SF 1054

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:18am

A bill for an act
relating to taxation; abolishing levy limits; eliminating truth-in-taxation hearing
requirements and temporarily suspending advertising requirements; modifying
publication correction requirements; increasing the property tax amount for
which installment payments may be made; amending Minnesota Statutes
2008, sections 123B.10, subdivision 1; 275.065, subdivisions 3, 5a, 6; 275.16;
275.62, subdivision 1; 279.01, subdivision 1; 279.10; 375.194, subdivision
5; 383A.75, subdivision 3; 446A.086, subdivision 8; 465.719, subdivision 9;
473.13, subdivision 1; 473.167, subdivision 3; 473.249, subdivision 1; 473.253,
subdivision 1; repealing Minnesota Statutes 2008, sections 275.065, subdivisions
6b, 6c, 8, 9, 10; 275.70; 275.71; 275.72; 275.73; 275.74; 275.75.

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

Section 1.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begin include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing, deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish the information in a qualified newspaper of general circulation
in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the
case of a town, or in the case of the state general tax, the final tax amount will be its
proposed tax. deleted text begin In the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy. deleted text end new text begin The notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authorities'
regularly scheduled meetings in which the budget and levy will be discussed and the final
budget and levy determined. The taxing authorities must provide the county auditor with
the information to be included in the notice. new text end It must deleted text begin clearly state the time and place of
each taxing authority's meeting, deleted text end new text begin provide new text end a telephone number for the taxing authority that
taxpayers may call if they have questions related to the notice deleted text begin , deleted text end and an address where
comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) deleted text begin a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;
deleted text end

deleted text begin (4) deleted text end amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

deleted text begin (5) deleted text end new text begin (4) new text end amounts necessary to pay tort judgments against the taxing authority that
become final after the date the proposed taxes are certified; and

deleted text begin (6) deleted text end new text begin (5) new text end the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision deleted text begin , subdivisions deleted text end new text begin and subdivision new text end 5a deleted text begin and 6 deleted text end ,
"metropolitan special taxing districts" means the following taxing districts in the
seven-county metropolitan area that levy a property tax for any of the specified purposes
listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy deleted text begin and shall be discussed at that
county's public hearing deleted text end .

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 275.065, subdivision 5a, is amended to read:

Subd. 5a.

Public advertisement.

(a) new text begin Except for property taxes levied in 2009 and
2010, new text end a city that has a population of more than 2,500, county, a metropolitan special taxing
district as defined in subdivision 3, paragraph (i), a regional library district established
under section 134.201, or school district shall advertise in a newspaper a notice of its
intent to adopt a budget and property tax levy or, in the case of a school district, to review
its current budget and proposed property taxes payable in the following year, at a public
hearing, if a public hearing is required under subdivision 6. The notice must be published
not less than two business days nor more than six business days before the hearing.

The advertisement must be at least one-eighth page in size of a standard-size or a
tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The advertisement must be
published in an official newspaper of general circulation in the taxing authority. The
newspaper selected must be one of general interest and readership in the community, and
not one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week.

For purposes of this section, the metropolitan special taxing district's advertisement
must only be published in the Minneapolis Star and Tribune and the Saint Paul Pioneer
Press.

In addition to other requirements, a county and a city having a population of
more than 2,500 must show in the public advertisement required under this subdivision
the current local tax rate, the proposed local tax rate if no property tax levy increase
is adopted, and the proposed rate if the proposed levy is adopted. For purposes of this
subdivision, "local tax rate" means the city's or county's net tax capacity levy divided by
the city's or county's taxable net tax capacity.

(b) Subject to the provisions of paragraph (g), the advertisement for school districts,
metropolitan special taxing districts, and regional library districts must be in the following
form, except that the notice for a school district may include references to the current
budget in regard to proposed property taxes.

"NOTICE OF

PROPOSED PROPERTY TAXES

(School District/Metropolitan

Special Taxing District/Regional

Library District) of .........

The governing body of ........ will soon hold budget hearings and vote on the property
taxes for (metropolitan special taxing district/regional library district services that will be
provided in (year)/school district services that will be provided in (year) and (year)).

NOTICE OF PUBLIC HEARING:

All concerned citizens are invited to attend a public hearing and express their opinions
on the proposed (school district/metropolitan special taxing district/regional library
district) budget and property taxes, or in the case of a school district, its current budget
and proposed property taxes, payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address)."

(c) Subject to the provisions of paragraph (g), the advertisement for cities and
counties must be in the following form.

"NOTICE OF PROPOSED

TOTAL BUDGET AND PROPERTY TAXES

The (city/county) governing body or board of commissioners will hold a public hearing to
discuss the budget and to vote on the amount of property taxes to collect for services the
(city/county) will provide in (year).

SPENDING: The total budget amounts below compare (city's/county's) (year) total actual
budget with the amount the (city/county) proposes to spend in (year).

(Year) Total Actual Budget			Proposed (Year) Budget			Change from (Year)-(Year)
	$ .			$ .			.....%

TAXES: The property tax amounts below compare that portion of the current budget
levied in property taxes in (city/county) for (year) with the property taxes the (city/county)
proposes to collect in (year).

(Year) Property Taxes			Proposed (Year) Property Taxes			Change from (Year)-(Year)
	$ .			$ .			.....%

LOCAL TAX RATE COMPARISON: The current local tax rate, the local tax rate if no tax
levy increase is adopted, and the proposed local tax rate if the proposed levy is adopted.

(Year) Tax Rate			(Year) Tax Rate if NO Levy Increase			(Year) Proposed Tax Rate
	.			.			.

ATTEND THE PUBLIC HEARING

All (city/county) residents are invited to attend the public hearing of the (city/county) to
express your opinions on the budget and the proposed amount of (year) property taxes.
The hearing will be held on:

(Month/Day/Year/Time)

(Location/Address)

If the discussion of the budget cannot be completed, a time and place for continuing the
discussion will be announced at the hearing. You are also invited to send your written
comments to:

(City/County)

(Location/Address)"

(d) For purposes of this subdivision, the budget amounts listed on the advertisement
mean:

(1) for cities, the total government fund expenditures, as defined by the state auditor
under section 471.6965, less any expenditures for improvements or services that are
specially assessed or charged under chapter 429, 430, 435, or the provisions of any other
law or charter; and

(2) for counties, the total government fund expenditures, as defined by the state
auditor under section 375.169, less any expenditures for direct payments to recipients or
providers for the human service aids listed below:

(i) Minnesota family investment program under chapters 256J and 256K;

(ii) medical assistance under sections 256B.041, subdivision 5, and 256B.19,
subdivision 1;

(iii) general assistance medical care under section 256D.03, subdivision 6;

(iv) general assistance under section 256D.03, subdivision 2;

(v) Minnesota supplemental aid under section 256D.36, subdivision 1;

(vi) preadmission screening under section 256B.0911, and alternative care grants
under section 256B.0913;

(vii) general assistance medical care claims processing, medical transportation and
related costs under section 256D.03, subdivision 4;

(viii) medical transportation and related costs under section 256B.0625, subdivisions
17 to 18a;

(ix) group residential housing under section 256I.05, subdivision 8, transferred
from programs in clauses (iv) and (v); or

(x) any successor programs to those listed in clauses (i) to (ix).

(e) A city with a population of over 500 but not more than 2,500 that is required to
hold a public hearing under subdivision 6 must advertise by posted notice as defined in
section 645.12, subdivision 1. The advertisement must be posted at the time provided in
paragraph (a). It must be in the form required in paragraph (b).

(f) For purposes of this subdivision, the population of a city is the most recent
population as determined by the state demographer under section 4A.02.

(g) The commissioner of revenue shall annually prescribe the specific form and
format of the advertisements required under this subdivision, including such details as
font size and style, and spacing for the required items. The commissioner may prescribe
alternate and additional language for the advertisement for a taxing authority or for groups
of taxing authorities. At least two weeks before November 29 each year, the commissioner
shall provide a copy of the prescribed advertisements to the chairs of the committees of
the house of representatives and the senate with jurisdiction over taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Public hearing; deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
deleted text end

deleted text begin (m) deleted text end new text begin (a) new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; and

(7) the amount required under section 126C.55.

deleted text begin (n) deleted text end new text begin (b) new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o) deleted text end new text begin (c) new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2008, section 275.16, is amended to read:

275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.

If any such municipality shall return to the county auditor a levy greater than
permitted by chapters 123A, 123B, 124D, 126C, and 136C, new text begin and new text end sections 275.124 to
275.16, deleted text begin and 275.70 to 275.74, deleted text end such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit; provided, if such levy shall include
any levy for the payment of bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the remainder of the levies shall
be reduced so that the total thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will permit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2008, section 275.62, subdivision 1, is amended to read:

Subdivision 1.

Report on taxes levied.

The commissioner of revenue shall establish
procedures for the annual reporting of local government levies. Each local governmental
unit shall submit a report to the commissioner by December 30 of the year in which the
tax is levied. The report shall include, but is not limited to, information on the amount of
the tax levied by the governmental unit for the following purposes:

(1) social services and related programs, which include taxes levied for the purposes
defined in Minnesota Statutes 1991 Supplement, section 275.50, subdivision 5, clauses
(a), (j), and (v);

(2) the amounts levied for each of the purposes listed in new text begin Minnesota Statutes 2008,
new text end section 275.70, subdivision 5; and

(3) other levies, which include the taxes levied for all purposes not included in
clause (1), (2), or (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2008, section 279.01, subdivision 1, is amended to read:

Subdivision 1.

Due dates; penalties.

Except as provided in subdivision 3 or 4, on
May 16 or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
at a rate of two percent on homestead property until May 31 and four percent on June 1.
The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
the postmark date on the envelope containing the property tax statements, whichever is
later, on commercial use real property used for seasonal residential recreational purposes
and classified as class 1c or 4c, and on other commercial use real property classified as
class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
class 3a property is earned during the months of May, June, July, and August. In order for
the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
or 21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, without penalty, the owner of the property must attach an affidavit to the
payment attesting to compliance with the income provision of this subdivision. Thereafter,
for both homestead and nonhomestead property, on the first day of each month beginning
July 1, up to and including October 1 following, an additional penalty of one percent for
each month accrues and is charged on all such unpaid taxes provided that if the due date
was extended beyond May 15 as the result of any delay in mailing property tax statements
no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is
not paid by the extended due date, then all penalties that would have accrued if the due
date had been May 15 shall be charged. When the taxes against any tract or lot exceed
deleted text begin $50 deleted text end new text begin $250 new text end , one-half thereof may be paid prior to May 16 or 21 days after the postmark
date on the envelope containing the property tax statement, whichever is later; and, if so
paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
16 following, without penalty; but, if not so paid, then a penalty of two percent accrues
thereon for homestead property and a penalty of four percent on nonhomestead property.
Thereafter, for homestead property, on the first day of November an additional penalty of
four percent accrues and on the first day of December following, an additional penalty of
two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November and December following, an additional penalty of
four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and thereupon
no penalty attaches to the remaining one-half until October 16 following.

This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding deleted text begin $50 deleted text end new text begin $250 new text end , payments may be
made in installments as provided in this subdivision.

The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 279.10, is amended to read:

279.10 PUBLICATION CORRECTED.

Immediately after preparing forms for printing such notice and list, and at least five
days before the first day for the publication thereof, every deleted text begin such deleted text end publisher shall furnish
proof of the proposed publication to the county auditor for correction. When deleted text begin such deleted text end new text begin the new text end copy
has been corrected, the auditor shall return deleted text begin the same deleted text end new text begin it new text end to the printer, who shall publish it
as corrected. On the first day on which deleted text begin such deleted text end new text begin the new text end notice and list are published, the publisher
shall mail a copy of the newspaper containing deleted text begin the same deleted text end new text begin the notice and list new text end to the auditor. If
during the publication of the notice and list, or within ten days after the last publication
thereof, the auditor deleted text begin shall discover deleted text end new text begin discovers new text end that deleted text begin such deleted text end new text begin the new text end publication deleted text begin is invalid deleted text end new text begin contains an
error new text end , the auditor shall deleted text begin forthwith deleted text end direct the publisher to deleted text begin republish the same as corrected deleted text end new text begin
publish the correct information new text end for an additional period of two weeks. new text begin The auditor does
not have to direct the publisher to republish the entire list. new text end The publisher, if not neglectful,
deleted text begin shall be deleted text end new text begin is new text end entitled to deleted text begin the same deleted text end compensation as allowed by law for deleted text begin the original deleted text end publication new text begin
of the corrected information new text end , but shall receive no further compensation deleted text begin therefor deleted text end if deleted text begin such deleted text end
new text begin the new text end republication is necessary by reason of the neglect of the publisher.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:

Subd. 5.

Determination of county tax rate.

The eligible county's proposed and
final tax rates shall be determined by dividing the certified levy by the total taxable net tax
capacity, without regard to any abatements granted under this section. deleted text begin The county board
shall make available the estimated amount of the abatement at the public hearing under
section 275.065, subdivision 6. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:

Subd. 3.

Duties.

The committee is authorized to and shall meet from time to time
to make appropriate recommendations for the efficient and effective use of property tax
dollars raised by the jurisdictions for programs, buildings, and operations. In addition,
the committee shall:

(1) identify trends and factors likely to be driving budget outcomes over the next
five years with recommendations for how the jurisdictions should manage those trends
and factors to increase efficiency and effectiveness;

(2) agree, by October 1 of each year, on the appropriate level of overall property tax
levy for the three jurisdictions and publicly report such to the governing bodies of each
jurisdiction for ratification or modification by resolution; new text begin and
new text end

(3) deleted text begin plan for the joint truth-in-taxation hearings under section 275.065, subdivision
8; and
deleted text end

deleted text begin (4) deleted text end identify, by December 31 of each year, areas of the budget to be targeted in the
coming year for joint review to improve services or achieve efficiencies.

In carrying out its duties, the committee shall consult with public employees of
each jurisdiction and with other stakeholders of the city, county, and school district, as
appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:

Subd. 8.

Tax levy for repayment.

(a) With the approval of the authority, a
governmental unit may levy in the year the state makes a payment under this section an
amount up to the amount necessary to provide funds for the repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental
unit. The proceeds of this levy may be used only for this purpose unless they exceed the
amount actually due. Any excess must be used to repay other state payments made under
this section or must be deposited in the debt redemption fund of the governmental unit.
The amount of aids to be reduced to repay the state are decreased by the amount levied.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the authority shall require the governmental unit to certify a property tax levy in
an amount up to the amount necessary to provide funds for repayment of the amount paid
by the state plus interest through the date of estimated repayment by the governmental unit.
To prevent undue hardship, the authority may allow the governmental unit to certify the
levy over a five-year period. The proceeds of the levy may be used only for this purpose
unless they are in excess of the amount actually due, in which case the excess must be used
to repay other state payments made under this section or must be deposited in the debt
redemption fund of the governmental unit. If the authority orders the governmental unit to
levy, the amount of aids reduced to repay the state are decreased by the amount levied.

deleted text begin (c) A levy under this subdivision is an increase in the levy limits of the governmental
unit for purposes of section 275.065, subdivision 6, and must be explained as a specific
increase at the meeting required under that provision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:

Subd. 9.

Application of other laws.

A corporation created by a political subdivision
under this section must comply with every law that applies to the political subdivision,
as if the corporation is a part of the political subdivision, unless the resolution ratifying
creation of the corporation specifically exempts the corporation from part or all of a law.
If the resolution exempts the corporation from part or all of a law, the resolution must
make a detailed and specific finding as to why the corporation cannot fulfill its purpose if
the corporation is subject to that law. A corporation may not be exempted from chapter
13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records
management, or chapter 13, the Minnesota Government Data Practices Act. Any affected
or interested person may bring an action in district court to void the resolution on the
grounds that the findings are not sufficiently detailed and specific, or that the corporation
can fulfill its purpose if it is subject to the law from which the resolution exempts the
corporation. Laws that apply to a political subdivision that also apply to a corporation
created by a political subdivision under this subdivision include, but are not limited to:

(1) chapter 13D, the Minnesota Open Meeting Law;

(2) chapter 13, the Minnesota Government Data Practices Act;

(3) section 471.345, the Uniform Municipal Contracting Law;

(4) sections 43A.17, limiting the compensation of employees based on the governor's
salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722,
governing severance pay;

(5) deleted text begin section 275.065, providing for truth-in-taxation hearings. If any tax revenues of
the political subdivision will be appropriated to the corporation, the corporation's annual
operating and capital budgets must be included in the truth-in-taxation hearing of the
political subdivision that created the corporation;
deleted text end

deleted text begin (6) deleted text end if the corporation issues debt, its debt is included in the political subdivision's
debt limit if it would be included if issued by the political subdivision, and issuance of the
debt is subject to the election and other requirements of chapter 475 and section 471.69;

deleted text begin (7) deleted text end new text begin (6) new text end section 471.895, prohibiting acceptance of gifts from interested parties, and
sections 471.87 to 471.89, relating to interests in contracts;

deleted text begin (8) deleted text end new text begin (7) new text end chapter 466, relating to municipal tort liability;

deleted text begin (9) deleted text end new text begin (8) new text end chapter 118A, requiring deposit insurance or bond or pledged collateral for
deposits;

deleted text begin (10) deleted text end new text begin (9) new text end chapter 118A, restricting investments;

deleted text begin (11) deleted text end new text begin (10) new text end section 471.346, requiring ownership of vehicles to be identified;

deleted text begin (12) deleted text end new text begin (11) new text end sections 471.38 to 471.41, requiring claims to be in writing, itemized, and
approved by the governing board before payment can be made; and

deleted text begin (13) deleted text end new text begin (12) new text end the corporation cannot make advances of pay, make or guarantee loans to
employees, or provide in-kind benefits unless authorized by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 13.

Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:

Subdivision 1.

Budget.

(a) On or before December 20 of each year new text begin , new text end the council deleted text begin ,
after the public hearing required in section 275.065, deleted text end shall adopt a final budget covering its
anticipated receipts and disbursements for the ensuing year and shall decide upon the total
amount necessary to be raised from ad valorem tax levies to meet its budget. The budget
shall state in detail the expenditures for each program to be undertaken, including the
expenses for salaries, consultant services, overhead, travel, printing, and other items. The
budget shall state in detail the capital expenditures of the council for the budget year, based
on a five-year capital program adopted by the council and transmitted to the legislature.
After adoption of the budget and no later than five working days after December 20, the
council shall certify to the auditor of each metropolitan county the share of the tax to be
levied within that county, which must be an amount bearing the same proportion to the
total levy agreed on by the council as the net tax capacity of the county bears to the net tax
capacity of the metropolitan area. The maximum amount of any levy made for the purpose
of this chapter may not exceed the limits set by the statute authorizing the levy.

(b) Each even-numbered year the council shall prepare for its transit programs a
financial plan for the succeeding three calendar years, in half-year segments. The financial
plan must contain schedules of user charges and any changes in user charges planned or
anticipated by the council during the period of the plan. The financial plan must contain a
proposed request for state financial assistance for the succeeding biennium.

(c) In addition, the budget must show for each year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year
and estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as
the council may prescribe; and

(3) the estimated source and use of pass-through funds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end

Sec. 14.

Minnesota Statutes 2008, section 473.167, subdivision 3, is amended to read:

Subd. 3.

Tax.

The council may levy a tax on all taxable property in the metropolitan
area, as defined in section 473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
by the council, levied, and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and any other law and shall not
affect the amount or rate of taxes which may be levied by the council or any metropolitan
agency or local governmental unit. The amount of the levy shall be as determined and
certified by the council, provided that the tax levied by the Metropolitan Council for the
right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004
and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's
property tax levy limitation under this subdivision for the previous year, multiplied by
(2) one plus a percentage equal to the growth in the implicit price deflator as defined
in section deleted text begin 275.70 deleted text end new text begin 275.025 new text end , subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2008, section 473.249, subdivision 1, is amended to read:

Subdivision 1.

Indexed limit.

(a) The Metropolitan Council may levy a tax on all
taxable property in the metropolitan area defined in section 473.121 to provide funds for
the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other
responsibilities of the council as provided by law. This tax for general purposes shall be
levied and collected in the manner provided by section 473.13.

(b) The property tax levied by the Metropolitan Council for general purposes shall
not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable
in 2005.

(c) The property tax levy limitation for general purposes for taxes payable in 2006
and subsequent years shall not exceed the product of: (1) the Metropolitan Council's
property tax levy limitation for general purposes for the previous year determined under
this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit
price deflator as defined in section deleted text begin 275.70 deleted text end new text begin 275.025 new text end , subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2008, section 473.253, subdivision 1, is amended to read:

Subdivision 1.

Sources of funds.

The council shall credit to the livable communities
demonstration account the revenues provided in this subdivision. This tax shall be levied
and collected in the manner provided by section 473.13. The levy shall not exceed the
following amount for the years specified:

(1) for taxes payable in 2004 and 2005, $8,259,070; and

(2) for taxes payable in 2006 and subsequent years, the product of (i) the property
tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a
percentage equal to the growth in the implicit price deflator as defined in section deleted text begin 275.70 deleted text end new text begin
275.025 new text end , subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2009, payable
in 2010, and thereafter.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 275.065, subdivisions 6b, 6c, 8, 9, and 10, new text end new text begin are
repealed.
new text end

new text begin (b) Minnesota Statutes 2008, sections 275.70; 275.71; 275.72; 275.73; 275.74;
and 275.75, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
new text end