SF 2868

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

  1.1                          A bill for an act 
  1.2             relating to taxation; proposing an amendment to the 
  1.3             Constitution limiting the use of property taxes to 
  1.4             fund education; providing property tax reform; 
  1.5             providing for education aids; providing for local 
  1.6             government aids; providing county program reform aid; 
  1.7             changing property class rates on nonhomestead and 
  1.8             commercial industrial property; increasing property 
  1.9             tax refunds for homeowners and renters; providing a 
  1.10            property tax refund for cabins; imposing the sales tax 
  1.11            on sewer and water services, motor vehicle services, 
  1.12            and sales of used clothing; appropriating money; 
  1.13            amending Minnesota Statutes 1994, sections 124.2716, 
  1.14            subdivision 3; 124.2727, subdivision 6b; 162.081, 
  1.15            subdivision 4; 273.13, subdivision 32; 273.1398, 
  1.16            subdivision 2; 273.1399, subdivision 5; 275.07, 
  1.17            subdivision 1a; 290A.03, by adding a subdivision; 
  1.18            290A.04, subdivisions 1, 2, and by adding a 
  1.19            subdivision; 290A.10; 290A.23, subdivision 3; 297A.25, 
  1.20            subdivision 8; 477A.011, subdivisions 27, 34, and by 
  1.21            adding subdivisions; and 477A.013, subdivisions 8 and 
  1.22            9; Minnesota Statutes 1995 Supplement, sections 
  1.23            124.226, subdivision 10; 124.2711, subdivision 2a; 
  1.24            124.83, subdivision 4; 124.95, subdivision 4; 124A.23, 
  1.25            subdivision 1; 273.13, subdivision 25; 273.1398, 
  1.26            subdivisions 1, 6, and 8; 276.04, subdivision 2; 
  1.27            290A.03, subdivision 13; 290A.04, subdivision 6; 
  1.28            297A.01, subdivision 3; 473.253, subdivision 1; 
  1.29            473.711, subdivision 2; 477A.0132, subdivision 3; and 
  1.30            477A.03, subdivision 2; proposing coding for new law 
  1.31            in Minnesota Statutes, chapter 477A; repealing 
  1.32            Minnesota Statutes 1994, sections 290A.04, 
  1.33            subdivisions 2a and 2b; 290A.23, subdivision 1; 
  1.34            477A.011, subdivisions 35 and 37; 477A.013, 
  1.35            subdivision 6; and 477A.014, subdivision 1a; Minnesota 
  1.36            Statutes 1995 Supplement, section 477A.011, 
  1.37            subdivision 36. 
  1.38  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.39                             ARTICLE 1 
  1.40                      CONSTITUTIONAL AMENDMENT 
  1.41     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  2.1      An amendment to the Minnesota Constitution, adding a 
  2.2   section to article X is proposed to the people. 
  2.3      If adopted, the section will read as follows: 
  2.4      Sec. 9.  No less than two-thirds of the costs of operating 
  2.5   the state's entire system of public primary and secondary 
  2.6   schools will be funded from sources other than property taxes.  
  2.7   This limitation does not apply to the extent that property tax 
  2.8   revenues exceeding this limit are authorized by local 
  2.9   referendums. 
  2.10     Sec. 2.  [SUBMISSION TO VOTERS.] 
  2.11     The proposed amendment must be submitted to the people at 
  2.12  the 1996 general election.  The question submitted shall be: 
  2.13     "Shall the Minnesota Constitution be amended to limit 
  2.14  property taxes for public education? 
  2.15                                     Yes .......
  2.16                                     No ........"
  2.17     Sec. 3.  [SUBMISSION TO VOTERS CANCELED.] 
  2.18     If the remainder of this bill including any appropriations 
  2.19  in it does not become law, the question in section 2 shall not 
  2.20  be submitted to the voters. 
  2.21                             ARTICLE 2 
  2.22                           PROPERTY TAXES 
  2.23     Section 1.  Minnesota Statutes 1994, section 162.081, 
  2.24  subdivision 4, is amended to read: 
  2.25     Subd. 4.  [FORMULA FOR DISTRIBUTION TO TOWNS; PURPOSES.] 
  2.26  Money apportioned to a county from the town road account must be 
  2.27  distributed to the treasurer of each town within the county, 
  2.28  according to a distribution formula adopted by the county 
  2.29  board.  The formula must take into account each town's levy for 
  2.30  road and bridge purposes, its population and town road mileage, 
  2.31  and other factors the county board deems advisable in the 
  2.32  interests of achieving equity among the towns.  Distribution of 
  2.33  town road funds to each town treasurer must be made by March 1, 
  2.34  annually, or within 30 days after receipt of payment from the 
  2.35  commissioner.  Distribution of funds to town treasurers in a 
  2.36  county which has not adopted a distribution formula under this 
  3.1   subdivision must be made according to a formula prescribed by 
  3.2   the commissioner by rule.  A formula adopted by a county board 
  3.3   or by the commissioner must provide that a town, in order to be 
  3.4   eligible for distribution of funds from the town road account in 
  3.5   a calendar year, must have levied before the deduction of 
  3.6   homestead and agricultural credit aid certified under section 
  3.7   273.1398, subdivision 2, for taxes payable in the previous year 
  3.8   for road and bridge purposes at least 0.04835 percent of taxable 
  3.9   market value.  For purposes of this eligibility requirement, 
  3.10  taxable market value means taxable market value for taxes 
  3.11  payable two years prior to the aid distribution year.  
  3.12     Money distributed to a town under this subdivision may be 
  3.13  expended by the town only for the construction, reconstruction, 
  3.14  and gravel maintenance of town roads within the town. 
  3.15     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  3.16  273.13, subdivision 25, is amended to read: 
  3.17     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
  3.18  estate containing four or more units and used or held for use by 
  3.19  the owner or by the tenants or lessees of the owner as a 
  3.20  residence for rental periods of 30 days or more.  Class 4a also 
  3.21  includes hospitals licensed under sections 144.50 to 144.56, 
  3.22  other than hospitals exempt under section 272.02, and contiguous 
  3.23  property used for hospital purposes, without regard to whether 
  3.24  the property has been platted or subdivided.  Class 4a property 
  3.25  in a city with a population of 5,000 or less, that is (1) 
  3.26  located outside of the metropolitan area, as defined in section 
  3.27  473.121, subdivision 2, or outside any county contiguous to the 
  3.28  metropolitan area, and (2) whose city boundary is at least 15 
  3.29  miles from the boundary of any city with a population greater 
  3.30  than 5,000 has a class rate of 2.3 percent of market value for 
  3.31  taxes payable in 1996 and thereafter.  All other class 4a 
  3.32  property has a class rate of 3.4 percent of market value for 
  3.33  taxes payable in 1996 3.0 percent for taxes payable in 1997 and 
  3.34  thereafter.  For purposes of this paragraph, population has the 
  3.35  same meaning given in section 477A.011, subdivision 3. 
  3.36     (b) Class 4b includes: 
  4.1      (1) residential real estate containing less than four 
  4.2   units, other than seasonal residential, and recreational; 
  4.3      (2) manufactured homes not classified under any other 
  4.4   provision; 
  4.5      (3) a dwelling, garage, and surrounding one acre of 
  4.6   property on a nonhomestead farm classified under subdivision 23, 
  4.7   paragraph (b).  
  4.8      Class 4b property has a class rate of 2.8 percent of market 
  4.9   value for taxes payable in 1992, 2.5 percent of market value for 
  4.10  taxes payable in 1993, and 2.3 percent of market value for taxes 
  4.11  payable in 1994 2.0 percent for taxes payable in 1997 and 
  4.12  thereafter, provided that the first $72,000 market value of 
  4.13  class 4b single family residences has a class rate of 1.75 
  4.14  percent for taxes payable in 1998, 1.5 percent for taxes payable 
  4.15  in 1999, 1.25 percent for taxes payable in 2000, and 1.0 percent 
  4.16  for taxes payable in 2001 and thereafter. 
  4.17     (c) Class 4c property includes: 
  4.18     (1) a structure that is:  
  4.19     (i) situated on real property that is used for housing for 
  4.20  the elderly or for low- and moderate-income families as defined 
  4.21  in Title II, as amended through December 31, 1990, of the 
  4.22  National Housing Act or the Minnesota housing finance agency law 
  4.23  of 1971, as amended, or rules promulgated by the agency and 
  4.24  financed by a direct federal loan or federally insured loan made 
  4.25  pursuant to Title II of the Act; or 
  4.26     (ii) situated on real property that is used for housing the 
  4.27  elderly or for low- and moderate-income families as defined by 
  4.28  the Minnesota housing finance agency law of 1971, as amended, or 
  4.29  rules adopted by the agency pursuant thereto and financed by a 
  4.30  loan made by the Minnesota housing finance agency pursuant to 
  4.31  the provisions of the act.  
  4.32     This clause applies only to property of a nonprofit or 
  4.33  limited dividend entity.  Property is classified as class 4c 
  4.34  under this clause for 15 years from the date of the completion 
  4.35  of the original construction or substantial rehabilitation, or 
  4.36  for the original term of the loan.  
  5.1      (2) a structure that is: 
  5.2      (i) situated upon real property that is used for housing 
  5.3   lower income families or elderly or handicapped persons, as 
  5.4   defined in section 8 of the United States Housing Act of 1937, 
  5.5   as amended; and 
  5.6      (ii) owned by an entity which has entered into a housing 
  5.7   assistance payments contract under section 8 which provides 
  5.8   assistance for 100 percent of the dwelling units in the 
  5.9   structure, other than dwelling units intended for management or 
  5.10  maintenance personnel.  Property is classified as class 4c under 
  5.11  this clause for the term of the housing assistance payments 
  5.12  contract, including all renewals, or for the term of its 
  5.13  permanent financing, whichever is shorter; and 
  5.14     (3) a qualified low-income building as defined in section 
  5.15  42(c)(2) of the Internal Revenue Code of 1986, as amended 
  5.16  through December 31, 1990, that (i) receives a low-income 
  5.17  housing credit under section 42 of the Internal Revenue Code of 
  5.18  1986, as amended through December 31, 1990; or (ii) meets the 
  5.19  requirements of that section and receives public financing, 
  5.20  except financing provided under sections 469.174 to 469.179, 
  5.21  which contains terms restricting the rents; or (iii) meets the 
  5.22  requirements of section 273.1317.  Classification pursuant to 
  5.23  this clause is limited to a term of 15 years.  The public 
  5.24  financing received must be from at least one of the following 
  5.25  sources:  government issued bonds exempt from taxes under 
  5.26  section 103 of the Internal Revenue Code of 1986, as amended 
  5.27  through December 31, 1993, the proceeds of which are used for 
  5.28  the acquisition or rehabilitation of the building; programs 
  5.29  under section 221(d)(3), 202, or 236, of Title II of the 
  5.30  National Housing Act; rental housing program funds under Section 
  5.31  8 of the United States Housing Act of 1937 or the market rate 
  5.32  family graduated payment mortgage program funds administered by 
  5.33  the Minnesota housing finance agency that are used for the 
  5.34  acquisition or rehabilitation of the building; public financing 
  5.35  provided by a local government used for the acquisition or 
  5.36  rehabilitation of the building, including grants or loans from 
  6.1   federal community development block grants, HOME block grants, 
  6.2   or residential rental bonds issued under chapter 474A; or other 
  6.3   rental housing program funds provided by the Minnesota housing 
  6.4   finance agency for the acquisition or rehabilitation of the 
  6.5   building. 
  6.6      For all properties described in clauses (1), (2), and (3) 
  6.7   and in paragraph (d), the market value determined by the 
  6.8   assessor must be based on the normal approach to value using 
  6.9   normal unrestricted rents unless the owner of the property 
  6.10  elects to have the property assessed under Laws 1991, chapter 
  6.11  291, article 1, section 55.  If the owner of the property elects 
  6.12  to have the market value determined on the basis of the actual 
  6.13  restricted rents, as provided in Laws 1991, chapter 291, article 
  6.14  1, section 55, the property will be assessed at the rate 
  6.15  provided for class 4a or class 4b property, as appropriate.  
  6.16  Properties described in clauses (1)(ii), (3), and (4) may apply 
  6.17  to the assessor for valuation under Laws 1991, chapter 291, 
  6.18  article 1, section 55.  The land on which these structures are 
  6.19  situated has the class rate given in paragraph (b) if the 
  6.20  structure contains fewer than four units, and the class rate 
  6.21  given in paragraph (a) if the structure contains four or more 
  6.22  units.  This clause applies only to the property of a nonprofit 
  6.23  or limited dividend entity.  
  6.24     (4) a parcel of land, not to exceed one acre, and its 
  6.25  improvements or a parcel of unimproved land, not to exceed one 
  6.26  acre, if it is owned by a neighborhood real estate trust and at 
  6.27  least 60 percent of the dwelling units, if any, on all land 
  6.28  owned by the trust are leased to or occupied by lower income 
  6.29  families or individuals.  This clause does not apply to any 
  6.30  portion of the land or improvements used for nonresidential 
  6.31  purposes.  For purposes of this clause, a lower income family is 
  6.32  a family with an income that does not exceed 65 percent of the 
  6.33  median family income for the area, and a lower income individual 
  6.34  is an individual whose income does not exceed 65 percent of the 
  6.35  median individual income for the area, as determined by the 
  6.36  United States Secretary of Housing and Urban Development.  For 
  7.1   purposes of this clause, "neighborhood real estate trust" means 
  7.2   an entity which is certified by the governing body of the 
  7.3   municipality in which it is located to have the following 
  7.4   characteristics: 
  7.5      (a) it is a nonprofit corporation organized under chapter 
  7.6   317A; 
  7.7      (b) it has as its principal purpose providing housing for 
  7.8   lower income families in a specific geographic community 
  7.9   designated in its articles or bylaws; 
  7.10     (c) it limits membership with voting rights to residents of 
  7.11  the designated community; and 
  7.12     (d) it has a board of directors consisting of at least 
  7.13  seven directors, 60 percent of whom are members with voting 
  7.14  rights and, to the extent feasible, 25 percent of whom are 
  7.15  elected by resident members of buildings owned by the trust; and 
  7.16     (5) except as provided in subdivision 22, paragraph (c), 
  7.17  real property devoted to temporary and seasonal residential 
  7.18  occupancy for recreation purposes, including real property 
  7.19  devoted to temporary and seasonal residential occupancy for 
  7.20  recreation purposes and not devoted to commercial purposes for 
  7.21  more than 250 days in the year preceding the year of 
  7.22  assessment.  For purposes of this clause, property is devoted to 
  7.23  a commercial purpose on a specific day if any portion of the 
  7.24  property is used for residential occupancy, and a fee is charged 
  7.25  for residential occupancy.  Class 4c also includes commercial 
  7.26  use real property used exclusively for recreational purposes in 
  7.27  conjunction with class 4c property devoted to temporary and 
  7.28  seasonal residential occupancy for recreational purposes, up to 
  7.29  a total of two acres, provided the property is not devoted to 
  7.30  commercial recreational use for more than 250 days in the year 
  7.31  preceding the year of assessment and is located within two miles 
  7.32  of the class 4c property with which it is used.  Class 4c 
  7.33  property classified in this clause also includes the remainder 
  7.34  of class 1c resorts.  Owners of real property devoted to 
  7.35  temporary and seasonal residential occupancy for recreation 
  7.36  purposes and all or a portion of which was devoted to commercial 
  8.1   purposes for not more than 250 days in the year preceding the 
  8.2   year of assessment desiring classification as class 1c or 4c, 
  8.3   must submit a declaration to the assessor designating the cabins 
  8.4   or units occupied for 250 days or less in the year preceding the 
  8.5   year of assessment by January 15 of the assessment year.  Those 
  8.6   cabins or units and a proportionate share of the land on which 
  8.7   they are located will be designated class 1c or 4c as otherwise 
  8.8   provided.  The remainder of the cabins or units and a 
  8.9   proportionate share of the land on which they are located will 
  8.10  be designated as class 3a.  The first $100,000 of the market 
  8.11  value of the remainder of the cabins or units and a 
  8.12  proportionate share of the land on which they are located shall 
  8.13  have a class rate of three percent.  The owner of property 
  8.14  desiring designation as class 1c or 4c property must provide 
  8.15  guest registers or other records demonstrating that the units 
  8.16  for which class 1c or 4c designation is sought were not occupied 
  8.17  for more than 250 days in the year preceding the assessment if 
  8.18  so requested.  The portion of a property operated as a (1) 
  8.19  restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
  8.20  facility operated on a commercial basis not directly related to 
  8.21  temporary and seasonal residential occupancy for recreation 
  8.22  purposes shall not qualify for class 1c or 4c; 
  8.23     (6) real property up to a maximum of one acre of land owned 
  8.24  by a nonprofit community service oriented organization; provided 
  8.25  that the property is not used for a revenue-producing activity 
  8.26  for more than six days in the calendar year preceding the year 
  8.27  of assessment and the property is not used for residential 
  8.28  purposes on either a temporary or permanent basis.  For purposes 
  8.29  of this clause, a "nonprofit community service oriented 
  8.30  organization" means any corporation, society, association, 
  8.31  foundation, or institution organized and operated exclusively 
  8.32  for charitable, religious, fraternal, civic, or educational 
  8.33  purposes, and which is exempt from federal income taxation 
  8.34  pursuant to section 501(c)(3), (10), or (19) of the Internal 
  8.35  Revenue Code of 1986, as amended through December 31, 1990.  For 
  8.36  purposes of this clause, "revenue-producing activities" shall 
  9.1   include but not be limited to property or that portion of the 
  9.2   property that is used as an on-sale intoxicating liquor or 3.2 
  9.3   percent malt liquor establishment licensed under chapter 340A, a 
  9.4   restaurant open to the public, bowling alley, a retail store, 
  9.5   gambling conducted by organizations licensed under chapter 349, 
  9.6   an insurance business, or office or other space leased or rented 
  9.7   to a lessee who conducts a for-profit enterprise on the 
  9.8   premises.  Any portion of the property which is used for 
  9.9   revenue-producing activities for more than six days in the 
  9.10  calendar year preceding the year of assessment shall be assessed 
  9.11  as class 3a.  The use of the property for social events open 
  9.12  exclusively to members and their guests for periods of less than 
  9.13  24 hours, when an admission is not charged nor any revenues are 
  9.14  received by the organization shall not be considered a 
  9.15  revenue-producing activity; 
  9.16     (7) post-secondary student housing of not more than one 
  9.17  acre of land that is owned by a nonprofit corporation organized 
  9.18  under chapter 317A and is used exclusively by a student 
  9.19  cooperative, sorority, or fraternity for on-campus housing or 
  9.20  housing located within two miles of the border of a college 
  9.21  campus; and 
  9.22     (8) manufactured home parks as defined in section 327.14, 
  9.23  subdivision 3. 
  9.24     Class 4c property has a class rate of 2.3 percent of market 
  9.25  value, except that (i) for each parcel of seasonal residential 
  9.26  recreational property not used for commercial purposes under 
  9.27  clause (5) the first $72,000 of market value on each parcel has 
  9.28  a class rate of 1.9 percent for taxes payable in 1997 and 1.8 
  9.29  percent for taxes payable in 1998 and thereafter, and the market 
  9.30  value of each parcel that exceeds $72,000 has a class rate of 
  9.31  2.5 percent, and (ii) manufactured home parks assessed under 
  9.32  clause (8) have a class rate of two percent for taxes payable in 
  9.33  1996, and thereafter.  
  9.34     (d) Class 4d property includes: 
  9.35     (1) a structure that is: 
  9.36     (i) situated on real property that is used for housing for 
 10.1   the elderly or for low and moderate income families as defined 
 10.2   by the Farmers Home Administration; 
 10.3      (ii) located in a municipality of less than 10,000 
 10.4   population; and 
 10.5      (iii) financed by a direct loan or insured loan from the 
 10.6   Farmers Home Administration.  Property is classified under this 
 10.7   clause for 15 years from the date of the completion of the 
 10.8   original construction or for the original term of the loan.  
 10.9      The class rates in paragraph (c), clauses (1), (2), and (3) 
 10.10  and this clause apply to the properties described in them, only 
 10.11  in proportion to occupancy of the structure by elderly or 
 10.12  handicapped persons or low and moderate income families as 
 10.13  defined in the applicable laws unless construction of the 
 10.14  structure had been commenced prior to January 1, 1984; or the 
 10.15  project had been approved by the governing body of the 
 10.16  municipality in which it is located prior to June 30, 1983; or 
 10.17  financing of the project had been approved by a federal or state 
 10.18  agency prior to June 30, 1983.  For those properties, 4c or 4d 
 10.19  classification is available only for those units meeting the 
 10.20  requirements of section 273.1318. 
 10.21     Classification under this clause is only available to 
 10.22  property of a nonprofit or limited dividend entity. 
 10.23     In the case of a structure financed or refinanced under any 
 10.24  federal or state mortgage insurance or direct loan program 
 10.25  exclusively for housing for the elderly or for housing for the 
 10.26  handicapped, a unit shall be considered occupied so long as it 
 10.27  is actually occupied by an elderly or handicapped person or, if 
 10.28  vacant, is held for rental to an elderly or handicapped person. 
 10.29     (2) For taxes payable in 1992, 1993, and 1994, only, 
 10.30  buildings and appurtenances, together with the land upon which 
 10.31  they are located, leased by the occupant under the community 
 10.32  lending model lease-purchase mortgage loan program administered 
 10.33  by the Federal National Mortgage Association, provided the 
 10.34  occupant's income is no greater than 60 percent of the county or 
 10.35  area median income, adjusted for family size and the building 
 10.36  consists of existing single family or duplex housing.  The lease 
 11.1   agreement must provide for a portion of the lease payment to be 
 11.2   escrowed as a nonrefundable down payment on the housing.  To 
 11.3   qualify under this clause, the taxpayer must apply to the county 
 11.4   assessor by May 30 of each year.  The application must be 
 11.5   accompanied by an affidavit or other proof required by the 
 11.6   assessor to determine qualification under this clause. 
 11.7      (3) Qualifying buildings and appurtenances, together with 
 11.8   the land upon which they are located, leased for a period of up 
 11.9   to five years by the occupant under a lease-purchase program 
 11.10  administered by the Minnesota housing finance agency or a 
 11.11  housing and redevelopment authority authorized under sections 
 11.12  469.001 to 469.047, provided the occupant's income is no greater 
 11.13  than 80 percent of the county or area median income, adjusted 
 11.14  for family size, and the building consists of two or less 
 11.15  dwelling units.  The lease agreement must provide for a portion 
 11.16  of the lease payment to be escrowed as a nonrefundable down 
 11.17  payment on the housing.  The administering agency shall verify 
 11.18  the occupants income eligibility and certify to the county 
 11.19  assessor that the occupant meets the income criteria under this 
 11.20  paragraph.  To qualify under this clause, the taxpayer must 
 11.21  apply to the county assessor by May 30 of each year.  For 
 11.22  purposes of this section, "qualifying buildings and 
 11.23  appurtenances" shall be defined as one or two unit residential 
 11.24  buildings which are unoccupied and have been abandoned and 
 11.25  boarded for at least six months. 
 11.26     Class 4d property has a class rate of two percent of market 
 11.27  value except that property classified under clause (3), shall 
 11.28  have the same class rate as class 1a property. 
 11.29     (e) Residential rental property that would otherwise be 
 11.30  assessed as class 4 property under paragraph (a); paragraph (b), 
 11.31  clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
 11.32  (4), is assessed at the class rate applicable to it under 
 11.33  Minnesota Statutes 1988, section 273.13, if it is found to be a 
 11.34  substandard building under section 273.1316.  Residential rental 
 11.35  property that would otherwise be assessed as class 4 property 
 11.36  under paragraph (d) is assessed at 2.3 percent of market value 
 12.1   if it is found to be a substandard building under section 
 12.2   273.1316. 
 12.3      Sec. 3.  Minnesota Statutes 1994, section 273.13, 
 12.4   subdivision 32, is amended to read: 
 12.5      Subd. 32.  [TARGET CLASS RATE.] All classes of property 
 12.6   with a class rate of 5.06 percent have a target class rate of 
 12.7   four percent.  At the time of submission of the biennial budget 
 12.8   under section 16A.11, the governor shall recommend the effective 
 12.9   class rate for taxes payable in the following two calendar years 
 12.10  by designating a "phase-in percentage," equal to the proportion 
 12.11  of the effective class rate that will be based on the target 
 12.12  class rate of four percent, with the remaining proportion based 
 12.13  on the class rate of 5.06 percent.  The governor shall identify 
 12.14  and include within the budget funding for the increased 
 12.15  expenditures for homestead and agricultural credit aid over the 
 12.16  amount of expenditures for homestead and agricultural credit aid 
 12.17  provided in Laws 1989, First Special Session chapter 1, that are 
 12.18  estimated to result from the recommendation.  At that time, the 
 12.19  governor may propose alternative programs other than homestead 
 12.20  and agricultural credit aid to prevent other taxpayers' taxes 
 12.21  from increasing as a result of the governor's recommended 
 12.22  increase in the phase-in percentage.  The effective net class 
 12.23  rate is the sum of the products of: 
 12.24     (1) the phase-in percentage adopted by the legislature 
 12.25  multiplied by four percent; and 
 12.26     (2) 100 percent minus the phase-in percentage multiplied by 
 12.27  5.06 percent. 
 12.28     The phase-in percentage in any year cannot be less than it 
 12.29  was in the prior year.  The phase-in percentage is ten percent 
 12.30  for taxes payable in 1991, 29.2 percent for taxes payable in 
 12.31  1992, 34.0 percent for taxes payable in 1993, and 43.4 percent 
 12.32  for taxes payable in 1994 62.3 percent for taxes payable in 
 12.33  1997, 81.1 percent for taxes payable in 1998, and 100 percent 
 12.34  for taxes payable in 1999 and thereafter. 
 12.35     Beginning in 1991, The commissioner of revenue shall 
 12.36  annually set the effective class rate to use for taxes payable 
 13.1   in the following year as provided in this subdivision and 
 13.2   announce it by June 1.  For purposes of any aid, levy 
 13.3   limitation, debt limit, or salary limitation, and property tax 
 13.4   administration, net tax capacity must be computed with reference 
 13.5   to the effective class rate for the properties affected by this 
 13.6   subdivision. 
 13.7      Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 13.8   273.1398, subdivision 1, is amended to read: 
 13.9      Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
 13.10  terms defined in this subdivision have the meanings given them. 
 13.11     (b) "Unique taxing jurisdiction" means the geographic area 
 13.12  subject to the same set of local tax rates. 
 13.13     (c) "Net tax capacity" means the product of (i) the 
 13.14  appropriate net class rates for the year in which the aid is 
 13.15  payable, except that for aid payable in 1996 and thereafter the 
 13.16  class rate applicable to all class 4a shall be 3.4 percent, the 
 13.17  class rate applicable to all class 4b shall be 2.3 percent, the 
 13.18  class rate applicable to that portion of class 3a with a class 
 13.19  rate of 4.6 percent for taxes payable in 1996 and class 5 shall 
 13.20  be 4.6 percent; and (ii) estimated market values for the 
 13.21  assessment two years prior to that in which aid is payable.  
 13.22  "Total net tax capacity" means the net tax capacities for all 
 13.23  property within the unique taxing jurisdiction.  The total net 
 13.24  tax capacity used shall be reduced by the sum of (1) the unique 
 13.25  taxing jurisdiction's net tax capacity of commercial industrial 
 13.26  property as defined in section 473F.02, subdivision 3, 
 13.27  multiplied by the ratio determined pursuant to section 473F.08, 
 13.28  subdivision 6, for the municipality, as defined in section 
 13.29  473F.02, subdivision 8, in which the unique taxing jurisdiction 
 13.30  is located, (2) the net tax capacity of the captured value of 
 13.31  tax increment financing districts as defined in section 469.177, 
 13.32  subdivision 2, and (3) the net tax capacity of transmission 
 13.33  lines deducted from a local government's total net tax capacity 
 13.34  under section 273.425.  For purposes of determining the net tax 
 13.35  capacity of property referred to in clauses (1), (2), and (3), 
 13.36  the net tax capacity shall be multiplied by the ratio of the 
 14.1   highest class rate for class 3a property for taxes payable in 
 14.2   the year in which the aid is payable to the highest class rate 
 14.3   for class 3a property in the prior year.  Net tax capacity 
 14.4   cannot be less than zero. 
 14.5      (d) "Previous net tax capacity" means the product of the 
 14.6   appropriate net class rates for the year previous to the year in 
 14.7   which the aid is payable, and estimated market values for the 
 14.8   assessment two years prior to that in which aid is payable.  
 14.9   "Total previous net tax capacity" means the previous net tax 
 14.10  capacities for all property within the unique taxing 
 14.11  jurisdiction.  The total previous net tax capacity shall be 
 14.12  reduced by the sum of (1) the unique taxing jurisdiction's 
 14.13  previous net tax capacity of commercial-industrial property as 
 14.14  defined in section 473F.02, subdivision 3, multiplied by the 
 14.15  ratio determined pursuant to section 473F.08, subdivision 6, for 
 14.16  the municipality, as defined in section 473F.02, subdivision 8, 
 14.17  in which the unique taxing jurisdiction is located, (2) the 
 14.18  previous net tax capacity of the captured value of tax increment 
 14.19  financing districts as defined in section 469.177, subdivision 
 14.20  2, and (3) the previous net tax capacity of transmission lines 
 14.21  deducted from a local government's total net tax capacity under 
 14.22  section 273.425.  Previous net tax capacity cannot be less than 
 14.23  zero. 
 14.24     (e) "Equalized market values" are market values that have 
 14.25  been equalized by dividing the assessor's estimated market value 
 14.26  for the second year prior to that in which the aid is payable by 
 14.27  the assessment sales ratios determined by class in the 
 14.28  assessment sales ratio study conducted by the department of 
 14.29  revenue pursuant to section 124.2131 in the second year prior to 
 14.30  that in which the aid is payable.  The equalized market values 
 14.31  shall equal the unequalized market values divided by the 
 14.32  assessment sales ratio. 
 14.33     (f) "Equalized school levies" means the amounts levied for: 
 14.34     (1) general education under section 124A.23, subdivision 2; 
 14.35     (2) supplemental revenue under section 124A.22, subdivision 
 14.36  8a; 
 15.1      (3) capital expenditure facilities revenue under section 
 15.2   124.243, subdivision 3; 
 15.3      (4) capital expenditure equipment revenue under section 
 15.4   124.244, subdivision 2; 
 15.5      (5) basic transportation under section 124.226, subdivision 
 15.6   1; and 
 15.7      (6) referendum revenue under section 124A.03. 
 15.8      (g) "Current local tax rate" means the quotient derived by 
 15.9   dividing the taxes levied within a unique taxing jurisdiction 
 15.10  for taxes payable in the year prior to that for which aids are 
 15.11  being calculated by the total previous net tax capacity of the 
 15.12  unique taxing jurisdiction.  
 15.13     (h) For purposes of calculating and allocating homestead 
 15.14  and agricultural credit aid authorized pursuant to subdivision 2 
 15.15  for school districts and the disparity reduction aid authorized 
 15.16  in subdivision 3, "gross taxes levied on all properties," "gross 
 15.17  taxes," or "taxes levied" means the total net tax capacity based 
 15.18  taxes levied on all properties except that levied on the 
 15.19  captured value of tax increment districts as defined in section 
 15.20  469.177, subdivision 2, and that levied on the portion of 
 15.21  commercial industrial properties' assessed value or gross tax 
 15.22  capacity, as defined in section 473F.02, subdivision 3, subject 
 15.23  to the areawide tax as provided in section 473F.08, subdivision 
 15.24  6, in a unique taxing jurisdiction.  "Gross taxes" are before 
 15.25  any reduction for disparity reduction aid but "taxes levied" are 
 15.26  after any reduction for disparity reduction aid.  Gross taxes 
 15.27  levied or taxes levied cannot be less than zero.  
 15.28     "Taxes levied" excludes equalized school levies. 
 15.29     (i) "Human services aids" means: 
 15.30     (1) aid to families with dependent children under sections 
 15.31  256.82, subdivision 1, and 256.935, subdivision 1; 
 15.32     (2) medical assistance under sections 256B.041, subdivision 
 15.33  5, and 256B.19, subdivision 1; 
 15.34     (3) general assistance medical care under section 256D.03, 
 15.35  subdivision 6; 
 15.36     (4) general assistance under section 256D.03, subdivision 
 16.1   2; 
 16.2      (5) work readiness under section 256D.03, subdivision 2; 
 16.3      (6) emergency assistance under section 256.871, subdivision 
 16.4   6; 
 16.5      (7) Minnesota supplemental aid under section 256D.36, 
 16.6   subdivision 1; 
 16.7      (8) preadmission screening and alternative care grants; 
 16.8      (9) work readiness services under section 256D.051; 
 16.9      (10) case management services under section 256.736, 
 16.10  subdivision 13; 
 16.11     (11) general assistance claims processing, medical 
 16.12  transportation and related costs; and 
 16.13     (12) medical assistance, medical transportation and related 
 16.14  costs. 
 16.15     (j) "Household adjustment factor" means the number of 
 16.16  households for the second most recent year preceding that in 
 16.17  which the aids are payable divided by the number of households 
 16.18  for the third most recent year.  The household adjustment factor 
 16.19  cannot be less than one.  
 16.20     (k) "Growth adjustment factor" means the household 
 16.21  adjustment factor in the case of counties.  In the case of 
 16.22  cities, towns, school districts, and special taxing districts, 
 16.23  the growth adjustment factor equals one.  The growth adjustment 
 16.24  factor cannot be less than one.  
 16.25     (l) For aid payable in 1992 and subsequent years, 
 16.26  "Homestead and agricultural credit base" means the previous 
 16.27  year's certified homestead and agricultural credit aid 
 16.28  determined under subdivision 2 less any permanent aid reduction 
 16.29  in the previous year to homestead and agricultural credit aid 
 16.30  under section 477A.0132, plus, for aid payable in 1992, fiscal 
 16.31  disparity homestead and agricultural credit aid under 
 16.32  subdivision 2b.  
 16.33     (m) "Net tax capacity adjustment" means (1) the total 
 16.34  previous net tax capacity minus the total net tax capacity, 
 16.35  multiplied by (2) the unique taxing jurisdiction's current local 
 16.36  tax rate.  The net tax capacity adjustment cannot be less than 
 17.1   zero. 
 17.2      (n) "Fiscal disparity adjustment" means the difference 
 17.3   between (1) a taxing jurisdiction's fiscal disparity 
 17.4   distribution levy under section 473F.08, subdivision 3, clause 
 17.5   (a), for taxes payable in the year prior to that for which aids 
 17.6   are being calculated, and (2) the same distribution levy 
 17.7   multiplied by the ratio of the highest class rate for class 3 
 17.8   property for taxes payable in the year prior to that for which 
 17.9   aids are being calculated to the highest class rate for class 3 
 17.10  property for taxes payable in the second prior year to that for 
 17.11  which aids are being calculated.  In the case of school 
 17.12  districts, the fiscal disparity distribution levy shall exclude 
 17.13  that part of the levy attributable to equalized school levies. 
 17.14     Sec. 5.  Minnesota Statutes 1994, section 273.1398, 
 17.15  subdivision 2, is amended to read: 
 17.16     Subd. 2.  [HOMESTEAD AND AGRICULTURAL CREDIT AID.] 
 17.17  Homestead and agricultural credit aid for each unique taxing 
 17.18  jurisdiction equals the product of (1) the homestead and 
 17.19  agricultural credit aid base, and (2) the growth adjustment 
 17.20  factor, plus the net tax capacity adjustment and the fiscal 
 17.21  disparity adjustment.  Only school districts shall receive 
 17.22  homestead and agricultural credit aid in 1997 and thereafter. 
 17.23     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 17.24  273.1398, subdivision 6, is amended to read: 
 17.25     Subd. 6.  [PAYMENT.] The commissioner shall certify the 
 17.26  aids provided in subdivisions 2, 2b, and 3, and 5 before 
 17.27  September 1 of the year preceding the distribution year to the 
 17.28  county auditor of the affected local government.  The aids 
 17.29  provided in subdivisions 2, 2b, subdivision 3, and 5 must be 
 17.30  paid to local governments other than school districts at the 
 17.31  times provided in section 477A.015 for payment of local 
 17.32  government aid to taxing jurisdictions, except that the first 
 17.33  one-half payment of disparity reduction aid provided in 
 17.34  subdivision 3 must be paid on or before August 31.  The 
 17.35  disparity reduction credit provided in subdivision 4 must be 
 17.36  paid to taxing jurisdictions other than school districts at the 
 18.1   time provided in section 473H.10, subdivision 3.  Aids and 
 18.2   credit reimbursements to school districts must be certified to 
 18.3   the commissioner of children, families, and learning and paid 
 18.4   under section 273.1392.  Except for education districts and 
 18.5   secondary cooperatives that receive revenue according to section 
 18.6   124.575, payment shall not be made to any taxing jurisdiction 
 18.7   that has ceased to levy a property tax.  
 18.8      Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 18.9   273.1398, subdivision 8, is amended to read: 
 18.10     Subd. 8.  [APPROPRIATION.] An amount sufficient to pay the 
 18.11  aids and credits provided under this section for school 
 18.12  districts, intermediate school districts, or any group of school 
 18.13  districts levying as a single taxing entity, is annually 
 18.14  appropriated from the general fund to the commissioner of 
 18.15  children, families, and learning.  An amount sufficient to pay 
 18.16  the aids and credits provided under this section subdivisions 3 
 18.17  and 4 for counties, cities, towns, and special taxing districts 
 18.18  is annually appropriated from the general fund to the 
 18.19  commissioner of revenue.  A jurisdiction's aid amount may be 
 18.20  increased or decreased based on any prior year adjustments for 
 18.21  homestead credit or other property tax credit or aid programs. 
 18.22     Sec. 8.  Minnesota Statutes 1994, section 273.1399, 
 18.23  subdivision 5, is amended to read: 
 18.24     Subd. 5.  [LOCAL GOVERNMENT AIDS; HOMESTEAD AND 
 18.25  AGRICULTURAL AID CALCULATIONS.] (a) The reduction in state tax 
 18.26  increment financing aid for a municipality must be deducted 
 18.27  first from the local government aids to be paid to the 
 18.28  municipality.  If the deduction exceeds the amount of the local 
 18.29  government aid, the rest must be deducted from the homestead and 
 18.30  agricultural credit aid to be paid to the municipality. 
 18.31     (b) The amount of qualifying captured net tax capacity must 
 18.32  be included in adjusted net tax capacity for purposes of 
 18.33  computing the local government aid of the municipality that 
 18.34  approved the tax increment financing district. 
 18.35     Sec. 9.  Minnesota Statutes 1994, section 275.07, 
 18.36  subdivision 1a, is amended to read: 
 19.1      Subd. 1a.  [APPLICATION OF LIMITATIONS.] Any limitation 
 19.2   upon the amount that may be levied by a local taxing 
 19.3   jurisdiction shall apply to the sum of the levy as certified 
 19.4   under subdivision 1 plus the certified homestead and 
 19.5   agricultural credit aid amount under section 273.1398, 
 19.6   subdivision 2, and the county program reform aid amount under 
 19.7   section 477A.0123, unless the commissioner of revenue certifies 
 19.8   to the county auditor that the limitation applies to the levy 
 19.9   under subdivision 1 only. 
 19.10     Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 19.11  276.04, subdivision 2, is amended to read: 
 19.12     Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
 19.13  shall provide for the printing of the tax statements.  The 
 19.14  commissioner of revenue shall prescribe the form of the property 
 19.15  tax statement and its contents.  The statement must contain a 
 19.16  tabulated statement of the dollar amount due to each taxing 
 19.17  authority from the parcel of real property for which a 
 19.18  particular tax statement is prepared.  The dollar amounts due 
 19.19  the county, township or municipality, the total of the 
 19.20  metropolitan special taxing districts as defined in section 
 19.21  275.065, subdivision 3, paragraph (i), school district excess 
 19.22  referenda levy, remaining school district levy, and the total of 
 19.23  other voter approved referenda levies based on market value 
 19.24  under section 275.61 must be separately stated.  The amounts due 
 19.25  all other special taxing districts, if any, may be aggregated.  
 19.26  For the purposes of this subdivision, "school district excess 
 19.27  referenda levy" means school district taxes for operating 
 19.28  purposes approved at referenda, including those taxes based on 
 19.29  net tax capacity as well as those based on market value.  
 19.30  "School district excess referenda levy" does not include school 
 19.31  district taxes for capital expenditures approved at referendums 
 19.32  or school district taxes to pay for the debt service on bonds 
 19.33  approved at referenda.  The amount of the tax on contamination 
 19.34  value imposed under sections 270.91 to 270.98, if any, must also 
 19.35  be separately stated.  The dollar amounts, including the dollar 
 19.36  amount of any special assessments, may be rounded to the nearest 
 20.1   even whole dollar.  For purposes of this section whole 
 20.2   odd-numbered dollars may be adjusted to the next higher 
 20.3   even-numbered dollar.  The amount of market value excluded under 
 20.4   section 273.11, subdivision 16, if any, must also be listed on 
 20.5   the tax statement.  The statement shall include the following 
 20.6   sentence, printed in upper case letters in boldface print:  "THE 
 20.7   STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.  
 20.8   THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING 
 20.9   CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."  
 20.10     (b) The property tax statements for manufactured homes and 
 20.11  sectional structures taxed as personal property shall contain 
 20.12  the same information that is required on the tax statements for 
 20.13  real property.  
 20.14     (c) Real and personal property tax statements must contain 
 20.15  the following information in the order given in this paragraph.  
 20.16  The information must contain the current year tax information in 
 20.17  the right column with the corresponding information for the 
 20.18  previous year in a column on the left: 
 20.19     (1) the property's estimated market value under section 
 20.20  273.11, subdivision 1; 
 20.21     (2) the property's taxable market value after reductions 
 20.22  under section 273.11, subdivisions 1a and 16; 
 20.23     (3) the property's gross tax, calculated by multiplying the 
 20.24  property's gross tax capacity times the total local tax rate and 
 20.25  adding to the result the sum of the aids enumerated in clause 
 20.26  (3); 
 20.27     (4) a total of the following aids: 
 20.28     (i) education aids payable under chapters 124 and 124A; 
 20.29     (ii) local government aids for cities, towns, and counties 
 20.30  under chapter 477A; and 
 20.31     (iii) disparity reduction aid under section 273.1398; 
 20.32     (5) for homestead residential and agricultural properties, 
 20.33  the homestead and agricultural credit aid exemption apportioned 
 20.34  to the property.  This amount is obtained by multiplying the 
 20.35  total local tax rate by the difference between the property's 
 20.36  gross and net tax capacities under section 273.13.  This amount 
 21.1   must be separately stated and identified as "homestead and 
 21.2   agricultural credit. exemption"  For purposes of comparison with 
 21.3   the previous year's amount for the statement for taxes payable 
 21.4   in 1990, the statement must show the homestead credit for taxes 
 21.5   payable in 1989 under section 273.13, and the agricultural 
 21.6   credit under section 273.132 for taxes payable in 1989; 
 21.7      (6) any credits received under sections 273.119; 273.123; 
 21.8   273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
 21.9   473H.10, except that the amount of credit received under section 
 21.10  273.135 must be separately stated and identified as "taconite 
 21.11  tax relief"; and 
 21.12     (7) the net tax payable in the manner required in paragraph 
 21.13  (a).  
 21.14     The commissioner of revenue shall certify to the county 
 21.15  auditor the actual or estimated aids enumerated in clauses (3) 
 21.16  and (4) that local governments will receive in the following 
 21.17  year.  In the case of a county containing a city of the first 
 21.18  class, for taxes levied in 1991, and for all counties for taxes 
 21.19  levied in 1992 and thereafter, The commissioner must certify 
 21.20  this amount by September 1.  
 21.21     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 21.22  473.253, subdivision 1, is amended to read: 
 21.23     Subdivision 1.  [SOURCES OF FUNDS.] The council shall 
 21.24  credit to the livable communities demonstration account the 
 21.25  revenues provided in this subdivision.  This tax shall be levied 
 21.26  and collected in the manner provided by section 473.13.  The 
 21.27  levy shall not exceed the following amount for the years 
 21.28  specified:  
 21.29     (a)(1) for taxes payable in 1996, 50 percent of (i) the 
 21.30  metropolitan mosquito control commission's property tax levy for 
 21.31  taxes payable in 1995 multiplied by (ii) an index for market 
 21.32  valuation changes equal to the total market valuation of all 
 21.33  taxable property located within the metropolitan area for the 
 21.34  current taxes payable year divided by the total market valuation 
 21.35  of all taxable property located in the metropolitan area for the 
 21.36  previous taxes payable year; and 
 22.1      (2) for taxes payable in 1997 and subsequent years, the 
 22.2   product of (i) the property tax levy limit under this 
 22.3   subdivision for the previous year multiplied by (ii) an index 
 22.4   for market valuation changes equal to the total market valuation 
 22.5   of all taxable property located within the metropolitan area for 
 22.6   the current taxes payable year divided by the total market 
 22.7   valuation of all taxable property located in the metropolitan 
 22.8   area for the previous taxes payable year. 
 22.9      For the purposes of this subdivision, "total market 
 22.10  valuation" means the total market valuation of all taxable 
 22.11  property within the metropolitan area without valuation 
 22.12  adjustments for fiscal disparities under chapter 473F, tax 
 22.13  increment financing under sections 469.174 to 469.179, and high 
 22.14  voltage transmission lines under section 273.425. 
 22.15     (b) The metropolitan council, for the purposes of the fund, 
 22.16  is considered a unique taxing jurisdiction for purposes of 
 22.17  receiving aid pursuant to section 273.1398.  For aid to be 
 22.18  received in 1996, the fund's homestead and agricultural credit 
 22.19  base shall equal 50 percent of the metropolitan mosquito control 
 22.20  commission's certified homestead and agricultural credit aid for 
 22.21  1995, determined under section 273.1398, subdivision 2, less any 
 22.22  permanent aid reduction under section 477A.0132.  For aid to be 
 22.23  received under section 273.1398 in 1997 and subsequent years, 
 22.24  the fund's homestead and agricultural credit base shall be 
 22.25  determined in accordance with section 273.1398, subdivision 1. 
 22.26     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 22.27  473.711, subdivision 2, is amended to read: 
 22.28     Subd. 2.  [BUDGET; TAX LEVY.] (a) Budget.  The metropolitan 
 22.29  mosquito control commission shall prepare an annual budget.  The 
 22.30  budget may provide for expenditures in an amount not exceeding 
 22.31  the property tax levy limitation determined in this subdivision. 
 22.32     (b) Tax Levy.  The commission may levy a tax on all taxable 
 22.33  property in the district as defined in section 473.702 to 
 22.34  provide funds for the purposes of sections 473.701 to 473.716.  
 22.35  The tax shall not exceed the property tax levy limitation 
 22.36  determined in this subdivision.  A participating county may 
 23.1   agree to levy an additional tax to be used by the commission for 
 23.2   the purposes of sections 473.701 to 473.716 but the sum of the 
 23.3   county's and commission's taxes may not exceed the county's 
 23.4   proportionate share of the property tax levy limitation 
 23.5   determined under this subdivision based on the ratio of its 
 23.6   total net tax capacity to the total net tax capacity of the 
 23.7   entire district as adjusted by section 270.12, subdivision 3.  
 23.8   The auditor of each county in the district shall add the amount 
 23.9   of the levy made by the district to other taxes of the county 
 23.10  for collection by the county treasurer with other taxes.  When 
 23.11  collected, the county treasurer shall make settlement of the tax 
 23.12  with the district in the same manner as other taxes are 
 23.13  distributed to political subdivisions.  No county shall levy any 
 23.14  tax for mosquito, disease vectoring tick, and black gnat 
 23.15  (Simuliidae) control except under this section.  The levy shall 
 23.16  be in addition to other taxes authorized by law. 
 23.17     The property tax levied by the metropolitan mosquito 
 23.18  control commission shall not exceed the following amount for the 
 23.19  years specified: 
 23.20     (i) for taxes payable in 1996, the product of (1) the 
 23.21  commission's property tax levy limitation for taxes payable in 
 23.22  1995 determined under this subdivision minus 50 percent of the 
 23.23  amount actually levied for taxes payable in 1995, multiplied by 
 23.24  (2) an index for market valuation changes equal to the total 
 23.25  market valuation of all taxable property located within the 
 23.26  district for the current taxes payable year divided by the total 
 23.27  market valuation of all taxable property located within the 
 23.28  district for the previous taxes payable year; and 
 23.29     (ii) for taxes payable in 1997 and subsequent years, the 
 23.30  product of (1) the commission's property tax levy limitation for 
 23.31  the previous year determined under this subdivision multiplied 
 23.32  by (2) an index for market valuation changes equal to the total 
 23.33  market valuation of all taxable property located within the 
 23.34  district for the current taxes payable year divided by the total 
 23.35  market valuation of all taxable property located within the 
 23.36  district for the previous taxes payable year. 
 24.1      For the purpose of determining the commission's property 
 24.2   tax levy limitation under this subdivision, "total market 
 24.3   valuation" means the total market valuation of all taxable 
 24.4   property within the district without valuation adjustments for 
 24.5   fiscal disparities (chapter 473F), tax increment financing 
 24.6   (sections 469.174 to 469.179), and high voltage transmission 
 24.7   lines (section 273.425). 
 24.8      (c) Homestead and Agricultural Credit Aid.  For aids 
 24.9   payable in 1996 and subsequent years, the commission's homestead 
 24.10  and agricultural credit aid base under section 273.1398, 
 24.11  subdivision 1, is permanently reduced by 50 percent of the 
 24.12  amount certified to be received in 1995, less any permanent aid 
 24.13  reduction in 1995 under section 477A.0132. 
 24.14     (d) Emergency Tax Levy.  If the commissioner of the 
 24.15  department of health declares a health emergency due to a 
 24.16  threatened or actual outbreak of disease caused by mosquitos, 
 24.17  disease vectoring ticks, or black gnats (Simuliidae), the 
 24.18  commission may levy an additional tax not to exceed $500,000 on 
 24.19  all taxable property in the district to pay for the required 
 24.20  control measures. 
 24.21     (e) (d) Optional County Levy.  A participating county may 
 24.22  levy a tax in an amount to be determined by the county board for 
 24.23  mosquito, disease vectoring tick, and black gnat (Simuliidae) 
 24.24  nuisance control.  If the county levies the tax for nuisance 
 24.25  control, it must contract with the commission to provide for 
 24.26  nuisance control activities within the county.  The levy for 
 24.27  nuisance control shall be in addition to other levies authorized 
 24.28  by law to the county. 
 24.29     Sec. 13.  Minnesota Statutes 1994, section 477A.011, 
 24.30  subdivision 27, is amended to read: 
 24.31     Subd. 27.  [REVENUE BASE.] "Revenue base" means the amount 
 24.32  levied for taxes payable in the previous year, including the 
 24.33  levy on the fiscal disparity distribution under section 473F.08, 
 24.34  subdivision 3, paragraph (a), and before reduction for the 
 24.35  homestead and agricultural credit county program reform aid 
 24.36  under section 273.1398, subdivision 2 477A.0123, equalization 
 25.1   aid under section 477A.013, subdivision 5, and disparity 
 25.2   reduction aid under section 273.1398, subdivision 3; plus the 
 25.3   originally certified local government aid in the previous year 
 25.4   under sections 477A.011, 477A.012, and 477A.013, except for 
 25.5   477A.013, subdivision 5; and the taconite aids received in the 
 25.6   previous year under sections 298.28 and 298.282. 
 25.7      Sec. 14.  [477A.0123] [COUNTY PROGRAM REFORM AID.] 
 25.8      Subdivision 1.  [PURPOSE.] County program aid is intended 
 25.9   to provide a financing source for the provision of property tax 
 25.10  relief through the funding of program mandates as defined in 
 25.11  Minnesota Statutes 1994, section 3.881. 
 25.12     Subd. 2.  [AID ALLOCATION.] Each calendar year, the 
 25.13  commissioner of revenue shall distribute aid paid under this 
 25.14  section as follows:  For aid paid in 1997, each county's aid 
 25.15  distribution under this section shall equal its prior year 
 25.16  distribution under section 273.1398 plus the amount of the aid 
 25.17  reduction to counties under section 477A.0132, subdivision 1, 
 25.18  clause (a), adjusted for household growth as provided under 
 25.19  section 273.1398.  For aid paid in 1998 and thereafter, each 
 25.20  county shall receive a distribution equal to the aid amount it 
 25.21  received in the previous year adjusted for household growth as 
 25.22  provided under section 273.1398. 
 25.23     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 25.24  477A.0132, subdivision 3, is amended to read: 
 25.25     Subd. 3.  [ORDER OF AID REDUCTIONS.] (a) The aid reduction 
 25.26  to a local government calculated under subdivisions 1, 
 25.27  paragraphs (a) and (c), and 2, paragraphs (a) and (c), is 
 25.28  applied to homestead and agricultural credit aid under section 
 25.29  273.1398 only. 
 25.30     (b) The aid reduction to a local government as calculated 
 25.31  under other paragraphs of subdivisions 1 and 2, is first applied 
 25.32  to its local government aid under sections 477A.012 and 477A.013 
 25.33  excluding aid under section 477A.013, subdivision 5; then, if 
 25.34  necessary, to its equalization aid under section 477A.013, 
 25.35  subdivision 5; then if necessary, to its homestead and 
 25.36  agricultural credit county program reform aid under section 
 26.1   273.1398, subdivision 2 477A.0123; and then, if necessary, to 
 26.2   its disparity reduction aid under section 273.1398, subdivision 
 26.3   3.  No aid payment may be less than $0.  Aid reductions under 
 26.4   this section in any given year shall be divided equally between 
 26.5   the July and December aid payments unless specified otherwise. 
 26.6      Sec. 16.  [REPEALER.] 
 26.7      Minnesota Statutes 1994, section 477A.013, subdivision 6, 
 26.8   is repealed. 
 26.9      Sec. 17.  [STUDY AND FINDINGS.] 
 26.10     The commissioner of revenue shall identify county program 
 26.11  mandates as defined in Minnesota Statutes 1994, section 3.881, 
 26.12  including, but not limited to, income maintenance 
 26.13  administration, correctional services, court system, and human 
 26.14  services including those provided to the developmentally 
 26.15  challenged and mentally ill, child protection services, and 
 26.16  services to families.  The commissioner's findings must include 
 26.17  the total program cost by county, the state share of these 
 26.18  program costs, if any, and the property tax levy by county 
 26.19  attributable to these program mandates.  The commissioner's 
 26.20  recommendations must also take into account the likely effect of 
 26.21  federal aid reductions on these program mandates and the likely 
 26.22  property tax consequences of these federal aid reductions. 
 26.23     Sec. 18.  [EFFECTIVE DATE.] 
 26.24     Sections 1 to 17 are effective for property taxes and aids 
 26.25  payable in 1997 and thereafter. 
 26.26                             ARTICLE 3 
 26.27                        LOCAL GOVERNMENT AID 
 26.28     Section 1.  Minnesota Statutes 1994, section 477A.011, is 
 26.29  amended by adding a subdivision to read: 
 26.30     Subd. 32a.  [POVERTY PERCENTAGE.] "Poverty percentage" for 
 26.31  a city is 100 times the ratio of the number of households below 
 26.32  the poverty line to the total number of households in the city 
 26.33  according to the most recent federal census. 
 26.34     Sec. 2.  Minnesota Statutes 1994, section 477A.011, is 
 26.35  amended by adding a subdivision to read: 
 26.36     Subd. 33c.  [CITY DECLINE FACTOR.] "City decline factor" 
 27.1   for a city is the product of the city's (1) pre-1940 housing 
 27.2   percentage, (2) commercial industrial percentage, and (3) 
 27.3   population decline percentage. 
 27.4      Sec. 3.  Minnesota Statutes 1994, section 477A.011, 
 27.5   subdivision 34, is amended to read: 
 27.6      Subd. 34.  [CITY REVENUE NEED.] (a) For a city with a 
 27.7   population equal to or greater than 2,500, "city revenue need" 
 27.8   is the sum of (1) 3.462312 6.110762 times the pre-1940 housing 
 27.9   percentage; plus (2) 2.093826 5.744915 times the commercial 
 27.10  industrial percentage; plus (3) 6.862552 .024686 times the 
 27.11  population city decline percentage factor; plus 
 27.12  (4) .00026 9.784552 times the city population; plus (5) 152.0141 
 27.13  poverty percentage. 
 27.14     (b) For a city with a population less than 2,500, "city 
 27.15  revenue need" is the sum of (1) 1.795919 times the pre-1940 
 27.16  housing percentage; plus (2) 1.562138 times the commercial 
 27.17  industrial percentage; plus (3) 4.177568 times the population 
 27.18  decline percentage; plus (4) 1.04013 times the transformed 
 27.19  population; minus (5) 107.475. 
 27.20     (c) The city revenue need cannot be less than zero. 
 27.21     (d) For calendar year 1995 and subsequent years, the city 
 27.22  revenue need for a city with a population less than 2,500, as 
 27.23  determined in paragraphs (a) to (b) and (c), is multiplied by 
 27.24  the ratio of the annual implicit price deflator for state and 
 27.25  local government purchases, as prepared by the United States 
 27.26  Department of Commerce, for the most recently available year to 
 27.27  the 1993 implicit price deflator for state and local government 
 27.28  purchases. 
 27.29     (e) For calendar year 1998 and subsequent years, the city 
 27.30  revenue need for a city with a population of 2,500 or more, as 
 27.31  determined in paragraphs (a) and (c), is multiplied by the ratio 
 27.32  of the annual implicit price deflator for state and local 
 27.33  government purchases, as prepared by the United States 
 27.34  Department of Commerce, for the most recent available year to 
 27.35  the 1996 implicit price deflator for state and local government 
 27.36  purchases. 
 28.1      Sec. 4.  Minnesota Statutes 1994, section 477A.013, 
 28.2   subdivision 8, is amended to read: 
 28.3      Subd. 8.  [CITY FORMULA AID.] In calendar year 1994 1997 
 28.4   and subsequent years, the formula aid for a city is equal to the 
 28.5   product of (1) the need increase percentage multiplied by 
 28.6   the difference between (1) (2) the city's revenue need 
 28.7   multiplied by its population, and (2) the city's net tax 
 28.8   capacity multiplied by the tax effort rate (3) the square root 
 28.9   of the difference between (i) 4.14 and (ii) the ratio of the 
 28.10  city's net tax capacity to 215.06.  No city may have a formula 
 28.11  aid amount less than zero.  The need increase percentage must be 
 28.12  the same for all cities.  
 28.13     Notwithstanding the prior sentence, in 1995 only, the need 
 28.14  increase percentage for a city shall be twice the need increase 
 28.15  percentage applicable to other cities if:  
 28.16     (1) the city, in 1992 or 1993, transferred an amount from 
 28.17  governmental funds to their sewer and water fund, and 
 28.18     (2) the amount transferred exceeded their net levy for 
 28.19  taxes payable in the year in which the transfer occurred. 
 28.20     The applicable need increase percentage or percentages must 
 28.21  be calculated by the department of revenue so that the total of 
 28.22  the aid under subdivision 9 equals the total amount available 
 28.23  for aid under section 477A.03.  
 28.24     Sec. 5.  Minnesota Statutes 1994, section 477A.013, 
 28.25  subdivision 9, is amended to read: 
 28.26     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
 28.27  1994 1997 and thereafter, each city shall receive an aid 
 28.28  distribution equal to the sum of (1) the city formula aid under 
 28.29  subdivision 8, and (2) its city aid base formula aid, subject to 
 28.30  the limits in paragraphs (b), (c), and (d). 
 28.31     (b) The percentage increase for a first class city in 
 28.32  calendar year 1995 and thereafter 1997 shall not exceed 1-1/2 
 28.33  times the percentage increase in the sum of the aid to all 
 28.34  cities under this section in the current calendar year 1997 
 28.35  compared to the sum of the aid to all cities in the previous 
 28.36  year 1996.  The percentage increase for a city in calendar year 
 29.1   1998 and thereafter shall not exceed 1-1/4 times the percentage 
 29.2   increase in the sum of the aid to all cities under this section 
 29.3   in the current calendar year compared to the sum of the aid to 
 29.4   all cities in the previous year. 
 29.5      (c) In addition to the limitation in paragraph (b), the 
 29.6   total aid for any city, except a first class city, shall not 
 29.7   exceed the sum of (1) ten 17 percent of the city's net levy for 
 29.8   the year prior to the aid distribution plus (2) its total aid in 
 29.9   the previous year before any increases or decreases 
 29.10  under sections 16A.711, subdivision 5, and section 477A.0132. 
 29.11     (d) Notwithstanding paragraph (c), in 1995 only, for cities 
 29.12  which in 1992 or 1993 transferred an amount from governmental 
 29.13  funds to their sewer and water fund in an amount greater than 
 29.14  their net levy for taxes payable in the year in which the 
 29.15  transfer occurred, the total aid shall not exceed the sum of (1) 
 29.16  20 percent of the city's net levy for the year prior to the aid 
 29.17  distribution plus (2) its total aid in the previous year before 
 29.18  any increases or decreases under sections 16A.711, subdivision 
 29.19  5, and 477A.0132.  No city shall receive total aid in any 
 29.20  calendar year that is less than 90 percent of its prior year aid.
 29.21     (e) Notwithstanding paragraphs (a), (b), (c), and (d), if a 
 29.22  city with a population of 2,500 or more has a reduction in its 
 29.23  net tax capacity of 20 percent or more in an assessment year 
 29.24  compared to the previous year, the following limits and minimums 
 29.25  apply: 
 29.26     (1) for aid distributed in the year immediately following 
 29.27  the assessment year of the net tax capacity loss, the aid may 
 29.28  not increase by more than an amount equal to the product of (i) 
 29.29  17 percent plus a percentage equal to the percent loss in net 
 29.30  tax capacity and (ii) the city's net levy for the year prior to 
 29.31  the aid distribution; 
 29.32     (2) for aid distributed in the five years following the 
 29.33  assessment year of the net tax capacity loss, the aid may not be 
 29.34  less than an amount equal to the following: 
 29.35     (i) for the first year, the amount of the net tax capacity 
 29.36  loss multiplied by the city tax rate from the previous year; 
 30.1      (ii) for the second year, 80 percent of the minimum amount 
 30.2   guaranteed in the first year; 
 30.3      (iii) for the third year, 60 percent of the minimum amount 
 30.4   guaranteed in the first year; 
 30.5      (iv) for the fourth year, 40 percent of the minimum amount 
 30.6   guaranteed in the first year; 
 30.7      (v) for the fifth year, 20 percent of the minimum amount 
 30.8   guaranteed in the first year. 
 30.9      A city must notify the commissioner of revenue by July 1 of 
 30.10  the year prior to the first year it would qualify for provisions 
 30.11  under this paragraph in order to be eligible for aid adjustments 
 30.12  under this paragraph.  The city must also furnish the 
 30.13  commissioner with any information needed to administer the 
 30.14  provisions of this paragraph. 
 30.15     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 30.16  477A.03, subdivision 2, is amended to read: 
 30.17     Subd. 2.  [ANNUAL APPROPRIATION.] A sum sufficient to 
 30.18  discharge the duties imposed by sections 477A.011 to 477A.014 is 
 30.19  annually appropriated from the general fund to the commissioner 
 30.20  of revenue.  For aids payable in 1996 1997 and thereafter, the 
 30.21  total aids paid under sections 477A.013, subdivision 
 30.22  9, 477A.0121 and 477A.0122 are the amounts certified to be paid 
 30.23  in the previous year, adjusted for inflation as provided under 
 30.24  subdivision 3.  Aid payments to counties cities under section 
 30.25  477A.0121 477A.013, subdivision 9, are limited to $20,265,000 in 
 30.26  1996 $400,000,000 in 1997.  For aid payable in 1997 1998 and 
 30.27  thereafter, the total aids paid under section 477A.0121 
 30.28  477A.013, subdivision 9, are the amounts certified to be paid in 
 30.29  the previous year, adjusted for inflation as provided under 
 30.30  subdivision 3. 
 30.31     Sec. 7.  [REPEALER.] 
 30.32     Minnesota Statutes 1994, sections 477A.011, subdivisions 35 
 30.33  and 37; 477A.013, subdivision 6; and 477A.014, subdivision 1a; 
 30.34  and Minnesota Statutes 1995 Supplement, section 477A.011, 
 30.35  subdivision 36; are repealed. 
 30.36     Sec. 8.  [EFFECTIVE DATE.] 
 31.1      Sections 1 to 7 are effective for aids payable in 1997 and 
 31.2   thereafter. 
 31.3                              ARTICLE 4
 31.4                PROPERTY TAX REFUND AND RENTERS CREDIT
 31.5      Section 1.  Minnesota Statutes 1994, section 290A.03, is 
 31.6   amended by adding a subdivision to read: 
 31.7      Subd. 6a.  [CABIN.] "Cabin" means seasonal residential 
 31.8   recreational property not used for commercial purposes as 
 31.9   defined under section 273.13, subdivision 25, paragraph (c), 
 31.10  clause (5). 
 31.11     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 31.12  290A.03, subdivision 13, is amended to read: 
 31.13     Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
 31.14  payable" means the property tax exclusive of special 
 31.15  assessments, penalties, and interest payable on a claimant's 
 31.16  homestead or cabin before reductions made under section 273.13 
 31.17  but after deductions made under sections 273.135, 273.1391, 
 31.18  273.42, subdivision 2, and any other state paid property tax 
 31.19  credits in any calendar year.  In the case of a claimant who 
 31.20  makes ground lease payments, "property taxes payable" includes 
 31.21  the amount of the payments directly attributable to the property 
 31.22  taxes assessed against the parcel on which the house or cabin is 
 31.23  located.  No apportionment or reduction of the "property taxes 
 31.24  payable" shall be required for the use of a portion of the 
 31.25  claimant's homestead or cabin for a business purpose if the 
 31.26  claimant does not deduct any business depreciation expenses for 
 31.27  the use of a portion of the homestead or cabin in the 
 31.28  determination of federal adjusted gross income.  For 
 31.29  homesteads or cabins which are manufactured homes as defined in 
 31.30  section 273.125, subdivision 8, and for homesteads or cabins 
 31.31  which are park trailers taxed as manufactured homes under 
 31.32  section 168.012, subdivision 9, "property taxes payable" shall 
 31.33  also include the amount of the gross rent paid in the preceding 
 31.34  year for the site on which the homestead or cabin is located, 
 31.35  which is attributable to the net tax paid on the site.  The 
 31.36  amount attributable to property taxes shall be determined by 
 32.1   multiplying the net tax on the parcel by a fraction, the 
 32.2   numerator of which is the gross rent paid for the calendar year 
 32.3   for the site and the denominator of which is the gross rent paid 
 32.4   for the calendar year for the parcel.  When a homestead or cabin 
 32.5   is owned by two or more persons as joint tenants or tenants in 
 32.6   common, such tenants shall determine between them which tenant 
 32.7   may claim the property taxes payable on the homestead or cabin.  
 32.8   If they are unable to agree, the matter shall be referred to the 
 32.9   commissioner of revenue whose decision shall be final.  Property 
 32.10  taxes are considered payable in the year prescribed by law for 
 32.11  payment of the taxes. 
 32.12     In the case of a claim relating to "property taxes 
 32.13  payable," on a homestead, the claimant must have owned and 
 32.14  occupied the homestead on January 2 of the year in which the tax 
 32.15  is payable and (i) the property must have been classified as 
 32.16  homestead property pursuant to section 273.13, subdivision 22 or 
 32.17  23, on or before December 15 of the assessment year to which the 
 32.18  "property taxes payable" relate; or (ii) the claimant must 
 32.19  provide documentation from the local assessor that application 
 32.20  for homestead classification has been made on or before December 
 32.21  15 of the year in which the "property taxes payable" were 
 32.22  payable and that the assessor has approved the application.  In 
 32.23  the case of a claim relating to "property taxes payable" on a 
 32.24  cabin, the claimant must have owned the cabin on January 2 of 
 32.25  the year in which the tax is payable and the property must have 
 32.26  been classified noncommercial seasonal residential recreational 
 32.27  property under section 273.13, subdivision 25, for the 
 32.28  assessment year to which the "property taxes payable" relate. 
 32.29     Sec. 3.  Minnesota Statutes 1994, section 290A.04, 
 32.30  subdivision 1, is amended to read: 
 32.31     Subdivision 1.  A refund shall be allowed each claimant in 
 32.32  the amount that property taxes payable or rent constituting 
 32.33  property taxes exceed the percentage of the household income of 
 32.34  the claimant specified in subdivision 1a or 2 or 2a in the year 
 32.35  for which the taxes were levied or in the year in which the rent 
 32.36  was paid as specified in subdivision 1a or 2 or 2a.  If the 
 33.1   amount of property taxes payable or rent constituting property 
 33.2   taxes is equal to or less than the percentage of the household 
 33.3   income of the claimant specified in subdivision 1a or 2 or 2a in 
 33.4   the year for which the taxes were levied or in the year in which 
 33.5   the rent was paid, the claimant shall not be eligible for a 
 33.6   state refund pursuant to this section. 
 33.7      Sec. 4.  Minnesota Statutes 1994, section 290A.04, is 
 33.8   amended by adding a subdivision to read: 
 33.9      Subd. 1a.  [CABIN OWNERS.] A claimant whose property taxes 
 33.10  payable on the claimant's cabin are in excess of the percentage 
 33.11  of the household income stated below shall pay an amount equal 
 33.12  to the percent of income shown for the appropriate household 
 33.13  income level along with the percent to be paid by the claimant 
 33.14  of the remaining amount of property taxes payable.  The state 
 33.15  refund equals the amount of property taxes payable that remain, 
 33.16  up to the state refund amount shown below. 
 33.17                        Percent         Percent        Maximum
 33.18  Household Income     of Income        Paid by        State
 33.19                                        Claimant       Refund
 33.20      $0 to 1,059     0.50 percent      50.5 percent   $2,000
 33.21   1,060 to 2,119     0.50 percent      51.0 percent   $2,000
 33.22   2,120 to 3,189     0.50 percent      51.5 percent   $2,000
 33.23   3,190 to 4,249     0.50 percent      52.0 percent   $2,000
 33.24   4,250 to 5,309     0.50 percent      52.5 percent   $2,000
 33.25   5,310 to 7,439     0.50 percent      53.0 percent   $2,000
 33.26   7,440 to 8,499     0.50 percent      53.5 percent   $2,000
 33.27   8,500 to 9,549     0.50 percent      54.0 percent   $2,000
 33.28   9,550 to 10,609    0.50 percent      54.5 percent   $2,000
 33.29  10,610 to 12,739    0.60 percent      55.0 percent   $2,000
 33.30  12,740 to 14,859    0.60 percent      55.5 percent   $2,000
 33.31  14,860 to 16,979    0.70 percent      56.0 percent   $2,000
 33.32  16,980 to 18,049    0.80 percent      56.5 percent   $2,000
 33.33  18,050 to 19,999    0.90 percent      57.0 percent   $2,000
 33.34  20,000 to 23,999    1.00 percent      57.5 percent   $2,000
 33.35  24,000 to 27,999    1.20 percent      58.5 percent   $2,000
 33.36  28,000 to 29,999    1.40 percent      59.5 percent   $2,000
 33.37  30,000 to 34,999    1.50 percent      60.0 percent   $2,000
 33.38  35,000 to 39,999    1.75 percent      61.0 percent   $2,000
 33.39  40,000 to 42,449    2.00 percent      62.5 percent   $1,900
 33.40  42,450 to 44,999    2.25 percent      63.5 percent   $1,800
 33.41  45,000 to 47,499    2.50 percent      65.0 percent   $1,700
 33.42  47,500 to 49,999    2.75 percent      66.0 percent   $1,600
 33.43  50,000 to 54,999    3.00 percent      67.5 percent   $1,500
 33.44  55,000 to 59,999    3.25 percent      68.5 percent   $1,400
 33.45  60,000 to 64,999    3.50 percent      70.0 percent   $1,300
 33.46  65,000 to 69,999    3.75 percent      71.0 percent   $1,200
 33.47  70,000 to 74,999    4.00 percent      72.5 percent   $1,100
 33.48  The payment made to a claimant shall be the amount of the state 
 33.49  refund calculated under this subdivision.  No payment is allowed 
 33.50  if the claimant's household income is $75,000 or more. 
 33.51     Sec. 5.  Minnesota Statutes 1994, section 290A.04, 
 34.1   subdivision 2, is amended to read: 
 34.2      Subd. 2.  [HOMEOWNERS AND RENTERS.] A claimant whose 
 34.3   property taxes payable or rent constituting property taxes on 
 34.4   the claimant's homestead are in excess of the percentage of the 
 34.5   household income stated below shall pay an amount equal to the 
 34.6   percent of income shown for the appropriate household income 
 34.7   level along with the percent to be paid by the claimant of the 
 34.8   remaining amount of property taxes payable.  The state refund 
 34.9   equals the amount of property taxes payable that remain, up to 
 34.10  the state refund amount shown below.  
 34.11                        Percent           Percent    Maximum
 34.12  Household Income     of Income          Paid by      State
 34.13                                          Claimant     Refund
 34.14      $0 to 1,029     1.2 percent        18 percent    $440
 34.15   1,030 to 2,059     1.3 percent        18 percent    $440
 34.16   2,060 to 3,099     1.4 percent        20 percent    $440
 34.17   3,100 to 4,129     1.6 percent        20 percent    $440
 34.18   4,130 to 5,159     1.7 percent        20 percent    $440
 34.19   5,160 to 7,229     1.9 percent        25 percent    $440
 34.20   7,230 to 8,259     2.1 percent        25 percent    $440
 34.21   8,260 to 9,289     2.2 percent        25 percent    $440
 34.22   9,290 to 10,319    2.3 percent        30 percent    $440
 34.23  10,320 to 11,349    2.4 percent        30 percent    $440
 34.24  11,350 to 12,389    2.5 percent        30 percent    $440
 34.25  12,390 to 14,449    2.6 percent        30 percent    $440
 34.26  14,450 to 15,479    2.8 percent        35 percent    $440
 34.27  15,480 to 16,509    3.0 percent        35 percent    $440
 34.28  16,510 to 17,549    3.2 percent        40 percent    $440
 34.29  17,550 to 21,669    3.3 percent        40 percent    $440
 34.30  21,670 to 24,769    3.4 percent        45 percent    $440
 34.31  24,770 to 30,959    3.5 percent        45 percent    $440
 34.32  30,960 to 36,119    3.5 percent        45 percent    $440
 34.33  36,120 to 41,279    3.7 percent        50 percent    $440
 34.34  41,280 to 58,829    4.0 percent        50 percent    $440
 34.35  58,830 to 59,859    4.0 percent        50 percent    $310
 34.36  59,860 to 60,889    4.0 percent        50 percent    $210
 34.37  60,890 to 61,929    4.0 percent        50 percent    $100 
 34.38      $0 to 1,059     0.50 percent       1.0 percent   $2,000
 34.39   1,060 to 2,119     0.50 percent       2.0 percent   $2,000
 34.40   2,120 to 3,189     0.50 percent       3.0 percent   $2,000
 34.41   3,190 to 4,249     0.50 percent       4.0 percent   $2,000
 34.42   4,250 to 5,309     0.50 percent       5.0 percent   $2,000
 34.43   5,310 to 7,439     0.50 percent       6.0 percent   $2,000
 34.44   7,440 to 8,499     0.50 percent       7.0 percent   $2,000
 34.45   8,500 to 9,549     0.50 percent       8.0 percent   $2,000
 34.46   9,550 to 10,609    0.50 percent       9.0 percent   $2,000
 34.47  10,610 to 12,739    0.60 percent      10.0 percent   $2,000
 34.48  12,740 to 14,859    0.60 percent      11.0 percent   $2,000
 34.49  14,860 to 16,979    0.70 percent      12.0 percent   $2,000
 34.50  16,980 to 18,049    0.80 percent      13.0 percent   $2,000
 34.51  18,050 to 19,999    0.90 percent      14.0 percent   $2,000
 34.52  20,000 to 23,999    1.00 percent      15.0 percent   $2,000
 34.53  24,000 to 27,999    1.20 percent      17.0 percent   $2,000
 34.54  28,000 to 29,999    1.40 percent      19.0 percent   $2,000
 34.55  30,000 to 34,999    1.50 percent      20.0 percent   $2,000
 34.56  35,000 to 39,999    1.75 percent      22.0 percent   $2,000
 34.57  40,000 to 42,449    2.00 percent      25.0 percent   $1,900
 34.58  42,450 to 44,999    2.25 percent      27.0 percent   $1,800
 34.59  45,000 to 47,499    2.50 percent      30.0 percent   $1,700
 34.60  47,500 to 49,999    2.75 percent      32.0 percent   $1,600
 35.1   50,000 to 54,999    3.00 percent      35.0 percent   $1,500
 35.2   55,000 to 59,999    3.25 percent      37.0 percent   $1,400
 35.3   60,000 to 64,999    3.50 percent      40.0 percent   $1,300
 35.4   65,000 to 69,999    3.75 percent      42.0 percent   $1,200
 35.5   70,000 to 74,999    4.00 percent      45.0 percent   $1,100
 35.6      The payment made to a claimant shall be the amount of the 
 35.7   state refund calculated under this subdivision.  No payment is 
 35.8   allowed if the claimant's household income is $61,930 $75,000 or 
 35.9   more. 
 35.10     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 35.11  290A.04, subdivision 6, is amended to read: 
 35.12     Subd. 6.  [INFLATION ADJUSTMENT.] Beginning for property 
 35.13  tax refunds payable in calendar year 1996 1998, the commissioner 
 35.14  shall annually adjust the dollar amounts of the income 
 35.15  thresholds and the maximum refunds under 
 35.16  subdivisions subdivision 2 and 2a for inflation.  The 
 35.17  commissioner shall make the inflation adjustments in accordance 
 35.18  with section 290.06, subdivision 2d, except that for purposes of 
 35.19  this subdivision the percentage increase shall be determined 
 35.20  from the year ending on August 31, 1994 1996, to the year ending 
 35.21  on August 31 of the year preceding that in which the refund is 
 35.22  payable.  The commissioner shall use the appropriate percentage 
 35.23  increase to annually adjust the income thresholds and maximum 
 35.24  refunds under subdivisions subdivision 2 and 2a for inflation 
 35.25  without regard to whether or not the income tax brackets are 
 35.26  adjusted for inflation in that year.  The commissioner shall 
 35.27  round the thresholds and the maximum amounts, as adjusted to the 
 35.28  nearest $10 amount.  If the amount ends in $5, the commissioner 
 35.29  shall round it up to the next $10 amount.  
 35.30     The commissioner shall annually announce the adjusted 
 35.31  refund schedule at the same time provided under section 290.06.  
 35.32  The determination of the commissioner under this subdivision is 
 35.33  not a rule under the administrative procedure act. 
 35.34     Sec. 7.  Minnesota Statutes 1994, section 290A.10, is 
 35.35  amended to read: 
 35.36     290A.10 [PROOF OF TAXES PAID.] 
 35.37     Every claimant who files a claim for relief for property 
 35.38  taxes payable shall include with the claim a property tax 
 36.1   statement or a reproduction thereof in a form deemed 
 36.2   satisfactory by the commissioner of revenue indicating that 
 36.3   there are no delinquent property taxes on the homestead or cabin.
 36.4   Indication on the property tax statement from the county 
 36.5   treasurer that there are no delinquent taxes on the homestead or 
 36.6   cabin shall be sufficient proof.  Taxes included in a confession 
 36.7   of judgment under section 279.37 shall not constitute delinquent 
 36.8   taxes as long as the claimant is current on the payments 
 36.9   required to be made under section 279.37. 
 36.10     Sec. 8.  Minnesota Statutes 1994, section 290A.23, 
 36.11  subdivision 3, is amended to read: 
 36.12     Subd. 3.  [ANNUAL APPROPRIATION.] For payments made after 
 36.13  July 1, 1996, there is annually appropriated from the general 
 36.14  fund to the commissioner of revenue the amount necessary to make 
 36.15  the payments required under section 290A.04, subdivisions 1a, 2, 
 36.16  and 2h. 
 36.17     Sec. 9.  [REPEALER.] 
 36.18     Minnesota Statutes 1994, sections 290A.04, subdivisions 2a 
 36.19  and 2b; and 290A.23, subdivision 1, are repealed. 
 36.20     Sec. 10.  [EFFECTIVE DATE.] 
 36.21     Sections 1 to 9 are effective for property taxes payable in 
 36.22  1997 and rents payable in 1996. 
 36.23                             ARTICLE 5
 36.24                        SALES AND USE TAXES 
 36.25     Section 1.  Minnesota Statutes 1995 Supplement, section 
 36.26  297A.01, subdivision 3, is amended to read: 
 36.27     Subd. 3.  A "sale" and a "purchase" includes, but is not 
 36.28  limited to, each of the following transactions: 
 36.29     (a) Any transfer of title or possession, or both, of 
 36.30  tangible personal property, whether absolutely or conditionally, 
 36.31  and the leasing of or the granting of a license to use or 
 36.32  consume tangible personal property other than manufactured homes 
 36.33  used for residential purposes for a continuous period of 30 days 
 36.34  or more, for a consideration in money or by exchange or barter; 
 36.35     (b) The production, fabrication, printing, or processing of 
 36.36  tangible personal property for a consideration for consumers who 
 37.1   furnish either directly or indirectly the materials used in the 
 37.3   production, fabrication, printing, or processing; 
 37.4      (c) The furnishing, preparing, or serving for a 
 37.5   consideration of food, meals, or drinks.  "Sale" does not 
 37.6   include: 
 37.7      (1) meals or drinks served to patients, inmates, or persons 
 37.8   residing at hospitals, sanitariums, nursing homes, senior 
 37.9   citizens homes, and correctional, detention, and detoxification 
 37.10  facilities; 
 37.11     (2) meals or drinks purchased for and served exclusively to 
 37.12  individuals who are 60 years of age or over and their spouses or 
 37.13  to the handicapped and their spouses by governmental agencies, 
 37.14  nonprofit organizations, agencies, or churches or pursuant to 
 37.15  any program funded in whole or part through 42 USCA sections 
 37.16  3001 through 3045, wherever delivered, prepared or served; or 
 37.17     (3) meals and lunches served at public and private schools, 
 37.18  universities, or colleges. 
 37.19  Notwithstanding section 297A.25, subdivision 2, taxable food or 
 37.20  meals include, but are not limited to, the following:  
 37.21     (i) heated food or drinks; 
 37.22     (ii) sandwiches prepared by the retailer; 
 37.23     (iii) single sales of prepackaged ice cream or ice milk 
 37.24  novelties prepared by the retailer; 
 37.25     (iv) hand-prepared or dispensed ice cream or ice milk 
 37.26  products including cones, sundaes, and snow cones; 
 37.27     (v) soft drinks and other beverages prepared or served by 
 37.28  the retailer; 
 37.29     (vi) gum; 
 37.30     (vii) ice; 
 37.31     (viii) all food sold in vending machines; 
 37.32     (ix) party trays prepared by the retailers; and 
 37.33     (x) all meals and single servings of packaged snack food, 
 37.34  single cans or bottles of pop, sold in restaurants and bars; 
 37.35     (d) The granting of the privilege of admission to places of 
 37.36  amusement, recreational areas, or athletic events, except a 
 37.37  world championship football game sponsored by the national 
 38.1   football league, and the privilege of having access to and the 
 38.2   use of amusement devices, tanning facilities, reducing salons, 
 38.3   steam baths, turkish baths, health clubs, and spas or athletic 
 38.4   facilities; 
 38.5      (e) The furnishing for a consideration of lodging and 
 38.6   related services by a hotel, rooming house, tourist court, motel 
 38.7   or trailer camp and of the granting of any similar license to 
 38.8   use real property other than the renting or leasing thereof for 
 38.9   a continuous period of 30 days or more; 
 38.10     (f) The furnishing for a consideration of electricity, gas, 
 38.11  water, sanitary sewer services, or steam for use or consumption 
 38.12  within this state, or local exchange telephone service, 
 38.13  intrastate toll service, and interstate toll service, if that 
 38.14  service originates from and is charged to a telephone located in 
 38.15  this state.  Telephone service includes paging services and 
 38.16  private communication service, as defined in United States Code, 
 38.17  title 26, section 4252(d), except for private communication 
 38.18  service purchased by an agent acting on behalf of the state 
 38.19  lottery.  The furnishing for a consideration of access to 
 38.20  telephone services by a hotel to its guests is a sale under this 
 38.21  clause.  Sales by municipal corporations in a proprietary 
 38.22  capacity are included in the provisions of this clause.  The 
 38.23  furnishing of water and sewer services for residential use shall 
 38.24  not be considered a sale.  The sale of natural gas to be used as 
 38.25  a fuel in vehicles propelled by natural gas shall not be 
 38.26  considered a sale for the purposes of this section; 
 38.27     (g) The furnishing for a consideration of cable television 
 38.28  services, including charges for basic service, charges for 
 38.29  premium service, and any other charges for any other 
 38.30  pay-per-view, monthly, or similar television services; 
 38.31     (h) The furnishing for a consideration of parking services, 
 38.32  whether on a contractual, hourly, or other periodic basis, 
 38.33  except for parking at a meter; 
 38.34     (i) The furnishing for a consideration of services listed 
 38.35  in this paragraph: 
 38.36     (i) laundry and dry cleaning services including cleaning, 
 39.1   pressing, repairing, altering, and storing clothes, linen 
 39.2   services and supply, cleaning and blocking hats, and carpet, 
 39.3   drapery, upholstery, and industrial cleaning.  Laundry and dry 
 39.4   cleaning services do not include services provided by coin 
 39.5   operated facilities operated by the customer; 
 39.6      (ii) motor vehicle washing, waxing, and cleaning services, 
 39.7   including services provided by coin-operated facilities operated 
 39.8   by the customer, and rustproofing, undercoating, and towing of 
 39.9   motor vehicles; 
 39.10     (iii) building and residential cleaning, maintenance, and 
 39.11  disinfecting and exterminating services; 
 39.12     (iv) detective services, security services, burglar, fire 
 39.13  alarm, and armored car services not including services performed 
 39.14  within the jurisdiction they serve by off-duty licensed peace 
 39.15  officers as defined in section 626.84, subdivision 1; 
 39.16     (v) pet grooming services; 
 39.17     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
 39.18  services; garden planting and maintenance; tree, bush, and shrub 
 39.19  pruning, bracing, spraying, and surgery; tree, bush, shrub and 
 39.20  stump removal; and tree trimming for public utility lines.  
 39.21  Services performed under a construction contract for the 
 39.22  installation of shrubbery, plants, sod, trees, bushes, and 
 39.23  similar items are not taxable; 
 39.24     (vii) mixed municipal solid waste management services as 
 39.25  described in section 297A.45; 
 39.26     (viii) massages, except when provided by a licensed health 
 39.27  care facility or professional or upon written referral from a 
 39.28  licensed health care facility or professional for treatment of 
 39.29  illness, injury, or disease; and 
 39.30     (ix) the furnishing for consideration of lodging, board and 
 39.31  care services for animals in kennels and other similar 
 39.32  arrangements, but excluding veterinary and horse boarding 
 39.33  services.; 
 39.34     (x) pumping and maintenance services for individual sewage 
 39.35  treatment systems as defined in section 115.55; and 
 39.36     (xi) motor vehicle repair, maintenance, and diagnostic 
 40.1   services. 
 40.2   The services listed in this paragraph are taxable under section 
 40.3   297A.02 if the service is performed wholly within Minnesota or 
 40.4   if the service is performed partly within and partly without 
 40.5   Minnesota and the greater proportion of the service is performed 
 40.6   in Minnesota, based on the cost of performance.  In applying the 
 40.7   provisions of this chapter, the terms "tangible personal 
 40.8   property" and "sales at retail" include taxable services and the 
 40.9   provision of taxable services, unless specifically provided 
 40.10  otherwise.  Services performed by an employee for an employer 
 40.11  are not taxable under this paragraph.  Services performed by a 
 40.12  partnership or association for another partnership or 
 40.13  association are not taxable under this paragraph if one of the 
 40.14  entities owns or controls more than 80 percent of the voting 
 40.15  power of the equity interest in the other entity.  Services 
 40.16  performed between members of an affiliated group of corporations 
 40.17  are not taxable.  For purposes of this section, "affiliated 
 40.18  group of corporations" includes those entities that would be 
 40.19  classified as a member of an affiliated group under United 
 40.20  States Code, title 26, section 1504, and who are eligible to 
 40.21  file a consolidated tax return for federal income tax purposes; 
 40.22     (j) A "sale" and a "purchase" includes the transfer of 
 40.23  computer software, meaning information and directions that 
 40.24  dictate the function performed by data processing equipment.  A 
 40.25  "sale" and a "purchase" does not include the design, 
 40.26  development, writing, translation, fabrication, lease, or 
 40.27  transfer for a consideration of title or possession of a custom 
 40.28  computer program; and 
 40.29     (k) The granting of membership in a club, association, or 
 40.30  other organization if: 
 40.31     (1) the club, association, or other organization makes 
 40.32  available for the use of its members sports and athletic 
 40.33  facilities (without regard to whether a separate charge is 
 40.34  assessed for use of the facilities); and 
 40.35     (2) use of the sports and athletic facilities is not made 
 40.36  available to the general public on the same basis as it is made 
 41.1   available to members.  
 41.2   Granting of membership includes both one-time initiation fees 
 41.3   and periodic membership dues.  Sports and athletic facilities 
 41.4   include golf courses, tennis, racquetball, handball and squash 
 41.5   courts, basketball and volleyball facilities, running tracks, 
 41.6   exercise equipment, swimming pools, and other similar athletic 
 41.7   or sports facilities.  The provisions of this paragraph do not 
 41.8   apply to camps or other recreation facilities owned and operated 
 41.9   by an exempt organization under section 501(c)(3) of the 
 41.10  Internal Revenue Code of 1986, as amended through December 31, 
 41.11  1992, for educational and social activities for young people 
 41.12  primarily age 18 and under.  
 41.13     Sec. 2.  Minnesota Statutes 1994, section 297A.25, 
 41.14  subdivision 8, is amended to read: 
 41.15     Subd. 8.  [USED CLOTHING.] The gross receipts from the sale 
 41.16  of used clothing and used wearing apparel are exempt, except the 
 41.17  following: 
 41.18     (1) all articles commonly or commercially known as jewelry, 
 41.19  whether real or imitation; pearls, precious and semiprecious 
 41.20  stones, and imitations thereof; articles made of, or ornamented, 
 41.21  mounted or fitted with precious metals or imitations thereof; 
 41.22  watches; clocks; cases and movements for watches and clocks; 
 41.23  gold, gold-plated, silver, or sterling flatware or hollowware 
 41.24  and silver-plated hollowware; opera glasses; lorgnettes; marine 
 41.25  glasses; field glasses and binoculars; 
 41.26     (2) articles made of fur on the hide or pelt, and articles 
 41.27  of which such fur is the component material or chief value, but 
 41.28  only if such value is more than three times the value of the 
 41.29  next most valuable component material; 
 41.30     (3) perfume, essences, extracts, toilet waters, cosmetics, 
 41.31  petroleum jellies, hair oils, pomades, hair dressings, hair 
 41.32  restoratives, hair dyes, aromatic cachous and toilet powders.  
 41.33  The tax imposed by this chapter shall not apply to lotion, oil, 
 41.34  powder, or other articles intended to be used or applied only in 
 41.35  the case of babies; 
 41.36     (4) trunks, valises, traveling bags, suitcases, satchels, 
 42.1   overnight bags, hat boxes for use by travelers, beach bags, 
 42.2   bathing suit bags, brief cases made of leather or imitation 
 42.3   leather, salespeople's sample and display cases, purses, 
 42.4   handbags, pocketbooks, wallets, billfolds, card, pass, and key 
 42.5   cases and toilet cases. 
 42.6      Sec. 3.  [EFFECTIVE DATE.] 
 42.7      Sections 1 and 2 are effective for sales on or after June 
 42.8   1, 1997. 
 42.9                              ARTICLE 6
 42.10                           EDUCATION AIDS 
 42.11     Section 1.  Minnesota Statutes 1995 Supplement, section 
 42.12  124.226, subdivision 10, is amended to read: 
 42.13     Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 42.14  district may make a levy for targeted needs transportation costs 
 42.15  according to this subdivision.  The amount of the levy shall be 
 42.16  the result of the following computation: 
 42.17     (1) For fiscal year 1997 and later, targeted needs 
 42.18  transportation levy equalization revenue equals 28 percent of 
 42.19  the sum of the district's special programs transportation 
 42.20  revenue under section 124.225, subdivision 14, and the 
 42.21  district's integration transportation revenue under section 
 42.22  124.225, subdivision 15. 
 42.23     (2) The targeted needs transportation levy equals the 
 42.24  result in clause (1) times the lesser of one or the ratio of (i) 
 42.25  the quotient derived by dividing the adjusted net tax capacity 
 42.26  of the district for the year before the year the levy is 
 42.27  certified by the actual pupil units in the district for the 
 42.28  school year to which the levy is attributable, to (ii) 
 42.29  $3,540 $3,440. 
 42.30     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 42.31  124.2711, subdivision 2a, is amended to read: 
 42.32     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 42.33  obtain early childhood family education revenue, a district may 
 42.34  levy an amount equal to the tax rate of .609 .627 percent times 
 42.35  the adjusted tax capacity of the district for the year preceding 
 42.36  the year the levy is certified.  If the amount of the early 
 43.1   childhood family education levy would exceed the early childhood 
 43.2   family education revenue, the early childhood family education 
 43.3   levy shall equal the early childhood family education revenue. 
 43.4      Sec. 3.  Minnesota Statutes 1994, section 124.2716, 
 43.5   subdivision 3, is amended to read: 
 43.6      Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
 43.7   revenue, a school district may levy an amount equal to the 
 43.8   district's extended day revenue as defined in subdivision 2 
 43.9   multiplied by the lesser of one, or the ratio of the quotient 
 43.10  derived by dividing the adjusted net tax capacity of the 
 43.11  district for the year before the year the levy is certified by 
 43.12  the actual pupil units in the district for the school year to 
 43.13  which the levy is attributable, to $3,700 $3,595.  
 43.14     Sec. 4.  Minnesota Statutes 1994, section 124.2727, 
 43.15  subdivision 6b, is amended to read: 
 43.16     Subd. 6b.  [DISTRICT COOPERATION LEVY.] To receive district 
 43.17  cooperation revenue, a district may levy an amount equal to the 
 43.18  district's cooperation revenue multiplied by the lesser of one, 
 43.19  or the ratio of the quotient derived by dividing the adjusted 
 43.20  net tax capacity of the district for the year preceding the year 
 43.21  the levy is certified by the actual pupil units in the district 
 43.22  for the school year to which the levy is attributable 
 43.23  to $3,500 $3,400. 
 43.24     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 43.25  124.83, subdivision 4, is amended to read: 
 43.26     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
 43.27  safety revenue, a district may levy an amount equal to the 
 43.28  district's health and safety revenue as defined in subdivision 3 
 43.29  multiplied by the lesser of one, or the ratio of the quotient 
 43.30  derived by dividing the adjusted net tax capacity of the 
 43.31  district for the year preceding the year the levy is certified 
 43.32  by the actual pupil units in the district for the school year to 
 43.33  which the levy is attributable, to $4,707.50 $4,575. 
 43.34     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 43.35  124.95, subdivision 4, is amended to read: 
 43.36     Subd. 4.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
 44.1   service equalization revenue, a district must levy an amount not 
 44.2   to exceed the district's debt service equalization revenue times 
 44.3   the lesser of one or the ratio of: 
 44.4      (1) the quotient derived by dividing the adjusted net tax 
 44.5   capacity of the district for the year before the year the levy 
 44.6   is certified by the actual pupil units in the district for the 
 44.7   school year ending in the year prior to the year the levy is 
 44.8   certified; to 
 44.9      (2) $4,707.50 $4,575. 
 44.10     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 44.11  124A.23, subdivision 1, is amended to read: 
 44.12     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 44.13  commissioner shall establish the general education tax rate by 
 44.14  July 1 of each year for levies payable in the following year.  
 44.15  The general education tax capacity rate shall be a rate, rounded 
 44.16  up to the nearest tenth of a percent, that, when applied to the 
 44.17  adjusted net tax capacity for all districts, raises the amount 
 44.18  specified in this subdivision.  The general education tax rate 
 44.19  shall be the rate that raises $1,054,000,000 for fiscal year 
 44.20  1996 and $1,359,000,000 for fiscal year 1997 and $1,003,000,000 
 44.21  for fiscal year 1998 and later fiscal years.  The general 
 44.22  education tax rate may not be changed due to changes or 
 44.23  corrections made to a district's adjusted net tax capacity after 
 44.24  the tax rate has been established.  
 44.25     Sec. 8.  [APPROPRIATION.] 
 44.26     $....... is appropriated to the commissioner of children, 
 44.27  families, and learning in fiscal year 1997 for additional state 
 44.28  aid costs associated with changes in school levy revenues 
 44.29  recognized under Minnesota Statutes, section 121.904, 
 44.30  subdivision 4a, as the result of the levy changes due to section 
 44.31  7. 
 44.32     Sec. 9.  [EFFECTIVE DATE.] 
 44.33     Sections 1 to 7 are effective for property taxes payable in 
 44.34  1997 and thereafter.