SF 366

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; repealing proposed property tax 
  1.3             notices and hearings; amending Minnesota Statutes 
  1.4             2002, sections 126C.55, subdivision 6; 273.124, 
  1.5             subdivision 13; 275.07, subdivisions 1, 4, 5; 276.04, 
  1.6             subdivision 2; 354A.12, subdivision 3b; 373.45, 
  1.7             subdivision 8; 375.194, subdivisions 4, 5; 383A.75, 
  1.8             subdivision 3; 465.719, subdivision 9; 469.1791, 
  1.9             subdivision 10; 469.1815, subdivision 1; 473.13, 
  1.10            subdivision 1; repealing Minnesota Statutes 2002, 
  1.11            section 275.065. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2002, section 126C.55, 
  1.14  subdivision 6, is amended to read: 
  1.15     Subd. 6.  [TAX LEVY FOR REPAYMENT.] (a) With the approval 
  1.16  of the commissioner, a district may levy in the year the state 
  1.17  makes a payment under this section an amount up to the amount 
  1.18  necessary to provide funds for the repayment of the amount paid 
  1.19  by the state plus interest through the date of estimated 
  1.20  repayment by the district.  The proceeds of this levy may be 
  1.21  used only for this purpose unless they are in excess of the 
  1.22  amount actually due, in which case the excess shall be used to 
  1.23  repay other state payments made under this section or shall be 
  1.24  deposited in the debt redemption fund of the school district. 
  1.25  This levy shall be an increase in the levy limits of the 
  1.26  district for purposes of section 275.065, subdivision 6.  The 
  1.27  amount of aids to be reduced to repay the state shall be 
  1.28  decreased by the amount levied.  This levy by the district is 
  2.1   not eligible for debt service equalization under section 123B.53.
  2.2      (b) If the state is not repaid in full for a payment made 
  2.3   under this section by November 30 of the calendar year following 
  2.4   the year in which the state makes the payment, the commissioner 
  2.5   shall require the district to certify a property tax levy in an 
  2.6   amount up to the amount necessary to provide funds for repayment 
  2.7   of the amount paid by the state plus interest through the date 
  2.8   of estimated repayment by the school district.  To prevent undue 
  2.9   hardship, the commissioner may allow the district to certify the 
  2.10  levy over a five-year period.  The proceeds of the levy may be 
  2.11  used only for this purpose unless they are in excess of the 
  2.12  amount actually due, in which case the excess shall be used to 
  2.13  repay other state payments made under this section or shall be 
  2.14  deposited in the debt redemption fund of the district.  This 
  2.15  levy shall be an increase in the levy limits of the school 
  2.16  district for purposes of section 275.065, subdivision 6.  If the 
  2.17  commissioner orders the district to levy, the amount of aids 
  2.18  reduced to repay the state shall be decreased by the amount 
  2.19  levied.  This levy by the district is not eligible for debt 
  2.20  service equalization under section 123B.53 or any successor 
  2.21  provision.  A levy under this subdivision must be explained as a 
  2.22  specific increase at the meeting required under section 275.065, 
  2.23  subdivision 6.  
  2.24     [EFFECTIVE DATE.] This section is effective for taxes 
  2.25  levied in 2003, payable in 2004, and thereafter. 
  2.26     Sec. 2.  Minnesota Statutes 2002, section 273.124, 
  2.27  subdivision 13, is amended to read: 
  2.28     Subd. 13.  [HOMESTEAD APPLICATION.] (a) A person who meets 
  2.29  the homestead requirements under subdivision 1 must file a 
  2.30  homestead application with the county assessor to initially 
  2.31  obtain homestead classification. 
  2.32     (b) On or before January 2, 1993, each county assessor 
  2.33  shall mail a homestead application to the owner of each parcel 
  2.34  of property within the county which was classified as homestead 
  2.35  for the 1992 assessment year.  The format and contents of a 
  2.36  uniform homestead application shall be prescribed by the 
  3.1   commissioner of revenue.  The commissioner shall consult with 
  3.2   the chairs of the house and senate tax committees on the 
  3.3   contents of the homestead application form.  The application 
  3.4   must clearly inform the taxpayer that this application must be 
  3.5   signed by all owners who occupy the property or by the 
  3.6   qualifying relative and returned to the county assessor in order 
  3.7   for the property to continue receiving homestead treatment.  The 
  3.8   envelope containing the homestead application shall clearly 
  3.9   identify its contents and alert the taxpayer of its necessary 
  3.10  immediate response. 
  3.11     (c) Every property owner applying for homestead 
  3.12  classification must furnish to the county assessor the social 
  3.13  security number of each occupant who is listed as an owner of 
  3.14  the property on the deed of record, the name and address of each 
  3.15  owner who does not occupy the property, and the name and social 
  3.16  security number of each owner's spouse who occupies the 
  3.17  property.  The application must be signed by each owner who 
  3.18  occupies the property and by each owner's spouse who occupies 
  3.19  the property, or, in the case of property that qualifies as a 
  3.20  homestead under subdivision 1, paragraph (c), by the qualifying 
  3.21  relative. 
  3.22     If a property owner occupies a homestead, the property 
  3.23  owner's spouse may not claim another property as a homestead 
  3.24  unless the property owner and the property owner's spouse file 
  3.25  with the assessor an affidavit or other proof required by the 
  3.26  assessor stating that the property qualifies as a homestead 
  3.27  under subdivision 1, paragraph (e). 
  3.28     Owners or spouses occupying residences owned by their 
  3.29  spouses and previously occupied with the other spouse, either of 
  3.30  whom fail to include the other spouse's name and social security 
  3.31  number on the homestead application or provide the affidavits or 
  3.32  other proof requested, will be deemed to have elected to receive 
  3.33  only partial homestead treatment of their residence.  The 
  3.34  remainder of the residence will be classified as nonhomestead 
  3.35  residential.  When an owner or spouse's name and social security 
  3.36  number appear on homestead applications for two separate 
  4.1   residences and only one application is signed, the owner or 
  4.2   spouse will be deemed to have elected to homestead the residence 
  4.3   for which the application was signed. 
  4.4      The social security numbers or affidavits or other proofs 
  4.5   of the property owners and spouses are private data on 
  4.6   individuals as defined by section 13.02, subdivision 12, but, 
  4.7   notwithstanding that section, the private data may be disclosed 
  4.8   to the commissioner of revenue, or, for purposes of proceeding 
  4.9   under the Revenue Recapture Act to recover personal property 
  4.10  taxes owing, to the county treasurer. 
  4.11     (d) If residential real estate is occupied and used for 
  4.12  purposes of a homestead by a relative of the owner and qualifies 
  4.13  for a homestead under subdivision 1, paragraph (c), in order for 
  4.14  the property to receive homestead status, a homestead 
  4.15  application must be filed with the assessor.  The social 
  4.16  security number of each relative occupying the property and the 
  4.17  social security number of each owner who is related to an 
  4.18  occupant of the property shall be required on the homestead 
  4.19  application filed under this subdivision.  If a different 
  4.20  relative of the owner subsequently occupies the property, the 
  4.21  owner of the property must notify the assessor within 30 days of 
  4.22  the change in occupancy.  The social security number of a 
  4.23  relative occupying the property is private data on individuals 
  4.24  as defined by section 13.02, subdivision 12, but may be 
  4.25  disclosed to the commissioner of revenue.  
  4.26     (e) The homestead application shall also notify the 
  4.27  property owners that the application filed under this section 
  4.28  will not be mailed annually and that if the property is granted 
  4.29  homestead status for the 1993 assessment, or any assessment year 
  4.30  thereafter, that same property shall remain classified as 
  4.31  homestead until the property is sold or transferred to another 
  4.32  person, or the owners, the spouse of the owner, or the relatives 
  4.33  no longer use the property as their homestead.  Upon the sale or 
  4.34  transfer of the homestead property, a certificate of value must 
  4.35  be timely filed with the county auditor as provided under 
  4.36  section 272.115.  Failure to notify the assessor within 30 days 
  5.1   that the property has been sold, transferred, or that the owner, 
  5.2   the spouse of the owner, or the relative is no longer occupying 
  5.3   the property as a homestead, shall result in the penalty 
  5.4   provided under this subdivision and the property will lose its 
  5.5   current homestead status. 
  5.6      (f) If the homestead application is not returned within 30 
  5.7   days, the county will send a second application to the present 
  5.8   owners of record.  The notice of proposed property taxes 
  5.9   prepared under section 275.065, subdivision 3, shall reflect the 
  5.10  property's classification.  Beginning with assessment year 1993 
  5.11  for all properties, If a homestead application has not been 
  5.12  filed with the county by December 15, the assessor shall 
  5.13  classify the property as nonhomestead for the current assessment 
  5.14  year for taxes payable in the following year, provided that the 
  5.15  owner may be entitled to receive the homestead classification by 
  5.16  proper application under section 375.192. 
  5.17     (g) At the request of the commissioner, each county must 
  5.18  give the commissioner a list that includes the name and social 
  5.19  security number of each property owner and the property owner's 
  5.20  spouse occupying the property, or relative of a property owner, 
  5.21  applying for homestead classification under this subdivision.  
  5.22  The commissioner shall use the information provided on the lists 
  5.23  as appropriate under the law, including for the detection of 
  5.24  improper claims by owners, or relatives of owners, under chapter 
  5.25  290A.  
  5.26     (h) If the commissioner finds that a property owner may be 
  5.27  claiming a fraudulent homestead, the commissioner shall notify 
  5.28  the appropriate counties.  Within 90 days of the notification, 
  5.29  the county assessor shall investigate to determine if the 
  5.30  homestead classification was properly claimed.  If the property 
  5.31  owner does not qualify, the county assessor shall notify the 
  5.32  county auditor who will determine the amount of homestead 
  5.33  benefits that had been improperly allowed.  For the purpose of 
  5.34  this section, "homestead benefits" means the tax reduction 
  5.35  resulting from the classification as a homestead under section 
  5.36  273.13, the taconite homestead credit under section 273.135, the 
  6.1   residential homestead and agricultural homestead credits under 
  6.2   section 273.1384, and the supplemental homestead credit under 
  6.3   section 273.1391. 
  6.4      The county auditor shall send a notice to the person who 
  6.5   owned the affected property at the time the homestead 
  6.6   application related to the improper homestead was filed, 
  6.7   demanding reimbursement of the homestead benefits plus a penalty 
  6.8   equal to 100 percent of the homestead benefits.  The person 
  6.9   notified may appeal the county's determination by serving copies 
  6.10  of a petition for review with county officials as provided in 
  6.11  section 278.01 and filing proof of service as provided in 
  6.12  section 278.01 with the Minnesota tax court within 60 days of 
  6.13  the date of the notice from the county.  Procedurally, the 
  6.14  appeal is governed by the provisions in chapter 271 which apply 
  6.15  to the appeal of a property tax assessment or levy, but without 
  6.16  requiring any prepayment of the amount in controversy.  If the 
  6.17  amount of homestead benefits and penalty is not paid within 60 
  6.18  days, and if no appeal has been filed, the county auditor shall 
  6.19  certify the amount of taxes and penalty to the county 
  6.20  treasurer.  The county treasurer will add interest to the unpaid 
  6.21  homestead benefits and penalty amounts at the rate provided in 
  6.22  section 279.03 for real property taxes becoming delinquent in 
  6.23  the calendar year during which the amount remains unpaid.  
  6.24  Interest may be assessed for the period beginning 60 days after 
  6.25  demand for payment was made. 
  6.26     If the person notified is the current owner of the 
  6.27  property, the treasurer may add the total amount of homestead 
  6.28  benefits, penalty, interest, and costs to the ad valorem taxes 
  6.29  otherwise payable on the property by including the amounts on 
  6.30  the property tax statements under section 276.04, subdivision 
  6.31  3.  The amounts added under this paragraph to the ad valorem 
  6.32  taxes shall include interest accrued through December 31 of the 
  6.33  year preceding the taxes payable year for which the amounts are 
  6.34  first added.  These amounts, when added to the property tax 
  6.35  statement, become subject to all the laws for the enforcement of 
  6.36  real or personal property taxes for that year, and for any 
  7.1   subsequent year. 
  7.2      If the person notified is not the current owner of the 
  7.3   property, the treasurer may collect the amounts due under the 
  7.4   Revenue Recapture Act in chapter 270A, or use any of the powers 
  7.5   granted in sections 277.20 and 277.21 without exclusion, to 
  7.6   enforce payment of the homestead benefits, penalty, interest, 
  7.7   and costs, as if those amounts were delinquent tax obligations 
  7.8   of the person who owned the property at the time the application 
  7.9   related to the improperly allowed homestead was filed.  The 
  7.10  treasurer may relieve a prior owner of personal liability for 
  7.11  the homestead benefits, penalty, interest, and costs, and 
  7.12  instead extend those amounts on the tax lists against the 
  7.13  property as provided in this paragraph to the extent that the 
  7.14  current owner agrees in writing.  On all demands, billings, 
  7.15  property tax statements, and related correspondence, the county 
  7.16  must list and state separately the amounts of homestead 
  7.17  benefits, penalty, interest and costs being demanded, billed or 
  7.18  assessed. 
  7.19     (i) Any amount of homestead benefits recovered by the 
  7.20  county from the property owner shall be distributed to the 
  7.21  county, city or town, and school district where the property is 
  7.22  located in the same proportion that each taxing district's levy 
  7.23  was to the total of the three taxing districts' levy for the 
  7.24  current year.  Any amount recovered attributable to taconite 
  7.25  homestead credit shall be transmitted to the St. Louis county 
  7.26  auditor to be deposited in the taconite property tax relief 
  7.27  account.  Any amount recovered that is attributable to 
  7.28  supplemental homestead credit is to be transmitted to the 
  7.29  commissioner of revenue for deposit in the general fund of the 
  7.30  state treasury.  The total amount of penalty collected must be 
  7.31  deposited in the county general fund. 
  7.32     (j) If a property owner has applied for more than one 
  7.33  homestead and the county assessors cannot determine which 
  7.34  property should be classified as homestead, the county assessors 
  7.35  will refer the information to the commissioner.  The 
  7.36  commissioner shall make the determination and notify the 
  8.1   counties within 60 days. 
  8.2      (k) In addition to lists of homestead properties, the 
  8.3   commissioner may ask the counties to furnish lists of all 
  8.4   properties and the record owners.  The social security numbers 
  8.5   and federal identification numbers that are maintained by a 
  8.6   county or city assessor for property tax administration 
  8.7   purposes, and that may appear on the lists retain their 
  8.8   classification as private or nonpublic data; but may be viewed, 
  8.9   accessed, and used by the county auditor or treasurer of the 
  8.10  same county for the limited purpose of assisting the 
  8.11  commissioner in the preparation of microdata samples under 
  8.12  section 270.0681. 
  8.13     [EFFECTIVE DATE.] This section is effective for taxes 
  8.14  levied in 2003, payable in 2004, and thereafter. 
  8.15     Sec. 3.  Minnesota Statutes 2002, section 275.07, 
  8.16  subdivision 1, is amended to read: 
  8.17     Subdivision 1.  [CERTIFICATION OF LEVY.] (a) Except as 
  8.18  provided under paragraph (b), the taxes voted by cities, 
  8.19  counties, school districts, and special districts shall be 
  8.20  certified by the proper authorities to the county auditor on or 
  8.21  before five working days after December 20 in each year.  A town 
  8.22  must certify the levy adopted by the town board to the county 
  8.23  auditor by September 15 each year.  If the town board modifies 
  8.24  the levy at a special town meeting after September 15, the town 
  8.25  board must recertify its levy to the county auditor on or before 
  8.26  five working days after December 20.  The taxes certified shall 
  8.27  not be reduced by the county auditor by the aid received under 
  8.28  section 273.1398, subdivision 2, but shall be reduced by the 
  8.29  county auditor by the aid received under section 273.1398, 
  8.30  subdivision 3.  If a city, town, county, school district, or 
  8.31  special district fails to certify its levy by that date, its 
  8.32  levy shall be the amount levied by it for the preceding year. 
  8.33     (b)(i) The taxes voted by counties under sections 103B.241, 
  8.34  103B.245, and 103B.251 shall be separately certified by the 
  8.35  county to the county auditor on or before five working days 
  8.36  after December 20 in each year.  The taxes certified shall not 
  9.1   be reduced by the county auditor by the aid received under 
  9.2   section 273.1398, subdivisions 2 and 3.  If a county fails to 
  9.3   certify its levy by that date, its levy shall be the amount 
  9.4   levied by it for the preceding year.  
  9.5      (ii) For purposes of the proposed property tax notice under 
  9.6   section 275.065 and the property tax statement under section 
  9.7   276.04, for the first year in which the county implements the 
  9.8   provisions of this paragraph, the county auditor shall reduce 
  9.9   the county's levy for the preceding year to reflect any amount 
  9.10  levied for water management purposes under clause (i) included 
  9.11  in the county's levy. 
  9.12     [EFFECTIVE DATE.] This section is effective for taxes 
  9.13  levied in 2003, payable in 2004, and thereafter. 
  9.14     Sec. 4.  Minnesota Statutes 2002, section 275.07, 
  9.15  subdivision 4, is amended to read: 
  9.16     Subd. 4.  [REPORT TO COMMISSIONER.] (a) On or before 
  9.17  October 8 of each year, the county auditor shall report to the 
  9.18  commissioner of revenue the proposed levy certified by local 
  9.19  units of government under section 275.065, subdivision 1.  If 
  9.20  any taxing authorities have notified the county auditor that 
  9.21  they are in the process of negotiating an agreement for sharing, 
  9.22  merging, or consolidating services but that when the proposed 
  9.23  levy was certified under section 275.065, subdivision 1c, the 
  9.24  agreement was not yet finalized, the county auditor shall supply 
  9.25  that information to the commissioner when filing the report 
  9.26  under this section and shall recertify the affected levies as 
  9.27  soon as practical after October 10. 
  9.28     (b) On or before January 15 of each year, the county 
  9.29  auditor shall report to the commissioner of revenue the final 
  9.30  levy certified by local units of government under subdivision 1. 
  9.31     (c) (b) The levies must be reported in the manner 
  9.32  prescribed by the commissioner.  The reports must show a total 
  9.33  levy and the amount of each special levy. 
  9.34     [EFFECTIVE DATE.] This section is effective for taxes 
  9.35  levied in 2003, payable in 2004, and thereafter. 
  9.36     Sec. 5.  Minnesota Statutes 2002, section 275.07, 
 10.1   subdivision 5, is amended to read: 
 10.2      Subd. 5.  [REVISED FINAL LEVY.] (a) If the final levy of a 
 10.3   taxing jurisdiction certified to the county auditor is incorrect 
 10.4   due to an error in the deduction of the aid received under 
 10.5   section 273.1398, subdivision 2, in determining the certified 
 10.6   levy as required under subdivision 1, the taxing jurisdiction 
 10.7   may apply to the commissioner of revenue to increase the levy 
 10.8   and recertify it in the correct amount.  The commissioner must 
 10.9   receive the request by January 2. 
 10.10     (b) If the commissioner determines that the requirements of 
 10.11  paragraph (a) have been met, the commissioner shall notify the 
 10.12  taxing jurisdiction that the revised final levy has been 
 10.13  approved.  Upon receipt of the approval, but no later than 
 10.14  January 15, the governing body of the taxing jurisdiction shall 
 10.15  adopt the revised final levy and the taxing jurisdiction shall 
 10.16  recertify the revised final levy to the county auditor.  The 
 10.17  county auditor shall use the revised final levy to compute the 
 10.18  tax rate for the taxing jurisdiction. 
 10.19     (c) The county auditor shall report to the commissioner of 
 10.20  revenue the revised final levy used to determine the tax rates 
 10.21  for the taxing jurisdiction.  The provisions of section 275.065, 
 10.22  subdivisions 6, 6a, and 7 do not apply to the revised final levy 
 10.23  for the taxing jurisdiction certified under this section. 
 10.24     (d) The taxing jurisdiction must publish in an official 
 10.25  newspaper of general circulation in the taxing jurisdiction a 
 10.26  notice of its revised final levy.  The notice shall contain 
 10.27  examples of the tax impact of the revised final levy on 
 10.28  homestead, apartment, and commercial classes of property in the 
 10.29  taxing jurisdiction.  The county auditor shall assist the taxing 
 10.30  jurisdiction in preparing the examples for the publication. 
 10.31     [EFFECTIVE DATE.] This section is effective for taxes 
 10.32  levied in 2003, payable in 2004, and thereafter. 
 10.33     Sec. 6.  Minnesota Statutes 2002, section 276.04, 
 10.34  subdivision 2, is amended to read: 
 10.35     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 10.36  shall provide for the printing of the tax statements.  The 
 11.1   commissioner of revenue shall prescribe the form of the property 
 11.2   tax statement and its contents.  The statement must contain a 
 11.3   tabulated statement of the dollar amount due to each taxing 
 11.4   authority and the amount of the state tax from the parcel of 
 11.5   real property for which a particular tax statement is prepared.  
 11.6   The dollar amounts attributable to the county, the state tax, 
 11.7   the voter approved school tax, the other local school tax, the 
 11.8   township or municipality, and the total of the metropolitan 
 11.9   special taxing districts as defined in section 275.065, 
 11.10  subdivision 3, paragraph (i), (e) must be separately stated.  
 11.11  The amounts due all other special taxing districts, if any, may 
 11.12  be aggregated.  If the county levy under this paragraph includes 
 11.13  an amount for a lake improvement district as defined under 
 11.14  sections 103B.501 to 103B.581, the amount attributable for that 
 11.15  purpose must be separately stated from the remaining county levy 
 11.16  amount.  The amount of the tax on homesteads qualifying under 
 11.17  the senior citizens' property tax deferral program under chapter 
 11.18  290B is the total amount of property tax before subtraction of 
 11.19  the deferred property tax amount.  The amount of the tax on 
 11.20  contamination value imposed under sections 270.91 to 270.98, if 
 11.21  any, must also be separately stated.  The dollar amounts, 
 11.22  including the dollar amount of any special assessments, may be 
 11.23  rounded to the nearest even whole dollar.  For purposes of this 
 11.24  section whole odd-numbered dollars may be adjusted to the next 
 11.25  higher even-numbered dollar.  The amount of market value 
 11.26  excluded under section 273.11, subdivision 16, if any, must also 
 11.27  be listed on the tax statement. 
 11.28     (b) The property tax statements for manufactured homes and 
 11.29  sectional structures taxed as personal property shall contain 
 11.30  the same information that is required on the tax statements for 
 11.31  real property.  
 11.32     (c) Real and personal property tax statements must contain 
 11.33  the following information in the order given in this paragraph.  
 11.34  The information must contain the current year tax information in 
 11.35  the right column with the corresponding information for the 
 11.36  previous year in a column on the left: 
 12.1      (1) the property's estimated market value under section 
 12.2   273.11, subdivision 1; 
 12.3      (2) the property's taxable market value after reductions 
 12.4   under section 273.11, subdivisions 1a and 16; 
 12.5      (3) the property's gross tax, calculated by adding the 
 12.6   property's total property tax to the sum of the aids enumerated 
 12.7   in clause (4); 
 12.8      (4) a total of the following aids: 
 12.9      (i) education aids payable under chapters 122A, 123A, 123B, 
 12.10  124D, 125A, 126C, and 127A; 
 12.11     (ii) local government aids for cities, towns, and counties 
 12.12  under chapter 477A; 
 12.13     (iii) disparity reduction aid under section 273.1398; and 
 12.14     (iv) homestead and agricultural credit aid under section 
 12.15  273.1398; 
 12.16     (5) for homestead residential and agricultural properties, 
 12.17  the credits under section 273.1384; 
 12.18     (6) any credits received under sections 273.119; 273.123; 
 12.19  273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 12.20  473H.10, except that the amount of credit received under section 
 12.21  273.135 must be separately stated and identified as "taconite 
 12.22  tax relief"; and 
 12.23     (7) the net tax payable in the manner required in paragraph 
 12.24  (a). 
 12.25     (d) If the county uses envelopes for mailing property tax 
 12.26  statements and if the county agrees, a taxing district may 
 12.27  include a notice with the property tax statement notifying 
 12.28  taxpayers when the taxing district will begin its budget 
 12.29  deliberations for the current year, and encouraging taxpayers to 
 12.30  attend the hearings.  If the county allows notices to be 
 12.31  included in the envelope containing the property tax statement, 
 12.32  and if more than one taxing district relative to a given 
 12.33  property decides to include a notice with the tax statement, the 
 12.34  county treasurer or auditor must coordinate the process and may 
 12.35  combine the information on a single announcement.  
 12.36     The commissioner of revenue shall certify to the county 
 13.1   auditor the actual or estimated aids enumerated in clause (4) 
 13.2   that local governments will receive in the following year.  The 
 13.3   commissioner must certify this amount by January 1 of each year. 
 13.4      (e) For purposes of this subdivision, "metropolitan special 
 13.5   taxing districts" means the following taxing districts in the 
 13.6   seven-county metropolitan area that levy a property tax for any 
 13.7   of the specified purposes listed below: 
 13.8      (1) metropolitan council under section 473.132, 473.167, 
 13.9   473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 13.10     (2) metropolitan airports commission under section 473.667, 
 13.11  473.671, or 473.672; and 
 13.12     (3) metropolitan mosquito control commission under section 
 13.13  473.711. 
 13.14     Any levies made by the regional rail authorities in the 
 13.15  county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or 
 13.16  Washington under chapter 398A must be included with the 
 13.17  appropriate county's levy. 
 13.18     [EFFECTIVE DATE.] This section is effective for taxes 
 13.19  levied in 2003, payable in 2004, and thereafter. 
 13.20     Sec. 7.  Minnesota Statutes 2002, section 354A.12, 
 13.21  subdivision 3b, is amended to read: 
 13.22     Subd. 3b.  [SPECIAL DIRECT STATE MATCHING AID TO THE 
 13.23  MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Special 
 13.24  school district No. 1 may make an additional employer 
 13.25  contribution to the Minneapolis teachers retirement fund 
 13.26  association.  The city of Minneapolis may make a contribution to 
 13.27  the Minneapolis teachers retirement fund association.  This 
 13.28  contribution may be made by a levy of the board of estimate and 
 13.29  taxation of the city of Minneapolis and the levy, if made, is 
 13.30  classified as that of a special taxing district for purposes of 
 13.31  sections 275.065 and section 276.04, and for all other property 
 13.32  tax purposes. 
 13.33     (b) For every $1,000 contributed in equal proportion by 
 13.34  special school district No. 1 and by the city of Minneapolis to 
 13.35  the Minneapolis teachers retirement fund association under 
 13.36  paragraph (a), the state shall pay to the Minneapolis teachers 
 14.1   retirement fund association $1,000, but not to exceed $2,500,000 
 14.2   in total in fiscal year 1994.  The superintendent of special 
 14.3   school district No. 1, the mayor of the city of Minneapolis, and 
 14.4   the executive director of the Minneapolis teachers retirement 
 14.5   fund association shall jointly certify to the commissioner of 
 14.6   finance the total amount that has been contributed by special 
 14.7   school district No. 1 and by the city of Minneapolis to the 
 14.8   Minneapolis teachers retirement fund association.  Any 
 14.9   certification to the commissioner of children, families, and 
 14.10  learning must be made quarterly.  If the total certifications 
 14.11  for a fiscal year exceed the maximum annual direct state 
 14.12  matching aid amount in any quarter, the amount of direct state 
 14.13  matching aid payable to the Minneapolis teachers retirement fund 
 14.14  association must be limited to the balance of the maximum annual 
 14.15  direct state matching aid amount available.  The amount required 
 14.16  under this paragraph, subject to the maximum direct state 
 14.17  matching aid amount, is appropriated annually to the 
 14.18  commissioner of finance. 
 14.19     (c) The commissioner of finance may prescribe the form of 
 14.20  the certifications required under paragraph (b). 
 14.21     [EFFECTIVE DATE.] This section is effective for taxes 
 14.22  levied in 2003, payable in 2004, and thereafter. 
 14.23     Sec. 8.  Minnesota Statutes 2002, section 373.45, 
 14.24  subdivision 8, is amended to read: 
 14.25     Subd. 8.  [TAX LEVY FOR REPAYMENT.] (a) With the approval 
 14.26  of the authority, a county may levy in the year the state makes 
 14.27  a payment under this section an amount up to the amount 
 14.28  necessary to provide funds for the repayment of the amount paid 
 14.29  by the state plus interest through the date of estimated 
 14.30  repayment by the county.  The proceeds of this levy may be used 
 14.31  only for this purpose unless they exceed the amount actually 
 14.32  due.  Any excess must be used to repay other state payments made 
 14.33  under this section or must be deposited in the debt redemption 
 14.34  fund of the county.  The amount of aids to be reduced to repay 
 14.35  the state are decreased by the amount levied. 
 14.36     (b) If the state is not repaid in full for a payment made 
 15.1   under this section by November 30 of the calendar year following 
 15.2   the year in which the state makes the payment, the authority 
 15.3   shall require the county to certify a property tax levy in an 
 15.4   amount up to the amount necessary to provide funds for repayment 
 15.5   of the amount paid by the state plus interest through the date 
 15.6   of estimated repayment by the county.  To prevent undue 
 15.7   hardship, the authority may allow the county to certify the levy 
 15.8   over a five-year period.  The proceeds of the levy may be used 
 15.9   only for this purpose unless they are in excess of the amount 
 15.10  actually due, in which case the excess must be used to repay 
 15.11  other state payments made under this section or must be 
 15.12  deposited in the debt redemption fund of the county.  If the 
 15.13  authority orders the county to levy, the amount of aids reduced 
 15.14  to repay the state are decreased by the amount levied.  
 15.15     (c) A levy under this subdivision is an increase in the 
 15.16  levy limits of the county for purposes of section 275.065, 
 15.17  subdivision 6, and must be explained as a specific increase at 
 15.18  the meeting required under that provision.  
 15.19     [EFFECTIVE DATE.] This section is effective for taxes 
 15.20  levied in 2003, payable in 2004, and thereafter. 
 15.21     Sec. 9.  Minnesota Statutes 2002, section 375.194, 
 15.22  subdivision 4, is amended to read: 
 15.23     Subd. 4.  [PROPOSED AND FINAL PROPERTY TAX STATEMENTS.] For 
 15.24  purposes of determining the eligible property's taxes on the 
 15.25  proposed property tax statement under section 275.065, the 
 15.26  amount shown will be the amount before the deduction of the tax 
 15.27  abatement under subdivision 3.  The property taxes shown on the 
 15.28  final property tax statement shall reflect both the taxes before 
 15.29  and after the tax abatement granted under this section. 
 15.30     [EFFECTIVE DATE.] This section is effective for taxes 
 15.31  levied in 2003, payable in 2004, and thereafter. 
 15.32     Sec. 10.  Minnesota Statutes 2002, section 375.194, 
 15.33  subdivision 5, is amended to read: 
 15.34     Subd. 5.  [DETERMINATION OF COUNTY TAX RATE.] The eligible 
 15.35  county's proposed and final tax rates shall be determined by 
 15.36  dividing the certified levy by the total taxable net tax 
 16.1   capacity, without regard to any abatements granted under this 
 16.2   section.  The county board shall make available the estimated 
 16.3   amount of the abatement at the public hearing under section 
 16.4   275.065, subdivision 6. 
 16.5      [EFFECTIVE DATE.] This section is effective for taxes 
 16.6   levied in 2003, payable in 2004, and thereafter. 
 16.7      Sec. 11.  Minnesota Statutes 2002, section 383A.75, 
 16.8   subdivision 3, is amended to read: 
 16.9      Subd. 3.  [DUTIES.] The committee is authorized to and 
 16.10  shall meet from time to time to make appropriate recommendations 
 16.11  for the efficient and effective use of property tax dollars 
 16.12  raised by the jurisdictions for programs, buildings, and 
 16.13  operations.  In addition, the committee shall: 
 16.14     (1) identify trends and factors likely to be driving budget 
 16.15  outcomes over the next five years with recommendations for how 
 16.16  the jurisdictions should manage those trends and factors to 
 16.17  increase efficiency and effectiveness; 
 16.18     (2) agree, by October 1 of each year, on the appropriate 
 16.19  level of overall property tax levy for the three jurisdictions 
 16.20  and publicly report such to the governing bodies of each 
 16.21  jurisdiction for ratification or modification by resolution; and 
 16.22     (3) plan for the joint truth-in-taxation hearings under 
 16.23  section 275.065, subdivision 8; and 
 16.24     (4) identify, by December 31 of each year, areas of the 
 16.25  budget to be targeted in the coming year for joint review to 
 16.26  improve services or achieve efficiencies. 
 16.27     In carrying out its duties, the committee shall consult 
 16.28  with public employees of each jurisdiction and with other 
 16.29  stakeholders of the city, county, and school district, as 
 16.30  appropriate. 
 16.31     [EFFECTIVE DATE.] This section is effective for taxes 
 16.32  levied in 2003, payable in 2004, and thereafter. 
 16.33     Sec. 12.  Minnesota Statutes 2002, section 465.719, 
 16.34  subdivision 9, is amended to read: 
 16.35     Subd. 9.  [APPLICATION OF OTHER LAWS.] A corporation 
 16.36  created by a political subdivision under this section must 
 17.1   comply with every law that applies to the political subdivision, 
 17.2   as if the corporation is a part of the political subdivision, 
 17.3   unless the resolution ratifying creation of the corporation 
 17.4   specifically exempts the corporation from part or all of a law.  
 17.5   If the resolution exempts the corporation from part or all of a 
 17.6   law, the resolution must make a detailed and specific finding as 
 17.7   to why the corporation cannot fulfill its purpose if the 
 17.8   corporation is subject to that law.  A corporation may not be 
 17.9   exempted from chapter 13D, the Minnesota Open Meeting Law, 
 17.10  sections 138.163 to 138.25, governing records management, or 
 17.11  chapter 13, the Minnesota Government Data Practices Act.  Any 
 17.12  affected or interested person may bring an action in district 
 17.13  court to void the resolution on the grounds that the findings 
 17.14  are not sufficiently detailed and specific, or that the 
 17.15  corporation can fulfill its purpose if it is subject to the law 
 17.16  from which the resolution exempts the corporation.  Laws that 
 17.17  apply to a political subdivision that also apply to a 
 17.18  corporation created by a political subdivision under this 
 17.19  subdivision include, but are not limited to: 
 17.20     (1) chapter 13D, the Minnesota Open Meeting Law; 
 17.21     (2) chapter 13, the Minnesota Government Data Practices 
 17.22  Act; 
 17.23     (3) section 471.345, the Uniform Municipal Contracting Law; 
 17.24     (4) sections 43A.17, limiting the compensation of employees 
 17.25  based on the governor's salary; 471.991 to 471.999, providing 
 17.26  for equitable pay; and 465.72 and 465.722, governing severance 
 17.27  pay; 
 17.28     (5) section 275.065, providing for truth-in-taxation 
 17.29  hearings.  If any tax revenues of the political subdivision will 
 17.30  be appropriated to the corporation, the corporation's annual 
 17.31  operating and capital budgets must be included in the 
 17.32  truth-in-taxation hearing of the political subdivision that 
 17.33  created the corporation; 
 17.34     (6) if the corporation issues debt, its debt is included in 
 17.35  the political subdivision's debt limit if it would be included 
 17.36  if issued by the political subdivision, and issuance of the debt 
 18.1   is subject to the election and other requirements of chapter 475 
 18.2   and section 471.69; 
 18.3      (7) (6) section 471.895, prohibiting acceptance of gifts 
 18.4   from interested parties, and sections 471.87 to 471.89, relating 
 18.5   to interests in contracts; 
 18.6      (8) (7) chapter 466, relating to municipal tort liability; 
 18.7      (9) (8) chapter 118A, requiring deposit insurance or bond 
 18.8   or pledged collateral for deposits; 
 18.9      (10) (9) chapter 118A, restricting investments; 
 18.10     (11) (10) section 471.346, requiring ownership of vehicles 
 18.11  to be identified; 
 18.12     (12) (11) sections 471.38 to 471.41, requiring claims to be 
 18.13  in writing, itemized, and approved by the governing board before 
 18.14  payment can be made; and 
 18.15     (13) (12) the corporation cannot make advances of pay, make 
 18.16  or guarantee loans to employees, or provide in-kind benefits 
 18.17  unless authorized by law. 
 18.18     [EFFECTIVE DATE.] This section is effective for taxes 
 18.19  levied in 2003, payable in 2004, and thereafter. 
 18.20     Sec. 13.  Minnesota Statutes 2002, section 469.1791, 
 18.21  subdivision 10, is amended to read: 
 18.22     Subd. 10.  [LIMITS UNDER OTHER LAW.] The tax imposed under 
 18.23  this section is not included in the calculation of levies or 
 18.24  limits imposed under law or charter.  Section 275.065 does not 
 18.25  apply to any tax imposed under this section.  The tax proceeds 
 18.26  are subject to the restrictions imposed by law on revenues 
 18.27  derived from tax increments and may only be spent for the 
 18.28  purposes for which increments may be spent. 
 18.29     [EFFECTIVE DATE.] This section is effective for taxes 
 18.30  levied in 2003, levied in 2004, and thereafter. 
 18.31     Sec. 14.  Minnesota Statutes 2002, section 469.1815, 
 18.32  subdivision 1, is amended to read: 
 18.33     Subdivision 1.  [INCLUSION IN PROPOSED AND FINAL LEVIES 
 18.34  LEVY.] The political subdivision must add to its levy amount for 
 18.35  the current year under sections 275.065 and section 275.07 the 
 18.36  total estimated amount of all current year abatements granted.  
 19.1   The tax amounts amount shown on the proposed notice under 
 19.2   section 275.065, subdivision 3, and on the property tax 
 19.3   statement under section 276.04, subdivision 2, are is the total 
 19.4   amounts amount before the reduction of any abatements that will 
 19.5   be granted on the property. 
 19.6      [EFFECTIVE DATE.] This section is effective for taxes 
 19.7   levied in 2003, payable in 2004, and thereafter. 
 19.8      Sec. 15.  Minnesota Statutes 2002, section 473.13, 
 19.9   subdivision 1, is amended to read: 
 19.10     Subdivision 1.  [BUDGET.] (a) On or before December 20 of 
 19.11  each year the council, after the public hearing required in 
 19.12  section 275.065, shall adopt a final budget covering its 
 19.13  anticipated receipts and disbursements for the ensuing year and 
 19.14  shall decide upon the total amount necessary to be raised from 
 19.15  ad valorem tax levies to meet its budget.  The budget shall 
 19.16  state in detail the expenditures for each program to be 
 19.17  undertaken, including the expenses for salaries, consultant 
 19.18  services, overhead, travel, printing, and other items.  The 
 19.19  budget shall state in detail the capital expenditures of the 
 19.20  council for the budget year, based on a five-year capital 
 19.21  program adopted by the council and transmitted to the 
 19.22  legislature.  After adoption of the budget and no later than 
 19.23  five working days after December 20, the council shall certify 
 19.24  to the auditor of each metropolitan county the share of the tax 
 19.25  to be levied within that county, which must be an amount bearing 
 19.26  the same proportion to the total levy agreed on by the council 
 19.27  as the net tax capacity of the county bears to the net tax 
 19.28  capacity of the metropolitan area.  The maximum amount of any 
 19.29  levy made for the purpose of this chapter may not exceed the 
 19.30  limits set by the statute authorizing the levy. 
 19.31     (b) Each even-numbered year the council shall prepare for 
 19.32  its transit programs a financial plan for the succeeding three 
 19.33  calendar years, in half-year segments.  The financial plan must 
 19.34  contain the elements specified in section 473.1623, subdivision 
 19.35  3.  The financial plan must contain schedules of user charges 
 19.36  and any changes in user charges planned or anticipated by the 
 20.1   council during the period of the plan.  The financial plan must 
 20.2   contain a proposed request for state financial assistance for 
 20.3   the succeeding biennium. 
 20.4      (c) In addition, the budget must show for each year: 
 20.5      (1) the estimated operating revenues from all sources 
 20.6   including funds on hand at the beginning of the year, and 
 20.7   estimated expenditures for costs of operation, administration, 
 20.8   maintenance, and debt service; 
 20.9      (2) capital improvement funds estimated to be on hand at 
 20.10  the beginning of the year and estimated to be received during 
 20.11  the year from all sources and estimated cost of capital 
 20.12  improvements to be paid out or expended during the year, all in 
 20.13  such detail and form as the council may prescribe; and 
 20.14     (3) the estimated source and use of pass-through funds. 
 20.15     [EFFECTIVE DATE.] This section is effective for taxes 
 20.16  levied in 2003, payable in 2004, and thereafter. 
 20.17     Sec. 16.  [REPEALER.] 
 20.18     Minnesota Statutes 2002, section 275.065, is repealed. 
 20.19     [EFFECTIVE DATE.] This section is effective for taxes 
 20.20  levied in 2003, payable in 2004, and thereafter.