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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1985 

                        CHAPTER 300-S.F.No. 472 
           An act relating to taxation; modifying certain 
          procedures relating to taxpayer appeals; requiring 
          apportionment of levies in specific situations; 
          clarifying the calculation of property tax credits; 
          clarifying the tax treatment of certain pipelines; 
          modifying provisions relating to the payment of 
          property taxes; providing for the recording of state 
          deeds; modifying the deed stamp tax procedure; 
          clarifying the computation of gross earnings tax for 
          taconite railroads; clarifying labor credit provisions;
          modifying the taconite production tax distribution; 
          reducing occupation and royalty tax rates for certain 
          ore; clarifying process of taconite aid guarantee 
          phase out; requiring payment of current taxes before 
          conveyance of registered land; allowing for 
          memorializing of state deeds on certificates of title; 
          clarifying cancellation of contract for deed 
          provisions; clarifying the tax exempt status of 
          certain property used in connection with a public 
          airport; amending Minnesota Statutes 1984, sections 
          270.076, subdivision 2; 270.11, subdivision 7; 270.12, 
          subdivision 3; 272.02, subdivision 1; 273.l23, 
          subdivision 5; 273.13, subdivision 4; 273.138, 
          subdivision 5; 273.19, subdivision 1; 273.33, 
          subdivisions 1 and 2; 279.01, subdivision 1; 282.01, 
          subdivision 6; 282.014; 282.301; 282.33, subdivision 
          1; 282.36; 287.25; 294.22; 298.01, subdivision 1; 
          298.02, subdivision 1; 298.225; 298.28, subdivision 1; 
          299.01, subdivision 1; 299.012, subdivision 1; 
          473H.10, subdivision 3; 508.47, subdivision 4; 508.71, 
          subdivision 4; 559.21, by adding a subdivision; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 273; repealing Minnesota Statutes 1984, 
          sections 298.01, subdivision 2; 299.01, subdivision 2; 
          and 477A.04. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 270.076, 
subdivision 2, is amended to read: 
    Subd. 2.  In case of appeal from the assessment and levy of 
the tax, the airline company shall currently pay when due that 
portion 90 percent of the tax which is admitted to be due unless 
the payment is waived or otherwise adjusted by an order of the 
court.  If the final determination of the litigation should 
result in sustaining the assessment and levy or in the finding 
that the amount paid by the airline company is insufficient, the 
difference between the amount paid and the amount which should 
have been paid shall be decreed delinquent taxes subject to 
interest, as hereinabove provided.  If the final determination 
of the tax court or the supreme court shall result in increasing 
any assessment above that which was made final by the order of 
the commissioner from which the appeal is taken, then the taxes 
on such increased assessment shall be delinquent 30 days after 
notice of the amount of the increased tax shall have been given 
to the airline company by the commissioner. 
    Sec. 2.  Minnesota Statutes 1984, section 270.11, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPEARANCES BEFORE THE COMMISSIONER.] A property 
owner, other than a public utility, or mining company or the 
metropolitan airport commission, for which the original 
assessments are determined by the commissioner of revenue, may 
not appear before the commissioner for the purposes provided in 
subdivisions 5 or 6 unless a timely appearance in person, by 
counsel, or by written communication has been made before the 
county board of equalization as provided in section 274.13, to 
appeal the assessment of the property, or that he can establish 
that he did not receive notice of his market value at least five 
days before the local board of review meeting. 
    The commissioner may refuse to hear an appeal that is 
within the jurisdiction of the small claims division of the tax 
court as stated in section 271.21, subdivision 2.  The property 
owner shall be notified by the commissioner of the right to 
appeal to the small claims division whenever an appeal to the 
commissioner is denied. 
    Sec. 3.  Minnesota Statutes 1984, section 270.12, 
subdivision 3, is amended to read: 
    Subd. 3.  For taxes levied in 1983 1985 and thereafter when 
a taxing jurisdiction lies in two or more counties, if the sales 
ratio studies prepared by the department of revenue show that 
the average levels of assessment in the several portions of the 
taxing jurisdictions in the different counties differ by more 
than five percent, the board shall may order the apportionment 
of the levy,.  When the sales ratio studies prepared by the 
department of revenue show that the average levels of assessment 
in the several portions of the taxing jurisdictions in the 
different counties differ by more than ten percent, the board 
shall order the apportionment of the levy unless (a) the 
proportion of total adjusted assessed value in one of the 
counties is less than ten percent of the total adjusted assessed 
value in the taxing jurisdiction and the average level of 
assessment in that portion of the taxing jurisdiction is the 
level which differs by more than five percent from the 
assessment level in any one of the other portions of the taxing 
jurisdiction; (b) significant changes have been made in the 
level of assessment in the taxing jurisdiction which have not 
been reflected in the sales ratio study, and those changes alter 
the assessment levels in the portions of the taxing jurisdiction 
so that the assessment level now differs by five percent or 
less; or (c) commercial, industrial, mineral, or public utility 
property predominates in one county within the taxing 
jurisdiction and another class of property predominates in 
another county within that same taxing jurisdiction.  If one or 
more of these factors are present, the board may order the 
apportionment of the levy.  
    Notwithstanding any other provision, the levy for the 
metropolitan mosquito control district, metropolitan council, 
metropolitan transit district, and metropolitan transit area 
must be apportioned without regard to the percentage difference. 
    If, pursuant to this subdivision, the board apportions the 
levy, then that levy apportionment among the portions in the 
different counties shall be made in the same proportion as the 
adjusted assessed value as determined by the equalization aid 
review committee in each portion is to the total adjusted 
assessed value of the taxing jurisdiction. 
     For the purposes of this section, the average level of 
assessment in a taxing jurisdiction or portion thereof shall be 
the aggregate assessment sales ratio.  Assessed values as 
determined by the equalization aid review committee shall be the 
values as determined for the year preceding the year in which 
the levy to be apportioned is levied. 
              Actions pursuant to this subdivision shall be commenced 
subsequent to the annual meeting on August 15 of the state board 
of equalization, but notice of the action shall be given to the 
affected jurisdiction and the appropriate county auditors by the 
following November 15. 
              Apportionment of a levy pursuant to this subdivision shall
be considered as a remedy to be taken after equalization 
pursuant to subdivision 2, and when equalization within the 
jurisdiction would disturb equalization within other 
jurisdictions of which the several portions of the jurisdiction 
in question are a part. 
    Sec. 4.  Minnesota Statutes 1984, section 272.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  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 parcels of 
property containing structures and the structures assessed 
pursuant to section 273.13, subdivisions 17, 17b, 17c or 17d; 
    (7) All public property exclusively used for any public 
purpose; 
    (8) Except for the taxable personal property enumerated 
below, all personal property and the property described in 
section 272.03, subdivision 1, clause (c) 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, crude oil, 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;  
     (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.  
     (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. 
     (10) Wetlands.  For purposes of this subdivision, 
"wetlands" means (1) land described in section 105.37, 
subdivision 15, or (2) land which is mostly under water, 
produces little if any income, and has no use except for 
wildlife or water conservation purposes, provided it is 
preserved in its natural condition and drainage of it 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. 
     (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. 
     (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. 
    (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. 
    (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. 
     (15) If approved by the governing body of the municipality 
in which the property is located, and if construction is 
commenced after June 30, 1983:  
     (a) a "direct satellite broadcasting 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;  
     (b) a "fixed satellite regional or national program service 
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; and 
     (c) a facility 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.  
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.  
    (16) Real and personal property owned and operated by a 
private, nonprofit corporation exempt from federal income 
taxation pursuant to United States Code, title 26, section 
501(c)(3), primarily used in the generation and distribution of 
hot water for heating buildings and structures.  
    Sec. 5.  Minnesota Statutes 1984, section 273.123, 
subdivision 5, is amended to read: 
    Subd. 5.  [COMPUTATION OF CREDITS.] The amounts of any 
homestead, agricultural, or similar credits or tax relief which 
reduce the gross tax shall be computed upon the reassessed value 
determined under subdivision 2.  Payment shall be made pursuant 
to section 273.13, subdivision 15a.  For purposes of the 
property tax refund, property taxes payable, as defined in 
section 290A.03, subdivision 13, and net property taxes payable, 
as defined in section 290A.04, subdivision 2d, shall be computed 
upon the reassessed value determined under subdivision 2.  
    Sec. 6.  Minnesota Statutes 1984, section 273.13, 
subdivision 4, is amended to read: 
    Subd. 4.  [CLASS 3.] (a) Tools, implements and machinery of 
an electric generating, transmission or distribution system or a 
pipeline system transporting or distributing water, gas, crude 
oil, or petroleum products or mains and pipes used in the 
distribution of steam or hot or chilled water for heating or 
cooling buildings, which are fixtures, all agricultural land, 
except as provided by classes 1, 3b, 3e, shall constitute class 
3 and shall be valued and assessed at 33-1/3 percent of the 
market value thereof, except as provided in clause (b).  All 
buildings and structures assessed as personal property and 
situated upon land of the state of Minnesota or the United 
States government which is rural in character and devoted or 
adaptable to rural but not necessarily agricultural use shall be 
assessed based upon the use made of the building or structure.  
Except as provided in subdivision 5a, all real property devoted 
to temporary and seasonal residential occupancy for recreational 
purposes, and which is not devoted to commercial purposes for 
more than 200 days in the year preceding the year of assessment, 
shall be class 3 property and assessed accordingly.  For this 
purpose, property is devoted to commercial use on a specific day 
if it is used, or offered for use, and a fee is charged for such 
use.  Class 3 shall also include commercial use real property 
used exclusively for recreational purposes in conjunction with 
class 3 property devoted to temporary and seasonal residential 
occupancy for recreational purposes, up to a total of two acres, 
provided the property is not devoted to commercial recreational 
use for more than 200 days in the year preceding the year of 
assessment and is located within two miles of the class 3 
property with which it is used.  
    (b) Agricultural land which is classified as class 3 shall 
be assessed at 19 percent of its market value.  Real property 
devoted to temporary and seasonal residential occupancy for 
recreation purposes which is classified as class 3 shall be 
assessed at 21 percent of its market value. 
    Sec. 7.  Minnesota Statutes 1984, section 273.138, 
subdivision 5, is amended to read: 
    Subd. 5.  The commissioner of revenue shall calculate the 
aids pursuant to subdivisions 2 and 3, basing all necessary 
calculations on the abstracts of assessment of real property for 
assessment year 1972 transmitted to the commissioner of revenue 
pursuant to section 270.11 as equalized by the state board of 
equalization pursuant to sections 270.11 and 270.12, and the 
1973 abstracts of tax lists transmitted by the county auditors 
pursuant to section 275.29.  He shall make payments pay directly 
to the affected taxing authorities in two equal parts on July 15 
and November 15 of each year, commencing in 1974 their total 
payment for the year at the time distributions are made pursuant 
to section 273.13, subdivision 15a. 
    Sec. 8.  [273.1393] [COMPUTATION OF NET PROPERTY TAXES.] 
    Notwithstanding any other provisions to the contrary, "net" 
property taxes are determined by subtracting the credits in the 
order listed from the gross tax:  
    (1) disaster credit as provided in section 273.123;  
    (2) wetlands credit as provided in section 273.115;  
    (3) native prairie credit as provided in section 273.116;  
    (4) powerline credit as provided in section 273.42;  
    (5) agricultural preserves credit as provided in section 
473H.10; 
    (6) enterprise zone credit as provided in section 273.1314; 
    (7) state school agricultural credit as provided in section 
124.2137; 
    (8) state paid homestead credit as provided in section 
273.13, subdivisions 6 and 7; 
    (9) taconite homestead credit as provided in section 
273.135;  
    (10) supplemental homestead credit as provided in section 
273.1391.  
    The combination of all property tax credits must not exceed 
the gross tax amount.  
    Sec. 9.  Minnesota Statutes 1984, section 273.19, 
subdivision 1, is amended to read:  
    Subdivision 1.  Except as provided in subdivision 3 or 4, 
property held under a lease for a term of three or more years, 
and not taxable under section 272.01, subdivision 2, clause 
(b)(1), or under a contract for the purchase thereof, when the 
property belongs to the United States, to the state, or to any 
religious, scientific, or benevolent society or institution, 
incorporated or unincorporated, or to any railroad company or 
other corporation whose property is not taxed in the same manner 
as other property, or when the property is school or other state 
lands, shall be considered, for all purposes of taxation, as the 
property of the person so holding the same.  This subdivision 
does not apply to property exempt from taxation under section 
272.01, subdivision 2, clause (b)(2). 
    Sec. 10.  Minnesota Statutes 1984, section 273.33, 
subdivision 1, is amended to read: 
    Subdivision 1.  The personal property of express, stage and 
transportation companies, and of pipeline companies engaged in 
the business of transporting natural gas, gasoline, crude oil, 
or other petroleum products except as otherwise provided by law, 
shall be listed and assessed in the county, town or district 
where the same is usually kept. 
    Sec. 11.  Minnesota Statutes 1984, section 273.33, 
subdivision 2, is amended to read: 
    Subd. 2.  The personal property, consisting of the pipeline 
system of mains, pipes and equipment attached thereto, of 
pipeline companies and others engaged in the operations or 
business of transporting natural gas, gasoline, crude oil, or 
other petroleum products by pipe lines, shall be listed with and 
assessed by the commissioner of revenue. This subdivision shall 
not apply to the assessment of the products transported through 
the pipe lines nor to the lines of local commercial gas 
companies engaged primarily in the business of distributing gas 
to consumers at retail nor to pipe lines used by the owner 
thereof to supply natural gas or other petroleum products 
exclusively for such owner's own consumption and not for resale 
to others.  On or before the fifteenth day of November, the 
commissioner shall certify to the auditor of each county, the 
amount of such personal property assessment against each company 
in each district in which such property is located. 
    Sec. 12.  Minnesota Statutes 1984, section 279.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  On May 16, of each year, with respect to 
property actually occupied and used as a homestead by the owner 
of the property, a penalty of three percent shall accrue and 
thereafter be charged upon all unpaid taxes on real estate on 
the current lists in the hands of the county treasurer, and a 
penalty of seven percent on nonhomestead property, except that 
this penalty shall not accrue until June 1 of each year on 
commercial use real property used for seasonal residential 
recreational purposes and classified as class 3 or 3a, and on 
other commercial use real property classified as class 4c, 
provided that over 60 percent of the gross income earned by the 
enterprise on the class 4c property is earned during the months 
of May, June, July, and August.  Any property owner of such 
class 4c property who pays the first half of the tax due on the 
property after May 15 and before June 1 shall attach an 
affidavit to his payment attesting to compliance with the income 
provision of this subdivision.  Thereafter, for both homestead 
and nonhomestead property, on the 16th day of each month, up to 
and including October 16 following, an additional penalty of one 
percent for each month shall accrue and be charged on all such 
unpaid taxes.  When the taxes against any tract or lot exceed 
$10 $50, one-half thereof may be paid prior to May 16 and, if so 
paid, no penalty shall attach; the remaining one-half shall be 
paid at any time prior to October 16 following, without penalty; 
but, if not so paid, then a penalty of four percent shall accrue 
thereon for homestead property and a penalty of four percent on 
nonhomestead property.  Thereafter, for homestead property, on 
the 16th day of each month up to and including December 16 
following, an additional penalty of two percent for each month 
shall accrue and be charged on all such unpaid taxes.  
Thereafter, for nonhomestead property, on the 16th day of each 
month up to and including December 16 following, an additional 
penalty of four percent for each month shall accrue and be 
charged on all such unpaid taxes.  If one-half of such taxes 
shall not be paid prior to May 16, the same may be paid at any 
time prior to October 16, with accrued penalties to the date of 
payment added, and thereupon no penalty shall attach to the 
remaining one-half until October 16 following; provided, also, 
that the same may be paid in installments as follows:  
One-fourth prior to March 16; one-fourth prior to May 16; 
one-fourth prior to August 16; and the remaining one-fourth 
prior to October 16, subject to the aforesaid penalties.  Where 
the taxes delinquent after October 16 against any tract or 
parcel exceed $40 $100, upon resolution of the county board, 
they may be paid in installments of not less than 25 percent 
thereof, together with all accrued penalties and costs, up to 
the next tax judgment sale, and after such payment, penalties, 
interest, and costs shall accrue only on the sum remaining 
unpaid.  Any county treasurer who shall make out and deliver or 
countersign any receipt for any such taxes without including all 
of the foregoing penalties therein, shall be liable to the 
county for the amount of such penalties.  
    Sec. 13.  Minnesota Statutes 1984, section 282.01, 
subdivision 6, is amended to read: 
    Subd. 6.  [DUTIES OF COMMISSIONER OF REVENUE; ISSUANCE OF 
CONVEYANCE.] When any sale has been made by the county auditor 
under sections 282.01 to 282.13, he shall immediately certify to 
the commissioner of revenue such information relating to such 
sale, on such forms as the commissioner of revenue may prescribe 
as will enable the commissioner of revenue to prepare an 
appropriate deed if the sale is for cash, or keep his necessary 
records if the sale is on terms; and not later than October 31 
of each year the county auditor shall submit to the commissioner 
of revenue a statement of all instances wherein any payment of 
principal, interest, or current taxes on lands held under 
certificate, due or to be paid during the preceding calendar 
years, are still outstanding at the time such certificate is 
made.  When such statement shows that a purchaser or his 
assignee is in default, the commissioner of revenue may instruct 
the county board of the county in which the land is located to 
cancel said certificate of sale in the manner provided by 
subdivision 5, provided that upon recommendation of the county 
board, and where the circumstances are such that the 
commissioner of revenue after investigation is satisfied that 
the purchaser has made every effort reasonable to make payment 
of both the annual instalment and said taxes, and that there has 
been no wilful neglect on the part of the purchaser in meeting 
these obligations, then the commissioner of revenue may extend 
the time for the payment for such period as he may deem 
warranted, not to exceed one year.  On payment in full of the 
purchase price, appropriate conveyance in fee, in such form as 
may be prescribed by the attorney general, shall be issued by 
the commissioner of revenue, which conveyance must be recorded 
by the county and shall have the force and effect of a patent 
from the state subject to easements and restrictions of record 
at the date of the tax judgment sale, including, but without 
limitation, permits for telephone, telegraph, and electric power 
lines either by underground cable or conduit or otherwise, sewer 
and water lines, highways, railroads, and pipe lines for gas, 
liquids, or solids in suspension. 
    Sec. 14.  Minnesota Statutes 1984, section 282.014, is 
amended to read: 
    282.014 [COMPLETION OF SALE AND CONVEYANCE.] 
    Upon compliance by the purchaser with the provisions of 
sections 282.011 to 282.015 and with the terms and conditions of 
the sale, and upon full payment for the land, plus a $10 fee in 
addition to the sale price, the sale shall be complete and a 
conveyance of the land shall be issued to the purchaser as 
provided by the appropriate statutes according to the status of 
the land upon forfeiture. 
    The conveyance must be forwarded to the county recorder who 
shall record the conveyance before the auditor issues it to the 
purchaser. 
    Sec. 15.  Minnesota Statutes 1984, section 282.301, is 
amended to read: 
    282.301 [RECEIPTS FOR PAYMENTS.] 
    The purchaser shall receive from the county auditor at the 
time of repurchase a receipt, in such form as may be prescribed 
by the attorney general.  When the purchase price of a parcel of 
land shall be paid in full, the following facts shall be 
certified by the county auditor to the commissioner of revenue 
of the state of Minnesota:  the description of land, the date of 
sale, the name of the purchaser or his assignee, and the date 
when the final instalment of the purchase price was paid.  Upon 
payment in full of the purchase price, the purchaser or his 
assignee shall receive a quitclaim deed from the state, to be 
executed by the commissioner of revenue.  The deed must be sent 
to the county recorder for recording before it is forwarded to 
the purchaser.  Failure to make any payment herein required 
shall constitute default and upon such default and cancellation 
in accord with section 282.40, the right, title and interest of 
the purchaser or his heirs, representatives, or assigns in such 
parcel shall terminate.  
    Sec. 16.  Minnesota Statutes 1984, section 282.33, 
subdivision 1, is amended to read: 
    Subdivision 1.  Whenever an unrecorded deed from the state 
of Minnesota conveying tax-forfeited lands shall have been lost 
or destroyed, an application, in form approved by the attorney 
general, for a new deed may be made by the grantee or his 
successor in interest to the commissioner of revenue.  If it 
appears to the commissioner of revenue that the facts stated in 
the petition are true, he shall issue a new deed to the original 
grantee, in form approved by the attorney general, with like 
effect as the original deed.  The commissioner shall send the 
new deed to the county recorder, who after recording the deed 
will forward it to the county auditor.  The application shall be 
accompanied by a fee of $10, payable to the commissioner of 
revenue, which shall be deposited with the state treasurer and 
credited to the general fund.  
    Sec. 17.  Minnesota Statutes 1984, section 282.36, is 
amended to read: 
    282.36 [FEES PAYABLE TO REPURCHASER.] 
    Any person repurchasing land after forfeiture to the state 
for nonpayment of taxes under the provisions of a repurchase law 
shall at the time the certificate of repurchase is issued and 
recorded by the county auditor or before receiving quit claim 
deed pursuant thereto, pay to the county treasurer a fee of $3.  
Fees so collected during any calendar year shall be credited to 
a special fund and, upon a warrant issued by the county auditor 
on or before March 1 of the year following, shall be remitted to 
the state treasurer and credited to the general fund.  The 
commissioner of revenue shall, on or before February 1 in each 
year, certify to the state treasurer the number of deeds issued 
during the preceding calendar year to which these fees apply, 
showing by counties the number of deeds so issued and the total 
fees due therefor.  This section shall not apply to repurchases 
made under any law enacted prior to January 1, 1945.  
    Sec. 18.  Minnesota Statutes 1984, section 287.25, is 
amended to read: 
    287.25 [PAYMENT OF TAX; STAMPS.] 
    The county board shall determine the method for collection 
of the tax imposed by section 287.21:  
    (1) The tax imposed by section 287.21 shall may be paid by 
the affixing of a documentary stamp or stamps in the amount of 
the tax to the document or instrument with respect to which the 
tax is paid, provided that the commissioner of revenue may, in 
exceptional cases, permit the payment of the tax without the 
affixing of the documentary stamps and in such cases shall, upon 
receipt of the tax, endorse his receipt for such tax upon the 
face of the document or instrument.  In such case the 
commissioner of revenue shall deposit the amount received in 
payment of the tax with the state treasurer to the credit of the 
general fund.  
    (2) The tax imposed by section 287.21 may be paid in the 
manner prescribed by section 287.08 relating to payment of 
mortgage registration tax. 
    Sec. 19.  Minnesota Statutes 1984, section 294.22, is 
amended to read: 
    294.22 [GROSS EARNINGS TAX; COMPUTATION.] 
    Every company owning or operating any taconite railroad 
shall pay annually into the state treasury a sum of money equal 
to five percent of the gross earnings derived from the operation 
of such taconite railway within the state.  The gross earnings 
of such a taconite railroad company from the transportation of 
taconite concentrates from the Mesabi Range to ports on Lake 
Superior, for all purposes hereof, shall be a sum of money equal 
to the amount which would be charged under established tariffs 
of common carriers for the transportation of an equal tonnage of 
iron ore or taconite concentrates, whichever is shipped from 
Mesabi Range points to ports at the head of Lake Superior, 
including the established charges for loading such ore on 
boats.  For all purposes of chapter 298 the amount rate of the 
gross earnings as so calculated shall be treated as the cost of 
transportation of such concentrates or iron ore between such 
points.  If such a taconite railroad company transports coal or 
any other commodity, except taconite concentrates, its gross 
earnings shall include an amount equal to the established 
tariffs of common carriers for the transportation of the same 
quantities of similar commodities for corresponding distances, 
not, however, including any such charges for any such 
commodities used or intended to be used in the construction, 
operation or maintenance of such railroad.  
    Sec. 20.  Minnesota Statutes 1984, section 298.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every person engaged in the business of 
mining or producing iron ore or other ores in this state shall 
pay to the state of Minnesota an occupation tax equal to 15.5 15 
percent of the valuation of all ores except taconite, 
semi-taconite and iron sulphides mined or produced after 
December 31, 1971 and iron ores mined or produced after December 
31, 1984.  Said tax shall be in addition to all other taxes 
provided for by law and shall be due and payable from such 
person on or before June 15 of the year next succeeding the 
calendar year covered by the report thereon to be filed as 
hereinafter provided.  
    Sec. 21.  Minnesota Statutes 1984, section 298.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREDIT.] For the purpose of increasing 
employment and the utilization of low-grade, underground, and 
high labor cost ores any taxpayer on whom a tax is imposed by 
reason of the provisions of section 298.01, subdivisions 1 and 
2, shall be allowed a credit against the occupation tax as 
computed in that section because of the mining or production of 
ore from any mine, in an amount calculated as follows: 
    (a) In the case of underground all mines or that tonnage of 
merchantable ore produced in open pit mines in the year in 
question which tonnage has resulted from beneficiation at an ore 
beneficiation plant within the state by jigging, heavy media, 
spiral separation, cyclone process, roasting, drying by 
artificial heat, sintering, magnetic separation, flotation, 
agglomeration or any process requiring fine grinding or any 
other iron ores mined after December 31, 1984, ten percent of 
that part of the cost of labor employed by the mine or in the 
beneficiation of all ore mined or produced in the calendar year 
in excess of 70 cents and not in excess of 90 cents per ton of 
the merchantable ore produced during the year at that mine, and 
15 percent of that part of the cost of such labor in excess of 
90 cents per ton; in the case of any other tonnage produced at 
said mine or in the case of other mines, ten percent of the 
amount by which the average cost per ton of labor employed at 
the mine, or in the beneficiation of the ore at or near the 
mine, exceeds 80 cents, but does not exceed $1.05, plus 15 
percent of the amount by which the average labor cost per ton 
exceeds $1.05, multiplied by the number of tons of ore produced 
at the mine, not exceeding 100,000 tons, but this 100,000 tons 
or less shall be first reduced by any tonnage described in the 
first part of this subparagraph; provided, however, that in no 
event shall the credit allowed hereunder be in excess of 
three-fourths of eleven percent, as applied to underground and 
taconite, semi-taconite or other iron ore operations, and 
six-tenths of eleven percent as applied to all other operations, 
of the valuation of the ore used in computing the tax under the 
provisions of section 298.01.  The term "merchantable ore 
produced" as used herein means ores which as mined or as mined 
and beneficiated, are ready for shipment as a merchantable 
product.  
    (b) The aggregate amount of all credits allowed under this 
subdivision to all mines shall not exceed six and two-tenths 
percent of the aggregate amount of occupation taxes imposed 
under section 298.01, subdivision 1, assessed against all mines 
in the state for said year prior to the deduction of such 
credits, provided, that after December 31, 1954, labor credits 
to underground mines or taconite or semi-taconite operations 
shall not be subject to such percentage limitation and that, 
after December 31, 1984, labor credits to other iron ore 
operations shall not be subject to the percentage limitation and 
both the occupation taxes of such underground mines or taconite, 
semi-taconite or other iron ore operations and the labor credits 
allowed thereto, shall be excluded in calculating such 
percentage limitations.  At the time of his final determination 
of occupation tax pursuant to section 298.09, subdivision 3, the 
commissioner shall reduce the credit otherwise allowable to each 
mine hereunder by such equal percentage as will bring the total 
within such limitation.  If an equal percentage reduction is 
made in the labor credits of mines pursuant to this subparagraph 
at the time of certification to the commissioner of revenue as 
set forth in section 298.10, the same percentage will be used 
where changes are made pursuant to section 298.09, subdivision 
4, subsequent to June 1.  Also if no reduction is made at the 
time of certification by the commissioner of revenue on or 
before June 1, pursuant to this subdivision and section 298.10, 
no reduction will be made subsequent to June 1, due to changes 
made pursuant to section 298.09, subdivision 4.  This 
subparagraph shall apply to occupation tax calculations in 
calendar years subsequent to December 31, 1952.  
    Sec. 22.  Minnesota Statutes 1984, section 298.225, is 
amended to read: 
    298.225 [APPROPRIATION.] 
    For distribution of taconite production tax in 1985 and 
thereafter with respect to production in 1984 and thereafter, 
the recipients of the taconite production tax as provided in 
section 298.28, subdivision 1, clauses (1) to (4) and (5)(b), 
(7), and (8)(a), shall receive distributions equal to the amount 
distributed to them pursuant to sections 298.225 and 298.28, 
subdivision 1, with respect to 1983 production if the production 
for the year prior to the distribution year is no less than 
42,000,000 taxable tons.  If the production is less than 
42,000,000 taxable tons, the amount of the distributions shall 
be reduced by proportionately at the rate of two percent for 
each 1,000,000 tons, or part of 1,000,000 tons by which the 
production is less than 42,000,000 tons.  There is hereby 
appropriated to the commissioner of revenue from the taconite 
environmental protection fund and the corpus of the northeast 
Minnesota economic protection trust fund in equal proportions 
the amount needed to make the above payments.  
    If a taconite producer ceases beneficiation operations 
permanently and is required by a special law to make bond 
payments for a school district, the northeast Minnesota economic 
protection trust fund shall assume the payments of the taconite 
producer if the producer ceases to make the needed payments.  
There is hereby appropriated from the corpus of the northeast 
Minnesota economic protection trust fund to the commissioner of 
revenue the amounts needed to make these school bond payments.  
    Sec. 23.  Minnesota Statutes 1984, section 298.28, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISTRIBUTION FROM GENERAL FUND.] The 
proceeds of the taxes collected under section 298.24, except the 
tax collected under section 298.24, subdivision 2, shall, upon 
certificate of the commissioner of revenue to the general fund 
of the state, be paid by the commissioner of revenue as follows: 
    (1) 2.5 cents per gross ton of merchantable iron ore 
concentrate, hereinafter referred to as "taxable ton," to the 
city or town in which the lands from which taconite was mined or 
quarried were located or within which the concentrate was 
produced.  If the mining, quarrying, and concentration, or 
different steps in either thereof are carried on in more than 
one taxing district, the commissioner shall apportion equitably 
the proceeds of the part of the tax going to cities and towns 
among such subdivisions upon the basis of attributing 40 percent 
of the proceeds of the tax to the operation of mining or 
quarrying the taconite, and the remainder to the concentrating 
plant and to the processes of concentration, and with respect to 
each thereof giving due consideration to the relative extent of 
such operations performed in each such taxing district.  His 
order making such apportionment shall be subject to review by 
the tax court at the instance of any of the interested taxing 
districts, in the same manner as other orders of the 
commissioner. 
    (2) 12.5 cents per taxable ton, less any amount distributed 
under clause (8), paragraph (a), to the taconite municipal aid 
account in the apportionment fund of the state treasury, to be 
distributed as provided in section 298.282. 
    (3) 29 cents per taxable ton plus the increase provided in 
paragraph (c) to qualifying school districts to be distributed 
as follows: 
    (a) Six cents per taxable ton to the school districts in 
which the lands from which taconite was mined or quarried were 
located or within which the concentrate was produced.  The 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
      (b) 23 cents per taxable ton, less any amount distributed 
under part (d), shall be distributed to a group of school 
districts comprised of those school districts wherein the 
taconite was mined or quarried or the concentrate produced or in 
which there is a qualifying municipality as defined by section 
273.134 in direct proportion to school district tax levies as 
follows:  each district shall receive that portion of the total 
distribution which its certified levy for the prior year, 
computed pursuant to sections 124A.03, 124A.06, subdivision 3a, 
124A.08, subdivision 3a, 124A.10, subdivision 3a, 124A.12, 
subdivision 3a, 124A.14, subdivision 5a, and 275.125, comprises 
of the sum of certified levies for the prior year for all 
qualifying districts, computed pursuant to sections 124A.03, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
5a, and 275.125.  For purposes of distributions pursuant to this 
part, certified levies for the prior year computed pursuant to 
sections 124A.03, 124A.06, subdivision 3a, 124A.08, subdivision 
3a, 124A.10, subdivision 3a, 124A.12, subdivision 3a, 124A.14, 
subdivision 5a, and 275.125 shall not include the amount of any 
increased levy authorized by referendum pursuant to section 
124A.03, subdivision 2. 
    (c) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
clause (3)(b) in the same proportion as the increase in the 
steel mill products index over the base year of 1977 as provided 
in section 298.24, subdivision 1, clause (a), shall be 
distributed to any school district described in clause (3)(b) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988 and subsequent years, the increase 
over the amount established for the prior year shall be 
determined according to the increase in the implicit price 
deflator as provided in section 298.24, subdivision 1, paragraph 
(a).  Each district shall receive the product of: 
     (i) $150 times the pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), enrolled in the 
second previous school year, less the product of two mills times 
the district's taxable valuation in the second previous year; 
times 
     (ii) the lesser of: 
     (A) one, or 
     (B) the ratio of the amount certified pursuant to section 
124A.03, subdivision 2, in the previous year, to the product of 
two mills times the district's taxable valuation in the second 
previous year. 
    If the total amount provided by clause (3)(c) is 
insufficient to make the payments herein required then the 
entitlement of $150 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to clause 
(3)(c) shall not be applied to reduce foundation aids which the 
district is entitled to receive pursuant to section 124A.02 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of finance who shall deposit the same in the 
taconite environmental protection fund and the northeast 
Minnesota economic protection trust fund as provided in section 
298.28, subdivision 1, clause 10. 
      (d) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
      (4) 19.5 cents per taxable ton to counties to be 
distributed as follows: 
      (a) 15.5 cents per taxable ton shall be distributed to the 
county in which the taconite is mined or quarried or in which 
the concentrate is produced, less any amount which is to be 
distributed pursuant to part (b).  The commissioner shall follow 
the apportionment formula prescribed in clause (1). 
      (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, one 
cent per taxable ton of the tax distributed to the counties 
pursuant to part (a) and imposed on and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county in which the power plant is located. 
      (c) Four cents per taxable ton shall be paid to the county 
from which the taconite was mined, quarried or concentrated to 
be deposited in the county road and bridge fund.  If the mining, 
quarrying and concentrating, or separate steps in any of those 
processes are carried on in more than one county, the 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (5) (a) 17.75 cents per taxable ton, less any amount 
required to be distributed under part (b), to the taconite 
property tax relief account in the apportionment fund in the 
state treasury, to be distributed as provided in sections 
273.134 to 273.136. 
      (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, .75 
cent per taxable ton of the tax imposed and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county and school district in which the power plant is 
located as follows:  25 percent to the county and 75 percent to 
the school district. 
     (6) One cent per taxable ton to the state for the cost of 
administering the tax imposed by section 298.24. 
     (7) Three cents per taxable ton shall be deposited in the 
state treasury to the credit of the iron range resources and 
rehabilitation board account in the special revenue fund for the 
purposes of section 298.22.  The amount determined in this 
clause shall be increased in 1981 and subsequent years prior to 
1988 in the same proportion as the increase in the steel mill 
products index as provided in section 298.24, subdivision 1 and 
shall be increased in 1988 and subsequent years according to the 
increase in the implicit price deflator as provided in section 
298.24, subdivision 1.  The amount distributed pursuant to this 
clause shall be expended within or for the benefit of a tax 
relief area defined in section 273.134.  No part of the fund 
provided in this clause may be used to provide loans for the 
operation of private business unless the loan is approved by the 
governor and the legislative advisory commission. 
     (8) (a) .20 cent per taxable ton shall be paid to the range 
association of municipalities and schools, for the purpose of 
providing an area wide approach to problems which demand 
coordinated and cooperative actions and which are common to 
those areas of northeast Minnesota affected by operations 
involved in mining iron ore and taconite and producing 
concentrate therefrom, and for the purpose of promoting the 
general welfare and economic development of the cities, towns 
and school districts within the iron range area of northeast 
Minnesota. 
     (b) 1.5 cents per taxable ton shall be paid to the 
northeast Minnesota economic protection trust fund.  
     (9) the amounts determined under clauses (4)(a), (4)(c), 
(5), and (8)(b) shall be increased in 1979 and subsequent years 
prior to 1988 in the same proportion as the increase in the 
steel mill products index as provided in section 298.24, 
subdivision 1.  Those amounts shall be increased in 1988 and 
subsequent years in the same proportion as the increase in the 
implicit price deflator as provided in section 298.24, 
subdivision 1.  
     (10) the proceeds of the tax imposed by section 298.24 
which remain after the distributions in clauses (1) to (9) and 
parts (a) and (b) of this clause have been made shall be divided 
between the taconite environmental protection fund created in 
section 298.223 and the northeast Minnesota economic protection 
trust fund created in section 298.292 as follows:  Two-thirds to 
the taconite environmental protection fund and one-third to the 
northeast Minnesota economic protection trust fund.  The 
proceeds shall be placed in the respective special accounts in 
the general fund. 
     (a) There shall be distributed to each city, town, school 
district, and county the amount that they received under section 
294.26 in calendar year 1977; provided, however, that the amount 
distributed in 1981 to the unorganized territory number 2 of 
Lake County and the town of Beaver Bay based on the 
between-terminal trackage of Erie Mining Company will be 
distributed in 1982 and subsequent years to the unorganized 
territory number 2 of Lake County and the towns of Beaver Bay 
and Stony River based on the miles of track of Erie Mining 
Company in each taxing district. 
     (b) There shall be distributed to the iron range resources 
and rehabilitation board the amounts it received in 1977 under 
section 298.22. 
     On or before October 10 of each calendar year each producer 
of taconite or iron sulphides subject to taxation under section 
298.24 (hereinafter called "taxpayer") shall file with the 
commissioner of revenue an estimate of the amount of tax which 
would be payable by such taxpayer under said law for such 
calendar year; provided such estimate shall be in an amount not 
less than the amount due on the mining and production of 
concentrates up to September 30 of said year plus the amount 
becoming due because of probable production between September 30 
and December 31 of said year, less any credit allowable as 
hereinafter provided.  The commissioner of revenue shall 
annually on or before October 10 report an estimated 
distribution amount to each taxing district and the officers 
with whom such report is so filed shall use the amount so 
indicated as being distributable to each taxing district in 
computing the permissible tax levy of such county or city in the 
year in which such estimate is made, and payable in the next 
ensuing calendar year, except that one cent per taxable ton of 
the amount distributed under clause (4)(c) shall not be deducted 
in calculating the permissible levy.  In any calendar year in 
which a general property tax levy subject to sections 275.50 to 
275.59 has been made, if the taxes distributable to any such 
county or city are greater than the amount estimated by the 
commissioner to be paid to any such county or city in such year, 
the excess of such distribution shall be held in a special fund 
by the county or city and shall not be expended until the 
succeeding calendar year, and shall be included in computing the 
permissible levies under sections 275.50 to 275.59, of such 
county or city payable in such year.  If the amounts 
distributable to any such county or city after final 
determination by the commissioner of revenue under this section 
are less than the amounts by which a taxing district's levies 
were reduced pursuant to this section, such county or city may 
issue certificates of indebtedness in the amount of the 
shortage, and may include in its next tax levy, in excess of the 
limitations of sections 275.50 to 275.59 an amount sufficient to 
pay such certificates of indebtedness and interest thereon, or, 
if no certificates were issued, an amount equal to such shortage.
    There is hereby annually appropriated to such taxing 
districts as are stated herein, to the taconite property tax 
relief account and to the taconite municipal aid account in the 
apportionment fund in the state treasury, to the department of 
revenue, to the iron range resources and rehabilitation board, 
to the range association of municipalities and schools, to the 
taconite environmental protection fund, and to the northeast 
Minnesota economic protection trust fund, from any fund or 
account in the state treasury to which the money was credited, 
an amount sufficient to make the payment or transfer.  The 
payment of the amount appropriated to such taxing districts 
shall be made by the commissioner of revenue on or before May 15 
annually. 
    Sec. 24.  Minnesota Statutes 1984, section 299.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  There shall be levied and collected upon 
all royalty received during each calendar year for permission to 
explore, mine, take out and remove ore other than taconite, 
semi-taconite and iron sulphides from land in this state, a tax 
of 15.5 15 percent after December 31, 1971.  
    Sec. 25.  Minnesota Statutes 1984, section 299.012, 
subdivision 1, is amended to read: 
    Subdivision 1.  For the purpose of increasing the 
utilization of low grade, underground, and high labor cost ores 
and taconites, the royalty tax levied by virtue of section 
299.01, subdivisions 1 and 2, on royalty received because of the 
production of ores in any calendar year from land forming part 
of any mine which was in production during said year, shall be 
reduced by a credit in an amount which will make the net 
effective tax rate thereon equal to the net effective rate of 
the occupation tax imposed pursuant to section 298.01, because 
of the production of ores during such calendar year from the 
mine of which such land forms a part, after the application of 
the credits against such occupation tax allowed under section 
298.02; provided, if such mine produced ore in such calendar 
year, but the ore produced had no valuation for occupation tax 
purposes because of the allowable deductions equaling or 
exceeding the value of the ore produced, the credit allowed 
hereunder shall be three-fourths of eleven percent, as applied 
to underground, taconite, semi-taconite and other iron ore 
operations, and six-tenths of eleven percent as applied to all 
other operations, of the royalty received.  Any person making 
payments of royalty taxes in advance of the final determination 
of such taxes, may assume for the purposes of section 299.08, 
that the net rate of the tax for the calendar year in question 
shall be the last full year's net effective occupation tax rate 
known at the time of the first payment of royalty tax during the 
current calendar year. 
    Sec. 26.  Minnesota Statutes 1984, 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 275.08, 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 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 as provided in section 273.13, subd. 15a 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.  
    Sec. 27.  Minnesota Statutes 1984, section 508.47, 
subdivision 4, is amended to read: 
    Subd. 4.  [SURVEY; REQUISITES; FILING; COPIES.] The 
registered land survey shall correctly show the legal 
description of the parcel of unplatted land represented by said 
registered land survey and the outside measurements of the 
parcel of unplatted land and of all tracts delineated therein, 
the direction of all lines of said tracts to be shown by angles 
or bearings or other relationship to the outside lines of said 
registered land survey, and the surveyor shall place stakes in 
the ground at appropriate corners, and all tracts shall be 
lettered consecutively beginning with the letter "A".  None of 
said tracts or parts thereof may be dedicated to the public by 
said registered land survey.  Except in counties having 
microfilming capabilities, a reproduction copy of the registered 
land survey shall be delivered to the county auditor.  The 
registered land survey shall be on paper, mounted on cloth, 
shall be a black on white drawing, the scale to be not smaller 
than one inch equals 200 feet, and shall be certified to be a 
correct representation of said parcel of unplatted land by a 
registered surveyor.  The mounted drawing shall be exactly 17 
inches by 14 inches and not less than 2 1/2 inches of the 14 
inches shall be blank for binding purposes, and such survey 
shall be filed in triplicate with the registrar of titles upon 
the payment of a fee of $15.  Before filing, however, any such 
survey shall be approved in the manner required for the approval 
of subdivision plats, which approval shall be endorsed thereon 
or attached thereto. 
    At the time of filing, a certificate from the treasurer 
that current taxes have been paid must be presented before the 
survey is accepted by the registrar for filing.  
    In counties having microfilming capabilities, the survey 
may be prepared on sheets of suitable mylar or on linen tracing 
cloth by photographic process or on material of equal quality.  
Notwithstanding any provisions of subdivision 5 to the contrary, 
no other copies of the survey need be filed. 
    The registrar shall furnish to any person a copy of said 
registered land survey, duly certified by him, for a fee of 
$7.50, which shall be admissible in evidence. 
    Sec. 28.  Minnesota Statutes 1984, section 508.71, 
subdivision 4, is amended to read: 
    Subd. 4.  [REGISTRATION OF MEMORIALS.] Without order of 
court or directive of the examiner, the registrar of titles may 
receive and register as memorials upon any certificate of title 
to which they pertain, the following instruments:  receipt or 
certificate of county treasurer showing redemption from any tax 
sale or payment of any tax described in a certificate of title, 
a state deed issued to purchaser of tax forfeited land, a 
certified copy of a marriage certificate showing the subsequent 
marriage of any owner shown by a certificate of title to be 
unmarried, a certified copy of a final decree of divorce or 
dissolution of a marriage entered in the state of Minnesota, or 
in any state, territory or possession of the United States, or 
the District of Columbia to establish the dissolution of a 
marriage relationship of any party shown on the certificate to 
be married, and a certified copy of the death certificate of 
party listed in any certificate of title as being the spouse of 
the registered owner when accompanied by an affidavit 
satisfactory to the registrar identifying the decedent with the 
spouse.  In all subsequent dealings with the land covered by the 
certificates, the registrar shall give full faith to these 
memorials.  
    Sec. 29.  Minnesota Statutes 1984, section 559.21, is 
amended by adding a subdivision to read: 
    Subd. 8.  [APPLICATION.] The provisions of this section 
relating to payment of mortgage registration tax as a 
requirement of the cancellation process only apply to those 
contracts for deed subject to payment of mortgage registration 
tax at time of recording. 
    Sec. 30.  [REPEALER.] 
    (a) Minnesota Statutes 1984, sections 298.01, subdivision 
2; and 299.01, subdivision 2, are repealed. 
    (b) Minnesota Statutes 1984, section 477A.04 is repealed.  
    Sec. 31.  [EFFECTIVE DATE.] 
    Sections 1 to 8 and 10 to 12 are effective for taxes levied 
in 1985 and thereafter, payable in 1986 and thereafter.  
Sections 9, 13 to 19 and 26 to 29, are effective the day after 
final enactment.  Sections 20 to 25 and 30, paragraph (a), are 
effective for ores produced after December 31, 1984. 
    Approved June 5, 1985