SF 1505

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; adjusting certain property class 
  1.3             rates; limiting the property tax imposed by local 
  1.4             taxing authorities to the statutory tax rates; 
  1.5             requiring additional property taxes to be subject to 
  1.6             referenda; providing transition aid; providing a 
  1.7             credit for certain property tax increases; amending 
  1.8             Minnesota Statutes 1994, sections 273.13, subdivisions 
  1.9             22, 23, 24, 25, and 31; 273.1398, subdivision 6 and by 
  1.10            adding a subdivision; 275.065, subdivisions 1, 3, 5a, 
  1.11            and 6; 275.07, subdivision 1; 275.08, subdivisions 1a, 
  1.12            1b, 3, and 4; 275.61; and 290A.04, subdivision 2h; 
  1.13            proposing coding for new law in Minnesota Statutes, 
  1.14            chapter 275; repealing Minnesota Statutes 1994, 
  1.15            sections 273.13, subdivision 32; 275.08, subdivision 
  1.16            1c; and 290A.04, subdivision 2i; Laws 1989, First 
  1.17            Special Session chapter 1, article 7, section 9. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1994, section 273.13, 
  1.20  subdivision 22, is amended to read: 
  1.21     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  1.22  23, real estate which is residential and used for homestead 
  1.23  purposes is class 1.  The market value of class 1a property must 
  1.24  be determined based upon the value of the house, garage, and 
  1.25  land.  
  1.26     The first $72,000 of market value of class 1a property has 
  1.27  a net class rate of one percent of its market value and a gross 
  1.28  class rate of 2.17 percent of its market value.  For taxes 
  1.29  payable in 1992, the market value of class 1a property that 
  1.30  exceeds $72,000 but does not exceed $115,000 has a class rate of 
  1.31  two percent of its market value; and the market value of class 
  2.1   1a property that exceeds $115,000 has a class rate of 2.5 
  2.2   percent of its market value.  For taxes payable in 1993 and 
  2.3   thereafter, The market value of class 1a property that exceeds 
  2.4   $72,000 has a class rate of two percent. 
  2.5      (b) Class 1b property includes homestead real estate or 
  2.6   homestead manufactured homes used for the purposes of a 
  2.7   homestead by 
  2.8      (1) any blind person, or the blind person and the blind 
  2.9   person's spouse; or 
  2.10     (2) any person, hereinafter referred to as "veteran," who: 
  2.11     (i) served in the active military or naval service of the 
  2.12  United States; and 
  2.13     (ii) is entitled to compensation under the laws and 
  2.14  regulations of the United States for permanent and total 
  2.15  service-connected disability due to the loss, or loss of use, by 
  2.16  reason of amputation, ankylosis, progressive muscular 
  2.17  dystrophies, or paralysis, of both lower extremities, such as to 
  2.18  preclude motion without the aid of braces, crutches, canes, or a 
  2.19  wheelchair; and 
  2.20     (iii) has acquired a special housing unit with special 
  2.21  fixtures or movable facilities made necessary by the nature of 
  2.22  the veteran's disability, or the surviving spouse of the 
  2.23  deceased veteran for as long as the surviving spouse retains the 
  2.24  special housing unit as a homestead; or 
  2.25     (3) any person who: 
  2.26     (i) is permanently and totally disabled and 
  2.27     (ii) receives 90 percent or more of total income from 
  2.28     (A) aid from any state as a result of that disability; or 
  2.29     (B) supplemental security income for the disabled; or 
  2.30     (C) workers' compensation based on a finding of total and 
  2.31  permanent disability; or 
  2.32     (D) social security disability, including the amount of a 
  2.33  disability insurance benefit which is converted to an old age 
  2.34  insurance benefit and any subsequent cost of living increases; 
  2.35  or 
  2.36     (E) aid under the federal Railroad Retirement Act of 1937, 
  3.1   United States Code Annotated, title 45, section 228b(a)5; or 
  3.2      (F) a pension from any local government retirement fund 
  3.3   located in the state of Minnesota as a result of that 
  3.4   disability; or 
  3.5      (4) any person who is permanently and totally disabled and 
  3.6   whose household income as defined in section 290A.03, 
  3.7   subdivision 5, is 150 percent or less of the federal poverty 
  3.8   level. 
  3.9      Property is classified and assessed under clause (4) only 
  3.10  if the government agency or income-providing source certifies, 
  3.11  upon the request of the homestead occupant, that the homestead 
  3.12  occupant satisfies the disability requirements of this paragraph.
  3.13     Property is classified and assessed pursuant to clause (1) 
  3.14  only if the commissioner of economic security certifies to the 
  3.15  assessor that the homestead occupant satisfies the requirements 
  3.16  of this paragraph.  
  3.17     Permanently and totally disabled for the purpose of this 
  3.18  subdivision means a condition which is permanent in nature and 
  3.19  totally incapacitates the person from working at an occupation 
  3.20  which brings the person an income.  The first $32,000 market 
  3.21  value of class 1b property has a net class rate of .45 .5 
  3.22  percent of its market value and a gross class rate of .87 
  3.23  percent of its market value.  The remaining market value of 
  3.24  class 1b property has a gross or net class rate using the rates 
  3.25  for class 1 or class 2a property, whichever is appropriate, of 
  3.26  similar market value.  
  3.27     (c) Class 1c property is commercial use real property that 
  3.28  abuts a lakeshore line and is devoted to temporary and seasonal 
  3.29  residential occupancy for recreational purposes but not devoted 
  3.30  to commercial purposes for more than 250 days in the year 
  3.31  preceding the year of assessment, and that includes a portion 
  3.32  used as a homestead by the owner, which includes a dwelling 
  3.33  occupied as a homestead by a shareholder of a corporation that 
  3.34  owns the resort or a partner in a partnership that owns the 
  3.35  resort, even if the title to the homestead is held by the 
  3.36  corporation or partnership.  For purposes of this clause, 
  4.1   property is devoted to a commercial purpose on a specific day if 
  4.2   any portion of the property, excluding the portion used 
  4.3   exclusively as a homestead, is used for residential occupancy 
  4.4   and a fee is charged for residential occupancy.  Class 1c 
  4.5   property has a class rate of one percent of total market value 
  4.6   for taxes payable in 1993 and thereafter with the following 
  4.7   limitation:  the area of the property must not exceed 100 feet 
  4.8   of lakeshore footage for each cabin or campsite located on the 
  4.9   property up to a total of 800 feet and 500 feet in depth, 
  4.10  measured away from the lakeshore.  
  4.11     Sec. 2.  Minnesota Statutes 1994, section 273.13, 
  4.12  subdivision 23, is amended to read: 
  4.13     Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
  4.14  land including any improvements that is homesteaded.  The market 
  4.15  value of the house and garage and immediately surrounding one 
  4.16  acre of land has the same class rates as class 1a property under 
  4.17  subdivision 22.  The value of the remaining land including 
  4.18  improvements up to $115,000 has a net class rate of .45 .5 
  4.19  percent of market value and a gross class rate of 1.75 percent 
  4.20  of market value.  The remaining value of class 2a property over 
  4.21  $115,000 of market value that does not exceed 320 acres has a 
  4.22  net class rate of one percent of market value, and a gross class 
  4.23  rate of 2.25 percent of market value.  The remaining property 
  4.24  over the $115,000 market value in excess of 320 acres has a 
  4.25  class rate of 1.5 percent of market value, and a gross class 
  4.26  rate of 2.25 percent of market value.  
  4.27     (b) Class 2b property is (1) real estate, rural in 
  4.28  character and used exclusively for growing trees for timber, 
  4.29  lumber, and wood and wood products; (2) real estate that is not 
  4.30  improved with a structure and is used exclusively for growing 
  4.31  trees for timber, lumber, and wood and wood products, if the 
  4.32  owner has participated or is participating in a cost-sharing 
  4.33  program for afforestation, reforestation, or timber stand 
  4.34  improvement on that particular property, administered or 
  4.35  coordinated by the commissioner of natural resources; (3) real 
  4.36  estate that is nonhomestead agricultural land; or (4) a landing 
  5.1   area or public access area of a privately owned public use 
  5.2   airport.  Class 2b property has a net class rate of 1.5 percent 
  5.3   of market value, and a gross class rate of 2.25 percent of 
  5.4   market value.  
  5.5      (c) Agricultural land as used in this section means 
  5.6   contiguous acreage of ten acres or more, primarily used during 
  5.7   the preceding year for agricultural purposes.  Agricultural use 
  5.8   may include pasture, timber, waste, unusable wild land, and land 
  5.9   included in state or federal farm programs.  "Agricultural 
  5.10  purposes" as used in this section means the raising or 
  5.11  cultivation of agricultural products.  
  5.12     (d) Real estate of less than ten acres used principally for 
  5.13  raising or cultivating agricultural products, shall be 
  5.14  considered as agricultural land, if it is not used primarily for 
  5.15  residential purposes.  
  5.16     (e) The term "agricultural products" as used in this 
  5.17  subdivision includes:  
  5.18     (1) livestock, dairy animals, dairy products, poultry and 
  5.19  poultry products, fur-bearing animals, horticultural and nursery 
  5.20  stock described in sections 18.44 to 18.61, fruit of all kinds, 
  5.21  vegetables, forage, grains, bees, and apiary products by the 
  5.22  owner; 
  5.23     (2) fish bred for sale and consumption if the fish breeding 
  5.24  occurs on land zoned for agricultural use; 
  5.25     (3) the commercial boarding of horses if the boarding is 
  5.26  done in conjunction with raising or cultivating agricultural 
  5.27  products as defined in clause (1); 
  5.28     (4) property which is owned and operated by nonprofit 
  5.29  organizations used for equestrian activities, excluding racing; 
  5.30  and 
  5.31     (5) game birds and waterfowl bred and raised for use on a 
  5.32  shooting preserve licensed under section 97A.115.  
  5.33     (f) If a parcel used for agricultural purposes is also used 
  5.34  for commercial or industrial purposes, including but not limited 
  5.35  to:  
  5.36     (1) wholesale and retail sales; 
  6.1      (2) processing of raw agricultural products or other goods; 
  6.2      (3) warehousing or storage of processed goods; and 
  6.3      (4) office facilities for the support of the activities 
  6.4   enumerated in clauses (1), (2), and (3), 
  6.5   the assessor shall classify the part of the parcel used for 
  6.6   agricultural purposes as class 1b, 2a, or 2b, whichever is 
  6.7   appropriate, and the remainder in the class appropriate to its 
  6.8   use.  The grading, sorting, and packaging of raw agricultural 
  6.9   products for first sale is considered an agricultural purpose.  
  6.10  A greenhouse or other building where horticultural or nursery 
  6.11  products are grown that is also used for the conduct of retail 
  6.12  sales must be classified as agricultural if it is primarily used 
  6.13  for the growing of horticultural or nursery products from seed, 
  6.14  cuttings, or roots and occasionally as a showroom for the retail 
  6.15  sale of those products.  Use of a greenhouse or building only 
  6.16  for the display of already grown horticultural or nursery 
  6.17  products does not qualify as an agricultural purpose.  
  6.18     The assessor shall determine and list separately on the 
  6.19  records the market value of the homestead dwelling and the one 
  6.20  acre of land on which that dwelling is located.  If any farm 
  6.21  buildings or structures are located on this homesteaded acre of 
  6.22  land, their market value shall not be included in this separate 
  6.23  determination.  
  6.24     (g) To qualify for classification under paragraph (b), 
  6.25  clause (4), a privately owned public use airport must be 
  6.26  licensed as a public airport under section 360.018.  For 
  6.27  purposes of paragraph (b), clause (4), "landing area" means that 
  6.28  part of a privately owned public use airport properly cleared, 
  6.29  regularly maintained, and made available to the public for use 
  6.30  by aircraft and includes runways, taxiways, aprons, and sites 
  6.31  upon which are situated landing or navigational aids.  A landing 
  6.32  area also includes land underlying both the primary surface and 
  6.33  the approach surfaces that comply with all of the following:  
  6.34     (i) the land is properly cleared and regularly maintained 
  6.35  for the primary purposes of the landing, taking off, and taxiing 
  6.36  of aircraft; but that portion of the land that contains 
  7.1   facilities for servicing, repair, or maintenance of aircraft is 
  7.2   not included as a landing area; 
  7.3      (ii) the land is part of the airport property; and 
  7.4      (iii) the land is not used for commercial or residential 
  7.5   purposes. 
  7.6   The land contained in a landing area under paragraph (b), clause 
  7.7   (4), must be described and certified by the commissioner of 
  7.8   transportation.  The certification is effective until it is 
  7.9   modified, or until the airport or landing area no longer meets 
  7.10  the requirements of paragraph (b), clause (4).  For purposes of 
  7.11  paragraph (b), clause (4), "public access area" means property 
  7.12  used as an aircraft parking ramp, apron, or storage hangar, or 
  7.13  an arrival and departure building in connection with the airport.
  7.14     Sec. 3.  Minnesota Statutes 1994, section 273.13, 
  7.15  subdivision 24, is amended to read: 
  7.16     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  7.17  property and utility real and personal property, except class 5 
  7.18  property as identified in subdivision 31, clause (1), is class 
  7.19  3a.  It has a class rate of three 3.5 percent of the first 
  7.20  $100,000 of market value for taxes payable in 1993 and 
  7.21  thereafter, and 5.06 5.0 percent of the market value over 
  7.22  $100,000.  In the case of state-assessed commercial, industrial, 
  7.23  and utility property owned by one person or entity, only one 
  7.24  parcel has a reduced class rate on the first $100,000 of market 
  7.25  value.  In the case of other commercial, industrial, and utility 
  7.26  property owned by one person or entity, only one parcel in each 
  7.27  county has a reduced class rate on the first $100,000 of market 
  7.28  value, except that: 
  7.29     (1) if the market value of the parcel is less than 
  7.30  $100,000, and additional parcels are owned by the same person or 
  7.31  entity in the same city or town within that county, the reduced 
  7.32  class rate shall be applied up to a combined total market value 
  7.33  of $100,000 for all parcels owned by the same person or entity 
  7.34  in the same city or town within the county; 
  7.35     (2) in the case of grain, fertilizer, and feed elevator 
  7.36  facilities, as defined in section 18C.305, subdivision 1, or 
  8.1   232.21, subdivision 8, the limitation to one parcel per owner 
  8.2   per county for the reduced class rate shall not apply, but there 
  8.3   shall be a limit of $100,000 of preferential value per site of 
  8.4   contiguous parcels owned by the same person or entity.  Only the 
  8.5   value of the elevator portion of each parcel shall qualify for 
  8.6   treatment under this clause.  For purposes of this subdivision, 
  8.7   contiguous parcels include parcels separated only by a railroad 
  8.8   or public road right-of-way; and 
  8.9      (3) in the case of property owned by a nonprofit charitable 
  8.10  organization that qualifies for tax exemption under section 
  8.11  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  8.12  through December 31, 1993, if the property is used as a business 
  8.13  incubator, the limitation to one parcel per owner per county for 
  8.14  the reduced class rate shall not apply, provided that the 
  8.15  reduced rate applies only to the first $100,000 of value per 
  8.16  parcel owned by the organization.  As used in this clause, a 
  8.17  "business incubator" is a facility used for the development of 
  8.18  nonretail businesses, offering access to equipment, space, 
  8.19  services, and advice to the tenant businesses, for the purpose 
  8.20  of encouraging economic development, diversification, and job 
  8.21  creation in the area served by the organization. 
  8.22     To receive the reduced class rate on additional parcels 
  8.23  under clause (1), (2), or (3), the taxpayer must notify the 
  8.24  county assessor that the taxpayer owns more than one parcel that 
  8.25  qualifies under clause (1), (2), or (3). 
  8.26     (b) Employment property defined in section 469.166, during 
  8.27  the period provided in section 469.170, shall constitute class 
  8.28  3b and has a class rate of 2.3 percent of the first $50,000 of 
  8.29  market value and 3.6 percent of the remainder, except that for 
  8.30  employment property located in a border city enterprise zone 
  8.31  designated pursuant to section 469.168, subdivision 4, paragraph 
  8.32  (c), the class rate of the first $100,000 of market value and 
  8.33  the class rate of the remainder is determined under paragraph 
  8.34  (a), unless the governing body of the city designated as an 
  8.35  enterprise zone determines that a specific parcel shall be 
  8.36  assessed pursuant to the first clause of this sentence.  The 
  9.1   governing body may provide for assessment under the first clause 
  9.2   of the preceding sentence only for property which is located in 
  9.3   an area which has been designated by the governing body for the 
  9.4   receipt of tax reductions authorized by section 469.171, 
  9.5   subdivision 1. 
  9.6      Sec. 4.  Minnesota Statutes 1994, section 273.13, 
  9.7   subdivision 25, is amended to read: 
  9.8      Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  9.9   estate containing four or more units and used or held for use by 
  9.10  the owner or by the tenants or lessees of the owner as a 
  9.11  residence for rental periods of 30 days or more.  Class 4a also 
  9.12  includes hospitals licensed under sections 144.50 to 144.56, 
  9.13  other than hospitals exempt under section 272.02, and contiguous 
  9.14  property used for hospital purposes, without regard to whether 
  9.15  the property has been platted or subdivided.  Class 4a property 
  9.16  has a class rate of 3.5 percent of market value for taxes 
  9.17  payable in 1992, and 3.4 percent of market value for taxes 
  9.18  payable in 1993 and thereafter. 
  9.19     (b) Class 4b includes: 
  9.20     (1) residential real estate containing less than four 
  9.21  units, other than seasonal residential, and recreational; 
  9.22     (2) manufactured homes not classified under any other 
  9.23  provision; 
  9.24     (3) a dwelling, garage, and surrounding one acre of 
  9.25  property on a nonhomestead farm classified under subdivision 23, 
  9.26  paragraph (b).  
  9.27     Class 4b property has a class rate of 2.8 percent of market 
  9.28  value for taxes payable in 1992, 2.5 percent of market value for 
  9.29  taxes payable in 1993, and 2.3 percent of market value for taxes 
  9.30  payable in 1994 and thereafter. 
  9.31     (c) Class 4c property includes: 
  9.32     (1) a structure that is:  
  9.33     (i) situated on real property that is used for housing for 
  9.34  the elderly or for low- and moderate-income families as defined 
  9.35  in Title II, as amended through December 31, 1990, of the 
  9.36  National Housing Act or the Minnesota housing finance agency law 
 10.1   of 1971, as amended, or rules promulgated by the agency and 
 10.2   financed by a direct federal loan or federally insured loan made 
 10.3   pursuant to Title II of the Act; or 
 10.4      (ii) situated on real property that is used for housing the 
 10.5   elderly or for low- and moderate-income families as defined by 
 10.6   the Minnesota housing finance agency law of 1971, as amended, or 
 10.7   rules adopted by the agency pursuant thereto and financed by a 
 10.8   loan made by the Minnesota housing finance agency pursuant to 
 10.9   the provisions of the act.  
 10.10     This clause applies only to property of a nonprofit or 
 10.11  limited dividend entity.  Property is classified as class 4c 
 10.12  under this clause for 15 years from the date of the completion 
 10.13  of the original construction or substantial rehabilitation, or 
 10.14  for the original term of the loan.  
 10.15     (2) a structure that is: 
 10.16     (i) situated upon real property that is used for housing 
 10.17  lower income families or elderly or handicapped persons, as 
 10.18  defined in section 8 of the United States Housing Act of 1937, 
 10.19  as amended; and 
 10.20     (ii) owned by an entity which has entered into a housing 
 10.21  assistance payments contract under section 8 which provides 
 10.22  assistance for 100 percent of the dwelling units in the 
 10.23  structure, other than dwelling units intended for management or 
 10.24  maintenance personnel.  Property is classified as class 4c under 
 10.25  this clause for the term of the housing assistance payments 
 10.26  contract, including all renewals, or for the term of its 
 10.27  permanent financing, whichever is shorter; and 
 10.28     (3) a qualified low-income building as defined in section 
 10.29  42(c)(2) of the Internal Revenue Code of 1986, as amended 
 10.30  through December 31, 1990, that (i) receives a low-income 
 10.31  housing credit under section 42 of the Internal Revenue Code of 
 10.32  1986, as amended through December 31, 1990; or (ii) meets the 
 10.33  requirements of that section and receives public financing, 
 10.34  except financing provided under sections 469.174 to 469.179, 
 10.35  which contains terms restricting the rents; or (iii) meets the 
 10.36  requirements of section 273.1317.  Classification pursuant to 
 11.1   this clause is limited to a term of 15 years.  The public 
 11.2   financing received must be from at least one of the following 
 11.3   sources:  government issued bonds exempt from taxes under 
 11.4   section 103 of the Internal Revenue Code of 1986, as amended 
 11.5   through December 31, 1993, the proceeds of which are used for 
 11.6   the acquisition or rehabilitation of the building; programs 
 11.7   under section 221(d)(3), 202, or 236, of Title II of the 
 11.8   National Housing Act; rental housing program funds under Section 
 11.9   8 of the United States Housing Act of 1937 or the market rate 
 11.10  family graduated payment mortgage program funds administered by 
 11.11  the Minnesota housing finance agency that are used for the 
 11.12  acquisition or rehabilitation of the building; public financing 
 11.13  provided by a local government used for the acquisition or 
 11.14  rehabilitation of the building, including grants or loans from 
 11.15  federal community development block grants, HOME block grants, 
 11.16  or residential rental bonds issued under chapter 474A; or other 
 11.17  rental housing program funds provided by the Minnesota housing 
 11.18  finance agency for the acquisition or rehabilitation of the 
 11.19  building. 
 11.20     For all properties described in clauses (1), (2), and (3) 
 11.21  and in paragraph (d), the market value determined by the 
 11.22  assessor must be based on the normal approach to value using 
 11.23  normal unrestricted rents unless the owner of the property 
 11.24  elects to have the property assessed under Laws 1991, chapter 
 11.25  291, article 1, section 55.  If the owner of the property elects 
 11.26  to have the market value determined on the basis of the actual 
 11.27  restricted rents, as provided in Laws 1991, chapter 291, article 
 11.28  1, section 55, the property will be assessed at the rate 
 11.29  provided for class 4a or class 4b property, as appropriate.  
 11.30  Properties described in clauses (1)(ii), (3), and (4) may apply 
 11.31  to the assessor for valuation under Laws 1991, chapter 291, 
 11.32  article 1, section 55.  The land on which these structures are 
 11.33  situated has the class rate given in paragraph (b) if the 
 11.34  structure contains fewer than four units, and the class rate 
 11.35  given in paragraph (a) if the structure contains four or more 
 11.36  units.  This clause applies only to the property of a nonprofit 
 12.1   or limited dividend entity.  
 12.2      (4) a parcel of land, not to exceed one acre, and its 
 12.3   improvements or a parcel of unimproved land, not to exceed one 
 12.4   acre, if it is owned by a neighborhood real estate trust and at 
 12.5   least 60 percent of the dwelling units, if any, on all land 
 12.6   owned by the trust are leased to or occupied by lower income 
 12.7   families or individuals.  This clause does not apply to any 
 12.8   portion of the land or improvements used for nonresidential 
 12.9   purposes.  For purposes of this clause, a lower income family is 
 12.10  a family with an income that does not exceed 65 percent of the 
 12.11  median family income for the area, and a lower income individual 
 12.12  is an individual whose income does not exceed 65 percent of the 
 12.13  median individual income for the area, as determined by the 
 12.14  United States Secretary of Housing and Urban Development.  For 
 12.15  purposes of this clause, "neighborhood real estate trust" means 
 12.16  an entity which is certified by the governing body of the 
 12.17  municipality in which it is located to have the following 
 12.18  characteristics: 
 12.19     (a) it is a nonprofit corporation organized under chapter 
 12.20  317A; 
 12.21     (b) it has as its principal purpose providing housing for 
 12.22  lower income families in a specific geographic community 
 12.23  designated in its articles or bylaws; 
 12.24     (c) it limits membership with voting rights to residents of 
 12.25  the designated community; and 
 12.26     (d) it has a board of directors consisting of at least 
 12.27  seven directors, 60 percent of whom are members with voting 
 12.28  rights and, to the extent feasible, 25 percent of whom are 
 12.29  elected by resident members of buildings owned by the trust; and 
 12.30     (5) except as provided in subdivision 22, paragraph (c), 
 12.31  real property devoted to temporary and seasonal residential 
 12.32  occupancy for recreation purposes, including real property 
 12.33  devoted to temporary and seasonal residential occupancy for 
 12.34  recreation purposes and not devoted to commercial purposes for 
 12.35  more than 250 days in the year preceding the year of 
 12.36  assessment.  For purposes of this clause, property is devoted to 
 13.1   a commercial purpose on a specific day if any portion of the 
 13.2   property is used for residential occupancy, and a fee is charged 
 13.3   for residential occupancy.  Class 4c also includes commercial 
 13.4   use real property used exclusively for recreational purposes in 
 13.5   conjunction with class 4c property devoted to temporary and 
 13.6   seasonal residential occupancy for recreational purposes, up to 
 13.7   a total of two acres, provided the property is not devoted to 
 13.8   commercial recreational use for more than 250 days in the year 
 13.9   preceding the year of assessment and is located within two miles 
 13.10  of the class 4c property with which it is used.  Class 4c 
 13.11  property classified in this clause also includes the remainder 
 13.12  of class 1c resorts.  Owners of real property devoted to 
 13.13  temporary and seasonal residential occupancy for recreation 
 13.14  purposes and all or a portion of which was devoted to commercial 
 13.15  purposes for not more than 250 days in the year preceding the 
 13.16  year of assessment desiring classification as class 1c or 4c, 
 13.17  must submit a declaration to the assessor designating the cabins 
 13.18  or units occupied for 250 days or less in the year preceding the 
 13.19  year of assessment by January 15 of the assessment year.  Those 
 13.20  cabins or units and a proportionate share of the land on which 
 13.21  they are located will be designated class 1c or 4c as otherwise 
 13.22  provided.  The remainder of the cabins or units and a 
 13.23  proportionate share of the land on which they are located will 
 13.24  be designated as class 3a.  The first $100,000 of the market 
 13.25  value of the remainder of the cabins or units and a 
 13.26  proportionate share of the land on which they are located shall 
 13.27  have a class rate of three 3.5 percent.  The owner of property 
 13.28  desiring designation as class 1c or 4c property must provide 
 13.29  guest registers or other records demonstrating that the units 
 13.30  for which class 1c or 4c designation is sought were not occupied 
 13.31  for more than 250 days in the year preceding the assessment if 
 13.32  so requested.  The portion of a property operated as a (1) 
 13.33  restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 13.34  facility operated on a commercial basis not directly related to 
 13.35  temporary and seasonal residential occupancy for recreation 
 13.36  purposes shall not qualify for class 1c or 4c; 
 14.1      (6) real property up to a maximum of one acre of land owned 
 14.2   by a nonprofit community service oriented organization; provided 
 14.3   that the property is not used for a revenue-producing activity 
 14.4   for more than six days in the calendar year preceding the year 
 14.5   of assessment and the property is not used for residential 
 14.6   purposes on either a temporary or permanent basis.  For purposes 
 14.7   of this clause, a "nonprofit community service oriented 
 14.8   organization" means any corporation, society, association, 
 14.9   foundation, or institution organized and operated exclusively 
 14.10  for charitable, religious, fraternal, civic, or educational 
 14.11  purposes, and which is exempt from federal income taxation 
 14.12  pursuant to section 501(c)(3), (10), or (19) of the Internal 
 14.13  Revenue Code of 1986, as amended through December 31, 1990.  For 
 14.14  purposes of this clause, "revenue-producing activities" shall 
 14.15  include but not be limited to property or that portion of the 
 14.16  property that is used as an on-sale intoxicating liquor or 3.2 
 14.17  percent malt liquor establishment licensed under chapter 340A, a 
 14.18  restaurant open to the public, bowling alley, a retail store, 
 14.19  gambling conducted by organizations licensed under chapter 349, 
 14.20  an insurance business, or office or other space leased or rented 
 14.21  to a lessee who conducts a for-profit enterprise on the 
 14.22  premises.  Any portion of the property which is used for 
 14.23  revenue-producing activities for more than six days in the 
 14.24  calendar year preceding the year of assessment shall be assessed 
 14.25  as class 3a.  The use of the property for social events open 
 14.26  exclusively to members and their guests for periods of less than 
 14.27  24 hours, when an admission is not charged nor any revenues are 
 14.28  received by the organization shall not be considered a 
 14.29  revenue-producing activity; 
 14.30     (7) post-secondary student housing of not more than one 
 14.31  acre of land that is owned by a nonprofit corporation organized 
 14.32  under chapter 317A and is used exclusively by a student 
 14.33  cooperative, sorority, or fraternity for on-campus housing or 
 14.34  housing located within two miles of the border of a college 
 14.35  campus; and 
 14.36     (8) manufactured home parks as defined in section 327.14, 
 15.1   subdivision 3. 
 15.2      Class 4c property has a class rate of 2.3 2.5 percent of 
 15.3   market value, except that (i) each parcel of seasonal 
 15.4   residential recreational property not used for commercial 
 15.5   purposes under clause (5) has a class rate of 2.2 percent of 
 15.6   market value for taxes payable in 1992, and for taxes payable in 
 15.7   1993 and thereafter, the first $72,000 of market value on each 
 15.8   parcel has a class rate of two percent and the market value of 
 15.9   each parcel that exceeds $72,000 has a class rate of 2.5 
 15.10  percent, and (ii) manufactured home parks assessed under clause 
 15.11  (8) have a class rate of two percent for taxes payable in 1993, 
 15.12  1994, and 1995 only.  
 15.13     (d) Class 4d property includes: 
 15.14     (1) a structure that is: 
 15.15     (i) situated on real property that is used for housing for 
 15.16  the elderly or for low and moderate income families as defined 
 15.17  by the Farmers Home Administration; 
 15.18     (ii) located in a municipality of less than 10,000 
 15.19  population; and 
 15.20     (iii) financed by a direct loan or insured loan from the 
 15.21  Farmers Home Administration.  Property is classified under this 
 15.22  clause for 15 years from the date of the completion of the 
 15.23  original construction or for the original term of the loan.  
 15.24     The class rates in paragraph (c), clauses (1), (2), and (3) 
 15.25  and this clause apply to the properties described in them, only 
 15.26  in proportion to occupancy of the structure by elderly or 
 15.27  handicapped persons or low and moderate income families as 
 15.28  defined in the applicable laws unless construction of the 
 15.29  structure had been commenced prior to January 1, 1984; or the 
 15.30  project had been approved by the governing body of the 
 15.31  municipality in which it is located prior to June 30, 1983; or 
 15.32  financing of the project had been approved by a federal or state 
 15.33  agency prior to June 30, 1983.  For those properties, 4c or 4d 
 15.34  classification is available only for those units meeting the 
 15.35  requirements of section 273.1318. 
 15.36     Classification under this clause is only available to 
 16.1   property of a nonprofit or limited dividend entity. 
 16.2      In the case of a structure financed or refinanced under any 
 16.3   federal or state mortgage insurance or direct loan program 
 16.4   exclusively for housing for the elderly or for housing for the 
 16.5   handicapped, a unit shall be considered occupied so long as it 
 16.6   is actually occupied by an elderly or handicapped person or, if 
 16.7   vacant, is held for rental to an elderly or handicapped person. 
 16.8      (2) For taxes payable in 1992, 1993, and 1994, only, 
 16.9   buildings and appurtenances, together with the land upon which 
 16.10  they are located, leased by the occupant under the community 
 16.11  lending model lease-purchase mortgage loan program administered 
 16.12  by the Federal National Mortgage Association, provided the 
 16.13  occupant's income is no greater than 60 percent of the county or 
 16.14  area median income, adjusted for family size and the building 
 16.15  consists of existing single family or duplex housing.  The lease 
 16.16  agreement must provide for a portion of the lease payment to be 
 16.17  escrowed as a nonrefundable down payment on the housing.  To 
 16.18  qualify under this clause, the taxpayer must apply to the county 
 16.19  assessor by May 30 of each year.  The application must be 
 16.20  accompanied by an affidavit or other proof required by the 
 16.21  assessor to determine qualification under this clause. 
 16.22     (3) Qualifying buildings and appurtenances, together with 
 16.23  the land upon which they are located, leased for a period of up 
 16.24  to five years by the occupant under a lease-purchase program 
 16.25  administered by the Minnesota housing finance agency or a 
 16.26  housing and redevelopment authority authorized under sections 
 16.27  469.001 to 469.047, provided the occupant's income is no greater 
 16.28  than 80 percent of the county or area median income, adjusted 
 16.29  for family size, and the building consists of two or less fewer 
 16.30  dwelling units.  The lease agreement must provide for a portion 
 16.31  of the lease payment to be escrowed as a nonrefundable down 
 16.32  payment on the housing.  The administering agency shall verify 
 16.33  the occupants income eligibility and certify to the county 
 16.34  assessor that the occupant meets the income criteria under this 
 16.35  paragraph.  To qualify under this clause, the taxpayer must 
 16.36  apply to the county assessor by May 30 of each year.  For 
 17.1   purposes of this section, "qualifying buildings and 
 17.2   appurtenances" shall be defined as one or two unit residential 
 17.3   buildings which are unoccupied and have been abandoned and 
 17.4   boarded for at least six months. 
 17.5      Class 4d property has a class rate of two percent of market 
 17.6   value except that property classified under clause (3), shall 
 17.7   have the same class rate as class 1a property. 
 17.8      (e) Residential rental property that would otherwise be 
 17.9   assessed as class 4 property under paragraph (a); paragraph (b), 
 17.10  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 17.11  (4), is assessed at the class rate applicable to it under 
 17.12  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 17.13  substandard building under section 273.1316.  Residential rental 
 17.14  property that would otherwise be assessed as class 4 property 
 17.15  under paragraph (d) is assessed at 2.3 2.5 percent of market 
 17.16  value if it is found to be a substandard building under section 
 17.17  273.1316. 
 17.18     Sec. 5.  Minnesota Statutes 1994, section 273.13, 
 17.19  subdivision 31, is amended to read: 
 17.20     Subd. 31.  [CLASS 5.] Class 5 property includes:  
 17.21     (1) tools, implements, and machinery of an electric 
 17.22  generating, transmission, or distribution system or a pipeline 
 17.23  system transporting or distributing water, gas, crude oil, or 
 17.24  petroleum products or mains and pipes used in the distribution 
 17.25  of steam or hot or chilled water for heating or cooling 
 17.26  buildings, which are fixtures; 
 17.27     (2) unmined iron ore and low-grade iron-bearing formations 
 17.28  as defined in section 273.14; and 
 17.29     (3) all other property not otherwise classified. 
 17.30     Class 5 property has a class rate of 5.06 5.0 percent of 
 17.31  market value. 
 17.32     Sec. 6.  Minnesota Statutes 1994, section 273.1398, 
 17.33  subdivision 6, is amended to read: 
 17.34     Subd. 6.  [PAYMENT.] The commissioner shall certify the 
 17.35  aids provided in subdivisions 2, 2b, 3, and 5, and 9, and the 
 17.36  levy recapture, if any, under subdivision 9 before September 1 
 18.1   of the year preceding the distribution year to the county 
 18.2   auditor of the affected local government.  The aids provided in 
 18.3   subdivisions 2, 2b, 3, and 5, and 9 must be paid to local 
 18.4   governments other than school districts at the times provided in 
 18.5   section 477A.015 for payment of local government aid to taxing 
 18.6   jurisdictions, except that the first one-half payment of 
 18.7   disparity reduction aid provided in subdivision 3 must be paid 
 18.8   on or before August 31.  The disparity reduction credit provided 
 18.9   in subdivision 4 must be paid to taxing jurisdictions other than 
 18.10  school districts at the time provided in section 473H.10, 
 18.11  subdivision 3.  Aids and credit reimbursements to school 
 18.12  districts must be certified to the commissioner of education and 
 18.13  paid under section 273.1392.  Except for education districts and 
 18.14  secondary cooperatives that receive revenue according to section 
 18.15  124.575, payment shall not be made to any taxing jurisdiction 
 18.16  that has ceased to levy a property tax. 
 18.17     Sec. 7.  Minnesota Statutes 1994, section 273.1398, is 
 18.18  amended by adding a subdivision to read: 
 18.19     Subd. 9.  [TRANSITION AID AND LEVY RECAPTURE.] (a) For aids 
 18.20  payable in 1996 and thereafter, the commissioner of revenue 
 18.21  shall subtract each local governmental unit's basic property tax 
 18.22  rate determined under section 275.078 from its local tax rate 
 18.23  within each unique taxing jurisdiction for taxes payable in 
 18.24  1995.  If the difference is positive, the commissioner shall 
 18.25  calculate transition aid equal to the tax rate difference 
 18.26  multiplied by the local governmental unit's total net tax 
 18.27  capacity.  The aid shall be paid to each local governmental unit 
 18.28  as provided in subdivision 6.  For tax increment financing 
 18.29  districts, transition aid shall be equal to the difference 
 18.30  between the total local tax rate for the unique taxing 
 18.31  jurisdiction for taxes payable in 1995 minus 100 percent 
 18.32  multiplied by the captured net tax capacity within the unique 
 18.33  taxing jurisdiction.  Transition aid cannot be less than zero.  
 18.34     (b) If the difference for a local governmental unit is 
 18.35  negative, the county treasurer of the county in which the local 
 18.36  governmental unit is located shall deduct from the proceeds of 
 19.1   the local governmental unit's levy and remit to the commissioner 
 19.2   of revenue a levy recapture amount equal to the tax rate 
 19.3   difference multiplied by the local governmental unit's total net 
 19.4   tax capacity.  One-half of the total offset amount for the year 
 19.5   shall be deducted from each distribution under sections 276.11 
 19.6   and 276.111.  The commissioner shall deposit all levy recapture 
 19.7   payments in the general fund. 
 19.8      Sec. 8.  Minnesota Statutes 1994, section 275.065, 
 19.9   subdivision 1, is amended to read: 
 19.10     Subdivision 1.  [PROPOSED LEVY.] Notwithstanding any law or 
 19.11  charter to the contrary, on or before September 15, each taxing 
 19.12  authority, other than a school district, shall adopt a proposed 
 19.13  budget and each taxing authority shall certify to the county 
 19.14  auditor the proposed or, in the case of a town, the final 
 19.15  property tax levy for taxes payable in the following year.  The 
 19.16  certification must include both the basic property tax levy 
 19.17  under section 275.078 and any referendum levy approved under 
 19.18  section 275.61.  If the board of estimate and taxation or any 
 19.19  similar board that establishes maximum tax levies for taxing 
 19.20  jurisdictions within a first class city certifies the maximum 
 19.21  property tax levies for funds under its jurisdiction by charter 
 19.22  to the county auditor by September 15, the city shall be deemed 
 19.23  to have certified its levies for those taxing jurisdictions.  
 19.24  For purposes of this section, "taxing authority" includes all 
 19.25  home rule and statutory cities, towns, counties, school 
 19.26  districts, and special taxing districts as defined in section 
 19.27  275.066.  Intermediate school districts that levy a tax under 
 19.28  chapter 124 or 136D, joint powers boards established under 
 19.29  sections 124.491 to 124.495, and common school districts No. 
 19.30  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 19.31  districts for purposes of this section.  
 19.32     Sec. 9.  Minnesota Statutes 1994, section 275.065, 
 19.33  subdivision 3, is amended to read: 
 19.34     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 19.35  county auditor shall prepare and the county treasurer shall 
 19.36  deliver after November 10 and on or before November 24 each 
 20.1   year, by first class mail to each taxpayer at the address listed 
 20.2   on the county's current year's assessment roll, a notice of 
 20.3   proposed property taxes and, in the case of a town, final 
 20.4   property taxes.  
 20.5      (b) The commissioner of revenue shall prescribe the form of 
 20.6   the notice. 
 20.7      (c) The notice must inform taxpayers that it contains the 
 20.8   amount of property taxes each taxing authority other than a town 
 20.9   proposes to collect for taxes payable the following year and, 
 20.10  for a town, the amount of its final levy.  It must clearly state 
 20.11  that each taxing authority, including regional library districts 
 20.12  established under section 134.201, and including the 
 20.13  metropolitan taxing districts as defined in paragraph (i), but 
 20.14  excluding all other special taxing districts and towns, will 
 20.15  hold a public meeting to receive public testimony on the 
 20.16  proposed budget and proposed or final property tax levy, or, in 
 20.17  case of a school district, on the current budget and proposed 
 20.18  property tax levy.  It must clearly state the time and place of 
 20.19  each taxing authority's meeting and an address where comments 
 20.20  will be received by mail.  The notice must include the estimated 
 20.21  percentage increase in Minnesota personal income, provided by 
 20.22  the commissioner of revenue under section 275.064, in a way to 
 20.23  facilitate comparison of the proposed budget and levy increases 
 20.24  with the increase in personal income.  For 1993, the notice must 
 20.25  clearly state that each taxing authority holding a public 
 20.26  meeting will describe the increases or decreases of the total 
 20.27  budget, including employee and independent contractor 
 20.28  compensation in the prior year, current year, and the proposed 
 20.29  budget year.  
 20.30     (d) The notice must state for each parcel: 
 20.31     (1) the market value of the property as determined under 
 20.32  section 273.11, and used for computing property taxes payable in 
 20.33  the following year and for taxes payable in the current year; 
 20.34  and, in the case of residential property, whether the property 
 20.35  is classified as homestead or nonhomestead.  The notice must 
 20.36  clearly inform taxpayers of the years to which the market values 
 21.1   apply and that the values are final values; 
 21.2      (2) by county, city or town, and school district excess, 
 21.3   basic property tax levies and referenda levy, remaining school 
 21.4   district levy levies under section 275.61, regional library 
 21.5   district, if in existence, the total of the metropolitan special 
 21.6   taxing districts as defined in paragraph (i) and the sum of the 
 21.7   remaining special taxing districts, and as a total of the taxing 
 21.8   authorities, including all special taxing districts, the 
 21.9   proposed or, for a town, final net tax on the property for taxes 
 21.10  payable the following year and the actual tax for taxes payable 
 21.11  the current year.  For the purposes of this subdivision, "school 
 21.12  district excess referenda levy" means school district taxes for 
 21.13  operating purposes approved at referendums, including those 
 21.14  taxes based on net tax capacity as well as those based on market 
 21.15  value.  "School district excess referenda levy" does not include 
 21.16  school district taxes for capital expenditures approved at 
 21.17  referendums or school district taxes to pay for the debt service 
 21.18  on bonds approved at referenda.  In the case of the city of 
 21.19  Minneapolis, the levy for the Minneapolis library board and the 
 21.20  levy for Minneapolis park and recreation shall be listed 
 21.21  separately from the remaining amount of the city's levy.  In the 
 21.22  case of a parcel where tax increment or the fiscal disparities 
 21.23  areawide tax applies, the proposed tax levy on the captured 
 21.24  value or the proposed tax levy on the tax capacity subject to 
 21.25  the areawide tax must each be stated separately and not included 
 21.26  in the sum of the special taxing districts; and 
 21.27     (3) the increase or decrease in the amounts in clause (2) 
 21.28  from taxes payable in the current year to proposed or, for a 
 21.29  town, final taxes payable the following year, expressed as a 
 21.30  dollar amount and as a percentage. 
 21.31     (e) The notice must clearly state that the proposed or 
 21.32  final taxes do not include the following: 
 21.33     (1) special assessments; 
 21.34     (2) levies approved by the voters after the date the 
 21.35  proposed taxes are certified, including bond referenda, school 
 21.36  district levy referenda, and levy limit increase referenda; 
 22.1      (3) amounts necessary to pay cleanup or other costs due to 
 22.2   a natural disaster occurring after the date the proposed taxes 
 22.3   are certified; 
 22.4      (4) amounts necessary to pay tort judgments against the 
 22.5   taxing authority that become final after the date the proposed 
 22.6   taxes are certified; and 
 22.7      (5) the contamination tax imposed on properties which 
 22.8   received market value reductions for contamination. 
 22.9      (f) Except as provided in subdivision 7, failure of the 
 22.10  county auditor to prepare or the county treasurer to deliver the 
 22.11  notice as required in this section does not invalidate the 
 22.12  proposed or final tax levy or the taxes payable pursuant to the 
 22.13  tax levy. 
 22.14     (g) If the notice the taxpayer receives under this section 
 22.15  lists the property as nonhomestead and the homeowner provides 
 22.16  satisfactory documentation to the county assessor that the 
 22.17  property is owned and has been used as the owner's homestead 
 22.18  prior to June 1 of that year, the assessor shall reclassify the 
 22.19  property to homestead for taxes payable in the following year. 
 22.20     (h) In the case of class 4 residential property used as a 
 22.21  residence for lease or rental periods of 30 days or more, the 
 22.22  taxpayer must either: 
 22.23     (1) mail or deliver a copy of the notice of proposed 
 22.24  property taxes to each tenant, renter, or lessee; or 
 22.25     (2) post a copy of the notice in a conspicuous place on the 
 22.26  premises of the property.  
 22.27     (i) For purposes of this subdivision, subdivisions 5a and 
 22.28  6, "metropolitan special taxing districts" means the following 
 22.29  taxing districts in the seven-county metropolitan area that levy 
 22.30  a property tax for any of the specified purposes listed below: 
 22.31     (1) metropolitan council under section 473.132, 473.167, 
 22.32  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 22.33     (2) metropolitan airports commission under section 473.667, 
 22.34  473.671, or 473.672; and 
 22.35     (3) metropolitan mosquito control commission under section 
 22.36  473.711. 
 23.1      For purposes of this section, any levies made by the 
 23.2   regional rail authorities in the county of Anoka, Carver, 
 23.3   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 23.4   398A shall be included with the appropriate county's levy and 
 23.5   shall be discussed at that county's public hearing. 
 23.6      The notice must be mailed or posted by the taxpayer by 
 23.7   November 27 or within three days of receipt of the notice, 
 23.8   whichever is later.  A taxpayer may notify the county treasurer 
 23.9   of the address of the taxpayer, agent, caretaker, or manager of 
 23.10  the premises to which the notice must be mailed in order to 
 23.11  fulfill the requirements of this paragraph. 
 23.12     Sec. 10.  Minnesota Statutes 1994, section 275.065, 
 23.13  subdivision 5a, is amended to read: 
 23.14     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
 23.15  population of more than 1,000, county, a metropolitan special 
 23.16  taxing district as defined in subdivision 3, paragraph (i), a 
 23.17  regional library district established under section 134.201, or 
 23.18  school district shall advertise in a newspaper a notice of its 
 23.19  intent to adopt a budget and property tax levy or, in the case 
 23.20  of a school district, to review its current budget and proposed 
 23.21  property taxes payable in the following year, at a public 
 23.22  hearing.  The notice must be published not less than two 
 23.23  business days nor more than six business days before the hearing.
 23.24     The advertisement must be at least one-eighth page in size 
 23.25  of a standard-size or a tabloid-size newspaper.  The 
 23.26  advertisement must not be placed in the part of the newspaper 
 23.27  where legal notices and classified advertisements appear.  The 
 23.28  advertisement must be published in an official newspaper of 
 23.29  general circulation in the taxing authority.  The newspaper 
 23.30  selected must be one of general interest and readership in the 
 23.31  community, and not one of limited subject matter.  The 
 23.32  advertisement must appear in a newspaper that is published at 
 23.33  least once per week.  
 23.34     For purposes of this section, the metropolitan special 
 23.35  taxing district's advertisement must only be published in the 
 23.36  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 24.1      (b) The advertisement must be in the following form, except 
 24.2   that the notice for a school district may include references to 
 24.3   the current budget in regard to proposed property taxes. 
 24.4                              "NOTICE OF
 24.5                       PROPOSED PROPERTY TAXES
 24.6              (City/County/School District/Metropolitan
 24.7                   Special Taxing District/Regional
 24.8                    Library District) of .........
 24.9   The governing body of ........ will soon hold budget hearings 
 24.10  and vote on the property taxes for (city/county/metropolitan 
 24.11  special taxing district/regional library district services that 
 24.12  will be provided in 199_/school district services that will be 
 24.13  provided in 199_ and 199_). 
 24.14                     NOTICE OF PUBLIC HEARING:
 24.15  All concerned citizens are invited to attend a public hearing 
 24.16  and express their opinions on the proposed (city/county/school 
 24.17  district/metropolitan special taxing district/regional library 
 24.18  district) budget and property taxes, or in the case of a school 
 24.19  district, its current budget and proposed property taxes, 
 24.20  payable in the following year.  The hearing will be held on 
 24.21  (Month/Day/Year) at (Time) at (Location, Address)." 
 24.22     (c) A city with a population of 1,000 or less must 
 24.23  advertise by posted notice as defined in section 645.12, 
 24.24  subdivision 1.  The advertisement must be posted at the time 
 24.25  provided in paragraph (a).  It must be in the form required in 
 24.26  paragraph (b). 
 24.27     (d) For purposes of this subdivision, the population of a 
 24.28  city is the most recent population as determined by the state 
 24.29  demographer under section 4A.02. 
 24.30     (e) The commissioner of revenue, subject to the approval of 
 24.31  the chairs of the house and senate tax committees, shall 
 24.32  prescribe the form and format of the advertisement. 
 24.33     (f) For calendar year 1993, each taxing authority required 
 24.34  to publish an advertisement must include on the advertisement a 
 24.35  statement that information on the increases or decreases of the 
 24.36  total budget, including employee and independent contractor 
 25.1   compensation in the prior year, current year, and proposed 
 25.2   budget year will be discussed at the hearing. 
 25.3      (g) Notwithstanding paragraph (f), for 1993, the 
 25.4   commissioner of revenue shall prescribe the form, format, and 
 25.5   content of an advertisement comparing current and proposed 
 25.6   expense budgets for the metropolitan council, the metropolitan 
 25.7   airports commission, and the metropolitan mosquito control 
 25.8   commission.  The expense budget must include occupancy, 
 25.9   personnel, contractual and capital improvement expenses.  The 
 25.10  form, format, and content of the advertisement must be approved 
 25.11  by the chairs of the house and senate tax committees prior to 
 25.12  publication. 
 25.13     Sec. 11.  Minnesota Statutes 1994, section 275.065, 
 25.14  subdivision 6, is amended to read: 
 25.15     Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 25.16  Between November 29 and December 20, the governing bodies of the 
 25.17  city, county, metropolitan special taxing districts as defined 
 25.18  in subdivision 3, paragraph (i), and regional library districts 
 25.19  shall each hold a public hearing to discuss and seek public 
 25.20  comment on its final budget and property tax levy for taxes 
 25.21  payable in the following year, and the governing body of the 
 25.22  school district shall hold a public hearing to review its 
 25.23  current budget and proposed property tax levy for taxes payable 
 25.24  in the following year.  The metropolitan special taxing 
 25.25  districts shall be required to hold only a single joint public 
 25.26  hearing, the location of which will be determined by the 
 25.27  affected metropolitan agencies. 
 25.28     At a subsequent hearing, each county, school district, 
 25.29  city, and metropolitan special taxing district may amend its 
 25.30  proposed property tax levy and must adopt a final property tax 
 25.31  levy.  Each county, city, and metropolitan special taxing 
 25.32  district may also amend its proposed budget and must adopt a 
 25.33  final budget at the subsequent hearing.  A school district is 
 25.34  not required to adopt its final budget at the subsequent 
 25.35  hearing.  The subsequent hearing of a taxing authority must be 
 25.36  held on a date subsequent to the date of the taxing authority's 
 26.1   initial public hearing, or subsequent to the date of its 
 26.2   continuation hearing if a continuation hearing is held.  The 
 26.3   subsequent hearing may be held at a regularly scheduled board or 
 26.4   council meeting or at a special meeting scheduled for the 
 26.5   purposes of the subsequent hearing.  The subsequent hearing of a 
 26.6   taxing authority does not have to be coordinated by the county 
 26.7   auditor to prevent a conflict with an initial hearing, a 
 26.8   continuation hearing, or a subsequent hearing of any other 
 26.9   taxing authority.  All subsequent hearings must be held prior to 
 26.10  five working days after December 20 of the levy year. 
 26.11     The time and place of the subsequent hearing must be 
 26.12  announced at the initial public hearing or at the continuation 
 26.13  hearing. 
 26.14     The property tax levy certified under section 275.07 by a 
 26.15  city, county, metropolitan special taxing district, regional 
 26.16  library district, or school district must not exceed the 
 26.17  proposed levy determined under subdivision 1, except by an 
 26.18  amount up to the sum of the following amounts: 
 26.19     (1) the amount of a school district levy whose voters 
 26.20  approved a referendum to increase taxes under section 124.82, 
 26.21  subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
 26.22  or 136C.411, after the proposed levy was certified; 
 26.23     (2) the amount of a city or county levy approved by the 
 26.24  voters after the proposed levy was certified; 
 26.25     (3) the amount of a levy to pay principal and interest on 
 26.26  bonds issued or approved by the voters under section 475.58 
 26.27  after the proposed levy was certified; 
 26.28     (4) the amount of a levy to pay costs due to a natural 
 26.29  disaster occurring after the proposed levy was certified, if 
 26.30  that amount is approved by the commissioner of revenue under 
 26.31  subdivision 6a; 
 26.32     (5) the amount of a levy to pay tort judgments against a 
 26.33  taxing authority that become final after the proposed levy was 
 26.34  certified, if the amount is approved by the commissioner of 
 26.35  revenue under subdivision 6a; 
 26.36     (6) the amount of an increase in levy limits certified to 
 27.1   the taxing authority by the commissioner of education after the 
 27.2   proposed levy was certified; and 
 27.3      (7) the amount required under section 124.755. 
 27.4      At the hearing under this subdivision, the percentage 
 27.5   increase in property taxes proposed by the taxing authority, if 
 27.6   any, and the specific purposes for which property tax revenues 
 27.7   are being increased must be discussed.  At the hearing held in 
 27.8   1993 only, specific information for previous year, current year, 
 27.9   and proposed budget year must be presented on: 
 27.10     (i) percent of total proposed budget representing total 
 27.11  compensation cost; 
 27.12     (ii) numbers of employees by general classification, and 
 27.13  whether full or part time; 
 27.14     (iii) number and budgeted expenditures for independent 
 27.15  contractors; and 
 27.16     (iv) the effect of budget increases or decreases on the 
 27.17  proposed property tax levy. 
 27.18     During the discussion, the governing body shall hear 
 27.19  comments regarding a proposed increase and explain the reasons 
 27.20  for the proposed increase.  The public shall be allowed to speak 
 27.21  and to ask questions.  At the subsequent hearing held as 
 27.22  provided in this subdivision, the governing body, other than the 
 27.23  governing body of a school district, shall adopt its final 
 27.24  property tax levy prior to adopting its final budget. 
 27.25     If the hearing is not completed on its scheduled date, the 
 27.26  taxing authority must announce, prior to adjournment of the 
 27.27  hearing, the date, time, and place for the continuation of the 
 27.28  hearing.  The continued hearing must be held at least five 
 27.29  business days but no more than 14 business days after the 
 27.30  original hearing. 
 27.31     The hearing must be held after 5:00 p.m. if scheduled on a 
 27.32  day other than Saturday.  No hearing may be held on a Sunday.  
 27.33  The governing body of a county shall hold a hearing on the 
 27.34  second Tuesday in December each year, and may hold additional 
 27.35  hearings on other dates before December 20 if necessary for the 
 27.36  convenience of county residents.  If the county needs a 
 28.1   continuation of its hearing, the continued hearing shall be held 
 28.2   on the third Tuesday in December.  If the third Tuesday in 
 28.3   December falls on December 21, the county's continuation hearing 
 28.4   shall be held on Monday, December 20.  The county auditor shall 
 28.5   provide for the coordination of hearing dates for all cities and 
 28.6   school districts within the county. 
 28.7      By August 10, each school board and the board of the 
 28.8   regional library district shall certify to the county auditors 
 28.9   of the counties in which the school district or regional library 
 28.10  district is located the dates on which it elects to hold its 
 28.11  hearings and any continuations.  If a school board or regional 
 28.12  library district does not certify the dates by August 10, the 
 28.13  auditor will assign the hearing date.  The dates elected or 
 28.14  assigned must not conflict with the county hearing dates.  The 
 28.15  Ramsey county auditor shall coordinate with the metropolitan 
 28.16  special taxing districts as defined in subdivision 3, paragraph 
 28.17  (i), a date on which the metropolitan special taxing districts 
 28.18  will hold their joint public hearing and any continuation.  The 
 28.19  metropolitan special taxing districts shall decide on mutually 
 28.20  agreeable dates for their joint public hearing and for any 
 28.21  continuation of that hearing and certify these dates to the 
 28.22  Ramsey county auditor on or before July 25.  By August 20, the 
 28.23  county auditor shall notify the clerks of the cities within the 
 28.24  county of the dates on which school districts, metropolitan 
 28.25  special taxing districts, and regional library districts have 
 28.26  elected to hold their hearings.  At the time a city certifies 
 28.27  its proposed levy under subdivision 1 it shall certify the dates 
 28.28  on which it elects to hold its hearings and any continuations.  
 28.29  The city must not select dates that conflict with the county 
 28.30  hearing dates, metropolitan special taxing district dates, or 
 28.31  with those elected by or assigned to the school districts or 
 28.32  regional library district in which the city is located. 
 28.33     The county hearing dates and the city, metropolitan special 
 28.34  taxing district, regional library district, and school district 
 28.35  hearing dates must be designated on the notices required under 
 28.36  subdivision 3.  The continuation dates need not be stated on the 
 29.1   notices.  
 29.2      This subdivision does not apply to towns and special taxing 
 29.3   districts other than regional library districts and metropolitan 
 29.4   special taxing districts. 
 29.5      Notwithstanding the requirements of this section, the 
 29.6   employer is required to meet and negotiate over employee 
 29.7   compensation as provided for in chapter 179A.  
 29.8      Sec. 12.  Minnesota Statutes 1994, section 275.07, 
 29.9   subdivision 1, is amended to read: 
 29.10     Subdivision 1.  The taxes voted by cities, counties, school 
 29.11  districts, and special districts and approved by referendum 
 29.12  under section 275.61 shall be certified by the proper 
 29.13  authorities to the county auditor on or before five working days 
 29.14  after December 20 in each year.  A town must certify the levy 
 29.15  adopted by the town board and approved by referendum under 
 29.16  section 275.61 to the county auditor by September 15 each year.  
 29.17  If the town board modifies the levy at a special town meeting 
 29.18  after September 15, the town board must recertify its levy to 
 29.19  the county auditor on or before five working days after December 
 29.20  20.  The taxes certified shall not be reduced by the aid 
 29.21  received under sections 273.1398, subdivisions 2 and 3.  If a 
 29.22  city, town, county, school district, or special district fails 
 29.23  to certify its levy by that date, its levy shall be the amount 
 29.24  levied by it for the preceding year.  
 29.25     Sec. 13.  [275.078] [BASIC TAX RATE.] 
 29.26     Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
 29.27  terms defined in this subdivision have the meanings given them. 
 29.28     (b) "Basic property tax levy" means the product of a local 
 29.29  governmental unit's basic tax rate and its total net tax 
 29.30  capacity as defined in section 273.1398, subdivision 1. 
 29.31     (c) "Taxing authority" includes all home rule and statutory 
 29.32  cities, towns, counties, school districts, and special taxing 
 29.33  districts as defined in section 275.066.  Intermediate school 
 29.34  districts that levy a tax under chapter 124 or 136D, joint 
 29.35  powers boards established under sections 124.491 to 124.495, and 
 29.36  common school districts No. 323, Franconia, and No. 815, 
 30.1   Prinsburg, are also special taxing districts for purposes of 
 30.2   this section. 
 30.3      Subd. 2.  [BASIC TAX RATE.] The county auditor shall 
 30.4   calculate the basic property tax rate for each taxing 
 30.5   authority.  For each unique taxing jurisdiction as defined in 
 30.6   section 273.1398, subdivision 1, the county auditor shall divide 
 30.7   each taxing authority's local tax rate for taxes payable in 1995 
 30.8   by the total tax rate of all taxing authorities levying taxes 
 30.9   within the jurisdiction for that year.  The resulting quotient 
 30.10  is the taxing authority's basic property tax rate within that 
 30.11  unique taxing jurisdiction for taxes payable in 1996 and 
 30.12  thereafter. 
 30.13     Sec. 14.  Minnesota Statutes 1994, section 275.08, 
 30.14  subdivision 1a, is amended to read: 
 30.15     Subd. 1a.  For taxes payable in 1989, the county auditor 
 30.16  shall compute the gross tax capacity for each parcel according 
 30.17  to the class rates specified in section 273.13.  The gross tax 
 30.18  capacity will be the appropriate class rate multiplied by the 
 30.19  parcel's market value.  For taxes payable in 1990 and subsequent 
 30.20  years, The county auditor shall compute the net tax capacity for 
 30.21  each parcel according to the class rates specified in section 
 30.22  273.13.  The net tax capacity will be the appropriate class rate 
 30.23  multiplied by the parcel's market value.  
 30.24     Sec. 15.  Minnesota Statutes 1994, section 275.08, 
 30.25  subdivision 1b, is amended to read: 
 30.26     Subd. 1b.  The amounts certified under section 275.07 after 
 30.27  adjustment under section 275.07, subdivision 3, by an individual 
 30.28  local government unit, except for any amounts certified under 
 30.29  sections 124A.03, subdivision 2a, and 275.61, shall be divided 
 30.30  by the total net tax capacity of all taxable properties within 
 30.31  the local government unit's taxing jurisdiction.  The resulting 
 30.32  ratio, the local government's local basic tax rate, as defined 
 30.33  in section 275.078, subdivision 2, multiplied by each property's 
 30.34  net tax capacity shall be each property's basic tax for that 
 30.35  local government unit before reduction by any credits.  
 30.36     Any amount The amounts certified to the county auditor 
 31.1   under section 124A.03, subdivision 2a, or 275.61, after the 
 31.2   dates given in those sections, 275.07 by an individual local 
 31.3   government unit shall be divided by the total estimated market 
 31.4   value of all taxable properties within the taxing district.  The 
 31.5   resulting ratio, the taxing district's new referendum tax rate, 
 31.6   multiplied by each property's estimated market value shall be 
 31.7   each property's new referendum tax before reduction by any 
 31.8   credits. 
 31.9      Sec. 16.  Minnesota Statutes 1994, section 275.08, 
 31.10  subdivision 3, is amended to read: 
 31.11     Subd. 3.  [ASSISTANCE OF COUNTY AUDITOR.] A county auditor 
 31.12  who has not furnished the local tax rate rates, market value, or 
 31.13  gross net tax capacity of property in the county by January 15 
 31.14  shall, on request, furnish the county auditor of a county in the 
 31.15  overlapping district an estimate of the tax capacities values or 
 31.16  the local tax rate rates.  The auditor may request the 
 31.17  assistance of the county assessor in determining the estimate.  
 31.18     Sec. 17.  Minnesota Statutes 1994, section 275.08, 
 31.19  subdivision 4, is amended to read: 
 31.20     Subd. 4.  [SUBSEQUENT ADJUSTMENT.] After the correct local 
 31.21  tax rate, market value, or net tax capacity has been certified, 
 31.22  the amount of taxes over or under levied shall be computed and 
 31.23  notice sent to each affected taxing district.  If the estimated 
 31.24  tax levy exceeds the correct tax levy based on actual market 
 31.25  value, net tax capacity, and local tax rate, the county 
 31.26  treasurer shall remit any amount of excess collected to the 
 31.27  affected taxing district.  In the following levy year, the 
 31.28  estimating county auditor shall adjust the levy of the affected 
 31.29  taxing district to compensate for the amount of variance.  
 31.30     In the event that the estimated tax levy is less than the 
 31.31  correct tax levy based on actual net tax capacity and local tax 
 31.32  rate, the auditor shall adjust the levy of the affected taxing 
 31.33  district as provided in section 275.075.  
 31.34     Sec. 18.  Minnesota Statutes 1994, section 275.61, is 
 31.35  amended to read: 
 31.36     275.61 [REFERENDUM LEVY; MARKET VALUE.] 
 32.1      For all local governmental subdivisions other than 
 32.2   including school districts, any levy in excess of the basic 
 32.3   property tax levy as defined in section 275.078, including the 
 32.4   issuance of debt obligations payable in whole or in part from 
 32.5   property taxes, is required to be approved and approved by the 
 32.6   voters at a general or special election for taxes payable 
 32.7   in 1993 1996 and thereafter, and shall be levied against the 
 32.8   market value of all taxable property within the governmental 
 32.9   subdivision.  Any levy amount subject to the requirements of 
 32.10  this section shall be certified separately to the county auditor 
 32.11  under section 275.07. 
 32.12     The ballot shall state the maximum amount of the increased 
 32.13  levy as a percentage of market value and the amount that will be 
 32.14  raised by the new referendum tax rate in the first year it is to 
 32.15  be levied. 
 32.16     Sec. 19.  Minnesota Statutes 1994, section 290A.04, 
 32.17  subdivision 2h, is amended to read: 
 32.18     Subd. 2h.  (a) If the gross property taxes payable on a 
 32.19  homestead parcel increase more than 12 ten percent over the net 
 32.20  property taxes payable in the prior year on the same property 
 32.21  parcel that is owned and occupied by the same owner on January 2 
 32.22  of both years, and the amount of that increase is $100 or more 
 32.23  for taxes payable in 1995 and 1996, a claimant who is a 
 32.24  homeowner the property owner shall be allowed an additional 
 32.25  refund equal to 60 percent of the amount of the increase over 
 32.26  the greater of 12 ten percent of the prior year's net property 
 32.27  taxes payable or $100 for taxes payable in 1995 and 1996.  This 
 32.28  subdivision shall not apply to any increase in the gross 
 32.29  property taxes payable attributable to improvements made to 
 32.30  the homestead property or a change in the classification of the 
 32.31  property after the assessment date for the prior year's taxes. 
 32.32     The maximum refund allowed under this subdivision is $1,000.
 32.33     (b) For purposes of this subdivision, the following terms 
 32.34  have the meanings given: 
 32.35     (1) "Net property taxes payable" means property taxes 
 32.36  payable minus refund amounts for which the claimant qualifies 
 33.1   pursuant to subdivision 2 and this subdivision.  
 33.2      (2) "Gross property taxes" means net property taxes payable 
 33.3   determined without regard to the refund allowed under this 
 33.4   subdivision. 
 33.5      (c) In addition to the other proofs required by this 
 33.6   chapter, each claimant under this subdivision shall file with 
 33.7   the property tax refund return a copy of the property tax 
 33.8   statement for taxes payable in the preceding year or other 
 33.9   documents required by the commissioner. 
 33.10     (d) On or before December 1, 1995, the commissioner shall 
 33.11  estimate the cost of making the payments provided by this 
 33.12  subdivision for taxes payable in 1996.  Notwithstanding the open 
 33.13  appropriation provision of section 290A.23, if the estimated 
 33.14  total refund claims for taxes payable in 1996 exceed $5,500,000, 
 33.15  the commissioner shall first reduce the 60 percent refund rate 
 33.16  enough, but to no lower a rate than 50 percent, so that the 
 33.17  estimated total refund claims do not exceed $5,500,000.  If the 
 33.18  commissioner estimates that total claims will exceed $5,500,000 
 33.19  at a 50 percent refund rate, the commissioner shall also reduce 
 33.20  the $1,000 maximum refund amount by enough so that total 
 33.21  estimated refund claims do not exceed $5,500,000. 
 33.22     The determinations of the revised thresholds by the 
 33.23  commissioner are not rules subject to chapter 14.  
 33.24     (e) Upon request, the appropriate county official shall 
 33.25  make available the names and addresses of the property taxpayers 
 33.26  who may be eligible for the additional property tax refund under 
 33.27  this section.  The information shall be provided on a magnetic 
 33.28  computer disk.  The county may recover its costs by charging the 
 33.29  person requesting the information the reasonable cost for 
 33.30  preparing the data.  The information may not be used for any 
 33.31  purpose other than for notifying the homeowner property owner of 
 33.32  potential eligibility and assisting the homeowner property 
 33.33  owner, without charge, in preparing a refund claim. 
 33.34     Sec. 20.  [REPEALER.] 
 33.35     Minnesota Statutes 1994, sections 273.13, subdivision 32; 
 33.36  275.08, subdivision 1c; and 290A.04, subdivision 2i; Laws 1989, 
 34.1   First Special Session chapter 1, article 7, section 9, are 
 34.2   repealed. 
 34.3      Sec. 21.  [EFFECTIVE DATE.] 
 34.4      Sections 1 to 20 are effective for taxes levied in 1995, 
 34.5   payable in 1996, and thereafter, and aids payable in 1996, and 
 34.6   thereafter.