as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/06/2000 |
1.1 A bill for an act 1.2 relating to property taxation; exempting agricultural 1.3 and homestead property from the general education tax; 1.4 reducing property tax class rates; establishing a new 1.5 homestead credit program; providing for state aid 1.6 reductions and an aid reduction levy; modifying the 1.7 computation of certain school district levies; 1.8 appropriating money; amending Minnesota Statutes 1998, 1.9 sections 126C.17, by adding a subdivision; 273.1393; 1.10 275.065, subdivision 3; 275.08, subdivisions 1b and 1.11 1e; 276.04, subdivision 2; Minnesota Statutes 1999 1.12 Supplement, sections 126C.17, subdivision 6; 273.13, 1.13 subdivisions 22, 23, 24, 25, and 31; 273.1382; 275.71, 1.14 subdivisions 2, 3, and 4; proposing coding for new law 1.15 in Minnesota Statutes, chapter 273; repealing 1.16 Minnesota Statutes 1999 Supplement, section 273.13, 1.17 subdivision 24a. 1.18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.19 Section 1. Minnesota Statutes 1999 Supplement, section 1.20 126C.17, subdivision 6, is amended to read: 1.21 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a) A district's 1.22 referendum equalization levy for a referendum levied against the 1.23 referendum market value of all taxable property as defined in 1.24 section 126C.01, subdivision 3, equals the district's referendum 1.25 equalization revenue times the lesser of one or the ratio of the 1.26 district's referendum market value per resident marginal cost 1.27 pupil unit to $476,000. 1.28 (b) A district's referendum equalization levy for a 1.29 referendum levied against the net tax capacity of all taxable 1.30 property equals the district's referendum equalization revenue 1.31 times the lesser of one or the ratio of the district's adjusted 2.1 net tax capacity per resident marginal cost pupil unit to $8,404. 2.2 (c) A district's referendum equalization levy for a 2.3 2.4 referendum levied against the net tax capacity of class 1 and 2.5 class 2 property equals the district's referendum equalization 2.6 revenue times the lesser of one or the ratio of the district's 2.7 adjusted net tax capacity of class 1 and class 2 property per 2.8 resident marginal cost pupil unit to $4,902. 2.9 Sec. 2. Minnesota Statutes 1998, section 126C.17, is 2.10 amended by adding a subdivision to read: 2.11 Subd. 10a. [SCHOOL REFERENDUM LEVY; HOMESTEAD AND 2.12 AGRICULTURAL VALUE.] Notwithstanding the provisions of 2.13 subdivisions 9 and 10, a school referendum levy approved after 2.14 September 1, 2000, that is not a continuation of an expiring 2.15 levy, must be levied against the net tax capacity of class 1 and 2.16 class 2 property only, as defined under section 273.13. In the 2.17 case of a referendum levy enacted to replace an expiring levy 2.18 which increases the levy over the level of the expiring levy, 2.19 only the amount in excess of the expiring levy is subject to the 2.20 requirements of this subdivision. Any referendum levy subject 2.21 to the requirements of this subdivision must be certified 2.22 separately to the county auditor under section 275.07. 2.23 All other provisions of subdivisions 9 and 10 that do not 2.24 conflict with this subdivision apply to referendum levies under 2.25 this subdivision. 2.26 Sec. 3. Minnesota Statutes 1999 Supplement, section 2.27 273.13, subdivision 22, is amended to read: 2.28 Subd. 22. [CLASS 1.] (a) Except as provided in subdivision 2.29 23, real estate which is residential and used for homestead 2.30 purposes is class 1. The market value of class 1a property must 2.31 be determined based upon the value of the house, garage, and 2.32 land. 2.33 The first$76,000tier of market value of class 1a property 2.34 has a net class rate of one percent of its market value; and the 2.35 remaining market value of class 1a propertythat exceeds $76,0002.36 has a class rate of1.651.5 percent of its market value. For 2.37 the purposes of this subdivision, the first tier means the first 3.1 $76,000 of market value. 3.2 (b) Class 1b property includes homestead real estate or 3.3 homestead manufactured homes used for the purposes of a 3.4 homestead by 3.5 (1) any blind person, or the blind person and the blind 3.6 person's spouse; or 3.7 (2) any person, hereinafter referred to as "veteran," who: 3.8 (i) served in the active military or naval service of the 3.9 United States; and 3.10 (ii) is entitled to compensation under the laws and 3.11 regulations of the United States for permanent and total 3.12 service-connected disability due to the loss, or loss of use, by 3.13 reason of amputation, ankylosis, progressive muscular 3.14 dystrophies, or paralysis, of both lower extremities, such as to 3.15 preclude motion without the aid of braces, crutches, canes, or a 3.16 wheelchair; and 3.17 (iii) has acquired a special housing unit with special 3.18 fixtures or movable facilities made necessary by the nature of 3.19 the veteran's disability, or the surviving spouse of the 3.20 deceased veteran for as long as the surviving spouse retains the 3.21 special housing unit as a homestead; or 3.22 (3) any person who: 3.23 (i) is permanently and totally disabled and 3.24 (ii) receives 90 percent or more of total household income, 3.25 as defined in section 290A.03, subdivision 5, from 3.26 (A) aid from any state as a result of that disability; or 3.27 (B) supplemental security income for the disabled; or 3.28 (C) workers' compensation based on a finding of total and 3.29 permanent disability; or 3.30 (D) social security disability, including the amount of a 3.31 disability insurance benefit which is converted to an old age 3.32 insurance benefit and any subsequent cost of living increases; 3.33 or 3.34 (E) aid under the federal Railroad Retirement Act of 1937, 3.35 United States Code Annotated, title 45, section 228b(a)5; or 3.36 (F) a pension from any local government retirement fund 4.1 located in the state of Minnesota as a result of that 4.2 disability; or 4.3 (G) pension, annuity, or other income paid as a result of 4.4 that disability from a private pension or disability plan, 4.5 including employer, employee, union, and insurance plans and 4.6 (iii) has household income as defined in section 290A.03, 4.7 subdivision 5, of $50,000 or less; or 4.8 (4) any person who is permanently and totally disabled and 4.9 whose household income as defined in section 290A.03, 4.10 subdivision 5, is 275 percent or less of the federal poverty 4.11 level. 4.12 Property is classified and assessed under clause (4) only 4.13 if the government agency or income-providing source certifies, 4.14 upon the request of the homestead occupant, that the homestead 4.15 occupant satisfies the disability requirements of this paragraph. 4.16 Property is classified and assessed pursuant to clause (1) 4.17 only if the commissioner of economic security certifies to the 4.18 assessor that the homestead occupant satisfies the requirements 4.19 of this paragraph. 4.20 Permanently and totally disabled for the purpose of this 4.21 subdivision means a condition which is permanent in nature and 4.22 totally incapacitates the person from working at an occupation 4.23 which brings the person an income. The first $32,000 market 4.24 value of class 1b property has a net class rate of .45 percent 4.25 of its market value. The remaining market value of class 1b 4.26 property has a net class rate using the rates for class 1 or 4.27 class 2a property, whichever is appropriate, of similar market 4.28 value. 4.29 (c) Class 1c property is commercial use real property that 4.30 abuts a lakeshore line and is devoted to temporary and seasonal 4.31 residential occupancy for recreational purposes but not devoted 4.32 to commercial purposes for more than 250 days in the year 4.33 preceding the year of assessment, and that includes a portion 4.34 used as a homestead by the owner, which includes a dwelling 4.35 occupied as a homestead by a shareholder of a corporation that 4.36 owns the resort or a partner in a partnership that owns the 5.1 resort, even if the title to the homestead is held by the 5.2 corporation or partnership. For purposes of this clause, 5.3 property is devoted to a commercial purpose on a specific day if 5.4 any portion of the property, excluding the portion used 5.5 exclusively as a homestead, is used for residential occupancy 5.6 and a fee is charged for residential occupancy. Class 1c 5.7 property has a class rate of one percent of total market value 5.8 with the following limitation: the area of the property must 5.9 not exceed 100 feet of lakeshore footage for each cabin or 5.10 campsite located on the property up to a total of 800 feet and 5.11 500 feet in depth, measured away from the lakeshore. If any 5.12 portion of the class 1c resort property is classified as class 5.13 4c under subdivision 25, the entire property must meet the 5.14 requirements of subdivision 25, paragraph (d), clause (1), to 5.15 qualify for class 1c treatment under this paragraph. 5.16 (d) Class 1d property includes structures that meet all of 5.17 the following criteria: 5.18 (1) the structure is located on property that is classified 5.19 as agricultural property under section 273.13, subdivision 23; 5.20 (2) the structure is occupied exclusively by seasonal farm 5.21 workers during the time when they work on that farm, and the 5.22 occupants are not charged rent for the privilege of occupying 5.23 the property, provided that use of the structure for storage of 5.24 farm equipment and produce does not disqualify the property from 5.25 classification under this paragraph; 5.26 (3) the structure meets all applicable health and safety 5.27 requirements for the appropriate season; and 5.28 (4) the structure is not salable as residential property 5.29 because it does not comply with local ordinances relating to 5.30 location in relation to streets or roads. 5.31 The market value of class 1d property has the same class 5.32 rates as class 1a property under paragraph (a). 5.33 Sec. 4. Minnesota Statutes 1999 Supplement, section 5.34 273.13, subdivision 23, is amended to read: 5.35 Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural 5.36 land including any improvements that is homesteaded. The market 6.1 value of the house and garage and immediately surrounding one 6.2 acre of land has the same class rates as class 1a property under 6.3 subdivision 22. The value of the remaining land including 6.4 improvements up to $115,000 has a net class rate of 0.35 percent 6.5 of market value. The value of class 2a property over $115,000 6.6 of market value up to and including $600,000 market value has a 6.7 net class rate of 0.8 percent of market value. The remaining 6.8 property over $600,000 market value has a class rate of1.20one 6.9 percent of market value. 6.10 (b) Class 2b property is (1) real estate, rural in 6.11 character and used exclusively for growing trees for timber, 6.12 lumber, and wood and wood products; (2) real estate that is not 6.13 improved with a structure and is used exclusively for growing 6.14 trees for timber, lumber, and wood and wood products, if the 6.15 owner has participated or is participating in a cost-sharing 6.16 program for afforestation, reforestation, or timber stand 6.17 improvement on that particular property, administered or 6.18 coordinated by the commissioner of natural resources; (3) real 6.19 estate that is nonhomestead agricultural land; or (4) a landing 6.20 area or public access area of a privately owned public use 6.21 airport. Class 2b property has a net class rate of1.20one 6.22 percent of market value. 6.23 (c) Agricultural land as used in this section means 6.24 contiguous acreage of ten acres or more, used during the 6.25 preceding year for agricultural purposes. "Agricultural 6.26 purposes" as used in this section means the raising or 6.27 cultivation of agricultural products or enrollment in the 6.28 Reinvest in Minnesota program under sections 103F.501 to 6.29 103F.535 or the federal Conservation Reserve Program as 6.30 contained in Public Law Number 99-198. Contiguous acreage on 6.31 the same parcel, or contiguous acreage on an immediately 6.32 adjacent parcel under the same ownership, may also qualify as 6.33 agricultural land, but only if it is pasture, timber, waste, 6.34 unusable wild land, or land included in state or federal farm 6.35 programs. Agricultural classification for property shall be 6.36 determined excluding the house, garage, and immediately 7.1 surrounding one acre of land, and shall not be based upon the 7.2 market value of any residential structures on the parcel or 7.3 contiguous parcels under the same ownership. 7.4 (d) Real estate, excluding the house, garage, and 7.5 immediately surrounding one acre of land, of less than ten acres 7.6 which is exclusively and intensively used for raising or 7.7 cultivating agricultural products, shall be considered as 7.8 agricultural land. 7.9 Land shall be classified as agricultural even if all or a 7.10 portion of the agricultural use of that property is the leasing 7.11 to, or use by another person for agricultural purposes. 7.12 Classification under this subdivision is not determinative 7.13 for qualifying under section 273.111. 7.14 The property classification under this section supersedes, 7.15 for property tax purposes only, any locally administered 7.16 agricultural policies or land use restrictions that define 7.17 minimum or maximum farm acreage. 7.18 (e) The term "agricultural products" as used in this 7.19 subdivision includes production for sale of: 7.20 (1) livestock, dairy animals, dairy products, poultry and 7.21 poultry products, fur-bearing animals, horticultural and nursery 7.22 stock described in sections 18.44 to 18.61, fruit of all kinds, 7.23 vegetables, forage, grains, bees, and apiary products by the 7.24 owner; 7.25 (2) fish bred for sale and consumption if the fish breeding 7.26 occurs on land zoned for agricultural use; 7.27 (3) the commercial boarding of horses if the boarding is 7.28 done in conjunction with raising or cultivating agricultural 7.29 products as defined in clause (1); 7.30 (4) property which is owned and operated by nonprofit 7.31 organizations used for equestrian activities, excluding racing; 7.32 (5) game birds and waterfowl bred and raised for use on a 7.33 shooting preserve licensed under section 97A.115; 7.34 (6) insects primarily bred to be used as food for animals; 7.35 and 7.36 (7) trees, grown for sale as a crop, and not sold for 8.1 timber, lumber, wood, or wood products. 8.2 (f) If a parcel used for agricultural purposes is also used 8.3 for commercial or industrial purposes, including but not limited 8.4 to: 8.5 (1) wholesale and retail sales; 8.6 (2) processing of raw agricultural products or other goods; 8.7 (3) warehousing or storage of processed goods; and 8.8 (4) office facilities for the support of the activities 8.9 enumerated in clauses (1), (2), and (3), 8.10 the assessor shall classify the part of the parcel used for 8.11 agricultural purposes as class 1b, 2a, or 2b, whichever is 8.12 appropriate, and the remainder in the class appropriate to its 8.13 use. The grading, sorting, and packaging of raw agricultural 8.14 products for first sale is considered an agricultural purpose. 8.15 A greenhouse or other building where horticultural or nursery 8.16 products are grown that is also used for the conduct of retail 8.17 sales must be classified as agricultural if it is primarily used 8.18 for the growing of horticultural or nursery products from seed, 8.19 cuttings, or roots and occasionally as a showroom for the retail 8.20 sale of those products. Use of a greenhouse or building only 8.21 for the display of already grown horticultural or nursery 8.22 products does not qualify as an agricultural purpose. 8.23 The assessor shall determine and list separately on the 8.24 records the market value of the homestead dwelling and the one 8.25 acre of land on which that dwelling is located. If any farm 8.26 buildings or structures are located on this homesteaded acre of 8.27 land, their market value shall not be included in this separate 8.28 determination. 8.29 (g) To qualify for classification under paragraph (b), 8.30 clause (4), a privately owned public use airport must be 8.31 licensed as a public airport under section 360.018. For 8.32 purposes of paragraph (b), clause (4), "landing area" means that 8.33 part of a privately owned public use airport properly cleared, 8.34 regularly maintained, and made available to the public for use 8.35 by aircraft and includes runways, taxiways, aprons, and sites 8.36 upon which are situated landing or navigational aids. A landing 9.1 area also includes land underlying both the primary surface and 9.2 the approach surfaces that comply with all of the following: 9.3 (i) the land is properly cleared and regularly maintained 9.4 for the primary purposes of the landing, taking off, and taxiing 9.5 of aircraft; but that portion of the land that contains 9.6 facilities for servicing, repair, or maintenance of aircraft is 9.7 not included as a landing area; 9.8 (ii) the land is part of the airport property; and 9.9 (iii) the land is not used for commercial or residential 9.10 purposes. 9.11 The land contained in a landing area under paragraph (b), clause 9.12 (4), must be described and certified by the commissioner of 9.13 transportation. The certification is effective until it is 9.14 modified, or until the airport or landing area no longer meets 9.15 the requirements of paragraph (b), clause (4). For purposes of 9.16 paragraph (b), clause (4), "public access area" means property 9.17 used as an aircraft parking ramp, apron, or storage hangar, or 9.18 an arrival and departure building in connection with the airport. 9.19 Sec. 5. Minnesota Statutes 1999 Supplement, section 9.20 273.13, subdivision 24, is amended to read: 9.21 Subd. 24. [CLASS 3.] (a) Commercial and industrial 9.22 property and utility real and personal property is class 3a. 9.23 Each parcel of real property has a class rate of2.4two percent 9.24 of the first tier of market value, and3.4three percent of the 9.25 remaining market value, except that in the case of contiguous 9.26 parcels of property owned by the same person or entity, only the 9.27 value equal to the first-tier value of the contiguous parcels 9.28 qualifies for the reduced class rate. For the purposes of this 9.29 subdivision, the first tier means the first $150,000 of market 9.30 value. Real property owned in fee by a utility for transmission 9.31 line right-of-way shall be classified at the class rate for the 9.32 higher tier. All personal property shall be classified at the 9.33 class rate for the higher tier. For purposes of this 9.34 subdivision "personal property" means tools, implements, and 9.35 machinery of an electric generating, transmission, or 9.36 distribution system, or a pipeline system transporting or 10.1 distributing water, gas, crude oil, or petroleum products or 10.2 mains and pipes used in the distribution of steam or hot or 10.3 chilled water for heating or cooling buildings, which are 10.4 fixtures. 10.5 For purposes of this paragraph, parcels are considered to 10.6 be contiguous even if they are separated from each other by a 10.7 road, street, vacant lot, waterway, or other similar intervening 10.8 type of property. 10.9 (b) Employment property defined in section 469.166, during 10.10 the period provided in section 469.170, shall constitute class 10.11 3b. The class rates for class 3b property are determined under 10.12 paragraph (a). 10.13(c)(1) Subject to the limitations of clause (2), structures10.14which are (i) located on property classified as class 3a, (ii)10.15constructed under an initial building permit issued after10.16January 2, 1996, (iii) located in a transit zone as defined10.17under section 473.3915, subdivision 3, (iv) located within the10.18boundaries of a school district, and (v) not primarily used for10.19retail or transient lodging purposes, shall have a class rate10.20equal to the lesser of 2.975 percent or the class rate of the10.21second tier of the commercial property rate under paragraph (a)10.22on any portion of the market value that does not qualify for the10.23first tier class rate under paragraph (a). As used in item (v),10.24a structure is primarily used for retail or transient lodging10.25purposes if over 50 percent of its square footage is used for10.26those purposes. A class rate equal to the lesser of 2.97510.27percent or the class rate of the second tier of the commercial10.28property class rate under paragraph (a) shall also apply to10.29improvements to existing structures that meet the requirements10.30of items (i) to (v) if the improvements are constructed under an10.31initial building permit issued after January 2, 1996, even if10.32the remainder of the structure was constructed prior to January10.332, 1996. For the purposes of this paragraph, a structure shall10.34be considered to be located in a transit zone if any portion of10.35the structure lies within the zone. If any property once10.36eligible for treatment under this paragraph ceases to remain11.1eligible due to revisions in transit zone boundaries, the11.2property shall continue to receive treatment under this11.3paragraph for a period of three years.11.4(2) This clause applies to any structure qualifying for the11.5transit zone reduced class rate under clause (1) on January 2,11.61999, or any structure meeting any of the qualification criteria11.7in item (i) and otherwise qualifying for the transit zone11.8reduced class rate under clause (1). Such a structure continues11.9to receive the transit zone reduced class rate until the11.10occurrence of one of the events in item (ii). Property11.11qualifying under item (i)(D), that is located outside of a city11.12of the first class, qualifies for the transit zone reduced class11.13rate as provided in that item. Property qualifying under item11.14(i)(E) qualifies for the transit zone reduced class rate as11.15provided in that item.11.16(i) A structure qualifies for the rate in this clause if it11.17is:11.18(A) property for which a building permit was issued before11.19December 31, 1998; or11.20(B) property for which a building permit was issued before11.21June 30, 2001, if:11.22(I) at least 50 percent of the land on which the structure11.23is to be built has been acquired or is the subject of signed11.24purchase agreements or signed options as of March 15, 1998, by11.25the entity that proposes construction of the project or an11.26affiliate of the entity;11.27(II) signed agreements have been entered into with one11.28entity or with affiliated entities to lease for the account of11.29the entity or affiliated entities at least 50 percent of the11.30square footage of the structure or the owner of the structure11.31will occupy at least 50 percent of the square footage of the11.32structure; and11.33(III) one of the following requirements is met:11.34the project proposer has submitted the completed data11.35portions of an environmental assessment worksheet by December11.3631, 1998; or12.1a notice of determination of adequacy of an environmental12.2impact statement has been published by April 1, 1999; or12.3an alternative urban areawide review has been completed by12.4April 1, 1999; or12.5(C) property for which a building permit is issued before12.6July 30, 1999, if:12.7(I) at least 50 percent of the land on which the structure12.8is to be built has been acquired or is the subject of signed12.9purchase agreements as of March 31, 1998, by the entity that12.10proposes construction of the project or an affiliate of the12.11entity;12.12(II) a signed agreement has been entered into between the12.13building developer and a tenant to lease for its own account at12.14least 200,000 square feet of space in the building;12.15(III) a signed letter of intent is entered into by July 1,12.161998, between the building developer and the tenant to lease the12.17space for its own account; and12.18(IV) the environmental review process required by state law12.19was commenced by December 31, 1998;12.20(D) property for which an irrevocable letter of credit with12.21a housing and redevelopment authority was signed before December12.2231, 1998. The structure shall receive the transit zone reduced12.23class rate during construction and for the duration of time that12.24the original tenants remain in the building. Any unoccupied net12.25leasable square footage that is not leased within 36 months12.26after the certificate of occupancy has been issued for the12.27building shall not be eligible to receive the reduced class12.28rate. This reduced class rate applies only if the entity that12.29constructed the structure continues to own the property;12.30(E) property, located in a city of the first class, and for12.31which the building permits for the excavation, the parking ramp,12.32and the office tower were issued prior to April 1, 1999, shall12.33receive the reduced class rate during construction and for the12.34first five assessment years immediately following its initial12.35occupancy provided that, when completed, at least 25 percent of12.36the net leasable square footage must be occupied by the entity13.1or the parent entity constructing the structure each year during13.2this time period. In order to receive the reduced class rate on13.3the structure in any subsequent assessment years, at least 5013.4percent of the rentable square footage must be occupied by the13.5entity or the parent entity that constructed the structure.13.6This reduced class rate applies only if the entity or the parent13.7entity that constructed the structure continues to own the13.8property.13.9(ii) A structure specified by this clause, other than a13.10structure qualifying under clause (i)(D) or (E), shall continue13.11to receive the transit zone reduced class rate until the13.12occurrence of one of the following events:13.13(A) if the structure upon initial occupancy will be owner13.14occupied by the entity initially constructing the structure or13.15an affiliated entity, the structure receives the reduced class13.16rate until the structure ceases to be at least 50 percent13.17occupied by the entity or an affiliated entity, provided, if the13.18portion of the structure occupied by that entity or an affiliate13.19of the entity is less than 85 percent, the transit zone class13.20rate reduction for the portion of structure not so occupied13.21terminates upon the leasing of such space to any nonaffiliated13.22entity; or13.23(B) if the structure is leased by a single entity or13.24affiliated entity at the time of initial occupancy, the13.25structure shall receive the reduced class rate until the13.26structure ceases to be at least 50 percent occupied by the13.27entity or an affiliated entity, provided, if the portion of the13.28structure occupied by that entity or an affiliate of the entity13.29is less than 85 percent, the transit zone class rate reduction13.30for the portion of structure not so occupied shall terminate13.31upon the leasing of such space to any nonaffiliated entity; or13.32(C) if the structure meets the criteria in item (i)(C), the13.33structure shall receive the reduced class rate until the13.34expiration of the initial lease term of the applicable tenants.13.35Percentages occupied or leased shall be determined based13.36upon net leasable square footage in the structure. The assessor14.1shall allocate the value of the structure in the same fashion as14.2provided in the general law for portions of any structure14.3receiving and not receiving the transit tax class reduction as a14.4result of this clause.14.5 Sec. 6. Minnesota Statutes 1999 Supplement, section 14.6 273.13, subdivision 25, is amended to read: 14.7 Subd. 25. [CLASS 4.] (a) Class 4a is residential real 14.8 estate containing four or more units and used or held for use by 14.9 the owner or by the tenants or lessees of the owner as a 14.10 residence for rental periods of 30 days or more. Class 4a also 14.11 includes hospitals licensed under sections 144.50 to 144.56, 14.12 other than hospitals exempt under section 272.02, and contiguous 14.13 property used for hospital purposes, without regard to whether 14.14 the property has been platted or subdivided. Class 4a property 14.15in a city with a population of 5,000 or less, that is (1)14.16located outside of the metropolitan area, as defined in section14.17473.121, subdivision 2, or outside any county contiguous to the14.18metropolitan area, and (2) whose city boundary is at least 1514.19miles from the boundary of any city with a population greater14.20than 5,000 has a class rate of 2.15 percent of market value.14.21All other class 4a propertyhas a class rate of2.4two percent 14.22 of market value.For purposes of this paragraph, population has14.23the same meaning given in section 477A.011, subdivision 3.14.24 (b) Class 4b includes: 14.25 (1) residential real estate containing less than four units 14.26 that does not qualify as class 4bb, other than seasonal 14.27 residential, and recreational; 14.28 (2) manufactured homes not classified under any other 14.29 provision; 14.30 (3) a dwelling, garage, and surrounding one acre of 14.31 property on a nonhomestead farm classified under subdivision 23, 14.32 paragraph (b) containing two or three units; 14.33 (4) unimproved property that is classified residential as 14.34 determined under subdivision 33. 14.35 Class 4b property has a class rate of1.651.5 percent of 14.36 market value. 15.1 (c) Class 4bb includes: 15.2 (1) nonhomestead residential real estate containing one 15.3 unit, other than seasonal residential, and recreational; and 15.4 (2) a single family dwelling, garage, and surrounding one 15.5 acre of property on a nonhomestead farm classified under 15.6 subdivision 23, paragraph (b). 15.7 Class 4bb has a class rate of1.2one percent on the first 15.8 $76,000 of market value and a class rate of1.651.5 percent of 15.9 its market value that exceeds $76,000. 15.10 Property that has been classified as seasonal recreational 15.11 residential property at any time during which it has been owned 15.12 by the current owner or spouse of the current owner does not 15.13 qualify for class 4bb. 15.14 (d) Class 4c property includes: 15.15 (1) except as provided in subdivision 22, paragraph (c), 15.16 real property devoted to temporary and seasonal residential 15.17 occupancy for recreation purposes, including real property 15.18 devoted to temporary and seasonal residential occupancy for 15.19 recreation purposes and not devoted to commercial purposes for 15.20 more than 250 days in the year preceding the year of 15.21 assessment. For purposes of this clause, property is devoted to 15.22 a commercial purpose on a specific day if any portion of the 15.23 property is used for residential occupancy, and a fee is charged 15.24 for residential occupancy. In order for a property to be 15.25 classified as class 4c, seasonal recreational residential for 15.26 commercial purposes, at least 40 percent of the annual gross 15.27 lodging receipts related to the property must be from business 15.28 conducted during 90 consecutive days and either (i) at least 60 15.29 percent of all paid bookings by lodging guests during the year 15.30 must be for periods of at least two consecutive nights; or (ii) 15.31 at least 20 percent of the annual gross receipts must be from 15.32 charges for rental of fish houses, boats and motors, 15.33 snowmobiles, downhill or cross-country ski equipment, or charges 15.34 for marina services, launch services, and guide services, or the 15.35 sale of bait and fishing tackle. For purposes of this 15.36 determination, a paid booking of five or more nights shall be 16.1 counted as two bookings. Class 4c also includes commercial use 16.2 real property used exclusively for recreational purposes in 16.3 conjunction with class 4c property devoted to temporary and 16.4 seasonal residential occupancy for recreational purposes, up to 16.5 a total of two acres, provided the property is not devoted to 16.6 commercial recreational use for more than 250 days in the year 16.7 preceding the year of assessment and is located within two miles 16.8 of the class 4c property with which it is used. Class 4c 16.9 property classified in this clause also includes the remainder 16.10 of class 1c resorts provided that the entire property including 16.11 that portion of the property classified as class 1c also meets 16.12 the requirements for class 4c under this clause; otherwise the 16.13 entire property is classified as class 3. Owners of real 16.14 property devoted to temporary and seasonal residential occupancy 16.15 for recreation purposes and all or a portion of which was 16.16 devoted to commercial purposes for not more than 250 days in the 16.17 year preceding the year of assessment desiring classification as 16.18 class 1c or 4c, must submit a declaration to the assessor 16.19 designating the cabins or units occupied for 250 days or less in 16.20 the year preceding the year of assessment by January 15 of the 16.21 assessment year. Those cabins or units and a proportionate 16.22 share of the land on which they are located will be designated 16.23 class 1c or 4c as otherwise provided. The remainder of the 16.24 cabins or units and a proportionate share of the land on which 16.25 they are located will be designated as class 3a. The owner of 16.26 property desiring designation as class 1c or 4c property must 16.27 provide guest registers or other records demonstrating that the 16.28 units for which class 1c or 4c designation is sought were not 16.29 occupied for more than 250 days in the year preceding the 16.30 assessment if so requested. The portion of a property operated 16.31 as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 16.32 nonresidential facility operated on a commercial basis not 16.33 directly related to temporary and seasonal residential occupancy 16.34 for recreation purposes shall not qualify for class 1c or 4c; 16.35 (2) qualified property used as a golf course if: 16.36 (i) it is open to the public on a daily fee basis. It may 17.1 charge membership fees or dues, but a membership fee may not be 17.2 required in order to use the property for golfing, and its green 17.3 fees for golfing must be comparable to green fees typically 17.4 charged by municipal courses; and 17.5 (ii) it meets the requirements of section 273.112, 17.6 subdivision 3, paragraph (d). 17.7 A structure used as a clubhouse, restaurant, or place of 17.8 refreshment in conjunction with the golf course is classified as 17.9 class 3a property; 17.10 (3) real property up to a maximum of one acre of land owned 17.11 by a nonprofit community service oriented organization; provided 17.12 that the property is not used for a revenue-producing activity 17.13 for more than six days in the calendar year preceding the year 17.14 of assessment and the property is not used for residential 17.15 purposes on either a temporary or permanent basis. For purposes 17.16 of this clause, a "nonprofit community service oriented 17.17 organization" means any corporation, society, association, 17.18 foundation, or institution organized and operated exclusively 17.19 for charitable, religious, fraternal, civic, or educational 17.20 purposes, and which is exempt from federal income taxation 17.21 pursuant to section 501(c)(3), (10), or (19) of the Internal 17.22 Revenue Code of 1986, as amended through December 31, 1990. For 17.23 purposes of this clause, "revenue-producing activities" shall 17.24 include but not be limited to property or that portion of the 17.25 property that is used as an on-sale intoxicating liquor or 3.2 17.26 percent malt liquor establishment licensed under chapter 340A, a 17.27 restaurant open to the public, bowling alley, a retail store, 17.28 gambling conducted by organizations licensed under chapter 349, 17.29 an insurance business, or office or other space leased or rented 17.30 to a lessee who conducts a for-profit enterprise on the 17.31 premises. Any portion of the property which is used for 17.32 revenue-producing activities for more than six days in the 17.33 calendar year preceding the year of assessment shall be assessed 17.34 as class 3a. The use of the property for social events open 17.35 exclusively to members and their guests for periods of less than 17.36 24 hours, when an admission is not charged nor any revenues are 18.1 received by the organization shall not be considered a 18.2 revenue-producing activity; 18.3 (4) post-secondary student housing of not more than one 18.4 acre of land that is owned by a nonprofit corporation organized 18.5 under chapter 317A and is used exclusively by a student 18.6 cooperative, sorority, or fraternity for on-campus housing or 18.7 housing located within two miles of the border of a college 18.8 campus; 18.9 (5) manufactured home parks as defined in section 327.14, 18.10 subdivision 3; and 18.11 (6) real property that is actively and exclusively devoted 18.12 to indoor fitness, health, social, recreational, and related 18.13 uses, is owned and operated by a not-for-profit corporation, and 18.14 is located within the metropolitan area as defined in section 18.15 473.121, subdivision 2. 18.16 Class 4c property has a class rate of1.651.5 percent of 18.17 market value, except that (i) each parcel of seasonal 18.18 residential recreational property not used for commercial 18.19 purposes has the same class rates as class 4bb property, (ii) 18.20 manufactured home parks assessed under clause (5) have the same 18.21 class rate as class 4b property, and (iii) property described in 18.22 paragraph (d), clause (4), has the same class rate as the rate 18.23 applicable to the first tier of class 4bb nonhomestead 18.24 residential real estate under paragraph (c). 18.25 (e) Class 4d property is qualifying low-income rental 18.26 housing certified to the assessor by the housing finance agency 18.27 under sections 273.126 and 462A.071. Class 4d includes land in 18.28 proportion to the total market value of the building that is 18.29 qualifying low-income rental housing. For all properties 18.30 qualifying as class 4d, the market value determined by the 18.31 assessor must be based on the normal approach to value using 18.32 normal unrestricted rents. 18.33 Class 4d property has a class rate of one percent of market 18.34 value. 18.35 Sec. 7. Minnesota Statutes 1999 Supplement, section 18.36 273.13, subdivision 31, is amended to read: 19.1 Subd. 31. [CLASS 5.] Class 5 property includes: 19.2 (1) unmined iron ore and low-grade iron-bearing formations 19.3 as defined in section 273.14; and 19.4 (2) all other property not otherwise classified. 19.5 Class 5 property has a class rate of3.4three percent of 19.6 market value. 19.7 Sec. 8. Minnesota Statutes 1999 Supplement, section 19.8 273.1382, is amended to read: 19.9 273.1382 [GENERAL EDUCATION HOMESTEADCREDIT; EDUCATIONAND 19.10 AGRICULTURALCREDITEXEMPTION.] 19.11 Subdivision 1. [GENERAL EDUCATIONCREDITTAX RATE.] Each 19.12 year, the respective county auditors shall determine the initial 19.13 tax rate for each school district for the general education levy 19.14 certified under section 126C.13, subdivision 2 or 3. That rate 19.15 plus the school district's general educationhomestead credit19.16 tax rate adjustment under section 275.08, subdivision 1e, shall 19.17 be the general educationcredittax rate for the district. 19.18 Subd. 1a. [GENERAL EDUCATION HOMESTEADCREDITAND 19.19 AGRICULTURAL EXEMPTION.] Each county auditor shall determine a 19.20 general educationhomestead creditexemption amount for 19.21 eachhomesteadqualifying property within the county equal to 19.2266.2 percent for taxes payable in 1999 and 83 percent for taxes19.23payable in 2000 and thereafter ofthe general educationcredit19.24 tax rate times the net tax capacity of thehomesteadproperty 19.25 for the taxes payable year.The amount of general education19.26homestead credit for a homestead may not exceed $320 for taxes19.27payable in 1999 and $390 for taxes payable in 2000 and19.28thereafter. In the case of an agricultural homestead, only the19.29net tax capacity of the house, garage, and surrounding one acre19.30of land shall be used in determining the property's education19.31homestead credit.For the purposes of this section, qualifying 19.32 property means property classified under section 273.13 as class 19.33 1 or class 2. 19.34Subd. 1b. [EDUCATION AGRICULTURAL CREDIT.] Property19.35classified as class 2a agricultural homestead or class 2b19.36agricultural nonhomestead or timberland is eligible for20.1education agricultural credit. The credit is equal to 5420.2percent, in the case of agricultural homestead property, or 5020.3percent, in the case of agricultural nonhomestead property or20.4timberland, of the property's net tax capacity times the20.5education credit tax rate determined in subdivision 1. The net20.6tax capacity of class 2a property attributable to the house,20.7garage, and surrounding one acre of land is not eligible for the20.8credit under this subdivision.20.9 Subd. 2. [CREDITREIMBURSEMENTS.] (a) The commissioner of 20.10 revenue shall determine the tax reductions allowed under this 20.11 section for each taxes payable year, and for each school 20.12 district based upon a review of the abstracts of tax lists 20.13 submitted by the county auditors under section 275.29, and from 20.14 any other information which the commissioner deems relevant. 20.15 The commissioner of revenue shall generally compute the tax 20.16 reductions at the unique taxing jurisdiction level, however the 20.17 commissioner may compute the tax reductions at a higher 20.18 geographic level if that would have a negligible impact, or if 20.19 changes in the composition of unique taxing jurisdictions do not 20.20 permit computation at the unique taxing jurisdiction level. The 20.21 commissioner's determinations under this paragraph are not rules. 20.22 (b) The commissioner of revenue shall certify the total of 20.23 the tax reductions granted under this section for each taxes 20.24 payable year within each school district to the commissioner of 20.25 children, families, and learning after July 1 and on or before 20.26 August 1 of the taxes payable year. The commissioner of 20.27 children, families, and learning shall reimburse each affected 20.28 school district for the amount of the property tax reductions 20.29 allowed under this section as provided in section 273.1392. The 20.30 commissioner of children, families, and learning shall treat the 20.31 reimbursement payments as entitlements for the same state fiscal 20.32 year as certified, including with each district's initial 20.33 payment all amounts that would have been paid up to that date, 20.34 computed as if 90 percent of the annual reimbursement amount for 20.35 the district were being paid one-twelfth in each month of the 20.36 fiscal year. 21.1 Subd. 3. [APPROPRIATION.] An amount sufficient to make the 21.2 payments required by this section is annually appropriated from 21.3 the general fund to the commissioner of children, families, and 21.4 learning. 21.5 Sec. 9. [273.1384] [STATE AID REDUCTION; AID REDUCTION 21.6 LEVY.] 21.7 Subdivision 1. [REDUCTION AMOUNT.] By June 30, 2000, the 21.8 commissioner of revenue shall estimate the amount, if any, by 21.9 which the exemption amount provided under section 273.1382 for 21.10 taxes payable in 2001 will exceed the credit amount determined 21.11 under section 273.1382, for taxes payable in 2000 within each 21.12 unique taxing area, and aggregate those amounts to the municipal 21.13 level. Each municipality's maximum aid reduction amount is 21.14 equal to 50 percent of the amount so determined. 21.15 Subd. 2. [LGA REDUCTION; CITIES.] An amount up to the 21.16 amount determined under subdivision 1 shall be permanently 21.17 subtracted from each city's aid base under section 477A.011, 21.18 subdivision 36, beginning in calendar year 2001, provided that 21.19 the city aid base may not be less than zero. The total 21.20 appropriation amount for cities under section 477A.03, 21.21 subdivision 2, paragraph (d), shall be permanently reduced by 21.22 the sum of the amounts determined under this subdivision to all 21.23 cities. 21.24 Subd. 3. [LGA REDUCTIONS; TOWNS.] An amount up to the 21.25 amount determined under subdivision 1 shall be permanently 21.26 subtracted from each town's aid amount under section 477A.013, 21.27 subdivision 1, beginning in calendar year 2001, provided that a 21.28 town's aid amount may not be less than zero. 21.29 Subd. 4. [HACA REDUCTION.] An amount up to the amount 21.30 determined under subdivision 1, less any amount determined under 21.31 subdivisions 2 or 3, shall be permanently subtracted from each 21.32 municipality's homestead and agricultural credit aid base amount 21.33 under section 273.1398, beginning in calendar year 2001, 21.34 provided that the base aid amount may not be less than zero. 21.35 Subd. 5. [AID REDUCTION LEVY.] Each year, a municipality 21.36 whose aid in 2001 was reduced under this section may impose a 22.1 levy equal to the sum of the amounts determined under 22.2 subdivisions 2 to 4. If imposed, the levy under this 22.3 subdivision shall be levied only against the net tax capacity of 22.4 property classified under section 273.13 as class 1 or class 2. 22.5 If a municipality levies a tax under this subdivision, it shall 22.6 certify the amount of the levy separately from the 22.7 municipality's general levy under section 275.07. A levy under 22.8 this subdivision is considered a special levy for the purposes 22.9 of section 275.70 to 275.74. 22.10 Sec. 10. [273.1387] [HOMESTEAD CREDIT.] 22.11 Subdivision 1. [DETERMINATION OF CREDIT AMOUNT.] Each 22.12 county auditor shall determine a homestead credit amount for 22.13 each property classified as class 1 residential homestead or 22.14 class 2a agricultural homestead within the county equal to ten 22.15 percent of the net tax capacity of the first tier of market 22.16 value of the homestead. In the case of an agricultural 22.17 homestead, only the net tax capacity of the house, garage, and 22.18 surrounding one acre of land shall be used in determining the 22.19 property's homestead credit amount. The credit may not exceed 22.20 the net tax on the property after subtraction of all other 22.21 credits under section 273.1393. 22.22 Subd. 2. [CREDIT APPLICATION.] The homestead credit shall 22.23 be used to proportionately reduce the property tax payable to 22.24 all taxing jurisdictions on the homestead, after subtraction of 22.25 all other credits under section 273.1393. 22.26 Subd. 3. [CREDIT REIMBURSEMENT.] The county auditor shall 22.27 certify the amount of tax reductions granted under this section 22.28 to the commissioner of revenue on the abstracts of tax lists 22.29 submitted under section 275.29. The commissioner of revenue 22.30 shall verify the credit amounts reported, and shall make 22.31 payments directly to the affected taxing jurisdictions other 22.32 than school districts in two equal installments on September 15 22.33 and December 26 each year. The commissioner of revenue shall 22.34 certify the total of the tax reductions granted under this 22.35 section for each school district to the commissioner of 22.36 children, families, and learning before September 1 of each 23.1 taxes payable year. The commissioner of children, families, and 23.2 learning shall reimburse each affected school district for the 23.3 amount of the property tax reductions allowed under this section 23.4 as provided in section 273.1392. 23.5 Subd. 4. [APPROPRIATION.] An amount sufficient to pay the 23.6 credit reimbursements provided under this section for school 23.7 districts, intermediate school districts, or any group of school 23.8 districts levying as a single taxing entity, is annually 23.9 appropriated from the general fund to the commissioner of 23.10 children, families, and learning. An amount sufficient to pay 23.11 the credit reimbursements provided under this section for 23.12 counties, cities, towns, and special taxing districts is 23.13 annually appropriated from the general fund to the commissioner 23.14 of revenue. A jurisdiction's aid amount may be increased or 23.15 decreased based on any prior year adjustments for homestead 23.16 credit or other property tax credit or aid programs. 23.17 Sec. 11. Minnesota Statutes 1998, section 273.1393, is 23.18 amended to read: 23.19 273.1393 [COMPUTATION OF NET PROPERTY TAXES.] 23.20 Notwithstanding any other provisions to the contrary, "net" 23.21 property taxes are determined by subtracting the credits in the 23.22 order listed from the gross tax: 23.23 (1) disaster credit as provided in section 273.123; 23.24 (2) powerline credit as provided in section 273.42; 23.25 (3) agricultural preserves credit as provided in section 23.26 473H.10; 23.27 (4) enterprise zone credit as provided in section 469.171; 23.28 (5) disparity reduction credit; 23.29 (6) conservation tax credit as provided in section 273.119; 23.30 (7) general education homesteadcreditand agricultural 23.31 exemption as provided in section 273.1382; 23.32 (8) taconite homestead credit as provided in section 23.33 273.135;and23.34 (9) supplemental homestead credit as provided in section 23.35 273.1391; and 23.36 (10) homestead credit under section 273.1387. 24.1 The combination of all property tax credits must not exceed 24.2 the gross tax amount. 24.3 Sec. 12. Minnesota Statutes 1998, section 275.065, 24.4 subdivision 3, is amended to read: 24.5 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 24.6 county auditor shall prepare and the county treasurer shall 24.7 deliver after November 10 and on or before November 24 each 24.8 year, by first class mail to each taxpayer at the address listed 24.9 on the county's current year's assessment roll, a notice of 24.10 proposed property taxes. 24.11 (b) The commissioner of revenue shall prescribe the form of 24.12 the notice. 24.13 (c) The notice must inform taxpayers that it contains the 24.14 amount of property taxes each taxing authority proposes to 24.15 collect for taxes payable the following year. In the case of a 24.16 town, or in the case of the state determined portion of the 24.17 school district levy, the final tax amount will be its proposed 24.18 tax. The notice must clearly state that each taxing authority, 24.19 including regional library districts established under section 24.20 134.201, and including the metropolitan taxing districts as 24.21 defined in paragraph (i), but excluding all other special taxing 24.22 districts and towns, will hold a public meeting to receive 24.23 public testimony on the proposed budget and proposed or final 24.24 property tax levy, or, in case of a school district, on the 24.25 current budget and proposed property tax levy. It must clearly 24.26 state the time and place of each taxing authority's meeting and 24.27 an address where comments will be received by mail. 24.28 (d) The notice must state for each parcel: 24.29 (1) the market value of the property as determined under 24.30 section 273.11, and used for computing property taxes payable in 24.31 the following year and for taxes payable in the current year as 24.32 each appears in the records of the county assessor on November 1 24.33 of the current year; and, in the case of residential property, 24.34 whether the property is classified as homestead or 24.35 nonhomestead. The notice must clearly inform taxpayers of the 24.36 years to which the market values apply and that the values are 25.1 final values; 25.2 (2) the items listed below, shown separately by county, 25.3 city or town, state determined school tax net of the general 25.4 education homesteadcreditand agricultural exemption amounts 25.5 under section 273.1382, voter approved school levy, other local 25.6 school levy, and the sum of the special taxing districts, and as 25.7 a total of all taxing authorities, in all cases net of the 25.8 homestead credit amount determined under section 273.1387: 25.9 (i) the actual tax for taxes payable in the current year; 25.10 (ii) the tax change due to spending factors, defined as the 25.11 proposed tax minus the constant spending tax amount; 25.12 (iii) the tax change due to other factors, defined as the 25.13 constant spending tax amount minus the actual current year tax; 25.14 and 25.15 (iv) the proposed tax amount. 25.16 In the case of a town or the state determined school tax, 25.17 the final tax shall also be its proposed tax unless the town 25.18 changes its levy at a special town meeting under section 25.19 365.52. If a school district has certified under section 25.20 126C.17, subdivision 9, that a referendum will be held in the 25.21 school district at the November general election, the county 25.22 auditor must note next to the school district's proposed amount 25.23 that a referendum is pending and that, if approved by the 25.24 voters, the tax amount may be higher than shown on the notice. 25.25 In the case of the city of Minneapolis, the levy for the 25.26 Minneapolis library board and the levy for Minneapolis park and 25.27 recreation shall be listed separately from the remaining amount 25.28 of the city's levy. In the case of a parcel where tax increment 25.29 or the fiscal disparities areawide tax under chapter 276A or 25.30 473F applies, the proposed tax levy on the captured value or the 25.31 proposed tax levy on the tax capacity subject to the areawide 25.32 tax must each be stated separately and not included in the sum 25.33 of the special taxing districts; and 25.34 (3) the increase or decrease between the total taxes 25.35 payable in the current year and the total proposed taxes, 25.36 expressed as a percentage. 26.1 For purposes of this section, the amount of the tax on 26.2 homesteads qualifying under the senior citizens' property tax 26.3 deferral program under chapter 290B is the total amount of 26.4 property tax before subtraction of the deferred property tax 26.5 amount. 26.6 (e) The notice must clearly state that the proposed or 26.7 final taxes do not include the following: 26.8 (1) special assessments; 26.9 (2) levies approved by the voters after the date the 26.10 proposed taxes are certified, including bond referenda, school 26.11 district levy referenda, and levy limit increase referenda; 26.12 (3) amounts necessary to pay cleanup or other costs due to 26.13 a natural disaster occurring after the date the proposed taxes 26.14 are certified; 26.15 (4) amounts necessary to pay tort judgments against the 26.16 taxing authority that become final after the date the proposed 26.17 taxes are certified; and 26.18 (5) the contamination tax imposed on properties which 26.19 received market value reductions for contamination. 26.20 (f) Except as provided in subdivision 7, failure of the 26.21 county auditor to prepare or the county treasurer to deliver the 26.22 notice as required in this section does not invalidate the 26.23 proposed or final tax levy or the taxes payable pursuant to the 26.24 tax levy. 26.25 (g) If the notice the taxpayer receives under this section 26.26 lists the property as nonhomestead, and satisfactory 26.27 documentation is provided to the county assessor by the 26.28 applicable deadline, and the property qualifies for the 26.29 homestead classification in that assessment year, the assessor 26.30 shall reclassify the property to homestead for taxes payable in 26.31 the following year. 26.32 (h) In the case of class 4 residential property used as a 26.33 residence for lease or rental periods of 30 days or more, the 26.34 taxpayer must either: 26.35 (1) mail or deliver a copy of the notice of proposed 26.36 property taxes to each tenant, renter, or lessee; or 27.1 (2) post a copy of the notice in a conspicuous place on the 27.2 premises of the property. 27.3 The notice must be mailed or posted by the taxpayer by 27.4 November 27 or within three days of receipt of the notice, 27.5 whichever is later. A taxpayer may notify the county treasurer 27.6 of the address of the taxpayer, agent, caretaker, or manager of 27.7 the premises to which the notice must be mailed in order to 27.8 fulfill the requirements of this paragraph. 27.9 (i) For purposes of this subdivision, subdivisions 5a and 27.10 6, "metropolitan special taxing districts" means the following 27.11 taxing districts in the seven-county metropolitan area that levy 27.12 a property tax for any of the specified purposes listed below: 27.13 (1) metropolitan council under section 473.132, 473.167, 27.14 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 27.15 (2) metropolitan airports commission under section 473.667, 27.16 473.671, or 473.672; and 27.17 (3) metropolitan mosquito control commission under section 27.18 473.711. 27.19 For purposes of this section, any levies made by the 27.20 regional rail authorities in the county of Anoka, Carver, 27.21 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 27.22 398A shall be included with the appropriate county's levy and 27.23 shall be discussed at that county's public hearing. 27.24 (j) If a statutory or home rule charter city or a town has 27.25 exercised the local levy option provided by section 473.388, 27.26 subdivision 7, it may include in the notice of its proposed 27.27 taxes the amount of its proposed taxes attributable to its 27.28 exercise of the option. In the first year of the city or town's 27.29 exercise of this option, the statement shall include an estimate 27.30 of the reduction of the metropolitan council's tax on the parcel 27.31 due to exercise of that option. The metropolitan council's levy 27.32 shall be adjusted accordingly. 27.33 Sec. 13. Minnesota Statutes 1998, section 275.08, 27.34 subdivision 1b, is amended to read: 27.35 Subd. 1b. [COMPUTATION OF TAX RATES.] (a) The amounts 27.36 certified to be levied against net tax capacity under section 28.1 275.07 by an individual local government unit shall be divided 28.2 by the total net tax capacity of all taxable properties within 28.3 the local government unit's taxing jurisdiction. The resulting 28.4 ratio, the local government's local tax rate, multiplied by each 28.5 property's net tax capacity shall be each property's net tax 28.6 capacity tax for that local government unit before reduction by 28.7 any credits. 28.8 (b) Any amount certified to the county auditor to be levied 28.9 against market value shall be divided by the total referendum 28.10 market value of all taxable properties within the taxing 28.11 district. The resulting ratio, the taxing district's new 28.12 referendum tax rate, multiplied by each property's referendum 28.13 market value shall be each property's new referendum tax before 28.14 reduction by any credits. For the purposes of this subdivision, 28.15 "referendum market value" means the market value as defined in 28.16 section 126C.01, subdivision 3. 28.17 (c) Any amount certified to the county auditor to be levied 28.18 against homestead and agricultural net tax capacity under 28.19 section 126C.17, subdivision 10a, or 273.1384, shall be divided 28.20 by the total net tax capacity of all properties within the 28.21 jurisdiction classified under section 273.13 as class 1 or class 28.22 2. The resulting ratio, the jurisdiction's state aid reduction 28.23 tax rate, multiplied by each subject property's net tax capacity 28.24 shall be the property's state aid reduction tax rate before 28.25 reduction by any credits. 28.26 Sec. 14. Minnesota Statutes 1998, section 275.08, 28.27 subdivision 1e, is amended to read: 28.28 Subd. 1e. [GENERAL EDUCATIONHOMESTEAD CREDITTAX RATE 28.29 ADJUSTMENT.] The amounts certified under section 126C.48, 28.30 subdivision 1, paragraph (b), shall be divided by the total net 28.31 tax capacity of all taxable properties within a school 28.32 district's taxing jurisdiction. The resulting ratio is a school 28.33 district's general educationhomestead credittax rate 28.34 adjustment. 28.35 Sec. 15. Minnesota Statutes 1999 Supplement, section 28.36 275.71, subdivision 2, is amended to read: 29.1 Subd. 2. [LEVY LIMIT BASE.] (a)The levy limit base for a29.2local governmental unit for taxes levied in 1997 shall be equal29.3to the sum of:29.4(1) the amount the local governmental unit levied in 1996,29.5less any amount levied for debt, as reported to the department29.6of revenue under section 275.62, subdivision 1, clause (1), and29.7less any tax levied in 1996 against market value as provided for29.8in section 275.61;29.9(2) the amount of aids the local governmental unit was29.10certified to receive in calendar year 1997 under sections29.11477A.011 to 477A.03 before any reductions for state tax29.12increment financing aid under section 273.1399, subdivision 5;29.13(3) the amount of homestead and agricultural credit aid the29.14local governmental unit was certified to receive under section29.15273.1398 in calendar year 1997 before any reductions for tax29.16increment financing aid under section 273.1399, subdivision 5;29.17(4) the amount of local performance aid the local29.18governmental unit was certified to receive in calendar year 199729.19under section 477A.05; and29.20(5) the amount of any payments certified to the local29.21government unit in 1997 under sections 298.28 and 298.282.29.22If a governmental unit was not required to report under29.23section 275.62 for taxes levied in 1997, the commissioner shall29.24request information on levies used for debt from the local29.25governmental unit and adjust its levy limit base accordingly.29.26(b) The levy limit base for a local governmental unit for29.27taxes levied in 1998 is equal to its adjusted levy limit base in29.28the previous year, subject to any adjustments under section29.29275.72 and multiplied by the increase that would have occurred29.30under subdivision 3, clause (3), if that clause had been in29.31effect for taxes levied in 1997.29.32(c)The levy limit base for a city with a population 29.33 greater than 2,500 for taxes levied in19992000 islimited29.34 equal to its adjusted levy limit base in the previous year, 29.35 subject to adjustments under section 275.72, less any amounts 29.36 determined under section 273.1384, subdivisions 2 and 4. 30.1(d)(b) The levy limit base for a county for taxes levied 30.2 in19992000 islimitedequal to the difference between (1) its 30.3 adjusted levy limit base in the previous year subject to 30.4 adjustments under section 275.72, and (2) one-half of the 30.5 county's share of the net cost to the state for assumption of 30.6 district court costs, as reported by the supreme court to the 30.7 commissioner of revenue under section 273.1398, subdivision 4a, 30.8 paragraph (a). 30.9 Sec. 16. Minnesota Statutes 1999 Supplement, section 30.10 275.71, subdivision 3, is amended to read: 30.11 Subd. 3. [ADJUSTED LEVY LIMIT BASE.] For taxes levied 30.12 in1998 and 19992000, the adjusted levy limit is equal to the 30.13 levy limit base computed under subdivision 2 or section 275.72, 30.14 multiplied by: 30.15 (1) one plus a percentage equal to the percentage growth in 30.16 the implicit price deflator; and 30.17 (2) for all cities and for counties outside of the 30.18 seven-county metropolitan area, one plus a percentage equal to 30.19 the percentage increase in number of households, if any, for the 30.20 most recent 12-month period for which data is available; and for 30.21 counties located in the seven-county metropolitan area, one plus 30.22 a percentage equal to the greater of the percentage increase in 30.23 the number of households in the county or the percentage 30.24 increase in the number of households in the entire seven-county 30.25 metropolitan area for the most recent 12-month period for which 30.26 data is available; and 30.27 (3) one plus a percentage equal to the percentage increase 30.28 in the taxable market value of the jurisdiction due to new 30.29 construction of class 3 and class 5 property, as defined in 30.30 section 273.13, subdivisions 24 and 31, for the most recent year 30.31 for which data are available. 30.32 Sec. 17. Minnesota Statutes 1999 Supplement, section 30.33 275.71, subdivision 4, is amended to read: 30.34 Subd. 4. [PROPERTY TAX LEVY LIMIT.] For taxes levied 30.35 in1998 and 19992000, the property tax levy limit for a local 30.36 governmental unit is equal to its adjusted levy limit base 31.1 determined under subdivision 3 plus any additional levy 31.2 authorized under section 275.73, which is levied against net tax 31.3 capacity, reduced by the sum of (1) the total amount of aids 31.4 that the local governmental unit is certified to receive under 31.5 sections 477A.011 to 477A.014, (2) homestead and agricultural 31.6 aids it is certified to receive under section 273.1398, (3) 31.7 local performance aid it is certified to receive under section 31.8 477A.05, (4) taconite aids under sections 298.28 and 298.282 31.9 including any aid which was required to be placed in a special 31.10 fund for expenditure in the next succeeding year, (5) flood loss 31.11 aid under section 273.1383, and (6) low-income housing aid under 31.12 sections 477A.06 and 477A.065. 31.13 Sec. 18. Minnesota Statutes 1998, section 276.04, 31.14 subdivision 2, is amended to read: 31.15 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 31.16 shall provide for the printing of the tax statements. The 31.17 commissioner of revenue shall prescribe the form of the property 31.18 tax statement and its contents. The statement must contain a 31.19 tabulated statement of the dollar amount due to each taxing 31.20 authority and the amount of the state determined school tax from 31.21 the parcel of real property for which a particular tax statement 31.22 is prepared. The dollar amounts attributable to the county, the 31.23 state determined school tax, the voter approved school tax, the 31.24 other local school tax, the township or municipality, and the 31.25 total of the metropolitan special taxing districts as defined in 31.26 section 275.065, subdivision 3, paragraph (i), must be 31.27 separately stated. The amounts due all other special taxing 31.28 districts, if any, may be aggregated. The amount of the tax on 31.29 homesteads qualifying under the senior citizens' property tax 31.30 deferral program under chapter 290B is the total amount of 31.31 property tax before subtraction of the deferred property tax 31.32 amount. The amount of the tax on contamination value imposed 31.33 under sections 270.91 to 270.98, if any, must also be separately 31.34 stated. The dollar amounts, including the dollar amount of any 31.35 special assessments, may be rounded to the nearest even whole 31.36 dollar. For purposes of this section whole odd-numbered dollars 32.1 may be adjusted to the next higher even-numbered dollar. The 32.2 amount of market value excluded under section 273.11, 32.3 subdivision 16, if any, must also be listed on the tax 32.4 statement. The statement shall include the following sentences, 32.5 printed in upper case letters in boldface print: "EVEN THOUGH 32.6 THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX 32.7 REVENUES, IT SETS THE AMOUNT OF THE STATE-DETERMINED SCHOOL TAX 32.8 LEVY. THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY 32.9 PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT." 32.10 (b) The property tax statements for manufactured homes and 32.11 sectional structures taxed as personal property shall contain 32.12 the same information that is required on the tax statements for 32.13 real property. 32.14 (c) Real and personal property tax statements must contain 32.15 the following information in the order given in this paragraph. 32.16 The information must contain the current year tax information in 32.17 the right column with the corresponding information for the 32.18 previous year in a column on the left: 32.19 (1) the property's estimated market value under section 32.20 273.11, subdivision 1; 32.21 (2) the property's taxable market value after reductions 32.22 under section 273.11, subdivisions 1a and 16; 32.23 (3) the property's gross tax, calculated by adding the 32.24 property's total property tax to the sum of the aids enumerated 32.25 in clause (4); 32.26 (4) a total of the following aids: 32.27 (i) education aids payable under chapters 122A, 123A, 123B, 32.28 124D, 125A, 126C, and 127A; 32.29 (ii) local government aids for cities, towns, and counties 32.30 under chapter 477A; 32.31 (iii) disparity reduction aid under section 273.1398; and 32.32 (iv) homestead and agricultural credit aid under section 32.33 273.1398; 32.34 (5) for homestead residential and agricultural properties, 32.35 the general education homesteadcreditand agricultural 32.36 exemption amount under section 273.1382; 33.1 (6) any credits received under sections 273.119; 273.123; 33.2 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 33.3 473H.10, except that the amount of credit received under section 33.4 273.135 must be separately stated and identified as "taconite 33.5 tax relief";and33.6 (7) the property's homestead credit amount under section 33.7 273.1387; and 33.8 (8) the net tax payable in the manner required in paragraph 33.9 (a). 33.10 (d) If the county uses envelopes for mailing property tax 33.11 statements and if the county agrees, a taxing district may 33.12 include a notice with the property tax statement notifying 33.13 taxpayers when the taxing district will begin its budget 33.14 deliberations for the current year, and encouraging taxpayers to 33.15 attend the hearings. If the county allows notices to be 33.16 included in the envelope containing the property tax statement, 33.17 and if more than one taxing district relative to a given 33.18 property decides to include a notice with the tax statement, the 33.19 county treasurer or auditor must coordinate the process and may 33.20 combine the information on a single announcement. 33.21 The commissioner of revenue shall certify to the county 33.22 auditor the actual or estimated aids enumerated in clause (4) 33.23 that local governments will receive in the following year. The 33.24 commissioner must certify this amount by January 1 of each year. 33.25 Sec. 19. [REPEALER.] 33.26 Minnesota Statutes 1999 Supplement, section 273.13, 33.27 subdivision 24a, is repealed. 33.28 Sec. 20. [EFFECTIVE DATE.] 33.29 Sections 1 to 19 are effective for taxes and aids payable 33.30 in 2001 and subsequent years.