HF 2711

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; changing 
  1.3             classification rates; providing an education homestead 
  1.4             credit; requiring certain information on property tax 
  1.5             statement; providing a property tax refund for persons 
  1.6             over 65; requiring referenda to increase levies in 
  1.7             certain instances; providing for a state tax refund in 
  1.8             certain instances; limiting the general education levy 
  1.9             growth rate; appropriating money; amending Minnesota 
  1.10            Statutes 1994, sections 16A.102, by adding a 
  1.11            subdivision; 273.13, subdivisions 22, 23, and 31; 
  1.12            273.1398, subdivision 1; 275.065, subdivision 5a; 
  1.13            275.07, by adding subdivisions; and 290A.04, by adding 
  1.14            a subdivision; Minnesota Statutes 1995 Supplement, 
  1.15            sections 124A.23, subdivision 1; 273.13, subdivisions 
  1.16            24 and 25; 275.065, subdivisions 1, 3, and 6; and 
  1.17            276.04, subdivision 2; proposing coding for new law in 
  1.18            Minnesota Statutes, chapters 273; and 275; repealing 
  1.19            Minnesota Statutes 1994, section 273.13, subdivision 
  1.20            32. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22                             ARTICLE 1 
  1.23                    PROPERTY TAX CLASSIFICATION 
  1.24     Section 1.  Minnesota Statutes 1994, section 273.13, 
  1.25  subdivision 22, is amended to read: 
  1.26     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  1.27  23, real estate which is residential and used for homestead 
  1.28  purposes is class 1.  The market value of class 1a property must 
  1.29  be determined based upon the value of the house, garage, and 
  1.30  land.  
  1.31     The first $72,000 of market value of class 1a property has 
  1.32  a net class rate of one percent of its market value and a gross 
  1.33  class rate of 2.17 percent of its market value.  For taxes 
  2.1   payable in 1992, the market value of class 1a property that 
  2.2   exceeds $72,000 but does not exceed $115,000 has a class rate of 
  2.3   two percent of its market value; and the market value of class 
  2.4   1a property that exceeds $115,000 has a class rate of 2.5 
  2.5   percent of its market value.  For taxes payable in 1993 and 
  2.6   thereafter, The market value of class 1a property that exceeds 
  2.7   $72,000 has a class rate of two one percent. 
  2.8      (b) Class 1b property includes homestead real estate or 
  2.9   homestead manufactured homes used for the purposes of a 
  2.10  homestead by 
  2.11     (1) any blind person, or the blind person and the blind 
  2.12  person's spouse; or 
  2.13     (2) any person, hereinafter referred to as "veteran," who: 
  2.14     (i) served in the active military or naval service of the 
  2.15  United States; and 
  2.16     (ii) is entitled to compensation under the laws and 
  2.17  regulations of the United States for permanent and total 
  2.18  service-connected disability due to the loss, or loss of use, by 
  2.19  reason of amputation, ankylosis, progressive muscular 
  2.20  dystrophies, or paralysis, of both lower extremities, such as to 
  2.21  preclude motion without the aid of braces, crutches, canes, or a 
  2.22  wheelchair; and 
  2.23     (iii) has acquired a special housing unit with special 
  2.24  fixtures or movable facilities made necessary by the nature of 
  2.25  the veteran's disability, or the surviving spouse of the 
  2.26  deceased veteran for as long as the surviving spouse retains the 
  2.27  special housing unit as a homestead; or 
  2.28     (3) any person who: 
  2.29     (i) is permanently and totally disabled and 
  2.30     (ii) receives 90 percent or more of total income from 
  2.31     (A) aid from any state as a result of that disability; or 
  2.32     (B) supplemental security income for the disabled; or 
  2.33     (C) workers' compensation based on a finding of total and 
  2.34  permanent disability; or 
  2.35     (D) social security disability, including the amount of a 
  2.36  disability insurance benefit which is converted to an old age 
  3.1   insurance benefit and any subsequent cost of living increases; 
  3.2   or 
  3.3      (E) aid under the federal Railroad Retirement Act of 1937, 
  3.4   United States Code Annotated, title 45, section 228b(a)5; or 
  3.5      (F) a pension from any local government retirement fund 
  3.6   located in the state of Minnesota as a result of that 
  3.7   disability; or 
  3.8      (4) any person who is permanently and totally disabled and 
  3.9   whose household income as defined in section 290A.03, 
  3.10  subdivision 5, is 150 percent or less of the federal poverty 
  3.11  level. 
  3.12     Property is classified and assessed under clause (4) only 
  3.13  if the government agency or income-providing source certifies, 
  3.14  upon the request of the homestead occupant, that the homestead 
  3.15  occupant satisfies the disability requirements of this paragraph.
  3.16     Property is classified and assessed pursuant to clause (1) 
  3.17  only if the commissioner of economic security certifies to the 
  3.18  assessor that the homestead occupant satisfies the requirements 
  3.19  of this paragraph.  
  3.20     Permanently and totally disabled for the purpose of this 
  3.21  subdivision means a condition which is permanent in nature and 
  3.22  totally incapacitates the person from working at an occupation 
  3.23  which brings the person an income.  The first $32,000 market 
  3.24  value of class 1b property has a net class rate of .45 .30 
  3.25  percent of its market value and a gross class rate of .87 
  3.26  percent of its market value.  The remaining market value of 
  3.27  class 1b property has a gross or net class rate using the rates 
  3.28  for class 1 or class 2a property, whichever is appropriate, of 
  3.29  similar market value.  
  3.30     (c) Class 1c property is commercial use real property that 
  3.31  abuts a lakeshore line and is devoted to temporary and seasonal 
  3.32  residential occupancy for recreational purposes but not devoted 
  3.33  to commercial purposes for more than 250 days in the year 
  3.34  preceding the year of assessment, and that includes a portion 
  3.35  used as a homestead by the owner, which includes a dwelling 
  3.36  occupied as a homestead by a shareholder of a corporation that 
  4.1   owns the resort or a partner in a partnership that owns the 
  4.2   resort, even if the title to the homestead is held by the 
  4.3   corporation or partnership.  For purposes of this clause, 
  4.4   property is devoted to a commercial purpose on a specific day if 
  4.5   any portion of the property, excluding the portion used 
  4.6   exclusively as a homestead, is used for residential occupancy 
  4.7   and a fee is charged for residential occupancy.  Class 1c 
  4.8   property has a class rate of one .66 percent of total market 
  4.9   value for taxes payable in 1993 and thereafter with the 
  4.10  following limitation:  the area of the property must not exceed 
  4.11  100 feet of lakeshore footage for each cabin or campsite located 
  4.12  on the property up to a total of 800 feet and 500 feet in depth, 
  4.13  measured away from the lakeshore.  
  4.14     Sec. 2.  Minnesota Statutes 1994, section 273.13, 
  4.15  subdivision 23, is amended to read: 
  4.16     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  4.17  land including any improvements that is homesteaded.  The market 
  4.18  value of the house and garage and immediately surrounding one 
  4.19  acre of land has the same class rates as class 1a property under 
  4.20  subdivision 22.  The value of the remaining land including 
  4.21  improvements up to $115,000 has a net class rate of .45 .30 
  4.22  percent of market value and a gross class rate of 1.75 percent 
  4.23  of market value.  The remaining value of class 2a property over 
  4.24  $115,000 of market value that does not exceed 320 acres has a 
  4.25  net class rate of one .67 percent of market value, and a gross 
  4.26  class rate of 2.25 percent of market value.  The remaining 
  4.27  property over the $115,000 market value in excess of 320 acres 
  4.28  has a class rate of 1.5 one percent of market value, and a gross 
  4.29  class rate of 2.25 percent of market value.  
  4.30     (b) Class 2b property is (1) real estate, rural in 
  4.31  character and used exclusively for growing trees for timber, 
  4.32  lumber, and wood and wood products; (2) real estate that is not 
  4.33  improved with a structure and is used exclusively for growing 
  4.34  trees for timber, lumber, and wood and wood products, if the 
  4.35  owner has participated or is participating in a cost-sharing 
  4.36  program for afforestation, reforestation, or timber stand 
  5.1   improvement on that particular property, administered or 
  5.2   coordinated by the commissioner of natural resources; (3) real 
  5.3   estate that is nonhomestead agricultural land; or (4) a landing 
  5.4   area or public access area of a privately owned public use 
  5.5   airport.  Class 2b property has a net class rate of 1.5 one 
  5.6   percent of market value, and a gross class rate of 2.25 percent 
  5.7   of market value.  
  5.8      (c) Agricultural land as used in this section means 
  5.9   contiguous acreage of ten acres or more, primarily used during 
  5.10  the preceding year for agricultural purposes.  Agricultural use 
  5.11  may include pasture, timber, waste, unusable wild land, and land 
  5.12  included in state or federal farm programs.  "Agricultural 
  5.13  purposes" as used in this section means the raising or 
  5.14  cultivation of agricultural products.  
  5.15     (d) Real estate of less than ten acres used principally for 
  5.16  raising or cultivating agricultural products, shall be 
  5.17  considered as agricultural land, if it is not used primarily for 
  5.18  residential purposes.  
  5.19     (e) The term "agricultural products" as used in this 
  5.20  subdivision includes:  
  5.21     (1) livestock, dairy animals, dairy products, poultry and 
  5.22  poultry products, fur-bearing animals, horticultural and nursery 
  5.23  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  5.24  vegetables, forage, grains, bees, and apiary products by the 
  5.25  owner; 
  5.26     (2) fish bred for sale and consumption if the fish breeding 
  5.27  occurs on land zoned for agricultural use; 
  5.28     (3) the commercial boarding of horses if the boarding is 
  5.29  done in conjunction with raising or cultivating agricultural 
  5.30  products as defined in clause (1); 
  5.31     (4) property which is owned and operated by nonprofit 
  5.32  organizations used for equestrian activities, excluding racing; 
  5.33  and 
  5.34     (5) game birds and waterfowl bred and raised for use on a 
  5.35  shooting preserve licensed under section 97A.115.  
  5.36     (f) If a parcel used for agricultural purposes is also used 
  6.1   for commercial or industrial purposes, including but not limited 
  6.2   to:  
  6.3      (1) wholesale and retail sales; 
  6.4      (2) processing of raw agricultural products or other goods; 
  6.5      (3) warehousing or storage of processed goods; and 
  6.6      (4) office facilities for the support of the activities 
  6.7   enumerated in clauses (1), (2), and (3), 
  6.8   the assessor shall classify the part of the parcel used for 
  6.9   agricultural purposes as class 1b, 2a, or 2b, whichever is 
  6.10  appropriate, and the remainder in the class appropriate to its 
  6.11  use.  The grading, sorting, and packaging of raw agricultural 
  6.12  products for first sale is considered an agricultural purpose.  
  6.13  A greenhouse or other building where horticultural or nursery 
  6.14  products are grown that is also used for the conduct of retail 
  6.15  sales must be classified as agricultural if it is primarily used 
  6.16  for the growing of horticultural or nursery products from seed, 
  6.17  cuttings, or roots and occasionally as a showroom for the retail 
  6.18  sale of those products.  Use of a greenhouse or building only 
  6.19  for the display of already grown horticultural or nursery 
  6.20  products does not qualify as an agricultural purpose.  
  6.21     The assessor shall determine and list separately on the 
  6.22  records the market value of the homestead dwelling and the one 
  6.23  acre of land on which that dwelling is located.  If any farm 
  6.24  buildings or structures are located on this homesteaded acre of 
  6.25  land, their market value shall not be included in this separate 
  6.26  determination.  
  6.27     (g) To qualify for classification under paragraph (b), 
  6.28  clause (4), a privately owned public use airport must be 
  6.29  licensed as a public airport under section 360.018.  For 
  6.30  purposes of paragraph (b), clause (4), "landing area" means that 
  6.31  part of a privately owned public use airport properly cleared, 
  6.32  regularly maintained, and made available to the public for use 
  6.33  by aircraft and includes runways, taxiways, aprons, and sites 
  6.34  upon which are situated landing or navigational aids.  A landing 
  6.35  area also includes land underlying both the primary surface and 
  6.36  the approach surfaces that comply with all of the following:  
  7.1      (i) the land is properly cleared and regularly maintained 
  7.2   for the primary purposes of the landing, taking off, and taxiing 
  7.3   of aircraft; but that portion of the land that contains 
  7.4   facilities for servicing, repair, or maintenance of aircraft is 
  7.5   not included as a landing area; 
  7.6      (ii) the land is part of the airport property; and 
  7.7      (iii) the land is not used for commercial or residential 
  7.8   purposes. 
  7.9   The land contained in a landing area under paragraph (b), clause 
  7.10  (4), must be described and certified by the commissioner of 
  7.11  transportation.  The certification is effective until it is 
  7.12  modified, or until the airport or landing area no longer meets 
  7.13  the requirements of paragraph (b), clause (4).  For purposes of 
  7.14  paragraph (b), clause (4), "public access area" means property 
  7.15  used as an aircraft parking ramp, apron, or storage hangar, or 
  7.16  an arrival and departure building in connection with the airport.
  7.17     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  7.18  273.13, subdivision 24, is amended to read: 
  7.19     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  7.20  property and utility real and personal property, except class 5 
  7.21  property as identified in subdivision 31, clause (1), is class 
  7.22  3a.  It has a class rate of three two percent of the first 
  7.23  $100,000 of market value for taxes payable in 1993 and 
  7.24  thereafter, and 5.06 2.85 percent of the market value over 
  7.25  $100,000.  In the case of state-assessed commercial, industrial, 
  7.26  and utility property owned by one person or entity, only one 
  7.27  parcel has a reduced class rate on the first $100,000 of market 
  7.28  value.  In the case of other commercial, industrial, and utility 
  7.29  property owned by one person or entity, only one parcel in each 
  7.30  county has a reduced class rate on the first $100,000 of market 
  7.31  value, except that: 
  7.32     (1) if the market value of the parcel is less than 
  7.33  $100,000, and additional parcels are owned by the same person or 
  7.34  entity in the same city or town within that county, the reduced 
  7.35  class rate shall be applied up to a combined total market value 
  7.36  of $100,000 for all parcels owned by the same person or entity 
  8.1   in the same city or town within the county; 
  8.2      (2) in the case of grain, fertilizer, and feed elevator 
  8.3   facilities, as defined in section 18C.305, subdivision 1, or 
  8.4   232.21, subdivision 8, the limitation to one parcel per owner 
  8.5   per county for the reduced class rate shall not apply, but there 
  8.6   shall be a limit of $100,000 of preferential value per site of 
  8.7   contiguous parcels owned by the same person or entity.  Only the 
  8.8   value of the elevator portion of each parcel shall qualify for 
  8.9   treatment under this clause.  For purposes of this subdivision, 
  8.10  contiguous parcels include parcels separated only by a railroad 
  8.11  or public road right-of-way; and 
  8.12     (3) in the case of property owned by a nonprofit charitable 
  8.13  organization that qualifies for tax exemption under section 
  8.14  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  8.15  through December 31, 1993, if the property is used as a business 
  8.16  incubator, the limitation to one parcel per owner per county for 
  8.17  the reduced class rate shall not apply, provided that the 
  8.18  reduced rate applies only to the first $100,000 of value per 
  8.19  parcel owned by the organization.  As used in this clause, a 
  8.20  "business incubator" is a facility used for the development of 
  8.21  nonretail businesses, offering access to equipment, space, 
  8.22  services, and advice to the tenant businesses, for the purpose 
  8.23  of encouraging economic development, diversification, and job 
  8.24  creation in the area served by the organization. 
  8.25     To receive the reduced class rate on additional parcels 
  8.26  under clause (1), (2), or (3), the taxpayer must notify the 
  8.27  county assessor that the taxpayer owns more than one parcel that 
  8.28  qualifies under clause (1), (2), or (3). 
  8.29     (b) Employment property defined in section 469.166, during 
  8.30  the period provided in section 469.170, shall constitute class 
  8.31  3b and has a class rate of 2.3 1.5 percent of the first $50,000 
  8.32  of market value and 3.6 2.4 percent of the remainder, except 
  8.33  that for employment property located in a border city enterprise 
  8.34  zone designated pursuant to section 469.168, subdivision 4, 
  8.35  paragraph (c), the class rate of the first $100,000 of market 
  8.36  value and the class rate of the remainder is determined under 
  9.1   paragraph (a), unless the governing body of the city designated 
  9.2   as an enterprise zone determines that a specific parcel shall be 
  9.3   assessed pursuant to the first clause of this sentence.  The 
  9.4   governing body may provide for assessment under the first clause 
  9.5   of the preceding sentence only for property which is located in 
  9.6   an area which has been designated by the governing body for the 
  9.7   receipt of tax reductions authorized by section 469.171, 
  9.8   subdivision 1. 
  9.9      (c) Structures which are (i) located on property classified 
  9.10  as class 3a, (ii) constructed under an initial building permit 
  9.11  issued after January 2, 1996, (iii) located in a transit zone as 
  9.12  defined under section 473.3915, subdivision 3, (iv) located 
  9.13  within the boundaries of a school district, and (v) not 
  9.14  primarily used for retail or transient lodging purposes, shall 
  9.15  have a class rate of four 2.5 percent on that portion of the 
  9.16  market value in excess of $100,000 and any market value under 
  9.17  $100,000 that does not qualify for the three two percent class 
  9.18  rate under paragraph (a).  As used in item (v), a structure is 
  9.19  primarily used for retail or transient lodging purposes if over 
  9.20  50 percent of its square footage is used for those purposes.  
  9.21  The four percent rate shall also apply to improvements to 
  9.22  existing structures that meet the requirements of items (i) to 
  9.23  (v) if the improvements are constructed under an initial 
  9.24  building permit issued after January 2, 1996, even if the 
  9.25  remainder of the structure was constructed prior to January 2, 
  9.26  1996.  For the purposes of this paragraph, a structure shall be 
  9.27  considered to be located in a transit zone if any portion of the 
  9.28  structure lies within the zone.  If any property once eligible 
  9.29  for treatment under this paragraph ceases to remain eligible due 
  9.30  to revisions in transit zone boundaries, the property shall 
  9.31  continue to receive treatment under this paragraph for a period 
  9.32  of three years. 
  9.33     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  9.34  273.13, subdivision 25, is amended to read: 
  9.35     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  9.36  estate containing four or more units and used or held for use by 
 10.1   the owner or by the tenants or lessees of the owner as a 
 10.2   residence for rental periods of 30 days or more.  Class 4a also 
 10.3   includes hospitals licensed under sections 144.50 to 144.56, 
 10.4   other than hospitals exempt under section 272.02, and contiguous 
 10.5   property used for hospital purposes, without regard to whether 
 10.6   the property has been platted or subdivided.  Class 4a property 
 10.7   in a city with a population of 5,000 or less, that is (1) 
 10.8   located outside of the metropolitan area, as defined in section 
 10.9   473.121, subdivision 2, or outside any county contiguous to the 
 10.10  metropolitan area, and (2) whose city boundary is at least 15 
 10.11  miles from the boundary of any city with a population greater 
 10.12  than 5,000 has a class rate of 2.3 1.5 percent of market value 
 10.13  for taxes payable in 1996 and thereafter.  All other class 4a 
 10.14  property has a class rate of 3.4 two percent of market value for 
 10.15  taxes payable in 1996 and thereafter.  For purposes of this 
 10.16  paragraph, population has the same meaning given in section 
 10.17  477A.011, subdivision 3. 
 10.18     (b) Class 4b includes: 
 10.19     (1) residential real estate containing less than four 
 10.20  units, other than seasonal residential, and recreational; 
 10.21     (2) manufactured homes not classified under any other 
 10.22  provision; 
 10.23     (3) a dwelling, garage, and surrounding one acre of 
 10.24  property on a nonhomestead farm classified under subdivision 23, 
 10.25  paragraph (b).  
 10.26     Class 4b property has a class rate of 2.8 percent of market 
 10.27  value for taxes payable in 1992, 2.5 percent of market value for 
 10.28  taxes payable in 1993, and 2.3 1.5 percent of market value for 
 10.29  taxes payable in 1994 and thereafter. 
 10.30     (c) Class 4c property includes: 
 10.31     (1) a structure that is:  
 10.32     (i) situated on real property that is used for housing for 
 10.33  the elderly or for low- and moderate-income families as defined 
 10.34  in Title II, as amended through December 31, 1990, of the 
 10.35  National Housing Act or the Minnesota housing finance agency law 
 10.36  of 1971, as amended, or rules promulgated by the agency and 
 11.1   financed by a direct federal loan or federally insured loan made 
 11.2   pursuant to Title II of the Act; or 
 11.3      (ii) situated on real property that is used for housing the 
 11.4   elderly or for low- and moderate-income families as defined by 
 11.5   the Minnesota housing finance agency law of 1971, as amended, or 
 11.6   rules adopted by the agency pursuant thereto and financed by a 
 11.7   loan made by the Minnesota housing finance agency pursuant to 
 11.8   the provisions of the act.  
 11.9      This clause applies only to property of a nonprofit or 
 11.10  limited dividend entity.  Property is classified as class 4c 
 11.11  under this clause for 15 years from the date of the completion 
 11.12  of the original construction or substantial rehabilitation, or 
 11.13  for the original term of the loan.  
 11.14     (2) a structure that is: 
 11.15     (i) situated upon real property that is used for housing 
 11.16  lower income families or elderly or handicapped persons, as 
 11.17  defined in section 8 of the United States Housing Act of 1937, 
 11.18  as amended; and 
 11.19     (ii) owned by an entity which has entered into a housing 
 11.20  assistance payments contract under section 8 which provides 
 11.21  assistance for 100 percent of the dwelling units in the 
 11.22  structure, other than dwelling units intended for management or 
 11.23  maintenance personnel.  Property is classified as class 4c under 
 11.24  this clause for the term of the housing assistance payments 
 11.25  contract, including all renewals, or for the term of its 
 11.26  permanent financing, whichever is shorter; and 
 11.27     (3) a qualified low-income building as defined in section 
 11.28  42(c)(2) of the Internal Revenue Code of 1986, as amended 
 11.29  through December 31, 1990, that (i) receives a low-income 
 11.30  housing credit under section 42 of the Internal Revenue Code of 
 11.31  1986, as amended through December 31, 1990; or (ii) meets the 
 11.32  requirements of that section and receives public financing, 
 11.33  except financing provided under sections 469.174 to 469.179, 
 11.34  which contains terms restricting the rents; or (iii) meets the 
 11.35  requirements of section 273.1317.  Classification pursuant to 
 11.36  this clause is limited to a term of 15 years.  The public 
 12.1   financing received must be from at least one of the following 
 12.2   sources:  government issued bonds exempt from taxes under 
 12.3   section 103 of the Internal Revenue Code of 1986, as amended 
 12.4   through December 31, 1993, the proceeds of which are used for 
 12.5   the acquisition or rehabilitation of the building; programs 
 12.6   under section 221(d)(3), 202, or 236, of Title II of the 
 12.7   National Housing Act; rental housing program funds under Section 
 12.8   8 of the United States Housing Act of 1937 or the market rate 
 12.9   family graduated payment mortgage program funds administered by 
 12.10  the Minnesota housing finance agency that are used for the 
 12.11  acquisition or rehabilitation of the building; public financing 
 12.12  provided by a local government used for the acquisition or 
 12.13  rehabilitation of the building, including grants or loans from 
 12.14  federal community development block grants, HOME block grants, 
 12.15  or residential rental bonds issued under chapter 474A; or other 
 12.16  rental housing program funds provided by the Minnesota housing 
 12.17  finance agency for the acquisition or rehabilitation of the 
 12.18  building. 
 12.19     For all properties described in clauses (1), (2), and (3) 
 12.20  and in paragraph (d), the market value determined by the 
 12.21  assessor must be based on the normal approach to value using 
 12.22  normal unrestricted rents unless the owner of the property 
 12.23  elects to have the property assessed under Laws 1991, chapter 
 12.24  291, article 1, section 55.  If the owner of the property elects 
 12.25  to have the market value determined on the basis of the actual 
 12.26  restricted rents, as provided in Laws 1991, chapter 291, article 
 12.27  1, section 55, the property will be assessed at the rate 
 12.28  provided for class 4a or class 4b property, as appropriate.  
 12.29  Properties described in clauses (1)(ii), (3), and (4) may apply 
 12.30  to the assessor for valuation under Laws 1991, chapter 291, 
 12.31  article 1, section 55.  The land on which these structures are 
 12.32  situated has the class rate given in paragraph (b) if the 
 12.33  structure contains fewer than four units, and the class rate 
 12.34  given in paragraph (a) if the structure contains four or more 
 12.35  units.  This clause applies only to the property of a nonprofit 
 12.36  or limited dividend entity.  
 13.1      (4) a parcel of land, not to exceed one acre, and its 
 13.2   improvements or a parcel of unimproved land, not to exceed one 
 13.3   acre, if it is owned by a neighborhood real estate trust and at 
 13.4   least 60 percent of the dwelling units, if any, on all land 
 13.5   owned by the trust are leased to or occupied by lower income 
 13.6   families or individuals.  This clause does not apply to any 
 13.7   portion of the land or improvements used for nonresidential 
 13.8   purposes.  For purposes of this clause, a lower income family is 
 13.9   a family with an income that does not exceed 65 percent of the 
 13.10  median family income for the area, and a lower income individual 
 13.11  is an individual whose income does not exceed 65 percent of the 
 13.12  median individual income for the area, as determined by the 
 13.13  United States Secretary of Housing and Urban Development.  For 
 13.14  purposes of this clause, "neighborhood real estate trust" means 
 13.15  an entity which is certified by the governing body of the 
 13.16  municipality in which it is located to have the following 
 13.17  characteristics: 
 13.18     (a) it is a nonprofit corporation organized under chapter 
 13.19  317A; 
 13.20     (b) it has as its principal purpose providing housing for 
 13.21  lower income families in a specific geographic community 
 13.22  designated in its articles or bylaws; 
 13.23     (c) it limits membership with voting rights to residents of 
 13.24  the designated community; and 
 13.25     (d) it has a board of directors consisting of at least 
 13.26  seven directors, 60 percent of whom are members with voting 
 13.27  rights and, to the extent feasible, 25 percent of whom are 
 13.28  elected by resident members of buildings owned by the trust; and 
 13.29     (5) except as provided in subdivision 22, paragraph (c), 
 13.30  real property devoted to temporary and seasonal residential 
 13.31  occupancy for recreation purposes, including real property 
 13.32  devoted to temporary and seasonal residential occupancy for 
 13.33  recreation purposes and not devoted to commercial purposes for 
 13.34  more than 250 days in the year preceding the year of 
 13.35  assessment.  For purposes of this clause, property is devoted to 
 13.36  a commercial purpose on a specific day if any portion of the 
 14.1   property is used for residential occupancy, and a fee is charged 
 14.2   for residential occupancy.  Class 4c also includes commercial 
 14.3   use real property used exclusively for recreational purposes in 
 14.4   conjunction with class 4c property devoted to temporary and 
 14.5   seasonal residential occupancy for recreational purposes, up to 
 14.6   a total of two acres, provided the property is not devoted to 
 14.7   commercial recreational use for more than 250 days in the year 
 14.8   preceding the year of assessment and is located within two miles 
 14.9   of the class 4c property with which it is used.  Class 4c 
 14.10  property classified in this clause also includes the remainder 
 14.11  of class 1c resorts.  Owners of real property devoted to 
 14.12  temporary and seasonal residential occupancy for recreation 
 14.13  purposes and all or a portion of which was devoted to commercial 
 14.14  purposes for not more than 250 days in the year preceding the 
 14.15  year of assessment desiring classification as class 1c or 4c, 
 14.16  must submit a declaration to the assessor designating the cabins 
 14.17  or units occupied for 250 days or less in the year preceding the 
 14.18  year of assessment by January 15 of the assessment year.  Those 
 14.19  cabins or units and a proportionate share of the land on which 
 14.20  they are located will be designated class 1c or 4c as otherwise 
 14.21  provided.  The remainder of the cabins or units and a 
 14.22  proportionate share of the land on which they are located will 
 14.23  be designated as class 3a.  The first $100,000 of the market 
 14.24  value of the remainder of the cabins or units and a 
 14.25  proportionate share of the land on which they are located shall 
 14.26  have a class rate of three two percent.  The owner of property 
 14.27  desiring designation as class 1c or 4c property must provide 
 14.28  guest registers or other records demonstrating that the units 
 14.29  for which class 1c or 4c designation is sought were not occupied 
 14.30  for more than 250 days in the year preceding the assessment if 
 14.31  so requested.  The portion of a property operated as a (1) 
 14.32  restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 14.33  facility operated on a commercial basis not directly related to 
 14.34  temporary and seasonal residential occupancy for recreation 
 14.35  purposes shall not qualify for class 1c or 4c; 
 14.36     (6) real property up to a maximum of one acre of land owned 
 15.1   by a nonprofit community service oriented organization; provided 
 15.2   that the property is not used for a revenue-producing activity 
 15.3   for more than six days in the calendar year preceding the year 
 15.4   of assessment and the property is not used for residential 
 15.5   purposes on either a temporary or permanent basis.  For purposes 
 15.6   of this clause, a "nonprofit community service oriented 
 15.7   organization" means any corporation, society, association, 
 15.8   foundation, or institution organized and operated exclusively 
 15.9   for charitable, religious, fraternal, civic, or educational 
 15.10  purposes, and which is exempt from federal income taxation 
 15.11  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 15.12  Revenue Code of 1986, as amended through December 31, 1990.  For 
 15.13  purposes of this clause, "revenue-producing activities" shall 
 15.14  include but not be limited to property or that portion of the 
 15.15  property that is used as an on-sale intoxicating liquor or 3.2 
 15.16  percent malt liquor establishment licensed under chapter 340A, a 
 15.17  restaurant open to the public, bowling alley, a retail store, 
 15.18  gambling conducted by organizations licensed under chapter 349, 
 15.19  an insurance business, or office or other space leased or rented 
 15.20  to a lessee who conducts a for-profit enterprise on the 
 15.21  premises.  Any portion of the property which is used for 
 15.22  revenue-producing activities for more than six days in the 
 15.23  calendar year preceding the year of assessment shall be assessed 
 15.24  as class 3a.  The use of the property for social events open 
 15.25  exclusively to members and their guests for periods of less than 
 15.26  24 hours, when an admission is not charged nor any revenues are 
 15.27  received by the organization shall not be considered a 
 15.28  revenue-producing activity; 
 15.29     (7) post-secondary student housing of not more than one 
 15.30  acre of land that is owned by a nonprofit corporation organized 
 15.31  under chapter 317A and is used exclusively by a student 
 15.32  cooperative, sorority, or fraternity for on-campus housing or 
 15.33  housing located within two miles of the border of a college 
 15.34  campus; and 
 15.35     (8) manufactured home parks as defined in section 327.14, 
 15.36  subdivision 3. 
 16.1      Class 4c property has a class rate of 2.3 1.35 percent of 
 16.2   market value, except that (i) for each parcel of seasonal 
 16.3   residential recreational property not used for commercial 
 16.4   purposes under clause (5) the first $72,000 of market value on 
 16.5   each parcel has a class rate of 1.9 percent for taxes payable in 
 16.6   1997 and 1.8 percent for taxes payable in 1998 and thereafter, 
 16.7   and the market value of each parcel that exceeds $72,000 has a 
 16.8   class rate of 2.5 percent, and (ii) manufactured home parks 
 16.9   assessed under clause (8) have a class rate of two 1.5 percent 
 16.10  for taxes payable in 1996, and thereafter.  
 16.11     (d) Class 4d property includes: 
 16.12     (1) a structure that is: 
 16.13     (i) situated on real property that is used for housing for 
 16.14  the elderly or for low and moderate income families as defined 
 16.15  by the Farmers Home Administration; 
 16.16     (ii) located in a municipality of less than 10,000 
 16.17  population; and 
 16.18     (iii) financed by a direct loan or insured loan from the 
 16.19  Farmers Home Administration.  Property is classified under this 
 16.20  clause for 15 years from the date of the completion of the 
 16.21  original construction or for the original term of the loan.  
 16.22     The class rates in paragraph (c), clauses (1), (2), and (3) 
 16.23  and this clause apply to the properties described in them, only 
 16.24  in proportion to occupancy of the structure by elderly or 
 16.25  handicapped persons or low and moderate income families as 
 16.26  defined in the applicable laws unless construction of the 
 16.27  structure had been commenced prior to January 1, 1984; or the 
 16.28  project had been approved by the governing body of the 
 16.29  municipality in which it is located prior to June 30, 1983; or 
 16.30  financing of the project had been approved by a federal or state 
 16.31  agency prior to June 30, 1983.  For those properties, 4c or 4d 
 16.32  classification is available only for those units meeting the 
 16.33  requirements of section 273.1318. 
 16.34     Classification under this clause is only available to 
 16.35  property of a nonprofit or limited dividend entity. 
 16.36     In the case of a structure financed or refinanced under any 
 17.1   federal or state mortgage insurance or direct loan program 
 17.2   exclusively for housing for the elderly or for housing for the 
 17.3   handicapped, a unit shall be considered occupied so long as it 
 17.4   is actually occupied by an elderly or handicapped person or, if 
 17.5   vacant, is held for rental to an elderly or handicapped person. 
 17.6      (2) For taxes payable in 1992, 1993, and 1994, only, 
 17.7   buildings and appurtenances, together with the land upon which 
 17.8   they are located, leased by the occupant under the community 
 17.9   lending model lease-purchase mortgage loan program administered 
 17.10  by the Federal National Mortgage Association, provided the 
 17.11  occupant's income is no greater than 60 percent of the county or 
 17.12  area median income, adjusted for family size and the building 
 17.13  consists of existing single family or duplex housing.  The lease 
 17.14  agreement must provide for a portion of the lease payment to be 
 17.15  escrowed as a nonrefundable down payment on the housing.  To 
 17.16  qualify under this clause, the taxpayer must apply to the county 
 17.17  assessor by May 30 of each year.  The application must be 
 17.18  accompanied by an affidavit or other proof required by the 
 17.19  assessor to determine qualification under this clause. 
 17.20     (3) Qualifying buildings and appurtenances, together with 
 17.21  the land upon which they are located, leased for a period of up 
 17.22  to five years by the occupant under a lease-purchase program 
 17.23  administered by the Minnesota housing finance agency or a 
 17.24  housing and redevelopment authority authorized under sections 
 17.25  469.001 to 469.047, provided the occupant's income is no greater 
 17.26  than 80 percent of the county or area median income, adjusted 
 17.27  for family size, and the building consists of two or less 
 17.28  dwelling units.  The lease agreement must provide for a portion 
 17.29  of the lease payment to be escrowed as a nonrefundable down 
 17.30  payment on the housing.  The administering agency shall verify 
 17.31  the occupants income eligibility and certify to the county 
 17.32  assessor that the occupant meets the income criteria under this 
 17.33  paragraph.  To qualify under this clause, the taxpayer must 
 17.34  apply to the county assessor by May 30 of each year.  For 
 17.35  purposes of this section, "qualifying buildings and 
 17.36  appurtenances" shall be defined as one or two unit residential 
 18.1   buildings which are unoccupied and have been abandoned and 
 18.2   boarded for at least six months. 
 18.3      Class 4d property has a class rate of two 1.5 percent of 
 18.4   market value except that property classified under clause (3), 
 18.5   shall have the same class rate as class 1a property. 
 18.6      (e) Residential rental property that would otherwise be 
 18.7   assessed as class 4 property under paragraph (a); paragraph (b), 
 18.8   clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 18.9   (4), is assessed at the class rate applicable to it under 
 18.10  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 18.11  substandard building under section 273.1316.  Residential rental 
 18.12  property that would otherwise be assessed as class 4 property 
 18.13  under paragraph (d) is assessed at 2.3 percent of market value 
 18.14  if it is found to be a substandard building under section 
 18.15  273.1316. 
 18.16     Sec. 5.  Minnesota Statutes 1994, section 273.13, 
 18.17  subdivision 31, is amended to read: 
 18.18     Subd. 31.  [CLASS 5.] Class 5 property includes:  
 18.19     (1) tools, implements, and machinery of an electric 
 18.20  generating, transmission, or distribution system or a pipeline 
 18.21  system transporting or distributing water, gas, crude oil, or 
 18.22  petroleum products or mains and pipes used in the distribution 
 18.23  of steam or hot or chilled water for heating or cooling 
 18.24  buildings, which are fixtures; 
 18.25     (2) unmined iron ore and low-grade iron-bearing formations 
 18.26  as defined in section 273.14; and 
 18.27     (3) all other property not otherwise classified. 
 18.28     Class 5 property has a class rate of 5.06 three percent of 
 18.29  market value. 
 18.30     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 18.31  273.1398, subdivision 1, is amended to read: 
 18.32     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
 18.33  terms defined in this subdivision have the meanings given them. 
 18.34     (b) "Unique taxing jurisdiction" means the geographic area 
 18.35  subject to the same set of local tax rates. 
 18.36     (c) "Net tax capacity" means the product of (i) the 
 19.1   appropriate net class rates for the year in which the aid is 
 19.2   payable, except that for aid payable in 1996 1997 the class rate 
 19.3   applicable to all class 4a shall be 3.4 percent classes of 
 19.4   property shall be the class rate in effect for each class of 
 19.5   property for the year previous to the year in which the aid is 
 19.6   payable; and (ii) estimated market values for the assessment two 
 19.7   years prior to that in which aid is payable.  "Total net tax 
 19.8   capacity" means the net tax capacities for all property within 
 19.9   the unique taxing jurisdiction.  The total net tax capacity used 
 19.10  shall be reduced by the sum of (1) the unique taxing 
 19.11  jurisdiction's net tax capacity of commercial industrial 
 19.12  property as defined in section 473F.02, subdivision 3, 
 19.13  multiplied by the ratio determined pursuant to section 473F.08, 
 19.14  subdivision 6, for the municipality, as defined in section 
 19.15  473F.02, subdivision 8, in which the unique taxing jurisdiction 
 19.16  is located, (2) the net tax capacity of the captured value of 
 19.17  tax increment financing districts as defined in section 469.177, 
 19.18  subdivision 2, and (3) the net tax capacity of transmission 
 19.19  lines deducted from a local government's total net tax capacity 
 19.20  under section 273.425.  For purposes of determining the net tax 
 19.21  capacity of property referred to in clauses (1), (2), and (3), 
 19.22  the net tax capacity shall be multiplied by the ratio of the 
 19.23  highest class rate for class 3a property for taxes payable in 
 19.24  the year in which the aid is payable to the highest class rate 
 19.25  for class 3a property in the prior year.  Net tax capacity 
 19.26  cannot be less than zero. 
 19.27     (d) "Previous net tax capacity" means the product of the 
 19.28  appropriate net class rates for the year previous to the year in 
 19.29  which the aid is payable, and estimated market values for the 
 19.30  assessment two years prior to that in which aid is payable.  
 19.31  "Total previous net tax capacity" means the previous net tax 
 19.32  capacities for all property within the unique taxing 
 19.33  jurisdiction.  The total previous net tax capacity shall be 
 19.34  reduced by the sum of (1) the unique taxing jurisdiction's 
 19.35  previous net tax capacity of commercial-industrial property as 
 19.36  defined in section 473F.02, subdivision 3, multiplied by the 
 20.1   ratio determined pursuant to section 473F.08, subdivision 6, for 
 20.2   the municipality, as defined in section 473F.02, subdivision 8, 
 20.3   in which the unique taxing jurisdiction is located, (2) the 
 20.4   previous net tax capacity of the captured value of tax increment 
 20.5   financing districts as defined in section 469.177, subdivision 
 20.6   2, and (3) the previous net tax capacity of transmission lines 
 20.7   deducted from a local government's total net tax capacity under 
 20.8   section 273.425.  Previous net tax capacity cannot be less than 
 20.9   zero. 
 20.10     (e) "Equalized market values" are market values that have 
 20.11  been equalized by dividing the assessor's estimated market value 
 20.12  for the second year prior to that in which the aid is payable by 
 20.13  the assessment sales ratios determined by class in the 
 20.14  assessment sales ratio study conducted by the department of 
 20.15  revenue pursuant to section 124.2131 in the second year prior to 
 20.16  that in which the aid is payable.  The equalized market values 
 20.17  shall equal the unequalized market values divided by the 
 20.18  assessment sales ratio. 
 20.19     (f) "Equalized school levies" means the amounts levied for: 
 20.20     (1) general education under section 124A.23, subdivision 2; 
 20.21     (2) supplemental revenue under section 124A.22, subdivision 
 20.22  8a; 
 20.23     (3) capital expenditure facilities revenue under section 
 20.24  124.243, subdivision 3; 
 20.25     (4) capital expenditure equipment revenue under section 
 20.26  124.244, subdivision 2; 
 20.27     (5) basic transportation under section 124.226, subdivision 
 20.28  1; and 
 20.29     (6) referendum revenue under section 124A.03. 
 20.30     (g) "Current local tax rate" means the quotient derived by 
 20.31  dividing the taxes levied within a unique taxing jurisdiction 
 20.32  for taxes payable in the year prior to that for which aids are 
 20.33  being calculated by the total previous net tax capacity of the 
 20.34  unique taxing jurisdiction.  
 20.35     (h) For purposes of calculating and allocating homestead 
 20.36  and agricultural credit aid authorized pursuant to subdivision 2 
 21.1   and the disparity reduction aid authorized in subdivision 3, 
 21.2   "gross taxes levied on all properties," "gross taxes," or "taxes 
 21.3   levied" means the total net tax capacity based taxes levied on 
 21.4   all properties except that levied on the captured value of tax 
 21.5   increment districts as defined in section 469.177, subdivision 
 21.6   2, and that levied on the portion of commercial industrial 
 21.7   properties' assessed value or gross tax capacity, as defined in 
 21.8   section 473F.02, subdivision 3, subject to the areawide tax as 
 21.9   provided in section 473F.08, subdivision 6, in a unique taxing 
 21.10  jurisdiction.  "Gross taxes" are before any reduction for 
 21.11  disparity reduction aid but "taxes levied" are after any 
 21.12  reduction for disparity reduction aid.  Gross taxes levied or 
 21.13  taxes levied cannot be less than zero.  
 21.14     "Taxes levied" excludes equalized school levies. 
 21.15     (i) "Human services aids" means: 
 21.16     (1) aid to families with dependent children under sections 
 21.17  256.82, subdivision 1, and 256.935, subdivision 1; 
 21.18     (2) medical assistance under sections 256B.041, subdivision 
 21.19  5, and 256B.19, subdivision 1; 
 21.20     (3) general assistance medical care under section 256D.03, 
 21.21  subdivision 6; 
 21.22     (4) general assistance under section 256D.03, subdivision 
 21.23  2; 
 21.24     (5) work readiness under section 256D.03, subdivision 2; 
 21.25     (6) emergency assistance under section 256.871, subdivision 
 21.26  6; 
 21.27     (7) Minnesota supplemental aid under section 256D.36, 
 21.28  subdivision 1; 
 21.29     (8) preadmission screening and alternative care grants; 
 21.30     (9) work readiness services under section 256D.051; 
 21.31     (10) case management services under section 256.736, 
 21.32  subdivision 13; 
 21.33     (11) general assistance claims processing, medical 
 21.34  transportation and related costs; and 
 21.35     (12) medical assistance, medical transportation and related 
 21.36  costs. 
 22.1      (j) "Household adjustment factor" means the number of 
 22.2   households for the second most recent year preceding that in 
 22.3   which the aids are payable divided by the number of households 
 22.4   for the third most recent year.  The household adjustment factor 
 22.5   cannot be less than one.  
 22.6      (k) "Growth adjustment factor" means the household 
 22.7   adjustment factor in the case of counties.  In the case of 
 22.8   cities, towns, school districts, and special taxing districts, 
 22.9   the growth adjustment factor equals one.  The growth adjustment 
 22.10  factor cannot be less than one.  
 22.11     (l) For aid payable in 1992 and subsequent years, 
 22.12  "homestead and agricultural credit base" means the previous 
 22.13  year's certified homestead and agricultural credit aid 
 22.14  determined under subdivision 2 less any permanent aid reduction 
 22.15  in the previous year to homestead and agricultural credit aid 
 22.16  under section 477A.0132, plus, for aid payable in 1992, fiscal 
 22.17  disparity homestead and agricultural credit aid under 
 22.18  subdivision 2b.  
 22.19     (m) "Net tax capacity adjustment" means (1) the total 
 22.20  previous net tax capacity minus the total net tax capacity, 
 22.21  multiplied by (2) the unique taxing jurisdiction's current local 
 22.22  tax rate.  The net tax capacity adjustment cannot be less than 
 22.23  zero. 
 22.24     (n) "Fiscal disparity adjustment" means the difference 
 22.25  between (1) a taxing jurisdiction's fiscal disparity 
 22.26  distribution levy under section 473F.08, subdivision 3, clause 
 22.27  (a), for taxes payable in the year prior to that for which aids 
 22.28  are being calculated, and (2) the same distribution levy 
 22.29  multiplied by the ratio of the highest class rate for class 3 
 22.30  property for taxes payable in the year prior to that for which 
 22.31  aids are being calculated to the highest class rate for class 3 
 22.32  property for taxes payable in the second prior year to that for 
 22.33  which aids are being calculated.  In the case of school 
 22.34  districts, the fiscal disparity distribution levy shall exclude 
 22.35  that part of the levy attributable to equalized school levies. 
 22.36     Sec. 7.  [REPEALER.] 
 23.1      Minnesota Statutes 1994, section 273.13, subdivision 32, is 
 23.2   repealed.  
 23.3      Sec. 8.  [EFFECTIVE DATE.] 
 23.4      Sections 1 to 7 are effective for taxes payable in 1997 and 
 23.5   thereafter. 
 23.6                              ARTICLE 2 
 23.7                      EDUCATION HOMESTEAD CREDIT 
 23.8      Section 1.  [273.1382] [EDUCATION HOMESTEAD CREDIT.] 
 23.9      Subdivision 1.  [EDUCATION HOMESTEAD CREDIT.] Each year, 
 23.10  beginning with property taxes payable in 1997, the respective 
 23.11  county auditors shall determine the local tax rate for each 
 23.12  school district for the general education levy certified under 
 23.13  section 124A.23, subdivision 2 or 3.  That rate shall be the 
 23.14  general education homestead credit local tax rate for the 
 23.15  district.  The auditor shall then determine a general education 
 23.16  homestead credit for each homestead within the county by 
 23.17  multiplying the general education homestead credit local tax 
 23.18  rate times the net tax capacity of the homestead for the taxes 
 23.19  payable year.  The amount of general education homestead credit 
 23.20  for a homestead is limited to the maximum credit amounts 
 23.21  specified in subdivision 2.  
 23.22     Subd. 2.  [CREDIT MAXIMUMS.] The maximum general education 
 23.23  homestead credit for a homestead is limited to the following 
 23.24  amounts, based on the assessor's estimated market value of the 
 23.25  homestead for the taxes payable year, as that amount is 
 23.26  otherwise limited by law. 
 23.27            Estimated Market Value          Maximum Credit Amount
 23.28            $0 to $85,000                   $435
 23.29            $85,001 to $90,000              $415
 23.30            $90,001 to $95,000              $400
 23.31            $95,001 to $100,000             $370
 23.32            $100,001 to $105,000            $330
 23.33            $105,001 to $110,000            $290
 23.34            $110,001 to $115,000            $250
 23.35            $115,001 to $120,000            $200
 23.36            $120,001 to $125,000            $175
 24.1             $125,001 to $130,000            $150
 24.2             $130,001 to $140,000            $100
 24.3             $140,001 to $150,000            $50
 24.4      Homesteads with a limited assessor's estimated market value 
 24.5   in excess of $150,000 are not eligible for the general education 
 24.6   homestead credit provided in this section.  
 24.7      Subd. 3.  [PROPERTY TAX STATEMENTS.] The credit amount 
 24.8   under this section for each homestead shall reduce the amount of 
 24.9   property taxes otherwise payable to the county treasurer in that 
 24.10  payable year, and must be separately stated on the property tax 
 24.11  statement as a reduction, which reduction shall be identified as 
 24.12  "general education homestead credit."  The tax statement must 
 24.13  indicate that the credit amount under this section reduces the 
 24.14  "state-determined school district levy" on the property.  
 24.15     Subd. 4.  [CREDIT REIMBURSEMENTS.] (a) The commissioner of 
 24.16  revenue shall determine the tax reductions allowed under this 
 24.17  section for each taxes payable year, and for each school 
 24.18  district based upon a review of the abstracts of tax lists 
 24.19  submitted by the county auditors under section 275.29, and from 
 24.20  any other information which the commissioner deems relevant.  
 24.21  The commissioner of revenue shall generally compute the tax 
 24.22  reductions at the unique taxing jurisdiction level, however the 
 24.23  commissioner may compute the tax reductions at a higher 
 24.24  geographic level if that would have a negligible impact, or if 
 24.25  changes in the composition of unique taxing jurisdictions do not 
 24.26  permit computation at the unique taxing jurisdiction level.  The 
 24.27  commissioner's determinations under this paragraph are not rules.
 24.28     (b) The commissioner of revenue shall certify the total of 
 24.29  the tax reductions granted under this section for each taxes 
 24.30  payable year within each school district to the commissioner of 
 24.31  education on or before August 1 of the taxes payable year.  The 
 24.32  commissioner of education shall reimburse each affected school 
 24.33  district for the amount of the property tax reductions allowed 
 24.34  under this section as provided in section 273.1392.  The 
 24.35  commissioner of education shall make the reimbursement payments 
 24.36  within the same state fiscal year as certified, including with 
 25.1   each district's initial payment all amounts that would have been 
 25.2   paid up to that date, computed as if the annual reimbursement 
 25.3   amount for the district had been paid as otherwise provided by 
 25.4   law over the full fiscal year.  
 25.5      Subd. 5.  [APPROPRIATION.] An amount sufficient to make the 
 25.6   payments required by this section is annually appropriated from 
 25.7   the general fund to the commissioner of education.  
 25.8      Sec. 2.  [EFFECTIVE DATE.] 
 25.9      Section 1 is effective for taxes payable, and for credit 
 25.10  reimbursement payments to school districts, in 1997 and 
 25.11  thereafter. 
 25.12                             ARTICLE 3 
 25.13                 SENIOR CITIZEN PROPERTY TAX REFUND 
 25.14     Section 1.  Minnesota Statutes 1994, section 290A.04, is 
 25.15  amended by adding a subdivision to read: 
 25.16     Subd. 2j.  Effective beginning for taxes payable in 1997, a 
 25.17  claimant who is a homeowner is allowed a credit equal to the 
 25.18  excess of the claimant's net property taxes over six percent of 
 25.19  the claimant's household income.  In order to qualify for a 
 25.20  credit under this subdivision, the claimant or the spouse of the 
 25.21  claimant must be at least 65 years of age on December 31 of the 
 25.22  year prior to the year in which the taxes are payable and must 
 25.23  have resided in the homestead for at least ten consecutive years 
 25.24  ending on December 31 of the year prior to the year in which the 
 25.25  taxes are payable.  No payment is allowed if the claimant's 
 25.26  household income exceeds the maximum income for which a claimant 
 25.27  may receive a refund under subdivision 2.  The commissioner of 
 25.28  revenue may require claimants to certify eligibility for the 
 25.29  credit in a form the commissioner prescribes.  For purposes of 
 25.30  this subdivision, "net property taxes" means property taxes 
 25.31  payable after reduction for all state paid aids or credits and 
 25.32  after deduction of the refund for which the claimant qualifies 
 25.33  under subdivisions 2 and 2h. 
 25.34                             ARTICLE 4 
 25.35                          LEVY CONSTRAINTS 
 25.36     Section 1.  Minnesota Statutes 1995 Supplement, section 
 26.1   124A.23, subdivision 1, is amended to read: 
 26.2      Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 26.3   commissioner shall establish the general education tax rate by 
 26.4   July 1 of each year for levies payable in the following year.  
 26.5   The general education tax capacity rate shall be a rate, rounded 
 26.6   up to the nearest tenth of a percent, that, when applied to the 
 26.7   adjusted net tax capacity for all districts, raises the amount 
 26.8   specified in this subdivision.  The general education tax rate 
 26.9   shall be the rate that raises $1,054,000,000 for fiscal year 
 26.10  1996 and $1,359,000,000 for fiscal year 1997 and later fiscal 
 26.11  years.  Beginning for fiscal year 1998 and thereafter, any 
 26.12  increase in the general education levy is limited to the 
 26.13  percentage increase in equalized limited market value for levies 
 26.14  payable in the following year.  The general education tax rate 
 26.15  may not be changed due to changes or corrections made to a 
 26.16  district's adjusted net tax capacity after the tax rate has been 
 26.17  established.  
 26.18     Sec. 2.  [275.0645] [LEVY CONSTRAINTS; COMPLIANCE.] 
 26.19     Subdivision 1.  [LEVY CONSTRAINTS.] On or before August 1 
 26.20  of each year, the commissioner of revenue shall certify a 
 26.21  specific levy limitation to each county, city, and metropolitan 
 26.22  special taxing district for property taxes payable in the 
 26.23  following year.  The certification shall also notify each 
 26.24  recipient taxing authority that a referendum must be held if the 
 26.25  taxing authority's property tax levy for the following taxes 
 26.26  payable year will exceed the certified levy limitation amount.  
 26.27  For taxes payable in 1997, the levy limitation for each affected 
 26.28  taxing authority is the authority's final certified levy for all 
 26.29  purposes, including bonded indebtedness, for taxes payable in 
 26.30  1996, multiplied by one plus the rate of levy increase adopted 
 26.31  for counties, cities, and special taxing districts respectively 
 26.32  by the legislature under section 16A.102, subdivision 2, for the 
 26.33  calendar year in which the property taxes are payable.  For 
 26.34  taxes payable years after 1997, the levy limitation for each 
 26.35  affected taxing authority is the authority's final certified 
 26.36  levy for all purposes, including bonded indebtedness, for taxes 
 27.1   payable in the prior year multiplied by one plus the rate of 
 27.2   levy increase adopted for counties, cities, and special taxing 
 27.3   districts respectively by the legislature under section 16A.102, 
 27.4   subdivision 2, for the calendar year in which the property taxes 
 27.5   are payable.  Towns and nonmetropolitan special taxing districts 
 27.6   are exempt from this levy limitation.  
 27.7      Subd. 2.  [COMPLIANCE.] Each county, city, or metropolitan 
 27.8   special taxing district which intends to increase its property 
 27.9   tax levy for taxes payable in the following year by an amount 
 27.10  which exceeds the levy limitation certified to it under 
 27.11  subdivision 1 for taxes payable in the following year, must 
 27.12  conduct a referendum on that question on the second Tuesday in 
 27.13  November of the year preceding the year in which the property 
 27.14  taxes are payable.  Approval of the excess levy by the voters is 
 27.15  effective for the following taxes payable year only, unless the 
 27.16  question on the ballot is for the approval of a bond issue, or 
 27.17  unless the question on the ballot specifies the additional years 
 27.18  in which the excess levy will be allowed.  A voter approved 
 27.19  excess levy for a particular taxes payable year is not included 
 27.20  in the computation of the taxing authority's levy limitation 
 27.21  under subdivision 1 for a subsequent taxes payable year.  To the 
 27.22  extent that a voter approved excess levy exceeds the levy 
 27.23  limitation for that taxes payable year multiplied by the rate of 
 27.24  increase in equalized, but nonlimited, taxable market values 
 27.25  within the jurisdiction for the current assessment year, as 
 27.26  compared to the prior assessment year, the voter approved excess 
 27.27  levy will be subject to a 50 percent penalty which will be 
 27.28  deducted from state aids, or from levy proceeds, under the 
 27.29  procedures in section 275.07, subdivision 6. 
 27.30     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 27.31  275.065, subdivision 1, is amended to read: 
 27.32     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 27.33  law or charter to the contrary, on or before September 15, each 
 27.34  taxing authority, other than a school district, shall adopt a 
 27.35  proposed budget and shall certify to the county auditor the 
 27.36  proposed or, in the case of a town, the final property tax levy 
 28.1   for taxes payable in the following year. 
 28.2      (b) On or before September 30, each school district shall 
 28.3   certify to the county auditor the proposed property tax levy for 
 28.4   taxes payable in the following year.  The school district may 
 28.5   certify the proposed levy as: 
 28.6      (1) a specific dollar amount; or 
 28.7      (2) an amount equal to the maximum levy limitation 
 28.8   certified by the commissioner of children, families, and 
 28.9   learning to the county auditor according to section 124.918, 
 28.10  subdivision 1. 
 28.11     (c) If the board of estimate and taxation or any similar 
 28.12  board that establishes maximum tax levies for taxing 
 28.13  jurisdictions within a first class city certifies the maximum 
 28.14  property tax levies for funds under its jurisdiction by charter 
 28.15  to the county auditor by September 15, the city shall be deemed 
 28.16  to have certified its levies for those taxing jurisdictions. 
 28.17     (d) For purposes of this section, "taxing authority" 
 28.18  includes all home rule and statutory cities, towns, counties, 
 28.19  school districts, and special taxing districts as defined in 
 28.20  section 275.066.  Intermediate school districts that levy a tax 
 28.21  under chapter 124 or 136D, joint powers boards established under 
 28.22  sections 124.491 to 124.495, and common school districts No. 
 28.23  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 28.24  districts for purposes of this section.  
 28.25     (e) Any county, city, or metropolitan special taxing 
 28.26  district that will be holding a referendum under section 
 28.27  275.0645, on an increase in its levy above the levy limitation 
 28.28  established in that section, must include the amount of the 
 28.29  proposed excess levy in the proposed total levy certified under 
 28.30  this subdivision. 
 28.31     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 28.32  275.065, subdivision 3, is amended to read: 
 28.33     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 28.34  county auditor shall prepare and the county treasurer shall 
 28.35  deliver after November 10 and on or before November 24 October 
 28.36  31 each year, by first class mail to each taxpayer at the 
 29.1   address listed on the county's current year's assessment roll, a 
 29.2   notice of proposed property taxes and, in the case of a town, 
 29.3   final property taxes.  
 29.4      (b) The commissioner of revenue shall prescribe the form of 
 29.5   the notice. 
 29.6      (c) The notice must inform taxpayers that it contains the 
 29.7   amount of property taxes each taxing authority other than a town 
 29.8   proposes to collect for taxes payable the following year and, 
 29.9   for a town, the amount of its final levy.  It must clearly state 
 29.10  that each taxing authority, including regional library districts 
 29.11  established under section 134.201, and including the 
 29.12  metropolitan taxing districts as defined in paragraph (i), but 
 29.13  excluding all other special taxing districts and towns, will 
 29.14  hold a public meeting to receive public testimony on the 
 29.15  proposed budget and proposed or final property tax levy, or, in 
 29.16  case of a school district, on the current budget and proposed 
 29.17  property tax levy.  It must clearly state the time and place of 
 29.18  each taxing authority's meeting and an address where comments 
 29.19  will be received by mail.  
 29.20     (d) The notice must state for each parcel: 
 29.21     (1) the market value of the property as determined under 
 29.22  section 273.11, and used for computing property taxes payable in 
 29.23  the following year and for taxes payable in the current year; 
 29.24  and, in the case of residential property, whether the property 
 29.25  is classified as homestead or nonhomestead.  The notice must 
 29.26  clearly inform taxpayers of the years to which the market values 
 29.27  apply and that the values are final values; 
 29.28     (2) by county, city or town, state-determined school 
 29.29  district levy, school district excess referenda levy, remaining 
 29.30  school district levy, regional library district, if in 
 29.31  existence, the total of the metropolitan special taxing 
 29.32  districts as defined in paragraph (i) and the sum of the 
 29.33  remaining special taxing districts, and as a total of the taxing 
 29.34  authorities, including all special taxing districts, the 
 29.35  proposed or, for a town, final net tax on the property for taxes 
 29.36  payable the following year and the actual tax for taxes payable 
 30.1   the current year.  For the purposes of this subdivision, 
 30.2   "state-determined school district levy" means the levy certified 
 30.3   under section 124A.23, subdivision 2 or 3.  For the purposes of 
 30.4   this subdivision, "school district excess referenda levy" means 
 30.5   school district taxes for operating purposes approved at 
 30.6   referendums, including those taxes based on net tax capacity as 
 30.7   well as those based on market value.  "School district excess 
 30.8   referenda levy" does not include school district taxes for 
 30.9   capital expenditures approved at referendums or school district 
 30.10  taxes to pay for the debt service on bonds approved at 
 30.11  referenda.  In the case of the city of Minneapolis, the levy for 
 30.12  the Minneapolis library board and the levy for Minneapolis park 
 30.13  and recreation shall be listed separately from the remaining 
 30.14  amount of the city's levy.  In the case of a parcel where tax 
 30.15  increment or the fiscal disparities areawide tax applies, the 
 30.16  proposed tax levy on the captured value or the proposed tax levy 
 30.17  on the tax capacity subject to the areawide tax must each be 
 30.18  stated separately and not included in the sum of the special 
 30.19  taxing districts; and 
 30.20     (3) the increase or decrease in the amounts in clause (2) 
 30.21  from taxes payable in the current year to proposed or, for a 
 30.22  town, final taxes payable the following year, expressed as a 
 30.23  dollar amount and as a percentage. 
 30.24     (e) The notice must clearly state that the proposed or 
 30.25  final taxes do not include the following: 
 30.26     (1) special assessments; 
 30.27     (2) levies approved by the voters after the date the 
 30.28  proposed taxes are certified, including bond referenda, school 
 30.29  district levy referenda, and levy limit increase referenda; 
 30.30     (3) amounts necessary to pay cleanup or other costs due to 
 30.31  a natural disaster occurring after the date the proposed taxes 
 30.32  are certified; 
 30.33     (4) amounts necessary to pay tort judgments against the 
 30.34  taxing authority that become final after the date the proposed 
 30.35  taxes are certified; and 
 30.36     (5) the contamination tax imposed on properties which 
 31.1   received market value reductions for contamination. 
 31.2      (f) Except as provided in subdivision 7, failure of the 
 31.3   county auditor to prepare or the county treasurer to deliver the 
 31.4   notice as required in this section does not invalidate the 
 31.5   proposed or final tax levy or the taxes payable pursuant to the 
 31.6   tax levy. 
 31.7      (g) If the notice the taxpayer receives under this section 
 31.8   lists the property as nonhomestead and the homeowner provides 
 31.9   satisfactory documentation to the county assessor that the 
 31.10  property is owned and has been used as the owner's homestead 
 31.11  prior to June 1 of that year, the assessor shall reclassify the 
 31.12  property to homestead for taxes payable in the following year. 
 31.13     (h) In the case of class 4 residential property used as a 
 31.14  residence for lease or rental periods of 30 days or more, the 
 31.15  taxpayer must either: 
 31.16     (1) mail or deliver a copy of the notice of proposed 
 31.17  property taxes to each tenant, renter, or lessee; or 
 31.18     (2) post a copy of the notice in a conspicuous place on the 
 31.19  premises of the property.  
 31.20     The notice must be mailed or posted by the taxpayer by 
 31.21  November 27 or within three days of receipt of the notice, 
 31.22  whichever is later.  A taxpayer may notify the county treasurer 
 31.23  of the address of the taxpayer, agent, caretaker, or manager of 
 31.24  the premises to which the notice must be mailed in order to 
 31.25  fulfill the requirements of this paragraph. 
 31.26     (i) For purposes of this subdivision, subdivisions 5a and 
 31.27  6, "metropolitan special taxing districts" means the following 
 31.28  taxing districts in the seven-county metropolitan area that levy 
 31.29  a property tax for any of the specified purposes listed below: 
 31.30     (1) metropolitan council under section 473.132, 473.167, 
 31.31  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 31.32     (2) metropolitan airports commission under section 473.667, 
 31.33  473.671, or 473.672; and 
 31.34     (3) metropolitan mosquito control commission under section 
 31.35  473.711. 
 31.36     For purposes of this section, any levies made by the 
 32.1   regional rail authorities in the county of Anoka, Carver, 
 32.2   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 32.3   398A shall be included with the appropriate county's levy and 
 32.4   shall be discussed at that county's public hearing. 
 32.5      Sec. 5.  Minnesota Statutes 1994, section 275.065, 
 32.6   subdivision 5a, is amended to read: 
 32.7      Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
 32.8   population of more than 1,000, county, a metropolitan special 
 32.9   taxing district as defined in subdivision 3, paragraph (i), a 
 32.10  regional library district established under section 134.201, or 
 32.11  school district shall advertise in a newspaper a notice of its 
 32.12  intent to adopt a budget and property tax levy or, in the case 
 32.13  of a school district, to review its current budget and proposed 
 32.14  property taxes payable in the following year, at a public 
 32.15  hearing.  The notice must be published not less than two 
 32.16  business days nor more than six business days before the hearing.
 32.17     The advertisement must be at least one-eighth page in size 
 32.18  of a standard-size or a tabloid-size newspaper.  The 
 32.19  advertisement must not be placed in the part of the newspaper 
 32.20  where legal notices and classified advertisements appear.  The 
 32.21  advertisement must be published in an official newspaper of 
 32.22  general circulation in the taxing authority.  The newspaper 
 32.23  selected must be one of general interest and readership in the 
 32.24  community, and not one of limited subject matter.  The 
 32.25  advertisement must appear in a newspaper that is published at 
 32.26  least once per week.  
 32.27     For purposes of this section, the metropolitan special 
 32.28  taxing district's advertisement must only be published in the 
 32.29  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 32.30     (b) The advertisement must be in the following form, except 
 32.31  that the notice for a school district may include references to 
 32.32  the current budget in regard to proposed property taxes. 
 32.33                             "NOTICE OF
 32.34                      PROPOSED PROPERTY TAXES
 32.35             (City/County/School District/Metropolitan
 32.36                  Special Taxing District/Regional
 33.1                    Library District) of .........
 33.2   The governing body of ........ will soon hold budget hearings 
 33.3   and vote on the property taxes for (city/county/metropolitan 
 33.4   special taxing district/regional library district services that 
 33.5   will be provided in 199_/school district services that will be 
 33.6   provided in 199_ and 199_). 
 33.7                      NOTICE OF PUBLIC HEARING:
 33.8   All concerned citizens are invited to attend a public hearing 
 33.9   and express their opinions on the proposed (city/county/school 
 33.10  district/metropolitan special taxing district/regional library 
 33.11  district) budget and property taxes, or in the case of a school 
 33.12  district, its current budget and proposed property taxes, 
 33.13  payable in the following year.  The hearing will be held on 
 33.14  (Month/Day/Year) at (Time) at (Location, Address)." 
 33.15     (c) A city with a population of 1,000 or less must 
 33.16  advertise according to the provisions of paragraph (a), or by 
 33.17  posted notice as defined in section 645.12, subdivision 1.  If 
 33.18  posted, the advertisement must be posted at the time provided in 
 33.19  paragraph (a).  It must be in the form required in paragraph (b).
 33.20     (d) For purposes of this subdivision, the population of a 
 33.21  city is the most recent population as determined by the state 
 33.22  demographer under section 4A.02. 
 33.23     (e) The commissioner of revenue, subject to the approval of 
 33.24  the chairs of the house and senate tax committees, shall 
 33.25  prescribe the form and format of the advertisement. 
 33.26     (f) For calendar year 1993, each taxing authority required 
 33.27  to publish an advertisement must include on the advertisement a 
 33.28  statement that information on the increases or decreases of the 
 33.29  total budget, including employee and independent contractor 
 33.30  compensation in the prior year, current year, and proposed 
 33.31  budget year will be discussed at the hearing. 
 33.32     (g) Notwithstanding paragraph (f), for 1993, the 
 33.33  commissioner of revenue shall prescribe the form, format, and 
 33.34  content of an advertisement comparing current and proposed 
 33.35  expense budgets for the metropolitan council, the metropolitan 
 33.36  airports commission, and the metropolitan mosquito control 
 34.1   commission.  The expense budget must include occupancy, 
 34.2   personnel, contractual and capital improvement expenses.  The 
 34.3   form, format, and content of the advertisement must be approved 
 34.4   by the chairs of the house and senate tax committees prior to 
 34.5   publication. 
 34.6      Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 34.7   275.065, subdivision 6, is amended to read: 
 34.8      Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 34.9   Between November 29 and December 20, the governing bodies of the 
 34.10  city, county, metropolitan special taxing districts as defined 
 34.11  in subdivision 3, paragraph (i), and regional library districts 
 34.12  shall each hold a public hearing to discuss and seek public 
 34.13  comment on its final budget and property tax levy for taxes 
 34.14  payable in the following year, and the governing body of the 
 34.15  school district shall hold a public hearing to review its 
 34.16  current budget and proposed property tax levy for taxes payable 
 34.17  in the following year.  The metropolitan special taxing 
 34.18  districts shall be required to hold only a single joint public 
 34.19  hearing, the location of which will be determined by the 
 34.20  affected metropolitan agencies. 
 34.21     At a subsequent hearing, each county, school district, 
 34.22  city, and metropolitan special taxing district may amend its 
 34.23  proposed property tax levy and must adopt a final property tax 
 34.24  levy.  Each county, city, and metropolitan special taxing 
 34.25  district may also amend its proposed budget and must adopt a 
 34.26  final budget at the subsequent hearing.  A school district is 
 34.27  not required to adopt its final budget at the subsequent 
 34.28  hearing.  The subsequent hearing of a taxing authority must be 
 34.29  held on a date subsequent to the date of the taxing authority's 
 34.30  initial public hearing, or subsequent to the date of its 
 34.31  continuation hearing if a continuation hearing is held.  The 
 34.32  subsequent hearing may be held at a regularly scheduled board or 
 34.33  council meeting or at a special meeting scheduled for the 
 34.34  purposes of the subsequent hearing.  The subsequent hearing of a 
 34.35  taxing authority does not have to be coordinated by the county 
 34.36  auditor to prevent a conflict with an initial hearing, a 
 35.1   continuation hearing, or a subsequent hearing of any other 
 35.2   taxing authority.  All subsequent hearings must be held prior to 
 35.3   five working days after December 20 of the levy year. 
 35.4      The time and place of the subsequent hearing must be 
 35.5   announced at the initial public hearing or at the continuation 
 35.6   hearing. 
 35.7      The property tax levy certified under section 275.07 by a 
 35.8   city, county, metropolitan special taxing district, regional 
 35.9   library district, or school district must not exceed the 
 35.10  proposed levy determined under subdivision 1, except by an 
 35.11  amount up to the sum of the following amounts: 
 35.12     (1) the amount of a school district levy whose voters 
 35.13  approved a referendum to increase taxes under section 124.82, 
 35.14  subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
 35.15  or 136C.411, after the proposed levy was certified; 
 35.16     (2) the amount of a city or county levy approved by the 
 35.17  voters after the proposed levy was certified; 
 35.18     (3) the amount of a levy to pay principal and interest on 
 35.19  bonds issued or approved by the voters under section 475.58 
 35.20  after the proposed levy was certified; 
 35.21     (4) the amount of a levy to pay costs due to a natural 
 35.22  disaster occurring after the proposed levy was certified, if 
 35.23  that amount is approved by the commissioner of revenue under 
 35.24  subdivision 6a; 
 35.25     (5) the amount of a levy to pay tort judgments against a 
 35.26  taxing authority that become final after the proposed levy was 
 35.27  certified, if the amount is approved by the commissioner of 
 35.28  revenue under subdivision 6a; 
 35.29     (6) the amount of an increase in levy limits certified to 
 35.30  the taxing authority by the commissioner of children, families, 
 35.31  and learning after the proposed levy was certified; and 
 35.32     (7) the amount required under section 124.755. 
 35.33     At the hearing under this subdivision, (i) the percentage 
 35.34  increase in property taxes proposed by the taxing authority, if 
 35.35  any, and the specific purposes for which property tax revenues 
 35.36  are being increased, (ii) the amount of the total budget, and 
 36.1   its components, (iii) revenues and expenditures, by type and 
 36.2   amount, and (iv) changes in the budget, as compared to the 
 36.3   current year's budget, must be discussed.  
 36.4      During the discussion, the governing body shall hear 
 36.5   comments regarding a proposed increase and explain the reasons 
 36.6   for the proposed increase.  The public shall be allowed to speak 
 36.7   and to ask questions.  At the subsequent hearing held as 
 36.8   provided in this subdivision, the governing body, other than the 
 36.9   governing body of a school district, shall adopt its final 
 36.10  property tax levy prior to adopting its final budget. 
 36.11     If the hearing is not completed on its scheduled date, the 
 36.12  taxing authority must announce, prior to adjournment of the 
 36.13  hearing, the date, time, and place for the continuation of the 
 36.14  hearing.  The continued hearing must be held at least five 
 36.15  business days but no more than 14 business days after the 
 36.16  original hearing. 
 36.17     The hearing must be held after 5:00 p.m. if scheduled on a 
 36.18  day other than Saturday.  No hearing may be held on a Sunday.  
 36.19  The governing body of a county shall hold a hearing on the 
 36.20  second Tuesday in December each year, and may hold additional 
 36.21  hearings on other dates before December 20 if necessary for the 
 36.22  convenience of county residents.  If the county needs a 
 36.23  continuation of its hearing, the continued hearing shall be held 
 36.24  on the third Tuesday in December.  If the third Tuesday in 
 36.25  December falls on December 21, the county's continuation hearing 
 36.26  shall be held on Monday, December 20.  The county auditor shall 
 36.27  provide for the coordination of hearing dates for all cities and 
 36.28  school districts within the county. 
 36.29     The metropolitan special taxing districts shall hold a 
 36.30  joint public hearing on the first Monday of December.  A 
 36.31  continuation hearing, if necessary, shall be held on the second 
 36.32  Monday of December. 
 36.33     By August 10, each school board and the board of the 
 36.34  regional library district shall certify to the county auditors 
 36.35  of the counties in which the school district or regional library 
 36.36  district is located the dates on which it elects to hold its 
 37.1   hearings and any continuations.  If a school board or regional 
 37.2   library district does not certify the dates by August 10, the 
 37.3   auditor will assign the hearing date.  The dates elected or 
 37.4   assigned must not conflict with the hearing dates of the county 
 37.5   or the metropolitan special taxing districts.  By August 20, the 
 37.6   county auditor shall notify the clerks of the cities within the 
 37.7   county of the dates on which school districts and regional 
 37.8   library districts have elected to hold their hearings.  At the 
 37.9   time a city certifies its proposed levy under subdivision 1 it 
 37.10  shall certify the dates on which it elects to hold its hearings 
 37.11  and any continuations.  The city must not select dates that 
 37.12  conflict with the county hearing dates, metropolitan special 
 37.13  taxing district dates, or with those elected by or assigned to 
 37.14  the school districts or regional library district in which the 
 37.15  city is located. 
 37.16     The county hearing dates and the city, metropolitan special 
 37.17  taxing district, regional library district, and school district 
 37.18  hearing dates must be designated on the notices required under 
 37.19  subdivision 3.  The continuation dates need not be stated on the 
 37.20  notices.  
 37.21     This subdivision does not apply to towns and special taxing 
 37.22  districts other than regional library districts and metropolitan 
 37.23  special taxing districts. 
 37.24     Notwithstanding the requirements of this section, the 
 37.25  employer is required to meet and negotiate over employee 
 37.26  compensation as provided for in chapter 179A.  
 37.27     Sec. 7.  Minnesota Statutes 1994, section 275.07, is 
 37.28  amended by adding a subdivision to read: 
 37.29     Subd. 5.  [LEVY REDUCTION.] If a county, city, or 
 37.30  metropolitan special taxing district certifies a levy under 
 37.31  subdivision 1 that would exceed the levy limitation certified to 
 37.32  that taxing authority by the commissioner of revenue under 
 37.33  section 275.0645, subdivision 1, for the taxes payable year, and 
 37.34  if the excess levy was not approved by the voters at a 
 37.35  referendum held on the second Tuesday in November preceding the 
 37.36  levy certification date under subdivision 1, the county auditor 
 38.1   will reduce the amount of the final certified levy so that it 
 38.2   does not exceed that taxing authority's levy limitation, as 
 38.3   certified by the commissioner.  
 38.4      Sec. 8.  Minnesota Statutes 1994, section 275.07, is 
 38.5   amended by adding a subdivision to read: 
 38.6      Subd. 6.  [AID REDUCTION.] If a county, city, or 
 38.7   metropolitan special taxing district certifies a levy under 
 38.8   subdivision 1 that would exceed the levy limitation certified to 
 38.9   that taxing authority by the commissioner of revenue under 
 38.10  section 275.0645, subdivision 1, for the taxes payable year, and 
 38.11  if the excess levy was approved by the voters at a referendum 
 38.12  held on the second Tuesday in November preceding the levy 
 38.13  certification date under subdivision 1, the commissioner of 
 38.14  revenue will reduce the amount of local government aid, 
 38.15  homestead and agricultural credit aid, county criminal justice 
 38.16  aid, and family preservation aid, to be paid to the taxing 
 38.17  authority by such an amount that the total reduction equals 50 
 38.18  percent of the amount by which the total levy exceeds the 
 38.19  certified levy limitation for the payable year times one plus 
 38.20  the rate of increase in equalized, but nonlimited, taxable 
 38.21  market value within the jurisdiction for the current assessment 
 38.22  year as compared to the prior assessment year.  One-half of the 
 38.23  reduction amount shall be deducted from payments made in July of 
 38.24  the property taxes payable year, and one-half of the reduction 
 38.25  amount shall be deducted from payments made in December of the 
 38.26  property taxes payable year.  If the taxing authority's amount 
 38.27  of local government aid, homestead and agricultural credit aid, 
 38.28  county criminal justice aid, and family preservation aid payable 
 38.29  in the year that a voter approved excess levy is collected is 
 38.30  less than the reduction amount, the commissioner of revenue 
 38.31  shall certify an amount to the commissioner of transportation to 
 38.32  be deducted from transportation aids payable that year, or an 
 38.33  amount to the commissioner of human services to be deducted from 
 38.34  community social service aids payable in that year, so that the 
 38.35  total reduction amount is deducted from state aids.  If the 
 38.36  state aids listed in this subdivision, otherwise to be paid to 
 39.1   the taxing authority in the property taxes payable year, do not 
 39.2   equal the reduction amount for that year, the commissioner of 
 39.3   revenue shall certify to the county auditor the amount by which 
 39.4   the reduction amount exceeds the otherwise scheduled state aid 
 39.5   payments.  That amount shall be proportionately deducted by the 
 39.6   county auditor from the property tax distributions to the taxing 
 39.7   authority resulting from the excess levy.  The amounts deducted 
 39.8   from property tax collections shall be forwarded to the 
 39.9   commissioner of revenue for deposit in the general fund of the 
 39.10  state treasury.  
 39.11     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 39.12  276.04, subdivision 2, is amended to read: 
 39.13     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 39.14  shall provide for the printing of the tax statements.  The 
 39.15  commissioner of revenue shall prescribe the form of the property 
 39.16  tax statement and its contents.  The statement must contain a 
 39.17  tabulated statement of the dollar amount due to each taxing 
 39.18  authority from the parcel of real property for which a 
 39.19  particular tax statement is prepared.  The dollar amounts due 
 39.20  the county, township or municipality, the total of the 
 39.21  metropolitan special taxing districts as defined in section 
 39.22  275.065, subdivision 3, paragraph (i), state-determined school 
 39.23  district levy, school district excess referenda levy, remaining 
 39.24  school district levy, and the total of other voter approved 
 39.25  referenda levies based on market value under section 275.61 must 
 39.26  be separately stated.  The amounts due all other special taxing 
 39.27  districts, if any, may be aggregated.  For the purposes of this 
 39.28  subdivision, "state-determined school district levy" means the 
 39.29  levy certified under section 124A.23, subdivision 2 or 3.  For 
 39.30  the purposes of this subdivision, "school district excess 
 39.31  referenda levy" means school district taxes for operating 
 39.32  purposes approved at referenda, including those taxes based on 
 39.33  net tax capacity as well as those based on market value.  
 39.34  "School district excess referenda levy" does not include school 
 39.35  district taxes for capital expenditures approved at referendums 
 39.36  or school district taxes to pay for the debt service on bonds 
 40.1   approved at referenda.  The amount of the tax on contamination 
 40.2   value imposed under sections 270.91 to 270.98, if any, must also 
 40.3   be separately stated.  The dollar amounts, including the dollar 
 40.4   amount of any special assessments, may be rounded to the nearest 
 40.5   even whole dollar.  For purposes of this section whole 
 40.6   odd-numbered dollars may be adjusted to the next higher 
 40.7   even-numbered dollar.  The amount of market value excluded under 
 40.8   section 273.11, subdivision 16, if any, must also be listed on 
 40.9   the tax statement.  The statement shall include the following 
 40.10  sentence, printed in upper case letters in boldface print:  "THE 
 40.11  STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 40.12  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 40.13  CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 40.14     (b) The property tax statements for manufactured homes and 
 40.15  sectional structures taxed as personal property shall contain 
 40.16  the same information that is required on the tax statements for 
 40.17  real property.  
 40.18     (c) Real and personal property tax statements must contain 
 40.19  the following information in the order given in this paragraph.  
 40.20  The information must contain the current year tax information in 
 40.21  the right column with the corresponding information for the 
 40.22  previous year in a column on the left: 
 40.23     (1) the property's estimated market value under section 
 40.24  273.11, subdivision 1; 
 40.25     (2) the property's taxable market value after reductions 
 40.26  under section 273.11, subdivisions 1a and 16; 
 40.27     (3) the property's gross tax, calculated by multiplying the 
 40.28  property's gross tax capacity times the total local tax rate and 
 40.29  adding to the result the sum of the aids enumerated in clause 
 40.30  (3); 
 40.31     (4) a total of the following aids: 
 40.32     (i) education aids payable under chapters 124 and 124A; 
 40.33     (ii) local government aids for cities, towns, and counties 
 40.34  under chapter 477A; and 
 40.35     (iii) disparity reduction aid under section 273.1398; 
 40.36     (5) for homestead residential and agricultural properties, 
 41.1   the homestead and agricultural credit aid apportioned to the 
 41.2   property.  This amount is obtained by multiplying the total 
 41.3   local tax rate by the difference between the property's gross 
 41.4   and net tax capacities under section 273.13.  This amount must 
 41.5   be separately stated and identified as "homestead and 
 41.6   agricultural credit."  For purposes of comparison with the 
 41.7   previous year's amount for the statement for taxes payable in 
 41.8   1990, the statement must show the homestead credit for taxes 
 41.9   payable in 1989 under section 273.13, and the agricultural 
 41.10  credit under section 273.132 for taxes payable in 1989; 
 41.11     (6) any credits received under sections 273.119; 273.123; 
 41.12  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 41.13  473H.10, except that the amount of credit received under section 
 41.14  273.135 must be separately stated and identified as "taconite 
 41.15  tax relief"; and 
 41.16     (7) the net tax payable in the manner required in paragraph 
 41.17  (a).  
 41.18     The commissioner of revenue shall certify to the county 
 41.19  auditor the actual or estimated aids enumerated in clauses (3) 
 41.20  and (4) that local governments will receive in the following 
 41.21  year.  In the case of a county containing a city of the first 
 41.22  class, for taxes levied in 1991, and for all counties for taxes 
 41.23  levied in 1992 and thereafter, the commissioner must certify 
 41.24  this amount by September 1.  
 41.25     Sec. 10.  [EFFECTIVE DATE.] 
 41.26     Sections 2 to 9 are effective for taxes levied in 1996, 
 41.27  payable in 1997, and thereafter. 
 41.28                             ARTICLE 5 
 41.29                STATE TAX REFUND OF EXCESS REVENUES 
 41.30     Section 1.  Minnesota Statutes 1994, section 16A.102, is 
 41.31  amended by adding a subdivision to read: 
 41.32     Subd. 4.  [STATE TAX REFUND.] As a part of each forecast of 
 41.33  state revenue and expenditures that is prepared under section 
 41.34  16A.103 in February of the first year of a biennium, the 
 41.35  commissioner of finance shall determine the percentage of 
 41.36  Minnesota personal income that was collected in state taxes and 
 42.1   other state revenues for the previous biennium.  If that 
 42.2   percentage exceeds the target maximum percentage adopted by the 
 42.3   legislature under subdivision 2 by more than two-tenths of one 
 42.4   percentage point, then an individual income tax refund is 
 42.5   required.  The first five-hundredths of one percentage point 
 42.6   excess amount shall be deposited into the state budget reserve 
 42.7   account.  The refunded amount shall equal the excess greater 
 42.8   than five-hundredths of one percentage point and shall be 
 42.9   refunded to individual income taxpayers pro rata based on the 
 42.10  individual income tax imposed by chapter 290 less all the 
 42.11  credits allowed by chapter 290 other than the credits for 
 42.12  withholding taxes allowed by section 290.92, subdivision 12, for 
 42.13  the year for which the forecast was made.  If the February 
 42.14  forecast shows a percentage equal to or less than two-tenths of 
 42.15  one percentage point then that excess amount shall be deposited 
 42.16  into the state budget reserve account. 
 42.17     Sec. 2.  [EFFECTIVE DATE.] 
 42.18     Section 1 is effective the day following final enactment.