other than seasonal 
 14.31  residential, and recreational; 
 14.32     (2) (3) manufactured homes not classified under any other 
 14.33  provision; 
 14.34     (3) (4) a dwelling, garage, and surrounding one acre of 
 14.35  property on a nonhomestead farm classified under subdivision 23, 
 14.36  paragraph (b) containing two or three units; and 
 15.1      (4) (5) unimproved property that is classified residential 
 15.2   as determined under subdivision 33.  
 15.3      Class 4b 4a property has a class rate of 1.65 1.5 percent 
 15.4   of market value.  
 15.5      (c) Class 4bb includes: 
 15.6      (1) nonhomestead residential real estate containing one 
 15.7   unit, other than seasonal residential, and recreational; and 
 15.8      (2) a single family dwelling, garage, and surrounding one 
 15.9   acre of property on a nonhomestead farm classified under 
 15.10  subdivision 23, paragraph (b). 
 15.11     Class 4bb has a class rate of 1.2 one percent on the first 
 15.12  $76,000 of market value and a class rate of 1.65 1.5 percent of 
 15.13  its market value that exceeds $76,000. 
 15.14     Property that has been classified as seasonal recreational 
 15.15  residential property at any time during which it has been owned 
 15.16  by the current owner or spouse of the current owner does not 
 15.17  qualify for class 4bb. 
 15.18     (d) Class 4c property includes: 
 15.19     (1) except as provided in subdivision 22, paragraph (c), 
 15.20  real property devoted to temporary and seasonal residential 
 15.21  occupancy for recreation purposes, including real property 
 15.22  devoted to temporary and seasonal residential occupancy for 
 15.23  recreation purposes and not devoted to commercial purposes for 
 15.24  more than 250 days in the year preceding the year of 
 15.25  assessment.  For purposes of this clause, property is devoted to 
 15.26  a commercial purpose on a specific day if any portion of the 
 15.27  property is used for residential occupancy, and a fee is charged 
 15.28  for residential occupancy.  In order for a property to be 
 15.29  classified as class 4c, seasonal recreational residential for 
 15.30  commercial purposes, at least 40 percent of the annual gross 
 15.31  lodging receipts related to the property must be from business 
 15.32  conducted during 90 consecutive days and either (i) at least 60 
 15.33  percent of all paid bookings by lodging guests during the year 
 15.34  must be for periods of at least two consecutive nights; or (ii) 
 15.35  at least 20 percent of the annual gross receipts must be from 
 15.36  charges for rental of fish houses, boats and motors, 
 16.1   snowmobiles, downhill or cross-country ski equipment, or charges 
 16.2   for marina services, launch services, and guide services, or the 
 16.3   sale of bait and fishing tackle.  For purposes of this 
 16.4   determination, a paid booking of five or more nights shall be 
 16.5   counted as two bookings.  Class 4c also includes commercial use 
 16.6   real property used exclusively for recreational purposes in 
 16.7   conjunction with class 4c property devoted to temporary and 
 16.8   seasonal residential occupancy for recreational purposes, up to 
 16.9   a total of two acres, provided the property is not devoted to 
 16.10  commercial recreational use for more than 250 days in the year 
 16.11  preceding the year of assessment and is located within two miles 
 16.12  of the class 4c property with which it is used.  Class 4c 
 16.13  property classified in this clause also includes the remainder 
 16.14  of class 1c resorts provided that the entire property including 
 16.15  that portion of the property classified as class 1c also meets 
 16.16  the requirements for class 4c under this clause; otherwise the 
 16.17  entire property is classified as class 3.  Owners of real 
 16.18  property devoted to temporary and seasonal residential occupancy 
 16.19  for recreation purposes and all or a portion of which was 
 16.20  devoted to commercial purposes for not more than 250 days in the 
 16.21  year preceding the year of assessment desiring classification as 
 16.22  class 1c or 4c, must submit a declaration to the assessor 
 16.23  designating the cabins or units occupied for 250 days or less in 
 16.24  the year preceding the year of assessment by January 15 of the 
 16.25  assessment year.  Those cabins or units and a proportionate 
 16.26  share of the land on which they are located will be designated 
 16.27  class 1c or 4c as otherwise provided.  The remainder of the 
 16.28  cabins or units and a proportionate share of the land on which 
 16.29  they are located will be designated as class 3a.  The owner of 
 16.30  property desiring designation as class 1c or 4c property must 
 16.31  provide guest registers or other records demonstrating that the 
 16.32  units for which class 1c or 4c designation is sought were not 
 16.33  occupied for more than 250 days in the year preceding the 
 16.34  assessment if so requested.  The portion of a property operated 
 16.35  as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
 16.36  nonresidential facility operated on a commercial basis not 
 17.1   directly related to temporary and seasonal residential occupancy 
 17.2   for recreation purposes shall not qualify for class 1c or 4c; 
 17.3      (2) qualified property used as a golf course if: 
 17.4      (i) it is open to the public on a daily fee basis.  It may 
 17.5   charge membership fees or dues, but a membership fee may not be 
 17.6   required in order to use the property for golfing, and its green 
 17.7   fees for golfing must be comparable to green fees typically 
 17.8   charged by municipal courses; and 
 17.9      (ii) it meets the requirements of section 273.112, 
 17.10  subdivision 3, paragraph (d). 
 17.11     A structure used as a clubhouse, restaurant, or place of 
 17.12  refreshment in conjunction with the golf course is classified as 
 17.13  class 3a property; 
 17.14     (3) real property up to a maximum of one acre of land owned 
 17.15  by a nonprofit community service oriented organization; provided 
 17.16  that the property is not used for a revenue-producing activity 
 17.17  for more than six days in the calendar year preceding the year 
 17.18  of assessment and the property is not used for residential 
 17.19  purposes on either a temporary or permanent basis.  For purposes 
 17.20  of this clause, a "nonprofit community service oriented 
 17.21  organization" means any corporation, society, association, 
 17.22  foundation, or institution organized and operated exclusively 
 17.23  for charitable, religious, fraternal, civic, or educational 
 17.24  purposes, and which is exempt from federal income taxation 
 17.25  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 17.26  Revenue Code of 1986, as amended through December 31, 1990.  For 
 17.27  purposes of this clause, "revenue-producing activities" shall 
 17.28  include but not be limited to property or that portion of the 
 17.29  property that is used as an on-sale intoxicating liquor or 3.2 
 17.30  percent malt liquor establishment licensed under chapter 340A, a 
 17.31  restaurant open to the public, bowling alley, a retail store, 
 17.32  gambling conducted by organizations licensed under chapter 349, 
 17.33  an insurance business, or office or other space leased or rented 
 17.34  to a lessee who conducts a for-profit enterprise on the 
 17.35  premises.  Any portion of the property which is used for 
 17.36  revenue-producing activities for more than six days in the 
 18.1   calendar year preceding the year of assessment shall be assessed 
 18.2   as class 3a.  The use of the property for social events open 
 18.3   exclusively to members and their guests for periods of less than 
 18.4   24 hours, when an admission is not charged nor any revenues are 
 18.5   received by the organization shall not be considered a 
 18.6   revenue-producing activity; 
 18.7      (4) post-secondary student housing of not more than one 
 18.8   acre of land that is owned by a nonprofit corporation organized 
 18.9   under chapter 317A and is used exclusively by a student 
 18.10  cooperative, sorority, or fraternity for on-campus housing or 
 18.11  housing located within two miles of the border of a college 
 18.12  campus; 
 18.13     (5) manufactured home parks as defined in section 327.14, 
 18.14  subdivision 3; 
 18.15     (6) real property that is actively and exclusively devoted 
 18.16  to indoor fitness, health, social, recreational, and related 
 18.17  uses, is owned and operated by a not-for-profit corporation, and 
 18.18  is located within the metropolitan area as defined in section 
 18.19  473.121, subdivision 2; and 
 18.20     (7) a leased or privately owned noncommercial aircraft 
 18.21  storage hangar not exempt under section 272.01, subdivision 2, 
 18.22  and the land on which it is located, provided that: 
 18.23     (i) the land is on an airport owned or operated by a city, 
 18.24  town, county, metropolitan airports commission, or group 
 18.25  thereof; and 
 18.26     (ii) the land lease, or any ordinance or signed agreement 
 18.27  restricting the use of the leased premise, prohibits commercial 
 18.28  activity performed at the hangar. 
 18.29     If a hangar classified under this clause is sold after June 
 18.30  30, 2000, a bill of sale must be filed by the new owner with the 
 18.31  assessor of the county where the property is located within 60 
 18.32  days of the sale. 
 18.33     Class 4c property has a class rate of 1.65 1.5 percent of 
 18.34  market value, except that (i) each parcel of seasonal 
 18.35  residential recreational property not used for commercial 
 18.36  purposes has the same class rates as class 4bb one property, (ii)
 19.1   manufactured home parks assessed under clause (5) have the same 
 19.2   class rate as class 4b 4a property, and (iii) property described 
 19.3   in paragraph (d), clause (4), has the same class rate as the 
 19.4   rate applicable to the first tier of class 4bb nonhomestead 
 19.5   residential real estate under paragraph (c).  
 19.6      (e) Class 4d property is qualifying low-income rental 
 19.7   housing certified to the assessor by the housing finance agency 
 19.8   under sections 273.126 and 462A.071.  Class 4d includes land in 
 19.9   proportion to the total market value of the building that is 
 19.10  qualifying low-income rental housing.  For all properties 
 19.11  qualifying as class 4d, the market value determined by the 
 19.12  assessor must be based on the normal approach to value using 
 19.13  normal unrestricted rents. 
 19.14     Class 4d property has a class rate of one percent of market 
 19.15  value.  
 19.16     [EFFECTIVE DATE.] This section is effective for taxes 
 19.17  payable in 2002 and thereafter. 
 19.18     Sec. 6.  Minnesota Statutes 2000, section 273.13, 
 19.19  subdivision 31, is amended to read: 
 19.20     Subd. 31.  [CLASS 5.] Class 5 property includes:  
 19.21     (1) unmined iron ore and low-grade iron-bearing formations 
 19.22  as defined in section 273.14; and 
 19.23     (2) all other property not otherwise classified. 
 19.24     Class 5 property has a class rate of 3.4 2.5 percent of 
 19.25  market value. 
 19.26     [EFFECTIVE DATE.] This section is effective for taxes 
 19.27  payable in 2002 and thereafter. 
 19.28     Sec. 7.  [273.1384] [MARKET VALUE HOMESTEAD CREDITS.] 
 19.29     Subdivision 1.  [RESIDENTIAL HOMESTEAD MARKET VALUE 
 19.30  CREDIT.] Each county auditor shall determine a residential 
 19.31  homestead market value credit for each class 1a, 1b, 1c, and 2a 
 19.32  homestead property within the county.  The credit is equal to 
 19.33  0.5 percent of the market value of the property.  The amount of 
 19.34  homestead credit for a homestead may not exceed $525.  In the 
 19.35  case of an agricultural or resort homestead, only the market 
 19.36  value of the house, garage, and immediately surrounding one acre 
 20.1   of land is eligible in determining the property's residential 
 20.2   homestead market value credit. 
 20.3      Subd. 2.  [AGRICULTURAL LAND MARKET VALUE CREDIT.] Except 
 20.4   as provided in subdivision 1, property classified as class 2a 
 20.5   agricultural homestead is eligible for an agricultural market 
 20.6   value credit.  The credit is equal to 0.25 percent of the 
 20.7   property's market value. 
 20.8      Property classified as class 2b nonhomestead agricultural 
 20.9   land is eligible for a credit equal to 0.2 percent of the 
 20.10  property's market value. 
 20.11     Subd. 3.  [CREDIT REIMBURSEMENTS.] The county auditor shall 
 20.12  determine the tax reductions allowed under this section within 
 20.13  the county for each taxes payable year and shall certify that 
 20.14  amount to the commissioner of revenue as a part of the abstracts 
 20.15  of tax lists submitted by the county auditors under section 
 20.16  275.29.  Any prior year adjustments shall also be certified on 
 20.17  the abstracts of tax lists.  The commissioner shall review the 
 20.18  certifications for accuracy, and may make such changes as are 
 20.19  deemed necessary or return the certification to the county 
 20.20  auditor for correction.  
 20.21     Subd. 4.  [PAYMENT.] (a) The commissioner of revenue shall 
 20.22  reimburse each local taxing jurisdiction, other than school 
 20.23  districts, for the tax reductions granted under this section in 
 20.24  two equal installments on August 31 and December 15 of the taxes 
 20.25  payable year for which the reductions are granted, including in 
 20.26  each payment the prior year adjustments certified on the 
 20.27  abstracts for that taxes payable year. 
 20.28     (b) The commissioner of revenue shall certify the total of 
 20.29  the tax reductions granted under this section for each taxes 
 20.30  payable year within each school district to the commissioner of 
 20.31  the department of children, families, and learning and the 
 20.32  commissioner of children, families, and learning shall pay the 
 20.33  reimbursement amounts to each school district under the 
 20.34  provisions of section 273.1392. 
 20.35     Subd. 5.  [APPROPRIATION.] An amount sufficient to make the 
 20.36  payments required by this section to taxing jurisdictions other 
 21.1   than school districts is annually appropriated from the general 
 21.2   fund to the commissioner of revenue.  An amount sufficient to 
 21.3   make the payments required by this section for school districts 
 21.4   is annually appropriated from the general fund to the 
 21.5   commissioner of children, families, and learning. 
 21.6      [EFFECTIVE DATE.] This section is effective for taxes, 
 21.7   credits, and reimbursements payable in 2002 and thereafter. 
 21.8      Sec. 8.  Minnesota Statutes 2000, section 273.1392, is 
 21.9   amended to read: 
 21.10     273.1392 [PAYMENT; SCHOOL DISTRICTS.] 
 21.11     The amounts of conservation tax credits under section 
 21.12  273.119; disaster or emergency reimbursement under section 
 21.13  273.123; attached machinery aid under section 273.138; homestead 
 21.14  credit under section 273.13 market value credits under section 
 21.15  273.1384; aids and credits under section 273.1398; wetlands 
 21.16  reimbursement under section 275.295; enterprise zone property 
 21.17  credit payments under section 469.171; and metropolitan 
 21.18  agricultural preserve reduction under section 473H.10 for school 
 21.19  districts, shall be certified to the department of children, 
 21.20  families, and learning by the department of revenue.  The 
 21.21  amounts so certified shall be paid according to section 127A.45, 
 21.22  subdivisions 9 and 13. 
 21.23     [EFFECTIVE DATE.] This section is effective for aids and 
 21.24  credits payable in 2002 and thereafter. 
 21.25     Sec. 9.  Minnesota Statutes 2000, section 273.1393, is 
 21.26  amended to read: 
 21.27     273.1393 [COMPUTATION OF NET PROPERTY TAXES.] 
 21.28     Notwithstanding any other provisions to the contrary, "net" 
 21.29  property taxes are determined by subtracting the credits in the 
 21.30  order listed from the gross tax:  
 21.31     (1) disaster credit as provided in section 273.123; 
 21.32     (2) powerline credit as provided in section 273.42; 
 21.33     (3) agricultural preserves credit as provided in section 
 21.34  473H.10; 
 21.35     (4) enterprise zone credit as provided in section 469.171; 
 21.36     (5) disparity reduction credit; 
 22.1      (6) conservation tax credit as provided in section 273.119; 
 22.2      (7) education residential homestead market value credit and 
 22.3   agricultural market value credit as provided in section 273.1382 
 22.4   273.1384; 
 22.5      (8) taconite homestead credit as provided in section 
 22.6   273.135; and 
 22.7      (9) supplemental homestead credit as provided in section 
 22.8   273.1391.  
 22.9      The combination of all property tax credits must not exceed 
 22.10  the gross tax amount.  
 22.11     [EFFECTIVE DATE.] This section is effective for aids and 
 22.12  credits payable in 2002 and thereafter. 
 22.13     Sec. 10.  Minnesota Statutes 2000, section 276.04, 
 22.14  subdivision 2, is amended to read: 
 22.15     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 22.16  shall provide for the printing of the tax statements.  The 
 22.17  commissioner of revenue shall prescribe the form of the property 
 22.18  tax statement and its contents.  The statement must contain a 
 22.19  tabulated statement of the dollar amount due to each taxing 
 22.20  authority and the amount of the state determined school tax from 
 22.21  the parcel of real property for which a particular tax statement 
 22.22  is prepared.  The dollar amounts attributable to the county, the 
 22.23  state determined school tax, the voter approved school tax, the 
 22.24  other local school tax, the township or municipality, and the 
 22.25  total of the metropolitan special taxing districts as defined in 
 22.26  section 275.065, subdivision 3, paragraph (i), must be 
 22.27  separately stated.  The amounts due all other special taxing 
 22.28  districts, if any, may be aggregated.  The amount of the tax on 
 22.29  homesteads qualifying under the senior citizens' property tax 
 22.30  deferral program under chapter 290B is the total amount of 
 22.31  property tax before subtraction of the deferred property tax 
 22.32  amount.  The amount of the tax on contamination value imposed 
 22.33  under sections 270.91 to 270.98, if any, must also be separately 
 22.34  stated.  The dollar amounts, including the dollar amount of any 
 22.35  special assessments, may be rounded to the nearest even whole 
 22.36  dollar.  For purposes of this section whole odd-numbered dollars 
 23.1   may be adjusted to the next higher even-numbered dollar.  The 
 23.2   amount of market value excluded under section 273.11, 
 23.3   subdivision 16, if any, must also be listed on the tax 
 23.4   statement.  The statement shall include the following sentences, 
 23.5   printed in upper case letters in boldface print:  "EVEN THOUGH 
 23.6   THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX 
 23.7   REVENUES, IT SETS THE AMOUNT OF THE STATE-DETERMINED SCHOOL TAX 
 23.8   LEVY.  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY 
 23.9   PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT." 
 23.10     (b) The property tax statements for manufactured homes and 
 23.11  sectional structures taxed as personal property shall contain 
 23.12  the same information that is required on the tax statements for 
 23.13  real property.  
 23.14     (c) Real and personal property tax statements must contain 
 23.15  the following information in the order given in this paragraph.  
 23.16  The information must contain the current year tax information in 
 23.17  the right column with the corresponding information for the 
 23.18  previous year in a column on the left: 
 23.19     (1) the property's estimated market value under section 
 23.20  273.11, subdivision 1; 
 23.21     (2) the property's taxable market value after reductions 
 23.22  under section 273.11, subdivisions 1a and 16; 
 23.23     (3) the property's gross tax, calculated by adding the 
 23.24  property's total property tax to the sum of the aids enumerated 
 23.25  in clause (4); 
 23.26     (4) a total of the following aids: 
 23.27     (i) education aids payable under chapters 122A, 123A, 123B, 
 23.28  124D, 125A, 126C, and 127A; 
 23.29     (ii) local government aids for cities, towns, and counties 
 23.30  under chapter 477A; 
 23.31     (iii) disparity reduction aid under section 273.1398; and 
 23.32     (iv) homestead and agricultural credit aid under section 
 23.33  273.1398; 
 23.34     (5) for homestead residential and agricultural properties, 
 23.35  the education market value homestead credit credits under 
 23.36  section 273.1382 273.1384; 
 24.1      (6) any credits received under sections 273.119; 273.123; 
 24.2   273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 24.3   473H.10, except that the amount of credit received under section 
 24.4   273.135 must be separately stated and identified as "taconite 
 24.5   tax relief"; and 
 24.6      (7) the net tax payable in the manner required in paragraph 
 24.7   (a). 
 24.8      (d) If the county uses envelopes for mailing property tax 
 24.9   statements and if the county agrees, a taxing district may 
 24.10  include a notice with the property tax statement notifying 
 24.11  taxpayers when the taxing district will begin its budget 
 24.12  deliberations for the current year, and encouraging taxpayers to 
 24.13  attend the hearings.  If the county allows notices to be 
 24.14  included in the envelope containing the property tax statement, 
 24.15  and if more than one taxing district relative to a given 
 24.16  property decides to include a notice with the tax statement, the 
 24.17  county treasurer or auditor must coordinate the process and may 
 24.18  combine the information on a single announcement.  
 24.19     The commissioner of revenue shall certify to the county 
 24.20  auditor the actual or estimated aids enumerated in clause (4) 
 24.21  that local governments will receive in the following year.  The 
 24.22  commissioner must certify this amount by January 1 of each year. 
 24.23     [EFFECTIVE DATE.] This section is effective for taxes 
 24.24  payable in 2002 and thereafter. 
 24.25     Sec. 11.  Minnesota Statutes 2000, section 290A.03, 
 24.26  subdivision 13, is amended to read: 
 24.27     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 24.28  payable" means the property tax exclusive of special 
 24.29  assessments, penalties, and interest payable on a claimant's 
 24.30  homestead after deductions made under sections 273.135, 273.1382 
 24.31  273.1384, 273.1391, 273.42, subdivision 2, and any other state 
 24.32  paid property tax credits in any calendar year.  In the case of 
 24.33  a claimant who makes ground lease payments, "property taxes 
 24.34  payable" includes the amount of the payments directly 
 24.35  attributable to the property taxes assessed against the parcel 
 24.36  on which the house is located.  No apportionment or reduction of 
 25.1   the "property taxes payable" shall be required for the use of a 
 25.2   portion of the claimant's homestead for a business purpose if 
 25.3   the claimant does not deduct any business depreciation expenses 
 25.4   for the use of a portion of the homestead in the determination 
 25.5   of federal adjusted gross income.  For homesteads which are 
 25.6   manufactured homes as defined in section 273.125, subdivision 8, 
 25.7   and for homesteads which are park trailers taxed as manufactured 
 25.8   homes under section 168.012, subdivision 9, "property taxes 
 25.9   payable" shall also include 19 percent of the gross rent paid in 
 25.10  the preceding year for the site on which the homestead is 
 25.11  located.  When a homestead is owned by two or more persons as 
 25.12  joint tenants or tenants in common, such tenants shall determine 
 25.13  between them which tenant may claim the property taxes payable 
 25.14  on the homestead.  If they are unable to agree, the matter shall 
 25.15  be referred to the commissioner of revenue whose decision shall 
 25.16  be final.  Property taxes are considered payable in the year 
 25.17  prescribed by law for payment of the taxes. 
 25.18     In the case of a claim relating to "property taxes 
 25.19  payable," the claimant must have owned and occupied the 
 25.20  homestead on January 2 of the year in which the tax is payable 
 25.21  and (i) the property must have been classified as homestead 
 25.22  property pursuant to section 273.124, on or before December 15 
 25.23  of the assessment year to which the "property taxes payable" 
 25.24  relate; or (ii) the claimant must provide documentation from the 
 25.25  local assessor that application for homestead classification has 
 25.26  been made on or before December 15 of the year in which the 
 25.27  "property taxes payable" were payable and that the assessor has 
 25.28  approved the application. 
 25.29     [EFFECTIVE DATE.] This section is effective beginning with 
 25.30  refunds based on property taxes payable in 2002. 
 25.31     Sec. 12.  [REPEALER.] 
 25.32     Minnesota Statutes 2000, sections 273.13, subdivision 24a; 
 25.33  and 273.1382, are repealed effective for taxes and aids payable 
 25.34  in 2002 and thereafter.