as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 08/14/1998 |
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 taxes2.1payable in 1992, the market value of class 1a property that2.2exceeds $72,000 but does not exceed $115,000 has a class rate of2.3two percent of its market value; and the market value of class2.41a property that exceeds $115,000 has a class rate of 2.52.5percent of its market value. For taxes payable in 1993 and2.6thereafter,The market value of class 1a property that exceeds 2.7 $72,000 has a class rate oftwoone 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 ofone.66 percent of total market 4.9 valuefor taxes payable in 1993 and thereafterwith 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 ofone.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 of1.5one 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 of1.5one 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 ofthreetwo percent of the first 7.23 $100,000 of market valuefor taxes payable in 1993 and7.24thereafter,and5.062.85 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 of2.31.5 percent of the first $50,000 8.32 of market value and3.62.4 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 offour2.5 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 thethreetwo 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 of2.31.5 percent of market value 10.13for taxes payable in 1996 and thereafter. All other class 4a 10.14 property has a class rate of3.4two percent of market valuefor10.15taxes 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 of2.8 percent of market10.27value for taxes payable in 1992, 2.5 percent of market value for10.28taxes payable in 1993, and 2.31.5 percent of market valuefor10.29taxes 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 ofthreetwo 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 of2.31.35 percent of 16.2 market value, except that(i) for each parcel of seasonal16.3residential recreational property not used for commercial16.4purposes under clause (5) the first $72,000 of market value on16.5each parcel has a class rate of 1.9 percent for taxes payable in16.61997 and 1.8 percent for taxes payable in 1998 and thereafter,16.7and the market value of each parcel that exceeds $72,000 has a16.8class rate of 2.5 percent, and (ii)manufactured home parks 16.9 assessed under clause (8) have a class rate oftwo1.5 percent 16.10for 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 oftwo1.5 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 of5.06three 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 in19961997 the class rate 19.3 applicable to allclass 4a shall be 3.4 percentclasses 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 deliverafter November 10 andon or beforeNovember 24October 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.