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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 213--H.F.No. 1171
           An act relating to taxation; clarifying the income tax 
          treatment of certain debt obligations of state and 
          local governments; amending Minnesota Statutes 1982, 
          sections 80A.09, subdivision 1; 115A.69, subdivision 
          6; 116A.25; 116J.89, subdivision 6; 136.32; 136A.179; 
          136A.39; 193.146, subdivision 4; 272.02, subdivision 
          1; 362A.07; 447.35; 447.49; 458.193, subdivision 6; 
          458A.05, subdivision 6; 458A.09; 462.191, subdivision 
          3; 462.551; 462A.19, subdivision 1; 472.09, 
          subdivision 4; 473.436, subdivision 6; 473.448; 
          473.545; and 473.666; repealing Minnesota Statutes 
          1982, sections 116J.89, subdivision 7; 462A.19, 
          subdivision 2; and 474.12. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [LEGISLATIVE INTENT.] 
    It is the intent of the legislature that the taxation of 
the obligations of the state of Minnesota and any of its 
political subdivisions, municipalities, governmental agencies, 
or instrumentalities and the interest on the obligations be 
determined uniformly pursuant to Minnesota Statutes, sections 
272.02, subdivision 1; 290.01, subdivision 20; and 290.08, 
subdivision 8.  This act is intended to clarify the law by 
eliminating duplicative, inconsistent, and ambiguous statutory 
references to the taxation of such obligations and the interest 
paid on the obligations.  
    Sec. 2.  Minnesota Statutes 1982, section 80A.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  The following securities may be registered 
by notification: 
    (a) any industrial revenue bond, the interest on which is 
exempt from tax under section 290.08, subdivision 7 issued by 
the state of Minnesota or any of its political or governmental 
subdivisions, municipalities, governmental agencies, or 
instrumentalities; and 
    (b) any securities issued by a person organized exclusively 
for social, religious, educational, benevolent, fraternal, 
charitable, reformatory, athletic, chamber of commerce, trade, 
industrial development, or professional association purposes and 
not for pecuniary gain, and no part of the net earnings of which 
inures to the benefit of any private stockholder or individual; 
provided that no securities issued by any person offering and 
furnishing a burial service or funeral benefit, directly or 
indirectly for financial consideration, may be registered under 
this section.  
     Sec. 3.  Minnesota Statutes 1982, section 115A.69, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROPERTY EXEMPT FROM TAXATION.] Any real or 
personal property owned, used, or occupied by the district for 
any authorized purpose is declared to be acquired, owned, used 
and occupied for public and governmental purposes, and shall be 
exempted from taxation by the state or any political subdivision 
of the state, provided that those properties shall be subject to 
special assessments levied by a political subdivision for a 
local improvement in amounts proportionate to and not exceeding 
the special benefit received by the properties from the 
improvement.  No possible use of the properties in any manner 
different from their use for solid waste management at the time 
shall be considered in determining the special benefit received 
by the properties.  All bonds, certificates of indebtedness or 
other obligations of the district shall be exempted from 
taxation by the state or any political subdivision of the 
state.  Interest on the obligations of the district shall be 
exempted from taxation in the same manner provided for interest 
on obligations qualifying under section 290.08, subdivision 7.  
     Sec. 4.  Minnesota Statutes 1982, section 116A.25, is 
amended to read: 
    116A.25 [PROPERTY EXEMPT FROM TAXATION.] 
    Any properties, real or personal, owned, leased, 
controlled, used, or occupied by a water or sewer or water and 
sewer commission or board for any purpose referred to in 
sections 116A.01 to 116A.26 are declared to be acquired, owned, 
leased, controlled, used and occupied for public, governmental, 
and municipal purposes, and shall be exempt from taxation by the 
state or any political subdivision of the state, provided that 
such properties shall be subject to special assessments levied 
by a political subdivision for a local improvement in amounts 
proportionate to and not exceeding the special benefit received 
by the properties from such improvement.  No possible use of any 
such properties in any manner different from their use as part 
of a distribution or disposal system at the time shall be 
considered in determining the special benefit received by such 
properties.  All such assessments shall be subject to final 
confirmation by the county board or boards in whose jurisdiction 
the system is constructed and whose determination of the 
benefits shall be conclusive upon the political subdivision 
levying the assessment.  All bonds, certificates of indebtedness 
or other obligations of the commission or boards, and the 
interest thereon, shall be exempt from taxation by the state or 
any political subdivision of the state.  
     Sec. 5.  Minnesota Statutes 1982, section 116J.89, 
subdivision 6, is amended to read: 
    Subd. 6.  The property of the agency and its income and 
operation shall be exempt from all taxation by the state or any 
of its political subdivisions and all bonds and notes of the 
agency shall be exempt from all taxation by the state or any of 
its political subdivisions. 
     Sec. 6.  Minnesota Statutes 1982, section 136.32, is 
amended to read: 
     136.32 [BONDS, INVESTMENTS.] 
     The state, including the state board of investment, and all 
counties, cities, incorporated towns and other municipal 
corporations, political subdivisions and political bodies, and 
public officers of any thereof, all banks, bankers, trust 
companies, savings banks, and institutions, building and loan 
associations, savings and loan associations, investment 
companies and other persons carrying on a banking business, all 
insurance companies, insurance associations and other persons 
carrying on an insurance business, and all executors, 
administrators, guardians, trustees and other fiduciaries may 
legally invest any sinking funds, moneys or other funds 
belonging to them or within their control in any bonds issued 
pursuant to sections 136.31 to 136.38, it being the purpose of 
this section to authorize the investment in such bonds of all 
sinking, insurance, retirement, compensation, pension and trust 
funds, whether owned or controlled by private or public persons 
or officers; provided, however, that nothing contained in this 
section may be construed as relieving any person, firm or 
corporation from any duty of exercising due care in selecting 
securities for purchase or investment.  Such bonds are hereby 
constituted "authorized securities" within the meaning and for 
the purposes of section 50.14, notwithstanding the restrictions 
in part (c) of subdivision 4 thereof.  All bonds issued under 
sections 136.31 to 136.38 shall be exempt from all taxation. 
Interest paid on such bonds shall not be included in gross 
income for the purpose of computing any tax imposed by or under 
any provisions of chapter 290, or any act amendatory thereof or 
supplemental thereto.  
    Sec. 7.  Minnesota Statutes 1982, section 136A.179, is 
amended to read: 
    136A.179 [PUBLIC PURPOSE; TAX FREE STATUS.] 
    The exercise of the powers granted by sections 136A.14 to 
136A.179 will be in all respects for the benefit of the people 
of this state, for the increase of their commerce, welfare and 
prosperity, and for the improvement of their health and living 
conditions, and as providing loans by the board or its agent 
will constitute the performance of an essential public function, 
and any bonds issued under the provisions of sections 136A.14 to 
136A.179, their transfer and the income therefrom including any 
profit made on the sale thereof, shall at all times be free from 
taxation of every kind by the state and by the municipalities 
and other political subdivisions in the state. 
    Sec. 8.  Minnesota Statutes 1982, section 136A.39, is 
amended to read: 
    136A.39 [EXEMPTION FROM TAXES AND OTHER RESTRICTIONS.] 
    The exercise of the powers granted by sections 136A.25 to 
136A.42, will be in all respects for the benefit of the people 
of this state, for the increase of their commerce, welfare and 
prosperity, and for the improvement of their health and living 
conditions, and as the operation and maintenance of a project by 
the authority or its agent will constitute the performance of an 
essential public function, neither the authority nor its agent 
shall be required to pay any taxes or assessments upon or in 
respect of a project or any property acquired or used by the 
authority or its agent under the provisions of sections 136A.25 
to 136A.42, or upon the income therefrom, and any bonds issued 
under the provisions of sections 136A.25 to 136A.42, their 
transfer and the income therefrom, including any profit made on 
the sale thereof, shall at all times be free from taxation of 
every kind by the state and by the municipalities and other 
political subdivisions in the state.  
    Sec. 9.  Minnesota Statutes 1982, section 193.146, 
subdivision 4, is amended to read: 
    Subd. 4.  [SALE.] The bonds shall be sold by the 
corporation under notice and upon the terms and at times as the 
corporation shall deem best.  The bonds shall not be deemed or 
construed to be debts of the state of Minnesota or of the county 
or municipality in which the armory is situated, nor to impose 
any personal liability upon any member of the corporation, but 
shall be payable solely out of the income to be received by the 
corporation as specified herein.  Bonds legally issued pursuant 
hereto shall be deemed authorized securities within the 
provisions of section 50.14, and laws supplemental thereto, and 
shall be proper for the investment of capital, surplus, or 
deposits of any savings bank or trust company, and for the 
investment of funds of any insurance company, and for the 
investment of any sinking funds held by any public or municipal 
corporation, and may be pledged by any bank or trust company as 
security for the deposit of public moneys therein in lieu of 
surety bonds.  The bonds shall be deemed and treated as 
instrumentalities and obligations of a public governmental 
agency, and as such shall be exempt from taxation. 
     Sec. 10.  Minnesota Statutes 1982, section 272.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as provided in other subdivisions of 
this section or in section 272.025 or section 273.13, 
subdivisions 17, 17b, 17c or 17d, all property described in this 
section to the extent herein limited shall be exempt from 
taxation: 
     (1) All public burying grounds; 
     (2) All public schoolhouses; 
     (3) All public hospitals; 
     (4) All academies, colleges, and universities, and all 
seminaries of learning; 
     (5) All churches, church property, and houses of worship; 
     (6) Institutions of purely public charity except property 
assessed pursuant to section 273.13, subdivisions 17, 17b, 17c 
or 17d; 
     (7) All public property exclusively used for any public 
purpose; 
     (8) (a) Class 2 property of every household of the value of 
$100, maintained in the principal place of residence of the 
owner thereof.  The county auditor shall deduct such exemption 
from the total valuation of such property as equalized by the 
revenue commissioner assessed to such household, and extend the 
levy of taxes upon the remainder only.  The term "household" as 
used in this section is defined to be a domestic establishment 
maintained either (1) by two or more persons living together 
within the same house or place of abode, subsisting in common 
and constituting a domestic or family relationship, or (2) by 
one person. 
    (b) During the period of his active service and for six 
months after his discharge therefrom, no member of the armed 
forces of the United States shall lose status of a householder 
under paragraph (a) which he had immediately prior to becoming a 
member of the armed forces. 
    In case there is an assessment against more than one member 
of a household the $100 exemption shall be divided among the 
members assessed in the proportion that the assessed value of 
the Class 2 property of each bears to the total assessed value 
of the Class 2 property of all the members assessed.  The Class 
2 property of each household claimed to be exempt shall be 
limited to property in one taxing district, except in those 
cases where a single domestic establishment is maintained in two 
or more adjoining districts. 
    Bonds and, certificates of indebtedness hereafter, or other 
obligations issued by the state of Minnesota, or by any county 
or city of the state, or any town, or any common or independent 
school district of the state, or any governmental board of the 
state, or any county or city thereof, shall hereafter be are 
exempt from ad valorem property taxation; provided, that nothing 
herein contained shall be construed as exempting such bonds from 
the payment of a tax thereon, as provided for by section 291.01, 
when any of such bonds constitute, in whole or in part, any 
inheritance or bequest, taken or received by any person or 
corporation this subdivision shall not exempt the obligations or 
their interest from any excise or other tax levied on income, 
gross earnings, estates, inheritance, bequests, gifts, 
transfers, sales, or other transactions, other than an ad 
valorem property tax. 
    (9) Farm machinery manufactured prior to 1930, which is 
used only for display purposes as a collectors item; 
    (10) The taxpayer shall be exempted with respect to, all 
agricultural products, inventories, stocks of merchandise of all 
sorts, all materials, parts and supplies, furniture and 
equipment, manufacturers material, manufactured articles 
including the inventories of manufacturers, wholesalers, 
retailers and contractors; and the furnishings of a room or 
apartment in a hotel, rooming house, tourist court, motel or 
trailer camp, tools and machinery which by law are considered as 
personal property, and the property described in section 272.03, 
subdivision 1, clause (c), except personal property which is 
part of an electric generating, transmission, or distribution 
system or a pipeline system transporting or distributing water, 
gas, or petroleum products or mains and pipes used in the 
distribution of steam or hot or chilled water for heating or 
cooling buildings and structures.  Railroad docks and wharves 
which are part of the operating property of a railroad company 
as defined in section 270.80 are not exempt. 
     (11) Containers of a kind customarily in the possession of 
the consumer during the consumption of commodities, the sale of 
which are subject to tax under the provisions of the excise tax 
imposed by Extra Session Laws 1967, chapter 32; 
    (12) All livestock, poultry, all horses, mules and other 
animals used exclusively for agricultural purposes; 
    (13) All agricultural tools, implements and machinery used 
by the owners in any agricultural pursuit. 
    (14) Real and personal property used primarily for the 
abatement and control of air, water, or land pollution to the 
extent that it is so used, other than real property used 
primarily as a solid waste disposal site. 
    Any taxpayer requesting exemption of all or a portion of 
any equipment or device, or part thereof, operated primarily for 
the control or abatement of air or water pollution shall file an 
application with the commissioner of revenue.  Any such 
equipment or device shall meet standards, regulations or 
criteria prescribed by the Minnesota Pollution Control Agency, 
and must be installed or operated in accordance with a permit or 
order issued by that agency.  The Minnesota Pollution Control 
Agency shall upon request of the commissioner furnish 
information or advice to the commissioner.  If the commissioner 
determines that property qualifies for exemption, he shall issue 
an order exempting such property from taxation.  Any such 
equipment or device shall continue to be exempt from taxation as 
long as the permit issued by the Minnesota Pollution Control 
Agency remains in effect. 
     (15) Wetlands.  For purposes of this subdivision, 
"wetlands" means land which is mostly under water, produces 
little if any income, and has no use except for wildlife or 
water conservation purposes.  "Wetlands" shall be land preserved 
in its natural condition, drainage of which would be feasible 
and practical and would provide land suitable for the production 
of livestock, dairy animals, poultry, fruit, vegetables, forage 
and grains, except wild rice.  "Wetlands" shall include adjacent 
land which is not suitable for agricultural purposes due to the 
presence of the wetlands.  Exemption of wetlands from taxation 
pursuant to this section shall not grant the public any 
additional or greater right of access to the wetlands or 
diminish any right of ownership to the wetlands. 
     (16) Native prairie.  The commissioner of the department of 
natural resources shall determine lands in the state which are 
native prairie and shall notify the county assessor of each 
county in which the lands are located. Pasture land used for 
livestock grazing purposes shall not be considered native 
prairie for the purposes of this clause and section 273.116.  
Upon receipt of an application for the exemption and credit 
provided in this clause and section 273.116 for lands for which 
the assessor has no determination from the commissioner of 
natural resources, the assessor shall refer the application to 
the commissioner of natural resources who shall determine within 
30 days whether the land is native prairie and notify the county 
assessor of his decision.  Exemption of native prairie pursuant 
to this clause shall not grant the public any additional or 
greater right of access to the native prairie or diminish any 
right of ownership to it. 
     (17) Property used in a continuous program to provide 
emergency shelter for victims of domestic abuse, provided the 
organization that owns and sponsors the shelter is exempt from 
federal income taxation pursuant to section 501(c)(3) of the 
Internal Revenue Code of 1954, as amended through December 31, 
1980, notwithstanding the fact that the sponsoring organization 
receives funding under section 8 of the United States Housing 
Act of 1937, as amended. 
     (18) If approved by the governing body of the municipality 
in which the property is located, property not exceeding one 
acre which is owned and operated by any senior citizen group or 
association of groups that in general limits membership to 
persons age 55 or older and is organized and operated 
exclusively for pleasure, recreation, and other nonprofit 
purposes, no part of the net earnings of which inures to the 
benefit of any private shareholders; provided the property is 
used primarily as a clubhouse, meeting facility or recreational 
facility by the group or association and the property is not 
used for residential purposes on either a temporary or permanent 
basis. 
     (19) To the extent provided by section 295.44, real and 
personal property used or to be used primarily for the 
production of hydroelectric or hydromechanical power on a site 
owned by the state or a local governmental unit which is 
developed and operated pursuant to the provisions of section 
105.482, subdivisions 1, 8 and 9.  
     Sec. 11.  Minnesota Statutes 1982, section 362A.07, is 
amended to read: 
    362A.07 [STATE AND COUNTY NOT LIABLE ON BONDS.] 
    The bonds and other obligations of an authority shall not 
be the debt of the state of Minnesota or of any county or 
political subdivision.  Interest paid on bonds or notes issued 
pursuant to sections 362A.01 to 362A.08 shall not be included in 
gross income for the purpose of computing any tax imposed by 
chapter 290, or any act amendatory thereof or supplemental 
thereto.  
     Sec. 12.  Minnesota Statutes 1982, section 447.35, is 
amended to read: 
     447.35 [BONDS.] 
     Each hospital district may borrow money by the issuance of 
its general obligation bonds for the acquisition and betterment 
of hospital and nursing home facilities (including, but without 
limitation, the provision of an adequate working capital for a 
new hospital or nursing home), for ambulances and related 
equipment, for refunding its outstanding bonds, and for funding 
valid outstanding orders, by the procedure and subject to all of 
the limitations and conditions set forth in chapter 475, and any 
future laws amending or supplementing the same, for the issuance 
of bonds by municipalities.  Except for revenue bonds issued 
pursuant to sections 447.45 through 447.50, no bonds of a 
hospital district shall be deemed to be excluded from its net 
debt by virtue of the provisions of section 475.51, subdivision 
4(5).  Except as may be authorized by special law, the taxes 
initially levied by any district in accordance with section 
475.61, for the payment of its bonds, upon property within each 
municipality included in the hospital district, shall be 
included in computing the limitations upon the levy of such 
municipality under section 275.11, as the case may be; but 
nothing herein shall limit the taxes required by section 475.74, 
to be levied by the district for payment of any deficiency in 
its bond sinking funds.  If the tax required by section 475.61 
to be levied for any year of the term of a bond issue upon 
property within any municipality included in the district would, 
when added to the taxes levied by such municipality for all 
purposes in the year preceding such issue, exceed the 
limitations prescribed in section 275.11, the bonds shall not be 
issued without the consent by resolution of the governing body 
of such municipality.  An election shall be required prior to 
the issuance of any but funding or refunding bonds.  The 
proposition submitted at any such election shall be whether the 
hospital board shall be authorized to issue bonds of the 
district in a specified maximum amount, for the purpose of 
financing the acquisition and betterment of hospital and nursing 
home facilities, or of facilities of one of said types if it is 
not proposed to use the bond proceeds for facilities of the 
other type.  Bonds issued by a hospital district shall not 
constitute indebtedness for any purpose of any county, city, or 
town whose territory is included therein.  The interest on such 
bonds shall be exempt from taxation by the state or any of its 
political subdivisions.  
     Sec. 13.  Minnesota Statutes 1982, section 447.49, is 
amended to read: 
    447.49 [MISCELLANEOUS PROVISIONS.] 
    All bonds issued pursuant to sections 447.45 to 447.50 
shall be issued and sold as provided in chapter 475, but if the 
bonds do not pledge the credit of the county, city or hospital 
district as provided in section 447.48, the governing body may 
negotiate their sale without advertisement for bids.  They shall 
not be included in the net debt of any municipality included 
therein, and shall not be subject to interest rate limitations, 
as defined or referred to in sections 475.51 and 475.55.  The 
bonds and interest thereon shall be exempt from taxation by the 
state or any of its political subdivisions.  
    Sec. 14.  Minnesota Statutes 1982, section 458.193, 
subdivision 6, is amended to read: 
    Subd. 6.  Bonds legally issued pursuant to Laws 1957, 
Chapter 812 chapter 458, shall be deemed authorized as 
securities within the provisions of Minnesota Statutes, section 
50.14, and shall be proper for the investment therein by any 
savings bank or trust company, insurance company, or sinking 
funds held by any public or municipal corporation, and may be 
pledged by any bank or trust company as security for the deposit 
of public moneys therein in lieu of surety bonds.  Such The 
bonds shall be deemed and treated as instrumentalities of a 
public governmental agency and, as such, exempt from taxation. 
    Sec. 15.  Minnesota Statutes 1982, section 458A.05, 
subdivision 6, is amended to read: 
    Subd. 6.  [TAX EXEMPT OBLIGATIONS OF GOVERNMENTAL AGENCY.] 
Revenue bonds of the commission shall be deemed and treated as 
instrumentalities and obligations of a public government agency 
and as such, together with interest thereon, exempt from 
taxation. 
    Sec. 16.  Minnesota Statutes 1982, section 458A.09, is 
amended to read: 
    458A.09 [EXEMPTION FROM TAXATION.] 
    Notwithstanding any other provision of law to the contrary, 
the properties, moneys, and other assets of the commission, and 
all revenues or other income of the commission, and all bonds, 
certificates of indebtedness, or other obligations issued by the 
commission, and the interest thereon, shall be exempt from all 
taxation, licenses, fees, or charges of any kind imposed by the 
state or by any county, municipality, political subdivision, 
taxing district, or other public agency or body of the state. 
    Sec. 17.  Minnesota Statutes 1982, section 462.651, 
subdivision 3, is amended to read: 
    Subd. 3.  [OBLIGATIONS AND DIVIDENDS OF REDEVELOPMENT 
COMPANY EXEMPT FROM TAXATION.] Bonds and mortgages and the 
income debenture certificates of all redevelopment companies are 
declared to be instrumentalities of the state, and issued for 
public purposes, and shall, together with interest thereon, be 
exempt from taxation.  The dividends on the stock of those 
companies shall be exempt from taxation by the state. 
    Sec. 18.  Minnesota Statutes 1982, section 462.551, is 
amended to read: 
     462.551 [BOND ISSUE FOR CORPORATE PURPOSES.] 
    An authority shall have power to issue bonds for any of its 
corporate purposes.  Such bonds may be such type as it 
determines, including, but not limited to, bonds on which the 
principal and interest are payable exclusively from the income 
and revenues of the project financed with the proceeds of such 
bonds, or exclusively from the income and revenues of certain 
designated projects, whether or not they are financed in whole 
or in part with the proceeds of such bonds.  Any such bonds may 
be additionally secured by a pledge of any grant or 
contributions from the federal government or other source, or a 
pledge of any income or revenues of the authority, from the 
project for which the proceeds of the bonds are to be used, or a 
mortgage of any project, projects, or other property of the 
authority.  No proceeds of bonds issued for or revenue 
authorized for or derived from any redevelopment project or area 
shall be used to pay the bonds or costs of, or make 
contributions or loans to, any public housing project.  Further, 
the proceeds of bonds issued for or revenues authorized for or 
derived from any one public housing project shall not be used to 
pay the bonds or costs of, or make contributions or loans to any 
other public housing project until the bonds and costs of the 
public housing project for which those bonds were issued or from 
which those revenues were derived or for which they were 
authorized shall be fully paid.  Neither the commissioners of an 
authority nor any person executing the bonds shall be liable 
personally on the bonds by reason of the issuance thereof.  The 
bonds and other obligations of an authority (and such bonds and 
obligations shall so state on their face) shall not be a debt of 
the municipality, the state or any political subdivision 
thereof, and neither the municipality nor the state or any 
political subdivision thereof shall be liable thereon, nor in 
any event shall such bonds or obligations be payable out of any 
funds or properties other than those of said authority.  The 
bonds shall not constitute an indebtedness within the meaning of 
any constitutional or statutory debt limitation or restriction.  
Bonds of an authority are declared to be issued for an essential 
public and governmental purpose and to be public 
instrumentalities and, together with interest thereon and income 
therefrom, shall be exempt from taxes.  The provisions of this 
act exempting from taxation authorities, their properties and 
their bonds and interest thereon and income therefrom, shall be 
considered additional security for the repayment of bonds and 
shall constitute, by virtue of this act and without the 
necessity of the same being restated in said the bonds, a 
contract between the bondholders and each and every one thereof, 
including all transferees of said the bonds from time to time on 
the one hand and the respective authorities issuing said the 
bonds and the state on the other.  An authority may by covenant 
confer upon the holder of such bonds such rights and remedies as 
it deems necessary or advisable, including but not limited to 
the right in the event of default to have a receiver appointed 
to take possession of and operate the project; provided, 
however, that when the obligations issued by an authority to 
assist in financing the development of a project have been 
retired and federal contributions have been discontinued, then 
the exemptions from taxes and special assessments for that 
project shall terminate.  
    Sec. 19.  Minnesota Statutes 1982, section 462A.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  The property of the agency and its income 
and operation shall be exempt from all taxation by the state or 
any of its political subdivisions and all bonds and notes of the 
agency shall be exempt from all taxation by the state or any of 
its political subdivisions.  
    Sec. 20.  Minnesota Statutes 1982, section 472.09, 
subdivision 4, is amended to read: 
    Subd. 4.  The bonds of a redevelopment agency are declared 
to be issued for an essential public and governmental purpose 
and to be public instrumentalities and, together with interest 
thereon and income therefrom, shall be exempt from taxes.  The 
provisions of these sections exempting from taxation 
redevelopment agencies, their properties and their bonds and 
interest thereon and income therefrom, shall be considered 
additional security for the repayment of bonds and shall 
constitute, by virtue of this section and without the necessity 
of the same being restated in said the bonds, a contract between 
the bondholders and each and every one thereof, including all 
transferees of said the bonds from time to time on the one hand 
and the redevelopment agencies issuing said the bonds on the 
other.  A redevelopment agency may by covenant confer upon the 
holder of such bonds such rights and remedies as it deems 
necessary or advisable, including but not limited to, the right 
in the event of default to have a receiver appointed to take 
possession of and operate the redevelopment project.  
    Sec. 21.  Minnesota Statutes 1982, section 473.436, 
subdivision 3, is amended to read: 
    Subd. 3.  [TAX EXEMPT.] Certificates of indebtedness, 
bonds, or other obligations of the commission shall be deemed 
and treated as instrumentalities of a public government agency 
and as such, together with interest thereon, exempt from 
taxation.  
    Sec. 22.  Minnesota Statutes 1982, section 473.448, is 
amended to read: 
    473.448 [COMMISSION; EXEMPTION FROM TAXATION.] 
    Notwithstanding any other provision of law to the contrary, 
the properties, moneys, and other assets of the commission, all 
revenues or other income of the commission, and all bonds, 
certificates of indebtedness, or other obligations issued by the 
commission, and the interest thereon, shall be exempt from all 
taxation, licenses, fees, or charges of any kind imposed by the 
state or by any county, municipality, political subdivision, 
taxing district, or other public agency or body of the state.  
    Sec. 23.  Minnesota Statutes 1982, section 473.545, is 
amended to read: 
    473.545 [PROPERTY EXEMPT FROM TAXATION.] 
    Any properties, real or personal, owned, leased, 
controlled, used, or occupied by the waste control commission 
for any purpose referred to in section 473.502 are declared to 
be acquired, owned, leased, controlled, used and occupied for 
public, governmental, and municipal purposes, and shall be 
exempt from taxation by the state or any political subdivision 
of the state, provided that such properties shall be subject to 
special assessments levied by a political subdivision for a 
local improvement in amounts proportionate to and not exceeding 
the special benefit received by the properties from such 
improvement.  No possible use of any such properties in any 
manner different from their use as part of the metropolitan 
disposal system at the time shall be considered in determining 
the special benefit received by such properties.  All such 
assessments shall be subject to final confirmation by the 
metropolitan council, whose determination of the benefits shall 
be conclusive upon the political subdivision levying the 
assessment.  All bonds, certificates of indebtedness or other 
obligations of the council, and the interest thereon, shall be 
exempt from taxation by the state or any political subdivision 
of the state.  
    Sec. 24.  Minnesota Statutes 1982, section 473.666, is 
amended to read: 
    473.666 [BONDS, LEGAL INVESTMENTS FOR PUBLIC FUNDS.] 
    Bonds legally issued pursuant to sections 473.601 to 
473.679 or acts amendatory thereof or supplemental thereto, may 
be purchased by the state board of investment for the permanent 
school fund, permanent university fund, swamp land fund, 
internal improvement land funds, or any other trust fund of the 
state of Minnesota, or for any other fund administered by such 
board, and shall be deemed authorized securities within the 
provisions of section 50.14, and shall be proper for the 
investment of capital, surplus, or deposits of any savings bank 
or trust company, and for the investment of funds of any 
insurance company, and for the investment of any sinking funds 
held by any public or municipal corporation, and may be pledged 
by any bank or trust company as security for the deposit of 
public moneys therein in lieu of surety bonds.  Such The bonds 
shall be deemed and treated as instrumentalities of a public 
government agency, and as such shall be exempt from taxation. 
    Sec. 25.  [REPEALER.] 
    (a) Minnesota Statutes 1982, sections 116J.89, subdivision 
7; and 462A.19, subdivision 2, are repealed.  
    (b) Minnesota Statutes 1982, section 474.12, is repealed.  
    Sec. 26.  [EFFECTIVE DATE.] 
    Sections 10 and 25, clause (a), are effective the day after 
final enactment.  The remainder of this act is effective for 
income earned after July 1, 1983 in taxable years beginning 
after December 31, 1982. 
    Approved May 20, 1983