SF 301

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to self-sufficiency; streamlining and 
  1.3             simplifying county administrative procedures to fund 
  1.4             the empowerment zone initiative; creating employment 
  1.5             opportunities and improving the community through 
  1.6             empowerment zones providing for the creation and 
  1.7             operation of empowerment zones; appropriating money; 
  1.8             amending Minnesota Statutes 1994, sections 270.11, 
  1.9             subdivision 2; 272.71; 273.124, subdivision 6; 
  1.10            273.1398, subdivision 1; 275.011, subdivision 1; 
  1.11            428A.03, subdivision 1; 428A.05; 473.167, subdivision 
  1.12            3; 473.249, subdivision 1; 473.446, subdivision 1; 
  1.13            473.711, subdivision 2; 473F.08, subdivision 4; and 
  1.14            477A.011, subdivision 20; proposing coding for new law 
  1.15            in Minnesota Statutes, chapter 469. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1994, section 270.11, 
  1.18  subdivision 2, is amended to read: 
  1.19     Subd. 2.  [COUNTY ASSESSOR'S REPORTS OF ASSESSMENT FILED 
  1.20  WITH COMMISSIONER.] Each county assessor shall file by April 1 
  1.21  with the commissioner of revenue a copy of the abstract that 
  1.22  will be acted upon by the local and county boards of review.  
  1.23  The abstract must list the real and personal property in the 
  1.24  county itemized by assessment districts.  The assessor of each 
  1.25  county in the state shall file with the commissioner, within ten 
  1.26  working days following final action of the local board of review 
  1.27  or equalization and within five days following final action of 
  1.28  the county board of equalization, any changes made by the local 
  1.29  or county board.  The information must be filed in the manner 
  1.30  prescribed by the commissioner.  It must be accompanied by a 
  2.1   printed or typewritten copy of the proceedings of the 
  2.2   appropriate board. 
  2.3      The final abstract of assessments after adjustments by the 
  2.4   state board of equalization and inclusion of any omitted 
  2.5   property shall be submitted to the commissioner of revenue on or 
  2.6   before September 1 of each calendar year.  The final abstract 
  2.7   must separately report the captured tax capacity of tax 
  2.8   increment financing districts under section 469.177, subdivision 
  2.9   2, and empowerment zones under section 469.314, subdivision 2, 
  2.10  the metropolitan revenue contribution value under section 
  2.11  473F.07, and the value subject to the power line credit under 
  2.12  section 273.42. 
  2.13     Sec. 2.  Minnesota Statutes 1994, section 272.71, is 
  2.14  amended to read: 
  2.15     272.71 [TIF AND EMPOWERMENT ZONE PROPERTIES; NOTICE OF 
  2.16  POTENTIAL VALUATION REDUCTIONS.] 
  2.17     (a) The following officials shall notify the municipality 
  2.18  of potential reductions in the market value of taxable parcels 
  2.19  located in a tax increment financing district or an empowerment 
  2.20  zone:  
  2.21     (1) for applications to reduce market value or abate taxes 
  2.22  or for applications to a local or county board of review, the 
  2.23  assessor; 
  2.24     (2) for applications to reduce market value or abate taxes 
  2.25  by the state board of equalization, the commissioner of revenue; 
  2.26     (3) for petitions to reduce market value or object to taxes 
  2.27  under chapter 278, the county attorney. 
  2.28  The official shall provide the notice to the municipality in 
  2.29  writing within 60 days after the petition or application for a 
  2.30  reduction is made. 
  2.31     (b) This section applies only to reductions in valuation or 
  2.32  taxes that are granted after certification of final values for 
  2.33  purposes of certifying local tax rates. 
  2.34     (c) For purposes of this section, "municipality" means the 
  2.35  municipality for the tax increment financing district, as 
  2.36  defined under section 469.174, subdivision 6, or the county for 
  3.1   the empowerment zone established under section 469.312. 
  3.2      Sec. 3.  Minnesota Statutes 1994, section 273.124, 
  3.3   subdivision 6, is amended to read: 
  3.4      Subd. 6.  [LEASEHOLD COOPERATIVES.] When one or more 
  3.5   dwellings or one or more buildings which each contain several 
  3.6   dwelling units is owned by a nonprofit corporation subject to 
  3.7   the provisions of chapter 317A and qualifying under section 
  3.8   501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as 
  3.9   amended through December 31, 1990, or a limited partnership 
  3.10  which corporation or partnership operates the property in 
  3.11  conjunction with a cooperative association, and has received 
  3.12  public financing, homestead treatment may be claimed by the 
  3.13  cooperative association on behalf of the members of the 
  3.14  cooperative for each dwelling unit occupied by a member of the 
  3.15  cooperative.  The cooperative association must provide the 
  3.16  assessor with the social security numbers of those members.  To 
  3.17  qualify for the treatment provided by this subdivision, the 
  3.18  following conditions must be met:  
  3.19     (a) the cooperative association must be organized under 
  3.20  chapter 308A and all voting members of the board of directors 
  3.21  must be resident tenants of the cooperative and must be elected 
  3.22  by the resident tenants of the cooperative; 
  3.23     (b) the cooperative association must have a lease for 
  3.24  occupancy of the property for a term of at least 20 years, which 
  3.25  permits the cooperative association, while not in default on the 
  3.26  lease, to participate materially in the management of the 
  3.27  property, including material participation in establishing 
  3.28  budgets, setting rent levels, and hiring and supervising a 
  3.29  management agent; 
  3.30     (c) to the extent permitted under state or federal law, the 
  3.31  cooperative association must have a right under a written 
  3.32  agreement with the owner to purchase the property if the owner 
  3.33  proposes to sell it; if the cooperative association does not 
  3.34  purchase the property it is offered for sale, the owner may not 
  3.35  subsequently sell the property to another purchaser at a price 
  3.36  lower than the price at which it was offered for sale to the 
  4.1   cooperative association unless the cooperative association 
  4.2   approves the sale; 
  4.3      (d) a minimum of 40 percent of the cooperative 
  4.4   association's members must have incomes at or less than 60 
  4.5   percent of area median gross income as determined by the United 
  4.6   States Secretary of Housing and Urban Development under section 
  4.7   142(d)(2)(B) of the Internal Revenue Code of 1986, as amended 
  4.8   through December 31, 1991.  For purposes of this clause, "member 
  4.9   income" means the income of a member existing at the time the 
  4.10  member acquires cooperative membership; 
  4.11     (e) if a limited partnership owns the property, it must 
  4.12  include as the managing general partner a nonprofit organization 
  4.13  operating under the provisions of chapter 317A and qualifying 
  4.14  under section 501(c)(3) or 501(c)(4) of the Internal Revenue 
  4.15  Code of 1986, as amended through December 31, 1990, and the 
  4.16  limited partnership agreement must provide that the managing 
  4.17  general partner have sufficient powers so that it materially 
  4.18  participates in the management and control of the limited 
  4.19  partnership; 
  4.20     (f) prior to becoming a member of a leasehold cooperative 
  4.21  described in this subdivision, a person must have received 
  4.22  notice that (1) describes leasehold cooperative property in 
  4.23  plain language, including but not limited to the effects of 
  4.24  classification under this subdivision on rents, property taxes 
  4.25  and tax credits or refunds, and operating expenses, and (2) 
  4.26  states that copies of the articles of incorporation and bylaws 
  4.27  of the cooperative association, the lease between the owner and 
  4.28  the cooperative association, a sample sublease between the 
  4.29  cooperative association and a tenant, and, if the owner is a 
  4.30  partnership, a copy of the limited partnership agreement, can be 
  4.31  obtained upon written request at no charge from the owner, and 
  4.32  the owner must send or deliver the materials within seven days 
  4.33  after receiving any request; 
  4.34     (g) if a dwelling unit of a building was occupied on the 
  4.35  60th day prior to the date on which the unit became leasehold 
  4.36  cooperative property described in this subdivision, the notice 
  5.1   described in paragraph (f) must have been sent by first class 
  5.2   mail to the occupant of the unit at least 60 days prior to the 
  5.3   date on which the unit became leasehold cooperative property.  
  5.4   For purposes of the notice under this paragraph, the copies of 
  5.5   the documents referred to in paragraph (f) may be in proposed 
  5.6   version, provided that any subsequent material alteration of 
  5.7   those documents made after the occupant has requested a copy 
  5.8   shall be disclosed to any occupant who has requested a copy of 
  5.9   the document.  Copies of the articles of incorporation and 
  5.10  certificate of limited partnership shall be filed with the 
  5.11  secretary of state after the expiration of the 60-day period 
  5.12  unless the change to leasehold cooperative status does not 
  5.13  proceed; 
  5.14     (h) the county attorney of the county in which the property 
  5.15  is located must certify to the assessor that the property meets 
  5.16  the requirements of this subdivision; 
  5.17     (i) the public financing received must be from at least one 
  5.18  of the following sources: 
  5.19     (1) tax increment financing proceeds or empowerment zone 
  5.20  tax receipts used for the acquisition or rehabilitation of the 
  5.21  building or interest rate write-downs relating to the 
  5.22  acquisition of the building; 
  5.23     (2) government issued bonds exempt from taxes under section 
  5.24  103 of the Internal Revenue Code of 1986, as amended through 
  5.25  December 31, 1991, the proceeds of which are used for the 
  5.26  acquisition or rehabilitation of the building; 
  5.27     (3) programs under section 221(d)(3), 202, or 236, of Title 
  5.28  II of the National Housing Act; 
  5.29     (4) rental housing program funds under Section 8 of the 
  5.30  United States Housing Act of 1937 or the market rate family 
  5.31  graduated payment mortgage program funds administered by the 
  5.32  Minnesota housing finance agency that are used for the 
  5.33  acquisition or rehabilitation of the building; 
  5.34     (5) low-income housing credit under section 42 of the 
  5.35  Internal Revenue Code of 1986, as amended through December 31, 
  5.36  1991; 
  6.1      (6) public financing provided by a local government used 
  6.2   for the acquisition or rehabilitation of the building, including 
  6.3   grants or loans from (i) federal community development block 
  6.4   grants; (ii) HOME block grants; or (iii) residential rental 
  6.5   bonds issued under chapter 474A; or 
  6.6      (7) other rental housing program funds provided by the 
  6.7   Minnesota housing finance agency for the acquisition or 
  6.8   rehabilitation of the building; 
  6.9      (j) at the time of the initial request for homestead 
  6.10  classification or of any transfer of ownership of the property, 
  6.11  the governing body of the municipality in which the property is 
  6.12  located must hold a public hearing and make the following 
  6.13  findings: 
  6.14     (1) that the granting of the homestead treatment of the 
  6.15  apartment's units will facilitate safe, clean, affordable 
  6.16  housing for the cooperative members that would otherwise not be 
  6.17  available absent the homestead designation; 
  6.18     (2) that the owner has presented information satisfactory 
  6.19  to the governing body showing that the savings garnered from the 
  6.20  homestead designation of the units will be used to reduce 
  6.21  tenant's rents or provide a level of furnishing or maintenance 
  6.22  not possible absent the designation; and 
  6.23     (3) that the requirements of paragraphs (b), (d), and (i) 
  6.24  have been met. 
  6.25     Homestead treatment must be afforded to units occupied by 
  6.26  members of the cooperative association and the units must be 
  6.27  assessed as provided in subdivision 3, provided that any unit 
  6.28  not so occupied shall be classified and assessed pursuant to the 
  6.29  appropriate class.  No more than three acres of land may, for 
  6.30  assessment purposes, be included with each dwelling unit that 
  6.31  qualifies for homestead treatment under this subdivision. 
  6.32     Sec. 4.  Minnesota Statutes 1994, section 273.1398, 
  6.33  subdivision 1, is amended to read: 
  6.34     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  6.35  terms defined in this subdivision have the meanings given them. 
  6.36     (b) "Unique taxing jurisdiction" means the geographic area 
  7.1   subject to the same set of local tax rates. 
  7.2      (c) "Net tax capacity" means the product of (i) the 
  7.3   appropriate net class rates for the year in which the aid is 
  7.4   payable, except that for aid payable in 1993 the class rate 
  7.5   applicable to class 4a shall be 3.5 percent; and the class rate 
  7.6   applicable to class 4b shall be 2.65 percent; and for aid 
  7.7   payable in 1994 the class rate applicable to class 4b shall be 
  7.8   2.4 percent and the class rate applicable to class 2a property 
  7.9   over $115,000 market value and less than 320 acres is 1.15 
  7.10  percent, and (ii) estimated market values for the assessment two 
  7.11  years prior to that in which aid is payable.  The exclusion of 
  7.12  the value of the house, garage, and one acre from the first tier 
  7.13  of agricultural homestead property must not be considered in 
  7.14  determining net tax capacity for purposes of this paragraph for 
  7.15  aids payable in 1994.  "Total net tax capacity" means the net 
  7.16  tax capacities for all property within the unique taxing 
  7.17  jurisdiction.  The total net tax capacity used shall be reduced 
  7.18  by the sum of (1) the unique taxing jurisdiction's net tax 
  7.19  capacity of commercial industrial property as defined in section 
  7.20  473F.02, subdivision 3, multiplied by the ratio determined 
  7.21  pursuant to section 473F.08, subdivision 6, for the 
  7.22  municipality, as defined in section 473F.02, subdivision 8, in 
  7.23  which the unique taxing jurisdiction is located, (2) the net tax 
  7.24  capacity of the captured value of tax increment financing 
  7.25  districts as defined in section 469.177, subdivision 2, and of 
  7.26  the captured net tax capacity of empowerment zones as defined in 
  7.27  section 469.314, subdivision 2, and (3) the net tax capacity of 
  7.28  transmission lines deducted from a local government's total net 
  7.29  tax capacity under section 273.425.  For purposes of determining 
  7.30  the net tax capacity of property referred to in clauses (1), 
  7.31  (2), and (3), the net tax capacity shall be multiplied by the 
  7.32  ratio of the highest class rate for class 3a property for taxes 
  7.33  payable in the year in which the aid is payable to the highest 
  7.34  class rate for class 3a property in the prior year.  Net tax 
  7.35  capacity cannot be less than zero. 
  7.36     (d) "Previous net tax capacity" means the product of the 
  8.1   appropriate net class rates for the year previous to the year in 
  8.2   which the aid is payable, and estimated market values for the 
  8.3   assessment two years prior to that in which aid is payable.  
  8.4   "Total previous net tax capacity" means the previous net tax 
  8.5   capacities for all property within the unique taxing 
  8.6   jurisdiction.  The total previous net tax capacity shall be 
  8.7   reduced by the sum of (1) the unique taxing jurisdiction's 
  8.8   previous net tax capacity of commercial-industrial property as 
  8.9   defined in section 473F.02, subdivision 3, multiplied by the 
  8.10  ratio determined pursuant to section 473F.08, subdivision 6, for 
  8.11  the municipality, as defined in section 473F.02, subdivision 8, 
  8.12  in which the unique taxing jurisdiction is located, (2) the 
  8.13  previous net tax capacity of the captured value of tax increment 
  8.14  financing districts as defined in section 469.177, subdivision 
  8.15  2, and of empowerment zones as defined in section 469.314, 
  8.16  subdivision 2, and (3) the previous net tax capacity of 
  8.17  transmission lines deducted from a local government's total net 
  8.18  tax capacity under section 273.425.  Previous net tax capacity 
  8.19  cannot be less than zero. 
  8.20     (e) "Equalized market values" are market values that have 
  8.21  been equalized by dividing the assessor's estimated market value 
  8.22  for the second year prior to that in which the aid is payable by 
  8.23  the assessment sales ratios determined by class in the 
  8.24  assessment sales ratio study conducted by the department of 
  8.25  revenue pursuant to section 124.2131 in the second year prior to 
  8.26  that in which the aid is payable.  The equalized market values 
  8.27  shall equal the unequalized market values divided by the 
  8.28  assessment sales ratio. 
  8.29     (f) "Equalized school levies" means the amounts levied for: 
  8.30     (1) general education under section 124A.23, subdivision 2; 
  8.31     (2) supplemental revenue under section 124A.22, subdivision 
  8.32  8a; 
  8.33     (3) capital expenditure facilities revenue under section 
  8.34  124.243, subdivision 3; 
  8.35     (4) capital expenditure equipment revenue under section 
  8.36  124.244, subdivision 2; 
  9.1      (5) basic transportation under section 124.226, subdivision 
  9.2   1; and 
  9.3      (6) referendum revenue under section 124A.03. 
  9.4      (g) "Current local tax rate" means the quotient derived by 
  9.5   dividing the taxes levied within a unique taxing jurisdiction 
  9.6   for taxes payable in the year prior to that for which aids are 
  9.7   being calculated by the total previous net tax capacity of the 
  9.8   unique taxing jurisdiction.  
  9.9      (h) For purposes of calculating and allocating homestead 
  9.10  and agricultural credit aid authorized pursuant to subdivision 2 
  9.11  and the disparity reduction aid authorized in subdivision 3, 
  9.12  "gross taxes levied on all properties," "gross taxes," or "taxes 
  9.13  levied" means the total net tax capacity based taxes levied on 
  9.14  all properties except that levied on the captured value of tax 
  9.15  increment districts as defined in section 469.177, subdivision 
  9.16  2, and that levied on the portion of commercial industrial 
  9.17  properties' assessed value or gross tax capacity, as defined in 
  9.18  section 473F.02, subdivision 3, subject to the areawide tax as 
  9.19  provided in section 473F.08, subdivision 6, in a unique taxing 
  9.20  jurisdiction.  "Gross taxes" are before any reduction for 
  9.21  disparity reduction aid but "taxes levied" are after any 
  9.22  reduction for disparity reduction aid.  Gross taxes levied or 
  9.23  taxes levied cannot be less than zero.  
  9.24     "Taxes levied" excludes equalized school levies. 
  9.25     (i) "Human services aids" means: 
  9.26     (1) aid to families with dependent children under sections 
  9.27  256.82, subdivision 1, and 256.935, subdivision 1; 
  9.28     (2) medical assistance under sections 256B.041, subdivision 
  9.29  5, and 256B.19, subdivision 1; 
  9.30     (3) general assistance medical care under section 256D.03, 
  9.31  subdivision 6; 
  9.32     (4) general assistance under section 256D.03, subdivision 
  9.33  2; 
  9.34     (5) work readiness under section 256D.03, subdivision 2; 
  9.35     (6) emergency assistance under section 256.871, subdivision 
  9.36  6; 
 10.1      (7) Minnesota supplemental aid under section 256D.36, 
 10.2   subdivision 1; 
 10.3      (8) preadmission screening and alternative care grants; 
 10.4      (9) work readiness services under section 256D.051; 
 10.5      (10) case management services under section 256.736, 
 10.6   subdivision 13; 
 10.7      (11) general assistance claims processing, medical 
 10.8   transportation and related costs; and 
 10.9      (12) medical assistance, medical transportation and related 
 10.10  costs. 
 10.11     (j) "Household adjustment factor" means the number of 
 10.12  households for the second most recent year preceding that in 
 10.13  which the aids are payable divided by the number of households 
 10.14  for the third most recent year.  The household adjustment factor 
 10.15  cannot be less than one.  
 10.16     (k) "Growth adjustment factor" means the household 
 10.17  adjustment factor in the case of counties.  In the case of 
 10.18  cities, towns, school districts, and special taxing districts, 
 10.19  the growth adjustment factor equals one.  The growth adjustment 
 10.20  factor cannot be less than one.  
 10.21     (l) For aid payable in 1992 and subsequent years, 
 10.22  "homestead and agricultural credit base" means the previous 
 10.23  year's certified homestead and agricultural credit aid 
 10.24  determined under subdivision 2 less any permanent aid reduction 
 10.25  in the previous year to homestead and agricultural credit aid 
 10.26  under section 477A.0132, plus, for aid payable in 1992, fiscal 
 10.27  disparity homestead and agricultural credit aid under 
 10.28  subdivision 2b.  
 10.29     (m) "Net tax capacity adjustment" means (1) the total 
 10.30  previous net tax capacity minus the total net tax capacity, 
 10.31  multiplied by (2) the unique taxing jurisdiction's current local 
 10.32  tax rate.  The net tax capacity adjustment cannot be less than 
 10.33  zero. 
 10.34     (n) "Fiscal disparity adjustment" means the difference 
 10.35  between (1) a taxing jurisdiction's fiscal disparity 
 10.36  distribution levy under section 473F.08, subdivision 3, clause 
 11.1   (a), for taxes payable in the year prior to that for which aids 
 11.2   are being calculated, and (2) the same distribution levy 
 11.3   multiplied by the ratio of the highest class rate for class 3 
 11.4   property for taxes payable in the year prior to that for which 
 11.5   aids are being calculated to the highest class rate for class 3 
 11.6   property for taxes payable in the second prior year to that for 
 11.7   which aids are being calculated.  In the case of school 
 11.8   districts, the fiscal disparity distribution levy shall exclude 
 11.9   that part of the levy attributable to equalized school levies. 
 11.10     Sec. 5.  Minnesota Statutes 1994, section 275.011, 
 11.11  subdivision 1, is amended to read: 
 11.12     Subdivision 1.  The property tax levied for any purpose 
 11.13  under a special law that is not codified in Minnesota Statutes 
 11.14  or a city charter provision and that is subject to a mill rate 
 11.15  limitation imposed by the special law or city charter provision, 
 11.16  excluding levies subject to mill rate limitations that use 
 11.17  adjusted assessed values determined by the commissioner of 
 11.18  revenue under section 124.2131, must not exceed the following 
 11.19  amount for the years specified: 
 11.20     (a) for taxes payable in 1988, the product of the 
 11.21  applicable mill rate limitation imposed by special law or city 
 11.22  charter provision multiplied by the total assessed valuation of 
 11.23  all taxable property subject to the tax as adjusted by the 
 11.24  provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
 11.25  subdivision 7a; and 275.49; 
 11.26     (b) for taxes payable in 1989, the product of (1) the 
 11.27  property tax levy limitation for the taxes payable year 1988 
 11.28  determined under clause (a) multiplied by (2) an index for 
 11.29  market valuation changes equal to the assessment year 1988 total 
 11.30  market valuation of all taxable property subject to the tax 
 11.31  divided by the assessment year 1987 total market valuation of 
 11.32  all taxable property subject to the tax; and 
 11.33     (c) for taxes payable in 1990 and subsequent years, the 
 11.34  product of (1) the property tax levy limitation for the previous 
 11.35  year determined pursuant to this subdivision multiplied by (2) 
 11.36  an index for market valuation changes equal to the total market 
 12.1   valuation of all taxable property subject to the tax for the 
 12.2   current assessment year divided by the total market valuation of 
 12.3   all taxable property subject to the tax for the previous 
 12.4   assessment year. 
 12.5      For the purpose of determining the property tax levy 
 12.6   limitation for the taxes payable year 1988 and subsequent years 
 12.7   under this subdivision, "total market valuation" means the total 
 12.8   market valuation of all taxable property subject to the tax 
 12.9   without valuation adjustments for fiscal disparities (chapter 
 12.10  473F), tax increment financing (sections 469.174 to 
 12.11  469.179), empowerment zones (sections 469.311 to 469.314), and 
 12.12  high voltage transmission lines (section 273.425). 
 12.13     Sec. 6.  Minnesota Statutes 1994, section 428A.03, 
 12.14  subdivision 1, is amended to read: 
 12.15     Subdivision 1.  [HEARING.] Service charges may be imposed 
 12.16  by the city within the special service district at a rate or 
 12.17  amount sufficient to produce the revenues required to provide 
 12.18  special services in the district.  To determine the appropriate 
 12.19  rate for a service charge based on net tax capacity, taxable 
 12.20  property or net tax capacity must be determined without regard 
 12.21  to captured or original net tax capacity under section 
 12.22  469.177 or 469.314 or to the distribution or contribution value 
 12.23  under section 473F.08.  Service charges may not be imposed to 
 12.24  finance a special service if the service is ordinarily provided 
 12.25  by the city from its general fund revenues unless the service is 
 12.26  provided in the district at an increased level.  In that case, a 
 12.27  service charge may be imposed only in the amount needed to pay 
 12.28  for the increased level of service.  A service charge may not be 
 12.29  imposed on the receipts from the sale of intoxicating liquor, 
 12.30  food, or lodging.  Before the imposition of service charges in a 
 12.31  district, for each calendar year, a hearing must be held under 
 12.32  section 428A.02 and notice must be given and must be mailed to 
 12.33  any individual or business organization subject to a service 
 12.34  charge.  For purposes of this section, the notice shall also 
 12.35  include: 
 12.36     (1) a statement that all interested persons will be given 
 13.1   an opportunity to be heard at the hearing regarding a proposed 
 13.2   service charge; 
 13.3      (2) the estimated cost of improvements to be paid for in 
 13.4   whole or in part by service charges imposed under this section, 
 13.5   the estimated cost of operating and maintaining the improvements 
 13.6   during the first year and upon completion of the improvements, 
 13.7   the proposed method and source of financing the improvements, 
 13.8   and the annual cost of operating and maintaining the 
 13.9   improvements; 
 13.10     (3) the proposed rate or amount of the proposed service 
 13.11  charge to be imposed in the district during the calendar year 
 13.12  and the nature and character of special services to be rendered 
 13.13  in the district during the calendar year in which the service 
 13.14  charge is to be collected; and 
 13.15     (4) a statement that the petition requirements of section 
 13.16  428A.08 have either been met or do not apply to the proposed 
 13.17  service charge. 
 13.18     Within six months of the public hearing, the city may adopt 
 13.19  a resolution imposing a service charge within the district not 
 13.20  exceeding the amount or rate expressed in the notice issued 
 13.21  under this section. 
 13.22     Sec. 7.  Minnesota Statutes 1994, section 428A.05, is 
 13.23  amended to read: 
 13.24     428A.05 [COLLECTION OF SERVICE CHARGES.] 
 13.25     Service charges may be imposed on the basis of the net tax 
 13.26  capacity of the property on which the service charge is imposed 
 13.27  but must be spread only upon the net tax capacity of the taxable 
 13.28  property located in the geographic area described in the 
 13.29  ordinance.  Service charges based on net tax capacity may be 
 13.30  payable and collected at the same time and in the same manner as 
 13.31  provided for payment and collection of ad valorem taxes.  Other 
 13.32  service charges imposed must be collected as provided by 
 13.33  ordinance.  Service charges based on net tax capacity collected 
 13.34  under sections 428A.01 to 428A.10 are not included in 
 13.35  computations under section 469.177, 469.314, chapter 473F, or 
 13.36  any other law that applies to general ad valorem levies. 
 14.1      Sec. 8.  [469.311] [DEFINITIONS.] 
 14.2      Subdivision 1.  [CAPTURED NET TAX CAPACITY.] "Captured net 
 14.3   tax capacity" means 75 percent of the amount by which the 
 14.4   current net tax capacity of an empowerment zone exceeds the 
 14.5   original net tax capacity, including the value of property 
 14.6   normally taxable as personal property by reason of its location 
 14.7   on or over property owned by a tax-exempt entity. 
 14.8      Subd. 2.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
 14.9   capacity" means the tax capacity of all taxable real property 
 14.10  within an empowerment zone as certified by the commissioner of 
 14.11  revenue for the previous assessment year, provided that the 
 14.12  request by a county for certification of a new empowerment zone 
 14.13  has been made to the county auditor by June 30.  The original 
 14.14  tax capacity of zones for which requests are filed after June 30 
 14.15  has an original tax capacity based on the current assessment 
 14.16  year.  In any case, the original tax capacity must be determined 
 14.17  together with subsequent adjustments as set forth in section 
 14.18  469.314, subdivisions 1 and 4.  In determining the original net 
 14.19  tax capacity, the net tax capacity of real property exempt from 
 14.20  taxation at the time of the request shall be zero, except for 
 14.21  real property which is tax exempt by reason of public ownership 
 14.22  by the requesting county and which has been publicly owned for 
 14.23  less than one year prior to the date of the request for 
 14.24  certification, in which event the net tax capacity of the 
 14.25  property shall be the net tax capacity as most recently 
 14.26  determined by the commissioner of revenue. 
 14.27     Subd. 3.  [PARCEL.] "Parcel" means a tract or plat of land 
 14.28  established prior to the certification of the zone as a single 
 14.29  unit for purposes of assessment. 
 14.30     Sec. 9.  [469.312] [ESTABLISHING; MODIFYING EMPOWERMENT 
 14.31  ZONE; ANNUAL ACCOUNTS.] 
 14.32     Subdivision 1.  [EMPOWERMENT ZONE PLAN.] To establish an 
 14.33  empowerment zone under sections 469.311 to 469.314, a county 
 14.34  shall develop an empowerment zone plan which shall contain: 
 14.35     (1) a statement of the objectives and a description of the 
 14.36  projects proposed by the county for the empowerment zone to 
 15.1   accomplish the zone's purposes as stated in section 10, 
 15.2   subdivision 2; 
 15.3      (2) a statement as to the program for the zone including a 
 15.4   plan designed to secure development of private commercial or 
 15.5   industrial enterprises within the zone.  In addition, the public 
 15.6   infrastructure improvements to be undertaken in the empowerment 
 15.7   zone must be public infrastructure improvements that will 
 15.8   maximize the development of private commercial or industrial 
 15.9   enterprises within the empowerment zone; 
 15.10     (3) estimates of the following: 
 15.11     (i) cost of the program, including administration expenses; 
 15.12     (ii) sources of revenue to finance or otherwise pay public 
 15.13  costs; 
 15.14     (iii) the most recent net tax capacity of taxable real 
 15.15  property within the empowerment zone; and 
 15.16     (iv) the estimated captured net tax capacity of the 
 15.17  empowerment zone at completion; 
 15.18     (4) statements of the county's alternate estimates of the 
 15.19  impact of the empowerment zone on the net tax capacities of all 
 15.20  taxing jurisdictions in which the empowerment zone is located in 
 15.21  whole or in part.  For purposes of one statement, the county 
 15.22  shall assume that the estimated captured net tax capacity would 
 15.23  be available to the taxing jurisdictions without creation of the 
 15.24  zone, and for purposes of the second statement, the county shall 
 15.25  assume that none of the estimated captured net tax capacity 
 15.26  would be available to the taxing jurisdictions without creation 
 15.27  of the zone; and 
 15.28     (5) identification of all parcels to be included in the 
 15.29  zone, including verification that the total market value of all 
 15.30  the parcels as most recently determined by the assessor at the 
 15.31  time of the request for certification is no greater than the 
 15.32  market value of those parcels as determined by the assessor as 
 15.33  of the date four years prior to the request. 
 15.34     Subd. 2.  [CITY, SCHOOL BOARD, AND PARK BOARD 
 15.35  APPROVAL.] The city council of each city in which any portion of 
 15.36  the proposed zone is located, the school board of each school 
 16.1   district in which any portion of the proposed zone is located, 
 16.2   and the board of the park district in which any portion of the 
 16.3   proposed zone is located, if any, must approve the creation of 
 16.4   an empowerment zone.  The county shall present to the city 
 16.5   council and the boards its estimate of the fiscal and economic 
 16.6   implications of the proposed empowerment zone. 
 16.7      Subd. 3.  [COUNTY APPROVAL; HEARING.] The county shall 
 16.8   approve the empowerment zone plan only after a public hearing 
 16.9   thereon after published notice in a newspaper of general 
 16.10  circulation in the county at least once not less than ten days 
 16.11  nor more than 30 days prior to the date of the hearing.  The 
 16.12  published notice must include a map of the area of the zone from 
 16.13  which increments may be collected.  Before or at the time of 
 16.14  approval of the empowerment zone plan, the county shall make the 
 16.15  following findings, and shall set forth in writing the reasons 
 16.16  and supporting facts for each determination: 
 16.17     (1) that the public benefits proposed to accrue through the 
 16.18  plan, in the opinion of the county, would not reasonably be 
 16.19  expected to occur solely through private investment within the 
 16.20  reasonably foreseeable future and therefore the creation of the 
 16.21  empowerment zone is deemed necessary; 
 16.22     (2) that the empowerment zone plan will afford maximum 
 16.23  opportunity, consistent with the sound needs of the county as a 
 16.24  whole, for the development or redevelopment of the empowerment 
 16.25  zone by private enterprise; and 
 16.26     (3) that the county elects the method of tax increment 
 16.27  computation set forth in section 469.314, subdivision 3, 
 16.28  paragraph (b), if applicable. 
 16.29     Subd. 4.  [EFFECT OF APPROVAL.] Upon adoption of the 
 16.30  empowerment zone plan, the authority shall file a copy of the 
 16.31  plan with the commissioner of revenue. 
 16.32     Once approved, the determination of the county to create 
 16.33  the empowerment zone and the resolution of the county board of 
 16.34  commissioners shall be conclusive of the findings therein and of 
 16.35  the public need for creation of the empowerment zone. 
 16.36     Sec. 10.  [469.313] [LIMITATIONS.] 
 17.1      Subdivision 1.  [DURATION LIMITS; TERMS.] No empowerment 
 17.2   zone taxes shall be paid to the county after five years from 
 17.3   date of receipt by the county of the first empowerment zone tax 
 17.4   receipts. 
 17.5      Subd. 2.  [LIMITATION ON USE OF EMPOWERMENT ZONE TAX 
 17.6   RECEIPTS; GENERAL RULE.] All revenues derived from the 
 17.7   empowerment zone tax shall be used in accordance with the 
 17.8   empowerment zone plan.  The revenues shall be used solely to pay 
 17.9   the costs of capital improvements relating to public 
 17.10  infrastructure, natural systems, and housing.  The expenditures 
 17.11  for these purposes must be planned in a manner that is most 
 17.12  likely to accomplish the following goals: 
 17.13     (1) to reduce crime; 
 17.14     (2) to implement strategies for job skill enhancement; or 
 17.15     (3) to improve the local tax base. 
 17.16     Sec. 11.  [469.314] [COMPUTATION OF EMPOWERMENT ZONE TAX.] 
 17.17     Subdivision 1.  [ORIGINAL NET TAX CAPACITY.] (a) Upon or 
 17.18  after adoption of an empowerment zone plan, the auditor of the 
 17.19  county in which the zone is situated shall, upon request of the 
 17.20  county, certify the original net tax capacity of the empowerment 
 17.21  zone as described in the empowerment zone plan and shall certify 
 17.22  in each year thereafter the amount by which the original net tax 
 17.23  capacity has increased or decreased as a result of a change in 
 17.24  tax exempt status of property within the zone or changes 
 17.25  pursuant to subdivision 4. 
 17.26     (b) If the classification under section 273.13 of property 
 17.27  located in a zone changes to a classification that has a 
 17.28  different assessment ratio, the original net tax capacity of 
 17.29  that property must be redetermined at the time when its use is 
 17.30  changed as if the property had originally been classified in the 
 17.31  same class in which it is classified after its use is changed. 
 17.32     (c) The amount to be added to the original net tax capacity 
 17.33  of the zone as a result of previously tax exempt real property 
 17.34  within the zone becoming taxable equals the net tax capacity of 
 17.35  the real property as most recently assessed pursuant to section 
 17.36  273.18 or, if that assessment was made more than one year prior 
 18.1   to the date of title transfer rendering the property taxable, 
 18.2   the net tax capacity assessed by the assessor at the time of the 
 18.3   transfer.  If substantial taxable improvements were made to a 
 18.4   parcel after certification of the zone and if the property later 
 18.5   becomes tax exempt, in whole or part, as a result of the county 
 18.6   acquiring the property through foreclosure or exercise of 
 18.7   remedies under a lease or other revenue agreement or as a result 
 18.8   of tax forfeiture, the amount to be added to the original net 
 18.9   tax capacity of the zone as a result of the property again 
 18.10  becoming taxable is the amount of the parcel's value that was 
 18.11  included in original net tax capacity when the parcel was first 
 18.12  certified. 
 18.13     (d) If the net tax capacity of a property increases because 
 18.14  the property no longer qualifies under the Minnesota 
 18.15  agricultural property tax law, section 273.111; the Minnesota 
 18.16  open space property tax law, section 273.112; or the 
 18.17  metropolitan agricultural preserves act, chapter 473H, or 
 18.18  because platted, unimproved property is improved or three years 
 18.19  pass after approval of the plat under section 273.11, 
 18.20  subdivision 1, the increase in net tax capacity must be added to 
 18.21  the original net tax capacity. 
 18.22     (e) The amount to be subtracted from the original net tax 
 18.23  capacity of the zone as a result of previously taxable real 
 18.24  property within the zone becoming tax exempt shall be the amount 
 18.25  of original net tax capacity initially attributed to the 
 18.26  property becoming tax exempt.  If the net tax capacity of 
 18.27  property located within the empowerment zone is reduced by 
 18.28  reason of a court-ordered abatement, stipulation agreement, 
 18.29  voluntary abatement made by the assessor or auditor, or by order 
 18.30  of the commissioner of revenue, the reduction shall be applied 
 18.31  to the original net tax capacity of the zone when the property 
 18.32  upon which the abatement is made has not been improved since the 
 18.33  date of certification of the zone and to the captured net tax 
 18.34  capacity of the zone in each year thereafter when the abatement 
 18.35  relates to improvements made after the date of certification.  
 18.36  The county auditor may specify reasonable form and content of 
 19.1   the request for certification of the county. 
 19.2      Subd. 2.  [CAPTURED NET TAX CAPACITY.] The county auditor 
 19.3   shall certify the amount of the captured net tax capacity to the 
 19.4   county each year, together with the proportion that the captured 
 19.5   net tax capacity bears to the total net tax capacity of the real 
 19.6   property within the tax increment financing zone for that year. 
 19.7      Subd. 3.  [EMPOWERMENT ZONE TAX; RELATIONSHIP TO CHAPTER 
 19.8   473F.] (a) Unless the county board of commissioner elects, 
 19.9   pursuant to paragraph (b), the following method of computation 
 19.10  shall apply: 
 19.11     (1) the original net tax capacity and the current net tax 
 19.12  capacity shall be determined before the application of the 
 19.13  fiscal disparity provisions of chapter 473F.  Where the original 
 19.14  net tax capacity is equal to or greater than the current net tax 
 19.15  capacity, there is no captured net tax capacity and no tax 
 19.16  increment determination.  Where the original net tax capacity is 
 19.17  less than the current net tax capacity, 75 percent of the 
 19.18  difference between the original net tax capacity and the current 
 19.19  net tax capacity is the captured net tax capacity.  This amount 
 19.20  is the captured net tax capacity of the county; and 
 19.21     (2) the county auditor shall exclude the captured net tax 
 19.22  capacity of the county from the net tax capacity of the local 
 19.23  taxing districts in determining local taxing district tax rates. 
 19.24  The local tax rates so determined are to be extended against the 
 19.25  captured net tax capacity of the county as well as the net tax 
 19.26  capacity of the local taxing districts.  The tax generated by 
 19.27  the extension of the local taxing district tax rates to the 
 19.28  captured net tax capacity of the county is the empowerment zone 
 19.29  tax of the county. 
 19.30     (b) The county may, by resolution approving the empowerment 
 19.31  zone financing plan pursuant to section 469.312, subdivision 3, 
 19.32  elect the following method of computation: 
 19.33     (1) the original net tax capacity shall be determined 
 19.34  before the application of the fiscal disparity provisions of 
 19.35  chapter 473F.  The current net tax capacity shall exclude any 
 19.36  fiscal disparity commercial-industrial net tax capacity increase 
 20.1   between the original year and the current year multiplied by the 
 20.2   fiscal disparity ratio determined pursuant to section 473F.08, 
 20.3   subdivision 6.  Where the original net tax capacity is equal to 
 20.4   or greater than the current net tax capacity, there is no 
 20.5   captured net tax capacity and no empowerment zone tax 
 20.6   determination.  Where the original net tax capacity is less than 
 20.7   the current net tax capacity, 75 percent of the difference 
 20.8   between the original net tax capacity and the current net tax 
 20.9   capacity is the captured net tax capacity.  This amount is the 
 20.10  captured net tax capacity of the county; 
 20.11     (2) the county auditor shall exclude the captured net tax 
 20.12  capacity of the county from the net tax capacity of the local 
 20.13  taxing districts in determining local taxing district tax 
 20.14  rates.  The local tax rates so determined are to be extended 
 20.15  against the captured net tax capacity of the county as well as 
 20.16  the net tax capacity of the local taxing districts.  The tax 
 20.17  generated by the extension of the local taxing zone tax rates to 
 20.18  the captured net tax capacity of the county is the empowerment 
 20.19  zone tax of the county; and 
 20.20     (3) an election by the county pursuant to paragraph (b) 
 20.21  shall be submitted to the county auditor by the county at the 
 20.22  time of the request for certification pursuant to subdivision 1. 
 20.23     (c) The method of computation of empowerment zone tax 
 20.24  applied to a zone pursuant to paragraph (a) or (b) shall remain 
 20.25  the same for the duration of the zone, except that the county 
 20.26  board of commissioners may elect to change its election from the 
 20.27  method of computation in paragraph (a) to the method in 
 20.28  paragraph (b). 
 20.29     Subd. 4.  [PRIOR PLANNED IMPROVEMENTS.] The county shall, 
 20.30  after diligent search, accompany its request for certification 
 20.31  to the county auditor pursuant to subdivision 1 with a listing 
 20.32  of all properties within the empowerment zone for which building 
 20.33  permits have been issued during the 18 months immediately 
 20.34  preceding approval of the empowerment plan by the county 
 20.35  pursuant to section 469.312, subdivision 3.  The county auditor 
 20.36  shall increase the original net tax capacity of the zone by the 
 21.1   net tax capacity of each improvement for which a building permit 
 21.2   was issued. 
 21.3      Subd. 5.  [EMPOWERMENT ZONE TAX RECEIPTS ACCOUNT.] The 
 21.4   empowerment zone tax receipts received with respect to any zone 
 21.5   shall be segregated by the county in a special account or 
 21.6   accounts on its official books and records or as otherwise 
 21.7   established by resolution of the county to be held by a trustee 
 21.8   or trustees for the benefit of holders of the bonds. 
 21.9      Subd. 6.  [REQUEST FOR CERTIFICATION OF NEW EMPOWERMENT 
 21.10  ZONE.] A request for certification of a new empowerment zone 
 21.11  pursuant to subdivision 1 received by the county auditor on or 
 21.12  before July 1 shall be recognized by the county auditor in 
 21.13  determining local tax rates for the current and subsequent levy 
 21.14  years.  Requests received by the county auditor after July 1 
 21.15  shall not be recognized by the county auditor in determining 
 21.16  local tax rates for the current levy year but shall be 
 21.17  recognized by the county auditor in determining local tax rates 
 21.18  for subsequent levy years. 
 21.19     Subd. 7.  [PROPERTY CLASSIFICATION CHANGES.] When any law 
 21.20  governing the classification of real property and determining 
 21.21  the percentage of market value to be assessed for ad valorem 
 21.22  taxation purposes is amended, the increase or decrease in net 
 21.23  tax capacity resulting therefrom shall be applied 
 21.24  proportionately to original net tax capacity and captured net 
 21.25  tax capacity of any empowerment zone in each year thereafter. 
 21.26     Sec. 12.  Minnesota Statutes 1994, section 473.167, 
 21.27  subdivision 3, is amended to read: 
 21.28     Subd. 3.  [TAX.] The council may levy a tax on all taxable 
 21.29  property in the metropolitan area, as defined in section 
 21.30  473.121, to provide funds for loans made pursuant to 
 21.31  subdivisions 2 and 2a.  This tax for the right-of-way 
 21.32  acquisition loan fund shall be certified by the council, levied, 
 21.33  and collected in the manner provided by section 473.13.  The tax 
 21.34  shall be in addition to that authorized by section 473.249 and 
 21.35  any other law and shall not affect the amount or rate of taxes 
 21.36  which may be levied by the council or any metropolitan agency or 
 22.1   local governmental unit.  The amount of the levy shall be as 
 22.2   determined and certified by the council, except as otherwise 
 22.3   provided in this subdivision.  
 22.4      The property tax levied by the metropolitan council for the 
 22.5   right-of-way acquisition loan fund shall not exceed the 
 22.6   following amount for the years specified: 
 22.7      (a) for taxes payable in 1988, the product of 5/100 of one 
 22.8   mill multiplied by the total assessed valuation of all taxable 
 22.9   property located within the metropolitan area as adjusted by the 
 22.10  provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
 22.11  subdivision 7a; and 275.49; 
 22.12     (b) for taxes payable in 1989, except as provided in 
 22.13  section 473.249, subdivision 3, the product of (1) the 
 22.14  metropolitan council's property tax levy limitation for the 
 22.15  right-of-way acquisition loan fund for the taxes payable year 
 22.16  1988 determined under clause (a) multiplied by (2) an index for 
 22.17  market valuation changes equal to the assessment year 1988 total 
 22.18  market valuation of all taxable property located within the 
 22.19  metropolitan area divided by the assessment year 1987 total 
 22.20  market valuation of all taxable property located within the 
 22.21  metropolitan area; 
 22.22     (c) for taxes payable in 1990, an amount not to exceed 
 22.23  $2,700,000; and 
 22.24     (d) for taxes payable in 1991 and subsequent years, the 
 22.25  product of (1) the metropolitan council's property tax levy 
 22.26  limitation for the right-of-way acquisition loan fund for the 
 22.27  taxes payable in 1988 determined under clause (a) multiplied by 
 22.28  (2) an index for market valuation changes equal to the total 
 22.29  market valuation of all taxable property located within the 
 22.30  metropolitan area for the current taxes payable year divided by 
 22.31  the total market valuation of all taxable property located 
 22.32  within the metropolitan area for taxes payable in 1988. 
 22.33     For the purpose of determining the metropolitan council's 
 22.34  property tax levy limitation for the right-of-way acquisition 
 22.35  loan fund for the taxes payable year 1988 and subsequent years 
 22.36  under this subdivision, "total market valuation" means the total 
 23.1   market valuation of all taxable property within the metropolitan 
 23.2   area without valuation adjustments for fiscal disparities 
 23.3   (chapter 473F), tax increment financing (sections 469.174 to 
 23.4   469.179), empowerment zones (sections 469.311 to 469.314), and 
 23.5   high voltage transmission lines (section 273.425). 
 23.6      The property tax levied under this subdivision for taxes 
 23.7   payable in 1988 and subsequent years shall not be levied at a 
 23.8   rate higher than that determined by the metropolitan council to 
 23.9   be sufficient, considering the other anticipated revenues of and 
 23.10  disbursements from the right-of-way acquisition loan fund, to 
 23.11  produce a balance in the loan fund at the end of the next 
 23.12  calendar year equal to twice the amount of the property tax levy 
 23.13  limitation for taxes payable in the next calendar year 
 23.14  determined under this section. 
 23.15     Sec. 13.  Minnesota Statutes 1994, section 473.249, 
 23.16  subdivision 1, is amended to read: 
 23.17     Subdivision 1.  The metropolitan council may levy a tax on 
 23.18  all taxable property in the metropolitan area defined in section 
 23.19  473.121 to provide funds for the purposes of sections 473.121 to 
 23.20  473.249 and for the purpose of carrying out other 
 23.21  responsibilities of the council as provided by law.  This tax 
 23.22  for general purposes shall be levied and collected in the manner 
 23.23  provided by section 473.13. 
 23.24     The property tax levied by the metropolitan council for 
 23.25  general purposes shall not exceed the following amount for the 
 23.26  years specified: 
 23.27     (a) for taxes payable in 1988, the product of 8/30 of one 
 23.28  mill multiplied by the total assessed valuation of all taxable 
 23.29  property located within the metropolitan area as adjusted by the 
 23.30  provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
 23.31  subdivision 7a; and 275.49; 
 23.32     (b) for taxes payable in 1989, the product of (1) the 
 23.33  metropolitan council's property tax levy limitation for general 
 23.34  purposes for the taxes payable year 1988 determined under clause 
 23.35  (a) multiplied by (2) an index for market valuation changes 
 23.36  equal to the assessment year 1988 total market valuation of all 
 24.1   taxable property located within the metropolitan area divided by 
 24.2   the assessment year 1987 total market valuation of all taxable 
 24.3   property located within the metropolitan area; and 
 24.4      (c) for taxes payable in 1990 and subsequent years, the 
 24.5   product of (1) the metropolitan council's property tax levy 
 24.6   limitation for general purposes for the previous year determined 
 24.7   under this subdivision multiplied by (2) the lesser of 
 24.8      (i) an index for market valuation changes equal to the 
 24.9   total market valuation of all taxable property located within 
 24.10  the metropolitan area for the current taxes payable year divided 
 24.11  by the total market valuation of all taxable property located 
 24.12  within the metropolitan area for the previous taxes payable 
 24.13  year; 
 24.14     (ii) an index equal to the implicit price deflator for 
 24.15  state and local government purchases of goods and services for 
 24.16  the most recent month for which data are available divided by 
 24.17  the implicit price deflator for state and local government 
 24.18  purchases of goods and services for the same month of the 
 24.19  previous year; or 
 24.20     (iii) 103 percent. 
 24.21     For the purpose of determining the metropolitan council's 
 24.22  property tax levy limitation for general purposes for the taxes 
 24.23  payable year 1988 and subsequent years under this subdivision, 
 24.24  "total market valuation" means the total market valuation of all 
 24.25  taxable property within the metropolitan area without valuation 
 24.26  adjustments for fiscal disparities (chapter 473F), tax increment 
 24.27  financing (sections 469.174 to 469.179), empowerment zones 
 24.28  (sections 469.311 to 469.314), and high voltage transmission 
 24.29  lines (section 273.425). 
 24.30     Sec. 14.  Minnesota Statutes 1994, section 473.446, 
 24.31  subdivision 1, is amended to read: 
 24.32     Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
 24.33  For the purposes of sections 473.404 to 473.449 and the 
 24.34  metropolitan transit system, except as otherwise provided in 
 24.35  this subdivision, the council shall levy each year upon all 
 24.36  taxable property within the metropolitan transit taxing 
 25.1   district, defined in subdivision 2, a transit tax consisting of: 
 25.2      (a) an amount which shall be used for payment of the 
 25.3   expenses of operating transit and paratransit service and to 
 25.4   provide for payment of obligations issued by the council under 
 25.5   section 473.436, subdivision 6; 
 25.6      (b) an additional amount, if any, the council determines to 
 25.7   be necessary to provide for the full and timely payment of its 
 25.8   certificates of indebtedness and other obligations outstanding 
 25.9   on July 1, 1985, to which property taxes under this section have 
 25.10  been pledged; and 
 25.11     (c) an additional amount necessary to provide full and 
 25.12  timely payment of certificates of indebtedness, bonds, including 
 25.13  refunding bonds or other obligations issued or to be issued 
 25.14  under section 473.39 by the council for purposes of acquisition 
 25.15  and betterment of property and other improvements of a capital 
 25.16  nature and to which the council has specifically pledged tax 
 25.17  levies under this clause. 
 25.18     The property tax levied by the council for general purposes 
 25.19  under clause (a) must not exceed the following amount for the 
 25.20  years specified: 
 25.21     (1) for taxes payable in 1995, the council's property tax 
 25.22  levy limitation for general transit purposes is equal to the 
 25.23  former regional transit board's property tax levy limitation for 
 25.24  general transit purposes under this subdivision, for taxes 
 25.25  payable in 1994, multiplied by an index for market valuation 
 25.26  changes equal to the total market valuation of all taxable 
 25.27  property located within the metropolitan transit taxing district 
 25.28  for the current assessment year divided by the total market 
 25.29  valuation of all taxable property located within the 
 25.30  metropolitan transit taxing district for the previous assessment 
 25.31  year; and 
 25.32     (2) for taxes payable in 1996 and subsequent years, the 
 25.33  product of (i) the council's property tax levy limitation for 
 25.34  general transit purposes for the previous year determined under 
 25.35  this subdivision multiplied by (ii) an index for market 
 25.36  valuation changes equal to the total market valuation of all 
 26.1   taxable property located within the metropolitan transit taxing 
 26.2   district for the current taxes payable year divided by the total 
 26.3   market valuation of all taxable property located within the 
 26.4   metropolitan transit taxing district for the previous taxes 
 26.5   payable year.  For the taxes payable year 1995, the index for 
 26.6   market valuation changes shall be multiplied by an amount equal 
 26.7   to the sum of the regional transit board's property tax levy 
 26.8   limitation for the taxes payable year 1994 and $160,665.  The 
 26.9   $160,665 increase shall be a permanent adjustment to the levy 
 26.10  limit base used in determining the regional transit board's 
 26.11  property tax levy limitation for general purposes for subsequent 
 26.12  taxes payable years. 
 26.13     For the purpose of determining the council's property tax 
 26.14  levy limitation for general transit purposes under this 
 26.15  subdivision, "total market valuation" means the total market 
 26.16  valuation of all taxable property within the metropolitan 
 26.17  transit taxing district without valuation adjustments for fiscal 
 26.18  disparities (chapter 473F), tax increment financing (sections 
 26.19  469.174 to 469.179), empowerment zones (sections 469.311 to 
 26.20  469.314), and high voltage transmission lines (section 273.425). 
 26.21     The county auditor shall reduce the tax levied pursuant to 
 26.22  this subdivision on all property within statutory and home rule 
 26.23  charter cities and towns that receive full-peak service and 
 26.24  limited off-peak service by an amount equal to the tax levy that 
 26.25  would be produced by applying a rate of 0.510 percent of net tax 
 26.26  capacity on the property.  The county auditor shall reduce the 
 26.27  tax levied pursuant to this subdivision on all property within 
 26.28  statutory and home rule charter cities and towns that receive 
 26.29  limited peak service by an amount equal to the tax levy that 
 26.30  would be produced by applying a rate of 0.765 percent of net tax 
 26.31  capacity on the property.  The amounts so computed by the county 
 26.32  auditor shall be submitted to the commissioner of revenue as 
 26.33  part of the abstracts of tax lists required to be filed with the 
 26.34  commissioner under section 275.29.  Any prior year adjustments 
 26.35  shall also be certified in the abstracts of tax lists.  The 
 26.36  commissioner shall review the certifications to determine their 
 27.1   accuracy and may make changes in the certification as necessary 
 27.2   or return a certification to the county auditor for 
 27.3   corrections.  The commissioner shall pay to the council the 
 27.4   amounts certified by the county auditors on the dates provided 
 27.5   in section 273.1398.  There is annually appropriated from the 
 27.6   general fund in the state treasury to the department of revenue 
 27.7   the amounts necessary to make these payments.  
 27.8      For the purposes of this subdivision, "full-peak and 
 27.9   limited off-peak service" means peak period regular route 
 27.10  service, plus weekday midday regular route service at intervals 
 27.11  longer than 60 minutes on the route with the greatest frequency; 
 27.12  and "limited peak period service" means peak period regular 
 27.13  route service only.  
 27.14     Sec. 15.  Minnesota Statutes 1994, section 473.711, 
 27.15  subdivision 2, is amended to read: 
 27.16     Subd. 2.  [BUDGET; TAX LEVY.] The metropolitan mosquito 
 27.17  control commission shall prepare an annual budget.  The budget 
 27.18  may provide for expenditures in an amount not exceeding the 
 27.19  property tax levy limitation determined in this subdivision.  
 27.20  The commission may levy a tax on all taxable property in the 
 27.21  district as defined in section 473.702 to provide funds for the 
 27.22  purposes of sections 473.701 to 473.716.  The tax shall not 
 27.23  exceed the property tax levy limitation determined in this 
 27.24  subdivision.  A participating county may agree to levy an 
 27.25  additional tax to be used by the commission for the purposes of 
 27.26  sections 473.701 to 473.716 but the sum of the county's and 
 27.27  commission's taxes may not exceed the county's proportionate 
 27.28  share of the property tax levy limitation determined under this 
 27.29  subdivision based on the ratio of its total net tax capacity to 
 27.30  the total net tax capacity of the entire district as adjusted by 
 27.31  section 270.12, subdivision 3.  The auditor of each county in 
 27.32  the district shall add the amount of the levy made by the 
 27.33  district to other taxes of the county for collection by the 
 27.34  county treasurer with other taxes.  When collected, the county 
 27.35  treasurer shall make settlement of the tax with the district in 
 27.36  the same manner as other taxes are distributed to political 
 28.1   subdivisions.  No county shall levy any tax for mosquito, 
 28.2   disease vectoring tick, and black gnat (Simuliidae) control 
 28.3   except under sections 473.701 to 473.716.  The levy shall be in 
 28.4   addition to other taxes authorized by law. 
 28.5      The property tax levied by the metropolitan mosquito 
 28.6   control commission shall not exceed the product of (1) the 
 28.7   commission's property tax levy limitation for the previous year 
 28.8   determined under this subdivision multiplied by (2) an index for 
 28.9   market valuation changes equal to the total market valuation of 
 28.10  all taxable property located within the district for the current 
 28.11  assessment year divided by the total market valuation of all 
 28.12  taxable property located within the district for the previous 
 28.13  assessment year. 
 28.14     For the purpose of determining the commission's property 
 28.15  tax levy limitation under this subdivision, "total market 
 28.16  valuation" means the total market valuation of all taxable 
 28.17  property within the district without valuation adjustments for 
 28.18  fiscal disparities (chapter 473F), tax increment financing 
 28.19  (sections 469.174 to 469.179), empowerment zones (sections 
 28.20  469.311 to 469.314), and high voltage transmission lines 
 28.21  (section 273.425). 
 28.22     Sec. 16.  Minnesota Statutes 1994, section 473F.08, 
 28.23  subdivision 4, is amended to read: 
 28.24     Subd. 4.  [TAX RATE; NONCOMMERCIAL PROPERTY.] In 1972 and 
 28.25  subsequent years, the county auditor shall divide that portion 
 28.26  of the levy determined pursuant to subdivision 3, clause (b), by 
 28.27  the net tax capacity of the governmental unit, taking section 
 28.28  sections 469.177, subdivision 3, and 469.314, subdivision 3, 
 28.29  into account, less that portion subtracted from net tax capacity 
 28.30  pursuant to subdivision 2, clause (a).  The resulting tax rate 
 28.31  shall apply to all taxable property except commercial-industrial 
 28.32  property, which shall be taxed in accordance with subdivision 6. 
 28.33     Sec. 17.  Minnesota Statutes 1994, section 477A.011, 
 28.34  subdivision 20, is amended to read: 
 28.35     Subd. 20.  [CITY NET TAX CAPACITY.] "City net tax capacity" 
 28.36  means (1) the net tax capacity computed using the net tax 
 29.1   capacity rates in section 273.13, and the market values for 
 29.2   taxes payable in the year prior to the aid distribution plus (2) 
 29.3   a city's fiscal disparities distribution tax capacity under 
 29.4   section 473F.08, subdivision 2, paragraph (b), for taxes payable 
 29.5   in the year prior to that for which aids are being calculated.  
 29.6   The market value utilized in computing city net tax capacity 
 29.7   shall be reduced by the sum of (1) a city's market value of 
 29.8   commercial industrial property as defined in section 473F.02, 
 29.9   subdivision 3, multiplied by the ratio determined pursuant to 
 29.10  section 473F.08, subdivision 2, paragraph (a), (2) the market 
 29.11  value of the captured value of tax increment financing districts 
 29.12  as defined in section 469.177, subdivision 2, and the captured 
 29.13  net tax capacity of empowerment zones as defined in section 
 29.14  469.314, subdivision 2, and (3) the market value of transmission 
 29.15  lines deducted from a city's total net tax capacity under 
 29.16  section 273.425.  The city net tax capacity will be computed 
 29.17  using equalized market values. 
 29.18     Sec. 18. [EMPOWERMENT ZONES; ADMINISTRATIVE SIMPLIFICATION 
 29.19  OF WELFARE LAWS.] 
 29.20     (a) The commissioner of human services shall make 
 29.21  recommendations to effectuate the changes in federal laws and 
 29.22  regulations, state laws and rules, and the state plan to improve 
 29.23  the administrative efficiency of the aid to families with 
 29.24  dependent children, general assistance, work readiness, family 
 29.25  general assistance, medical assistance, general assistance 
 29.26  medical care, and food stamp programs.  At a minimum, the 
 29.27  following administrative standards and procedures must be 
 29.28  changed. 
 29.29     The commissioner shall: 
 29.30     (1) require income or eligibility reviews no more 
 29.31  frequently than annually for cases in which income is normally 
 29.32  invariant, as in aid to families with dependent children cases 
 29.33  where the only source of household income is Supplemental Social 
 29.34  Security Income or Retirement and Survivors Disability 
 29.35  Insurance; 
 29.36     (2) permit households to report income annually when the 
 30.1   source of income is excluded, such as a minor's earnings; 
 30.2      (3) require income or eligibility reviews no more 
 30.3   frequently than annually for extended medical assistance cases; 
 30.4      (4) require income or eligibility reviews no more 
 30.5   frequently than annually for a medical assistance postpartum 
 30.6   client, where the client previously had eligibility under a 
 30.7   different basis prior to pregnancy or if other household members 
 30.8   have eligibility with the same income/basis that applies to the 
 30.9   client; 
 30.10     (5) permit all income or eligibility reviews to use the 
 30.11  short application form for foster care medical assistance cases; 
 30.12     (6) make dependent care expenses declaratory for medical 
 30.13  assistance; and 
 30.14     (7) permit households to only report gifts worth $100 or 
 30.15  more per month. 
 30.16     (b) The county's administrative savings resulting from 
 30.17  these changes may be allocated to fund the empowerment zones 
 30.18  initiative or be used for any other lawful purpose. 
 30.19     (c) The recommendations must be provided in a report to the 
 30.20  chairs of the appropriate legislative committees by August 1, 
 30.21  1995.  The recommendations must include a list of the 
 30.22  administrative standards and procedures that require approval by 
 30.23  the federal government before implementation, and also which 
 30.24  administrative simplification standards and procedures may be 
 30.25  implemented by a county prior to receiving a federal waiver. 
 30.26     (d) The commissioner shall seek the necessary waivers from 
 30.27  the federal government as soon as possible to implement the 
 30.28  administrative simplification standards and procedures. 
 30.29     Sec. 19.  [EMPOWERMENT ZONES.] 
 30.30     The commissioner of human services, and certain county 
 30.31  agencies shall develop, by December 1, 1995, a plan to improve 
 30.32  the employment opportunities available to economic assistance 
 30.33  recipients.  The employment activities shall be focused on 
 30.34  improving public infrastructure, enhancing the local tax base, 
 30.35  improving the quality of available housing, reducing crime, 
 30.36  designing strategies for job skill enhancement, strengthening 
 31.1   communities, and maintaining and improving natural systems.  The 
 31.2   county is authorized to retain 75 percent of the increased 
 31.3   valuation of the property included in the empowerment zone for 
 31.4   five years.  This money must be placed into a pool and used for 
 31.5   funding of empowerment zones.  The plan shall include input and 
 31.6   support from city council, county board, park board, and school 
 31.7   board.  The plan shall coordinate existing funding streams and 
 31.8   target them to mutually agreed upon projects.  Organized labor 
 31.9   shall be consulted in the development of the plan and 
 31.10  implementation of any work activities.  Participating 
 31.11  jurisdictions shall report back to the legislature by August 1, 
 31.12  1995, with a plan for the projects to be located in pockets of 
 31.13  poverty, as identified by the city council, county board, park 
 31.14  board, and school board. 
 31.15     Sec. 20.  [EMPOWERMENT ZONE APPROPRIATION.] 
 31.16     $....... is appropriated for fiscal year ending June 30, 
 31.17  1996, from the general fund to the commissioner of human 
 31.18  services for the county agencies to develop and implement the 
 31.19  public works program.  Future state funding for these projects 
 31.20  shall be kept revenue neutral by accessing nontraditional 
 31.21  funding streams within the existing state budget.