SF 1644

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; providing property tax reform; 
  1.3             modifying class rates; indexing certain property tax 
  1.4             classes; reforming the property tax treatment of 
  1.5             low-income housing; increasing state's general 
  1.6             education aid; modifying the property tax refund 
  1.7             program; increasing homeowner property tax refunds; 
  1.8             changing the proposed truth-in-taxation notices and 
  1.9             property tax statements; imposing levy limits on 
  1.10            counties and cities; appropriating money; amending 
  1.11            Minnesota Statutes 1996, sections 124.239, subdivision 
  1.12            5, and by adding subdivisions; 124.2716, subdivision 
  1.13            3; 124.2727, subdivision 6b; 124.83, subdivision 4; 
  1.14            124.95, subdivisions 1 and 4; 124A.23, subdivision 1; 
  1.15            273.124, by adding a subdivision; 273.13, subdivisions 
  1.16            22, 24, 25, 31, and by adding a subdivision; 275.065, 
  1.17            subdivisions 1, 3, 5a, and by adding a subdivision; 
  1.18            275.16; 276.04, subdivision 2; 290A.03, subdivisions 
  1.19            11 and 13; 290A.04, subdivisions 2 and 6; 290A.19; and 
  1.20            469.040, subdivision 3, and by adding a subdivision; 
  1.21            proposing coding for new law in Minnesota Statutes, 
  1.22            chapters 124; 273; 275; and 462A; repealing Minnesota 
  1.23            Statutes 1996, sections 124.91, subdivisions 2 and 7; 
  1.24            270B.12, subdivision 11; 273.13, subdivision 32; 
  1.25            273.1317; 273.1318; 273.1398, subdivision 4; 276.012; 
  1.26            290A.03, subdivisions 12a and 14; 290A.055; and 
  1.27            290A.26; Laws 1995, chapter 264, article 4, as amended.
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1 
  1.30                            PROPERTY TAX 
  1.31                         CLASS RATE REFORM 
  1.32     Section 1.  Minnesota Statutes 1996, section 273.124, is 
  1.33  amended by adding a subdivision to read: 
  1.34     Subd. 19.  [LEASE-PURCHASE PROGRAM.] Qualifying buildings 
  1.35  and appurtenances, together with the land on which they are 
  1.36  located, are classified as homesteads, if the following 
  2.1   qualifications are met: 
  2.2      (1) the property is leased for up to a five-year period by 
  2.3   the occupant under a lease-purchase program administered by the 
  2.4   Minnesota housing finance agency or a housing and redevelopment 
  2.5   authority under sections 469.001 to 469.047; 
  2.6      (2) the occupant's income is no greater than 80 percent of 
  2.7   the county or area median income, adjusted for family size; 
  2.8      (3) the building consists of one or two dwelling units; 
  2.9      (4) the lease agreement provides that part of the lease 
  2.10  payment is escrowed as a nonrefundable down payment on the 
  2.11  housing; 
  2.12     (5) the administering agency verifies the occupant's income 
  2.13  eligibility and certifies to the county assessor that the 
  2.14  occupant meets the income standards; and 
  2.15     (6) the property owner applies to the county assessor by 
  2.16  May 30 of each year. 
  2.17     For purposes of this subdivision, "qualifying buildings and 
  2.18  appurtenances" means a one- or two-unit residential building 
  2.19  which was unoccupied, abandoned, and boarded for at least six 
  2.20  months.  
  2.21     Sec. 2.  [273.126] [QUALIFYING LOW-INCOME RENTAL HOUSING.] 
  2.22     Subdivision 1.  [QUALIFYING RULES.] The market value of a 
  2.23  rental housing unit qualifies for assessment under class 4d if: 
  2.24     (1) it is occupied by individuals meeting the income limits 
  2.25  under subdivision 2; 
  2.26     (2) a rent restriction agreement under subdivision 3 
  2.27  applies; 
  2.28     (3) the unit meets the minimum housing quality standards 
  2.29  under subdivision 4; and 
  2.30     (4) the Minnesota housing finance agency certifies to the 
  2.31  local assessor that the unit qualifies. 
  2.32     Subd. 2.  [INCOME LIMITS.] (a) In order to qualify under 
  2.33  class 4d, a unit must be occupied by an individual or 
  2.34  individuals whose income is at or below 60 percent of the median 
  2.35  area gross income.  If the resident's income met the requirement 
  2.36  when the resident first occupied the unit, the income of the 
  3.1   resident continues to qualify.  If an individual first occupied 
  3.2   a unit before January 1, 1998, the individual's income for 
  3.3   purposes of the preceding sentence is the income for calendar 
  3.4   year 1996. 
  3.5      (b) For purposes of this section, "median area gross income"
  3.6   means the greater of (1) the median gross income for the area 
  3.7   determined under section 42 of the Internal Revenue Code of 
  3.8   1986, as amended through December 31, 1996, or (2) the median 
  3.9   gross income for the state. 
  3.10     (c) The median gross income must be adjusted for family 
  3.11  size. 
  3.12     (d) Vacant units qualify as meeting the requirements of 
  3.13  this subdivision in the same proportion that total units in the 
  3.14  building are subject to rent restriction agreements under 
  3.15  subdivision 3 and meet minimum housing standards under 
  3.16  subdivision 4.  This paragraph applies only to the extent that 
  3.17  units subject to a rent restriction agreement and meeting the 
  3.18  minimum housing quality standards are vacant. 
  3.19     (e) The owner or manager of the property may comply with 
  3.20  this subdivision by obtaining written statements from the 
  3.21  residents that their incomes are at or below the limit.  
  3.22     Subd. 3.  [RENT RESTRICTIONS.] (a) In order to qualify 
  3.23  under class 4d, a unit must be subject to a rent restriction 
  3.24  agreement with the housing finance agency for a period of at 
  3.25  least five years.  The agreement must be in effect and apply to 
  3.26  the rents to be charged for the year in which the property taxes 
  3.27  are payable.  The agreement must provide that the restrictions 
  3.28  apply to each year of the period, regardless of whether the unit 
  3.29  is occupied by an individual with qualifying income or whether 
  3.30  class 4d applies.  The rent restriction agreement must provide 
  3.31  for rents for the unit to be no higher than 30 percent of 60 
  3.32  percent of the median gross income.  The definition of median 
  3.33  gross income specified in this section applies.  "Rent" means 
  3.34  "gross rent" as defined in section 42(g)(2)(B) of the Internal 
  3.35  Revenue Code of 1986, as amended through December 31, 1996.  
  3.36     (b) The rent restriction agreement runs with the land and 
  4.1   binds any successor to title to the property, without regard to 
  4.2   whether the successor had actual notice or knowledge of the 
  4.3   agreement.  The owner must promptly record the agreement in the 
  4.4   office of the county recorder or must file it in the office of 
  4.5   the registrar of titles, in the county where the property is 
  4.6   located.  If the agreement is not recorded, class 4d does not 
  4.7   apply to the property. 
  4.8      Subd. 4.  [MINIMUM HOUSING STANDARDS.] In order to qualify 
  4.9   under class 4d, a unit must be certified by the housing finance 
  4.10  agency to meet the minimum housing standards established under 
  4.11  section 462A.071. 
  4.12     Subd. 5.  [MONITORING RENT LEVELS.] The housing finance 
  4.13  agency is directed to monitor changes in rent levels and the use 
  4.14  of section 8 certificates in units qualifying under class 4d. 
  4.15     Subd. 6.  [ADDITIONAL TAXES.] (a) Notwithstanding the 
  4.16  provisions of section 273.01, 274.01, or any other law, if the 
  4.17  Minnesota housing finance agency notifies the assessor that the 
  4.18  provisions of this section have not been met for any period 
  4.19  during which a unit was classified under class 4d, an additional 
  4.20  tax is imposed.  The additional tax equals, as certified by the 
  4.21  housing finance agency, either (1) a dollar amount, or (2) the 
  4.22  increased tax which would have been imposed if the property had 
  4.23  not been classified under class 4d, and the tax actually 
  4.24  imposed, during the period of noncompliance. 
  4.25     (b) The additional tax must be extended against the 
  4.26  property on the tax list for the current year.  No interest or 
  4.27  penalties may be levied on additional taxes if timely paid.  The 
  4.28  tax imposed by this subdivision is a lien upon the property 
  4.29  assessed to the same extent and for the same duration as other 
  4.30  taxes imposed on the property. 
  4.31     Sec. 3.  Minnesota Statutes 1996, section 273.13, 
  4.32  subdivision 22, is amended to read: 
  4.33     Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
  4.34  23, real estate which is (i) residential and used for homestead 
  4.35  purposes; and (ii) other residential real estate containing one 
  4.36  unit, other than seasonal residential, and recreational; and 
  5.1   (iii) a dwelling, garage, and surrounding one acre of property 
  5.2   on a nonhomestead farm classified under subdivision 23, 
  5.3   paragraph (b), is class 1.  The market value of class 1a 
  5.4   property must be determined based upon the value of the house, 
  5.5   garage, and land.  
  5.6      For taxes payable in 1998 and thereafter, the first 
  5.7   $72,000 $74,000 of market value of class 1a property has a net 
  5.8   class rate of one percent of its market value and a gross class 
  5.9   rate of 2.17 percent of its market value.  For taxes payable in 
  5.10  1992,; and the market value of class 1a property that 
  5.11  exceeds $72,000 but does not exceed $115,000 $74,000 has a class 
  5.12  rate of two percent of its market value; and the market value of 
  5.13  class 1a property that exceeds $115,000 has a class rate of 2.5 
  5.14  percent of its market value.  For taxes payable in 1993 and 
  5.15  thereafter, the market value of class 1a property that exceeds 
  5.16  $72,000 has a class rate of two percent.  The market value 
  5.17  breakpoint of class 1a shall be indexed for inflation as 
  5.18  provided in section 7, beginning for taxes payable in 1999 and 
  5.19  thereafter. 
  5.20     (b) Class 1b property includes homestead real estate or 
  5.21  homestead manufactured homes used for the purposes of a 
  5.22  homestead by 
  5.23     (1) any blind person, or the blind person and the blind 
  5.24  person's spouse; or 
  5.25     (2) any person, hereinafter referred to as "veteran," who: 
  5.26     (i) served in the active military or naval service of the 
  5.27  United States; and 
  5.28     (ii) is entitled to compensation under the laws and 
  5.29  regulations of the United States for permanent and total 
  5.30  service-connected disability due to the loss, or loss of use, by 
  5.31  reason of amputation, ankylosis, progressive muscular 
  5.32  dystrophies, or paralysis, of both lower extremities, such as to 
  5.33  preclude motion without the aid of braces, crutches, canes, or a 
  5.34  wheelchair; and 
  5.35     (iii) has acquired a special housing unit with special 
  5.36  fixtures or movable facilities made necessary by the nature of 
  6.1   the veteran's disability, or the surviving spouse of the 
  6.2   deceased veteran for as long as the surviving spouse retains the 
  6.3   special housing unit as a homestead; or 
  6.4      (3) any person who: 
  6.5      (i) is permanently and totally disabled and 
  6.6      (ii) receives 90 percent or more of total income from 
  6.7      (A) aid from any state as a result of that disability; or 
  6.8      (B) supplemental security income for the disabled; or 
  6.9      (C) workers' compensation based on a finding of total and 
  6.10  permanent disability; or 
  6.11     (D) social security disability, including the amount of a 
  6.12  disability insurance benefit which is converted to an old age 
  6.13  insurance benefit and any subsequent cost of living increases; 
  6.14  or 
  6.15     (E) aid under the federal Railroad Retirement Act of 1937, 
  6.16  United States Code Annotated, title 45, section 228b(a)5; or 
  6.17     (F) a pension from any local government retirement fund 
  6.18  located in the state of Minnesota as a result of that 
  6.19  disability; or 
  6.20     (G) pension, annuity, or other income paid as a result of 
  6.21  that disability from a private pension or disability plan, 
  6.22  including employer, employee, union, and insurance plans and 
  6.23     (iii) has household income as defined in section 290A.03, 
  6.24  subdivision 5, of $50,000 or less; or 
  6.25     (4) any person who is permanently and totally disabled and 
  6.26  whose household income as defined in section 290A.03, 
  6.27  subdivision 5, is 150 percent or less of the federal poverty 
  6.28  level. 
  6.29     Property is classified and assessed under clause (4) only 
  6.30  if the government agency or income-providing source certifies, 
  6.31  upon the request of the homestead occupant, that the homestead 
  6.32  occupant satisfies the disability requirements of this paragraph.
  6.33     Property is classified and assessed pursuant to clause (1) 
  6.34  only if the commissioner of economic security certifies to the 
  6.35  assessor that the homestead occupant satisfies the requirements 
  6.36  of this paragraph.  
  7.1      Permanently and totally disabled for the purpose of this 
  7.2   subdivision means a condition which is permanent in nature and 
  7.3   totally incapacitates the person from working at an occupation 
  7.4   which brings the person an income.  The first $32,000 market 
  7.5   value of class 1b property has a net class rate of .45 percent 
  7.6   of its market value and a gross class rate of .87 percent of its 
  7.7   market value.  The remaining market value of class 1b property 
  7.8   has a gross or net class rate using the rates for class 1 or 
  7.9   class 2a property, whichever is appropriate, of similar market 
  7.10  value.  
  7.11     (c) Class 1c property is commercial use real property that 
  7.12  abuts a lakeshore line and is devoted to temporary and seasonal 
  7.13  residential occupancy for recreational purposes but not devoted 
  7.14  to commercial purposes for more than 250 days in the year 
  7.15  preceding the year of assessment, and that includes a portion 
  7.16  used as a homestead by the owner, which includes a dwelling 
  7.17  occupied as a homestead by a shareholder of a corporation that 
  7.18  owns the resort or a partner in a partnership that owns the 
  7.19  resort, even if the title to the homestead is held by the 
  7.20  corporation or partnership.  For purposes of this clause, 
  7.21  property is devoted to a commercial purpose on a specific day if 
  7.22  any portion of the property, excluding the portion used 
  7.23  exclusively as a homestead, is used for residential occupancy 
  7.24  and a fee is charged for residential occupancy.  Class 1c 
  7.25  property has a class rate of one percent of total market value 
  7.26  for taxes payable in 1993 and thereafter with the following 
  7.27  limitation:  the area of the property must not exceed 100 feet 
  7.28  of lakeshore footage for each cabin or campsite located on the 
  7.29  property up to a total of 800 feet and 500 feet in depth, 
  7.30  measured away from the lakeshore.  
  7.31     Sec. 4.  Minnesota Statutes 1996, section 273.13, 
  7.32  subdivision 24, is amended to read: 
  7.33     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  7.34  property and utility real and personal property, except class 5 
  7.35  property as identified in subdivision 31, clause (1), is class 
  7.36  3a.  It has a class rate of three 2.5 percent of the first 
  8.1   $100,000 $200,000 of market value for taxes payable in 1993 1998 
  8.2   and thereafter, and 5.06 four percent of the market value over 
  8.3   $100,000 $200,000 for taxes payable in 1998 and thereafter.  In 
  8.4   the case of state-assessed commercial, industrial, and utility 
  8.5   property owned by one person or entity, only one parcel has a 
  8.6   reduced class rate on the first $100,000 $200,000 of market 
  8.7   value.  In the case of other commercial, industrial, and utility 
  8.8   property owned by one person or entity, only one parcel in each 
  8.9   county has a reduced class rate on the first $100,000 $200,000 
  8.10  of market value, except that: 
  8.11     (1) if the market value of the parcel is less than 
  8.12  $100,000 $200,000, and additional parcels are owned by the same 
  8.13  person or entity in the same city or town within that county, 
  8.14  the reduced class rate shall be applied up to a combined total 
  8.15  market value of $100,000 $200,000 for all parcels owned by the 
  8.16  same person or entity in the same city or town within the 
  8.17  county; 
  8.18     (2) in the case of grain, fertilizer, and feed elevator 
  8.19  facilities, as defined in section 18C.305, subdivision 1, or 
  8.20  232.21, subdivision 8, the limitation to one parcel per owner 
  8.21  per county for the reduced class rate shall not apply, but there 
  8.22  shall be a limit of $100,000 $200,000 of preferential value per 
  8.23  site of contiguous parcels owned by the same person or entity.  
  8.24  Only the value of the elevator portion of each parcel shall 
  8.25  qualify for treatment under this clause.  For purposes of this 
  8.26  subdivision, contiguous parcels include parcels separated only 
  8.27  by a railroad or public road right-of-way; and 
  8.28     (3) in the case of property owned by a nonprofit charitable 
  8.29  organization that qualifies for tax exemption under section 
  8.30  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  8.31  through December 31, 1993, if the property is used as a business 
  8.32  incubator, the limitation to one parcel per owner per county for 
  8.33  the reduced class rate shall not apply, provided that the 
  8.34  reduced rate applies only to the first $100,000 $200,000 of 
  8.35  value per parcel owned by the organization.  As used in this 
  8.36  clause, a "business incubator" is a facility used for the 
  9.1   development of nonretail businesses, offering access to 
  9.2   equipment, space, services, and advice to the tenant businesses, 
  9.3   for the purpose of encouraging economic development, 
  9.4   diversification, and job creation in the area served by the 
  9.5   organization. 
  9.6      To receive the reduced class rate on additional parcels 
  9.7   under clause (1), (2), or (3), the taxpayer must notify the 
  9.8   county assessor that the taxpayer owns more than one parcel that 
  9.9   qualifies under clause (1), (2), or (3). 
  9.10     (b) Employment property defined in section 469.166, during 
  9.11  the period provided in section 469.170, shall constitute class 
  9.12  3b and has a class rate of 2.3 percent of the first $50,000 of 
  9.13  market value and 3.6 percent of the remainder, except that for 
  9.14  employment property located in a border city enterprise zone 
  9.15  designated pursuant to section 469.168, subdivision 4, paragraph 
  9.16  (c), the class rate of the first $100,000 of market value and 
  9.17  the class rate of the remainder is determined under paragraph 
  9.18  (a), unless the governing body of the city designated as an 
  9.19  enterprise zone determines that a specific parcel shall be 
  9.20  assessed pursuant to the first clause of this sentence.  The 
  9.21  governing body may provide for assessment under the first clause 
  9.22  of the preceding sentence only for property which is located in 
  9.23  an area which has been designated by the governing body for the 
  9.24  receipt of tax reductions authorized by section 469.171, 
  9.25  subdivision 1. 
  9.26     (c) Structures which are (i) located on property classified 
  9.27  as class 3a, (ii) constructed under an initial building permit 
  9.28  issued after January 2, 1996, (iii) located in a transit zone as 
  9.29  defined under section 473.3915, subdivision 3, (iv) located 
  9.30  within the boundaries of a school district, and (v) not 
  9.31  primarily used for retail or transient lodging purposes, shall 
  9.32  have a class rate of four percent on that portion of the market 
  9.33  value in excess of $100,000 and any market value under $100,000 
  9.34  that does not qualify for the three percent class rate under 
  9.35  paragraph (a).  As used in item (v), a structure is primarily 
  9.36  used for retail or transient lodging purposes if over 50 percent 
 10.1   of its square footage is used for those purposes.  The four 
 10.2   percent rate shall also apply to improvements to existing 
 10.3   structures that meet the requirements of items (i) to (v) if the 
 10.4   improvements are constructed under an initial building permit 
 10.5   issued after January 2, 1996, even if the remainder of the 
 10.6   structure was constructed prior to January 2, 1996.  For the 
 10.7   purposes of this paragraph, a structure shall be considered to 
 10.8   be located in a transit zone if any portion of the structure 
 10.9   lies within the zone.  If any property once eligible for 
 10.10  treatment under this paragraph ceases to remain eligible due to 
 10.11  revisions in transit zone boundaries, the property shall 
 10.12  continue to receive treatment under this paragraph for a period 
 10.13  of three years. 
 10.14     Sec. 5.  Minnesota Statutes 1996, section 273.13, 
 10.15  subdivision 25, is amended to read: 
 10.16     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
 10.17  estate containing four or more units and used or held for use by 
 10.18  the owner or by the tenants or lessees of the owner as a 
 10.19  residence for rental periods of 30 days or more.  Class 4a also 
 10.20  includes hospitals licensed under sections 144.50 to 144.56, 
 10.21  other than hospitals exempt under section 272.02, and contiguous 
 10.22  property used for hospital purposes, without regard to whether 
 10.23  the property has been platted or subdivided.  Class 4a property 
 10.24  in a city with a population of 5,000 or less, that is (1) 
 10.25  located outside of the metropolitan area, as defined in section 
 10.26  473.121, subdivision 2, or outside any county contiguous to the 
 10.27  metropolitan area, and (2) whose city boundary is at least 15 
 10.28  miles from the boundary of any city with a population greater 
 10.29  than 5,000 has a class rate of 2.3 percent of market value for 
 10.30  taxes payable in 1996 and thereafter.  All other Class 4a 
 10.31  property has a class rate of 3.4 2.5 percent of market value for 
 10.32  taxes payable in 1996 1998 and thereafter.  For purposes of this 
 10.33  paragraph, population has the same meaning given in section 
 10.34  477A.011, subdivision 3. 
 10.35     (b) Class 4b includes: 
 10.36     (1) residential real estate containing less than four two 
 11.1   or three units, other than seasonal residential, and 
 11.2   recreational; 
 11.3      (2) manufactured homes not classified under any other 
 11.4   provision; 
 11.5      (3) a dwelling, garage, and surrounding one acre of 
 11.6   property on a nonhomestead farm classified under subdivision 23, 
 11.7   paragraph (b) unimproved property that is classified residential 
 11.8   as determined under section 273.13, subdivision 33.  
 11.9      Class 4b property has a class rate of 2.8 percent of market 
 11.10  value for taxes payable in 1992, 2.5 percent of market value for 
 11.11  taxes payable in 1993, and 2.3 2.0 percent of market value for 
 11.12  taxes payable in 1994 1998, and thereafter. 
 11.13     (c) Class 4c property includes: 
 11.14     (1) a structure that is:  
 11.15     (i) situated on real property that is used for housing for 
 11.16  the elderly or for low- and moderate-income families as defined 
 11.17  in Title II, as amended through December 31, 1990, of the 
 11.18  National Housing Act or the Minnesota housing finance agency law 
 11.19  of 1971, as amended, or rules promulgated by the agency and 
 11.20  financed by a direct federal loan or federally insured loan made 
 11.21  pursuant to Title II of the Act; or 
 11.22     (ii) situated on real property that is used for housing the 
 11.23  elderly or for low- and moderate-income families as defined by 
 11.24  the Minnesota housing finance agency law of 1971, as amended, or 
 11.25  rules adopted by the agency pursuant thereto and financed by a 
 11.26  loan made by the Minnesota housing finance agency pursuant to 
 11.27  the provisions of the act.  
 11.28     This clause applies only to property of a nonprofit or 
 11.29  limited dividend entity.  Property is classified as class 4c 
 11.30  under this clause for 15 years from the date of the completion 
 11.31  of the original construction or substantial rehabilitation, or 
 11.32  for the original term of the loan.  
 11.33     (2) a structure that is: 
 11.34     (i) situated upon real property that is used for housing 
 11.35  lower income families or elderly or handicapped persons, as 
 11.36  defined in section 8 of the United States Housing Act of 1937, 
 12.1   as amended; and 
 12.2      (ii) owned by an entity which has entered into a housing 
 12.3   assistance payments contract under section 8 which provides 
 12.4   assistance for 100 percent of the dwelling units in the 
 12.5   structure, other than dwelling units intended for management or 
 12.6   maintenance personnel.  Property is classified as class 4c under 
 12.7   this clause for the term of the housing assistance payments 
 12.8   contract, including all renewals, or for the term of its 
 12.9   permanent financing, whichever is shorter; and 
 12.10     (3) a qualified low-income building as defined in section 
 12.11  42(c)(2) of the Internal Revenue Code of 1986, as amended 
 12.12  through December 31, 1990, that (i) receives a low-income 
 12.13  housing credit under section 42 of the Internal Revenue Code of 
 12.14  1986, as amended through December 31, 1990; or (ii) meets the 
 12.15  requirements of that section and receives public financing, 
 12.16  except financing provided under sections 469.174 to 469.179, 
 12.17  which contains terms restricting the rents; or (iii) meets the 
 12.18  requirements of section 273.1317.  Classification pursuant to 
 12.19  this clause is limited to a term of 15 years.  The public 
 12.20  financing received must be from at least one of the following 
 12.21  sources:  government issued bonds exempt from taxes under 
 12.22  section 103 of the Internal Revenue Code of 1986, as amended 
 12.23  through December 31, 1993, the proceeds of which are used for 
 12.24  the acquisition or rehabilitation of the building; programs 
 12.25  under section 221(d)(3), 202, or 236, of Title II of the 
 12.26  National Housing Act; rental housing program funds under Section 
 12.27  8 of the United States Housing Act of 1937 or the market rate 
 12.28  family graduated payment mortgage program funds administered by 
 12.29  the Minnesota housing finance agency that are used for the 
 12.30  acquisition or rehabilitation of the building; public financing 
 12.31  provided by a local government used for the acquisition or 
 12.32  rehabilitation of the building, including grants or loans from 
 12.33  federal community development block grants, HOME block grants, 
 12.34  or residential rental bonds issued under chapter 474A; or other 
 12.35  rental housing program funds provided by the Minnesota housing 
 12.36  finance agency for the acquisition or rehabilitation of the 
 13.1   building. 
 13.2      For all properties described in clauses (1), (2), and (3) 
 13.3   and in paragraph (d), the market value determined by the 
 13.4   assessor must be based on the normal approach to value using 
 13.5   normal unrestricted rents unless the owner of the property 
 13.6   elects to have the property assessed under Laws 1991, chapter 
 13.7   291, article 1, section 55.  If the owner of the property elects 
 13.8   to have the market value determined on the basis of the actual 
 13.9   restricted rents, as provided in Laws 1991, chapter 291, article 
 13.10  1, section 55, the property will be assessed at the rate 
 13.11  provided for class 4a or class 4b property, as appropriate.  
 13.12  Properties described in clauses (1)(ii), (3), and (4) may apply 
 13.13  to the assessor for valuation under Laws 1991, chapter 291, 
 13.14  article 1, section 55.  The land on which these structures are 
 13.15  situated has the class rate given in paragraph (b) if the 
 13.16  structure contains fewer than four units, and the class rate 
 13.17  given in paragraph (a) if the structure contains four or more 
 13.18  units.  This clause applies only to the property of a nonprofit 
 13.19  or limited dividend entity.  
 13.20     (4) a parcel of land, not to exceed one acre, and its 
 13.21  improvements or a parcel of unimproved land, not to exceed one 
 13.22  acre, if it is owned by a neighborhood real estate trust and at 
 13.23  least 60 percent of the dwelling units, if any, on all land 
 13.24  owned by the trust are leased to or occupied by lower income 
 13.25  families or individuals.  This clause does not apply to any 
 13.26  portion of the land or improvements used for nonresidential 
 13.27  purposes.  For purposes of this clause, a lower income family is 
 13.28  a family with an income that does not exceed 65 percent of the 
 13.29  median family income for the area, and a lower income individual 
 13.30  is an individual whose income does not exceed 65 percent of the 
 13.31  median individual income for the area, as determined by the 
 13.32  United States Secretary of Housing and Urban Development.  For 
 13.33  purposes of this clause, "neighborhood real estate trust" means 
 13.34  an entity which is certified by the governing body of the 
 13.35  municipality in which it is located to have the following 
 13.36  characteristics: 
 14.1      (a) it is a nonprofit corporation organized under chapter 
 14.2   317A; 
 14.3      (b) it has as its principal purpose providing housing for 
 14.4   lower income families in a specific geographic community 
 14.5   designated in its articles or bylaws; 
 14.6      (c) it limits membership with voting rights to residents of 
 14.7   the designated community; and 
 14.8      (d) it has a board of directors consisting of at least 
 14.9   seven directors, 60 percent of whom are members with voting 
 14.10  rights and, to the extent feasible, 25 percent of whom are 
 14.11  elected by resident members of buildings owned by the trust; and 
 14.12     (5) except as provided in subdivision 22, paragraph (c), 
 14.13  real property devoted to temporary and seasonal residential 
 14.14  occupancy for recreation purposes, including real property 
 14.15  devoted to temporary and seasonal residential occupancy for 
 14.16  recreation purposes and not devoted to commercial purposes for 
 14.17  more than 250 days in the year preceding the year of 
 14.18  assessment.  For purposes of this clause, property is devoted to 
 14.19  a commercial purpose on a specific day if any portion of the 
 14.20  property is used for residential occupancy, and a fee is charged 
 14.21  for residential occupancy.  Class 4c also includes commercial 
 14.22  use real property used exclusively for recreational purposes in 
 14.23  conjunction with class 4c property devoted to temporary and 
 14.24  seasonal residential occupancy for recreational purposes, up to 
 14.25  a total of two acres, provided the property is not devoted to 
 14.26  commercial recreational use for more than 250 days in the year 
 14.27  preceding the year of assessment and is located within two miles 
 14.28  of the class 4c property with which it is used.  Class 4c 
 14.29  property classified in this clause also includes the remainder 
 14.30  of class 1c resorts.  Owners of real property devoted to 
 14.31  temporary and seasonal residential occupancy for recreation 
 14.32  purposes and all or a portion of which was devoted to commercial 
 14.33  purposes for not more than 250 days in the year preceding the 
 14.34  year of assessment desiring classification as class 1c or 4c, 
 14.35  must submit a declaration to the assessor designating the cabins 
 14.36  or units occupied for 250 days or less in the year preceding the 
 15.1   year of assessment by January 15 of the assessment year.  Those 
 15.2   cabins or units and a proportionate share of the land on which 
 15.3   they are located will be designated class 1c or 4c as otherwise 
 15.4   provided.  The remainder of the cabins or units and a 
 15.5   proportionate share of the land on which they are located will 
 15.6   be designated as class 3a.  The first $100,000 of the market 
 15.7   value of the remainder of the cabins or units and a 
 15.8   proportionate share of the land on which they are located shall 
 15.9   have a class rate of three percent.  The owner of property 
 15.10  desiring designation as class 1c or 4c property must provide 
 15.11  guest registers or other records demonstrating that the units 
 15.12  for which class 1c or 4c designation is sought were not occupied 
 15.13  for more than 250 days in the year preceding the assessment if 
 15.14  so requested.  The portion of a property operated as a (1) 
 15.15  restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
 15.16  facility operated on a commercial basis not directly related to 
 15.17  temporary and seasonal residential occupancy for recreation 
 15.18  purposes shall not qualify for class 1c or 4c; 
 15.19     (6) (2) real property up to a maximum of one acre of land 
 15.20  owned by a nonprofit community service oriented organization; 
 15.21  provided that the property is not used for a revenue-producing 
 15.22  activity for more than six days in the calendar year preceding 
 15.23  the year of assessment and the property is not used for 
 15.24  residential purposes on either a temporary or permanent basis.  
 15.25  For purposes of this clause, a "nonprofit community service 
 15.26  oriented organization" means any corporation, society, 
 15.27  association, foundation, or institution organized and operated 
 15.28  exclusively for charitable, religious, fraternal, civic, or 
 15.29  educational purposes, and which is exempt from federal income 
 15.30  taxation pursuant to section 501(c)(3), (10), or (19) of the 
 15.31  Internal Revenue Code of 1986, as amended through December 31, 
 15.32  1990.  For purposes of this clause, "revenue-producing 
 15.33  activities" shall include but not be limited to property or that 
 15.34  portion of the property that is used as an on-sale intoxicating 
 15.35  liquor or 3.2 percent malt liquor establishment licensed under 
 15.36  chapter 340A, a restaurant open to the public, bowling alley, a 
 16.1   retail store, gambling conducted by organizations licensed under 
 16.2   chapter 349, an insurance business, or office or other space 
 16.3   leased or rented to a lessee who conducts a for-profit 
 16.4   enterprise on the premises.  Any portion of the property which 
 16.5   is used for revenue-producing activities for more than six days 
 16.6   in the calendar year preceding the year of assessment shall be 
 16.7   assessed as class 3a.  The use of the property for social events 
 16.8   open exclusively to members and their guests for periods of less 
 16.9   than 24 hours, when an admission is not charged nor any revenues 
 16.10  are received by the organization shall not be considered a 
 16.11  revenue-producing activity; 
 16.12     (7) (3) post-secondary student housing of not more than one 
 16.13  acre of land that is owned by a nonprofit corporation organized 
 16.14  under chapter 317A and is used exclusively by a student 
 16.15  cooperative, sorority, or fraternity for on-campus housing or 
 16.16  housing located within two miles of the border of a college 
 16.17  campus; and 
 16.18     (8) (4) manufactured home parks as defined in section 
 16.19  327.14, subdivision 3. 
 16.20     Class 4c property has a class rate of 2.3 2.0 percent of 
 16.21  market value, except that (i) for each parcel of seasonal 
 16.22  residential recreational property not used for commercial 
 16.23  purposes under clause (5) (1) the first $72,000 $74,000 of 
 16.24  market value on each parcel has a class rate of 1.75 percent for 
 16.25  taxes payable in 1997 and 1.5 percent for taxes payable in 1998 
 16.26  and thereafter, and the market value of each parcel that 
 16.27  exceeds $72,000 $74,000 has a class rate of 2.5 percent, and 
 16.28  (ii) manufactured home parks assessed under clause (8) have a 
 16.29  class rate of two percent for taxes payable in 1996, and 
 16.30  thereafter.  The market value breakpoint for seasonal 
 16.31  residential recreational property shall be indexed for inflation 
 16.32  as provided under section 7, beginning for taxes payable in 1999 
 16.33  and thereafter.  
 16.34     (d) Class 4d property includes: 
 16.35     (1) a structure that is: 
 16.36     (i) situated on real property that is used for housing for 
 17.1   the elderly or for low and moderate income families as defined 
 17.2   by the Farmers Home Administration; 
 17.3      (ii) located in a municipality of less than 10,000 
 17.4   population; and 
 17.5      (iii) financed by a direct loan or insured loan from the 
 17.6   Farmers Home Administration.  Property is classified under this 
 17.7   clause for 15 years from the date of the completion of the 
 17.8   original construction or for the original term of the loan.  
 17.9      The class rates in paragraph (c), clauses (1), (2), and (3) 
 17.10  and this clause apply to the properties described in them, only 
 17.11  in proportion to occupancy of the structure by elderly or 
 17.12  handicapped persons or low and moderate income families as 
 17.13  defined in the applicable laws unless construction of the 
 17.14  structure had been commenced prior to January 1, 1984; or the 
 17.15  project had been approved by the governing body of the 
 17.16  municipality in which it is located prior to June 30, 1983; or 
 17.17  financing of the project had been approved by a federal or state 
 17.18  agency prior to June 30, 1983.  For those properties, 4c or 4d 
 17.19  classification is available only for those units meeting the 
 17.20  requirements of section 273.1318. 
 17.21     Classification under this clause is only available to 
 17.22  property of a nonprofit or limited dividend entity. 
 17.23     In the case of a structure financed or refinanced under any 
 17.24  federal or state mortgage insurance or direct loan program 
 17.25  exclusively for housing for the elderly or for housing for the 
 17.26  handicapped, a unit shall be considered occupied so long as it 
 17.27  is actually occupied by an elderly or handicapped person or, if 
 17.28  vacant, is held for rental to an elderly or handicapped person. 
 17.29     (2) For taxes payable in 1992, 1993, and 1994, only, 
 17.30  buildings and appurtenances, together with the land upon which 
 17.31  they are located, leased by the occupant under the community 
 17.32  lending model lease-purchase mortgage loan program administered 
 17.33  by the Federal National Mortgage Association, provided the 
 17.34  occupant's income is no greater than 60 percent of the county or 
 17.35  area median income, adjusted for family size and the building 
 17.36  consists of existing single family or duplex housing.  The lease 
 18.1   agreement must provide for a portion of the lease payment to be 
 18.2   escrowed as a nonrefundable down payment on the housing.  To 
 18.3   qualify under this clause, the taxpayer must apply to the county 
 18.4   assessor by May 30 of each year.  The application must be 
 18.5   accompanied by an affidavit or other proof required by the 
 18.6   assessor to determine qualification under this clause. 
 18.7      (3) Qualifying buildings and appurtenances, together with 
 18.8   the land upon which they are located, leased for a period of up 
 18.9   to five years by the occupant under a lease-purchase program 
 18.10  administered by the Minnesota housing finance agency or a 
 18.11  housing and redevelopment authority authorized under sections 
 18.12  469.001 to 469.047, provided the occupant's income is no greater 
 18.13  than 80 percent of the county or area median income, adjusted 
 18.14  for family size, and the building consists of two or less 
 18.15  dwelling units.  The lease agreement must provide for a portion 
 18.16  of the lease payment to be escrowed as a nonrefundable down 
 18.17  payment on the housing.  The administering agency shall verify 
 18.18  the occupants income eligibility and certify to the county 
 18.19  assessor that the occupant meets the income criteria under this 
 18.20  paragraph.  To qualify under this clause, the taxpayer must 
 18.21  apply to the county assessor by May 30 of each year.  For 
 18.22  purposes of this section, "qualifying buildings and 
 18.23  appurtenances" shall be defined as one or two unit residential 
 18.24  buildings which are unoccupied and have been abandoned and 
 18.25  boarded for at least six months is qualifying low-income rental 
 18.26  housing certified to the assessor by the housing finance agency 
 18.27  under sections 273.126 and 462A.071.  Class 4d includes land in 
 18.28  proportion to the total market value of the building that is 
 18.29  qualifying low-income rental housing.  For all properties 
 18.30  qualifying as class 4d, the market value determined by the 
 18.31  assessor must be based on the normal approach to value using 
 18.32  normal unrestricted rents. 
 18.33     Class 4d property has a class rate of two 1.5 percent of 
 18.34  market value except that property classified under clause (3), 
 18.35  shall have the same class rate as class 1a property. 
 18.36     (e) Residential rental property that would otherwise be 
 19.1   assessed as class 4 property under paragraph (a); paragraph (b), 
 19.2   clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 19.3   (4), is assessed at the class rate applicable to it under 
 19.4   Minnesota Statutes 1988, section 273.13, if it is found to be a 
 19.5   substandard building under section 273.1316.  Residential rental 
 19.6   property that would otherwise be assessed as class 4 property 
 19.7   under paragraph (d) is assessed at 2.3 percent of market value 
 19.8   if it is found to be a substandard building under section 
 19.9   273.1316. 
 19.10     (f) Class 4e property consists of the residential portion 
 19.11  of any structure located within a city that was converted from 
 19.12  nonresidential use to residential use, provided that: 
 19.13     (1) the structure had formerly been used as a warehouse; 
 19.14     (2) the structure was originally constructed prior to 1940; 
 19.15     (3) the conversion was done after December 31, 1995, but 
 19.16  before January 1, 2003; and 
 19.17     (4) the conversion involved an investment of at least 
 19.18  $25,000 per residential unit. 
 19.19     Class 4e property has a class rate of 2.3 percent, provided 
 19.20  that a structure is eligible for class 4e classification only in 
 19.21  the 12 assessment years immediately following the conversion. 
 19.22     Sec. 6.  Minnesota Statutes 1996, section 273.13, 
 19.23  subdivision 31, is amended to read: 
 19.24     Subd. 31.  [CLASS 5.] Class 5 property includes:  
 19.25     (1) tools, implements, and machinery of an electric 
 19.26  generating, transmission, or distribution system or a pipeline 
 19.27  system transporting or distributing water, gas, crude oil, or 
 19.28  petroleum products or mains and pipes used in the distribution 
 19.29  of steam or hot or chilled water for heating or cooling 
 19.30  buildings, which are fixtures; 
 19.31     (2) unmined iron ore and low-grade iron-bearing formations 
 19.32  as defined in section 273.14; and 
 19.33     (3) all other property not otherwise classified. 
 19.34     Class 5 property has a class rate of 5.06 4.0 percent of 
 19.35  market value for taxes payable in 1998 and thereafter. 
 19.36     Sec. 7.  Minnesota Statutes 1996, section 273.13, is 
 20.1   amended by adding a subdivision to read: 
 20.2      Subd. 34.  [INFLATION ADJUSTMENT.] Beginning for property 
 20.3   assessed in 1998, for taxes payable in 1999, the commissioner of 
 20.4   revenue shall annually adjust the valuation limits specified in 
 20.5   subdivisions 22 and 25 for inflation.  The commissioner shall 
 20.6   make the inflation adjustments in accordance with section 
 20.7   290.06, subdivision 2d, except that for purposes of this 
 20.8   subdivision the percentage increase shall be determined from the 
 20.9   year ending on August 31, 1996, to the year ending on August 31 
 20.10  of the year preceding the assessment year.  The commissioner 
 20.11  shall round the valuation limits to the nearest $1,000 value.  
 20.12  The commissioner shall annually announce the adjusted valuation 
 20.13  limits at the same time provided under section 290.06.  The 
 20.14  determination of the commissioner under this subdivision is not 
 20.15  a rule under the Administrative Procedure Act. 
 20.16     Sec. 8.  [462A.071] [CERTIFICATION OF HOUSING QUALIFYING 
 20.17  FOR REDUCED PROPERTY TAX RATE.] 
 20.18     Subdivision 1.  [CERTIFICATION.] By June 30 of each year, 
 20.19  the agency must certify to local assessors the units of 
 20.20  low-income rental properties that qualify for class 4d under 
 20.21  sections 273.126 and 273.13.  In making these certifications, 
 20.22  the agency may rely on the application and supporting 
 20.23  information supplied by the property owner as to compliance with 
 20.24  the income limits under section 273.126, subdivision 2, and 
 20.25  satisfaction of the minimum housing quality standards under 
 20.26  subdivision 4. 
 20.27     Subd. 2.  [APPLICATION.] (a) In order to qualify for 
 20.28  certification under subdivision 1, the owner or manager of the 
 20.29  property must annually apply to the agency.  The application 
 20.30  must be in the form prescribed by the agency, contain the 
 20.31  information required by the agency, and be submitted by the date 
 20.32  and time specified by the agency. 
 20.33     (b) Each application must include: 
 20.34     (1) the property tax identification number; 
 20.35     (2) the number, type, and size of units the applicant seeks 
 20.36  to qualify as low-income housing under class 4d; 
 21.1      (3) the number, type, and size of units in the property for 
 21.2   which the applicant is not seeking qualification, if any; 
 21.3      (4) a certification that the property has been inspected by 
 21.4   a qualified inspector within the past three years and meets the 
 21.5   minimum housing quality standards or is exempt from the 
 21.6   inspection requirement under subdivision 4; 
 21.7      (5) a statement indicating the building is in compliance 
 21.8   with the income limits; 
 21.9      (6) an executed agreement to restrict rents meeting the 
 21.10  requirements specified by the agency or executed leases for the 
 21.11  units for which qualification as low-income housing as class 4d 
 21.12  under section 273.13 is sought and the rent schedule; and 
 21.13     (7) any additional information the agency deems appropriate 
 21.14  to require. 
 21.15     (c) The applicant must pay a per-unit application fee to be 
 21.16  set by the agency.  The application fee charged by the agency 
 21.17  must approximately equal the costs of processing and reviewing 
 21.18  the applications.  The fee must be deposited in the general fund.
 21.19     Subd. 3.  [AGREEMENT TO RESTRICT RENTS.] The agency may 
 21.20  prescribe one or more standard form agreements to restrict rents 
 21.21  that meet the requirements of section 273.126, subdivision 3.  
 21.22  The agreements must be in recordable form.  The agency may 
 21.23  require applicants to execute a rent restriction agreement in 
 21.24  this form as a condition of entering an agreement to restrict 
 21.25  rents. 
 21.26     Subd. 4.  [MINIMUM HOUSING QUALITY STANDARDS.] (a) To 
 21.27  qualify for taxation under class 4d under section 273.13, a unit 
 21.28  must meet both the housing maintenance code of the local unit of 
 21.29  government in which the unit is located, if such a code has been 
 21.30  adopted, and the housing quality standards adopted by the United 
 21.31  States Department of Housing and Urban Development. 
 21.32     (b) In order to meet the minimum housing quality standards, 
 21.33  a building must be inspected by an independent designated 
 21.34  inspector at least once every three years.  The inspector must 
 21.35  certify that the building complies with the minimum standards.  
 21.36  The property owner must pay the cost of the inspection. 
 22.1      (c) The agency may exempt from the inspection requirement 
 22.2   housing units that are financed by a governmental entity and 
 22.3   subject to regular inspection or other compliance checks with 
 22.4   regard to minimum housing quality.  Written certification must 
 22.5   be available, however, showing that these exempt units have been 
 22.6   inspected within the last three years and comply with the 
 22.7   requirements under the public financing or local requirements. 
 22.8      Subd. 5.  [HOUSING INSPECTORS.] (a) Housing inspections 
 22.9   required by this section may be conducted only by persons 
 22.10  designated by the agency.  The agency may designate one or more 
 22.11  persons to conduct inspections for all or part of the state.  A 
 22.12  designated inspector may charge a fee for an inspection up to a 
 22.13  maximum amount approved by the agency.  The inspector must be 
 22.14  independent of the owner or manager of the inspected property. 
 22.15     (b) The agency must maintain a list of persons eligible to 
 22.16  conduct housing inspections under this section. 
 22.17     Subd. 6.  [SECTION 8 AND TAX CREDIT UNITS.] (a) The agency 
 22.18  may deem units as meeting the requirements of section 273.126 
 22.19  and this section, if the units either: 
 22.20     (1) are subject to a housing assistance payments contract 
 22.21  under section 8 of the United States Housing Act of 1937, as 
 22.22  amended; or 
 22.23     (2) are rent and income restricted units of a qualified 
 22.24  low-income housing project receiving tax credits under section 
 22.25  42(g) of the Internal Revenue Code of 1986, as amended. 
 22.26     (b) The agency may certify these deemed units under 
 22.27  subdivision 1 based on a simplified application procedure that 
 22.28  verifies the unit's qualifications under paragraph (a). 
 22.29     Subd. 7.  [MONITORING COMPLIANCE.] (a) The agency must 
 22.30  monitor compliance by building owners with the requirements of 
 22.31  section 273.126 and this section.  The agency must annually 
 22.32  conduct on-site examinations of a sample of the buildings 
 22.33  receiving class 4d taxation to monitor compliance.  The agency 
 22.34  may contract with third parties to monitor compliance. 
 22.35     (b) An inspector, designated by the agency under 
 22.36  subdivision 5, shall notify the agency if, in conducting an 
 23.1   inspection under subdivision 4, the inspector finds that: 
 23.2      (1) a unit is receiving class 4d taxation; 
 23.3      (2) the unit is not in compliance with the requirements of 
 23.4   subdivision 4; and 
 23.5      (3) the owner or manager fails or refuses to cure the 
 23.6   violations within a reasonable time after receiving notification 
 23.7   of the violation. 
 23.8      Subd. 8.  [PENALTIES.] (a) The penalties provided by this 
 23.9   subdivision apply to each unit that received class 4d taxation 
 23.10  for a year and failed to meet the requirements of section 
 23.11  273.126 and this section. 
 23.12     (b) If the owner or manager does not comply with the rent 
 23.13  restriction agreement, a penalty applies equal to the lesser of: 
 23.14     (1) the increased taxes that would have been imposed, if 
 23.15  the property had not been classified under class 4d for any year 
 23.16  in which the agreement was violated; or 
 23.17     (2) 150 percent of the rent charged in excess of the rent 
 23.18  restriction agreement. 
 23.19     (c) If the owner or manager does not comply with the income 
 23.20  restrictions or minimum housing quality standards, a penalty 
 23.21  applies equal to the increased taxes that would have been 
 23.22  imposed, if the property had not been classified under class 4d 
 23.23  for any year in which restrictions were violated. 
 23.24     (d) If the agency finds that the violations were 
 23.25  inadvertent and insubstantial, a penalty of $....... per unit 
 23.26  per year applies in lieu of the penalties specified under 
 23.27  paragraphs (b) and (c).  In order to qualify under this 
 23.28  paragraph, violations of the minimum housing quality standards 
 23.29  must be corrected within a reasonable period of time and rent 
 23.30  charged in excess of the agreement must be rebated to the 
 23.31  tenants. 
 23.32     (e) The agency may abate the penalties under this 
 23.33  subdivision for reasonable cause. 
 23.34     (f) Penalties assessed under paragraph (d) are payable to 
 23.35  the agency and must be deposited in the general fund.  If an 
 23.36  owner or manager fails to timely pay a penalty imposed under 
 24.1   paragraph (d), the agency may choose to: 
 24.2      (1) impose the penalty under paragraph (b) or (c); or 
 24.3      (2) certify the penalty under paragraph (d) to the assessor 
 24.4   to be added to and collected under section 273.126. 
 24.5   The agency shall certify to the assessor and county auditor 
 24.6   penalties assessed under paragraphs (b) and (c) and clause (2).  
 24.7   The assessor or auditor shall impose and collect the certified 
 24.8   penalties as additional taxes under section 273.126.  Any 
 24.9   penalty collected under section 273.126 as additional taxes must 
 24.10  be distributed to taxing districts in the same manner as 
 24.11  property taxes on the property. 
 24.12     Subd. 9.  [TAX COURT REVIEW.] (a) An owner may appeal to 
 24.13  tax court as provided in section 271.06: 
 24.14     (1) a denial of a request for certification of a property 
 24.15  as qualifying for class 4d taxation; 
 24.16     (2) imposition of a penalty under this section; or 
 24.17     (3) denial of a request to abate a penalty. 
 24.18     (b) The county attorney shall represent the public in 
 24.19  opposing the appeal. 
 24.20     Subd. 10.  [RULEMAKING.] (a) The agency may adopt 
 24.21  administrative rules under chapter 14 to carry out the 
 24.22  provisions of this section, including establishing standards for 
 24.23  abating penalties, violations that are inadvertent and 
 24.24  insubstantial, selection of inspectors, selection of persons to 
 24.25  monitor compliance, establishing rent restriction agreement 
 24.26  terms, or any other purpose. 
 24.27     (b) The agency may adopt emergency rules under chapter 14.  
 24.28  Any emergency rules adopted under this authority expire on 
 24.29  January 1, 1999. 
 24.30     Sec. 9.  Minnesota Statutes 1996, section 469.040, is 
 24.31  amended by adding a subdivision to read: 
 24.32     Subd. 1a.  [LIMITS FOR EXEMPT HOUSING PROJECTS.] (a) The 
 24.33  provisions of this subdivision apply to housing projects and 
 24.34  housing development projects acquired, constructed, financed, or 
 24.35  refinanced after December 31, 1997. 
 24.36     (b) For a project to qualify for the property tax exemption 
 25.1   under this section, the authority must establish income 
 25.2   guidelines meeting the requirements of paragraph (c). 
 25.3      (c) The housing authority must establish and make good 
 25.4   faith efforts to abide by one of the following income limits for 
 25.5   the housing project: 
 25.6      (1) at least 20 percent of the housing units are occupied 
 25.7   by individuals whose incomes are 50 percent or less of the area 
 25.8   median gross income; or 
 25.9      (2) at least 40 percent of the housing units are occupied 
 25.10  by individuals whose incomes are 60 percent or less of the area 
 25.11  median gross income. 
 25.12     For purposes of this paragraph, the terms defined in 
 25.13  section 42 of the Internal Revenue Code of 1986 apply, except 
 25.14  "median area gross income" means the greater of (1) the median 
 25.15  gross income for the area determined under section 42 of the 
 25.16  Internal Revenue Code of 1986, as amended, or (2) the median 
 25.17  gross income for the state. 
 25.18     (d) The provisions of this subdivision do not apply to all 
 25.19  or part of a housing project that is subject to the requirements 
 25.20  of section 5 of the United States Housing Act of 1937.  
 25.21     Sec. 10.  Minnesota Statutes 1996, section 469.040, 
 25.22  subdivision 3, is amended to read: 
 25.23     Subd. 3.  [STATEMENT FILED WITH ASSESSOR; PERCENTAGE TAX ON 
 25.24  RENTALS.] Notwithstanding the provisions of subdivision 1, after 
 25.25  a housing project or a housing development project carried on 
 25.26  under sections 469.016 to 469.026 has become occupied, in whole 
 25.27  or in part, an authority shall file with the assessor, on or 
 25.28  before April 15 of each year, a statement of the aggregate 
 25.29  shelter rentals of that project collected during the preceding 
 25.30  calendar year.  Unless a greater amount has been agreed upon 
 25.31  between the authority and the governing body or bodies for which 
 25.32  the authority was created, in whose jurisdiction the project is 
 25.33  located, five percent of the aggregate shelter rentals shall be 
 25.34  charged to the authority as a service charge for the services 
 25.35  and facilities to be furnished with respect to that project.  
 25.36  The service charge shall be collected from the authority in the 
 26.1   manner provided by law for the assessment and collection of 
 26.2   taxes.  The amount so collected shall be distributed to the 
 26.3   several taxing bodies in the same proportion as the tax rate of 
 26.4   each bears to the total tax rate of those taxing bodies.  The 
 26.5   governing body or bodies for which the authority has been 
 26.6   created, in whose jurisdiction the project is located, may agree 
 26.7   with the authority for the payment of a service charge for a 
 26.8   housing project or a housing development project in an amount 
 26.9   greater than five percent of the aggregate annual shelter 
 26.10  rentals of any project, upon the basis of shelter rentals or 
 26.11  upon another basis agreed upon.  The service charge may not 
 26.12  exceed the amount which would be payable in taxes were the 
 26.13  property not exempt.  If such an agreement is made, the service 
 26.14  charge so agreed upon shall be collected and distributed in the 
 26.15  manner above provided.  If the project has become occupied, or 
 26.16  if the land upon which the project is to be constructed has been 
 26.17  acquired, the agreement shall specify the location of the 
 26.18  project for which the agreement is made.  "Shelter rental" means 
 26.19  the total rentals of a housing project exclusive of any charge 
 26.20  for utilities and special services such as heat, water, 
 26.21  electricity, gas, sewage disposal, or garbage removal.  "Service 
 26.22  charge" means payment in lieu of taxes.  The records of each 
 26.23  housing project shall be open to inspection by the proper 
 26.24  assessing officer. 
 26.25     Sec. 11.  [TEMPORARY EXEMPTIONS FROM INSPECTION 
 26.26  REQUIREMENTS.] 
 26.27     (a) The Minnesota housing finance agency may provide a 
 26.28  temporary exemption to the inspection requirement under 
 26.29  Minnesota Statutes, sections 273.126, subdivision 4, and 
 26.30  462A.071, if the agency finds that: 
 26.31     (1) the property owner made a good faith effort to obtain 
 26.32  an inspection; and 
 26.33     (2) the owner was unable to obtain an inspection in time to 
 26.34  apply because the designated inspectors were unable to conduct 
 26.35  all the requested inspections. 
 26.36     (b) If a unit that is exempted under this section does not 
 27.1   ultimately obtain a certification from a designated inspector 
 27.2   that it is in compliance with the minimum housing quality 
 27.3   standards, the additional taxes under Minnesota Statutes, 
 27.4   section 273.126, subdivision 5, apply. 
 27.5      (c) Procedures or rules for granting exemptions under this 
 27.6   section are not subject to the administrative rulemaking under 
 27.7   Minnesota Statutes, chapter 14. 
 27.8      (d) The authority under this section expires December 31, 
 27.9   2000. 
 27.10     Sec. 12.  [APPROPRIATION.] 
 27.11     $....... is appropriated for fiscal years 1998 and 1999 
 27.12  from the general fund to the housing finance agency for purposes 
 27.13  of administering the certification of qualifying low-income 
 27.14  residential properties for property taxation under class 4d. 
 27.15     Sec. 13.  [REPEALER.] 
 27.16     Minnesota Statutes 1996, sections 273.13, subdivision 32; 
 27.17  273.1317; 273.1318; and 273.1398, subdivision 4, are repealed. 
 27.18     Sec. 14.  [EFFECTIVE DATE.] 
 27.19     Sections 1, 2, and 13 are effective for property taxes 
 27.20  payable in 1999.  Sections 3 to 7 are effective for taxes 
 27.21  payable in 1998 and thereafter, except the low-income housing 
 27.22  provisions in class 4c and 4d are effective for taxes payable in 
 27.23  1999 and thereafter.  Sections 8 and 11 are effective the day 
 27.24  following final enactment.  Sections 9 and 10 are effective 
 27.25  August 1, 1997. 
 27.26                             ARTICLE 2 
 27.27                         EDUCATION FINANCE 
 27.28     Section 1.  Minnesota Statutes 1996, section 124.239, is 
 27.29  amended by adding a subdivision to read: 
 27.30     Subd. 4a.  [ALTERNATIVE FACILITIES REVENUE.] A district's 
 27.31  alternative facilities revenue for a fiscal year equals its 
 27.32  costs related to an approved facility plan as follows: 
 27.33     (1) if the district has indicated to the commissioner that 
 27.34  bonds will be issued, the principal and interest payments on 
 27.35  outstanding bonds issued according to subdivision 3; or 
 27.36     (2) if the district has indicated to the commissioner that 
 28.1   the plan will be funded on a pay-as-you-go basis, the district's 
 28.2   costs according to the schedule approved in the plan. 
 28.3      Sec. 2.  Minnesota Statutes 1996, section 124.239, 
 28.4   subdivision 5, is amended to read: 
 28.5      Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
 28.6   approval, may levy for costs related to an approved facility 
 28.7   plan as follows:  
 28.8      (a) if the district has indicated to the commissioner that 
 28.9   bonds will be issued, the district may levy for the principal 
 28.10  and interest payments on outstanding bonds issued according to 
 28.11  subdivision 3; or 
 28.12     (b) if the district has indicated to the commissioner that 
 28.13  the plan will be funded through levy, the district may levy 
 28.14  according to the schedule approved in the plan To obtain 
 28.15  alternative facilities revenue, a school district may levy an 
 28.16  amount equal to the district's alternative facilities revenue as 
 28.17  defined in subdivision 4a, multiplied by the lesser of one, or 
 28.18  the ratio of the quotient derived by dividing the adjusted net 
 28.19  tax capacity of the district for the year before the year the 
 28.20  levy is certified by the actual pupil units in the district for 
 28.21  the school year to which the levy is attributable, to the 
 28.22  equalizing factor under section 124A.02. 
 28.23     Sec. 3.  Minnesota Statutes 1996, section 124.239, is 
 28.24  amended by adding a subdivision to read: 
 28.25     Subd. 5a.  [ALTERNATIVE FACILITIES AID.] A district's 
 28.26  alternative facilities aid is the difference between its 
 28.27  alternative facilities revenue and its alternative facilities 
 28.28  levy.  If a district does not levy the entire amount permitted, 
 28.29  alternative facilities aid must be reduced in proportion to the 
 28.30  actual amount levied. 
 28.31     Sec. 4.  Minnesota Statutes 1996, section 124.2716, 
 28.32  subdivision 3, is amended to read: 
 28.33     Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
 28.34  revenue, a school district may levy an amount equal to the 
 28.35  district's extended day revenue as defined in subdivision 2 
 28.36  multiplied by the lesser of one, or the ratio of the quotient 
 29.1   derived by dividing the adjusted net tax capacity of the 
 29.2   district for the year before the year the levy is certified by 
 29.3   the actual pupil units in the district for the school year to 
 29.4   which the levy is attributable, to $3,700 the equalizing factor 
 29.5   under section 124A.02.  
 29.6      Sec. 5.  Minnesota Statutes 1996, section 124.2727, 
 29.7   subdivision 6b, is amended to read: 
 29.8      Subd. 6b.  [DISTRICT COOPERATION LEVY.] To receive district 
 29.9   cooperation revenue, a district may levy an amount equal to the 
 29.10  district's cooperation revenue multiplied by the lesser of one, 
 29.11  or the ratio of the quotient derived by dividing the adjusted 
 29.12  net tax capacity of the district for the year preceding the year 
 29.13  the levy is certified by the actual pupil units in the district 
 29.14  for the school year to which the levy is attributable 
 29.15  to $3,500 the equalizing factor under section 124A.02. 
 29.16     Sec. 6.  Minnesota Statutes 1996, section 124.83, 
 29.17  subdivision 4, is amended to read: 
 29.18     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
 29.19  safety revenue, a district may levy an amount equal to the 
 29.20  district's health and safety revenue as defined in subdivision 3 
 29.21  multiplied by the lesser of one, or the ratio of the quotient 
 29.22  derived by dividing the adjusted net tax capacity of the 
 29.23  district for the year preceding the year the levy is certified 
 29.24  by the actual pupil units in the district for the school year to 
 29.25  which the levy is attributable, to $4,707.50 the equalizing 
 29.26  factor under section 124A.02. 
 29.27     Sec. 7.  [124.913] [LEASE PURCHASE; INSTALLMENT BUYS.] 
 29.28     Subdivision 1.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) 
 29.29  Upon application to, and approval by, the commissioner in 
 29.30  accordance with the procedures and limits in section 124.91, 
 29.31  subdivision 1, a district, as defined in this subdivision, may: 
 29.32     (1) purchase real or personal property under an installment 
 29.33  contract; or 
 29.34     (2) may lease real or personal property with an option to 
 29.35  purchase under a lease purchase agreement, by which installment 
 29.36  contract or lease purchase agreement title is kept by the seller 
 30.1   or vendor or assigned to a third party as security for the 
 30.2   purchase price, including interest, if any. 
 30.3      (b) The obligation created by the installment contract or 
 30.4   the lease purchase agreement must not be included in the 
 30.5   calculation of net debt for purposes of section 475.53, and does 
 30.6   not constitute debt under other law.  An election is not 
 30.7   required in connection with the execution of the installment 
 30.8   contract or the lease purchase agreement. 
 30.9      (c) The proceeds of the revenue authorized by this section 
 30.10  must not be used to acquire a facility to be primarily used for 
 30.11  athletic or school administration purposes. 
 30.12     (d) For purposes of this subdivision, "district" means: 
 30.13     (1) a school district required to have a comprehensive plan 
 30.14  for the elimination of segregation whose plan has been 
 30.15  determined by the commissioner to be in compliance with the 
 30.16  state board of education rules relating to equality of 
 30.17  educational opportunity and school desegregation; or 
 30.18     (2) a school district that participates in a joint program 
 30.19  for interdistrict desegregation with a district defined in 
 30.20  clause (1), if the facility acquired under this subdivision is 
 30.21  to be primarily used for the joint program. 
 30.22     (e) Notwithstanding section 124.91, subdivision 1, the 
 30.23  prohibition against a levy by a district to lease or rent a 
 30.24  district-owned building to itself does not apply to levies 
 30.25  otherwise authorized by this subdivision. 
 30.26     (f) For the purposes of this subdivision, any references in 
 30.27  section 124.91, subdivision 1, to building or land shall include 
 30.28  personal property. 
 30.29     Subd. 2.  [LEASE PURCHASE; INSTALLMENT BUYS REVENUE.] A 
 30.30  district's lease purchase and installment buys revenue for a 
 30.31  fiscal year equals the amount needed to make payments required 
 30.32  by a lease purchase agreement, installment purchase agreement, 
 30.33  or other deferred payment agreement: 
 30.34     (1) that was authorized by Minnesota Statutes 1989 
 30.35  Supplement, section 465.71, if: 
 30.36     (i) the agreement was approved by the commissioner before 
 31.1   July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 31.2   section 275.125, subdivision 11d; or 
 31.3      (ii) the district levied in 1989 for the payments; or 
 31.4      (2) authorized by subdivision 1, or Minnesota Statutes 
 31.5   1996, section 124.91, subdivision 7. 
 31.6      Subd. 3.  [LEASE PURCHASE AND INSTALLMENT BUYS LEVY.] To 
 31.7   receive lease purchase and installment buys revenue, a school 
 31.8   district may levy an amount equal to the district's lease 
 31.9   purchase and installment buys revenue as defined in subdivision 
 31.10  2, multiplied by the lesser of one, or the ratio of the quotient 
 31.11  derived by dividing the adjusted net tax capacity of the 
 31.12  district for the year before the year the levy is certified by 
 31.13  the actual pupil units in the district for the school year to 
 31.14  which the levy is attributable, to the equalizing factor under 
 31.15  section 124A.02. 
 31.16     Subd. 4.  [LEASE PURCHASE AND INSTALLMENT BUYS AID.] A 
 31.17  district's lease purchase and installment buys aid is the 
 31.18  difference between its lease purchase and installment buys 
 31.19  revenue and its lease purchase and installment buys levy.  If a 
 31.20  district does not levy the entire amount permitted, lease 
 31.21  purchase and installment buys aid must be reduced in proportion 
 31.22  to the actual amount levied. 
 31.23     Sec. 8.  Minnesota Statutes 1996, section 124.95, 
 31.24  subdivision 1, is amended to read: 
 31.25     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 31.26  section, the eligible debt service revenue of a district is 
 31.27  defined as follows: 
 31.28     (1) the amount needed to produce between five and six 
 31.29  percent in excess of the amount needed to meet when due the 
 31.30  principal and interest payments on the obligations of the 
 31.31  district for eligible projects according to subdivision 2, 
 31.32  including the amounts necessary for repayment of energy loans 
 31.33  according to section 216C.37 or sections 298.292 to 298.298, 
 31.34  debt service loans and capital loans, lease purchase payments 
 31.35  under section 124.91, subdivisions 2 and 3, alternative 
 31.36  facilities levies under section 124.239, subdivision 5, minus 
 32.1      (2) the amount of debt service excess levy reduction for 
 32.2   that school year calculated according to the procedure 
 32.3   established by the commissioner. 
 32.4      (b) The obligations in this paragraph are excluded from 
 32.5   eligible debt service revenue: 
 32.6      (1) obligations under section 124.2445; 
 32.7      (2) the part of debt service principal and interest paid 
 32.8   from the taconite environmental protection fund or northeast 
 32.9   Minnesota economic protection trust; 
 32.10     (3) obligations issued under Laws 1991, chapter 265, 
 32.11  article 5, section 18, as amended by Laws 1992, chapter 499, 
 32.12  article 5, section 24; and 
 32.13     (4) obligations under section 124.2455. 
 32.14     (c) For purposes of this section, if a preexisting school 
 32.15  district reorganized under section 122.22, 122.23, or 122.241 to 
 32.16  122.248 is solely responsible for retirement of the preexisting 
 32.17  district's bonded indebtedness, capital loans or debt service 
 32.18  loans, debt service equalization aid must be computed separately 
 32.19  for each of the preexisting school districts. 
 32.20     Sec. 9.  Minnesota Statutes 1996, section 124.95, 
 32.21  subdivision 4, is amended to read: 
 32.22     Subd. 4.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
 32.23  service equalization revenue, a district must levy an amount not 
 32.24  to exceed the district's debt service equalization revenue times 
 32.25  the lesser of one or the ratio of: 
 32.26     (1) the quotient derived by dividing the adjusted net tax 
 32.27  capacity of the district for the year before the year the levy 
 32.28  is certified by the actual pupil units in the district for the 
 32.29  school year ending in the year prior to the year the levy is 
 32.30  certified; to 
 32.31     (2) $4,707.50 the equalizing factor under section 124A.02. 
 32.32     Sec. 10.  Minnesota Statutes 1996, section 124A.23, 
 32.33  subdivision 1, is amended to read: 
 32.34     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 32.35  commissioner shall establish the general education tax rate by 
 32.36  July 1 of each year for levies payable in the following year.  
 33.1   The general education tax capacity rate shall be a rate, rounded 
 33.2   up to the nearest tenth of a percent, that, when applied to the 
 33.3   adjusted net tax capacity for all districts, raises the amount 
 33.4   specified in this subdivision.  The general education tax rate 
 33.5   shall be the rate that raises $1,054,000,000 for fiscal year 
 33.6   1996 and $1,359,000,000 for fiscal year 1997 1998 and 
 33.7   $1,143,000,000 for fiscal year 1999 and later fiscal years.  The 
 33.8   general education tax rate may not be changed due to changes or 
 33.9   corrections made to a district's adjusted net tax capacity after 
 33.10  the tax rate has been established.  
 33.11     Sec. 11.  [REPEALER.] 
 33.12     Minnesota Statutes 1996, section 124.91, subdivisions 2 and 
 33.13  7, are repealed. 
 33.14     Sec. 12.  [EFFECTIVE DATE.] 
 33.15     This article is effective for taxes payable in 1998 and 
 33.16  thereafter, and aids payable in fiscal year 1999 and thereafter. 
 33.17                             ARTICLE 3
 33.18                        PROPERTY TAX REFUND 
 33.19     Section 1.  Minnesota Statutes 1996, section 290A.03, 
 33.20  subdivision 11, is amended to read: 
 33.21     Subd. 11.  [RENT CONSTITUTING PROPERTY TAXES.] "Rent 
 33.22  constituting property taxes" means the amount of gross rent 
 33.23  actually paid in cash, or its equivalent, which is attributable 
 33.24  (a) to the property tax paid on the unit or (b) to the amount 20 
 33.25  percent of the gross rent actually paid in cash, or its 
 33.26  equivalent, or the portion of rent paid in lieu of property 
 33.27  taxes, in any calendar year by a claimant for the right of 
 33.28  occupancy of the claimant's Minnesota homestead in the calendar 
 33.29  year, and which rent constitutes the basis, in the succeeding 
 33.30  calendar year of a claim for relief under this chapter by the 
 33.31  claimant.  The amount of rent attributable to property taxes 
 33.32  paid or payments in lieu made on the unit shall be determined by 
 33.33  multiplying the gross rent paid by the claimant for the calendar 
 33.34  year for the unit by a fraction, the numerator of which is the 
 33.35  net tax on the property where the unit is located and the 
 33.36  denominator of which is the total scheduled rent.  In no case 
 34.1   may the rent constituting property taxes exceed 50 percent of 
 34.2   the gross rent paid by the claimant during that calendar year.  
 34.3   In the case of a claimant who resides in a unit for which (1) a 
 34.4   rent subsidy is paid to, or for, the claimant based on the 
 34.5   income of the claimant or the claimant's family, or (2) a 
 34.6   subsidy is paid to a public housing authority that owns or 
 34.7   operates the claimant's rental unit, pursuant to United States 
 34.8   Code, title 42, section 1437c, 20 percent of gross rent actually 
 34.9   paid in cash or its equivalent shall be the claimant's "rent 
 34.10  constituting property taxes paid."  For purposes of this 
 34.11  subdivision, "rent subsidy" does not include any housing 
 34.12  assistance received under aid to families with dependent 
 34.13  children, general assistance, Minnesota supplemental assistance, 
 34.14  supplemental security income, or similar income maintenance 
 34.15  programs. 
 34.16     Sec. 2.  Minnesota Statutes 1996, section 290A.03, 
 34.17  subdivision 13, is amended to read: 
 34.18     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 34.19  payable" means the property tax exclusive of special 
 34.20  assessments, penalties, and interest payable on a claimant's 
 34.21  homestead before reductions made under section 273.13 but after 
 34.22  deductions made under sections 273.135, 273.1391, 273.42, 
 34.23  subdivision 2, and any other state paid property tax credits in 
 34.24  any calendar year.  In the case of a claimant who makes ground 
 34.25  lease payments, "property taxes payable" includes the amount of 
 34.26  the payments directly attributable to the property taxes 
 34.27  assessed against the parcel on which the house is located.  No 
 34.28  apportionment or reduction of the "property taxes payable" shall 
 34.29  be required for the use of a portion of the claimant's homestead 
 34.30  for a business purpose if the claimant does not deduct any 
 34.31  business depreciation expenses for the use of a portion of the 
 34.32  homestead in the determination of federal adjusted gross 
 34.33  income.  For homesteads which are manufactured homes as defined 
 34.34  in section 273.125, subdivision 8, and for homesteads which are 
 34.35  park trailers taxed as manufactured homes under section 168.012, 
 34.36  subdivision 9, "property taxes payable" shall also include the 
 35.1   amount 20 percent of the gross rent paid in the preceding year 
 35.2   for the site on which the homestead is located, which is 
 35.3   attributable to the net tax paid on the site.  The amount 
 35.4   attributable to property taxes shall be determined by 
 35.5   multiplying the net tax on the parcel by a fraction, the 
 35.6   numerator of which is the gross rent paid for the calendar year 
 35.7   for the site and the denominator of which is the gross rent paid 
 35.8   for the calendar year for the parcel.  When a homestead is owned 
 35.9   by two or more persons as joint tenants or tenants in common, 
 35.10  such tenants shall determine between them which tenant may claim 
 35.11  the property taxes payable on the homestead.  If they are unable 
 35.12  to agree, the matter shall be referred to the commissioner of 
 35.13  revenue whose decision shall be final.  Property taxes are 
 35.14  considered payable in the year prescribed by law for payment of 
 35.15  the taxes. 
 35.16     In the case of a claim relating to "property taxes 
 35.17  payable," the claimant must have owned and occupied the 
 35.18  homestead on January 2 of the year in which the tax is payable 
 35.19  and (i) the property must have been classified as homestead 
 35.20  property pursuant to section 273.13, subdivision 22 or 23, on or 
 35.21  before December 15 of the assessment year to which the "property 
 35.22  taxes payable" relate; or (ii) the claimant must provide 
 35.23  documentation from the local assessor that application for 
 35.24  homestead classification has been made on or before December 15 
 35.25  of the year in which the "property taxes payable" were payable 
 35.26  and that the assessor has approved the application. 
 35.27     Sec. 3.  Minnesota Statutes 1996, section 290A.04, 
 35.28  subdivision 2, is amended to read: 
 35.29     Subd. 2.  [HOMEOWNERS.] A claimant whose property taxes 
 35.30  payable are in excess of the percentage of the household income 
 35.31  stated below shall pay an amount equal to the percent of income 
 35.32  shown for the appropriate household income level along with the 
 35.33  percent to be paid by the claimant of the remaining amount of 
 35.34  property taxes payable.  The state refund equals the amount of 
 35.35  property taxes payable that remain, up to the state refund 
 35.36  amount shown below.  
 36.1                         Percent           Percent    Maximum
 36.2   Household Income     of Income          Paid by     State
 36.3                                           Claimant    Refund
 36.4       $0 to 1,029     1.2 percent        18 percent   $440
 36.5    1,030 to 2,059     1.3 percent        18 percent   $440
 36.6    2,060 to 3,099     1.4 percent        20 percent   $440
 36.7    3,100 to 4,129     1.6 percent        20 percent   $440
 36.8    4,130 to 5,159     1.7 percent        20 percent   $440
 36.9    5,160 to 7,229     1.9 percent        25 percent   $440
 36.10   7,230 to 8,259     2.1 percent        25 percent   $440
 36.11   8,260 to 9,289     2.2 percent        25 percent   $440
 36.12   9,290 to 10,319    2.3 percent        30 percent   $440
 36.13  10,320 to 11,349    2.4 percent        30 percent   $440
 36.14  11,350 to 12,389    2.5 percent        30 percent   $440
 36.15  12,390 to 14,449    2.6 percent        30 percent   $440
 36.16  14,450 to 15,479    2.8 percent        35 percent   $440
 36.17  15,480 to 16,509    3.0 percent        35 percent   $440
 36.18  16,510 to 17,549    3.2 percent        40 percent   $440
 36.19  17,550 to 21,669    3.3 percent        40 percent   $440
 36.20  21,670 to 24,769    3.4 percent        45 percent   $440
 36.21  24,770 to 30,959    3.5 percent        45 percent   $440
 36.22  30,960 to 36,119    3.5 percent        45 percent   $440
 36.23  36,120 to 41,279    3.7 percent        50 percent   $440
 36.24  41,280 to 58,829    4.0 percent        50 percent   $440
 36.25  58,830 to 59,859    4.0 percent        50 percent   $310
 36.26  59,860 to 60,889    4.0 percent        50 percent   $210
 36.27  60,890 to 61,929    4.0 percent        50 percent   $100 
 36.28                        Percent           Percent    Maximum
 36.29  Household Income     of Income          Paid by     State
 36.30                                          Claimant    Refund
 36.31      $0 to 3,379     1.0 percent         6 percent   $1,500
 36.32   3,380 to 4,499     1.2 percent         8 percent   $1,500
 36.33   4,500 to 5,619     1.2 percent         8 percent   $1,500
 36.34   5,620 to 7,879     1.5 percent        14 percent   $1,500
 36.35   7,880 to 8,999     1.6 percent        14 percent   $1,500
 36.36   9,000 to 10,119    1.6 percent        14 percent   $1,500
 36.37  10,120 to 11,239    1.8 percent        20 percent   $1,500
 36.38  11,240 to 12,359    1.8 percent        20 percent   $1,500
 36.39  12,360 to 13,499    2.0 percent        20 percent   $1,500
 36.40  13,500 to 15,739    2.0 percent        20 percent   $1,500
 36.41  15,740 to 16,859    2.2 percent        25 percent   $1,500
 36.42  16,860 to 17,979    2.2 percent        25 percent   $1,500
 36.43  17,980 to 19,119    2.4 percent        31 percent   $1,500
 36.44  19,120 to 23,599    2.6 percent        31 percent   $1,500
 36.45  23,600 to 27,624    2.7 percent        37 percent   $1,500
 36.46  27,625 to 31,749    2.8 percent        37 percent   $1,500
 36.47  31,750 to 35,874    2.9 percent        37 percent   $1,500
 36.48  35,875 to 39,999    3.0 percent        37 percent   $1,500
 36.49  40,000 to 44,999    3.1 percent        43 percent   $1,500
 36.50  45,000 to 49,999    3.2 percent        43 percent   $1,500
 36.51  50,000 to 54,999    3.3 percent        46 percent   $1,500
 36.52  55,000 to 59,999    3.4 percent        50 percent   $1,500
 36.53  60,000 to 64,999    3.6 percent        50 percent   $1,500
 36.54  65,000 to 69,999    3.8 percent        50 percent   $1,500
 36.55  70,000 to 76,999    4.0 percent        50 percent   $1,500
 36.56  77,000 to 77,999    4.0 percent        50 percent   $1,000
 36.57  78,000 to 78,999    4.0 percent        50 percent   $  500
 36.58  79,000 to 79,999    4.0 percent        50 percent   $  250 
 36.59     The payment made to a claimant shall be the amount of the 
 36.60  state refund calculated under this subdivision.  No payment is 
 36.61  allowed if the claimant's household income is $61,930 $80,000 or 
 36.62  more. 
 36.63     Sec. 4.  Minnesota Statutes 1996, section 290A.04, 
 36.64  subdivision 6, is amended to read: 
 37.1      Subd. 6.  [INFLATION ADJUSTMENT.] Beginning for property 
 37.2   tax refunds payable in calendar year 1996 1998, the commissioner 
 37.3   shall annually adjust the dollar amounts of the income 
 37.4   thresholds and the maximum refunds under subdivisions 2 and 2a 
 37.5   for inflation.  The commissioner shall make the inflation 
 37.6   adjustments in accordance with section 290.06, subdivision 2d, 
 37.7   except that for purposes of this subdivision the percentage 
 37.8   increase shall be determined from the year ending on August 31, 
 37.9   1994, to the year ending on August 31 of the year preceding that 
 37.10  in which the refund is payable.  The commissioner shall not 
 37.11  adjust the dollar amounts under subdivision 2 for refunds that 
 37.12  are payable in calendar year 1998.  Beginning for refunds 
 37.13  payable in 1999, the base year for adjustments of the dollar 
 37.14  amounts in subdivision 2 is the year ending August 31, 1997.  
 37.15  The commissioner shall use the appropriate percentage increase 
 37.16  to annually adjust the income thresholds and maximum refunds 
 37.17  under subdivisions 2 and 2a for inflation without regard to 
 37.18  whether or not the income tax brackets are adjusted for 
 37.19  inflation in that year.  The commissioner shall round the 
 37.20  thresholds and the maximum amounts, as adjusted to the nearest 
 37.21  $10 amount.  If the amount ends in $5, the commissioner shall 
 37.22  round it up to the next $10 amount.  
 37.23     The commissioner shall annually announce the adjusted 
 37.24  refund schedule at the same time provided under section 290.06.  
 37.25  The determination of the commissioner under this subdivision is 
 37.26  not a rule under the administrative procedure act. 
 37.27     Sec. 5.  Minnesota Statutes 1996, section 290A.19, is 
 37.28  amended to read: 
 37.29     290A.19 [OWNER OR MANAGING AGENT TO FURNISH RENT 
 37.30  CERTIFICATE.] 
 37.31     (a) The owner or managing agent of any property for which 
 37.32  rent is paid for occupancy as a homestead must furnish a 
 37.33  certificate of rent constituting property tax paid to a person 
 37.34  who is a renter on December 31, in the form prescribed by the 
 37.35  commissioner.  If the renter moves before December 31, the owner 
 37.36  or managing agent may give the certificate to the renter at the 
 38.1   time of moving, or mail the certificate to the forwarding 
 38.2   address if an address has been provided by the renter.  The 
 38.3   certificate must be made available to the renter before February 
 38.4   1 of the year following the year in which the rent was paid.  
 38.5   The owner or managing agent must retain a duplicate of each 
 38.6   certificate or an equivalent record showing the same information 
 38.7   for a period of three years.  The duplicate or other record must 
 38.8   be made available to the commissioner upon request.  For the 
 38.9   purposes of this section, "owner" includes a park owner as 
 38.10  defined under section 327C.01, subdivision 6, and "property" 
 38.11  includes a lot as defined under section 327C.01, subdivision 3. 
 38.12     (b) The certificate of rent constituting property taxes 
 38.13  must include the address of the property, including the county, 
 38.14  and the property tax parcel identification number and any 
 38.15  additional information that the commissioner determines is 
 38.16  appropriate. 
 38.17     (c) If the owner or managing agent fails to provide the 
 38.18  renter with a certificate of rent constituting property taxes, 
 38.19  the commissioner shall allocate the net tax on the building to 
 38.20  the unit on a square footage basis or other appropriate basis as 
 38.21  the commissioner determines.  The renter shall supply the 
 38.22  commissioner with a statement from the county treasurer that 
 38.23  gives the amount of property tax on the parcel, the address and 
 38.24  property tax parcel identification number of the property, and 
 38.25  the number of units in the building. 
 38.26     (d) By January 31 of the year following the year in which 
 38.27  the rent was collected, each owner or managing agent shall 
 38.28  report to the commissioner on a form prescribed by the 
 38.29  commissioner the net tax pertaining to the rental residential 
 38.30  part of the property, the total scheduled rent, and the fraction 
 38.31  computed under section 290A.03, subdivision 11.  A copy of the 
 38.32  property tax statement for taxes payable in that year must be 
 38.33  attached. 
 38.34     Sec. 6.  [REPEALER.] 
 38.35     (a) Minnesota Statutes 1996, sections 270B.12, subdivision 
 38.36  11; 276.012; 290A.055; and 290A.26; and Laws 1995, chapter 264, 
 39.1   article 4, as amended by Laws 1996, chapter 471, article 3, are 
 39.2   repealed.  Notwithstanding Minnesota Statutes, section 645.34, 
 39.3   the sections of statutes amended by the repealed Laws 1995, 
 39.4   chapter 264, article 4, as amended by Laws 1996, chapter 471, 
 39.5   article 3, remain in effect.  
 39.6      (b) Minnesota Statutes 1996, sections 290A.03, subdivisions 
 39.7   12a and 14, are repealed. 
 39.8      Sec. 7.  [EFFECTIVE DATE.] 
 39.9      Sections 1 to 5 and 6, paragraph (b), are effective for 
 39.10  refunds based on property taxes payable in 1998 and rent paid in 
 39.11  1997 and following years.  Section 6, paragraph (a), is 
 39.12  effective the day following final enactment. 
 39.13                             ARTICLE 4
 39.14                   TRUTH IN TAXATION/LEVY LIMITS
 39.15     Section 1.  Minnesota Statutes 1996, section 275.065, 
 39.16  subdivision 1, is amended to read: 
 39.17     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 39.18  law or charter to the contrary, on or before September 15, each 
 39.19  taxing authority, other than a school district, shall adopt a 
 39.20  proposed budget and shall certify to the county auditor the 
 39.21  proposed or, in the case of a town, the final property tax levy 
 39.22  for taxes payable in the following year. 
 39.23     (b) On or before September 30, each school district shall 
 39.24  certify to the county auditor the proposed property tax levy for 
 39.25  taxes payable in the following year.  The school district may 
 39.26  shall certify the proposed levy as: 
 39.27     (1) a specific dollar amount; or the state general 
 39.28  education levy amount as prescribed under section 124A.23, 
 39.29  subdivision 2; and 
 39.30     (2) an amount equal to the sum of all other school levies, 
 39.31  or the maximum levy limitation certified by the commissioner of 
 39.32  children, families, and learning to the county auditor according 
 39.33  to section 124.918, subdivision 1, less the state general 
 39.34  education levy amount under clause (1). 
 39.35     (c) If the board of estimate and taxation or any similar 
 39.36  board that establishes maximum tax levies for taxing 
 40.1   jurisdictions within a first class city certifies the maximum 
 40.2   property tax levies for funds under its jurisdiction by charter 
 40.3   to the county auditor by September 15, the city shall be deemed 
 40.4   to have certified its levies for those taxing jurisdictions. 
 40.5      (d) For purposes of this section, "taxing authority" 
 40.6   includes all home rule and statutory cities, towns, counties, 
 40.7   school districts, and special taxing districts as defined in 
 40.8   section 275.066.  Intermediate school districts that levy a tax 
 40.9   under chapter 124 or 136D, joint powers boards established under 
 40.10  sections 124.491 to 124.495, and common school districts No. 
 40.11  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 40.12  districts for purposes of this section.  
 40.13     Sec. 2.  Minnesota Statutes 1996, section 275.065, 
 40.14  subdivision 3, is amended to read: 
 40.15     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 40.16  county auditor shall prepare and the county treasurer shall 
 40.17  deliver after November 10 and on or before November 24 each 
 40.18  year, by first class mail to each taxpayer at the address listed 
 40.19  on the county's current year's assessment roll, a notice of 
 40.20  proposed property taxes and, in the case of a town, final 
 40.21  property taxes.  
 40.22     (b) The commissioner of revenue shall prescribe the form of 
 40.23  the notice. 
 40.24     (c) The notice must inform taxpayers that it contains the 
 40.25  amount of property taxes each taxing authority other than a town 
 40.26  proposes to collect for taxes payable the following year and, 
 40.27  for a town, the amount of its final levy.  It must clearly state 
 40.28  that each taxing authority, including regional library districts 
 40.29  established under section 134.201, and including the 
 40.30  metropolitan taxing districts as defined in paragraph (i), but 
 40.31  excluding all other special taxing districts and towns, will 
 40.32  hold a public meeting to receive public testimony on the 
 40.33  proposed budget and proposed or final property tax levy, or, in 
 40.34  case of a school district, on the current budget and proposed 
 40.35  property tax levy.  It must clearly state the time and place of 
 40.36  each taxing authority's meeting and an address where comments 
 41.1   will be received by mail.  
 41.2      (d) The notice must state for each parcel the following 
 41.3   items listed in this sequential order: 
 41.4      (1) the market value of the property as determined under 
 41.5   section 273.11, and used for computing property taxes payable in 
 41.6   the following year and for taxes payable in the current year; 
 41.7   and, in the case of residential property, whether the property 
 41.8   is classified as homestead or nonhomestead.  The notice must 
 41.9   clearly inform taxpayers of the years to which the market values 
 41.10  apply and that the values are final values; 
 41.11     (2) the property tax amount for the following year based on 
 41.12  each taxing authority's constant spending levy amount.  This 
 41.13  amount must be listed by county, city or town, school district 
 41.14  amount excluding the amount for the state general education tax, 
 41.15  the state education tax, the total of the special taxing 
 41.16  districts, the tax increment tax, if any, the fiscal disparities 
 41.17  tax, if any, and a total of all taxing authorities; 
 41.18     (3) the proposed property tax amount for the following year 
 41.19  by for the county, the city or town, the school district 
 41.20  excess referenda levy, remaining school district levy, regional 
 41.21  library district, if in existence, the total of the metropolitan 
 41.22  special taxing districts as defined in paragraph (i) and amount 
 41.23  excluding the state general education tax, the state education 
 41.24  tax, the sum of the remaining special taxing districts, and as a 
 41.25  total of all the taxing authorities, including all special 
 41.26  taxing districts, the proposed or, for.  For a town, the 
 41.27  proposed amount is its final net tax on the property for taxes 
 41.28  payable the following year and the actual tax for taxes payable 
 41.29  the current year.  If a school district has certified under 
 41.30  section 124A.03, subdivision 2, that a referendum will be held 
 41.31  in the school district at the November general election, the 
 41.32  county auditor must note next to the school district's proposed 
 41.33  amount that a referendum is pending and that, if approved by the 
 41.34  voters, the tax amount may be higher than shown on the 
 41.35  notice.  For the purposes of this subdivision, "school district 
 41.36  excess referenda levy" means school district taxes for operating 
 42.1   purposes approved at referendums, including those taxes based on 
 42.2   net tax capacity as well as those based on market value.  
 42.3   "School district excess referenda levy" does not include school 
 42.4   district taxes for capital expenditures approved at referendums 
 42.5   or school district taxes to pay for the debt service on bonds 
 42.6   approved at referenda.  In the case of the city of Minneapolis, 
 42.7   the levy for the Minneapolis library board and the levy for 
 42.8   Minneapolis park and recreation shall be listed separately from 
 42.9   the remaining amount of the city's levy.  In the case of a 
 42.10  parcel where tax increment or the fiscal disparities areawide 
 42.11  tax under chapter 276A or 473F applies, the proposed tax levy on 
 42.12  the captured value or the proposed tax levy on the tax capacity 
 42.13  subject to the areawide tax must each be stated separately and 
 42.14  not included in the sum of the special taxing districts; and 
 42.15     (3) (4) the increase or decrease in between the amounts in 
 42.16  clause (2) from taxes payable in the current year to proposed 
 42.17  or, for a town, final taxes payable the following year, and 
 42.18  clause (3) expressed as a dollar amount and as a percentage; and 
 42.19     (5) the total actual taxes for the current year for all 
 42.20  taxing authorities for the parcel. 
 42.21     (e) The notice must clearly state that the proposed or 
 42.22  final taxes do not include the following: 
 42.23     (1) special assessments; 
 42.24     (2) levies approved by the voters after the date the 
 42.25  proposed taxes are certified, including bond referenda, school 
 42.26  district levy referenda, and levy limit increase referenda; 
 42.27     (3) amounts necessary to pay cleanup or other costs due to 
 42.28  a natural disaster occurring after the date the proposed taxes 
 42.29  are certified; 
 42.30     (4) amounts necessary to pay tort judgments against the 
 42.31  taxing authority that become final after the date the proposed 
 42.32  taxes are certified; and 
 42.33     (5) the contamination tax imposed on properties which 
 42.34  received market value reductions for contamination. 
 42.35     (f) Except as provided in subdivision 7, failure of the 
 42.36  county auditor to prepare or the county treasurer to deliver the 
 43.1   notice as required in this section does not invalidate the 
 43.2   proposed or final tax levy or the taxes payable pursuant to the 
 43.3   tax levy. 
 43.4      (g) If the notice the taxpayer receives under this section 
 43.5   lists the property as nonhomestead and the homeowner provides 
 43.6   satisfactory documentation to the county assessor that the 
 43.7   property is owned and used as the owner's homestead, the 
 43.8   assessor shall reclassify the property to homestead for taxes 
 43.9   payable in the following year. 
 43.10     (h) In the case of class 4 residential property used as a 
 43.11  residence for lease or rental periods of 30 days or more, the 
 43.12  taxpayer must either: 
 43.13     (1) mail or deliver a copy of the notice of proposed 
 43.14  property taxes to each tenant, renter, or lessee; or 
 43.15     (2) post a copy of the notice in a conspicuous place on the 
 43.16  premises of the property.  
 43.17     The notice must be mailed or posted by the taxpayer by 
 43.18  November 27 or within three days of receipt of the notice, 
 43.19  whichever is later.  A taxpayer may notify the county treasurer 
 43.20  of the address of the taxpayer, agent, caretaker, or manager of 
 43.21  the premises to which the notice must be mailed in order to 
 43.22  fulfill the requirements of this paragraph. 
 43.23     (i) For purposes of this subdivision, subdivisions 5a and 
 43.24  6, "metropolitan special taxing districts" means the following 
 43.25  taxing districts in the seven-county metropolitan area that levy 
 43.26  a property tax for any of the specified purposes listed below: 
 43.27     (1) metropolitan council under section 473.132, 473.167, 
 43.28  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 43.29     (2) metropolitan airports commission under section 473.667, 
 43.30  473.671, or 473.672; and 
 43.31     (3) metropolitan mosquito control commission under section 
 43.32  473.711. 
 43.33     For purposes of this section, any levies made by the 
 43.34  regional rail authorities in the county of Anoka, Carver, 
 43.35  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 43.36  398A shall be included with the appropriate county's levy and 
 44.1   shall be discussed at that county's public hearing. 
 44.2      (j) For taxes levied in 1996, payable in 1997 only, in the 
 44.3   case of a statutory or home rule charter city or town that 
 44.4   exercises the local levy option provided in section 473.388, 
 44.5   subdivision 7, the notice of its proposed taxes may include a 
 44.6   statement of the amount by which its proposed tax increase for 
 44.7   taxes payable in 1997 is attributable to its exercise of that 
 44.8   option, together with a statement that the levy of the 
 44.9   metropolitan council was decreased by a similar amount because 
 44.10  of the exercise of that option. 
 44.11     Sec. 3.  Minnesota Statutes 1996, section 275.065, is 
 44.12  amended by adding a subdivision to read: 
 44.13     Subd. 3a.  [CONSTANT SPENDING LEVY AMOUNT.] (a) For 
 44.14  purposes of this section, "constant spending levy amount" for a 
 44.15  county, city, town, or special taxing district means the 
 44.16  property tax levy that the taxing authority would need to levy 
 44.17  so that the sum of its levy, including its fiscal disparities 
 44.18  distribution levy under section 276A.06, subdivision 3, clause 
 44.19  (a), or 473F.08, subdivision 3, clause (a), plus its property 
 44.20  tax aid amounts would remain constant from the current year to 
 44.21  the proposed year, taking into account the fiscal disparities 
 44.22  distribution levy amounts and the property tax aid amounts that 
 44.23  have been certified for the proposed year.  For the purposes of 
 44.24  this paragraph, property tax aids include homestead and 
 44.25  agricultural credit aid under section 273.1398, subdivision 2, 
 44.26  local government aid under section 477A.013, local performance 
 44.27  aid under section 477A.05, county criminal justice aid under 
 44.28  section 477A.0121, and family preservation aid under section 
 44.29  477A.0122. 
 44.30     (b) For school districts, for the state education tax, 
 44.31  "constant spending levy amount" means the general education levy 
 44.32  that would be computed for the district using the current year's 
 44.33  state general education levy amount and the proposed year's 
 44.34  adjusted net tax capacity.  In order to make this calculation, 
 44.35  the commissioner of children, families, and learning shall 
 44.36  recalculate the statewide general education tax rate using the 
 45.1   current year's levy data, except the tax base shall be the 
 45.2   proposed year's adjusted net tax capacity.  For all other school 
 45.3   district levies, the commissioner shall compute the constant 
 45.4   spending levy amount by separately calculating each program levy 
 45.5   using the current year's levy data and the proposed year's tax 
 45.6   base and property tax aid amounts, and summing the resulting 
 45.7   amounts.  On or before September 30 annually, the commissioner 
 45.8   of children, families, and learning must report to the county 
 45.9   auditor each school district's constant spending state general 
 45.10  education levy and its constant spending levy amount for the 
 45.11  other school district levies.  
 45.12     Sec. 4.  Minnesota Statutes 1996, section 275.065, 
 45.13  subdivision 5a, is amended to read: 
 45.14     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
 45.15  population of more than 2,500, county, a metropolitan special 
 45.16  taxing district as defined in subdivision 3, paragraph (i), a 
 45.17  regional library district established under section 134.201, or 
 45.18  school district shall advertise in a newspaper a notice of its 
 45.19  intent to adopt a budget and property tax levy or, in the case 
 45.20  of a school district, to review its current budget and proposed 
 45.21  property taxes payable in the following year, at a public 
 45.22  hearing.  The notice must be published not less than two 
 45.23  business days nor more than six business days before the hearing.
 45.24     The advertisement must be at least one-eighth page in size 
 45.25  of a standard-size or a tabloid-size newspaper.  The 
 45.26  advertisement must not be placed in the part of the newspaper 
 45.27  where legal notices and classified advertisements appear.  The 
 45.28  advertisement must be published in an official newspaper of 
 45.29  general circulation in the taxing authority.  The newspaper 
 45.30  selected must be one of general interest and readership in the 
 45.31  community, and not one of limited subject matter.  The 
 45.32  advertisement must appear in a newspaper that is published at 
 45.33  least once per week.  
 45.34     For purposes of this section, the metropolitan special 
 45.35  taxing district's advertisement must only be published in the 
 45.36  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
 46.1      (b) The advertisement for school districts, metropolitan 
 46.2   special taxing districts, and regional library districts must be 
 46.3   in the following form, except that the notice for a school 
 46.4   district may include references to the current budget in regard 
 46.5   to proposed property taxes. 
 46.6                              "NOTICE OF
 46.7                       PROPOSED PROPERTY TAXES
 46.8             (City/County/School District/Metropolitan
 46.9                   Special Taxing District/Regional
 46.10                   Library District) of .........
 46.11  The governing body of ........ will soon hold budget hearings 
 46.12  and vote on the property taxes for (city/county/metropolitan 
 46.13  special taxing district/regional library district services that 
 46.14  will be provided in 199_/school (year)/school district services 
 46.15  that will be provided in 199_ (year) and 199_ (year)). 
 46.16                     NOTICE OF PUBLIC HEARING:
 46.17  All concerned citizens are invited to attend a public hearing 
 46.18  and express their opinions on the proposed (city/county/school 
 46.19  district/metropolitan special taxing district/regional library 
 46.20  district) budget and property taxes, or in the case of a school 
 46.21  district, its current budget and proposed property taxes, 
 46.22  payable in the following year.  The hearing will be held on 
 46.23  (Month/Day/Year) at (Time) at (Location, Address)." 
 46.24     (c) The advertisement for cities and counties must be in 
 46.25  the following form. 
 46.26                       "NOTICE OF PROPOSED
 46.27                 TOTAL BUDGET AND PROPERTY TAXES
 46.28  The (city/county) governing body or board of commissioners will 
 46.29  hold a public hearing to discuss the budget and to vote on the 
 46.30  amount of property taxes to collect for services the 
 46.31  (city/county) will provide in (year). 
 46.32     
 46.33  SPENDING:  The total budget amounts below compare 
 46.34  (city's/county's) (year) total actual budget with the amount the 
 46.35  (city/county) proposes to spend in (year). 
 46.36     
 47.1   (Year) Total          Proposed (Year)          Change from
 47.2   Actual Budget             Budget               (Year)-(Year)
 47.3     $.......              $.......                ...%
 47.4      
 47.5   TAXES:  The property tax amounts below compare that portion of 
 47.6   the current budget levied in property taxes in (city/county) for 
 47.7   (year) with the property taxes the (city/county) proposes to 
 47.8   collect in (year). 
 47.9      
 47.10  (Year) Property       Proposed (Year)          Change from
 47.11      Taxes              Property Taxes         (Year)-(Year)
 47.12      $.......              $.......                ...% 
 47.13     
 47.14                    ATTEND THE PUBLIC HEARING
 47.15  All (city/county) residents are invited to attend the public 
 47.16  hearing of the (city/county) to express your opinions on the 
 47.17  budget and the proposed amount of (year) property taxes.  The 
 47.18  hearing will be held on: 
 47.19                      (Month/Day/Year/Time)
 47.20                        (Location/Address)
 47.21  If the discussion of the budget cannot be completed, a time and 
 47.22  place for continuing the discussion will be announced at the 
 47.23  hearing.  You are also invited to send your written comments to: 
 47.24                          (City/County)
 47.25                       (Location/Address)"
 47.26     (d) For purposes of this subdivision, the budget amounts 
 47.27  listed on the advertisement mean: 
 47.28     (1) for cities, the total government fund expenditures, as 
 47.29  defined by the state auditor under section 471.6965, less any 
 47.30  expenditures for improvements or services that are specially 
 47.31  assessed or charged under chapter 429, 430, 435, or the 
 47.32  provisions of any other law or charter; and 
 47.33     (2) for counties, the total government fund expenditures, 
 47.34  as defined by the state auditor under section 375.169, less any 
 47.35  expenditures for direct payments to recipients or providers for 
 47.36  the human service aids listed in section 273.1398, subdivision 
 48.1   1, paragraph (i). 
 48.2      (c) (e) A city with a population of over 500 but not more 
 48.3   than 2,500 must advertise by posted notice as defined in section 
 48.4   645.12, subdivision 1.  The advertisement must be posted at the 
 48.5   time provided in paragraph (a).  It must be in the form required 
 48.6   in paragraph (b). 
 48.7      (d) (f) For purposes of this subdivision, the population of 
 48.8   a city is the most recent population as determined by the state 
 48.9   demographer under section 4A.02. 
 48.10     (e) (g) The commissioner of revenue, subject to the 
 48.11  approval of the chairs of the house and senate tax committees, 
 48.12  shall prescribe the form and format of the advertisement. 
 48.13     (f) For calendar year 1993, each taxing authority required 
 48.14  to publish an advertisement must include on the advertisement a 
 48.15  statement that information on the increases or decreases of the 
 48.16  total budget, including employee and independent contractor 
 48.17  compensation in the prior year, current year, and proposed 
 48.18  budget year will be discussed at the hearing. 
 48.19     (g) Notwithstanding paragraph (f), for 1993, the 
 48.20  commissioner of revenue shall prescribe the form, format, and 
 48.21  content of an advertisement comparing current and proposed 
 48.22  expense budgets for the metropolitan council, the metropolitan 
 48.23  airports commission, and the metropolitan mosquito control 
 48.24  commission.  The expense budget must include occupancy, 
 48.25  personnel, contractual and capital improvement expenses.  The 
 48.26  form, format, and content of the advertisement must be approved 
 48.27  by the chairs of the house and senate tax committees prior to 
 48.28  publication. 
 48.29     Sec. 5.  Minnesota Statutes 1996, section 275.16, is 
 48.30  amended to read: 
 48.31     275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 
 48.32     If any such municipality shall return to the county auditor 
 48.33  a levy greater than permitted by chapters 124, 124A, 124B, 136C, 
 48.34  and 136D, and sections 275.124 to 275.16, and sections 275.70 to 
 48.35  275.74, such county auditor shall extend only such amount of 
 48.36  taxes as the limitations herein prescribed will permit; 
 49.1   provided, if such levy shall include any levy for the payment of 
 49.2   bonded indebtedness or judgments, such levies for bonded 
 49.3   indebtedness or judgments shall be extended in full, and the 
 49.4   remainder of the levies shall be reduced so that the total 
 49.5   thereof, including levies for bonds and judgments, shall not 
 49.6   exceed such amount as the limitations herein prescribed will 
 49.7   permit.  
 49.8      Sec. 6.  [275.70] [LEVY LIMITATIONS; DEFINITIONS.] 
 49.9      Subdivision 1.  [APPLICATION.] For the purposes of sections 
 49.10  275.70 to 275.74, the following terms shall have these meanings, 
 49.11  unless provided otherwise. 
 49.12     Subd. 2.  [IMPLICIT PRICE DEFLATOR.] "Implicit price 
 49.13  deflator" means the implicit price deflator for government 
 49.14  purchases of goods and services for state and local governments 
 49.15  prepared by the bureau of economic analysis of the United States 
 49.16  Department of Commerce for the 12-month period ending in June of 
 49.17  the levy year. 
 49.18     Subd. 3.  [LOCAL GOVERNMENTAL UNIT.] "Local governmental 
 49.19  unit" means a county, or a statutory or home rule charter city. 
 49.20     Subd. 4.  [POPULATION AND HOUSEHOLD ESTIMATES.] "Population"
 49.21  or "number of households" means the population or number of 
 49.22  households for the local governmental unit as established by the 
 49.23  last federal census, by a census taken under section 275.14, or 
 49.24  by an estimate made by the metropolitan council or by the state 
 49.25  demographer under section 4A.02, whichever is most recent as to 
 49.26  the stated date of the count or estimate up to and including 
 49.27  July 1 of the current levy year. 
 49.28     Subd. 5.  [SPECIAL LEVIES.] "Special levies" means those 
 49.29  portions of ad valorem taxes levied by a local governmental unit 
 49.30  for the following purposes or in the following manner: 
 49.31     (1) to pay the costs of the principal and interest on 
 49.32  bonded indebtedness or to reimburse for the amount of liquor 
 49.33  store revenues used to pay the principal and interest due on 
 49.34  municipal liquor store bonds in the year preceding the year for 
 49.35  which the levy limit is calculated; 
 49.36     (2) to pay the costs of principal and interest on 
 50.1   certificates of indebtedness issued for any corporate purpose 
 50.2   except for the following: 
 50.3      (i) tax anticipation or aid anticipation certificates of 
 50.4   indebtedness; 
 50.5      (ii) certificates of indebtedness issued under sections 
 50.6   298.28 and 298.282; 
 50.7      (iii) certificates of indebtedness used to fund current 
 50.8   expenses or to pay the costs of extraordinary expenditures that 
 50.9   result from a public emergency; or 
 50.10     (iv) certificates of indebtedness used to fund an 
 50.11  insufficiency in tax receipts or an insufficiency in other 
 50.12  revenue sources; 
 50.13     (3) to provide for the bonded indebtedness portion of 
 50.14  payments made to another political subdivision of the state of 
 50.15  Minnesota; 
 50.16     (4) to fund payments made to the Minnesota state armory 
 50.17  building commission under section 193.145, subdivision 2, to 
 50.18  retire the principal and interest on armory construction bonds; 
 50.19  and 
 50.20     (5) property taxes approved by voters which are levied 
 50.21  against the referendum market value as provided under section 
 50.22  275.61. 
 50.23     Sec. 7.  [275.71] [LEVY LIMITS.] 
 50.24     Subdivision 1.  [LIMIT ON LEVIES.] Notwithstanding any 
 50.25  other provision of law or municipal charter to the contrary 
 50.26  which authorize ad valorem taxes in excess of the limits 
 50.27  established by sections 275.70 to 275.74, the provision of this 
 50.28  section shall apply to local governmental units for all purposes 
 50.29  other than those for which special levies and special 
 50.30  assessments are made. 
 50.31     Subd. 2.  [LEVY LIMIT BASE.] (a) The levy limit base for a 
 50.32  local governmental unit for taxes levied in 1997 shall be equal 
 50.33  to the sum of: 
 50.34     (1) the amount the local governmental unit levied in 1996, 
 50.35  less any amount levied for debt, as reported to the department 
 50.36  of revenue under section 275.62, subdivision 1, clause (1), and 
 51.1   less any tax levied in 1996 against market value as provided for 
 51.2   in section 275.61; 
 51.3      (2) the amount of aids the local governmental unit was 
 51.4   certified to receive in calendar year 1997 under sections 
 51.5   477A.011 to 477A.03 before any reductions for state tax 
 51.6   increment financing aid under section 273.1399, subdivision 5; 
 51.7      (3) the amount of homestead and agricultural credit aid the 
 51.8   local governmental unit was certified to receive under section 
 51.9   273.1398 in calendar year 1997 before any reductions for tax 
 51.10  increment financing aid under section 273.1399, subdivision 5; 
 51.11     (4) the amount of local performance aid the local 
 51.12  governmental unit was certified to receive in calendar year 1997 
 51.13  under section 477A.05; and 
 51.14     (5) the amount of any payments certified to the local 
 51.15  government unit in 1997 under sections 298.28 and 298.282. 
 51.16     If a governmental unit was not required to report under 
 51.17  section 275.62 for taxes levied in 1997, the commissioner shall 
 51.18  request information on levies used for debt from the local 
 51.19  governmental unit and adjust its levy limit base accordingly. 
 51.20     (b) The levy limit base for a local governmental unit for 
 51.21  taxes levied in 1998 and subsequent years is limited to its 
 51.22  adjusted levy limit base in the previous year, subject to any 
 51.23  adjustments under section 275.72. 
 51.24     Subd. 3.  [ADJUSTED LEVY LIMIT BASE.] For taxes levied in 
 51.25  1997 and subsequent years the adjusted levy limit is equal to 
 51.26  the levy limit base computed under subdivision 2, increased by: 
 51.27     (a) a percentage equal to the percentage growth in the 
 51.28  implicit price deflator; and 
 51.29     (b) a percentage equal to the percentage increase in number 
 51.30  of households, if any, for the most recent 12-month period for 
 51.31  which data is available. 
 51.32     Subd. 4.  [PROPERTY TAX LEVY LIMIT.] For taxes levied in 
 51.33  1997 and subsequent years, the property tax levy limit for a 
 51.34  local governmental unit is equal to its adjusted levy limit base 
 51.35  determined under subdivision 3, reduced by the sum of (a) the 
 51.36  total amount of aids that the local governmental unit is 
 52.1   certified to receive under sections 477A.011 to 477A.014, (b) 
 52.2   homestead and agricultural aids it is certified to receive under 
 52.3   section 273.1398, (c) local performance aid it is certified to 
 52.4   receive under section 477A.05, and (d) taconite aids under 
 52.5   sections 298.28 and 298.282 including any aid which was required 
 52.6   to be placed in a special fund for expenditure in the next 
 52.7   succeeding year.  If a local governmental unit imposes an 
 52.8   additional levy under section 275.73, its levy under this limit 
 52.9   shall be split between an amount levied on net tax capacity and 
 52.10  an amount levied on referendum market value as provided for 
 52.11  under subdivision 5. 
 52.12     Subd. 5.  [LEVY LIMITS WITH A REFERENDUM LEVY.] In a year 
 52.13  that a local governmental unit imposes an additional levy under 
 52.14  section 275.73, the amount it levied in the previous year under 
 52.15  subdivision 4 shall be levied against net tax capacity.  Any 
 52.16  additional levy under this section or section 275.73 shall be 
 52.17  levied against referendum market value. 
 52.18     Subd. 6.  [LEVIES IN EXCESS OF LEVY LIMITS.] If the levy 
 52.19  made by a city exceeds the levy limit provided in sections 
 52.20  275.70 to 275.74, except when the excess levy is due to the 
 52.21  rounding of the rate in accordance with section 275.28, the 
 52.22  county auditor shall only extend the amount of taxes permitted 
 52.23  under sections 6 to 9 and 11, as provided for in section 275.16. 
 52.24     Sec. 8.  [275.72] [LEVY LIMIT ADJUSTMENTS FOR CONSOLIDATION 
 52.25  AND ANNEXATION.] 
 52.26     Subdivision 1.  [ADJUSTMENTS FOR CONSOLIDATION.] If all of 
 52.27  the area included in two or more local governmental units is 
 52.28  consolidated, merged, or otherwise combined to constitute a 
 52.29  single governmental unit, the levy limit base for the resulting 
 52.30  governmental unit in the first levy year in which the 
 52.31  consolidation is effective shall be equal to (a) the highest tax 
 52.32  rate in any of the merging governmental units in the previous 
 52.33  year multiplied by the net tax capacity of all the merging 
 52.34  governmental units in the previous year, minus (b) the sum of 
 52.35  all levies in the merging governmental units in the previous 
 52.36  year that qualify as special levies under section 275.70, 
 53.1   subdivision 3. 
 53.2      Subd. 2.  [ADJUSTMENTS FOR ANNEXATION.] If a local 
 53.3   governmental unit increases its tax base through annexation of 
 53.4   an area which is not the area of an entire local governmental 
 53.5   unit, the levy limit base of the local governmental unit in the 
 53.6   first year in which the annexation is effective shall be equal 
 53.7   to its adjusted levy limit base from the previous year 
 53.8   multiplied by the ratio of the net tax capacity in the local 
 53.9   governmental unit after the annexation compared to its net tax 
 53.10  capacity before the annexation. 
 53.11     Subd. 3.  [TRANSFER OF GOVERNMENTAL FUNCTIONS.] If a 
 53.12  function or service of one local governmental unit is 
 53.13  transferred to another local governmental unit, the levy limits 
 53.14  established under section 3 shall be adjusted by the 
 53.15  commissioner of revenue in such manner so as to fairly and 
 53.16  equitably reflect the reduced or increased property tax burden 
 53.17  resulting from the transfer.  The aggregate of the adjusted 
 53.18  limitations shall not exceed the aggregate of the limitations 
 53.19  prior to adjustment. 
 53.20     Subd. 4.  [EFFECTIVE DATE FOR LEVY LIMITS PURPOSES.] 
 53.21  Annexations, mergers, and shifts in services and functional 
 53.22  responsibilities that are effective by June 30 of the levy year 
 53.23  are included in the calculation of the levy limit for that levy 
 53.24  year.  Annexations, mergers, and shifts in services and 
 53.25  functional responsibilities that are effective after June 30 of 
 53.26  a levy year are not included in the calculation of the levy 
 53.27  limit until the subsequent levy year. 
 53.28     Sec. 9.  [275.73] [ELECTIONS FOR ADDITIONAL LEVIES ASSESSED 
 53.29  ON MARKET VALUES.] 
 53.30     Subdivision 1.  [ADDITIONAL LEVY AUTHORIZATION.] 
 53.31  Notwithstanding the provisions of sections 275.70 to 275.72, but 
 53.32  subject to other law or charter provisions establishing other 
 53.33  limitations on the amount of property taxes a local governmental 
 53.34  unit may levy, a local governmental unit may levy an additional 
 53.35  levy in any amount which is approved by the majority of voters 
 53.36  of the governmental unit voting on the question at a general or 
 54.1   special election.  Any levy authorized under this section shall 
 54.2   be levied against the referendum market value as provided in 
 54.3   section 275.71, subdivision 5, and section 275.61.  When the 
 54.4   governing body of the local governmental unit resolves to 
 54.5   increase the levy pursuant to this section, it shall provide for 
 54.6   submission of the proposition of an additional levy at a general 
 54.7   or special election.  Notice of the election shall be given in 
 54.8   the manner required by law.  The notice shall state the purpose 
 54.9   and the maximum yearly amount of the additional levy. 
 54.10     Subd. 2.  [LEVY EFFECTIVE DATE.] An additional levy 
 54.11  approved under subdivision 1 at a general or special election 
 54.12  held prior to October 1 in any levy year may be levied in that 
 54.13  same levy year and subsequent levy years.  An additional levy 
 54.14  approved under subdivision 1 at a general or special election 
 54.15  held after September 30 in any levy year shall not be levied in 
 54.16  that same levy but may be levied in subsequent levy years. 
 54.17     Sec. 10.  [275.74] [STATE REGULATION OF LEVIES.] 
 54.18     The commissioner of revenue shall make all necessary 
 54.19  calculations for determining levy limits for local governmental 
 54.20  units and notify the affected governmental units of their levy 
 54.21  limits directly by August 1 of each levy year.  In addition, the 
 54.22  commissioner of revenue shall notify all county auditors of the 
 54.23  levy limits imposed on local governmental units located within 
 54.24  their boundaries so that they may fix the levies as required in 
 54.25  section 275.16.  The local governmental units shall provide the 
 54.26  commissioner of revenue with all information that the 
 54.27  commissioner deems necessary to make the calculations provided 
 54.28  for in sections 275.70 to 275.73. 
 54.29     Sec. 11.  Minnesota Statutes 1996, section 276.04, 
 54.30  subdivision 2, is amended to read: 
 54.31     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 54.32  shall provide for the printing of the tax statements.  The 
 54.33  commissioner of revenue shall prescribe the form of the property 
 54.34  tax statement and its contents.  The statement must contain a 
 54.35  tabulated statement of the dollar amount due to each taxing 
 54.36  authority and the state from the parcel of real property for 
 55.1   which a particular tax statement is prepared.  The dollar 
 55.2   amounts due the county, state general education tax, the 
 55.3   remaining school district amount, township or municipality, the 
 55.4   total of the metropolitan special taxing districts as defined in 
 55.5   section 275.065, subdivision 3, paragraph (i), school district 
 55.6   excess referenda levy, remaining school district levy, and the 
 55.7   total of other voter approved referenda levies based on market 
 55.8   value under section 275.61 must be separately stated.  The 
 55.9   amounts due all other special taxing districts, if any, may be 
 55.10  aggregated.  For the purposes of this subdivision, "school 
 55.11  district excess referenda levy" means school district taxes for 
 55.12  operating purposes approved at referenda, including those taxes 
 55.13  based on net tax capacity as well as those based on market 
 55.14  value. "School district excess referenda levy" does not include 
 55.15  school district taxes for capital expenditures approved at 
 55.16  referendums or school district taxes to pay for the debt service 
 55.17  on bonds approved at referenda.  The amount of the tax on 
 55.18  contamination value imposed under sections 270.91 to 270.98, if 
 55.19  any, must also be separately stated.  The dollar amounts, 
 55.20  including the dollar amount of any special assessments, may be 
 55.21  rounded to the nearest even whole dollar.  For purposes of this 
 55.22  section whole odd-numbered dollars may be adjusted to the next 
 55.23  higher even-numbered dollar.  The amount of market value 
 55.24  excluded under section 273.11, subdivision 16, if any, must also 
 55.25  be listed on the tax statement.  The statement shall include the 
 55.26  following sentence sentences, printed in upper case letters in 
 55.27  boldface print:  "EVEN THOUGH THE STATE OF MINNESOTA DOES NOT 
 55.28  RECEIVE ANY PROPERTY TAX REVENUES, IT DETERMINES THE AMOUNT OF 
 55.29  THE GENERAL EDUCATION LEVY.  THE STATE OF MINNESOTA REDUCES YOUR 
 55.30  PROPERTY TAX BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS 
 55.31  OF GOVERNMENT." 
 55.32     (b) The property tax statements for manufactured homes and 
 55.33  sectional structures taxed as personal property shall contain 
 55.34  the same information that is required on the tax statements for 
 55.35  real property.  
 55.36     (c) Real and personal property tax statements must contain 
 56.1   the following information in the order given in this paragraph.  
 56.2   The information must contain the current year tax information in 
 56.3   the right column with the corresponding information for the 
 56.4   previous year in a column on the left: 
 56.5      (1) the property's estimated market value under section 
 56.6   273.11, subdivision 1; 
 56.7      (2) the property's taxable market value after reductions 
 56.8   under section 273.11, subdivisions 1a and 16; 
 56.9      (3) the property's gross tax, calculated by multiplying the 
 56.10  property's gross tax capacity times the total local tax rate and 
 56.11  adding the property's total property tax to the result the sum 
 56.12  of the aids enumerated in clause (4); 
 56.13     (4) a total of the following aids: 
 56.14     (i) education aids payable under chapters 124 and 124A; and 
 56.15     (ii) local government aids for cities, towns, and counties 
 56.16  under chapter 477A; and 
 56.17     (iii) disparity reduction aid under section 273.1398; 
 56.18     (5) for homestead residential and agricultural properties, 
 56.19  the homestead and agricultural credit aid apportioned to the 
 56.20  property.  This amount is obtained by multiplying the total 
 56.21  local tax rate by the difference between the property's gross 
 56.22  and net tax capacities under section 273.13.  This amount must 
 56.23  be separately stated and identified as "homestead and 
 56.24  agricultural credit."  For purposes of comparison with the 
 56.25  previous year's amount for the statement for taxes payable in 
 56.26  1990, the statement must show the homestead credit for taxes 
 56.27  payable in 1989 under section 273.13, and the agricultural 
 56.28  credit under section 273.132 for taxes payable in 1989; 
 56.29     (6) (5) any credits received under sections 273.119; 
 56.30  273.123; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; 
 56.31  and 473H.10, except that the amount of credit received under 
 56.32  section 273.135 must be separately stated and identified as 
 56.33  "taconite tax relief"; and 
 56.34     (7) (6) the net tax payable in the manner required in 
 56.35  paragraph (a). 
 56.36     (d) If the county uses envelopes for mailing property tax 
 57.1   statements and if the county agrees, a taxing district may 
 57.2   include a notice with the property tax statement notifying 
 57.3   taxpayers when the taxing district will begin its budget 
 57.4   deliberations for the current year, and encouraging taxpayers to 
 57.5   attend the hearings.  If the county allows notices to be 
 57.6   included in the envelope containing the property tax statement, 
 57.7   and if more than one taxing district relative to a given 
 57.8   property decides to include a notice with the tax statement, the 
 57.9   county treasurer or auditor must coordinate the process and may 
 57.10  combine the information on a single announcement.  
 57.11     The commissioner of revenue shall certify to the county 
 57.12  auditor the actual or estimated aids enumerated in clauses (3) 
 57.13  and clause (4) that local governments will receive in the 
 57.14  following year.  In the case of a county containing a city of 
 57.15  the first class, for taxes levied in 1991, and for all counties 
 57.16  for taxes levied in 1992 and thereafter, The commissioner must 
 57.17  certify this amount by September 1 of each year.  
 57.18     Sec. 12.  [EFFECTIVE DATE.] 
 57.19     Sections 1 to 3 are effective for notices prepared 
 57.20  beginning in 1997 for taxes payable in 1998 and thereafter. 
 57.21     Section 4 is effective for newspaper advertisements 
 57.22  prepared beginning in 1997, for taxes payable in 1998, and 
 57.23  thereafter. 
 57.24     Sections 5 to 10 are effective for property taxes levied in 
 57.25  1997 and thereafter, payable in 1998 and thereafter. 
 57.26     Section 11 is effective for property tax statements 
 57.27  prepared in 1998 and thereafter.