HF 3

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to property taxation; replacing certain school district levies with state;
modifying computation of the credits; increasing property tax refunds for
homeowners and renters; increasing eligibility for senior deferral; increasing aids
to cities and counties; appropriating money; amending Minnesota Statutes 2006,
sections 123B.53, subdivision 5; 126C.01, by adding subdivisions; 126C.10,
subdivisions 13a, 29; 126C.17, subdivision 6; 126C.44; 273.1384, subdivisions 1,
2, by adding subdivisions; 290A.04, subdivisions 2, 2a; 290B.03, subdivision 1;
477A.013, subdivision 9; 477A.03, subdivisions 2a, 2b, by adding a subdivision.

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

Section 1.

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

Subd. 5.

Equalized debt service levy.

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

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

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

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

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

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

(2) deleted text begin $8,000 deleted text end new text begin ... percent of the statewide adjusted net tax capacity equalizing factor new text end .

Sec. 2.

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

new text begin Subd. 2a. new text end

new text begin Adjusted net tax capacity equalizing factor. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

new text begin Subd. 3a. new text end

new text begin Referendum market value equalizing factor. new text end

new text begin The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum market
value of all school districts in the state for the year before the year the levy is certified by
the total number of resident marginal cost pupil units in the state for the current school year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subd. 13a.

Operating capital levy.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:

Subd. 29.

Equity levy.

To obtain equity revenue for fiscal year 2005 and later, a
district may levy an amount not more than the product of its equity revenue new text begin , as calculated
in subdivision 24, paragraphs (a) through (..), new text end for the fiscal year times the lesser of one or
the ratio of its referendum market value per resident marginal cost pupil unit to deleted text begin $476,000 deleted text end new text begin
... percent of the referendum market value equalizing factor new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

Subd. 6.

Referendum equalization levy.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2006, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

new text begin Subdivision 1. new text end

new text begin Revenue. new text end

deleted text begin Each district may make a levy on all taxable property
located within the district for the purposes specified in this section. The maximum amount
which may be levied for all costs under this section shall be equal to deleted text end new text begin Safe school revenue
equals new text end $27 multiplied by the district's adjusted marginal cost pupil units for the school year.

new text begin Subd. 2. new text end

new text begin Levy. new text end

new text begin A school district's safe schools levy equals its safe school revenue
times the lesser of one or the ratio of the district's adjusted net tax capacity per adjusted
marginal cost pupil unit to ... percent of the adjusted net tax capacity equalizing factor.
new text end

new text begin Subd. 3. new text end

new text begin Aid. new text end

new text begin A school district's safe schools aid equals the difference between its
safe schools revenue and its safe schools levy.
new text end

new text begin Subd. 4. new text end

new text begin Revenue uses. new text end

The proceeds of the levy must be reserved and used for
directly funding the following purposes or for reimbursing the cities and counties who
contract with the district for the following purposes: (1) to pay the costs incurred for the
salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; or
(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, and
violence prevention measures taken by the school district. For expenditures under clause
(1), the district must initially attempt to contract for services to be provided by peace
officers or sheriffs with the police department of each city or the sheriff's department
of the county within the district containing the school receiving the services. If a local
police department or a county sheriff's department does not wish to provide the necessary
services, the district may contract for these services with any other police or sheriff's
department located entirely or partially within the school district's boundaries.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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

Subdivision 1.

Residential homestead market value credit.

Each county auditor
shall determine a homestead credit for each class 1a, 1b, and 2a homestead property within
the county equal to 0.4 percent of the deleted text begin first $76,000 of deleted text end market value of the property new text begin up to
the residential homestead market value credit valuation limit under subdivision 5 new text end minus
.09 percent of the market value in excess of deleted text begin $76,000 deleted text end new text begin the limit new text end . The credit amount may
not be less than zero. In the case of an agricultural or resort homestead, only the market
value of the house, garage, and immediately surrounding one acre of land is eligible in
determining the property's homestead credit. In the case of a property that is classified as
part homestead and part nonhomestead, (i) the credit shall apply only to the homestead
portion of the property, but (ii) if a portion of a property is classified as nonhomestead
solely because not all the owners occupy the property, not all the owners have qualifying
relatives occupying the property, or solely because not all the spouses of owners occupy
the property, the credit amount shall be initially computed as if that nonhomestead portion
were also in the homestead class and then prorated to the owner-occupant's percentage
of ownership. For the purpose of this section, when an owner-occupant's spouse does
not occupy the property, the percentage of ownership for the owner-occupant spouse is
one-half of the couple's ownership percentage.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 273.1384, subdivision 2, is amended to read:

Subd. 2.

Agricultural homestead market value credit.

Property classified
as class 2a agricultural homestead is eligible for an agricultural credit. The credit is
computed using the property's agricultural credit market value, defined for this purpose
as the property's class 2a market value excluding the market value of the house, garage,
and immediately surrounding one acre of land. The credit is equal to 0.3 percent deleted text begin of the
first $115,000 deleted text end of the property's agricultural credit market value new text begin up to the agricultural
homestead market value credit valuation limit under subdivision 6 new text end minus .05 percent of
the property's agricultural credit market value in excess of deleted text begin $115,000 deleted text end new text begin the limit new text end , subject to a
maximum reduction of $115. In the case of property that is classified in part as class 2a
agricultural homestead and in part as class 2b nonhomestead farm land solely because not
all the owners occupy or farm the property, not all the owners have qualifying relatives
occupying or farming the property, or solely because not all the spouses of owners occupy
the property, the credit must be initially computed as if that nonhomestead agricultural
land was also classified as class 2a agricultural homestead and then prorated to the
owner-occupant's percentage of ownership.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 273.1384, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Residential homestead market value credit valuation limit. new text end

new text begin (a)
Beginning with assessment year 2007, the commissioner of revenue shall annually
certify the residential homestead market value credit valuation limit as the product of (i)
$76,000, and (ii) the ratio of the statewide average taxable market value of a residential
homestead in the preceding assessment year to the statewide average taxable market
value of a residential homestead for assessment year 2005. The limit must be rounded to
the nearest $1,000.
new text end

new text begin (b) The commissioner shall certify the limit by January 2 of each assessment year,
except that for assessment year 2007, the commissioner shall certify the limit by June
1, 2007.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2006, section 273.1384, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Agricultural homestead market value credit valuation limit. new text end

new text begin (a)
Beginning with assessment year 2007, the commissioner of revenue shall annually certify
the agricultural homestead market value credit valuation limit as the product of (i)
$115,000, and (ii) the ratio of the statewide average taxable market value of agricultural
property per acre of deeded farm land in the preceding assessment year to the statewide
average taxable market value of agricultural property per acre of deeded farm land for
assessment year 2005. The limit must be rounded to the nearest $1,000.
new text end

new text begin (b) For the purposes of this subdivision, "agricultural property" means all class 2
property under section 273.13, subdivision 23, except (1) timberland, (2) a landing area
or public access area of a privately owned public use airport, and (3) property consisting
of the house, garage, and immediately surrounding one acre of land of an agricultural
homestead.
new text end

new text begin (c) The commissioner shall certify the limit by January 2 of each assessment year,
except that for assessment year 2007 the commissioner shall certify the limit by June
1, 2007.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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

Subd. 2.

Homeowners.

new text begin (a) new text end A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
deleted text begin $0 to 1,189 deleted text end	1.0 percent	15 percent	deleted text begin $1,450 deleted text end
new text begin $0 to $1,519 new text end			new text begin $1,850 new text end
deleted text begin 1,190 to 2,379 deleted text end	1.1 percent	15 percent	deleted text begin $1,450 deleted text end
new text begin 1,520 to 3,029 new text end			new text begin $1,850 new text end
deleted text begin 2,380 to 3,589 deleted text end	1.2 percent	15 percent	deleted text begin $1,410 deleted text end
new text begin 3,030 to 4,579 new text end			new text begin $1,790 new text end
deleted text begin 3,590 to 4,789 deleted text end	1.3 percent	20 percent	deleted text begin $1,410 deleted text end
new text begin 4,580 to 6,119 new text end			new text begin $1,790 new text end
deleted text begin 4,790 to 5,979 deleted text end	1.4 percent	20 percent	deleted text begin $1,360 deleted text end
new text begin 6,120 to 7,639 new text end			new text begin $1,730 new text end
deleted text begin 5,980 to 8,369 deleted text end	1.5 percent	20 percent	deleted text begin $1,360 deleted text end
new text begin 7,640 to 10,679 new text end			new text begin $1,730 new text end
deleted text begin 8,370 to 9,559 deleted text end	1.6 percent	25 percent	deleted text begin $1,310 deleted text end
new text begin 10,680 to 12,209 new text end			new text begin $1,670 new text end
deleted text begin 9,560 to 10,759 deleted text end	1.7 percent	25 percent	deleted text begin $1,310 deleted text end
new text begin 12,210 to 13,739 new text end			new text begin $1,670 new text end
deleted text begin 10,760 to 11,949 deleted text end	1.8 percent	25 percent	deleted text begin $1,260 deleted text end
new text begin 13,740 to 15,259 new text end			new text begin $1,600 new text end
deleted text begin 11,950 to 13,139 deleted text end	1.9 percent	30 percent	deleted text begin $1,260 deleted text end
new text begin 15,260 to 16,779 new text end			new text begin $1,600 new text end
deleted text begin 13,140 to 14,349 deleted text end	2.0 percent	30 percent	deleted text begin $1,210 deleted text end
new text begin 16,780 to 18,319 new text end			new text begin $1,540 new text end
deleted text begin 14,350 to 16,739 deleted text end	2.1 percent	30 percent	deleted text begin $1,210 deleted text end
new text begin 18,320 to 21,379 new text end			new text begin $1,540 new text end
deleted text begin 16,740 to 17,929 deleted text end	2.2 percent	35 percent	deleted text begin $1,160 deleted text end
new text begin 21,380 to 22,899 new text end			new text begin $1,480 new text end
deleted text begin 17,930 to 19,119 deleted text end	2.3 percent	35 percent	deleted text begin $1,160 deleted text end
new text begin 22,900 to 24,409 new text end			new text begin $1,480 new text end
deleted text begin 19,120 to 20,319 deleted text end	2.4 percent	35 percent	deleted text begin $1,110 deleted text end
new text begin 24,410 to 25,949 new text end			new text begin $1,410 new text end
deleted text begin 20,320 to 25,099 deleted text end	2.5 percent	40 percent	deleted text begin $1,110 deleted text end
new text begin 25,950 to 32,049 new text end			new text begin $1,410 new text end
deleted text begin 25,100 to 28,679 deleted text end	2.6 percent	40 percent	deleted text begin $1,070 deleted text end
new text begin 32,050 to 36,629 new text end			new text begin $1,360 new text end
deleted text begin 28,680 to 35,849 deleted text end	2.7 percent	40 percent	deleted text begin $1,070 deleted text end
new text begin 36,630 to 45,779 new text end			new text begin $1,360 new text end
deleted text begin 35,850 to 41,819 deleted text end	2.8 percent	45 percent	deleted text begin $ 970 deleted text end
new text begin 45,780 to 53,409 new text end			new text begin $1,230 new text end
deleted text begin 41,820 to 47,799 deleted text end	3.0 percent	45 percent	deleted text begin $ 970 deleted text end
new text begin 53,410 to 61,049 new text end			new text begin $1,230 new text end
deleted text begin 47,800 to 53,779 deleted text end	3.2 percent	45 percent	deleted text begin $ 870 deleted text end
new text begin 61,050 to 68,679 new text end			new text begin $1,110 new text end
deleted text begin 53,780 to 59,749 deleted text end	3.5 percent	50 percent	deleted text begin $ 780 deleted text end
new text begin 68,680 to 76,309 new text end			new text begin $990 new text end
deleted text begin 59,750 to 65,729 deleted text end	4.0 percent	50 percent	deleted text begin $ 680 deleted text end
new text begin 76,310 to 83,939 new text end			new text begin $870 new text end
deleted text begin 65,730 to 69,319 deleted text end	4.0 percent	50 percent	deleted text begin $ 580 deleted text end
new text begin 83,940 to 88,529 new text end			new text begin $740 new text end
deleted text begin 69,320 to 71,719 deleted text end	4.0 percent	50 percent	deleted text begin $ 480 deleted text end
new text begin 88,530 to 91,589 new text end			new text begin $610 new text end
deleted text begin 71,720 to 74,619 deleted text end	4.0 percent	50 percent	deleted text begin $ 390 deleted text end
new text begin 91,590 to 95,299 new text end			new text begin $500 new text end
deleted text begin 74,620 to 77,519 deleted text end	4.0 percent	50 percent	deleted text begin $ 290 deleted text end
new text begin 95,300 to 98,999 new text end			new text begin $370 new text end

new text begin (b) new text end The payment made to a claimant shall be the amount of the state refund
calculated under this subdivision. No payment is allowed if the claimant's household
income is deleted text begin $77,520 deleted text end new text begin $99,000 new text end or more.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 2a.

Renters.

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

Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
deleted text begin $0 to 3,589 deleted text end	1.0 percent	5 percent	deleted text begin $1,190 deleted text end
new text begin $0 to 4,579 new text end			new text begin $1,500 new text end
deleted text begin 3,590 to 4,779 deleted text end	1.0 percent	10 percent	deleted text begin $1,190 deleted text end
new text begin 4,580 to 6,099 new text end			new text begin $1,500 new text end
deleted text begin 4,780 to 5,969 deleted text end	1.1 percent	10 percent	deleted text begin $1,190 deleted text end
new text begin 6,100 to 7,619 new text end			new text begin $1,500 new text end
deleted text begin 5,970 to 8,369 deleted text end	1.2 percent	10 percent	deleted text begin $1,190 deleted text end
new text begin 7,620 to 10,669 new text end			new text begin $1,500 new text end
deleted text begin 8,370 to 10,759 deleted text end	1.3 percent	15 percent	deleted text begin $1,190 deleted text end
new text begin 10,670 to 13,729 new text end			new text begin $1,500 new text end
deleted text begin 10,760 to 11,949 deleted text end	1.4 percent	15 percent	deleted text begin $1,190 deleted text end
new text begin 13,730 to 15,239 new text end			new text begin $1,500 new text end
deleted text begin 11,950 to 13,139 deleted text end	1.4 percent	20 percent	deleted text begin $1,190 deleted text end
new text begin 15,240 to 16,769 new text end			new text begin $1,500 new text end
deleted text begin 13,140 to 15,539 deleted text end	1.5 percent	20 percent	deleted text begin $1,190 deleted text end
new text begin 16,770 to 19,829 new text end			new text begin $1,500 new text end
deleted text begin 15,540 to 16,729 deleted text end	1.6 percent	20 percent	deleted text begin $1,190 deleted text end
new text begin 19,830 to 21,349 new text end			new text begin $1,500 new text end
deleted text begin 16,730 to 17,919 deleted text end	1.7 percent	25 percent	deleted text begin $1,190 deleted text end
new text begin 21,350 to 22,859 new text end			new text begin $1,500 new text end
deleted text begin 17,920 to 20,319 deleted text end	1.8 percent	25 percent	deleted text begin $1,190 deleted text end
new text begin 22,860 to 25,929 new text end			new text begin $1,500 new text end
deleted text begin 20,320 to 21,509 deleted text end	1.9 percent	30 percent	deleted text begin $1,190 deleted text end
new text begin 25,930 to 27,439 new text end			new text begin $1,500 new text end
deleted text begin 21,510 to 22,699 deleted text end	2.0 percent	30 percent	deleted text begin $1,190 deleted text end
new text begin 27,440 to 28,959 new text end			new text begin $1,500 new text end
deleted text begin 22,700 to 23,899 deleted text end	2.2 percent	30 percent	deleted text begin $1,190 deleted text end
new text begin 28,960 to 30,499 new text end			new text begin $1,500 new text end
deleted text begin 23,900 to 25,089 deleted text end	2.4 percent	30 percent	deleted text begin $1,190 deleted text end
new text begin 30,500 to 32,009 new text end			new text begin $1,500 new text end
deleted text begin 25,090 to 26,289 deleted text end	2.6 percent	35 percent	deleted text begin $1,190 deleted text end
new text begin 32,010 to 33,539 new text end			new text begin $1,500 new text end
deleted text begin 26,290 to 27,489 deleted text end	2.7 percent	35 percent	deleted text begin $1,190 deleted text end
new text begin 33,540 to 35,079 new text end			new text begin $1,500 new text end
deleted text begin 27,490 to 28,679 deleted text end	2.8 percent	35 percent	deleted text begin $1,190 deleted text end
new text begin 35,080 to 36,589 new text end			new text begin $1,500 new text end
deleted text begin 28,680 to 29,869 deleted text end	2.9 percent	40 percent	deleted text begin $1,190 deleted text end
new text begin 36,590 to 38,109 new text end			new text begin $1,500 new text end
deleted text begin 29,870 to 31,079 deleted text end	3.0 percent	40 percent	deleted text begin $1,190 deleted text end
new text begin 38,110 to 39,649 new text end			new text begin $1,500 new text end
deleted text begin 31,080 to 32,269 deleted text end	3.1 percent	40 percent	deleted text begin $1,190 deleted text end
new text begin 39,650 to 41,169 new text end			new text begin $1,500 new text end
deleted text begin 32,270 to 33,459 deleted text end	3.2 percent	40 percent	deleted text begin $1,190 deleted text end
new text begin 41,170 to 42,689 new text end			new text begin $1,500 new text end
deleted text begin 33,460 to 34,649 deleted text end	3.3 percent	45 percent	deleted text begin $1,080 deleted text end
new text begin 42,690 to 44,209 new text end			new text begin $1,370 new text end
deleted text begin 34,650 to 35,849 deleted text end	3.4 percent	45 percent	deleted text begin $ 960 deleted text end
new text begin 44,210 to 45,739 new text end			new text begin $1,220 new text end
deleted text begin 35,850 to 37,049 deleted text end	3.5 percent	45 percent	deleted text begin $ 830 deleted text end
new text begin 45,740 to 47,279 new text end			new text begin $1,050 new text end
deleted text begin 37,050 to 38,239 deleted text end	3.5 percent	50 percent	deleted text begin $ 720 deleted text end
new text begin 47,280 to 48,789 new text end			new text begin $910 new text end
deleted text begin 38,240 to 39,439 deleted text end	3.5 percent	50 percent	deleted text begin $ 600 deleted text end
new text begin 48,790 to 50,319 new text end			new text begin $760 new text end
deleted text begin 38,440 to 40,629 deleted text end	3.5 percent	50 percent	deleted text begin $ 360 deleted text end
new text begin 50,320 to 51,839 new text end			new text begin $450 new text end
deleted text begin 40,630 to 41,819 deleted text end	3.5 percent	50 percent	deleted text begin $ 120 deleted text end
new text begin 51,840 to 53,359 new text end			new text begin $150 new text end

new text begin (b) new text end The payment made to a claimant is the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin $41,820 deleted text end new text begin $53,360 new text end or more.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:

Subdivision 1.

Program qualifications.

The qualifications for the senior citizens'
property tax deferral program are as follows:

(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, deleted text begin both deleted text end new text begin one new text end of the spouses must be at least 65
years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status;

(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin $60,000 deleted text end new text begin the maximum income under section 290A.04, subdivision 2,
paragraph (b), permitting a claimant to be eligible for a property tax refund for property
taxes payable in the calendar year new text end ;

(3) the homestead must have been owned and occupied as the homestead of at
least one of the qualifying homeowners for at least 15 years prior to the year the initial
application is filed;

(4) there are no state or federal tax liens or judgment liens on the homesteaded
property;

(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and

(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any
delinquent property taxes, penalties, and interest, but not including property taxes payable
during the year, does not exceed 75 percent of the assessor's estimated market value for
the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read:

Subd. 9.

City aid distribution.

(a) In calendar year 2002 and thereafter, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, and (2) its city aid base.

(b) For aids payable in deleted text begin 2005 and thereafter deleted text end new text begin 2008 new text end , the total aid for any city shall
not exceed the sum of (1) deleted text begin ten deleted text end new text begin ... new text end percent of the city's net levy for the year prior to the
aid distribution plus (2) its total aid in the previous year. new text begin For aids payable in 2009 and
thereafter, the total aid for any city must not exceed the sum of (1) ... percent of the city's
net levy for the year prior to the aid distribution plus (2) its total aid in the previous year. new text end new text begin
new text end For aids payable in 2005 and thereafter, the total aid for any city with a population of
2,500 or more may not decrease from its total aid under this section in the previous year by
an amount greater than ten percent of its net levy in the year prior to the aid distribution.

(c) For aids payable in 2004 only, the total aid for a city with a population less
than 2,500 may not be less than the amount it was certified to receive in 2003 minus the
greater of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special
Session chapter 21, article 5, or (2) five percent of its 2003 aid amount. For aids payable
in 2005 and thereafter, the total aid for a city with a population less than 2,500 must not be
less than the amount it was certified to receive in the previous year minus five percent
of its 2003 certified aid amount.

(d) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2008.
new text end

Sec. 16.

Minnesota Statutes 2006, section 477A.03, subdivision 2a, is amended to read:

Subd. 2a.

Cities.

deleted text begin For aids payable in 2004, the total aids paid under section
477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the
total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. deleted text end For
aids payable in 2006 and deleted text begin thereafter deleted text end new text begin 2007 new text end , the total aids paid under section 477A.013,
subdivision 9, deleted text begin is deleted text end new text begin are new text end limited to $485,052,000. new text begin For aids payable in 2008, the total aids paid
under section 477A.013, subdivision 9, are limited to $........ For aids payable in 2009
and thereafter, the total aids payable under section 477A.013, subdivision 9, are limited
to the amount paid under that subdivision in the previous year, adjusted for inflation as
provided in subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2008.
new text end

Sec. 17.

Minnesota Statutes 2006, section 477A.03, subdivision 2b, is amended to read:

Subd. 2b.

Counties.

(a) For aids payable in calendar year deleted text begin 2005 and thereafter deleted text end new text begin
2008 new text end , the total aids paid to counties under section 477A.0124, subdivision 3, are limited
to deleted text begin $100,500,000 deleted text end new text begin $....... For aids payable in 2009 and thereafter, the total aids paid to
counties under section 477A.0124, subdivision 3, are limited to the amount paid under
that subdivision in the previous year, adjusted for inflation as provided in subdivision 5 new text end .
Each calendar year, $500,000 shall be retained by the commissioner of revenue to make
reimbursements to the commissioner of finance for payments made under section 611.27.
deleted text begin For calendar year 2004, the amount shall be in addition to the payments authorized
under section 477A.0124, subdivision 1. deleted text end For calendar year deleted text begin 2005 deleted text end new text begin 2008 new text end and subsequent
years, the amount shall be deducted from the appropriation under this paragraph. The
reimbursements shall be to defray the additional costs associated with court-ordered
counsel under section 611.27. Any retained amounts not used for reimbursement in a year
shall be included in the next distribution of county need aid that is certified to the county
auditors for the purpose of property tax reduction for the next taxes payable year.

(b) For aids payable in deleted text begin 2005 deleted text end new text begin 2008 new text end , the total aids under section 477A.0124,
subdivision 4, are limited to deleted text begin $105,000,000 deleted text end new text begin $...,... new text end . For aids payable in deleted text begin 2006 deleted text end new text begin 2009 new text end and
thereafter, the total aid under section 477A.0124, subdivision 4, is limited to deleted text begin $105,132,923 deleted text end new text begin
$...,... new text end . The commissioner of finance shall bill the commissioner of revenue for the cost of
preparation of local impact notes as required by section 3.987, not to exceed $207,000 in
fiscal year 2004 and thereafter. The commissioner of education shall bill the commissioner
of revenue for the cost of preparation of local impact notes for school districts as
required by section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The
commissioner of revenue shall deduct the amounts billed under this paragraph from
the appropriation under this paragraph. The amounts deducted are appropriated to the
commissioner of finance and the commissioner of education for the preparation of local
impact notes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2008.
new text end

Sec. 18.

Minnesota Statutes 2006, section 477A.03, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin In 2009 and thereafter, the amount paid under each
subdivision adjusted for inflation is increased by an amount equal to:
new text end

new text begin (1) the amount certified to be paid under that subdivision in the previous year
multiplied by
new text end

new text begin (2) the percentage increase in the implicit price deflator for state and local
government consumption expenditures and gross investment, prepared by the Bureau of
Economic Analysis of the United States Department of Commerce for the 12-month
period ending March 31 of the previous year. The percentage increase used in this
subdivision must be no less than 2.5 percent and no greater than 5.0 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2008.
new text end