Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 593-H.F.No. 1815 
           An act relating to taxation; property; eliminating 
          obsolete language; making technical changes; and 
          repealing obsolete provisions; amending Minnesota 
          Statutes 1982, sections 272.02, subdivisions 2, 3, and 
          5; 272.03, subdivision 2; 272.20; 272.21; 272.32; 
          272.37; 272.64; 273.05, subdivision 1; 273.061, 
          subdivision 2; 273.08; 273.1105, subdivision 5; 
          273.111, subdivisions 8 and 11; 273.115, subdivision 
          5; 273.116, subdivisions 1 and 5; 273.13, subdivisions 
          7a, 15a, and 19; 273.135, subdivision 3; 273.1391, 
          subdivision 3; 273.22; 275.02; 275.49; 275.51, 
          subdivisions 1 and 4; 360.037, subdivision 2; 373.31, 
          subdivision 2; 375.167, subdivision 1; 473F.02, 
          subdivision 3; 473H.10, subdivision 3; 475.53, 
          subdivisions 1, 3, and 5; Minnesota Statutes 1983 
          Supplement, sections 272.02, subdivision 1; 272.03, 
          subdivision 1; 273.115, subdivision 1; 273.13, 
          subdivisions 6, 7, 7d, and 14a; 273.138, subdivision 
          6; 507.235, subdivision 2; repealing Minnesota 
          Statutes 1982, sections 270.90; 272.34; 272.35; 
          272.36; 272.61; 272.62; 272.63; 272.66; 273.04; 
          273.111, subdivision 8a; 273.13, subdivision 14; 
          273.27; 273.56; 275.09; 275.091; 275.161; 275.23; 
          275.44; 275.45; 275.46; 275.47; 368.86; and 382.19. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1983 Supplement, 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 the exemption 
from the total valuation of the property as equalized by the 
commissioner of revenue assessed to the 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 cases 
where a single domestic establishment is maintained in two or 
more adjoining districts.  
    Bonds, certificates of indebtedness, 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 
are exempt from ad valorem property taxation; provided, that 
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, Except for the taxable personal property 
enumerated below, all personal property and the property 
described in section 272.03, subdivision 1, clause (c), except 
shall be exempt.  
     The following personal property shall be taxable:  
    (a) 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.;  
    (b) railroad docks and wharves which are part of the 
operating property of a railroad company as defined in section 
270.80 are not exempt;  
    (c) personal property defined in section 272.03, 
subdivision 2, clause (3);  
    (d) leasehold or other personal property interests which 
are taxed pursuant to section 272.01, subdivision 2; 273.13, 
subdivision 7b or 7d; or 273.19, subdivision 1; or any other law 
providing the property is taxable as if the lessee or user were 
the fee owner;  
    (e) property classified as class 2a property; and 
    (f) flight property as defined in section 270.071.  
    (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 chapter 297A;  
    (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) (9) 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.  The 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 the 
property from taxation.  The 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) (10) 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 legal, 
feasible, and economically practical 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.  "Wetlands" shall not include woody 
swamps containing shrubs or trees, wet meadows, meandered water, 
streams, rivers, and floodplains or river bottoms.  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) (11) 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) (12) 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, 
1982, notwithstanding the fact that the sponsoring organization 
receives funding under section 8 of the United States Housing 
Act of 1937, as amended. 
    (18) (13) 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) (14) 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. 
    (20) (15) If approved by the governing body of the 
municipality in which the property is located, a direct 
satellite broadcasting facility or fixed satellite regional or 
national program service facility, and if construction of which 
is commenced after June 30, 1983, for a period not to exceed 
five years.  When the facility no longer qualifies for 
exemption, it shall be placed on the assessment rolls as 
provided in subdivision 4.  As used in this clause,:  
     (a) a "direct satellite broadcasting facility" is a 
facility operated by a corporation licensed by the federal 
communications commission to provide direct satellite 
broadcasting services using direct broadcast satellites 
operating in the 12-ghz. band and;  
     (b) a "fixed satellite regional or national program service 
facility" is a facility operated by a corporation licensed by 
the federal communications commission to provide fixed 
satellite-transmitted regularly scheduled broadcasting services 
using satellites operating in the 6-ghz. band.  Before approving 
a tax exemption pursuant to this paragraph, the governing body 
of the municipality shall provide an opportunity to the members 
of the county board of commissioners of the county in which the 
facility is proposed to be located and the members of the school 
board of the school district in which the facility is proposed 
to be located to meet with the governing body.  The governing 
body shall present to the members of those boards its estimate 
of the fiscal impact of the proposed property tax exemption. The 
tax exemption shall not be approved by the governing body until 
the county board of commissioners has presented its written 
comment on the proposal to the governing body, or 30 days has 
passed from the date of the transmittal by the governing body to 
the board of the information on the fiscal impact, whichever 
occurs first.  
    (21) If approved by the governing body of the municipality 
in which the property is located,; and 
    (c) a facility construction of which is commercial after 
June 30, 1983, at which a licensed Minnesota manufacturer 
produces distilled spirituous liquors, liqueurs, cordials, or 
liquors designated as specialties regardless of alcoholic 
content, but not including ethyl alcohol, distilled with a 
majority of the ingredients grown or produced in Minnesota, for 
a period not to exceed five years.  
An exemption provided by paragraph (15) shall apply for a period 
not to exceed five years.  When the facility no longer qualifies 
for exemption, it shall be placed on the assessment rolls as 
provided in subdivision 4.  Before approving a tax exemption 
pursuant to this paragraph, the governing body of the 
municipality shall provide an opportunity to the members of the 
county board of commissioners of the county in which the 
facility is proposed to be located and the members of the school 
board of the school district in which the facility is proposed 
to be located to meet with the governing body.  The governing 
body shall present to the members of those boards its estimate 
of the fiscal impact of the proposed property tax exemption.  
The tax exemption shall not be approved by the governing body 
until the county board of commissioners has presented its 
written comment on the proposal to the governing body, or 30 
days has passed from the date of the transmittal by the 
governing body to the board of the information on the fiscal 
impact, whichever occurs first. 
     The exemptions granted by this subdivision shall be subject 
to the limits contained in the other subdivisions of this 
section, section 272.025, or section 273.13, subdivisions 17, 
17b, 17c, or 17d.  
    Sec. 2.  Minnesota Statutes 1982, section 272.02, 
subdivision 2, is amended to read: 
    Subd. 2.  After December 31, 1971, Property owned, leased 
or used by any public elementary or secondary school district 
for a home, residence or lodging house for any teacher, 
instructor, or administrator, and any property owned by any 
public school district which is leased after May 18, 1975 to any 
person or organization for a nonpublic purpose for one year or 
more pursuant to section 123.36, subdivision 10, shall not be 
included in the exemption provided in subdivision 1. 
    Sec. 3.  Minnesota Statutes 1982, section 272.02, 
subdivision 3, is amended to read: 
    Subd. 3.  After December 31, 1970, Property owned or leased 
by, or loaned to, a hospital and used principally by such 
hospital as a recreational or rest area for employees, 
administrators, or medical personnel shall not be included in 
the exemption provided in subdivision 1. 
     Sec. 4.  Minnesota Statutes 1982, section 272.02, 
subdivision 5, is amended to read: 
    Subd. 5.  The holding of property by a political 
subdivision of the state for later resale for economic 
development purposes shall be considered a public purpose in 
accordance with subdivision 1, clause (7) for a period not to 
exceed three years.  This subdivision shall not operate to 
create an exemption from sections section 272.01, subdivision 2; 
272.68; 273.19; or 462.575, subdivision 3; or other provision of 
law providing for the taxation of or for payments in lieu of 
taxes for publicly held property which is leased, loaned, or 
otherwise made available and used by a private person.  This 
section is effective for taxes levied in 1979 and thereafter, 
and payable in 1980 and thereafter.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
272.03, subdivision 1, is amended to read: 
    Subdivision 1.  [REAL PROPERTY.] (a) For the purposes of 
taxation, "real property" includes the land itself, rails, ties, 
and other track materials annexed to the land, and all 
buildings, structures, and improvements or other fixtures on it, 
bridges of bridge companies, and all rights and privileges 
belonging or appertaining to it the land, and all mines, 
minerals, quarries, fossils, and trees on or under it.  
    (b) A building or structure shall include the building or 
structure itself, together with all improvements or fixtures 
annexed to the building or structure, which are integrated with 
and of permanent benefit to the building or structure, 
regardless of the present use of the building, and which cannot 
be removed without substantial damage to itself or to the 
building or structure.  
    (c) (i) The term real property shall not include tools, 
implements, machinery, and equipment attached to or installed in 
real property for use in the business or production activity 
conducted thereon, regardless of size, weight or method of 
attachment.  
    (ii) The exclusion provided in clause (c) (i) shall not 
apply to machinery and equipment includable as real estate by 
clauses (a) and (b) even though such machinery and equipment is 
used in the business or production activity conducted on the 
real property if and to the extent such business or production 
activity consists of furnishing services or products to other 
buildings or structures which are subject to taxation under this 
chapter.  
    Sec. 6.  Minnesota Statutes 1982, section 272.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [PERSONAL PROPERTY.] For the purposes of 
taxation, "personal property" includes: 
    (1) All goods, chattels, money and effects; 
    (2) All ships, boats, and vessels belonging to inhabitants 
of this state and all capital invested therein; 
    (3) All improvements upon land the fee of which is vested 
in the United States, and all improvements upon land the title 
to which is vested in any corporation whose property is not 
subject to the same mode and rule of taxation as other property; 
    (4) All stock of nurserymen, growing or otherwise; 
    (5) All gas, electric, and water mains, pipes, conduits, 
subways, poles, and wires of gas, electric light, water, heat, 
or power companies, and all tracks, roads, bridges, conduits, 
poles, and wires of street railway, plank road, gravel road, and 
turnpike, and bridge companies; 
    (6) All credits over and above debts owed by the creditor; 
    (7) The income of every annuity, unless the capital of the 
annuity is taxed within this state; 
    (8) All public stocks and securities; 
    (9) All personal estate of moneyed corporations, whether 
the owners reside within or without the state; 
    (10) All shares in foreign corporations owned by residents 
of this state; and 
    (11) All shares in banks organized under the laws of the 
United States or of this state. 
    Sec. 7.  Minnesota Statutes 1982, section 272.20, is 
amended to read: 
    272.20 [GOVERNMENT AND RAILROAD LANDS BECOMING TAXABLE; 
LISTS OF LANDS REVERTING TO RAILROADS.] 
    On December 1 in each year The commissioner of revenue 
shall obtain lists of all government and railroad lands becoming 
taxable, and he shall annually compile therefrom, and from the 
records of sales of state lands, complete lists of all such 
lands; and a list of railroad operating property which is sold 
or otherwise becomes nonoperating property.  On or before 
December 15 in each year he shall certify the same lands for 
taxation to the auditors of the counties in which such lands 
lie.  At the same time he shall obtain lists of lands reverting 
to and being used as operating property by the railroad 
companies each year by reason of the forfeiture of contracts, 
and certify the same to the county auditors, who shall thereupon 
remove such lands from the tax lists; but nothing herein shall 
be construed to relieve such forfeited lands from any lien for 
taxes or assessments accruing thereon during the life of such 
contract.  The railroad companies shall report such sales and 
forfeitures to the commissioner of revenue December 1 in each 
year, and at other times when required by him.  All forfeited 
lands not so reported shall be held for all taxes accruing 
thereon.  
    Sec. 8.  Minnesota Statutes 1982, section 272.21, is 
amended to read: 
    272.21 [RAILROAD LANDS; SALE.] 
    When any a railroad company owning lands granted to it to 
aid in the building of its road and exempted by law from 
taxation until leased, contracted, or sold by such company taxed 
as railroad operating property, sells, assigns, transfers, or 
disposes of any estate, right, title, or interest therein or 
thereto in the land, such right, title, estate, or interest 
shall become taxable in the same manner as comparable property, 
and be assessed and taxed, and such taxes shall be enforced, as 
in the case of other real property.  In such assessment, and in 
the proceedings to collect and enforce such taxes, it shall be 
sufficient to refer to the owners of such estate, right, title, 
or interest as "unknown."  The purchaser at any such tax sale, 
or from the state, if bid in for the state, or his successor in 
interest, shall acquire and be subrogated to all the right, 
title, estate, or interest of the person holding the same under 
or from such company, subject to the right of redemption, as in 
other cases, and may do every act or thing which such person 
might do in order to be entitled to a perfect title or deed of 
such lands from such company.  Upon production to such company 
of the tax certificate, in case there has been no redemption 
from such tax sale, such purchaser, or his successor in 
interest, may make any payment of principal or interest due or 
to become due to such company as assignee of such person.  If 
the person entitled to redeem from such tax sale fails so to do 
within the time allowed by law and at the same time fails to pay 
to the county treasurer, for the use of the holder of such tax 
certificate, the amount of all payments of principal and 
interest by him or any prior holder made to such company on 
account of such lands, with interest thereon from the time of 
such payments at the rate of 12 percent per annum, then, upon 
filing with such company a certificate of the county auditor 
showing that no such redemption has been made, the holder of 
such tax certificate shall be entitled to receive from such 
company such deed or contract as the person whose right, title, 
estate, or interest was so sold at such tax sale originally 
received from such company, or would then be entitled to receive 
from it, with like effect, and in lieu thereof.  
    Sec. 9.  Minnesota Statutes 1982, section 272.32, is 
amended to read: 
    272.32 [ASSESSMENTS FOR LOCAL IMPROVEMENTS IN CITIES.] 
    All assessments upon real property for local improvements 
made or levied by the proper authorities of any city in the 
state shall be a paramount lien upon the land upon which they 
are imposed from the date of the warrant issued for the 
collection thereof, or from such other date as by the charter of 
any such city such assessments become a lien upon the land, and 
of equal rank with the lien of the state for taxes which have 
been or may be levied upon the property under the general laws 
of the state; and the general rules of law as to priority of tax 
liens shall apply equally to the liens of such assessments and 
to such liens for general taxes with the same force and effect 
as though all of these liens and all of these taxes and 
assessments were of the same general character and imposed for 
the same purpose and by the same authority, without regard to 
the priority in point of time of the attaching of either of 
these liens, and a sale or perfecting title under either shall 
not bar or extinguish the other.  This section shall be 
applicable to any city existing under a charter framed and 
adopted under the Constitution of the State of Minnesota, 
Article 4, Section 36 prior to November 18, 1958.  
    Sec. 10.  Minnesota Statutes 1982, section 272.37, is 
amended to read: 
    272.37 [APPLICATION.] 
    Sections 272.33 to 272.37 shall also apply to cities having 
home rule charters adopted pursuant to the Constitution of the 
State of Minnesota, Article 4, Section 36, prior to November 18, 
1958 and now or hereafter having a population of over 50,000 at 
any time after January 1, 1913.  
    Sec. 11.  Minnesota Statutes 1982, section 272.64, is 
amended to read: 
    272.64 [BONDED INDEBTEDNESS, INCREASE IN COUNTIES WITHOUT 
PERSONAL PROPERTY TAX MILL RATE LIMITS; HOUSEHOLD PROPERTY 
ADJUSTMENT.] 
    Any county which has elected to exempt class 2 property or 
Any taxing district which lies within such county shall be 
allowed to increase its bonded indebtedness or the mill rate 
limitations otherwise imposed by statute in the ratio that its 
taxable class 2 property bears to all of its taxable property 
determined as of the date of the last assessment of class 2 
property.  
    Sec. 12.  Minnesota Statutes 1982, section 273.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPOINTMENT OF TOWN AND CITY ASSESSORS.] 
Notwithstanding any other provision of law all town assessors 
shall be appointed by the town board, and notwithstanding any 
charter provisions to the contrary, all city assessors shall be 
appointed by the city council or other appointing authority as 
provided by law or charter.  Such assessors shall be residents 
of the state but need not be a resident of the town or city for 
which they are appointed.  They shall be selected and appointed 
because of their knowledge and training in the field of property 
taxation.  The term of all town and statutory city assessors 
shall expire on December 31, 1968.  Thereafter All town and 
statutory city assessors shall be appointed for indefinite 
terms.  Vacancies in the office of town or city assessor shall 
be filled within 90 days by appointment of the respective 
appointing authority indicated above.  If the vacancy is not 
filled within 90 days, the office shall be terminated.  When a 
vacancy in the office of town or city assessor is not filled by 
appointment, and it is imperative that the office of assessor be 
filled, the county auditor shall appoint some resident of the 
county as assessor for such town or city.  The county auditor 
may appoint the county assessor as assessor for such town or 
city, in which case the town or city shall pay to the county 
treasurer the amount determined by the county auditor to be due 
for the services performed and expenses incurred by the county 
assessor in acting as assessor for such town or city.  The term 
of any town or statutory city assessor in a county electing in 
accordance with section 273.052 shall be terminated as provided 
in section 273.055. 
    Sec. 13.  Minnesota Statutes 1982, section 273.061, 
subdivision 2, is amended to read: 
    Subd. 2.  [TERM; VACANCY.] (a) The terms of county 
assessors appointed under this section shall commence January 1, 
1967, and shall expire December 31, 1970.  The next term shall 
begin January 1, 1971, and end December 31, 1972.  The 
succeeding terms shall be four years.  A new term shall begin on 
January 1 of every fourth year after 1973.  When any vacancy in 
the office occurs, the board of county commissioners, within 30 
days thereafter, shall fill the same by appointment for the 
remainder of the term, following the procedure prescribed in 
subdivision 1.  The term of the county assessor may be 
terminated by the board of county commissioners at any time, on 
charges of inefficiency or neglect of his duty by the 
commissioner of revenue.  If the board of county commissioners 
does not intend to reappoint a county assessor who has been 
certified by the state board of assessors, the board shall 
present written notice to the county assessor not later than 90 
days prior to the termination of his term, that it does not 
intend to reappoint him.  If written notice is not timely made 
to the county assessor, he will automatically be reappointed by 
the board of county commissioners. 
    (b) In the event of a vacancy in the office of county 
assessor, through death, resignation or other reasons, the 
deputy (or chief deputy, if more than one) shall perform the 
functions of the office.  If there is no deputy, the county 
auditor shall designate a person to perform the duties of the 
office until an appointment is made as provided in clause (a).  
Such person shall perform the duties of the office for a period 
not exceeding 30 days during which the county board must appoint 
a county assessor.  Such 30-day period may, however, be extended 
by written approval of the commissioner of revenue. 
    Sec. 14.  Minnesota Statutes 1982, section 273.08, is 
amended to read: 
    273.08 [ASSESSOR'S DUTIES.] 
    The assessor shall perform his duties in the manner 
following.  In 1976 and thereafter, he shall actually view, and 
determine the market value of each tract or lot of real property 
listed for taxation, including the value of all improvements and 
structures thereon, opposite each description at maximum 
intervals of four years and shall enter the value thereof 
according to the provisions of Laws 1975, Chapter 437, Article 8 
opposite each description. 
    Sec. 15.  Minnesota Statutes 1982, section 273.1105, 
subdivision 5, is amended to read: 
    Subd. 5.  This section is effective for taxes levied in 
1978 and thereafter, payable in 1979 and thereafter, and shall 
expire for taxes levied in 1983, payable in 1984 and thereafter; 
provided that any project approved prior to the expiration of 
this section shall continue to receive treatment pursuant to 
subdivision 1 until the end of the fifth year following the 
rehabilitation year.  This section is repealed effective for 
taxes payable in 1989 and thereafter.  
    Sec. 16.  Minnesota Statutes 1982, section 273.111, 
subdivision 8, is amended to read: 
    Subd. 8.  Application for deferment of taxes and assessment 
under this section shall be filed in the year 1969 by July 1 and 
thereafter by May 1 of the year prior to the year in which said 
the taxes became are payable.  Any application filed hereunder 
and granted shall continue in effect for subsequent years until 
the property no longer qualifies.  Such application shall be 
filed with the assessor of the taxing district in which the real 
property is located on such form as may be prescribed by the 
commissioner of revenue.  The assessor may require proof by 
affidavit or otherwise that the property qualifies under 
subdivisions 3 and 6. 
    Sec. 17.  Minnesota Statutes 1982, section 273.111, 
subdivision 11, is amended to read: 
    Subd. 11.  The payment of special local assessments levied 
after the date of Extra Session Laws 1967, Chapter 60, June 1, 
1967 for improvements made to any real property described in 
subdivision 3 together with the interest thereon shall, on 
timely application as provided in subdivision 8, be deferred as 
long as such property meets the conditions contained in 
subdivisions 3 and 6.  If special assessments against the 
property have been deferred pursuant to this subdivision, the 
governmental unit shall file with the county recorder in the 
county in which the property is located a certificate containing 
the legal description of the affected property and of the amount 
deferred.  When such property no longer qualifies under 
subdivisions 3 and 6, all deferred special assessments plus 
interest shall be payable within 90 days.  Penalty shall not be 
levied on any such special assessments if timely paid.  If not 
paid within such 90 days, the county auditor shall include such 
deferred special assessments plus a ten percent penalty on the 
tax list for the current year. 
    Sec. 18.  Minnesota Statutes 1983 Supplement, section 
273.115, subdivision 1, is amended to read: 
    Subdivision 1.  The county auditor shall annually reduce 
the tax liability of each owner of wetlands exempt from property 
taxation pursuant to section 272.02, subdivision 1, clause (15) 
(10), by an amount equal to one-half of one percent of the 
average level of estimated market value of an acre of tillable 
land in the township, city or unorganized territory in which the 
qualifying wetland is located, multiplied by the number of acres 
of wetlands he owns.  Any excess of credit over tax liability 
shall not be paid to the property owner but shall be applied to 
the tax liability of the owner of the wetlands for any parcel he 
owns which is contiguous to the parcel containing the wetlands. 
    Sec. 19.  Minnesota Statutes 1982, section 273.115, 
subdivision 5, is amended to read: 
    Subd. 5.  In order to receive the wetlands credit provided 
in this section, an owner of wetlands shall agree not to drain 
the wetlands during the year for which he receives the credit.  
To initially qualify for the credit for taxes levied in 1980, 
payable in 1981, the agreement shall be made by June 30, 1980; 
to initially qualify for the credit for taxes levied subsequent 
to 1980, the agreement shall be made by a date to be set by the 
county board.  After initial qualification, an owner of wetlands 
shall not be required to reapply to receive the credit for 
subsequent years.  The agreement shall remain in effect until 
the wetlands are drained.  The credit shall not be available (a) 
for any year prior to which a timely agreement has been made or 
(b) for any year in which the owner drains the wetlands.  The 
local assessor shall certify that each land owner receiving the 
credit has so agreed. 
    Sec. 20.  Minnesota Statutes 1982, section 273.116, 
subdivision 1, is amended to read: 
    Subdivision 1.  The county auditor shall annually reduce 
the tax liability of each owner of native prairie exempt from 
property taxation pursuant to section 272.02, subdivision 1, 
clause (16) (11), by an amount equal to 1-1/2 percent of the 
average level of estimated market value of an acre of tillable 
land in the township, city or unorganized territory in which the 
qualifying native prairie is located, multiplied by the number 
of acres of native prairie he owns.  Any excess of credit over 
tax liability shall not be paid to the property owner but shall 
be applied to the tax liability of the owner of the native 
prairie for any parcel he owns which is contiguous to the parcel 
containing the native prairie or if the owner of the native 
prairie does not own any contiguous parcel to which the credit 
can be applied, the credit shall be applied to his tax liability 
for any parcel he owns which is located in the same township or 
city or not farther than two townships or cities or combination 
thereof from the native prairie. 
    Sec. 21.  Minnesota Statutes 1982, section 273.116, 
subdivision 5, is amended to read: 
    Subd. 5.  In order to receive the native prairie credit 
provided in this section, an owner of native prairie shall agree 
to preserve the prairie in its natural state during the year for 
which he receives the credit.  To initially qualify for the 
credit for taxes levied in 1980, payable in 1981, the agreement 
shall be made by June 30, 1980; to initially qualify for the 
credit for taxes levied subsequent to 1980, the agreement shall 
be made by a date to be set by the county board.  After initial 
qualification, an owner of native prairie shall not be required 
to reapply to receive the credit for subsequent years.  The 
agreement shall remain in effect until the native prairie is no 
longer maintained in its natural state.  The credit shall not be 
available (a) for any year prior to which a timely agreement has 
been made or (b) for any year in which the owner ceases to 
maintain the native prairie in its natural state.  The local 
assessor shall certify that each land owner receiving the credit 
has so agreed.  
    Sec. 22.  Minnesota Statutes 1983 Supplement, section 
273.13, subdivision 6, is amended to read: 
    Subd. 6.  [CLASS 3B.] Agricultural land, except as provided 
by class 1 hereof, and which is used for the purposes of a 
homestead shall constitute class 3b and shall be valued and 
assessed as follows:  the first $60,000 of market value shall be 
valued and assessed at 14 percent; the remaining market value 
shall be valued and assessed at 19 percent.  The maximum amount 
of the market value of the homestead bracket subject to the 14 
percent rate shall be adjusted by the commissioner of revenue as 
provided in section 273.1311.  The property tax to be paid on 
class 3b property as otherwise determined by law less any 
reduction received pursuant to sections 124.2137, 273.123, 
273.135, and 473H.10 shall be reduced by 54 percent of the tax; 
provided that.  The amount of the reduction shall not exceed 
$650.  Noncontiguous land shall constitute class 3b only if the 
homestead is classified as class 3b and the detached land is 
located in the same township or city or not farther than two 
townships or cities or combination thereof from the homestead.  
The first $12,000 market value of each tract of real estate 
which is rural in character and devoted or adaptable to rural 
but not necessarily agricultural use, used for the purpose of a 
homestead shall be exempt from taxation for state purposes; 
except as specifically provided otherwise by law.  
    Agricultural land as used herein, and in section 124.2137, 
shall mean contiguous acreage of ten acres or more, primarily 
used during the preceding year for agricultural purposes.  
Agricultural use may include pasture, timber, waste, unusable 
wild land and land included in federal farm programs. 
    Real estate of less than ten acres used principally for 
raising poultry, livestock, fruit, vegetables or other 
agricultural products, shall be considered as agricultural land, 
if it is not used primarily for residential purposes. 
    The assessor shall determine and list separately on his 
records the market value of the homestead dwelling and the one 
acre of land on which that dwelling is located.  If any farm 
buildings or structures are located on this homesteaded acre of 
land, their market value shall not be included in this separate 
determination. 
    Sec. 23.  Minnesota Statutes 1983 Supplement, section 
273.13, subdivision 7, is amended to read: 
    Subd. 7.  [CLASS 3C, 3CC.] All other real estate and class 
2a property, except as provided by classes 1 and 3cc, which is 
used for the purposes of a homestead, shall constitute class 3c, 
and shall be valued and assessed as follows:  the first $30,000 
of market value shall be valued and assessed at 17 percent; the 
next $30,000 of market value shall be valued and assessed at 19 
percent; and the remaining market value shall be valued and 
assessed at 30 percent.  The maximum amounts of the market value 
of the homestead brackets subject to the 17 percent and 19 
percent rates shall be adjusted by the commissioner of revenue 
as provided in section 273.1311.  The property tax to be paid on 
class 3c property as otherwise determined by law, less any 
reduction received pursuant to sections 273.123, 273.135, and 
473H.10 shall be reduced by 54 percent of the tax imposed on the 
first $67,000 of market value; provided that.  The amount of the 
reduction shall not exceed $650.  The first $12,000 market value 
of each tract of such real estate used for the purposes of a 
homestead shall be exempt from taxation for state purposes; 
except as specifically provided otherwise by law.  
    Class 3cc property shall include real estate or 
manufactured homes used for the purposes of a homestead by (a) 
any blind person, if the blind person is the owner thereof or if 
the blind person and his or her spouse are the sole owners 
thereof; or (b) any person (hereinafter referred to as veteran) 
who:  (1) served in the active military or naval service of the 
United States and (2) is entitled to compensation under the laws 
and regulations of the United States for permanent and total 
service-connected disability due to the loss, or loss of use, by 
reason of amputation, ankylosis, progressive muscular 
dystrophies, or paralysis, of both lower extremities, such as to 
preclude motion without the aid of braces, crutches, canes, or a 
wheelchair, and (3) with assistance by the administration of 
veterans affairs has acquired a special housing unit with 
special fixtures or movable facilities made necessary by the 
nature of the veteran's disability, or the surviving spouse of 
the deceased veteran for as long as the surviving spouse retains 
the special housing unit as his or her homestead; or (c) any 
person who:  (1) is permanently and totally disabled and (2) 
receives 90 percent or more of his total income from (i) aid 
from any state as a result of that disability, or (ii) 
supplemental security income for the disabled, or (iii) workers' 
compensation based on a finding of total and permanent 
disability, or (iv) social security disability, including the 
amount of a disability insurance benefit which is converted to 
an old age insurance benefit and any subsequent cost of living 
increases, or (v) aid under the Federal Railroad Retirement Act 
of 1937, 45 United States Code Annotated, section 228b(a)5, or 
(vi) a pension from any local government retirement fund located 
in the state of Minnesota as a result of that disability.  
Property shall be classified and assessed as class 3cc only if 
the commissioner of revenue certifies to the assessor that the 
owner of the property satisfies the requirements of this 
subdivision.  Class 3cc property shall be valued and assessed as 
follows:  in the case of agricultural land, including a 
manufactured home, used for a homestead, the first $30,000 of 
market value shall be valued and assessed at five percent, the 
next $30,000 of market value shall be valued and assessed at 14 
percent, and the remaining market value shall be valued and 
assessed at 19 percent; and in the case of all other real estate 
and manufactured homes, the first $30,000 of market value shall 
be valued and assessed at five percent, the next $30,000 of 
market value shall be valued and assessed at 19 percent, and the 
remaining market value shall be valued and assessed at 30 
percent.  In the case of agricultural land including a 
manufactured home used for purposes of a homestead, the 
commissioner of revenue shall adjust, as provided in section 
273.1311, the maximum amount of the market value of the 
homestead brackets subject to the five percent and 14 percent 
rates; and for all other real estate and manufactured homes, the 
commissioner of revenue shall adjust, as provided in section 
273.1311, the maximum amount of the market value of the 
homestead brackets subject to the five percent and 19 percent 
rates.  Permanently and totally disabled for the purpose of this 
subdivision means a condition which is permanent in nature and 
totally incapacitates the person from working at an occupation 
which brings him an income.  The property tax to be paid on 
class 3cc property as otherwise determined by law, less any 
reduction received pursuant to section 273.135 shall be reduced 
by 54 percent of the tax imposed on the first $67,000 of market 
value; provided that.  The amount of the reduction shall not 
exceed $650. 
    For purposes of this subdivision, homestead property which 
qualifies for the classification ratios and credits provided in 
this subdivision shall include property which is used for 
purposes of the homestead but is separated from the homestead by 
a road, street, lot, waterway, or other similar intervening 
property.  The term "used for purposes of the homestead" shall 
include but not be limited to uses for gardens, garages, or 
other outbuildings commonly associated with a homestead, but 
shall not include vacant land held primarily for future 
development.  In order to receive homestead treatment for the 
noncontiguous property, the owner shall apply for it to the 
assessor by July 1 of 1983 or the year when the treatment is 
initially sought.  After initial qualification for the homestead 
treatment, additional applications for subsequent years are not 
required.  
    Sec. 24.  Minnesota Statutes 1982, section 273.13, 
subdivision 7a, is amended to read: 
    Subd. 7a.  [PERCENTAGE OF MARKET VALUE.] Except as 
otherwise provided for the purpose of determining salaries of 
all officials based on assessed valuations and of determining 
tax limitations now established by statute or by charter, class 
3b and class 3c property shall be figured at 33 1/3 percent and 
40 percent of the market value thereof, respectively. 
    Sec. 25.  Minnesota Statutes 1983 Supplement, section 
273.13, subdivision 7d, is amended to read: 
    Subd. 7d.  [LEASED HOMESTEAD PROPERTY.] Class 3g consists 
of all buildings and appurtenances located upon land owned by 
the occupant and used for the purposes of a homestead together 
with the land upon which they are located.  Class 3g property 
shall be valued and assessed as if it were homestead property 
within the scope of class 3c or 3cc, whichever is applicable, if 
all of the following criteria are met:  
    (a) the occupant is using such property as his permanent 
residence; and 
    (b) the occupant is paying the ad valorem property taxes 
and any special assessments levied against such property; and 
    (c) the occupant has signed a lease which has an option to 
purchase the buildings and appurtenances; and 
    (d) the term of the lease is at least five years.  
    Any taxpayer meeting all the requirements herein must 
notify the county assessor, or the assessor who has the powers 
of the county assessor pursuant to section 273.063, in writing, 
prior to September 1, 1981 and in future years, as soon as 
possible after signing the lease agreement and occupying the 
buildings as his homestead.  
    Sec. 26.  Minnesota Statutes 1983 Supplement, section 
273.13, subdivision 14a, is amended to read: 
    Subd. 14a.  [BUILDINGS AND APPURTENANCES ON LAND NOT OWNED 
BY OCCUPANT.] The property tax to be paid in respect of the 
value of all buildings and appurtenances thereto owned and used 
by the occupant as a permanent residence for the purposes of a 
homestead, which are located upon land subject to property taxes 
and the title to which is vested in a person or entity other 
than the occupant, for all purposes shall be reduced by 54 
percent of the amount of the tax in respect of the value not in 
excess of $67,000 as otherwise determined by law, but not by 
more than $650.  
    Sec. 27.  Minnesota Statutes 1982, section 273.13, 
subdivision 15a, is amended to read: 
    Subd. 15a.  [GENERAL FUND, REPLACEMENT OF REVENUE.] (1) 
Payment from the general fund shall be made, as provided herein, 
for the purpose of replacing revenue lost as a result of the 
reduction of property taxes provided in subdivisions 6, 7, and 
14a. 
    (2) Each county auditor shall certify, not later than May 1 
of each year commencing in 1968 to the commissioner of revenue 
the amount of reduction resulting from subdivisions 6 and, 7, 
and 14a in his county, and not later than May 1 of each year 
commencing in 1970, the amount of reduction resulting from 
subdivision 14a.  In 1975 and subsequent years, This 
certification shall be submitted to the commissioner of revenue 
as part of the abstracts of tax lists required to be filed with 
the commissioner under the provisions of section 275.29.  Any 
prior year adjustments shall also be certified in the abstracts 
of tax lists.  The commissioner of revenue shall review such 
certifications to determine their accuracy.  He may make such 
changes in the certification as he may deem necessary or return 
a certification to the county auditor for corrections. 
    (3) Based on current year tax data reported in the 
abstracts of tax lists, the commissioner of revenue shall 
annually determine the taxing district distribution of the 
amounts certified under clause (2).  On or before July 15, 1981, 
and each year thereafter, The commissioner of revenue shall pay 
to each taxing district, other than school districts, one-sixth 
of its total payment for the year.  The remaining five-sixths 
shall be paid in equal installments on or before July 15, August 
15, September 15, October 15, November 15, and December 15, 
1981, and of each year thereafter.  By July 15, 1982, and each 
year thereafter, the commissioner of revenue shall pay to each 
school district one-half of its total payment for the year.  The 
remaining one-half shall be paid by January 15, 1983, and each 
year thereafter.  
    Sec. 28.  Minnesota Statutes 1982, section 273.13, 
subdivision 19, is amended to read: 
    Subd. 19.  [CLASS 3D, 3DD.] Residential real estate 
containing four or more units, other than seasonal residential, 
recreational and homesteads shall be classified as class 3d 
property and shall have a taxable value equal to 36 percent of 
market value for taxes levied in 1981 and 34 percent of market 
value for taxes levied in 1982 and thereafter.  Residential real 
estate containing three or less units, other than seasonal 
residential, recreational and homesteads, shall be classified as 
class 3dd property and shall have a taxable value equal to 28 
percent of market value. 
    Residential real estate as used in this subdivision means 
real property used or held for use by the owner thereof, or by 
his tenants or lessees as a residence for rental periods of 30 
days or more, but shall not include homesteads, or real estate 
devoted to temporary or seasonal residential occupancy for 
recreational purposes.  Where a portion of a parcel of property 
qualified for class 3d or 3dd and a portion does not qualify for 
class 3d or 3dd the valuation shall be apportioned according to 
the respective uses. 
    Residential real estate containing less than three units 
when entitled to homestead classification for one or more units 
shall be classed as 3b, 3c or 3cc according to the provisions of 
subdivisions 6 and 7. 
    Sec. 29.  Minnesota Statutes 1982, section 273.135, 
subdivision 3, is amended to read: 
    Subd. 3.  Not later than December 1 of each year, 
commencing in 1973, each county auditor having jurisdiction over 
one or more tax relief areas shall certify to the commissioner 
of revenue his estimate of the total amount of the reduction, 
determined under subdivision 2, in taxes payable the next 
succeeding year with respect to all tax relief areas in his 
county. 
    Sec. 30.  Minnesota Statutes 1983 Supplement, section 
273.138, subdivision 6, is amended to read: 
    Subd. 6.  The amount of aid calculated for a school 
district pursuant to subdivision 3, clauses (2), (3), (4), 
and (5) and (6) shall be deducted from the school district's 
maintenance levy limitation established pursuant to section 
275.125, subdivision 2a, in determining the amount of taxes the 
school district may levy for general and special purposes. 
    Sec. 31.  Minnesota Statutes 1982, section 273.1391, 
subdivision 3, is amended to read: 
    Subd. 3.  Not later than December 1 of each year, 
commencing in 1980, each county auditor having jurisdiction over 
one or more tax relief areas defined in subdivision 2 shall 
certify to the commissioner of revenue his estimate of the total 
amount of the reduction, determined under subdivision 2, in 
taxes payable the next succeeding year with respect to all tax 
relief areas in his county.  
    Sec. 32.  Minnesota Statutes 1982, section 273.22, is 
amended to read: 
    273.22 [PERSONAL PROPERTY LISTED.] 
    Personal property shall be listed in the manner following: 
    (1) Every person of full age and sound mind, being a 
resident of this state, shall list all his money, credits, 
bonds, shares of stock of joint stock or other companies or 
corporations (when the property of such company or corporation 
is not assessed in this state), moneys loaned or invested, 
annuities, franchises, royalties, and other taxable personal 
property; 
    (2) He shall also list separately, and in the name of his 
principal its owner, all money and other taxable personal 
property invested, loaned, or otherwise controlled by him as the 
agent, trustee, guardian, receiver, or attorney for, or on 
account of, any other person, estate, trust company, or 
corporation, and all moneys deposited subject to his order, 
check, or draft, and credits due from or owing by any person, 
company, or corporation;  
    (3) The property of a minor child or insane person shall be 
listed by his guardian, or by the person having such property in 
charge;  
    (4) The property of a person for whose benefit it is held 
in trust, by the trustee; of the estate of a deceased person, by 
the executor or administrator;  
    (5) The property of a corporation whose assets are in the 
hands of a receiver, by such receiver;  
    (6) The property of a body politic or corporate, by the 
proper agent or officer thereof;  
    (7) The property of a firm or company, by a partner or 
agent thereof;  
    (8) The property of manufacturers and others in the hands 
of an agent, by such agent in the name of his principal, as 
merchandise.  
    Sec. 33.  Minnesota Statutes 1982, section 275.02, is 
amended to read: 
    275.02 [LEGISLATIVE STATE LEVY, EXCEPTIONS; CERTIFICATION 
OF TAX RATE.] 
    The state tax shall be levied by the legislature on all 
taxable property in the state, except class 2 property as 
defined in section 273.13 and.  The rate of such the tax shall 
be certified by the state auditor to each county auditor on or 
before November 15 annually.  
    Sec. 34.  Minnesota Statutes 1982, section 275.49, is 
amended to read: 
    275.49 [COMPUTATIONS TIED TO TAX VALUATION.] 
    For the purpose of computing the amount or rate of any 
salary, aid, tax, or debt authorized, required, or limited by 
any provision of any law or charter, where such authorization, 
requirement, or limitation is related in any manner to any value 
or valuation of taxable property within the state or within any 
of its taxing districts, such property shall include all 
property of any class exempted from taxation by Extra Session 
Laws 1967, chapter 32 at its value or valuation in 1966 as 
determined in accordance with law.  
    Sec. 35.  Minnesota Statutes 1982, section 275.51, 
subdivision 1, is amended to read: 
    Subdivision 1.  Notwithstanding any provisions of law or 
municipal charter to the contrary which authorize ad valorem 
levies in excess of the limitations established by sections 
275.50 to 275.56, but subject to section 275.56, the provisions 
of this section shall apply to the levies by governmental 
subdivisions for the taxes payable year 1983 and subsequent 
years for all purposes other than those for which special levies 
and special assessments are made.  
    Sec. 36.  Minnesota Statutes 1982, section 275.51, 
subdivision 4, is amended to read: 
    Subd. 4.  If in any year subsequent to 1973 the levy made 
by a governmental subdivision exceeds the limitation provided in 
sections 275.50 to 275.56, except when such excess levy is due 
to the rounding of the mill rates of the governmental 
subdivision in accordance with section 275.28, subsequent 
distributions required to be made by the commissioner of finance 
from any formula aids pursuant to sections 477A.011 to 477A.014, 
shall be reduced 33 cents for each full dollar the levy exceeds 
the limitation.  
    Sec. 37.  Minnesota Statutes 1982, section 360.037, 
subdivision 2, is amended to read: 
    Subd. 2.  [IN EXCESS OF TAX LIMITATION.] Irrespective of 
any limitation, by general or special law or charter, as to the 
amount or total of taxes that may be levied, a municipality may 
levy taxes for the purposes authorized by sections 360.011 to 
360.076, in excess of such limitations, in such amount as may be 
authorized by an ordinance or resolution referred to and 
approved by the voters of such municipality by popular vote; 
provided, such levies shall be within the limits fixed by 
sections section 275.11, 275.32, and 275.44. 
    Sec. 38.  Minnesota Statutes 1982, section 373.31, 
subdivision 2, is amended to read: 
    Subd. 2.  Notwithstanding the provisions and limitations of 
section 275.09, and any other law, the county board of any 
county may appropriate from the general revenue fund a sum not 
to exceed one-thirtieth of a mill on the dollar of the taxable 
valuation of the county for carrying out the purposes of this 
section.  
    Sec. 39.  Minnesota Statutes 1982, section 375.167, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPROPRIATIONS.] Notwithstanding the 
provisions and limitations of section 275.09, and any other law 
to the contrary, the county board of any county may appropriate 
from the general revenue fund to any nonprofit corporation a sum 
not to exceed one-fourth of a mill on the dollar of the taxable 
valuation of the county for the purpose of providing legal 
assistance to persons who are unable to afford private legal 
counsel.  This levy shall be subject to the levy limits 
established by sections 275.50 to 275.59. 
    Sec. 40.  Minnesota Statutes 1982, section 473F.02, 
subdivision 3, is amended to read: 
    Subd. 3.  "Commercial-industrial property" means the 
following categories of property, as defined in section 273.13, 
excluding that portion of such property (a) which may, by law, 
constitute the tax base for a tax increment pledged pursuant to 
sections section 462.585 or 474.10, certification of which was 
requested prior to August 1, 1979, to the extent and while such 
tax increment is so pledged; (b) which may, by law, constitute 
the tax base for tax revenues set aside and paid over for credit 
to a sinking fund pursuant to direction of the city council in 
accordance with Laws 1963, chapter 881, as amended, to the 
extent that such revenues are so treated in any year; or (c) 
which is exempt from taxation pursuant to section 272.02:  
    (a) That portion of class 3 property consisting of stocks 
of merchandise and furniture and fixtures used therewith; 
manufacturers' materials and manufactured articles; and tools, 
implements and machinery, whether fixtures or otherwise.  
    (b) Class 3h property.  
    (c) Class 3j property.  
    (d) That portion of class 4 property which is either used 
or zoned for use for any commercial or industrial purpose, 
except for such property which is, or, in the case of property 
under construction, will when completed be used exclusively for 
residential occupancy and the provision of services to 
residential occupants thereof.  Property shall be considered as 
used exclusively for residential occupancy only if each of not 
less than 80 percent of its occupied residential units is, or, 
in the case of property under construction, will when completed 
be occupied under an oral or written agreement for occupancy 
over a continuous period of not less than 30 days.  
    If the classification of property prescribed by section 
273.13 is modified by legislative amendment, the references in 
this subdivision shall be to such successor class or classes of 
property, or portions thereof, as embrace the kinds of property 
designated in this subdivision.  
    (e) That property valued and assessed under section 273.13, 
subdivision 14.  
    Sec. 41.  Minnesota Statutes 1982, section 473H.10, 
subdivision 3, is amended to read: 
    Subd. 3.  (a) After the assessor has determined the market 
value of all land valued according to subdivision 2, he shall 
compute the assessed value of those properties by applying the 
appropriate classification percentages.  When the county auditor 
computes the rate of tax pursuant to section 275.09 275.08, he 
shall include the assessed value of land as provided in this 
clause.  
    (b) The county auditor shall compute the tax on lands 
valued according to subdivision 2 and nonresidential buildings 
by multiplying the assessed value times the total rate of tax 
for all purposes as provided in clause (a).  
    (c) The county auditor shall then compute the maximum ad 
valorem property tax on lands valued according to subdivision 2 
and nonresidential buildings by multiplying the assessed value 
times 105 percent of the previous year's statewide average mill 
rate levied on property located within townships for all 
purposes.  
    (d) The tax due and payable by the owner of preserve land 
valued according to subdivision 2 and nonresidential buildings 
will be the amount determined in clause (b) or (c), whichever is 
less.  If the gross tax in clause (c) is less than the gross tax 
in clause (b), the state shall reimburse the taxing 
jurisdictions for the amount of difference.  Residential 
buildings shall continue to be valued and classified according 
to the provisions of sections 273.11 and 273.13, as they would 
be in the absence of this section, and the tax on those 
buildings shall not be subject to the limitation contained in 
this clause.  
    The county auditor shall certify to the commissioner of 
revenue on or before June 1, 1983, and each year thereafter, the 
total amount of tax lost to the taxing jurisdictions located 
within his county as a result of this subdivision.  Payments 
shall be made by the state annually on or before July 15, 1983 
and each year thereafter to each of the affected taxing 
jurisdictions.  There is annually appropriated from the general 
fund in the state treasury to the commissioner of revenue an 
amount sufficient to make the reimbursement provided in this 
subdivision.  This section shall be effective for taxes levied 
in 1982, payable in 1983 and thereafter.  
    Sec. 42.  Minnesota Statutes 1982, section 475.53, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERALLY.] Except as otherwise provided 
in sections 475.51 to 475.75, no municipality, except a school 
district or a city of the first class, shall incur or be subject 
to a net debt in excess of 6 2/3 7-1/3 percent of the assessed 
value.  
    Sec. 43.  Minnesota Statutes 1982, section 475.53, 
subdivision 3, is amended to read: 
    Subd. 3.  [CITIES FIRST CLASS.] Unless its charter permits 
a greater net debt a city of the first class may not incur a net 
debt in excess of 1 2/3 two percent of the market value of all 
taxable property therein.  If the charter of the city permits a 
net debt of the city in excess of 1 2/3 two percent of its 
valuation, it may not incur a net debt in excess of 3 1/3 3-2/3 
percent of the market value of the taxable property therein.  
    The county auditor, at the time of preparing the tax list 
of the city, shall compile a statement setting forth the total 
assessed value and the total market value of each class of 
taxable property in such city for such year.  
    Sec. 44.  Minnesota Statutes 1982, section 475.53, 
subdivision 5, is amended to read: 
    Subd. 5.  [CERTAIN INDEPENDENT SCHOOL DISTRICTS.] No 
independent school district located wholly or partly within a 
city of the first class shall issue any obligations unless first 
authorized by a two-thirds vote of the governing body of such 
city.  No such school district shall issue obligations running 
more than two years, whenever the aggregate of the outstanding 
obligations of the district equals or exceeds 2 1/2 2-3/4 
percent of the assessed value of the taxable property within the 
school district.  
    Sec. 45.  Minnesota Statutes 1983 Supplement, section 
507.235, subdivision 2, is amended to read: 
    Subd. 2.  [PENALTY FOR FAILURE TO FILE.] If a contract for 
deed is not filed as required by the county board adopted 
pursuant to subdivision 1, a penalty is imposed equal to 0.15 
percent of the principal amount of the contract debt.  Payments 
of the penalty shall be deposited in the general fund of the 
county.  The penalty shall be a lien against the property and 
shall have the same priority and be collected in the same manner 
provided for real property taxes.  
    Sec. 46.  [REPEALER.] 
    Minnesota Statutes 1982, sections 270.90; 272.34; 272.35; 
272.36; 272.61; 272.62; 272.63; 272.66; 273.04; 273.111, 
subdivision 8a; 273.13, subdivision 14; 273.27; 273.56; 275.09; 
275.091; 275.161; 275.23; 275.44; 275.45; 275.46; 275.47; 
368.86; and 382.19, are repealed.  
    Sec. 47.  [EFFECTIVE DATE.] 
    Section 45 is effective the day following final enactment. 
The remainder of the act is effective for property taxes levied 
in 1984, payable in 1985, and for bonds issued after December 
31, 1984. 
    Approved April 26, 1984