as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to property taxation; exempting homestead, 1.3 agricultural, and seasonal recreational property from 1.4 the general education tax; reducing property tax class 1.5 rates; establishing a new homestead credit program; 1.6 modifying the computation of certain school district 1.7 levies; appropriating money; amending Minnesota 1.8 Statutes 2000, sections 126C.13, subdivisions 1 and 2; 1.9 126C.14; 126C.17, subdivision 6, and by adding a 1.10 subdivision; 273.13, subdivisions 22, 23, 24, 25, and 1.11 31; 273.1393; 275.065, subdivision 3; 275.08, 1.12 subdivision 1b; and 276.04, subdivision 2; proposing 1.13 coding for new law in Minnesota Statutes, chapters 1.14 127A; and 273; repealing Minnesota Statutes 2000, 1.15 sections 273.13, subdivision 24a; 273.1382; and 1.16 275.08, subdivision 1e. 1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.18 Section 1. Minnesota Statutes 2000, section 126C.13, 1.19 subdivision 1, is amended to read: 1.20 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 1.21 commissioner must establish the general education tax rate by 1.22 July 1 of each year for levies payable in the following year. 1.23 The general education tax capacity rate must be a rate, rounded 1.24 up to the nearest hundredth of a percent, that, when applied to 1.25 the adjustednet tax capacitygeneral education tax base for all 1.26 districts, raises the amount specified in this subdivision. The 1.27 general education tax rate must be the rate that raises 1.28$1,330,000,000$580,000,000 for fiscal year20012003, and later 1.29 fiscal years. The general education tax rate may not be changed 1.30 due to changes or corrections made to a district's adjustednet1.31tax capacitygeneral education tax base after the tax rate has 2.1 been established. 2.2 [EFFECTIVE DATE.] This section is effective for taxes 2.3 payable in 2002 and subsequent years. 2.4 Sec. 2. Minnesota Statutes 2000, section 126C.13, 2.5 subdivision 2, is amended to read: 2.6 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 2.7 education revenue, excluding transition revenue and supplemental 2.8 revenue, a district may levy an amount not to exceed the general 2.9 education tax rate times the adjustednet tax capacitygeneral 2.10 education tax base of the district for the preceding year. If 2.11 the amount of the general education levy would exceed the 2.12 general education revenue, excluding transition revenue and 2.13 supplemental revenue, the general education levy must be 2.14 determined according to subdivision 3. The general education 2.15 levy shall be levied only upon properties defined under section 2.16 127A.485. 2.17 [EFFECTIVE DATE.] This section is effective for taxes 2.18 payable in 2002 and subsequent years. 2.19 Sec. 3. Minnesota Statutes 2000, section 126C.14, is 2.20 amended to read: 2.21 126C.14 [GENERAL EDUCATION LEVY EQUITY.] 2.22 If a district's general education levy is determined 2.23 according to section 126C.13, subdivision 3, an amount must be 2.24 deducted from state aid authorized in this chapter and chapters 2.25 120B, 122A, 123A, 123B, 124D, 125A, and 127A, receivable for the 2.26 same school year, and from other state payments receivable for 2.27 the same school year authorized in chapter 273. The aid in 2.28 section 124D.111 must not be reduced. 2.29 The amount of the deduction equals the difference between: 2.30 (1) the general education tax rate, according to section 2.31 126C.13, times the district's adjustednet tax capacitygeneral 2.32 education tax base used to determine the general education aid 2.33 for the same school year; and 2.34 (2) the district's general education revenue, excluding 2.35 transition revenue and supplemental revenue, for the same school 2.36 year, according to section 126C.10. 3.1 [EFFECTIVE DATE.] This section is effective for taxes 3.2 payable in 2002 and subsequent years. 3.3 Sec. 4. Minnesota Statutes 2000, section 126C.17, 3.4 subdivision 6, is amended to read: 3.5 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a) A district's 3.6 referendum equalization levy for a referendum levied against the 3.7 referendum market value of all taxable property as defined in 3.8 section 126C.01, subdivision 3, equals the district's referendum 3.9 equalization revenue times the lesser of one or the ratio of the 3.10 district's referendum market value per resident marginal cost 3.11 pupil unit to $476,000. 3.12 (b) A district's referendum equalization levy for a 3.13 referendum levied against the net tax capacity of all taxable 3.14 property equals the district's referendum equalization revenue 3.15 times the lesser of one or the ratio of the district's adjusted 3.16 net tax capacity per resident marginal cost pupil unit to $8,404. 3.17 (c) A district's referendum equalization levy for a 3.18 referendum levied against the net tax capacity of class 1 and 3.19 class 2 property equals the district's referendum equalization 3.20 revenue times the lesser of one or the ratio of the district's 3.21 adjusted net tax capacity of class 1 and class 2 property per 3.22 resident marginal cost pupil unit to $4,902. 3.23 [EFFECTIVE DATE.] This section is effective for taxes 3.24 payable in 2002 and subsequent years. 3.25 Sec. 5. Minnesota Statutes 2000, section 126C.17, is 3.26 amended by adding a subdivision to read: 3.27 Subd. 10a. [SCHOOL REFERENDUM LEVY; HOMESTEAD AND 3.28 AGRICULTURAL VALUE.] Notwithstanding the provisions of 3.29 subdivisions 9 and 10, a school referendum levy approved after 3.30 September 1, 2001, that is not a continuation of an expiring 3.31 levy, must be levied against the net tax capacity of class 1 and 3.32 class 2 property only, as defined under section 273.13. In the 3.33 case of a referendum levy enacted to replace an expiring levy 3.34 which increases the levy over the level of the expiring levy, 3.35 the amount in excess of the expiring levy is subject to the 3.36 requirements of this subdivision. Any referendum levy subject 4.1 to the requirements of this subdivision must be certified 4.2 separately to the county auditor under section 275.07. 4.3 All other provisions of subdivisions 9 and 10 that do not 4.4 conflict with this subdivision apply to referendum levies under 4.5 this subdivision. 4.6 [EFFECTIVE DATE.] This section is effective for taxes 4.7 payable in 2002 and subsequent years. 4.8 Sec. 6. [127A.485] [ADJUSTED GENERAL EDUCATION TAX BASE.] 4.9 Subdivision 1. [GENERAL EDUCATION TAX BASE.] "General 4.10 education tax base" means the net tax capacity of the taxable 4.11 property of the district for all class 3, 4, and 5 property 4.12 defined under section 273.13, except class 4c noncommercial 4.13 seasonal residential recreational property. 4.14 Subd. 2. [ADJUSTED GENERAL EDUCATION TAX BASE.] A school 4.15 district's adjusted general education tax base equals its 4.16 general education tax base computed under subdivision 1 divided 4.17 by its sales ratio for those classes of property computed under 4.18 section 127A.48. 4.19 [EFFECTIVE DATE.] This section is effective for taxes 4.20 payable in 2002 and subsequent years. 4.21 Sec. 7. Minnesota Statutes 2000, section 273.13, 4.22 subdivision 22, is amended to read: 4.23 Subd. 22. [CLASS 1.] (a) Except as provided in subdivision 4.24 23, real estate which is residential and used for homestead 4.25 purposes is class 1. The market value of class 1a property must 4.26 be determined based upon the value of the house, garage, and 4.27 land. 4.28 The first$76,000tier of market value of class 1a property 4.29 has a net class rate of one percent of its market value; and the 4.30 remaining market value of class 1a propertythat exceeds $76,0004.31 has a class rate of1.651.5 percent of its market value. For 4.32 purposes of this subdivision, the first tier means the first 4.33 $76,000 of market value. 4.34 (b) Class 1b property includes homestead real estate or 4.35 homestead manufactured homes used for the purposes of a 4.36 homestead by 5.1 (1) any blind person, or the blind person and the blind 5.2 person's spouse; or 5.3 (2) any person, hereinafter referred to as "veteran," who: 5.4 (i) served in the active military or naval service of the 5.5 United States; and 5.6 (ii) is entitled to compensation under the laws and 5.7 regulations of the United States for permanent and total 5.8 service-connected disability due to the loss, or loss of use, by 5.9 reason of amputation, ankylosis, progressive muscular 5.10 dystrophies, or paralysis, of both lower extremities, such as to 5.11 preclude motion without the aid of braces, crutches, canes, or a 5.12 wheelchair; and 5.13 (iii) has acquired a special housing unit with special 5.14 fixtures or movable facilities made necessary by the nature of 5.15 the veteran's disability, or the surviving spouse of the 5.16 deceased veteran for as long as the surviving spouse retains the 5.17 special housing unit as a homestead; or 5.18 (3) any person who: 5.19 (i) is permanently and totally disabled and 5.20 (ii) receives 90 percent or more of total household income, 5.21 as defined in section 290A.03, subdivision 5, from 5.22 (A) aid from any state as a result of that disability; or 5.23 (B) supplemental security income for the disabled; or 5.24 (C) workers' compensation based on a finding of total and 5.25 permanent disability; or 5.26 (D) social security disability, including the amount of a 5.27 disability insurance benefit which is converted to an old age 5.28 insurance benefit and any subsequent cost of living increases; 5.29 or 5.30 (E) aid under the federal Railroad Retirement Act of 1937, 5.31 United States Code Annotated, title 45, section 228b(a)5; or 5.32 (F) a pension from any local government retirement fund 5.33 located in the state of Minnesota as a result of that 5.34 disability; or 5.35 (G) pension, annuity, or other income paid as a result of 5.36 that disability from a private pension or disability plan, 6.1 including employer, employee, union, and insurance plans and 6.2 (iii) has household income as defined in section 290A.03, 6.3 subdivision 5, of $50,000 or less; or 6.4 (4) any person who is permanently and totally disabled and 6.5 whose household income as defined in section 290A.03, 6.6 subdivision 5, is 275 percent or less of the federal poverty 6.7 level. 6.8 Property is classified and assessed under clause (4) only 6.9 if the government agency or income-providing source certifies, 6.10 upon the request of the homestead occupant, that the homestead 6.11 occupant satisfies the disability requirements of this paragraph. 6.12 Property is classified and assessed pursuant to clause (1) 6.13 only if the commissioner of economic security certifies to the 6.14 assessor that the homestead occupant satisfies the requirements 6.15 of this paragraph. 6.16 Permanently and totally disabled for the purpose of this 6.17 subdivision means a condition which is permanent in nature and 6.18 totally incapacitates the person from working at an occupation 6.19 which brings the person an income. The first $32,000 market 6.20 value of class 1b property has a net class rate of .45 percent 6.21 of its market value. The remaining market value of class 1b 6.22 property has a net class rate using the rates for class 1 or 6.23 class 2a property, whichever is appropriate, of similar market 6.24 value. 6.25 (c) Class 1c property is commercial use real property that 6.26 abuts a lakeshore line and is devoted to temporary and seasonal 6.27 residential occupancy for recreational purposes but not devoted 6.28 to commercial purposes for more than 250 days in the year 6.29 preceding the year of assessment, and that includes a portion 6.30 used as a homestead by the owner, which includes a dwelling 6.31 occupied as a homestead by a shareholder of a corporation that 6.32 owns the resort or a partner in a partnership that owns the 6.33 resort, even if the title to the homestead is held by the 6.34 corporation or partnership. For purposes of this clause, 6.35 property is devoted to a commercial purpose on a specific day if 6.36 any portion of the property, excluding the portion used 7.1 exclusively as a homestead, is used for residential occupancy 7.2 and a fee is charged for residential occupancy. Class 1c 7.3 property has a class rate of one percent of total market value 7.4 with the following limitation: the area of the property must 7.5 not exceed 100 feet of lakeshore footage for each cabin or 7.6 campsite located on the property up to a total of 800 feet and 7.7 500 feet in depth, measured away from the lakeshore. If any 7.8 portion of the class 1c resort property is classified as class 7.9 4c under subdivision 25, the entire property must meet the 7.10 requirements of subdivision 25, paragraph (d), clause (1), to 7.11 qualify for class 1c treatment under this paragraph. 7.12 (d) Class 1d property includes structures that meet all of 7.13 the following criteria: 7.14 (1) the structure is located on property that is classified 7.15 as agricultural property under section 273.13, subdivision 23; 7.16 (2) the structure is occupied exclusively by seasonal farm 7.17 workers during the time when they work on that farm, and the 7.18 occupants are not charged rent for the privilege of occupying 7.19 the property, provided that use of the structure for storage of 7.20 farm equipment and produce does not disqualify the property from 7.21 classification under this paragraph; 7.22 (3) the structure meets all applicable health and safety 7.23 requirements for the appropriate season; and 7.24 (4) the structure is not salable as residential property 7.25 because it does not comply with local ordinances relating to 7.26 location in relation to streets or roads. 7.27 The market value of class 1d property has the same class 7.28 rates as class 1a property under paragraph (a). 7.29 [EFFECTIVE DATE.] This section is effective for taxes 7.30 payable in 2002 and subsequent years. 7.31 Sec. 8. Minnesota Statutes 2000, section 273.13, 7.32 subdivision 23, is amended to read: 7.33 Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural 7.34 land including any improvements that is homesteaded. The market 7.35 value of the house and garage and immediately surrounding one 7.36 acre of land has the same class rates as class 1a property under 8.1 subdivision 22. The value of the remaining land including 8.2 improvements up to $115,000 has a net class rate of 0.35 percent 8.3 of market value. The value of class 2a property over $115,000 8.4 of market value up to and including $600,000 market value has a 8.5 net class rate of0.80.75 percent of market value. The 8.6 remaining property over $600,000 market value has a class rate 8.7 of1.20one percent of market value. 8.8 (b) Class 2b property is (1) real estate, rural in 8.9 character and used exclusively for growing trees for timber, 8.10 lumber, and wood and wood products; (2) real estate that is not 8.11 improved with a structure and is used exclusively for growing 8.12 trees for timber, lumber, and wood and wood products, if the 8.13 owner has participated or is participating in a cost-sharing 8.14 program for afforestation, reforestation, or timber stand 8.15 improvement on that particular property, administered or 8.16 coordinated by the commissioner of natural resources; (3) real 8.17 estate that is nonhomestead agricultural land; or (4) a landing 8.18 area or public access area of a privately owned public use 8.19 airport. Class 2b property has a net class rate of1.20one 8.20 percent of market value. 8.21 (c) Agricultural land as used in this section means 8.22 contiguous acreage of ten acres or more, used during the 8.23 preceding year for agricultural purposes. "Agricultural 8.24 purposes" as used in this section means the raising or 8.25 cultivation of agricultural products or enrollment in the 8.26 Reinvest in Minnesota program under sections 103F.501 to 8.27 103F.535 or the federal Conservation Reserve Program as 8.28 contained in Public Law Number 99-198. Contiguous acreage on 8.29 the same parcel, or contiguous acreage on an immediately 8.30 adjacent parcel under the same ownership, may also qualify as 8.31 agricultural land, but only if it is pasture, timber, waste, 8.32 unusable wild land, or land included in state or federal farm 8.33 programs. Agricultural classification for property shall be 8.34 determined excluding the house, garage, and immediately 8.35 surrounding one acre of land, and shall not be based upon the 8.36 market value of any residential structures on the parcel or 9.1 contiguous parcels under the same ownership. 9.2 (d) Real estate, excluding the house, garage, and 9.3 immediately surrounding one acre of land, of less than ten acres 9.4 which is exclusively and intensively used for raising or 9.5 cultivating agricultural products, shall be considered as 9.6 agricultural land. 9.7 Land shall be classified as agricultural even if all or a 9.8 portion of the agricultural use of that property is the leasing 9.9 to, or use by another person for agricultural purposes. 9.10 Classification under this subdivision is not determinative 9.11 for qualifying under section 273.111. 9.12 The property classification under this section supersedes, 9.13 for property tax purposes only, any locally administered 9.14 agricultural policies or land use restrictions that define 9.15 minimum or maximum farm acreage. 9.16 (e) The term "agricultural products" as used in this 9.17 subdivision includes production for sale of: 9.18 (1) livestock, dairy animals, dairy products, poultry and 9.19 poultry products, fur-bearing animals, horticultural and nursery 9.20 stock described in sections 18.44 to 18.61, fruit of all kinds, 9.21 vegetables, forage, grains, bees, and apiary products by the 9.22 owner; 9.23 (2) fish bred for sale and consumption if the fish breeding 9.24 occurs on land zoned for agricultural use; 9.25 (3) the commercial boarding of horses if the boarding is 9.26 done in conjunction with raising or cultivating agricultural 9.27 products as defined in clause (1); 9.28 (4) property which is owned and operated by nonprofit 9.29 organizations used for equestrian activities, excluding racing; 9.30 (5) game birds and waterfowl bred and raised for use on a 9.31 shooting preserve licensed under section 97A.115; 9.32 (6) insects primarily bred to be used as food for animals; 9.33 and 9.34 (7) trees, grown for sale as a crop, and not sold for 9.35 timber, lumber, wood, or wood products. 9.36 (f) If a parcel used for agricultural purposes is also used 10.1 for commercial or industrial purposes, including but not limited 10.2 to: 10.3 (1) wholesale and retail sales; 10.4 (2) processing of raw agricultural products or other goods; 10.5 (3) warehousing or storage of processed goods; and 10.6 (4) office facilities for the support of the activities 10.7 enumerated in clauses (1), (2), and (3), 10.8 the assessor shall classify the part of the parcel used for 10.9 agricultural purposes as class 1b, 2a, or 2b, whichever is 10.10 appropriate, and the remainder in the class appropriate to its 10.11 use. The grading, sorting, and packaging of raw agricultural 10.12 products for first sale is considered an agricultural purpose. 10.13 A greenhouse or other building where horticultural or nursery 10.14 products are grown that is also used for the conduct of retail 10.15 sales must be classified as agricultural if it is primarily used 10.16 for the growing of horticultural or nursery products from seed, 10.17 cuttings, or roots and occasionally as a showroom for the retail 10.18 sale of those products. Use of a greenhouse or building only 10.19 for the display of already grown horticultural or nursery 10.20 products does not qualify as an agricultural purpose. 10.21 The assessor shall determine and list separately on the 10.22 records the market value of the homestead dwelling and the one 10.23 acre of land on which that dwelling is located. If any farm 10.24 buildings or structures are located on this homesteaded acre of 10.25 land, their market value shall not be included in this separate 10.26 determination. 10.27 (g) To qualify for classification under paragraph (b), 10.28 clause (4), a privately owned public use airport must be 10.29 licensed as a public airport under section 360.018. For 10.30 purposes of paragraph (b), clause (4), "landing area" means that 10.31 part of a privately owned public use airport properly cleared, 10.32 regularly maintained, and made available to the public for use 10.33 by aircraft and includes runways, taxiways, aprons, and sites 10.34 upon which are situated landing or navigational aids. A landing 10.35 area also includes land underlying both the primary surface and 10.36 the approach surfaces that comply with all of the following: 11.1 (i) the land is properly cleared and regularly maintained 11.2 for the primary purposes of the landing, taking off, and taxiing 11.3 of aircraft; but that portion of the land that contains 11.4 facilities for servicing, repair, or maintenance of aircraft is 11.5 not included as a landing area; 11.6 (ii) the land is part of the airport property; and 11.7 (iii) the land is not used for commercial or residential 11.8 purposes. 11.9 The land contained in a landing area under paragraph (b), clause 11.10 (4), must be described and certified by the commissioner of 11.11 transportation. The certification is effective until it is 11.12 modified, or until the airport or landing area no longer meets 11.13 the requirements of paragraph (b), clause (4). For purposes of 11.14 paragraph (b), clause (4), "public access area" means property 11.15 used as an aircraft parking ramp, apron, or storage hangar, or 11.16 an arrival and departure building in connection with the airport. 11.17 [EFFECTIVE DATE.] This section is effective for taxes 11.18 payable in 2002 and subsequent years. 11.19 Sec. 9. Minnesota Statutes 2000, section 273.13, 11.20 subdivision 24, is amended to read: 11.21 Subd. 24. [CLASS 3.] (a) Commercial and industrial 11.22 property and utility real and personal property is class 3a. 11.23 (1) Except as otherwise provided, each parcel of 11.24 commercial, industrial, or utility real property has a class 11.25 rate of2.4two percent of the first tier of market value, and 11.263.4three percent of the remaining market value. In the case of 11.27 contiguous parcels of property owned by the same person or 11.28 entity, only the value equal to the first-tier value of the 11.29 contiguous parcels qualifies for the reduced class rate, except 11.30 that contiguous parcels owned by the same person or entity shall 11.31 be eligible for the first-tier value class rate on each separate 11.32 business operated by the owner of the property, provided the 11.33 business is housed in a separate structure. For the purposes of 11.34 this subdivision, the first tier means the first $150,000 of 11.35 market value. Real property owned in fee by a utility for 11.36 transmission line right-of-way shall be classified at the class 12.1 rate for the higher tier. 12.2 For purposes of this subdivision, parcels are considered to 12.3 be contiguous even if they are separated from each other by a 12.4 road, street, waterway, or other similar intervening type of 12.5 property. Connections between parcels that consist of power 12.6 lines or pipelines do not cause the parcels to be contiguous. 12.7 Property owners who have contiguous parcels of property that 12.8 constitute separate businesses that may qualify for the 12.9 first-tier class rate shall notify the assessor by July 1, for 12.10 treatment beginning in the following taxes payable year. 12.11 (2) Personal property that is: (i) part of an electric 12.12 generation, transmission, or distribution system; or (ii) part 12.13 of a pipeline system transporting or distributing water, gas, 12.14 crude oil, or petroleum products; and (iii) not described in 12.15 clause (3), has a class rate as provided under clause (1) for 12.16 the first tier of market value and the remaining market value. 12.17 In the case of multiple parcels in one county that are owned by 12.18 one person or entity, only one first tier amount is eligible for 12.19 the reduced rate. 12.20 (3) The entire market value of personal property that is: 12.21 (i) tools, implements, and machinery of an electric generation, 12.22 transmission, or distribution system; (ii) tools, implements, 12.23 and machinery of a pipeline system transporting or distributing 12.24 water, gas, crude oil, or petroleum products; or (iii) the mains 12.25 and pipes used in the distribution of steam or hot or chilled 12.26 water for heating or cooling buildings, has a class rate as 12.27 provided under clause (1) for the remaining market value in 12.28 excess of the first tier. 12.29 (b) Employment property defined in section 469.166, during 12.30 the period provided in section 469.170, shall constitute class 12.31 3b. The class rates for class 3b property are determined under 12.32 paragraph (a). 12.33(c)(1) Subject to the limitations of clause (2), structures12.34which are (i) located on property classified as class 3a, (ii)12.35constructed under an initial building permit issued after12.36January 2, 1996, (iii) located in a transit zone as defined13.1under section 473.3915, subdivision 3, (iv) located within the13.2boundaries of a school district, and (v) not primarily used for13.3retail or transient lodging purposes, shall have a class rate13.4equal to the lesser of 2.975 percent or the class rate of the13.5second tier of the commercial property rate under paragraph (a)13.6on any portion of the market value that does not qualify for the13.7first tier class rate under paragraph (a). As used in item (v),13.8a structure is primarily used for retail or transient lodging13.9purposes if over 50 percent of its square footage is used for13.10those purposes. A class rate equal to the lesser of 2.97513.11percent or the class rate of the second tier of the commercial13.12property class rate under paragraph (a) shall also apply to13.13improvements to existing structures that meet the requirements13.14of items (i) to (v) if the improvements are constructed under an13.15initial building permit issued after January 2, 1996, even if13.16the remainder of the structure was constructed prior to January13.172, 1996. For the purposes of this paragraph, a structure shall13.18be considered to be located in a transit zone if any portion of13.19the structure lies within the zone. If any property once13.20eligible for treatment under this paragraph ceases to remain13.21eligible due to revisions in transit zone boundaries, the13.22property shall continue to receive treatment under this13.23paragraph for a period of three years.13.24(2) This clause applies to any structure qualifying for the13.25transit zone reduced class rate under clause (1) on January 2,13.261999, or any structure meeting any of the qualification criteria13.27in item (i) and otherwise qualifying for the transit zone13.28reduced class rate under clause (1). Such a structure continues13.29to receive the transit zone reduced class rate until the13.30occurrence of one of the events in item (ii). Property13.31qualifying under item (i)(D), that is located outside of a city13.32of the first class, qualifies for the transit zone reduced class13.33rate as provided in that item. Property qualifying under item13.34(i)(E) qualifies for the transit zone reduced class rate as13.35provided in that item.13.36(i) A structure qualifies for the rate in this clause if it14.1is:14.2(A) property for which a building permit was issued before14.3December 31, 1998; or14.4(B) property for which a building permit was issued before14.5June 30, 2001, if:14.6(I) at least 50 percent of the land on which the structure14.7is to be built has been acquired or is the subject of signed14.8purchase agreements or signed options as of March 15, 1998, by14.9the entity that proposes construction of the project or an14.10affiliate of the entity;14.11(II) signed agreements have been entered into with one14.12entity or with affiliated entities to lease for the account of14.13the entity or affiliated entities at least 50 percent of the14.14square footage of the structure or the owner of the structure14.15will occupy at least 50 percent of the square footage of the14.16structure; and14.17(III) one of the following requirements is met:14.18the project proposer has submitted the completed data14.19portions of an environmental assessment worksheet by December14.2031, 1998; or14.21a notice of determination of adequacy of an environmental14.22impact statement has been published by April 1, 1999; or14.23an alternative urban areawide review has been completed by14.24April 1, 1999; or14.25(C) property for which a building permit is issued before14.26July 30, 1999, if:14.27(I) at least 50 percent of the land on which the structure14.28is to be built has been acquired or is the subject of signed14.29purchase agreements as of March 31, 1998, by the entity that14.30proposes construction of the project or an affiliate of the14.31entity;14.32(II) a signed agreement has been entered into between the14.33building developer and a tenant to lease for its own account at14.34least 200,000 square feet of space in the building;14.35(III) a signed letter of intent is entered into by July 1,14.361998, between the building developer and the tenant to lease the15.1space for its own account; and15.2(IV) the environmental review process required by state law15.3was commenced by December 31, 1998;15.4(D) property for which an irrevocable letter of credit with15.5a housing and redevelopment authority was signed before December15.631, 1998. The structure shall receive the transit zone reduced15.7class rate during construction and for the duration of time that15.8the original tenants remain in the building. Any unoccupied net15.9leasable square footage that is not leased within 36 months15.10after the certificate of occupancy has been issued for the15.11building shall not be eligible to receive the reduced class15.12rate. This reduced class rate applies only if a qualifying15.13entity continues to own the property;15.14(E) property, located in a city of the first class, and for15.15which the building permits for the excavation, the parking ramp,15.16and the office tower were issued prior to April 1, 1999, shall15.17receive the reduced class rate during construction and for the15.18first five assessment years immediately following its initial15.19occupancy provided that, when completed, at least 25 percent of15.20the net leasable square footage must be occupied by a qualifying15.21entity each year during this time period. In order to receive15.22the reduced class rate on the structure in any subsequent15.23assessment years, at least 50 percent of the rentable square15.24footage must be occupied by a qualifying entity. This reduced15.25class rate applies only if a qualifying entity continues to own15.26the property.15.27(ii) A structure specified by this clause, other than a15.28structure qualifying under clause (i)(D) or (E), shall continue15.29to receive the transit zone reduced class rate until the15.30occurrence of one of the following events:15.31(A) if the structure upon initial occupancy will be owner15.32occupied by the entity initially constructing the structure or15.33an affiliated entity, the structure receives the reduced class15.34rate until the structure ceases to be at least 50 percent15.35occupied by the entity or an affiliated entity, provided, if the15.36portion of the structure occupied by that entity or an affiliate16.1of the entity is less than 85 percent, the transit zone class16.2rate reduction for the portion of structure not so occupied16.3terminates upon the leasing of such space to any nonaffiliated16.4entity; or16.5(B) if the structure is leased by a single entity or16.6affiliated entity at the time of initial occupancy, the16.7structure shall receive the reduced class rate until the16.8structure ceases to be at least 50 percent occupied by the16.9entity or an affiliated entity, provided, if the portion of the16.10structure occupied by that entity or an affiliate of the entity16.11is less than 85 percent, the transit zone class rate reduction16.12for the portion of structure not so occupied shall terminate16.13upon the leasing of such space to any nonaffiliated entity; or16.14(C) if the structure meets the criteria in item (i)(C), the16.15structure shall receive the reduced class rate until the16.16expiration of the initial lease term of the applicable tenants.16.17Percentages occupied or leased shall be determined based16.18upon net leasable square footage in the structure. The assessor16.19shall allocate the value of the structure in the same fashion as16.20provided in the general law for portions of any structure16.21receiving and not receiving the transit tax class reduction as a16.22result of this clause.16.23(3) For purposes of paragraph (c), "qualifying entity"16.24means the entity owning the property on September 1, 2000, or an16.25affiliate of an entity that owned the property on September 1,16.262000.16.27 [EFFECTIVE DATE.] This section is effective for taxes 16.28 payable in 2002 and subsequent years. 16.29 Sec. 10. Minnesota Statutes 2000, section 273.13, 16.30 subdivision 25, is amended to read: 16.31 Subd. 25. [CLASS 4.] (a) Class 4a is residential real 16.32 estate containing four or more units and used or held for use by 16.33 the owner or by the tenants or lessees of the owner as a 16.34 residence for rental periods of 30 days or more. Class 4a also 16.35 includes hospitals licensed under sections 144.50 to 144.56, 16.36 other than hospitals exempt under section 272.02, and contiguous 17.1 property used for hospital purposes, without regard to whether 17.2 the property has been platted or subdivided. Class 4a property 17.3in a city with a population of 5,000 or less, that is (1)17.4located outside of the metropolitan area, as defined in section17.5473.121, subdivision 2, or outside any county contiguous to the17.6metropolitan area, and (2) whose city boundary is at least 1517.7miles from the boundary of any city with a population greater17.8than 5,000 has a class rate of 2.15 percent of market value.17.9All other class 4a propertyhas a class rate of2.4two percent 17.10 of market value.For purposes of this paragraph, population has17.11the same meaning given in section 477A.011, subdivision 3.17.12 (b) Class 4b includes: 17.13 (1) residential real estate containing less than four units 17.14 that does not qualify as class 4bb, other than seasonal 17.15 residential, and recreational; 17.16 (2) manufactured homes not classified under any other 17.17 provision; 17.18 (3) a dwelling, garage, and surrounding one acre of 17.19 property on a nonhomestead farm classified under subdivision 23, 17.20 paragraph (b) containing two or three units; 17.21 (4) unimproved property that is classified residential as 17.22 determined under subdivision 33. 17.23 Class 4b property has a class rate of1.651.5 percent of 17.24 market value. 17.25 (c) Class 4bb includes: 17.26 (1) nonhomestead residential real estate containing one 17.27 unit, other than seasonal residential, and recreational; and 17.28 (2) a single family dwelling, garage, and surrounding one 17.29 acre of property on a nonhomestead farm classified under 17.30 subdivision 23, paragraph (b). 17.31 Class 4bb has a class rate of1.2one percent on the first 17.32 $76,000 of market value and a class rate of1.651.5 percent of 17.33 its market value that exceeds $76,000. 17.34 Property that has been classified as seasonal recreational 17.35 residential property at any time during which it has been owned 17.36 by the current owner or spouse of the current owner does not 18.1 qualify for class 4bb. 18.2 (d) Class 4c property includes: 18.3 (1) except as provided in subdivision 22, paragraph (c), 18.4 real property devoted to temporary and seasonal residential 18.5 occupancy for recreation purposes, including real property 18.6 devoted to temporary and seasonal residential occupancy for 18.7 recreation purposes and not devoted to commercial purposes for 18.8 more than 250 days in the year preceding the year of 18.9 assessment. For purposes of this clause, property is devoted to 18.10 a commercial purpose on a specific day if any portion of the 18.11 property is used for residential occupancy, and a fee is charged 18.12 for residential occupancy. In order for a property to be 18.13 classified as class 4c, seasonal recreational residential for 18.14 commercial purposes, at least 40 percent of the annual gross 18.15 lodging receipts related to the property must be from business 18.16 conducted during 90 consecutive days and either (i) at least 60 18.17 percent of all paid bookings by lodging guests during the year 18.18 must be for periods of at least two consecutive nights; or (ii) 18.19 at least 20 percent of the annual gross receipts must be from 18.20 charges for rental of fish houses, boats and motors, 18.21 snowmobiles, downhill or cross-country ski equipment, or charges 18.22 for marina services, launch services, and guide services, or the 18.23 sale of bait and fishing tackle. For purposes of this 18.24 determination, a paid booking of five or more nights shall be 18.25 counted as two bookings. Class 4c also includes commercial use 18.26 real property used exclusively for recreational purposes in 18.27 conjunction with class 4c property devoted to temporary and 18.28 seasonal residential occupancy for recreational purposes, up to 18.29 a total of two acres, provided the property is not devoted to 18.30 commercial recreational use for more than 250 days in the year 18.31 preceding the year of assessment and is located within two miles 18.32 of the class 4c property with which it is used. Class 4c 18.33 property classified in this clause also includes the remainder 18.34 of class 1c resorts provided that the entire property including 18.35 that portion of the property classified as class 1c also meets 18.36 the requirements for class 4c under this clause; otherwise the 19.1 entire property is classified as class 3. Owners of real 19.2 property devoted to temporary and seasonal residential occupancy 19.3 for recreation purposes and all or a portion of which was 19.4 devoted to commercial purposes for not more than 250 days in the 19.5 year preceding the year of assessment desiring classification as 19.6 class 1c or 4c, must submit a declaration to the assessor 19.7 designating the cabins or units occupied for 250 days or less in 19.8 the year preceding the year of assessment by January 15 of the 19.9 assessment year. Those cabins or units and a proportionate 19.10 share of the land on which they are located will be designated 19.11 class 1c or 4c as otherwise provided. The remainder of the 19.12 cabins or units and a proportionate share of the land on which 19.13 they are located will be designated as class 3a. The owner of 19.14 property desiring designation as class 1c or 4c property must 19.15 provide guest registers or other records demonstrating that the 19.16 units for which class 1c or 4c designation is sought were not 19.17 occupied for more than 250 days in the year preceding the 19.18 assessment if so requested. The portion of a property operated 19.19 as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 19.20 nonresidential facility operated on a commercial basis not 19.21 directly related to temporary and seasonal residential occupancy 19.22 for recreation purposes shall not qualify for class 1c or 4c; 19.23 (2) qualified property used as a golf course if: 19.24 (i) it is open to the public on a daily fee basis. It may 19.25 charge membership fees or dues, but a membership fee may not be 19.26 required in order to use the property for golfing, and its green 19.27 fees for golfing must be comparable to green fees typically 19.28 charged by municipal courses; and 19.29 (ii) it meets the requirements of section 273.112, 19.30 subdivision 3, paragraph (d). 19.31 A structure used as a clubhouse, restaurant, or place of 19.32 refreshment in conjunction with the golf course is classified as 19.33 class 3a property; 19.34 (3) real property up to a maximum of one acre of land owned 19.35 by a nonprofit community service oriented organization; provided 19.36 that the property is not used for a revenue-producing activity 20.1 for more than six days in the calendar year preceding the year 20.2 of assessment and the property is not used for residential 20.3 purposes on either a temporary or permanent basis. For purposes 20.4 of this clause, a "nonprofit community service oriented 20.5 organization" means any corporation, society, association, 20.6 foundation, or institution organized and operated exclusively 20.7 for charitable, religious, fraternal, civic, or educational 20.8 purposes, and which is exempt from federal income taxation 20.9 pursuant to section 501(c)(3), (10), or (19) of the Internal 20.10 Revenue Code of 1986, as amended through December 31, 1990. For 20.11 purposes of this clause, "revenue-producing activities" shall 20.12 include but not be limited to property or that portion of the 20.13 property that is used as an on-sale intoxicating liquor or 3.2 20.14 percent malt liquor establishment licensed under chapter 340A, a 20.15 restaurant open to the public, bowling alley, a retail store, 20.16 gambling conducted by organizations licensed under chapter 349, 20.17 an insurance business, or office or other space leased or rented 20.18 to a lessee who conducts a for-profit enterprise on the 20.19 premises. Any portion of the property which is used for 20.20 revenue-producing activities for more than six days in the 20.21 calendar year preceding the year of assessment shall be assessed 20.22 as class 3a. The use of the property for social events open 20.23 exclusively to members and their guests for periods of less than 20.24 24 hours, when an admission is not charged nor any revenues are 20.25 received by the organization shall not be considered a 20.26 revenue-producing activity; 20.27 (4) post-secondary student housing of not more than one 20.28 acre of land that is owned by a nonprofit corporation organized 20.29 under chapter 317A and is used exclusively by a student 20.30 cooperative, sorority, or fraternity for on-campus housing or 20.31 housing located within two miles of the border of a college 20.32 campus; 20.33 (5) manufactured home parks as defined in section 327.14, 20.34 subdivision 3; 20.35 (6) real property that is actively and exclusively devoted 20.36 to indoor fitness, health, social, recreational, and related 21.1 uses, is owned and operated by a not-for-profit corporation, and 21.2 is located within the metropolitan area as defined in section 21.3 473.121, subdivision 2; and 21.4 (7) a leased or privately owned noncommercial aircraft 21.5 storage hangar not exempt under section 272.01, subdivision 2, 21.6 and the land on which it is located, provided that: 21.7 (i) the land is on an airport owned or operated by a city, 21.8 town, county, metropolitan airports commission, or group 21.9 thereof; and 21.10 (ii) the land lease, or any ordinance or signed agreement 21.11 restricting the use of the leased premise, prohibits commercial 21.12 activity performed at the hangar. 21.13 If a hangar classified under this clause is sold after June 21.14 30, 2000, a bill of sale must be filed by the new owner with the 21.15 assessor of the county where the property is located within 60 21.16 days of the sale. 21.17 Class 4c property has a class rate of 1.65 percent of 21.18 market value, except that (i) each parcel of seasonal 21.19 residential recreational property not used for commercial 21.20 purposes has the same class rates as class 4bb property, (ii) 21.21 manufactured home parks assessed under clause (5) have the same 21.22 class rate as class 4b property, and (iii) property described in 21.23 paragraph (d), clause (4), has the same class rate as the rate 21.24 applicable to the first tier of class 4bb nonhomestead 21.25 residential real estate under paragraph (c). 21.26 (e) Class 4d property is qualifying low-income rental 21.27 housing certified to the assessor by the housing finance agency 21.28 under sections 273.126 and 462A.071. Class 4d includes land in 21.29 proportion to the total market value of the building that is 21.30 qualifying low-income rental housing. For all properties 21.31 qualifying as class 4d, the market value determined by the 21.32 assessor must be based on the normal approach to value using 21.33 normal unrestricted rents. 21.34 Class 4d property has a class rate of one percent of market 21.35 value. 21.36 [EFFECTIVE DATE.] This section is effective for taxes 22.1 payable in 2002 and subsequent years. 22.2 Sec. 11. Minnesota Statutes 2000, section 273.13, 22.3 subdivision 31, is amended to read: 22.4 Subd. 31. [CLASS 5.] Class 5 property includes: 22.5 (1) unmined iron ore and low-grade iron-bearing formations 22.6 as defined in section 273.14; and 22.7 (2) all other property not otherwise classified. 22.8 Class 5 property has a class rate of3.4three percent of 22.9 market value. 22.10 [EFFECTIVE DATE.] This section is effective for taxes 22.11 payable in 2002 and subsequent years. 22.12 Sec. 12. [273.1387] [HOMESTEAD CREDIT.] 22.13 Subdivision 1. [DETERMINATION OF CREDIT AMOUNT.] Each 22.14 county auditor shall determine a homestead credit amount for 22.15 each property classified as class 1 residential homestead or 22.16 class 2a agricultural homestead within the county equal to seven 22.17 percent of the net tax capacity of the first tier of market 22.18 value of the homestead. In the case of an agricultural 22.19 homestead, only the net tax capacity of the house, garage, and 22.20 surrounding one acre of land shall be used in determining the 22.21 property's homestead credit amount. The credit may not exceed 22.22 the net tax on the property after subtraction of all other 22.23 credits under section 273.1393. 22.24 Subd. 2. [CREDIT APPLICATION.] The homestead credit shall 22.25 be used to proportionately reduce the property tax payable to 22.26 all taxing jurisdictions on the homestead, after subtraction of 22.27 all other credits under section 273.1393. 22.28 Subd. 3. [CREDIT REIMBURSEMENT.] The county auditor shall 22.29 certify the amount of tax reductions granted under this section 22.30 to the commissioner of revenue on the abstracts of tax lists 22.31 submitted under section 275.29. The commissioner of revenue 22.32 shall verify the credit amounts reported, and shall make 22.33 payments directly to the affected taxing jurisdictions other 22.34 than school districts in two equal installments on September 15 22.35 and December 26 each year. The commissioner of revenue shall 22.36 certify the total of the tax reductions granted under this 23.1 section for each school district to the commissioner of 23.2 children, families, and learning before September 1 of each 23.3 taxes payable year. The commissioner of children, families, and 23.4 learning shall reimburse each affected school district for the 23.5 amount of the property tax reductions allowed under this section 23.6 as provided in section 273.1392. 23.7 Subd. 4. [APPROPRIATION.] An amount sufficient to pay the 23.8 credit reimbursements provided under this section for school 23.9 districts, intermediate school districts, or any group of school 23.10 districts levying as a single taxing entity, is annually 23.11 appropriated from the general fund to the commissioner of 23.12 children, families, and learning. An amount sufficient to pay 23.13 the credit reimbursements provided under this section for 23.14 counties, cities, towns, and special taxing districts is 23.15 annually appropriated from the general fund to the commissioner 23.16 of revenue. A jurisdiction's aid amount may be increased or 23.17 decreased based on any prior year adjustments for homestead 23.18 credit or other property tax credit or aid programs. 23.19 [EFFECTIVE DATE.] This section is effective for taxes 23.20 payable in 2002 and subsequent years. 23.21 Sec. 13. Minnesota Statutes 2000, section 273.1393, is 23.22 amended to read: 23.23 273.1393 [COMPUTATION OF NET PROPERTY TAXES.] 23.24 Notwithstanding any other provisions to the contrary, "net" 23.25 property taxes are determined by subtracting the credits in the 23.26 order listed from the gross tax: 23.27 (1) disaster credit as provided in section 273.123; 23.28 (2) powerline credit as provided in section 273.42; 23.29 (3) agricultural preserves credit as provided in section 23.30 473H.10; 23.31 (4) enterprise zone credit as provided in section 469.171; 23.32 (5) disparity reduction credit; 23.33 (6) conservation tax credit as provided in section 273.119; 23.34 (7)educationhomestead credit as provided in section 23.35273.1382273.1387; 23.36 (8) taconite homestead credit as provided in section 24.1 273.135; and 24.2 (9) supplemental homestead credit as provided in section 24.3 273.1391. 24.4 The combination of all property tax credits must not exceed 24.5 the gross tax amount. 24.6 [EFFECTIVE DATE.] This section is effective for taxes 24.7 payable in 2002 and subsequent years. 24.8 Sec. 14. Minnesota Statutes 2000, section 275.065, 24.9 subdivision 3, is amended to read: 24.10 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 24.11 county auditor shall prepare and the county treasurer shall 24.12 deliver after November 10 and on or before November 24 each 24.13 year, by first class mail to each taxpayer at the address listed 24.14 on the county's current year's assessment roll, a notice of 24.15 proposed property taxes. 24.16 (b) The commissioner of revenue shall prescribe the form of 24.17 the notice. 24.18 (c) The notice must inform taxpayers that it contains the 24.19 amount of property taxes each taxing authority proposes to 24.20 collect for taxes payable the following year. In the case of a 24.21 town, or in the case of the state determined portion of the 24.22 school district levy, the final tax amount will be its proposed 24.23 tax. The notice must clearly state that each taxing authority, 24.24 including regional library districts established under section 24.25 134.201, and including the metropolitan taxing districts as 24.26 defined in paragraph (i), but excluding all other special taxing 24.27 districts and towns, will hold a public meeting to receive 24.28 public testimony on the proposed budget and proposed or final 24.29 property tax levy, or, in case of a school district, on the 24.30 current budget and proposed property tax levy. It must clearly 24.31 state the time and place of each taxing authority's meeting and 24.32 an address where comments will be received by mail. 24.33 (d) The notice must state for each parcel: 24.34 (1) the market value of the property as determined under 24.35 section 273.11, and used for computing property taxes payable in 24.36 the following year and for taxes payable in the current year as 25.1 each appears in the records of the county assessor on November 1 25.2 of the current year; and, in the case of residential property, 25.3 whether the property is classified as homestead or 25.4 nonhomestead. The notice must clearly inform taxpayers of the 25.5 years to which the market values apply and that the values are 25.6 final values; 25.7 (2) the items listed below, shown separately by county, 25.8 city or town, state determined school taxnet of the education25.9homestead credit under section 273.1382, voter approved school 25.10 levy, other local school levy, and the sum of the special taxing 25.11 districts, and as a total of all taxing authorities, in all 25.12 cases net of the homestead credit amount determined under 25.13 section 273.1387: 25.14 (i) the actual tax for taxes payable in the current year; 25.15 (ii) the tax change due to spending factors, defined as the 25.16 proposed tax minus the constant spending tax amount; 25.17 (iii) the tax change due to other factors, defined as the 25.18 constant spending tax amount minus the actual current year tax; 25.19 and 25.20 (iv) the proposed tax amount. 25.21 In the case of a town or the state determined school tax, 25.22 the final tax shall also be its proposed tax unless the town 25.23 changes its levy at a special town meeting under section 25.24 365.52. If a school district has certified under section 25.25 126C.17, subdivision 9, that a referendum will be held in the 25.26 school district at the November general election, the county 25.27 auditor must note next to the school district's proposed amount 25.28 that a referendum is pending and that, if approved by the 25.29 voters, the tax amount may be higher than shown on the notice. 25.30 In the case of the city of Minneapolis, the levy for the 25.31 Minneapolis library board and the levy for Minneapolis park and 25.32 recreation shall be listed separately from the remaining amount 25.33 of the city's levy. In the case of a parcel where tax increment 25.34 or the fiscal disparities areawide tax under chapter 276A or 25.35 473F applies, the proposed tax levy on the captured value or the 25.36 proposed tax levy on the tax capacity subject to the areawide 26.1 tax must each be stated separately and not included in the sum 26.2 of the special taxing districts; and 26.3 (3) the increase or decrease between the total taxes 26.4 payable in the current year and the total proposed taxes, 26.5 expressed as a percentage. 26.6 For purposes of this section, the amount of the tax on 26.7 homesteads qualifying under the senior citizens' property tax 26.8 deferral program under chapter 290B is the total amount of 26.9 property tax before subtraction of the deferred property tax 26.10 amount. 26.11 (e) The notice must clearly state that the proposed or 26.12 final taxes do not include the following: 26.13 (1) special assessments; 26.14 (2) levies approved by the voters after the date the 26.15 proposed taxes are certified, including bond referenda, school 26.16 district levy referenda, and levy limit increase referenda; 26.17 (3) amounts necessary to pay cleanup or other costs due to 26.18 a natural disaster occurring after the date the proposed taxes 26.19 are certified; 26.20 (4) amounts necessary to pay tort judgments against the 26.21 taxing authority that become final after the date the proposed 26.22 taxes are certified; and 26.23 (5) the contamination tax imposed on properties which 26.24 received market value reductions for contamination. 26.25 (f) Except as provided in subdivision 7, failure of the 26.26 county auditor to prepare or the county treasurer to deliver the 26.27 notice as required in this section does not invalidate the 26.28 proposed or final tax levy or the taxes payable pursuant to the 26.29 tax levy. 26.30 (g) If the notice the taxpayer receives under this section 26.31 lists the property as nonhomestead, and satisfactory 26.32 documentation is provided to the county assessor by the 26.33 applicable deadline, and the property qualifies for the 26.34 homestead classification in that assessment year, the assessor 26.35 shall reclassify the property to homestead for taxes payable in 26.36 the following year. 27.1 (h) In the case of class 4 residential property used as a 27.2 residence for lease or rental periods of 30 days or more, the 27.3 taxpayer must either: 27.4 (1) mail or deliver a copy of the notice of proposed 27.5 property taxes to each tenant, renter, or lessee; or 27.6 (2) post a copy of the notice in a conspicuous place on the 27.7 premises of the property. 27.8 The notice must be mailed or posted by the taxpayer by 27.9 November 27 or within three days of receipt of the notice, 27.10 whichever is later. A taxpayer may notify the county treasurer 27.11 of the address of the taxpayer, agent, caretaker, or manager of 27.12 the premises to which the notice must be mailed in order to 27.13 fulfill the requirements of this paragraph. 27.14 (i) For purposes of this subdivision, subdivisions 5a and 27.15 6, "metropolitan special taxing districts" means the following 27.16 taxing districts in the seven-county metropolitan area that levy 27.17 a property tax for any of the specified purposes listed below: 27.18 (1) metropolitan council under section 473.132, 473.167, 27.19 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 27.20 (2) metropolitan airports commission under section 473.667, 27.21 473.671, or 473.672; and 27.22 (3) metropolitan mosquito control commission under section 27.23 473.711. 27.24 For purposes of this section, any levies made by the 27.25 regional rail authorities in the county of Anoka, Carver, 27.26 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 27.27 398A shall be included with the appropriate county's levy and 27.28 shall be discussed at that county's public hearing. 27.29 (j) If a statutory or home rule charter city or a town has 27.30 exercised the local levy option provided by section 473.388, 27.31 subdivision 7, it may include in the notice of its proposed 27.32 taxes the amount of its proposed taxes attributable to its 27.33 exercise of the option. In the first year of the city or town's 27.34 exercise of this option, the statement shall include an estimate 27.35 of the reduction of the metropolitan council's tax on the parcel 27.36 due to exercise of that option. The metropolitan council's levy 28.1 shall be adjusted accordingly. 28.2 [EFFECTIVE DATE.] This section is effective for taxes 28.3 payable in 2002 and subsequent years. 28.4 Sec. 15. Minnesota Statutes 2000, section 275.08, 28.5 subdivision 1b, is amended to read: 28.6 Subd. 1b. [COMPUTATION OF TAX RATES.] (a) The amounts 28.7 certified to be levied against net tax capacity under section 28.8 275.07 by an individual local government unit shall be divided 28.9 by the total net tax capacity of all taxable properties within 28.10 the local government unit's taxing jurisdiction. The resulting 28.11 ratio, the local government's local tax rate, multiplied by each 28.12 property's net tax capacity shall be each property's net tax 28.13 capacity tax for that local government unit before reduction by 28.14 any credits. 28.15 (b) Any amount certified to the county auditor to be levied 28.16 against market value shall be divided by the total referendum 28.17 market value of all taxable properties within the taxing 28.18 district. The resulting ratio, the taxing district's new 28.19 referendum tax rate, multiplied by each property's referendum 28.20 market value shall be each property's new referendum tax before 28.21 reduction by any credits. For the purposes of this subdivision, 28.22 "referendum market value" means the market value as defined in 28.23 section 126C.01, subdivision 3. 28.24 (c) Any amount certified to the county auditor to be levied 28.25 against the general education tax base under section 127A.485 28.26 shall be divided by the net tax capacity of all properties in 28.27 the school district comprising the general education tax base. 28.28 The resulting ratio, the district's general education tax rate, 28.29 multiplied by each subject property's net tax capacity shall be 28.30 the property's general education tax before reduction by any 28.31 credits. 28.32 (d) Any amount certified to the county auditor to be levied 28.33 against homestead and agricultural net tax capacity under 28.34 section 126C.17, subdivision 10a, shall be divided by the total 28.35 net tax capacity of all properties within the school district 28.36 classified under section 273.13 as class 1 or class 2. The 29.1 resulting ratio, the district's new referendum tax rate, 29.2 multiplied by each subject property's net tax capacity shall be 29.3 the property's new referendum tax before reduction by any 29.4 credits. 29.5 [EFFECTIVE DATE.] This section is effective for taxes 29.6 payable in 2002 and subsequent years. 29.7 Sec. 16. Minnesota Statutes 2000, section 276.04, 29.8 subdivision 2, is amended to read: 29.9 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 29.10 shall provide for the printing of the tax statements. The 29.11 commissioner of revenue shall prescribe the form of the property 29.12 tax statement and its contents. The statement must contain a 29.13 tabulated statement of the dollar amount due to each taxing 29.14 authority and the amount of the state determined school tax from 29.15 the parcel of real property for which a particular tax statement 29.16 is prepared. The dollar amounts attributable to the county, the 29.17 state determined school tax, the voter approved school tax, the 29.18 other local school tax, the township or municipality, and the 29.19 total of the metropolitan special taxing districts as defined in 29.20 section 275.065, subdivision 3, paragraph (i), must be 29.21 separately stated. The amounts due all other special taxing 29.22 districts, if any, may be aggregated. The amount of the tax on 29.23 homesteads qualifying under the senior citizens' property tax 29.24 deferral program under chapter 290B is the total amount of 29.25 property tax before subtraction of the deferred property tax 29.26 amount. The amount of the tax on contamination value imposed 29.27 under sections 270.91 to 270.98, if any, must also be separately 29.28 stated. The dollar amounts, including the dollar amount of any 29.29 special assessments, may be rounded to the nearest even whole 29.30 dollar. For purposes of this section whole odd-numbered dollars 29.31 may be adjusted to the next higher even-numbered dollar. The 29.32 amount of market value excluded under section 273.11, 29.33 subdivision 16, if any, must also be listed on the tax 29.34 statement. The statement shall include the following sentences, 29.35 printed in upper case letters in boldface print: "EVEN THOUGH 29.36 THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX 30.1 REVENUES, IT SETS THE AMOUNT OF THE STATE-DETERMINED SCHOOL TAX 30.2 LEVY. THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY 30.3 PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT." 30.4 (b) The property tax statements for manufactured homes and 30.5 sectional structures taxed as personal property shall contain 30.6 the same information that is required on the tax statements for 30.7 real property. 30.8 (c) Real and personal property tax statements must contain 30.9 the following information in the order given in this paragraph. 30.10 The information must contain the current year tax information in 30.11 the right column with the corresponding information for the 30.12 previous year in a column on the left: 30.13 (1) the property's estimated market value under section 30.14 273.11, subdivision 1; 30.15 (2) the property's taxable market value after reductions 30.16 under section 273.11, subdivisions 1a and 16; 30.17 (3) the property's gross tax, calculated by adding the 30.18 property's total property tax to the sum of the aids enumerated 30.19 in clause (4); 30.20 (4) a total of the following aids: 30.21 (i) education aids payable under chapters 122A, 123A, 123B, 30.22 124D, 125A, 126C, and 127A; 30.23 (ii) local government aids for cities, towns, and counties 30.24 under chapter 477A; 30.25 (iii) disparity reduction aid under section 273.1398; and 30.26 (iv) homestead and agricultural credit aid under section 30.27 273.1398; 30.28 (5) for homestead residential and agricultural properties, 30.29 theeducationhomestead credit under section273.1382273.1387; 30.30 (6) any credits received under sections 273.119; 273.123; 30.31 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 30.32 473H.10, except that the amount of credit received under section 30.33 273.135 must be separately stated and identified as "taconite 30.34 tax relief"; and 30.35 (7) the net tax payable in the manner required in paragraph 30.36 (a). 31.1 (d) If the county uses envelopes for mailing property tax 31.2 statements and if the county agrees, a taxing district may 31.3 include a notice with the property tax statement notifying 31.4 taxpayers when the taxing district will begin its budget 31.5 deliberations for the current year, and encouraging taxpayers to 31.6 attend the hearings. If the county allows notices to be 31.7 included in the envelope containing the property tax statement, 31.8 and if more than one taxing district relative to a given 31.9 property decides to include a notice with the tax statement, the 31.10 county treasurer or auditor must coordinate the process and may 31.11 combine the information on a single announcement. 31.12 The commissioner of revenue shall certify to the county 31.13 auditor the actual or estimated aids enumerated in clause (4) 31.14 that local governments will receive in the following year. The 31.15 commissioner must certify this amount by January 1 of each year. 31.16 [EFFECTIVE DATE.] This section is effective for taxes 31.17 payable in 2002 and subsequent years. 31.18 Sec. 17. [REPEALER.] 31.19 Minnesota Statutes 2000, sections 273.13, subdivision 24a; 31.20 273.1382; and 275.08, subdivision 1e, are repealed. 31.21 [EFFECTIVE DATE.] This section is effective for taxes 31.22 payable in 2002 and subsequent years.