1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; adopting federal income tax law 1.3 changes; modifying certain sales and excise tax rates, 1.4 bases, and exemptions; modifying provisions relating 1.5 to local excise taxes; restricting property tax 1.6 levies; modifying certain duties imposed on local 1.7 units of government and the department of revenue; 1.8 modifying property tax exemption, valuation, and 1.9 classification provisions; adjusting certain state aid 1.10 distribution provisions; providing for deduction of 1.11 property tax refunds from property taxes; authorizing 1.12 certain exceptions to tax increment financing 1.13 provisions; providing for establishment of special 1.14 service districts; authorizing issuance of bonds and 1.15 tax anticipation certificates; modifying certain 1.16 taconite occupation and production provisions; 1.17 adjusting the amount of the budget reserve; modifying 1.18 the duties of the board of government innovation and 1.19 cooperation; appropriating money; amending Minnesota 1.20 Statutes 1994, sections 6.745, subdivision 1; 16A.152, 1.21 subdivision 1; 116J.556; 134.34, subdivision 4a; 1.22 216B.16, by adding a subdivision; 216C.01, 1.23 subdivisions 1a and 1b; 246.18, subdivision 4, and by 1.24 adding subdivisions; 254B.02, subdivision 3; 256H.09, 1.25 subdivision 3; 270A.03, subdivision 7; 270A.08, 1.26 subdivision 1; 270B.12, by adding subdivisions; 1.27 272.02, subdivision 1; 273.11, subdivision 16; 1.28 273.124, subdivisions 1 and 13; 273.13, subdivisions 1.29 24 and 25; 273.1399, subdivision 6, and by adding a 1.30 subdivision; 273.37, by adding a subdivision; 274.01, 1.31 subdivision 1; 275.065, subdivision 3; 276.04, 1.32 subdivision 2; 276.09; 276.111; 276.131; 279.01, 1.33 subdivision 1, and by adding a subdivision; 279.09; 1.34 279.10; 281.23, subdivision 3; 289A.60, subdivision 1.35 12; 290.01, subdivision 19; 290A.03, subdivision 13; 1.36 290A.04, subdivision 2h; 290A.07; 290A.15; 290A.18; 1.37 296.01, subdivisions 30, 34, and by adding 1.38 subdivisions; 296.02, subdivisions 1, 1a, and 1b; 1.39 296.025, subdivisions 1, 1a, and by adding a 1.40 subdivision; 296.0261, by adding a subdivision; 1.41 297A.01, subdivision 3, and by adding a subdivision; 1.42 297A.135, subdivision 1; 297A.15, by adding a 1.43 subdivision; 297A.25, subdivisions 9, 11, and 59; 1.44 297A.45; 298.01, subdivision 4; 298.227; 298.24, 1.45 subdivision 1; 298.25; 298.28, subdivision 9a; 1.46 298.296, subdivision 4; 349A.10, subdivision 5; 2.1 375.169; 375.83; 465.798; 465.799; 465.801; 465.81, 2.2 subdivision 1; 465.82, subdivision 2; 465.84; 465.85; 2.3 465.87; 469.169, subdivision 9, and by adding a 2.4 subdivision; 471.6965; 477A.011, subdivision 36; Laws 2.5 1986, chapter 400, section 44; Laws 1991, chapter 291, 2.6 article 8, section 28, subdivision 1; Laws 1992, 2.7 chapter 511, article 2, sections 45, subdivision 7, 2.8 and by adding a subdivision; and 46, subdivision 7, 2.9 and by adding a subdivision; proposing coding for new 2.10 law in Minnesota Statutes, chapters 13; 16A; 270; 276; 2.11 290A; 297A; 410; 465; 473; repealing Minnesota 2.12 Statutes 1994, sections 124.01; 124.05; 124.06; 2.13 124.07; 124.76; 124.82; 124.829; 124.83; 124.84; 2.14 124.85; 124.86; 124.90; 124.91; 124.912; 124.914; 2.15 124.916; 124.918; 124.95; 124.961; 124.962; 124.97; 2.16 124A.02, subdivisions 16, 23, and 24; 124A.03, 2.17 subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 2.18 124A.0311; 124A.032; 124A.04; 124A.22, subdivisions 1, 2.19 2, 3, 4, 4a, 4b, 6, 6a, 8, and 9; 124A.23; 124A.24; 2.20 124A.26, subdivisions 1, 2, and 3; 124A.27; 124A.28; 2.21 124A.29, subdivision 2; 245.48; 256H.12, subdivision 2.22 3; 273.13; 273.135; 273.136; 273.1391; 273.1399; 2.23 296.0261; 297A.136; 469.175, subdivision 7a; 473F.001; 2.24 473F.01; 473F.02; 473F.03; 473F.05; 473F.06; 473F.07; 2.25 473F.08; 473F.09; 473F.10; 473F.11; 473F.13; 477A.011; 2.26 477A.012; 477A.0121; 477A.0122; 477A.013; 477A.0132; 2.27 477A.014; 477A.015; 477A.016; 477A.017; 477A.03; 2.28 477A.11; 477A.12; 477A.13; 477A.14; 477A.15; Laws 2.29 1991, chapter 265, article 7, section 35. 2.30 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.31 ARTICLE 1 2.32 FEDERAL UPDATE 2.33 Section 1. Minnesota Statutes 1994, section 290.01, 2.34 subdivision 19, is amended to read: 2.35 Subd. 19. [NET INCOME.] The term "net income" means the 2.36 federal taxable income, as defined in section 63 of the Internal 2.37 Revenue Code of 1986, as amended through the date named in this 2.38 subdivision, incorporating any elections made by the taxpayer in 2.39 accordance with the Internal Revenue Code in determining federal 2.40 taxable income for federal income tax purposes, and with the 2.41 modifications provided in subdivisions 19a to 19f. 2.42 In the case of a regulated investment company or a fund 2.43 thereof, as defined in section 851(a) or 851(h) of the Internal 2.44 Revenue Code, federal taxable income means investment company 2.45 taxable income as defined in section 852(b)(2) of the Internal 2.46 Revenue Code, except that: 2.47 (1) the exclusion of net capital gain provided in section 2.48 852(b)(2)(A) of the Internal Revenue Code does not apply; and 2.49 (2) the deduction for dividends paid under section 2.50 852(b)(2)(D) of the Internal Revenue Code must be applied by 3.1 allowing a deduction for capital gain dividends and 3.2 exempt-interest dividends as defined in sections 852(b)(3)(C) 3.3 and 852(b)(5) of the Internal Revenue Code. 3.4 The net income of a real estate investment trust as defined 3.5 and limited by section 856(a), (b), and (c) of the Internal 3.6 Revenue Code means the real estate investment trust taxable 3.7 income as defined in section 857(b)(2) of the Internal Revenue 3.8 Code. 3.9 The net income of a designated settlement fund as defined 3.10 in section 468B(d) of the Internal Revenue Code means the gross 3.11 income as defined in section 468B(b) of the Internal Revenue 3.12 Code. 3.13 The Internal Revenue Code of 1986, as amended through 3.14 December 31, 1986, shall be in effect for taxable years 3.15 beginning after December 31, 1986. The provisions of sections 3.16 10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 3.17 10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 3.18 Omnibus Budget Reconciliation Act of 1987, Public Law Number 3.19 100-203, the provisions of sections 1001, 1002, 1003, 1004, 3.20 1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 3.21 1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 3.22 6277, and 6282 of the Technical and Miscellaneous Revenue Act of 3.23 1988, Public Law Number 100-647, and the provisions of sections 3.24 7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 3.25 1989, Public Law Number 101-239, shall be effective at the time 3.26 they become effective for federal income tax purposes. 3.27 The Internal Revenue Code of 1986, as amended through 3.28 December 31, 1987, shall be in effect for taxable years 3.29 beginning after December 31, 1987. The provisions of sections 3.30 4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 3.31 6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 3.32 6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 3.33 Act of 1988, Public Law Number 100-647, the provisions of 3.34 sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 3.35 of 1989, Public Law Number 101-239, and the provisions of 3.36 section 11702 of the Revenue Reconciliation Act of 1990, Public 4.1 Law Number 101-508, shall become effective at the time they 4.2 become effective for federal tax purposes. 4.3 The Internal Revenue Code of 1986, as amended through 4.4 December 31, 1988, shall be in effect for taxable years 4.5 beginning after December 31, 1988. The provisions of sections 4.6 7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 4.7 7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 4.8 7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 4.9 Reconciliation Act of 1989, Public Law Number 101-239, the 4.10 provision of section 1401 of the Financial Institutions Reform, 4.11 Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 4.12 and the provisions of sections 11701 and 11703 of the Revenue 4.13 Reconciliation Act of 1990, Public Law Number 101-508, shall 4.14 become effective at the time they become effective for federal 4.15 tax purposes. 4.16 The Internal Revenue Code of 1986, as amended through 4.17 December 31, 1989, shall be in effect for taxable years 4.18 beginning after December 31, 1989. The provisions of sections 4.19 11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 4.20 the Revenue Reconciliation Act of 1990, Public Law Number 4.21 101-508, and the provisions of sections 13224 and 13261 of the 4.22 Omnibus Budget Reconciliation Act of 1993, Public Law Number 4.23 103-66, shall become effective at the time they become effective 4.24 for federal purposes. 4.25 The Internal Revenue Code of 1986, as amended through 4.26 December 31, 1990, shall be in effect for taxable years 4.27 beginning after December 31, 1990. 4.28 The provisions of section 13431 of the Omnibus Budget 4.29 Reconciliation Act of 1993, Public Law Number 103-66, shall 4.30 become effective at the time they became effective for federal 4.31 purposes. 4.32 The Internal Revenue Code of 1986, as amended through 4.33 December 31, 1991, shall be in effect for taxable years 4.34 beginning after December 31, 1991. 4.35 The provisions of sections 1936 and 1937 of the 4.36 Comprehensive National Energy Policy Act of 1992, Public Law 5.1 Number 102-486, and the provisions of sections 13101, 13114, 5.2 13122, 13141, 13150, 13151, 13174, 13239, 13301, and 13442 of 5.3 the Omnibus Budget Reconciliation Act of 1993, Public Law Number 5.4 103-66, shall become effective at the time they become effective 5.5 for federal purposes. 5.6 The Internal Revenue Code of 1986, as amended through 5.7 December 31, 1992, shall be in effect for taxable years 5.8 beginning after December 31, 1992. 5.9 The provisions of sections 13116, 13121, 13206, 13210, 5.10 13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of 5.11 the Omnibus Budget Reconciliation Act of 1993, Public Law Number 5.12 103-66, shall become effective at the time they become effective 5.13 for federal purposes. 5.14 The Internal Revenue Code of 1986, as amended through 5.15 December 31, 1993, shall be in effect for taxable years 5.16 beginning after December 31, 1993. 5.17 The provision of section 741 of Legislation to Implement 5.18 Uruguay Round of General Agreement on Tariffs and Trade, Public 5.19 Law Number 103-465, and the provisions of sections 1, 2, and 3, 5.20 of the Self-Employed Health Insurance Act of 1995, Public Law 5.21 Number 104-... shall become effective at the time they become 5.22 effective for federal purposes. 5.23 The Internal Revenue Code of 1986, as amended through 5.24 December 31, 1994, shall be in effect for taxable years 5.25 beginning after December 31, 1994. 5.26 Except as otherwise provided, references to the Internal 5.27 Revenue Code in subdivisions 19a to 19g mean the code in effect 5.28 for purposes of determining net income for the applicable year. 5.29 Sec. 2. [FEDERAL CHANGES.] 5.30 The changes made by sections 721, 722, 723, and 744 of 5.31 Legislation to Implement Uruguay Round of General Agreement on 5.32 Tariffs and Trade, Public Law Number 103-465 and section 4 of 5.33 the Self-Employed Health Insurance Act of 1995, Public Law 5.34 Number 104-..., which affect the computation of the Minnesota 5.35 working family credit under Minnesota Statutes, section 5.36 290.0671, subdivision 1, and the computation of the substantial 6.1 understatement of liability penalty of Minnesota Statutes, 6.2 section 289A.60, subdivision 4, shall become effective at the 6.3 same time the changes become effective for federal purposes. 6.4 Sec. 3. [INSTRUCTION TO REVISOR.] 6.5 In the next edition of Minnesota Statutes, the revisor of 6.6 statutes shall substitute the phrase "Internal Revenue Code of 6.7 1986, as amended through April 15, 1995," for the words 6.8 "Internal Revenue Code of 1986, as amended through December 31, 6.9 1993," wherever the phrase occurs in chapters 289A, 290, 290A, 6.10 291, 297, 298, and 469, except section 290.01, subdivision 19. 6.11 ARTICLE 2 6.12 SALES AND EXCISE TAXES 6.13 Section 1. Minnesota Statutes 1994, section 216C.01, 6.14 subdivision 1a, is amended to read: 6.15 Subd. 1a. [ALTERNATIVE FUEL.] "Alternative fuel" means 6.16 natural gas; liquefied petroleum gas; hydrogen; coal-derived 6.17 liquefied fuels; electricity; methanol, denatured ethanol, and 6.18 other alcohols; mixtures containing 85 percent or more, or other 6.19 percentage as may be set by regulation by the Secretary of the 6.20 United States Department of Energy, by volume of methanol, 6.21 denatured ethanol, and other alcohols with gasoline or other 6.22 fuels; fuels other than alcohol that are derived from biological 6.23 materials; and other fuel that the Secretary of the United 6.24 States Department of Energy determines by regulation to be an 6.25 alternative fuel within the meaning of section 301(2) of the 6.26 National Energy Policy Act of 1992 and intended for use in motor 6.27 vehicles. 6.28 Sec. 2. Minnesota Statutes 1994, section 216C.01, 6.29 subdivision 1b, is amended to read: 6.30 Subd. 1b. [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 6.31 vehicle" means a dedicated, flexible, oradual-fuel vehicle 6.32 operated primarily on an alternative fuel. 6.33 Sec. 3. Minnesota Statutes 1994, section 296.01, is 6.34 amended by adding a subdivision to read: 6.35 Subd. 5. [ALTERNATIVE FUEL VEHICLE.] "Alternative fuel 6.36 vehicle" means a dedicated, flexible, or dual-fuel vehicle 7.1 operated primarily on alternative transportation fuel. 7.2 Sec. 4. Minnesota Statutes 1994, section 296.01, is 7.3 amended by adding a subdivision to read: 7.4 Subd. 11a. [COMPRESSED NATURAL GAS.] "Compressed natural 7.5 gas" or CNG means natural gas, primarily methane, condensed 7.6 under high pressure and stored in specially designed storage 7.7 tanks at between 2,000 and 3,600 pounds per square inch. For 7.8 purposes of this chapter, the energy content of CNG will be 7.9 considered to be 1,000 BTUs per cubic foot. 7.10 Sec. 5. Minnesota Statutes 1994, section 296.01, is 7.11 amended by adding a subdivision to read: 7.12 Subd. 15c. [E85.] "E85" means a petroleum product that is 7.13 a blend of agriculturally derived denatured ethanol and gasoline 7.14 that typically contains 85 percent ethanol by volume, but at a 7.15 minimum must contain at least 60 percent ethanol by volume. For 7.16 the purposes of this chapter, the energy content of E85 will be 7.17 considered to be 82,000 BTUs per gallon. 7.18 Sec. 6. Minnesota Statutes 1994, section 296.01, is 7.19 amended by adding a subdivision to read: 7.20 Subd. 23a. [LIQUEFIED NATURAL GAS.] "Liquefied natural gas" 7.21 or LNG means natural gas, primarily methane, which has been 7.22 condensed through a cryogenic cooling process and is stored in 7.23 special pressurized and insulated storage tanks. For purposes 7.24 of this chapter, the energy content of LNG will be considered to 7.25 be 69,000 BTUs per gallon. 7.26 Sec. 7. Minnesota Statutes 1994, section 296.01, is 7.27 amended by adding a subdivision to read: 7.28 Subd. 23b. [LIQUEFIED PETROLEUM GAS.] "Liquefied petroleum 7.29 gas" or LPG or propane means a product made of short hydrocarbon 7.30 chains and containing primarily propane and butane that is 7.31 stored in specialized tanks at moderate pressure. For purposes 7.32 of this chapter, the energy content of LPG or propane will be 7.33 considered to be 86,000 BTUs per gallon. 7.34 Sec. 8. Minnesota Statutes 1994, section 296.01, is 7.35 amended by adding a subdivision to read: 7.36 Subd. 24b. [M85.] "M85" means a petroleum product that is 8.1 a liquid fuel blend of methanol and gasoline that contains at 8.2 least 85 percent methanol by volume. For the purposes of this 8.3 chapter, the energy content of M85 will be considered to be 8.4 65,000 BTUs per gallon. 8.5 Sec. 9. Minnesota Statutes 1994, section 296.01, 8.6 subdivision 30, is amended to read: 8.7 Subd. 30. [PETROLEUM PRODUCTS.] "Petroleum products" means 8.8 all of the products defined in subdivisions 2, 7, 8, 10, 13, 14, 8.9 15c,and17 to 22, and 24b. 8.10 Sec. 10. Minnesota Statutes 1994, section 296.01, 8.11 subdivision 34, is amended to read: 8.12 Subd. 34. [SPECIAL FUEL.] "Special fuel" means (1) all 8.13 combustible gases and liquid petroleum products or substitutes 8.14 therefor including clear diesel fuel, except gasoline, gasoline 8.15 blended with ethanol, and agricultural alcohol gasoline which 8.16 are delivered into the supply tank of a licensed motor vehicle 8.17 or into storage tanks maintained by an owner or operator of a 8.18 licensed motor vehicle as a source of supply for such vehicle; 8.19 (2) all combustible gases and liquid petroleum products or 8.20 substitutes therefor, except gasoline, gasoline blended with 8.21 ethanol, and agricultural alcohol gasoline, when delivered to a 8.22 licensed special fuel dealer or to the retail service station 8.23 storage of a distributor who has elected to pay the special fuel 8.24 excise tax as provided in section 296.12, subdivision 3; (3) all 8.25 combustible gases and liquid petroleum products or substitutes 8.26 therefor, except gasoline, which are used as aviation fuel; or 8.27 (4) dyed fuel that is being used illegally in a licensed motor 8.28 vehicle. 8.29 Sec. 11. Minnesota Statutes 1994, section 296.02, 8.30 subdivision 1, is amended to read: 8.31 Subdivision 1. [TAX IMPOSED; EXCEPTION FOR QUALIFIED 8.32 SERVICE STATION.] There is imposed an excise tax on gasoline, 8.33 gasoline blended with ethanol, and agricultural alcohol 8.34 gasoline, used in producing and generating power for propelling 8.35 motor vehicles used on the public highways of this state. For 8.36 purposes of this section, gasoline is defined in section 296.01, 9.1 subdivisions 10, 15b, 18, 19, 20, and 24a. This tax is payable 9.2 at the times, in the manner, and by persons specified in this 9.3 chapter. The tax is payable at the rate specified in 9.4 subdivision 1b, subject to the exceptions and reductions 9.5 specified in this section. 9.6 (a) Notwithstanding any other provision of law to the 9.7 contrary, the tax imposed on special fuel sold by a qualified 9.8 service station may not exceed, or the tax on gasoline delivered 9.9 to a qualified service station must be reduced to, a rate not 9.10 more than three cents per gallon above the state tax rate 9.11 imposed on such products sold by a service station in a 9.12 contiguous state located within the distance indicated in clause 9.13 (b). 9.14 (b) A "qualifying service station" means a service station 9.15 located within 7.5 miles, measured by the shortest route by 9.16 public road, from a service station selling like product in the 9.17 contiguous state. 9.18 (c) A qualified service station shall be allowed a credit 9.19 by the supplier or distributor, or both, for the amount of 9.20 reduction computed in accordance with clause (a). 9.21 A qualified service station, before receiving the credit, 9.22 shall be registered with the commissioner of revenue. 9.23 Sec. 12. Minnesota Statutes 1994, section 296.02, 9.24 subdivision 1a, is amended to read: 9.25 Subd. 1a. [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 9.26 The provisions of subdivision 1 do not apply to(1)gasoline 9.27 purchased by a transit system or transit provider receiving 9.28 financial assistance or reimbursement under section 174.24, 9.29 256B.0625, subdivision 17, or 473.384or (2) sales of compressed9.30natural gas or propane for use in vehicles displaying a valid9.31annual alternate fuel permit. 9.32 Sec. 13. Minnesota Statutes 1994, section 296.02, 9.33 subdivision 1b, is amended to read: 9.34 Subd. 1b. [RATES IMPOSED.] The gasoline excise tax is 9.35 imposed at the followingraterates: 9.36 (1) E85 is taxed at the rate of 14.2 cents per gallon; 10.1 (2) M85 is taxed at the rate of 11.4 cents per gallon; and 10.2 (3)For the period on and after May 1, 1988,All other 10.3 gasoline is taxed at the rate of 20 cents per gallon. 10.4 Sec. 14. Minnesota Statutes 1994, section 296.025, 10.5 subdivision 1, is amended to read: 10.6 Subdivision 1. [TAX IMPOSED.] There is hereby imposed an 10.7 excise taxof the same rate per gallon as the gasoline excise10.8taxon all special fuel at the rates specified in subdivision 1b. 10.9 For clear diesel fuel, the tax is imposed on the first 10.10 distributor who received the product in Minnesota. For dyed 10.11 fuel being used illegally in a licensed motor vehicle, the tax 10.12 is imposed on the owner or operator of the motor vehicle, or in 10.13 some instances, on the dealer who supplied the fuel. For dyed 10.14 fuel used in a motor vehicle but subject to a federal exemption, 10.15 although no federal tax may be imposed, the fuel is subject to 10.16 the state tax. For other fuels, including jet fuel, propane, 10.17 and compressed natural gas, the tax is imposed on the 10.18 distributor, special fuel dealer, or bulk purchaser. This tax 10.19 is payable at the time and in the manner specified in this 10.20 chapter. For purposes of this section, "owner or operator" 10.21 means the operation of licensed motor vehicles, whether loaded 10.22 or empty, whether for compensation or not for compensation, and 10.23 whether owned by or leased to the motor carrier who operates 10.24 them or causes them to be operated. 10.25 Sec. 15. Minnesota Statutes 1994, section 296.025, 10.26 subdivision 1a, is amended to read: 10.27 Subd. 1a. [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 10.28 The provisions of subdivision 1 do not apply to(1)special fuel 10.29 purchased by a transit system or transit provider receiving 10.30 financial assistance or reimbursement under section 174.24, 10.31 256B.0625, subdivision 17, or 473.384or (2) sales of compressed10.32natural gas or propane for use in vehicles displaying a valid10.33annual alternate fuel permit. 10.34 Sec. 16. Minnesota Statutes 1994, section 296.025, is 10.35 amended by adding a subdivision to read: 10.36 Subd. 1b. [TAX RATES.] The special fuel excise tax is 11.1 imposed at the following rates: 11.2 (1) Liquefied petroleum gas or propane is taxed at the rate 11.3 of 15 cents per gallon. 11.4 (2) Liquefied natural gas is taxed at the rate of 12 cents 11.5 per gallon. 11.6 (3) Compressed natural gas is taxed at the rate of $1.739 11.7 per thousand cubic feet. 11.8 (4) All other special fuel is taxed at the same rate as the 11.9 gasoline excise tax. 11.10 Sec. 17. Minnesota Statutes 1994, section 296.0261, is 11.11 amended by adding a subdivision to read: 11.12 Subd. 10. [CREDIT; REFUNDS.] (a) A purchaser of an 11.13 alternative fuel vehicle permit under subdivisions 1 to 9 prior 11.14 to July 1, 1995, shall receive a credit for the unused portion 11.15 of the permit fee. The amount of the credit shall be equal to 11.16 the original permit fee and prorated to the number of months 11.17 from July 1, 1995, until the expiration date of the permit. The 11.18 credit shall reduce the amount of the vehicle's annual motor 11.19 vehicle registration tax as calculated under section 168.013. 11.20 The credit shall be applied to the first motor vehicle 11.21 registration tax payable after July 1, 1995. 11.22 (b) If the amount of the credit calculated under paragraph 11.23 (a) exceeds the amount of motor vehicle registration tax due, 11.24 the registrar shall pay to the purchaser of the permit a cash 11.25 refund equal to the difference between the motor vehicle 11.26 registration tax and the credit due. 11.27 Sec. 18. Minnesota Statutes 1994, section 297A.01, 11.28 subdivision 3, is amended to read: 11.29 Subd. 3. A "sale" and a "purchase" includes, but is not 11.30 limited to, each of the following transactions: 11.31 (a) Any transfer of title or possession, or both, of 11.32 tangible personal property, whether absolutely or conditionally, 11.33 and the leasing of or the granting of a license to use or 11.34 consume tangible personal property other than manufactured homes 11.35 used for residential purposes for a continuous period of 30 days 11.36 or more, for a consideration in money or by exchange or barter; 12.1 (b) The production, fabrication, printing, or processing of 12.2 tangible personal property for a consideration for consumers who 12.3 furnish either directly or indirectly the materials used in the 12.4 production, fabrication, printing, or processing; 12.5 (c) The furnishing, preparing, or serving for a 12.6 consideration of food, meals, or drinks. "Sale" does not 12.7 include: 12.8 (1) meals or drinks served to patients, inmates, or persons 12.9 residing at hospitals, sanitariums, nursing homes, senior 12.10 citizens homes, and correctional, detention, and detoxification 12.11 facilities; 12.12 (2) meals or drinks purchased for and served exclusively to 12.13 individuals who are 60 years of age or over and their spouses or 12.14 to the handicapped and their spouses by governmental agencies, 12.15 nonprofit organizations, agencies, or churches or pursuant to 12.16 any program funded in whole or part through 42 USCA sections 12.17 3001 through 3045, wherever delivered, prepared or served; or 12.18 (3) meals and lunches served at public and private schools, 12.19 universities, or colleges. Notwithstanding section 297A.25, 12.20 subdivision 2, taxable food or meals include, but are not 12.21 limited to, the following: 12.22 (i) heated food or drinks; 12.23 (ii) sandwiches prepared by the retailer; 12.24 (iii) single sales of prepackaged ice cream or ice milk 12.25 novelties prepared by the retailer; 12.26 (iv) hand-prepared or dispensed ice cream or ice milk 12.27 products including cones, sundaes, and snow cones; 12.28 (v) soft drinks and other beverages prepared or served by 12.29 the retailer; 12.30 (vi) gum; 12.31 (vii) ice; 12.32 (viii) all food sold in vending machines; 12.33 (ix) party trays prepared by the retailers; and 12.34 (x) all meals and single servings of packaged snack food, 12.35 single cans or bottles of pop, sold in restaurants and bars; 12.36 (d) The granting of the privilege of admission to places of 13.1 amusement, recreational areas, or athletic events, except a 13.2 world championship football game sponsored by the national 13.3 football league, and the privilege of having access to and the 13.4 use of amusement devices, tanning facilities, reducing salons, 13.5 steam baths, turkish baths, health clubs, and spas or athletic 13.6 facilities; 13.7 (e) The furnishing for a consideration of lodging and 13.8 related services by a hotel, rooming house, tourist court, motel 13.9 or trailer camp and of the granting of any similar license to 13.10 use real property other than the renting or leasing thereof for 13.11 a continuous period of 30 days or more; 13.12 (f) The furnishing for a consideration of electricity, gas, 13.13 water, or steam for use or consumption within this state, or 13.14 local exchange telephone service, intrastate toll service, and 13.15 interstate toll service, if that service originates from and is 13.16 charged to a telephone located in this state. Telephone service 13.17 includes paging services and private communication service, as 13.18 defined in United States Code, title 26, section 4252(d), except 13.19 for private communication service purchased by an agent acting 13.20 on behalf of the state lottery. The furnishing for a 13.21 consideration of access to telephone services by a hotel to its 13.22 guests is a sale under this clause. Sales by municipal 13.23 corporations in a proprietary capacity are included in the 13.24 provisions of this clause. The furnishing of water and sewer 13.25 services for residential use shall not be considered a sale. 13.26 The sale of natural gas to be used as a fuel in vehicles 13.27 propelled by natural gas shall not be considered a sale for the 13.28 purposes of this section; 13.29 (g) The furnishing for a consideration of cable television 13.30 services, including charges for basic service, charges for 13.31 premium service, and any other charges for any other 13.32 pay-per-view, monthly, or similar television services; 13.33 (h) Notwithstanding section 297A.25, subdivisions 9 and 12, 13.34 the sales of racehorses including claiming sales and fees paid 13.35 for breeding racehorses or horses previously used for racing 13.36 shall be considered a "sale" and a "purchase." "Racehorse" 14.1 means a horse that is or is intended to be used for racing and 14.2 whose birth has been recorded by the Jockey Club or the United 14.3 States Trotting Association or the American Quarter Horse 14.4 Association. "Sale" does not include fees paid for breeding 14.5 horses that are not racehorses; 14.6 (i) The furnishing for a consideration of parking services, 14.7 whether on a contractual, hourly, or other periodic basis, 14.8 except for parking at a meter; 14.9 (j) The furnishing for a consideration of services listed 14.10 in this paragraph: 14.11 (i) laundry and dry cleaning services including cleaning, 14.12 pressing, repairing, altering, and storing clothes, linen 14.13 services and supply, cleaning and blocking hats, and carpet, 14.14 drapery, upholstery, and industrial cleaning. Laundry and dry 14.15 cleaning services do not include services provided by coin 14.16 operated facilities operated by the customer; 14.17 (ii) motor vehicle washing, waxing, and cleaning services, 14.18 including services provided by coin-operated facilities operated 14.19 by the customer, and rustproofing, undercoating, and towing of 14.20 motor vehicles; 14.21 (iii) building and residential cleaning, maintenance, and 14.22 disinfecting and exterminating services; 14.23 (iv) services provided by detective agencies, security 14.24 services, burglar, fire alarm, and armored car services not 14.25 including services performed within the jurisdiction they serve 14.26 by off-duty licensed peace officers as defined in section 14.27 626.84, subdivision 1; 14.28 (v) pet grooming services; 14.29 (vi) lawn care, fertilizing, mowing, spraying and sprigging 14.30 services; garden planting and maintenance; tree, bush, and shrub 14.31 pruning, bracing, spraying, and surgery; tree, bush, shrub and 14.32 stump removal; and tree trimming for public utility lines. 14.33 Services performed under a construction contract for the 14.34 installation of shrubbery, plants, sod, trees, bushes, and 14.35 similar items are not taxable; 14.36 (vii) mixed municipal solid wastecollection and disposal15.1 management services as described in section 297A.45; 15.2 (viii) massages, except when provided by a licensed health 15.3 care facility or professional or upon written referral from a 15.4 licensed health care facility or professional for treatment of 15.5 illness, injury, or disease; and 15.6 (ix) the furnishing for consideration of lodging, board and 15.7 care services for animals in kennels and other similar 15.8 arrangements, but excluding veterinary and horse boarding 15.9 services. 15.10 The services listed in this paragraph are taxable under section 15.11 297A.02 if the service is performed wholly within Minnesota or 15.12 if the service is performed partly within and partly without 15.13 Minnesota and the greater proportion of the service is performed 15.14 in Minnesota, based on the cost of performance. In applying the 15.15 provisions of this chapter, the terms "tangible personal 15.16 property" and "sales at retail" include taxable services and the 15.17 provision of taxable services, unless specifically provided 15.18 otherwise. Services performed by an employee for an employer 15.19 are not taxable under this paragraph. Services performed by a 15.20 partnership or association for another partnership or 15.21 association are not taxable under this paragraph if one of the 15.22 entities owns or controls more than 80 percent of the voting 15.23 power of the equity interest in the other entity. Services 15.24 performed between members of an affiliated group of corporations 15.25 are not taxable. For purposes of this section, "affiliated 15.26 group of corporations" includes those entities that would be 15.27 classified as a member of an affiliated group under United 15.28 States Code, title 26, section 1504, and who are eligible to 15.29 file a consolidated tax return for federal income tax purposes; 15.30 (k) A "sale" and a "purchase" includes the transfer of 15.31 computer software, meaning information and directions that 15.32 dictate the function performed by data processing equipment. A 15.33 "sale" and a "purchase" does not include the design, 15.34 development, writing, translation, fabrication, lease, or 15.35 transfer for a consideration of title or possession of a custom 15.36 computer program; and 16.1 (l) The granting of membership in a club, association, or 16.2 other organization if: 16.3 (1) the club, association, or other organization makes 16.4 available for the use of its members sports and athletic 16.5 facilities (without regard to whether a separate charge is 16.6 assessed for use of the facilities); and 16.7 (2) use of the sports and athletic facilities is not made 16.8 available to the general public on the same basis as it is made 16.9 available to members. 16.10 Granting of membership includes both one-time initiation fees 16.11 and periodic membership dues. Sports and athletic facilities 16.12 include golf courses, tennis, racquetball, handball and squash 16.13 courts, basketball and volleyball facilities, running tracks, 16.14 exercise equipment, swimming pools, and other similar athletic 16.15 or sports facilities. The provisions of this paragraph do not 16.16 apply to camps or other recreation facilities owned and operated 16.17 by an exempt organization under section 501(c)(3) of the 16.18 Internal Revenue Code of 1986, as amended through December 31, 16.19 1992, for educational and social activities for young people 16.20 primarily age 18 and under. 16.21 Sec. 19. Minnesota Statutes 1994, section 297A.01, is 16.22 amended by adding a subdivision to read: 16.23 Subd. 21. [MIXED MUNICIPAL SOLID WASTE MANAGEMENT 16.24 SERVICES.] "Mixed municipal solid waste management services" or 16.25 "waste management services" means services relating to the 16.26 management of mixed municipal solid waste from collection to 16.27 disposal, including transportation and management at waste 16.28 facilities. The definitions in section 115A.03 apply to this 16.29 subdivision. 16.30 Sec. 20. Minnesota Statutes 1994, section 297A.135, 16.31 subdivision 1, is amended to read: 16.32 Subdivision 1. [TAX IMPOSED.] A tax is imposed on the 16.33 lease or rental in this state for not more than 28 days of a 16.34 passenger automobile as defined in section 168.011, subdivision 16.35 7, a van as defined in section 168.011, subdivision 28, except 16.36 for a van designed or adapted primarily for transporting 17.1 property rather than passengers, or a pickup truck as defined in 17.2 section 168.011, subdivision 29. The tax is imposed at the rate 17.3 of 6.2 percent of the sales price as defined for the purpose of 17.4 imposing the sales and use tax in this chapter. The tax does 17.5 not apply to the lease or rental of a hearse or limousine used 17.6 in connection with a burial or funeral service. It applies 17.7 whether or not the vehicle is licensed in the state. 17.8 Sec. 21. Minnesota Statutes 1994, section 297A.15, is 17.9 amended by adding a subdivision to read: 17.10 Subd. 7. [REFUND; APPROPRIATION; ADULT AND JUVENILE 17.11 CORRECTIONAL FACILITIES.] (a) If construction materials and 17.12 supplies described in paragraph (b) are purchased by a 17.13 contractor, subcontractor, or builder as part of a lump-sum 17.14 contract or similar type of contract with a price covering both 17.15 labor and materials for use in the project, a refund equal to 20 17.16 percent of the taxes paid by the contractor, subcontractor, or 17.17 builder must be paid to the governmental subdivision. An 17.18 application must be submitted by the governmental subdivision 17.19 and must include sufficient information to permit the 17.20 commissioner to verify the sales taxes paid for the project. 17.21 The contractor, subcontractor, or builder must furnish to the 17.22 governmental subdivision a statement of the cost of the 17.23 construction materials and supplies and the sales taxes paid on 17.24 them. The amount required to make the refunds is annually 17.25 appropriated to the commissioner. Interest must be paid on the 17.26 refund at the rate in section 270.76 from 60 days after the date 17.27 the refund claim is filed with the commissioner. 17.28 (b) Construction materials and supplies qualify for the 17.29 refund under this section if: (1) the materials and supplies 17.30 are for use in a project to construct or improve an adult or 17.31 juvenile correctional facility in a county, home rule charter 17.32 city, or statutory city, and (2) the project is mandated by 17.33 state or federal law, rule, or regulation. The refund applies 17.34 regardless of whether the materials and supplies are purchased 17.35 by the city or county, or by a contractor, subcontractor, or 17.36 builder under a contract with the city or county. 18.1 Sec. 22. Minnesota Statutes 1994, section 297A.25, 18.2 subdivision 9, is amended to read: 18.3 Subd. 9. [MATERIALS CONSUMED IN PRODUCTION.] The gross 18.4 receipts from the sale of and the storage, use, or consumption 18.5 of all materials, including chemicals, fuels, petroleum 18.6 products, lubricants, packaging materials, including returnable 18.7 containers used in packaging food and beverage products, feeds, 18.8 seeds, fertilizers, electricity, gas and steam, used or consumed 18.9 in agricultural or industrial production of personal property 18.10 intended to be sold ultimately at retail, whether or not the 18.11 item so used becomes an ingredient or constituent part of the 18.12 property produced are exempt. Seeds, trees, fertilizers, and 18.13 herbicides purchased for use by farmers in the Conservation 18.14 Reserve Program under United States Code, title 16, section 18.15 590h, the Integrated Farm Management Program under section 1627 18.16 of Public Law Number 101-624, the Wheat and Feed Grain Programs 18.17 under sections 301 to 305 and 401 to 405 of Public Law Number 18.18 101-624, and the conservation reserve program under sections 18.19 103F.505 to 103F.531, are included in this exemption. Sales to 18.20 a veterinarian of materials used or consumed in the care, 18.21 medication, and treatment of agricultural production animals and 18.22 horses used in agricultural production are exempt under this 18.23 subdivision. Chemicals used for cleaning food processing 18.24 machinery and equipment are included in this exemption. 18.25 Materials, including chemicals, fuels, and electricity purchased 18.26 by persons engaged in agricultural or industrial production to 18.27 treat waste generated as a result of the production process are 18.28 included in this exemption. Such production shall include, but 18.29 is not limited to, research, development, design or production 18.30 of any tangible personal property, manufacturing, processing 18.31 (other than by restaurants and consumers) of agricultural 18.32 products whether vegetable or animal, commercial fishing, 18.33 refining, smelting, reducing, brewing, distilling, printing, 18.34 mining, quarrying, lumbering, generating electricity and the 18.35 production of road building materials. Such production shall 18.36 not include painting, cleaning, repairing or similar processing 19.1 of property except as part of the original manufacturing 19.2 process. Machinery, equipment, implements, tools, accessories, 19.3 appliances, contrivances, furniture and fixtures, used in such 19.4 production and fuel, electricity, gas or steam used for space 19.5 heating or lighting, are not included within this exemption; 19.6 however, accessory tools, equipment and other short lived items, 19.7 which are separate detachable units used in producing a direct 19.8 effect upon the product, where such items have an ordinary 19.9 useful life of less than 12 months, are included within the 19.10 exemption provided herein. Electricity used to make snow for 19.11 outdoor use for ski hills, ski slopes, or ski trails is included 19.12 in this exemption. 19.13 Sec. 23. Minnesota Statutes 1994, section 297A.25, 19.14 subdivision 11, is amended to read: 19.15 Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from 19.16 all sales, including sales in which title is retained by a 19.17 seller or a vendor or is assigned to a third party under an 19.18 installment sale or lease purchase agreement under section 19.19 465.71, of tangible personal property to, and all storage, use 19.20 or consumption of such property by, the United States and its 19.21 agencies and instrumentalities, the University of Minnesota, 19.22 state universities, community colleges, technical colleges, 19.23 state academies, the Minnesota center for arts education, and 19.24 school districts are exempt. 19.25 As used in this subdivision, "school districts" means 19.26 public school entities and districts of every kind and nature 19.27 organized under the laws of the state of Minnesota, including, 19.28 without limitation, school districts, intermediate school 19.29 districts, education districts, educational cooperative service 19.30 units, secondary vocational cooperative centers, special 19.31 education cooperatives, joint purchasing cooperatives, 19.32 telecommunication cooperatives, regional management information 19.33 centers, technical colleges, joint vocational technical 19.34 districts, and any instrumentality of a school district, as 19.35 defined in section 471.59. 19.36 Sales exempted by this subdivision include sales under 20.1 section 297A.01, subdivision 3, paragraph (f), but do not 20.2 include sales under section 297A.01, subdivision 3, paragraph 20.3 (j), clause (vii). 20.4 Sales to hospitals and nursing homes owned and operated by 20.5 political subdivisions of the state are exempt under this 20.6 subdivision. 20.7 The sales to and exclusively for the use of libraries of 20.8 books, periodicals, audio-visual materials and equipment, 20.9 photocopiers for use by the public, and all cataloging and 20.10 circulation equipment, and cataloging and circulation software 20.11 for library use are exempt under this subdivision. For purposes 20.12 of this paragraph "libraries" means libraries as defined in 20.13 section 134.001, county law libraries under chapter 134A, the 20.14 state library under section 480.09, and the legislative 20.15 reference library. 20.16 Sales of supplies and equipment used in the operation of an 20.17 ambulance service owned and operated by a political subdivision 20.18 of the state are exempt under this subdivision provided that the 20.19 supplies and equipment are used in the course of providing 20.20 medical care. Sales to a political subdivision of repair and 20.21 replacement parts for emergency rescue vehicles and fire trucks 20.22 and apparatus are exempt under this subdivision. 20.23 Sales to a political subdivision of machinery and 20.24 equipment, except for motor vehicles, used directly for mixed 20.25 municipal solid wastecollection and disposalmanagement 20.26 services at a solid waste disposal facility as defined in 20.27 section 115A.03, subdivision 10, are exempt under this 20.28 subdivision. 20.29 Sales to political subdivisions of chore and homemaking 20.30 services to be provided to elderly or disabled individuals are 20.31 exempt. 20.32 This exemption shall not apply to building, construction or 20.33 reconstruction materials purchased by a contractor or a 20.34 subcontractor as a part of a lump-sum contract or similar type 20.35 of contract with a guaranteed maximum price covering both labor 20.36 and materials for use in the construction, alteration, or repair 21.1 of a building or facility. This exemption does not apply to 21.2 construction materials purchased by tax exempt entities or their 21.3 contractors to be used in constructing buildings or facilities 21.4 which will not be used principally by the tax exempt entities. 21.5 This exemption does not apply to the leasing of a motor 21.6 vehicle as defined in section 297B.01, subdivision 5, except for 21.7 leases entered into by the United States or its agencies or 21.8 instrumentalities. 21.9 The tax imposed on sales to political subdivisions of the 21.10 state under this section applies to all political subdivisions 21.11 other than those explicitly exempted under this subdivision, 21.12 notwithstanding section 115A.69, subdivision 6, 116A.25, 21.13 360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 21.14 469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 21.15 to the contrary enacted before 1992. 21.16 Sales exempted by this subdivision include sales made to 21.17 other states or political subdivisions of other states, if the 21.18 sale would be exempt from taxation if it occurred in that state, 21.19 but do not include sales under section 297A.01, subdivision 3, 21.20 paragraphs (c) and (e). 21.21 Sec. 24. Minnesota Statutes 1994, section 297A.25, 21.22 subdivision 59, is amended to read: 21.23 Subd. 59. [FARM MACHINERY.] From July 1, 1994, until June 21.24 30,19951996, the gross receipts from the sale of used farm 21.25 machinery are exempt. 21.26 Sec. 25. [297A.2574] [AGRICULTURE PROCESSING FACILITY 21.27 MATERIALS; EXEMPTION.] 21.28 Subdivision 1. [EXEMPTION; DEFINITION.] Purchases of 21.29 construction materials and supplies are exempt from the sales 21.30 and use taxes imposed under this chapter, regardless of whether 21.31 purchased by the owner or a contractor, subcontractor, or 21.32 builder, if the materials and supplies are used or consumed in 21.33 constructing an agriculture processing facility that meets the 21.34 requirements of this section. For purposes of this section, 21.35 "agricultural processing facility" means land, buildings, 21.36 structures, fixtures, and improvements used or operated 22.1 primarily for the processing or production of marketable 22.2 products from agricultural crops, including waste and residues 22.3 from agricultural crops, but not including livestock or 22.4 livestock products, poultry or poultry products, or wood or wood 22.5 products. 22.6 Subd. 2. [QUALIFICATIONS.] An agricultural processing 22.7 facility qualifies for the exemption provided under this section 22.8 if it meets each of the following requirements: 22.9 (a) The total investment in the facility must be at least 22.10 $8,500,000. 22.11 (b) The facility must be located in a municipality that has 22.12 a median household income that does not exceed $18,000 according 22.13 to the 1990 federal census information on income and poverty 22.14 status in 1989. 22.15 (c) The total investment in the facility must exceed an 22.16 amount equal to $12,000 per resident of the municipality in 22.17 which the facility is located. 22.18 Subd. 3. [COLLECTION AND REFUND OF TAX.] The tax shall be 22.19 imposed and collected as if the rates under sections 297A.02, 22.20 subdivision 1, and 297A.021, applied, and then refunded in the 22.21 manner provided in section 297A.15, subdivision 5. 22.22 Sec. 26. Minnesota Statutes 1994, section 297A.45, is 22.23 amended to read: 22.24 297A.45 [MIXED MUNICIPAL SOLID WASTECOLLECTION AND22.25DISPOSALMANAGEMENT SERVICES.] 22.26 Subdivision 1. [DEFINITIONS.] The definitions in sections 22.27 115A.03 and 297A.01 apply to this section. 22.28 Subd. 2. [APPLICATION.] The taxes imposed by sections 22.29 297A.02 and 297A.021 apply to all public and private mixed 22.30 municipal solid wastecollection and disposalmanagement 22.31 services. 22.32 Notwithstanding section 297A.25, subdivision 11, a 22.33 political subdivision that purchasescollection or disposal22.34 waste management services on behalf of its citizens shall pay 22.35 the taxes. 22.36 If a political subdivision providescollection or disposal23.1servicesa waste management service to its residents at a cost 23.2 in excess of the total direct charge to the residents for the 23.3 service, the political subdivision shall pay the taxes based on 23.4 its cost of providing the service in excess of the direct 23.5 charges. 23.6 A person who transports mixed municipal solid waste 23.7 generated by that person or by another person without 23.8 compensation shall pay the taxes at thedisposal or resource23.9recoverywaste facility based on the disposal charge or tipping 23.10 fee. 23.11 Subd. 3. [EXEMPTIONS.] (a) The cost of a service or the 23.12 portion of a service to collect and manage recyclable materials 23.13 separated from mixed municipal solid waste by the waste 23.14 generator is exempt from the taxes imposed in sections 297A.02 23.15 and 297A.021. 23.16 (b) The amount of a surcharge or fee imposed under section 23.17 115A.919, 115A.921, 115A.923, or 473.843 is exempt from the 23.18 taxes imposed in sections 297A.02 and 297A.021. 23.19 (c) Waste from a recycling facility that separates or 23.20 processes recyclable materials and that reduces the volume of 23.21 the waste by at least 85 percent is exempt from the taxes 23.22 imposed in sections 297A.02 and 297A.021. To qualify for the 23.23 exemption under this paragraph, the waste exempted must be 23.24collected and disposed ofmanaged separately from other solid 23.25 waste. 23.26 (d) The following costs are exempt from the taxes imposed 23.27 in sections 297A.02 and 297A.021: 23.28 (1) costs of providing educational materials and other 23.29 information to residents; 23.30 (2) costs of managing solid waste other than mixed 23.31 municipal solid waste, including household hazardous waste; and 23.32 (3) costs of regulatory and enforcement activities. 23.33 (e) The cost of a waste management service is exempt from 23.34 the taxes imposed in sections 297A.02 and 297A.021 to the extent 23.35 that the cost was previously subject to the tax. 23.36 Subd. 4. [CITY SALES TAX MAY NOT BE IMPOSED.] 24.1 Notwithstanding any other law or charter provision to the 24.2 contrary, a home rule charter or statutory city that imposes a 24.3 general sales tax may not impose the sales tax on solid waste 24.4disposal and collectionmanagement services that are subject to 24.5 the tax under this section. This subdivision does not apply to 24.6 a tax imposed under section 297A.021. 24.7 Subd. 5. [SEPARATE ACCOUNTING.] The commissioner shall 24.8 account for revenue collected from public and private mixed 24.9 municipal solid wastecollection and disposalmanagement 24.10 services under this section separately from other tax revenue 24.11 collected under this chapter. 24.12 Sec. 27. Laws 1986, chapter 400, section 44, is amended to 24.13 read: 24.14 Sec. 44. [DOWNTOWN TAXING AREA.] 24.15 If a bill is enacted into law in the 1986 legislative 24.16 session which authorizes the city of Minneapolis to issue bonds 24.17 and expend certain funds including taxes to finance the 24.18 acquisition and betterment of a convention center and related 24.19 facilities, which authorizes certain taxes to be levied in a 24.20 downtown taxing area, then, notwithstanding the provisions of 24.21 that law "downtown taxing area" shall mean the geographic area 24.22 bounded by the portion of the Mississippi River between I-35W 24.23 and Washington Avenue, the portion of Washington Avenue between 24.24 the river and I-35W, the portion of I-35W between Washington 24.25 Avenue and 8th Street South, the portion of 8th Street South 24.26 between I-35W and Portland Avenue South, the portion of Portland 24.27 Avenue South between 8th Street South and I-94, the portion of 24.28 I-94 from the intersection of Portland Avenue South to the 24.29 intersection of I-94 and the Burlington Northern Railroad 24.30 tracks, the portion of the Burlington Northern Railroad tracks 24.31 from I-94 to Main Street and including Nicollet Island, and the 24.32 portion of Main Street to Hennepin Avenue and the portion of 24.33 Hennepin Avenue between Main Street and 2nd Street S.E., and the 24.34 portion of 2nd Street S.E. between Main Street and Bank Street, 24.35 and the portion of Bank Street between 2nd Street S.E. and 24.36 University Avenue S.E., and the portion of University Avenue 25.1 S.E. between Bank Street and I-35W, and by I-35W from University 25.2 Avenue S.E., to the river. The downtown taxing area excludes 25.3 the area bounded on the south and west by Oak Grove Street, on 25.4 the east by Spruce Place, and on the north by West 15th Street. 25.5 Sec. 28. Laws 1991, chapter 291, article 8, section 28, 25.6 subdivision 1, is amended to read: 25.7 Subdivision 1. [AUTHORIZATION.] Notwithstanding Minnesota 25.8 Statutes, section 469.190, 477A.016, or other law, in addition 25.9 to the tax authorized in Minnesota Statutes, section 469.190, 25.10 the city of Winona may, by ordinance, impose a tax of up to one 25.11 percent on the gross receipts from the furnishing for 25.12 consideration of lodging at a hotel, motel, rooming house, 25.13 tourist court, or resort, other than the renting or leasing of 25.14 it for a continuous period of 30 days or more. The city may, by 25.15 ordinance, impose the tax authorized under this section on the 25.16 camping site receipts of a municipal campground. 25.17 Fifty percent of The proceeds of this tax shall be used to 25.18 retire the indebtedness of the Julius C. Wilke Steamboat 25.19 Centerand. Upon retirement of the debt, 50 percent of the 25.20 proceeds shall be used as directed in Minnesota Statutes, 25.21 section 469.190, subdivision 3. The balanceshall be used in25.22the mannerof the tax proceeds may be used to promote tourist 25.23 activities, as determined by resolution of the council, for the 25.24 following purposes: 25.25 (1) improvements to the levee, dockage areas, and the 25.26 adjacent area, including provision of utilities and construction 25.27 of facilities for ticket and souvenir sales and related office 25.28 space; or 25.29 (2) as directed in Minnesota Statutes, section 469.190, 25.30 subdivision 3.Upon retirement of the debt, the council shall25.31by ordinance reduce the tax by one-half percent or dedicate the25.32entire one percent in the manner directed in Minnesota Statutes,25.33section 469.190, subdivision 3.25.34 The tax shall be collected in the same manner as other 25.35 taxes authorized under Minnesota Statutes, section 469.190. 25.36 Sec. 29. [REPEALER.] 26.1 (a) Minnesota Statutes 1994, section 296.0261, is repealed. 26.2 (b) Minnesota Statutes 1994, section 297A.136, is repealed. 26.3 Sec. 30. [EFFECTIVE DATE.] 26.4 Sections 1, 2, 3 to 17, and 29, paragraph (a), are 26.5 effective July 1, 1995. 26.6 Section 20 is effective beginning with leases or rentals 26.7 made after June 30, 1995. 26.8 Sections 18, 19, 23, and 26 are effective the day following 26.9 final enactment. 26.10 Section 21 is effective retroactively for sales after May 26.11 31, 1992. 26.12 Section 22 is effective for sales made after July 1, 1995. 26.13 Section 25 is effective for sales made after March 31, 1995. 26.14 Section 28 is effective upon compliance by the governing 26.15 body of the city of Winona with Minnesota Statutes, section 26.16 645.021, subdivision 3. 26.17 Section 27 is effective upon compliance by the Minneapolis 26.18 city council with Minnesota Statutes, section 645.021, 26.19 subdivision 3. 26.20 Section 29, paragraph (b), is effective for sales of 900 26.21 information services made after June 30, 1995. 26.22 ARTICLE 3 26.23 PROPERTY TAX FREEZE 26.24 Section 1. Minnesota Statutes 1994, section 6.745, 26.25 subdivision 1, is amended to read: 26.26 Subdivision 1. [CITIES.] Annually, upon adoption of the 26.27 city budget, the city council of each home rule charter or 26.28 statutory city shall forward summary budget information to the 26.29 office of the state auditor. The summary budget information 26.30 shall be provided on forms prescribed by the state auditor. The 26.31 office of the state auditor shall work with representatives of 26.32 city government to develop a budget reporting form that conforms 26.33 with city budgeting practices and provides the necessary summary 26.34 budget information to the office of the state auditor. The 26.35 summary budget data shall be provided to the office of the state 26.36 auditor no later thanDecemberJanuary 31 ofthe year preceding27.1 each budget year. 27.2 Sec. 2. Minnesota Statutes 1994, section 134.34, 27.3 subdivision 4a, is amended to read: 27.4 Subd. 4a. [SUPPORT GRANTS.] In state fiscal years 1993, 27.5 1994,and1995, and 1996, a regional library basic system 27.6 support grant also may be made to a regional public library 27.7 system for a participating city or county which meets the 27.8 requirements under paragraph (a)or, (b), or (c). 27.9 (a) The city or county decreases the dollar amount provided 27.10 by it for operating purposes of public library service if the 27.11 amount provided by the city or county is not less than the 27.12 amount provided by the city or county for such purposes in the 27.13 second preceding year. 27.14 (b)(1) The city or county provided for operating purposes 27.15 of public library services an amount exceeding 125 percent of 27.16 the state average percentage of the adjusted net tax capacity or 27.17 125 percent of the state average local support per capita; and 27.18 (2) the local government aid distribution for the current 27.19 calendar year under chapter 477A has been reduced below the 27.20 originally certified amount for payment in the preceding 27.21 calendar year, if the dollar amount of the reduction from the 27.22 previous calendar year in support for operating purposes of 27.23 public library services is not greater than the dollar amount by 27.24 which support for operating purposes of public library service 27.25 would be decreased if the reduction in support were in direct 27.26 proportion to the local government aid reduction as a percentage 27.27 of the previous calendar year's revenue base as defined in 27.28 section 477A.011, subdivision 27. Determination of a grant 27.29 under paragraph (b) shall be based on the most recent calendar 27.30 year for which data are available. 27.31 (c) In 1996, the city or county maintains the dollar amount 27.32 provided by it for operating purposes of public library service 27.33 at least at the same dollar amount it provided in 1995. 27.34 The city or county shall file a report with the department 27.35 of education indicating the dollar amount and percentage of 27.36 reduction in public library operating funds. 28.1 Sec. 3. Minnesota Statutes 1994, section 254B.02, 28.2 subdivision 3, is amended to read: 28.3 Subd. 3. [RESERVE ACCOUNT.] The commissioner shall 28.4 allocate money from the reserve account to counties that, during 28.5 the current fiscal year, have met or exceeded the base level of 28.6 expenditures for eligible chemical dependency services from 28.7 local money.The commissioner shall establish the base level28.8for fiscal year 1988 as the amount of local money used for28.9eligible services in calendar year 1986. In later years, the28.10base level must be increased in the same proportion as state28.11appropriations to implement Laws 1986, chapter 394, sections 828.12to 20, are increased. The base level must be decreased if the28.13fund balance from which allocations are made under section28.14254B.02, subdivision 1, is decreased in later years.The base 28.15 level of expenditures for each county is defined as 15 percent 28.16 of the funds allocated to the county under subdivisions 1 and 28.17 2. The local match rate for the reserve account is the same 28.18 rate as applied to the initial allocation. Reserve account 28.19 payments must not be included when calculating the county 28.20 adjustments made according to subdivision 2. 28.21 Sec. 4. Minnesota Statutes 1994, section 256H.09, 28.22 subdivision 3, is amended to read: 28.23 Subd. 3. [CHILD CARE FUND PLAN.] Effective January 1, 28.24 1992, the county will include the plan required under this 28.25 subdivision in its biennial community social services plan 28.26 required in this section, for the group described in section 28.27 256E.03, subdivision 2, paragraph (h). For the period July 1, 28.28 1989, to December 31, 1991, the county shall submit separate 28.29 child care fund plans required under this subdivision for the 28.30 periods July 1, 1989, to June 30, 1990; and July 1, 1990, to 28.31 December 31, 1991. The commissioner shall establish the dates 28.32 by which the county must submit these plans. The county and 28.33 designated administering agency shall submit to the commissioner 28.34 an annual child care fund allocation plan. The plan shall 28.35 include: 28.36 (1) a narrative of the total program for child care 29.1 services, including all policies and procedures that affect 29.2 eligible families and are used to administer the child care 29.3 funds; 29.4 (2) the number of families that requested a child care 29.5 subsidy in the previous year, the number of families receiving 29.6 child care assistance, the number of families on a waiting list, 29.7 and the number of families projected to be served during the 29.8 fiscal year; 29.9 (3) the methods used by the county to inform eligible 29.10 groups of the availability of child care assistance and related 29.11 services; 29.12 (4) the provider rates paid for all children by provider 29.13 type; 29.14 (5) the county prioritization policy for all eligible 29.15 groups under the basic sliding fee program and AFDC child care 29.16 program; 29.17 (6) a report of all funds available to be used for child 29.18 care assistance, including demonstration of compliance with the29.19maintenance of funding effort required under section 256H.12; 29.20 and 29.21 (7) other information as requested by the department to 29.22 ensure compliance with the child care fund statutes and rules 29.23 promulgated by the commissioner. 29.24 The commissioner shall notify counties within 60 days of 29.25 the date the plan is submitted whether the plan is approved or 29.26 the corrections or information needed to approve the plan. The 29.27 commissioner shall withhold a county's allocation until it has 29.28 an approved plan. Plans not approved by the end of the second 29.29 quarter after the plan is due may result in a 25 percent 29.30 reduction in allocation. Plans not approved by the end of the 29.31 third quarter after the plan is due may result in a 100 percent 29.32 reduction in the allocation to the county. Counties are to 29.33 maintain services despite any reduction in their allocation due 29.34 to plans not being approved. 29.35 Sec. 5. Minnesota Statutes 1994, section 279.09, is 29.36 amended to read: 30.1 279.09 [PUBLICATION OF NOTICE AND LIST.] 30.2 The county auditor shall cause the notice and list of 30.3 delinquent real property to be published oncein each of two30.4consecutive weeksin the newspaper designated, thefirst30.5 publication of which shall be made on or before March 20 30.6 immediately following the filing of such list with the court 30.7 administrator of the district court. The auditor shall deliver 30.8 such list to the publisher of the newspaper designated, at least 30.9 20 days before the date upon which the list shall be published 30.10for the first time. 30.11 Sec. 6. Minnesota Statutes 1994, section 279.10, is 30.12 amended to read: 30.13 279.10 [PUBLICATION CORRECTED.] 30.14 Immediately after preparing forms for printing such notice 30.15 and list, and at least five days before the first day for the 30.16 publication thereof, every such publisher shall furnish proof of 30.17 the proposed publication to the county auditor for correction. 30.18 When such copy has been corrected , the auditor shall return the 30.19 same to the printer, who shall publish it as corrected. On the 30.20 first day on which such notice and list are published, the 30.21 publisher shall mail a copy of the newspaper containing the same 30.22 to the auditor. If during the publication of the notice and 30.23 list, or within ten days after the last publication thereof, the 30.24 auditor shall discover that such publication is invalid, the 30.25 auditor shall forthwith direct the publisher to republish the 30.26 same as correctedfor an additional period of two weeks. The 30.27 publisher, if not neglectful, shall be entitled to the same 30.28 compensation as allowed by law for the original publication, but 30.29 shall receive no further compensation therefor if such 30.30 republication is necessary by reason of the neglect of the 30.31 publisher. 30.32 Sec. 7. Minnesota Statutes 1994, section 281.23, 30.33 subdivision 3, is amended to read: 30.34 Subd. 3. [PUBLICATION.] As soon as practicable after the 30.35 posting of the notice prescribed in subdivision 2, the county 30.36 auditor shall cause to be publishedfor two successive weeks, in 31.1 the official newspaper of the county, the notice prescribed by 31.2 subdivision 2. 31.3 Sec. 8. Minnesota Statutes 1994, section 375.169, is 31.4 amended to read: 31.5 375.169 [PUBLICATION OF SUMMARY BUDGET STATEMENT.] 31.6 Annually, upon adoption of the county budget, the county 31.7 board shall cause a summary budget statement to be published in 31.8 one of the following: 31.9 (1) the official newspaper of the county, or if there is 31.10 none, in a qualified newspaper of general circulation in the 31.11 county; or 31.12 (2) for a county in the metropolitan area as defined in 31.13 section 473.121, subdivision 2, a county newsletter or other 31.14 county mailing sent to all households in the city, or as an 31.15 insert with the truth-in-taxation notice under section 275.065. 31.16 If the summary budget statement is published in a county 31.17 newsletter, it must be the lead story. If the summary budget 31.18 statement is published through a county newsletter or other 31.19 county mailing, a copy of the newsletter or mailing shall be 31.20 sent on request to any nonresident. If the summary budget 31.21 statement is published by a mailing to households other than a 31.22 newsletter, the color of the paper on which the summary budget 31.23 statement is printed must be distinctively different than the 31.24 paper containing other printed material included in the 31.25 mailing. The statement shall contain information relating to 31.26 anticipated revenues and expenditures in a form prescribed by 31.27 the state auditor. The form prescribed shall be designed so 31.28 that comparisons can be made between the current year and the 31.29 budget year. A note shall be included that the complete budget 31.30 is available for public inspection at a designated location 31.31 within the county. 31.32 Sec. 9. Minnesota Statutes 1994, section 471.6965, is 31.33 amended to read: 31.34 471.6965 [PUBLICATION OF SUMMARY BUDGET STATEMENT.] 31.35 Annually, upon adoption of the city budget, the city 31.36 council shall publish a summary budget statement in either of 32.1 the following: 32.2 (1) the official newspaper of the city, or if there is 32.3 none, in a qualified newspaper of general circulation in the 32.4 city; or 32.5 (2) for a city in the metropolitan area as defined in 32.6 section 473.121, subdivision 2, a city newsletter or other city 32.7 mailing sent to all taxpayers in the city, or as an insert with 32.8 the truth-in-taxation notice under section 275.065. 32.9 If the summary budget statement is published in a city 32.10 newsletter, it must be the lead cover story. If the summary 32.11 budget statement is published by a mailing to taxpayers other 32.12 than a newsletter, the color of the paper on which the summary 32.13 budget statement is printed must be distinctively different than 32.14 the paper containing other printed material included in the 32.15 mailing. 32.16 The statement shall contain information relating to 32.17 anticipated revenues and expenditures, in a form prescribed by 32.18 the state auditor. The form prescribed shall be designed so 32.19 that comparisons can be made between the current year and the 32.20 budget year. A note shall be included that the complete budget 32.21 is available for public inspection at a designated location 32.22 within the city. If the summary budget statement is published 32.23 through a city newsletter or other city mailing, a copy of the 32.24 statement must be posted, in a common area, by the property 32.25 owner of all residential nonhomestead property as defined in 32.26 section 273.13, subdivision 25, paragraphs (a) and (b), clause 32.27 (1). 32.28 Sec. 10. [EDUCATION FINANCE FOR THE 1996-1997 SCHOOL 32.29 YEAR.] 32.30 Subdivision 1. [ADJUSTED TAX CAPACITY FOR SCHOOL YEAR 32.31 1996-1997.] Notwithstanding any other law to the contrary, for 32.32 purposes of any levy authorized under Minnesota Statutes, 32.33 chapter 124, 124A, 124B, 136C, or 136D, the adjusted net tax 32.34 capacity of a school district, education district, intermediate 32.35 school district, or technical college under Minnesota Statutes, 32.36 section 124.2131, for the 1996-1997 school year shall equal the 33.1 adjusted net tax capacity used for computation of its levy 33.2 limits for the 1995-1996 school year. 33.3 Subd. 2. [LOCAL EFFORT TAX RATE AND EQUALIZING FACTOR.] 33.4 Notwithstanding any other law to the contrary, the local effort 33.5 tax rates computed under Minnesota Statutes, sections 124.226, 33.6 subdivision 1, and 124A.23, for the 1996-1997 school year shall 33.7 equal the local effort tax rates established at the time of levy 33.8 limit certification for the 1995-1996 school year. 33.9 Notwithstanding any other law to the contrary, the equalizing 33.10 factor under Minnesota Statutes, section 124A.02, for the 33.11 1996-1997 school year shall equal the equalizing factor for the 33.12 1995-1996 school year. 33.13 Subd. 3. [COMPUTATION OF PUPIL UNITS FOR LEVY LIMITS.] 33.14 Notwithstanding Minnesota Statutes, section 124.17, or any other 33.15 law to the contrary, the number of pupil units and AFDC pupil 33.16 units for a school district, education district, intermediate 33.17 school district, or technical college for use in computing the 33.18 levy limits of the district or technical college for the 33.19 1996-1997 school year shall be the pupil units and AFDC pupil 33.20 units used for the levy limit computation of the school 33.21 district, education district, intermediate school district, or 33.22 technical college for the 1995-1996 school year. For purposes 33.23 of computing the revenue entitlement of a school district under 33.24 Minnesota Statutes, chapter 124, 124A, 124B, 136C, or 136D, for 33.25 the 1996-1997 school year, the pupil units or AFDC pupil units 33.26 shall be as otherwise provided under Minnesota Statutes, section 33.27 124.17. If any section of Minnesota Statutes, chapters 124, 33.28 124A, and 124B, provides that an aid entitlement is equal to the 33.29 difference between the revenue entitlement and the authorized 33.30 levy, then the aid entitlement for the 1996-1997 school year 33.31 shall equal the difference between the revenue entitlement and 33.32 authorized levies computed under this section and sections 11 to 33.33 71. If any section of Minnesota Statutes, chapters 124, 124A, 33.34 and 124B, other than sections 124.321 and 124.912, subdivision 33.35 2, provide that the aid entitlement will be reduced if a 33.36 district fails to exercise its full levy authority and the 34.1 district failed to levy its full authority for the 1995-1996 34.2 school year, the commissioner shall assume that, absent the 34.3 provisions of this act, the district would have elected to 34.4 exercise the same portion of its levy authority for the 34.5 1996-1997 school year as it did in the prior year and determine 34.6 the district's aid under the applicable section and the prior 34.7 sentence. 34.8 Sec. 11. [TRANSITIONAL LEVIES.] 34.9 Notwithstanding Minnesota Statutes, sections 122.247, 34.10 subdivision 3, and 122.533, a school district's levy under those 34.11 sections for taxes payable in 1996 shall be no greater than it 34.12 was for the prior year. 34.13 Sec. 12. [TRANSPORTATION AID.] 34.14 For purposes of computing transportation aid under 34.15 Minnesota Statutes, section 124.225, subdivision 8a, for the 34.16 1996-1997 school year, levies shall be those computed under the 34.17 provisions of sections 10 and 13 to 21. 34.18 Sec. 13. [TRANSPORTATION LEVY.] 34.19 Notwithstanding Minnesota Statutes, section 124.226, 34.20 subdivision 2, a school district's levy for additional 34.21 transportation costs as the result of leasing a school in 34.22 another district shall be no greater for the 1996-1997 school 34.23 year than it was for the prior year. 34.24 Sec. 14. [OFF-FORMULA ADJUSTMENT.] 34.25 Notwithstanding Minnesota Statutes, section 124.226, 34.26 subdivision 3, a school district's off-formula adjustment for 34.27 taxes payable in 1996 shall be no less than that computed for 34.28 taxes payable in the prior year. If the resulting levy 34.29 reduction is greater than that which would have otherwise 34.30 occurred under Minnesota Statutes, section 124.226, subdivision 34.31 3, the district will receive additional aid equal to the 34.32 difference. 34.33 Sec. 15. [TRANSPORTATION LEVY EQUITY.] 34.34 Notwithstanding Minnesota Statutes, section 124.226, 34.35 subdivision 3a, a school district's aid reduction for 34.36 transportation levy equity for the 1996-1997 school year shall 35.1 be based on levies computed under sections 10 and 13 to 21. 35.2 Sec. 16. [NONREGULAR TRANSPORTATION COSTS LEVY.] 35.3 Notwithstanding Minnesota Statutes, section 124.226, 35.4 subdivision 4, a school district's levy for nonregular 35.5 transportation costs for the 1996-1997 school year shall be no 35.6 greater than it was for the prior year. 35.7 Sec. 17. [EXCESS TRANSPORTATION COSTS LEVY.] 35.8 Notwithstanding Minnesota Statutes, section 124.226, 35.9 subdivision 5, a school district's levy for excess 35.10 transportation costs for the 1996-1997 school year shall be no 35.11 greater than it was for the prior year. If the resulting levy 35.12 is less than the school district would have been authorized to 35.13 levy under Minnesota Statutes, section 124.226, subdivision 5, 35.14 the district shall receive additional aid equal to the 35.15 difference. 35.16 Sec. 18. [BUS PURCHASES; LEVY.] 35.17 Notwithstanding Minnesota Statutes, section 124.226, 35.18 subdivision 6, a school district's levy to eliminate a projected 35.19 deficit in its reserved fund balance for bus purchases in its 35.20 transportation fund as of June 30 of the 1996-1997 school year 35.21 shall be no greater than it was for the prior year. 35.22 Sec. 19. [CONTRACTED SERVICES LEVY.] 35.23 Notwithstanding Minnesota Statutes, section 124.226, 35.24 subdivision 7, a school district's levy for taxes payable in 35.25 1996 under that subdivision shall be no greater than it was in 35.26 the prior year. If the resulting levy is less than the school 35.27 district would have been authorized to levy under that 35.28 subdivision, the district will receive additional aid equal to 35.29 the difference. 35.30 Sec. 20. [LEVY FOR POST-SECONDARY TRANSPORTATION.] 35.31 Notwithstanding Minnesota Statutes, section 124.226, 35.32 subdivision 8, a school district levy for transportation of 35.33 secondary students enrolled in courses provided in an agreement 35.34 authorized by Minnesota Statutes, section 123.33, subdivision 7, 35.35 for school year 1996-1997 shall be no greater than it was for 35.36 the prior year. 36.1 Sec. 21. [LATE ACTIVITY BUSES LEVY.] 36.2 Notwithstanding Minnesota Statutes, section 124.226, 36.3 subdivision 9, a school district's levy for late activity buses 36.4 for the 1995-1996 school year shall be no greater than it was 36.5 for the prior year. If the resulting levy is less than the 36.6 school district would have been authorized to levy under 36.7 Minnesota Statutes, section 124.226, subdivision 9, the school 36.8 district shall receive additional aid equal to the difference. 36.9 Sec. 22. [BONDS.] 36.10 (a) Notwithstanding Minnesota Statutes, section 124.239, 36.11 after March 30, 1995, no school district can sell bonds under 36.12 that section the debt service payments of which would require a 36.13 levy first becoming payable in 1996 or authorize a levy under 36.14 Minnesota Statutes, section 124.239, subdivision 5, clause (b), 36.15 that is not pursuant to a plan adopted prior to March 30, 1995. 36.16 This restriction shall not apply to (1) refunding bonds sold to 36.17 refund bonds originally sold before March 30, 1995, or (2) bonds 36.18 for which the amount of the levy first becoming due in 1996 36.19 would not exceed the amount by which the school district's total 36.20 levy for debt service on bonds for taxes payable in 1996 prior 36.21 to issuance of those bonds is less than the municipality's total 36.22 levy for debt service for bonds for taxes payable in 1995. 36.23 (b) For purposes of this section, bonds will be deemed to 36.24 have been sold before March 30, 1995, if: 36.25 (1) an agreement has been entered into between the school 36.26 district and a purchaser or underwriter for the sale of the 36.27 bonds by that date; 36.28 (2) the issuing school district is a party to a contract or 36.29 letter of understanding entered into before March 30, 1995, with 36.30 the federal government that requires the school district to pay 36.31 for a project, and the project will be funded with the proceeds 36.32 of the bonds; or 36.33 (3) the proceeds of the bonds will be used to fund a 36.34 project or acquisition with respect to which the school district 36.35 has entered into a contract with a builder or supplier before 36.36 March 30. Debt service payments due on bonds described in this 37.1 paragraph during calendar year 1996 will be paid by the state. 37.2 The amount of those payments must be repaid by the school 37.3 district to the state in three equal annual installments 37.4 beginning in 1997. No interest will be due on those payments if 37.5 timely paid by June 15 of the year due. 37.6 Sec. 23. [CAPITAL EXPENDITURE FACILITY LEVY.] 37.7 Notwithstanding Minnesota Statutes, sections 124.243 and 37.8 124.2442, subdivision 3, a school district's capital 37.9 expenditures facilities levy for the 1996-1997 school year shall 37.10 be no greater than it was for the prior year. 37.11 Sec. 24. [CAPITAL EXPENDITURE EQUIPMENT LEVY.] 37.12 Notwithstanding Minnesota Statutes, sections 124.244, 37.13 subdivision 2, and 124.2442, a school district's capital 37.14 expenditures equipment levy for the 1996-1997 school year shall 37.15 be no greater than it was for the prior year. 37.16 Sec. 25. [LEVY FOR ADULT BASIC EDUCATION AID.] 37.17 Notwithstanding Minnesota Statutes, section 124.2601, 37.18 school districts which did not levy for adult basic education 37.19 for taxes payable in 1995, may not levy for that purpose for 37.20 taxes payable in 1996. 37.21 Sec. 26. [EARLY CHILDHOOD FAMILY EDUCATION AND HOME 37.22 VISITATION LEVY.] 37.23 Notwithstanding Minnesota Statutes, section 124.2711, 37.24 subdivisions 2a and 5, a school district's levy for early 37.25 childhood family education and home visitation under Minnesota 37.26 Statutes, section 124.2711, subdivision 5, for school year 37.27 1996-1997 shall be no greater than it was for the prior year. 37.28 Sec. 27. [COMMUNITY EDUCATION LEVY.] 37.29 Notwithstanding Minnesota Statutes, section 124.2713, 37.30 subdivision 6, 6a, or 6b, the community education levy of a 37.31 school district for the 1996-1997 school year shall be no 37.32 greater than it was for the prior year. 37.33 Sec. 28. [LEVY FOR ADDITIONAL COMMUNITY EDUCATION 37.34 REVENUE.] 37.35 Notwithstanding Minnesota Statutes, section 124.2714, a 37.36 school district's levy under that section for school year 38.1 1996-1997 shall be no greater than it was for the prior year. 38.2 Sec. 29. [PROGRAMS FOR ADULTS WITH DISABILITIES; LEVY.] 38.3 Notwithstanding Minnesota Statutes, section 124.2715, 38.4 subdivision 3, a school district's levy for community education 38.5 programs for adults with disabilities for the 1996-1997 school 38.6 year shall be no greater than it was for the prior year. 38.7 Sec. 30. [EXTENDED DAY LEVY.] 38.8 Notwithstanding Minnesota Statutes, section 124.2716, a 38.9 school district's levy under that section for the 1996-1997 38.10 school year shall be no greater than it was for the prior year. 38.11 Sec. 31. [COOPERATION AND COMBINATION LEVY.] 38.12 Notwithstanding Minnesota Statutes, section 124.2725, 38.13 subdivisions 3 and 4, a school district's levy for cooperation 38.14 and combination for the 1996-1997 school year shall be no 38.15 greater than it was for the prior year. 38.16 Sec. 32. [EARLY RETIREMENT AND SEVERANCE LEVY.] 38.17 Notwithstanding Minnesota Statutes, section 124.2725, 38.18 subdivision 15, a school district's levy for the 1996-1997 38.19 school year for severance pay or early retirement incentives for 38.20 licensed and nonlicensed staff who retire early as the result of 38.21 combination or cooperation shall be no greater than it was for 38.22 the prior year. 38.23 Sec. 33. [CONSOLIDATION; RETIREMENT LEVY.] 38.24 Notwithstanding Minnesota Statutes, section 124.2726, 38.25 subdivision 3, a school district's levy for retirement 38.26 incentives under Minnesota Statutes, section 122.23, subdivision 38.27 20, for the 1996-1997 school year shall be no greater than it 38.28 was for the prior year. 38.29 Sec. 34. [DISTRICT COOPERATION LEVY.] 38.30 Notwithstanding Minnesota Statutes, section 124.2727, 38.31 subdivisions 6b and 9, a school district's levy for district 38.32 cooperation for the 1996-1997 school year shall be no greater 38.33 than it was for the prior year. 38.34 Sec. 35. [SPECIAL EDUCATION EQUALIZATION LEVY.] 38.35 Notwithstanding Minnesota Statutes, section 124.321, 38.36 subdivisions 3 and 5, a school district's special education 39.1 equalization levy for the 1996-1997 school year shall be no 39.2 greater than it was for the prior year. If the resulting levy 39.3 is less than the school district would have levied under 39.4 Minnesota Statutes, section 124.321, subdivisions 3 and 5, the 39.5 district shall receive additional aid equal to the difference. 39.6 Sec. 36. [ALTERNATIVE DELIVERY LEVY.] 39.7 Notwithstanding Minnesota Statutes, section 124.322, 39.8 subdivision 4, a school district's levy for alternative delivery 39.9 of specialized instructional services for the 1996-1997 school 39.10 year shall be no greater than it was for the prior year. If the 39.11 resulting levy is less than the school district would have 39.12 levied under Minnesota Statutes, section 124.322, subdivision 4, 39.13 the district shall receive additional aid equal to the 39.14 difference. 39.15 Sec. 37. [JOINT POWERS BOARD; EARLY RETIREMENT AND 39.16 SEVERANCE LEVY.] 39.17 Notwithstanding Minnesota Statutes, section 124.4945, a 39.18 school district's levy for the 1996-1997 school year for 39.19 severance pay and early retirement incentives to a teacher as 39.20 defined in Minnesota Statutes, section 125.12, subdivision 1, 39.21 who is placed on unrequested leave as the result of a 39.22 cooperative secondary facility agreement shall be no greater 39.23 than it was for the prior year. 39.24 Sec. 38. [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] 39.25 Notwithstanding Minnesota Statutes, section 124.82, 39.26 subdivision 3, no facilities down payment levy referendum held 39.27 after March 27, 1995, may authorize a levy first becoming 39.28 payable in 1996. 39.29 Sec. 39. [HEALTH AND SAFETY LEVY.] 39.30 Notwithstanding Minnesota Statutes, section 124.83, 39.31 subdivisions 4 and 7, a school district's levy for a health and 39.32 safety program under Minnesota Statutes, section 124.83, for the 39.33 1996-1997 school year shall be no greater than it was for the 39.34 prior year. If the resulting levy is less than the school 39.35 district would have levied under Minnesota Statutes, section 39.36 124.83, subdivisions 4 and 7, the district shall receive 40.1 additional aid equal to the difference. 40.2 Sec. 40. [HANDICAPPED ACCESS AND FIRE SAFETY LEVY.] 40.3 Notwithstanding Minnesota Statutes, section 124.84, 40.4 subdivisions 3 and 4, a school district's levy for purposes of 40.5 Minnesota Statutes, section 124.84, subdivisions 1 and 2, for 40.6 the 1996-1997 school year shall be no greater than it was for 40.7 the prior year. If the resulting levy is less than the school 40.8 district would have levied under Minnesota Statutes, section 40.9 124.84, subdivision 3, the district may levy the difference in 40.10 the subsequent year notwithstanding the five-year limitation in 40.11 section 124.84, subdivision 3. 40.12 Sec. 41. [LEVY TO RENT OR LEASE BUILDING OR LAND.] 40.13 Notwithstanding Minnesota Statutes, section 124.91, 40.14 subdivision 1, after March 30, 1995, the commissioner of 40.15 education shall not authorize any school district to make any 40.16 additional capital expenditure levy to rent or lease a building 40.17 or land for instructional purposes if the levy for that purpose 40.18 first becomes due and payable in 1996 unless the district's 40.19 capital expenditure levy for taxes payable in 1996, including 40.20 the levy for the new obligation, would not exceed its levy for 40.21 that purpose for taxes payable in 1995. 40.22 Sec. 42. [LEVY FOR LEASE PURCHASE OR INSTALLMENT BUYS.] 40.23 (a) Except as provided in paragraphs (b) and (c), 40.24 notwithstanding Minnesota Statutes, section 124.91, subdivision 40.25 3, after March 30, 1995, no school district may enter into an 40.26 installment contract or a lease purchase agreement the levy for 40.27 which would first become payable in 1996 unless the district's 40.28 total levy for installment contracts and lease purchase 40.29 agreements for taxes payable in 1996, including the levy for the 40.30 new obligation, would not exceed its levy for that purpose for 40.31 taxes payable in 1995. 40.32 (b) The limitation in paragraph (a) does not apply to an 40.33 installment contract entered into before July 1, 1995, if it: 40.34 (1) relates to a high school construction project that was 40.35 approved by the commissioner of education under Minnesota 40.36 Statutes, section 121.15, before July 1, 1994; and 41.1 (2) relates at least in part to bids awarded between 41.2 September 8, 1994, and February 21, 1995. 41.3 Payments due on installment contracts described in this 41.4 paragraph during calendar year 1996 will be paid by the state. 41.5 The amount of those payments will be repaid by the school 41.6 district to the state in three equal annual installments 41.7 beginning in 1997. No interest will be due on those payments if 41.8 timely paid by June 15 of the year due. 41.9 (c) For purposes of this section, installment contracts or 41.10 lease purchase agreements will be deemed to have been entered 41.11 into before March 30, 1995, if: 41.12 (1) an agreement has been entered into between the school 41.13 district and a lessor or seller by that date; 41.14 (2) the school district is a party to contract or letter of 41.15 understanding entered into before March 30, 1995, with the 41.16 federal government that requires the school district to pay for 41.17 a project, and the project will be funded with the proceeds of 41.18 the installment contracts or lease purchase agreements; or 41.19 (3) the installment contracts or lease purchase agreements 41.20 will be used to fund a project or acquisition with respect to 41.21 which the school district has entered into a contract with a 41.22 builder or supplier before March 30. Payments due on 41.23 installment contracts or lease purchase agreements described in 41.24 this paragraph during calendar year 1996 will be paid by the 41.25 state. The amount of those payments must be repaid by the 41.26 school district to the state in three equal annual installments 41.27 beginning in 1997. No interest will be due on those payments if 41.28 timely paid by June 15 of the year due. 41.29 Sec. 43. [COOPERATING DISTRICTS; CAPITAL LEVY.] 41.30 Notwithstanding Minnesota Statutes, section 124.91, 41.31 subdivision 4, a school district's levy under that subdivision 41.32 for the 1996-1997 school year shall be no greater than it was 41.33 for the prior year. 41.34 Sec. 44. [LEVY FOR INTERACTIVE TELEVISION.] 41.35 Notwithstanding Minnesota Statutes, section 124.91, 41.36 subdivision 5, a school district's levy for interactive 42.1 television for the 1996-1997 school year shall be no greater 42.2 than it was for the prior year. 42.3 Sec. 45. [ENERGY CONSERVATION LEVY.] 42.4 Notwithstanding Minnesota Statutes, section 124.91, 42.5 subdivision 6, a school district may not enter into a loan under 42.6 Minnesota Statutes, sections 216C.37 or 298.292 to 298.298 after 42.7 March 27, 1995, if the levy for repayment of the loan would 42.8 first become payable in 1996. 42.9 Sec. 46. [LEVY FOR STATUTORY OBLIGATIONS.] 42.10 Notwithstanding Minnesota Statutes, section 124.912, 42.11 subdivision 1, a school district's levy as otherwise authorized 42.12 under that subdivision for the 1996-1997 school year shall be no 42.13 greater than it was for the prior year. To the extent that the 42.14 portion of the resulting levy for the school district's 42.15 obligation under Minnesota Statutes, section 268.06, subdivision 42.16 25, and section 268.08, is less than the school district would 42.17 have been otherwise authorized to levy under Minnesota Statutes, 42.18 section 124.912, subdivision 1, the school district shall 42.19 receive additional aid equal to the difference. To the extent 42.20 that the portion of the resulting levy for judgments under 42.21 Minnesota Statutes, section 127.05, is less than the school 42.22 district would have been authorized to levy under Minnesota 42.23 Statutes, section 124.912, subdivision 1, for this purpose, the 42.24 school district may levy the difference in the subsequent year. 42.25 Sec. 47. [DESEGREGATION LEVY.] 42.26 Notwithstanding Minnesota Statutes, section 124.912, 42.27 subdivision 2, a school district's levy as otherwise authorized 42.28 under that subdivision for the 1995-1996 school year shall be no 42.29 greater than it was for the prior year. If the resulting levy 42.30 is less than the school district would have levied under that 42.31 subdivision, the school district shall receive additional aid 42.32 equal to the difference. 42.33 Sec. 48. [RULE COMPLIANCE LEVY.] 42.34 Notwithstanding Minnesota Statutes, section 124.912, 42.35 subdivision 3, a school district's levy as otherwise authorized 42.36 under that subdivision for the 1995-1996 school year shall be no 43.1 greater than it was for the prior year. If the resulting levy 43.2 is less than the school district would have levied under that 43.3 subdivision, the school district shall receive additional aid 43.4 equal to the difference. 43.5 Sec. 49. [LEVY FOR CRIME RELATED COSTS.] 43.6 Notwithstanding Minnesota Statutes, section 124.912, 43.7 subdivision 6, a school district's levy as otherwise authorized 43.8 under that subdivision for the 1996-1997 school year shall be no 43.9 greater than it was for the prior year. 43.10 Sec. 50. [ICE ARENA LEVY.] 43.11 Notwithstanding Minnesota Statutes, section 124.912, 43.12 subdivision 7, a school district's levy as otherwise authorized 43.13 under that subdivision for the 1996-1997 school year shall be no 43.14 greater than it was for the prior year. 43.15 Sec. 51. [OUTPLACEMENT LEVY.] 43.16 Notwithstanding Minnesota Statutes, section 124.912, 43.17 subdivision 8, the levy as otherwise authorized under that 43.18 subdivision for the 1996-1997 school year shall be no greater 43.19 than it was for the prior year. 43.20 Sec. 52. [ABATEMENT LEVY.] 43.21 Notwithstanding Minnesota Statutes, section 124.912, 43.22 subdivision 9, a school district's levy as otherwise authorized 43.23 under that subdivision for the 1996-1997 school year shall be no 43.24 greater than it was for the prior year. To the extent the 43.25 portion of the resulting levy otherwise authorized under 43.26 Minnesota Statutes, section 124.912, subdivision 9, paragraph 43.27 (a), clause (1), is less than the school district would have 43.28 been authorized to levy under that clause, the district shall 43.29 receive additional aid equal to the difference. The remaining 43.30 portion of the resulting levy that is less than the school 43.31 district would have been authorized to levy under the remainder 43.32 of Minnesota Statutes, section 124.912, subdivision 9, may be 43.33 levied over a four-year period notwithstanding the three-year 43.34 limitation of Minnesota Statutes, section 124.912, subdivision 43.35 9, paragraph (b). 43.36 Sec. 53. [OPERATING DEBT LEVIES.] 44.1 Notwithstanding Minnesota Statutes, section 122.531, 44.2 subdivision 4a; 124.914; or Laws 1992, chapter 499, article 7, 44.3 sections 25 and 26, a school district's levy as otherwise 44.4 authorized under those sections for the 1996-1997 school year 44.5 shall be no greater than it was for the prior year. To the 44.6 extent this prevents a district from amortizing its 44.7 reorganization operating debt as defined in Minnesota Statutes, 44.8 section 121.915, clause (1), in five years, the district shall 44.9 be permitted to levy the remainder in a subsequent year. 44.10 Sec. 54. [HEALTH INSURANCE BENEFITS LEVY.] 44.11 Notwithstanding Minnesota Statutes, section 124.916, 44.12 subdivision 1, or Laws 1993, chapter 224, article 8, section 18, 44.13 a school district's levy for retired employees health insurance 44.14 as otherwise authorized under those provisions of law for the 44.15 taxes payable in 1996 shall be no greater than it was for the 44.16 prior year. 44.17 Sec. 55. [RETIREMENT LEVY.] 44.18 Notwithstanding Minnesota Statutes, section 124.916, 44.19 subdivision 3, a school district's levy as otherwise authorized 44.20 under that subdivision for taxes payable in 1996 shall be no 44.21 greater than it was for the prior year. If the resulting levy 44.22 is less than the school district would have been authorized to 44.23 levy under that subdivision, the school district shall receive 44.24 additional aid equal to the difference. 44.25 Sec. 56. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] 44.26 Notwithstanding Minnesota Statutes, section 124.916, 44.27 subdivision 4, a school district's levy as otherwise authorized 44.28 under that section for the 1996-1997 school year shall be no 44.29 greater than it was for the prior year. 44.30 Sec. 57. [LEVY FOR TACONITE PAYMENT.] 44.31 Notwithstanding Minnesota Statutes, section 124.918, 44.32 subdivision 8, a school district's levy reduction as otherwise 44.33 authorized under that subdivision for the 1996-1997 school year 44.34 shall be no less than it was for the prior year. General 44.35 education aid reduction for the 1996-1997 school year shall be 44.36 governed by Minnesota Statutes, section 124A.035, subdivision 5, 45.1 and the levy reduction as dictated by this section. 45.2 Sec. 58. [EQUALIZED DEBT SERVICE LEVY.] 45.3 Notwithstanding Minnesota Statutes, section 124.95, 45.4 subdivision 4, a school district's levy as otherwise authorized 45.5 under that subdivision for the 1996-1997 school year taxes 45.6 payable in 1996 shall be based on the actual pupil units in the 45.7 district for the 1992-1993 school year and the 1993 adjusted net 45.8 tax of the district. 45.9 Sec. 59. [UNEQUALIZED REFERENDUM LEVY.] 45.10 Notwithstanding Minnesota Statutes, section 124A.03, 45.11 subdivision 1i, a school district's unequalized referendum levy 45.12 for the 1996-1997 school year shall be no greater than it was 45.13 for the prior year. If the resulting levy is less than the 45.14 school district would have levied under that subdivision, the 45.15 school district shall receive additional aid equal to the 45.16 difference. 45.17 Sec. 60. [REFERENDUM LEVY.] 45.18 (a) Except as provided in paragraph (b) or (c), 45.19 notwithstanding Minnesota Statutes, section 124A.03, subdivision 45.20 2 or 2b, or 124B.03, subdivision 2, no referendum conducted 45.21 after March 30, 1995, under those sections may authorize a levy 45.22 first becoming payable in 1996. 45.23 (b) A referendum may authorize such a levy if the 45.24 referendum provides for continuation of a referendum levy that 45.25 terminates beginning with taxes payable in 1996. If the 45.26 terminated levy had been based on net tax capacity, the 45.27 referendum relating to taxes payable in 1996 must be based on 45.28 net tax capacity and the ballot shall state the estimated 45.29 referendum tax rate based on net tax capacity for taxes levied 45.30 in 1996, notwithstanding Minnesota Statutes, section 124A.03, 45.31 subdivisions 2 and 2a. To the extent the referendum relates to 45.32 taxes payable in 1997 and subsequent years, the levies for those 45.33 years are subject to Minnesota Statutes, sections 124A.03, 45.34 subdivision 2a, and 124A.0311, subdivision 3, and the ballot 45.35 shall also state the estimated referendum tax rate as a 45.36 percentage of market value for taxes levied in 1997. 46.1 (c) A referendum may authorize such a levy if the levy 46.2 required under the referendum would not result in an increase 46.3 for taxes payable in 1996 in the total levy for all purposes 46.4 imposed by the school district over the total levy imposed by 46.5 the district for taxes payable in 1995. 46.6 Sec. 61. [REFERENDUM AUTHORITY; CONVERSION.] 46.7 Notwithstanding Minnesota Statutes, section 124A.0311, 46.8 subdivisions 2 and 3, no school district may convert its 46.9 referendum authority currently authorized to be levied against 46.10 net tax capacity to referendum authority authorized to be levied 46.11 against referendum market value effective for taxes payable in 46.12 1996. 46.13 Sec. 62. [TRAINING AND EXPERIENCE LEVY.] 46.14 Notwithstanding Minnesota Statutes, section 124A.22, 46.15 subdivision 4a, a school district's training and experience levy 46.16 for the 1996-1997 school year shall be no greater than it was 46.17 for the prior year. 46.18 Sec. 63. [SUPPLEMENTAL LEVY.] 46.19 Notwithstanding Minnesota Statutes, section 124A.22, 46.20 subdivision 8a, a school district's supplemental levy for the 46.21 1996-1997 school year shall be no greater than it was for the 46.22 prior year. 46.23 Sec. 64. [GENERAL EDUCATION LEVY; OFF-FORMULA DISTRICTS.] 46.24 Notwithstanding Minnesota Statutes, section 124A.23, 46.25 subdivision 3, an off-formula school district's levy for general 46.26 education for the 1996-1997 school year shall be no greater than 46.27 it was for the prior year. An off-formula school district's aid 46.28 reduction for general education levy equity under Minnesota 46.29 Statutes, section 124A.24, shall be computed using the levy 46.30 computed under this section. If an off-formula district 46.31 payments pursuant to Minnesota Statutes, section 124A.035, 46.32 subdivision 4, are reduced from that received in the prior 46.33 school year, the district shall receive additional aid equal to 46.34 the difference. 46.35 Sec. 65. [LEVY REDUCTION.] 46.36 Notwithstanding Minnesota Statutes, section 124A.26, 47.1 subdivision 2, a district's levy reduction for the 1996-1997 47.2 school year under that subdivision shall be no less than it was 47.3 in the prior year. To the extent that the resulting reduction 47.4 is greater than the school district would have otherwise 47.5 received under that subdivision, the school district shall 47.6 receive additional aid equal to the difference. 47.7 Sec. 66. [STAFF DEVELOPMENT LEVY.] 47.8 Notwithstanding Minnesota Statutes, section 124A.292, 47.9 subdivision 3, a school district's levy for staff development 47.10 for the 1996-1997 school year shall be no greater than it was 47.11 for the prior year. 47.12 Sec. 67. [SCHOOL RESTRUCTURING LEVIES.] 47.13 Notwithstanding Minnesota Statutes, section 126.019, a 47.14 school district's levy under that section for taxes payable in 47.15 1996 shall be no greater than it was in the prior year. To the 47.16 extent the resulting levy is less than the district would have 47.17 otherwise been authorized to levy under that section, the 47.18 district shall receive additional aid equal to the difference. 47.19 Sec. 68. [LEVY FOR LOCAL SHARE OF TECHNICAL COLLEGE 47.20 CONSTRUCTION.] 47.21 Notwithstanding Minnesota Statutes, section 136C.411, the 47.22 levy as otherwise authorized under that section for the 47.23 1996-1997 school year shall be no greater than it was for the 47.24 prior year. If the resulting levy is less than is necessary for 47.25 the district to pay its local share of the costs of construction 47.26 in that year, the joint vocational technical district shall 47.27 receive additional aid equal to the difference. 47.28 Sec. 69. [JOINT VOCATIONAL TECHNICAL DISTRICT TAX LEVY.] 47.29 Notwithstanding Minnesota Statutes, section 136C.67, a 47.30 joint vocational technical district's levy under that 47.31 subdivision for the 1996-1997 school year shall be no greater 47.32 than it was for the prior year. 47.33 Sec. 70. [LEVY ADJUSTMENT.] 47.34 Notwithstanding any other law to the contrary, any 47.35 adjustment of a school district's levy authority other than for 47.36 debt redemption fund excesses under Minnesota Statutes, section 48.1 475.61, for taxes payable in 1996 shall not result in a levy 48.2 that is greater than it was in 1995. If the resulting levy 48.3 adjustments reduce the district's revenues below that which the 48.4 district would have otherwise received in the absence of this 48.5 section, the district will receive additional aid equal to the 48.6 difference. 48.7 Sec. 71. [OTHER LEVY AUTHORITY.] 48.8 A school district's levy under any special law or any 48.9 authority other than that contained in Minnesota Statutes, 48.10 chapters 124, 124A, and 136C, shall not be greater for taxes 48.11 payable in 1996 than it was for taxes payable in 1995 except for 48.12 any debt service on obligations, certificates of indebtedness, 48.13 capital notes, or other debt instruments issued prior to March 48.14 30, 1995, or to make payments on installment purchase contracts 48.15 or lease purchase agreements entered into prior to March 30, 48.16 1995. 48.17 Sec. 72. [BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.] 48.18 Notwithstanding Minnesota Statutes, section 272.67, 48.19 subdivision 6, the benefit ratio used for apportioning levies to 48.20 a rural service district for taxes payable in 1996 shall not be 48.21 greater than that in effect for taxes payable in 1995. 48.22 Sec. 73. [PROHIBITION AGAINST INCURRING NEW DEBT.] 48.23 Subdivision 1. [GENERALLY.] (a) After March 30, 1995, no 48.24 municipality as defined in Minnesota Statutes, section 475.51, 48.25 or any special taxing district as defined under Minnesota 48.26 Statutes, section 275.066, may sell obligations, certificates of 48.27 indebtedness, or capital notes under Minnesota Statutes, chapter 48.28 475, section 412.301, or any other law authorizing obligations, 48.29 certificates of indebtedness, capital notes, or other debt 48.30 instruments or enter into installment purchase contracts or 48.31 lease purchase agreements under Minnesota Statutes, section 48.32 465.71, or any other law authorizing installment purchase 48.33 contracts or lease purchase agreements if issuing those debt 48.34 instruments or entering into those contracts would require a 48.35 levy first becoming due in 1996. This restriction does not 48.36 apply to (1) refunding bonds sold to refund bonds originally 49.1 sold before March 30, 1995, or (2) obligations for which the 49.2 amount of the levy first becoming due in 1996 would not exceed 49.3 the amount by which the municipality's total debt service levy 49.4 for taxes payable in 1996 prior to issuance of those obligations 49.5 is less than the municipality's total debt service levy for 49.6 taxes payable in 1995. As used in clause (2), "obligations" 49.7 includes certificates of indebtedness, capital notes, or other 49.8 debt instruments or installment purchase contracts or lease 49.9 purchase agreements. 49.10 (b) For purposes of this section, bonds will be deemed to 49.11 have been sold before March 30, 1995, if: 49.12 (1) an agreement has been entered into between the 49.13 municipality and a purchaser or underwriter for the sale of the 49.14 bonds by that date; 49.15 (2) the issuing municipality is a party to contract or 49.16 letter of understanding entered into before March 30, 1995, with 49.17 the federal government or the state government that requires the 49.18 municipality to pay for a project, and the project will be 49.19 funded with the proceeds of the bonds; or 49.20 (3) the proceeds of the bonds will be used to fund a 49.21 project or acquisition with respect to which the municipality 49.22 has entered into a contract with a builder or supplier before 49.23 March 30. Debt service payments due on bonds described in this 49.24 paragraph during calendar year 1996 will be paid by the state. 49.25 The amount of those payments must be repaid by the municipality 49.26 to the state in three equal annual installments beginning in 49.27 1997. No interest will be due on those payments if timely paid 49.28 by June 15 of the year due. 49.29 Subd. 2. [EXCEPTION.] Notwithstanding subdivision 1, 49.30 certificates of indebtedness, capital notes, installment 49.31 purchase contracts, lease purchase agreements or any other debt 49.32 instruments, and the debt service levies for the obligations 49.33 shall, for purposes of this act, be treated as if sold prior to 49.34 March 30, 1995, if: 49.35 (a) The municipality or other governmental authority has 49.36 satisfied any one of the following conditions prior to March 30, 50.1 1995: 50.2 (1) it has adopted a resolution or ordinance authorizing 50.3 the issuance of the obligations; 50.4 (2) it has declared official intent to issue the 50.5 obligations under federal tax laws and regulations; or 50.6 (3) it has entered into a binding agreement to design or 50.7 construct a project or acquire property to be financed with the 50.8 obligations; and 50.9 (b) The municipality makes a finding at the time of the 50.10 sale of the bonds that no levy will be required for taxes 50.11 payable in 1996 to pay the debt service on the obligations 50.12 because sufficient funds are available from nonproperty tax 50.13 sources to pay the debt service. 50.14 Sec. 74. [ASSESSMENT LIMITATIONS.] 50.15 Subdivision 1. [1995 ASSESSMENT.] Notwithstanding 50.16 Minnesota Statutes, section 273.11, or any other law to the 50.17 contrary, the value of property for the 1995 assessment shall 50.18 not exceed the lesser of its limited market value determined for 50.19 the 1994 assessment pursuant to Minnesota Statutes, section 50.20 273.11, subdivision 1a, or its market value as otherwise 50.21 determined for the 1994 assessment provided that any value 50.22 attributable to new construction or improvements to the extent 50.23 it does not qualify for deferral under Minnesota Statutes, 50.24 section 273.11, subdivision 16, shall be added to the prior 50.25 year's value used to determine its tax capacity. It is further 50.26 provided that previously tax exempt property that loses its tax 50.27 exempt status pursuant to Minnesota Statutes, section 272.02, 50.28 subdivision 4, shall not have its assessment limited in any way 50.29 under this subdivision. 50.30 Subd. 2. [1996 ASSESSMENT.] The provisions of Minnesota 50.31 Statutes, section 273.11, subdivision 1a, shall govern in 50.32 determining the value of property classified as agricultural 50.33 homestead or nonhomestead, residential homestead or 50.34 nonhomestead, or noncommercial seasonal residential for the 1996 50.35 assessment provided that "five percent" shall be substituted for 50.36 "ten percent" in that section. 51.1 Sec. 75. [LEVY LIMITATION TAXES PAYABLE IN 1996.] 51.2 Subdivision 1. [TAXES PAYABLE IN 1996 PROPOSED LEVY.] 51.3 Notwithstanding any other law to the contrary, for purposes of 51.4 the certification required by Minnesota Statutes, section 51.5 275.065, subdivision 1, in 1995, no taxing authority other than 51.6 a school district shall certify to the county auditor a proposed 51.7 property tax levy or in the case of a township, a final property 51.8 tax levy, greater than the amount certified to the county 51.9 auditor pursuant to Minnesota Statutes, section 275.07, 51.10 subdivision 1, in the prior year except as provided in 51.11 subdivisions 3, 4, and 5. 51.12 Subd. 2. [TAXES PAYABLE IN 1996 FINAL LEVY.] 51.13 Notwithstanding any other law to the contrary, for purposes of 51.14 the certification required by Minnesota Statutes, section 51.15 275.07, subdivision 1, in 1995, no taxing authority other than a 51.16 school district shall certify to the county auditor a property 51.17 tax levy greater than the amount certified to the county auditor 51.18 pursuant to Minnesota Statutes, section 275.07, subdivision 1, 51.19 in the prior year except as provided in subdivisions 3 and 4. 51.20 Subd. 3. [SCHOOL DISTRICTS.] School district levies shall 51.21 be governed by sections 10 to 71. 51.22 Subd. 4. [DEBT SERVICE EXCEPTION.] If a payable 1996 levy 51.23 for debt service on obligations, certificates of indebtedness, 51.24 capital notes, or other debt instruments sold prior to March 30, 51.25 1995, or to make payments on installment purchase contracts or 51.26 lease purchase agreements entered into prior to March 30, 1995, 51.27 exceeds the levy a taxing authority certified pursuant to 51.28 Minnesota Statutes, section 275.07, subdivision 1, for taxes 51.29 payable in 1995 for the same purpose, the excess may be levied 51.30 notwithstanding the limitations of subdivisions 1 and 2. 51.31 Subd. 5. [ANNEXATION EXCEPTION.] The city tax rate for 51.32 taxes payable in 1996 on any property annexed under chapter 414 51.33 may not be increased over the city or township tax rate in 51.34 effect on the property in 1995, notwithstanding any law, 51.35 municipal board order, or ordinance to the contrary. The limit 51.36 on the annexing city's levy under subdivisions 1 and 2 may be 52.1 increased in excess of that limit by an amount equal to the net 52.2 tax capacity of the property annexed times the city or township 52.3 tax rate in effect on that property for taxes payable in 1995. 52.4 The levy limit of the city or township from which the property 52.5 was annexed shall be reduced by the same amount. 52.6 Sec. 76. [FREEZE ON LOCAL MATCH REQUIREMENTS.] 52.7 Notwithstanding any other law to the contrary, the local 52.8 funding or local match required from any city, town, or county 52.9 for any state grant or program shall not be increased for 52.10 calendar year 1996 above the dollar amount of the local funding 52.11 or local match required for the same grant or program in 1995, 52.12 regardless of the level of state funding provided; and any new 52.13 local match or local funding requirements for new or amended 52.14 state grants or programs shall not be effective until calendar 52.15 year 1997. Nothing in this section shall affect the eligibility 52.16 of a city, town, or county, for the receipt of state grants or 52.17 program funds in 1996 or reduce the amount of state funding a 52.18 city, town, or county would otherwise receive in 1996 if the 52.19 local match requirements of the state grant or program were met 52.20 in 1996. 52.21 Sec. 77. [SUSPENSION OF SALARY AND BUDGET APPEAL 52.22 AUTHORIZATION.] 52.23 After April 11, 1995, no county sheriff may exercise the 52.24 authority granted under Minnesota Statutes, section 387.20, 52.25 subdivision 7, and no county attorney may exercise the authority 52.26 granted under Minnesota Statutes, section 388.18, subdivision 6, 52.27 to the extent that the salary or budget increase sought in the 52.28 appeal would result in an increase in county expenditures in 52.29 calendar year 1996. 52.30 Sec. 78. [SUSPENSION OF PUBLICATION AND HEARING 52.31 REQUIREMENTS.] 52.32 A local taxing authority is not required to comply with the 52.33 public advertisement notice of Minnesota Statutes, section 52.34 275.065, subdivision 5a, or the public hearing requirement of 52.35 Minnesota Statutes, section 275.065, subdivision 6, with respect 52.36 to taxes levied in 1995, payable in 1996, only. 53.1 Sec. 79. [LEVY LIMITATION TAXES PAYABLE IN 1997.] 53.2 Subdivision 1. [DEFINITION.] The "percentage increase in 53.3 the implicit price deflator" means the percentage change in the 53.4 implicit price deflator for state and local governments 53.5 purchases of goods and services as calculated in Minnesota 53.6 Statutes, section 477A.03, subdivision 3, provided that the 2.5 53.7 percent and five percent limits do not apply and that the 53.8 increase can not be less than zero percent. 53.9 Subd. 2. [TAXES PAYABLE IN 1997 PROPOSED LEVY.] 53.10 Notwithstanding any other law to the contrary, for purposes of 53.11 the certification required by Minnesota Statutes, section 53.12 275.065, subdivision 1, in 1996, no taxing authority other than 53.13 a school district or a joint vocational technical district shall 53.14 certify to the county auditor a proposed property tax levy or in 53.15 the case of a township, a final property tax levy, that is 53.16 greater than the product of: 53.17 (1) the sum of one plus the lesser of (i) three percent, or 53.18 (ii) the percentage increase in the implicit price deflator; and 53.19 (2) the amount certified to the county auditor pursuant to 53.20 Minnesota Statutes, section 275.07, subdivision 1, in the prior 53.21 year, except as provided in subdivisions 4 and 5. 53.22 Subd. 3. [TAXES PAYABLE IN 1997 FINAL LEVY.] 53.23 Notwithstanding any other law to the contrary, for purposes of 53.24 the certification required by Minnesota Statutes, section 53.25 275.07, subdivision 1, in 1996, no taxing authority other than a 53.26 school district or a joint vocational technical district shall 53.27 certify to the county auditor a property tax levy that is 53.28 greater than the product of: 53.29 (1) the sum of one plus the lesser of (i) three percent, or 53.30 (ii) the percentage increase in the implicit price deflator; and 53.31 (2) the amount certified to the county auditor pursuant to 53.32 Minnesota Statutes, section 275.07, subdivision 1, in the prior 53.33 year, except as provided in subdivisions 4, 5, and 6. 53.34 Subd. 4. [REFERENDA.] (a) A taxing authority other than a 53.35 school district or an education district may increase its levy 53.36 above the limits provided in subdivisions 2 and 3, by the amount 54.1 approved by the voters residing in the jurisdiction of the 54.2 authority at a referendum called for the purpose. The 54.3 referendum may be called by the governing body or shall be 54.4 called by the governing body upon written petition of qualified 54.5 voters of the jurisdiction. The referendum shall be conducted 54.6 during the calendar year before the increased levy authority, if 54.7 approved, first becomes payable. Only one election to approve 54.8 an increase may be held in a calendar year. The referendum must 54.9 be held on the first Tuesday after the first Monday in 54.10 November. The ballot shall state the maximum amount of the 54.11 increased levy and the estimated referendum tax rate as a 54.12 percentage of taxable net tax capacity in the year it is to be 54.13 levied. The ballot may contain a textual portion with the 54.14 information required in this subdivision and a question stating 54.15 substantially the following: 54.16 "Shall the increase in the levy proposed by (petition to) 54.17 the governing body of ........., be approved?" 54.18 (b) The governing body shall prepare and deliver by first 54.19 class mail at least 15 days but no more than 30 days prior to 54.20 the day of the referendum to each taxpayer a notice of the 54.21 referendum and the proposed levy increase. The governing body 54.22 need not mail more than once notice to any taxpayer. For the 54.23 purpose of giving mailed notice under this subdivision, owners 54.24 shall be those shown to be owners on the records of the county 54.25 auditor or, in any county where tax statements are mailed by the 54.26 county treasurer, on the records of the county treasurer. Every 54.27 property owner whose name does not appear on the records of the 54.28 county auditor or the county treasurer shall be deemed to have 54.29 waived this mailed notice unless the owner has requested in 54.30 writing that the county auditor or county treasurer, as the case 54.31 may be, include the name on the records for this purpose. The 54.32 notice must project the anticipated amount of tax increase in 54.33 annual dollars and annual percentage for typical residential 54.34 homesteads, agricultural homesteads, apartments, and 54.35 commercial-industrial property within the jurisdiction of the 54.36 taxing authority. 55.1 The notice must include the following statement: "Passage 55.2 of this referendum will result in an increase in your property 55.3 taxes." 55.4 (c) A petition authorized by paragraph (a) shall be 55.5 effective if signed by a number of qualified voters in excess of 55.6 15 percent of the registered voters of the jurisdiction of the 55.7 taxing authority on the day the petition is filed with the 55.8 governing body. A referendum invoked by petition shall be held 55.9 on the date specified in paragraph (a). 55.10 (d) The approval of 50 percent plus one of those voting on 55.11 the question is required to pass a referendum authorized by this 55.12 subdivision. 55.13 (e) A bond authorization under Minnesota Statutes, section 55.14 475.59, shall be deemed to meet the requirements of this 55.15 subdivision provided the ballot includes the information 55.16 required in paragraph (a) and the notice required in paragraph 55.17 (b) is distributed. 55.18 Subd. 5. [DEBT SERVICE EXCEPTION.] If a payable 1997 levy 55.19 for debt service on obligations, certificates of indebtedness, 55.20 capital notes, or other debt instruments sold prior to March 30, 55.21 1995, or to make payments on installment purchase contracts or 55.22 lease purchase agreements entered into prior to March 30, 1995, 55.23 exceeds the levy a taxing authority certified pursuant to 55.24 Minnesota Statutes, section 275.07, subdivision 1, for taxes 55.25 payable in 1996 for the same purpose, or a payable 1997 levy for 55.26 general obligations exceeds any payable 1997 levy required as a 55.27 condition for the issuance of such general obligations, the 55.28 excess may be levied notwithstanding the limitations of 55.29 subdivisions 2 and 3. 55.30 Subd. 6. [LEVY OF TOWN BEING MERGED INTO CITY.] If a town 55.31 has entered into an agreement to merge with a home rule charter 55.32 or statutory city, and the merger has been approved by a 55.33 referendum conducted under Minnesota Statutes, section 465.84, 55.34 the town's levy for taxes payable in 1997 shall not exceed the 55.35 greater of (1) the amount determined under subdivisions 1 to 5, 55.36 or (2) the amount established as a term of the merger agreement 56.1 with the city. 56.2 Sec. 80. [FISCAL DISPARITIES FREEZE.] 56.3 Notwithstanding Minnesota Statutes, section 473F.08, 56.4 subdivision 2, clause (a), the amount to be deducted from a 56.5 governmental unit's net tax capacity for taxes payable in 1996 56.6 under that clause shall equal the amount deducted for taxes 56.7 payable in 1995. Notwithstanding Minnesota Statutes, section 56.8 473F.08, subdivision 2, clause (b), the amount to be added to a 56.9 governmental unit's net tax capacity for taxes payable in 1996 56.10 under that clause shall equal the same amount added for taxes 56.11 payable in 1995. Notwithstanding Minnesota Statutes, section 56.12 473F.08, subdivision 3, the areawide portion of the levy for 56.13 each governmental unit shall be determined using the local tax 56.14 rate for the 1993 levy year. Notwithstanding Minnesota 56.15 Statutes, section 473F.08, subdivision 6, the portion of 56.16 commercial-industrial property within a municipality subject to 56.17 the areawide tax rate shall be computed using the amount 56.18 determined under Minnesota Statutes, sections 473F.06 and 56.19 473F.07, for taxes payable in 1995. 56.20 Sec. 81. [TAX RATE FREEZE.] 56.21 Subdivision 1. [REDUCTION OF LEVY; PAYMENT.] If in the 56.22 course of determining local tax rates for taxes payable in 1996 56.23 after reductions for disparity reduction aid under Minnesota 56.24 Statutes, section 275.08, subdivisions 1c and 1d, the county 56.25 auditor finds the local tax rate exceeds that in effect for 56.26 taxes payable in 1995, the county auditor shall reduce the local 56.27 government's levy so the local tax rate does not exceed that in 56.28 effect for taxes payable in 1995. The difference between the 56.29 levy as originally certified by the local government and the 56.30 reduced levy shall be certified to the commissioner of revenue 56.31 at the time the abstracts are submitted under Minnesota 56.32 Statutes, section 275.29. That amount shall be paid to the 56.33 local government on or before August 31. 56.34 Subd. 2. [APPROPRIATION.] An amount sufficient to pay the 56.35 aid provided for under this section is appropriated from the 56.36 general fund to the commissioner of revenue for payment to 57.1 counties, cities, townships, and special taxing districts. An 57.2 amount sufficient to pay the aid provided for under this section 57.3 is appropriated from the general fund to the commissioner of 57.4 education for payment to school districts. 57.5 Sec. 82. [PENSION LIABILITIES.] 57.6 Notwithstanding any other law or charter provision to the 57.7 contrary, no levy for taxes payable in 1996 for a local police 57.8 and fire relief association for the purpose of amortizing an 57.9 unfunded pension liability may exceed the levy for that purpose 57.10 for taxes payable in 1995. 57.11 Sec. 83. [DUTIES OF TOWNSHIP BOARD OF SUPERVISORS.] 57.12 Notwithstanding Minnesota Statutes, section 365.10, in 1995 57.13 the township board of supervisors shall adjust the levy and in 57.14 1996 the township board of supervisors may adjust the 57.15 expenditures of a township below the level authorized by the 57.16 electors to adjust for any reduction in the previously 57.17 authorized levy of the township pursuant to section 75. 57.18 Sec. 84. [PROPERTY TAX AND EDUCATION AIDS REFORM.] 57.19 Subdivision 1. [RECOMMENDED PROGRAM.] The legislative 57.20 commission on planning and fiscal policy shall prepare and 57.21 recommend to the legislature a property tax reform and education 57.22 aids reform program that includes: 57.23 (1) a property tax classification and class rate system; 57.24 (2) elementary and secondary education aids and levies; and 57.25 (3) aids to local government. 57.26 Subd. 2. [STANDARDS.] (a) The recommended program must 57.27 provide for accountability, equity, revenue adequacy, and 57.28 efficiency as provided in paragraphs (b) to (e). 57.29 (b) The recommended program must provide accountability by 57.30 being understandable to the taxpayer, by linking the costs of 57.31 services to the taxes paid for those services, and by 57.32 correlating the responsibility for raising revenues with the 57.33 ability to make spending decisions. 57.34 (c) The recommended program must provide equity by 57.35 minimizing large, short-term shifts in tax burdens, and by 57.36 ensuring that tax burdens and aids are progressive and related 58.1 to the ability to pay or raise revenue. 58.2 (d) The recommended program must provide for adequate 58.3 revenue by controlling costs and the need for increased revenue, 58.4 minimizing reductions or shifts in revenues available to local 58.5 governments to provide needed services, and directing aids to 58.6 meet needs and fund services based on established funding 58.7 priorities. 58.8 (e) The program must promote efficiency by providing stable 58.9 predictable property taxes and local government revenues that 58.10 are competitive with those of other states and areas so that 58.11 property taxes and aids have minimal impact on the economic 58.12 decisions of taxpayers. 58.13 Subd. 3. [TASK FORCE.] The commission may designate a task 58.14 force to advise the commission in carrying out its duties under 58.15 this section. The task force may include legislators, agency 58.16 and legislative staff, state and local governmental officials, 58.17 educators, and taxpayers and members of the public. The task 58.18 force expires on January 1, 1997. 58.19 Subd. 4. [SERVICES.] The commission may enter into 58.20 contracts for the professional and other services necessary to 58.21 carry out its duties under this section. 58.22 Subd. 5. [REPORT.] The commission shall report its 58.23 recommendations to the legislature on or before January 1, 58.24 1997. The report shall include proposed legislation to 58.25 implement the recommendations of the commission. 58.26 Sec. 85. [UNFUNDED MANDATE PROHIBITION.] 58.27 Subdivision 1. [DEFINITION.] As used in this section, 58.28 "state mandates" has the meaning given in Minnesota Statutes, 58.29 section 3.881. 58.30 Subd. 2. [FUNDING OF THE COST OF MANDATES.] If the fiscal 58.31 note prepared by the commissioner of finance under Minnesota 58.32 Statutes, section 3.982, indicates that a new or expanded 58.33 mandate on a political subdivision in a bill introduced in the 58.34 legislature will impose a statewide cost on counties in excess 58.35 of $500,000 or a statewide cost on cities or townships in excess 58.36 of $250,000, the political subdivisions are not required to 59.1 implement the mandate unless the legislature, by appropriation 59.2 enacted before the mandate is required to be implemented, 59.3 provides reimbursement to the political subdivisions for the 59.4 costs incurred. 59.5 Sec. 86. [SAVINGS CLAUSE.] 59.6 Notwithstanding the repealers in section 88 or any other 59.7 provision in this act to the contrary, nothing in this act 59.8 constitutes an impairment of any obligations, certificates of 59.9 indebtedness, capital notes, or other debt instruments, 59.10 including installment purchase contracts or lease purchase 59.11 agreements, issued before the date of final enactment of this 59.12 act, by a municipality as defined in Minnesota Statutes, section 59.13 469.174, subdivision 6, or a special taxing district as defined 59.14 in Minnesota Statutes, section 275.066. 59.15 Sec. 87. [PIPESTONE COUNTY.] 59.16 Subdivision 1. [BOND AUTHORIZATION.] The county of 59.17 Pipestone may issue its general obligation bonds in a principal 59.18 amount of not to exceed $598,000 to defray the expense of repair 59.19 and renovation of the county courthouse and courthouse annex. 59.20 The bonds shall be issued in accordance with Minnesota Statutes, 59.21 chapter 475. No further election proceedings are required and 59.22 Minnesota Statutes, section 275.61, shall not apply. 59.23 Subd. 2. [EFFECTIVE DATE.] This section takes effect the 59.24 day after the county board of Pipestone county complies with 59.25 Minnesota Statutes, section 645.021, subdivision 3. 59.26 Sec. 88. [REPEALER.] 59.27 Subdivision 1. Minnesota Statutes 1994, sections 124.01; 59.28 124.05; 124.06; 124.07; 124.76; 124.82; 124.829; 124.83; 124.84; 59.29 124.85; 124.86; 124.90; 124.91; 124.912; 124.914; 124.916; 59.30 124.918; 124.95; 124.961; 124.962; 124.97; 124A.02, subdivisions 59.31 16, 23, and 24; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 59.32 1h, and 1i; 124A.0311; 124A.032; 124A.04; 124A.22, subdivisions 59.33 1, 2, 3, 4, 4a, 4b, 6, 6a, 8, and 9; 124A.23; 124A.24; 124A.26, 59.34 subdivisions 1, 2, and 3; 124A.27; 124A.28; and 124A.29, 59.35 subdivision 2, are repealed. Laws 1991, chapter 265, article 7, 59.36 section 35, is repealed. 60.1 Subd. 2. Minnesota Statutes 1994, sections 273.13; 60.2 273.135; 273.136; 273.1391; 473F.001; 473F.01; 473F.02; 473F.03; 60.3 473F.05; 473F.06; 473F.07; 473F.08; 473F.09; 473F.10; 473F.11; 60.4 473F.13; 477A.011; 477A.012; 477A.0121; 477A.0122; 477A.013; 60.5 477A.0132; 477A.014; 477A.015; 477A.016; 477A.017; 477A.03; 60.6 477A.11; 477A.12; 477A.13; 477A.14; and 477A.15, are repealed. 60.7 Subd. 3. [REPEALER.] Minnesota Statutes 1994, sections 60.8 245.48; and 256H.12, subdivision 3, are repealed. 60.9 Sec. 89. [EFFECTIVE DATE.] 60.10 Sections 2 to 5 and 85, subdivision 3, are effective July 60.11 1, 1995. Section 88, subdivision 2, is effective for taxes 60.12 payable in 1998, and section 88, subdivision 1, is effective for 60.13 the 1998-1999 school year, provided that if the legislature does 60.14 not pass and the governor does not approve legislation by the 60.15 conclusion of the 1997 session that states in its body that it 60.16 is replacing the provisions of the repealed chapters and 60.17 sections in section 88, the repealed chapters and sections are 60.18 reenacted. 60.19 Sections 10 to 71, and section 75, subdivision 3, will not 60.20 become effective if a bill styled as S.F. No. 944 is enacted 60.21 during the 1995 session of the legislature and that bill 60.22 provides for the imposition of levies by school districts for 60.23 taxes payable in 1996. 60.24 ARTICLE 4 60.25 PROPERTY TAXES 60.26 Section 1. Minnesota Statutes 1994, section 216B.16, is 60.27 amended by adding a subdivision to read: 60.28 Subd. 6d. [WIND ENERGY; PROPERTY TAX.] Contracts for the 60.29 purchase of electric energy produced by a wind energy conversion 60.30 system installed after June 1, 1995, and before January 1, 1997, 60.31 between a public utility and the owner or developer of the 60.32 system must provide for the public utility to be liable for 60.33 property taxes imposed on the system. The commission shall 60.34 permit a public utility that is purchasing electricity produced 60.35 by a wind energy conversion system installed after June 1, 1995, 60.36 and before January 1, 1997, to recover in its rates payments 61.1 made by the public utility for property taxes paid on the system. 61.2 Sec. 2. Minnesota Statutes 1994, section 272.02, 61.3 subdivision 1, is amended to read: 61.4 Subdivision 1. All property described in this section to 61.5 the extent herein limited shall be exempt from taxation: 61.6 (1) All public burying grounds. 61.7 (2) All public schoolhouses. 61.8 (3) All public hospitals. 61.9 (4) All academies, colleges, and universities, and all 61.10 seminaries of learning. 61.11 (5) All churches, church property, and houses of worship. 61.12 (6) Institutions of purely public charity except parcels of 61.13 property containing structures and the structures described in 61.14 section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 61.15 and (3), or paragraph (d), other than those that qualify for 61.16 exemption under clause (25). 61.17 (7) All public property exclusively used for any public 61.18 purpose. 61.19 (8) Except for the taxable personal property enumerated 61.20 below, all personal property and the property described in 61.21 section 272.03, subdivision 1, paragraphs (c) and (d), shall be 61.22 exempt. 61.23 The following personal property shall be taxable: 61.24 (a) personal property which is part of an electric 61.25 generating, transmission, or distribution system or a pipeline 61.26 system transporting or distributing water, gas, crude oil, or 61.27 petroleum products or mains and pipes used in the distribution 61.28 of steam or hot or chilled water for heating or cooling 61.29 buildings and structures; 61.30 (b) railroad docks and wharves which are part of the 61.31 operating property of a railroad company as defined in section 61.32 270.80; 61.33 (c) personal property defined in section 272.03, 61.34 subdivision 2, clause (3); 61.35 (d) leasehold or other personal property interests which 61.36 are taxed pursuant to section 272.01, subdivision 2; 273.124, 62.1 subdivision 7; or 273.19, subdivision 1; or any other law 62.2 providing the property is taxable as if the lessee or user were 62.3 the fee owner; 62.4 (e) manufactured homes and sectional structures, including 62.5 storage sheds, decks, and similar removable improvements 62.6 constructed on the site of a manufactured home, sectional 62.7 structure, park trailer or travel trailer as provided in section 62.8 273.125, subdivision 8, paragraph (f); and 62.9 (f) flight property as defined in section 270.071. 62.10 (9) Personal property used primarily for the abatement and 62.11 control of air, water, or land pollution to the extent that it 62.12 is so used, and real property which is used primarily for 62.13 abatement and control of air, water, or land pollution as part 62.14 of an agricultural operation, as a part of a centralized 62.15 treatment and recovery facility operating under a permit issued 62.16 by the Minnesota pollution control agency pursuant to chapters 62.17 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 62.18 and 7045.0020 to 7045.1260, as a wastewater treatment facility 62.19 and for the treatment, recovery, and stabilization of metals, 62.20 oils, chemicals, water, sludges, or inorganic materials from 62.21 hazardous industrial wastes, or as part of an electric 62.22 generation system. For purposes of this clause, personal 62.23 property includes ponderous machinery and equipment used in a 62.24 business or production activity that at common law is considered 62.25 real property. 62.26 Any taxpayer requesting exemption of all or a portion of 62.27 any real property or any equipment or device, or part thereof, 62.28 operated primarily for the control or abatement of air or water 62.29 pollution shall file an application with the commissioner of 62.30 revenue. The equipment or device shall meet standards, rules, 62.31 or criteria prescribed by the Minnesota pollution control 62.32 agency, and must be installed or operated in accordance with a 62.33 permit or order issued by that agency. The Minnesota pollution 62.34 control agency shall upon request of the commissioner furnish 62.35 information or advice to the commissioner. On determining that 62.36 property qualifies for exemption, the commissioner shall issue 63.1 an order exempting the property from taxation. The equipment or 63.2 device shall continue to be exempt from taxation as long as the 63.3 permit issued by the Minnesota pollution control agency remains 63.4 in effect. 63.5 (10) Wetlands. For purposes of this subdivision, 63.6 "wetlands" means: (i) land described in section 103G.005, 63.7 subdivision 18; (ii) land which is mostly under water, produces 63.8 little if any income, and has no use except for wildlife or 63.9 water conservation purposes, provided it is preserved in its 63.10 natural condition and drainage of it would be legal, feasible, 63.11 and economically practical for the production of livestock, 63.12 dairy animals, poultry, fruit, vegetables, forage and grains, 63.13 except wild rice; or (iii) land in a wetland preservation area 63.14 under sections 103F.612 to 103F.616. "Wetlands" under items (i) 63.15 and (ii) include adjacent land which is not suitable for 63.16 agricultural purposes due to the presence of the wetlands, but 63.17 do not include woody swamps containing shrubs or trees, wet 63.18 meadows, meandered water, streams, rivers, and floodplains or 63.19 river bottoms. Exemption of wetlands from taxation pursuant to 63.20 this section shall not grant the public any additional or 63.21 greater right of access to the wetlands or diminish any right of 63.22 ownership to the wetlands. 63.23 (11) Native prairie. The commissioner of the department of 63.24 natural resources shall determine lands in the state which are 63.25 native prairie and shall notify the county assessor of each 63.26 county in which the lands are located. Pasture land used for 63.27 livestock grazing purposes shall not be considered native 63.28 prairie for the purposes of this clause. Upon receipt of an 63.29 application for the exemption provided in this clause for lands 63.30 for which the assessor has no determination from the 63.31 commissioner of natural resources, the assessor shall refer the 63.32 application to the commissioner of natural resources who shall 63.33 determine within 30 days whether the land is native prairie and 63.34 notify the county assessor of the decision. Exemption of native 63.35 prairie pursuant to this clause shall not grant the public any 63.36 additional or greater right of access to the native prairie or 64.1 diminish any right of ownership to it. 64.2 (12) Property used in a continuous program to provide 64.3 emergency shelter for victims of domestic abuse, provided the 64.4 organization that owns and sponsors the shelter is exempt from 64.5 federal income taxation pursuant to section 501(c)(3) of the 64.6 Internal Revenue Code of 1986, as amended through December 31, 64.7 1992, notwithstanding the fact that the sponsoring organization 64.8 receives funding under section 8 of the United States Housing 64.9 Act of 1937, as amended. 64.10 (13) If approved by the governing body of the municipality 64.11 in which the property is located, property not exceeding one 64.12 acre which is owned and operated by any senior citizen group or 64.13 association of groups that in general limits membership to 64.14 persons age 55 or older and is organized and operated 64.15 exclusively for pleasure, recreation, and other nonprofit 64.16 purposes, no part of the net earnings of which inures to the 64.17 benefit of any private shareholders; provided the property is 64.18 used primarily as a clubhouse, meeting facility, or recreational 64.19 facility by the group or association and the property is not 64.20 used for residential purposes on either a temporary or permanent 64.21 basis. 64.22 (14) To the extent provided by section 295.44, real and 64.23 personal property used or to be used primarily for the 64.24 production of hydroelectric or hydromechanical power on a site 64.25 owned by the state or a local governmental unit which is 64.26 developed and operated pursuant to the provisions of section 64.27 103G.535. 64.28 (15) If approved by the governing body of the municipality 64.29 in which the property is located, and if construction is 64.30 commenced after June 30, 1983: 64.31 (a) a "direct satellite broadcasting facility" operated by 64.32 a corporation licensed by the federal communications commission 64.33 to provide direct satellite broadcasting services using direct 64.34 broadcast satellites operating in the 12-ghz. band; and 64.35 (b) a "fixed satellite regional or national program service 64.36 facility" operated by a corporation licensed by the federal 65.1 communications commission to provide fixed satellite-transmitted 65.2 regularly scheduled broadcasting services using satellites 65.3 operating in the 6-ghz. band. 65.4 An exemption provided by clause (15) shall apply for a period 65.5 not to exceed five years. When the facility no longer qualifies 65.6 for exemption, it shall be placed on the assessment rolls as 65.7 provided in subdivision 4. Before approving a tax exemption 65.8 pursuant to this paragraph, the governing body of the 65.9 municipality shall provide an opportunity to the members of the 65.10 county board of commissioners of the county in which the 65.11 facility is proposed to be located and the members of the school 65.12 board of the school district in which the facility is proposed 65.13 to be located to meet with the governing body. The governing 65.14 body shall present to the members of those boards its estimate 65.15 of the fiscal impact of the proposed property tax exemption. 65.16 The tax exemption shall not be approved by the governing body 65.17 until the county board of commissioners has presented its 65.18 written comment on the proposal to the governing body or 30 days 65.19 have passed from the date of the transmittal by the governing 65.20 body to the board of the information on the fiscal impact, 65.21 whichever occurs first. 65.22 (16) Real and personal property owned and operated by a 65.23 private, nonprofit corporation exempt from federal income 65.24 taxation pursuant to United States Code, title 26, section 65.25 501(c)(3), primarily used in the generation and distribution of 65.26 hot water for heating buildings and structures. 65.27 (17) Notwithstanding section 273.19, state lands that are 65.28 leased from the department of natural resources under section 65.29 92.46. 65.30 (18) Electric power distribution lines and their 65.31 attachments and appurtenances, that are used primarily for 65.32 supplying electricity to farmers at retail. 65.33 (19) Transitional housing facilities. "Transitional 65.34 housing facility" means a facility that meets the following 65.35 requirements. (i) It provides temporary housing to individuals, 65.36 couples, or families. (ii) It has the purpose of reuniting 66.1 families and enabling parents or individuals to obtain 66.2 self-sufficiency, advance their education, get job training, or 66.3 become employed in jobs that provide a living wage. (iii) It 66.4 provides support services such as child care, work readiness 66.5 training, and career development counseling; and a 66.6 self-sufficiency program with periodic monitoring of each 66.7 resident's progress in completing the program's goals. (iv) It 66.8 provides services to a resident of the facility for at least 66.9 three months but no longer than three years, except residents 66.10 enrolled in an educational or vocational institution or job 66.11 training program. These residents may receive services during 66.12 the time they are enrolled but in no event longer than four 66.13 years. (v) It is owned and operated or under lease from a unit 66.14 of government or governmental agency under a property 66.15 disposition program and operated by one or more organizations 66.16 exempt from federal income tax under section 501(c)(3) of the 66.17 Internal Revenue Code of 1986, as amended through December 31, 66.18 1992. This exemption applies notwithstanding the fact that the 66.19 sponsoring organization receives financing by a direct federal 66.20 loan or federally insured loan or a loan made by the Minnesota 66.21 housing finance agency under the provisions of either Title II 66.22 of the National Housing Act or the Minnesota housing finance 66.23 agency law of 1971 or rules promulgated by the agency pursuant 66.24 to it, and notwithstanding the fact that the sponsoring 66.25 organization receives funding under Section 8 of the United 66.26 States Housing Act of 1937, as amended. 66.27 (20) Real and personal property, including leasehold or 66.28 other personal property interests, owned and operated by a 66.29 corporation if more than 50 percent of the total voting power of 66.30 the stock of the corporation is owned collectively by: (i) the 66.31 board of regents of the University of Minnesota, (ii) the 66.32 University of Minnesota Foundation, an organization exempt from 66.33 federal income taxation under section 501(c)(3) of the Internal 66.34 Revenue Code of 1986, as amended through December 31, 1992, and 66.35 (iii) a corporation organized under chapter 317A, which by its 66.36 articles of incorporation is prohibited from providing pecuniary 67.1 gain to any person or entity other than the regents of the 67.2 University of Minnesota; which property is used primarily to 67.3 manage or provide goods, services, or facilities utilizing or 67.4 relating to large-scale advanced scientific computing resources 67.5 to the regents of the University of Minnesota and others. 67.6 (21) Wind energy conversion systems, as defined in section 67.7 216C.06, subdivision 12,installed after January 1, 1991,and 67.8 used as an electric power source.are exempt to the extent 67.9 provided in items (i) to (iii): 67.10 (i) systems installed after January 1, 1991, and before 67.11 January 1, 1995, are exempt; 67.12 (ii) systems installed on or after January 1, 1995, located 67.13 within the same county and owned by the same owner that produce 67.14 in aggregate two or less megawatts of electricity, as measured 67.15 by the nameplate rating, are exempt; 67.16 (iii) systems installed on or after January 1, 1995, 67.17 located within the same county and owned by the same owner that 67.18 produce in aggregate more than two megawatts of electricity, as 67.19 measured by the nameplate rating, are taxable to the following 67.20 extent: 67.21 (A) the foundation or pads are taxable upon installation; 67.22 and 67.23 (B) the devices in such a system that convert wind energy 67.24 to a form of usable energy and any supporting or protective 67.25 structures are exempt. 67.26 (22) Containment tanks, cache basins, and that portion of 67.27 the structure needed for the containment facility used to 67.28 confine agricultural chemicals as defined in section 18D.01, 67.29 subdivision 3, as required by the commissioner of agriculture 67.30 under chapter 18B or 18C. 67.31 (23) Photovoltaic devices, as defined in section 216C.06, 67.32 subdivision 13, installed after January 1, 1992, and used to 67.33 produce or store electric power. 67.34 (24) Real and personal property owned and operated by a 67.35 private, nonprofit corporation exempt from federal income 67.36 taxation pursuant to United States Code, title 26, section 68.1 501(c)(3), primarily used for an ice arena or ice rink, and used 68.2 primarily for youth and high school programs. 68.3 (25) A structure that is situated on real property that is 68.4 used for: 68.5 (i) housing for the elderly or for low- and moderate-income 68.6 families as defined in Title II of the National Housing Act, as 68.7 amended through December 31, 1990, and funded by a direct 68.8 federal loan or federally insured loan made pursuant to Title II 68.9 of the act; or 68.10 (ii) housing lower income families or elderly or 68.11 handicapped persons, as defined in section 8 of the United 68.12 States Housing Act of 1937, as amended. 68.13 In order for a structure to be exempt under (i) or (ii), it 68.14 must also meet each of the following criteria: 68.15 (A) is owned by an entity which is operated as a nonprofit 68.16 corporation organized under chapter 317A; 68.17 (B) is owned by an entity which has not entered into a 68.18 housing assistance payments contract under section 8 of the 68.19 United States Housing Act of 1937, or, if the entity which owns 68.20 the structure has entered into a housing assistance payments 68.21 contract under section 8 of the United States Housing Act of 68.22 1937, the contract provides assistance for less than 90 percent 68.23 of the dwelling units in the structure, excluding dwelling units 68.24 intended for management or maintenance personnel; 68.25 (C) operates an on-site congregate dining program in which 68.26 participation by residents is mandatory, and provides assisted 68.27 living or similar social and physical support services for 68.28 residents; and 68.29 (D) was not assessed and did not pay tax under chapter 273 68.30 prior to the 1991 levy, while meeting the other conditions of 68.31 this clause. 68.32 An exemption under this clause remains in effect for taxes 68.33 levied in each year or partial year of the term of its permanent 68.34 financing. 68.35 (26) Real and personal property that is located in the 68.36 Superior National Forest, and owned or leased and operated by a 69.1 nonprofit organization that is exempt from federal income 69.2 taxation under section 501(c)(3) of the Internal Revenue Code of 69.3 1986, as amended through December 31, 1992, and primarily used 69.4 to provide recreational opportunities for disabled veterans and 69.5 their families. 69.6 (27) Manure pits and appurtenances, which may include 69.7 slatted floors and pipes, installed or operated in accordance 69.8 with a permit, order, or certificate of compliance issued by the 69.9 Minnesota pollution control agency. The exemption shall 69.10 continue for as long as the permit, order, or certificate issued 69.11 by the Minnesota pollution control agency remains in effect. 69.12 (28) Notwithstanding clause (8), item (a), attached 69.13 machinery and other personal property which is part of a 69.14 facility containing a cogeneration system as described in 69.15 section 216B.166, subdivision 2, paragraph (a), if the 69.16 cogeneration system has met the following criteria: (i) the 69.17 system utilizes natural gas as a primary fuel and the 69.18 cogenerated steam initially replaces steam generated from 69.19 existing thermal boilers utilizing coal; (ii) the facility 69.20 developer is selected as a result of a procurement process 69.21 ordered by the public utilities commission; and (iii) 69.22 construction of the facility is commenced after July 1, 1994, 69.23 and before July 1, 1997. 69.24 (29) Real property acquired by a home rule charter city, 69.25 statutory city, county, town, or school district under a lease 69.26 purchase agreement or an installment purchase contract during 69.27 the term of the lease purchase agreement as long as and to the 69.28 extent that the property is used by the city, county, town, or 69.29 school district and devoted to a public use and to the extent it 69.30 is not subleased to any private individual, entity, association, 69.31 or corporation in connection with a business or enterprise 69.32 operated for profit. 69.33 Sec. 3. Minnesota Statutes 1994, section 273.11, 69.34 subdivision 16, is amended to read: 69.35 Subd. 16. [VALUATION EXCLUSION FOR CERTAIN IMPROVEMENTS.] 69.36 Improvements to homestead property made before January 2, 2003, 70.1 shall be fully or partially excluded from the value of the 70.2 property for assessment purposes provided that: 70.3 (1) the house is at least 35 years old at the time of the 70.4 improvement; and 70.5 (2) either: 70.6 (a) the assessor's estimated market value of the house on 70.7 January 2 of the current year is equal to or less than 70.8 $150,000,; or 70.9 (b) if the estimated market value of the house is over 70.10 $150,000 market value but is less than $300,000 on January 2 of 70.11 the current year, the property qualifies if: 70.12 (i) it is located in a city or town in which 50 percent or 70.13 more of the homes were constructed before 1960 based upon the 70.14 1990 federal census, and 70.15 (ii) the city or town's median family income based upon the 70.16 1990 federal census is less than the statewide median family 70.17 income based upon the 1990 federal census; or 70.18 (c) if the estimated market value of the house is over 70.19 $300,000 on January 2 of the current year, the property 70.20 qualifies if: 70.21 (i) it meets the qualifications of paragraph (b), items (i) 70.22 and (ii); and 70.23 (ii) it is located in a city of the first class within the 70.24 metropolitan area defined in section 473.121, subdivision 2. 70.25Any house which has an estimated market value of $300,00070.26or more on January 2 of the current year is not eligible to70.27receive any property valuation exclusion under this section.70.28 For purposes of determining this eligibility, "house" means land 70.29 and buildings. 70.30 The age of a residence is the number of years that the 70.31 residence has existed at its present site. In the case of an 70.32 owner-occupied duplex or triplex, the improvement is eligible 70.33 regardless of which portion of the property was improved. 70.34 If the property lies in a jurisdiction which is subject to 70.35 a building permit process, a building permit must have been 70.36 issued prior to commencement of the improvement. Any 71.1 improvement must add at least $1,000 to the value of the 71.2 property to be eligible for exclusion under this subdivision. 71.3 Only improvements to the structure which is the residence of the 71.4 qualifying homesteader or construction of or improvements to no 71.5 more than one two-car garage per residence qualify for the 71.6 provisions of this subdivision. If an improvement was begun 71.7 between January 2, 1992, and January 2, 1993, any value added 71.8 from that improvement for the January 1994 and subsequent 71.9 assessments shall qualify for exclusion under this subdivision 71.10 provided that a building permit was obtained for the improvement 71.11 between January 2, 1992, and January 2, 1993. Whenever a 71.12 building permit is issued for property currently classified as 71.13 homestead, the issuing jurisdiction shall notify the property 71.14 owner of the possibility of valuation exclusion under this 71.15 subdivision. The assessor shall require an application, 71.16 including documentation of the age of the house from the owner, 71.17 if unknown by the assessor. The application may be filed 71.18 subsequent to the date of the building permit provided that the 71.19 application is filed prior to the next assessment date. 71.20 After the adjournment of the 1994 county board of 71.21 equalization meetings, no exclusion may be granted for an 71.22 improvement by a local board of review or county board of 71.23 equalization unless (1) a building permit was issued prior to 71.24 the commencement of the improvement if the jurisdiction requires 71.25 a building permit, and (2) an application was completed on a 71.26 timely basis. No abatement of the taxes for qualifying 71.27 improvements may be granted by a county board unless (1) a 71.28 building permit was issued prior to commencement of the 71.29 improvement if the jurisdiction requires a building permit, and 71.30 (2) an application was completed on a timely basis. 71.31 The assessor shall note the qualifying value of each 71.32 improvement on the property's record, and the sum of those 71.33 amounts shall be subtracted from the value of the property in 71.34 each year for ten years after the improvement has been made, at 71.35 which time an amount equal to 20 percent of the qualifying value 71.36 shall be added back in each of the five subsequent assessment 72.1 years. The valuation exclusion shall terminate whenever (1) the 72.2 property is sold, or (2) the property is reclassified to a class 72.3 which does not qualify for treatment under this subdivision. 72.4 Improvements made by an occupant who is the purchaser of the 72.5 property under a conditional purchase contract do not qualify 72.6 under this subdivision unless the seller of the property is a 72.7 governmental entity. The qualifying value of the property shall 72.8 be computed based upon the increase from that structure's market 72.9 value as of January 2 preceding the acquisition of the property 72.10 by the governmental entity. 72.11 The total qualifying value for a homestead may not exceed 72.12 $50,000. The total qualifying value for a homestead with a 72.13 house that is less than 70 years old may not exceed $25,000. 72.14 The term "qualifying value" means the increase in estimated 72.15 market value resulting from the improvement if the improvement 72.16 occurs when the house is at least 70 years old, or one-half of 72.17 the increase in estimated market value resulting from the 72.18 improvement otherwise. The $25,000 and $50,000 maximum 72.19 qualifying value under this subdivision may result from up to 72.20 three separate improvements to the homestead. The application 72.21 shall state, in clear language, that if more than three 72.22 improvements are made to the qualifying property, a taxpayer may 72.23 choose which three improvements are eligible, provided that 72.24 after the taxpayer has made the choice and any valuation 72.25 attributable to those improvements has been excluded from 72.26 taxation, no further changes can be made by the taxpayer. 72.27 If 50 percent or more of the square footage of a structure 72.28 is voluntarily razed or removed, the valuation increase 72.29 attributable to any subsequent improvements to the remaining 72.30 structure does not qualify for the exclusion under this 72.31 subdivision. If a structure is unintentionally or accidentally 72.32 destroyed by a natural disaster, the property is eligible for an 72.33 exclusion under this subdivision provided that the structure was 72.34 not completely destroyed. The qualifying value on property 72.35 destroyed by a natural disaster shall be computed based upon the 72.36 increase from that structure's market value as determined on 73.1 January 2 of the year in which the disaster occurred. A 73.2 property receiving benefits under the homestead disaster 73.3 provisions under section 273.123 is not disqualified from 73.4 receiving an exclusion under this subdivision. If any 73.5 combination of improvements made to a structure after January 1, 73.6 1993, increases the size of the structure by 100 percent or 73.7 more, the valuation increase attributable to the portion of the 73.8 improvement that causes the structure's size to exceed 100 73.9 percent does not qualify for exclusion under this subdivision. 73.10 Sec. 4. Minnesota Statutes 1994, section 273.124, 73.11 subdivision 1, is amended to read: 73.12 Subdivision 1. [GENERAL RULE.] (a) Residential real estate 73.13 that is occupied and used for the purposes of a homestead by its 73.14 owner, who must be a Minnesota resident, is a residential 73.15 homestead. 73.16 Agricultural land, as defined in section 273.13, 73.17 subdivision 23, that is occupied and used as a homestead by its 73.18 owner, who must be a Minnesota resident, is an agricultural 73.19 homestead. 73.20 Dates for establishment of a homestead and homestead 73.21 treatment provided to particular types of property are as 73.22 provided in this section. 73.23 Property of a trustee, beneficiary, or grantor of a trust 73.24 is not disqualified from receiving homestead benefits if the 73.25 homestead requirements under this chapter are satisfied. 73.26 The assessor shall require proof, as provided in 73.27 subdivision 13, of the facts upon which classification as a 73.28 homestead may be determined. Notwithstanding any other law, the 73.29 assessor may at any time require a homestead application to be 73.30 filed in order to verify that any property classified as a 73.31 homestead continues to be eligible for homestead status. 73.32 When there is a name change or a transfer of homestead 73.33 property, the assessor may reclassify the property in the next 73.34 assessment unless a homestead application is filed to verify 73.35 that the property continues to qualify for homestead 73.36 classification. 74.1 (b) For purposes of this section, homestead property shall 74.2 include property which is used for purposes of the homestead but 74.3 is separated from the homestead by a road, street, lot, 74.4 waterway, or other similar intervening property. The term "used 74.5 for purposes of the homestead" shall include but not be limited 74.6 to uses for gardens, garages, or other outbuildings commonly 74.7 associated with a homestead, but shall not include vacant land 74.8 held primarily for future development. In order to receive 74.9 homestead treatment for the noncontiguous property, the owner 74.10 shall apply for it to the assessor by July 1 of the year when 74.11 the treatment is initially sought. After initial qualification 74.12 for the homestead treatment, additional applications for 74.13 subsequent years are not required. 74.14 (c) Residential real estate that is occupied and used for 74.15 purposes of a homestead by a relative of the owner is a 74.16 homestead but only to the extent of the homestead treatment that 74.17 would be provided if the related owner occupied the property. 74.18 For purposes of this paragraph and paragraph (f), "relative" 74.19 means a parent, stepparent, child, stepchild, grandparent, 74.20 grandchild, brother, sister, uncle, or aunt. This relationship 74.21 may be by blood or marriage. Propertythat wasclassified as 74.22 seasonal recreational residential propertyat the time when74.23treatment under this paragraph would first apply shall continue74.24to be classified as seasonal recreational residential property74.25for the first four assessment years beginning after the date74.26when the relative of the owner occupies the property as a74.27homesteadwill not be reclassified as a homestead unless it is 74.28 occupied as a homestead by the owner; thisdelayprohibition 74.29 also applies to property that, in the absence of this paragraph, 74.30 would have been classified as seasonal recreational residential 74.31 property at the time when the residence was constructed. 74.32 Neither the related occupant nor the owner of the property may 74.33 claim a property tax refund under chapter 290A for a homestead 74.34 occupied by a relative. In the case of a residence located on 74.35 agricultural land, only the house, garage, and immediately 74.36 surrounding one acre of land shall be classified as a homestead 75.1 under this paragraph, except as provided in paragraph (d). 75.2 (d) Agricultural property that is occupied and used for 75.3 purposes of a homestead by a relative of the owner, is a 75.4 homestead, only to the extent of the homestead treatment that 75.5 would be provided if the related owner occupied the property, 75.6 and only if all of the following criteria are met: 75.7 (1) the relative who is occupying the agricultural property 75.8 is a son, daughter, father, or mother of the owner of the 75.9 agricultural property or a son or daughter of the spouse of the 75.10 owner of the agricultural property, 75.11 (2) the owner of the agricultural property must be a 75.12 Minnesota resident, 75.13 (3) the owner of the agricultural property must not receive 75.14 homestead treatment on any other agricultural property in 75.15 Minnesota, and 75.16 (4) the owner of the agricultural property is limited to 75.17 only one agricultural homestead per family under this paragraph. 75.18 Neither the related occupant nor the owner of the property 75.19 may claim a property tax refund under chapter 290A for a 75.20 homestead occupied by a relative qualifying under this 75.21 paragraph. For purposes of this paragraph, "agricultural 75.22 property" means the house, garage, other farm buildings and 75.23 structures, and agricultural land. 75.24 Application must be made to the assessor by the owner of 75.25 the agricultural property to receive homestead benefits under 75.26 this paragraph. The assessor may require the necessary proof 75.27 that the requirements under this paragraph have been met. 75.28 (e) In the case of property owned by a property owner who 75.29 is married, the assessor must not deny homestead treatment in 75.30 whole or in part if only one of the spouses occupies the 75.31 property and the other spouse is absent due to: (1) marriage 75.32 dissolution proceedings, (2) legal separation, (3) employment or 75.33 self-employment in another location as provided under 75.34 subdivision 13, or (4) residence in a nursing home or boarding 75.35 care facility. Homestead treatment, in whole or in part, shall 75.36 not be denied to the spouse of an owner if he or she previously 76.1 occupied the residence with the owner and the absence of the 76.2 owner is due to one of the prior four exceptions. 76.3 (f) If an individual is purchasing property with the intent 76.4 of claiming it as a homestead and is required by the terms of 76.5 the financing agreement to have a relative shown on the deed as 76.6 a coowner, the assessor shall allow a full homestead 76.7 classification and extend full homestead credit. This provision 76.8 only applies to first-time purchasers, whether married or 76.9 single, or to a person who had previously been married and is 76.10 purchasing as a single individual for the first time. The 76.11 application for homestead benefits must be on a form prescribed 76.12 by the commissioner and must contain the data necessary for the 76.13 assessor to determine if full homestead benefits are warranted. 76.14 Sec. 5. Minnesota Statutes 1994, section 273.124, 76.15 subdivision 13, is amended to read: 76.16 Subd. 13. [HOMESTEAD APPLICATION.] (a) A person who meets 76.17 the homestead requirements under subdivision 1 must file a 76.18 homestead application with the county assessor to initially 76.19 obtain homestead classification. 76.20 (b) On or before January 2, 1993, each county assessor 76.21 shall mail a homestead application to the owner of each parcel 76.22 of property within the county which was classified as homestead 76.23 for the 1992 assessment year. The format and contents of a 76.24 uniform homestead application shall be prescribed by the 76.25 commissioner of revenue. The commissioner shall consult with 76.26 the chairs of the house and senate tax committees on the 76.27 contents of the homestead application form. The application 76.28 must clearly inform the taxpayer that this application must be 76.29 signed by all owners who occupy the property or by the 76.30 qualifying relative and returned to the county assessor in order 76.31 for the property to continue receiving homestead treatment. The 76.32 envelope containing the homestead application shall clearly 76.33 identify its contents and alert the taxpayer of its necessary 76.34 immediate response. 76.35 (c) Every property owner applying for homestead 76.36 classification must furnish to the county assessor the social 77.1 security number of each occupant who is listed as an owner of 77.2 the property on the deed of record, the name and address of each 77.3 owner who does not occupy the property, and the name and social 77.4 security number of each owner's spouse who occupies the 77.5 property. The application must be signed by each owner who 77.6 occupies the property and by each owner's spouse who occupies 77.7 the property, or, in the case of property that qualifies as a 77.8 homestead under subdivision 1, paragraph (c), by the qualifying 77.9 relative. 77.10 If a property owner occupies a homestead, the property 77.11 owner's spouse may not claim another property as a homestead 77.12 unless the property owner and the property owner's spouse file 77.13 with the assessor an affidavit or other proof required by the 77.14 assessor stating that the property owner's spouse does not 77.15 occupy the homestead because marriage dissolution proceedings 77.16 are pending, the spouses are legally separated, or the spouse's 77.17 employment or self-employment at a location distant from the 77.18 other spouse's place of employment requires the spouse to have a 77.19 separate homestead. The assessor may require proof of 77.20 employment or self-employment and employment or self-employment 77.21 location, or proof of dissolution proceedings or legal 77.22 separation. 77.23If the social security number or affidavit or other proof77.24is not provided, the county assessor shall classify the property77.25as nonhomestead.Owners or spouses occupying residences owned 77.26 by their spouses and previously occupied with the other spouse, 77.27 either of whom fail to include the other spouse's name and 77.28 social security number of the homestead application or provide 77.29 the affidavits or other proof requested, will be deemed to have 77.30 elected to receive only partial homestead treatment of their 77.31 residence. The remainder of the residence will be classified as 77.32 nonhomestead residential. When an owner or spouse's name and 77.33 social security number appear on homestead applications for two 77.34 separate residences and only one application is signed, the 77.35 owner or spouse will be deemed to have elected to homestead the 77.36 residence for which the application was signed. 78.1 The social security numbers or affidavits or other proofs 78.2 of the property owners and spouses are private data on 78.3 individuals as defined by section 13.02, subdivision 12, but, 78.4 notwithstanding that section, the private data may be disclosed 78.5 to the commissioner of revenue, or, for purposes of proceeding 78.6 under the revenue recapture act to recover personal property 78.7 taxes owing, to the county treasurer. 78.8 (d) If residential real estate is occupied and used for 78.9 purposes of a homestead by a relative of the owner and qualifies 78.10 for a homestead under subdivision 1, paragraph (c), in order for 78.11 the property to receive homestead status, a homestead 78.12 application must be filed with the assessor. The social 78.13 security number of each relative occupying the property and the 78.14 social security number of each owner who is related to an 78.15 occupant of the property shall be required on the homestead 78.16 application filed under this subdivision. If a different 78.17 relative of the owner subsequently occupies the property, the 78.18 owner of the property must notify the assessor within 30 days of 78.19 the change in occupancy. The social security number of a 78.20 relative occupying the property is private data on individuals 78.21 as defined by section 13.02, subdivision 12, but may be 78.22 disclosed to the commissioner of revenue. 78.23 (e) The homestead application shall also notify the 78.24 property owners that the application filed under this section 78.25 will not be mailed annually and that if the property is granted 78.26 homestead status for the 1993 assessment, or any assessment year 78.27 thereafter, that same property shall remain classified as 78.28 homestead until the property is sold or transferred to another 78.29 person, or the owners, the spouse of the owner, or the relatives 78.30 no longer use the property as their homestead. Upon the sale or 78.31 transfer of the homestead property, a certificate of value must 78.32 be timely filed with the county auditor as provided under 78.33 section 272.115. Failure to notify the assessor within 30 days 78.34 that the property has been sold, transferred, or that the owner, 78.35 the spouse of the owner, or the relative is no longer occupying 78.36 the property as a homestead, shall result in the penalty 79.1 provided under this subdivision and the property will lose its 79.2 current homestead status. 79.3 (f) If the homestead application is not returned within 30 79.4 days, the county will send a second application to the present 79.5 owners of record. The notice of proposed property taxes 79.6 prepared under section 275.065, subdivision 3, shall reflect the 79.7 property's classification. Beginning with assessment year 1993 79.8 for all properties, If a homestead application has not been 79.9 filed with the county by December 15, the assessor shall 79.10 classify the property as nonhomestead for the current assessment 79.11 year for taxes payable in the following year, provided that the 79.12 owner may be entitled to receive the homestead classification by 79.13 proper application under section 375.192. 79.14 (g) At the request of the commissioner, each county must 79.15 give the commissioner a list that includes the name and social 79.16 security number of each property owner and the property owner's 79.17 spouse occupying the property, or relative of a property owner, 79.18 applying for homestead classification under this subdivision. 79.19 The commissioner shall use the information provided on the lists 79.20 as appropriate under the law, including for the detection of 79.21 improper claims by owners, or relatives of owners, under chapter 79.22 290A. 79.23 (h) If, in comparing the lists supplied by the counties, 79.24 the commissioner finds that a property owner is claiming more 79.25 than one homestead, the commissioner shall notify the 79.26 appropriate counties. Within 90 days of the notification, the 79.27 county assessor shall investigate to determine if the homestead 79.28 classification was properly claimed. If the property owner does 79.29 not qualify, the county assessor shall notify the county auditor 79.30 who will determine the amount of homestead benefits that had 79.31 been improperly allowed. For the purpose of this section, 79.32 "homestead benefits" means the tax reduction resulting from the 79.33 classification as a homestead under section 273.13, the taconite 79.34 homestead credit under section 273.135, and the supplemental 79.35 homestead credit under section 273.1391. 79.36 The county auditor shall send a notice to the owners of the 80.1 affected property, demanding reimbursement of the homestead 80.2 benefits plus a penalty equal to 100 percent of the homestead 80.3 benefits. The property owners may appeal the county's 80.4 determination by filing a notice of appeal with the Minnesota 80.5 tax court within 60 days of the date of the notice from the 80.6 county. If the amount of homestead benefits and penalty is not 80.7 paid within 60 days, and if no appeal has been filed, the county 80.8 auditor shall certify the amount of taxes and penalty to the 80.9 succeeding year's tax list to be collected as part of the 80.10 property taxes. In the case of a manufactured home, the amount 80.11 shall be certified to the current year's tax list for collection. 80.12 (i) Any amount of homestead benefits recovered by the 80.13 county from the property owner shall be distributed to the 80.14 county, city or town, and school district where the property is 80.15 located in the same proportion that each taxing district's levy 80.16 was to the total of the three taxing districts' levy for the 80.17 current year. Any amount recovered attributable to taconite 80.18 homestead credit shall be transmitted to the St. Louis county 80.19 auditor to be deposited in the taconite property tax relief 80.20 account. The total amount of penalty collected must be 80.21 deposited in the county general fund. 80.22 (j) If a property owner has applied for more than one 80.23 homestead and the county assessors cannot determine which 80.24 property should be classified as homestead, the county assessors 80.25 will refer the information to the commissioner. The 80.26 commissioner shall make the determination and notify the 80.27 counties within 60 days. 80.28 (k) In addition to lists of homestead properties, the 80.29 commissioner may ask the counties to furnish lists of all 80.30 properties and the record owners. 80.31 Sec. 6. Minnesota Statutes 1994, section 273.13, 80.32 subdivision 24, is amended to read: 80.33 Subd. 24. [CLASS 3.] (a) Commercial and industrial 80.34 property and utility real and personal property, except class 5 80.35 property as identified in subdivision 31, clause (1), is class 80.36 3a. It has a class rate of three percent of the first $100,000 81.1 of market value for taxes payable in 1993 and thereafter, and 81.2 5.06 percent of the market value over $100,000. In the case of 81.3 state-assessed commercial, industrial, and utility property 81.4 owned by one person or entity, only one parcel has a reduced 81.5 class rate on the first $100,000 of market value. In the case 81.6 of other commercial, industrial, and utility property owned by 81.7 one person or entity, only one parcel in each county has a 81.8 reduced class rate on the first $100,000 of market value, except 81.9 that: 81.10 (1) if the market value of the parcel is less than 81.11 $100,000, and additional parcels are owned by the same person or 81.12 entity in the same city or town within that county, the reduced 81.13 class rate shall be applied up to a combined total market value 81.14 of $100,000 for all parcels owned by the same person or entity 81.15 in the same city or town within the county; 81.16 (2) in the case of grain, fertilizer, and feed elevator 81.17 facilities, as defined in section 18C.305, subdivision 1, or 81.18 232.21, subdivision 8, the limitation to one parcel per owner 81.19 per county for the reduced class rate shall not apply, but there 81.20 shall be a limit of $100,000 of preferential value per site of 81.21 contiguous parcels owned by the same person or entity. Only the 81.22 value of the elevator portion of each parcel shall qualify for 81.23 treatment under this clause. For purposes of this subdivision, 81.24 contiguous parcels include parcels separated only by a railroad 81.25 or public road right-of-way; and 81.26 (3) in the case of property owned by a nonprofit charitable 81.27 organization that qualifies for tax exemption under section 81.28 501(c)(3) of the Internal Revenue Code of 1986, as amended 81.29 through December 31, 1993, if the property is used as a business 81.30 incubator, the limitation to one parcel per owner per county for 81.31 the reduced class rate shall not apply, provided that the 81.32 reduced rate applies only to the first $100,000 of value per 81.33 parcel owned by the organization. As used in this clause, a 81.34 "business incubator" is a facility used for the development of 81.35 nonretail businesses, offering access to equipment, space, 81.36 services, and advice to the tenant businesses, for the purpose 82.1 of encouraging economic development, diversification, and job 82.2 creation in the area served by the organization. 82.3 To receive the reduced class rate on additional parcels 82.4 under clause (1), (2), or (3), the taxpayer must notify the 82.5 county assessor that the taxpayer owns more than one parcel that 82.6 qualifies under clause (1), (2), or (3). 82.7 (b) Employment property defined in section 469.166, during 82.8 the period provided in section 469.170, shall constitute class 82.9 3b and has a class rate of 2.3 percent of the first $50,000 of 82.10 market value and 3.6 percent of the remainder, except that for 82.11 employment property located in a border city enterprise zone 82.12 designated pursuant to section 469.168, subdivision 4, paragraph 82.13 (c), the class rate of the first $100,000 of market value and 82.14 the class rate of the remainder is determined under paragraph 82.15 (a), unless the governing body of the city designated as an 82.16 enterprise zone determines that a specific parcel shall be 82.17 assessed pursuant to the first clause of this sentence. The 82.18 governing body may provide for assessment under the first clause 82.19 of the preceding sentence only for property which is located in 82.20 an area which has been designated by the governing body for the 82.21 receipt of tax reductions authorized by section 469.171, 82.22 subdivision 1. 82.23 (c) Structures which are (i) located on property classified 82.24 as class 3a, (ii) constructed after January 2, 1995, and (iii) 82.25 located in a transit zone as defined under section 473.3915, 82.26 shall have a class rate of four percent on that portion of the 82.27 market value in excess of $100,000. The four percent rate shall 82.28 also apply to that portion of any class 3a structure located in 82.29 a transit zone constructed after January 2, 1995, even if the 82.30 remainder of the structure was constructed prior to January 2, 82.31 1995. For the purposes of this paragraph, a structure shall be 82.32 considered to be located in a transit zone if any portion of the 82.33 structure lies within the zone. 82.34 Sec. 7. Minnesota Statutes 1994, section 273.13, 82.35 subdivision 25, is amended to read: 82.36 Subd. 25. [CLASS 4.] (a) Class 4a is residential real 83.1 estate containing four or more units and used or held for use by 83.2 the owner or by the tenants or lessees of the owner as a 83.3 residence for rental periods of 30 days or more. Class 4a also 83.4 includes hospitals licensed under sections 144.50 to 144.56, 83.5 other than hospitals exempt under section 272.02, and contiguous 83.6 property used for hospital purposes, without regard to whether 83.7 the property has been platted or subdivided. Class 4a property 83.8 has a class rate of 3.5 percent of market value for taxes 83.9 payable in 1992, and 3.4 percent of market value for taxes 83.10 payable in 1993 and thereafter. 83.11 (b) Class 4b includes: 83.12 (1) residential real estate containing less than four 83.13 units, other than seasonal residential, and recreational; 83.14 (2) manufactured homes not classified under any other 83.15 provision; 83.16 (3) a dwelling, garage, and surrounding one acre of 83.17 property on a nonhomestead farm classified under subdivision 23, 83.18 paragraph (b). 83.19 Class 4b property has a class rate of 2.8 percent of market 83.20 value for taxes payable in 1992, 2.5 percent of market value for 83.21 taxes payable in 1993, and 2.3 percent of market value for taxes 83.22 payable in 1994 and thereafter. 83.23 (c) Class 4c property includes: 83.24 (1) a structure that is: 83.25 (i) situated on real property that is used for housing for 83.26 the elderly or for low- and moderate-income families as defined 83.27 in Title II, as amended through December 31, 1990, of the 83.28 National Housing Act or the Minnesota housing finance agency law 83.29 of 1971, as amended, or rules promulgated by the agency and 83.30 financed by a direct federal loan or federally insured loan made 83.31 pursuant to Title II of the Act; or 83.32 (ii) situated on real property that is used for housing the 83.33 elderly or for low- and moderate-income families as defined by 83.34 the Minnesota housing finance agency law of 1971, as amended, or 83.35 rules adopted by the agency pursuant thereto and financed by a 83.36 loan made by the Minnesota housing finance agency pursuant to 84.1 the provisions of the act. 84.2 This clause applies only to property of a nonprofit or 84.3 limited dividend entity. Property is classified as class 4c 84.4 under this clause for 15 years from the date of the completion 84.5 of the original construction or substantial rehabilitation, or 84.6 for the original term of the loan. 84.7 (2) a structure that is: 84.8 (i) situated upon real property that is used for housing 84.9 lower income families or elderly or handicapped persons, as 84.10 defined in section 8 of the United States Housing Act of 1937, 84.11 as amended; and 84.12 (ii) owned by an entity which has entered into a housing 84.13 assistance payments contract under section 8 which provides 84.14 assistance for 100 percent of the dwelling units in the 84.15 structure, other than dwelling units intended for management or 84.16 maintenance personnel. Property is classified as class 4c under 84.17 this clause for the term of the housing assistance payments 84.18 contract, including all renewals, or for the term of its 84.19 permanent financing, whichever is shorter; and 84.20 (3) a qualified low-income building as defined in section 84.21 42(c)(2) of the Internal Revenue Code of 1986, as amended 84.22 through December 31, 1990, that (i) receives a low-income 84.23 housing credit under section 42 of the Internal Revenue Code of 84.24 1986, as amended through December 31, 1990; or (ii) meets the 84.25 requirements of that section and receives public financing, 84.26 except financing provided under sections 469.174 to 469.179, 84.27 which contains terms restricting the rents; or (iii) meets the 84.28 requirements of section 273.1317. Classification pursuant to 84.29 this clause is limited to a term of 15 years. The public 84.30 financing received must be from at least one of the following 84.31 sources: government issued bonds exempt from taxes under 84.32 section 103 of the Internal Revenue Code of 1986, as amended 84.33 through December 31, 1993, the proceeds of which are used for 84.34 the acquisition or rehabilitation of the building; programs 84.35 under section 221(d)(3), 202, or 236, of Title II of the 84.36 National Housing Act; rental housing program funds under Section 85.1 8 of the United States Housing Act of 1937 or the market rate 85.2 family graduated payment mortgage program funds administered by 85.3 the Minnesota housing finance agency that are used for the 85.4 acquisition or rehabilitation of the building; public financing 85.5 provided by a local government used for the acquisition or 85.6 rehabilitation of the building, including grants or loans from 85.7 federal community development block grants, HOME block grants, 85.8 or residential rental bonds issued under chapter 474A; or other 85.9 rental housing program funds provided by the Minnesota housing 85.10 finance agency for the acquisition or rehabilitation of the 85.11 building. 85.12 For all properties described in clauses (1), (2), and (3) 85.13 and in paragraph (d), the market value determined by the 85.14 assessor must be based on the normal approach to value using 85.15 normal unrestricted rents unless the owner of the property 85.16 elects to have the property assessed under Laws 1991, chapter 85.17 291, article 1, section 55. If the owner of the property elects 85.18 to have the market value determined on the basis of the actual 85.19 restricted rents, as provided in Laws 1991, chapter 291, article 85.20 1, section 55, the property will be assessed at the rate 85.21 provided for class 4a or class 4b property, as appropriate. 85.22 Properties described in clauses (1)(ii), (3), and (4) may apply 85.23 to the assessor for valuation under Laws 1991, chapter 291, 85.24 article 1, section 55. The land on which these structures are 85.25 situated has the class rate given in paragraph (b) if the 85.26 structure contains fewer than four units, and the class rate 85.27 given in paragraph (a) if the structure contains four or more 85.28 units. This clause applies only to the property of a nonprofit 85.29 or limited dividend entity. 85.30 (4) a parcel of land, not to exceed one acre, and its 85.31 improvements or a parcel of unimproved land, not to exceed one 85.32 acre, if it is owned by a neighborhood real estate trust and at 85.33 least 60 percent of the dwelling units, if any, on all land 85.34 owned by the trust are leased to or occupied by lower income 85.35 families or individuals. This clause does not apply to any 85.36 portion of the land or improvements used for nonresidential 86.1 purposes. For purposes of this clause, a lower income family is 86.2 a family with an income that does not exceed 65 percent of the 86.3 median family income for the area, and a lower income individual 86.4 is an individual whose income does not exceed 65 percent of the 86.5 median individual income for the area, as determined by the 86.6 United States Secretary of Housing and Urban Development. For 86.7 purposes of this clause, "neighborhood real estate trust" means 86.8 an entity which is certified by the governing body of the 86.9 municipality in which it is located to have the following 86.10 characteristics: 86.11 (a) it is a nonprofit corporation organized under chapter 86.12 317A; 86.13 (b) it has as its principal purpose providing housing for 86.14 lower income families in a specific geographic community 86.15 designated in its articles or bylaws; 86.16 (c) it limits membership with voting rights to residents of 86.17 the designated community; and 86.18 (d) it has a board of directors consisting of at least 86.19 seven directors, 60 percent of whom are members with voting 86.20 rights and, to the extent feasible, 25 percent of whom are 86.21 elected by resident members of buildings owned by the trust; and 86.22 (5) except as provided in subdivision 22, paragraph (c), 86.23 real property devoted to temporary and seasonal residential 86.24 occupancy for recreation purposes, including real property 86.25 devoted to temporary and seasonal residential occupancy for 86.26 recreation purposes and not devoted to commercial purposes for 86.27 more than 250 days in the year preceding the year of 86.28 assessment. For purposes of this clause, property is devoted to 86.29 a commercial purpose on a specific day if any portion of the 86.30 property is used for residential occupancy, and a fee is charged 86.31 for residential occupancy. Class 4c also includes commercial 86.32 use real property used exclusively for recreational purposes in 86.33 conjunction with class 4c property devoted to temporary and 86.34 seasonal residential occupancy for recreational purposes, up to 86.35 a total of two acres, provided the property is not devoted to 86.36 commercial recreational use for more than 250 days in the year 87.1 preceding the year of assessment and is located within two miles 87.2 of the class 4c property with which it is used. Class 4c 87.3 property classified in this clause also includes the remainder 87.4 of class 1c resorts. Owners of real property devoted to 87.5 temporary and seasonal residential occupancy for recreation 87.6 purposes and all or a portion of which was devoted to commercial 87.7 purposes for not more than 250 days in the year preceding the 87.8 year of assessment desiring classification as class 1c or 4c, 87.9 must submit a declaration to the assessor designating the cabins 87.10 or units occupied for 250 days or less in the year preceding the 87.11 year of assessment by January 15 of the assessment year. Those 87.12 cabins or units and a proportionate share of the land on which 87.13 they are located will be designated class 1c or 4c as otherwise 87.14 provided. The remainder of the cabins or units and a 87.15 proportionate share of the land on which they are located will 87.16 be designated as class 3a. The first $100,000 of the market 87.17 value of the remainder of the cabins or units and a 87.18 proportionate share of the land on which they are located shall 87.19 have a class rate of three percent. The owner of property 87.20 desiring designation as class 1c or 4c property must provide 87.21 guest registers or other records demonstrating that the units 87.22 for which class 1c or 4c designation is sought were not occupied 87.23 for more than 250 days in the year preceding the assessment if 87.24 so requested. The portion of a property operated as a (1) 87.25 restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 87.26 facility operated on a commercial basis not directly related to 87.27 temporary and seasonal residential occupancy for recreation 87.28 purposes shall not qualify for class 1c or 4c; 87.29 (6) real property up to a maximum of one acre of land owned 87.30 by a nonprofit community service oriented organization; provided 87.31 that the property is not used for a revenue-producing activity 87.32 for more than six days in the calendar year preceding the year 87.33 of assessment and the property is not used for residential 87.34 purposes on either a temporary or permanent basis. For purposes 87.35 of this clause, a "nonprofit community service oriented 87.36 organization" means any corporation, society, association, 88.1 foundation, or institution organized and operated exclusively 88.2 for charitable, religious, fraternal, civic, or educational 88.3 purposes, and which is exempt from federal income taxation 88.4 pursuant to section 501(c)(3), (10), or (19) of the Internal 88.5 Revenue Code of 1986, as amended through December 31, 1990. For 88.6 purposes of this clause, "revenue-producing activities" shall 88.7 include but not be limited to property or that portion of the 88.8 property that is used as an on-sale intoxicating liquor or 3.2 88.9 percent malt liquor establishment licensed under chapter 340A, a 88.10 restaurant open to the public, bowling alley, a retail store, 88.11 gambling conducted by organizations licensed under chapter 349, 88.12 an insurance business, or office or other space leased or rented 88.13 to a lessee who conducts a for-profit enterprise on the 88.14 premises. Any portion of the property which is used for 88.15 revenue-producing activities for more than six days in the 88.16 calendar year preceding the year of assessment shall be assessed 88.17 as class 3a. The use of the property for social events open 88.18 exclusively to members and their guests for periods of less than 88.19 24 hours, when an admission is not charged nor any revenues are 88.20 received by the organization shall not be considered a 88.21 revenue-producing activity; 88.22 (7) post-secondary student housing of not more than one 88.23 acre of land that is owned by a nonprofit corporation organized 88.24 under chapter 317A and is used exclusively by a student 88.25 cooperative, sorority, or fraternity for on-campus housing or 88.26 housing located within two miles of the border of a college 88.27 campus; and 88.28 (8) manufactured home parks as defined in section 327.14, 88.29 subdivision 3. 88.30 Class 4c property has a class rate of 2.3 percent of market 88.31 value, except that (i) for each parcel of seasonal residential 88.32 recreational property not used for commercial purposes under 88.33 clause (5)has a class rate of 2.2 percent of market value for88.34taxes payable in 1992, and for taxes payable in 1993 and88.35thereafter,the first $72,000 of market value on each parcel has 88.36 a class rate of two percent and the market value of each parcel 89.1 that exceeds $72,000 has a class rate of 2.5 percent, and (ii) 89.2 manufactured home parks assessed under clause (8) have a class 89.3 rate of two percentfor taxes payable in 1993, 1994, and 199589.4only. 89.5 (d) Class 4d property includes: 89.6 (1) a structure that is: 89.7 (i) situated on real property that is used for housing for 89.8 the elderly or for low and moderate income families as defined 89.9 by the Farmers Home Administration; 89.10 (ii) located in a municipality of less than 10,000 89.11 population; and 89.12 (iii) financed by a direct loan or insured loan from the 89.13 Farmers Home Administration. Property is classified under this 89.14 clause for 15 years from the date of the completion of the 89.15 original construction or for the original term of the loan. 89.16 The class rates in paragraph (c), clauses (1), (2), and (3) 89.17 and this clause apply to the properties described in them, only 89.18 in proportion to occupancy of the structure by elderly or 89.19 handicapped persons or low and moderate income families as 89.20 defined in the applicable laws unless construction of the 89.21 structure had been commenced prior to January 1, 1984; or the 89.22 project had been approved by the governing body of the 89.23 municipality in which it is located prior to June 30, 1983; or 89.24 financing of the project had been approved by a federal or state 89.25 agency prior to June 30, 1983. For those properties, 4c or 4d 89.26 classification is available only for those units meeting the 89.27 requirements of section 273.1318. 89.28 Classification under this clause is only available to 89.29 property of a nonprofit or limited dividend entity. 89.30 In the case of a structure financed or refinanced under any 89.31 federal or state mortgage insurance or direct loan program 89.32 exclusively for housing for the elderly or for housing for the 89.33 handicapped, a unit shall be considered occupied so long as it 89.34 is actually occupied by an elderly or handicapped person or, if 89.35 vacant, is held for rental to an elderly or handicapped person. 89.36 (2) For taxes payable in 1992, 1993, and 1994, only, 90.1 buildings and appurtenances, together with the land upon which 90.2 they are located, leased by the occupant under the community 90.3 lending model lease-purchase mortgage loan program administered 90.4 by the Federal National Mortgage Association, provided the 90.5 occupant's income is no greater than 60 percent of the county or 90.6 area median income, adjusted for family size and the building 90.7 consists of existing single family or duplex housing. The lease 90.8 agreement must provide for a portion of the lease payment to be 90.9 escrowed as a nonrefundable down payment on the housing. To 90.10 qualify under this clause, the taxpayer must apply to the county 90.11 assessor by May 30 of each year. The application must be 90.12 accompanied by an affidavit or other proof required by the 90.13 assessor to determine qualification under this clause. 90.14 (3) Qualifying buildings and appurtenances, together with 90.15 the land upon which they are located, leased for a period of up 90.16 to five years by the occupant under a lease-purchase program 90.17 administered by the Minnesota housing finance agency or a 90.18 housing and redevelopment authority authorized under sections 90.19 469.001 to 469.047, provided the occupant's income is no greater 90.20 than 80 percent of the county or area median income, adjusted 90.21 for family size, and the building consists of two or less 90.22 dwelling units. The lease agreement must provide for a portion 90.23 of the lease payment to be escrowed as a nonrefundable down 90.24 payment on the housing. The administering agency shall verify 90.25 the occupants income eligibility and certify to the county 90.26 assessor that the occupant meets the income criteria under this 90.27 paragraph. To qualify under this clause, the taxpayer must 90.28 apply to the county assessor by May 30 of each year. For 90.29 purposes of this section, "qualifying buildings and 90.30 appurtenances" shall be defined as one or two unit residential 90.31 buildings which are unoccupied and have been abandoned and 90.32 boarded for at least six months. 90.33 Class 4d property has a class rate of two percent of market 90.34 value except that property classified under clause (3), shall 90.35 have the same class rate as class 1a property. 90.36 (e) Residential rental property that would otherwise be 91.1 assessed as class 4 property under paragraph (a); paragraph (b), 91.2 clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 91.3 (4), is assessed at the class rate applicable to it under 91.4 Minnesota Statutes 1988, section 273.13, if it is found to be a 91.5 substandard building under section 273.1316. Residential rental 91.6 property that would otherwise be assessed as class 4 property 91.7 under paragraph (d) is assessed at 2.3 percent of market value 91.8 if it is found to be a substandard building under section 91.9 273.1316. 91.10 Sec. 8. Minnesota Statutes 1994, section 273.37, is 91.11 amended by adding a subdivision to read: 91.12 Subd. 3. [WIND ENERGY CONVERSION SYSTEMS.] Taxable wind 91.13 energy conversion systems, situated upon land owned by another 91.14 person, which are not in good faith owned, operated, and 91.15 exclusively controlled by such other person, shall be listed and 91.16 assessed as personal property in the town or district where 91.17 situated, in the name of the owner. 91.18 Sec. 9. Minnesota Statutes 1994, section 274.01, 91.19 subdivision 1, is amended to read: 91.20 Subdivision 1. [ORDINARY BOARD; MEETINGS, DEADLINES, 91.21 GRIEVANCES.] (a) The town board of a town, or the council or 91.22 other governing body of a city, is the board of review except in 91.23 cities whose charters provide for a board of equalization. The 91.24 county assessor shall fix a day and time when the board or the 91.25 board of equalization shall meet in the assessment districts of 91.26 the county. On or before February 15 of each year the assessor 91.27 shall give written notice of the time to the city or town 91.28 clerk. Notwithstanding the provisions of any charter to the 91.29 contrary, the meetings must be held between April 1 and May 31 91.30 each year. The clerk shall give published and posted notice of 91.31 the meeting at least ten days before the date of the 91.32 meeting. If at least 25 percent of the net tax capacity of the 91.33 city or town is noncommercial seasonal recreational residential 91.34 property classified under section 273.13, subdivision 25, the 91.35 meeting or, if more than one meeting is scheduled, at least one 91.36 of the meetings must be held on a Saturday. The Saturday 92.1 meeting date must be contained on the notice of valuation of 92.2 real property under section 273.121. The board shall meet at 92.3 the office of the clerk to review the assessment and 92.4 classification of property in the town or city. No changes in 92.5 valuation or classification which are intended to correct errors 92.6 in judgment by the county assessor may be made by the county 92.7 assessor after the board of review or the county board of 92.8 equalization has adjourned; however, corrections of errors that 92.9 are merely clerical in nature or changes that extend homestead 92.10 treatment to property are permitted after adjournment until the 92.11 tax extension date for that assessment year. The changes must 92.12 be fully documented and maintained in the assessor's office and 92.13 must be available for review by any person. A copy of the 92.14 changes made during this period must be sent to the county board 92.15 no later than December 31 of the assessment year. 92.16 (b) The board shall determine whether the taxable property 92.17 in the town or city has been properly placed on the list and 92.18 properly valued by the assessor. If real or personal property 92.19 has been omitted, the board shall place it on the list with its 92.20 market value, and correct the assessment so that each tract or 92.21 lot of real property, and each article, parcel, or class of 92.22 personal property, is entered on the assessment list at its 92.23 market value. No assessment of the property of any person may 92.24 be raised unless the person has been duly notified of the intent 92.25 of the board to do so. On application of any person feeling 92.26 aggrieved, the board shall review the assessment or 92.27 classification, or both, and correct it as appears just. 92.28 (c) A local board of review may reduce assessments upon 92.29 petition of the taxpayer but the total reductions must not 92.30 reduce the aggregate assessment made by the county assessor by 92.31 more than one percent. If the total reductions would lower the 92.32 aggregate assessments made by the county assessor by more than 92.33 one percent, none of the adjustments may be made. The assessor 92.34 shall correct any clerical errors or double assessments 92.35 discovered by the board of review without regard to the one 92.36 percent limitation. 93.1 (d) A majority of the members may act at the meeting, and 93.2 adjourn from day to day until they finish hearing the cases 93.3 presented. The assessor shall attend, with the assessment books 93.4 and papers, and take part in the proceedings, but must not 93.5 vote. The county assessor, or an assistant delegated by the 93.6 county assessor shall attend the meetings. The board shall list 93.7 separately, on a form appended to the assessment book, all 93.8 omitted property added to the list by the board and all items of 93.9 property increased or decreased, with the market value of each 93.10 item of property, added or changed by the board, placed opposite 93.11 the item. The county assessor shall enter all changes made by 93.12 the board in the assessment book. 93.13 (e) If a person fails to appear in person, by counsel, or 93.14 by written communication before the board after being duly 93.15 notified of the board's intent to raise the assessment of the 93.16 property, or if a person feeling aggrieved by an assessment or 93.17 classification fails to apply for a review of the assessment or 93.18 classification, the person may not appear before the county 93.19 board of equalization for a review of the assessment or 93.20 classification. This paragraph does not apply if an assessment 93.21 was made after the board meeting, as provided in section 273.01, 93.22 or if the person can establish not having received notice of 93.23 market value at least five days before the local board of review 93.24 meeting. 93.25 (f) The board of review or the board of equalization must 93.26 complete its work and adjourn within 20 days from the time of 93.27 convening stated in the notice of the clerk, unless a longer 93.28 period is approved by the commissioner of revenue. No action 93.29 taken after that date is valid. All complaints about an 93.30 assessment or classification made after the meeting of the board 93.31 must be heard and determined by the county board of 93.32 equalization. A nonresident may, at any time, before the 93.33 meeting of the board of review file written objections to an 93.34 assessment or classification with the county assessor. The 93.35 objections must be presented to the board of review at its 93.36 meeting by the county assessor for its consideration. 94.1 Sec. 10. Minnesota Statutes 1994, section 276.131, is 94.2 amended to read: 94.3 276.131 [DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.] 94.4 The penalties, interest, and costs collected on special 94.5 assessments and real and personal property taxes must be 94.6 distributed as follows: 94.7 (1) all penalties and interest collected on special 94.8 assessments against real or personal property must be 94.9 distributed to the taxing jurisdiction that levied the 94.10 assessment; 94.11 (2) 50 percent of all penalties and interest collected on 94.12 real and personal property taxes must be distributed to the 94.13 county in which the property is located, and the other 50 94.14 percent must be distributed to the schooldistrict in which the94.15property is locateddistricts within the county. The 94.16 distribution to the school district must be in accordance with 94.17 the provisions of section 124.10; and 94.18 (3) all costs collected by the county on special 94.19 assessments and on delinquent real and personal property taxes 94.20 must be distributed to the county in which the property is 94.21 located. 94.22 Sec. 11. Minnesota Statutes 1994, section 279.01, 94.23 subdivision 1, is amended to read: 94.24 Subdivision 1. Except as provided in subdivision 3 or 4, 94.25 on May 16 or 21 days after the postmark date on the envelope 94.26 containing the property tax statement, whichever is later, a 94.27 penalty shall accrue and thereafter be charged upon all unpaid 94.28 taxes on real estate on the current lists in the hands of the 94.29 county treasurer. The penalty shall be at a rate of two percent 94.30 on homestead property until May 31 and four percent on June 1. 94.31 The penalty on nonhomestead property shall be at a rate of four 94.32 percent until May 31 and eight percent on June 1. This penalty 94.33 shall not accrue until June 1 of each year, or 21 days after the 94.34 postmark date on the envelope containing the property tax 94.35 statements, whichever is later, on commercial use real property 94.36 used for seasonal residential recreational purposes and 95.1 classified as class 1c or 4c, and on other commercial use real 95.2 property classified as class 3a, provided that over 60 percent 95.3 of the gross income earned by the enterprise on the class 3a 95.4 property is earned during the months of May, June, July, and 95.5 August. Any property owner of such class 3a property who pays 95.6 the first half of the tax due on the property after May 15 and 95.7 before June 1, or 21 days after the postmark date on the 95.8 envelope containing the property tax statement, whichever is 95.9 later, shall attach an affidavit to the payment attesting to 95.10 compliance with the income provision of this subdivision. 95.11 Thereafter, for both homestead and nonhomestead property, on the 95.12 first day of each month beginning July 1, up to and including 95.13 October 1 following, an additional penalty of one percent for 95.14 each month shall accrue and be charged on all such unpaid taxes 95.15 provided that if the due date was extended beyond May 15 as the 95.16 result of any delay in mailing property tax statements no 95.17 additional penalty shall accrue if the tax is paid by the 95.18 extended due date. If the tax is not paid by the extended due 95.19 date, then all penalties that would have accrued if the due date 95.20 had been May 15 shall be charged. When the taxes against any 95.21 tract or lot exceed $50, one-half thereof may be paid prior to 95.22 May 16 or 21 days after the postmark date on the envelope 95.23 containing the property tax statement, whichever is later; and, 95.24 if so paid, no penalty shall attach; the remaining one-half 95.25 shall be paid at any time prior to October 16 following, without 95.26 penalty; but, if not so paid, then a penalty of two percent 95.27 shall accrue thereon for homestead property and a penalty of 95.28 four percent on nonhomestead property. Thereafter, for 95.29 homestead property, on the first day of November an additional 95.30 penalty of four percent shall accrue and on the first day of 95.31 December following, an additional penalty of two percent shall 95.32 accrue and be charged on all such unpaid taxes. Thereafter, for 95.33 nonhomestead property, on the first day of November and December 95.34 following, an additional penalty of four percent for each month 95.35 shall accrue and be charged on all such unpaid taxes. If 95.36 one-half of such taxes shall not be paid prior to May 16 or 21 96.1 days after the postmark date on the envelope containing the 96.2 property tax statement, whichever is later, the same may be paid 96.3 at any time prior to October 16, with accrued penalties to the 96.4 date of payment added, and thereupon no penalty shall attach to 96.5 the remaining one-half until October 16 following. 96.6 This section applies to payment of personal property taxes 96.7 assessed against improvements to leased property, except as 96.8 provided by section 277.01, subdivision 3. 96.9 A county may provide by resolution that in the case of a 96.10 property owner that has multiple tracts or parcels with 96.11 aggregate taxes exceeding $50, payments may be made in 96.12 installments as provided in this subdivision. 96.13 The county treasurer may accept payments of more or less 96.14 than the exact amount of a tax installment due. If the accepted 96.15 payment is less than the amount due, payments must be applied 96.16 first to the penalty accrued for the year the payment is made. 96.17 Acceptance of partial payment of tax does not constitute a 96.18 waiver of the minimum payment required as a condition for filing 96.19 an appeal under section 278.03 or any other law, nor does it 96.20 affect the order of payment of delinquent taxes under section 96.21 280.39. 96.22 Sec. 12. Minnesota Statutes 1994, section 279.01, is 96.23 amended by adding a subdivision to read: 96.24 Subd. 4. In the case of class 4c seasonal residential 96.25 recreational property not used for commercial purposes, 96.26 penalties shall accrue and be charged on unpaid taxes at the 96.27 times and at the rates provided in subdivision 1 for homestead 96.28 property. 96.29 Sec. 13. [473.3915] [TRANSIT ZONES.] 96.30 Subdivision 1. [DEFINITIONS.] For the purposes of this 96.31 section, the terms defined in subdivisions 2 and 3 have the 96.32 meaning given them. 96.33 Subd. 2. [TRANSIT ROUTE.] "Transit route" means a route 96.34 along which transportation of passengers is provided by a motor 96.35 vehicle or other means of conveyance, including light rail 96.36 transit, by any person operating on a regular and continuing 97.1 basis as a common carrier on fixed routes and schedules. 97.2 "Transit route" does not include (1) a route along which 97.3 transportation is provided for children to or from school or for 97.4 passengers between a common carrier terminal station and a hotel 97.5 or motel, (2) transportation by common carrier railroad or by 97.6 taxi, (3) transportation furnished by a person solely for that 97.7 person's employees or customers, or (4) paratransit. 97.8 Subd. 3. [TRANSIT ZONE.] "Transit zone" means the area 97.9 within one-quarter of a mile of a transit route that is also 97.10 within the metropolitan urban service area, as determined by the 97.11 council. "Transit zone" includes any light rail transit route 97.12 for which funds for construction have been committed. 97.13 Subd. 4. [TRANSIT ZONES; MAP AND PLAN.] For the purposes 97.14 of section 273.13, subdivision 24, the council shall designate 97.15 transit zones and identify them on a detailed map and in a 97.16 plan. The council shall review the map and plan once a year and 97.17 revise them as necessary to indicate the current transit zones. 97.18 The council shall provide each county and city assessor in the 97.19 metropolitan area a copy of the current map and plan. 97.20 Sec. 14. Minnesota Statutes 1994, section 477A.011, 97.21 subdivision 36, is amended to read: 97.22 Subd. 36. [CITY AID BASE.] (a) Except as provided in 97.23 paragraph (b), "city aid base" means, for each city, the sum of 97.24 the local government aid and equalization aid it was originally 97.25 certified to receive in calendar year 1993 under Minnesota 97.26 Statutes 1992, section 477A.013, subdivisions 3 and 5, and the 97.27 amount of disparity reduction aid it received in calendar year 97.28 1993 under Minnesota Statutes 1992, section 273.1398, 97.29 subdivision 3. 97.30 (b) A city that in 1992 or 1993 transferred an amount from 97.31 governmental funds to its sewer and water fund, which amount 97.32 exceeded its net levy for taxes payable in the year in which the 97.33 transfer occurred, has a "city aid base" equal to the amount the 97.34 city was certified to receive in calendar year 1995 under 97.35 section 477A.013. 97.36 Sec. 15. Laws 1992, chapter 511, article 2, section 45, is 98.1 amended by adding a subdivision to read: 98.2 Subd. 6a. [HOUSING REDEVELOPMENT AUTHORITY; EXCEPTIONS.] 98.3 The requirements of subdivisions 2, 3, 4, and 5 do not apply in 98.4 order to qualify for the exemption if the student housing is 98.5 owned by the local housing and redevelopment authority, the 98.6 reduced cost of development due to the exemption is reflected in 98.7 lower rents, and a reasonable system is used to provide priority 98.8 to students in renting the dwelling units. 98.9 Sec. 16. Laws 1992, chapter 511, article 2, section 45, 98.10 subdivision 7, is amended to read: 98.11 Subd. 7. [EXPIRATION.]This section applies to student98.12housing approved by the state board before January 1, 1997.The 98.13 property tax exemption for a student housing development is 98.14 limited to 20 years from the date of first occupancy. This 98.15 section expires January 1, 2018. 98.16 Sec. 17. Laws 1992, chapter 511, article 2, section 46, is 98.17 amended by adding a subdivision to read: 98.18 Subd. 6a. [HOUSING REDEVELOPMENT AUTHORITY; EXCEPTIONS.] 98.19 The requirements of subdivisions 2, 3, 4, and 5 do not apply in 98.20 order to qualify for the exemption if the student housing is 98.21 owned by the local housing and redevelopment authority or by a 98.22 multicounty housing and redevelopment authority on land leased 98.23 from a city or school district, the reduced cost of development 98.24 due to the exemption is reflected in lower rents, and a 98.25 reasonable system is used to provide priority to students in 98.26 renting the dwelling units. 98.27 Sec. 18. Laws 1992, chapter 511, article 2, section 46, 98.28 subdivision 7, is amended to read: 98.29 Subd. 7. [EXPIRATION.]This section applies to student98.30housing approved by the state board before January 1, 1997.The 98.31 property tax exemption for a student housing development is 98.32 limited to 20 years from the date of first occupancy. This 98.33 section expires January 1, 2018. 98.34 Sec. 19. [HACA REDUCTION; HENNEPIN COUNTY COURT 98.35 EMPLOYEES.] 98.36 There shall be deducted from the homestead and agricultural 99.1 credit aid payments to Hennepin county under Minnesota Statutes, 99.2 section 273.1398, an amount equal to $180,000 which represents 99.3 the cost to the state for the assumption of two Hennepin county 99.4 staff attorneys whose job function is that of court referees and 99.5 whose positions should have been transferred to the state as 99.6 part of the court takeover in Laws 1989, First Special Session 99.7 chapter 1, article 4. One-half of the total amount shall be 99.8 deducted from each of the aid payments made in 1995 to Hennepin 99.9 county under Minnesota Statutes, section 273.1398. The amount 99.10 of reduction made under this section shall be a permanent aid 99.11 reduction. 99.12 Sec. 20. [TRANSIT ZONE MAP; DATE FIRST PRODUCED.] 99.13 The metropolitan council shall produce an initial version 99.14 of the transit zone map required under section 473.3915, 99.15 subdivision 4, by January 1, 1996. 99.16 Sec. 21. [APPLICATION.] 99.17 Sections 13 and 20 apply in the counties of Anoka, Carver, 99.18 Dakota, Hennepin, Ramsey, Scott, and Washington. 99.19 Sec. 22. [EFFECTIVE DATES.] 99.20 Section 1 is effective the day following final enactment. 99.21 Sections 2, 4, 5, and 8 are effective for taxes levied in 99.22 1995, payable in 1996, and thereafter, provided that the 99.23 provisions of section 4 restricting homestead classification for 99.24 seasonal recreational residential property applies to taxes 99.25 payable in 1996 and thereafter regardless of the date of 99.26 occupancy of the property or the date of filing of an 99.27 application for homestead classification by the relative of the 99.28 owner. 99.29 Section 3 is effective for improvements made in 1995 and 99.30 subsequent years. 99.31 Sections 6 and 9 are effective for 1996 assessments for 99.32 taxes payable in 1997 and subsequent years. 99.33 Sections 11 and 12 are effective for taxes levied in 1995, 99.34 payable in 1996, and thereafter. 99.35 Section 14 is effective for aids paid in 1996 and 99.36 thereafter.