SF 1782

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

  1.1                          A bill for an act 
  1.2             relating to the financing of government in this state; 
  1.3             changing property tax classifications and class rates; 
  1.4             changing the property tax refund to an income-adjusted 
  1.5             homestead credit; changing targeting; restructuring 
  1.6             various state aids; changing the local government aid 
  1.7             formula; providing for payment of property taxes in 
  1.8             three installments; allowing cities to impose certain 
  1.9             service charges on certain tax-exempt property; 
  1.10            appropriating money; amending Minnesota Statutes 1994, 
  1.11            sections 124.226, subdivision 1; 124A.23, subdivision 
  1.12            1; 256E.06, subdivision 13; 273.1316, subdivisions 1, 
  1.13            6, and 7; 273.1392; 275.065, subdivision 3; 275.07, 
  1.14            subdivision 1; 275.08, subdivision 1b; 276.04, 
  1.15            subdivision 3; 276.09; 276.10; 276.11, subdivision 1; 
  1.16            276.111; 278.03, subdivision 1; 278.05, subdivision 5; 
  1.17            279.01, by adding subdivisions; 289A.18, subdivision 
  1.18            5; 289A.56, subdivision 6; 290A.01; 290A.03, 
  1.19            subdivisions 6 and 13; 290A.04, subdivisions 2 and 2h; 
  1.20            290A.07; 290A.23; 477A.011, subdivision 1a, and by 
  1.21            adding subdivisions; 477A.013, subdivision 1, and by 
  1.22            adding a subdivision; 477A.014, subdivisions 1 and 3; 
  1.23            and 477A.03, subdivision 2; proposing coding for new 
  1.24            law in Minnesota Statutes, chapters 273; 429; and 
  1.25            477A; repealing Minnesota Statutes 1994, sections 
  1.26            273.124; 273.13; 273.1398; 275.08, subdivisions 1c and 
  1.27            1d; 279.01, subdivisions 1 and 3; 290A.04, 
  1.28            subdivisions 2b and 2i; 290A.23, subdivision 2; 
  1.29            477A.011, subdivisions 19, 28, and 29; 477A.012; 
  1.30            477A.013, subdivisions 6, 8, and 9; 477A.014, 
  1.31            subdivision 1a; and 477A.03, subdivision 3. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33                             ARTICLE 1 
  1.34             PROPERTY TAX CLASSIFICATION AND VALUATION 
  1.35     Section 1.  [273.126] [DEFINITIONS.] 
  1.36     Subdivision 1.  [APPLICATION.] The definitions listed in 
  1.37  subdivisions 2 to 11 must be used in classifying property under 
  1.38  section 273.127. 
  2.1      Subd. 2.  [CLASS RATE.] Wherever the "class rate" of a 
  2.2   class of property is specified without qualification as to 
  2.3   whether it is the property's "net class rate" or its "gross 
  2.4   class rate," the "net class rate" and "gross class rate" of that 
  2.5   property are the same as its "class rate." 
  2.6      Subd. 3.  [NET TAX CAPACITY.] "Net tax capacity" means the 
  2.7   product of the appropriate class rate multiplied by the market 
  2.8   value of the property. 
  2.9      Subd. 4.  [RESIDENTIAL PROPERTY.] "Residential property" 
  2.10  means:  
  2.11     (1) a property containing one, two, or three dwelling 
  2.12  units; 
  2.13     (2) apartment buildings containing four or more dwelling 
  2.14  units; 
  2.15     (3) hospitals as defined in section 144.50, subdivision 2; 
  2.16     (4) seasonal residential recreational property used for 
  2.17  noncommercial purposes; and 
  2.18     (5) seasonal residential recreational property used for 
  2.19  commercial purposes for up to 250 days in the year preceding the 
  2.20  year of assessment.  
  2.21     For purposes of this subdivision, property is devoted to a 
  2.22  commercial purpose on a specific day if any portion of the 
  2.23  property is used for residential occupancy and a fee is charged 
  2.24  for residential occupancy.  
  2.25     Subd. 5.  [AGRICULTURAL LAND.] "Agricultural land" means 
  2.26  contiguous acreage of ten acres or more, primarily used during 
  2.27  the preceding year for agricultural purposes.  Agricultural land 
  2.28  may include slough, pasture, timber, wasteland, unusable wild 
  2.29  land, land included in state or federal farm programs, and 
  2.30  woodland contiguous to or surrounded by agricultural land. 
  2.31     Subd. 6.  [AGRICULTURAL PURPOSES.] "Agricultural purposes" 
  2.32  means the raising or cultivation of agricultural products, 
  2.33  including:  (1) livestock, dairy animals, dairy products, 
  2.34  poultry and poultry products, fur-bearing animals, horticultural 
  2.35  and nursery stock described in sections 18.44 to 18.61, fruit of 
  2.36  all kinds, vegetables, forage, grains, bees, and apiary products 
  3.1   produced by the owner; (2) fish bred for sale and consumption if 
  3.2   the fish breeding occurs on land zoned for agricultural use; (3) 
  3.3   the commercial boarding of horses if the boarding is done in 
  3.4   conjunction with the raising or cultivation of agricultural 
  3.5   products as defined in clause (1); and (4) property which is 
  3.6   owned and operated by nonprofit organizations used for 
  3.7   equestrian activities, excluding racing.  
  3.8      If a parcel used for agricultural purposes is also used for 
  3.9   commercial or industrial purposes, including but not limited to: 
  3.10  (i) wholesale and retail sales; (ii) processing of raw 
  3.11  agricultural products or other goods; (iii) warehousing or 
  3.12  storage of processed goods; and (iv) office facilities for the 
  3.13  support of the activities enumerated in items (i), (ii), and 
  3.14  (iii); the assessor shall classify that portion of the parcel 
  3.15  used for agricultural purposes as class 1, and the remainder of 
  3.16  the property as commercial or industrial.  The first $100,000 
  3.17  market value of the commercial or industrial portion shall be 
  3.18  class 2 and the commercial or industrial market value in excess 
  3.19  of $100,000 shall be class 3.  The grading, sorting, and 
  3.20  packaging of raw agricultural products for first sale is 
  3.21  considered an agricultural purpose.  A greenhouse or other 
  3.22  building where horticultural or nursery products are grown that 
  3.23  is also used for the conduct of retail sales must be classified 
  3.24  as agricultural if it is primarily used for the growing of 
  3.25  horticultural or nursery products from seed, cuttings, or roots 
  3.26  and occasionally as a showroom for the retail sale of those 
  3.27  products.  Use of a greenhouse or building only for the display 
  3.28  of already grown horticultural or nursery products does not 
  3.29  qualify as an agricultural purpose.  
  3.30     The assessor shall determine and list separately on the 
  3.31  records the market value of any residential dwelling and the one 
  3.32  acre of land on which that dwelling is located.  If any farm 
  3.33  buildings or structures are located on this acre of land, their 
  3.34  market value shall not be included in this separate 
  3.35  determination.  
  3.36     Subd. 7.  [TIMBERLAND PROPERTY.] "Timberland property" is 
  4.1   real estate, rural in character and used exclusively for growing 
  4.2   trees for timber, lumber, and wood and wood products. 
  4.3      Subd. 8.  [SEASONAL RESIDENTIAL RECREATIONAL PROPERTY.] 
  4.4   "Seasonal residential recreational property" is: 
  4.5      (1) real property devoted to temporary and seasonal 
  4.6   residential occupancy for recreation purposes; and 
  4.7      (2) real property devoted to temporary and seasonal 
  4.8   residential occupancy for recreation purposes and not devoted to 
  4.9   commercial purposes for more than 250 days in the year preceding 
  4.10  the year of assessment. 
  4.11     For purposes of clause (2), property is devoted to a 
  4.12  commercial purpose on a specific day if any portion of the 
  4.13  property is used for residential occupancy, and a fee is charged 
  4.14  for residential occupancy.  Clause (2) also includes commercial 
  4.15  use real property used exclusively for recreational purposes, up 
  4.16  to a total of two acres, provided the property is not devoted to 
  4.17  commercial recreational use for more than 250 days in the year 
  4.18  preceding the year of assessment and is located within two miles 
  4.19  of the seasonal residential property with which it is used. 
  4.20     Owners of real property devoted to temporary and seasonal 
  4.21  residential occupancy for recreation purposes and all or a 
  4.22  portion of which was devoted to commercial purposes for not more 
  4.23  than 250 days in the year preceding the year of assessment 
  4.24  desiring a class 1 classification, must submit a declaration to 
  4.25  the assessor designating the cabins or units occupied for 250 
  4.26  days or less in the year preceding the year of assessment by 
  4.27  January 15 of the assessment year.  Those cabins or units and a 
  4.28  proportionate share of the land on which they are located will 
  4.29  be designated class 1, provided that the area of the property 
  4.30  receiving class 1 treatment must not exceed 100 feet of 
  4.31  lakeshore footage for each cabin or campsite located on the 
  4.32  property up to a total of 800 feet and 500 feet in depth, 
  4.33  measured away from the lakeshore.  The remainder of the cabins 
  4.34  or units and a proportionate share of the land on which they are 
  4.35  located in excess of the 800 feet by 500 feet area limitation 
  4.36  will be designated as class 2.  If so requested, the owner of 
  5.1   property desiring designation as class 1 property must provide 
  5.2   to the assessor guest registers or other records demonstrating 
  5.3   that the units for which class 1 designation is sought were not 
  5.4   occupied for more than 250 days in the second year preceding the 
  5.5   assessment and are located within the allowable 500 feet by 800 
  5.6   feet area limitation.  The portion of a property operated as a 
  5.7   restaurant, bar, gift shop, and other nonresidential facility 
  5.8   operated on a commercial basis not directly related to temporary 
  5.9   and seasonal residential occupancy for recreation purposes shall 
  5.10  be class 3 property. 
  5.11     Subd. 9.  [NONPROFIT COMMUNITY SERVICE ORIENTED 
  5.12  ORGANIZATION.] "Nonprofit community service oriented 
  5.13  organization" means real property up to a maximum of one acre of 
  5.14  land owned by a nonprofit community service oriented 
  5.15  organization.  The property must not be used for a 
  5.16  revenue-producing activity for more than six days in the 
  5.17  calendar year preceding the year of assessment, and the property 
  5.18  must not be used for residential purposes on either a temporary 
  5.19  or permanent basis.  For purposes of this subdivision, a 
  5.20  nonprofit community service oriented organization means any 
  5.21  corporation, society, association, foundation, or institution 
  5.22  organized and operated exclusively for charitable, religious, 
  5.23  fraternal, civic, or educational purposes, and which is exempt 
  5.24  from federal income taxation pursuant to section 501(c)(3), 
  5.25  (10), or (19) of the Internal Revenue Code of 1986, as amended 
  5.26  through December 31, 1994.  For purposes of this subdivision, 
  5.27  "revenue-producing activities" includes but is not limited to 
  5.28  property, or that part of the property, that is used as an 
  5.29  on-sale intoxicating liquor or nonintoxicating malt liquor 
  5.30  establishment licensed under chapter 340A, a restaurant open to 
  5.31  the public, bowling alley, a retail store, gambling conducted by 
  5.32  organizations licensed under chapter 349, an insurance business, 
  5.33  or office or other space leased or rented to a lessee who 
  5.34  conducts a for-profit enterprise on the premises.  The use of 
  5.35  the property for social events open exclusively to members and 
  5.36  their guests for periods of less than 24 hours, when an 
  6.1   admission is not charged nor any revenues are received by the 
  6.2   organization, is not considered a revenue-producing activity. 
  6.3      Subd. 10.  [POST-SECONDARY STUDENT HOUSING.] 
  6.4   "Post-secondary student housing" means post-secondary housing of 
  6.5   not more than one acre of land that is owned by a nonprofit 
  6.6   corporation organized under chapter 317A and is used exclusively 
  6.7   by a student cooperative, sorority, or fraternity for on-campus 
  6.8   housing or housing located within two miles of the border of a 
  6.9   college campus. 
  6.10     Subd. 11.  [MANUFACTURED HOME PARK.] "Manufactured home 
  6.11  park" means any site, lot, field, or tract of land upon which 
  6.12  two or more occupied manufactured homes are located, either free 
  6.13  of charge or for compensation, and includes any building, 
  6.14  structure, tent, vehicle, or enclosure used or intended for use 
  6.15  as part of the equipment of the manufactured home park. 
  6.16     Sec. 2.  [273.127] [VALUATION AND CLASSIFICATION OF 
  6.17  PROPERTY.] 
  6.18     Subdivision 1.  [MANNER OF VALUATION AND 
  6.19  CLASSIFICATION.] All real and personal property subject to a 
  6.20  general property tax and not subject to a gross earnings or 
  6.21  other fee in lieu of tax, is classified as provided by this 
  6.22  section.  
  6.23     Subd. 2.  [CLASS 1.] Class 1 property must be valued at 100 
  6.24  percent of market value, and has a class rate of one percent.  
  6.25  Class 1 property includes: 
  6.26     (1) agricultural land and improvements; 
  6.27     (2) timberland property; and 
  6.28     (3) that portion of seasonal residential recreational 
  6.29  property defined under section 273.126, subdivision 8, clause 
  6.30  (2), within the 800 feet by 500 feet area limitation. 
  6.31     The combined market value of each house, garage, and the 
  6.32  immediately surrounding one acre of land located on the 
  6.33  agricultural property which is occupied by the owner as a 
  6.34  homestead or is the residential unit occupied by the manager or 
  6.35  caretaker of the seasonal residential recreational property 
  6.36  under section 273.126, subdivision 8, clause (2), are class 2 
  7.1   property. 
  7.2      Subd. 3.  [CLASS 2.] Class 2 property must be valued at 100 
  7.3   percent of market value, and has a class rate of two percent.  
  7.4   Class 2 property includes: 
  7.5      (1) all residential property, including single family 
  7.6   homes, duplexes, triplexes, and residential real estate with 
  7.7   four or more units which is used or held for use by the owner, 
  7.8   or by the tenants or lessees of the owner, as a residence for 
  7.9   rental periods of 30 days or more.  All taxable residential 
  7.10  property which is subsidized through any form of state or 
  7.11  federal public financing is also included in class 2; 
  7.12     (2) that portion of the market value of commercial, 
  7.13  industrial, and utility property that does not exceed $100,000 
  7.14  market value.  In the case of state-assessed commercial, 
  7.15  industrial, and utility property owned by one person or entity, 
  7.16  only one parcel is eligible for the two percent class rate on 
  7.17  the first $100,000 of market value.  In the case of other 
  7.18  commercial, industrial, and utility property owned by one person 
  7.19  or entity, only one parcel in each county is eligible for the 
  7.20  two percent class rate on the first $100,000 of market value; 
  7.21     (3) employment property defined in section 469.166, during 
  7.22  the period provided in section 469.170; 
  7.23     (4) that portion of the market value of employment property 
  7.24  located in a border city enterprise zone designated under 
  7.25  section 469.168, subdivision 4, paragraph (c), that does not 
  7.26  exceed $100,000 market value; 
  7.27     (5) manufactured home parks of four or more units; 
  7.28     (6) that portion of the market value of commercial 
  7.29  residential recreational property used for less than 250 days in 
  7.30  the previous year's assessment as defined under section 273.126, 
  7.31  subdivision 8, clause (2), which is in excess of the 800 feet by 
  7.32  500 feet area limitation; 
  7.33     (7) that portion of the market value of commercial 
  7.34  residential recreational property under section 273.126, 
  7.35  subdivision 8, clause (2), which is occupied by the owner as a 
  7.36  homestead or is the residential unit occupied by the manager or 
  8.1   caretaker; 
  8.2      (8) real property up to a maximum of one acre of land owned 
  8.3   by a nonprofit community service oriented organization; and 
  8.4      (9) post-secondary student housing. 
  8.5      For purposes of determining the market value for all rental 
  8.6   housing, the assessor shall determine the market value by using 
  8.7   the normal approach to value and using normal unrestricted rents.
  8.8      Subd. 4.  [CLASS 3.] Class 3 property must be valued at 100 
  8.9   percent of market value, and has a class rate of four percent.  
  8.10  Class 3 property includes:  
  8.11     (1) that portion of the market value of commercial, 
  8.12  industrial, and utility property in excess of the first $100,000 
  8.13  market value provided under subdivision 3, clause (2); 
  8.14     (2) that portion of employment property defined in section 
  8.15  469.166 in excess of the first $100,000 market value provided in 
  8.16  subdivision 3, clause (4); 
  8.17     (3) tools, implements, and machinery of an electric 
  8.18  generating system transporting or distributing water, gas, crude 
  8.19  oil, or petroleum products or mains and pipes used in the 
  8.20  distribution of steam or hot or chilled water for heating or 
  8.21  cooling buildings, which are fixtures; 
  8.22     (4) unmined iron ore and low-grade iron-bearing formations 
  8.23  as defined in section 273.14; and 
  8.24     (5) all other property not otherwise classified. 
  8.25     Subd. 5.  [CLASSIFICATION OF UNIMPROVED PROPERTY.] (a) 
  8.26  Except as provided in paragraph (b), real property that is not 
  8.27  improved with a structure must be classified according to its 
  8.28  highest and best use permitted under the local zoning 
  8.29  ordinance.  If the ordinance permits more than one use, the land 
  8.30  must be classified according to the highest and best use 
  8.31  permitted under the ordinance.  If no such ordinance exists, the 
  8.32  assessor shall consider the most likely potential use of the 
  8.33  unimproved land based upon the use made of surrounding land or 
  8.34  land in proximity to the unimproved land. 
  8.35     (b) Real property that is not improved with a structure and 
  8.36  is in commercial, industrial, or agricultural use under this 
  9.1   section must be classified according to its actual use. 
  9.2      Subd. 6.  [MULTI-USE PROPERTY.] In the case of multi-use 
  9.3   property, the assessor shall apportion the valuation and 
  9.4   classification according to the uses of the property. 
  9.5      Sec. 3.  Minnesota Statutes 1994, section 273.1316, 
  9.6   subdivision 1, is amended to read: 
  9.7      Subdivision 1.  [DENIAL OF RENTAL CLASSIFICATION.] A 
  9.8   building that is classified as residential rental property under 
  9.9   section 273.13 273.126, subdivision 25 4, and that is determined 
  9.10  to be substandard under this section is assessed as provided in 
  9.11  at the class rate applicable to it under Minnesota Statutes 
  9.12  1988, section 273.13, subdivision 25, paragraph (e). 
  9.13     Sec. 4.  Minnesota Statutes 1994, section 273.1316, 
  9.14  subdivision 6, is amended to read: 
  9.15     Subd. 6.  [TIMING OF PROCESS.] If a notice of noncompliance 
  9.16  is mailed before July 1 of any year, and the property owner has 
  9.17  neither (1) successfully appealed the determination, nor (2) 
  9.18  brought the property into compliance by October 15 of that year, 
  9.19  the property will be assessed at the class rate applicable to it 
  9.20  under Minnesota Statutes 1988, section 273.13, subdivision 25, 
  9.21  paragraph (e), for taxes levied in that year and all subsequent 
  9.22  years until the agency determines that the property is no longer 
  9.23  a substandard building, or the property owner prevails on an 
  9.24  appeal of the matter.  If a notice of noncompliance is mailed 
  9.25  after June 30 of any year, the disqualification would initially 
  9.26  be effective for taxes levied in the following year. 
  9.27     Sec. 5.  Minnesota Statutes 1994, section 273.1316, 
  9.28  subdivision 7, is amended to read: 
  9.29     Subd. 7.  [REFUND UPON APPEAL.] If the property owner 
  9.30  prevails on an appeal at any time after taxes have been paid 
  9.31  based on assessment of the property as provided in section 
  9.32  273.13 273.1316, subdivision 25, paragraph (e) 1, the agency 
  9.33  shall notify the property owner concerning the procedures for 
  9.34  the filing for a refund.  The notice shall be in the form and 
  9.35  include the information prescribed by the local tax assessor.  
  9.36  The taxpayer may then file for a refund of the difference 
 10.1   between the amount of the tax paid and the tax that would have 
 10.2   been payable if the property had not been incorrectly assessed 
 10.3   under this section, and each governmental subdivision that 
 10.4   levied the tax on the property shall refund to the property 
 10.5   owner its proportionate share of the refund.  
 10.6      Sec. 6.  [PROPOSED LEGISLATION.] 
 10.7      The commissioner of revenue shall prepare legislation for 
 10.8   introduction in the 1996 legislative session to change 
 10.9   references to Minnesota Statutes, section 273.13, to the 
 10.10  appropriate section and subdivision and to change references to 
 10.11  the appropriate class rates.  The revisor of statutes shall 
 10.12  assist in the preparation of the legislation. 
 10.13     Sec. 7.  [REPEALER.] 
 10.14     Minnesota Statutes 1994, sections 273.124 and 273.13, are 
 10.15  repealed.  
 10.16     Sec. 8.  [EFFECTIVE DATE.] 
 10.17     Sections 1 to 7 are effective for the 1996 assessment, 
 10.18  taxes payable in 1997, and thereafter. 
 10.19                             ARTICLE 2 
 10.20              HOMEOWNER AND RENTER PROPERTY TAX REFUND 
 10.21     Section 1.  Minnesota Statutes 1994, section 289A.18, 
 10.22  subdivision 5, is amended to read: 
 10.23     Subd. 5.  [PROPERTY TAX REFUND CLAIMS.] A claim for a 
 10.24  refund based on property taxes payable must be filed with the 
 10.25  commissioner on or before August 15 May 15 of the year in which 
 10.26  the property taxes are due and payable.  Any claim for refund 
 10.27  based on rent paid must be filed on or before August May 15 of 
 10.28  the year following the year in which the rent was paid.  
 10.29     Sec. 2.  Minnesota Statutes 1994, section 289A.56, 
 10.30  subdivision 6, is amended to read: 
 10.31     Subd. 6.  [PROPERTY TAX REFUNDS UNDER CHAPTER 290A.] (a) 
 10.32  When a renter is owed a property tax refund, an unpaid refund 
 10.33  bears interest after August 14, or 60 days after the refund 
 10.34  claim was made, whichever is later, until the date the refund is 
 10.35  paid. 
 10.36     (b) When any other claimant is owed a property tax refund, 
 11.1   the unpaid refund bears interest after September 29 June 30, or 
 11.2   60 days after the refund claim was made, whichever is later, 
 11.3   until the date the refund is paid. 
 11.4      Sec. 3.  Minnesota Statutes 1994, section 290A.01, is 
 11.5   amended to read: 
 11.6      290A.01 [CITATION.] 
 11.7      This chapter may be cited as the "state of Minnesota 
 11.8   property tax refund income adjusted homestead credit act." 
 11.9      Sec. 4.  Minnesota Statutes 1994, section 290A.03, 
 11.10  subdivision 6, is amended to read: 
 11.11     Subd. 6.  [HOMESTEAD.] "Homestead" means the dwelling 
 11.12  occupied as the claimant's principal residence and so much of 
 11.13  the land surrounding it, not exceeding ten acres, as is 
 11.14  reasonably necessary for use of the dwelling as a home and any 
 11.15  other property used for purposes of a homestead as defined in 
 11.16  section 273.13, subdivision 22, except for agricultural land 
 11.17  assessed as part of a an agricultural homestead pursuant to 
 11.18  section 273.13, subdivision 23, "homestead" is limited to 320 
 11.19  acres or, where the dwelling on the farm homestead is rented not 
 11.20  occupied by the owner, one acre.  The homestead dwelling may be 
 11.21  owned or, rented and may be a, or used by someone who is not the 
 11.22  owner, provided that if it is part of a multidwelling or 
 11.23  multipurpose building, only that portion of the property and the 
 11.24  land on which it is built located and is reasonably necessary 
 11.25  for the use of the dwelling as a home shall be considered the 
 11.26  homestead for purposes of this chapter.  A manufactured home, as 
 11.27  defined in section 273.125, subdivision 8, assessed as personal 
 11.28  property may be a dwelling for purposes of this subdivision. 
 11.29     Sec. 5.  Minnesota Statutes 1994, section 290A.03, 
 11.30  subdivision 13, is amended to read: 
 11.31     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 11.32  payable" means the property tax exclusive of special 
 11.33  assessments, penalties, and interest payable on a claimant's 
 11.34  homestead before reductions made under section 273.13 but after 
 11.35  deductions made under sections 273.135, 273.1391, 273.42, 
 11.36  subdivision 2, and any other state paid property tax credits in 
 12.1   any calendar year.  If the homestead is part of a multidwelling 
 12.2   or multipurpose building, only the amount of the total property 
 12.3   taxes on the property relative to the homestead as defined in 
 12.4   subdivision 6 shall be considered "property taxes payable" for 
 12.5   purposes of computing the refund under this chapter.  In the 
 12.6   case of a claimant who makes ground lease payments, "property 
 12.7   taxes payable" includes the amount of the payments directly 
 12.8   attributable to the property taxes assessed against the parcel 
 12.9   on which the house is located.  No apportionment or reduction of 
 12.10  the "property taxes payable" shall be required for the use of a 
 12.11  portion of the claimant's homestead for a business purpose if 
 12.12  the claimant does not deduct any business depreciation expenses 
 12.13  for the use of a portion of the homestead in the determination 
 12.14  of federal adjusted gross income.  For homesteads which are 
 12.15  manufactured homes as defined in section 274.19, subdivision 8, 
 12.16  "property taxes payable" shall also include the amount of the 
 12.17  gross rent paid in the preceding year for the site on which the 
 12.18  homestead is located, which is attributable to the net tax paid 
 12.19  on the site.  The amount attributable to property taxes shall be 
 12.20  determined by multiplying the net tax on the parcel by a 
 12.21  fraction, the numerator of which is the gross rent paid for the 
 12.22  calendar year for the site and the denominator of which is the 
 12.23  gross rent paid for the calendar year for the parcel.  When a 
 12.24  homestead is owned by two or more persons as joint tenants or 
 12.25  tenants in common, such tenants shall determine between them 
 12.26  which tenant may claim the property taxes payable on the 
 12.27  homestead.  If they are unable to agree, the matter shall be 
 12.28  referred to the commissioner of revenue whose decision shall be 
 12.29  final.  Property taxes are considered payable in the year 
 12.30  prescribed by law for payment of the taxes. 
 12.31     In the case of a claim relating to "property taxes 
 12.32  payable," the claimant must have owned and occupied the 
 12.33  homestead on January 2 of the year in which the tax is payable 
 12.34  and (i) the property must have been classified as homestead 
 12.35  property pursuant to section 273.13, subdivision 22 or 23, on or 
 12.36  before December 15 of the assessment year to which the "property 
 13.1   taxes payable" relate; or (ii) the claimant must provide 
 13.2   documentation from the local assessor that application for 
 13.3   homestead classification has been made on or before December 15 
 13.4   of the year in which the "property taxes payable" were payable 
 13.5   and that the assessor has approved the application. 
 13.6      Sec. 6.  Minnesota Statutes 1994, section 290A.04, 
 13.7   subdivision 2, is amended to read: 
 13.8      Subd. 2.  [HOMEOWNERS.] A claimant whose property taxes 
 13.9   payable are in excess of the percentage of the household income 
 13.10  stated below shall pay an amount equal to the percent of income 
 13.11  shown for the appropriate household income level along with the 
 13.12  percent to be paid by the claimant of the remaining amount of 
 13.13  property taxes payable.  The state refund equals the amount of 
 13.14  property taxes payable that remain, up to the state refund 
 13.15  amount shown below.  
 13.16                        Percent           Percent    Maximum
 13.17  Household Income     of Income          Paid by     State
 13.18                                          Claimant    Refund
 13.19      $0 to 1,029     1.2 percent        18 percent   $440
 13.20   1,030 to 2,059     1.3 percent        18 percent   $440
 13.21   2,060 to 3,099     1.4 percent        20 percent   $440
 13.22   3,100 to 4,129     1.6 percent        20 percent   $440
 13.23   4,130 to 5,159     1.7 percent        20 percent   $440
 13.24   5,160 to 7,229     1.9 percent        25 percent   $440
 13.25   7,230 to 8,259     2.1 percent        25 percent   $440
 13.26   8,260 to 9,289     2.2 percent        25 percent   $440
 13.27   9,290 to 10,319    2.3 percent        30 percent   $440
 13.28  10,320 to 11,349    2.4 percent        30 percent   $440
 13.29  11,350 to 12,389    2.5 percent        30 percent   $440
 13.30  12,390 to 14,449    2.6 percent        30 percent   $440
 13.31  14,450 to 15,479    2.8 percent        35 percent   $440
 13.32  15,480 to 16,509    3.0 percent        35 percent   $440
 13.33  16,510 to 17,549    3.2 percent        40 percent   $440
 13.34  17,550 to 21,669    3.3 percent        40 percent   $440
 13.35  21,670 to 24,769    3.4 percent        45 percent   $440
 13.36  24,770 to 30,959    3.5 percent        45 percent   $440
 13.37  30,960 to 36,119    3.5 percent        45 percent   $440
 13.38  36,120 to 41,279    3.7 percent        50 percent   $440
 13.39  41,280 to 58,829    4.0 percent        50 percent   $440
 13.40  58,830 to 59,859    4.0 percent        50 percent   $310
 13.41  59,860 to 60,889    4.0 percent        50 percent   $210
 13.42  60,890 to 61,929    4.0 percent        50 percent   $100 
 13.43      $0 to 1,999       0.3 percent        10 percent  $1,100
 13.44   2,000 to 2,999       0.3 percent        12 percent  $1,100
 13.45   3,000 to 3,999       0.4 percent        14 percent  $1,100
 13.46   4,000 to 4,999       0.5 percent        16 percent  $1,100
 13.47   5,000 to 5,999       0.6 percent        18 percent  $1,100
 13.48   6,000 to 6,999       0.7 percent        20 percent  $1,100
 13.49   7,000 to 7,999       0.8 percent        22 percent  $1,100
 13.50   8,000 to 8,999       0.9 percent        24 percent  $1,100
 13.51   9,000 to 9,999       1.0 percent        26 percent  $1,100
 13.52  10,000 to 10,999      1.1 percent        28 percent  $1,100
 13.53  11,000 to 11,999      1.2 percent        28 percent  $1,100
 13.54  12,000 to 12,999      1.3 percent        28 percent  $1,100
 13.55  13,000 to 13,999      1.4 percent        28 percent  $1,100
 13.56  14,000 to 14,999      1.5 percent        29 percent  $1,100
 14.1   15,000 to 15,999      1.6 percent        30 percent  $1,100
 14.2   16,000 to 16,999      1.7 percent        31 percent  $1,100
 14.3   17,000 to 17,999      1.8 percent        32 percent  $1,100
 14.4   18,000 to 18,999      1.9 percent        33 percent  $1,100
 14.5   19,000 to 19,999      2.0 percent        34 percent  $1,100
 14.6   20,000 to 20,999      2.0 percent        35 percent  $1,100
 14.7   21,000 to 21,999      2.1 percent        36 percent  $1,100
 14.8   22,000 to 22,999      2.2 percent        36 percent  $1,100
 14.9   23,000 to 23,999      2.3 percent        37 percent  $1,100
 14.10  24,000 to 24,999      2.4 percent        38 percent  $1,100
 14.11  25,000 to 32,999      2.5 percent        39 percent  $1,100
 14.12  33,000 to 33,999      2.6 percent        39 percent  $1,100
 14.13  34,000 to 35,999      2.7 percent        39 percent  $1,100
 14.14  36,000 to 37,999      2.8 percent        40 percent  $1,100
 14.15  38,000 to 40,999      2.9 percent        41 percent  $1,100
 14.16  41,000 to 41,999      3.0 percent        42 percent  $1,100
 14.17  42,000 to 43,999      3.1 percent        43 percent  $1,050
 14.18  44,000 to 45,999      3.2 percent        44 percent  $1,000
 14.19  46,000 to 47,999      3.3 percent        45 percent    $950
 14.20  48,000 to 49,999      3.4 percent        46 percent    $900
 14.21  50,000 to 51,999      3.5 percent        47 percent    $850
 14.22  52,000 to 53,999      3.5 percent        48 percent    $800
 14.23  54,000 to 55,999      3.6 percent        49 percent    $750
 14.24  56,000 to 56,999      3.8 percent        50 percent    $700
 14.25  57,000 to 57,999      4.0 percent        50 percent    $650
 14.26  58,000 to 58,999      4.0 percent        50 percent    $600
 14.27  59,000 to 59,999      4.0 percent        50 percent    $550
 14.28  60,000 to 60,999      4.0 percent        50 percent    $500
 14.29  61,000 to 61,999      4.0 percent        52 percent    $450
 14.30  62,000 to 62,999      4.0 percent        54 percent    $400
 14.31  63,000 to 63,999      4.0 percent        55 percent    $350
 14.32  64,000 to 64,999      4.0 percent        56 percent    $300
 14.33  65,000 to 65,999      4.0 percent        57 percent    $250
 14.34  66,000 to 66,999      4.0 percent        58 percent    $200
 14.35  67,000 to 67,999      4.0 percent        59 percent    $150
 14.36  68,000 to 68,999      4.0 percent        60 percent    $100
 14.37  69,000 to 69,999      4.0 percent        60 percent     $50
 14.38  70,000 and up                  No refund
 14.39     The payment made to a claimant shall be the amount of the 
 14.40  state refund calculated under this subdivision.  No payment is 
 14.41  allowed if the claimant's household income is $61,930 $70,000 or 
 14.42  more. 
 14.43     Sec. 7.  Minnesota Statutes 1994, section 290A.04, 
 14.44  subdivision 2h, is amended to read: 
 14.45     Subd. 2h.  (a) If the gross property taxes payable on a 
 14.46  homestead increase more than 12 15 percent over the net property 
 14.47  taxes payable in the prior year on the same property that is 
 14.48  owned and occupied by the same owner on January 2 of both years, 
 14.49  and the amount of that increase is $100 $120 or more for taxes 
 14.50  payable in 1995 and 1996, a claimant who is a homeowner shall be 
 14.51  allowed an additional refund equal to 60 100 percent of the 
 14.52  amount of the increase over the greater of 12 15 percent of the 
 14.53  prior year's net property taxes payable or $100 for taxes 
 14.54  payable in 1995 and 1996 $120.  This subdivision shall not apply 
 15.1   to any increase in the gross property taxes payable attributable 
 15.2   to improvements made to the homestead after the assessment date 
 15.3   for the prior year's taxes. 
 15.4      The maximum refund allowed under this subdivision is $1,000.
 15.5      (b) For purposes of this subdivision, the following terms 
 15.6   have the meanings given: 
 15.7      (1) "Net property taxes payable" means property taxes 
 15.8   payable minus refund amounts for which the claimant qualifies 
 15.9   pursuant to subdivision 2 and this subdivision.  
 15.10     (2) "Gross property taxes" means net property taxes payable 
 15.11  determined without regard to the refund allowed under this 
 15.12  subdivision. 
 15.13     (c) In addition to the other proofs required by this 
 15.14  chapter, each claimant under this subdivision shall file with 
 15.15  the property tax refund return a copy of the property tax 
 15.16  statement for taxes payable in the preceding year or other 
 15.17  documents required by the commissioner. 
 15.18     (d) On or before December 1, 1995, the commissioner shall 
 15.19  estimate the cost of making the payments provided by this 
 15.20  subdivision for taxes payable in 1996.  Notwithstanding the open 
 15.21  appropriation provision of section 290A.23, if the estimated 
 15.22  total refund claims for taxes payable in 1996 exceed $5,500,000, 
 15.23  the commissioner shall first reduce the 60 percent refund rate 
 15.24  enough, but to no lower a rate than 50 percent, so that the 
 15.25  estimated total refund claims do not exceed $5,500,000.  If the 
 15.26  commissioner estimates that total claims will exceed $5,500,000 
 15.27  at a 50 percent refund rate, the commissioner shall also reduce 
 15.28  the $1,000 maximum refund amount by enough so that total 
 15.29  estimated refund claims do not exceed $5,500,000. 
 15.30     The determinations of the revised thresholds by the 
 15.31  commissioner are not rules subject to chapter 14.  
 15.32     (e) (d) Upon request, the appropriate county official shall 
 15.33  make available the names and addresses of the property taxpayers 
 15.34  who may be eligible for the additional property tax refund under 
 15.35  this section.  The information shall be provided on a magnetic 
 15.36  computer disk.  The county may recover its costs by charging the 
 16.1   person requesting the information the reasonable cost for 
 16.2   preparing the data.  The information may not be used for any 
 16.3   purpose other than for notifying the homeowner of potential 
 16.4   eligibility and assisting the homeowner, without charge, in 
 16.5   preparing a refund claim. 
 16.6      Sec. 8.  Minnesota Statutes 1994, section 290A.07, is 
 16.7   amended to read: 
 16.8      290A.07 [TIME FOR PAYMENT.] 
 16.9      Subdivision 1.  Allowable claims filed pursuant to by 
 16.10  renters under the provisions of this chapter shall be paid by 
 16.11  the commissioner from the general fund.  Allowable claims filed 
 16.12  by homeowners under the provisions of this chapter shall be paid 
 16.13  to the homeowner by the commissioner in the form of a legally 
 16.14  negotiated voucher from the general fund. 
 16.15     Subd. 2a.  A claimant who is a renter or a homeowner who 
 16.16  occupies a manufactured home, as defined in section 273.125, 
 16.17  subdivision 8, paragraph (c), shall receive full payment after 
 16.18  August 1 and before August 15 or 60 days after receipt of the 
 16.19  application, whichever is later.  
 16.20     Subd. 3.  A claimant not included in subdivision 2a shall 
 16.21  receive a voucher for the full payment after September 15 July 1 
 16.22  and before September 30. July 8.  The voucher shall be made 
 16.23  payable to the claimant with a space provided for the claimant's 
 16.24  signature.  A second signature shall also be required on the 
 16.25  voucher with space provided for the second signature.  To redeem 
 16.26  the voucher for payment, the claimant shall endorse the voucher 
 16.27  and present or mail it either to (1) the appropriate financial 
 16.28  institution if the current property taxes on the claimant's 
 16.29  homestead are escrowed by an escrow agent or (2) the county 
 16.30  treasurer of the county where the property is located if the 
 16.31  property taxes on the claimant's homestead are paid directly by 
 16.32  the claimant.  If the property taxes on the claimant's homestead 
 16.33  are paid directly by the claimant and if the amount of the 
 16.34  voucher is more than the amount of the July 15 payment 
 16.35  installment, the county treasurer shall retain the full amount 
 16.36  of the voucher and shall credit the amount of excess to the 
 17.1   October 15 payment installment on the taxpayer's property. 
 17.2      Sec. 9.  Minnesota Statutes 1994, section 290A.23, is 
 17.3   amended to read: 
 17.4      290A.23 [APPROPRIATION.] 
 17.5      Subdivision 1.  [RENTERS CREDIT.] There is appropriated 
 17.6   from the general fund in the state treasury to the commissioner 
 17.7   of revenue the amount necessary to make the payments required 
 17.8   under section 290A.04, subdivision subdivisions 2, 2a, and 2h.  
 17.9      Subd. 2.  [HOMEOWNERS PROPERTY TAX REFUND AND TARGETING.] 
 17.10  There is appropriated from the local government trust fund to 
 17.11  the commissioner of revenue the amount necessary to make the 
 17.12  payments required under section 290A.04, subdivisions 2 and 2h. 
 17.13     Subd. 3.  [ANNUAL APPROPRIATION.] For payments made after 
 17.14  July 1, 1996, there is annually appropriated from the general 
 17.15  fund to the commissioner of revenue the amount necessary to make 
 17.16  the payments required under section 290A.04, subdivisions 2 and 
 17.17  2h. 
 17.18     Sec. 10.  [REPEALER.] 
 17.19     Minnesota Statutes 1994, sections 290A.04, subdivisions 2b 
 17.20  and 2i; and 290A.23, subdivision 2, are repealed. 
 17.21     Sec. 11.  [EFFECTIVE DATE.] 
 17.22     Sections 1 to 10 are effective for homeowners for claims 
 17.23  based on property taxes payable in 1997 and thereafter, and for 
 17.24  renters for claims based on rent paid in 1996 and thereafter. 
 17.25                             ARTICLE 3
 17.26                           PAYMENT DATES
 17.27     Section 1.  Minnesota Statutes 1994, section 275.065, 
 17.28  subdivision 3, is amended to read: 
 17.29     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
 17.30  county auditor shall prepare and the county treasurer shall 
 17.31  deliver after November 10 and on or before November 24 each 
 17.32  year, by first class mail to each taxpayer at the address listed 
 17.33  on the county's current year's assessment roll, a notice of 
 17.34  proposed property taxes and, in the case of a town, final 
 17.35  property taxes.  
 17.36     (b) The commissioner of revenue shall prescribe the form of 
 18.1   the notice. 
 18.2      (c) The notice must inform taxpayers that it contains the 
 18.3   amount of property taxes each taxing authority other than a town 
 18.4   proposes to collect for taxes payable the following year and, 
 18.5   for a town, the amount of its final levy.  It must clearly state 
 18.6   that each taxing authority, including regional library districts 
 18.7   established under section 134.201, and including the 
 18.8   metropolitan taxing districts as defined in paragraph (i), but 
 18.9   excluding all other special taxing districts and towns, will 
 18.10  hold a public meeting to receive public testimony on the 
 18.11  proposed budget and proposed or final property tax levy, or, in 
 18.12  case of a school district, on the current budget and proposed 
 18.13  property tax levy.  It must clearly state the time and place of 
 18.14  each taxing authority's meeting and an address where comments 
 18.15  will be received by mail.  The notice must include the estimated 
 18.16  percentage increase in Minnesota personal income, provided by 
 18.17  the commissioner of revenue under section 275.064, in a way to 
 18.18  facilitate comparison of the proposed budget and levy increases 
 18.19  with the increase in personal income.  For 1993, the notice must 
 18.20  clearly state that each taxing authority holding a public 
 18.21  meeting will describe the increases or decreases of the total 
 18.22  budget, including employee and independent contractor 
 18.23  compensation in the prior year, current year, and the proposed 
 18.24  budget year.  
 18.25     (d) The notice must state for each parcel: 
 18.26     (1) the market value of the property as determined under 
 18.27  section 273.11, and used for computing property taxes payable in 
 18.28  the following year and for taxes payable in the current year; 
 18.29  and, in the case of residential property, whether the property 
 18.30  is classified as homestead or nonhomestead.  The notice must 
 18.31  clearly inform taxpayers of the years to which the market values 
 18.32  apply and that the values are final values; 
 18.33     (2) by county, city or town, school district excess 
 18.34  referenda levy, remaining school district levy, regional library 
 18.35  district, if in existence, the total of the metropolitan special 
 18.36  taxing districts as defined in paragraph (i) and the sum of the 
 19.1   remaining special taxing districts, and as a total of the taxing 
 19.2   authorities, including all special taxing districts, the 
 19.3   proposed or, for a town, final net tax on the property for taxes 
 19.4   payable the following year and the actual tax for taxes payable 
 19.5   the current year.  For the purposes of this subdivision, "school 
 19.6   district excess referenda levy" means school district taxes for 
 19.7   operating purposes approved at referendums, including those 
 19.8   taxes based on net tax capacity as well as those based on market 
 19.9   value.  "School district excess referenda levy" does not include 
 19.10  school district taxes for capital expenditures approved at 
 19.11  referendums or school district taxes to pay for the debt service 
 19.12  on bonds approved at referenda.  In the case of the city of 
 19.13  Minneapolis, the levy for the Minneapolis library board and the 
 19.14  levy for Minneapolis park and recreation shall be listed 
 19.15  separately from the remaining amount of the city's levy.  In the 
 19.16  case of a parcel where tax increment or the fiscal disparities 
 19.17  areawide tax applies, the proposed tax levy on the captured 
 19.18  value or the proposed tax levy on the tax capacity subject to 
 19.19  the areawide tax must each be stated separately and not included 
 19.20  in the sum of the special taxing districts; and 
 19.21     (3) the increase or decrease in the amounts in clause (2) 
 19.22  from taxes payable in the current year to proposed or, for a 
 19.23  town, final taxes payable the following year, expressed as a 
 19.24  dollar amount and as a percentage. 
 19.25     (e) The notice must clearly state that the proposed or 
 19.26  final taxes do not include the following: 
 19.27     (1) special assessments; 
 19.28     (2) levies approved by the voters after the date the 
 19.29  proposed taxes are certified, including bond referenda, and 
 19.30  school district levy referenda, and levy limit increase 
 19.31  referenda; 
 19.32     (3) amounts necessary to pay cleanup or other costs due to 
 19.33  a natural disaster occurring after the date the proposed taxes 
 19.34  are certified; 
 19.35     (4) amounts necessary to pay tort judgments against the 
 19.36  taxing authority that become final after the date the proposed 
 20.1   taxes are certified; and 
 20.2      (5) the contamination tax imposed on properties which 
 20.3   received market value reductions for contamination. 
 20.4      (f) Except as provided in subdivision 7, failure of the 
 20.5   county auditor to prepare or the county treasurer to deliver the 
 20.6   notice as required in this section does not invalidate the 
 20.7   proposed or final tax levy or the taxes payable pursuant to the 
 20.8   tax levy. 
 20.9      (g) If the notice the taxpayer receives under this section 
 20.10  lists the property as nonhomestead and the homeowner provides 
 20.11  satisfactory documentation to the county assessor that the 
 20.12  property is owned and has been used as the owner's homestead 
 20.13  prior to June 1 of that year, the assessor shall reclassify the 
 20.14  property to homestead for taxes payable in the following year. 
 20.15     (h) In the case of class 4 2 residential property used as a 
 20.16  residence for lease or rental periods of 30 days or more, the 
 20.17  taxpayer must either: 
 20.18     (1) mail or deliver a copy of the notice of proposed 
 20.19  property taxes to each tenant, renter, or lessee; or 
 20.20     (2) post a copy of the notice in a conspicuous place on the 
 20.21  premises of the property.  
 20.22     (i) For purposes of this subdivision, subdivisions 5a and 
 20.23  6, "metropolitan special taxing districts" means the following 
 20.24  taxing districts in the seven-county metropolitan area that levy 
 20.25  a property tax for any of the specified purposes listed below: 
 20.26     (1) metropolitan council under section 473.132, 473.167, 
 20.27  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
 20.28     (2) metropolitan airports commission under section 473.667, 
 20.29  473.671, or 473.672; and 
 20.30     (3) metropolitan mosquito control commission under section 
 20.31  473.711. 
 20.32     For purposes of this section, any levies made by the 
 20.33  regional rail authorities in the county of Anoka, Carver, 
 20.34  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
 20.35  398A shall be included with the appropriate county's levy and 
 20.36  shall be discussed at that county's public hearing. 
 21.1      The notice must be mailed or posted by the taxpayer by 
 21.2   November 27 or within three days of receipt of the notice, 
 21.3   whichever is later.  A taxpayer may notify the county treasurer 
 21.4   of the address of the taxpayer, agent, caretaker, or manager of 
 21.5   the premises to which the notice must be mailed in order to 
 21.6   fulfill the requirements of this paragraph. 
 21.7      Sec. 2.  Minnesota Statutes 1994, section 275.07, 
 21.8   subdivision 1, is amended to read: 
 21.9      Subdivision 1.  The taxes voted by cities, counties, school 
 21.10  districts, and special districts shall be certified by the 
 21.11  proper authorities to the county auditor on or before five 
 21.12  working days after December 20 in each year.  A town must 
 21.13  certify the levy adopted by the town board to the county auditor 
 21.14  by September 15 each year.  If the town board modifies the levy 
 21.15  at a special town meeting after September 15, the town board 
 21.16  must recertify its levy to the county auditor on or before five 
 21.17  working days after December 20.  The taxes certified shall not 
 21.18  be reduced by the aid received under section 273.1398, 
 21.19  subdivisions 2 and 3 sections 477A.013 and 477A.0133.  If a 
 21.20  city, town, county, school district, or special district fails 
 21.21  to certify its levy by that date, its levy shall be the amount 
 21.22  levied by it for the preceding year.  
 21.23     Sec. 3.  Minnesota Statutes 1994, section 275.08, 
 21.24  subdivision 1b, is amended to read: 
 21.25     Subd. 1b.  The amounts certified under section 275.07 after 
 21.26  adjustment under section 275.07, subdivision 3, by an individual 
 21.27  local government unit, except for any amounts certified under 
 21.28  sections 124A.03, subdivision 2a, and 275.61, shall be divided 
 21.29  by the total net tax capacity of all taxable properties within 
 21.30  the local government unit's taxing jurisdiction.  The resulting 
 21.31  ratio, the local government's local tax rate, multiplied by each 
 21.32  property's net tax capacity shall be each property's tax for 
 21.33  that local government unit before reduction by any credits.  
 21.34     Any amount certified to the county auditor under section 
 21.35  124A.03, subdivision 2a, or 275.61, after the dates given in 
 21.36  those sections, shall be divided by the total estimated market 
 22.1   value of all taxable properties within the taxing district.  The 
 22.2   resulting ratio, the taxing district's new referendum tax rate, 
 22.3   multiplied by each property's estimated market value shall be 
 22.4   each property's new referendum tax before reduction by any 
 22.5   credits. 
 22.6      Sec. 4.  Minnesota Statutes 1994, section 276.04, 
 22.7   subdivision 3, is amended to read: 
 22.8      Subd. 3.  [MAILING OF TAX STATEMENTS.] The county treasurer 
 22.9   shall mail to taxpayers statements of their personal property 
 22.10  taxes due not later than April 15 for property taxes payable in 
 22.11  1990 and March 31 for taxes payable in 1997 and thereafter, 
 22.12  except in the case of manufactured homes and sectional 
 22.13  structures taxed as personal property.  Statements of the real 
 22.14  property taxes due shall be mailed not later than April 15 for 
 22.15  property taxes payable in 1990 and March 31 for taxes payable in 
 22.16  1997 and thereafter.  The validity of the tax shall not be 
 22.17  affected by failure of the treasurer to mail the statement.  The 
 22.18  taxpayer is defined as the owner who is responsible for the 
 22.19  payment of the tax.  
 22.20     Sec. 5.  Minnesota Statutes 1994, section 276.09, is 
 22.21  amended to read: 
 22.22     276.09 [SETTLEMENT BETWEEN AUDITOR AND TREASURER.] 
 22.23     On the later of May 20 and July 20 of each year or 26 
 22.24  calendar days after the postmark date on the envelopes 
 22.25  containing real or personal property tax statements, the county 
 22.26  treasurer shall make full settlement with the county auditor of 
 22.27  all receipts collected for all purposes, from the date of the 
 22.28  last settlement up to and including each day mentioned.  The 
 22.29  county auditor shall, within 30 days after the settlement, send 
 22.30  an abstract of it to the state auditor in the form prescribed by 
 22.31  the state auditor.  At the settlement the treasurer shall make 
 22.32  complete returns of the receipts on the current tax list, 
 22.33  showing the amount collected on account of the several funds 
 22.34  included in the list. 
 22.35     Settlement of receipts from the later of May 20, July 20, 
 22.36  or the actual settlement date to December 31 of each year must 
 23.1   be made as provided in section 276.111. 
 23.2      For purposes of this section, "receipts" includes all tax 
 23.3   payments received by the county treasurer on or before the 
 23.4   settlement date.  
 23.5      Sec. 6.  Minnesota Statutes 1994, section 276.10, is 
 23.6   amended to read: 
 23.7      276.10 [APPORTIONMENT AND DISTRIBUTION OF FUNDS.] 
 23.8      On the settlement day days determined in section 276.09 for 
 23.9   each year, the county auditor and county treasurer shall 
 23.10  distribute all undistributed funds in the treasury.  The funds 
 23.11  must be apportioned as provided by law, and credited to the 
 23.12  state, town, city, school district, special district and each 
 23.13  county fund.  Within 20 days after the distribution is 
 23.14  completed, the county auditor shall report to the state auditor 
 23.15  in the form prescribed by the state auditor.  The county auditor 
 23.16  shall issue a warrant for the payment of money in the county 
 23.17  treasury to the credit of the state, town, city, school 
 23.18  district, or special districts on application of the persons 
 23.19  entitled to receive the payment.  The county auditor may apply 
 23.20  the local tax rate from the year before the year of distribution 
 23.21  when apportioning and distributing delinquent tax proceeds, if 
 23.22  the composition of the previous year's local tax rate between 
 23.23  taxing districts is not significantly different from the local 
 23.24  tax rate that existed for the year of the delinquency.  
 23.25     Sec. 7.  Minnesota Statutes 1994, section 276.11, 
 23.26  subdivision 1, is amended to read: 
 23.27     Subdivision 1.  [GENERALLY.] As soon as practical after the 
 23.28  settlement day days determined in section 276.09, the county 
 23.29  treasurer shall pay to the state treasurer or the treasurer of a 
 23.30  town, city, school district, or special district, on the warrant 
 23.31  of the county auditor, all receipts of taxes levied by the 
 23.32  taxing district and deliver up all orders and other evidences of 
 23.33  indebtedness of the taxing district, taking triplicate receipts 
 23.34  for them.  The treasurer shall file one of the receipts with the 
 23.35  county auditor, and shall return one by mail on the day of its 
 23.36  receipt to the clerk of the town, city, school district, or 
 24.1   special district to which payment was made.  The clerk shall 
 24.2   keep the receipt in the clerk's office.  Upon written request of 
 24.3   the taxing district, to the extent practicable, the county 
 24.4   treasurer shall make partial payments of amounts collected 
 24.5   periodically in advance of the next settlement and 
 24.6   distribution.  A statement prepared by the county treasurer must 
 24.7   accompany each payment.  It must state the years for which taxes 
 24.8   included in the payment were collected and, for each year, the 
 24.9   amount of the taxes and any penalties on the tax.  Upon written 
 24.10  request of a taxing district, except school districts, the 
 24.11  county treasurer shall pay at least 70 percent of the estimated 
 24.12  collection within 30 days after the each settlement date 
 24.13  determined in section 276.09.  Within seven business days after 
 24.14  the due date, or 28 calendar days after the postmark date on the 
 24.15  envelopes containing real or personal property tax statements, 
 24.16  whichever is latest, the county treasurer shall pay to the 
 24.17  treasurer of the school districts 50 percent of the estimated 
 24.18  collections arising from taxes levied by and belonging to the 
 24.19  school district, unless the school district elects to receive 50 
 24.20  percent of the estimated collections arising from taxes levied 
 24.21  by and belonging to the school district after making a 
 24.22  proportionate reduction to reflect any loss in collections as 
 24.23  the result of any delay in mailing tax statements.  In that 
 24.24  case, 50 percent of those adjusted, estimated collections shall 
 24.25  be paid by the county treasurer to the treasurer of the school 
 24.26  district within seven business days of the due date.  The 
 24.27  remaining 50 percent of the estimated collections must be paid 
 24.28  to the treasurer of the school district within the next seven 
 24.29  business days of the later of the dates in the preceding 
 24.30  sentence, unless the school district elects to receive the 
 24.31  remainder of its estimated collections after a proportionate 
 24.32  reduction has been made to reflect any loss in collections as 
 24.33  the result of any delay in mailing tax statements.  In that 
 24.34  case, the remaining 50 percent of those adjusted, estimated 
 24.35  collections shall be paid by the county treasurer to the 
 24.36  treasurer of the school district within 14 days of the due 
 25.1   date.  The treasurer shall pay the balance of the amounts 
 25.2   collected to the state or to a municipal corporation or other 
 25.3   body within 60 days after the each settlement date determined in 
 25.4   section 276.09.  After 45 days interest at an annual rate of 
 25.5   eight percent accrues and must be paid to the taxing district.  
 25.6   Interest must be paid upon appropriation from the general 
 25.7   revenue fund of the county.  If not paid, it may be recovered by 
 25.8   the taxing district, in a civil action. 
 25.9      Sec. 8.  Minnesota Statutes 1994, section 276.111, is 
 25.10  amended to read: 
 25.11     276.111 [DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.] 
 25.12     Within seven business days after October 15, the county 
 25.13  treasurer shall pay to the school districts 50 percent of the 
 25.14  estimated collections arising from taxes levied by and belonging 
 25.15  to the school district from the settlement day determined days 
 25.16  provided in section 276.09 to October 20.  The remaining 50 
 25.17  percent of the estimated tax collections must be paid to the 
 25.18  school district within the next seven business days.  Within ten 
 25.19  business days after November 15, the county treasurer shall pay 
 25.20  to the school district 100 percent of the estimated collections 
 25.21  arising from taxes levied by and belonging to the school 
 25.22  districts from October 20 to November 20. 
 25.23     Within ten business days after November 15, the county 
 25.24  treasurer shall pay to each taxing district, except any school 
 25.25  district, 100 percent of the estimated collections arising from 
 25.26  taxes levied by and belonging to each taxing district from the 
 25.27  settlement day determined days provided in section 276.09 to 
 25.28  November 20. 
 25.29     On or before January 5, the county treasurer shall make 
 25.30  full settlement with the county auditor of all receipts 
 25.31  collected from the settlement day determined days provided in 
 25.32  section 276.09 to December 31.  After subtracting any tax 
 25.33  distributions that have been made to the taxing districts in 
 25.34  October and November, the treasurer shall pay to each of the 
 25.35  taxing districts on or before January 25, the balance of the tax 
 25.36  amounts collected on behalf of each taxing district.  Interest 
 26.1   accrues at an annual rate of eight percent and must be paid to 
 26.2   the taxing district if this final settlement amount is not paid 
 26.3   by January 25.  Interest must be paid upon appropriation from 
 26.4   the general revenue fund of the county.  If not paid, it may be 
 26.5   recovered by the taxing district in a civil action. 
 26.6      Sec. 9.  Minnesota Statutes 1994, section 278.03, 
 26.7   subdivision 1, is amended to read: 
 26.8      Subdivision 1.  [REAL PROPERTY.] In the case of real 
 26.9   property, if the proceedings instituted by the filing of the 
 26.10  petition have not been completed before the 16th day of May next 
 26.11  following the filing, for all property the petitioner shall pay 
 26.12  to the county treasurer 50 34 percent of the tax levied for such 
 26.13  year against the property involved, unless permission to 
 26.14  continue prosecution of the petition without such payment is 
 26.15  obtained as herein provided. If the proceedings instituted by 
 26.16  the filing of the petition have not been completed by the 
 26.17  next July 16, the petitioner shall pay to the county treasurer 
 26.18  an additional 33 percent of the tax levied.  If the proceedings 
 26.19  instituted by the filing of the petition have not been completed 
 26.20  by October 16, or, in the case of class 1b 1 agricultural 
 26.21  homestead, class 2a agricultural homestead, and class 2b(2) 
 26.22  agricultural nonhomestead property, November 16, the petitioner 
 26.23  shall pay to the county treasurer 50 percent of the unpaid 
 26.24  balance of the taxes levied for the year against the property 
 26.25  involved if the unpaid balance is $2,000 or less and 80 percent 
 26.26  of the unpaid balance if the unpaid balance is over $2,000, 
 26.27  unless permission to continue prosecution of the petition 
 26.28  without payment is obtained as herein provided.  The petitioner, 
 26.29  upon ten days notice to the county attorney and to the county 
 26.30  auditor, given at least ten days prior to the 16th day of May or 
 26.31  the 16th day of July or the 16th day of October, or, in the case 
 26.32  of class 1b 1 agricultural homestead, class 2a agricultural 
 26.33  homestead, and class 2b(2) agricultural nonhomestead property, 
 26.34  the 16th day of November, may apply to the court for permission 
 26.35  to continue prosecution of the petition without payment; and, if 
 26.36  it is made to appear 
 27.1      (1) that the proposed review is to be taken in good faith; 
 27.2      (2) that there is probable cause to believe that the 
 27.3   property may be held exempt from the tax levied or that the tax 
 27.4   may be determined to be less than 50 percent of the amount 
 27.5   levied; and 
 27.6      (3) that it would work a hardship upon petitioner to pay 
 27.7   the taxes due, 
 27.8      the court may permit the petitioner to continue prosecution 
 27.9   of the petition without payment, or may fix a lesser amount to 
 27.10  be paid as a condition of continuing the prosecution of the 
 27.11  petition. 
 27.12     Failure to make payment of the amount required when due 
 27.13  shall operate automatically to dismiss the petition and all 
 27.14  proceedings thereunder unless the payment is waived by an order 
 27.15  of the court permitting the petitioner to continue prosecution 
 27.16  of the petition without payment.  The petition shall be 
 27.17  automatically reinstated upon payment of the entire tax plus 
 27.18  interest and penalty if the payment is made within one year of 
 27.19  the dismissal.  The county treasurer shall, upon request of the 
 27.20  petitioner, issue duplicate receipts for the tax payment, one of 
 27.21  which shall be filed by the petitioner in the proceeding. 
 27.22     Sec. 10.  Minnesota Statutes 1994, section 278.05, 
 27.23  subdivision 5, is amended to read: 
 27.24     Subd. 5.  Any time after the filing of the petition and 
 27.25  before the trial of the issues raised thereby, when the defense 
 27.26  or claim presented is that the property has been partially, 
 27.27  unfairly, or unequally assessed, or that the property has been 
 27.28  assessed at a valuation greater than its real or actual value, 
 27.29  or that a parcel which is classified as homestead class 1 or 2 
 27.30  agricultural or residential under the provisions of 
 27.31  section 273.13, subdivision 22 or 23 273.127, has been assessed 
 27.32  at a valuation which exceeds by ten percent or more the 
 27.33  valuation which the parcel would have if it were valued at the 
 27.34  average assessment/sales ratio for real property in the same 
 27.35  class in that portion of the county in which the parcel is 
 27.36  located, for which the commissioner is able to establish and 
 28.1   publish a sales ratio study, the attorney representing the 
 28.2   state, county, city or town in the proceedings may serve on the 
 28.3   petitioner, or the petitioner's attorney, and file with the 
 28.4   court administrator of the district court, an offer to reduce 
 28.5   the valuation of the property or a portion of the property to a 
 28.6   valuation set forth in the offer.  If, within ten days 
 28.7   thereafter, the petitioner, or the attorney, gives notice in 
 28.8   writing to the county attorney, or the attorney for the city or 
 28.9   town, that the offer is accepted, the official notified may file 
 28.10  the offer with proof of notice, and the court administrator 
 28.11  shall enter judgment accordingly.  Otherwise, the offer shall be 
 28.12  deemed withdrawn and evidence thereof shall not be given; and, 
 28.13  unless a lower valuation than specified in the offer is found by 
 28.14  the court, no costs or disbursements shall be allowed to the 
 28.15  petitioner, but the costs and disbursements of the state, 
 28.16  county, city or town, including interest at six percent on the 
 28.17  tax based on the amount of the offer from and after the 16th day 
 28.18  of October, or, in the case of class 1b 1 agricultural 
 28.19  homestead, class 2a agricultural homestead, class 2b(2) 
 28.20  agricultural nonhomestead property, and manufactured homes 
 28.21  treated as personal property, the 16th day of November, of the 
 28.22  year the taxes are payable, shall be taxed in its favor and 
 28.23  included in the judgment and when collected shall be credited to 
 28.24  the county revenue fund, unless the taxes were paid in full 
 28.25  before the 16th day of October, or, in the case of class 1b 1 
 28.26  agricultural homestead, class 2a agricultural homestead, and 
 28.27  class 2b(2) agricultural nonhomestead property, and manufactured 
 28.28  homes treated as personal property, the 16th day of November, of 
 28.29  the year in which the taxes were payable, in which event 
 28.30  interest shall not be taxable. 
 28.31     Sec. 11.  Minnesota Statutes 1994, section 279.01, is 
 28.32  amended by adding a subdivision to read: 
 28.33     Subd. 1a.  [DUE DATES.] All taxes on all real property are 
 28.34  due in three equal installments, to be paid on or before May 15, 
 28.35  or 20 calendar days after the postmark date on the envelope 
 28.36  containing the property tax statement, whichever is later, July 
 29.1   15, and October 15. 
 29.2      Sec. 12.  Minnesota Statutes 1994, section 279.01, is 
 29.3   amended by adding a subdivision to read: 
 29.4      Subd. 2a.  [PENALTIES.] Late payments of real property tax 
 29.5   incur a penalty.  The rate of the penalty increases with each 
 29.6   successive month that the payment is late and is dependent upon 
 29.7   the class of property taxed.  For purposes of the penalties 
 29.8   imposed in this subdivision, property classified under section 
 29.9   273.127, subdivision 3, clauses (2) to (4), shall be considered 
 29.10  class 3.  The following is the schedule of penalties for late 
 29.11  payment of property tax: 
 29.12  
 29.13  Property               May  June  July  Aug.  July  Aug.
 29.14                          16     1     1    1     16    16
 29.15  Class 1 and Class 2
 29.17  1st Installment
 29.18  (May 15)                4%     6%    7%   8%    --    8%  
 29.19   
 29.20  2nd Installment
 29.21  (July 15)                                       8%   10%
 29.23  3rd Installment  
 29.24  (October 15)  
 29.25    
 29.26    
 29.27    
 29.28  Class 3
 29.29    
 29.30  1st Installment 
 29.31  (May 15)                8%    10%   10%  10%    --   10%
 29.32    
 29.33  2nd Installment 
 29.34  (July 15)                                       8%   10%
 29.36  3rd Installment 
 29.37  (October 15) 
 29.38   
 29.39    
 29.40                  Sept.  Oct.   Nov.  Nov. Dec.  The first
 29.41                    1     16     1     16   1    business day
 29.42                                                 in January
 29.43  Class 1 and 
 29.44  Class 2
 29.46  1st Installment
 29.47  (May 15)         8%     8%    8%     --   8%    10%
 29.49  2nd Installment
 29.50  (July 15)        8%     8%    8%     --   8%    10%
 29.52  3rd Installment
 29.53  (October 15)            4%    8%     --   8%    10%
 29.54   
 29.55    
 29.56    
 29.57  Class 3 
 29.58    
 29.59  1st Installment  
 29.60  (May 15)        12%    12%   12%     --  12%    14%
 30.1     
 30.2   2nd Installment 
 30.3   (July 15)       12%    12%   12%     --  12%    14% 
 30.4    
 30.5   3rd Installment 
 30.6   (October 15)            8%   10%    12%  12%    14%
 30.7      Sec. 13.  Minnesota Statutes 1994, section 279.01, is 
 30.8   amended by adding a subdivision to read: 
 30.9      Subd. 4.  [EXTENDED DUE DATES.] Notwithstanding subdivision 
 30.10  2a, if any of the due dates provided in subdivision 1a are 
 30.11  extended as a result of a delay in mailing property tax 
 30.12  statements, no penalty accrues if the tax is paid by the 
 30.13  extended due date.  If the tax is not paid by the extended due 
 30.14  date, then all penalties that would have accrued if the due date 
 30.15  had not been extended must be charged. 
 30.16     Sec. 14.  [REPEALER.] 
 30.17     Minnesota Statutes 1994, section 279.01, subdivisions 1 and 
 30.18  3, are repealed. 
 30.19     Sec. 15.  [EFFECTIVE DATE.] 
 30.20     This article is effective for taxes levied in 1996, payable 
 30.21  in 1997, and thereafter. 
 30.22                             ARTICLE 4
 30.23                        LOCAL GOVERNMENT AID
 30.24     Section 1.  Minnesota Statutes 1994, section 477A.011, 
 30.25  subdivision 1a, is amended to read: 
 30.26     Subd. 1a.  [CITY.] "City" means a statutory or home rule 
 30.27  charter city.  "Large city" means a city with a population of 
 30.28  2,500 or more.  "Small city" means a city with a population of 
 30.29  less than 2,500. 
 30.30     Sec. 2.  Minnesota Statutes 1994, section 477A.011, is 
 30.31  amended by adding a subdivision to read: 
 30.32     Subd. 38.  [HOME COUNTY.] "Home county" means the county in 
 30.33  which a municipality is located.  If a municipality is located 
 30.34  in more than one county, "home county" is the county in which 
 30.35  its administrative building is located. 
 30.36     Sec. 3.  Minnesota Statutes 1994, section 477A.011, is 
 30.37  amended by adding a subdivision to read: 
 30.38     Subd. 39.  [COMPENSATION PERCENTAGE.] "Compensation 
 31.1   percentage" means a percent determined by the commissioner of 
 31.2   revenue, such that the sum of the aid amounts calculated under 
 31.3   sections 477A.013, subdivision 2, and 477A.0133 equal the amount 
 31.4   appropriated. 
 31.5      Sec. 4.  Minnesota Statutes 1994, section 477A.013, 
 31.6   subdivision 1, is amended to read: 
 31.7      Subdivision 1.  [TOWNS.] In 1994 each town that had levied 
 31.8   for taxes payable in the prior year a local tax rate of at least 
 31.9   .008 shall receive a distribution equal to the amount it 
 31.10  received in 1993 under this section before any nonpermanent 
 31.11  reductions made under section 477A.0132.  In 1995 each town that 
 31.12  had levied for taxes payable in 1993 a local tax rate of at 
 31.13  least .008 shall receive a distribution equal to 102 percent of 
 31.14  the amount it received in 1994 under this section before any 
 31.15  increases or reductions under sections 16A.711, subdivision 5, 
 31.16  and 477A.0132.  In 1996 and subsequent years each town that had 
 31.17  levied for taxes payable in 1993 a local tax rate of at least 
 31.18  .008 shall receive a distribution equal to the amount it 
 31.19  received in the previous year under this section, adjusted for 
 31.20  inflation as provided under section 477A.03, subdivision 3 and 
 31.21  section 273.1398, subdivisions 2 and 3. 
 31.22     Sec. 5.  Minnesota Statutes 1994, section 477A.013, is 
 31.23  amended by adding a subdivision to read: 
 31.24     Subd. 10.  [SMALL CITIES.] In calendar year 1996 and 
 31.25  thereafter, each small city shall receive a local government aid 
 31.26  distribution equal to (1) the amount that the city was certified 
 31.27  to receive for calendar year 1995 under this section, plus (2) 
 31.28  the amount of aid the city was certified to receive under 
 31.29  section 273.1398, subdivisions 2 and 3, for calendar year 1995. 
 31.30     Sec. 6.  [477A.0133] [LARGE CITY AID DISTRIBUTION.] 
 31.31     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 31.32  subdivision apply to this section. 
 31.33     (b) "Relative value" of any data means the value of that 
 31.34  data for a city minus the average value of that data for all 
 31.35  large cities unweighted by any other city characteristic such as 
 31.36  population or tax base. 
 32.1      (c) "Density" means a latest city population divided by the 
 32.2   acres of land area within the city as calculated by the state 
 32.3   demographer. 
 32.4      (d) "Density squared" means a city's density multiplied by 
 32.5   itself. 
 32.6      (e) "Population change" means the total percentage change 
 32.7   in a city's population for the most recently available five-year 
 32.8   period. 
 32.9      (f) "Population change squared" means (1) the population 
 32.10  change divided by 100 multiplied by (2) the population change 
 32.11  divided by 100. 
 32.12     (g) "Population log" means the natural logarithm of a 
 32.13  city's population. 
 32.14     (h) "Degree days" means the total number of heating degree 
 32.15  days in the home county of a city for the period 1951 to 1980 as 
 32.16  prepared by the state climatologist in the department of natural 
 32.17  resources. 
 32.18     (i) "Lane miles" means the total number of lane miles of 
 32.19  roads and streets currently owned and maintained by a city as 
 32.20  determined by the department of transportation. 
 32.21     (j) "Crime rate" means the number of part I and part II 
 32.22  offenses reported in a city, according to the department of 
 32.23  public safety, for the most recent year available, divided by 
 32.24  the city population.  If data is not available for an individual 
 32.25  city, the part I and part II offenses reported for the home 
 32.26  county and the population for the home county shall be used. 
 32.27     (k) "Accident rate" means the total number of accidents 
 32.28  that occurred on streets and roads owned by a city for the most 
 32.29  recent available year, according to the department of public 
 32.30  safety, divided by the city population. 
 32.31     (l) "Cost of living index" means the cost of living index 
 32.32  developed for each county by the legislative auditor as directed 
 32.33  by Laws 1988, chapter 718, article 1, section 11. 
 32.34     (m) "Percent old housing" means the percentage of total 
 32.35  housing units within a city that were built more than 40 years 
 32.36  ago, as reported in the most recently available federal census. 
 33.1      (n) "Subsidized housing" means the number of families 
 33.2   living in subsidized housing in a city, as reported in the most 
 33.3   recently available federal census, divided by the city 
 33.4   population for the year of the federal census. 
 33.5      (o) "Spending" for a service category by a large city means 
 33.6   the city's current operating expenditures for that service, less 
 33.7   all user fees collected by the city to pay for that service, 
 33.8   plus the average of the city's capital outlays for that service 
 33.9   for the previous four years, based on the most recently 
 33.10  available data from the state auditor.  "Average spending" for a 
 33.11  service category under clauses (1) to (3) means the total 
 33.12  spending for that service by all large cities divided by the 
 33.13  population of all large cities.  "Average spending" for 
 33.14  transportation under clause (4) means the total spending for 
 33.15  transportation for that service by all large cities divided by 
 33.16  the number of lane miles of all large cities.  The service 
 33.17  categories used in this section are: 
 33.18     (1) public safety, which includes police, fire, ambulance, 
 33.19  and other emergency services funded through a city's general 
 33.20  funds or enterprise funds; 
 33.21     (2) economic and social services, which includes housing 
 33.22  and community development, parks and recreation, health, 
 33.23  libraries, and sanitation, except garbage collection, funded 
 33.24  through a city's general funds or enterprise funds; 
 33.25     (3) administration, which includes administration and 
 33.26  finance, general government, mayor and city council, unallocated 
 33.27  pension contributions, insurance, and other miscellaneous 
 33.28  spending, but does not include airports, liquor stores, 
 33.29  utilities, or other miscellaneous services that are primarily 
 33.30  self-funding services; and 
 33.31     (4) transportation, which includes all design, 
 33.32  construction, and maintenance of streets and roads, street 
 33.33  lighting, parking, snow removal, and transit funded through a 
 33.34  city's general funds or enterprise funds. 
 33.35     Subd. 2.  [COST ADJUSTMENTS.] The following cost 
 33.36  adjustments for a large city are defined as: 
 34.1      (1) the transportation cost adjustment is equal to the sum 
 34.2   of the relative value of the city's density multiplied by 3,550, 
 34.3   the relative value of the city's density squared multiplied by 
 34.4   -496, the relative value of the city's population multiplied by 
 34.5   0.260, the relative value of the city's population change 
 34.6   multiplied by 79.4, the relative value of the city's degree days 
 34.7   multiplied by -0.882, and the relative value of the city's lane 
 34.8   miles multiplied by -19.3; 
 34.9      (2) the public safety cost adjustment is equal to the sum 
 34.10  of the relative value of the city's accident rate multiplied by 
 34.11  4.65, the relative value of the city's crime rate multiplied by 
 34.12  0.147, the relative value of the city's percent old housing 
 34.13  multiplied by 0.535, and the relative value of the city's cost 
 34.14  of living index multiplied by 1.239; 
 34.15     (3) the administration cost adjustment is equal to the sum 
 34.16  of the relative value of the city's population log multiplied by 
 34.17  -20.5, the relative value of the city's population change 
 34.18  multiplied by 3.81, the relative value of the city's population 
 34.19  change squared multiplied by -352, the relative value of the 
 34.20  city's cost of living index multiplied by 3.53, and the relative 
 34.21  value of the city's subsidized housing multiplied by 26,730; and 
 34.22     (4) the economic and social cost adjustment is equal to the 
 34.23  sum of the relative value of the city's density multiplied by 
 34.24  9.07, the relative value of the city's old housing multiplied by 
 34.25  1.28, the relative value of the city's population log multiplied 
 34.26  by 25.1, the relative value of the city's population change 
 34.27  multiplied by 1.57, and the relative value of the city's 
 34.28  population change squared multiplied by -264. 
 34.29     Subd. 3.  [CITY EXPENDITURE NEED.] The city expenditure 
 34.30  need for a large city is equal to the sum of (1) average 
 34.31  spending for transportation multiplied by the ratio of the 
 34.32  city's lane miles to its population; (2) the city's 
 34.33  transportation cost adjustment, multiplied by the ratio of the 
 34.34  city's lane miles divided by the city's population; (3) average 
 34.35  spending for public safety; (4) the city's public safety cost 
 34.36  adjustment; (5) average spending for economic and social 
 35.1   services; (6) the city's economic and social cost adjustment; 
 35.2   (7) average spending for administration; and (8) the city's 
 35.3   administration cost adjustment. 
 35.4      Subd. 4.  [RESIDENT SHARES.] (a) For a city, the resident 
 35.5   share of a property type is a measure of the share of taxes 
 35.6   imposed on that type of property within the city which are paid 
 35.7   by residents of that city.  The total resident share for a city 
 35.8   is the sum of the resident shares for that city as calculated in 
 35.9   paragraphs (b) to (l). 
 35.10     (b) The resident share of homestead property is equal to 
 35.11  76.9 percent of the tax capacity of the city's residential 
 35.12  homestead and farm homestead property, as defined in Minnesota 
 35.13  Statutes 1994, section 273.124, subdivision 1. 
 35.14     (c) The resident share of small rental property is equal to 
 35.15  87 percent of the tax capacity of the city's property classified 
 35.16  as class 4b under Minnesota Statutes 1994, section 273.13, 
 35.17  subdivision 25. 
 35.18     (d) The resident share of other apartment property is equal 
 35.19  to 80 percent of the tax capacity of the city's property 
 35.20  classified as class 4, except property classified as class 4b, 
 35.21  under Minnesota Statutes 1994, section 273.13, subdivision 25. 
 35.22     (e) The resident share of seasonal recreational property is 
 35.23  equal to 16.7 percent of the tax capacity of the city's property 
 35.24  classified as class 1c under Minnesota Statutes 1994, section 
 35.25  273.13, subdivision 22. 
 35.26     (f) The resident share of agricultural property is equal to 
 35.27  66.7 percent of the city's property classified as class 2, 
 35.28  except for farm homestead property, under Minnesota Statutes 
 35.29  1994, section 273.13, subdivision 23. 
 35.30     (g) The resident share of commercial property is equal to 
 35.31  40 percent of the tax capacity of the city's property which is 
 35.32  classified as commercial property under department of revenue 
 35.33  guidelines. 
 35.34     (h) The resident share of industrial property is equal to 
 35.35  33.3 percent of the tax capacity of the city's property which is 
 35.36  classified as industrial property under department of revenue 
 36.1   guidelines. 
 36.2      (i) The resident share of public utility property is equal 
 36.3   to 16.7 percent of the tax capacity of the city's property which 
 36.4   is classified as class 3 public utility property under Minnesota 
 36.5   Statutes 1994, section 273.13, subdivision 24. 
 36.6      (j) The resident share of mineral property is equal to 16.7 
 36.7   percent of mineral property as defined under Minnesota Statutes 
 36.8   1994, section 273.13, subdivision 31, clause (2). 
 36.9      (k) The resident share of railroad property is equal to 
 36.10  16.7 percent of the tax capacity of the city's railroad property 
 36.11  as defined under Minnesota Statutes 1994, section 270.80. 
 36.12     (l) the resident share of personal property is equal to 
 36.13  18.2 percent of the tax capacity of the city's personal property 
 36.14  as defined in Minnesota Statutes 1994, section 273.13, 
 36.15  subdivision 31, clause (l). 
 36.16     Subd. 5.  [CITY EXPORT RATIO.] The city export ratio is a 
 36.17  measure of the amount of tax exported from a city for each 
 36.18  dollar of tax paid by local residents.  The city export ratio 
 36.19  for a city is equal to (1) the sum of 
 36.20     (i) .30 multiplied by the city's resident share of 
 36.21  homestead property, 
 36.22     (ii) .15 multiplied by the city's resident share of small 
 36.23  rental property, 
 36.24     (iii) .25 multiplied by the city's resident share of other 
 36.25  apartment property, 
 36.26     (iv) 5.00 multiplied by the city's resident share of 
 36.27  seasonal recreational property, 
 36.28     (v) .50 multiplied by the city's resident share of 
 36.29  agricultural property, 
 36.30     (vi) 1.50 multiplied by the city's resident share of 
 36.31  commercial property, 
 36.32     (vii) 2.00 multiplied by the city's resident share of 
 36.33  industrial property, 
 36.34     (viii) 5.00 multiplied by the sum of the city's resident 
 36.35  shares of public utility property, mineral property, and 
 36.36  railroad property, and 
 37.1      (ix) 4.50 multiplied by the city's resident share of 
 37.2   personal property; 
 37.3   divided by (2) the total resident share of the city. 
 37.4      Subd. 6.  [STANDARD TAX BURDEN.] The standard tax burden is 
 37.5   equal to (1) the total for all large cities of: 
 37.6      (i) the sum of a city's levy from the previous year and the 
 37.7   revenue from the previous year due to the captured value of 
 37.8   property in its tax increment financing districts, as defined in 
 37.9   section 469.177, subdivision 2, less the revenue due to the 
 37.10  imposition of the school district tax rate on the captured tax 
 37.11  capacity in tax increment financing districts; multiplied by 
 37.12     (ii) the ratio of the city's total resident share to its 
 37.13  tax capacity; 
 37.14  divided by (2) the total for all large cities of resident's 
 37.15  income, as reported in the most recent federal census. 
 37.16     Subd. 7.  [REVENUE RAISING CAPACITY.] (a) The revenue 
 37.17  raising capacity for a large city is equal to the product of (1) 
 37.18  the standard tax burden, (2) the per capita income for residents 
 37.19  of the city, as reported in the most recent federal census, and 
 37.20  (3) the sum of (i) one, (ii) the city's export ratio, and (iii) 
 37.21  the ratio of the city's net distribution from the fiscal 
 37.22  disparities pool to the city's total resident share.  For 
 37.23  purposes of this subdivision "net distribution from the fiscal 
 37.24  disparities pool" means a city's fiscal disparities distribution 
 37.25  tax capacity under section 473F.08, subdivision 2, paragraph 
 37.26  (b), minus the city's fiscal disparities distribution tax 
 37.27  capacity under section 473F.08, subdivision 2, paragraph (a). 
 37.28     (b) The adjusted revenue raising capacity for each large 
 37.29  city is equal to its revenue raising capacity increased by the 
 37.30  sum of (1) the city revenue due to the imposition of the school 
 37.31  district tax rate on the captured tax capacity in the city's tax 
 37.32  increment districts, as defined in section 469.177, subdivision 
 37.33  2, (2) the transfers to the city's general funds in the previous 
 37.34  year from the city's municipal electric utilities and municipal 
 37.35  liquor store enterprise funds as reported by the state auditor, 
 37.36  divided by the city population, (3) the amount of special 
 38.1   assessments collected in the previous year, as reported by the 
 38.2   state auditor, divided by the city population, and (4) the 
 38.3   amount received by the city from the federal community 
 38.4   development block grant program in the previous year, divided by 
 38.5   the city's population. 
 38.6      Subd. 8.  [MINIMUM NEED GAP.] The minimum need gap is ... 
 38.7   percent of the difference between (1) the sum of the expenditure 
 38.8   need for all large cities divided by the number of large cities, 
 38.9   and (2) the sum of the adjusted revenue raising capacity for all 
 38.10  large cities divided by the number of large cities. 
 38.11     Subd. 9.  [LARGE CITY AID.] In calendar year 1996 and 
 38.12  subsequent years, each large city shall receive a distribution 
 38.13  equal to the compensation percentage of (1) the city's 
 38.14  expenditure need less the city's adjusted revenue raising 
 38.15  capacity and less the minimum need gap, multiplied by (2) the 
 38.16  city population. 
 38.17     Sec. 7.  Minnesota Statutes 1994, section 477A.014, 
 38.18  subdivision 1, is amended to read: 
 38.19     Subdivision 1.  [CALCULATIONS AND PAYMENTS.] The 
 38.20  commissioner of revenue shall make all necessary calculations 
 38.21  and make payments pursuant to sections 477A.012, 477A.013, 
 38.22  477A.0132 477A.0133, and 477A.03 directly to the affected taxing 
 38.23  authorities annually.  In addition, the commissioner shall 
 38.24  notify the authorities of their aid amounts, as well as the 
 38.25  computational factors used in making the calculations for their 
 38.26  authority, and those statewide total figures that are pertinent, 
 38.27  before August 1 of the year preceding the aid distribution 
 38.28  year.  For the purposes of this subdivision, aid is determined 
 38.29  for a city or town based on its city or town status as of June 
 38.30  30 of the year preceding the aid distribution year.  If the 
 38.31  effective date for a municipal incorporation, consolidation, 
 38.32  annexation, detachment, dissolution, or township organization is 
 38.33  on or before June 30 of the year preceding the aid distribution 
 38.34  year, such change in boundaries or form of government shall be 
 38.35  recognized for aid determinations for the aid distribution 
 38.36  year.  If the effective date for a municipal incorporation, 
 39.1   consolidation, annexation, detachment, dissolution, or township 
 39.2   organization is after June 30 of the year preceding the aid 
 39.3   distribution year, such change in boundaries or form of 
 39.4   government shall not be recognized for aid determinations until 
 39.5   the following year.  
 39.6      Sec. 8.  Minnesota Statutes 1994, section 477A.014, 
 39.7   subdivision 3, is amended to read: 
 39.8      Subd. 3.  [AID AMOUNT CORRECTION.] If, due to an error in 
 39.9   the factors used to calculate a taxing authority's aid pursuant 
 39.10  to section 477A.012 or, 477A.013, or 477A.0133 the amount 
 39.11  indicated in the certification of the commissioner to the taxing 
 39.12  authority for a year is less than the amount to which it is 
 39.13  entitled pursuant to this section, the commissioner of revenue 
 39.14  shall additionally distribute the amount necessary to make the 
 39.15  full correct distribution to the taxing authority.  The 
 39.16  additional distribution shall be paid from the general fund and 
 39.17  shall not diminish the distributions made to other taxing 
 39.18  authorities under this section.  
 39.19     Sec. 9.  Minnesota Statutes 1994, section 477A.03, 
 39.20  subdivision 2, is amended to read: 
 39.21     Subd. 2.  [ANNUAL APPROPRIATION.] A sum sufficient to 
 39.22  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 39.23  annually appropriated from the general fund to the commissioner 
 39.24  of revenue.  For aids payable in 1996 and thereafter, the total 
 39.25  aids paid under sections 477A.013, subdivision 9 10, and 
 39.26  477A.0133 are limited to $150,000,000; the total aids paid under 
 39.27  section 477A.0121, are limited to $8,400,000; and the total aids 
 39.28  paid under section 477A.0122 are the amounts certified to be 
 39.29  paid in the previous year, adjusted for inflation as provided 
 39.30  under subdivision 3 limited to $1,500,000. 
 39.31     Sec. 10.  [INSTRUCTION TO REVISOR.] 
 39.32     The revisor of statutes shall change the headnote for 
 39.33  Minnesota Statutes, section 477A.013, as appropriate. 
 39.34     Sec. 11.  [REPEALER.] 
 39.35     Minnesota Statutes 1994, sections 477A.011, subdivisions 
 39.36  19, 28, and 29; 477A.012; 477A.013, subdivisions 6, 8, and 9; 
 40.1   477A.014, subdivision 1a; and 477A.03, subdivision 3, are 
 40.2   repealed. 
 40.3      Sec. 12.  [EFFECTIVE DATE.] 
 40.4      Sections 1 to 9 and 11 are effective for aids payable 
 40.5   beginning in calendar year 1996, and thereafter. 
 40.6                              ARTICLE 5
 40.7                      MUNICIPAL SERVICE CHARGES
 40.8      Section 1.  [429.102] [SERVICE CHARGES; TAX-EXEMPT 
 40.9   PROPERTY.] 
 40.10     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 40.11  article, the following terms have the meanings given them. 
 40.12     (b) "Basic public services" means the amount expended by 
 40.13  the city for police, fire, sanitation, and other similar 
 40.14  property service related public services, as determined by 
 40.15  resolution of the city.  Basic public services does not include 
 40.16  any expenditures for improvements or services that are specially 
 40.17  assessed or charged under chapter 429, 430, 435, or the 
 40.18  provisions of any other law or charter. 
 40.19     (c) "Tax-exempt property" means a building or part of a 
 40.20  building exempt from ad valorem property taxation under section 
 40.21  272.02 or other law, except: 
 40.22     (1) property owned and used by the federal government; 
 40.23     (2) all public school houses for elementary and secondary 
 40.24  education; 
 40.25     (3) academies, colleges, universities, and seminaries of 
 40.26  learning; 
 40.27     (4) houses of worship and other church property owned and 
 40.28  used exclusively for church purposes; 
 40.29     (5) property owned and used by an Indian tribe or tribal 
 40.30  corporation; 
 40.31     (6) property for which payments in lieu of property taxes 
 40.32  are made under any other law; or 
 40.33     (7) property on which a tax is imposed under section 
 40.34  272.01, subdivisions 2 and 3, 273.19, or any other law. 
 40.35     If properties are used for multiple uses some of which are 
 40.36  exempt and others taxable, the taxable part of the value of the 
 41.1   property must be determined using some appropriate apportionment 
 41.2   factor, such as the amount of use for exempt and nonexempt 
 41.3   purposes, as prescribed by the commissioner of revenue.  
 41.4      (d) "Qualifying costs" means basic public services 
 41.5   multiplied by a fraction.  The numerator of the fraction is the 
 41.6   city's levy for the current year.  The denominator of the 
 41.7   fraction is total city expenditures for the current year. 
 41.8      (e) "Qualifying value" means the total net tax capacity of 
 41.9   tax-exempt property as defined in paragraph (c) in the city as 
 41.10  determined by the assessor under subdivision 3, divided by the 
 41.11  total net tax capacity of all taxable and tax-exempt property in 
 41.12  the city.  For purposes of making this determination, the net 
 41.13  tax capacity of tax-exempt property will be obtained by 
 41.14  multiplying the assessor's estimated market value of the exempt 
 41.15  property times a class rate of one percent. 
 41.16     (f) "City" means a home rule charter or statutory city. 
 41.17     Subd. 2.  [CITY SERVICE CHARGE.] A city may by resolution 
 41.18  impose a service charge to pay for the cost of providing basic 
 41.19  public services to tax-exempt property.  If imposed, the service 
 41.20  charge must apply to all tax-exempt property located within the 
 41.21  city and must be calculated as provided in this section.  The 
 41.22  resolution must be adopted by August 1 to be effective for 
 41.23  service charges payable the following year.  The city clerk 
 41.24  shall forward a copy of the resolution to the city and county 
 41.25  assessor, county auditor, and county treasurer of the county in 
 41.26  which the city is located within ten business days after 
 41.27  adoption of the resolution.  The city service charge imposed 
 41.28  under this section is in addition to any service charges imposed 
 41.29  under section 429.101. 
 41.30     Subd. 3.  [CALCULATION OF SERVICE CHARGE.] (a) The assessor 
 41.31  responsible for assessing taxable property in the city shall 
 41.32  determine at the time and in the manner specified for other 
 41.33  properties the net tax capacity of each tax-exempt property as 
 41.34  defined in subdivision 1, paragraph (c), in the city with 
 41.35  reference to January 2 of the current year. 
 41.36     (b) The county auditor shall determine and multiply the 
 42.1   qualifying value for the city times the qualifying costs for the 
 42.2   city.  The product of the calculation is the service charge to 
 42.3   be allocated among all tax-exempt properties in the city for the 
 42.4   current calendar year.  The amount of the service charge must be 
 42.5   allocated to each tax-exempt property in the proportion that its 
 42.6   net tax capacity determined under paragraph (a) bears to the 
 42.7   total net tax capacity for the city.  The service charge must be 
 42.8   calculated and allocated to the individual properties by 
 42.9   December 31. 
 42.10     Subd. 4.  [PAYMENT.] A statement of the amount due under 
 42.11  subdivision 3 must be mailed to the owner of the tax-exempt 
 42.12  property by February 1 of the succeeding year.  For the purpose 
 42.13  of mailing statements under this section, owners shall be those 
 42.14  shown on the records of the county auditor or any other records 
 42.15  the county deems appropriate.  Owners of the properties may 
 42.16  designate in writing to the county auditor the person and 
 42.17  address to which the statements must be mailed. 
 42.18     Payment must be made to the county treasurer on or before 
 42.19  May 15.  If the amount due exceeds $100, payment may be made in 
 42.20  two equal installments on or before May 15 and on or before July 
 42.21  15.  The city may provide by resolution an alternate payment 
 42.22  schedule if the schedule applies equally to all properties on 
 42.23  which a service charge is imposed under this section.  The 
 42.24  amounts received by the county under this section shall be 
 42.25  included in the property tax settlement distributions under 
 42.26  sections 276.11 and 276.111. 
 42.27     If the service charge is not paid by the due date, interest 
 42.28  accrues from the date the installment is due and is payable at 
 42.29  the rate determined under section 549.09.  Service charges 
 42.30  imposed under this section constitute a lien upon the property 
 42.31  on which they are imposed.  The liens attach and may be enforced 
 42.32  in the same manner and have the same priority as liens for 
 42.33  special assessments.  The city may enforce payment of the 
 42.34  charges in the same manner as other debts owed the city. 
 42.35     Subd. 5.  [APPROPRIATION.] The amount necessary to make the 
 42.36  payments required in this section by the state is annually 
 43.1   appropriated from the general fund to the commissioner of 
 43.2   revenue. 
 43.3      Sec. 2.  [EFFECTIVE DATE.] 
 43.4      Section 1 is effective for service charges imposed after 
 43.5   December 31, 1996. 
 43.6                              ARTICLE 6
 43.7                       STATE AID RESTRUCTURING
 43.8      Section 1.  Minnesota Statutes 1994, section 124.226, 
 43.9   subdivision 1, is amended to read: 
 43.10     Subdivision 1.  [BASIC TRANSPORTATION.] Each year, a school 
 43.11  district may levy for school transportation services an amount 
 43.12  not to exceed the amount raised by the basic transportation tax 
 43.13  rate times the adjusted net tax capacity of the district for the 
 43.14  preceding year.  The commissioner of education shall establish 
 43.15  the basic transportation tax rate by July 1 of each year for 
 43.16  levies payable in the following year.  The basic transportation 
 43.17  tax rate shall be a rate, rounded up to the nearest hundredth of 
 43.18  a percent, that, when applied to the adjusted net tax capacity 
 43.19  of taxable property for all districts, raises the amount 
 43.20  specified in this subdivision.  The basic transportation tax 
 43.21  rate for transportation shall be the rate that raises 
 43.22  $64,300,000 for fiscal year 1993 and, $68,000,000 for fiscal 
 43.23  year 1994, and $30,000,000 for fiscal year 1997 and subsequent 
 43.24  fiscal years.  The basic transportation tax rate certified by 
 43.25  the commissioner of education must not be changed due to changes 
 43.26  or corrections made to a district's adjusted net tax capacity 
 43.27  after the tax rate has been certified. 
 43.28     Sec. 2.  Minnesota Statutes 1994, section 124A.23, 
 43.29  subdivision 1, is amended to read: 
 43.30     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 43.31  commissioner shall establish the general education tax rate by 
 43.32  July 1 of each year for levies payable in the following year.  
 43.33  The general education tax capacity rate shall be a rate, rounded 
 43.34  up to the nearest tenth of a percent, that, when applied to the 
 43.35  adjusted net tax capacity for all districts, raises the amount 
 43.36  specified in this subdivision.  The general education tax rate 
 44.1   shall be the rate that raises $1,044,000,000 for fiscal year 
 44.2   1995 and, $1,054,000,000 for fiscal year 1996, and $727,800,000 
 44.3   for fiscal year 1997 and later fiscal years.  The general 
 44.4   education tax rate may not be changed due to changes or 
 44.5   corrections made to a district's adjusted net tax capacity after 
 44.6   the tax rate has been established.  
 44.7      Sec. 3.  Minnesota Statutes 1994, section 256E.06, 
 44.8   subdivision 13, is amended to read: 
 44.9      Subd. 13.  [APPROPRIATION.] In fiscal years 1997 and 
 44.10  thereafter, there is appropriated from the general fund to the 
 44.11  commissioner of human services for payment of aid under this 
 44.12  section the amount appropriated in the previous year under this 
 44.13  section, adjusted for inflation as provided under section 
 44.14  477A.03, subdivision 3.  
 44.15     Notwithstanding subdivisions 1 and 2, the increased 
 44.16  appropriation available in fiscal year 1997 and thereafter must 
 44.17  be used to increase each county's aid proportionately over the 
 44.18  aid received in calendar year 1994. 
 44.19     Sec. 4.  Minnesota Statutes 1994, section 273.1392, is 
 44.20  amended to read: 
 44.21     273.1392 [PAYMENT; SCHOOL DISTRICTS; COUNTIES.] 
 44.22     The amounts of conservation tax credits under section 
 44.23  273.119; disaster or emergency reimbursement under section 
 44.24  273.123; attached machinery aid under section 273.138; homestead 
 44.25  credit under section 273.13; aids and credits under section 
 44.26  273.1398; enterprise zone property credit payments under section 
 44.27  469.171; and metropolitan agricultural preserve reduction under 
 44.28  section 473H.10, shall be certified to the department of 
 44.29  education by the department of revenue.  The amounts so 
 44.30  certified shall be paid according to section 124.195, 
 44.31  subdivisions 6 and 10. 
 44.32     Sec. 5.  [COMMUNITY HEALTH SERVICES APPROPRIATION.] 
 44.33     $28,224,000 in fiscal year 1997 is appropriated from the 
 44.34  general fund to the commissioner of health to provide subsidies 
 44.35  under Minnesota Statutes, section 145A.13. 
 44.36     Sec. 6.  [APPROPRIATION; ADMINISTRATIVE COSTS.] 
 45.1      $5,000,000 is appropriated for fiscal year 1996 from the 
 45.2   general fund to the commissioner of revenue to reimburse 
 45.3   counties for costs of compliance with this act for taxes payable 
 45.4   in 1997.  This appropriation must be apportioned among the 
 45.5   counties and distributed by the commissioner of revenue in the 
 45.6   same manner that the appropriation in Laws 1988, chapter 719, 
 45.7   article 5, section 85, was apportioned and distributed. 
 45.8      Sec. 7.  [REPEALER.] 
 45.9      Minnesota Statutes 1994, sections 273.1398; and 275.08, 
 45.10  subdivisions 1c and 1d, are repealed. 
 45.11     Sec. 8.  [EFFECTIVE DATE.] 
 45.12     Sections 1, 2, and 7 are effective for property taxes 
 45.13  payable in 1997, and thereafter.  Section 5 is effective January 
 45.14  1, 1997.  Sections 3, 4, and 7 are effective July 1, 1995.